Zendesk (ZEN) 10-Q 7 Aug 15 2015 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Jul. 31, 2015
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q2
Trading Symbol	ZEN
Entity Registrant Name	Zendesk, Inc.
Entity Central Index Key	1,463,172
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		87,990,742

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Current Assets:
Cash and cash equivalents	$ 255,669	$ 80,265
Marketable securities	30,672	42,204
Accounts receivable, net of allowance for doubtful accounts of $626 and $264 as of June 30, 2015 and December 31, 2014, respectively	14,600	11,523
Prepaid expenses and other current assets	8,731	5,013
Total current assets	309,672	139,005
Marketable securities, noncurrent	22,820	9,205
Property and equipment, net	45,621	41,895
Goodwill and intangible assets, net	13,028	14,152
Other assets	2,282	1,531
Total assets	393,423	205,788
Current liabilities:
Accounts payable	4,079	4,763
Accrued liabilities	7,969	7,841
Accrued compensation and related benefits	9,674	11,738
Deferred revenue	64,168	50,756
Current portion of credit facility		3,041
Current portion of capital leases		10
Total current liabilities	85,890	78,149
Deferred revenue, noncurrent	715	823
Credit facility, noncurrent		3,911
Other liabilities	9,988	9,199
Total liabilities	$ 96,593	$ 92,082
Commitments and contingencies (Note 7)
Stockholders’ equity:
Preferred stock
Common stock	$ 880	$ 755
Additional paid-in capital	469,855	246,000
Accumulated other comprehensive loss	(734)	(528)
Accumulated deficit	(172,519)	(131,869)
Treasury stock at cost (0.5 million shares as of June 30, 2015 and December 31, 2014)	(652)	(652)
Total stockholders’ equity	296,830	113,706
Total liabilities and stockholders’ equity	$ 393,423	$ 205,788

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands, shares in Millions	Jun. 30, 2015	Dec. 31, 2014
Statement Of Financial Position [Abstract]
Allowance for doubtful accounts	$ 626	$ 264
Treasury stock, shares	0.5	0.5

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Income Statement [Abstract]
Revenue		$ 48,227	$ 29,506	$ 90,461	$ 54,598
Cost of revenue	[1]	16,162	11,731	30,452	20,726
Gross profit		32,065	17,775	60,009	33,872
Operating expenses:
Research and development	[1]	14,227	10,499	27,485	15,677
Sales and marketing	[1]	27,242	20,339	50,645	34,626
General and administrative	[1]	11,536	8,315	21,663	14,699
Total operating expenses	[1]	53,005	39,153	99,793	65,002
Operating loss		(20,940)	(21,378)	(39,784)	(31,130)
Other expense, net		(343)	(450)	(574)	(909)
Loss before provision for (benefit from) income taxes		(21,283)	(21,828)	(40,358)	(32,039)
Provision for (benefit from) income taxes		199	(85)	292	(36)
Net loss		(21,482)	(21,743)	(40,650)	(32,003)
Accretion of redeemable convertible preferred stock			(6)		(18)
Net loss attributable to common stockholders		$ (21,482)	$ (21,749)	$ (40,650)	$ (32,021)
Net loss per share attributable to common stockholders, basic and diluted		$ (0.25)	$ (0.48)	$ (0.50)	$ (0.93)
Weighted-average shares used to compute net loss per share attributable to common stockholders, basic and diluted		86,390	45,760	81,390	34,325
[1]	Includes share-based compensation expense as follows:

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Cost of Revenue
Share-based compensation expense	$ 1,114	$ 1,010	$ 2,004	$ 1,100
Research and Development
Share-based compensation expense	4,446	4,168	8,510	4,478
Sales and Marketing
Share-based compensation expense	3,937	3,268	6,369	3,758
General and Administrative
Share-based compensation expense	$ 3,890	$ 2,537	$ 6,731	$ 3,471

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Statement Of Income And Comprehensive Income [Abstract]
Net loss	$ (21,482)	$ (21,743)	$ (40,650)	$ (32,003)
Other comprehensive loss, net of tax:
Net change in unrealized gain (loss) on available-for- sale investments	(8)	(7)	32	(8)
Foreign currency translation gain (loss)	203	123	(238)	320
Comprehensive loss	$ (21,287)	$ (21,627)	$ (40,856)	$ (31,691)

CONDENSED CONSOLIDATED STATEME7

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Cash flows from operating activities
Net loss	$ (40,650)	$ (32,003)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	8,804	4,504
Share-based compensation	23,614	12,807
Other	318	178
Excess tax benefit from share-based award activity	(95)
Changes in operating assets and liabilities:
Accounts receivable	(3,390)	(1,857)
Prepaid expenses and other current assets	(3,261)	(2,617)
Other assets and liabilities	(1,365)	490
Accounts payable	(1,063)	(535)
Accrued liabilities	1,270	872
Accrued compensation and related benefits	(2,259)	3,426
Deferred revenue	13,304	9,647
Net cash used in operating activities	(4,773)	(5,088)
Cash flows from investing activities
Purchases of property and equipment	(7,406)	(13,097)
Internal-use software development costs	(2,383)	(3,915)
Purchases of marketable securities	(35,847)	(6,464)
Proceeds from maturities of marketable securities	18,020	6,250
Proceeds from sale of marketable securities	15,317
Cash paid for the acquisition of Zopim, net of cash acquired	(548)	(1,896)
Net cash used in investing activities	(12,847)	(19,122)
Cash flows from financing activities
Proceeds from initial public offering, net of issuance costs		104,377
Proceeds from follow-on public offering, net of issuance costs	190,110
Proceeds from exercise of employee stock options	4,976	3,372
Taxes paid related to net share settlement of equity awards	(203)	(969)
Proceeds from issuance of common stock from employee stock purchase plan	4,948
Proceeds from issuance of debt		3,940
Excess tax benefit from share-based award activity	95
Principal payments on debt	(6,952)	(20,000)
Principal payments on capital lease obligations	(10)	(179)
Net cash provided by financing activities	192,964	90,541
Effect of exchange rate changes on cash and cash equivalents	60	(2)
Net increase in cash and cash equivalents	175,404	66,329
Cash and cash equivalents at the beginning of period	80,265	53,725
Cash and cash equivalents at the end of period	255,669	120,054
Supplemental cash flow data:
Cash paid for interest and income taxes	617	660
Non-cash investing and financing activities:
Share-based compensation capitalized in internal-use software development costs	1,262	1,125
Vesting of early exercised stock options	576	810
Purchases of property and equipment in accounts payable and accrued expenses	479	5,001
Property and equipment acquired through tenant improvement allowances	$ 174	3,554
Issuance of common stock for the acquisition of Zopim		10,893
IPO costs in accounts payable		$ 1,145

Overview and Basis of Presentat

Overview and Basis of Presentation	6 Months Ended
	Jun. 30, 2015
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Overview and Basis of Presentation	Note 1. Overview and Basis of Presentation Company and Background Zendesk was founded in Denmark in 2007 and reincorporated in Delaware in April 2009. Our mission is to help organizations and their customers build better relationships. We are a software development company that provides a software-as-a-service, or SaaS, customer service platform. Our platform helps organizations engage with people in new ways that foster long-term customer loyalty and satisfaction. We empower organizations to better answer customers’ questions, and to solve their problems through the channels that people use every day when seeking help, such as email, chat, voice, social media and websites. Our customer service platform also helps people find answers on their own through knowledge bases and communities, capitalizing on the increasing customer preference for self-service. Our customer engagement capabilities allow organizations to proactively serve their customers, reaching out to those who may need help and soliciting feedback about their experience. The openness of our customer service platform makes it easy for organizations to integrate with their other applications. Our customer service platform consolidates the data from customer interactions and provides organizations with powerful analytics and performance benchmarking. References to Zendesk, the “Company”, “our”, or “we” in these notes refer to Zendesk, Inc. and its subsidiaries on a consolidated basis. Basis of Presentation These unaudited condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles, or GAAP, and applicable rules and regulations of the Securities and Exchange Commission, or SEC, regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in our Annual Report on Form 10-K for the year ended December 31, 2014, filed on February 17, 2015. There have been no changes to our significant accounting policies described in the Annual Report on Form 10-K that have had a material impact on our condensed consolidated financial statements and related notes. The consolidated balance sheet as of December 31, 2014 included herein was derived from the audited financial statements as of that date. The unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the financial position, results of operations, our comprehensive loss and cash flows for the interim periods, but are not necessarily indicative of the results of operations to be anticipated for the full year ending December 31, 2015. Follow-On Public Offering In March 2015, we completed a follow-on public offering, in which we issued 8.8 million shares of our common stock at a public offering price of $22.75 per share. We received net proceeds of $190.1 million after deducting underwriting discounts and commissions of $8.7 million and other offering expenses of $0.9 million. Initial Public Offering In May 2014, we completed our initial public offering, or IPO, in which we issued and sold 12.8 million shares of common stock at a public offering price of $9.00 per share. We received net proceeds of $103.1 million after deducting underwriting discounts and commissions of $8.1 million and other offering expenses of $3.8 million. Upon the closing of the IPO, all shares of our then-outstanding redeemable convertible preferred stock automatically converted into an aggregate of 34.3 million shares of common stock. Immaterial Error Correction We corrected an immaterial prior period error on the statement of operations for the six months ended June 30, 2014 related to the calculation of weighted average shares used to compute net loss per share attributable to common stockholders. As a result of this error, basic and diluted net loss per share attributable to common stockholders decreased by $0.02 for the six months ended June 30, 2014. The adjustment did not affect any other financial statements presented. Reclassification Certain prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications had no effect on the reported results of operations. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenue and expenses during the reported periods. Significant items subject to such estimates and assumptions include the fair value of our common stock (through the date of our IPO) and share-based awards, fair value of acquired intangible assets, goodwill, unrecognized tax benefits, useful lives of intangible assets and property and equipment, and the capitalization and estimated useful life of our capitalized internal-use software. These estimates are based on information available as of the date of the financial statements; therefore, actual results could differ from those estimates. Concentrations of Risk There were no customers that represented more than 10% of our accounts receivable balance at June 30, 2015. There were no customers that individually exceeded 10% of our revenue during the three and six months ended June 30, 2015 or 2014. Recently Issued and Adopted Accounting Pronouncements In April 2015, the FASB issued ASU 2015-05 “Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement In April 2015, the FASB issued ASU 2015-03 “Simplifying the Presentation of Debt Issuance Costs” In May 2014, the FASB issued ASU 2014-09 regarding ASC Topic 606 “ Revenue from Contracts with Customers

Acquisition

Acquisition	6 Months Ended
	Jun. 30, 2015
Business Combinations [Abstract]
Acquisition	Note 2. Acquisition On March 21, 2014, we completed the acquisition of Zopim Technologies Pte Ltd., or Zopim, a software development company that provides a SaaS live chat service. As of December 31, 2014, we finalized our purchase accounting after adjustments were made to the preliminary purchase price allocation. The total adjusted acquisition date fair value of consideration transferred was $15.8 million ($4.9 million of cash and $10.9 million of our common stock), which included $1.1 million of cash and $2.4 million of common stock consideration that was held back between 12 and 18 months as partial security for standard indemnification obligations. In the three months ended March 31, 2015, we released $0.5 million of cash and $1.2 million of common stock consideration that was held back, based on the fair value of our common stock on the date of the acquisition. The total adjusted purchase price was allocated to assets acquired and liabilities assumed as set forth below (in thousands). The excess of the purchase price over the net assets acquired was recorded as goodwill. Goodwill generated from the acquisition is attributable to expected synergies from future growth and potential future monetization opportunities, and is not deductible for tax purpose. Net tangible liabilities assumed $ (385 ) Intangible assets 6,560 Goodwill 9,594 Total purchase price $ 15,769 In connection with the acquisition, we also established a retention plan pursuant to which we issued RSUs for 0.9 million shares of our common stock, which vest in three annual installments from the date of acquisition. In addition, we agreed to pay cash in an aggregate amount of $3.0 million in two annual installments from the date of acquisition to Zopim employees in connection with their continued employment, which is recorded as compensation expense over the associated service periods of such employees. In the three months ended March 31, 2015, RSUs for 0.3 million shares of our common stock became vested pursuant to the terms of the retention plan, and we paid the first installment of the cash retention bonus in the amount of $1.5 million. Pro forma revenue and results of operations have not been presented because the historical results of Zopim were not material to our consolidated financial statements in any period presented.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2015
Fair Value Disclosures [Abstract]
Fair Value Measurements	Note 3. Fair Value Measurements The following tables present information about our financial assets measured at fair value on a recurring basis as of June 30, 2015 and December 31, 2014 based on the three-tier fair value hierarchy (in thousands): Fair Value Measurement at June 30, 2015 Level 1 Level 2 Total Description Corporate securities $ — $ 36,523 $ 36,523 Money market funds 19,436 — 19,436 Asset-backed securities — 8,073 8,073 U.S. treasury securities — 6,894 6,894 Agency securities — 2,002 2,002 Total $ 19,436 $ 53,492 $ 72,928 Included in cash and cash equivalents $ 19,436 Included in marketable securities $ 53,492 Fair Value Measurement at December 31, 2014 Level 1 Level 2 Total Description Corporate securities $ — $ 40,345 $ 40,345 Money market funds 21,382 — 21,382 Asset-backed securities — 5,080 5,080 U.S. treasury securities — 1,991 1,991 Commercial paper — 3,993 3,993 Total $ 21,382 $ 51,409 $ 72,791 Included in cash and cash equivalents $ 21,382 Included in marketable securities $ 51,409 As of June 30, 2015 and December 31, 2014, there were no securities within Level 3 of the fair value hierarchy. Gross unrealized gains or losses for cash equivalents and available-for-sale marketable securities as of June 30, 2015 and December 31, 2014 were not material. As of June 30, 2015 and December 31, 2014, there were no securities that were in an unrealized loss position for more than 12 months. The following table classifies our available-for-sale marketable securities by contractual maturities as of June 30, 2015 and December 31, 2014 (in thousands): June 30, 2015 December 31, 2014 Due in one year or less $ 30,672 $ 42,204 Due after one year 22,820 9,205 Total $ 53,492 $ 51,409 For certain other financial instruments, including accounts receivable, accounts payable and other current liabilities, the carrying amounts approximate their fair value due to the relatively short maturity of these balances. Based on borrowing rates available to us for loans with similar terms and maturities, the carrying value of borrowings approximates fair value within Level 2 of the fair value hierarchy. There were no transfers between fair value measurement levels during the three and six months ended June 30, 2015.

Property and Equipment

Property and Equipment	6 Months Ended
	Jun. 30, 2015
Property Plant And Equipment [Abstract]
Property and Equipment	Note 4. Property and Equipment Property and equipment, net consists of the following (in thousands): June 30, 2015 December 31, 2014 Capitalized internal-use software $ 23,845 $ 18,541 Hosting equipment 18,239 14,085 Leasehold improvements 15,600 15,144 Computer equipment and software 5,168 4,310 Furniture and fixtures 4,871 4,524 Construction in progress 3,578 3,546 Total 71,301 60,150 Less: accumulated depreciation and amortization (25,680 ) (18,255 ) Property and equipment, net $ 45,621 $ 41,895 Depreciation expense was $2.6 million and $1.2 million for the three months ended June 30, 2015 and 2014, respectively, and $4.9 million and $2.3 million for the six months ended June 30, 2015 and 2014, respectively. We capitalized $1.8 million and $3.2 million in internal-use software during the three months ended June 30, 2015 and 2014, respectively, and $3.6 million and $5.0 million for the six months ended June 30, 2015 and 2014, respectively. Included in the capitalized development costs are $0.7 million and $1.1 million in share-based compensation costs for the three months ended June 30, 2015 and 2014, respectively, and $1.3 million and $1.1 million for the six months ended June 30, 2015 and 2014, respectively. Amortization expense of capitalized internal-use software totaled $1.5 million and $1.0 million for the three months ended June 30, 2015 and 2014, respectively, and $3.0 million and $1.7 million for the six months ended June 30, 2015 and 2014, respectively. The carrying value of capitalized internal-use software at June 30, 2015 and December 31, 2014 was $14.2 million and $13.6 million, respectively, including $1.9 million and $3.5 million in construction in progress, respectively.

Goodwill and Purchased Intangib

Goodwill and Purchased Intangible Assets	6 Months Ended
	Jun. 30, 2015
Goodwill And Intangible Assets Disclosure [Abstract]
Goodwill and Purchased Intangible Assets	Note 5. Goodwill and Purchased Intangible Assets The changes in the carrying amount of goodwill for the six months ended June 30, 2015 are as follows (in thousands): Balance as of December 31, 2014 $ 9,240 Foreign currency translation adjustments (164 ) Balance as of June 30, 2015 $ 9,076 Purchased intangible assets subject to amortization as of June 30, 2015 and December 31, 2014 consist of the following (in thousands). June 30, 2015 Cost Accumulated Amortization Foreign Currency Translation Adjustment Net Remaining Useful Life (In years) Developed technology $ 5,200 $ (1,897 ) $ (187 ) $ 3,116 2.2 Customer relationships 1,300 (415 ) (49 ) 836 2.7 Trade name 60 (60 ) — — — $ 6,560 $ (2,372 ) $ (236 ) $ 3,952 December 31, 2014 Cost Accumulated Amortization Foreign Currency Translation Adjustment Net Remaining Useful Life (In years) Developed technology $ 5,200 $ (1,118 ) $ (191 ) $ 3,891 2.7 Customer relationships 1,300 (244 ) (48 ) 1,008 3.2 Trade name 60 (45 ) (2 ) 13 0.2 $ 6,560 $ (1,407 ) $ (241 ) $ 4,912 Amortization expense of purchased intangible assets for the three months ended June 30, 2015 and 2014 was $0.4 million and $0.5 million, respectively, and $1.0 million and $0.5 million for the six months ended June 30, 2015 and 2014, respectively. Estimated future amortization expense as of June 30, 2015 is as follows (in thousands): Remainder of 2015 $ 861 2016 1,709 2017 1,315 2018 67 $ 3,952

Credit Facility

Credit Facility	6 Months Ended
	Jun. 30, 2015
Debt Disclosure [Abstract]
Credit Facility	Note 6. Credit Facility Until its termination in June 2015, we had a credit facility with Silicon Valley Bank consisting of a $20.0 million revolving line of credit and a $10.0 million equipment line of credit. The revolving line of credit bore interest at the prime rate plus 2.0% per annum prior to our IPO and was reduced to the prime rate upon the consummation of our IPO. Borrowings on the equipment line of credit bore interest of 2.5% per annum. In June 2014 we repaid all outstanding principal and accrued interest under the revolving line of credit.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2015
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 7. Commitments and Contingencies Leases We lease office space under noncancelable operating leases with various expiration dates. Certain of the office space lease agreements contain rent holidays or rent escalation provisions. Rent holiday and rent escalation provisions are considered in determining the straight-line expense to be recorded over the lease term. The lease term begins on the date of initial possession of the leased property for purposes of recognizing lease expense on a straight-line basis over the term of the lease. Rent expense was $1.8 million for the three months ended June 30, 2015 and 2014, and $3.4 million and $3.5 million for the six months ended June 30, 2015 and 2014, respectively. We leased computer equipment from various parties under capital lease agreements that expired in March 2015. Litigation and Loss Contingencies We accrue estimates for resolution of legal and other contingencies when losses are probable and estimable. From time to time, we may become a party to litigation and subject to claims incident to the ordinary course of business, including intellectual property claims, labor and employment claims, and threatened claims, breach of contract claims, tax, and other matters. We currently have no material pending litigation. We are not currently aware of any litigation matters or loss contingencies that would be expected to have a material adverse effect on our business, consolidated financial position, results of operations, comprehensive loss, or cash flows. Indemnifications In the ordinary course of business, we enter into contractual arrangements under which we agree to provide indemnification of varying scope and terms to business partners and other parties with respect to certain matters, including, but not limited to, losses arising out of the breach of such agreements, intellectual property infringement claims made by third parties, and other liabilities relating to or arising from our customer service platform, live chat software, or our acts or omissions. In these circumstances, payment may be conditional on the other party making a claim pursuant to the procedures specified in the particular contract. Further, our obligations under these agreements may be limited in terms of time and/or amount, and in some instances, we may have recourse against third parties for certain payments. In addition, we have indemnification agreements with our directors and executive officers that require us, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors or officers. The terms of such obligations may vary. To date, we have not incurred any material costs, and we have not accrued any liabilities in the accompanying condensed consolidated financial statements, as a result of these obligations. We have entered into service-level agreements with certain customers warranting defined levels of uptime reliability and performance and permitting those customers to receive credits for future services in the event that we fail to meet those levels. To date, we have not accrued for any significant liabilities in the accompanying consolidated financial statements as a result of these service-level agreements.

Common Stock and Stockholders'

Common Stock and Stockholders' Equity (Deficit)	6 Months Ended
	Jun. 30, 2015
Equity [Abstract]
Common Stock and Stockholders' Equity (Deficit)	Note 8. Common Stock and Stockholders’ Equity Common Stock Upon the completion of our IPO, we increased the number of shares authorized for issuance from 125 million to 400 million with a par value of $0.01 per share. As of June 30, 2015 and December 31, 2014, there were 88.3 million and 76.1 million shares of common stock issued and 87.8 million and 75.5 million shares outstanding, respectively. Included within the number of shares issued and outstanding were 0.4 million and 0.6 million shares of common stock subject to repurchase, as of June 30, 2015 and December 31, 2014, respectively. Preferred Stock As of June 30, 2015 and December 31, 2014, 10 million shares of preferred stock were authorized for issuance with a par value of $0.01 per share and no shares of preferred stock were issued or outstanding. 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 in May 2014 upon the effectiveness of the registration statement related to our IPO. Under the ESPP, eligible employees are granted options to purchase shares of our common stock through payroll deductions. The ESPP provides for eighteen-month offering periods, which include three six-month purchase periods. At the end of each purchase period, employees are able to purchase shares at 85% of the lower of the fair market value of our common stock at the beginning of an offering period or the fair market value of our common stock at the end of the purchase period. We commenced our first purchase period under the ESPP on May 15, 2014. For the three and six months ended June 30, 2015, 0.6 million shares of common stock were purchased under the ESPP. Pursuant to the terms of the ESPP, the number of shares reserved under the ESPP increased by 0.8 million shares on January 1, 2015. As of June 30, 2015, 3.4 million shares of common stock were available for issuance under the ESPP. Stock Option and Grant Plans 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. Our 2014 Stock Option and Incentive Plan, or the 2014 Plan, serves as the successor to our 2009 Plan. Pursuant to the terms of the 2014 Plan, the number of shares reserved for issuance under the 2014 Plan increased by 3.8 million shares on January 1, 2015. As of June 30, 2015, we had 6.8 million shares of common stock available for future grants under the 2014 Plan. The following table summarizes our stock option and RSU award activities for the six months ended June 30, 2015 (in thousands, except per share information): Options Outstanding RSUs Outstanding Weighted Average Weighted Shares Number Weighted Remaining Aggregate Average Available of Average Contractual Intrinsic Outstanding Grant for Grant Shares Exercise Term Value RSUs Fair Value (In years) Outstanding — January 1, 2015 7,560 12,043 $ 7.39 8.29 $ 204,467 3,064 $ 13.69 Increase in authorized shares 3,779 Stock options granted (2,009 ) 2,009 24.25 RSUs granted (2,794 ) 2,794 23.93 Stock options exercised (2,025 ) 2.46 RSUs vested (891 ) 14.93 Stock options forfeited or canceled 62 (62 ) 4.33 RSUs forfeited or cancelled 218 (218 ) 18.30 Outstanding — June 30, 2015 6,816 11,965 $ 11.07 8.33 $ 133,293 4,749 $ 19.27 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, 2015 was $22.21. As of June 30, 2015, we had a total of $142.0 million in future share-based compensation expense related to all equity awards, net of estimated forfeitures, to be recognized over a weighted average period of 3.3 years. Early Exercise of Stock Options and Purchase of Unvested Stock Awards Certain of our stock options 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, 2015 and December 31, 2014, there were 0.4 million and 0.6 million shares, respectively, outstanding as a result of the early exercise of stock options and purchase of unvested stock awards by our employees and directors that were classified as accrued liabilities for an aggregated amount of $1.5 million and $2.1 million, respectively.

Net Loss Per Share

Net Loss Per Share	6 Months Ended
	Jun. 30, 2015
Earnings Per Share [Abstract]
Net Loss Per Share	Note 9. Net Loss Per Share We compute net loss per share of common stock in conformity with the two-class method required for participating securities. We considered all series of the redeemable convertible preferred stock to be participating securities as the holders of the preferred stock were entitled to receive a non-cumulative dividend on a pari passu basis in the event that a dividend is paid on common stock. We also consider shares of common stock issued upon the early exercise of stock options subject to repurchase to be participating securities, because holders of such shares have non-forfeitable dividend rights in the event a dividend is paid on common stock. The holders of all series of the redeemable convertible preferred stock and the holders of shares of common stock acquired upon early exercise of stock options do not have a contractual obligation to share in our losses. As such, our net losses for the three and six months ended June 30, 2015 and 2014 were not allocated to these participating securities. Upon the closing of the IPO in May 2014, all shares of our then-outstanding redeemable convertible preferred stock automatically converted into our common stock. Basic net loss per share attributable to common stockholders is computed by dividing the net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period, less the weighted-average unvested common stock subject to repurchase. Diluted net loss per share is computed by giving effect to all potential shares of common stock, including common stock issuable upon conversion of the redeemable convertible preferred stock, outstanding share-based awards, and outstanding warrants, to the extent dilutive. Basic and diluted net loss per share was the same for each period presented as the inclusion of all potential common stock outstanding would have been anti-dilutive. The following table presents the calculation of basic and diluted net loss per share for the periods presented (in thousands, except per share data): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Net loss $ (21,482 ) $ (21,743 ) $ (40,650 ) $ (32,003 ) Less: Accretion of redeemable convertible preferred stock — (6 ) — (18 ) Net loss attributable to common stockholders $ (21,482 ) $ (21,749 ) $ (40,650 ) $ (32,021 ) Basic shares: Weighted-average shares used to compute basic net loss per share 86,390 45,760 81,390 34,325 Diluted shares: Weighted-average shares used to compute diluted net loss per share 86,390 45,760 81,390 34,325 Net loss per share attributable to common stockholders: Basic and diluted $ (0.25 ) $ (0.48 ) $ (0.50 ) $ (0.93 ) The anti-dilutive securities excluded from the shares used to calculate the diluted net loss per share are as follows (in thousands): As of June 30, 2015 2014 Shares subject to outstanding common stock options and employee stock purchase plan 12,106 14,433 Restricted stock units 4,749 2,376 16,855 16,809

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2015
Income Tax Disclosure [Abstract]
Income Taxes	Note 10. Income Taxes The effective tax rates for the three and six months ended June 30, 2015 and 2014 were less than 1%. The effective tax rate differs from the statutory rate primarily as a result of not recognizing a deferred tax asset for U.S. losses due to having a full valuation allowance against U.S. deferred tax assets. There were no material changes to the unrecognized tax benefits during the three and six months ended June 30, 2015 and 2014.

Geographic Information

Geographic Information	6 Months Ended
	Jun. 30, 2015
Segment Reporting [Abstract]
Geographic Information	Note 11. Geographic Information Our chief operating decision maker reviews the financial information presented on a consolidated basis for purposes of allocating resources and evaluating our financial performance. Accordingly, we have determined that we operate in a single reporting segment. Revenue The following table presents our revenue by geographic areas, as determined based on the billing address of our customers (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 United States $ 26,854 $ 16,858 $ 49,706 $ 31,743 EMEA 13,461 8,241 26,037 14,861 Other 7,912 4,407 14,718 7,994 Total $ 48,227 $ 29,506 $ 90,461 $ 54,598 Long-Lived Assets The following table presents our long-lived assets by geographic areas (in thousands): June 30, 2015 December 31, 2014 United States $ 25,592 $ 22,817 EMEA 4,772 4,373 Other 1,063 1,095 Total $ 31,427 $ 28,286 The carrying value of capitalized internal-use software and intangible assets is excluded from the balance of long-lived assets presented in the table above.

Overview and Basis of Present19

Overview and Basis of Presentation (Policies)	6 Months Ended
	Jun. 30, 2015
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation These unaudited condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles, or GAAP, and applicable rules and regulations of the Securities and Exchange Commission, or SEC, regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in our Annual Report on Form 10-K for the year ended December 31, 2014, filed on February 17, 2015. There have been no changes to our significant accounting policies described in the Annual Report on Form 10-K that have had a material impact on our condensed consolidated financial statements and related notes. The consolidated balance sheet as of December 31, 2014 included herein was derived from the audited financial statements as of that date. The unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the financial position, results of operations, our comprehensive loss and cash flows for the interim periods, but are not necessarily indicative of the results of operations to be anticipated for the full year ending December 31, 2015.
Follow-On Public Offering	Follow-On Public Offering In March 2015, we completed a follow-on public offering, in which we issued 8.8 million shares of our common stock at a public offering price of $22.75 per share. We received net proceeds of $190.1 million after deducting underwriting discounts and commissions of $8.7 million and other offering expenses of $0.9 million.
Initial Public Offering	Initial Public Offering In May 2014, we completed our initial public offering, or IPO, in which we issued and sold 12.8 million shares of common stock at a public offering price of $9.00 per share. We received net proceeds of $103.1 million after deducting underwriting discounts and commissions of $8.1 million and other offering expenses of $3.8 million. Upon the closing of the IPO, all shares of our then-outstanding redeemable convertible preferred stock automatically converted into an aggregate of 34.3 million shares of common stock.
Immaterial Error Correction	Immaterial Error Correction We corrected an immaterial prior period error on the statement of operations for the six months ended June 30, 2014 related to the calculation of weighted average shares used to compute net loss per share attributable to common stockholders. As a result of this error, basic and diluted net loss per share attributable to common stockholders decreased by $0.02 for the six months ended June 30, 2014. The adjustment did not affect any other financial statements presented.
Reclassification	Reclassification Certain prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications had no effect on the reported results of operations.
Use of Estimates	Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenue and expenses during the reported periods. Significant items subject to such estimates and assumptions include the fair value of our common stock (through the date of our IPO) and share-based awards, fair value of acquired intangible assets, goodwill, unrecognized tax benefits, useful lives of intangible assets and property and equipment, and the capitalization and estimated useful life of our capitalized internal-use software. These estimates are based on information available as of the date of the financial statements; therefore, actual results could differ from those estimates.
Concentrations of Risk	Concentrations of Risk There were no customers that represented more than 10% of our accounts receivable balance at June 30, 2015. There were no customers that individually exceeded 10% of our revenue during the three and six months ended June 30, 2015 or 2014.
Recently Issued and Adopted Accounting Pronouncements	Recently Issued and Adopted Accounting Pronouncements In April 2015, the FASB issued ASU 2015-05 “Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement In April 2015, the FASB issued ASU 2015-03 “Simplifying the Presentation of Debt Issuance Costs” In May 2014, the FASB issued ASU 2014-09 regarding ASC Topic 606 “ Revenue from Contracts with Customers

Acquisition (Tables)

Acquisition (Tables)	6 Months Ended
	Jun. 30, 2015
Business Combinations [Abstract]
Schedule of Purchase Price Allocation for Acquisitions	The total adjusted purchase price was allocated to assets acquired and liabilities assumed as set forth below (in thousands). Net tangible liabilities assumed $ (385 ) Intangible assets 6,560 Goodwill 9,594 Total purchase price $ 15,769

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2015
Fair Value Disclosures [Abstract]
Assets Measured at Fair Value on Recurring Basis	The following tables present information about our financial assets measured at fair value on a recurring basis as of June 30, 2015 and December 31, 2014 based on the three-tier fair value hierarchy (in thousands): Fair Value Measurement at June 30, 2015 Level 1 Level 2 Total Description Corporate securities $ — $ 36,523 $ 36,523 Money market funds 19,436 — 19,436 Asset-backed securities — 8,073 8,073 U.S. treasury securities — 6,894 6,894 Agency securities — 2,002 2,002 Total $ 19,436 $ 53,492 $ 72,928 Included in cash and cash equivalents $ 19,436 Included in marketable securities $ 53,492 Fair Value Measurement at December 31, 2014 Level 1 Level 2 Total Description Corporate securities $ — $ 40,345 $ 40,345 Money market funds 21,382 — 21,382 Asset-backed securities — 5,080 5,080 U.S. treasury securities — 1,991 1,991 Commercial paper — 3,993 3,993 Total $ 21,382 $ 51,409 $ 72,791 Included in cash and cash equivalents $ 21,382 Included in marketable securities $ 51,409
Schedule of Available for Sale Marketable Securities Classified by Contractual Maturities	The following table classifies our available-for-sale marketable securities by contractual maturities as of June 30, 2015 and December 31, 2014 (in thousands): June 30, 2015 December 31, 2014 Due in one year or less $ 30,672 $ 42,204 Due after one year 22,820 9,205 Total $ 53,492 $ 51,409

Property and Equipment (Tables)

Property and Equipment (Tables)	6 Months Ended
	Jun. 30, 2015
Property Plant And Equipment [Abstract]
Components of Property and Equipment	Property and equipment, net consists of the following (in thousands): June 30, 2015 December 31, 2014 Capitalized internal-use software $ 23,845 $ 18,541 Hosting equipment 18,239 14,085 Leasehold improvements 15,600 15,144 Computer equipment and software 5,168 4,310 Furniture and fixtures 4,871 4,524 Construction in progress 3,578 3,546 Total 71,301 60,150 Less: accumulated depreciation and amortization (25,680 ) (18,255 ) Property and equipment, net $ 45,621 $ 41,895

Goodwill and Purchased Intang23

Goodwill and Purchased Intangibles Assets (Tables)	6 Months Ended
	Jun. 30, 2015
Goodwill And Intangible Assets Disclosure [Abstract]
Summary of Changes in Carrying Amount of Goodwill	The changes in the carrying amount of goodwill for the six months ended June 30, 2015 are as follows (in thousands): Balance as of December 31, 2014 $ 9,240 Foreign currency translation adjustments (164 ) Balance as of June 30, 2015 $ 9,076
Summary of Intangible Assets Acquired	Purchased intangible assets subject to amortization as of June 30, 2015 and December 31, 2014 consist of the following (in thousands). June 30, 2015 Cost Accumulated Amortization Foreign Currency Translation Adjustment Net Remaining Useful Life (In years) Developed technology $ 5,200 $ (1,897 ) $ (187 ) $ 3,116 2.2 Customer relationships 1,300 (415 ) (49 ) 836 2.7 Trade name 60 (60 ) — — — $ 6,560 $ (2,372 ) $ (236 ) $ 3,952 December 31, 2014 Cost Accumulated Amortization Foreign Currency Translation Adjustment Net Remaining Useful Life (In years) Developed technology $ 5,200 $ (1,118 ) $ (191 ) $ 3,891 2.7 Customer relationships 1,300 (244 ) (48 ) 1,008 3.2 Trade name 60 (45 ) (2 ) 13 0.2 $ 6,560 $ (1,407 ) $ (241 ) $ 4,912
Summary of Estimated Future Amortization Expense	Estimated future amortization expense as of June 30, 2015 is as follows (in thousands): Remainder of 2015 $ 861 2016 1,709 2017 1,315 2018 67 $ 3,952

Common Stock and Stockholders24

Common Stock and Stockholders' Equity (Deficit) (Tables)	6 Months Ended
	Jun. 30, 2015
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Summary of Stock Option and RSU Award Activity	The following table summarizes our stock option and RSU award activities for the six months ended June 30, 2015 (in thousands, except per share information): Options Outstanding RSUs Outstanding Weighted Average Weighted Shares Number Weighted Remaining Aggregate Average Available of Average Contractual Intrinsic Outstanding Grant for Grant Shares Exercise Term Value RSUs Fair Value (In years) Outstanding — January 1, 2015 7,560 12,043 $ 7.39 8.29 $ 204,467 3,064 $ 13.69 Increase in authorized shares 3,779 Stock options granted (2,009 ) 2,009 24.25 RSUs granted (2,794 ) 2,794 23.93 Stock options exercised (2,025 ) 2.46 RSUs vested (891 ) 14.93 Stock options forfeited or canceled 62 (62 ) 4.33 RSUs forfeited or cancelled 218 (218 ) 18.30 Outstanding — June 30, 2015 6,816 11,965 $ 11.07 8.33 $ 133,293 4,749 $ 19.27

Net Loss Per Share (Tables)

Net Loss Per Share (Tables)	6 Months Ended
	Jun. 30, 2015
Earnings Per Share [Abstract]
Schedule of Computation of Basic and Diluted Net Loss per Share	The following table presents the calculation of basic and diluted net loss per share for the periods presented (in thousands, except per share data): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Net loss $ (21,482 ) $ (21,743 ) $ (40,650 ) $ (32,003 ) Less: Accretion of redeemable convertible preferred stock — (6 ) — (18 ) Net loss attributable to common stockholders $ (21,482 ) $ (21,749 ) $ (40,650 ) $ (32,021 ) Basic shares: Weighted-average shares used to compute basic net loss per share 86,390 45,760 81,390 34,325 Diluted shares: Weighted-average shares used to compute diluted net loss per share 86,390 45,760 81,390 34,325 Net loss per share attributable to common stockholders: Basic and diluted $ (0.25 ) $ (0.48 ) $ (0.50 ) $ (0.93 )
Schedule of Anti-Dilutive Securities Excluded from the Diluted per Share Calculation	The anti-dilutive securities excluded from the shares used to calculate the diluted net loss per share are as follows (in thousands): As of June 30, 2015 2014 Shares subject to outstanding common stock options and employee stock purchase plan 12,106 14,433 Restricted stock units 4,749 2,376 16,855 16,809

Geographic Information (Tables)

Geographic Information (Tables)	6 Months Ended
	Jun. 30, 2015
Segment Reporting [Abstract]
Schedule of Revenue by Geographic Areas	The following table presents our revenue by geographic areas, as determined based on the billing address of our customers (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 United States $ 26,854 $ 16,858 $ 49,706 $ 31,743 EMEA 13,461 8,241 26,037 14,861 Other 7,912 4,407 14,718 7,994 Total $ 48,227 $ 29,506 $ 90,461 $ 54,598
Schedule of Long-Lived Assets by Geographic Areas	The following table presents our long-lived assets by geographic areas (in thousands): June 30, 2015 December 31, 2014 United States $ 25,592 $ 22,817 EMEA 4,772 4,373 Other 1,063 1,095 Total $ 31,427 $ 28,286

Overview and Basis of Present27

Overview and Basis of Presentation - Additional Information (Details) $ / shares in Units, $ in Thousands, shares in Millions	1 Months Ended		3 Months Ended		6 Months Ended
	Mar. 31, 2015USD ($)$ / sharesshares	May. 31, 2014USD ($)$ / sharesshares	Jun. 30, 2015Customer$ / shares	Jun. 30, 2014Customer	Jun. 30, 2015USD ($)Customer$ / shares	Jun. 30, 2014USD ($)Customer
Overview And Basis Of Presentation [Line Items]
Year founded					2,007
Reincorporated date					2009-04
Share price | $ / shares			$ 22.21		$ 22.21
Proceeds from follow-on public offering, net of issuance costs					$ 190,110
Proceeds from initial public offering, net of underwriting discounts and commissions and other offering expenses						$ 104,377
Immaterial error correction					We corrected an immaterial prior period error on the statement of operations for the six months ended June 30, 2014 related to the calculation of weighted average shares used to compute net loss per share attributable to common stockholders. As a result of this error, basic and diluted net loss per share attributable to common stockholders decreased by $0.02 for the six months ended June 30, 2014. The adjustment did not affect any other financial statements presented.
Decrease in earnings per share due to immaterial error correction | $ / shares					$ 0.02
Customer Concentration Risk | Accounts Receivable
Overview And Basis Of Presentation [Line Items]
Number of customers | Customer					0
Customer Concentration Risk | Accounts Receivable | Maximum
Overview And Basis Of Presentation [Line Items]
Percentage of total revenue or receivables					10.00%
Customer Concentration Risk | Sales Revenue, Net
Overview And Basis Of Presentation [Line Items]
Number of customers | Customer			0	0	0	0
Customer Concentration Risk | Sales Revenue, Net | Maximum
Overview And Basis Of Presentation [Line Items]
Percentage of total revenue or receivables			10.00%	10.00%	10.00%	10.00%
Follow On Public Offering
Overview And Basis Of Presentation [Line Items]
Shares of common stock sold in initial public offering | shares	8.8
Share price | $ / shares	$ 22.75
Proceeds from follow-on public offering, net of issuance costs	$ 190,100
Underwriting discounts and commission on IPO	8,700
Offering expenses	$ 900
IPO
Overview And Basis Of Presentation [Line Items]
Shares of common stock sold in initial public offering | shares		12.8
Share price | $ / shares		$ 9
Underwriting discounts and commission on IPO		$ 8,100
Offering expenses		3,800
Proceeds from initial public offering, net of underwriting discounts and commissions and other offering expenses		$ 103,100
Number of shares of common stock issued upon automatic conversion of convertible preferred stock | shares		34.3

Acquisition - Additional Inform

Acquisition - Additional Information (Details) - Zopim - USD ($) shares in Millions, $ in Millions	Mar. 21, 2014	Mar. 31, 2015
Business Acquisition [Line Items]
Business acquisition, fair value of consideration transferred	$ 15.8
Business acquisition, fair value of consideration transferred, cash	4.9
Business acquisition, fair value of consideration transferred, common stock	$ 10.9
Restricted cash related to business acquisition released during period		$ 0.5
Released common stock consideration		$ 1.2
RSUs issued pursuant to retention plan, in connection with the acquisition	0.9	0.3
Cash to be pay pursuant to retention plan, in connection with the acquisition	$ 3	$ 1.5
Minimum
Business Acquisition [Line Items]
Number of months that cash and shares were held back	12 months
Maximum
Business Acquisition [Line Items]
Number of months that cash and shares were held back	18 months
Common Stock Consideration
Business Acquisition [Line Items]
Cash portion of fair value consideration transferred	$ 2.4
Cash
Business Acquisition [Line Items]
Cash portion of fair value consideration transferred	$ 1.1

Acquisition - Schedule of Purch

Acquisition - Schedule of Purchase Price Allocation for Acquisitions (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Business Acquisition [Line Items]
Goodwill	$ 9,076	$ 9,240
Zopim
Business Acquisition [Line Items]
Net tangible liabilities assumed		(385)
Intangible assets		6,560
Goodwill		9,594
Total purchase price		$ 15,769

Fair Value Measurements - Finan

Fair Value Measurements - Financial Assets Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total fair value of financial assets	$ 72,928	$ 72,791
Included in cash and cash equivalents	19,436	21,382
Included in marketable securities	53,492	51,409
Level 1
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total fair value of financial assets	19,436	21,382
Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total fair value of financial assets	53,492	51,409
Corporate securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total fair value of financial assets	36,523	40,345
Corporate securities | Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total fair value of financial assets	36,523	40,345
Money market funds
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total fair value of financial assets	19,436	21,382
Money market funds | Level 1
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total fair value of financial assets	19,436	21,382
Asset-backed Securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total fair value of financial assets	8,073	5,080
Asset-backed Securities | Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total fair value of financial assets	8,073	5,080
U.S. treasury securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total fair value of financial assets	6,894	1,991
U.S. treasury securities | Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total fair value of financial assets	6,894	1,991
Agency securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total fair value of financial assets	2,002
Agency securities | Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total fair value of financial assets	$ 2,002
Commercial paper
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total fair value of financial assets		3,993
Commercial paper | Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total fair value of financial assets		$ 3,993

Fair Value Measurements - Addit

Fair Value Measurements - Additional Information (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Gross unrealized gains or losses for cash equivalent and available for sale marketable securities	$ 0	$ 0
Securities that were in an unrealized loss position for more than 12 months.	0	0
Transfer from fair value measurement level 1 to level 2	0
Transfer from fair value measurement level 2 to level 1	0
Level 3
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Securities within Level 3 of the fair value hierarchy	$ 0	$ 0

Fair Value Measurements - Avail

Fair Value Measurements - Available for Sale Marketable Securities by Contractual Maturities (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Fair Value Disclosures [Abstract]
Due in one year or less	$ 30,672	$ 42,204
Due after one year	22,820	9,205
Total	$ 53,492	$ 51,409

Property and Equipment - Compon

Property and Equipment - Components of Property and Equipment (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Property Plant And Equipment [Line Items]
Property and equipment, gross	$ 71,301	$ 60,150
Less: accumulated depreciation and amortization	(25,680)	(18,255)
Property and equipment, net	45,621	41,895
Capitalized Internal-Use Software
Property Plant And Equipment [Line Items]
Property and equipment, gross	23,845	18,541
Hosting Equipment
Property Plant And Equipment [Line Items]
Property and equipment, gross	18,239	14,085
Leasehold Improvements
Property Plant And Equipment [Line Items]
Property and equipment, gross	15,600	15,144
Computer Equipment and Software
Property Plant And Equipment [Line Items]
Property and equipment, gross	5,168	4,310
Furniture and Fixtures
Property Plant And Equipment [Line Items]
Property and equipment, gross	4,871	4,524
Construction in Progress
Property Plant And Equipment [Line Items]
Property and equipment, gross	$ 3,578	$ 3,546

Property and Equipment - Additi

Property and Equipment - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Property Plant And Equipment [Abstract]
Depreciation expense	$ 2,600	$ 1,200	$ 4,900	$ 2,300
Capitalized internal-use software	1,800	3,200	3,600	5,000
Share-based compensation capitalized in internal-use software development costs	700	1,100	1,262	1,125
Amortization expense of capitalized internal-use software	1,500	$ 1,000	3,000	$ 1,700
Carrying value of capitalized internal-use software	14,200		14,200		$ 13,600
Construction in progress	$ 1,900		$ 1,900		$ 3,500

Goodwill and Purchased Intang35

Goodwill and Purchased Intangible Assets - Changes in Carrying Amount of Goodwill (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2015USD ($)
Goodwill And Intangible Assets Disclosure [Abstract]
Beginning balance	$ 9,240
Foreign currency translation adjustments	(164)
Ending balance	$ 9,076

Goodwill and Purchased Intang36

Goodwill and Purchased Intangible Assets - Purchased Intangible Assets Subject to Amortization (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Finite Lived Intangible Assets [Line Items]
Cost	$ 6,560	$ 6,560
Accumulated Amortization	(2,372)	(1,407)
Foreign Currency Translation Adjustment	(236)	(241)
Net	3,952	4,912
Developed Technology
Finite Lived Intangible Assets [Line Items]
Cost	5,200	5,200
Accumulated Amortization	(1,897)	(1,118)
Foreign Currency Translation Adjustment	(187)	(191)
Net	$ 3,116	$ 3,891
Remaining Useful Life	2 years 2 months 12 days	2 years 8 months 12 days
Customer Relationships
Finite Lived Intangible Assets [Line Items]
Cost	$ 1,300	$ 1,300
Accumulated Amortization	(415)	(244)
Foreign Currency Translation Adjustment	(49)	(48)
Net	$ 836	$ 1,008
Remaining Useful Life	2 years 8 months 12 days	3 years 2 months 12 days
Trade Name
Finite Lived Intangible Assets [Line Items]
Cost	$ 60	$ 60
Accumulated Amortization	$ (60)	(45)
Foreign Currency Translation Adjustment		(2)
Net		$ 13
Remaining Useful Life		2 months 12 days

Goodwill and Purchased Intang37

Goodwill and Purchased Intangible Assets - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Goodwill And Intangible Assets Disclosure [Abstract]
Amortization expense	$ 0.4	$ 0.5	$ 1	$ 0.5

Goodwill and Purchased Intang38

Goodwill and Purchased Intangible Assets - Estimated Future Amortization Expense (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Goodwill And Intangible Assets Disclosure [Abstract]
Remainder of 2015	$ 861
2,016	1,709
2,017	1,315
2,018	67
Net	$ 3,952	$ 4,912

Credit Facility - Additional In

Credit Facility - Additional Information (Details) - Jun. 30, 2015 - Silicon Valley Bank - USD ($)	Total
Revolving Line of Credit
Line Of Credit Facility [Line Items]
Credit facility	$ 20,000,000
Percentage of interest rate above the prime rate	2.00%
Equipment Line of Credit
Line Of Credit Facility [Line Items]
Credit facility	$ 10,000,000
Credit facility interest rate	2.50%

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Registration Payment Arrangement [Line Items]
Rent expense	$ 1,800,000	$ 1,800,000	$ 3,400,000	$ 3,500,000
Indemnification cost			0
Indemnification accrued liabilities	$ 0		$ 0
Capital Lease Agreements
Registration Payment Arrangement [Line Items]
Lease expiration date			Mar. 31, 2015

Common Stock and Stockholders41

Common Stock and Stockholders' Equity (Deficit) - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions	1 Months Ended	3 Months Ended	6 Months Ended
	May. 31, 2014	Jun. 30, 2015	Jun. 30, 2015	Dec. 31, 2014
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Common stock, shares authorized	125,000,000			400,000,000
Common stock, par value	$ 0.01			$ 0.01
Common stock, shares issued		88,300,000	88,300,000	76,100,000
Common stock, shares outstanding		87,800,000	87,800,000	75,500,000
Common stock shares outstanding, subject to repurchase		400,000	400,000	600,000
Preferred stock, shares authorized		10,000,000	10,000,000	10,000,000
Preferred stock, par value		$ 0.01	$ 0.01	$ 0.01
Preferred stock, shares issued		0	0	0
Preferred stock, shares outstanding		0	0	0
Share-based Compensation Arrangement by Share-based Payment Award Increase in Number of Shares Reserved and Available for Issuance			3,779,000
Share-based compensation, number of shares available for grant		6,816,000	6,816,000	7,560,000
Share price		$ 22.21	$ 22.21
Future period share-based compensation expense		$ 142	$ 142
Future period share-based compensation expense, period to recognized			3 years 3 months 18 days
Shares outstanding as a result of early exercise of stock options and purchase of unvested stock awards		400,000	400,000	600,000
Accrued liability for shares outstanding as a result of early exercise of stock options and purchase of unvested stock awards		$ 1.5	$ 1.5	$ 2.1
2014 Stock Option and Incentive Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award Increase in Number of Shares Reserved and Available for Issuance			3,800,000
Share-based compensation, number of shares available for grant		6,800,000	6,800,000
Employee Stock Purchase Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award Increase in Number of Shares Reserved and Available for Issuance	800,000
Percentage of purchase price of shares lower of the fair market value of common stock employees are able to purchase shares			85.00%
Common shares purchased		600,000	600,000
Shares of common stock available for issuance		3,400,000	3,400,000

Common Stock and Stockholders42

Common Stock and Stockholders' Equity (Deficit) - Summary of Stock Option and RSU Award Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Shares Available for Grant
Balance at the beginning of the period	7,560,000
Increase in authorized shares	3,779,000
Stock options granted	(2,009,000)
RSUs granted	(2,794,000)
Stock options forfeited or canceled	62,000
RSUs forfeited or cancelled	218,000
Balance at the end of the period	6,816,000	7,560,000
Number of Shares
Balance at the beginning of the period	12,043,000
Stock options granted	2,009,000
Stock options exercised	(2,025,000)
Stock options forfeited or canceled	(62,000)
Balance at the end of the period	11,965,000	12,043,000
Weighted-Average Exercise Price
Balance at the beginning of the period	$ 7.39
Stock options granted	24.25
Stock options exercised	2.46
Stock options forfeited or canceled	4.33
Balance at the end of the period	$ 11.07	$ 7.39
Weighted Average Remaining Contractual Term
Options Outstanding, Weighted-average remaining contractual term	8 years 3 months 29 days	8 years 3 months 15 days
Aggregate Intrinsic Value
Options Outstanding, Aggregate Intrinsic Value, Balance at beginning of period	$ 204,467
Options Outstanding, Aggregate Intrinsic Value, Balance at end of period	$ 133,293	$ 204,467
Outstanding RSUs
Balance at the beginning of the period	3,064,000
RSUs granted	2,794,000
RSUs vested	(891,000)
RSUs forfeited or cancelled	(218,000)
Balance at the end of the period	4,749,000	3,064,000
Weighted-Average Grant Date Fair Value
Balance at the beginning of the period	$ 13.69
RSUs granted	23.93
RSUs vested	14.93
RSUs forfeited or cancelled	18.30
Balance at the end of the period	$ 19.27	$ 13.69

Net Loss per Share - Computatio

Net Loss per Share - Computation of Basic and Diluted Net Loss per Share of Common Stock (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Earnings Per Share [Abstract]
Net loss	$ (21,482)	$ (21,743)	$ (40,650)	$ (32,003)
Accretion of redeemable convertible preferred stock		(6)		(18)
Net loss attributable to common stockholders	$ (21,482)	$ (21,749)	$ (40,650)	$ (32,021)
Basic shares:
Weighted-average shares used to compute basic net loss per share	86,390	45,760	81,390	34,325
Diluted shares:
Weighted-average shares used to compute diluted net loss per share	86,390	45,760	81,390	34,325
Net loss per share attributable to common stockholders:
Net loss per share attributable to common stockholders, basic and diluted	$ (0.25)	$ (0.48)	$ (0.50)	$ (0.93)

Net Loss per Share - Schedule o

Net Loss per Share - Schedule of Anti-Dilutive Securities Excluded from the Diluted per Share Calculation (Details) - shares shares in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share amount	16,855	16,809
Shares subject to outstanding common stock options and employee stock purchase plan
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share amount	12,106	14,433
Restricted Stock Units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share amount	4,749	2,376

Income Taxes - Additional Infor

Income Taxes - Additional Information (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Schedule Of Effective Tax Rates [Line Items]
Changes in unrecognized tax benefits	$ 0	$ 0	$ 0	$ 0
Maximum
Schedule Of Effective Tax Rates [Line Items]
Effective income tax rate, percent	1.00%	1.00%	1.00%	1.00%

Geographic Information - Schedu

Geographic Information - Schedule of Revenue by Geographic Areas (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Revenues From External Customers And Long Lived Assets [Line Items]
Revenue	$ 48,227	$ 29,506	$ 90,461	$ 54,598
United States
Revenues From External Customers And Long Lived Assets [Line Items]
Revenue	26,854	16,858	49,706	31,743
EMEA
Revenues From External Customers And Long Lived Assets [Line Items]
Revenue	13,461	8,241	26,037	14,861
Other
Revenues From External Customers And Long Lived Assets [Line Items]
Revenue	$ 7,912	$ 4,407	$ 14,718	$ 7,994

Geographic Information - Sche47

Geographic Information - Schedule of Long-Lived Assets by Geographic Areas (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Revenues From External Customers And Long Lived Assets [Line Items]
Long-lived assets	$ 31,427	$ 28,286
United States
Revenues From External Customers And Long Lived Assets [Line Items]
Long-lived assets	25,592	22,817
EMEA
Revenues From External Customers And Long Lived Assets [Line Items]
Long-lived assets	4,772	4,373
Other
Revenues From External Customers And Long Lived Assets [Line Items]
Long-lived assets	$ 1,063	$ 1,095