Common Stock and Stockholders' Equity (Deficit) | 6 Months Ended |
Jun. 30, 2014 |
Common Stock and Stockholders' Equity (Deficit) | ' |
Note 8. Common Stock and Stockholders’ Equity (Deficit) |
Convertible Preferred Stock |
Upon the completion of the IPO, all outstanding convertible preferred stock was converted into 34.3 million shares of common stock. |
Reverse Stock Split |
In April 2014, our board of directors and stockholders approved an amendment of our sixth amended and restated certificate of incorporation, as amended to effect a one-for-two reverse stock split of our common stock and a corresponding adjustment to the conversion prices of our redeemable convertible preferred stock. All share and per share information and the conversion prices of each outstanding series of our redeemable convertible preferred stock referenced throughout the condensed consolidated financial statements and notes to the condensed consolidated financial statements have been retroactively adjusted to reflect this stock split. |
Common Stock Authorized |
Upon the completion of the IPO, we increased the amount of common stock authorized for issuance from 125.0 million to 400.0 million common shares with a par value of $0.01 per share. |
Employee Equity Plans |
Employee Stock Purchase Plan |
Our board of directors adopted the Employee Stock Purchase Plan, or ESPP, in February 2014, which became effective on May 14, 2014. The ESPP initially reserved and authorized the issuance of up to 3.6 million shares of common stock. The ESPP provides that the number of shares reserved and available for issuance under the plan will automatically increase each January, beginning on January 1, 2015, by the lesser of 1.5 million shares, 1% of the number of shares issued and outstanding on the immediately preceding December 31, or such lesser number of shares as determined by our compensation committee. |
2009 Stock Option and Grant Plan |
Our board of directors adopted the 2009 Stock Option and Grant Plan, or the 2009 Plan, in July 2009. The 2009 Plan was terminated in connection with our IPO, and accordingly, no shares are available for issuance under this plan. The 2009 Plan continues to govern outstanding awards granted thereunder. |
2014 Stock Option and Grant Plan |
Our board of directors adopted the 2014 Stock Option and Incentive Plan, or the 2014 Plan, in February 2014, which became effective in May 2014 upon the effectiveness of the registration statement related to our IPO. The 2014 Plan serves as the successor to our 2009 Plan. The 2014 Plan initially reserved and authorized the issuance of 7.5 million shares of our common stock. Additionally, shares not issued or subject to outstanding grants under the 2009 Plan rolled into the 2014 Plan, resulting in a total of 8.3 million available shares under the 2014 Plan as of the effective date. The 2014 Plan provides that the number of shares reserved and available for issuance under the plan will automatically increase each January 1, beginning on January 1, 2015, by 5% of the outstanding number of shares of our common stock on the immediately preceding December 31, or such lesser number of shares as determined by our compensation committee. |
The following table summarizes our stock option and RSU award activities for the six months ended June 30, 2014 (in thousands, except per share information): |
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| | | | | Options Outstanding | | | RSUs Outstanding | |
| | | | | | | | | | | | | Weighted | | | | | | | | | | | | | |
| | | | | | | | | | | | | Average | | | | | | | | | | | Weighted | |
| Shares | | | | | | | Weighted | | | Remaining | | | Aggregate | | | | | | | Average | |
| Available | | | Number of | | | Average | | | Contractual | | | Intrinsic | | | Outstanding | | | Grant Date | |
| for Grant | | | Shares | | | Exercise Price | | | Term | | | Value | | | RSUs | | | Fair Value | |
| | | | | | | | | | | | | (In years) | | | | | | | | | | | | | |
Outstanding — January 1, 2014 | | 1,854 | | | | 10,134 | | | $ | 2.82 | | | | | | | | | | | | 811 | | | $ | 6.76 | |
Increase in authorized shares | | 13,750 | | | | | | | | | | | | | | | | | | | | | | | | | |
Stock options granted | | (5,468 | ) | | | 5,468 | | | | 9.64 | | | | | | | | | | | | | | | | | |
RSUs granted | | (1,897 | ) | | | | | | | | | | | | | | | | | | | 1,897 | | | | 11.45 | |
Stock options exercised | | — | | | | (893 | ) | | | 2.94 | | | | | | | | | | | | | | | | | |
RSUs vested | | — | | | | | | | | | | | | | | | | | | | | (150 | ) | | | 7.77 | |
Stock options forfeited or canceled | | 354 | | | | (354 | ) | | | 4.4 | | | | | | | | | | | | | | | | | |
RSUs forfeited or cancelled | | 182 | | | | — | | | | — | | | | | | | | | | | | (182 | ) | | | 7.64 | |
Outstanding — June 30, 2014 | | 8,775 | | | | 14,355 | | | $ | 5.38 | | | | 8.41 | | | $ | 172,283 | | | | 2,376 | | | $ | 10.37 | |
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Aggregate intrinsic value represents the difference between the Company's closing stock price of its common stock and the exercise price of outstanding, in-the-money options. The Company’s closing stock price as reported on the New York Stock Exchange as of June 30, 2014 was $17.38. |
Early Exercise of Stock Options and Purchase of Unvested Stock Awards |
Certain stock options awarded under the 2009 Plan permit early exercise. Common stock purchased pursuant to an early exercise of stock options or unvested stock awards is not deemed to be outstanding for financial reporting purposes until those shares vest. Therefore, cash received in exchange for unvested shares is recorded as a liability and is transferred into common stock and additional paid-in capital as the shares vest. Upon termination of service, we may, at our discretion, repurchase unvested shares acquired through early exercise of stock options or purchase of unvested stock awards at a price equal to the price per share paid upon the exercise of such options or the purchase of such unvested stock awards. As of June 30, 2014 and December 31, 2013, there were 0.8 million shares outstanding as a result of the early exercise of stock options and purchase of unvested stock awards that were classified as accrued liabilities for an aggregated amount of $2.8 million and $1.4 million, respectively. There were no repurchases during the six months ended June 30, 2014. |
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