Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Oct. 22, 2015 | |
Document and Entity Information | ||
Entity Registrant Name | 2U, Inc. | |
Entity Central Index Key | 1,459,417 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2015 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 45,576,318 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 175,324 | $ 86,929 |
Accounts receivable, net | 12,688 | 350 |
Advance to clients, current | 1,163 | |
Prepaid expenses and other current assets | 5,191 | 2,709 |
Total current assets | 194,366 | 89,988 |
Property and equipment, net | 7,791 | 6,755 |
Capitalized content development costs, net | 16,760 | 13,155 |
Advance to clients, non-current | 1,387 | 1,675 |
Other non-current assets | 8,259 | 1,466 |
Total assets | 228,563 | 113,039 |
Current liabilities: | ||
Accounts payable | 4,330 | 2,293 |
Accrued expenses and other current liabilities | 20,986 | 17,138 |
Deferred revenue | 3,818 | 1,906 |
Refunds payable | 3,512 | 2,431 |
Total current liabilities | 32,646 | 23,768 |
Rebate reserve | 407 | 639 |
Other non-current liabilities | 594 | 621 |
Total liabilities | $ 33,647 | $ 25,028 |
Commitments and contingencies (Note 5) | ||
Stockholders' equity (deficit): | ||
Common stock, $0.001 par value, 200,000,000 shares authorized, 45,525,460 shares issued and outstanding as of September 30, 2015; 40,735,069 shares issued and outstanding as of December 31, 2014 | $ 46 | $ 41 |
Additional paid-in capital | 347,051 | 216,818 |
Accumulated deficit | (152,181) | (128,848) |
Total stockholders' equity | 194,916 | 88,011 |
Total liabilities, and stockholders' equity | $ 228,563 | $ 113,039 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2015 | Dec. 31, 2014 |
Condensed Consolidated Balance Sheets | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 45,525,460 | 40,735,069 |
Common stock, shares outstanding | 45,525,460 | 40,735,069 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Condensed Consolidated Statements of Operations | ||||
Revenue | $ 37,092 | $ 28,407 | $ 106,942 | $ 79,483 |
Costs and expenses: | ||||
Servicing and support | 7,845 | 6,598 | 23,299 | 19,846 |
Technology and content development | 7,082 | 5,726 | 19,682 | 17,218 |
Program marketing and sales | 21,567 | 16,971 | 62,680 | 48,922 |
General and administrative | 8,477 | 6,303 | 24,059 | 17,447 |
Total costs and expenses | 44,971 | 35,598 | 129,720 | 103,433 |
Loss from operations | (7,879) | (7,191) | (22,778) | (23,950) |
Other income (expense): | ||||
Interest expense | (127) | (176) | (379) | (1,094) |
Interest income | 21 | 30 | 74 | 62 |
Other | (250) | (250) | ||
Total other income (expense) | (356) | (146) | (555) | (1,032) |
Loss before income taxes | (8,235) | (7,337) | (23,333) | (24,982) |
Net loss | (8,235) | (7,337) | (23,333) | (24,982) |
Preferred stock accretion | (89) | |||
Net loss attributable to holders of common stock | $ (8,235) | $ (7,337) | $ (23,333) | $ (25,071) |
Net loss per share attributable to holders of common stock, basic and diluted (in dollars per share) | $ (0.20) | $ (0.18) | $ (0.56) | $ (0.86) |
Weighted-average shares of common stock outstanding, basic and diluted (in shares) | 41,645,894 | 40,269,937 | 41,331,481 | 29,209,970 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Changes in Stockholders' Equity - 9 months ended Sep. 30, 2015 - USD ($) $ in Thousands | Common Stock. | Additional Paid-In Capital | Accumulated Deficit | Total |
Balance at Dec. 31, 2014 | $ 41 | $ 216,818 | $ (128,848) | $ 88,011 |
Balance (in shares) at Dec. 31, 2014 | 40,735,069 | 40,735,069 | ||
Increase (Decrease) in Stockholders' Equity | ||||
Exercise of stock options | $ 1 | 4,321 | $ 4,322 | |
Exercise of stock options (in shares) | 894,215 | |||
Issuance of common stock in connection with settlement of restricted stock units, net of withholdings | (436) | (436) | ||
Issuance of common stock in connection with settlement of restricted stock units, net of withholdings (in shares) | 244,609 | |||
Issuance of common stock, net of issuance costs | $ 4 | 117,131 | 117,135 | |
Issuance of common stock, net of issuance costs ( in shares) | 3,625,000 | |||
Issuance of common stock award | 750 | 750 | ||
Issuance of common stock award (in shares) | 26,567 | |||
Stock-based compensation expense | 8,467 | 8,467 | ||
Net loss | (23,333) | (23,333) | ||
Balance at Sep. 30, 2015 | $ 46 | $ 347,051 | $ (152,181) | $ 194,916 |
Balance (in shares) at Sep. 30, 2015 | 45,525,460 | 45,525,460 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash flows from operating activities | ||
Net loss | $ (23,333) | $ (24,982) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 5,288 | 4,240 |
Stock-based compensation expense | 9,217 | 5,486 |
Change in the fair value of the Series D redeemable convertible preferred stock warrants prior to conversion | 695 | |
Loss on investment | 250 | |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | (12,338) | (8,203) |
Advances to clients | (875) | (832) |
Prepaid expenses and other current assets | (2,482) | (1,483) |
Other non-current assets | (6,833) | 1,119 |
Accounts payable | 2,037 | (240) |
Accrued expenses and other current liabilities | 3,718 | 3,624 |
Deferred revenue | 1,912 | 834 |
Refunds payable | 1,081 | 567 |
Rebate reserve | (232) | (930) |
Other liabilities | (27) | (18) |
Net cash used in operating activities | (22,617) | (20,123) |
Cash flows from investing activities | ||
Expenditures for property and equipment | (3,136) | (2,535) |
Capitalized content development cost expenditures | (6,951) | (5,299) |
Other investing activities | (250) | (21) |
Net cash used in investing activities | (10,337) | (7,855) |
Cash flows from financing activities | ||
Proceeds from issuance of common stock, net of offering costs | 117,463 | 100,302 |
Proceeds from exercise of stock options | 4,322 | 1,222 |
Tax withholding payments in connection with net settlement of restricted stock units | (436) | |
Proceeds from revolving line of credit | 5,000 | |
Payment on revolving line of credit | (5,000) | |
Net cash provided by financing activities | 121,349 | 101,524 |
Net increase in cash and cash equivalents | 88,395 | 73,546 |
Cash and cash equivalents, beginning of period | 86,929 | 7,012 |
Cash and cash equivalents, end of period | 175,324 | 80,558 |
Supplemental disclosure of non-cash investing and financing activities | ||
Accretion of issuance costs on redeemable convertible preferred stock | 89 | |
Accrued capital expenditures | 361 | 114 |
Deferred offering costs included in accounts payable and accrued expenses | $ 327 | 59 |
Common stock granted in exchange for consulting services received | $ 55 |
Description of the Business
Description of the Business | 9 Months Ended |
Sep. 30, 2015 | |
Description of the Business | |
Description of the Business | 1. Description of the Business 2U, Inc. (the “Company”) was incorporated as 2Tor Inc. in the State of Delaware in April 2008 and changed its name to 2U, Inc. on October 11, 2012. Under long-term agreements, the Company provides an integrated solution comprised of cloud-based software-as-a-service (“SaaS”), fused with technology-enabled services (together, the “Platform”), that allows leading colleges and universities to deliver high quality online degree programs, extending the universities’ reach and distinguishing their brands. The Company’s SaaS technology consists of (i) a comprehensive learning environment (“Online Campus”), which acts as the hub for all student and faculty academic and social interaction, and (ii) operations applications, which provide the content management, admissions application processing, customer relationship management and other functionality necessary to effectively operate the Company’s clients’ programs. The Company also provides a suite of technology-enabled services that support the complete lifecycle of a higher education program, including attracting students, advising prospective students through the admissions application process, providing technical, success coaching and other support, facilitating accessibility to individuals with disabilities, and facilitating in-program field placements. |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2015 | |
Significant Accounting Policies | |
Significant Accounting Policies | 2. Summary of Significant Accounting Policies Principles of Consolidation The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary and have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”). All intercompany accounts and transactions have been eliminated in consolidation. Unaudited Condensed Consolidated Financial Information The accompanying unaudited condensed consolidated financial statements and footnotes have been prepared in accordance with U.S. GAAP. The Company has condensed or omitted certain information and footnote disclosures normally included in financial statements presented in accordance with U.S. GAAP in the accompanying unaudited condensed consolidated financial statements. In the opinion of management, the interim financial information includes all adjustments of a normal recurring nature necessary for a fair presentation of financial position, the results of operations, changes in stockholders’ equity and cash flows, and the disclosures made herein are adequate to prevent the information presented from being misleading. The results of operations for the three and nine months ended September 30, 2015 are not necessarily indicative of the results for the full year ending December 31, 2015 or the results for any future periods. These unaudited condensed consolidated interim financial statements should be read in conjunction with the audited consolidated financial statements and related notes for the year ended December 31, 2014, which are included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on February 26, 2015. Use of Estimates The preparation of financial statements in accordance with U.S. GAAP requires management to make certain estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. On an ongoing basis, the Company evaluates its estimates, including those related to the useful lives of long-lived assets, fair value measurement and income taxes, among others. The Company bases its estimates on historical experience and on various other assumptions that it believes to be reasonable, the results of which form the basis for making judgments about the carrying value of assets and liabilities. Actual results could differ from those estimates. Revenue Recognition and Deferred Revenue The Company recognizes revenue when all of the following conditions are met: (i) persuasive evidence of an arrangement exists, (ii) rendering of services is complete, (iii) fees are fixed or determinable and (iv) collection of fees is reasonably assured. The Company primarily derives its revenue from long-term contracts that typically range from 10 to 15 years in length. Under these contracts, the Company enables access to its Platform to its clients and their faculty and students. The Company is entitled to a contractually specified percentage of net program proceeds from its clients. These net program proceeds represent gross proceeds billed by clients to students, less credit card fees and other specified charges the Company has agreed to exclude in certain of its client contracts. A refund allowance is established for the Company’s share of tuition and fees ultimately uncollected by its clients. The Company also offered rebates to a group of students who enrolled in a specific client program between 2009 and 2011, which the Company will pay to the student if he or she completes the degree and certain post-graduation work requirements within a specified period of time. These rebates and refunds offset the net program proceeds recognized as revenue. Revenue is recognized ratably over the service period, which the Company defines as the first through the last day of classes for each semester in a client’s program. The Company invoices its clients based on enrollment reports that are generated by its clients. In some instances, these enrollment reports are received prior to the conclusion of the drop/add period. In such cases, the Company establishes a reserve against revenue, if necessary, based on its estimate of changes in enrollments expected prior to the end of the drop/add period. The Company generates substantially all of its revenue from multiple-deliverable contractual arrangements with its clients. Under each of these arrangements, the Company provides (i) access to Online Campus, which serves as a learning platform for its client’s faculty and students and which also enables a comprehensive range of other client functions, (ii) access to operations applications which provide the content management, admissions application processing, customer relationship management, and other functionality necessary to effectively operate the Company’s clients’ programs and (iii) technology-enabled services that support the complete lifecycle of a higher education program, including attracting students, advising prospective students through the admissions application process, providing technical, success coaching and other support, facilitating accessibility to individuals with disabilities, and facilitating in-program field placements. In order to treat deliverables in a multiple-deliverable contractual arrangement as separate units of accounting, deliverables must have standalone value upon delivery. The technology-enabled services within the Platform are provided primarily in support of programs delivered through Online Campus, and for students of the programs delivered through Online Campus. Accordingly, the Company has determined that no individual deliverable has standalone value upon delivery and, therefore, deliverables within the Company’s multiple-deliverable arrangements do not qualify for treatment as separate units of accounting. Accordingly, the Company considers all deliverables to be a single unit of accounting and recognizes revenue from the entire arrangement over the term of the service period. Advance payments are recorded as deferred revenue until services are delivered or obligations are met, at which time revenue is recognized. Deferred revenue as of a particular balance sheet date represents the excess of amounts received as compared to amounts recognized in revenue in the consolidated statements of operations as of the end of the reporting period, and such amounts are reflected as a current liability on the Company’s consolidated balance sheets. Concentration of Credit Risk Financial instruments that subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. All of the Company’s cash is held at financial institutions that management believes to be of high credit quality. The Company’s bank accounts exceed federally insured limits at times. The Company has not experienced any losses on cash to date. The Company records an allowance for doubtful accounts, if needed. Four of the Company’s clients accounted for the following percentages of revenue for the periods presented below: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Client A % % % % Client B Client C Client D Additionally, the Company’s largest client accounted for 56% and 35% of the Company’s accounts receivable balance as of September 30, 2015 and December 31, 2014, respectively. One additional client accounted for more than 10% of the Company’s accounts receivable balance as of September 30, 2015, while two additional clients accounted for more than 10% of the Company’s accounts receivable balance as of December 31, 2014. Property and Equipment Property and equipment is stated at cost less accumulated depreciation and amortization. Computer software is included in property and equipment and consists of internally-developed software. Expenditures for major additions, construction and improvements are capitalized. Depreciation and amortization is expensed using the straight-line method over the estimated useful lives of the related assets, which range from three to five years for computer hardware and five to seven years for furniture and office equipment. Leasehold improvements are depreciated on a straight-line basis over the lesser of the remaining term of the leased facility or the estimated useful life of the improvement, which ranges from four to ten years. Useful lives of significant assets are periodically reviewed and adjusted prospectively to reflect the Company’s current estimates of the respective assets’ expected utility. Repair and maintenance costs are expensed as incurred. The Company capitalizes certain costs associated with internally-developed software, primarily consisting of direct labor associated with creating the software. Software development projects generally include three stages: the preliminary project stage (all costs are expensed as incurred), the application development stage (certain costs are capitalized and certain costs are expensed as incurred) and the post-implementation/operation stage (all costs are expensed as incurred). Costs capitalized in the application development stage include costs of designing the application, coding, integrating the Company’s and the university’s networks and systems, and the testing of the software. Capitalization of costs requires judgment in determining when a project has reached the application development stage and the period over which the Company expects to benefit from the use of that software. Once the software is placed in service, these costs are depreciated on the straight-line method over the estimated useful life of the software, which is generally three years. Capitalized Content Development Costs The Company works with each client’s faculty members to develop and maintain educational content that is delivered to their students through Online Campus. The online content developed jointly by the Company and its clients consists of subjects chosen and taught by clients’ faculty members and incorporates references and examples designed to remain relevant over extended periods of time. Online delivery of the content, combined with live, face-to-face instruction, provides the Company with rapid user feedback that it uses to make ongoing corrections, modifications and improvements to the course content. The Company’s clients retain all intellectual property rights to the developed content, although the Company retains the rights to the content packaging and delivery mechanisms. Much of the Company’s new content development uses proven delivery platforms and is therefore primarily subject-specific in nature. As a result, a significant portion of content development costs qualify for capitalization due to the focus of the Company’s development efforts on the unique subject matter of the content. Similar to on-campus programs offered by the Company’s clients, the online degree programs enabled by the Company offer numerous courses for each degree. The Company therefore capitalizes its development costs on a course-by-course basis. As students must matriculate into a client program in order to take a course, revenues and identifiable cash flows are also measured at the client program level. The Company develops content on a course-by-course basis in conjunction with the faculty for each client program. The clients and their faculty generally provide course outlines in the form of the curriculum, required textbooks, case studies and other reading materials, as well as presentations that are typically used in the on-campus setting. The Company is then responsible for, and incurs all of the expenses related to, the conversion of the materials provided by each client into a format suitable for delivery through Online Campus. The content development costs that qualify for capitalization are third-party direct costs, such as videography, editing and other services associated with creating digital content. Additionally, the Company capitalizes internal payroll and payroll-related costs incurred to create and produce videos and other digital content utilized in the clients’ programs for delivery via Online Campus. Capitalization ends when content has been fully developed by both the Company and the client, at which time amortization of the capitalized content development costs begins. The capitalized costs are recorded on a course-by-course basis and included in capitalized content costs on the consolidated balance sheets. These costs are amortized using the straight-line method over the estimated useful life of the respective capitalized content program, which is generally five years. The estimated useful life corresponds with the Company’s planned curriculum refresh rate. This refresh rate is consistent with expected curriculum refresh rates as cited by program faculty members for similar on-campus programs. It is reasonably possible that developed content could be refreshed before the estimated useful lives are complete or be expensed immediately in the event that the development of a course is discontinued prior to launch. Impairment of Long-Lived Assets The Company reviews long-lived assets, which consist of property and equipment and capitalized content development costs, for impairment whenever events or changes in circumstances indicate the carrying value of an asset may not be recoverable. Recoverability of a long-lived asset is measured by a comparison of the carrying value of an asset or asset group to the future undiscounted net cash flows expected to be generated by that asset or asset group. If such assets are not recoverable, the impairment to be recognized is measured by the amount by which the carrying value of an asset exceeds the estimated fair value (discounted cash flow) of the asset or asset group. In order to assess the recoverability of the capitalized content development costs, the costs are grouped by program, which is the lowest level of independent cash flows. The Company’s impairment analysis is based upon forecasted financial and operational results. The actual results could vary from the Company’s forecasts, especially in relation to recently launched programs. For the three and nine months ended September 30, 2015 and 2014, no impairment of long-lived assets was deemed to have occurred. Comprehensive Loss The Company’s net loss equals comprehensive loss for all periods presented as the Company has no material components of other comprehensive income. Stock-Based Compensation The Company accounts for stock-based compensation awards based on the fair value of the award as of the grant date. For awards subject to service-based vesting conditions, the Company recognizes stock-based compensation expense on a straight-line basis over the awards’ requisite service period, adjusted for estimated forfeitures. For awards subject to both performance and service-based vesting conditions, the Company recognizes stock-based compensation expense using an accelerated recognition method when it is probable that the performance condition will be achieved. See Note 8 for a summary of assumptions used in calculating the fair value of stock options. Recent Accounting Pronouncements In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-05, Intangibles — Goodwill and Other — Internal-Use Software . The ASU provides guidance to customers in a cloud computing arrangement to determine whether the arrangement includes a software license. When a cloud computing arrangement includes a software license, the customer is required to account for the license element of the arrangement consistent with the acquisition of other software licenses. The amendments in this ASU are effective for fiscal years beginning after December 15, 2015. The Company is currently evaluating the effect that the standard will have on its consolidated financial statements and related disclosures. In April 2015, the FASB issued ASU No. 2015-03, Interest — Imputation of Interest . The ASU simplifies the presentation of debt issuance costs by requiring that such costs be presented in the consolidated balance sheets as a direct deduction from the carrying value of the associated debt instrument, consistent with debt discounts. The amendments in this ASU are effective for fiscal years beginning after December 15, 2015. Adoption of this standard will not have a material impact on the Company’s consolidated financial position. In January 2015, the FASB issued ASU No. 2015-01, Income Statement — Extraordinary and Unusual Items . The ASU simplifies income statement presentation by eliminating the concept of extraordinary items. The amendments in this ASU are effective for fiscal periods beginning after December 15, 2015. The Company does not expect the new standard to have a significant impact on its ongoing financial reporting. In August 2014, the FASB issued ASU No. 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern . The ASU requires that an entity’s management evaluate whether there are conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued. The amendments in this ASU are effective for annual reporting periods ending after December 15, 2016. The Company does not expect the new standard to have a significant impact on its quarterly reporting process. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers , which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. In July 2015, the FASB deferred by one year the mandatory effective date of this ASU from January 1, 2017 to January 1, 2018. Early application is permitted, but not prior to the original effective date of January 1, 2017. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is currently evaluating the effect that this standard will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting. The Company has reviewed other new accounting pronouncements that were issued as of September 30, 2015 and does not believe that these pronouncements are applicable to the Company, or that they will have a material impact on its financial position or results of operations. |
Property and Equipment
Property and Equipment | 9 Months Ended |
Sep. 30, 2015 | |
Property and Equipment | |
Property and Equipment | 3. Property and Equipment Property and equipment consisted of the following as of: September 30, 2015 December 31, 2014 (in thousands) Internally-developed software $ $ Internally-developed software in process Computer hardware Furniture and office equipment Leasehold improvements Total Accumulated depreciation and amortization ) ) Property and equipment, net $ $ Depreciation and amortization expense of property and equipment was $0.7 million and $0.6 million for the three months ended September 30, 2015 and 2014, respectively. Depreciation and amortization expense of property and equipment was $2.0 million and $1.8 million for the nine months ended September 30, 2015 and 2014, respectively. As of September 30, 2015, the estimated future depreciation and amortization expense for property and equipment is as follows (in thousands): 2015 $ 2016 2017 2018 2019 Thereafter Total $ |
Capitalized Content Development
Capitalized Content Development Costs | 9 Months Ended |
Sep. 30, 2015 | |
Capitalized Content Development Costs | |
Capitalized Content Development Costs | 4. Capitalized Content Development Costs Capitalized content development costs consisted of the following as of: September 30, 2015 December 31, 2014 (in thousands) Capitalized content development costs $ $ Capitalized content development costs in process Accumulated amortization ) ) Capitalized content development costs, net $ $ The Company recorded amortization expense related to capitalized content development costs of $1.2 million and $1.0 million for the three months ended September 30, 2015 and 2014, respectively. The Company recorded amortization expense related to capitalized content development costs of $3.3 million and $2.4 million for the nine months ended September 30, 2015 and 2014, respectively. As of September 30, 2015, the estimated future amortization expense for the capitalized content development costs is as follows (in thousands): 2015 $ 2016 2017 2018 2019 Thereafter Total $ |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies | |
Commitments and Contingencies | 5. Commitments and Contingencies Line of Credit On December 31, 2013, the Company entered into a credit agreement for a revolving line of credit with an aggregate borrowing base not to exceed $37.0 million. On January 21, 2014, the Company borrowed $5.0 million under this line of credit and repaid this borrowing in full on February 18, 2014; therefore, no amounts were outstanding as of September 30, 2015 or December 31, 2014. Under this revolving line of credit, the Company has the option of borrowing funds subject to (i) a base rate, which is equal to 1.5% plus the greater of Comerica Bank’s prime rate, the federal funds rate plus 1% or the 30 day LIBOR plus 1%, or (ii) LIBOR plus 2.5%. For amounts borrowed under the base rate, the Company may make interest-only payments quarterly, and may prepay such amounts with no penalty. For amounts borrowed under LIBOR, the Company makes interest-only payments in periods of one, two and three months and will be subject to a prepayment penalty if such borrowed amounts are repaid before the end of the interest period. Borrowings under the line of credit are collateralized by substantially all of the Company’s assets. The availability of borrowings under this credit line is subject to compliance with reporting and financial covenants, including, among other things, that the Company achieves specified minimum three-month trailing revenue levels during the term of the agreement and specified minimum six-month trailing profitability levels for some client programs, measured quarterly. In addition, the Company is required to maintain a minimum adjusted quick ratio, which measures short-term liquidity, of at least 1.10 to 1.00. As of September 30, 2015 and December 31, 2014, the Company’s adjusted quick ratio was 8.89 and 6.45, respectively. The covenants under the line of credit also place limitations on the Company’s ability to incur additional indebtedness or to prepay permitted indebtedness, grant liens on or security interests in its assets, carry out mergers and acquisitions, dispose of assets, declare, make or pay dividends, make capital expenditures or investments in excess of specified amounts, make loans or advances, enter into transactions with affiliates, amend or modify the terms of material contracts, or change its fiscal year. If the Company is not in compliance with the covenants under the line of credit, after any opportunity to cure such non-compliance, or it otherwise experiences an event of default under the line of credit, the lenders may require repayment in full of all principal and interest outstanding. If the Company fails to repay such amounts, the lenders could foreclose on the assets pledged as collateral under the line of credit. The Company is currently in compliance with all such covenants. Legal Contingencies From time to time, the Company may become involved in legal proceedings or other contingencies in the ordinary course of its business. The Company is not presently involved in any legal proceeding or other contingency that, if determined adversely to it, would individually or in the aggregate have a material adverse effect on its business, operating results, financial condition or cash flows. Accordingly, the Company does not believe that there is a reasonable possibility that a material loss exceeding amounts already recognized may have been incurred as of the date of the balance sheets presented herein. Program Marketing and Sales Commitments Certain of the agreements entered into between the Company and its clients require the Company to commit to meet certain staffing and spending investment thresholds related to program marketing and sales activities. In addition, certain of the agreements require the Company to invest up to agreed-upon levels in marketing the programs to achieve specified program performance. The Company believes it is currently in compliance with all such commitments. Operating Leases The Company leases office facilities under non-cancelable operating leases in Maryland, New York, California, Colorado, North Carolina, Virginia and Hong Kong. The Company also leases furniture and office equipment under non-cancelable leases. As of September 30, 2015, the future minimum lease payments (net of aggregate expected sublease payments of $0.4 million) were as follows (in thousands): 2015 $ 2016 2017 2018 2019 Thereafter Total future minimum lease payments $ The future minimum lease payments due under non-cancelable operating lease arrangements contain fixed rent increases over the term of the lease. Rent expense on these operating leases is recognized over the term of the lease on a straight-line basis. The excess of rent expense over future minimum lease payments due has been reported in other non-current liabilities in the accompanying consolidated balance sheets. The deferred rent liability related to these leases totaled $0.5 million as of each of September 30, 2015 and December 31, 2014. Total rent expense for non-cancelable operating lease agreements (net of sublease income of $0.1 million and $0.1 million) was $0.9 million and $0.7 million for the three months ended September 30, 2015 and 2014, respectively. Total rent expense (net of sublease income of $0.2 million and $0.2 million) was $2.3 million and $2.0 million for the nine months ended September 30, 2015 and 2014, respectively. Payments to Clients The Company is contractually obligated to make fixed payments to certain of its clients in exchange for various intellectual property and other rights. As of September 30, 2015, the future minimum payments to the Company’s clients for intellectual property and other rights were as follows (in thousands): 2015 $ 2016 2017 2018 2019 Thereafter Total future minimum program payments $ |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2015 | |
Income Taxes | |
Income Taxes | 6. Income Taxes Income taxes are accounted for under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that are included in the financial statements. Deferred tax assets are subject to periodic recoverability assessments. Recognition of deferred tax assets is appropriate only if the likelihood of realization of such assets is more likely than not to occur. At December 31, 2014 and 2013, the Company had federal and state net operating loss (“NOL”) carryforwards which generally expire between 2029 and 2034. A full valuation allowance has been established to offset the net deferred tax assets. The Company has not generated taxable income since inception and does not have sufficient deferred tax liabilities to recover the deferred tax assets. The utilization of the NOL carryforwards to reduce future income taxes will depend on the Company’s ability to generate sufficient taxable income prior to the expiration of the NOL carryforwards. In addition, a certain portion of the NOL carryforwards may be subject to Internal Revenue Code section 382 limitations, which may limit their future use. The Company completed an analysis of the stock ownership changes through December 31, 2014, and determined that there has not been an ownership change prior to that date. However, the Company has not completed an analysis to determine what, if any, impact any ownership change after December 31, 2014 has had on the ability to utilize NOL carryforwards. The Company has experienced a number of transactions during the fiscal year 2015, such as a sale of common stock to the public, which could lead to a limitation of its NOL carryforwards under section 382 of the Internal Revenue Code. The Company intends to complete a study through the year ended December 31, 2015 regarding this limitation in the next twelve months. It is reasonably possible that the results of the study will reduce the reported NOL carryforwards and other deferred tax assets. The Company determines its annual effective tax rate for the full fiscal year and applies that rate to its income before income taxes in determining its provision for income taxes for interim periods. The Company also records discrete items in each respective period as appropriate. The Company’s effective tax rate for the three and nine months ended September 30, 2015 and 2014 was 0%. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2015 | |
Stockholders' Equity | |
Stockholders' Equity | 7. Stockholders’ Equity Common Stock On September 30, 2015, the Company sold 3,625,000 shares of its common stock to the public, including 525,000 shares sold pursuant to the underwriters’ over-allotment option. The Company received net proceeds of $117.1 million, which the Company intends to use for general corporate purposes. As of September 30, 2015, the Company was authorized to issue 205,000,000 total shares of capital stock, consisting of 200,000,000 shares of common stock and 5,000,000 shares of preferred stock. At September 30, 2015, the Company had reserved a total of 8,673,818 of its authorized shares of common stock for future issuance as follows: Outstanding stock options Possible future issuance under stock option plan Outstanding restricted stock units Total shares of common stock reserved for future issuance The compensation committee of the Company’s board of directors, acting under authority delegated from the board of directors, granted on October 1, 2015 option awards to employees to purchase an aggregate of 6,520 shares of common stock at an exercise price of $32.20 and restricted stock unit awards for an aggregate of 12,899 shares of common stock, in each case under the 2014 Equity Incentive Plan (as defined in Note 8 below). |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2015 | |
Stock-Based Compensation | |
Stock-Based Compensation | 8. Stock-Based Compensation The Company provides equity-based compensation awards to employees, non-employees and directors as an effective means for attracting, retaining and motivating such individuals. The Company maintains two share-based compensation plans: the 2014 Equity Incentive Plan (the “2014 Plan”) and the 2008 Stock Incentive Plan (the “2008 Plan”). Upon the effective date of the 2014 Plan in January 2014, the Company ceased using the 2008 Plan to grant new equity awards, and began using the 2014 Plan for grants of new equity awards. The number of shares of the Company’s common stock that may be issued under the 2014 Plan will automatically increase on January 1st of each year, for a period of ten years, from January 1, 2015 continuing through January 1, 2024, by 5% of the total number of shares of the Company’s common stock outstanding on December 31st of the preceding calendar year, or a lesser number of shares as may be determined by the Company’s board of directors. On January 1, 2015, the shares available for issuance increased by 2,036,503 pursuant to the automatic share reserve provision under the 2014 Plan. Stock-Based Compensation Expense Stock-based compensation expense related to stock-based awards is included in the following line items in the accompanying consolidated statements of operations: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (in thousands) Servicing and support $ $ $ $ Technology and content development Program marketing and sales General and administrative Total stock-based compensation expense $ $ $ $ Stock Options The following is a summary of the stock option activity for the nine months ended September 30, 2015: Number of Options Weighted-Average Exercise Price per Share Weighted-Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Outstanding balance at December 31, 2014 $ $ Granted Exercised ) Forfeited ) Expired ) Outstanding balance at September 30, 2015 Exercisable at September 30, 2015 Vested and expected to vest at September 30, 2015 The total compensation cost related to the nonvested options not yet recognized as of September 30, 2015 was $13.1 million and will be recognized over a weighted-average period of approximately 2.2 years. The aggregate intrinsic value of the options exercised during the nine months ended September 30, 2015 and 2014 was $20.4 million and $7.4 million, respectively. The following table summarizes the assumptions used for estimating the fair value of the stock options granted for the three and nine months ended September 30, 2015 and 2014: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Risk-free interest rate 1.9% 1.7% – 1.9% 1.5% – 1.9% 1.7% – 2.1% Expected term (years) 6.08 5.11 – 6.08 5.56 – 6.08 5.11 – 6.25 Expected volatility 50% 50% 50% 50% – 55% Dividend yield 0% 0% 0% 0% Weighted-average grant date fair value per share $15.23 $7.72 $12.51 $5.95 Restricted Stock Units The following is a summary of restricted stock unit activity for the nine months ended September 30, 2015: Number of Restricted Stock Units Weighted- Average Grant Date Fair Value Outstanding balance at December 31, 2014 $ Granted Vested ) Forfeited ) Outstanding balance at September 30, 2015 The total compensation cost related to the nonvested restricted stock units not yet recognized as of September 30, 2015 was $16.0 million and will be recognized over a weighted-average period of approximately 2.8 years. Other Stock Awards During the nine months ended September 30, 2015, the Company granted 26,567 shares of common stock to a new key employee, with a fair value of $0.8 million. |
Net Loss per Share
Net Loss per Share | 9 Months Ended |
Sep. 30, 2015 | |
Net Loss per Share | |
Net Loss per Share | 9. Net Loss per Share Diluted net loss per share is the same as basic net loss per share for all periods presented because the effects of potentially dilutive items were anti-dilutive given the Company’s net loss. The following securities have been excluded from the calculation of weighted-average shares of common stock outstanding because the effect is anti-dilutive for the three and nine months ended September 30, 2015 and 2014: Three and Nine Months Ended September 30, 2015 2014 Stock options Restricted stock units Basic and diluted net loss per share attributable to holders of common stock is calculated as follows: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Numerator (in thousands): Net loss attributable to holders of common stock $ ) $ ) $ ) $ ) Denominator: Weighted-average shares of common stock outstanding, basic and diluted Net loss per share attributable to holders of common stock, basic and diluted $ ) $ ) $ ) $ ) |
Segment and Geographic Informat
Segment and Geographic Information | 9 Months Ended |
Sep. 30, 2015 | |
Segment and Geographic Information | |
Segment and Geographic Information | 10. Segment and Geographic Information Operating segments are defined as components of an enterprise for which discrete financial information is available that is evaluated regularly by the chief operating decision maker (“CODM”) for purposes of allocating resources and evaluating financial performance. The Company’s CODM reviews the financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance. As such, the Company’s operations constitute a single operating segment and one reportable segment. The Company offers similar services to substantially all of its clients, which primarily represent well-recognized nonprofit colleges and universities in the United States. Substantially all assets were held and all revenue was generated in the United States during all periods presented. |
Significant Accounting Polici17
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Significant Accounting Policies | |
Principles of Consolidation | Principles of Consolidation The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary and have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”). All intercompany accounts and transactions have been eliminated in consolidation. Unaudited Condensed Consolidated Financial Information The accompanying unaudited condensed consolidated financial statements and footnotes have been prepared in accordance with U.S. GAAP. The Company has condensed or omitted certain information and footnote disclosures normally included in financial statements presented in accordance with U.S. GAAP in the accompanying unaudited condensed consolidated financial statements. In the opinion of management, the interim financial information includes all adjustments of a normal recurring nature necessary for a fair presentation of financial position, the results of operations, changes in stockholders’ equity and cash flows, and the disclosures made herein are adequate to prevent the information presented from being misleading. The results of operations for the three and nine months ended September 30, 2015 are not necessarily indicative of the results for the full year ending December 31, 2015 or the results for any future periods. These unaudited condensed consolidated interim financial statements should be read in conjunction with the audited consolidated financial statements and related notes for the year ended December 31, 2014, which are included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on February 26, 2015. |
Use of Estimates | Use of Estimates The preparation of financial statements in accordance with U.S. GAAP requires management to make certain estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. On an ongoing basis, the Company evaluates its estimates, including those related to the useful lives of long-lived assets, fair value measurement and income taxes, among others. The Company bases its estimates on historical experience and on various other assumptions that it believes to be reasonable, the results of which form the basis for making judgments about the carrying value of assets and liabilities. Actual results could differ from those estimates. |
Revenue Recognition and Deferred Revenue | Revenue Recognition and Deferred Revenue The Company recognizes revenue when all of the following conditions are met: (i) persuasive evidence of an arrangement exists, (ii) rendering of services is complete, (iii) fees are fixed or determinable and (iv) collection of fees is reasonably assured. The Company primarily derives its revenue from long-term contracts that typically range from 10 to 15 years in length. Under these contracts, the Company enables access to its Platform to its clients and their faculty and students. The Company is entitled to a contractually specified percentage of net program proceeds from its clients. These net program proceeds represent gross proceeds billed by clients to students, less credit card fees and other specified charges the Company has agreed to exclude in certain of its client contracts. A refund allowance is established for the Company’s share of tuition and fees ultimately uncollected by its clients. The Company also offered rebates to a group of students who enrolled in a specific client program between 2009 and 2011, which the Company will pay to the student if he or she completes the degree and certain post-graduation work requirements within a specified period of time. These rebates and refunds offset the net program proceeds recognized as revenue. Revenue is recognized ratably over the service period, which the Company defines as the first through the last day of classes for each semester in a client’s program. The Company invoices its clients based on enrollment reports that are generated by its clients. In some instances, these enrollment reports are received prior to the conclusion of the drop/add period. In such cases, the Company establishes a reserve against revenue, if necessary, based on its estimate of changes in enrollments expected prior to the end of the drop/add period. The Company generates substantially all of its revenue from multiple-deliverable contractual arrangements with its clients. Under each of these arrangements, the Company provides (i) access to Online Campus, which serves as a learning platform for its client’s faculty and students and which also enables a comprehensive range of other client functions, (ii) access to operations applications which provide the content management, admissions application processing, customer relationship management, and other functionality necessary to effectively operate the Company’s clients’ programs and (iii) technology-enabled services that support the complete lifecycle of a higher education program, including attracting students, advising prospective students through the admissions application process, providing technical, success coaching and other support, facilitating accessibility to individuals with disabilities, and facilitating in-program field placements. In order to treat deliverables in a multiple-deliverable contractual arrangement as separate units of accounting, deliverables must have standalone value upon delivery. The technology-enabled services within the Platform are provided primarily in support of programs delivered through Online Campus, and for students of the programs delivered through Online Campus. Accordingly, the Company has determined that no individual deliverable has standalone value upon delivery and, therefore, deliverables within the Company’s multiple-deliverable arrangements do not qualify for treatment as separate units of accounting. Accordingly, the Company considers all deliverables to be a single unit of accounting and recognizes revenue from the entire arrangement over the term of the service period. Advance payments are recorded as deferred revenue until services are delivered or obligations are met, at which time revenue is recognized. Deferred revenue as of a particular balance sheet date represents the excess of amounts received as compared to amounts recognized in revenue in the consolidated statements of operations as of the end of the reporting period, and such amounts are reflected as a current liability on the Company’s consolidated balance sheets. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. All of the Company’s cash is held at financial institutions that management believes to be of high credit quality. The Company’s bank accounts exceed federally insured limits at times. The Company has not experienced any losses on cash to date. The Company records an allowance for doubtful accounts, if needed. Four of the Company’s clients accounted for the following percentages of revenue for the periods presented below: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Client A % % % % Client B Client C Client D Additionally, the Company’s largest client accounted for 56% and 35% of the Company’s accounts receivable balance as of September 30, 2015 and December 31, 2014, respectively. One additional client accounted for more than 10% of the Company’s accounts receivable balance as of September 30, 2015, while two additional clients accounted for more than 10% of the Company’s accounts receivable balance as of December 31, 2014. |
Property and Equipment | Property and Equipment Property and equipment is stated at cost less accumulated depreciation and amortization. Computer software is included in property and equipment and consists of internally-developed software. Expenditures for major additions, construction and improvements are capitalized. Depreciation and amortization is expensed using the straight-line method over the estimated useful lives of the related assets, which range from three to five years for computer hardware and five to seven years for furniture and office equipment. Leasehold improvements are depreciated on a straight-line basis over the lesser of the remaining term of the leased facility or the estimated useful life of the improvement, which ranges from four to ten years. Useful lives of significant assets are periodically reviewed and adjusted prospectively to reflect the Company’s current estimates of the respective assets’ expected utility. Repair and maintenance costs are expensed as incurred. The Company capitalizes certain costs associated with internally-developed software, primarily consisting of direct labor associated with creating the software. Software development projects generally include three stages: the preliminary project stage (all costs are expensed as incurred), the application development stage (certain costs are capitalized and certain costs are expensed as incurred) and the post-implementation/operation stage (all costs are expensed as incurred). Costs capitalized in the application development stage include costs of designing the application, coding, integrating the Company’s and the university’s networks and systems, and the testing of the software. Capitalization of costs requires judgment in determining when a project has reached the application development stage and the period over which the Company expects to benefit from the use of that software. Once the software is placed in service, these costs are depreciated on the straight-line method over the estimated useful life of the software, which is generally three years. |
Capitalized Content Development Costs | Capitalized Content Development Costs The Company works with each client’s faculty members to develop and maintain educational content that is delivered to their students through Online Campus. The online content developed jointly by the Company and its clients consists of subjects chosen and taught by clients’ faculty members and incorporates references and examples designed to remain relevant over extended periods of time. Online delivery of the content, combined with live, face-to-face instruction, provides the Company with rapid user feedback that it uses to make ongoing corrections, modifications and improvements to the course content. The Company’s clients retain all intellectual property rights to the developed content, although the Company retains the rights to the content packaging and delivery mechanisms. Much of the Company’s new content development uses proven delivery platforms and is therefore primarily subject-specific in nature. As a result, a significant portion of content development costs qualify for capitalization due to the focus of the Company’s development efforts on the unique subject matter of the content. Similar to on-campus programs offered by the Company’s clients, the online degree programs enabled by the Company offer numerous courses for each degree. The Company therefore capitalizes its development costs on a course-by-course basis. As students must matriculate into a client program in order to take a course, revenues and identifiable cash flows are also measured at the client program level. The Company develops content on a course-by-course basis in conjunction with the faculty for each client program. The clients and their faculty generally provide course outlines in the form of the curriculum, required textbooks, case studies and other reading materials, as well as presentations that are typically used in the on-campus setting. The Company is then responsible for, and incurs all of the expenses related to, the conversion of the materials provided by each client into a format suitable for delivery through Online Campus. The content development costs that qualify for capitalization are third-party direct costs, such as videography, editing and other services associated with creating digital content. Additionally, the Company capitalizes internal payroll and payroll-related costs incurred to create and produce videos and other digital content utilized in the clients’ programs for delivery via Online Campus. Capitalization ends when content has been fully developed by both the Company and the client, at which time amortization of the capitalized content development costs begins. The capitalized costs are recorded on a course-by-course basis and included in capitalized content costs on the consolidated balance sheets. These costs are amortized using the straight-line method over the estimated useful life of the respective capitalized content program, which is generally five years. The estimated useful life corresponds with the Company’s planned curriculum refresh rate. This refresh rate is consistent with expected curriculum refresh rates as cited by program faculty members for similar on-campus programs. It is reasonably possible that developed content could be refreshed before the estimated useful lives are complete or be expensed immediately in the event that the development of a course is discontinued prior to launch. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company reviews long-lived assets, which consist of property and equipment and capitalized content development costs, for impairment whenever events or changes in circumstances indicate the carrying value of an asset may not be recoverable. Recoverability of a long-lived asset is measured by a comparison of the carrying value of an asset or asset group to the future undiscounted net cash flows expected to be generated by that asset or asset group. If such assets are not recoverable, the impairment to be recognized is measured by the amount by which the carrying value of an asset exceeds the estimated fair value (discounted cash flow) of the asset or asset group. In order to assess the recoverability of the capitalized content development costs, the costs are grouped by program, which is the lowest level of independent cash flows. The Company’s impairment analysis is based upon forecasted financial and operational results. The actual results could vary from the Company’s forecasts, especially in relation to recently launched programs. For the three and nine months ended September 30, 2015 and 2014, no impairment of long-lived assets was deemed to have occurred. |
Comprehensive Loss | Comprehensive Loss The Company’s net loss equals comprehensive loss for all periods presented as the Company has no material components of other comprehensive income. |
Stock-Based Compensation | Stock-Based Compensation The Company accounts for stock-based compensation awards based on the fair value of the award as of the grant date. For awards subject to service-based vesting conditions, the Company recognizes stock-based compensation expense on a straight-line basis over the awards’ requisite service period, adjusted for estimated forfeitures. For awards subject to both performance and service-based vesting conditions, the Company recognizes stock-based compensation expense using an accelerated recognition method when it is probable that the performance condition will be achieved. See Note 8 for a summary of assumptions used in calculating the fair value of stock options. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-05, Intangibles — Goodwill and Other — Internal-Use Software . The ASU provides guidance to customers in a cloud computing arrangement to determine whether the arrangement includes a software license. When a cloud computing arrangement includes a software license, the customer is required to account for the license element of the arrangement consistent with the acquisition of other software licenses. The amendments in this ASU are effective for fiscal years beginning after December 15, 2015. The Company is currently evaluating the effect that the standard will have on its consolidated financial statements and related disclosures. In April 2015, the FASB issued ASU No. 2015-03, Interest — Imputation of Interest . The ASU simplifies the presentation of debt issuance costs by requiring that such costs be presented in the consolidated balance sheets as a direct deduction from the carrying value of the associated debt instrument, consistent with debt discounts. The amendments in this ASU are effective for fiscal years beginning after December 15, 2015. Adoption of this standard will not have a material impact on the Company’s consolidated financial position. In January 2015, the FASB issued ASU No. 2015-01, Income Statement — Extraordinary and Unusual Items . The ASU simplifies income statement presentation by eliminating the concept of extraordinary items. The amendments in this ASU are effective for fiscal periods beginning after December 15, 2015. The Company does not expect the new standard to have a significant impact on its ongoing financial reporting. In August 2014, the FASB issued ASU No. 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern . The ASU requires that an entity’s management evaluate whether there are conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued. The amendments in this ASU are effective for annual reporting periods ending after December 15, 2016. The Company does not expect the new standard to have a significant impact on its quarterly reporting process. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers , which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. In July 2015, the FASB deferred by one year the mandatory effective date of this ASU from January 1, 2017 to January 1, 2018. Early application is permitted, but not prior to the original effective date of January 1, 2017. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is currently evaluating the effect that this standard will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting. The Company has reviewed other new accounting pronouncements that were issued as of September 30, 2015 and does not believe that these pronouncements are applicable to the Company, or that they will have a material impact on its financial position or results of operations. |
Significant Accounting Polici18
Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Significant Accounting Policies | |
Schedule of concentration of revenue | Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Client A % % % % Client B Client C Client D |
Property and Equipment (Tables)
Property and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Property and Equipment | |
Schedule of Property and equipment | September 30, 2015 December 31, 2014 (in thousands) Internally-developed software $ $ Internally-developed software in process Computer hardware Furniture and office equipment Leasehold improvements Total Accumulated depreciation and amortization ) ) Property and equipment, net $ $ |
Schedule of future depreciation and amortization expense for property and equipment | As of September 30, 2015, the estimated future depreciation and amortization expense for property and equipment is as follows (in thousands): 2015 $ 2016 2017 2018 2019 Thereafter Total $ |
Capitalized Content Developme20
Capitalized Content Development Costs (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Capitalized Content Development Costs | |
Schedule of capitalized content development costs | September 30, 2015 December 31, 2014 (in thousands) Capitalized content development costs $ $ Capitalized content development costs in process Accumulated amortization ) ) Capitalized content development costs, net $ $ |
Schedule of estimated future amortization expense for the capitalized content development costs | As of September 30, 2015, the estimated future amortization expense for the capitalized content development costs is as follows (in thousands): 2015 $ 2016 2017 2018 2019 Thereafter Total $ |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies | |
Schedule of future minimum lease payments, net of aggregate expected sublease payments | As of September 30, 2015, the future minimum lease payments (net of aggregate expected sublease payments of $0.4 million) were as follows (in thousands): 2015 $ 2016 2017 2018 2019 Thereafter Total future minimum lease payments $ |
Schedule of future minimum program payments for intellectual property and other rights | As of September 30, 2015, the future minimum payments to the Company’s clients for intellectual property and other rights were as follows (in thousands): 2015 $ 2016 2017 2018 2019 Thereafter Total future minimum program payments $ |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Stockholders' Equity | |
Schedule of shares of common stock reserved for future issuance | At September 30, 2015, the Company had reserved a total of 8,673,818 of its authorized shares of common stock for future issuance as follows: Outstanding stock options Possible future issuance under stock option plan Outstanding restricted stock units Total shares of common stock reserved for future issuance |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Stock options | |
Schedule of stock-based compensation expense included in the consolidated statements of operations | Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (in thousands) Servicing and support $ $ $ $ Technology and content development Program marketing and sales General and administrative Total stock-based compensation expense $ $ $ $ |
Summary of stock option activity | Number of Options Weighted-Average Exercise Price per Share Weighted-Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Outstanding balance at December 31, 2014 $ $ Granted Exercised ) Forfeited ) Expired ) Outstanding balance at September 30, 2015 Exercisable at September 30, 2015 Vested and expected to vest at September 30, 2015 |
Summary assumptions used for estimating the fair value of the stock options granted | Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Risk-free interest rate 1.9% 1.7% – 1.9% 1.5% – 1.9% 1.7% – 2.1% Expected term (years) 6.08 5.11 – 6.08 5.56 – 6.08 5.11 – 6.25 Expected volatility 50% 50% 50% 50% – 55% Dividend yield 0% 0% 0% 0% Weighted-average grant date fair value per share $15.23 $7.72 $12.51 $5.95 |
Restricted Stock Units | |
Summary of restricted stock unit activity | Number of Restricted Stock Units Weighted- Average Grant Date Fair Value Outstanding balance at December 31, 2014 $ Granted Vested ) Forfeited ) Outstanding balance at September 30, 2015 |
Net Loss per Share (Tables)
Net Loss per Share (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Net Loss per Share | |
Schedule of potential dilutive securities that would have been anti-dilutive due to net loss | Three and Nine Months Ended September 30, 2015 2014 Stock options Restricted stock units |
Schedule of calculation of basic and diluted net loss per share attributable to common stockholders | Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Numerator (in thousands): Net loss attributable to holders of common stock $ ) $ ) $ ) $ ) Denominator: Weighted-average shares of common stock outstanding, basic and diluted Net loss per share attributable to holders of common stock, basic and diluted $ ) $ ) $ ) $ ) |
Significant Accounting Polici25
Significant Accounting Policies (Details) | 9 Months Ended |
Sep. 30, 2015 | |
Minimum | |
Revenue Recognition and Deferred Revenue | |
Period to derive revenue under long-term contracts | 10 years |
Maximum | |
Revenue Recognition and Deferred Revenue | |
Period to derive revenue under long-term contracts | 15 years |
Significant Accounting Polici26
Significant Accounting Policies (Details 2) - item | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Revenue | Customer concentration risk | Client A | |||||
Concentration of Credit Risk | |||||
Percentage of concentration of credit risk | 43.00% | 56.00% | 46.00% | 57.00% | |
Revenue | Customer concentration risk | Client B | |||||
Concentration of Credit Risk | |||||
Percentage of concentration of credit risk | 9.00% | 15.00% | 10.00% | 15.00% | |
Revenue | Customer concentration risk | Client C | |||||
Concentration of Credit Risk | |||||
Percentage of concentration of credit risk | 12.00% | 13.00% | 12.00% | 13.00% | |
Revenue | Customer concentration risk | Client D | |||||
Concentration of Credit Risk | |||||
Percentage of concentration of credit risk | 15.00% | 8.00% | 15.00% | 7.00% | |
Accounts receivable | Credit concentration risk | |||||
Concentration of Credit Risk | |||||
Number of additional clients who accounted for more than 10% | 1 | 2 | |||
Accounts receivable | Credit concentration risk | First University | |||||
Concentration of Credit Risk | |||||
Percentage of concentration of credit risk | 56.00% | 35.00% | |||
Accounts receivable | Credit concentration risk | Second University | |||||
Concentration of Credit Risk | |||||
Percentage of concentration of credit risk | 10.00% | ||||
Accounts receivable | Credit concentration risk | Third University | |||||
Concentration of Credit Risk | |||||
Percentage of concentration of credit risk | 10.00% |
Significant Accounting Polici27
Significant Accounting Policies (Details 3) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)segment | Sep. 30, 2014USD ($) | |
Capitalized Content Development Costs | ||||
Useful life of capitalized content development costs | 5 years | |||
Impairment of Long-Lived Assets | ||||
Impairments of long-lived assets | $ | $ 0 | $ 0 | $ 0 | $ 0 |
Segment and Geographic Information | ||||
Number of Reportable Segments | 1 | |||
Computer hardware | Minimum | ||||
Property and equipment | ||||
Useful life | 3 years | |||
Computer hardware | Maximum | ||||
Property and equipment | ||||
Useful life | 5 years | |||
Furniture and office equipment | Minimum | ||||
Property and equipment | ||||
Useful life | 5 years | |||
Furniture and office equipment | Maximum | ||||
Property and equipment | ||||
Useful life | 7 years | |||
Leasehold improvements | Minimum | ||||
Property and equipment | ||||
Useful life | 4 years | |||
Leasehold improvements | Maximum | ||||
Property and equipment | ||||
Useful life | 10 years | |||
Internally-developed software | ||||
Property and equipment | ||||
Useful life | 3 years |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Property and equipment | |||||
Property and equipment, gross | $ 16,753 | $ 16,753 | $ 13,741 | ||
Accumulated depreciation and amortization | (8,962) | (8,962) | (6,986) | ||
Property and equipment, net | 7,791 | 7,791 | 6,755 | ||
Depreciation expense | 700 | $ 600 | 2,000 | $ 1,800 | |
Internally-developed software | |||||
Property and equipment | |||||
Property and equipment, gross | 8,718 | 8,718 | 6,069 | ||
Internally-developed software in process | |||||
Property and equipment | |||||
Property and equipment, gross | 1,264 | 1,264 | 1,751 | ||
Computer hardware | |||||
Property and equipment | |||||
Property and equipment, gross | 3,379 | 3,379 | 3,016 | ||
Furniture and office equipment | |||||
Property and equipment | |||||
Property and equipment, gross | 1,611 | 1,611 | 1,104 | ||
Leasehold improvements | |||||
Property and equipment | |||||
Property and equipment, gross | $ 1,781 | $ 1,781 | $ 1,801 |
Property and Equipment (Detai29
Property and Equipment (Details 2) $ in Thousands | Sep. 30, 2015USD ($) |
Estimated future depreciation and amortization expense for property and equipment | |
2,015 | $ 687 |
2,016 | 2,389 |
2,017 | 1,907 |
2,018 | 974 |
2,019 | 413 |
Thereafter | 157 |
Total | $ 6,527 |
Capitalized Content Developme30
Capitalized Content Development Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Capitalized Content Development Costs | |||||
Capitalized content development costs | $ 24,042 | $ 24,042 | $ 16,835 | ||
Capitalized content development costs in process | 3,112 | 3,112 | 3,699 | ||
Accumulated amortization | (10,394) | (10,394) | (7,379) | ||
Capitalized content development costs, net | 16,760 | 16,760 | $ 13,155 | ||
Amortization expense related to capitalized content development costs | 1,200 | $ 1,000 | 3,300 | $ 2,400 | |
Estimated future amortization expense for the capitalized content development costs | |||||
2,015 | 1,060 | 1,060 | |||
2,016 | 3,981 | 3,981 | |||
2,017 | 3,383 | 3,383 | |||
2,018 | 2,869 | 2,869 | |||
2,019 | 1,896 | 1,896 | |||
Thereafter | 459 | 459 | |||
Total | $ 13,648 | $ 13,648 |
Commitments and Contingencies31
Commitments and Contingencies (Details) | Jan. 21, 2014USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) |
Line of Credit | |||||||
Aggregate borrowing base | $ 37,000,000 | ||||||
Amount borrowed | $ 5,000,000 | $ 5,000,000 | |||||
Borrowings repaid | 5,000,000 | ||||||
Amount outstanding | $ 0 | $ 0 | $ 0 | ||||
Aggregate expected sublease payments | $ 400,000 | $ 400,000 | |||||
Applicable margin (as a percent) | 1.00% | ||||||
Adjusted quick ratio | 8.89 | 8.89 | 6.45 | ||||
Future minimum lease payments, net of aggregate expected sublease payments | |||||||
2,015 | $ 933,000 | $ 933,000 | |||||
2,016 | 3,801,000 | 3,801,000 | |||||
2,017 | 3,577,000 | 3,577,000 | |||||
2,018 | 2,463,000 | 2,463,000 | |||||
2,019 | 1,499,000 | 1,499,000 | |||||
Thereafter | 917,000 | 917,000 | |||||
Total future minimum lease payments | 13,190,000 | 13,190,000 | |||||
Deferred rent liability | 500,000 | 500,000 | $ 500,000 | ||||
Rent expense net of sublease income | 900,000 | $ 700,000 | 2,300,000 | 2,000,000 | |||
Sublease income | 100,000 | $ 100,000 | 200,000 | $ 200,000 | |||
Future minimum program payments for intellectual property and other rights | |||||||
2,015 | 500,000 | 500,000 | |||||
2,016 | 1,050,000 | 1,050,000 | |||||
2,017 | 1,050,000 | 1,050,000 | |||||
2,018 | 550,000 | 550,000 | |||||
2,019 | 550,000 | 550,000 | |||||
Thereafter | 2,700,000 | 2,700,000 | |||||
Total future minimum payments to clients | $ 6,400,000 | $ 6,400,000 | |||||
Base rate | |||||||
Line of Credit | |||||||
Variable interest rate basis | Base rate | ||||||
Applicable margin (as a percent) | 1.50% | ||||||
Federal fund rate | |||||||
Line of Credit | |||||||
Variable interest rate basis | federal funds rate | ||||||
30 days LIBOR | |||||||
Line of Credit | |||||||
Variable interest rate basis | 30 day LIBOR | ||||||
Applicable margin (as a percent) | 1.00% | ||||||
LIBOR | |||||||
Line of Credit | |||||||
Variable interest rate basis | LIBOR | ||||||
Applicable margin (as a percent) | 2.50% | ||||||
Minimum | |||||||
Line of Credit | |||||||
Covenants ratio | 1.10 | 1.10 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Taxes | ||||
Effective tax rate (as a percent) | 0.00% | 0.00% | 0.00% | 0.00% |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Millions | Jul. 01, 2015 | Sep. 30, 2015 | Jan. 01, 2015 | Dec. 31, 2014 |
Net proceeds from sale of common stock net accrued costs | $ 117.1 | |||
Authorized shares of capital stock | 205,000,000 | |||
Authorized shares of common stock | 200,000,000 | 200,000,000 | ||
Authorized shares of preferred stock | 5,000,000 | 5,000,000 | ||
Shares of common stock reserved for future issuance | ||||
Outstanding stock options | 5,577,214 | |||
Possible future issuance under equity incentive plan | 1,861,330 | |||
Outstanding restricted stock units | 1,235,274 | |||
Total shares of common stock reserved for future issuance | 8,673,818 | |||
Public | ||||
Shares issued | 3,625,000 | |||
Underwriters' over-allotment option | ||||
Shares issued | 525,000 | |||
2014 Equity Incentive Plan | ||||
Shares of common stock reserved for future issuance | ||||
Total shares of common stock reserved for future issuance | 2,036,503 | |||
Stock options | ||||
Shares of common stock reserved for future issuance | ||||
Granted (in shares) | 686,294 | |||
Stock options | 2014 Equity Incentive Plan | ||||
Shares of common stock reserved for future issuance | ||||
Exercise price (in dollars per share) | $ 32.20 | |||
Granted (in shares) | 6,520 | |||
Restricted Stock Units | ||||
Shares of common stock reserved for future issuance | ||||
Granted (in shares) | 572,866 | |||
Restricted Stock Units | 2014 Equity Incentive Plan | ||||
Shares of common stock reserved for future issuance | ||||
Granted (in shares) | 12,899 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2015USD ($)itemshares | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)itemshares | Sep. 30, 2014USD ($) | Dec. 31, 2014 | Jan. 01, 2015shares | |
Stock-Based Compensation | ||||||
Number of share-based employee compensation plans | item | 2 | 2 | ||||
Stock-based compensation expense included in the unaudited condensed consolidated statements of operations | ||||||
Common stock reserved for issuance | shares | 8,673,818 | 8,673,818 | ||||
Stock-based compensation expense | $ 3,302 | $ 2,247 | $ 9,217 | $ 5,486 | ||
Servicing and support | ||||||
Stock-based compensation expense included in the unaudited condensed consolidated statements of operations | ||||||
Stock-based compensation expense | 642 | 436 | 1,637 | 1,050 | ||
Technology and content development | ||||||
Stock-based compensation expense included in the unaudited condensed consolidated statements of operations | ||||||
Stock-based compensation expense | 442 | 269 | 1,100 | 578 | ||
Program marketing and sales | ||||||
Stock-based compensation expense included in the unaudited condensed consolidated statements of operations | ||||||
Stock-based compensation expense | 282 | 191 | 741 | 512 | ||
General and administrative | ||||||
Stock-based compensation expense included in the unaudited condensed consolidated statements of operations | ||||||
Stock-based compensation expense | $ 1,936 | $ 1,351 | $ 5,739 | $ 3,346 | ||
2014 Equity Incentive Plan | ||||||
Stock-based compensation expense included in the unaudited condensed consolidated statements of operations | ||||||
Period of annual automatic increase in the number of shares authorized | 10 years | |||||
Percentage applied on total number of shares of common stock outstanding on previous calendar year for automatic inclusion in the plan | 5.00% | |||||
Common stock reserved for issuance | shares | 2,036,503 |
Stock-Based Compensation (Det35
Stock-Based Compensation (Details 2) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Fair value assumptions and methodology | |||||
Weighted average grant date fair value (in dollars per share) | $ 15.23 | $ 7.72 | $ 12.51 | $ 5.95 | |
Summary of shares of common stock granted during the period | |||||
Estimated Grant Date Fair Value per Share | $ 15.23 | $ 7.72 | $ 12.51 | $ 5.95 | |
Summary of restricted stock unit activity | |||||
Total unrecognized compensation cost related to unvested RSUs | $ 16,000 | $ 16,000 | |||
Unrecognized compensation cost period expected to be realized | 2 years 9 months 18 days | ||||
Stock options | |||||
Fair value assumptions and methodology | |||||
Risk-free interest rate minimum (as a percent) | 1.70% | 1.50% | 1.70% | ||
Risk-free interest rate (as a percent) | 1.90% | ||||
Risk-free interest rate maximum (as a percent) | 1.90% | 1.90% | 2.10% | ||
Expected Term in (Years) | 6 years 29 days | ||||
Expected volatility minimum (as a percent) | 50.00% | ||||
Expected Volatility (as a percent) | 50.00% | 50.00% | 50.00% | ||
Expected volatility maximum (as a percent) | 55.00% | ||||
Dividend yield (as a percent) | 0.00% | 0.00% | 0.00% | 0.00% | |
Number of Options | |||||
Outstanding balance at the beginning of the period (in shares) | 5,850,211 | ||||
Granted (in shares) | 686,294 | ||||
Exercised (in shares) | (894,215) | ||||
Forfeited (in shares) | (58,851) | ||||
Expired (in shares) | (6,225) | ||||
Outstanding balance at the end of the period (in shares) | 5,577,214 | 5,577,214 | 5,850,211 | ||
Exercisable at the end of the period (in shares) | 3,394,119 | 3,394,119 | |||
Vested and expected to vest at the end of the period (in shares) | 5,403,708 | 5,403,708 | |||
Weighted Average Exercise Price per Share | |||||
Outstanding balance at the beginning of the period (in dollars per share) | $ 5.39 | ||||
Granted (in dollars per share) | 25.67 | ||||
Exercised (in dollars per share) | 4.83 | ||||
Forfeited (in dollars per share) | 12.35 | ||||
Expired (in dollars per share) | 12.30 | ||||
Outstanding balance at the end of the period (in dollars per share) | $ 7.89 | 7.89 | $ 5.39 | ||
Exercisable at the end of the period (in dollars per share) | 4.07 | 4.07 | |||
Vested and expected to vest at the end of the period (in dollars per share) | $ 7.62 | $ 7.62 | |||
Weighted Average Remaining Contractual Term | |||||
Outstanding balance | 6 years 11 months 5 days | 7 years 3 months 29 days | |||
Granted | 9 years 4 months 17 days | ||||
Exercised | 6 years 1 month 6 days | ||||
Exercisable at the end of the period | 5 years 11 months 23 days | ||||
Vested and expected to vest at the end of the period | 6 years 10 months 13 days | ||||
Aggregate Intrinsic Value | |||||
Outstanding balance at the end of the period | $ 156,200 | $ 156,200 | $ 83,487 | ||
Exercisable at the end of the period | 108,021 | 108,021 | |||
Vested and expected to vest at the end of the period | 152,841 | 152,841 | |||
Additional disclosures | |||||
Compensation cost related to the nonvested awards not yet recognized | $ 13,100 | $ 13,100 | |||
Weighted average period for recognition of compensation cost | 2 years 2 months 12 days | ||||
Aggregate intrinsic value of employee options exercised | $ 20,400 | $ 7,400 | |||
Summary of shares of common stock granted during the period | |||||
Number of Shares Underlying Options Granted | 686,294 | ||||
Exercise Price per Share | $ 25.67 | ||||
Stock options | Minimum | |||||
Fair value assumptions and methodology | |||||
Expected Term in (Years) | 5 years 1 month 10 days | 5 years 6 months 22 days | 5 years 1 month 10 days | ||
Stock options | Maximum | |||||
Fair value assumptions and methodology | |||||
Expected Term in (Years) | 6 years 29 days | 6 years 29 days | 6 years 3 months | ||
Restricted Stock Units | |||||
Summary of restricted stock unit activity | |||||
Outstanding balance at the beginning of the period (in shares) | 992,665 | ||||
Granted (in shares) | 572,866 | ||||
Vested (in shares) | (268,649) | ||||
Forfeited (in shares) | (61,608) | ||||
Outstanding balance at the end of the period (in shares) | 1,235,274 | 1,235,274 | 992,665 | ||
Weighted-Average Grant-Date Fair value | |||||
Outstanding at the beginning of the period (in dollars per share) | $ 11.39 | ||||
Granted (in dollars per share) | 25.59 | ||||
Vested (in dollars per share) | 11.47 | ||||
Forfeited (in dollars per share) | 15.09 | ||||
Outstanding at the end of the period (in dollars per share) | $ 17.77 | $ 17.77 | $ 11.39 | ||
Other stock awards | |||||
Summary of restricted stock unit activity | |||||
Granted (in shares) | 26,567 | ||||
Fair value of stocks granted | $ 800 |
Net Loss per Share (Details)
Net Loss per Share (Details) - shares | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Restricted Stock Units | ||
Potential dilutive securities that would have been anti-dilutive | ||
Potential dilutive securities that would have been anti-dilutive due to net loss (in shares) | 1,235,274 | 1,013,239 |
Stock options | ||
Potential dilutive securities that would have been anti-dilutive | ||
Potential dilutive securities that would have been anti-dilutive due to net loss (in shares) | 5,577,214 | 6,282,657 |
Net Loss per Share (Details 2)
Net Loss per Share (Details 2) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Numerator | ||||
Net loss attributable to holders of common stock | $ (8,235) | $ (7,337) | $ (23,333) | $ (25,071) |
Denominator: | ||||
Weighted-average shares of common stock outstanding, basic and diluted | 41,645,894 | 40,269,937 | 41,331,481 | 29,209,970 |
Net loss per share attributable to holders of common stock, basic and diluted (in dollars per share) | $ (0.20) | $ (0.18) | $ (0.56) | $ (0.86) |
Segment and Geographic Inform38
Segment and Geographic Information (Details) | 9 Months Ended |
Sep. 30, 2015segment | |
Segment and Geographic Information | |
Number of reportable segments | 1 |