Tubemogul (TUBE) 10-Q 11 Aug 15 2015 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Aug. 03, 2015
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q2
Trading Symbol	TUBE
Entity Registrant Name	TUBEMOGUL INC
Entity Central Index Key	1,449,278
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		34,630,946

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 81,220	$ 46,592
Accounts receivable, net	118,886	88,457
Prepaid expenses and other current assets	2,852	2,322
Total current assets	202,958	137,371
Property, equipment and software, net	5,098	3,902
Deferred tax assets	287	287
Restricted cash	742	742
Other assets	442	405
Total assets	209,527	142,707
Current liabilities:
Accounts payable	41,220	19,087
Accrued liabilities	45,954	50,438
Note payable, net of discount	627	1,362
Deferred revenue	574	302
Deferred tax liabilities	235	276
Other liabilities	234
Total current liabilities	88,844	71,465
Deferred rent	844	601
Total liabilities	$ 89,688	$ 72,066
Commitments and contingencies (Note 5)
Stockholders’ equity:
Preferred stock; $0.001 par value; 10,000,000 shares authorized as of December 31, 2014 and June 30, 2015; 0 shares outstanding as of December 31, 2014 and June 30, 2015
Common stock; $0.001 par value; 200,000,000 shares authorized as of December 31, 2014 and June 30, 2015; 29,837,892 and 34,106,603 shares issued and outstanding as of December 31, 2014 and June 30, 2015, respectively	$ 34	$ 30
Additional paid-in capital	151,841	94,013
Accumulated deficit	(31,762)	(23,285)
Accumulated other comprehensive loss	(274)	(117)
Total stockholders’ equity	119,839	70,641
Total liabilities and stockholders’ equity	$ 209,527	$ 142,707

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Jun. 30, 2015	Dec. 31, 2014
Statement Of Financial Position [Abstract]
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	34,106,603	29,837,892
Common stock, shares outstanding	34,106,603	29,837,892

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Revenue:
Total revenue	$ 45,440	$ 28,715	$ 75,756	$ 50,741
Cost of revenue	15,306	9,108	23,609	15,323
Gross profit	30,134	19,607	52,147	35,418
Operating expenses:
Research and development	9,503	4,940	18,272	8,748
Sales and marketing	13,497	8,285	24,609	16,214
General and administrative	8,615	4,704	16,442	9,142
Total operating expenses	31,615	17,929	59,323	34,104
Income (loss) from operations	(1,481)	1,678	(7,176)	1,314
Other income (expense), net:
Interest expense, net	(23)	(79)	(51)	(120)
Change in fair value of convertible preferred stock warrant liability		449		168
Foreign exchange gain (loss)	266	128	(1,041)	92
Other income (expense), net	243	498	(1,092)	140
Net income (loss) before income taxes	(1,238)	2,176	(8,268)	1,454
Provision for income taxes	(95)	(92)	(209)	(137)
Net income (loss)	(1,333)	2,084	(8,477)	$ 1,317
Net income (loss) attributable to common stockholders, basic and diluted	$ (1,333)	$ 369	$ (8,477)
Net income (loss) attributable to common stockholders:
Basic	$ (0.04)	$ 0.05	$ (0.28)
Diluted	$ (0.04)	$ 0.01	$ (0.28)
Weighted-average shares used to compute earnings per share attributable to common stockholders:
Basic	31,000,371	6,939,232	30,515,989	6,867,271
Diluted	31,000,371	25,766,430	30,515,989	25,683,673
Platform Direct
Revenue:
Total revenue	$ 17,826	$ 11,567	$ 32,130	$ 20,815
Platform Services
Revenue:
Total revenue	$ 27,614	$ 17,148	$ 43,626	$ 29,926

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Statement Of Income And Comprehensive Income [Abstract]
Net income (loss)	$ (1,333)	$ 2,084	$ (8,477)	$ 1,317
Other comprehensive loss:
Foreign currency translation adjustments	(64)	(93)	(157)	(130)
Comprehensive income (loss)	$ (1,397)	$ 1,991	$ (8,634)	$ 1,187

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Cash flows from operating activities:
Net income (loss)	$ (8,477)	$ 1,317
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation and amortization	872	308
Gain on change in value of convertible preferred stock warrant liability		(168)
Provision for doubtful accounts	593	517
Provision for credit memos	1,302	1,060
Stock-based compensation expense	5,379	1,048
Unrealized loss from forward contract derivatives	234
Changes in operating assets and liabilities:
Accounts receivable	(32,324)	(19,800)
Prepaid expenses and other current assets	(530)	198
Other assets	(37)	(8)
Accounts payable	21,417	20,663
Accrued liabilities	(4,484)	(7,483)
Deferred rent	243	278
Deferred revenue	272	501
Deferred offering costs		(2,012)
Deferred tax liabilities	(41)
Net cash used in operating activities	(15,581)	(3,581)
Cash flows from investing activities:
Increase in restricted cash		(408)
Purchases of property, equipment and software	(1,971)	(1,883)
Net cash used in investing activities	(1,971)	(2,291)
Cash flows from financing activities:
Proceeds from public offering of common stock , net of underwriting discounts, commission and offering costs	51,975
Repayments on notes payable	(735)	(700)
Proceeds from line of credit		11,800
Proceeds from issuance of convertible note		27
Proceeds from issuances of common stock under ESPP	721
Proceeds from options exercised	376	250
Net cash provided by financing activities	52,337	11,377
Effect of exchange rate changes on cash and cash equivalents	(157)	(130)
Net increase in cash and cash equivalents	34,628	5,375
Cash and cash equivalents, beginning of period	46,592	19,475
Cash and cash equivalents, end of period	81,220	24,850
Supplemental disclosures:
Property and equipment purchased and unpaid at period end	97
Deferred offering costs recorded in accounts payable and accrued liabilities	619	629
Cash paid for interest	$ 67	$ 122

The Company and its Significant

The Company and its Significant Accounting Policies	6 Months Ended
	Jun. 30, 2015
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 brand advertising. The Company’s customers include many of the world’s largest brands and their media agencies. The Company completed a follow-on public offering of common stock in June 2015. The Company sold 3,500,000 shares of its common stock and certain stockholders sold 1,763,246 shares. The shares were sold at a public offering price of $15.75 per share for net proceeds of $52.2 million to the Company, after deducting underwriting discounts and commissions of $2.9 million and before deducting total expenses in connection with this offering of $875. Principles of Consolidation and Basis of Presentation These unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (GAAP) and applicable rules and regulations of the Securities and Exchange Commission (SEC) regarding interim financial reporting, and include the accounts of the Company’s wholly owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, t hese condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2014. The consolidated balance sheet as of December 31, 2014 included herein was derived from the audited financial statements as of that date. These unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the financial position, results of operations, the Company’s comprehensive income (loss) and cash flows for the interim periods, but are not necessarily indicative of the results of operations to be anticipated for the full fiscal year ending December 31, 2015 or any other period. Use of Estimates The preparation of the financial statements in accordance with 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 condensed 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, delivery of impressions for campaigns using the Company’s programmatic TV (PTV) solution and assumptions used for valuation of stock-based compensation and convertible preferred stock warrant liability. Actual results could differ from those and other estimates. 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 doubtful accounts. 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 Six Months Ended December 31, June 30, 2014 2015 Balance, beginning of period $ (714 ) $ (1,369 ) Additions to allowance (903 ) (593 ) Write offs, net of recoveries 248 143 Balance, end of period $ (1,369 ) $ (1,819 ) 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 affected revenue in prior periods. The Company then applies the established rate to the current period revenue as a basis for estimating future credit memos related to revenue already recognized. The following table presents the changes in the allowance for credit memos: Year Ended Six Months Ended December 31, June 30, 2014 2015 Balance, beginning of period $ — $ (460 ) Additions to allowance (1,875 ) (1,302 ) Issued credit memos 1,415 1,183 Balance, end of period $ (460 ) $ (579 ) Fair Value Measurement and Financial Instruments The Company measures the fair value of its financial instruments in accordance with of the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) for Fair Value Measurements 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 Company had $46,592 and $81,220 of cash and cash equivalents as of December 31, 2014 and June 30, 2015, respectively, which are measured at fair value on a recurring basis. Inputs used in measuring fair value of cash and cash equivalents are categorized as Level 1. From time to time the Company enters into foreign currency forward contracts to mitigate its exposure to foreign exchange risk. At June 30, 2015 the fair value of these contracts was $234. The foreign currency forward contracts are valued using observable inputs, such as quotations on forward foreign exchange points and foreign interest rates and are categorized as Level 2. Unrealized losses from these contracts were $234 for the three and six months ended June 30, 2015. The Company did not enter into such contracts during the year ended December 31, 2014. Derivative financial instruments are utilized by the Company to reduce foreign currency exchange risks. The Company uses foreign currency forward contracts to mitigate the impact of foreign currency fluctuations of certain non-U.S. dollar denominated asset positions, primarily cash and accounts receivable. The fair value of these contracts are recorded within other current liabilities in the accompanying condensed consolidated balance sheet. Gains and losses resulting from currency exchange rate movements on these forward contracts are recognized in other income (expense) in the accompanying condensed consolidated statements of operations in the period in which the exchange rates change and offset the foreign currency gains and losses on the underlying exposure being hedged. The Company does not enter into derivative financial instruments for trading or speculative purposes. As of June 30, 2015, the Company had forward foreign exchange contracts to buy a total notional value of $20.4 million against various foreign currencies. The Company does not apply hedge accounting to its derivative transactions. The Company is exposed to credit loss in the event of nonperformance by the counterparty to the foreign currency foreign exchange contracts. Other financial instruments not measured at fair value on the accompanying consolidated balance sheets at December 31, 2014 and June 30, 2015, 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, 2014 and June 30, 2015 approximated their carrying values. The fair values of all of these instruments are categorized as Level 2 in the fair value hierarchy. Recent Accounting Pronouncements In May 2014, FASB, issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers, or ASU 2014-09, which clarifies existing accounting literature relating to how and when a company recognizes revenue. Under ASU 2014-09, a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods and services. Additionally, the guidance requires improved disclosures to help users of financial statements better understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The new standard allows for either a full retrospective or a modified retrospective transition method. The FASB decided on July 9, 2015 to defer for one year the effective date of the new revenue standard for public and nonpublic entities reporting under GAAP. The FASB also decided to permit entities to early adopt the standard as of the original effective date. The Company is in the process of determining what impact, if any, the adoption of this ASU will have on its consolidated financial statements and related disclosures. In April 2015, FASB issued ASU No. 2015-05, Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement, which provides explicit guidance to help companies evaluate the accounting for fees paid by a customer in a cloud computing arrangement. The new guidance clarifies that if a cloud computing arrangement includes a software license, the customer should account for the license consistent with its accounting for other software licenses. If the arrangement does not include a software license, the customer should account for the arrangement as a service contract. ASU 2015-05 is effective for public business entities for annual periods, including interim periods within those annual periods, beginning after December 15, 2015. For all other entities, the amendments are effective for annual periods beginning after December 15, 2015, and interim periods in annual periods beginning after December 15, 2016. An entity can elect to adopt the amendments either prospectively for all arrangements entered into or materially modified after the effective date, or retrospectively. Early adoption is permitted for all entities. The Company is in the process of determining what impact, if any, the adoption of this ASU will have on its consolidated financial statements and related disclosures.

Property, Equipment and Softwar

Property, Equipment and Software	6 Months Ended
	Jun. 30, 2015
Property Plant And Equipment [Abstract]
Property, Equipment and Software	2. Property, Equipment and Software Property, equipment and software as of December 31, 2014 and June 30, 2015 consisted of the following: December 31, June 30, 2014 2015 Computer, software and office equipment $ 1,928 $ 2,287 Capitalized internal use software costs 1,166 2,213 Furniture and fixtures 1,049 1,323 Leasehold improvements 1,043 1,414 5,186 7,237 Less accumulated depreciation and amortization (1,284 ) (2,139 ) Total $ 3,902 $ 5,098 Total depreciation and amortization expense, was $167 and $460 for three months ended June 30, 2014 and 2015, respectively and $308 and $872 for the six months ended June 30, 2014 and 2015, respectively.

Accrued Liabilities

Accrued Liabilities	6 Months Ended
	Jun. 30, 2015
Payables And Accruals [Abstract]
Accrued Liabilities	3. Accrued Liabilities Accrued liabilities at December 31, 2014 and June 30, 2015, consisted of the following: December 31, June 30, 2014 2015 Accrued media costs $ 41,436 $ 35,336 Sales commissions 2,826 2,283 Payroll and related expenses 3,757 4,527 Other accrued expenses 2,419 3,808 $ 50,438 $ 45,954 Accrued media costs consist of amounts owed to the Company’s vendors for impressions delivered through December 31, 2014 and June 30, 2015.

Debt Obligations

Debt Obligations	6 Months Ended
	Jun. 30, 2015
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 $20.0 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 $35.0 million, extended the availability and maturity of the revolving line through April 1, 2016, and added a new $3.0 million equipment term loan facility. The amendment also introduced a new financial covenant that requires the Company meet certain minimum revenue levels. As of June 30, 2015, the Company had available borrowings under the revolving line of credit of $35.0 million. The equipment term loan facility expired as of December 31, 2014 and was not renewed. The amendment also increased the amount the Company may borrow under the revolving line of credit up to the lesser of (a) $35.0 million, and (b) a borrowing base equal to 80% of eligible accounts receivable (as defined in the agreement), as amended. Advances under the revolving line of credit accrue interest at a floating per annum rate equal to the Western Edition Wall Street Journal prime rate. While the interest rate applicable to outstanding advances under the revolving line of credit 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 $2.0 million, or $1.0 million if the Company maintains more than $50.0 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 $10.0 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 of credit. Future Payments Future principal payments of long-term debt as of June 30, 2015 were as follows: 2015 (remaining 6 months) $ 629 Total 629 Discount (2 ) Less current portion (627 ) Noncurrent portion of debt $ —

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2015
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	5. Commitments and Contingencies Lease Commitments At various dates throughout 2014 and during the six months ended June 30, 2015, 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 June 30, 2015 are as follows: Operating leases 2015 (remaining 6 months) $ 1,247 2016 2,034 2017 1,229 2018 879 2019 613 Thereafter 1,063 Total minimum lease payments $ 7,065 Rent expense was $546 and $650 for the three months ended June 30, 2014 and 2015, respectively and $1,038 and $1,276 for the six months ended June 30, 2014 and 2015, respectively. Irrevocable Standby Letters of Credit In July 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 letter of credit automatically renews on its anniversary so long that the sub-lease is still effective. The letter of credit may be canceled prior to the expiration date upon the written request of the beneficiary. 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 letter of credit automatically renews on its anniversary so long that the lease is still effective. The letter of credit 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 respective leases, therefore, the letters of credit are recorded as restricted cash and are classified as long-term assets on the condensed 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.

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Jun. 30, 2015
Share Based Compensation [Abstract]
Stock-Based Compensation	6. 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. 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 16, 2014, though it continues to govern outstanding awards issued under the 2007 Plan prior to July 16, 2014. In February 2014, t he Company’s board of directors and stockholders approved and adopted the TubeMogul, Inc. 2014 Equity Incentive Plan (the 2014 Plan), and the 2014 Plan became effective on July 16, 2014, the day immediately preceding the Company’s initial public offering (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. The Company 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 automatically increased on January 1, 2015 by 1,491,894 shares and will continue to increase on 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; or (b) an amount determined by the Company’s board of directors. This reserve may also 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- Weighted average average average Outstanding exercise grant Total intrinsic remaining Aggregate number of price per date fair value of contractual intrinsic shares share value exercises life value Balance at December 31, 2014 5,166,223 $ 5.32 7.75 $ 83,132 Options granted 111,748 14.91 $ 8.95 — — Options exercised (487,432 ) 0.77 $ 6,854 — — Options canceled (53,465 ) 3.57 — — Balance at June 30, 2015 4,737,074 $ 6.04 7.48 $ 42,820 Options exercisable and vested at June 30, 2015 2,317,279 $ 1.91 6.18 $ 29,076 Options vested and expected to vest at June 30, 2015 4,580,347 $ 5.88 7.43 $ 42,038 At June 30, 2015, there was approximately $11.4 million of total unrecognized compensation cost related to unvested options granted under the compensation plan. The remaining unrecognized compensation cost is expected to be recognized over the weighted average remaining vesting period of approximately 2.16 years at June 30, 2015. 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: Three Six Months Ended June 30, June 30, 2015 2014 2015 Risk-free interest rate 1.55% to 1.63% 1.8% to 2.0% 1.18% to 1.63% Dividend yield — % — % — % Volatility 70% 66% to 67% 70% Expected term 4.5 to 5.05 years 6.0 to 6.4 years 4.5 to 6.5 years The following table summarizes the Plan’s RSU activity: Weighted- Outstanding Average number of Grant Date shares Fair Value Balance at December 31, 2014 998,145 $ 10.99 RSUs granted 779,918 15.06 RSUs released (160,126 ) 10.92 RSUs canceled (155,946 ) 13.61 Balance at June 30, 2015 1,461,991 $ 13.52 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 June 30, 2015, there was approximately $18.2 million of total unrecognized compensation cost related to unvested RSUs granted under the compensation plan. The remaining unrecognized compensation cost is expected to be recognized over the weighted average remaining vesting period of approximately 3.31 years at June 30, 2015. The following table summarizes the effects of stock-based compensation in the Company’s accompanying condensed consolidated statements of operations: Three Months Ended Six Months Ended June 31, June 30, 2014 2015 2014 2015 (in thousands) Research and development $ 209 $ 824 $ 311 $ 1,470 Sales and marketing 193 808 333 1,514 General and administrative 230 1,346 404 2,395 Total stock-based compensation $ 632 $ 2,978 $ 1,048 $ 5,379 In February 2014, the Company’s board of directors adopted and the stockholders approved the Company’s 2014 Employee Stock Purchase Plan (the ESPP), which became effective on July 17, 2014. The ESPP allows eligible employees to purchase shares of the Company’s common stock at a discount 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 ended 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. During the three months ended June 30, 2015 no shares were purchased under the ESPP. During the six months ended June 30, 2015, 121,153 shares were purchased under the ESPP.

Net Income (Loss) Per Share

Net Income (Loss) Per Share	6 Months Ended
	Jun. 30, 2015
Earnings Per Share [Abstract]
Net Income (Loss) Per Share	7. Net Income (Loss) per Share The Company calculates its basic and diluted net income (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 three and six months ended June 30, 2015. The net income per share attributable to common stockholders is allocated based on the contractual participation rights of the preferred stock as if the income for the year has been distributed. Net income is first allocated to participating securities’ dividends. Undistributed net income for a given period is apportioned to participating securities based on the weighted-average shares of each class of common stock outstanding during the applicable period as a percentage of the total weighted-average shares outstanding during the same period. The Company’s basic net income per share of common stock is computed by dividing the net income attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. All participating securities are excluded from the basic weighted-average shares of common stock outstanding. Diluted net income per share attributable to common stockholders is computed by dividing net income attributable to common stockholders by the weighted-average shares outstanding, including potentially dilutive shares of common stock assuming the dilutive effect of potential shares of common stock for the period determined using the treasury stock method. For purpose of this calculation, employee stock options to purchase common stock and RSUs of 6.2 million shares and common stock to be purchased under the ESPP of 87,824 shares are considered common stock equivalents but have been excluded from the calculation of diluted net loss per share for the three and six months ended June 30, 2015, as their effect is antidilutive given that the Company had net losses for these periods. The numerators and denominators of the basic and diluted EPS computations for the Company’s common stock are calculated as follows (in thousands, except per share data): Three Months Ended Six Months Ended June 30, June 30, 2014 2015 2014 2015 Basic Numerator Net income (loss) $ 2,084 $ (1,333 ) $ 1,317 $ (8,477 ) Noncumulative dividends on convertible preferred stock (891 ) — (1,317 ) — Undistributed earnings allocated to participating securities (824 ) — — — Allocation of distributed earnings attributable to common stockholders $ 369 $ (1,333 ) $ — $ (8,477 ) Denominator Weighted-average shares used in computing net income (loss) per share attributable to common stockholders, basic 6,939,232 $ 31,000,371 $ 6,867,271 $ 30,515,989 Net income (loss) per share attributable to common stockholders, basic $ 0.05 $ (0.04 ) $ — $ (0.28 ) Diluted Numerator Net income (loss) per share attributable to common stockholders, diluted $ 369 $ (1,333 ) $ — $ (8,477 ) Denominator Number of shares used for basic EPS computation 6,939,232 $ 31,000,371 6,867,271 $ 30,515,989 Convertible preferred stock 15,510,314 — 15,510,314 — Employee stock options and RSUs 3,223,621 — 3,213,087 — ESPP — — — — Warrants 93,263 — 93,001 — Weighted-average shares used in computing net income (loss) per share attributable to common stockholders, diluted 25,766,430 31,000,371 25,683,673 30,515,989 Net income (loss) per share attributable to common stockholders, diluted $ 0.01 $ (0.04 ) $ — $ (0.28 )

Employee Benefit Plans

Employee Benefit Plans	6 Months Ended
	Jun. 30, 2015
Postemployment Benefits [Abstract]
Employee Benefit Plans	8. Employee Benefit Plans The Company established a 401(k) Profit Sharing Plan (the 401(k) Plan) in 2009, pursuant to which the Company may make a discretionary contribution to the 401(k) Plan each year, allocable to all plan participants. The Company is responsible for administrative expenses of the 401(k) Plan. On January 1, 2015, t he Company began matching 25% of the employees’ contributions, subject to vesting conditions, to the 401(k) Plan. The Company contributed $199 and $391 for the three and six months ended June 30, 2015, respectively.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2015
Income Tax Disclosure [Abstract]
Income Taxes	9. Income Taxes The Company is subject to income tax in the U.S. as well as other tax jurisdictions in which it conducts business. Earnings from non-U.S. activities are subject to local country income tax. The Company does not provide for federal income taxes on the undistributed earnings of its foreign subsidiaries as such earnings are to be reinvested indefinitely. The Company recorded an income tax provision of $92 and $95 for the three months ended June 30, 2014 and 2015, respectively, and $137 and $209 for the six months ended June 30, 2014 and 2015, respectively, related to foreign income taxes and state minimum taxes. Based on the available objective evidence during the six months ended June 30, 2015, management believes it is more likely than not that the tax benefits of the U.S. and Japan losses incurred during the six months ended June 30, 2015 may not be realized by the end of the 2015 fiscal year. Accordingly, the Company did not record the tax benefits of the U.S. and Japan losses incurred during the six months ended June 30, 2015. The primary difference between the effective tax rate and the federal statutory tax rate relates to foreign tax rate differences, meals and entertainment and state and local minimum and capital taxes. As of June 30, 2015, the Company had no material uncertain tax positions. 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 (the Code), and similar state provisions. Any annual limitation may result in the expiration of net operating losses before utilization.

Segment Information

Segment Information	6 Months Ended
	Jun. 30, 2015
Segment Reporting [Abstract]
Segment Information	10. 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 brand advertising.

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2015
Subsequent Events [Abstract]
Subsequent Events	11. Subsequent Events On July 10, 2015, in connection with the Company’s follow-on offering on June 10, 2015, the underwriters partially exercised their over-allotment option to purchase 469,486 shares of common stock. Net proceeds from partial exercise of the over-allotment option were $7.0 million, after deducting underwriter discounts and commissions and before deducting expenses.

The Company and its Significa18

The Company and its Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2015
Accounting Policies [Abstract]
Principles of Consolidation and Basis of Presentation	Principles of Consolidation and Basis of Presentation These unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (GAAP) and applicable rules and regulations of the Securities and Exchange Commission (SEC) regarding interim financial reporting, and include the accounts of the Company’s wholly owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, t hese condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2014. The consolidated balance sheet as of December 31, 2014 included herein was derived from the audited financial statements as of that date. These unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the financial position, results of operations, the Company’s comprehensive income (loss) and cash flows for the interim periods, but are not necessarily indicative of the results of operations to be anticipated for the full fiscal year ending December 31, 2015 or any other period.
Use of Estimates	Use of Estimates The preparation of the financial statements in accordance with 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 condensed 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, delivery of impressions for campaigns using the Company’s programmatic TV (PTV) solution and assumptions used for valuation of stock-based compensation and convertible preferred stock warrant liability. Actual results could differ from those and other estimates.
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 doubtful accounts. 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 Six Months Ended December 31, June 30, 2014 2015 Balance, beginning of period $ (714 ) $ (1,369 ) Additions to allowance (903 ) (593 ) Write offs, net of recoveries 248 143 Balance, end of period $ (1,369 ) $ (1,819 ) 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 affected revenue in prior periods. The Company then applies the established rate to the current period revenue as a basis for estimating future credit memos related to revenue already recognized. The following table presents the changes in the allowance for credit memos: Year Ended Six Months Ended December 31, June 30, 2014 2015 Balance, beginning of period $ — $ (460 ) Additions to allowance (1,875 ) (1,302 ) Issued credit memos 1,415 1,183 Balance, end of period $ (460 ) $ (579 )
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 of the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) for Fair Value Measurements 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 Company had $46,592 and $81,220 of cash and cash equivalents as of December 31, 2014 and June 30, 2015, respectively, which are measured at fair value on a recurring basis. Inputs used in measuring fair value of cash and cash equivalents are categorized as Level 1. From time to time the Company enters into foreign currency forward contracts to mitigate its exposure to foreign exchange risk. At June 30, 2015 the fair value of these contracts was $234. The foreign currency forward contracts are valued using observable inputs, such as quotations on forward foreign exchange points and foreign interest rates and are categorized as Level 2. Unrealized losses from these contracts were $234 for the three and six months ended June 30, 2015. The Company did not enter into such contracts during the year ended December 31, 2014. Derivative financial instruments are utilized by the Company to reduce foreign currency exchange risks. The Company uses foreign currency forward contracts to mitigate the impact of foreign currency fluctuations of certain non-U.S. dollar denominated asset positions, primarily cash and accounts receivable. The fair value of these contracts are recorded within other current liabilities in the accompanying condensed consolidated balance sheet. Gains and losses resulting from currency exchange rate movements on these forward contracts are recognized in other income (expense) in the accompanying condensed consolidated statements of operations in the period in which the exchange rates change and offset the foreign currency gains and losses on the underlying exposure being hedged. The Company does not enter into derivative financial instruments for trading or speculative purposes. As of June 30, 2015, the Company had forward foreign exchange contracts to buy a total notional value of $20.4 million against various foreign currencies. The Company does not apply hedge accounting to its derivative transactions. The Company is exposed to credit loss in the event of nonperformance by the counterparty to the foreign currency foreign exchange contracts. Other financial instruments not measured at fair value on the accompanying consolidated balance sheets at December 31, 2014 and June 30, 2015, 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, 2014 and June 30, 2015 approximated their carrying values. The fair values of all of these instruments are categorized as Level 2 in the fair value hierarchy.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In May 2014, FASB, issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers, or ASU 2014-09, which clarifies existing accounting literature relating to how and when a company recognizes revenue. Under ASU 2014-09, a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods and services. Additionally, the guidance requires improved disclosures to help users of financial statements better understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The new standard allows for either a full retrospective or a modified retrospective transition method. The FASB decided on July 9, 2015 to defer for one year the effective date of the new revenue standard for public and nonpublic entities reporting under GAAP. The FASB also decided to permit entities to early adopt the standard as of the original effective date. The Company is in the process of determining what impact, if any, the adoption of this ASU will have on its consolidated financial statements and related disclosures. In April 2015, FASB issued ASU No. 2015-05, Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement, which provides explicit guidance to help companies evaluate the accounting for fees paid by a customer in a cloud computing arrangement. The new guidance clarifies that if a cloud computing arrangement includes a software license, the customer should account for the license consistent with its accounting for other software licenses. If the arrangement does not include a software license, the customer should account for the arrangement as a service contract. ASU 2015-05 is effective for public business entities for annual periods, including interim periods within those annual periods, beginning after December 15, 2015. For all other entities, the amendments are effective for annual periods beginning after December 15, 2015, and interim periods in annual periods beginning after December 15, 2016. An entity can elect to adopt the amendments either prospectively for all arrangements entered into or materially modified after the effective date, or retrospectively. Early adoption is permitted for all entities. The Company is in the process of determining what impact, if any, the adoption of this ASU will have on its consolidated financial statements and related disclosures.

The Company and its Significa19

The Company and its Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2015
Accounting Policies [Abstract]
Schedule of Allowance for Doubtful accounts	The following table presents the changes in the allowance for doubtful accounts: Year Ended Six Months Ended December 31, June 30, 2014 2015 Balance, beginning of period $ (714 ) $ (1,369 ) Additions to allowance (903 ) (593 ) Write offs, net of recoveries 248 143 Balance, end of period $ (1,369 ) $ (1,819 )
Schedule of Changes in Allowance for Credit Memos	The following table presents the changes in the allowance for credit memos: Year Ended Six Months Ended December 31, June 30, 2014 2015 Balance, beginning of period $ — $ (460 ) Additions to allowance (1,875 ) (1,302 ) Issued credit memos 1,415 1,183 Balance, end of period $ (460 ) $ (579 )

Property, Equipment and Softw20

Property, Equipment and Software (Tables)	6 Months Ended
	Jun. 30, 2015
Property Plant And Equipment [Abstract]
Schedule of Property, Equipment and Software	Property, equipment and software as of December 31, 2014 and June 30, 2015 consisted of the following: December 31, June 30, 2014 2015 Computer, software and office equipment $ 1,928 $ 2,287 Capitalized internal use software costs 1,166 2,213 Furniture and fixtures 1,049 1,323 Leasehold improvements 1,043 1,414 5,186 7,237 Less accumulated depreciation and amortization (1,284 ) (2,139 ) Total $ 3,902 $ 5,098

Accrued Liabilities (Tables)

Accrued Liabilities (Tables)	6 Months Ended
	Jun. 30, 2015
Payables And Accruals [Abstract]
Schedule of Accrued Liabilities	Accrued liabilities at December 31, 2014 and June 30, 2015, consisted of the following: December 31, June 30, 2014 2015 Accrued media costs $ 41,436 $ 35,336 Sales commissions 2,826 2,283 Payroll and related expenses 3,757 4,527 Other accrued expenses 2,419 3,808 $ 50,438 $ 45,954

Debt Obligations (Tables)

Debt Obligations (Tables)	6 Months Ended
	Jun. 30, 2015
Debt Disclosure [Abstract]
Future Principal Payments of Long-Term Debt	Future principal payments of long-term debt as of June 30, 2015 were as follows: 2015 (remaining 6 months) $ 629 Total 629 Discount (2 ) Less current portion (627 ) Noncurrent portion of debt $ —

Commitments and Contingencies (

Commitments and Contingencies (Tables)	6 Months Ended
	Jun. 30, 2015
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 June 30, 2015 are as follows: Operating leases 2015 (remaining 6 months) $ 1,247 2016 2,034 2017 1,229 2018 879 2019 613 Thereafter 1,063 Total minimum lease payments $ 7,065

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2015
Summary of Stock Option Plan	The following table summarizes the Plan’s stock option activity: Weighted- Weighted- Weighted average average average Outstanding exercise grant Total intrinsic remaining Aggregate number of price per date fair value of contractual intrinsic shares share value exercises life value Balance at December 31, 2014 5,166,223 $ 5.32 7.75 $ 83,132 Options granted 111,748 14.91 $ 8.95 — — Options exercised (487,432 ) 0.77 $ 6,854 — — Options canceled (53,465 ) 3.57 — — Balance at June 30, 2015 4,737,074 $ 6.04 7.48 $ 42,820 Options exercisable and vested at June 30, 2015 2,317,279 $ 1.91 6.18 $ 29,076 Options vested and expected to vest at June 30, 2015 4,580,347 $ 5.88 7.43 $ 42,038
Schedule of Share-based Compensation, Restricted Stock Unit Award Activity	The following table summarizes the Plan’s RSU activity: Weighted- Outstanding Average number of Grant Date shares Fair Value Balance at December 31, 2014 998,145 $ 10.99 RSUs granted 779,918 15.06 RSUs released (160,126 ) 10.92 RSUs canceled (155,946 ) 13.61 Balance at June 30, 2015 1,461,991 $ 13.52
Summary of Effects of Stock-Based Compensation	The following table summarizes the effects of stock-based compensation in the Company’s accompanying condensed consolidated statements of operations: Three Months Ended Six Months Ended June 31, June 30, 2014 2015 2014 2015 (in thousands) Research and development $ 209 $ 824 $ 311 $ 1,470 Sales and marketing 193 808 333 1,514 General and administrative 230 1,346 404 2,395 Total stock-based compensation $ 632 $ 2,978 $ 1,048 $ 5,379
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: Three Six Months Ended June 30, June 30, 2015 2014 2015 Risk-free interest rate 1.55% to 1.63% 1.8% to 2.0% 1.18% to 1.63% Dividend yield — % — % — % Volatility 70% 66% to 67% 70% Expected term 4.5 to 5.05 years 6.0 to 6.4 years 4.5 to 6.5 years

Net Income (Loss) Per Share (Ta

Net Income (Loss) Per Share (Tables)	6 Months Ended
	Jun. 30, 2015
Earnings Per Share [Abstract]
Schedule of Computation of Net Loss per Common Share	The numerators and denominators of the basic and diluted EPS computations for the Company’s common stock are calculated as follows (in thousands, except per share data): Three Months Ended Six Months Ended June 30, June 30, 2014 2015 2014 2015 Basic Numerator Net income (loss) $ 2,084 $ (1,333 ) $ 1,317 $ (8,477 ) Noncumulative dividends on convertible preferred stock (891 ) — (1,317 ) — Undistributed earnings allocated to participating securities (824 ) — — — Allocation of distributed earnings attributable to common stockholders $ 369 $ (1,333 ) $ — $ (8,477 ) Denominator Weighted-average shares used in computing net income (loss) per share attributable to common stockholders, basic 6,939,232 $ 31,000,371 $ 6,867,271 $ 30,515,989 Net income (loss) per share attributable to common stockholders, basic $ 0.05 $ (0.04 ) $ — $ (0.28 ) Diluted Numerator Net income (loss) per share attributable to common stockholders, diluted $ 369 $ (1,333 ) $ — $ (8,477 ) Denominator Number of shares used for basic EPS computation 6,939,232 $ 31,000,371 6,867,271 $ 30,515,989 Convertible preferred stock 15,510,314 — 15,510,314 — Employee stock options and RSUs 3,223,621 — 3,213,087 — ESPP — — — — Warrants 93,263 — 93,001 — Weighted-average shares used in computing net income (loss) per share attributable to common stockholders, diluted 25,766,430 31,000,371 25,683,673 30,515,989 Net income (loss) per share attributable to common stockholders, diluted $ 0.01 $ (0.04 ) $ — $ (0.28 )

The Company and its Significa26

The Company and its Significant Accounting Policies - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2015	Dec. 31, 2014
Schedule Of Significant Accounting Policies [Line Items]
Proceeds from public offering of common stock , net of underwriting discounts, commission and offering costs		$ 51,975
Cash and cash equivalents	$ 81,220	81,220	$ 46,592
Unrealized loss from forward contract derivatives	234	234
Outstanding forward contracts notional amount	20,400	20,400
Foreign Currency Forward Contract
Schedule Of Significant Accounting Policies [Line Items]
Derivative, fair value, net	$ 234	$ 234
Follow-On Offering | Common Stock
Schedule Of Significant Accounting Policies [Line Items]
Issuance of common stock		3,500,000
Proceeds from public offering of common stock , net of underwriting discounts, commission and offering costs		$ 52,200
Underwriting discounts and commissions		2,900
Offering cost		$ 875
Issuance price per share	$ 15.75	$ 15.75
Stockholders | Common Stock
Schedule Of Significant Accounting Policies [Line Items]
Issuance of common stock		1,763,246

The Company and its Significa27

The Company and its Significant Accounting Policies - Schedule of Allowance for Doubtful Accounts (Details) - Doubtful Accounts Receivables and Credit Memos - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Valuation And Qualifying Accounts Disclosure [Line Items]
Balance, beginning of period	$ (1,369)	$ (714)
Additions to allowance	(593)	(903)
Write offs, net of recoveries	143	248
Balance, end of period	$ (1,819)	$ (1,369)

The Company and its Significa28

The Company and its Significant Accounting Policies - Schedule of Allowance for Credit Memos (Details) - USD ($) $ in Thousands	6 Months Ended		12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Valuation And Qualifying Accounts Disclosure [Line Items]
Provision for credit memos	$ 1,302	$ 1,060
Credit Memos
Valuation And Qualifying Accounts Disclosure [Line Items]
Balance, beginning of period	(460)
Additions to allowance	(1,302)		$ (1,875)
Provision for credit memos	1,183		1,415
Balance, end of period	$ (579)		$ (460)

Property, Equipment and Softw29

Property, Equipment and Software - Schedule of Property, Equipment and Software (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Property Plant And Equipment [Line Items]
Property, equipment and software, gross	$ 7,237	$ 5,186
Less accumulated depreciation and amortization	(2,139)	(1,284)
Total	5,098	3,902
Computer, Software and Office Equipment
Property Plant And Equipment [Line Items]
Property, equipment and software, gross	2,287	1,928
Capitalized Internal Use Software Costs
Property Plant And Equipment [Line Items]
Property, equipment and software, gross	2,213	1,166
Furniture and Fixtures
Property Plant And Equipment [Line Items]
Property, equipment and software, gross	1,323	1,049
Leasehold Improvements
Property Plant And Equipment [Line Items]
Property, equipment and software, gross	$ 1,414	$ 1,043

Property, Equipment and Softw30

Property, Equipment and Software - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Property Plant And Equipment [Abstract]
Depreciation and amortization	$ 460	$ 167	$ 872	$ 308

Accrued Liabilities - Schedule

Accrued Liabilities - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Payables And Accruals [Abstract]
Accrued media costs	$ 35,336	$ 41,436
Sales commissions	2,283	2,826
Payroll and related expenses	4,527	3,757
Other accrued expenses	3,808	2,419
Total accrued liabilities	$ 45,954	$ 50,438

Debt Obligations - Growth Capit

Debt Obligations - Growth Capital Term-Debt and Working Capital Line of Credit - Additional Information (Details) - USD ($)	Apr. 18, 2014	Aug. 21, 2013	Jun. 30, 2015
Line Of Credit Facility [Line Items]
Cash on deposit with lender plus availability under revolving line of credit required to deliver additional reporting			$ 10,000,000
Deposits with Lender More Than Fifty Million
Line Of Credit Facility [Line Items]
Investment Owned, Balance, Principal Amount			2,000,000
Deposits with Lender Less Than or Equals to Fifty Million
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
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	Apr. 1, 2016
Available borrowing with revolving line of credit			$ 35,000,000
Line of credit facility, covenant terms			The amendment also increased the amount the Company may borrow under the revolving line of credit up to the lesser of (a) $35.0 million, and (b) a borrowing base equal to 80% of eligible accounts receivable (as defined in the agreement), as amended. Advances under the revolving line of credit accrue interest at a floating per annum rate equal to the Western Edition Wall Street Journal prime rate. While the interest rate applicable to outstanding advances under the revolving line of credit 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 $2.0 million, or $1.0 million if the Company maintains more than $50.0 million in deposits with the lender.
Equipment Term Loan Facility
Line Of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity	$ 3,000,000

Debt Obligations - Future Princ

Debt Obligations - Future Principal Payments of Long-Term Debt (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Debt Disclosure [Abstract]
2015 (remaining 6 months)	$ 629
Total	629
Discount	(2)
Less current portion	$ (627)	$ (1,362)

Commitments and Contingencies -

Commitments and Contingencies - Commitments For Minimum Rentals Under Operating Lease (Details) $ in Thousands	Jun. 30, 2015USD ($)
Commitments And Contingencies Disclosure [Abstract]
2015 (remaining 6 months)	$ 1,247
2,016	2,034
2,017	1,229
2,018	879
2,019	613
Thereafter	1,063
Total minimum lease payments	$ 7,065

Commitments and Contingencies35

Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Feb. 28, 2014	Jul. 31, 2013
Commitments And Contingencies Disclosure [Abstract]
Rent expense	$ 650	$ 546	$ 1,276	$ 1,038
Irrevocable letters of credit amount					$ 408	$ 334

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Details) - USD ($) $ in Millions	1 Months Ended	3 Months Ended	6 Months Ended
	Feb. 28, 2014	Jun. 30, 2015	Jun. 30, 2015	Jan. 01, 2015
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 automatically increased on January 1, 2015 by 1,491,894 shares and will continue to increase on 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; or (b) an amount determined by the Company’s board of directors.
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	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	6,093,703
2014 Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Common stock, shares authorized		2,500,000	2,500,000	1,491,894
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%
Number of shares purchased under plan		0	121,153
Employee Stock Option
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized compensation cost		$ 11.4	$ 11.4
Unrecognized compensation cost expected to be recognized period			2 years 1 month 28 days
Employee Stock Option | 2007 Equity Compensation Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Options granted vesting period			4 years
Employee Stock Option | 2007 Equity Compensation Plan | After one year from the date of grant [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
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
Employee Stock Option | 2014 Plan | After one year from the date of grant [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Percentage of options granted vesting period			25.00%
Restricted Stock Units (RSUs)
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized compensation cost		$ 18.2	$ 18.2
Unrecognized compensation cost expected to be recognized period			3 years 3 months 22 days
Restricted Stock Units (RSUs) | 2007 Equity Compensation Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Options granted vesting period			4 years
Restricted Stock Units (RSUs) | 2007 Equity Compensation Plan | After one year from the date of grant [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
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
Restricted Stock Units (RSUs) | 2014 Plan | After one year from the date of grant [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Percentage of options granted vesting period			25.00%
Maximum | Employee Stock Option | 2007 Equity Compensation 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

Stock-Based Compensation - Summ

Stock-Based Compensation - Summary of Stock Option Plan (Details) - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Outstanding number of shares
Outstanding number of shares, Beginning	5,166,223
Outstanding number of shares, Options granted	111,748
Outstanding number of shares, Options exercised	(487,432)
Outstanding number of shares, Options canceled	(53,465)
Outstanding number of shares, Ending	4,737,074	5,166,223
Outstanding number of shares, Options exercisable and vested	2,317,279
Outstanding number of shares, Options vested and expected to vest	4,580,347
Weighted-average exercise price per share
Weighted average exercise price per shares, Beginning	$ 5.32
Weighted average exercise price per shares, Options granted	14.91
Weighted average exercise price per shares, Options exercised	0.77
Weighted average exercise price per shares, Options canceled	3.57
Weighted average exercise price per shares, Ending	6.04	$ 5.32
Weighted average exercise price per shares, Options exercisable and vested	1.91
Weighted average exercise price per shares, Options vested and expected to vest	5.88
Weighted-average grant date fair value
Weighted average grant date fair value, Options granted	$ 8.95
Total intrinsic value of shares
Total intrinsic value of shares, Options exercised	$ 6,854
Weighted average remaining contractual life
Weighted average remaining contractual life, Beginning	7 years 5 months 23 days	7 years 9 months
Weighted average remaining contractual life, Options exercisable and vested	6 years 2 months 5 days
Weighted average remaining contractual life, Options vested and expected to vest	7 years 5 months 5 days
Aggregate intrinsic value
Aggregate intrinsic value, Beginning	$ 83,132
Aggregate intrinsic value, Ending	42,820	$ 83,132
Aggregate intrinsic value, Options exercisable and vested	29,076
Aggregate intrinsic value, Options vested and excepted to vest	$ 42,038

Stock-Based Compensation - Sche

Stock-Based Compensation - Schedule of Assumptions Used to Calculate Fair Value of Options (Details)	3 Months Ended	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2015	Jun. 30, 2014
Awards Subject To Market Condition
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Risk-free interest rate, Minimum		1.18%
Risk-free interest rate, Maximum		1.63%
Volatility		70.00%
Minimum | Awards Subject To Market Condition
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected term		4 years 6 months
Maximum | Awards Subject To Market Condition
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected term		6 years 6 months
Employees
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Risk-free interest rate, Minimum	1.55%		1.80%
Risk-free interest rate, Maximum	1.63%		2.00%
Volatility	70.00%
Volatility, Minimum			66.00%
Volatility, Maximum			67.00%
Employees | Minimum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected term	4 years 6 months		6 years
Employees | Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected term	5 years 18 days		6 years 4 months 24 days

Stock-Based Compensation - Su39

Stock-Based Compensation - Summary of Plans RSU Activity (Details) - 6 months ended Jun. 30, 2015 - Restricted Stock Units (RSUs) - $ / shares	Total
Outstanding number of shares
Outstanding number of shares, Beginning	998,145
Outstanding number of shares, RSUs granted	779,918
Outstanding number of shares, RSUs released	(160,126)
Outstanding number of shares, RSUs canceled	(155,946)
Outstanding number of shares, Ending	1,461,991
Weighted-average Grant Date Fair Value
Weighted-Average Grant Date Fair Value, Beginning	$ 10.99
Weighted-Average Grant Date Fair Value, granted	15.06
Weighted-Average Grant Date Fair Value, released	10.92
Weighted-Average Grant Date Fair Value, canceled	13.61
Weighted-Average Grant Date Fair Value, Ending	$ 13.52

Stock-Based Compensation - Su40

Stock-Based Compensation - Summary of Effects of Stock-Based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation	$ 2,978	$ 632	$ 5,379	$ 1,048
Research and development
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation	824	209	1,470	311
Sales and marketing
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation	808	193	1,514	333
General and administrative
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation	$ 1,346	$ 230	$ 2,395	$ 404

Net Income (Loss) Per Share - A

Net Income (Loss) Per Share - Additional Information (Details) - Jun. 30, 2015 - shares	Total	Total
Employee stock purchase plan (ESPP)
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive securities that were excluded from calculation of diluted net loss per share	87,824	87,824
Restricted Stock Units (RSUs)
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive securities that were excluded from calculation of diluted net loss per share	6,200,000	6,200,000

Net Income (Loss) Per Share - S

Net Income (Loss) Per Share - Schedule of Computation of Net Loss per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Numerator
Net income (loss)	$ (1,333)	$ 2,084	$ (8,477)	$ 1,317
Noncumulative dividends on convertible preferred stock		(891)		$ (1,317)
Undistributed earnings allocated to participating securities		(824)
Allocation of distributed earnings attributable to common stockholders	$ (1,333)	$ 369	$ (8,477)
Denominator
Weighted-average shares used in computing net income (loss) per share attributable to common stockholders, basic	31,000,371	6,939,232	30,515,989	6,867,271
Net income (loss) per share attributable to common stockholders, basic	$ (0.04)	$ 0.05	$ (0.28)
Numerator
Net income (loss) per share attributable to common stockholders, diluted	$ (1,333)	$ 369	$ (8,477)
Denominator
Weighted-average shares used in computing net income (loss) per share attributable to common stockholders, basic	31,000,371	6,939,232	30,515,989	6,867,271
Convertible preferred stock		15,510,314		15,510,314
Weighted-average shares used in computing net income (loss) per share attributable to common stockholders, diluted	31,000,371	25,766,430	30,515,989	25,683,673
Net income (loss) per share attributable to common stockholders, diluted	$ (0.04)	$ 0.01	$ (0.28)
Employee stock options and RSUs
Denominator
Convertible preferred stock		3,223,621		3,213,087
Warrants
Denominator
Convertible preferred stock		93,263		93,001

Employee Benefit Plans - Additi

Employee Benefit Plans - Additional Information (Details) - Jun. 30, 2015 - USD ($)	Total	Total
Postemployment Benefits [Abstract]
Description of Profit Sharing Plan (the Plan)		The Company established a 401(k) Profit Sharing Plan (the 401(k) Plan) in 2009, pursuant to which the Company may make a discretionary contribution to the 401(k) Plan each year, allocable to all plan participants. The Company is responsible for administrative expenses of the 401(k) Plan.
Percentage of employer matching contribution		25.00%
Amount of employer matching contribution	$ 199,000	$ 391,000

Income Taxes - Additional Infor

Income Taxes - Additional Information (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Income Tax Examination [Line Items]
Foreign income taxes and state minimum taxes	$ 95,000	$ 92,000	$ 209,000	$ 137,000
Material uncertain tax positions	$ 0		0
US
Income Tax Examination [Line Items]
Current federal tax benefit			0
Japan
Income Tax Examination [Line Items]
Current foreign tax benefit			$ 0

Segment Information - Additiona

Segment Information - Additional Information (Details)	6 Months Ended
	Jun. 30, 2015USD ($)
Segment Reporting [Abstract]
Number of operating business activity	1

Subsequent Events - Additional

Subsequent Events - Additional Information (Details) - Jul. 10, 2015 - Common Stock - Subsequent Event - Over-Allotment Option - USD ($) $ in Millions	Total
Subsequent Event [Line Items]
Issuance of common stock	469,486
Net proceeds from partial exercise of over-allotment option	$ 7