Jive Software (JIVE) 10-Q 10 May 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2017	May 03, 2017
Document And Entity Information [Abstract]
Entity Registrant Name	Jive Software, Inc.
Entity Central Index Key	1,462,633
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Document Type	10-Q
Document Period End Date	Mar. 31, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
Amendment Flag	false
Trading Symbol	JIVE
Entity Common Stock, Shares Outstanding		79,762,977

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 42,635	$ 29,560
Short-term marketable securities	76,093	79,656
Accounts receivable, net of allowances of $1,059 and $323	37,772	57,386
Prepaid expenses and other current assets	18,151	16,438
Total current assets	174,651	183,040
Marketable securities, noncurrent	1,600	0
Property and equipment, net of accumulated depreciation of $36,243 and $34,824	10,144	9,583
Goodwill	29,753	29,753
Intangible assets, net of accumulated amortization of $25,277 and $24,871	1,561	1,967
Other assets	3,781	4,537
Total assets	221,490	228,880
Current liabilities:
Accounts payable	5,253	2,233
Accrued payroll and related liabilities	8,487	12,312
Other accrued liabilities	7,435	7,055
Deferred revenue, current	117,917	127,574
Term debt, current	0	600
Total current liabilities	139,092	149,774
Deferred revenue, less current portion	12,756	12,285
Other long-term liabilities	2,992	2,678
Total liabilities	154,840	164,737
Commitments and contingencies (Note 9)
Stockholders’ Equity:
Common stock, $0.0001 par value. Authorized 290,000 shares; issued – 85,629 shares at March 31, 2017 and 85,200 at December 31, 2016; outstanding – 79,203 at March 31, 2017 and 78,774 at December 31, 2016	7	7
Less treasury stock at cost	(3,352)	(3,352)
Additional paid-in capital	404,489	400,740
Accumulated deficit	(334,127)	(332,501)
Accumulated other comprehensive loss	(367)	(751)
Total stockholders’ equity	66,650	64,143
Total liabilities and stockholders’ equity	$ 221,490	$ 228,880

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Accounts receivable allowances	$ 1,059	$ 323
Accumulated depreciation	36,243	34,824
Accumulated amortization	$ 25,277	$ 24,871
Common stock, par value (usd per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (shares)	290,000,000	290,000,000
Common stock, shares issued (shares)	85,629,000	85,200,000
Common stock, shares outstanding (shares)	79,203,000	78,774,000

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Revenues:
Product	$ 47,033	$ 46,526
Professional services	3,050	4,135
Total revenues	50,083	50,661
Cost of revenues:
Product	11,300	12,766
Professional services	3,883	5,669
Total cost of revenues	15,183	18,435
Gross profit	34,900	32,226
Operating expenses:
Research and development	11,713	11,739
Sales and marketing	16,999	20,981
General and administrative	6,984	6,447
Restructuring	442	0
Total operating expenses	36,138	39,167
Loss from operations	(1,238)	(6,941)
Other income (expense), net:
Interest income	173	116
Interest expense	(11)	(44)
Other, net	(269)	(203)
Total other expense, net	(107)	(131)
Loss before provision for income taxes	(1,345)	(7,072)
Provision for income taxes	281	337
Net loss	$ (1,626)	$ (7,409)
Basic and diluted net loss per share (usd per share)	$ (0.02)	$ (0.10)
Shares used in basic and diluted per share calculations (shares)	78,974	76,488

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Statement of Comprehensive Income [Abstract]
Net loss	$ (1,626)	$ (7,409)
Other comprehensive income related to:
Foreign currency translation, net of tax	384	121
Unrealized gain on marketable securities, net of tax	0	143
Other comprehensive income	384	264
Comprehensive loss	$ (1,242)	$ (7,145)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Cash flows from operating activities:
Net loss	$ (1,626)	$ (7,409)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	2,617	3,569
Stock-based compensation	4,024	3,653
Change in deferred taxes	85	59
Other	175	49
Decrease (increase) in:
Accounts receivable, net	19,614	16,439
Prepaid expenses and other assets	(1,742)	982
Increase (decrease) in:
Accounts payable	3,030	3,483
Accrued payroll and related liabilities	(3,771)	14
Other accrued liabilities	(273)	(956)
Deferred revenue	(9,186)	(10,281)
Other long-term liabilities	(147)	(85)
Net cash provided by operating activities	12,800	9,517
Cash flows from investing activities:
Payments for purchase of property and equipment	(753)	(1,214)
Purchases of marketable securities	(21,433)	(15,224)
Sales of marketable securities	0	1,001
Maturities of marketable securities	23,300	16,053
Net cash provided by investing activities	1,114	616
Cash flows from financing activities:
Proceeds from exercise of stock options	19	39
Taxes paid related to net share settlement of equity awards	(294)	(144)
Capital lease payments	(102)	0
Repayments of term loans	(600)	(600)
Net cash used in financing activities	(977)	(705)
Net increase in cash and cash equivalents	12,937	9,428
Effect of exchange rate changes	138	(47)
Cash and cash equivalents, beginning of period	29,560	9,870
Cash and cash equivalents, end of period	$ 42,635	$ 19,251

Nature of Business

Nature of Business	3 Months Ended
	Mar. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [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 on-premise, hosted and cloud instances 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.

Basis of Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation 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. The accompanying consolidated financial statements and condensed footnotes have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, the financial statements do not include all of the information and footnotes required by accounting principles generally accepted in the United States (“GAAP”) for complete financial statements. In the opinion of management, all adjustments considered necessary for fair presentation have been included. The results of operations for the three -month period ended March 31, 2017 are not necessarily indicative of the results to be expected for the full year. For further information, refer to the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2016 , which was filed with the Securities and Exchange Commissions (the "SEC") on February 28, 2017 . The preparation of financial statements in conformity with 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; • accrued restructuring costs; • 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.

Stock-Based Awards and Stock-Ba

Stock-Based Awards and Stock-Based Compensation	3 Months Ended
	Mar. 31, 2017
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, the compensation committee of the board of directors, in its discretion, determines 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 2015 Employee Stock Purchase Plan (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, with the first purchase period having occurred 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 share is equal to 85% 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. During the three months ended March 31, 2017 , no shares were issued under the ESPP. Stock Plan Activity Certain information regarding stock plan activity for the three -month period ended March 31, 2017 and stock options outstanding as of March 31, 2017 was as follows: Shares Outstanding Weighted Weighted Aggregate Balances, December 31, 2016 3,859,304 7,255,759 $ 4.20 Additional shares reserved 3,072,200 Granted – stock options (141,750 ) 141,750 4.20 Forfeited – stock options 70,932 (70,932 ) 5.03 Exercised – stock options (4,076 ) 3.14 Granted – restricted stock units ("RSUs") (1,783,100 ) Forfeited – RSUs 145,030 Vested RSUs adjusted for taxes 70,083 Balances, March 31, 2017 5,292,699 7,322,501 $ 4.19 5.65 $ 8,420 Exercisable at March 31, 2017 4,310,756 $ 4.13 3.44 $ 7,238 Vested and expected to vest 7,111,156 $ 4.18 5.57 $ 8,336 Restricted Stock Activity Restricted stock results from the grant of RSUs. The shares of restricted stock vest over the period specified in the related RSU agreements. Restricted stock activity was as follows: Number Weighted average Balances, December 31, 2016 5,092,286 $ 4.85 Granted – RSUs 1,783,100 4.20 Vested – RSUs (494,792 ) 4.65 Forfeited – RSUs (145,030 ) 4.98 Balances, March 31, 2017 6,235,564 4.68 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 expense was included in our Consolidated Statements of Operations as follows (in thousands): Three Months Ended 2017 2016 Cost of revenues $ 540 $ 616 Research and development 1,017 916 Sales and marketing 854 815 General and administrative 1,602 1,289 $ 4,013 $ 3,636 As of March 31, 2017 , unrecognized stock-based compensation related to all stock-based awards was $29.4 million , which will be recognized over the weighted average remaining vesting period of 2.2 years .

Net Loss Per Share

Net Loss Per Share	3 Months Ended
	Mar. 31, 2017
Earnings Per Share [Abstract]
Net Loss Per Share	Net Loss Per Share Since we were in a loss position for all periods presented, basic net loss per share is the same as diluted net loss per share for all periods. The following table sets forth the computation of basic and diluted net loss per share (in thousands, except per share data): Three Months Ended 2017 2016 Numerator: Net loss $ (1,626 ) $ (7,409 ) Denominator: Weighted-average shares used to compute net loss per share, basic and diluted 78,974 76,488 Net loss per share, basic and diluted $ (0.02 ) $ (0.10 ) Potentially dilutive securities that are not included in the diluted per share calculations because they would be anti-dilutive were as follows: As of March 31, 2017 2016 Shares subject to outstanding common stock options 7,322,501 7,232,080 Unvested restricted common stock 6,235,564 5,658,584 Purchase rights from the ESPP 61,724 281,148 13,619,789 13,171,812

Goodwill and Intangible Assets,

Goodwill and Intangible Assets, Net	3 Months Ended
	Mar. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets, Net	Goodwill and Intangible Assets, Net Goodwill Our goodwill balance did not change during the three months ended March 31, 2017 or during the year ended December 31, 2016 . Other Intangible Assets, net The following table presents our intangible assets and their related useful lives (dollars in thousands): Useful March 31, 2017 December 31, 2016 Acquired technology 5-7 years $ 20,441 $ 20,441 Accumulated amortization (18,880 ) (18,474 ) 1,561 1,967 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 (2,028 ) (2,028 ) — — Other 2-7 years 1,939 1,939 Accumulated amortization (1,939 ) (1,939 ) — — Total intangible assets, net $ 1,561 $ 1,967 Amortization expense related to intangible assets was as follows (in thousands): Three Months Ended March 31, 2017 2016 $406 $1,038 Expected future amortization expense as of March 31, 2017 is as follows (in thousands): Remainder of 2017 $ 1,181 2018 380 $ 1,561

Cash, Cash Equivalents and Mark

Cash, Cash Equivalents and Marketable Securities	3 Months Ended
	Mar. 31, 2017
Cash and Cash Equivalents [Abstract]
Cash, Cash Equivalents and Marketable Securities	Cash, Cash Equivalents and Marketable Securities Cash, cash equivalents and marketable securities consisted of the following (in thousands): March 31, 2017 Description Cost Unrealized Unrealized Estimated Cash $ 24,413 $ — $ — $ 24,413 Cash equivalents: Commercial paper 1,697 — — 1,697 Money market mutual funds 15,625 — — 15,625 Corporate notes and bonds 900 — — 900 Total cash and cash equivalents 42,635 — — 42,635 Short-term marketable securities: Commercial paper 11,978 — — 11,978 Corporate notes and bonds 33,729 — (23 ) 33,706 Government obligations 3,002 — (2 ) 3,000 U.S. agency obligations 27,429 — (20 ) 27,409 Total short-term marketable securities 76,138 — (45 ) 76,093 Marketable securities, noncurrent: Corporate notes and bonds 1,601 — (1 ) 1,600 Cash, cash equivalents, short-term marketable securities and marketable securities, noncurrent $ 120,374 $ — $ (46 ) $ 120,328 December 31, 2016 Description Cost Unrealized Unrealized Estimated Cash $ 13,434 $ — $ — $ 13,434 Cash equivalents: Money market mutual funds 16,126 — — 16,126 Total cash and cash equivalents 29,560 — — 29,560 Short-term marketable securities: Commercial paper 11,664 — — 11,664 Corporate notes and bonds 35,555 — (37 ) 35,518 Government obligations 5,004 — (1 ) 5,003 U.S. agency obligations 27,479 — (8 ) 27,471 Total short-term marketable securities 79,702 — (46 ) 79,656 Cash, cash equivalents and short-term marketable securities $ 109,262 $ — $ (46 ) $ 109,216 As of March 31, 2017 and December 31, 2016 , we did not consider any of our investments to be other-than-temporarily impaired. As of March 31, 2017 , 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 $ 76,093 Due within 1 year through 3 years 1,600 Total marketable securities $ 77,693 See also Note 7.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2017
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements 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 tables present our financial assets that are measured at fair value on a recurring basis (in thousands): March 31, 2017 Level 1 Level 2 Level 3 Total Assets: Cash equivalents Commercial paper $ — $ 1,697 $ — $ 1,697 Money market mutual funds 15,625 — — 15,625 Corporate notes and bonds — 900 — 900 Total cash equivalents 15,625 2,597 — 18,222 Marketable securities Commercial paper — 11,978 — 11,978 Corporate notes and bonds — 35,306 — 35,306 Government obligations — 3,000 — 3,000 U.S. agency obligations — 27,409 — 27,409 Total marketable securities — 77,693 — 77,693 Total $ 15,625 $ 80,290 $ — $ 95,915 December 31, 2016 Level 1 Level 2 Level 3 Total Assets: Cash equivalents Money market mutual funds $ 16,126 $ — $ — $ 16,126 Marketable securities Commercial paper — 11,664 — 11,664 Corporate notes and bonds — 35,518 — 35,518 Government obligations — 5,003 — 5,003 U.S. agency obligations — 27,471 — 27,471 Total marketable securities — 79,656 — 79,656 Total $ 16,126 $ 79,656 $ — $ 95,782 We did not have any financial liabilities measured at fair value on a recurring basis at March 31, 2017 or December 31, 2016 . 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. There were no changes to our valuation techniques during the three months ended March 31, 2017 . During the three -month periods ended March 31, 2017 and March 31, 2016 , we did not record any other-than-temporary impairments. 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.

Long-Term Debt

Long-Term Debt	3 Months Ended
	Mar. 31, 2017
Debt Disclosure [Abstract]
Long-Term Debt	Long-Term Debt We have a secured revolving loan facility and term loan facility of up to $30.0 million under a loan agreement (the “Loan Agreement”) with Silicon Valley Bank (“SVB”). On March 30, 2017, we entered into a Fifth Loan Modification Agreement with SVB to amend the expiration date of the Loan Agreement to May 22, 2018 as well as modify the adjusted EBITDA financial covenant for periods ending after December 31, 2016. At March 31, 2017 , we had $0.6 million of outstanding letters of credit, no revolving loans outstanding under the Loan Agreement and no term loans outstanding after making the final payment on our loan obligation during the first quarter of 2017. We were in compliance with all covenants as of March 31, 2017 .

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies We have $16.7 million of future payments under our operating leases and $11.8 million of commitments under non-cancelable purchase orders at March 31, 2017 . These non-cancelable purchase order commitments will be filled at various times through the fourth quarter of 2019 . As of March 31, 2017 , our longest operating lease expires in October 2022 .

Statements of Cash Flows

Statements of Cash Flows	3 Months Ended
	Mar. 31, 2017
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): Three Months Ended March 31, 2017 2016 Supplemental Cash Flow Information Cash paid for interest $ 12 $ 21 Cash paid for income taxes 131 187 Supplemental Non-Cash Information Construction costs funded by landlord tenant improvement allowance $ 627 $ —

Related-Party Transactions

Related-Party Transactions	3 Months Ended
	Mar. 31, 2017
Related Party Transactions [Abstract]
Related-Party Transactions	Related-Party Transactions Certain members of our board of directors also serve on the board of directors or are employees of certain of our customers and, in some cases, our board members are also investors in these customers. Certain information regarding these customers was as follows (in thousands): March 31, December 31, Accounts receivable $ 441 $ 63 Current deferred revenue 564 372 Non-current deferred revenue — 7 Three Months Ended 2017 2016 Product $ 190 $ 170 Professional services 11 20 Total revenues $ 201 $ 190

New Accounting Pronouncements

New Accounting Pronouncements	3 Months Ended
	Mar. 31, 2017
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. In addition, the standard requires disclosure of the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The FASB has recently issued several amendments to the standard, including clarification on accounting for licenses of intellectual property and identifying performance obligations. The ASU will replace most existing revenue recognition guidance in GAAP when it becomes effective. The new standard, as amended, is effective for annual reporting periods beginning after December 15, 2017, with early adoption permitted for annual reporting periods beginning after December 15, 2016. We do not plan to early adopt, and thus, the new standard will become effective for us on January 1, 2018. The new standard permits adoption either by using (i) a full retrospective approach for all periods presented in the period of adoption or (ii) a modified retrospective approach with the cumulative effect of initially applying the new standard recognized at the date of initial application and providing certain additional disclosures. We currently plan to adopt using the modified retrospective approach. However, our decision regarding the adoption method has not been finalized at this time. Our final determination will depend on a number of factors, such as the significance of the impact of the new standard on our financial results, system readiness, including that of software procured from third-party providers, and our ability to accumulate and analyze the information necessary to assess the impact on prior period financial statements. We are in the initial stages of our assessment of the impact of the new standard on our accounting policies, processes and system requirements. We have assigned internal resources and engaged third party service providers to assist with the assessment and implementation and we have made, and will continue to make, investments in systems to enable timely and accurate reporting under the new standard. Although we have not concluded what impact the new standard will have, we anticipate the impact on our consolidated financial statements will be material. We currently believe the most significant impact relates to our accounting for software license revenue and professional services revenue. Under current industry-specific software revenue recognition guidance, we have historically concluded that we did not have vendor-specific objective evidence ("VSOE") of fair value for the undelivered services related to time-based licenses, and, accordingly, we have recognized time-based licenses and related services ratably over the subscription term. Professional services included in an arrangement with subscription revenue have also been recognized ratably over the subscription term. The new standard does not retain the concept of VSOE, and, thus, requires an evaluation of whether time-based licenses and related services, including professional services, are distinct performance obligations and, therefore, should be separately recognized at a point in time or over time. Based on our current assessment, we expect that software license revenue and professional services revenue, bundled with other elements, will be recognized upon delivery after adoption of the new standard. We expect revenue related to support and maintenance, hosting, and standalone professional services to remain substantially unchanged. Due to the complexity of certain of our software license subscription contracts, the actual revenue recognition treatment required under the standard will be dependent on contract-specific terms, and may vary in some instances from recognition at the time of delivery. We have also considered the impact of the guidance in ASC 340-40, Other Assets and Deferred Costs; Contracts with Customers, with respect to capitalization and amortization of incremental costs of obtaining a contract. The new cost guidance, as interpreted by the FASB Transition Resource Group for Revenue Recognition (“TRG”), requires the capitalization of all incremental costs to obtain a contract with a customer that would not have been incurred if the contract had not been obtained, provided the costs are expected to be recovered. The new cost guidance also requires entities to determine whether the costs relate to specific anticipated contracts, potentially extending the amortization period beyond the initial contract period. We currently believe this guidance will result in capitalizing additional costs of obtaining a contract with a customer, including additional sales commissions, and that the period of benefit for deferred commission costs will likely be longer than the initial contract period. Under our current accounting policy, we amortize the capitalized costs over the underlying contractual period. While we continue to assess the potential impacts of the new standard, including the areas described above, and anticipate this standard will have a material impact on our consolidated financial statements, we do not know, and cannot reasonably estimate, quantitative information related to the impact of the new standard on our financial statements at this time. In February 2016, the FASB issued ASU No. 2016-02, "Leases," which, among other things, requires lessees to recognize most leases on-balance sheet. This will increase a lessee's reported assets and liabilities, in some cases very significantly. Lessor accounting remains substantially similar to current GAAP. ASU 2016-02 supersedes Topic 840, Leases. ASU 2016-02 is effective for us for annual and interim periods in fiscal years beginning after December 15, 2018. ASU 2016-02 mandates a modified retrospective transition method for all entities. While we are currently assessing the impact ASU 2016-02 will have on our consolidated financial statements, we expect the primary impact to our consolidated financial position upon adoption will be the recognition, on a discounted basis, of our minimum commitments under non-cancelable operating leases on our consolidated balance sheets, resulting in the recording of right of use assets and lease obligations. Our current minimum commitments under non-cancelable operating leases are disclosed in Note 9. In January 2017, the FASB issued ASU 2017-01, "Business Combinations (Topic 805) - Clarifying the Definition of a Business." ASU 2017-01 clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. ASU 2017-01 is effective for public companies' annual periods, including interim periods within those fiscal years, beginning after December 15, 2017 and should be applied prospectively on or after the effective date. We do not expect the adoption of ASU 2017-01 to have a material effect on our financial position, results of operations or cash flows. In January 2017, the FASB issued ASU 2017-04, "Intangibles - Goodwill and Other (Topic 350) - Simplifying the Test for Goodwill Impairment." ASU 2017-04 simplifies the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test, which required an entity to determine the fair value of its assets and liabilities at the impairment testing date. ASU 2017-04 is effective for public companies' annual periods, including interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted. We do not expect the adoption of ASU 2017-04 to have a material effect on our financial position, results of operations or cash flows. Accounting Pronouncements Recently Adopted In March 2016, the FASB issued ASU 2016-09, "Compensation - Stock Compensation (Topic 718) - Improvements to Employee Share-Based Payment Accounting." ASU 2016-09 simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 is effective for public companies' annual periods, including interim periods within those fiscal years, beginning after December 15, 2016. We adopted ASU 2016-09 on January 1, 2017. As a result of the adoption, we recorded a cumulative-effect adjustment for previously unrecognized excess tax benefits resulting from equity awards of $31.1 million in opening retained earnings and deferred tax assets as of January 1, 2017. The entire cumulative-effect adjustment was offset by an equal amount of additional valuation allowance, and accordingly the net impact on deferred tax assets and retained earnings was zero . The ending valuation allowance as of March 31, 2017, after adjusting for the cumulative-effect adjustment, is $154.9 million . Beginning on January 1, 2017, we are recording excess tax benefits and tax deficiencies resulting from equity awards as a component of income tax expense. For the three months ended March 31, 2017, the excess tax benefit recorded in income tax expense was $0.2 million , which was offset by an increase in our valuation allowance. The adoption of ASU 2016-09 does not result in a change to classification of cash paid for employee taxes in the statements of cash flows. Cash paid for employee taxes have historically been recorded as cash flows from financing activities, consistent with the requirements of the new standard.

Restructuring

Restructuring	3 Months Ended
	Mar. 31, 2017
Restructuring and Related Activities [Abstract]
Restructuring	Restructuring In May 2016, our board of directors approved a restructuring plan (the “2016 Realignment Plan”) to ensure that we have the correct cost structure and go-to-market strategies in place to achieve our desired corporate and operating results going forward, align our operations with evolving business needs and improve efficiencies. During the three months ended March 31, 2017 , restructuring charges under the 2016 Realignment Plan included $ 0.4 million in employee termination costs and were included as restructuring expenses on our Consolidated Statements of Operations. The 2016 Realignment Plan included a reduction in our workforce that resulted in the termination of approximately 14% of our personnel across our global operations and was substantially completed by September 30, 2016. The restructuring accrual, which is included in accrued payroll and related liabilities, is expected to be paid in full during the second quarter of 2017. Changes in the restructuring accrual during the three months ended March 31, 2017 were as follows (in thousands): Severance Costs Balance of restructuring accrual, December 31, 2016 $ 82 Charges incurred 442 Cash payments made (99 ) Balance of restructuring accrual, March 31, 2017 $ 425

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2017
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events On April 30, 2017, we entered into the Merger Agreement to be acquired by ESW Capital, through its affiliate Wave Systems Corp. Under the terms of the Merger Agreement, Acquisition Sub will commence the Tender Offer for all of the outstanding shares of our common stock for $5.25 in cash per share. Completion of the Tender Offer and the Merger is subject to customary closing conditions, including a majority of the outstanding shares having been tendered in the Tender Offer and clearance under the Hart-Scott-Rodino (HSR) Antitrust Improvements Act of 1976. For more information about the Tender Offer and the Merger, please see the tender offer materials that Wave Systems Corp. Jazz Merger Sub and ESW Capital will file with the SEC upon commencement of the Tender Offer and the Solicitation/Recommendation Statement on Schedule 14D-9 that we will file with the SEC upon commencement of the Tender Offer. Other than transaction expenses associated with the proposed Merger of $0.4 million for the three months ended March 31, 2017, the terms of the Merger Agreement did not impact our condensed consolidated financial statements.

Stock-Based Awards and Stock-21

Stock-Based Awards and Stock-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock Option Activity and Stock Options Outstanding	Certain information regarding stock plan activity for the three -month period ended March 31, 2017 and stock options outstanding as of March 31, 2017 was as follows: Shares Outstanding Weighted Weighted Aggregate Balances, December 31, 2016 3,859,304 7,255,759 $ 4.20 Additional shares reserved 3,072,200 Granted – stock options (141,750 ) 141,750 4.20 Forfeited – stock options 70,932 (70,932 ) 5.03 Exercised – stock options (4,076 ) 3.14 Granted – restricted stock units ("RSUs") (1,783,100 ) Forfeited – RSUs 145,030 Vested RSUs adjusted for taxes 70,083 Balances, March 31, 2017 5,292,699 7,322,501 $ 4.19 5.65 $ 8,420 Exercisable at March 31, 2017 4,310,756 $ 4.13 3.44 $ 7,238 Vested and expected to vest 7,111,156 $ 4.18 5.57 $ 8,336
Schedule of Restricted Stock Activity	Restricted stock activity was as follows: Number Weighted average Balances, December 31, 2016 5,092,286 $ 4.85 Granted – RSUs 1,783,100 4.20 Vested – RSUs (494,792 ) 4.65 Forfeited – RSUs (145,030 ) 4.98 Balances, March 31, 2017 6,235,564 4.68
Stock-Based Compensation Expense Included in Consolidated Statements of Operations	Stock-based compensation expense was included in our Consolidated Statements of Operations as follows (in thousands): Three Months Ended 2017 2016 Cost of revenues $ 540 $ 616 Research and development 1,017 916 Sales and marketing 854 815 General and administrative 1,602 1,289 $ 4,013 $ 3,636

Net Loss Per Share (Tables)

Net Loss Per Share (Tables)	3 Months Ended
	Mar. 31, 2017
Earnings Per Share [Abstract]
Schedule of Historical 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): Three Months Ended 2017 2016 Numerator: Net loss $ (1,626 ) $ (7,409 ) Denominator: Weighted-average shares used to compute net loss per share, basic and diluted 78,974 76,488 Net loss per share, basic and diluted $ (0.02 ) $ (0.10 )
Summary of Potentially Dilutive Securities That Are Not Included in Diluted Per Share	Potentially dilutive securities that are not included in the diluted per share calculations because they would be anti-dilutive were as follows: As of March 31, 2017 2016 Shares subject to outstanding common stock options 7,322,501 7,232,080 Unvested restricted common stock 6,235,564 5,658,584 Purchase rights from the ESPP 61,724 281,148 13,619,789 13,171,812

Goodwill and Intangible Asset23

Goodwill and Intangible Assets, Net (Tables)	3 Months Ended
	Mar. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets and their Related Useful Lives	The following table presents our intangible assets and their related useful lives (dollars in thousands): Useful March 31, 2017 December 31, 2016 Acquired technology 5-7 years $ 20,441 $ 20,441 Accumulated amortization (18,880 ) (18,474 ) 1,561 1,967 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 (2,028 ) (2,028 ) — — Other 2-7 years 1,939 1,939 Accumulated amortization (1,939 ) (1,939 ) — — Total intangible assets, net $ 1,561 $ 1,967
Amortization Expense Related to Intangible Assets	Amortization expense related to intangible assets was as follows (in thousands): Three Months Ended March 31, 2017 2016 $406 $1,038
Expected Future Amortization Expense	Expected future amortization expense as of March 31, 2017 is as follows (in thousands): Remainder of 2017 $ 1,181 2018 380 $ 1,561

Cash, Cash Equivalents and Ma24

Cash, Cash Equivalents and Marketable Securities (Tables)	3 Months Ended
	Mar. 31, 2017
Cash and Cash Equivalents [Abstract]
Cash, Cash Equivalents and Marketable Securities	Cash, cash equivalents and marketable securities consisted of the following (in thousands): March 31, 2017 Description Cost Unrealized Unrealized Estimated Cash $ 24,413 $ — $ — $ 24,413 Cash equivalents: Commercial paper 1,697 — — 1,697 Money market mutual funds 15,625 — — 15,625 Corporate notes and bonds 900 — — 900 Total cash and cash equivalents 42,635 — — 42,635 Short-term marketable securities: Commercial paper 11,978 — — 11,978 Corporate notes and bonds 33,729 — (23 ) 33,706 Government obligations 3,002 — (2 ) 3,000 U.S. agency obligations 27,429 — (20 ) 27,409 Total short-term marketable securities 76,138 — (45 ) 76,093 Marketable securities, noncurrent: Corporate notes and bonds 1,601 — (1 ) 1,600 Cash, cash equivalents, short-term marketable securities and marketable securities, noncurrent $ 120,374 $ — $ (46 ) $ 120,328 December 31, 2016 Description Cost Unrealized Unrealized Estimated Cash $ 13,434 $ — $ — $ 13,434 Cash equivalents: Money market mutual funds 16,126 — — 16,126 Total cash and cash equivalents 29,560 — — 29,560 Short-term marketable securities: Commercial paper 11,664 — — 11,664 Corporate notes and bonds 35,555 — (37 ) 35,518 Government obligations 5,004 — (1 ) 5,003 U.S. agency obligations 27,479 — (8 ) 27,471 Total short-term marketable securities 79,702 — (46 ) 79,656 Cash, cash equivalents and short-term marketable securities $ 109,262 $ — $ (46 ) $ 109,216
Estimated Fair Value of Investments in Marketable Securities, Available-for-Sale, Classified by Contractual Maturity Date	As of March 31, 2017 , 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 $ 76,093 Due within 1 year through 3 years 1,600 Total marketable securities $ 77,693

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2017
Fair Value Disclosures [Abstract]
Financial Assets Measured at Fair Value on Recurring Basis	The following tables present our financial assets that are measured at fair value on a recurring basis (in thousands): March 31, 2017 Level 1 Level 2 Level 3 Total Assets: Cash equivalents Commercial paper $ — $ 1,697 $ — $ 1,697 Money market mutual funds 15,625 — — 15,625 Corporate notes and bonds — 900 — 900 Total cash equivalents 15,625 2,597 — 18,222 Marketable securities Commercial paper — 11,978 — 11,978 Corporate notes and bonds — 35,306 — 35,306 Government obligations — 3,000 — 3,000 U.S. agency obligations — 27,409 — 27,409 Total marketable securities — 77,693 — 77,693 Total $ 15,625 $ 80,290 $ — $ 95,915 December 31, 2016 Level 1 Level 2 Level 3 Total Assets: Cash equivalents Money market mutual funds $ 16,126 $ — $ — $ 16,126 Marketable securities Commercial paper — 11,664 — 11,664 Corporate notes and bonds — 35,518 — 35,518 Government obligations — 5,003 — 5,003 U.S. agency obligations — 27,471 — 27,471 Total marketable securities — 79,656 — 79,656 Total $ 16,126 $ 79,656 $ — $ 95,782

Statements of Cash Flows (Table

Statements of Cash Flows (Tables)	3 Months Ended
	Mar. 31, 2017
Supplemental Cash Flow Elements [Abstract]
Summary of Supplemental Cash Flows Information	The summary of supplemental cash flows information is as follows (in thousands): Three Months Ended March 31, 2017 2016 Supplemental Cash Flow Information Cash paid for interest $ 12 $ 21 Cash paid for income taxes 131 187 Supplemental Non-Cash Information Construction costs funded by landlord tenant improvement allowance $ 627 $ —

Related-Party Transactions (Tab

Related-Party Transactions (Tables)	3 Months Ended
	Mar. 31, 2017
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 or are employees of certain of our customers and, in some cases, our board members are also investors in these customers. Certain information regarding these customers was as follows (in thousands): March 31, December 31, Accounts receivable $ 441 $ 63 Current deferred revenue 564 372 Non-current deferred revenue — 7 Three Months Ended 2017 2016 Product $ 190 $ 170 Professional services 11 20 Total revenues $ 201 $ 190

Restructuring (Tables)

Restructuring (Tables)	3 Months Ended
	Mar. 31, 2017
Restructuring and Related Activities [Abstract]
Changes in the Restructuring Accrual	Changes in the restructuring accrual during the three months ended March 31, 2017 were as follows (in thousands): Severance Costs Balance of restructuring accrual, December 31, 2016 $ 82 Charges incurred 442 Cash payments made (99 ) Balance of restructuring accrual, March 31, 2017 $ 425

Stock-Based Awards and Stock-29

Stock-Based Awards and Stock-Based Compensation - Additional Information (Detail)	1 Months Ended	3 Months Ended
	May 31, 2015USD ($)offering_periodpurchase_dateshares	Mar. 31, 2017USD ($)shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized stock-based compensation | $		$ 29,400,000
Weighted average remaining vesting period		2 years 2 months 13 days
2015 Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock reserved for future 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 purchase dates per offering period | purchase_date	2
Period between purchase dates	6 months
Number of available offering periods to participants | offering_period	1
Discount from market price (percent)	85.00%
Shares issued (shares)		0
2011 Plan
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 percentage of total shares outstanding (percent)		3.90%
2011 Plan | Minimum | RSU and PSU
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted options vesting period		1 year
2011 Plan | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted options expiration period		10 years
2011 Plan | Maximum | RSU and PSU
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted options vesting period		4 years

Stock-Based Awards and Stock-30

Stock-Based Awards and Stock-Based Compensation - Stock Plan Activity (Detail) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)$ / sharesshares
Shares Available for Grant
Beginning balance (shares)	3,859,304
Additional shares reserved (shares)	3,072,200
Granted – stock options (shares)	(141,750)
Forfeited – stock options, balance (shares)	70,932
Ending balance (shares)	5,292,699
Outstanding Stock Options
Beginning balance (shares)	7,255,759
Granted - stock options (shares)	141,750
Forfeited - stock options (shares)	(70,932)
Exercised - stock options (shares)	(4,076)
Ending balance (shares)	7,322,501
End of period exercisable balance (shares)	4,310,756
Vested and expected to vest (shares)	7,111,156
Weighted average exercise price
Beginning balance (usd per share) | $ / shares	$ 4.20
Granted - stock options (usd per share) | $ / shares	4.20
Forfeited - stock options (usd per share) | $ / shares	5.03
Exercised - stock options (usd per share) | $ / shares	3.14
Ending balance (usd per share) | $ / shares	4.19
End of period exercisable balance (usd per share) | $ / shares	4.13
Vested and expected to vest (usd per share) | $ / shares	$ 4.18
Weighted average remaining life (in years)
End of period balance (in years)	5 years 7 months 24 days
End of period exercisable balance (in years)	3 years 5 months 8 days
Vested and expected to vest (in years)	5 years 6 months 25 days
Aggregate intrinsic value (in thousands)
End of period balance | $	$ 8,420
End of period balance | $	7,238
Vested and expected to vest | $	$ 8,336
RSUs
Shares Available for Grant
Granted – RSUs, balance (shares)	(1,783,100)
Forfeited (shares)	145,030
Vested RSUs adjusted for taxes (shares)	70,083

Stock-Based Awards and Stock-31

Stock-Based Awards and Stock-Based Compensation - Schedule of Restricted Stock Activity (Detail) - RSUs	3 Months Ended
	Mar. 31, 2017$ / sharesshares
Number of shares
Beginning balances (shares) | shares	5,092,286
Granted (shares) | shares	1,783,100
Vested (shares) | shares	(494,792)
Forfeited (shares) | shares	(145,030)
Ending balances (shares) | shares	6,235,564
Weighted average grant date fair value
Beginning balances (usd per share) | $ / shares	$ 4.85
Granted (usd per share) | $ / shares	4.20
Vested (usd per share) | $ / shares	4.65
Forfeited (usd per share) | $ / shares	4.98
Ending balances (usd per share) | $ / shares	$ 4.68

Stock-Based Awards and Stock-32

Stock-Based Awards and Stock-Based Compensation - Stock-Based Compensation Expense Included in Consolidated Statements of Operations (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Allocated stock-based compensation expense	$ 4,013	$ 3,636
Cost of revenues
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Allocated stock-based compensation expense	540	616
Research and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Allocated stock-based compensation expense	1,017	916
Sales and marketing
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Allocated stock-based compensation expense	854	815
General and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Allocated stock-based compensation expense	$ 1,602	$ 1,289

Net Loss Per Share - Schedule o

Net Loss Per Share - Schedule of Historical Basic and Diluted Net Loss Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Numerator:
Net loss	$ (1,626)	$ (7,409)
Denominator:
Weighted-average shares used to compute net loss per share, basic and diluted	78,974	76,488
Net loss per share, basic and diluted (usd per share)	$ (0.02)	$ (0.10)

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	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share amount (shares)	13,619,789	13,171,812
Shares subject to outstanding common stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share amount (shares)	7,322,501	7,232,080
Unvested restricted common stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share amount (shares)	6,235,564	5,658,584
Purchase rights from the ESPP
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share amount (shares)	61,724	281,148

Goodwill and Intangible Asset35

Goodwill and Intangible Assets, Net - Intangible Assets and their Related Useful Lives (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Finite-Lived Intangible Assets [Line Items]
Intangible assets, Accumulated amortization	$ (25,277)	$ (24,871)
Intangible assets, net	1,561	1,967
Acquired technology
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	20,441	20,441
Intangible assets, Accumulated amortization	(18,880)	(18,474)
Intangible assets, net	$ 1,561	1,967
Acquired technology | Minimum
Finite-Lived Intangible Assets [Line Items]
Intangible assets, useful life	5 years
Acquired technology | Maximum
Finite-Lived Intangible Assets [Line Items]
Intangible assets, useful life	7 years
Perpetual software licenses
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
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	2,028	2,028
Intangible assets, Accumulated amortization	(2,028)	(2,028)
Intangible assets, net	$ 0	0
Covenant not to compete | Minimum
Finite-Lived Intangible Assets [Line Items]
Intangible assets, useful life	1 year
Covenant not to compete | Maximum
Finite-Lived Intangible Assets [Line Items]
Intangible assets, useful life	4 years
Other
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	$ 1,939	1,939
Intangible assets, Accumulated amortization	(1,939)	(1,939)
Intangible assets, net	$ 0	$ 0
Other | Minimum
Finite-Lived Intangible Assets [Line Items]
Intangible assets, useful life	2 years
Other | Maximum
Finite-Lived Intangible Assets [Line Items]
Intangible assets, useful life	7 years

Goodwill and Intangible Asset36

Goodwill and Intangible Assets, Net - Amortization Expense Related to Intangible Assets (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense related to intangible assets	$ 406	$ 1,038

Goodwill and Intangible Asset37

Goodwill and Intangible Assets, Net - Expected Future Amortization Expense (Detail) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Remainder of 2017	$ 1,181
2,018	380
Intangible assets, net	$ 1,561	$ 1,967

Cash, Cash Equivalents and Ma38

Cash, Cash Equivalents and Marketable Securities - Cash, Cash Equivalents and Marketable Securities (Detail) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016	Mar. 31, 2016	Dec. 31, 2015
Investment Holdings [Line Items]
Cash, cost and estimated fair value	$ 24,413	$ 13,434
Cash and cash equivalents, cost and estimated fair value	42,635	29,560	$ 19,251	$ 9,870
Unrealized Gains	0	0
Unrealized Losses	(46)	(46)
Estimated Fair Value	77,693
Cash, cash equivalents, short-term marketable securities and marketable securities, noncurrent, cost	120,374	109,262
Cash, cash equivalents, short-term marketable securities and marketable securities, noncurrent, estimated fair value	120,328	109,216
Commercial paper
Investment Holdings [Line Items]
Cash equivalents, cost and estimated fair value	1,697
Money market mutual funds
Investment Holdings [Line Items]
Cash equivalents, cost and estimated fair value	15,625	16,126
Corporate notes and bonds
Investment Holdings [Line Items]
Cash equivalents, cost and estimated fair value	900
Short-term marketable securities
Investment Holdings [Line Items]
Cost	76,138	79,702
Unrealized Gains	0	0
Unrealized Losses	(45)	(46)
Estimated Fair Value	76,093	79,656
Short-term marketable securities | Commercial paper
Investment Holdings [Line Items]
Cost	11,978	11,664
Unrealized Gains	0	0
Unrealized Losses	0	0
Estimated Fair Value	11,978	11,664
Short-term marketable securities | Corporate notes and bonds
Investment Holdings [Line Items]
Cost	33,729	35,555
Unrealized Gains	0	0
Unrealized Losses	(23)	(37)
Estimated Fair Value	33,706	35,518
Short-term marketable securities | Government obligations
Investment Holdings [Line Items]
Cost	3,002	5,004
Unrealized Gains	0	0
Unrealized Losses	(2)	(1)
Estimated Fair Value	3,000	5,003
Short-term marketable securities | U.S. agency obligations
Investment Holdings [Line Items]
Cost	27,429	27,479
Unrealized Gains	0	0
Unrealized Losses	(20)	(8)
Estimated Fair Value	27,409	$ 27,471
Marketable securities, noncurrent | Corporate notes and bonds
Investment Holdings [Line Items]
Cost	1,601
Unrealized Gains	0
Unrealized Losses	(1)
Estimated Fair Value	$ 1,600

Cash, Cash Equivalents and Ma39

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	Mar. 31, 2017	Dec. 31, 2016
Cash and Cash Equivalents [Abstract]
Due within 1 year	$ 76,093	$ 79,656
Due within 1 year through 3 years	1,600	$ 0
Total marketable securities	$ 77,693

Fair Value Measurements (Detail

Fair Value Measurements (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Assets
Marketable securities	$ 77,693,000
Other-than-temporary impairments	0	$ 0
Fair value measurements, recurring
Assets
Cash equivalents	18,222,000
Marketable securities	77,693,000		$ 79,656,000
Total	95,915,000		95,782,000
Fair value measurements, recurring | Commercial paper
Assets
Marketable securities	11,978,000		11,664,000
Fair value measurements, recurring | Corporate notes and bonds
Assets
Marketable securities	35,306,000		35,518,000
Fair value measurements, recurring | Government obligations
Assets
Marketable securities	3,000,000		5,003,000
Fair value measurements, recurring | U.S. agency obligations
Assets
Marketable securities	27,409,000		27,471,000
Fair value measurements, recurring | Commercial paper
Assets
Cash equivalents	1,697,000
Fair value measurements, recurring | Money market mutual funds
Assets
Cash equivalents	15,625,000		16,126,000
Fair value measurements, recurring | Corporate notes and bonds
Assets
Cash equivalents	900,000
Fair value measurements, recurring | Level 1
Assets
Cash equivalents	15,625,000
Marketable securities	0		0
Total	15,625,000		16,126,000
Fair value measurements, recurring | Level 1 | Commercial paper
Assets
Marketable securities	0		0
Fair value measurements, recurring | Level 1 | Corporate notes and bonds
Assets
Marketable securities	0		0
Fair value measurements, recurring | Level 1 | Government obligations
Assets
Marketable securities	0		0
Fair value measurements, recurring | Level 1 | U.S. agency obligations
Assets
Marketable securities	0		0
Fair value measurements, recurring | Level 1 | Commercial paper
Assets
Cash equivalents	0
Fair value measurements, recurring | Level 1 | Money market mutual funds
Assets
Cash equivalents	15,625,000		16,126,000
Fair value measurements, recurring | Level 1 | Corporate notes and bonds
Assets
Cash equivalents	0
Fair value measurements, recurring | Level 2
Assets
Cash equivalents	2,597,000
Marketable securities	77,693,000		79,656,000
Total	80,290,000		79,656,000
Fair value measurements, recurring | Level 2 | Commercial paper
Assets
Marketable securities	11,978,000		11,664,000
Fair value measurements, recurring | Level 2 | Corporate notes and bonds
Assets
Marketable securities	35,306,000		35,518,000
Fair value measurements, recurring | Level 2 | Government obligations
Assets
Marketable securities	3,000,000		5,003,000
Fair value measurements, recurring | Level 2 | U.S. agency obligations
Assets
Marketable securities	27,409,000		27,471,000
Fair value measurements, recurring | Level 2 | Commercial paper
Assets
Cash equivalents	1,697,000
Fair value measurements, recurring | Level 2 | Money market mutual funds
Assets
Cash equivalents	0		0
Fair value measurements, recurring | Level 2 | Corporate notes and bonds
Assets
Cash equivalents	900,000
Fair value measurements, recurring | Level 3
Assets
Cash equivalents	0
Marketable securities	0		0
Total	0		0
Fair value measurements, recurring | Level 3 | Commercial paper
Assets
Marketable securities	0		0
Fair value measurements, recurring | Level 3 | Corporate notes and bonds
Assets
Marketable securities	0		0
Fair value measurements, recurring | Level 3 | Government obligations
Assets
Marketable securities	0		0
Fair value measurements, recurring | Level 3 | U.S. agency obligations
Assets
Marketable securities	0		0
Fair value measurements, recurring | Level 3 | Commercial paper
Assets
Cash equivalents	0
Fair value measurements, recurring | Level 3 | Money market mutual funds
Assets
Cash equivalents	0		$ 0
Fair value measurements, recurring | Level 3 | Corporate notes and bonds
Assets
Cash equivalents	$ 0

Long-Term Debt (Detail)

Long-Term Debt (Detail) - Secured revolving loan facility and term loan facility	Mar. 31, 2017USD ($)
Debt Instrument [Line Items]
Term loan facility	$ 30,000,000
Letters of credit outstanding	600,000
Revolving loans	0
Term loans	$ 0

Commitments and Contingencies (

Commitments and Contingencies (Detail) $ in Millions	Mar. 31, 2017USD ($)
Commitments and Contingencies Disclosure [Abstract]
Operating leases future payments due	$ 16.7
Commitments under non-cancelable purchase orders	$ 11.8

Statements of Cash Flows (Detai

Statements of Cash Flows (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Supplemental Cash Flow Information
Cash paid for interest	$ 12	$ 21
Cash paid for income taxes	131	187
Supplemental Non-Cash Information
Construction costs funded by landlord tenant improvement allowance	$ 627	$ 0

Related-Party Transactions (Det

Related-Party Transactions (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Related Party Transaction [Line Items]
Current deferred revenue	$ 117,917		$ 127,574
Non-current deferred revenue	12,756		12,285
Customers
Related Party Transaction [Line Items]
Accounts receivable	441		63
Current deferred revenue	564		372
Non-current deferred revenue	0		$ 7
Revenues	201	$ 190
Customers | Product
Related Party Transaction [Line Items]
Revenues	190	170
Customers | Professional services
Related Party Transaction [Line Items]
Revenues	$ 11	$ 20

New Accounting Pronouncements N

New Accounting Pronouncements New Accounting Pronouncements (Details) - USD ($)	3 Months Ended
	Mar. 31, 2017	Jan. 01, 2017	Dec. 31, 2016
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Retained earnings	$ (334,127,000)		$ (332,501,000)
Valuation allowance	154,900,000
Excess tax benefit recorded in income tax expense	$ 200,000
ASU 2016-09
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Deferred tax assets		$ 0
Retained earnings		0
ASU 2016-09 | Retained earnings
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative-effect adjustment		$ 31,100,000

Restructuring - Additional Info

Restructuring - Additional Information (Details) - 2016 Realignment Plan - Severance Costs - USD ($) $ in Millions	3 Months Ended	5 Months Ended
	Mar. 31, 2017	Sep. 30, 2016
Restructuring Cost and Reserve [Line Items]
Restructuring and related charges	$ 0.4
Reduction of workforce (percent)		14.00%

Restructuring - Schedule of Res

Restructuring - Schedule of Restructuring Accrual (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Restructuring Reserve [Roll Forward]
Charges incurred	$ 442	$ 0
2016 Realignment Plan | Severance Costs
Restructuring Reserve [Roll Forward]
Balance of restructuring accrual, December 31, 2016	82
Charges incurred	442
Cash payments made	(99)
Balance of restructuring accrual, March 31, 2017	$ 425

Subsequent Events (Details)

Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2017	Apr. 30, 2017
Subsequent Event [Line Items]
Transaction expenses associated with the proposed Merger	$ 0.4
Subsequent event | Jive
Subsequent Event [Line Items]
Cash share price (usd per share)		$ 5.25