Zendesk (ZEN) 10-Q 6 Nov 15 2015 Q3 Quarterly report Financial data

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