Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 22, 2016 | Jun. 30, 2015 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | JIVE | ||
Entity Registrant Name | Jive Software, Inc. | ||
Entity Central Index Key | 1,462,633 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 76,528,316 | ||
Entity Public Float | $ 255.8 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 9,870 | $ 20,594 |
Short-term marketable securities | 96,410 | 93,001 |
Accounts receivable, net | 54,090 | 66,729 |
Prepaid expenses and other current assets | 13,135 | 13,490 |
Total current assets | 173,505 | 193,814 |
Marketable securities, noncurrent | 6,429 | 7,542 |
Property and equipment, net | 12,747 | 12,986 |
Goodwill | 29,753 | 29,753 |
Intangible assets, net | 4,546 | 9,448 |
Other assets | 8,165 | 9,314 |
Total assets | 235,145 | 262,857 |
Current liabilities: | ||
Accounts payable | 3,684 | 3,565 |
Accrued payroll and related liabilities | 6,954 | 6,622 |
Other accrued liabilities | 7,842 | 8,246 |
Deferred revenue, current | 131,850 | 128,592 |
Term debt, current | 2,400 | 2,400 |
Total current liabilities | 152,730 | 149,425 |
Deferred revenue, less current portion | 16,392 | 31,947 |
Term debt, less current portion | 1,200 | 3,600 |
Other long-term liabilities | 2,682 | 1,288 |
Total liabilities | $ 173,004 | $ 186,260 |
Commitments and contingencies (Note 13) | ||
Stockholders’ Equity: | ||
Common stock, $0.0001 par value. Authorized 290,000 shares; issued - 82,820 shares at December 31, 2015 and 80,342 at December 31, 2014; outstanding - 76,395 at December 31, 2015 and 73,917 at December 31, 2014 | $ 7 | $ 7 |
Less treasury stock at cost | (3,352) | (3,352) |
Additional paid-in capital | 384,164 | 363,587 |
Accumulated deficit | (318,537) | (283,684) |
Accumulated other comprehensive income (loss) | (141) | 39 |
Total stockholders’ equity | 62,141 | 76,597 |
Total liabilities and stockholders’ equity | $ 235,145 | $ 262,857 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 290,000,000 | 290,000,000 |
Common stock, shares issued | 82,820,000 | 80,342,000 |
Common stock, shares outstanding | 76,395,000 | 73,917,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues: | |||
Product | $ 180,172 | $ 162,185 | $ 131,507 |
Professional services | 15,621 | 16,508 | 14,256 |
Total revenues | 195,793 | 178,693 | 145,763 |
Cost of revenues: | |||
Product | 49,816 | 43,494 | 37,419 |
Professional services | 22,378 | 23,179 | 17,873 |
Total cost of revenues | 72,194 | 66,673 | 55,292 |
Gross profit | 123,599 | 112,020 | 90,471 |
Operating expenses: | |||
Research and development | 52,818 | 52,275 | 55,742 |
Sales and marketing | 78,684 | 90,141 | 86,083 |
General and administrative | 26,708 | 24,633 | 24,613 |
Total operating expenses | 158,210 | 167,049 | 166,438 |
Loss from operations | (34,611) | (55,029) | (75,967) |
Other income (expense), net: | |||
Interest income | 277 | 205 | 249 |
Interest expense | (171) | (269) | (314) |
Other, net | 903 | 78 | (349) |
Total other income (expense), net | 1,009 | 14 | (414) |
Loss before provision for (benefit from) income taxes | (33,602) | (55,015) | (76,381) |
Provision for (benefit from) income taxes | 1,251 | 1,138 | (1,010) |
Net loss | $ (34,853) | $ (56,153) | $ (75,371) |
Basic and diluted net loss per share (dollars per share) | $ (0.46) | $ (0.79) | $ (1.12) |
Shares used in basic and diluted per share calculations | 75,217 | 70,751 | 67,381 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (34,853) | $ (56,153) | $ (75,371) |
Other comprehensive income (loss): | |||
Foreign currency translation | (100) | (205) | 290 |
Unrealized loss on marketable securities | (80) | (32) | (45) |
Other comprehensive income (loss) | (180) | (237) | 245 |
Comprehensive loss | $ (35,033) | $ (56,390) | $ (75,126) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common stock [Member] | Treasury stock [Member] | Additional paid-in capital [Member] | Accumulated Deficit [Member] | Accumulated other comprehensive income [Member] |
Beginning balance at Dec. 31, 2012 | $ 129,858 | $ 7 | $ (3,352) | $ 285,332 | $ (152,160) | $ 31 |
Beginning balance, shares at Dec. 31, 2012 | 65,399 | |||||
Issuance of common stock for employee stock options exercised and vesting of restricted shares | 5,873 | 5,873 | ||||
Issuance of common stock for employee stock options exercised and vesting of restricted shares, shares | 3,783 | |||||
Issuance of common stock for acquisitions | 852 | 852 | ||||
Issuance of common stock for acquisitions, shares | 471 | |||||
Stock-based compensation | 34,777 | 34,777 | ||||
Foreign currency translation, net of tax | 290 | 290 | ||||
Unrealized gain on marketable securities, net of tax | (45) | (45) | ||||
Net loss | (75,371) | (75,371) | ||||
Ending balance at Dec. 31, 2013 | 96,234 | $ 7 | (3,352) | 326,834 | (227,531) | 276 |
Ending balance, shares at Dec. 31, 2013 | 69,653 | |||||
Issuance of common stock for employee stock options exercised and vesting of restricted shares | 2,492 | 2,492 | ||||
Issuance of common stock for employee stock options exercised and vesting of restricted shares, shares | 4,264 | |||||
Stock-based compensation | 34,261 | 34,261 | ||||
Foreign currency translation, net of tax | (205) | (205) | ||||
Unrealized gain on marketable securities, net of tax | (32) | (32) | ||||
Net loss | (56,153) | (56,153) | ||||
Ending balance at Dec. 31, 2014 | 76,597 | $ 7 | (3,352) | 363,587 | (283,684) | 39 |
Ending balance, shares at Dec. 31, 2014 | 73,917 | |||||
Issuance of common stock for employee stock options exercised and vesting of restricted shares | 287 | 287 | ||||
Issuance of common stock for employee stock options exercised and vesting of restricted shares, shares | 2,478 | |||||
Stock-based compensation | 20,290 | 20,290 | ||||
Foreign currency translation, net of tax | (100) | (100) | ||||
Unrealized gain on marketable securities, net of tax | (80) | (80) | ||||
Net loss | (34,853) | (34,853) | ||||
Ending balance at Dec. 31, 2015 | $ 62,141 | $ 7 | $ (3,352) | $ 384,164 | $ (318,537) | $ (141) |
Ending balance, shares at Dec. 31, 2015 | 76,395 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities: | |||
Net loss | $ (34,853) | $ (56,153) | $ (75,371) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 15,605 | 15,458 | 15,774 |
Stock-based compensation | 20,290 | 32,908 | 34,754 |
Change in deferred taxes | 338 | 243 | (1,231) |
Non-recurring gain | (1,107) | 0 | 0 |
Loss on sale of property and equipment | 103 | 19 | 10 |
(Increase) decrease, net of acquisitions, in: | |||
Accounts receivable, net | 12,639 | (7,900) | (4,629) |
Prepaid expenses and other assets | (307) | (4,084) | (1,437) |
Increase (decrease), net of acquisitions, in: | |||
Accounts payable | 535 | (2,622) | (2,669) |
Accrued payroll and related liabilities | 300 | (883) | 101 |
Other accrued liabilities | (1,266) | 139 | 1,057 |
Deferred revenue | (12,297) | 13,202 | 30,290 |
Other long-term liabilities | 315 | 16 | 373 |
Net cash provided by (used in) operating activities | 295 | (9,657) | (2,978) |
Cash flows from investing activities: | |||
Payments for purchase of property and equipment | (6,450) | (9,313) | (13,934) |
Purchases of marketable securities | (133,314) | (91,987) | (111,700) |
Sales of marketable securities | 25,383 | 36,174 | 40,772 |
Maturities of marketable securities | 104,317 | 57,324 | 84,934 |
Acquisitions, net of cash acquired | 0 | 0 | (11,047) |
Net cash used in investing activities | (10,064) | (7,802) | (10,975) |
Cash flows from financing activities: | |||
Proceeds from exercise of stock options | 1,345 | 4,250 | 6,947 |
Taxes paid related to net share settlement of equity awards | (1,058) | (1,758) | (1,074) |
Repayments of term loans | (2,400) | (2,400) | (2,400) |
Earnout payment for prior acquisition | 0 | (576) | 0 |
Non-recurring gain | 1,107 | 0 | 0 |
Net cash provided by (used in) financing activities | (1,006) | (484) | 3,473 |
Net decrease in cash and cash equivalents | (10,775) | (17,943) | (10,480) |
Effect of exchange rate changes | 51 | 122 | (60) |
Cash and cash equivalents, beginning of period | 20,594 | 38,415 | 48,955 |
Cash and cash equivalents, end of period | $ 9,870 | $ 20,594 | $ 38,415 |
Nature of Business
Nature of Business | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Nature of Business | Nature of Business We provide products that we believe improve business results by enabling a more productive and effective workforce through enhanced communications and collaboration both inside and outside the enterprise. Organizations deploy our products to improve the level of engagement, the quality of interaction and the overall relationship they have with their employees, customers and partners. Our products are primarily offered on a subscription basis, deployable in a private or public cloud and used for internal or external communities. We generate revenues from product subscription license fees as well as from professional service fees for strategic consulting, configuration, implementation and training. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”), requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and the related disclosure of contingent assets and liabilities in the financial statements and the accompanying notes. Significant estimates include the estimates relating to revenue recognition, the useful lives of property and equipment, stock-based compensation, assumptions used in testing for impairment of goodwill, other long-lived assets, capitalized software development costs, and the recoverability of deferred income tax assets and liabilities. Actual results could differ from those estimates, and such differences may be material to the consolidated financial statements. Principles of Consolidation The consolidated financial statements include the accounts of Jive Software, Inc. and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Segments An operating segment is defined as a component of an enterprise that meets the following criteria: • engages in business activities from which it may earn revenues and incur expenses; • operating results are regularly reviewed by the enterprise’s chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance; and • discrete financial information is available. We define the term “chief operating decision maker” to be our Chief Executive Officer. Our Chief Executive Officer reviews financial information presented on a consolidated basis, accompanied by information about revenue by product line and geographic region for purposes of allocating resources and evaluating financial performance. We have 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, we have determined that we operate in a single reporting segment, software sales and service. Revenue Recognition We generate revenues in the form of product fees and related professional service fees. Product fees include subscription fees, perpetual license fees, associated support and maintenance fees and hosting fees. Professional services primarily consist of fees for strategic consulting, configuration, training, consultation and implementation services, which are not essential to the functionality of the software. For statement of operations classification purposes, we allocate revenues to professional services based on the hourly rate billed for time and materials arrangements and based on the total fixed fee for fixed fee professional services. We recognize revenue when all of the following conditions are met: • there is persuasive evidence of an arrangement; • the product or services have been delivered to the customer; • the amount of fees to be paid by the customer is fixed or determinable; and • the collection of the related fees is reasonably assured. Signed agreements are used as evidence of an arrangement. If a contract signed by the customer does not exist, we have historically used a purchase order as evidence of an arrangement. In cases where both a signed contract and a purchase order exist, we consider the signed contract to be the final persuasive evidence of an arrangement. Software and corresponding license keys are delivered to customers electronically. Electronic delivery occurs when we provide the customer with access to the software. We assess whether a fee is fixed or determinable at the outset of the arrangement, primarily based on the payment terms associated with the transaction. We do not generally offer extended payment terms. Typical payment terms are due between 30 and 60 days from delivery of solutions or services. For professional services that are billable under a time and materials based arrangement, these fees are neither fixed nor determinable until the work is performed and the fee becomes billable to the customer. We assess collectability of the customer receivable based on a number of factors such as collection history with the customer and creditworthiness of the customer. If we determine that collectability is not reasonably assured, revenue is deferred until collectability becomes reasonably assured, generally upon receipt of cash. We offer subscriptions of our platform to customers most frequently on a term basis with terms typically ranging from 12 to 36 months . While term-based licenses make up the majority of our total revenues, we occasionally license our solutions to customers on a perpetual basis with on-going support and maintenance services. We recognize license revenue in accordance with software industry specific guidance. Revenues related to term license fees are recognized ratably over the contract term beginning on the date the customer has access to the software license key and continuing through the end of the contract term. For term-based licenses, we do not charge separately for standard support and maintenance, and, therefore, inherent in the license fees are fees for support and maintenance services for the duration of the license term. As fees for support and maintenance are always bundled with the license over the entire term of the contract, we do not have vendor-specific objective evidence (“VSOE”) of fair value for support and maintenance. Revenues generated from perpetual license sales also include support and maintenance services for an initial stated term, both the perpetual license and support and maintenance are recognized ratably over the initial stated term. We do not have VSOE of fair value for support and maintenance on perpetual licenses as we have not had sufficient consistently priced standalone sales of support and maintenance, nor have we offered substantive renewal rates for support and maintenance. Additionally, customers who have purchased perpetual licenses to the base platform have historically also purchased term-based subscriptions to certain of our modules. We do not have VSOE of fair value for either the support and maintenance on the perpetual license or the modules and, therefore, revenue is recognized ratably over the longer of the initial maintenance term for the perpetual license or the term for the subscription elements. License arrangements may also include professional services, such as strategic consulting installation, upgrades and training services, which are typically delivered early in the contract term. This combination of products and services represents a multiple-element arrangement for revenue recognition purposes. We have determined that we do not have VSOE of fair value for each element of a multiple-element sales arrangement and, accordingly, we account for fees received under that multiple-element arrangement as a single unit of accounting and recognize the fees for the entire arrangement ratably, commencing on delivery of the software, over the longer of the term of the support and maintenance or the period over which professional services are delivered. Support and maintenance is always the last undelivered element in the arrangement and, therefore, we recognize the fixed portion of the fees ratably over the support and maintenance term. For contracts with multiple elements, we recognize the license, support and maintenance, and fixed fee professional service revenue ratably over the term of the arrangement beginning upon delivery of the software. We believe this method most closely reflects the economics of the transaction as we deliver access to the software and we begin providing support and maintenance services as of the date the software is delivered. Professional services are offered on both fixed fee and time and materials hourly billing arrangements. For time and materials-based professional services that are part of a multiple-element arrangement where the fees for the professional services are not fixed or determinable upon delivery of the software, revenue is recognized ratably over the contract term as the related fees become fixed. These fees are not considered fixed at the outset of the arrangement and become fixed as the related work is performed and the fees are earned and billed. These services are typically provided early in the contract term with completion typically occurring in the first six months. As these fees become fixed, they are added to the total fee for the multiple-element arrangement and recognized ratably with all other arrangement fees over the entire contract term. When billed, a cumulative revenue catch-up is calculated as the revenue earned from the date the software was made available to the customer to the date services have been completed, with recognition continuing ratably to the end of the contract term. These amounts, when recognized in our Consolidated Statements of Operations, are classified as professional services revenues based on the hourly rates at which they are billed. If there are significant acceptance clauses associated with the license or services or uncertainty associated with our ability to perform the professional services, revenues are deferred until the acceptance is received or the uncertainty is resolved. We record amounts that have been invoiced, in accordance with the terms of the agreement, in accounts receivable and in deferred revenues or revenues, depending on whether the revenue recognition criteria have been met. Hosting revenues are derived from providing our software solutions in a hosted environment where the customer does not take possession of the software on their premises. With the exception of the Jive Cloud licensing model, customers have the option to elect to take possession of the software and install on their premises or sub-contract the hosting services through us. Such arrangements are considered software sales as the customer has the same rights to the software license regardless of their election to have us host on their behalf or install on their premises. As a result, the fees associated with license, support and hosted services are recognized as revenue ratably over the term of the arrangement. For Jive Cloud licensing arrangements, customers do not have the right to take possession of the software supporting the cloud-based application service at any time. We occasionally sell professional services separately and recognize revenues resulting from those as professional services are performed. If there is a significant uncertainty about the project completion or receipt of payment for the consulting services, revenues are deferred until the uncertainty is resolved. If acceptance provisions exist within a professional services arrangement, revenues will be deferred until the services are accepted, the acceptance period has expired or cash is received from the customer. Taxes Collected from Customers and Remitted to Governmental Authorities We account for tax assessed by a governmental authority that is directly imposed on a revenue-producing transaction (i.e., sales, use, value added) on a net (excluded from revenue) basis. Cash and Cash Equivalents We consider all highly liquid investments with an original maturity of three months or less to be cash equivalents. Our cash balances with financial institutions may exceed the deposit insurance limits. Included in cash and cash equivalents were cash equivalents of $0.2 million and $1.6 million at December 31, 2015 and 2014 , respectively. Cash equivalents are stated at cost, which approximates market value. Marketable Securities We classify our marketable securities as available-for-sale and, accordingly, record them at fair value based on quoted market prices. Unrealized holding gains and losses are excluded from earnings and are reported as a separate component of stockholders’ equity until realized. See the Consolidated Statements of Comprehensive Loss. We periodically evaluate whether declines in fair values of our marketable securities below their cost are “other-than-temporary.” This evaluation consists of qualitative and quantitative factors regarding the severity and duration of the unrealized loss, as well as our ability and intent to hold the marketable securities until a forecasted recovery occurs. Dividend and interest income is recognized when earned. Realized gains and losses are included in earnings and are derived using the specific identification method for determining the cost of securities sold. Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are carried at their original invoice amounts less the allowance for doubtful accounts and do not bear interest. Our policy is to maintain an allowance for estimated losses resulting from the inability or refusal of our customers to make required payments. In establishing the required allowance, management considers historical losses adjusted to take into account current market conditions and the customers’ financial condition, the amount of receivables in dispute, and the current receivables aging and current payment patterns. On a quarterly basis, we evaluate the collectability of our trade receivable balances based on a combination of factors. Past due balances over 90 days and over a specified amount are reviewed individually for collectability. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. If the financial conditions of our customers were to materially change or there were other circumstances that resulted in their inability or unwillingness to pay, the estimates of recoverability of receivables could materially change. Activity related to our allowance for doubtful accounts was as follows (in thousands): Balance, December 31, 2012 $ 218 Charges to expense and deferred revenue 672 Write-offs (150 ) Balance, December 31, 2013 740 Charges to expense and deferred revenue 599 Write-offs (780 ) Balance, December 31, 2014 559 Charges to expense and deferred revenue 1,529 Write-offs (918 ) Balance, December 31, 2015 $ 1,170 Fair Value of Financial Assets and Liabilities The carrying value of cash equivalents, accounts receivable, prepaid expenses and other current assets, accounts payable, accrued payroll and related liabilities and other accrued liabilities approximates their fair values due to the short-term nature of their maturities. The fair value of the long-term debt approximates its carrying value since the interest rate is variable and based on current market rates. Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives as follows: • three years for computer equipment, hardware and software; • seven years for furniture, fixtures and equipment; and • the lesser of five years or the remaining term of the underlying lease for leasehold improvements. Ordinary maintenance and repairs are expensed as incurred. Research and Development We expense research and development costs, including costs to develop software products to be marketed to external users, before technological feasibility of such products is reached. We believe our software development process is essentially completed concurrent with the establishment of technological feasibility; accordingly, development costs are expensed as incurred. Software Development Costs and Internal-Use Software Development Costs Through the third quarter of 2014, we capitalized costs to develop internal-use software during the application development stage. These costs related to application development activities. In the third quarter of 2014, management developed a substantive plan to repurpose the in-process development into our existing software platform and new software products. As a result of this decision, the associated capitalized internal-use software costs became governed by the accounting standards related to development costs for software to be sold in the third quarter of 2014. As such, subsequent to July 2014, we no longer capitalize costs related to internal-use software and we account for our current capitalized costs as development costs for software to be sold. Software development costs incurred subsequent to establishing technological feasibility through the general release of the software products are capitalized. Technological feasibility is demonstrated by the completion of a detailed program design or working model, if no program design is completed. Historically, technological feasibility has occurred concurrently with the commercial release of our products and, as a result, we have not capitalized development costs for software to be sold. We do not anticipate capitalizing material software development costs in future periods. GAAP requires that annual amortization expense of the capitalized software development costs be the greater of the amounts computed using the ratio of gross revenue to a products’ total current and anticipated revenues or the straight-line method over the products’ remaining estimated economic life. The software development costs are being amortized on a straight-line basis over their estimated useful life and recorded as a component of cost of product revenues. We begin amortizing the associated capitalized costs upon each product’s or enhancement’s release. Through December 31, 2015 , we released products related to $5.1 million of the capitalized costs. We anticipate the remaining products related to the capitalized costs to be commercially released through the first half of 2017. We make ongoing evaluations of the recoverability of our capitalized software by comparing the amount capitalized to the estimated net realizable value. If such evaluations indicate that the unamortized software development costs exceed the net realizable value, we write off the amount by which the unamortized software development costs exceed net realizable value. There was no impairment charge related to capitalized software development costs during the years ended December 31, 2015 , 2014 or 2013 . Year Ended December 31, 2015 2014 2013 Software development costs capitalized during period $ — $ 5,924 $ 3,057 Amortization of capitalized software development costs 2,012 65 — Capitalized computer software development costs consist of the following at December 31, 2015 and 2014 (in thousands): 2015 2014 Capitalized software development costs $ 8,981 $ 8,981 Accumulated amortization (2,077 ) (65 ) $ 6,904 $ 8,916 As of December 31, 2015 and 2014 the net balance of software development costs is included in other assets. Of our capitalized software development costs that are currently completed and being amortized, we expect future amortization expense to be as follows (in thousands): 2016 $ 2,517 2017 571 $ 3,088 Accounting for the Impairment of Long-Lived Assets We evaluate the recoverability of our long-lived assets, which principally consist of property and equipment and acquired intangible assets with finite lives, whenever events or circumstances indicate that the carrying amount of these assets may not be recoverable. Recoverability of an asset is measured by comparing the carrying amount to the expected future undiscounted cash flows that the asset is expected to generate. If that review indicates that the carrying amount of the long-lived asset is not recoverable, an impairment loss is recorded for the amount by which the carrying amount of the asset exceeds its fair value. We did not incur any long-lived asset impairment charges in the years ended December 31, 2015 , 2014 or 2013 . Goodwill Goodwill represents the excess of the purchase price over the estimated fair value of the net tangible and intangible assets of acquired entities. We perform a goodwill impairment test annually during the fourth quarter of our fiscal year and more frequently if an event or circumstance indicates that an impairment may have occurred. Such events or circumstances may include significant adverse changes in the general business climate, among other things. To test for impairment, we can choose to first make a qualitative assessment to determine whether it is more likely than not that goodwill is impaired before applying the two-step goodwill impairment test. If the conclusion is that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, we then perform a two-step goodwill impairment test. During 2015 , 2014 and 2013 , we elected to forgo the qualitative assessment, and proceeded to the first step of the test for goodwill impairment. Under the first step, the fair value of the reporting unit is compared with its carrying value, and, if an indication of goodwill impairment exists for the reporting unit, we must perform step two of the impairment test (measurement). Under step two, an impairment loss is recognized for any excess of the carrying amount of the reporting unit’s goodwill as determined by allocating the fair value of the reporting unit in a manner similar to a purchase price allocation. The residual fair value after this allocation is the implied fair value of the reporting unit goodwill. If the fair value of the reporting unit exceeds its carrying value, step two does not need to be performed. If the carrying amount of goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to that excess. We determined that the fair value of the reporting unit substantially exceeded its carrying value and, accordingly, we did not record any charges related to goodwill impairment during the years ended December 31, 2015 , 2014 or 2013 . Intangible Assets Definite-lived intangible assets are amortized using the straight-line method over estimated useful lives and have no significant residual value. Definite-lived intangible assets are reviewed for impairment as discussed above under “Accounting for the Impairment of Long-Lived Assets.” Other Assets Other assets include deposits for facilities’ leases, capitalized software development costs and other miscellaneous long-term assets. Deferred Revenue Deferred revenue consists of billings or payments received in advance of revenue recognition from our subscription license, perpetual license, hosting, professional services and support and maintenance revenues described above and are recognized as the revenue recognition criteria are met. We generally invoice our customers in annual installments. Accordingly, the deferred revenues balance does not represent the total contract value of annual or multi-year non-cancelable subscription agreements. Deferred revenue also includes certain deferred professional services fees, which are recognized as revenues ratably over the associated contract term. We defer the professional service fees in situations where the professional services and subscription or perpetual contracts are accounted for as a single unit of accounting. Deferred revenue that will be recognized during the succeeding 12 -month period is recorded as current deferred revenue, and the remaining portion is recorded as noncurrent. Approximately 6% and 4% of total deferred revenue as of December 31, 2015 and 2014 , respectively, related to deferred professional services revenues. Concentration of Risk Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash and trade receivables. Cash is placed on deposit in major financial institutions in the United States. Such deposits may be in excess of insured limits. Management believes that the financial institutions that hold our cash deposits are financially sound and, accordingly, minimal credit risk exists with respect to these balances. We sell our products to companies in diverse industries and do not require our customers to provide collateral to support accounts receivable. When necessary, credit reviews of significant customers are performed prior to extending credit. The determination of a customer’s ability to pay requires significant judgment, and failure to collect from a customer can adversely affect revenues, cash and net income. No individual customer accounted for 10% or more of total revenues in the years ended December 31, 2015 , 2014 or 2013 . No customer accounted for 10% or more of total accounts receivable at December 31, 2015 or 2014 . Stock-Based Compensation We recognize compensation expense for all share-based payment awards, including stock options, restricted stock and purchases under the 2015 Employee Stock Purchase Plan (the "ESPP") based on the estimated fair value of the award on the grant date. We use the Black-Scholes-Merton valuation model to estimate the fair value of stock option awards. The fair value of the awards is recognized as expense, net of estimated forfeitures, on a straight-line basis over the requisite service period, which is generally the vesting period of the respective award. Stock-based compensation expense is recognized for performance-based restricted stock awards based on the probability of achieving certain performance criteria. We estimate the number of performance-based restricted stock awards ultimately expected to vest and recognize expense using the graded vesting attribution method over the requisite service period. The determination of the grant date fair value of options using an option-pricing model is affected by assumptions regarding a number of other complex and subjective variables, which include our expected stock price volatility over the expected term of the options, stock option exercise and cancellation behaviors, risk-free interest rates and expected dividends. Income Taxes We record deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial statement carrying amounts and the tax basis of the assets and liabilities. Deferred tax assets are reduced by a valuation allowance when it is estimated to be more likely than not that a portion of the deferred tax assets will not be realized. We recognize the effect of income tax positions only if those positions are “more likely than not” of being sustained. Interest and penalties accrued on unrecognized tax benefits are recorded as tax expense within our consolidated financial statements. Warranties and Indemnification We typically warrant that our products will perform in a manner consistent with the product specifications provided to the customer for 180 days for sales to companies in the United States and 365 days for sales to companies in Europe. Historically, we have not been required to make payments under these obligations, and we have not recorded any liability for these obligations in our consolidated financial statements. In our cloud and hosted agreements, we include service level commitments to customers relating to levels of uptime availability and permitting those customers to receive credits in the event that we fail to meet those levels. To date, we have not incurred any material costs as a result of such commitments and have not accrued any liabilities related to such obligations in the accompanying consolidated financial statements. Our contracts also include provisions indemnifying customers against liabilities if our products infringe a third-party’s intellectual property rights. We have not incurred any costs as a result of such indemnification obligations and have not accrued any liabilities related to such obligations in the accompanying consolidated financial statements. We have also agreed to indemnify our directors and executive officers for costs associated with any fees, expenses, judgments, fines and settlement amounts incurred by any of these persons in any action or proceeding to which any of those persons is, or is threatened to be, made a party by reason of the person’s service as a director or officer, arising out of that person’s services as our director or officer or that person’s services provided to any other company or enterprise at our request. We maintain director and officer insurance coverage that may enable us to recover a portion of any future amounts paid. Commissions Commissions are recorded as a component of sales and marketing expenses and consist of the variable compensation paid to our direct sales force. Generally, sales commissions are earned and recorded as an expense at the time that a customer has entered into a binding purchase agreement. Commissions paid to sales personnel are recoverable only in the case that we cannot collect against any invoiced fee associated with a sales order. Commission expense was $11.8 million , $13.7 million and $15.7 million , for the years ended December 31, 2015 , 2014 and 2013 , respectively. Leases We lease our facilities and certain equipment under operating leases. For facility leases that contain rent escalation or rent concession provisions, we record the total rent expense during the lease term on a straight-line basis over the term of the lease. For facility leases that contain tenant improvement allowances, we recognize a lease incentive liability and amortize these amounts on a straight-line basis over the term of the related leases as a reduction of rent expense. We record the difference between the rent paid and the straight-line rent expense as a deferred rent liability in other long-term liabilities in the accompanying Consolidated Balance Sheets. Advertising Costs Advertising costs are expensed as incurred as a component of sales and marketing expense and totaled $5.6 million , $7.7 million and $5.3 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. Legal Costs We are party to legal proceedings arising in the normal course of business. Legal costs are expensed as incurred as a component of general and administrative expense. Net Loss Per Share Basic net loss per share is computed by dividing the net loss by the weighted-average number of shares of common stock outstanding during the period, less the weighted-average unvested common stock subject to repurchase or forfeiture. Diluted net loss per share is computed by giving effect to all potential shares of common stock, including preferred stock, stock options and warrants, to the extent dilutive. Since we were in a loss position for all periods presented, basic and diluted net loss per share was the same for each period presented as the inclusion of all potential common shares outstanding would have been anti-dilutive. Foreign Currency Translation The functional currency of our foreign subsidiaries is the local currency. Adjustments resulting from translating foreign functional currency financial statements into U.S. dollars are recorded as a separate component of stockholders’ deficit. Income and expense accounts are translated into U.S. dollars at average rates of exchange prevailing during the periods presented. Foreign currency transaction gains and losses are included in net loss. All assets and liabilities denominated in a foreign currency are translated into U.S. dollars at the respective exchange rates in effect on the consolidated balance sheet dates. Foreign currency transaction gains and losses were not material in the years ended December 31, 2015 , 2014 or 2013 . |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions 2013 Clara Ehf. (“Clara”) On April 18, 2013, we acquired substantially all of the assets and certain related liabilities of Clara, a private limited company founded in Iceland that provides a cloud-based analytics tool that allows businesses to understand, monitor and actively engage with community members within online platforms. The total purchase consideration of approximately $6.5 million was comprised entirely of cash. The allocation of the purchase price was as follows (dollars in thousands): Useful Life Current assets $ 81 Goodwill 3,161 Other intangible assets: Core technology 2,315 5 years Covenant not to compete 227 2 years Customer relationships 570 3 years Trade names 230 3 years 3,342 Current liabilities (96 ) Net assets acquired $ 6,488 The key factor attributable to the creation of goodwill by the transaction is the synergies created by the integration of the Clara analytics technology with our social platform, for both internal and external communities. All of the goodwill is expected to be deductible for income tax purposes. The weighted average amortization period for all intangible assets acquired is 4.3 years . Transaction costs of $0.2 million associated with the acquisition of Clara were expensed as incurred as a component of general and administrative expenses on our Consolidated Statements of Operations. Clara’s results of operations have been included in our consolidated financial statements subsequent to the date of acquisition. Pro forma results of operations have not been presented because the effect of the acquisition was not material. Revenue and earnings information since the date of acquisition was not material to the current period financial statements. StreamOnce, Inc. (“StreamOnce”) On April 29, 2013, we acquired all of the outstanding shares of StreamOnce, whose product offers a platform that connects third-party information streams directly into our Jive Social Business Platform, integrating disparate information systems for increased productivity. The total initial purchase consideration was comprised of $4.7 million in cash and 532,952 shares of our common stock with a fair value on April 29, 2013 of $7.3 million . Of the 532,952 shares of common stock, 470,552 shares of common stock issued to certain StreamOnce employees vested over a two -year period contingent upon the continued employment of the recipients. The fair value of these shares totaled $6.4 million , and was recognized as stock-based compensation over the two -year vesting period. Additionally, during 2014, certain StreamOnce employees received additional consideration of $0.7 million , based on our sales and customer count relating to the acquired business exceeding certain thresholds over an 18 -month period commencing as of the acquisition date (the “Earnout”). We recorded a contingent consideration liability of approximately $0.6 million within other accrued liabilities in our Consolidated Balance Sheets as of the acquisition date related to the Earnout. The fair value of the liability was estimated using internal forecasts with inputs that are not observable in the market, and thus represents a Level 3 fair value measurement as defined within Note 7. The inputs in the Level 3 measurement are not supported by market activity, as they are probability assessments of expected future sales and customer count related to our acquisition of StreamOnce during the Earnout period. The Earnout was remeasured quarterly until paid, with the change being reflected as a component of research and development in our Consolidated Statements of Operations. See Note 7 for additional information. The allocation of the purchase price was as follows (dollars in thousands): Cash paid $ 4,667 Value of common stock issued 852 Contingent consideration 576 Total transaction consideration: $ 6,095 Useful Life Current assets $ 108 Goodwill 3,157 Other intangible assets: Core technology 3,671 5 years Covenant not to compete 459 3 years Trade names 118 3 years 4,248 Current liabilities (67 ) Deferred tax liability (1,351 ) Net assets acquired $ 6,095 The goodwill recorded in connection with the acquisition of StreamOnce is primarily related to the ability of StreamOnce to increase viral adoption of the Jive Platform within our customers by integrating their existing third-party business applications with our platform and from the expected synergies to be achieved in connection with the acquisition. None of the goodwill is expected to be deductible for income tax purposes. The weighted average amortization period for all intangible assets acquired is 4.7 years . In connection with the StreamOnce acquisition, a deferred tax liability of $1.4 million was established for the book and tax basis differences related to specifically identified non-goodwill intangibles. The net liability from the acquisition created an additional source of income to utilize our deferred tax assets and, therefore, a corresponding amount of the valuation allowance was released and recorded as a benefit from income taxes in 2013. Transaction costs of $0.2 million associated with the acquisition of StreamOnce were expensed as incurred as a component of general and administrative expenses on our Consolidated Statements of Operations. StreamOnce’s results of operations have been included in our Consolidated Financial Statements subsequent to the date of acquisition. Pro forma results of operations have not been presented because the effect of the acquisition was not material. Revenue and earnings information since the date of acquisition was not material to the current period financial statements. |
Cash, Cash Equivalents and Mark
Cash, Cash Equivalents and Marketable Securities | 12 Months Ended |
Dec. 31, 2015 | |
Cash and Cash Equivalents [Abstract] | |
Cash, Cash Equivalents and Marketable Securities | Cash, Cash Equivalents and Marketable Securities Cash and cash equivalents and marketable securities consisted of the following as of December 31, 2015 and 2014 (in thousands): December 31, 2015 Description Cost Unrealized Gains Unrealized Losses Estimated Fair Value Cash $ 9,624 $ — $ — $ 9,624 Cash equivalents: Money market mutual funds 246 — — 246 Total cash and cash equivalents 9,870 — — 9,870 Short-term marketable securities: Commercial paper 7,485 — — 7,485 Corporate notes and bonds 44,483 — (60 ) 44,423 Government obligation 12,010 — (12 ) 11,998 U.S. agency obligations 32,543 — (39 ) 32,504 Total short-term marketable securities 96,521 — (111 ) 96,410 Marketable securities, noncurrent: Corporate notes and bonds 4,453 — (17 ) 4,436 Government obligations 1,997 — (4 ) 1,993 Total marketable securities, noncurrent 6,450 — (21 ) 6,429 Cash, cash equivalents, short-term marketable securities and marketable securities, noncurrent $ 112,841 $ — $ (132 ) $ 112,709 December 31, 2014 Description Cost Unrealized Gains Unrealized Losses Estimated Fair Value Cash $ 18,985 $ — $ — $ 18,985 Cash equivalents: Money market mutual funds 1,609 — — 1,609 Total cash and cash equivalents 20,594 — — 20,594 Short-term marketable securities: Commercial paper 2,499 — — 2,499 Corporate notes and bonds 53,643 — (35 ) 53,608 U.S. agency obligations 36,907 — (13 ) 36,894 Total short-term marketable securities 93,049 — (48 ) 93,001 Marketable securities, noncurrent: Corporate notes and bonds 3,501 — (4 ) 3,497 Government obligations 1,995 1 — 1,996 U.S. agency obligations 2,049 — — 2,049 Total marketable securities, noncurrent 7,545 1 (4 ) 7,542 Cash, cash equivalents, short-term marketable securities and marketable securities, noncurrent $ 121,188 $ 1 $ (52 ) $ 121,137 As of December 31, 2015 and 2014 , we did not consider any of our investments to be other-than-temporarily impaired. As of December 31, 2015 , the following table summarizes the estimated fair value of our investments in marketable securities, all of which are considered available-for-sale, classified by the contractual maturity date (in thousands): Due within 1 year $ 96,410 Due within 1 year through 3 years 6,429 Total marketable securities $ 102,839 See also Note 7. |
Property and Equipment, net
Property and Equipment, net | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, net | Property and Equipment, net The following table sets forth the components of property and equipment (in thousands): December 31, 2015 2014 Computers, equipment and software $ 37,249 $ 33,706 Leasehold improvements 5,546 5,214 Furniture and fixtures 2,630 2,559 Construction in progress 3,666 1,055 49,091 42,534 Less accumulated depreciation and amortization (36,344 ) (29,548 ) $ 12,747 $ 12,986 Depreciation expense related to property and equipment was as follows (in thousands): Year Ended December 31, 2015 2014 2013 $7,800 $9,351 $9,180 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets, net | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets, net | Goodwill and Other Intangible Assets, net The roll-forward of activity related to goodwill was as follows (in thousands): Balance at December 31, 2012 $ 23,435 Acquisition of Clara 3,161 Acquisition of StreamOnce 3,157 Balance at December 31, 2013, 2014 and 2015 $ 29,753 The following table presents our intangible assets and their related useful lives (dollars in thousands): Useful December 31, Life 2015 2014 Acquired technology 5-7 years $ 20,441 $ 20,441 Accumulated amortization (16,103 ) (12,049 ) 4,338 8,392 Perpetual software licenses 2 years 2,430 2,430 Accumulated amortization (2,430 ) (2,430 ) — — Covenant not to compete 1-4 years 2,028 2,028 Accumulated amortization (1,976 ) (1,634 ) 52 394 Other 2-7 years 1,939 1,939 Accumulated amortization (1,783 ) (1,277 ) 156 662 Total intangible assets, net $ 4,546 $ 9,448 Amortization expense related to intangible assets was as follows (in thousands): Year Ended December 31, 2015 2014 2013 $4,902 $4,862 $4,990 Estimated future amortization expense as of December 31, 2015 , is as follows (in thousands): 2016 $ 2,579 2017 1,587 2018 380 $ 4,546 |
Fair Value Measurements of Asse
Fair Value Measurements of Assets and Liabilities | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements of Assets and Liabilities | Fair Value Measurements of Assets and Liabilities Factors used in determining the fair value of financial assets and liabilities are summarized into three broad categories: • Level 1 – quoted prices in active markets for identical securities as of the reporting date; • Level 2 – other significant directly or indirectly observable inputs, including quoted prices for similar securities, interest rates, prepayment speeds and credit risk; and • Level 3 – significant inputs that are generally less observable than objective sources, including our own assumptions in determining fair value. The factors or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following table presents our financial assets that were measured at fair value on a recurring basis (in thousands): December 31, 2015 Level 1 Level 2 Level 3 Total Assets: Cash equivalents Money market mutual funds $ 246 $ — $ — $ 246 Marketable securities Commercial paper — 7,485 — 7,485 Corporate notes and bonds — 48,859 — 48,859 Government obligations — 13,991 — 13,991 U.S. government and agency — 32,504 — 32,504 — 102,839 — 102,839 Total $ 246 $ 102,839 $ — $ 103,085 December 31, 2014 Level 1 Level 2 Level 3 Total Assets: Cash equivalents Money market mutual funds $ 1,609 $ — $ — $ 1,609 Marketable securities Commercial paper — 2,499 — 2,499 Corporate notes and bonds — 57,105 — 57,105 Government obligations — 1,996 — 1,996 U.S. government and agency — 38,943 — 38,943 — 100,543 — 100,543 Total $ 1,609 $ 100,543 $ — $ 102,152 We did not have any financial liabilities measured at fair value on a recurring basis at December 31, 2015 or 2014 . We classify our marketable securities as available-for-sale and, accordingly, record them at fair value based on quoted market prices for similar securities. Unrealized holding gains and losses are excluded from earnings and are reported as a separate component of stockholders’ equity until realized. See the Consolidated Statements of Comprehensive Loss. We recognize or disclose the fair value of certain assets, such as non-financial assets, primarily long-lived assets, goodwill, intangible assets and certain other assets in connection with impairment evaluations. All of our non-recurring valuations use significant unobservable inputs and therefore fall under Level 3 of the fair value hierarchy. During 2015 , 2014 and 2013 we did not record any other-than-temporary impairments on those financial assets required to be measured at fair value on a non-recurring basis. The carrying value of our term loan approximates its fair value and falls under Level 2 of the fair value hierarchy, as the interest rate is variable and based on current market rates. There were no changes to our valuation techniques during 2015 . |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Credit Facility with Silicon Valley Bank We have a secured revolving loan facility and term loan facility of up to $30.0 million with Silicon Valley Bank (“SVB”), which, as amended in March 2015, expires May 23, 2017 (the “Loan Agreement”). Revolving loans may be converted into term loans under the facility, with all outstanding term loans reducing the availability under the revolving loan facility. Interest is accrued, at our option, at (i) an adjusted LIBOR rate, plus a margin of 2.0% or 2.25% , or (ii) the prime rate, plus a margin of 0.25% or 0.50% , in each case with such margin determined based on our adjusted quick ratio. Repayment on the term loan began July 1, 2012, and is payable in 16 quarterly installments. Each of the installment payments is $0.6 million , plus accrued interest. The adjusted quick ratio is a ratio of our unrestricted cash and cash equivalents to our current liabilities minus the current portion of our deferred revenue. Interest on the revolving loans and the term loans is due and payable in arrears at the end of an interest period of 30 , 60 or 90 days, as selected by us, for loans that bear interest based on the adjusted LIBOR rate, or quarterly for loans that bear interest based on the prime rate. Obligations under the loan facility are secured by a security interest on substantially all of our assets, excluding intellectual property. The Loan Agreement contains affirmative and negative covenants subject to certain exceptions. We must also comply with financial covenants under the Loan Agreement, including: (i) a minimum quick ratio; (ii) for the period from the closing through December 31, 2013, a minimum adjusted EBITDA; and (iii) beginning with the fiscal quarter ending March 31, 2014, a minimum fixed charge coverage ratio and a maximum leverage ratio. On February 18, 2014, we entered into a Second Loan Modification Agreement with SVB to modify the minimum adjusted EBITDA financial covenant for periods occurring after December 31, 2013. Additionally, the Second Loan Modification Agreement removed the fixed charge coverage ratio and maximum leverage ratio financial covenants, which were set to begin in periods occurring after December 31, 2013. On March 31, 2015, we entered into a Third Loan Modification Agreement with SVB to modify the adjusted EBITDA financial covenant for periods ending after December 31, 2014 and to amend the expiration date of the Loan Agreement. The Loan Agreement also restricts our ability to pay dividends by requiring the written consent of SVB to pay cash dividends to our stockholders. The Loan Agreement contains events of default including, among others, payment defaults, breaches of covenants, bankruptcy and insolvency events, cross defaults with certain material indebtedness, judgment defaults, and breaches of representations and warranties. Upon an event of default, all or a portion of the outstanding obligations may be declared to be immediately due and payable. During the existence of an event of default, interest on the obligations under the Loan Agreement could be increased by 5.0% per annum. At December 31, 2015, we had $ 0.7 million of outstanding letters of credit, no revolving loans outstanding under the Loan Agreement, $ 3.6 million of term loans outstanding at an interest rate of 2.48% , $30.0 million was available under the revolving loan facility and we were in compliance with all covenants. Summary Our long-term debt is summarized as follows (in thousands): December 31, 2015 2014 Silicon Valley Bank loans $ 3,600 $ 6,000 Less current portion (2,400 ) (2,400 ) $ 1,200 $ 3,600 Annual maturities of long-term debt as of December 31, 2015 were as follows (in thousands): 2016 $ 2,400 2017 1,200 $ 3,600 |
Stock-Based Awards and Stock-Ba
Stock-Based Awards and Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Awards and Stock-Based Compensation | Stock-Based Awards and Stock-Based Compensation Stock Option Plans 2011 Plan Our 2011 Equity Incentive Plan (the “2011 Plan”) provides our board of directors with broad discretion in creating employee equity incentives. Unless otherwise provided in the 2011 Plan document, the compensation committee, in its discretion, determines the stock option exercise prices, which may not be less than the fair value of our common stock at the date of grant, vesting periods, and expiration periods, which are a maximum of ten years from the date of grant. The 2011 Plan replaced two previous plans. Awards that were outstanding upon termination of the previous plans remained outstanding pursuant to their original terms and awards subsequently terminated return to the pool of shares available for grant under the 2011 Plan. The 2011 Plan allows for grants of incentive stock options, nonstatutory stock options, stock appreciation rights, restricted stock, restricted stock units ("RSUs"), performance shares and performance stock units ("PSUs"). Generally, all stock option grants are issued under an option agreement that provides, among other things, that the option grant vests over a four -year period while RSU and PSU agreements vest between one and four years. The number of shares available for issuance under the 2011 Plan increases on the first business day of each year in an amount equal to the lesser of (i) 5,000,000 shares; (ii) 3.9% of the outstanding shares on the last day of the immediately preceding year; or (iii) such number of shares as determined by the board of directors. 2015 Employee Stock Purchase Plan In May 2015, our stockholders approved the adoption of the ESPP, pursuant to which 2,000,000 shares of common stock have been reserved for issuance to participating employees. Eligible employees may elect to contribute up to 15% of their base salary during each pay period, up to $25,000 in a calendar year, for the purchase of up to 3,000 shares during a purchase period. The ESPP provides for separate overlapping 12 month offering periods starting every six months. Each offering has two purchase dates occurring every six months on designated dates. The offerings under the ESPP commence on May 15 and November 15 of each calendar year, beginning in May 2016. Any eligible employee may participate in only one offering period at a time and may purchase shares only through payroll deductions permitted under the ESPP. At the end of each six-month period, the purchase price is determined and the accumulated funds are used to automatically purchase shares of common stock. The purchase price per shares is equal to 85 percent of the lower of the fair market value of the common stock on the first day of the offering period or the date of purchase. The first purchase period of the ESPP will be in May 2016 and, therefore, no shares were issued pursuant to the ESPP in the year ended December 31, 2015. Stock Option Activity Certain information regarding stock option activity and stock options outstanding as of December 31, 2015 was as follows: Shares Outstanding Weighted Weighted Aggregate Balances, December 31, 2014 3,389,132 7,329,575 $ 5.97 Additional shares reserved 2,870,538 Stock options granted (2,440,695 ) 2,440,695 5.37 Forfeited – stock options 1,703,380 (1,703,380 ) 9.73 Exercised – stock options exercised (1,089,933 ) 1.22 Granted – RSUs (3,914,358 ) Forfeited – RSUs 1,574,637 Forfeited – PSUs 250,000 Vested RSUs adjusted for taxes 209,532 Balances, December 31, 2015 3,642,166 6,976,957 $ 5.59 5.55 $ 6,878 Exercisable at December 31, 2015 4,633,363 $ 5.48 3.65 $ 6,876 Vested and expected to vest 6,744,707 $ 5.58 5.39 $ 6,878 On January 1, 2016, an additional 2,979,417 shares were reserved for future awards under the 2011 Plan. Restricted Stock Activity Restricted stock results from the grant of PSUs and RSUs. The shares of restricted stock vest over the period specified in the related PSU and RSU agreements. Restricted stock activity was as follows: Number Weighted average Balances, December 31, 2014 4,043,912 $ 11.21 Granted RSUs 3,914,358 5.39 Vested RSUs (1,635,341 ) 10.82 Forfeited RSUs (1,574,637 ) 9.72 Forfeited PSUs (250,000 ) 8.12 Balances, December 31, 2015 4,498,292 6.98 All shares to be issued upon the exercise of stock options and the vesting of RSUs will come from newly issued shares. Stock-Based Compensation The fair value of the stock-based options granted to employees was estimated using the Black-Scholes-Merton option-pricing model with the following weighted average assumptions: Year Ended December 31, 2015 2014 2013 Expected term (in years) 6.0 6.0 5.9 Risk-free interest rate 1.75 % 1.83 % 1.09 % Volatility 50.62 % 50.43 % 52.17 % Dividend yield — % — % — % The following weighted average assumptions were used to estimate the fair value of ESPP shares in the periods presented: Year Ended December 31, 2015 2014 2013 Expected term (in years) 0.7 0 0 Risk-free interest rate 0.41 % — % — % Volatility 36.20 % — % — % Dividend yield — % — % — % The expected terms of options granted were calculated using the simplified method, which defines the expected term as the average of the contractual term and the vesting period. We elected to use the simplified method due to a lack of term length data since we completed our initial public offering in December 2011 and our stock options meet the criteria of “plain-vanilla.” Estimated volatility incorporates a calculated volatility derived from the historical closing prices of common shares of our stock as well as similar entities whose share prices are publicly available for the expected term of the option. The risk-free interest rate is based on the U.S. Treasury constant maturities in effect at the time of grant for the expected term of the option. We use historical data to estimate the number of future stock option forfeitures. The expected term for the ESPP is the weighted average length of the purchase periods. We utilize our historical volatility over the estimated expected term as the expected volatility. Certain information regarding our stock-based compensation was as follows (in thousands, except per share data): Year Ended December 31, 2015 2014 2013 Weighted average per share grant date fair value of stock options granted $ 2.65 $ 3.68 $ 7.57 Weighted average per share grant date fair value of ESPP purchase rights $ 1.32 $ — $ — Total intrinsic value of stock options exercised $ 4,444 $ 12,573 $ 36,367 Total fair value of restricted stock and stock options vested $ 19,320 $ 38,071 $ 21,045 Stock-based compensation was included in our Consolidated Statements of Operations as follows (in thousands): Year Ended December 31, 2015 2014 2013 Cost of revenues $ 3,029 $ 4,276 $ 3,450 Research and development 7,078 10,642 14,133 Sales and marketing 3,775 10,852 10,614 General and administrative 6,423 7,138 6,557 Total $ 20,305 $ 32,908 $ 34,754 Stock-based compensation related to non-employee awards (included in total stock-based compensation above) $ — $ 41 $ 488 Stock-based compensation capitalized related to the development of internal-use software $ — $ 1,370 $ — There were no grants of stock-based awards to non-employees in 2015 , 2014 or 2013 . Vesting of shares granted to non-employees was contingent on the individual continuing to provide service. Expense for these awards was calculated using the Black-Scholes-Merton option-pricing model. These awards are equity classified and were marked to market each period with the change in fair value recorded in earnings. At December 31, 2015 , there were no options exercisable for shares of our common stock by non-employees. As of December 31, 2015 , we had unrecognized compensation related to all stock-based awards of $32.9 million , which will be recognized over the weighted average remaining vesting period of 2.9 years . |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income Tax Provision (Benefit) Pretax income (loss) is as follows (in thousands): Year Ended December 31, 2015 2014 2013 Domestic $ (35,009 ) $ (55,660 ) $ (76,714 ) Foreign 1,407 645 333 Total $ (33,602 ) $ (55,015 ) $ (76,381 ) The provision (benefit) for federal, state and foreign income taxes was as follows (in thousands): Year Ended December 31, 2015 2014 2013 Current tax provision (benefit): Federal $ — $ — $ — State 157 50 79 Foreign 965 1,015 142 Total current tax provision (benefit) 1,122 1,065 221 Deferred tax provision (benefit): Federal 103 50 (1,025 ) State 26 23 (206 ) Foreign — — — Total deferred tax expense 129 73 (1,231 ) Provision for (benefit from) income taxes $ 1,251 $ 1,138 $ (1,010 ) The 2015 provision for income taxes includes $0.4 million charge related to foreign withholding taxes. The 2014 provision for income taxes includes a $0.5 million charge related to our Israeli tax examination. The 2013 benefit from income taxes includes a $1.4 million tax benefit from the release of valuation allowance on our deferred tax assets related to an acquisition. In connection with the acquisition of StreamOnce, a deferred tax liability was established for the book-tax basis differences related to the non-goodwill intangibles. The net deferred tax liability created an additional source of income to offset our deferred tax assets. The impact on our deferred tax assets and liabilities caused by the acquisition is recorded outside of acquisition accounting. The reconciliation of the statutory federal income tax rate to the effective tax rate is as follows: Year Ended December 31, 2015 2014 2013 Federal statutory tax rate (34.0 )% (34.0 )% (34.0 )% State tax (11.1 ) (6.9 ) (10.5 ) Change in valuation allowance 45.9 40.0 44.0 Permanent differences 5.4 5.3 4.6 Tax credits (6.2 ) (3.8 ) (4.4 ) Foreign rate impact (0.6 ) (0.2 ) (0.1 ) Foreign tax withheld at source 1.5 — — Other 2.8 1.7 (0.9 ) 3.7 % 2.1 % (1.3 )% Deferred Income Taxes Deferred income taxes reflect the net tax effects of (i) temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes, and (ii) operating losses and tax credit carryforwards. The tax effects of significant items comprising our deferred tax assets and liabilities are as follows (in thousands): December 31, 2015 2014 Deferred tax assets: Net operating loss (“NOL”) carryforwards $ 74,486 $ 69,176 Accrued expenses, reserves and allowances 940 1,220 Deferred revenue 16,545 16,429 Tax credit carryforwards 12,079 9,580 Deferred rent 320 363 Depreciation 820 — Amortizable intangibles 203 — Other 16,333 13,840 Total deferred tax assets 121,726 110,608 Deferred tax liabilities: Depreciation — (1,212 ) Amortizable intangibles — (1,678 ) Indefinite lived intangibles (367 ) (238 ) Other — (177 ) Total deferred tax liabilities (367 ) (3,305 ) Valuation allowance (121,726 ) (107,540 ) Net deferred taxes $ (367 ) $ (237 ) The tax benefit of net operating losses, temporary differences and credit carryforwards is recorded as an asset to the extent that we assess that realization is more likely than not. Realization of the future tax benefits is dependent on our ability to generate sufficient taxable income within the carryforward period. Due to our history of operating losses, we currently believe that the recognition of the deferred tax assets arising from the above mentioned future tax benefits is not more likely than not to be realized and, accordingly, have provided a full valuation allowance. Certain other information regarding our deferred income taxes was as follows: (In thousands) Year Ended December 31, 2015 2014 2013 Increase in valuation allowance $ 14,186 $ 21,463 $ 32,692 (In millions) December 31, 2015 2014 Federal and state NOL carryforwards $ 250.2 $ 238.8 Tax credit carryforwards 12.9 10.3 These carryforwards expire between 2016 and 2035 . Approximately $74.7 million of our NOL carryforwards at December 31, 2015 were generated as a result of excess tax deductions related to exercises of stock options and disqualifying dispositions. If utilized, this portion of our carryforwards, as tax effected, will be accounted for as a direct increase to contributed capital rather than as a reduction of that year’s provision for income taxes. NOL carryforwards created by excess tax benefits from the exercise of stock options are not recorded as deferred tax assets. Accordingly, the deferred tax assets related to the net operating losses were reduced by $31.6 million and $31.1 million at December 31, 2015 and 2014 , respectively. Unrecognized Tax Benefits We recognize the effect of income tax positions only if those positions are more likely than not of being sustained. We recognize penalties and interest related to unrecognized tax benefits as a component of income tax expense. As of December 31, 2015 and 2014 , the accrued penalties or interest recorded in the consolidated financial statements were insignificant. Only $0.4 million of the unrecognized tax benefits would currently have an impact on the effective tax rate if recognized. The following is a reconciliation of our unrecognized tax benefits (in thousands): Year Ended December 31, 2015 2014 2013 Beginning balance $ 567 $ 409 $ 737 Additions based on tax positions related to the current year 185 240 205 Reductions based on tax positions related to the current year (74 ) — — Additions based on prior year tax positions — 36 151 Reductions for tax positions in prior years (223 ) (118 ) (212 ) Settlements — — (472 ) Ending balance $ 455 $ 567 $ 409 We are subject to income taxes in U.S. federal and various state, local and foreign jurisdictions. Generally, we are no longer subject to U.S. federal, state and local tax examinations for tax years ended before December 31, 2011. However, to the extent allowed by law, the tax authorities may have the right to examine prior periods where NOLs or tax credits were generated and carried forward, and make adjustments up to the amount of the NOL or credit carryforward. At December 31, 2015 , we were not under exam in any jurisdictions. There could be a significant impact to our uncertain tax positions over the next twelve months depending on the outcome of any audit. We do not anticipate that unrecognized tax benefits will decrease relating to expiring statutes of limitation by the end of 2016. Unrepatriated Foreign Earnings We did not repatriate any earnings of our foreign subsidiaries in 2015, 2014 or 2013. We plan to indefinitely reinvest the earnings of all of our foreign subsidiaries overseas. Should we plan to repatriate any foreign earnings in the future, we will be required to establish an income tax liability and recognize additional income tax expense related to such earnings. As of December 31, 2015 , we had $2.5 million of unrepatriated foreign earnings. |
Net Loss Per Share
Net Loss Per Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | Net Loss Per Share The following table sets forth the computation of basic and diluted net loss per share (in thousands, except per share data): Year Ended December 31, 2015 2014 2013 Numerator: Net loss $ (34,853 ) $ (56,153 ) $ (75,371 ) Denominator: Weighted-average common shares outstanding 75,365 71,251 67,858 Less: Weighted-average unvested common shares subject to repurchase or forfeiture 148 500 477 Weighted-average shares used to compute net loss per share, basic and diluted 75,217 70,751 67,381 Net loss per share, basic and diluted $ (0.46 ) $ (0.79 ) $ (1.12 ) Potentially dilutive securities that were not included in the diluted per share calculations because they would be anti-dilutive were as follows: Year Ended December 31, 2015 2014 2013 Shares subject to outstanding common stock options 6,976,957 7,329,575 9,480,138 Unvested restricted common stock 4,498,292 4,043,912 4,796,112 Common stock subject to repurchase — 313,412 635,928 Purchase rights from employee stock purchase plans 8,268 — — 11,483,517 11,686,899 14,912,178 |
Statements of Cash Flows
Statements of Cash Flows | 12 Months Ended |
Dec. 31, 2015 | |
Supplemental Cash Flow Elements [Abstract] | |
Statements of Cash Flows | Statements of Cash Flows The summary of supplemental cash flows information is as follows (in thousands): Year Ended December 31, 2015 2014 2013 Supplemental Cash Flow Information Cash paid for interest $ 123 $ 181 $ 246 Cash paid for income taxes 634 235 258 Supplemental Non-Cash Information Construction costs funded by landlord tenant improvement allowance $ 741 $ — $ — Common stock issued in connection with StreamOnce acquisition — — 852 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Matters From time to time, we may become involved in routine litigation arising in the ordinary course of business. While the results of such litigation cannot be predicted with certainty, we believe that the final outcome of such matters will not have a material adverse effect on our financial position, results of operations or cash flows. Operating Leases Operating lease payments primarily relate to equipment leases and noncancelable operating leases associated with the following spaces that we currently utilize: Location Lease expiration Palo Alto, California headquarters March 2020 Portland, Oregon office September 2018 San Francisco, California office October 2022 Boulder, Colorado office March 2016 United Kingdom office May 2018 Israel office February 2021 Arizona data center December 2016 New Jersey data center September 2016 Netherlands data center October 2016 London data center March 2017 In addition to the facilities listed above, we also occupy a number of smaller sales and service offices around the world. In addition to our currently occupied space, there are other facility leases that are no longer being utilized by us that have been fully sublet. Rent expense was as follows (in thousands): Year Ended December 31, 2015 2014 2013 Gross rent expense $ 7,677 $ 7,023 $ 5,570 Sublease income 254 45 45 Net rent expense $ 7,423 $ 6,978 $ 5,525 Minimum rentals to be received in the future under subleases as of December 31, 2015 were $0.7 million . The approximate future minimum lease payments required under operating leases (including for sublet facilities) were as follows (in thousands): Year ending December 31, 2016 $ 7,447 2017 5,057 2018 4,071 2019 1,658 2020 1,363 Thereafter 1,369 $ 20,965 Contractual Commitments We have commitments under non-cancelable purchase orders or vendor agreements of $3.7 million at December 31, 2015 . The non-cancelable purchase order and vendor agreement commitments will be filled at various times through the second quarter of 2017. |
Geographic Information
Geographic Information | 12 Months Ended |
Dec. 31, 2015 | |
Text Block [Abstract] | |
Geographic Information | Geographic Information Sales to countries which totaled 10% or more of our total revenues, determined based on the location of the end customer, were as follows (in thousands): Year Ended December 31, 2015 2014 2013 U.S. $ 143,819 $ 135,876 $ 112,693 Rest of world 51,974 42,817 33,070 $ 195,793 $ 178,693 $ 145,763 Our long-lived net assets are classified by major geographic areas as follows: Year Ended December 31, 2015 2014 U.S. $ 9,530 $ 11,385 Israel 2,199 317 Netherlands 634 731 United Kingdom 384 553 $ 12,747 $ 12,986 |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plan | Employee Benefit Plan We offer a 401(k) employee savings plan to our U.S.-based employees. We make a nondiscretionary matching contribution equal to 100% of the first 3% and 50% of the next 2% of compensation contributed by employees. We made matching contributions as follows (in thousands): Year Ended December 31, 2015 2014 2013 401(k) matching contributions $ 2,485 $ 2,413 $ 2,196 |
Related-Party Transactions
Related-Party Transactions | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions | Related-Party Transactions Certain members of our board of directors also serve on the board of directors of certain of our customers and in some cases are also investors of these customers. Certain information regarding these customers was as follows (in thousands): December 31, 2015 2014 Accounts receivable $ 230 $ 46 Current deferred revenue 461 548 Non-current deferred revenue 56 75 Year Ended December 31, 2015 2014 2013 Revenues $ 1,046 $ 929 $ 1,820 |
Disgorgement Funds Received
Disgorgement Funds Received | 12 Months Ended |
Dec. 31, 2015 | |
Extraordinary and Unusual Items [Abstract] | |
Disgorgement Funds Received | Disgorgement Funds Received On January 8, 2015, we received $1.1 million from a stockholder in settlement of a claim under Section 16(b) of the Exchange Act of 1934, as amended. We recognized the amount when realized in other, net on our Consolidated Statements of Operations. The amount is reflected as a non-recurring gain in our financing cash flows on our Consolidated Statements of Cash Flows. |
New Accounting Pronouncements
New Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements Accounting Pronouncements Not Yet Adopted In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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 GAAP when it becomes effective. The new standard, as amended, is effective for us on January 1, 2018 with early application effective January 1, 2017 permitted. The standard permits the use of either the retrospective or cumulative effect transition method. We are evaluating the effect that ASU 2014-09 will have on our consolidated financial statements and related disclosures. We have not yet selected a transition method nor have we determined the effect of the standard on our ongoing financial reporting. In April 2015, the FASB issued ASU No. 2015-05, “Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40).” ASU 2015-05 provides guidance regarding the accounting for a customer's fees paid in a cloud computing arrangement; specifically about whether a cloud computing arrangement includes a software license, and, if so, how to account for the software license. ASU 2015-05 is effective for public companies' annual periods, including interim periods, beginning after December 15, 2015. Early adoption is permitted. We do not expect the adoption of ASU 2015-05 to have a material effect on our financial position, results of operations or cash flows. In November 2015, the FASB issued ASU No. 2015-17, “Balance Sheet Classification of Deferred Taxes (Topic 740).” ASU 2015-17 simplifies the accounting for deferred taxes in a classified statement of financial position, requiring all deferred taxes to be presented as non-current. ASU 2015-17 is effective for public companies' annual periods, including interim periods, beginning after December 15, 2016. Early adoption is permitted. We do not expect the adoption of ASU 2015-17 to have a material effect on our financial position, results of operations or cash flows. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data | Selected Quarterly Financial Data (Unaudited) For the Quarter Ended (Dollars in thousands, except per share amounts) March 31, June 30, Sept. 30, Dec. 31, Total revenues $ 47,126 $ 48,611 $ 49,905 $ 50,151 Gross profit 29,900 30,460 31,740 31,499 Net loss (8,165 ) (9,310 ) (8,829 ) (8,549 ) Net loss per share, basic and diluted (0.11 ) (0.12 ) (0.12 ) (0.11 ) For the Quarter Ended (Dollars in thousands, except per share amounts) March 31, June 30, Sept. 30, Dec. 31, Total revenues $ 41,029 $ 43,375 $ 46,600 $ 47,689 Gross profit 25,574 26,735 29,365 30,346 Net loss (17,324 ) (14,630 ) (12,109 ) (12,090 ) Net loss per share, basic and diluted (0.25 ) (0.21 ) (0.17 ) (0.17 ) Net loss per share of common stock for the four quarters of each year in the table above may not sum to the total for each year because of the different number of weighted-average shares outstanding in each respective period. |
Summary of Significant Accoun27
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”), requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and the related disclosure of contingent assets and liabilities in the financial statements and the accompanying notes. Significant estimates include the estimates relating to revenue recognition, the useful lives of property and equipment, stock-based compensation, assumptions used in testing for impairment of goodwill, other long-lived assets, capitalized software development costs, and the recoverability of deferred income tax assets and liabilities. Actual results could differ from those estimates, and such differences may be material to the consolidated financial statements. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of Jive Software, Inc. and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. |
Segments | Segments An operating segment is defined as a component of an enterprise that meets the following criteria: • engages in business activities from which it may earn revenues and incur expenses; • operating results are regularly reviewed by the enterprise’s chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance; and • discrete financial information is available. We define the term “chief operating decision maker” to be our Chief Executive Officer. Our Chief Executive Officer reviews financial information presented on a consolidated basis, accompanied by information about revenue by product line and geographic region for purposes of allocating resources and evaluating financial performance. We have 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, we have determined that we operate in a single reporting segment, software sales and service. |
Revenue Recognition | Revenue Recognition We generate revenues in the form of product fees and related professional service fees. Product fees include subscription fees, perpetual license fees, associated support and maintenance fees and hosting fees. Professional services primarily consist of fees for strategic consulting, configuration, training, consultation and implementation services, which are not essential to the functionality of the software. For statement of operations classification purposes, we allocate revenues to professional services based on the hourly rate billed for time and materials arrangements and based on the total fixed fee for fixed fee professional services. We recognize revenue when all of the following conditions are met: • there is persuasive evidence of an arrangement; • the product or services have been delivered to the customer; • the amount of fees to be paid by the customer is fixed or determinable; and • the collection of the related fees is reasonably assured. Signed agreements are used as evidence of an arrangement. If a contract signed by the customer does not exist, we have historically used a purchase order as evidence of an arrangement. In cases where both a signed contract and a purchase order exist, we consider the signed contract to be the final persuasive evidence of an arrangement. Software and corresponding license keys are delivered to customers electronically. Electronic delivery occurs when we provide the customer with access to the software. We assess whether a fee is fixed or determinable at the outset of the arrangement, primarily based on the payment terms associated with the transaction. We do not generally offer extended payment terms. Typical payment terms are due between 30 and 60 days from delivery of solutions or services. For professional services that are billable under a time and materials based arrangement, these fees are neither fixed nor determinable until the work is performed and the fee becomes billable to the customer. We assess collectability of the customer receivable based on a number of factors such as collection history with the customer and creditworthiness of the customer. If we determine that collectability is not reasonably assured, revenue is deferred until collectability becomes reasonably assured, generally upon receipt of cash. We offer subscriptions of our platform to customers most frequently on a term basis with terms typically ranging from 12 to 36 months . While term-based licenses make up the majority of our total revenues, we occasionally license our solutions to customers on a perpetual basis with on-going support and maintenance services. We recognize license revenue in accordance with software industry specific guidance. Revenues related to term license fees are recognized ratably over the contract term beginning on the date the customer has access to the software license key and continuing through the end of the contract term. For term-based licenses, we do not charge separately for standard support and maintenance, and, therefore, inherent in the license fees are fees for support and maintenance services for the duration of the license term. As fees for support and maintenance are always bundled with the license over the entire term of the contract, we do not have vendor-specific objective evidence (“VSOE”) of fair value for support and maintenance. Revenues generated from perpetual license sales also include support and maintenance services for an initial stated term, both the perpetual license and support and maintenance are recognized ratably over the initial stated term. We do not have VSOE of fair value for support and maintenance on perpetual licenses as we have not had sufficient consistently priced standalone sales of support and maintenance, nor have we offered substantive renewal rates for support and maintenance. Additionally, customers who have purchased perpetual licenses to the base platform have historically also purchased term-based subscriptions to certain of our modules. We do not have VSOE of fair value for either the support and maintenance on the perpetual license or the modules and, therefore, revenue is recognized ratably over the longer of the initial maintenance term for the perpetual license or the term for the subscription elements. License arrangements may also include professional services, such as strategic consulting installation, upgrades and training services, which are typically delivered early in the contract term. This combination of products and services represents a multiple-element arrangement for revenue recognition purposes. We have determined that we do not have VSOE of fair value for each element of a multiple-element sales arrangement and, accordingly, we account for fees received under that multiple-element arrangement as a single unit of accounting and recognize the fees for the entire arrangement ratably, commencing on delivery of the software, over the longer of the term of the support and maintenance or the period over which professional services are delivered. Support and maintenance is always the last undelivered element in the arrangement and, therefore, we recognize the fixed portion of the fees ratably over the support and maintenance term. For contracts with multiple elements, we recognize the license, support and maintenance, and fixed fee professional service revenue ratably over the term of the arrangement beginning upon delivery of the software. We believe this method most closely reflects the economics of the transaction as we deliver access to the software and we begin providing support and maintenance services as of the date the software is delivered. Professional services are offered on both fixed fee and time and materials hourly billing arrangements. For time and materials-based professional services that are part of a multiple-element arrangement where the fees for the professional services are not fixed or determinable upon delivery of the software, revenue is recognized ratably over the contract term as the related fees become fixed. These fees are not considered fixed at the outset of the arrangement and become fixed as the related work is performed and the fees are earned and billed. These services are typically provided early in the contract term with completion typically occurring in the first six months. As these fees become fixed, they are added to the total fee for the multiple-element arrangement and recognized ratably with all other arrangement fees over the entire contract term. When billed, a cumulative revenue catch-up is calculated as the revenue earned from the date the software was made available to the customer to the date services have been completed, with recognition continuing ratably to the end of the contract term. These amounts, when recognized in our Consolidated Statements of Operations, are classified as professional services revenues based on the hourly rates at which they are billed. If there are significant acceptance clauses associated with the license or services or uncertainty associated with our ability to perform the professional services, revenues are deferred until the acceptance is received or the uncertainty is resolved. We record amounts that have been invoiced, in accordance with the terms of the agreement, in accounts receivable and in deferred revenues or revenues, depending on whether the revenue recognition criteria have been met. Hosting revenues are derived from providing our software solutions in a hosted environment where the customer does not take possession of the software on their premises. With the exception of the Jive Cloud licensing model, customers have the option to elect to take possession of the software and install on their premises or sub-contract the hosting services through us. Such arrangements are considered software sales as the customer has the same rights to the software license regardless of their election to have us host on their behalf or install on their premises. As a result, the fees associated with license, support and hosted services are recognized as revenue ratably over the term of the arrangement. For Jive Cloud licensing arrangements, customers do not have the right to take possession of the software supporting the cloud-based application service at any time. We occasionally sell professional services separately and recognize revenues resulting from those as professional services are performed. If there is a significant uncertainty about the project completion or receipt of payment for the consulting services, revenues are deferred until the uncertainty is resolved. If acceptance provisions exist within a professional services arrangement, revenues will be deferred until the services are accepted, the acceptance period has expired or cash is received from the customer. |
Taxes Collected from Customers and Remitted to Governmental Authorities | Taxes Collected from Customers and Remitted to Governmental Authorities We account for tax assessed by a governmental authority that is directly imposed on a revenue-producing transaction (i.e., sales, use, value added) on a net (excluded from revenue) basis. |
Cash and Cash Equivalents | Cash and Cash Equivalents We consider all highly liquid investments with an original maturity of three months or less to be cash equivalents. Our cash balances with financial institutions may exceed the deposit insurance limits. Included in cash and cash equivalents were cash equivalents of $0.2 million and $1.6 million at December 31, 2015 and 2014 , respectively. Cash equivalents are stated at cost, which approximates market value. |
Marketable Securities | Marketable Securities We classify our marketable securities as available-for-sale and, accordingly, record them at fair value based on quoted market prices. Unrealized holding gains and losses are excluded from earnings and are reported as a separate component of stockholders’ equity until realized. See the Consolidated Statements of Comprehensive Loss. We periodically evaluate whether declines in fair values of our marketable securities below their cost are “other-than-temporary.” This evaluation consists of qualitative and quantitative factors regarding the severity and duration of the unrealized loss, as well as our ability and intent to hold the marketable securities until a forecasted recovery occurs. Dividend and interest income is recognized when earned. Realized gains and losses are included in earnings and are derived using the specific identification method for determining the cost of securities sold. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are carried at their original invoice amounts less the allowance for doubtful accounts and do not bear interest. Our policy is to maintain an allowance for estimated losses resulting from the inability or refusal of our customers to make required payments. In establishing the required allowance, management considers historical losses adjusted to take into account current market conditions and the customers’ financial condition, the amount of receivables in dispute, and the current receivables aging and current payment patterns. On a quarterly basis, we evaluate the collectability of our trade receivable balances based on a combination of factors. Past due balances over 90 days and over a specified amount are reviewed individually for collectability. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. If the financial conditions of our customers were to materially change or there were other circumstances that resulted in their inability or unwillingness to pay, the estimates of recoverability of receivables could materially change. |
Fair Value of Financial Assets and Liabilities | Fair Value of Financial Assets and Liabilities The carrying value of cash equivalents, accounts receivable, prepaid expenses and other current assets, accounts payable, accrued payroll and related liabilities and other accrued liabilities approximates their fair values due to the short-term nature of their maturities. The fair value of the long-term debt approximates its carrying value since the interest rate is variable and based on current market rates. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives as follows: • three years for computer equipment, hardware and software; • seven years for furniture, fixtures and equipment; and • the lesser of five years or the remaining term of the underlying lease for leasehold improvements. Ordinary maintenance and repairs are expensed as incurred. |
Research and Development | Research and Development We expense research and development costs, including costs to develop software products to be marketed to external users, before technological feasibility of such products is reached. We believe our software development process is essentially completed concurrent with the establishment of technological feasibility; accordingly, development costs are expensed as incurred. |
Software Development Costs and Internal-Use Software Development Costs | Software Development Costs and Internal-Use Software Development Costs Through the third quarter of 2014, we capitalized costs to develop internal-use software during the application development stage. These costs related to application development activities. In the third quarter of 2014, management developed a substantive plan to repurpose the in-process development into our existing software platform and new software products. As a result of this decision, the associated capitalized internal-use software costs became governed by the accounting standards related to development costs for software to be sold in the third quarter of 2014. As such, subsequent to July 2014, we no longer capitalize costs related to internal-use software and we account for our current capitalized costs as development costs for software to be sold. Software development costs incurred subsequent to establishing technological feasibility through the general release of the software products are capitalized. Technological feasibility is demonstrated by the completion of a detailed program design or working model, if no program design is completed. Historically, technological feasibility has occurred concurrently with the commercial release of our products and, as a result, we have not capitalized development costs for software to be sold. We do not anticipate capitalizing material software development costs in future periods. GAAP requires that annual amortization expense of the capitalized software development costs be the greater of the amounts computed using the ratio of gross revenue to a products’ total current and anticipated revenues or the straight-line method over the products’ remaining estimated economic life. The software development costs are being amortized on a straight-line basis over their estimated useful life and recorded as a component of cost of product revenues. We begin amortizing the associated capitalized costs upon each product’s or enhancement’s release. Through December 31, 2015 , we released products related to $5.1 million of the capitalized costs. We anticipate the remaining products related to the capitalized costs to be commercially released through the first half of 2017. We make ongoing evaluations of the recoverability of our capitalized software by comparing the amount capitalized to the estimated net realizable value. If such evaluations indicate that the unamortized software development costs exceed the net realizable value, we write off the amount by which the unamortized software development costs exceed net realizable value. |
Accounting for the Impairment of Long-Lived Assets | Accounting for the Impairment of Long-Lived Assets We evaluate the recoverability of our long-lived assets, which principally consist of property and equipment and acquired intangible assets with finite lives, whenever events or circumstances indicate that the carrying amount of these assets may not be recoverable. Recoverability of an asset is measured by comparing the carrying amount to the expected future undiscounted cash flows that the asset is expected to generate. If that review indicates that the carrying amount of the long-lived asset is not recoverable, an impairment loss is recorded for the amount by which the carrying amount of the asset exceeds its fair value. |
Goodwill | Goodwill Goodwill represents the excess of the purchase price over the estimated fair value of the net tangible and intangible assets of acquired entities. We perform a goodwill impairment test annually during the fourth quarter of our fiscal year and more frequently if an event or circumstance indicates that an impairment may have occurred. Such events or circumstances may include significant adverse changes in the general business climate, among other things. To test for impairment, we can choose to first make a qualitative assessment to determine whether it is more likely than not that goodwill is impaired before applying the two-step goodwill impairment test. If the conclusion is that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, we then perform a two-step goodwill impairment test. During 2015 , 2014 and 2013 , we elected to forgo the qualitative assessment, and proceeded to the first step of the test for goodwill impairment. Under the first step, the fair value of the reporting unit is compared with its carrying value, and, if an indication of goodwill impairment exists for the reporting unit, we must perform step two of the impairment test (measurement). Under step two, an impairment loss is recognized for any excess of the carrying amount of the reporting unit’s goodwill as determined by allocating the fair value of the reporting unit in a manner similar to a purchase price allocation. The residual fair value after this allocation is the implied fair value of the reporting unit goodwill. If the fair value of the reporting unit exceeds its carrying value, step two does not need to be performed. If the carrying amount of goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to that excess. |
Intangible Assets | Intangible Assets Definite-lived intangible assets are amortized using the straight-line method over estimated useful lives and have no significant residual value. Definite-lived intangible assets are reviewed for impairment as discussed above under “Accounting for the Impairment of Long-Lived Assets.” |
Other Assets | Other Assets Other assets include deposits for facilities’ leases, capitalized software development costs and other miscellaneous long-term assets. |
Deferred Revenue | Deferred Revenue Deferred revenue consists of billings or payments received in advance of revenue recognition from our subscription license, perpetual license, hosting, professional services and support and maintenance revenues described above and are recognized as the revenue recognition criteria are met. We generally invoice our customers in annual installments. Accordingly, the deferred revenues balance does not represent the total contract value of annual or multi-year non-cancelable subscription agreements. Deferred revenue also includes certain deferred professional services fees, which are recognized as revenues ratably over the associated contract term. We defer the professional service fees in situations where the professional services and subscription or perpetual contracts are accounted for as a single unit of accounting. Deferred revenue that will be recognized during the succeeding 12 -month period is recorded as current deferred revenue, and the remaining portion is recorded as noncurrent. |
Concentration of Risk | Concentration of Risk Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash and trade receivables. Cash is placed on deposit in major financial institutions in the United States. Such deposits may be in excess of insured limits. Management believes that the financial institutions that hold our cash deposits are financially sound and, accordingly, minimal credit risk exists with respect to these balances. We sell our products to companies in diverse industries and do not require our customers to provide collateral to support accounts receivable. When necessary, credit reviews of significant customers are performed prior to extending credit. The determination of a customer’s ability to pay requires significant judgment, and failure to collect from a customer can adversely affect revenues, cash and net income. |
Stock-Based Compensation | Stock-Based Compensation We recognize compensation expense for all share-based payment awards, including stock options, restricted stock and purchases under the 2015 Employee Stock Purchase Plan (the "ESPP") based on the estimated fair value of the award on the grant date. We use the Black-Scholes-Merton valuation model to estimate the fair value of stock option awards. The fair value of the awards is recognized as expense, net of estimated forfeitures, on a straight-line basis over the requisite service period, which is generally the vesting period of the respective award. Stock-based compensation expense is recognized for performance-based restricted stock awards based on the probability of achieving certain performance criteria. We estimate the number of performance-based restricted stock awards ultimately expected to vest and recognize expense using the graded vesting attribution method over the requisite service period. The determination of the grant date fair value of options using an option-pricing model is affected by assumptions regarding a number of other complex and subjective variables, which include our expected stock price volatility over the expected term of the options, stock option exercise and cancellation behaviors, risk-free interest rates and expected dividends. |
Income Taxes | Income Taxes We record deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial statement carrying amounts and the tax basis of the assets and liabilities. Deferred tax assets are reduced by a valuation allowance when it is estimated to be more likely than not that a portion of the deferred tax assets will not be realized. We recognize the effect of income tax positions only if those positions are “more likely than not” of being sustained. Interest and penalties accrued on unrecognized tax benefits are recorded as tax expense within our consolidated financial statements. |
Warranties and Indemnification | Warranties and Indemnification We typically warrant that our products will perform in a manner consistent with the product specifications provided to the customer for 180 days for sales to companies in the United States and 365 days for sales to companies in Europe. Historically, we have not been required to make payments under these obligations, and we have not recorded any liability for these obligations in our consolidated financial statements. In our cloud and hosted agreements, we include service level commitments to customers relating to levels of uptime availability and permitting those customers to receive credits in the event that we fail to meet those levels. To date, we have not incurred any material costs as a result of such commitments and have not accrued any liabilities related to such obligations in the accompanying consolidated financial statements. Our contracts also include provisions indemnifying customers against liabilities if our products infringe a third-party’s intellectual property rights. We have not incurred any costs as a result of such indemnification obligations and have not accrued any liabilities related to such obligations in the accompanying consolidated financial statements. We have also agreed to indemnify our directors and executive officers for costs associated with any fees, expenses, judgments, fines and settlement amounts incurred by any of these persons in any action or proceeding to which any of those persons is, or is threatened to be, made a party by reason of the person’s service as a director or officer, arising out of that person’s services as our director or officer or that person’s services provided to any other company or enterprise at our request. We maintain director and officer insurance coverage that may enable us to recover a portion of any future amounts paid. |
Commissions | Commissions Commissions are recorded as a component of sales and marketing expenses and consist of the variable compensation paid to our direct sales force. Generally, sales commissions are earned and recorded as an expense at the time that a customer has entered into a binding purchase agreement. Commissions paid to sales personnel are recoverable only in the case that we cannot collect against any invoiced fee associated with a sales order. |
Leases | Leases We lease our facilities and certain equipment under operating leases. For facility leases that contain rent escalation or rent concession provisions, we record the total rent expense during the lease term on a straight-line basis over the term of the lease. For facility leases that contain tenant improvement allowances, we recognize a lease incentive liability and amortize these amounts on a straight-line basis over the term of the related leases as a reduction of rent expense. We record the difference between the rent paid and the straight-line rent expense as a deferred rent liability in other long-term liabilities in the accompanying Consolidated Balance Sheets. |
Advertising Costs | Advertising Costs Advertising costs are expensed as incurred as a component of sales and marketing expense and totaled $5.6 million , $7.7 million and $5.3 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. |
Legal Costs | Legal Costs We are party to legal proceedings arising in the normal course of business. Legal costs are expensed as incurred as a component of general and administrative expense. |
Net Loss Per Share | Net Loss Per Share Basic net loss per share is computed by dividing the net loss by the weighted-average number of shares of common stock outstanding during the period, less the weighted-average unvested common stock subject to repurchase or forfeiture. Diluted net loss per share is computed by giving effect to all potential shares of common stock, including preferred stock, stock options and warrants, to the extent dilutive. Since we were in a loss position for all periods presented, basic and diluted net loss per share was the same for each period presented as the inclusion of all potential common shares outstanding would have been anti-dilutive. |
Foreign Currency Translation | Foreign Currency Translation The functional currency of our foreign subsidiaries is the local currency. Adjustments resulting from translating foreign functional currency financial statements into U.S. dollars are recorded as a separate component of stockholders’ deficit. Income and expense accounts are translated into U.S. dollars at average rates of exchange prevailing during the periods presented. Foreign currency transaction gains and losses are included in net loss. All assets and liabilities denominated in a foreign currency are translated into U.S. dollars at the respective exchange rates in effect on the consolidated balance sheet dates. |
Accounting Pronouncements Not Yet Adopted | Accounting Pronouncements Not Yet Adopted In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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 GAAP when it becomes effective. The new standard, as amended, is effective for us on January 1, 2018 with early application effective January 1, 2017 permitted. The standard permits the use of either the retrospective or cumulative effect transition method. We are evaluating the effect that ASU 2014-09 will have on our consolidated financial statements and related disclosures. We have not yet selected a transition method nor have we determined the effect of the standard on our ongoing financial reporting. In April 2015, the FASB issued ASU No. 2015-05, “Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40).” ASU 2015-05 provides guidance regarding the accounting for a customer's fees paid in a cloud computing arrangement; specifically about whether a cloud computing arrangement includes a software license, and, if so, how to account for the software license. ASU 2015-05 is effective for public companies' annual periods, including interim periods, beginning after December 15, 2015. Early adoption is permitted. We do not expect the adoption of ASU 2015-05 to have a material effect on our financial position, results of operations or cash flows. In November 2015, the FASB issued ASU No. 2015-17, “Balance Sheet Classification of Deferred Taxes (Topic 740).” ASU 2015-17 simplifies the accounting for deferred taxes in a classified statement of financial position, requiring all deferred taxes to be presented as non-current. ASU 2015-17 is effective for public companies' annual periods, including interim periods, beginning after December 15, 2016. Early adoption is permitted. We do not expect the adoption of ASU 2015-17 to have a material effect on our financial position, results of operations or cash flows. |
Summary of Significant Accoun28
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Allowance for Doubtful Accounts | Activity related to our allowance for doubtful accounts was as follows (in thousands): Balance, December 31, 2012 $ 218 Charges to expense and deferred revenue 672 Write-offs (150 ) Balance, December 31, 2013 740 Charges to expense and deferred revenue 599 Write-offs (780 ) Balance, December 31, 2014 559 Charges to expense and deferred revenue 1,529 Write-offs (918 ) Balance, December 31, 2015 $ 1,170 |
Schedule of Capitalized and Amortization of Software Development Costs | Year Ended December 31, 2015 2014 2013 Software development costs capitalized during period $ — $ 5,924 $ 3,057 Amortization of capitalized software development costs 2,012 65 — |
Schedule of Capitalized Software Development Costs | Capitalized computer software development costs consist of the following at December 31, 2015 and 2014 (in thousands): 2015 2014 Capitalized software development costs $ 8,981 $ 8,981 Accumulated amortization (2,077 ) (65 ) $ 6,904 $ 8,916 |
Capitalized Software Development Costs Expected Amortization Expense | Of our capitalized software development costs that are currently completed and being amortized, we expect future amortization expense to be as follows (in thousands): 2016 $ 2,517 2017 571 $ 3,088 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Clara Ehf. [Member] | |
Business Acquisition [Line Items] | |
Allocation of Purchase Price | The allocation of the purchase price was as follows (dollars in thousands): Useful Life Current assets $ 81 Goodwill 3,161 Other intangible assets: Core technology 2,315 5 years Covenant not to compete 227 2 years Customer relationships 570 3 years Trade names 230 3 years 3,342 Current liabilities (96 ) Net assets acquired $ 6,488 |
StreamOnce, Inc. [Member] | |
Business Acquisition [Line Items] | |
Allocation of Purchase Price | The allocation of the purchase price was as follows (dollars in thousands): Cash paid $ 4,667 Value of common stock issued 852 Contingent consideration 576 Total transaction consideration: $ 6,095 Useful Life Current assets $ 108 Goodwill 3,157 Other intangible assets: Core technology 3,671 5 years Covenant not to compete 459 3 years Trade names 118 3 years 4,248 Current liabilities (67 ) Deferred tax liability (1,351 ) Net assets acquired $ 6,095 |
Cash, Cash Equivalents and Ma30
Cash, Cash Equivalents and Marketable Securities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents and Marketable Securities | Cash and cash equivalents and marketable securities consisted of the following as of December 31, 2015 and 2014 (in thousands): December 31, 2015 Description Cost Unrealized Gains Unrealized Losses Estimated Fair Value Cash $ 9,624 $ — $ — $ 9,624 Cash equivalents: Money market mutual funds 246 — — 246 Total cash and cash equivalents 9,870 — — 9,870 Short-term marketable securities: Commercial paper 7,485 — — 7,485 Corporate notes and bonds 44,483 — (60 ) 44,423 Government obligation 12,010 — (12 ) 11,998 U.S. agency obligations 32,543 — (39 ) 32,504 Total short-term marketable securities 96,521 — (111 ) 96,410 Marketable securities, noncurrent: Corporate notes and bonds 4,453 — (17 ) 4,436 Government obligations 1,997 — (4 ) 1,993 Total marketable securities, noncurrent 6,450 — (21 ) 6,429 Cash, cash equivalents, short-term marketable securities and marketable securities, noncurrent $ 112,841 $ — $ (132 ) $ 112,709 December 31, 2014 Description Cost Unrealized Gains Unrealized Losses Estimated Fair Value Cash $ 18,985 $ — $ — $ 18,985 Cash equivalents: Money market mutual funds 1,609 — — 1,609 Total cash and cash equivalents 20,594 — — 20,594 Short-term marketable securities: Commercial paper 2,499 — — 2,499 Corporate notes and bonds 53,643 — (35 ) 53,608 U.S. agency obligations 36,907 — (13 ) 36,894 Total short-term marketable securities 93,049 — (48 ) 93,001 Marketable securities, noncurrent: Corporate notes and bonds 3,501 — (4 ) 3,497 Government obligations 1,995 1 — 1,996 U.S. agency obligations 2,049 — — 2,049 Total marketable securities, noncurrent 7,545 1 (4 ) 7,542 Cash, cash equivalents, short-term marketable securities and marketable securities, noncurrent $ 121,188 $ 1 $ (52 ) $ 121,137 |
Estimated Fair Value of Investments in Marketable Securities, Available-for-Sale, Classified by Contractual Maturity Date | As of December 31, 2015 , the following table summarizes the estimated fair value of our investments in marketable securities, all of which are considered available-for-sale, classified by the contractual maturity date (in thousands): Due within 1 year $ 96,410 Due within 1 year through 3 years 6,429 Total marketable securities $ 102,839 |
Property and Equipment, net (Ta
Property and Equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Components of Property and Equipment | The following table sets forth the components of property and equipment (in thousands): December 31, 2015 2014 Computers, equipment and software $ 37,249 $ 33,706 Leasehold improvements 5,546 5,214 Furniture and fixtures 2,630 2,559 Construction in progress 3,666 1,055 49,091 42,534 Less accumulated depreciation and amortization (36,344 ) (29,548 ) $ 12,747 $ 12,986 |
Depreciation Expense Related to Property and Equipment | Depreciation expense related to property and equipment was as follows (in thousands): Year Ended December 31, 2015 2014 2013 $7,800 $9,351 $9,180 |
Goodwill and Other Intangible32
Goodwill and Other Intangible Assets, net (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | The roll-forward of activity related to goodwill was as follows (in thousands): Balance at December 31, 2012 $ 23,435 Acquisition of Clara 3,161 Acquisition of StreamOnce 3,157 Balance at December 31, 2013, 2014 and 2015 $ 29,753 |
Intangible Assets and their Related Useful Lives | The following table presents our intangible assets and their related useful lives (dollars in thousands): Useful December 31, Life 2015 2014 Acquired technology 5-7 years $ 20,441 $ 20,441 Accumulated amortization (16,103 ) (12,049 ) 4,338 8,392 Perpetual software licenses 2 years 2,430 2,430 Accumulated amortization (2,430 ) (2,430 ) — — Covenant not to compete 1-4 years 2,028 2,028 Accumulated amortization (1,976 ) (1,634 ) 52 394 Other 2-7 years 1,939 1,939 Accumulated amortization (1,783 ) (1,277 ) 156 662 Total intangible assets, net $ 4,546 $ 9,448 |
Amortization Expense Related to Intangible Assets | Amortization expense related to intangible assets was as follows (in thousands): Year Ended December 31, 2015 2014 2013 $4,902 $4,862 $4,990 |
Estimated Future Amortization Expense | Estimated future amortization expense as of December 31, 2015 , is as follows (in thousands): 2016 $ 2,579 2017 1,587 2018 380 $ 4,546 |
Fair Value Measurements of As33
Fair Value Measurements of Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Financial Assets Measured at Fair Value on Recurring Basis | The following table presents our financial assets that were measured at fair value on a recurring basis (in thousands): December 31, 2015 Level 1 Level 2 Level 3 Total Assets: Cash equivalents Money market mutual funds $ 246 $ — $ — $ 246 Marketable securities Commercial paper — 7,485 — 7,485 Corporate notes and bonds — 48,859 — 48,859 Government obligations — 13,991 — 13,991 U.S. government and agency — 32,504 — 32,504 — 102,839 — 102,839 Total $ 246 $ 102,839 $ — $ 103,085 December 31, 2014 Level 1 Level 2 Level 3 Total Assets: Cash equivalents Money market mutual funds $ 1,609 $ — $ — $ 1,609 Marketable securities Commercial paper — 2,499 — 2,499 Corporate notes and bonds — 57,105 — 57,105 Government obligations — 1,996 — 1,996 U.S. government and agency — 38,943 — 38,943 — 100,543 — 100,543 Total $ 1,609 $ 100,543 $ — $ 102,152 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Summary of Long-Term Debt | Our long-term debt is summarized as follows (in thousands): December 31, 2015 2014 Silicon Valley Bank loans $ 3,600 $ 6,000 Less current portion (2,400 ) (2,400 ) $ 1,200 $ 3,600 |
Summary of Long-Term Debt Maturities | Annual maturities of long-term debt as of December 31, 2015 were as follows (in thousands): 2016 $ 2,400 2017 1,200 $ 3,600 |
Stock-Based Awards and Stock-35
Stock-Based Awards and Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Option Activity and Stock Options Outstanding | Certain information regarding stock option activity and stock options outstanding as of December 31, 2015 was as follows: Shares Outstanding Weighted Weighted Aggregate Balances, December 31, 2014 3,389,132 7,329,575 $ 5.97 Additional shares reserved 2,870,538 Stock options granted (2,440,695 ) 2,440,695 5.37 Forfeited – stock options 1,703,380 (1,703,380 ) 9.73 Exercised – stock options exercised (1,089,933 ) 1.22 Granted – RSUs (3,914,358 ) Forfeited – RSUs 1,574,637 Forfeited – PSUs 250,000 Vested RSUs adjusted for taxes 209,532 Balances, December 31, 2015 3,642,166 6,976,957 $ 5.59 5.55 $ 6,878 Exercisable at December 31, 2015 4,633,363 $ 5.48 3.65 $ 6,876 Vested and expected to vest 6,744,707 $ 5.58 5.39 $ 6,878 |
Schedule of Restricted Stock Activity | Restricted stock activity was as follows: Number Weighted average Balances, December 31, 2014 4,043,912 $ 11.21 Granted RSUs 3,914,358 5.39 Vested RSUs (1,635,341 ) 10.82 Forfeited RSUs (1,574,637 ) 9.72 Forfeited PSUs (250,000 ) 8.12 Balances, December 31, 2015 4,498,292 6.98 |
Schedule of Black-Scholes-Merton Option-Pricing Model with Weighted Average Assumptions | The fair value of the stock-based options granted to employees was estimated using the Black-Scholes-Merton option-pricing model with the following weighted average assumptions: Year Ended December 31, 2015 2014 2013 Expected term (in years) 6.0 6.0 5.9 Risk-free interest rate 1.75 % 1.83 % 1.09 % Volatility 50.62 % 50.43 % 52.17 % Dividend yield — % — % — % |
Schedule of Weighted Average Assumptions, ESPP | The following weighted average assumptions were used to estimate the fair value of ESPP shares in the periods presented: Year Ended December 31, 2015 2014 2013 Expected term (in years) 0.7 0 0 Risk-free interest rate 0.41 % — % — % Volatility 36.20 % — % — % Dividend yield — % — % — % |
Schedule of Stock-Based Compensation | Certain information regarding our stock-based compensation was as follows (in thousands, except per share data): Year Ended December 31, 2015 2014 2013 Weighted average per share grant date fair value of stock options granted $ 2.65 $ 3.68 $ 7.57 Weighted average per share grant date fair value of ESPP purchase rights $ 1.32 $ — $ — Total intrinsic value of stock options exercised $ 4,444 $ 12,573 $ 36,367 Total fair value of restricted stock and stock options vested $ 19,320 $ 38,071 $ 21,045 |
Stock-Based Compensation Expense Included in Consolidated Statements of Operations | Stock-based compensation was included in our Consolidated Statements of Operations as follows (in thousands): Year Ended December 31, 2015 2014 2013 Cost of revenues $ 3,029 $ 4,276 $ 3,450 Research and development 7,078 10,642 14,133 Sales and marketing 3,775 10,852 10,614 General and administrative 6,423 7,138 6,557 Total $ 20,305 $ 32,908 $ 34,754 Stock-based compensation related to non-employee awards (included in total stock-based compensation above) $ — $ 41 $ 488 Stock-based compensation capitalized related to the development of internal-use software $ — $ 1,370 $ — |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Pretax Income (Loss) | Pretax income (loss) is as follows (in thousands): Year Ended December 31, 2015 2014 2013 Domestic $ (35,009 ) $ (55,660 ) $ (76,714 ) Foreign 1,407 645 333 Total $ (33,602 ) $ (55,015 ) $ (76,381 ) |
Schedule of Income Tax Provision (Benefit) | The provision (benefit) for federal, state and foreign income taxes was as follows (in thousands): Year Ended December 31, 2015 2014 2013 Current tax provision (benefit): Federal $ — $ — $ — State 157 50 79 Foreign 965 1,015 142 Total current tax provision (benefit) 1,122 1,065 221 Deferred tax provision (benefit): Federal 103 50 (1,025 ) State 26 23 (206 ) Foreign — — — Total deferred tax expense 129 73 (1,231 ) Provision for (benefit from) income taxes $ 1,251 $ 1,138 $ (1,010 ) |
Reconciliation of Statutory Federal Income Tax Rate to Effective Tax Rate | The reconciliation of the statutory federal income tax rate to the effective tax rate is as follows: Year Ended December 31, 2015 2014 2013 Federal statutory tax rate (34.0 )% (34.0 )% (34.0 )% State tax (11.1 ) (6.9 ) (10.5 ) Change in valuation allowance 45.9 40.0 44.0 Permanent differences 5.4 5.3 4.6 Tax credits (6.2 ) (3.8 ) (4.4 ) Foreign rate impact (0.6 ) (0.2 ) (0.1 ) Foreign tax withheld at source 1.5 — — Other 2.8 1.7 (0.9 ) 3.7 % 2.1 % (1.3 )% |
Components of Deferred Tax Assets and Liabilities | The tax effects of significant items comprising our deferred tax assets and liabilities are as follows (in thousands): December 31, 2015 2014 Deferred tax assets: Net operating loss (“NOL”) carryforwards $ 74,486 $ 69,176 Accrued expenses, reserves and allowances 940 1,220 Deferred revenue 16,545 16,429 Tax credit carryforwards 12,079 9,580 Deferred rent 320 363 Depreciation 820 — Amortizable intangibles 203 — Other 16,333 13,840 Total deferred tax assets 121,726 110,608 Deferred tax liabilities: Depreciation — (1,212 ) Amortizable intangibles — (1,678 ) Indefinite lived intangibles (367 ) (238 ) Other — (177 ) Total deferred tax liabilities (367 ) (3,305 ) Valuation allowance (121,726 ) (107,540 ) Net deferred taxes $ (367 ) $ (237 ) |
Deferred Income Taxes | Certain other information regarding our deferred income taxes was as follows: (In thousands) Year Ended December 31, 2015 2014 2013 Increase in valuation allowance $ 14,186 $ 21,463 $ 32,692 (In millions) December 31, 2015 2014 Federal and state NOL carryforwards $ 250.2 $ 238.8 Tax credit carryforwards 12.9 10.3 |
Schedule of Unrecognized Tax Benefits | The following is a reconciliation of our unrecognized tax benefits (in thousands): Year Ended December 31, 2015 2014 2013 Beginning balance $ 567 $ 409 $ 737 Additions based on tax positions related to the current year 185 240 205 Reductions based on tax positions related to the current year (74 ) — — Additions based on prior year tax positions — 36 151 Reductions for tax positions in prior years (223 ) (118 ) (212 ) Settlements — — (472 ) Ending balance $ 455 $ 567 $ 409 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Net Loss Per Share | The following table sets forth the computation of basic and diluted net loss per share (in thousands, except per share data): Year Ended December 31, 2015 2014 2013 Numerator: Net loss $ (34,853 ) $ (56,153 ) $ (75,371 ) Denominator: Weighted-average common shares outstanding 75,365 71,251 67,858 Less: Weighted-average unvested common shares subject to repurchase or forfeiture 148 500 477 Weighted-average shares used to compute net loss per share, basic and diluted 75,217 70,751 67,381 Net loss per share, basic and diluted $ (0.46 ) $ (0.79 ) $ (1.12 ) |
Summary of Potentially Dilutive Securities that are not Included in Diluted Per Share | Potentially dilutive securities that were not included in the diluted per share calculations because they would be anti-dilutive were as follows: Year Ended December 31, 2015 2014 2013 Shares subject to outstanding common stock options 6,976,957 7,329,575 9,480,138 Unvested restricted common stock 4,498,292 4,043,912 4,796,112 Common stock subject to repurchase — 313,412 635,928 Purchase rights from employee stock purchase plans 8,268 — — 11,483,517 11,686,899 14,912,178 |
Statements of Cash Flows (Table
Statements of Cash Flows (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Supplemental Cash Flow Elements [Abstract] | |
Summary of Supplemental Cash Flows Information | The summary of supplemental cash flows information is as follows (in thousands): Year Ended December 31, 2015 2014 2013 Supplemental Cash Flow Information Cash paid for interest $ 123 $ 181 $ 246 Cash paid for income taxes 634 235 258 Supplemental Non-Cash Information Construction costs funded by landlord tenant improvement allowance $ 741 $ — $ — Common stock issued in connection with StreamOnce acquisition — — 852 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Operating Lease Spaces Currently Utilized | Operating lease payments primarily relate to equipment leases and noncancelable operating leases associated with the following spaces that we currently utilize: Location Lease expiration Palo Alto, California headquarters March 2020 Portland, Oregon office September 2018 San Francisco, California office October 2022 Boulder, Colorado office March 2016 United Kingdom office May 2018 Israel office February 2021 Arizona data center December 2016 New Jersey data center September 2016 Netherlands data center October 2016 London data center March 2017 |
Summary of Rent Expense | Rent expense was as follows (in thousands): Year Ended December 31, 2015 2014 2013 Gross rent expense $ 7,677 $ 7,023 $ 5,570 Sublease income 254 45 45 Net rent expense $ 7,423 $ 6,978 $ 5,525 |
Summary of Approximate Future Minimum Lease Payments Required Under Operating Leases | The approximate future minimum lease payments required under operating leases (including for sublet facilities) were as follows (in thousands): Year ending December 31, 2016 $ 7,447 2017 5,057 2018 4,071 2019 1,658 2020 1,363 Thereafter 1,369 $ 20,965 |
Geographic Information (Tables)
Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Text Block [Abstract] | |
Schedule of Geographic Information | Sales to countries which totaled 10% or more of our total revenues, determined based on the location of the end customer, were as follows (in thousands): Year Ended December 31, 2015 2014 2013 U.S. $ 143,819 $ 135,876 $ 112,693 Rest of world 51,974 42,817 33,070 $ 195,793 $ 178,693 $ 145,763 |
Schedule of Long-Lived Net Assets by Major Geographic Area | Our long-lived net assets are classified by major geographic areas as follows: Year Ended December 31, 2015 2014 U.S. $ 9,530 $ 11,385 Israel 2,199 317 Netherlands 634 731 United Kingdom 384 553 $ 12,747 $ 12,986 |
Employee Benefit Plan Employee
Employee Benefit Plan Employee Benefit Plan (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plan Contributions | We made matching contributions as follows (in thousands): Year Ended December 31, 2015 2014 2013 401(k) matching contributions $ 2,485 $ 2,413 $ 2,196 |
Related-Party Transactions (Tab
Related-Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Schedule of Information Regarding Related Party Transactions | Certain members of our board of directors also serve on the board of directors of certain of our customers and in some cases are also investors of these customers. Certain information regarding these customers was as follows (in thousands): December 31, 2015 2014 Accounts receivable $ 230 $ 46 Current deferred revenue 461 548 Non-current deferred revenue 56 75 Year Ended December 31, 2015 2014 2013 Revenues $ 1,046 $ 929 $ 1,820 |
Selected Quarterly Financial 43
Selected Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Selected Quarterly Financial Data | Selected Quarterly Financial Data (Unaudited) For the Quarter Ended (Dollars in thousands, except per share amounts) March 31, June 30, Sept. 30, Dec. 31, Total revenues $ 47,126 $ 48,611 $ 49,905 $ 50,151 Gross profit 29,900 30,460 31,740 31,499 Net loss (8,165 ) (9,310 ) (8,829 ) (8,549 ) Net loss per share, basic and diluted (0.11 ) (0.12 ) (0.12 ) (0.11 ) For the Quarter Ended (Dollars in thousands, except per share amounts) March 31, June 30, Sept. 30, Dec. 31, Total revenues $ 41,029 $ 43,375 $ 46,600 $ 47,689 Gross profit 25,574 26,735 29,365 30,346 Net loss (17,324 ) (14,630 ) (12,109 ) (12,090 ) Net loss per share, basic and diluted (0.25 ) (0.21 ) (0.17 ) (0.17 ) |
Summary of Significant Accoun44
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Summary Of Significant Accounting Policies [Line Items] | |||
Cash equivalents maturity period maximum | 3 months | ||
Cash equivalents | $ 200,000 | $ 1,600,000 | |
Accounts receivable number of days past due evaluated for doubtful accounts | 90 days | ||
Capitalized costs, amortization | $ 5,100,000 | ||
Impairment charge related to capitalized software development costs | 0 | 0 | $ 0 |
Impairment charges of long-lived asset | 0 | 0 | 0 |
Goodwill impairment | $ 0 | $ 0 | $ 0 |
Percentage of deferred professional services revenues | 6.00% | 4.00% | |
Percentage of total revenues | 10.00% | 10.00% | 10.00% |
Percentage of total accounts receivable | 10.00% | 10.00% | |
Computer equipment, hardware and software [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Property plant and equipment useful life | 3 years | ||
Furniture and fixtures [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Property plant and equipment useful life | 7 years | ||
Leasehold improvements [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Property plant and equipment useful life | 5 years | ||
Sales and marketing [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Commissions expense | $ 11,800,000 | $ 13,700,000 | $ 15,700,000 |
Advertising costs | $ 5,600,000 | $ 7,700,000 | $ 5,300,000 |
U.S. [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Products warranty period | 180 days | ||
Europe [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Products warranty period | 365 days | ||
Minimum [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Payment due days | 30 days | ||
Subscriptions term to customers | 12 months | ||
Maximum [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Payment due days | 60 days | ||
Subscriptions term to customers | 36 months |
Summary of Significant Accoun45
Summary of Significant Accounting Policies - Allowance for Doubtful Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Beginning balance | $ 559 | $ 740 | $ 218 |
Charges to expense and deferred revenue | 1,529 | 599 | 672 |
Write-offs | (918) | (780) | (150) |
Ending balance | $ 1,170 | $ 559 | $ 740 |
Summary of Significant Accoun46
Summary of Significant Accounting Policies - Schedule of Capitalized and Amortization of Software Development Costs (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Research and Development [Abstract] | |||
Total capitalized software development costs | $ 0 | $ 5,924 | $ 3,057 |
Total amortization of capitalized software development costs | $ 2,012 | $ 65 | $ 0 |
Summary of Significant Accoun47
Summary of Significant Accounting Policies - Schedule of Capitalized Software Development Costs (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Research and Development [Abstract] | ||
Capitalized software development costs | $ 8,981 | $ 8,981 |
Accumulated amortization | (2,077) | (65) |
Capitalized software development costs net | $ 6,904 | $ 8,916 |
Summary of Significant Accoun48
Summary of Significant Accounting Policies - Capitalized Software Development Costs Expected Amortization Expense (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Finite-Lived Intangible Assets [Line Items] | ||
2,016 | $ 2,579 | |
2,017 | 1,587 | |
Intangible assets, net | 4,546 | $ 9,448 |
Software Development Costs [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
2,016 | 2,517 | |
2,017 | 571 | |
Intangible assets, net | $ 3,088 |
Acquisitions - 2013 Acquisition
Acquisitions - 2013 Acquisitions - Additional Information (Detail) - USD ($) $ in Thousands | Apr. 29, 2013 | Apr. 18, 2013 | Dec. 31, 2014 |
Clara Ehf. [Member] | |||
Business Acquisition [Line Items] | |||
Total purchase consideration | $ 6,488 | ||
Weighted average amortization period for intangible assets acquired | 4 years 3 months 18 days | ||
Clara Ehf. [Member] | General and administrative [Member] | |||
Business Acquisition [Line Items] | |||
Transaction costs related to acquisition | $ 200 | ||
StreamOnce, Inc. [Member] | |||
Business Acquisition [Line Items] | |||
Total purchase consideration | $ 6,095 | ||
Weighted average amortization period for intangible assets acquired | 4 years 8 months 12 days | ||
Purchase price consideration paid in cash | $ 4,667 | ||
Common stock issued in connection with acquisition | 532,952 | ||
Purchase consideration paid in common stock | $ 7,300 | ||
Number of restricted common stock issued | 470,552 | ||
Vesting period of restricted common stock | 2 years | ||
Fair value of restricted common stock on grant date | $ 6,400 | ||
Vesting period to recognize expense | 2 years | ||
Additional consideration for employees | $ 700 | ||
Vesting period of additional consideration granted to employees | 18 months | ||
Contingent consideration | $ 600 | ||
Deferred tax liability | 1,351 | ||
StreamOnce, Inc. [Member] | General and administrative [Member] | |||
Business Acquisition [Line Items] | |||
Transaction costs related to acquisition | $ 200 |
Acquisitions - Allocation of Pu
Acquisitions - Allocation of Purchase Price - 2013 Acquisitions (Detail) - USD ($) $ in Thousands | Apr. 29, 2013 | Apr. 18, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Business Acquisition [Line Items] | ||||||
Goodwill | $ 29,753 | $ 29,753 | $ 29,753 | $ 23,435 | ||
Clara Ehf. [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Net assets acquired | $ 6,488 | |||||
Current assets | 81 | |||||
Goodwill | 3,161 | |||||
Other intangible assets | 3,342 | |||||
Current liabilities | (96) | |||||
StreamOnce, Inc. [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Cash paid | $ 4,667 | |||||
Value of common stock issued | 852 | |||||
Contingent consideration | 576 | |||||
Net assets acquired | 6,095 | |||||
Current assets | 108 | |||||
Goodwill | 3,157 | |||||
Other intangible assets | 4,248 | |||||
Current liabilities | (67) | |||||
Core technology [Member] | Clara Ehf. [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Other intangible assets | $ 2,315 | |||||
Intangible assets, useful life | 5 years | |||||
Core technology [Member] | StreamOnce, Inc. [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Other intangible assets | $ 3,671 | |||||
Intangible assets, useful life | 5 years | |||||
Covenant not to compete [Member] | Clara Ehf. [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Other intangible assets | $ 227 | |||||
Intangible assets, useful life | 2 years | |||||
Covenant not to compete [Member] | StreamOnce, Inc. [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Other intangible assets | $ 459 | |||||
Intangible assets, useful life | 3 years | |||||
Customer relationships [Member] | Clara Ehf. [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Other intangible assets | $ 570 | |||||
Intangible assets, useful life | 3 years | |||||
Trade names [Member] | Clara Ehf. [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Other intangible assets | $ 230 | |||||
Intangible assets, useful life | 3 years | |||||
Trade names [Member] | StreamOnce, Inc. [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Other intangible assets | $ 118 | |||||
Intangible assets, useful life | 3 years |
Cash, Cash Equivalents and Ma51
Cash, Cash Equivalents and Marketable Securities - Cash and Cash Equivalents and Marketable Securities (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Investment Holdings [Line Items] | ||||
Cash, cost and estimated fair value | $ 9,624 | $ 18,985 | ||
Cash equivalents, cost and estimated fair value | 200 | 1,600 | ||
Cash and cash equivalents, cost and estimated fair value | 9,870 | 20,594 | $ 38,415 | $ 48,955 |
Cost | 112,841 | 121,188 | ||
Unrealized Gains | 0 | 1 | ||
Unrealized Losses | (132) | (52) | ||
Estimated Fair Value | 102,839 | |||
Estimated Fair Value | 112,709 | 121,137 | ||
Money market mutual funds [Member] | ||||
Investment Holdings [Line Items] | ||||
Cash equivalents, cost and estimated fair value | 246 | 1,609 | ||
Short-term marketable securities [Member] | ||||
Investment Holdings [Line Items] | ||||
Cost | 96,521 | 93,049 | ||
Unrealized Gains | 0 | 0 | ||
Unrealized Losses | (111) | (48) | ||
Estimated Fair Value | 96,410 | 93,001 | ||
Short-term marketable securities [Member] | Commercial paper [Member] | ||||
Investment Holdings [Line Items] | ||||
Cost | 7,485 | 2,499 | ||
Unrealized Gains | 0 | 0 | ||
Unrealized Losses | 0 | 0 | ||
Estimated Fair Value | 7,485 | 2,499 | ||
Short-term marketable securities [Member] | Corporate notes and bonds [Member] | ||||
Investment Holdings [Line Items] | ||||
Cost | 44,483 | 53,643 | ||
Unrealized Gains | 0 | 0 | ||
Unrealized Losses | (60) | (35) | ||
Estimated Fair Value | 44,423 | 53,608 | ||
Short-term marketable securities [Member] | U.S. agency obligations [Member] | ||||
Investment Holdings [Line Items] | ||||
Cost | 32,543 | 36,907 | ||
Unrealized Gains | 0 | 0 | ||
Unrealized Losses | (39) | (13) | ||
Estimated Fair Value | 32,504 | 36,894 | ||
Short-term marketable securities [Member] | Government obligations [Member] | ||||
Investment Holdings [Line Items] | ||||
Cost | 12,010 | |||
Unrealized Gains | 0 | |||
Unrealized Losses | (12) | |||
Estimated Fair Value | 11,998 | |||
Marketable securities, noncurrent [Member] | ||||
Investment Holdings [Line Items] | ||||
Cost | 6,450 | 7,545 | ||
Unrealized Gains | 0 | 1 | ||
Unrealized Losses | (21) | (4) | ||
Estimated Fair Value | 6,429 | 7,542 | ||
Marketable securities, noncurrent [Member] | Corporate notes and bonds [Member] | ||||
Investment Holdings [Line Items] | ||||
Cost | 4,453 | 3,501 | ||
Unrealized Gains | 0 | 0 | ||
Unrealized Losses | (17) | (4) | ||
Estimated Fair Value | 4,436 | 3,497 | ||
Marketable securities, noncurrent [Member] | U.S. agency obligations [Member] | ||||
Investment Holdings [Line Items] | ||||
Cost | 2,049 | |||
Unrealized Gains | 0 | |||
Unrealized Losses | 0 | |||
Estimated Fair Value | 2,049 | |||
Marketable securities, noncurrent [Member] | Government obligations [Member] | ||||
Investment Holdings [Line Items] | ||||
Cost | 1,997 | 1,995 | ||
Unrealized Gains | 0 | 1 | ||
Unrealized Losses | (4) | 0 | ||
Estimated Fair Value | $ 1,993 | $ 1,996 |
Cash, Cash Equivalents and Ma52
Cash, Cash Equivalents and Marketable Securities - Estimated Fair Value of Investments in Marketable Securities, Available-for-Sale, Classified by Contractual Maturity Date (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value Disclosures [Abstract] | ||
Due within 1 year | $ 96,410 | $ 93,001 |
Due within 1 year through 3 years | 6,429 | $ 7,542 |
Total marketable securities | $ 102,839 |
Property and Equipment, net - C
Property and Equipment, net - Components of Property and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 49,091 | $ 42,534 |
Less accumulated depreciation and amortization | (36,344) | (29,548) |
Property and equipment, net | 12,747 | 12,986 |
Computers, equipment and software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 37,249 | 33,706 |
Leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 5,546 | 5,214 |
Furniture and fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 2,630 | 2,559 |
Construction in progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 3,666 | $ 1,055 |
Property and Equipment, net - D
Property and Equipment, net - Depreciation Expense Related to Property and Equipment (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Disclosure Property Plant And Equipment Depreciation And Amortization [Abstract] | |||
Depreciation expense | $ 7,800 | $ 9,351 | $ 9,180 |
Goodwill and Other Intangible55
Goodwill and Other Intangible Assets, net - Goodwill (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Goodwill [Roll Forward] | |||
Balance, beginning of period | $ 29,753 | $ 29,753 | $ 23,435 |
Acquisition | 0 | 0 | |
Balance, end of period | $ 29,753 | $ 29,753 | 29,753 |
Clara Ehf. [Member] | |||
Goodwill [Roll Forward] | |||
Acquisition | 3,161 | ||
StreamOnce, Inc. [Member] | |||
Goodwill [Roll Forward] | |||
Acquisition | $ 3,157 |
Goodwill and Other Intangible56
Goodwill and Other Intangible Assets, net - Intangible Assets and their Related Useful Lives (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, net | $ 4,546 | $ 9,448 |
Acquired technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | 20,441 | 20,441 |
Intangible assets, accumulated amortization | (16,103) | (12,049) |
Intangible assets, net | $ 4,338 | 8,392 |
Acquired technology [Member] | Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, useful life | 5 years | |
Acquired technology [Member] | Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, useful life | 7 years | |
Perpetual software licenses [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, useful life | 2 years | |
Intangible assets, gross | $ 2,430 | 2,430 |
Intangible assets, accumulated amortization | (2,430) | (2,430) |
Intangible assets, net | 0 | 0 |
Covenant not to compete [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | 2,028 | 2,028 |
Intangible assets, accumulated amortization | (1,976) | (1,634) |
Intangible assets, net | $ 52 | 394 |
Covenant not to compete [Member] | Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, useful life | 1 year | |
Covenant not to compete [Member] | Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, useful life | 4 years | |
Other [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 1,939 | 1,939 |
Intangible assets, accumulated amortization | (1,783) | (1,277) |
Intangible assets, net | $ 156 | $ 662 |
Other [Member] | Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, useful life | 2 years | |
Other [Member] | Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, useful life | 7 years |
Goodwill and Other Intangible57
Goodwill and Other Intangible Assets, net - Amortization Expense Related to Intangible Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense related to intangible assets | $ 4,902 | $ 4,862 | $ 4,990 |
Goodwill and Other Intangible58
Goodwill and Other Intangible Assets, net - Estimated Future Amortization Expense (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
2,016 | $ 2,579 | |
2,017 | 1,587 | |
2,018 | 380 | |
Intangible assets, net | $ 4,546 | $ 9,448 |
Fair Value Measurements of As59
Fair Value Measurements of Assets and Liabilities - Financial Assets Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Assets | ||
Marketable securities | $ 102,839 | |
Fair value measurements, recurring [Member] | ||
Assets | ||
Marketable securities | 102,839 | $ 100,543 |
Total | 103,085 | 102,152 |
Fair value measurements, recurring [Member] | Money market mutual funds [Member] | ||
Assets | ||
Cash equivalents | 246 | 1,609 |
Fair value measurements, recurring [Member] | Commercial paper [Member] | ||
Assets | ||
Marketable securities | 7,485 | 2,499 |
Fair value measurements, recurring [Member] | Corporate notes and bonds [Member] | ||
Assets | ||
Marketable securities | 48,859 | 57,105 |
Fair value measurements, recurring [Member] | Government obligations [Member] | ||
Assets | ||
Marketable securities | 13,991 | 1,996 |
Fair value measurements, recurring [Member] | U.S. government and agency [Member] | ||
Assets | ||
Marketable securities | 32,504 | 38,943 |
Fair value measurements, recurring [Member] | Level 1 [Member] | ||
Assets | ||
Total | 246 | 1,609 |
Fair value measurements, recurring [Member] | Level 1 [Member] | Money market mutual funds [Member] | ||
Assets | ||
Cash equivalents | 246 | 1,609 |
Fair value measurements, recurring [Member] | Level 2 [Member] | ||
Assets | ||
Marketable securities | 102,839 | 100,543 |
Total | 102,839 | 100,543 |
Fair value measurements, recurring [Member] | Level 2 [Member] | Commercial paper [Member] | ||
Assets | ||
Marketable securities | 7,485 | 2,499 |
Fair value measurements, recurring [Member] | Level 2 [Member] | Corporate notes and bonds [Member] | ||
Assets | ||
Marketable securities | 48,859 | 57,105 |
Fair value measurements, recurring [Member] | Level 2 [Member] | Government obligations [Member] | ||
Assets | ||
Marketable securities | 13,991 | 1,996 |
Fair value measurements, recurring [Member] | Level 2 [Member] | U.S. government and agency [Member] | ||
Assets | ||
Marketable securities | $ 32,504 | $ 38,943 |
Fair Value Measurements of As60
Fair Value Measurements of Assets and Liabilities - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | |||
Other-than-temporary impairments | $ 0 | $ 0 | $ 0 |
Valuation techniques, description | There were no changes to our valuation techniques during 2014. |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2015USD ($)payment | Dec. 31, 2014USD ($) | |
Debt Instrument [Line Items] | ||
Term loan facility | $ 30,000,000 | |
Number of installment payments | payment | 16 | |
Installment payment | $ 600,000 | |
Line of credit facility period for interest due and payable in arrears one | 30 days | |
Line of credit facility period for interest due and payable in arrears two | 60 days | |
Line of credit facility period for interest due and payable in arrears three | 90 days | |
Debt Instrument, Variable Interest Rate, Maximum Annual Increase | 5.00% | |
Long-term Line of Credit | $ 700,000 | |
Term loans outstanding | $ 3,600,000 | $ 6,000,000 |
Term loans (rate) | 2.48% | |
Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate description | (i) an adjusted LIBOR rate, plus a margin of 2.0% or 2.25%, or (ii) the prime rate, plus a margin of 0.25% or 0.50%. In each case, such margin is determined based on our adjusted quick ratio. | |
Term loan facility basis spread on LIBOR rate one (rate) | 2.00% | |
Term loan facility basis spread on LIBOR rate two (rate) | 2.25% | |
Term loan facility basis spread on prime rate one (rate) | 0.25% | |
Term loan facility basis spread on prime rate two (rate) | 0.50% | |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Term loans outstanding | $ 0 |
Long-Term Debt - Summary of Lon
Long-Term Debt - Summary of Long-Term Debt (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Debt Disclosure [Abstract] | ||
Silicon Valley Bank loans | $ 3,600 | $ 6,000 |
Less current portion | (2,400) | (2,400) |
Long-term debt, less current portion | $ 1,200 | $ 3,600 |
Long-Term Debt - Summary of L63
Long-Term Debt - Summary of Long-Term Debt Maturities (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Debt Disclosure [Abstract] | ||
2,016 | $ 2,400 | |
2,017 | 1,200 | |
Silicon Valley Bank loans | $ 3,600 | $ 6,000 |
Stock-Based Awards and Stock-64
Stock-Based Awards and Stock-Based Compensation - Additional Information (Detail) | Jan. 01, 2016shares | May. 31, 2015USD ($)offering_periodpurchase_dateshares | Dec. 31, 2015USD ($)shares | Dec. 31, 2014shares | Dec. 31, 2013shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock instrument, issued in period (shares) | 0 | ||||
Additional shares reserved for future issuance (shares) | 2,870,538 | ||||
Number of options granted (shares) | 2,440,695 | ||||
Options exercisable by non-employees (shares) | 4,633,363 | ||||
Unrecognized stock-based compensation | $ | $ 32,900,000 | ||||
Weighted average remaining vesting period | 2 years 10 months 24 days | ||||
Employee stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock reserved for issuance (shares) | 2,000,000 | ||||
Maximum employee contribution (percent) | 15.00% | ||||
Maximum employee contribution | $ | $ 25,000 | ||||
Maximum employee purchase (shares) | 3,000 | ||||
Offering period | 12 months | ||||
Duration of offering period | 6 months | ||||
Number of offering periods per year | purchase_date | 2 | ||||
Duration of offering period for purchases | 6 months | ||||
Number of available offering periods to participants | offering_period | 1 | ||||
Discount from market price (percent) | 85.00% | ||||
Stock-based awards to non-employees [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of options granted (shares) | 0 | 0 | 0 | ||
Options exercisable by non-employees (shares) | 0 | ||||
2011 Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted options vesting period | 4 years | ||||
Increase in number of shares available for issuance (shares) | 5,000,000 | ||||
Increase in shares available for grant as a percent of total shares outstanding (percent) | 3.90% | ||||
Share-based payment award, description | The 2011 Plan increases on the first day of each year in an amount equal to the lesser of (i) 5,000,000 shares; (ii) 3.9% of the outstanding shares on the last day of the immediately preceding year; or (iii) such number of shares as determined by the board of directors. | ||||
2011 Plan [Member] | Maximum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted options expiration period | 10 years | ||||
2011 Plan [Member] | Subsequent Event [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Additional shares reserved for future issuance (shares) | 2,979,417 | ||||
2011 Plan [Member] | Restricted stock units [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted options vesting period | 1 year | ||||
2011 Plan [Member] | Performance stock units [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted options vesting period | 4 years |
Stock-Based Awards and Stock-65
Stock-Based Awards and Stock-Based Compensation - Stock Option Activity and Stock Options Outstanding (Detail) $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Beginning balance, shares available for grant (shares) | 3,389,132 |
Additional shares reserved for future issuance (shares) | 2,870,538 |
Stock options granted, shares available for grant (shares) | (2,440,695) |
Forfeited - stock options, shares available for grant (shares) | 1,703,380 |
Vested RSUs adjusted for taxes, shares available for grant (shares) | 209,532 |
Ending balance, shares available for grant (shares) | 3,642,166 |
Beginning balance, Outstanding stock options (shares) | 7,329,575 |
Stock options granted, outstanding stock options (shares) | 2,440,695 |
Forfeited - stock options, outstanding stock options (shares) | (1,703,380) |
Stock options exercised, outstanding stock options (shares) | (1,089,933) |
Ending balance, outstanding stock options (shares) | 6,976,957 |
Exercisable at December 31, 2015 | 4,633,363 |
Vested and expected to vest, outstanding stock options (shares) | 6,744,707 |
Beginning balance, weighted average exercise price (dollars per share) | $ / shares | $ 5.97 |
Stock options granted, weighted average exercise price (dollars per share) | $ / shares | 5.37 |
Forfeited - stock options, weighted average exercise price (dollars per share) | $ / shares | 9.73 |
Stock options exercised, weighted average exercise price (dollars per share) | $ / shares | 1.22 |
Ending balance, weighted average exercise price (dollars per share) | $ / shares | 5.59 |
Exercisable at December 31, 2014, weighted average exercise price (dollars per share) | $ / shares | 5.48 |
Vested and expected to vest, weighted average exercise price (dollars per share) | $ / shares | $ 5.58 |
Balances, December 31, 2014, Weighted average remaining life (in years) | 5 years 6 months 18 days |
Exercisable at December 31, 2014, Weighted average remaining life (in years) | 3 years 7 months 24 days |
Vested and expected to vest, Weighted average remaining life (in years) | 5 years 4 months 20 days |
Aggregate intrinsic value, Balances, December 31, 2014 | $ | $ 6,878 |
Aggregate intrinsic value, Exercisable at December 31, 2014 | $ | 6,876 |
Aggregate intrinsic value, Vested and expected to vest | $ | $ 6,878 |
Restricted stock units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock units granted, shares available for grant (shares) | (3,914,358) |
Forfeited, shares available for grant (shares) | 1,574,637 |
Vested RSUs adjusted for taxes, shares available for grant (shares) | 1,635,341 |
Performance stock units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Forfeited, shares available for grant (shares) | 250,000 |
Stock-Based Awards and Stock-66
Stock-Based Awards and Stock-Based Compensation - Schedule of Restricted Stock Activity (Detail) | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vested (shares) | (209,532) |
Restricted stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Beginning balances (shares) | 4,043,912 |
Ending balances (shares) | 4,498,292 |
Beginning balances, weighted average grant date fair value (dollars per share) | $ / shares | $ 11.21 |
Ending balances, weighted average grant date fair value (dollars per share) | $ / shares | $ 6.98 |
Restricted stock units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted (shares) | 3,914,358 |
Vested (shares) | (1,635,341) |
Forfeited (shares) | (1,574,637) |
Granted, weighted average grant date fair value (dollars per share) | $ / shares | $ 5.39 |
Vested, weighted average grant date fair value (dollars per share) | $ / shares | 10.82 |
Forfeited, weighted average grant date fair value (dollars per share) | $ / shares | $ 9.72 |
Performance stock units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Forfeited (shares) | (250,000) |
Forfeited, weighted average grant date fair value (dollars per share) | $ / shares | $ 8.12 |
Stock-Based Awards and Stock-67
Stock-Based Awards and Stock-Based Compensation - Schedule of Black-Scholes-Merton Option-Pricing Model with Weighted Average Assumptions (Detail) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Stock options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 6 years | 6 years | 5 years 10 months 24 days |
Risk-free interest rate (percent) | 1.75% | 1.83% | 1.09% |
Volatility (percent) | 50.62% | 50.43% | 52.17% |
Dividend yield (percent) | 0.00% | 0.00% | 0.00% |
Employee stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 8 months 12 days | 0 days | 0 days |
Risk-free interest rate (percent) | 0.41% | 0.00% | 0.00% |
Volatility (percent) | 36.20% | 0.00% | 0.00% |
Dividend yield (percent) | 0.00% | 0.00% | 0.00% |
Stock-Based Awards and Stock-68
Stock-Based Awards and Stock-Based Compensation - Schedule of Stock-Based Compensation (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average per share grant date fair value of stock options granted | $ 2.65 | $ 3.68 | $ 7.57 |
Total intrinsic value of stock options exercised | $ 4,444 | $ 12,573 | $ 36,367 |
Total fair value of restricted stock and stock options vested | $ 19,320 | $ 38,071 | $ 21,045 |
Employee stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average per share grant date fair value of ESPP purchase rights | $ 1.32 | $ 0 | $ 0 |
Stock-Based Awards and Stock-69
Stock-Based Awards and Stock-Based Compensation - Stock-Based Compensation Expense Included in Consolidated Statements of Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Allocated stock-based compensation expense | $ 20,305 | $ 32,908 | $ 34,754 |
Computers, equipment and software [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Allocated stock-based compensation expense | 0 | 1,370 | 0 |
Stock-based awards to non-employees [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation related to non-employee awards (included in total stock-based compensation above) | 0 | 41 | 488 |
Cost of revenues [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Allocated stock-based compensation expense | 3,029 | 4,276 | 3,450 |
Research and development [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Allocated stock-based compensation expense | 7,078 | 10,642 | 14,133 |
Sales and marketing [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Allocated stock-based compensation expense | 3,775 | 10,852 | 10,614 |
General and administrative [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Allocated stock-based compensation expense | $ 6,423 | $ 7,138 | $ 6,557 |
Income Taxes - Pretax Income (L
Income Taxes - Pretax Income (Loss) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ (35,009) | $ (55,660) | $ (76,714) |
Foreign | 1,407 | 645 | 333 |
Loss before provision for (benefit from) income taxes | $ (33,602) | $ (55,015) | $ (76,381) |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Tax Provision (Benefit) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current tax provision (benefit): | |||
Federal | $ 0 | $ 0 | $ 0 |
State | 157 | 50 | 79 |
Foreign | 965 | 1,015 | 142 |
Total current tax provision (benefit) | 1,122 | 1,065 | 221 |
Deferred tax provision (benefit): | |||
Federal | 103 | 50 | (1,025) |
State | 26 | 23 | (206) |
Foreign | 0 | 0 | 0 |
Total deferred tax expense | 129 | 73 | (1,231) |
Provision for (benefit from) income taxes | $ 1,251 | $ 1,138 | $ (1,010) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule Of Deferred Tax Assets And Liabilities [Line Items] | |||
Effective Income Tax Rate Reconciliation, Foreign Tax Withholdings, Amount | $ 400,000 | ||
Change in valuation allowance related to deferred tax liabilities acquired | 14,186,000 | $ 21,463,000 | $ 32,692,000 |
Net operating loss carryforwards | 74,700,000 | ||
Deferred tax assets related to the net operating losses | 31,600,000 | 31,100,000 | |
Unrecognized tax benefits, accrued interest | 0 | ||
Unrecognized tax benefits, accrued penalties | 0 | 0 | |
Unrecognized tax benefits, impact on effective tax rate | 400,000 | ||
Repatriate earnings of foreign subsidiaries | 0 | 0 | $ 0 |
Unrepatriated cash held in foreign bank accounts | 2,500,000 | ||
Acquisitions [Member] | |||
Schedule Of Deferred Tax Assets And Liabilities [Line Items] | |||
Provision for income taxes, tax examination | $ 500,000 | ||
Change in valuation allowance related to deferred tax liabilities acquired | $ 1,400,000 | ||
Minimum [Member] | |||
Schedule Of Deferred Tax Assets And Liabilities [Line Items] | |||
Net operating loss carry forwards expiration date | 2,016 | ||
Maximum [Member] | |||
Schedule Of Deferred Tax Assets And Liabilities [Line Items] | |||
Net operating loss carry forwards expiration date | 2,035 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Statutory Federal Income Tax Rate to Effective Tax Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory tax rate (percent) | 34.00% | 34.00% | 34.00% |
State tax (percent) | 11.10% | 6.90% | 10.50% |
Change in valuation allowance (percent) | 45.90% | 40.00% | 44.00% |
Permanent differences (percent) | 5.40% | 5.30% | 4.60% |
Tax credits (percent) | (6.20%) | (3.80%) | (4.40%) |
Foreign rate impact (percent) | (0.60%) | (0.20%) | (0.10%) |
Foreign tax withheld at source (percent) | 1.50% | 0.00% | 0.00% |
Other (percent) | 2.80% | 1.70% | (0.90%) |
Total effective tax rate (percent) | 3.70% | 2.10% | (1.30%) |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets: | ||
Net operating loss (“NOL”) carryforwards | $ 74,486 | $ 69,176 |
Accrued expenses, reserves and allowances | 940 | 1,220 |
Deferred revenue | 16,545 | 16,429 |
Tax credit carryforwards | 12,079 | 9,580 |
Deferred rent | 320 | 363 |
Depreciation | 820 | 0 |
Amortizable intangibles | 203 | 0 |
Other | 16,333 | 13,840 |
Total deferred tax assets | 121,726 | 110,608 |
Deferred tax liabilities: | ||
Depreciation | 0 | (1,212) |
Amortizable intangibles | 0 | (1,678) |
Indefinite lived intangibles | (367) | (238) |
Other | 0 | (177) |
Total deferred tax liabilities | (367) | (3,305) |
Valuation allowance | (121,726) | (107,540) |
Net deferred taxes | $ (367) | $ (237) |
Income Taxes - Deferred Income
Income Taxes - Deferred Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Increase in valuation allowance | $ 14,186 | $ 21,463 | $ 32,692 |
Federal and state NOL carryforwards | 250,200 | 238,800 | |
Research and development tax credit carryforwards | $ 12,900 | $ 10,300 |
Income Taxes - Schedule of Unre
Income Taxes - Schedule of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Beginning balance | $ 567 | $ 409 | $ 737 |
Additions based on tax positions related to the current year | 185 | 240 | 205 |
Reductions based on tax positions related to the current year | (74) | 0 | 0 |
Additions based on prior year tax positions | 0 | 36 | 151 |
Reductions for tax positions in prior years | (223) | (118) | (212) |
Settlements | 0 | 0 | (472) |
Ending balance | $ 455 | $ 567 | $ 409 |
Net Loss Per Share - Schedule o
Net Loss Per Share - Schedule of Basic and Diluted Net Loss Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Numerator: | |||||||||||
Net loss | $ (8,549) | $ (8,829) | $ (9,310) | $ (8,165) | $ (12,090) | $ (12,109) | $ (14,630) | $ (17,324) | $ (34,853) | $ (56,153) | $ (75,371) |
Denominator: | |||||||||||
Weighted-average common shares outstanding (shares) | 75,365 | 71,251 | 67,858 | ||||||||
Less: Weighted-average unvested common shares subject to repurchase or forfeiture (shares) | 148 | 500 | 477 | ||||||||
Weighted-average shares used to compute net loss per share, basic and diluted (shares) | 75,217 | 70,751 | 67,381 | ||||||||
Net loss per share, basic and diluted (dollars per shares) | $ (0.46) | $ (0.79) | $ (1.12) |
Net Loss Per Share - Summary of
Net Loss Per Share - Summary of Potentially Dilutive Securities that are not Included in Diluted Per Share (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share amount (shares) | 11,483,517 | 11,686,899 | 14,912,178 |
Common stock subject to repurchase [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share amount (shares) | 0 | 313,412 | 635,928 |
Stock options [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share amount (shares) | 6,976,957 | 7,329,575 | 9,480,138 |
Restricted stock [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share amount (shares) | 4,498,292 | 4,043,912 | 4,796,112 |
Employee stock [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share amount (shares) | 8,268 | 0 | 0 |
Statements of Cash Flows - Summ
Statements of Cash Flows - Summary of Supplemental Cash Flows Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Supplemental Cash Flow Information | |||
Cash paid for interest | $ 123 | $ 181 | $ 246 |
Cash paid for income taxes | 634 | 235 | 258 |
Supplemental Non-Cash Information | |||
Construction Costs Funded by Landlord | 741 | 0 | 0 |
Common stock issued in connection with StreamOnce acquisition | 852 | ||
StreamOnce, Inc. [Member] | |||
Supplemental Non-Cash Information | |||
Common stock issued in connection with StreamOnce acquisition | $ 0 | $ 0 | $ 852 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Operating Lease Spaces Currently Utilized (Detail) | 12 Months Ended |
Dec. 31, 2015 | |
Palo Alto, California [Member] | Headquarters [Member] | |
Operating Leased Assets [Line Items] | |
Operating lease expiration period | March 2020 |
Portland, Oregon office [Member] | |
Operating Leased Assets [Line Items] | |
Operating lease expiration period | September 2018 |
San Francisco, California office [Member] | |
Operating Leased Assets [Line Items] | |
Operating lease expiration period | October 2,022 |
Boulder, Colorado office [Member] | |
Operating Leased Assets [Line Items] | |
Operating lease expiration period | March 2,016 |
United Kingdom office [Member] | |
Operating Leased Assets [Line Items] | |
Operating lease expiration period | May 2,018 |
Israel office [Member] | |
Operating Leased Assets [Line Items] | |
Operating lease expiration period | February 2,021 |
Arizona data center [Member] | |
Operating Leased Assets [Line Items] | |
Operating lease expiration period | December 2,016 |
New Jersey data center [Member] | |
Operating Leased Assets [Line Items] | |
Operating lease expiration period | September 2,016 |
Netherlands data center [Member] | |
Operating Leased Assets [Line Items] | |
Operating lease expiration period | October 2,016 |
London data center [Member] | |
Operating Leased Assets [Line Items] | |
Operating lease expiration period | March 2,017 |
Commitments and Contingencies81
Commitments and Contingencies - Summary of Rent Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Gross rent expense | $ 7,677 | $ 7,023 | $ 5,570 |
Sublease income | 254 | 45 | 45 |
Net rent expense | $ 7,423 | $ 6,978 | $ 5,525 |
Commitments and Contingencies82
Commitments and Contingencies - Additional Information (Detail) $ in Millions | Dec. 31, 2015USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Future minimum subleases rentals to be received | $ 0.7 |
Commitments under non-cancelable purchase orders | $ 3.7 |
Commitments and Contingencies83
Commitments and Contingencies - Summary of Approximate Future Minimum Lease Payments Required Under Operating Leases (Detail) $ in Thousands | Dec. 31, 2015USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,016 | $ 7,447 |
2,017 | 5,057 |
2,018 | 4,071 |
2,019 | 1,658 |
2,020 | 1,363 |
Thereafter | 1,369 |
Operating leases future payments due | $ 20,965 |
Geographic Information - Schedu
Geographic Information - Schedule of Geographic Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting [Abstract] | |||||||||||
Entity Wide Revenue By Major Geography Percentage | 10.00% | ||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total revenues | $ 50,151 | $ 49,905 | $ 48,611 | $ 47,126 | $ 47,689 | $ 46,600 | $ 43,375 | $ 41,029 | $ 195,793 | $ 178,693 | $ 145,763 |
U.S. [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total revenues | 143,819 | 135,876 | 112,693 | ||||||||
Rest of world [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total revenues | $ 51,974 | $ 42,817 | $ 33,070 |
Geographic Information - Sche85
Geographic Information - Schedule of Long-Lived Net Assets by Major Geographic Area (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 13 | $ 13 |
U.S. [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 10 | 11 |
Israel [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 2 | 0 |
Netherlands [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 1 | 1 |
United Kingdom [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 0 | $ 1 |
Employee Benefit Plan - Additio
Employee Benefit Plan - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Employer matching contribution percentage description | We make a nondiscretionary matching contribution equal to 100% of the first 3% and 50% of the next 2% of compensation contributed by employees. | ||
Matching contributions from the employer | $ 2,485 | $ 2,413 | $ 2,196 |
Employee contribution first 3% [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Nondiscretionary matching contribution | 3.00% | ||
Employer matching contribution percent for employee contribution | 100.00% | ||
Employee contribution next 2% [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Nondiscretionary matching contribution | 2.00% | ||
Employer matching contribution percent for employee contribution | 50.00% |
Related-Party Transactions - Sc
Related-Party Transactions - Schedule of Information Regarding Related Party Transactions (Detail) - Customers [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Related Party Transaction [Line Items] | |||
Accounts receivable | $ 230 | $ 46 | |
Current deferred revenue | 461 | 548 | |
Non-current deferred revenue | 56 | 75 | |
Revenues | $ 1,046 | $ 929 | $ 1,820 |
Disgorgement Funds Received - A
Disgorgement Funds Received - Additional Information (Details) - USD ($) $ in Thousands | Jan. 08, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Extraordinary and Unusual Items [Abstract] | ||||
Non-recurring gain | $ 1,100 | $ 1,107 | $ 0 | $ 0 |
Selected Quarterly Financial 89
Selected Quarterly Financial Data - Schedule of Selected Quarterly Financial Data (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Total revenues | $ 50,151 | $ 49,905 | $ 48,611 | $ 47,126 | $ 47,689 | $ 46,600 | $ 43,375 | $ 41,029 | $ 195,793 | $ 178,693 | $ 145,763 |
Gross profit | 31,499 | 31,740 | 30,460 | 29,900 | 30,346 | 29,365 | 26,735 | 25,574 | 123,599 | 112,020 | 90,471 |
Net loss | $ (8,549) | $ (8,829) | $ (9,310) | $ (8,165) | $ (12,090) | $ (12,109) | $ (14,630) | $ (17,324) | $ (34,853) | $ (56,153) | $ (75,371) |
Basic and diluted net loss per share (dollars per share) | $ (0.11) | $ (0.12) | $ (0.12) | $ (0.11) | $ (0.17) | $ (0.17) | $ (0.21) | $ (0.25) | $ (0.46) | $ (0.79) | $ (1.12) |