Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Oct. 31, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
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 | 88,697,514 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Current Assets: | ||
Cash and cash equivalents | $ 255,386 | $ 80,265 |
Marketable securities | 25,247 | 42,204 |
Accounts receivable, net of allowance for doubtful accounts of $1,070 and $264 as of September 30, 2015 and December 31, 2014, respectively | 24,121 | 11,523 |
Prepaid expenses and other current assets | 9,904 | 5,013 |
Total current assets | 314,658 | 139,005 |
Marketable securities, noncurrent | 22,513 | 9,205 |
Property and equipment, net | 52,747 | 41,895 |
Goodwill and intangible assets, net | 11,888 | 14,152 |
Other assets | 2,450 | 1,531 |
Total assets | 404,256 | 205,788 |
Current liabilities: | ||
Accounts payable | 4,390 | 4,763 |
Accrued liabilities | 10,445 | 7,841 |
Accrued compensation and related benefits | 11,872 | 11,738 |
Deferred revenue | 74,295 | 50,756 |
Current portion of credit facility | 3,041 | |
Current portion of capital leases | 10 | |
Total current liabilities | 101,002 | 78,149 |
Deferred revenue, noncurrent | 1,657 | 823 |
Credit facility, noncurrent | 3,911 | |
Other liabilities | 8,966 | 9,199 |
Total liabilities | $ 111,625 | $ 92,082 |
Commitments and contingencies (Note 7) | ||
Stockholders’ equity: | ||
Preferred stock | ||
Common stock | $ 887 | $ 755 |
Additional paid-in capital | 485,417 | 246,000 |
Accumulated other comprehensive loss | (1,578) | (528) |
Accumulated deficit | (191,443) | (131,869) |
Treasury stock at cost (0.5 million shares as of September 30, 2015 and December 31, 2014) | (652) | (652) |
Total stockholders’ equity | 292,631 | 113,706 |
Total liabilities and stockholders’ equity | $ 404,256 | $ 205,788 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands, shares in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Statement Of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 1,070 | $ 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 | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Income Statement [Abstract] | |||||
Revenue | $ 55,661 | $ 33,910 | $ 146,122 | $ 88,508 | |
Cost of revenue | [1] | 17,039 | 11,684 | 47,491 | 32,410 |
Gross profit | 38,622 | 22,226 | 98,631 | 56,098 | |
Operating expenses: | |||||
Research and development | [1] | 16,031 | 9,550 | 43,517 | 25,227 |
Sales and marketing | [1] | 29,079 | 21,548 | 79,725 | 56,174 |
General and administrative | [1] | 12,319 | 8,940 | 33,982 | 23,639 |
Total operating expenses | [1] | 57,429 | 40,038 | 157,224 | 105,040 |
Operating loss | (18,807) | (17,812) | (58,593) | (48,942) | |
Other income (expense), net | 145 | (343) | (428) | (1,252) | |
Loss before provision for (benefit from) income taxes | (18,662) | (18,155) | (59,021) | (50,194) | |
Provision for (benefit from) income taxes | 262 | (236) | 554 | (272) | |
Net loss | (18,924) | (17,919) | (59,575) | (49,922) | |
Accretion of redeemable convertible preferred stock | (18) | ||||
Net loss attributable to common stockholders | $ (18,924) | $ (17,919) | $ (59,575) | $ (49,940) | |
Net loss per share attributable to common stockholders, basic and diluted | $ (0.22) | $ (0.25) | $ (0.71) | $ (1.07) | |
Weighted-average shares used to compute net loss per share attributable to common stockholders, basic and diluted | 87,777 | 71,732 | 83,536 | 46,751 | |
[1] | Includes share-based compensation expense as follows: |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Share-based compensation expense | $ 37,057 | $ 23,625 | ||
Cost of Revenue | ||||
Share-based compensation expense | $ 1,131 | $ 591 | 3,136 | 1,691 |
Research and Development | ||||
Share-based compensation expense | 4,974 | 3,052 | 13,484 | 7,530 |
Sales and Marketing | ||||
Share-based compensation expense | 3,786 | 4,877 | 10,154 | 8,635 |
General and Administrative | ||||
Share-based compensation expense | $ 3,551 | $ 2,298 | $ 10,283 | $ 5,769 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net loss | $ (18,924) | $ (17,919) | $ (59,575) | $ (49,922) |
Other comprehensive loss, net of tax: | ||||
Net change in unrealized gain (loss) on available-for-sale investments | 39 | (58) | 70 | (66) |
Foreign currency translation gain (loss) | (781) | (303) | (1,019) | 17 |
Net change in unrealized loss on derivative instruments | (101) | (101) | ||
Comprehensive loss | $ (19,767) | $ (18,280) | $ (60,625) | $ (49,971) |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash flows from operating activities | ||
Net loss | $ (59,575) | $ (49,922) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 13,672 | 7,673 |
Share-based compensation | 37,057 | 23,625 |
Other | 525 | 331 |
Excess tax benefit from share-based award activity | (124) | |
Changes in operating assets and liabilities: | ||
Accounts receivable | (13,082) | (5,104) |
Prepaid expenses and other current assets | (4,161) | (1,960) |
Other assets and liabilities | (1,622) | 1,321 |
Accounts payable | (1,919) | 591 |
Accrued liabilities | 2,261 | 922 |
Accrued compensation and related benefits | (2,355) | 5,215 |
Deferred revenue | 24,372 | 17,290 |
Net cash used in operating activities | (4,951) | (18) |
Cash flows from investing activities | ||
Purchases of property and equipment | (14,231) | (19,121) |
Internal-use software development costs | (3,548) | (6,268) |
Purchases of marketable securities | (56,991) | (43,006) |
Proceeds from maturities of marketable securities | 30,425 | 6,950 |
Proceeds from sale of marketable securities | 29,650 | |
Cash paid for the acquisition of Zopim, net of cash acquired | (1,099) | (1,896) |
Net cash used in investing activities | (15,794) | (63,341) |
Cash flows from financing activities | ||
Proceeds from initial public offering, net of issuance costs | 103,110 | |
Proceeds from follow-on public offering, net of issuance costs | 190,110 | |
Proceeds from exercise of employee stock options | 5,773 | 2,745 |
Taxes paid related to net share settlement of equity awards | (481) | (1,750) |
Proceeds from issuance of common stock from employee stock purchase plan | 7,243 | 2,346 |
Proceeds from issuance of debt | 3,940 | |
Excess tax benefit from share-based award activity | 124 | |
Principal payments on debt | (6,952) | (20,000) |
Principal payments on capital lease obligations | (10) | (271) |
Net cash provided by financing activities | 195,807 | 90,120 |
Effect of exchange rate changes on cash and cash equivalents | 59 | (50) |
Net increase in cash and cash equivalents | 175,121 | 26,711 |
Cash and cash equivalents at the beginning of period | 80,265 | 53,725 |
Cash and cash equivalents at the end of period | 255,386 | 80,436 |
Supplemental cash flow data: | ||
Cash paid for interest and income taxes | 710 | 930 |
Non-cash investing and financing activities: | ||
Purchases of property and equipment in accounts payable and accrued expenses | 3,766 | 998 |
Share-based compensation capitalized in internal-use software development costs | 1,674 | 1,856 |
Vesting of early exercised stock options | 815 | 1,196 |
Property and equipment acquired through tenant improvement allowances | $ 174 | 3,932 |
Issuance of common stock for the acquisition of Zopim | $ 10,893 |
Overview and Basis of Presentat
Overview and Basis of Presentation | 9 Months Ended |
Sep. 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 nine months ended September 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 $0.01 for the nine months ended September 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 As of September 30, 2015, one customer represented 10% of our total accounts receivable balance. As of December 31, 2014, no customers represented more than 10% of our accounts receivable balance. There were no customers that individually exceeded 10% of our revenue during the three and nine months ended September 30, 2015 or 2014. Recently Issued and Adopted Accounting Pronouncements In September 2015, the FASB issued ASU 2015-16 “Simplifying the Accounting for Measurement-Period Adjustments” In May 2014, the FASB issued ASU 2014-09 regarding ASC Topic 606 “ Revenue from Contracts with Customers |
Acquisition
Acquisition | 9 Months Ended |
Sep. 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. These hold back amounts were released in equal installments in March and September 2015. 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. |
Financial Instruments
Financial Instruments | 9 Months Ended |
Sep. 30, 2015 | |
Financial Instruments Owned At Fair Value [Abstract] | |
Financial Instruments | Note 3. Financial Instruments Investments The following tables present information about our financial assets measured at fair value on a recurring basis as of September 30, 2015 and December 31, 2014 based on the three-tier fair value hierarchy (in thousands): Fair Value Measurement at September 30, 2015 Level 1 Level 2 Total Description Corporate securities $ — $ 35,736 $ 35,736 Money market funds 25,368 — 25,368 Asset-backed securities — 6,030 6,030 Commercial paper — 3,991 3,991 Agency securities — 2,003 2,003 Total $ 25,368 $ 47,760 $ 73,128 Included in cash and cash equivalents $ 25,368 Included in marketable securities $ 47,760 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 September 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 September 30, 2015 and December 31, 2014 were not material. As of September 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 September 30, 2015 and December 31, 2014 (in thousands): September 30, 2015 December 31, 2014 Due in one year or less $ 25,247 $ 42,204 Due after one year 22,513 9,205 Total $ 47,760 $ 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 nine months ended September 30, 2015. Derivative Instruments and Hedging Our foreign currency exposures typically arise from foreign operations and, to a lesser extent, sales in foreign currencies for subscriptions to our customer service platform. In September 2015, we implemented a hedging program to mitigate the impact of foreign currency fluctuations on our future cash flows and earnings. We entered into foreign currency forward contracts with certain financial institutions and designated those hedges as cash flow hedges. Our foreign currency forward contracts generally have maturities of fifteen months or less. These derivative instruments expose us to credit risk to the extent that our counterparties are unable to meet the terms of the arrangement. We seek to mitigate this risk by transacting with major financial institutions with high credit ratings. In addition, we have a master netting agreement with each of our counterparties, which permits net settlement of multiple, separate derivative contracts with a single payment. We may also be required to exchange cash collateral with certain of our counterparties on a regular basis. ASC 815 permits companies to present the fair value of derivative instruments on a net basis according to master netting arrangements. We have elected to present our derivative instruments on a gross basis in our consolidated financial statements. Cash Flow Hedges Our foreign currency forward contracts are designated as cash flow hedges of foreign currency forecasted revenues and expenses. We recognize all derivative instruments on our balance sheet at fair value as either assets or liabilities. The effective portion of the gain or loss on each forward contract is reported as a component of accumulated other comprehensive income (loss) and reclassified into earnings to either revenue or operating expense in the same period, or periods, during which the hedged transaction affects earnings. The ineffective portion of the gains or losses, if any, is recorded immediately in other income (expense), net. The change in time value related to our cash flow hedges is excluded from the assessment of hedge effectiveness and is recorded immediately in other income (expense), net We evaluate the effectiveness of our cash flow hedges on a quarterly basis. As of September 30, 2015, $0.1 million of unrealized losses related to the effective portion of changes in the fair value of foreign currency forward contracts designated as cash flow hedges were included in the balance of other accumulated comprehensive loss. We expect to reclassify $0.1 m The following table presents information about our derivative instruments on the consolidated balance sheet as of September 30, 2015 (in thousands): September 30, 2015 Asset Derivatives Liability Derivatives Derivative Instrument Balance Sheet Location Fair Value (Level 2) Balance Sheet Location Fair Value (Level 2) Foreign currency forward contracts Other current assets 69 Accrued liabilities 163 Foreign currency forward contracts Other assets 10 Other liabilities 25 Total $ 79 $ 188 Our foreign currency contracts are classified within Level 2 because the valuation inputs are based on quoted prices and market observable data of similar instruments in active markets, such as currency spot and forward rates. Our foreign currency forward contracts had a total notional value of $47.6 million as of September 30, 2015. There were no derivative assets or liabilities on our consolidated balance sheet as of December 31, 2014. The following table presents information about our derivative instruments on the statement of operations for the three and nine months ended September 30, 2015 (in thousands): Three Months Ended September 30, 2015 Nine Months Ended September 30, 2015 Hedging Instrument Location of Gain (Loss) Reclassified into Earnings Gain (Loss) Recognized in AOCI Gain (Loss) Reclassified from AOCI into Earnings Gain (Loss) Recognized in AOCI Gain (Loss) Reclassified from AOCI into Earnings Foreign currency forward contracts Revenue, cost of revenue, operating expenses (101 ) — (101 ) — Total $ (101 ) $ — $ (101 ) $ — There were no gains or losses on derivative instruments for the three and nine months ended September 30, 2014. All derivatives have been designated as hedging instruments. Amounts recognized in earnings related to excluded time value and hedge ineffectiveness were not material for the three and nine months ended September 30, 2015. |
Property and Equipment
Property and Equipment | 9 Months Ended |
Sep. 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): September 30, 2015 December 31, 2014 Capitalized internal-use software $ 25,613 $ 18,541 Hosting equipment 24,740 14,085 Leasehold improvements 16,651 15,144 Computer equipment and software 5,949 4,310 Furniture and fixtures 5,092 4,524 Construction in progress 4,575 3,546 Total 82,620 60,150 Less: accumulated depreciation and amortization (29,873 ) (18,255 ) Property and equipment, net $ 52,747 $ 41,895 Depreciation expense was $2.8 million and $1.7 million for the three months ended September 30, 2015 and 2014, respectively, and $7.7 million and $4.0 million for the nine months ended September 30, 2015 and 2014, respectively. Amortization expense of capitalized internal-use software totaled $1.6 million and $0.9 million for the three months ended September 30, 2015 and 2014, respectively, and $4.6 million and $2.6 million for the nine months ended September 30, 2015 and 2014, respectively. The carrying value of capitalized internal-use software at September 30, 2015 and December 31, 2014 was $14.2 million and $13.6 million, respectively, including $1.7 million and $3.5 million in construction in progress, respectively. |
Goodwill and Purchased Intangib
Goodwill and Purchased Intangible Assets | 9 Months Ended |
Sep. 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 nine months ended September 30, 2015 are as follows (in thousands): Balance as of December 31, 2014 $ 9,240 Foreign currency translation adjustments (670 ) Balance as of September 30, 2015 $ 8,570 Purchased intangible assets subject to amortization as of September 30, 2015 and December 31, 2014 consist of the following (in thousands). September 30, 2015 Cost Accumulated Amortization Foreign Currency Translation Adjustment Net Remaining Useful Life (In years) Developed technology $ 5,200 $ (2,271 ) $ (326 ) $ 2,603 2.0 Customer relationships 1,300 (497 ) (88 ) 715 2.5 Trade name 60 (60 ) — — — $ 6,560 $ (2,828 ) $ (414 ) $ 3,318 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 September 30, 2015 and 2014 was $0.4 million and $0.5 million, respectively, and $1.4 million and $1.0 million for the nine months ended September 30, 2015 and 2014, respectively. Estimated future amortization expense as of September 30, 2015 is as follows (in thousands): Remainder of 2015 $ 406 2016 1,610 2017 1,239 2018 63 $ 3,318 |
Credit Facility
Credit Facility | 9 Months Ended |
Sep. 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 | 9 Months Ended |
Sep. 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 $2.0 million and $1.7 million for the three months ended September 30, 2015 and 2014, respectively, and $5.4 million and $5.2 million for the nine months ended September 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 customers, 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, analytics 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. Certain of our product offerings contain service-level agreements 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) | 9 Months Ended |
Sep. 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 September 30, 2015 and December 31, 2014, there were 89.1 million and 76.1 million shares of common stock issued and 88.5 million and 75.5 million shares outstanding, respectively. Included within the number of shares issued and outstanding were 0.3 million and 0.6 million shares of common stock subject to repurchase, as of September 30, 2015 and December 31, 2014, respectively. Preferred Stock As of September 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. No shares of common stock were purchased under the ESPP during the three months ended September 30, 2015. For the nine months ended September 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 September 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 September 30, 2015, we had 6.0 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 nine months ended September 30, 2015 (in thousands, except per share information): 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 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 (3,775 ) 3,775 22.83 Stock options exercised (2,308 ) 2.50 RSUs vested (1,290 ) 16.20 Unvested shares repurchased 2 Stock options forfeited or canceled 67 (67 ) 4.36 RSUs forfeited or cancelled 332 (332 ) 18.75 Outstanding — September 30, 2015 5,956 11,677 $ 11.28 $ 8.12 $ 98,481 5,217 $ 19.36 Aggregate intrinsic value represents the difference between our closing stock price of its common stock and the exercise price of outstanding, in-the-money options. Our closing stock price as reported on the New York Stock Exchange as of September 30, 2015 was $19.71. As of September 30, 2015, we had a total of $145.8 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 3.1 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 September 30, 2015 and December 31, 2014, there were 0.3 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 $1.3 million and $2.1 million, respectively. |
Net Loss Per Share
Net Loss Per Share | 9 Months Ended |
Sep. 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 nine months ended September 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 September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Net loss $ (18,924 ) $ (17,919 ) $ (59,575 ) $ (49,922 ) Less: Accretion of redeemable convertible preferred stock — — — (18 ) Net loss attributable to common stockholders $ (18,924 ) $ (17,919 ) $ (59,575 ) $ (49,940 ) Basic shares: Weighted-average shares used to compute basic net loss per share 87,777 71,732 83,536 46,751 Diluted shares: Weighted-average shares used to compute diluted net loss per share 87,777 71,732 83,536 46,751 Net loss per share attributable to common stockholders: Basic and diluted $ (0.22 ) $ (0.25 ) $ (0.71 ) $ (1.07 ) The anti-dilutive securities excluded from the shares used to calculate the diluted net loss per share are as follows (in thousands): As of September 30, 2015 2014 Shares subject to outstanding common stock options and employee stock purchase plan 12,067 14,521 Restricted stock units 5,217 2,944 17,284 17,465 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 10. Income Taxes The effective tax rates for the three and nine months ended September 30, 2015 and 2014 were less than 2%. 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 nine months ended September 30, 2015 and 2014. |
Geographic Information
Geographic Information | 9 Months Ended |
Sep. 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 September 30, Nine Months Ended September 30, 2015 2014 2015 2014 United States $ 31,388 $ 19,031 $ 81,094 $ 50,774 EMEA 15,397 9,704 41,434 24,565 Other 8,876 5,175 23,594 13,169 Total $ 55,661 $ 33,910 $ 146,122 $ 88,508 Long-Lived Assets The following table presents our long-lived assets by geographic areas (in thousands): As of As of September 30, 2015 December 31, 2014 United States $ 25,223 $ 22,817 EMEA 10,304 4,373 Other 3,031 1,095 Total $ 38,558 $ 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. |
Subsequent Event
Subsequent Event | 9 Months Ended |
Sep. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Event | Note 12. Subsequent Event On October 13, 2015, we completed the acquisition of We Are Cloud SAS, or WAC, the maker of BIME Analytics software. We acquired 100 percent of the outstanding shares of WAC in exchange for purchase consideration of $45.0 million in cash, subject to working capital adjustments. As partial security for standard indemnification obligations, $7.0 million of the consideration will be held in escrow for a period of up to 18 months, with a portion to be released 12 months following the closing of the acquisition. We have also entered into retention arrangements pursuant to which we have issued restricted stock unit awards for an aggregate of approximately 0.5 million shares of our common stock, subject to vesting based on continued employment. The acquisition will be accounted for as a business combination. We are in the process of evaluating the impact of the business combination on our consolidated financial statements. |
Overview and Basis of Present20
Overview and Basis of Presentation (Policies) | 9 Months Ended |
Sep. 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 nine months ended September 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 $0.01 for the nine months ended September 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 As of September 30, 2015, one customer represented 10% of our total accounts receivable balance. As of December 31, 2014, no customers represented more than 10% of our accounts receivable balance. There were no customers that individually exceeded 10% of our revenue during the three and nine months ended September 30, 2015 or 2014. |
Recently Issued and Adopted Accounting Pronouncements | Recently Issued and Adopted Accounting Pronouncements In September 2015, the FASB issued ASU 2015-16 “Simplifying the Accounting for Measurement-Period Adjustments” In May 2014, the FASB issued ASU 2014-09 regarding ASC Topic 606 “ Revenue from Contracts with Customers |
Acquisition (Tables)
Acquisition (Tables) | 9 Months Ended |
Sep. 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 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Financial Instruments Owned At Fair Value [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 September 30, 2015 and December 31, 2014 based on the three-tier fair value hierarchy (in thousands): Fair Value Measurement at September 30, 2015 Level 1 Level 2 Total Description Corporate securities $ — $ 35,736 $ 35,736 Money market funds 25,368 — 25,368 Asset-backed securities — 6,030 6,030 Commercial paper — 3,991 3,991 Agency securities — 2,003 2,003 Total $ 25,368 $ 47,760 $ 73,128 Included in cash and cash equivalents $ 25,368 Included in marketable securities $ 47,760 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 September 30, 2015 and December 31, 2014 (in thousands): September 30, 2015 December 31, 2014 Due in one year or less $ 25,247 $ 42,204 Due after one year 22,513 9,205 Total $ 47,760 $ 51,409 |
Schedule of Derivative Instruments on Consolidated Balance Sheet | The following table presents information about our derivative instruments on the consolidated balance sheet as of September 30, 2015 (in thousands): September 30, 2015 Asset Derivatives Liability Derivatives Derivative Instrument Balance Sheet Location Fair Value (Level 2) Balance Sheet Location Fair Value (Level 2) Foreign currency forward contracts Other current assets 69 Accrued liabilities 163 Foreign currency forward contracts Other assets 10 Other liabilities 25 Total $ 79 $ 188 |
Schedule of Derivative Instruments on Statement of Operations | The following table presents information about our derivative instruments on the statement of operations for the three and nine months ended September 30, 2015 (in thousands): Three Months Ended September 30, 2015 Nine Months Ended September 30, 2015 Hedging Instrument Location of Gain (Loss) Reclassified into Earnings Gain (Loss) Recognized in AOCI Gain (Loss) Reclassified from AOCI into Earnings Gain (Loss) Recognized in AOCI Gain (Loss) Reclassified from AOCI into Earnings Foreign currency forward contracts Revenue, cost of revenue, operating expenses (101 ) — (101 ) — Total $ (101 ) $ — $ (101 ) $ — |
Property and Equipment (Tables)
Property and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Property Plant And Equipment [Abstract] | |
Components of Property and Equipment | Property and equipment, net consists of the following (in thousands): September 30, 2015 December 31, 2014 Capitalized internal-use software $ 25,613 $ 18,541 Hosting equipment 24,740 14,085 Leasehold improvements 16,651 15,144 Computer equipment and software 5,949 4,310 Furniture and fixtures 5,092 4,524 Construction in progress 4,575 3,546 Total 82,620 60,150 Less: accumulated depreciation and amortization (29,873 ) (18,255 ) Property and equipment, net $ 52,747 $ 41,895 |
Goodwill and Purchased Intang24
Goodwill and Purchased Intangibles Assets (Tables) | 9 Months Ended |
Sep. 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 nine months ended September 30, 2015 are as follows (in thousands): Balance as of December 31, 2014 $ 9,240 Foreign currency translation adjustments (670 ) Balance as of September 30, 2015 $ 8,570 |
Summary of Intangible Assets Acquired | Purchased intangible assets subject to amortization as of September 30, 2015 and December 31, 2014 consist of the following (in thousands). September 30, 2015 Cost Accumulated Amortization Foreign Currency Translation Adjustment Net Remaining Useful Life (In years) Developed technology $ 5,200 $ (2,271 ) $ (326 ) $ 2,603 2.0 Customer relationships 1,300 (497 ) (88 ) 715 2.5 Trade name 60 (60 ) — — — $ 6,560 $ (2,828 ) $ (414 ) $ 3,318 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 September 30, 2015 is as follows (in thousands): Remainder of 2015 $ 406 2016 1,610 2017 1,239 2018 63 $ 3,318 |
Common Stock and Stockholders25
Common Stock and Stockholders' Equity (Deficit) (Tables) | 9 Months Ended |
Sep. 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 nine months ended September 30, 2015 (in thousands, except per share information): 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 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 (3,775 ) 3,775 22.83 Stock options exercised (2,308 ) 2.50 RSUs vested (1,290 ) 16.20 Unvested shares repurchased 2 Stock options forfeited or canceled 67 (67 ) 4.36 RSUs forfeited or cancelled 332 (332 ) 18.75 Outstanding — September 30, 2015 5,956 11,677 $ 11.28 $ 8.12 $ 98,481 5,217 $ 19.36 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 9 Months Ended |
Sep. 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 September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Net loss $ (18,924 ) $ (17,919 ) $ (59,575 ) $ (49,922 ) Less: Accretion of redeemable convertible preferred stock — — — (18 ) Net loss attributable to common stockholders $ (18,924 ) $ (17,919 ) $ (59,575 ) $ (49,940 ) Basic shares: Weighted-average shares used to compute basic net loss per share 87,777 71,732 83,536 46,751 Diluted shares: Weighted-average shares used to compute diluted net loss per share 87,777 71,732 83,536 46,751 Net loss per share attributable to common stockholders: Basic and diluted $ (0.22 ) $ (0.25 ) $ (0.71 ) $ (1.07 ) |
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 September 30, 2015 2014 Shares subject to outstanding common stock options and employee stock purchase plan 12,067 14,521 Restricted stock units 5,217 2,944 17,284 17,465 |
Geographic Information (Tables)
Geographic Information (Tables) | 9 Months Ended |
Sep. 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 September 30, Nine Months Ended September 30, 2015 2014 2015 2014 United States $ 31,388 $ 19,031 $ 81,094 $ 50,774 EMEA 15,397 9,704 41,434 24,565 Other 8,876 5,175 23,594 13,169 Total $ 55,661 $ 33,910 $ 146,122 $ 88,508 |
Schedule of Long-Lived Assets by Geographic Areas | The following table presents our long-lived assets by geographic areas (in thousands): As of As of September 30, 2015 December 31, 2014 United States $ 25,223 $ 22,817 EMEA 10,304 4,373 Other 3,031 1,095 Total $ 38,558 $ 28,286 |
Overview and Basis of Present28
Overview and Basis of Presentation - Additional Information (Details) $ / shares in Units, $ in Thousands, shares in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Mar. 31, 2015USD ($)$ / sharesshares | May. 31, 2014USD ($)$ / sharesshares | Sep. 30, 2015Customer$ / shares | Sep. 30, 2014Customer | Sep. 30, 2015USD ($)Customer$ / shares | Sep. 30, 2014USD ($)Customer | Dec. 31, 2014Customer | |
Overview And Basis Of Presentation [Line Items] | |||||||
Year founded | 2,007 | ||||||
Reincorporated date | Apr. 30, 2009 | ||||||
Share price | $ / shares | $ 19.71 | $ 19.71 | |||||
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 | $ 103,110 | ||||||
Immaterial error correction | We corrected an immaterial prior period error on the statement of operations for the nine months ended September 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 $0.01 for the nine months ended September 30, 2014. The adjustment did not affect any other financial statements presented. | ||||||
Decrease in earnings per share due to immaterial error correction | $ / shares | $ 0.01 | ||||||
Customer Concentration Risk | Accounts Receivable | |||||||
Overview And Basis Of Presentation [Line Items] | |||||||
Number of customers | Customer | 1 | 0 | |||||
Customer Concentration Risk | Accounts Receivable | Maximum | |||||||
Overview And Basis Of Presentation [Line Items] | |||||||
Percentage of total revenue or receivables | 10.00% | 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) - USD ($) shares in Thousands, $ in Millions | Mar. 21, 2014 | Mar. 31, 2015 | Sep. 30, 2015 |
Business Acquisition [Line Items] | |||
RSUs issued pursuant to retention plan, in connection with the acquisition | 3,775 | ||
RSUs vested pursuant to retention plan, in connection with the acquisition | 1,290 | ||
Zopim | |||
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 | ||
Cash to be paid pursuant to retention plan, in connection with the acquisition | $ 3 | ||
Cash retention bonus paid pursuant to retention plan, in connection with the acquisition | $ 1.5 | ||
Zopim | Restricted Stock Units | |||
Business Acquisition [Line Items] | |||
RSUs issued pursuant to retention plan, in connection with the acquisition | 900 | ||
Vesting period | 3 years | ||
RSUs vested pursuant to retention plan, in connection with the acquisition | 300 | ||
Zopim | Minimum | |||
Business Acquisition [Line Items] | |||
Number of months that cash and shares were held back | 12 months | ||
Zopim | Maximum | |||
Business Acquisition [Line Items] | |||
Number of months that cash and shares were held back | 18 months | ||
Zopim | Common Stock Consideration | |||
Business Acquisition [Line Items] | |||
Cash portion of fair value consideration transferred | $ 2.4 | ||
Zopim | 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 | Sep. 30, 2015 | Dec. 31, 2014 |
Business Acquisition [Line Items] | ||
Goodwill | $ 8,570 | $ 9,240 |
Zopim | ||
Business Acquisition [Line Items] | ||
Net tangible liabilities assumed | (385) | |
Intangible assets | 6,560 | |
Goodwill | 9,594 | |
Total purchase price | $ 15,769 |
Financial Instruments - Financi
Financial Instruments - Financial Assets Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total fair value of financial assets | $ 73,128 | $ 72,791 |
Included in marketable securities | 47,760 | 51,409 |
Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total fair value of financial assets | 25,368 | 21,382 |
Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total fair value of financial assets | 47,760 | 51,409 |
Corporate securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total fair value of financial assets | 35,736 | 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 | 35,736 | 40,345 |
Money market funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total fair value of financial assets | 25,368 | 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 | 25,368 | 21,382 |
Asset-backed Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total fair value of financial assets | 6,030 | 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 | 6,030 | 5,080 |
Commercial paper | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total fair value of financial assets | 3,991 | 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 | 3,991 | 3,993 |
Agency securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total fair value of financial assets | 2,003 | |
Agency securities | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total fair value of financial assets | 2,003 | |
U.S. treasury securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total fair value of financial assets | 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 | 1,991 | |
Fair Value Measurements, Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Included in cash and cash equivalents | 25,368 | 21,382 |
Included in marketable securities | $ 47,760 | $ 51,409 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Securities within Level 3 of the fair value hierarchy | $ 47,760,000 | $ 51,409,000 | ||
Gross unrealized gains or losses for 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 | |||
Derivative assets / liabilities | 0 | |||
Gains / losses on derivative instruments | $ 0 | $ 0 | ||
Foreign currency forward contracts | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Unrealized losses related to effective portion of changes in fair value of foreign currency forward contracts | 100,000 | |||
Reclassification from accumulated other comprehensive loss into earnings over next 12 month | 100,000 | |||
Notional value | $ 47,600,000 | |||
Maximum | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Foreign currency forward contracts maturity period | 15 months | |||
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 |
Financial Instruments - Availab
Financial Instruments - Available for Sale Marketable Securities by Contractual Maturities (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Fair Value Disclosures [Abstract] | ||
Due in one year or less | $ 25,247 | $ 42,204 |
Due after one year | 22,513 | 9,205 |
Total | $ 47,760 | $ 51,409 |
Financial Instruments - Schedul
Financial Instruments - Schedule of Derivative Instruments on Consolidated Balance Sheet (Details) - Level 2 $ in Thousands | Sep. 30, 2015USD ($) |
Derivatives Fair Value [Line Items] | |
Asset Derivatives, Fair Value | $ 79 |
Liability Derivatives, Fair Value | 188 |
Foreign currency forward contracts | Other current assets | |
Derivatives Fair Value [Line Items] | |
Asset Derivatives, Fair Value | 69 |
Foreign currency forward contracts | Other assets | |
Derivatives Fair Value [Line Items] | |
Asset Derivatives, Fair Value | 10 |
Foreign currency forward contracts | Accrued liabilities | |
Derivatives Fair Value [Line Items] | |
Liability Derivatives, Fair Value | 163 |
Foreign currency forward contracts | Other liabilities | |
Derivatives Fair Value [Line Items] | |
Liability Derivatives, Fair Value | $ 25 |
Financial Instruments - Sched35
Financial Instruments - Schedule of Derivative Instruments on Statement of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2015 | Sep. 30, 2015 | |
Derivative Instruments Gain Loss [Line Items] | ||
Gain (Loss) Recognized in AOCI | $ (101) | $ (101) |
Revenue, cost of revenue, operating expenses | Foreign currency forward contracts | ||
Derivative Instruments Gain Loss [Line Items] | ||
Gain (Loss) Recognized in AOCI | $ (101) | $ (101) |
Property and Equipment - Compon
Property and Equipment - Components of Property and Equipment (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 82,620 | $ 60,150 |
Less: accumulated depreciation and amortization | (29,873) | (18,255) |
Property and equipment, net | 52,747 | 41,895 |
Capitalized Internal-Use Software | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 25,613 | 18,541 |
Hosting Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 24,740 | 14,085 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 16,651 | 15,144 |
Computer Equipment and Software | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 5,949 | 4,310 |
Furniture and Fixtures | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 5,092 | 4,524 |
Construction in Progress | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 4,575 | $ 3,546 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Property Plant And Equipment [Abstract] | |||||
Depreciation expense | $ 2.8 | $ 1.7 | $ 7.7 | $ 4 | |
Amortization expense of capitalized internal-use software | 1.6 | $ 0.9 | 4.6 | $ 2.6 | |
Carrying value of capitalized internal-use software | 14.2 | 14.2 | $ 13.6 | ||
Capitalized internal-use software included in construction in progress | $ 1.7 | $ 1.7 | $ 3.5 |
Goodwill and Purchased Intang38
Goodwill and Purchased Intangible Assets - Changes in Carrying Amount of Goodwill (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Beginning balance | $ 9,240 |
Foreign currency translation adjustments | (670) |
Ending balance | $ 8,570 |
Goodwill and Purchased Intang39
Goodwill and Purchased Intangible Assets - Purchased Intangible Assets Subject to Amortization (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Finite Lived Intangible Assets [Line Items] | ||
Cost | $ 6,560 | $ 6,560 |
Accumulated Amortization | (2,828) | (1,407) |
Foreign Currency Translation Adjustment | (414) | (241) |
Net | 3,318 | 4,912 |
Developed Technology | ||
Finite Lived Intangible Assets [Line Items] | ||
Cost | 5,200 | 5,200 |
Accumulated Amortization | (2,271) | (1,118) |
Foreign Currency Translation Adjustment | (326) | (191) |
Net | $ 2,603 | $ 3,891 |
Remaining Useful Life | 2 years | 2 years 8 months 12 days |
Customer Relationships | ||
Finite Lived Intangible Assets [Line Items] | ||
Cost | $ 1,300 | $ 1,300 |
Accumulated Amortization | (497) | (244) |
Foreign Currency Translation Adjustment | (88) | (48) |
Net | $ 715 | $ 1,008 |
Remaining Useful Life | 2 years 6 months | 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 Intang40
Goodwill and Purchased Intangible Assets - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||||
Amortization expense | $ 0.4 | $ 0.5 | $ 1.4 | $ 1 |
Goodwill and Purchased Intang41
Goodwill and Purchased Intangible Assets - Estimated Future Amortization Expense (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Remainder of 2015 | $ 406 | |
2,016 | 1,610 | |
2,017 | 1,239 | |
2,018 | 63 | |
Net | $ 3,318 | $ 4,912 |
Credit Facility - Additional In
Credit Facility - Additional Information (Details) - Silicon Valley Bank | 1 Months Ended |
Jun. 30, 2015USD ($) | |
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 ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Other Commitments [Line Items] | ||||
Rent expense | $ 2 | $ 1.7 | $ 5.4 | $ 5.2 |
Capital Lease Agreements | ||||
Other Commitments [Line Items] | ||||
Lease expiration date | Mar. 31, 2015 |
Common Stock and Stockholders44
Common Stock and Stockholders' Equity (Deficit) - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | Jan. 02, 2015 | Sep. 30, 2015 | Sep. 30, 2015 | Dec. 31, 2014 | May. 31, 2014 |
Class Of Stock [Line Items] | |||||
Common stock, shares authorized | 400,000,000 | 125,000,000 | |||
Common stock, par value | $ 0.01 | $ 0.01 | |||
Common stock, shares issued | 89,100,000 | 89,100,000 | 76,100,000 | ||
Common stock, shares outstanding | 88,500,000 | 88,500,000 | 75,500,000 | ||
Common stock shares outstanding, subject to repurchase | 300,000 | 300,000 | 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 | ||||
Shares of common stock available for issuance | 5,956,000 | 5,956,000 | 7,560,000 | ||
Share price | $ 19.71 | $ 19.71 | |||
Future period share-based compensation expense | $ 145.8 | $ 145.8 | |||
Future period share-based compensation expense, period to recognized | 3 years 1 month 6 days | ||||
Shares outstanding as a result of early exercise of stock options and purchase of unvested stock awards | 300,000 | 300,000 | 600,000 | ||
Accrued liability for shares outstanding as a result of early exercise of stock options and purchase of unvested stock awards | $ 1.3 | $ 1.3 | $ 2.1 | ||
2009 Stock Option and Grant Plan | |||||
Class Of Stock [Line Items] | |||||
Shares of common stock available for issuance | 0 | 0 | |||
2014 Plan | Employee Stock Option | |||||
Class Of Stock [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award Increase in Number of Shares Reserved and Available for Issuance | 3,800,000 | ||||
Shares of common stock available for issuance | 6,000,000 | 6,000,000 | |||
Employee Stock Purchase Plan | |||||
Class Of Stock [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 | 0 | 600,000 | |||
Shares of common stock available for issuance | 3,400,000 | 3,400,000 |
Common Stock and Stockholders45
Common Stock and Stockholders' Equity (Deficit) - Summary of Stock Option and RSU Award Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 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 | (3,775,000) | |
Unvested shares repurchased | 2,000 | |
Stock options forfeited or canceled | 67,000 | |
RSUs forfeited or cancelled | 332,000 | |
Balance at the end of the period | 5,956,000 | 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 | (2,308,000) | |
Stock options forfeited or canceled | (67,000) | |
Balance at the end of the period | 11,677,000 | 12,043,000 |
Weighted-Average Exercise Price | ||
Balance at the beginning of the period | $ 7.39 | |
Stock options granted | 24.25 | |
Stock options exercised | 2.50 | |
Stock options forfeited or canceled | 4.36 | |
Balance at the end of the period | $ 11.28 | $ 7.39 |
Weighted Average Remaining Contractual Term | ||
Options Outstanding, Weighted-average remaining contractual term | 8 years 1 month 13 days | 8 years 3 months 15 days |
Aggregate Intrinsic Value | ||
Options Outstanding, Aggregate Intrinsic Value, Balance at beginning of period | $ 98,481 | $ 204,467 |
Outstanding RSUs | ||
Balance at the beginning of the period | 3,064,000 | |
RSUs issued pursuant to retention plan, in connection with the acquisition | 3,775,000 | |
RSUs vested | (1,290,000) | |
Unvested shares repurchased | 2,000 | |
RSUs forfeited or cancelled | (332,000) | |
Balance at the end of the period | 5,217,000 | 3,064,000 |
Weighted-Average Grant Date Fair Value | ||
Balance at the beginning of the period | $ 13.69 | |
RSUs granted | 22.83 | |
RSUs vested | $ 16.20 | |
Unvested shares repurchased | 2,000 | |
RSUs forfeited or cancelled | $ 18.75 | |
Balance at the end of the period | $ 19.36 | $ 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 | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Earnings Per Share [Abstract] | ||||
Net loss | $ (18,924) | $ (17,919) | $ (59,575) | $ (49,922) |
Accretion of redeemable convertible preferred stock | (18) | |||
Net loss attributable to common stockholders | $ (18,924) | $ (17,919) | $ (59,575) | $ (49,940) |
Basic shares: | ||||
Weighted-average shares used to compute basic net loss per share | 87,777 | 71,732 | 83,536 | 46,751 |
Diluted shares: | ||||
Weighted-average shares used to compute diluted net loss per share | 87,777 | 71,732 | 83,536 | 46,751 |
Net loss per share attributable to common stockholders: | ||||
Net loss per share attributable to common stockholders, basic and diluted | $ (0.22) | $ (0.25) | $ (0.71) | $ (1.07) |
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 | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share amount | 17,284 | 17,465 |
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 | 12,067 | 14,521 |
Restricted Stock Units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share amount | 5,217 | 2,944 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 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 | 2.00% | 2.00% | 2.00% | 2.00% |
Geographic Information - Additi
Geographic Information - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2015segment | |
Segment Reporting [Abstract] | |
Number of reportable segment | 1 |
Geographic Information - Schedu
Geographic Information - Schedule of Revenue by Geographic Areas (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Revenue | $ 55,661 | $ 33,910 | $ 146,122 | $ 88,508 |
United States | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Revenue | 31,388 | 19,031 | 81,094 | 50,774 |
EMEA | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Revenue | 15,397 | 9,704 | 41,434 | 24,565 |
Other | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Revenue | $ 8,876 | $ 5,175 | $ 23,594 | $ 13,169 |
Geographic Information - Sche51
Geographic Information - Schedule of Long-Lived Assets by Geographic Areas (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Long-lived assets | $ 38,558 | $ 28,286 |
United States | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Long-lived assets | 25,223 | 22,817 |
EMEA | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Long-lived assets | 10,304 | 4,373 |
Other | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Long-lived assets | $ 3,031 | $ 1,095 |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Details) - USD ($) shares in Thousands, $ in Millions | Oct. 13, 2015 | Sep. 30, 2015 |
Subsequent Event [Line Items] | ||
RSUs issued pursuant to retention plan, in connection with the acquisition | 3,775 | |
We Are Cloud, Inc | Subsequent Event | ||
Subsequent Event [Line Items] | ||
Percent of outstanding shares acquired | 100.00% | |
Purchase consideration in cash | $ 45 | |
Consideration held in escrow | $ 7 | |
Number of months consideration held in escrow, to be released | 12 months | |
Maximum | We Are Cloud, Inc | Subsequent Event | ||
Subsequent Event [Line Items] | ||
Number of months consideration were held in escrow | 18 months | |
Restricted Stock Units | We Are Cloud, Inc | Subsequent Event | ||
Subsequent Event [Line Items] | ||
RSUs issued pursuant to retention plan, in connection with the acquisition | 500 |