Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Jul. 31, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | ZEN | |
Entity Registrant Name | Zendesk, Inc. | |
Entity Central Index Key | 1,463,172 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 100,498,735 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 102,775 | $ 93,677 |
Marketable securities | 137,489 | 131,190 |
Accounts receivable, net of allowance for doubtful accounts of $919 and $1,269 as of June 30, 2017 and December 31, 2016, respectively | 41,311 | 37,343 |
Prepaid expenses and other current assets | 21,141 | 17,608 |
Total current assets | 302,716 | 279,818 |
Marketable securities, noncurrent | 68,502 | 75,168 |
Property and equipment, net | 61,753 | 62,731 |
Goodwill and intangible assets, net | 68,762 | 53,296 |
Other assets | 7,909 | 4,272 |
Total assets | 509,642 | 475,285 |
Current liabilities: | ||
Accounts payable | 8,161 | 4,555 |
Accrued liabilities | 19,935 | 19,106 |
Accrued compensation and related benefits | 21,982 | 20,281 |
Deferred revenue | 141,345 | 123,276 |
Total current liabilities | 191,423 | 167,218 |
Deferred revenue, noncurrent | 1,773 | 1,257 |
Other liabilities | 8,477 | 7,382 |
Total liabilities | 201,673 | 175,857 |
Commitments and contingencies (Note 6) | ||
Stockholders’ equity: | ||
Preferred stock | 0 | 0 |
Common stock | 1,007 | 971 |
Additional paid-in capital | 686,336 | 624,026 |
Accumulated other comprehensive loss | (2,474) | (5,197) |
Accumulated deficit | (376,248) | (319,720) |
Treasury stock, at cost (0.5 million shares as of June 30, 2017 and December 31, 2016) | (652) | (652) |
Total stockholders’ equity | 307,969 | 299,428 |
Total liabilities and stockholders’ equity | $ 509,642 | $ 475,285 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands, shares in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 919 | $ 1,269 |
Treasury stock, shares (in shares) | 0.5 | 0.5 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |||||
Income Statement [Abstract] | ||||||||
Revenue | $ 101,273 | $ 74,200 | $ 194,280 | $ 142,659 | ||||
Cost of revenue | [1] | 30,663 | 22,936 | 58,770 | 44,452 | |||
Gross profit | 70,610 | 51,264 | 135,510 | 98,207 | ||||
Operating expenses: | ||||||||
Research and development | [1] | 28,698 | 22,134 | 55,154 | 43,731 | |||
Sales and marketing | [1] | 52,628 | 39,350 | 99,929 | 75,522 | |||
General and administrative | [1] | 19,788 | 16,076 | 38,105 | 31,937 | |||
Total operating expenses | 101,114 | [1] | 77,560 | [1] | 193,188 | 151,190 | [1] | |
Operating loss | (30,504) | (26,296) | (57,678) | (52,983) | ||||
Other income, net | 508 | 134 | 726 | 64 | ||||
Loss before provision for (benefit from) income taxes | (29,996) | (26,162) | (56,952) | (52,919) | ||||
Provision for (benefit from) income taxes | (690) | 92 | (652) | 506 | ||||
Net loss | $ (29,306) | $ (26,254) | $ (56,300) | $ (53,425) | ||||
Net loss per share, basic and diluted (usd per share) | $ (0.29) | $ (0.28) | $ (0.57) | $ (0.58) | ||||
Weighted-average shares used to compute net loss per share, basic and diluted (in shares) | 99,506 | 92,174 | 98,545 | 91,351 | ||||
[1] | Includes share-based compensation expense as follows: Three Months EndedJune 30, Six Months EndedJune 30,2017 2016 2017 2016Cost of revenue$2,156 $1,802 $4,260 $3,435Research and development7,584 6,749 14,497 13,376Sales and marketing6,013 5,684 11,646 11,123General and administrative5,321 4,410 9,884 8,407 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Share-based compensation expense | $ 40,287 | $ 36,341 | ||
Cost of revenue | ||||
Share-based compensation expense | $ 2,156 | $ 1,802 | 4,260 | 3,435 |
Research and development | ||||
Share-based compensation expense | 7,584 | 6,749 | 14,497 | 13,376 |
Sales and marketing | ||||
Share-based compensation expense | 6,013 | 5,684 | 11,646 | 11,123 |
General and administrative | ||||
Share-based compensation expense | $ 5,321 | $ 4,410 | $ 9,884 | $ 8,407 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (29,306) | $ (26,254) | $ (56,300) | $ (53,425) |
Other comprehensive gain (loss), before tax: | ||||
Net change in unrealized gain (loss) on available-for-sale investments | 13 | (14) | 132 | 116 |
Foreign currency translation gain | 249 | 64 | 824 | 797 |
Net change in unrealized loss on derivative instruments | 1,822 | (2,886) | 3,348 | (277) |
Other comprehensive gain (loss), before tax | 2,084 | (2,836) | 4,304 | 636 |
Tax effect | (766) | (234) | (1,582) | (234) |
Other comprehensive gain (loss), net of tax | 1,318 | (3,070) | 2,722 | 402 |
Comprehensive loss | $ (27,988) | $ (29,324) | $ (53,578) | $ (53,023) |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Cash flows from operating activities | ||
Net loss | $ (56,300) | $ (53,425) |
Adjustments to reconcile net loss to net cash provided by operating activities | ||
Depreciation and amortization | 16,132 | 13,147 |
Share-based compensation | 40,287 | 36,341 |
Other | 359 | 599 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (4,619) | (2,427) |
Prepaid expenses and other current assets | (3,015) | (7,860) |
Other assets and liabilities | (3,594) | (380) |
Accounts payable | 3,809 | (579) |
Accrued liabilities | 4,188 | 1,803 |
Accrued compensation and related benefits | 1,394 | 1,098 |
Deferred revenue | 18,584 | 16,243 |
Net cash provided by operating activities | 17,225 | 4,560 |
Cash flows from investing activities | ||
Purchases of property and equipment | (9,276) | (8,410) |
Internal-use software development costs | (3,315) | (2,773) |
Purchases of marketable securities | (82,325) | (136,171) |
Proceeds from maturities of marketable securities | 61,686 | 16,476 |
Proceeds from sale of marketable securities | 20,743 | 13,631 |
Cash paid for the acquisition of Outbound, net of cash acquired | (16,470) | 0 |
Net cash used in investing activities | (28,957) | (117,247) |
Cash flows from financing activities | ||
Proceeds from exercise of employee stock options | 15,175 | 9,387 |
Proceeds from employee stock purchase plan | 7,139 | 5,672 |
Taxes paid related to net share settlement of share-based awards | (1,763) | (345) |
Principal payment on debt | 0 | (323) |
Net cash provided by financing activities | 20,551 | 14,391 |
Effect of exchange rate changes on cash and cash equivalents | 279 | 106 |
Net increase (decrease) in cash and cash equivalents | 9,098 | (98,190) |
Cash and cash equivalents at beginning of period | 93,677 | 216,226 |
Cash and cash equivalents at end of period | 102,775 | 118,036 |
Supplemental cash flow data: | ||
Cash paid for income taxes and interest | 756 | 437 |
Non-cash investing and financing activities: | ||
Vesting of early exercised stock options | 224 | 374 |
Balance of property and equipment in accounts payable and accrued expenses | 3,036 | 1,552 |
Share-based compensation capitalized in internal-use software development costs | $ 1,306 | $ 1,075 |
Overview and Basis of Presentat
Overview and Basis of Presentation | 6 Months Ended |
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Overview and Basis of Presentation | Overview and Basis of Presentation Company and Background Zendesk was founded in Denmark in 2007 and reincorporated in Delaware in April 2009. We are a software development company that provides software as a service, or SaaS, products that are intended to help organizations and their customers build better relationships. With our origins in customer service, we have evolved our offerings over time to a family of products that work together to help organizations understand their customers, improve communications, and engage where and when it’s needed most. Our product family is built upon a modern architecture that enables us and our customers to rapidly innovate, adapt our technology in novel ways, and easily integrate with other products and applications. 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, 2016, filed with the SEC on February 27, 2017. 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, except as described below. In the first quarter of 2017, we changed our accounting policy for share-based compensation to recognize forfeitures as they occur, as permitted by Accounting Standards Update, or ASU, 2016-09. Refer to Recently Adopted Accounting Pronouncements below for a more detailed discussion. The consolidated balance sheet as of December 31, 2016 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 our financial position, results of operations, 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, 2017 . Use of Estimates The preparation of our 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 share-based awards, acquired intangible assets, goodwill and unrecognized tax benefits, the useful lives of acquired intangible assets and property and equipment, the capitalization and estimated useful life of capitalized internal-use software, and financial forecasts used in currency hedging. 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 June 30, 2017 , no customers represented 10% or greater of our total accounts receivable balance. There were no customers that individually exceeded 10% of our revenue during the three and six months ended June 30, 2017 or 2016 . Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board, or the FASB, issued new revenue guidance that provides principles for recognizing revenue to which an entity expects to be entitled for the transfer of promised goods or services to customers. The guidance also requires the deferral of incremental costs to acquire contracts with customers. As currently issued and amended, the new guidance is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period, though early adoption is permitted for annual reporting periods beginning after December 15, 2016. The guidance may be applied retrospectively to each prior period presented (full retrospective method), or with the cumulative effect recognized as of the date of initial adoption (modified retrospective method). We currently intend to adopt using the full retrospective method; however, our decision has not been finalized. We have completed a preliminary assessment to determine the effect of adoption on our existing revenue arrangements and are analyzing specific transactions to confirm those conclusions. We have also begun testing our new revenue recognition systems. As a result of adoption, we also expect to capitalize a significant portion of our sales commissions and other incremental costs to acquire contracts, which we historically expensed as incurred, which will result in an increase in deferred costs recognized on our balance sheet. We have not yet concluded the useful life of our capitalized costs, which will affect the classification and magnitude of the deferred costs at each reporting period. We continue to quantify the total effect of adoption on our consolidated financial statements. To meet the incremental disclosure requirements of the new guidance, we are also developing processes that will enable our ability to disclose backlog. In February 2016, the FASB issued ASU 2016-02, regarding Accounting Standards Codification, or ASC, Topic 842 “ Leases. ” This new standard requires lessees to recognize most leases on their balance sheets as lease liabilities with corresponding right-of-use assets and eliminates certain real estate-specific provisions. The new guidance is effective for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period. Early adoption is permitted. We are currently evaluating the effect of this standard on our consolidated financial statements. Recently Adopted Accounting Pronouncements In March 2016, the FASB issued ASU 2016-09, regarding ASC Topic 718 “ Compensation - Stock Compensation. ” This amendment changes certain aspects of accounting for share-based awards to employees, including the recognition of income tax effects of awards when the awards vest or are settled, requirements on net share settlement to cover tax withholding, and accounting for forfeitures. We adopted the standard in the first quarter of 2017. As required by the new standard, we now recognize excess tax effects from share-based awards as a component of provision for income taxes in our statement of operations when awards vest or are settled. Upon adoption, we recorded a deferred tax asset of $52.8 million to reflect, on a modified retrospective basis, the previously unrecognized excess tax benefits; however, the deferred tax asset was fully offset by a valuation allowance, resulting in no impact to our consolidated financial statements. In our statement of cash flows, we no longer classify excess tax benefits as a reduction from operating cash flows. This change was made prospectively beginning with the quarter ended March 31, 2017. We also elected to account for forfeitures as they occur; therefore, share-based compensation expense for the three and six months ended June 30, 2017 have been calculated based on actual forfeitures in our consolidated statement of operations, rather than our previous approach which was net of estimated forfeitures. The cumulative-effect adjustment of this change on a modified retrospective basis was not material. Share-based compensation expense for the three and six months ended June 30, 2016 was recorded net of estimated forfeitures. In October 2016, the FASB issued ASU 2016-16, “ Income Taxes - Intra-Entity Transfers of Assets Other Than Inventory, ” which requires entities to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The new guidance is effective for annual reporting periods beginning after December 15, 2017. Early adoption is permitted as of the beginning of an annual reporting period. The new standard must be adopted using a modified retrospective basis, with the cumulative effect recognized as of the date of adoption. We adopted the standard in the first quarter of 2017. Upon adoption, we recorded a deferred tax asset of $6.2 million to reflect the previously unrecognized tax benefits; however, the deferred tax asset was fully offset by a valuation allowance, resulting in no impact to our consolidated financial statements. In May 2017, the FASB issued ASU 2017-09, regarding ASC Topic 718 “ Compensation - Stock Compensation: Scope of Modification Accounting. ” This amendment clarified what changes to terms or conditions of share-based awards require an entity to apply modification accounting. The new guidance is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. We early adopted this standard in the second quarter of 2017 on a prospective basis, as permitted by the standard. The adoption did not have and is not expected to have a material effect on our consolidated financial statements. |
Business Combination
Business Combination | 6 Months Ended |
Jun. 30, 2017 | |
Business Combinations [Abstract] | |
Business Combination | Business Combination On April 27, 2017, we completed the acquisition of Outbound Solutions, Inc., or Outbound, a provider of software that enables companies to deliver intelligent, behavior-based messages across multiple channels. We acquired Outbound for purchase consideration of $16.6 million in cash. The fair value of assets acquired and liabilities assumed was based on a preliminary valuation, and our estimates and assumptions are subject to change within the measurement period. The primary areas that remain preliminary relate to the fair values of certain assets and liabilities acquired and residual goodwill. The total purchase consideration was allocated to the assets acquired and liabilities assumed as set forth below (in thousands). The excess of the purchase price over the net assets acquired was recorded as goodwill. Goodwill generated from the acquisition is primarily attributable to expected growth from the expansion of the scope of and market opportunity for our products. Goodwill is no t deductible for income tax purposes. Goodwill will not be amortized but instead will be tested for impairment at least annually and more frequently if certain indicators of impairment are present. Net tangible assets acquired $ 96 Net deferred tax liability recognized (492 ) Identifiable intangible assets: Developed technology 3,200 Customer relationships 410 Goodwill 13,350 Total purchase price $ 16,564 The developed technology and customer relationship intangible assets were assigned useful lives of 6.5 and 3.5 years, respectively. From the date of the acquisition, the results of operations of Outbound have been included in and are immaterial to our consolidated financial statements. Pro forma revenue and results of operations have not been presented because the historical results of Outbound are not material to our consolidated financial statements in any period presented. |
Financial Instruments
Financial Instruments | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments | Financial Instruments Investments The following tables present information about our financial assets measured at fair value on a recurring basis as of June 30, 2017 and December 31, 2016 based on the three-tier fair value hierarchy (in thousands): Fair Value Measurement at Level 1 Level 2 Total Description Corporate bonds $ — $ 134,134 $ 134,134 Asset-backed securities — 29,303 29,303 U.S. treasury securities — 25,449 25,449 Commercial paper — 11,120 11,120 Agency securities — 8,482 8,482 Money market funds 2,768 — 2,768 Total $ 2,768 $ 208,488 $ 211,256 Included in cash and cash equivalents $ 5,265 Included in marketable securities $ 205,991 Fair Value Measurement at Level 1 Level 2 Total Description Corporate bonds $ — $ 124,930 $ 124,930 Asset-backed securities — 32,567 32,567 U.S. treasury securities — 30,585 30,585 Commercial paper — 9,787 9,787 Agency securities — 8,489 8,489 Money market funds 3,545 $ — $ 3,545 Total $ 3,545 $ 206,358 $ 209,903 Included in cash and cash equivalents $ 3,545 Included in marketable securities $ 206,358 As of June 30, 2017 and December 31, 2016 , there were no securities within Level 3 of the fair value hierarchy. There were no transfers between fair value measurement levels during the three and six months ended June 30, 2017 . Gross unrealized gains and losses for cash equivalents and marketable securities as of June 30, 2017 and December 31, 2016 were no t material. As of June 30, 2017 and December 31, 2016 , there were no securities that were in an unrealized loss position for more than 12 months . The following table classifies our marketable securities by contractual maturity as of June 30, 2017 and December 31, 2016 (in thousands): June 30, December 31, Due in one year or less $ 137,489 $ 131,190 Due after one year 68,502 75,168 Total $ 205,991 $ 206,358 For our other financial instruments, including accounts receivable, accounts payable, and other current liabilities, the carrying amounts approximate their fair values due to the relatively short maturity of these balances. Derivative Instruments and Hedging Our foreign currency exposures typically arise from expenditures associated with foreign operations and sales in foreign currencies for subscriptions to our products. In September 2015, we implemented a hedging program to mitigate the effect of foreign currency fluctuations on our future cash flows and earnings. We enter into foreign currency forward contracts with certain financial institutions and designate those contracts as cash flow hedges. Our foreign currency forward contracts generally have maturities of 15 months or less. As of June 30, 2017 , the balance of accumulated other comprehensive loss included an unrecognized net gain of $0.4 million related to the effective portion of changes in the fair value of foreign currency forward contracts designated as cash flow hedges. We expect to reclassify a net gain of $0.5 million into earnings over the next 12 months associated with our cash flow hedges. The following tables present information about our derivative instruments on our consolidated balance sheets as of June 30, 2017 and December 31, 2016 (in thousands): June 30, 2017 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 $ 1,376 Accrued liabilities $ 1,507 Total $ 1,376 $ 1,507 December 31, 2016 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 $ 868 Accrued liabilities $ 4,280 Total $ 868 $ 4,280 Our foreign currency forward contracts had a total notional value of $90.1 million and $79.6 million as of June 30, 2017 and December 31, 2016 , respectively. We have a master netting arrangement 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. As of June 30, 2017 and December 31, 2016 , our balances of cash collateral posted with counterparties were none and $1.1 million , respectively. The following table presents information about our derivative instruments on the statement of operations for the three and six months ended June 30, 2017 and 2016 (in thousands): Three Months Ended June 30, 2017 Six Months Ended June 30, 2017 Hedging Instrument Location of Loss Reclassified into Earnings Gain Recognized in AOCI Loss Reclassified from AOCI into Earnings Gain Recognized in AOCI Loss Reclassified from AOCI into Earnings Foreign currency forward contracts Revenue, cost of revenue, operating expenses $ 1,495 $ (327 ) $ 2,488 $ (860 ) Total $ 1,495 $ (327 ) $ 2,488 $ (860 ) Three Months Ended June 30, 2016 Six Months Ended June 30, 2016 Hedging Instrument Location of Gain (Loss) Reclassified into Earnings Loss Recognized in AOCI Gain Reclassified from AOCI into Earnings Loss Recognized in AOCI Loss Reclassified from AOCI into Earnings Foreign currency forward contracts Revenue, cost of revenue, operating expenses $ (2,772 ) $ 114 $ (425 ) $ (148 ) Total $ (2,772 ) $ 114 $ (425 ) $ (148 ) All derivatives have been designated as hedging instruments. Amounts recognized in earnings related to excluded time value and hedge ineffectiveness for the three and six months ended June 30, 2017 and 2016 were not material . |
Property and Equipment
Property and Equipment | 6 Months Ended |
Jun. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment, net consists of the following (in thousands): June 30, December 31, Hosting equipment $ 37,413 $ 35,018 Leasehold improvements 28,055 25,396 Capitalized internal-use software 27,938 25,773 Computer equipment and licensed software and patents 15,228 11,879 Furniture and fixtures 9,281 8,014 Construction in progress 8,031 7,993 Total 125,946 114,073 Less: accumulated depreciation and amortization (64,193 ) (51,342 ) Property and equipment, net $ 61,753 $ 62,731 Depreciation expense was $5.1 million and $3.9 million for the three months ended June 30, 2017 and 2016 , respectively, and $9.8 million and $7.6 million for the six months ended June 30, 2017 and 2016 , respectively. Amortization expense of capitalized internal-use software totaled $2.1 million and $1.8 million for the three months ended June 30, 2017 and 2016 , respectively, and $4.2 million and $3.5 million for the six months ended June 30, 2017 and 2016 , respectively. The carrying value of capitalized internal-use software at June 30, 2017 and December 31, 2016 was $15.6 million and $15.4 million , respectively, including $7.1 million and $5.4 million in construction in progress, respectively. |
Goodwill and Acquired Intangibl
Goodwill and Acquired Intangible Assets | 6 Months Ended |
Jun. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Acquired Intangible Assets | Goodwill and Acquired Intangible Assets The changes in the carrying amount of goodwill for the six months ended June 30, 2017 are as follows (in thousands): Balance as of December 31, 2016 $ 45,347 Goodwill acquired 13,350 Foreign currency translation adjustments 434 Balance as of June 30, 2017 $ 59,131 Acquired intangible assets subject to amortization as of June 30, 2017 and December 31, 2016 consist of the following (in thousands): As of June 30, 2017 Cost Accumulated Amortization Foreign Currency Translation Adjustments Net Remaining Useful Life (In years) Developed technology $ 17,200 $ (8,376 ) $ (93 ) $ 8,731 4.0 Customer relationships 2,210 (1,280 ) (30 ) 900 2.6 $ 19,410 $ (9,656 ) $ (123 ) $ 9,631 As of December 31, 2016 Cost Accumulated Amortization Foreign Currency Translation Adjustments Net Remaining Useful Life (In years) Developed technology $ 14,000 $ (6,584 ) $ (169 ) $ 7,247 2.9 Customer relationships 1,800 (1,044 ) (53 ) 703 2.3 $ 15,800 $ (7,628 ) $ (222 ) $ 7,950 Amortization expense of acquired intangible assets was $1.0 million for each of the three months ended June 30, 2017 and 2016 , and $2.0 million and $1.9 million for the six months ended June 30, 2017 and 2016 , respectively. Estimated future amortization expense as of June 30, 2017 is as follows (in thousands): Remainder of 2017 $ 1,726 2018 2,736 2019 2,674 2020 1,102 2021 492 Thereafter 901 $ 9,631 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Contractual Obligations 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 $2.8 million and $2.5 million for the three months ended June 30, 2017 and 2016 , respectively, and $5.5 million and $4.7 million for the six months ended June 30, 2017 and 2016 , respectively. Except as discussed below, there were no material changes in our commitments under contractual obligations, as disclosed in our audited consolidated financial statements for the year ended December 31, 2016. During the six months ended June 30, 2017 , we entered into two operating lease agreements for which the remaining anticipated amount of rent to be paid over the noncancelable terms of the leases is approximately $55.3 million as of June 30, 2017 . During the six months ended June 30, 2017 , we entered into two agreements with cloud infrastructure providers for which we have remaining purchase obligations of approximately $35.7 million as of June 30, 2017 . The following table summarizes our remaining obligations under the two operating lease agreements and the two agreements with cloud infrastructure providers discussed above as of June 30, 2017 (in thousands): Total Less than 1 Year 1 to 3 Years 3 to 5 Years More than 5 Years Operating lease obligations $ 55,321 $ 212 $ 10,338 $ 10,957 $ 33,814 Purchase obligations 35,654 19,254 16,400 — — In August 2017, we amended an existing operating lease agreement for additional office space for which the total anticipated amount of rent to be paid over the noncancelable term of the lease for the additional space is approximately $20.2 million . 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 that arise in the ordinary course of business, including intellectual property claims, labor and employment claims, 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 balance sheets, 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 products 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 our consolidated financial statements, as a result of these obligations. Certain of our product offerings include service-level agreements warranting defined levels of uptime reliability and performance, which permit 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 our consolidated financial statements as a result of these service-level agreements. |
Common Stock and Stockholders'
Common Stock and Stockholders' Equity | 6 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Common Stock and Stockholders' Equity | Common Stock and Stockholders’ Equity Common Stock As of June 30, 2017 and December 31, 2016 , there were 400 million shares authorized for issuance with a par value of $0.01 per share. There were 100.7 million and 97.2 million shares of common stock issued and 100.2 million and 96.7 million shares outstanding as of June 30, 2017 and December 31, 2016 , respectively. Included within the number of shares issued and outstanding were approximately 24 thousand and 0.1 million shares of common stock subject to repurchase, as of June 30, 2017 and December 31, 2016 , respectively. Preferred Stock As of each of June 30, 2017 and December 31, 2016 , 10.0 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 Under our Employee Stock Purchase Plan, or ESPP, eligible employees are granted options to purchase shares of our common stock through payroll deductions. The ESPP provides for 18-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. For the three and six months ended June 30, 2017 , none and 0.4 million shares of common stock were purchased under the ESPP, respectively. Pursuant to the terms of the ESPP, the number of shares reserved under the ESPP increased by 1.0 million shares on January 1, 2017. As of June 30, 2017 , 3.9 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 initial public offering in May 2014, 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 4.8 million shares on January 1, 2017. As of June 30, 2017 , we had 8.8 million shares of common stock available for future grants under the 2014 Plan. On May 6, 2016, the compensation committee of our board of directors granted equity awards representing 1.2 million shares. These awards were granted outside of the 2014 Plan pursuant to an exemption provided for “employment inducement awards” within the meaning of Section 303A.08 of the New York Stock Exchange Listed Company Manual and accordingly did not require approval from our stockholders. A summary of our stock option and restricted stock unit, or RSU, activity for the six months ended June 30, 2017 is as follows (in thousands, except per share information): Options Outstanding RSUs Outstanding Shares Available for Grant Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding RSUs Weighted Average Grant Date Fair Value (In years) Outstanding — January 1, 2017 6,039 8,479 $ 14.52 7.49 $ 66,449 6,936 $ 20.81 Increase in authorized shares 4,833 Stock options granted (628 ) 628 26.49 RSUs granted (2,261 ) 2,261 27.24 Stock options exercised (1,545 ) 9.82 RSUs vested (1,681 ) 19.26 Stock options forfeited or canceled 190 (190 ) 23.70 RSUs forfeited or canceled 662 (662 ) 21.69 RSUs forfeited and unavailable for grant (53 ) 23.44 Outstanding — June 30, 2017 8,835 7,372 $ 16.29 7.37 $ 84,918 6,801 $ 23.22 The RSUs forfeited and unavailable for grant relate to shares withheld to satisfy tax withholding obligations associated with our employment inducement awards. The aggregate intrinsic value for options outstanding represents the difference between the closing stock price of our 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 June 30, 2017 was $27.78 . As of June 30, 2017 , we had a total of $191.1 million in future share-based compensation expense related to all equity awards to be recognized over a weighted average period of 2.7 years. |
Net Loss Per Share
Net Loss Per Share | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | Net Loss Per Share Basic net loss per share is computed by dividing net loss by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by giving effect to all potential shares of common stock, including outstanding share-based awards, to the extent dilutive. Basic and diluted net loss per share were 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 Six Months Ended 2017 2016 2017 2016 Net loss $ (29,306 ) $ (26,254 ) $ (56,300 ) $ (53,425 ) Weighted-average shares used to compute basic and diluted net loss per share 99,506 92,174 98,545 91,351 Net loss per share, basic and diluted $ (0.29 ) $ (0.28 ) $ (0.57 ) $ (0.58 ) The anti-dilutive securities excluded from the shares used to calculate diluted net loss per share are as follows (in thousands): As of June 30, 2017 2016 Shares subject to outstanding common stock options and employee stock purchase plan 7,448 10,514 Restricted stock units 6,801 8,052 14,249 18,566 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Our effective tax rates for each of the three and six months ended June 30, 2017 and 2016 were approximately 2% or less. The effective tax rate for each period 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. |
Geographic Information
Geographic Information | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Geographic Information | 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 area, as determined based on the billing address of our customers (in thousands): Three Months Ended Six Months Ended 2017 2016 2017 2016 United States $ 54,292 $ 40,068 $ 104,516 $ 77,635 EMEA 28,849 20,776 54,891 39,607 Other 18,132 13,356 34,873 25,417 Total $ 101,273 $ 74,200 $ 194,280 $ 142,659 Long-Lived Assets The following table presents our long-lived assets by geographic area (in thousands): As of As of United States $ 27,199 $ 26,372 EMEA: Republic of Ireland 5,067 5,703 Other EMEA 5,826 6,834 Total EMEA 10,893 12,537 APAC 7,997 8,357 Total $ 46,089 $ 47,266 The carrying values of capitalized internal-use software and intangible assets are excluded from the balance of long-lived assets presented in the table above. |
Overview and Basis of Present18
Overview and Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [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, 2016, filed with the SEC on February 27, 2017. 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, except as described below. In the first quarter of 2017, we changed our accounting policy for share-based compensation to recognize forfeitures as they occur, as permitted by Accounting Standards Update, or ASU, 2016-09. Refer to Recently Adopted Accounting Pronouncements below for a more detailed discussion. The consolidated balance sheet as of December 31, 2016 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 our financial position, results of operations, 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, 2017 . |
Use of Estimates | Use of Estimates The preparation of our 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 share-based awards, acquired intangible assets, goodwill and unrecognized tax benefits, the useful lives of acquired intangible assets and property and equipment, the capitalization and estimated useful life of capitalized internal-use software, and financial forecasts used in currency hedging. These estimates are based on information available as of the date of the financial statements; therefore, actual results could differ from those estimates. |
Recently Issued and Adopted Accounting Pronouncements | Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board, or the FASB, issued new revenue guidance that provides principles for recognizing revenue to which an entity expects to be entitled for the transfer of promised goods or services to customers. The guidance also requires the deferral of incremental costs to acquire contracts with customers. As currently issued and amended, the new guidance is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period, though early adoption is permitted for annual reporting periods beginning after December 15, 2016. The guidance may be applied retrospectively to each prior period presented (full retrospective method), or with the cumulative effect recognized as of the date of initial adoption (modified retrospective method). We currently intend to adopt using the full retrospective method; however, our decision has not been finalized. We have completed a preliminary assessment to determine the effect of adoption on our existing revenue arrangements and are analyzing specific transactions to confirm those conclusions. We have also begun testing our new revenue recognition systems. As a result of adoption, we also expect to capitalize a significant portion of our sales commissions and other incremental costs to acquire contracts, which we historically expensed as incurred, which will result in an increase in deferred costs recognized on our balance sheet. We have not yet concluded the useful life of our capitalized costs, which will affect the classification and magnitude of the deferred costs at each reporting period. We continue to quantify the total effect of adoption on our consolidated financial statements. To meet the incremental disclosure requirements of the new guidance, we are also developing processes that will enable our ability to disclose backlog. In February 2016, the FASB issued ASU 2016-02, regarding Accounting Standards Codification, or ASC, Topic 842 “ Leases. ” This new standard requires lessees to recognize most leases on their balance sheets as lease liabilities with corresponding right-of-use assets and eliminates certain real estate-specific provisions. The new guidance is effective for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period. Early adoption is permitted. We are currently evaluating the effect of this standard on our consolidated financial statements. Recently Adopted Accounting Pronouncements In March 2016, the FASB issued ASU 2016-09, regarding ASC Topic 718 “ Compensation - Stock Compensation. ” This amendment changes certain aspects of accounting for share-based awards to employees, including the recognition of income tax effects of awards when the awards vest or are settled, requirements on net share settlement to cover tax withholding, and accounting for forfeitures. We adopted the standard in the first quarter of 2017. As required by the new standard, we now recognize excess tax effects from share-based awards as a component of provision for income taxes in our statement of operations when awards vest or are settled. Upon adoption, we recorded a deferred tax asset of $52.8 million to reflect, on a modified retrospective basis, the previously unrecognized excess tax benefits; however, the deferred tax asset was fully offset by a valuation allowance, resulting in no impact to our consolidated financial statements. In our statement of cash flows, we no longer classify excess tax benefits as a reduction from operating cash flows. This change was made prospectively beginning with the quarter ended March 31, 2017. We also elected to account for forfeitures as they occur; therefore, share-based compensation expense for the three and six months ended June 30, 2017 have been calculated based on actual forfeitures in our consolidated statement of operations, rather than our previous approach which was net of estimated forfeitures. The cumulative-effect adjustment of this change on a modified retrospective basis was not material. Share-based compensation expense for the three and six months ended June 30, 2016 was recorded net of estimated forfeitures. In October 2016, the FASB issued ASU 2016-16, “ Income Taxes - Intra-Entity Transfers of Assets Other Than Inventory, ” which requires entities to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The new guidance is effective for annual reporting periods beginning after December 15, 2017. Early adoption is permitted as of the beginning of an annual reporting period. The new standard must be adopted using a modified retrospective basis, with the cumulative effect recognized as of the date of adoption. We adopted the standard in the first quarter of 2017. Upon adoption, we recorded a deferred tax asset of $6.2 million to reflect the previously unrecognized tax benefits; however, the deferred tax asset was fully offset by a valuation allowance, resulting in no impact to our consolidated financial statements. In May 2017, the FASB issued ASU 2017-09, regarding ASC Topic 718 “ Compensation - Stock Compensation: Scope of Modification Accounting. ” This amendment clarified what changes to terms or conditions of share-based awards require an entity to apply modification accounting. The new guidance is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. We early adopted this standard in the second quarter of 2017 on a prospective basis, as permitted by the standard. The adoption did not have and is not expected to have a material effect on our consolidated financial statements. |
Business Combination (Tables)
Business Combination (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Business Combinations [Abstract] | |
Summary of Assets Acquired and Liabilities Assumed | Goodwill will not be amortized but instead will be tested for impairment at least annually and more frequently if certain indicators of impairment are present. Net tangible assets acquired $ 96 Net deferred tax liability recognized (492 ) Identifiable intangible assets: Developed technology 3,200 Customer relationships 410 Goodwill 13,350 Total purchase price $ 16,564 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Assets Measured at Fair Value on Recurring Basis | The following tables present information about our financial assets measured at fair value on a recurring basis as of June 30, 2017 and December 31, 2016 based on the three-tier fair value hierarchy (in thousands): Fair Value Measurement at Level 1 Level 2 Total Description Corporate bonds $ — $ 134,134 $ 134,134 Asset-backed securities — 29,303 29,303 U.S. treasury securities — 25,449 25,449 Commercial paper — 11,120 11,120 Agency securities — 8,482 8,482 Money market funds 2,768 — 2,768 Total $ 2,768 $ 208,488 $ 211,256 Included in cash and cash equivalents $ 5,265 Included in marketable securities $ 205,991 Fair Value Measurement at Level 1 Level 2 Total Description Corporate bonds $ — $ 124,930 $ 124,930 Asset-backed securities — 32,567 32,567 U.S. treasury securities — 30,585 30,585 Commercial paper — 9,787 9,787 Agency securities — 8,489 8,489 Money market funds 3,545 $ — $ 3,545 Total $ 3,545 $ 206,358 $ 209,903 Included in cash and cash equivalents $ 3,545 Included in marketable securities $ 206,358 |
Schedule of Marketable Securities Classified by Contractual Maturity | The following table classifies our marketable securities by contractual maturity as of June 30, 2017 and December 31, 2016 (in thousands): June 30, December 31, Due in one year or less $ 137,489 $ 131,190 Due after one year 68,502 75,168 Total $ 205,991 $ 206,358 |
Schedule of Derivative Instruments on Consolidated Balance Sheets | The following tables present information about our derivative instruments on our consolidated balance sheets as of June 30, 2017 and December 31, 2016 (in thousands): June 30, 2017 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 $ 1,376 Accrued liabilities $ 1,507 Total $ 1,376 $ 1,507 December 31, 2016 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 $ 868 Accrued liabilities $ 4,280 Total $ 868 $ 4,280 |
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 six months ended June 30, 2017 and 2016 (in thousands): Three Months Ended June 30, 2017 Six Months Ended June 30, 2017 Hedging Instrument Location of Loss Reclassified into Earnings Gain Recognized in AOCI Loss Reclassified from AOCI into Earnings Gain Recognized in AOCI Loss Reclassified from AOCI into Earnings Foreign currency forward contracts Revenue, cost of revenue, operating expenses $ 1,495 $ (327 ) $ 2,488 $ (860 ) Total $ 1,495 $ (327 ) $ 2,488 $ (860 ) Three Months Ended June 30, 2016 Six Months Ended June 30, 2016 Hedging Instrument Location of Gain (Loss) Reclassified into Earnings Loss Recognized in AOCI Gain Reclassified from AOCI into Earnings Loss Recognized in AOCI Loss Reclassified from AOCI into Earnings Foreign currency forward contracts Revenue, cost of revenue, operating expenses $ (2,772 ) $ 114 $ (425 ) $ (148 ) Total $ (2,772 ) $ 114 $ (425 ) $ (148 ) |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Components of Property and Equipment | Property and equipment, net consists of the following (in thousands): June 30, December 31, Hosting equipment $ 37,413 $ 35,018 Leasehold improvements 28,055 25,396 Capitalized internal-use software 27,938 25,773 Computer equipment and licensed software and patents 15,228 11,879 Furniture and fixtures 9,281 8,014 Construction in progress 8,031 7,993 Total 125,946 114,073 Less: accumulated depreciation and amortization (64,193 ) (51,342 ) Property and equipment, net $ 61,753 $ 62,731 |
Goodwill and Acquired Intangi22
Goodwill and Acquired Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Changes in Carrying Amount of Goodwill | The changes in the carrying amount of goodwill for the six months ended June 30, 2017 are as follows (in thousands): Balance as of December 31, 2016 $ 45,347 Goodwill acquired 13,350 Foreign currency translation adjustments 434 Balance as of June 30, 2017 $ 59,131 |
Summary of Intangible Assets Acquired | Acquired intangible assets subject to amortization as of June 30, 2017 and December 31, 2016 consist of the following (in thousands): As of June 30, 2017 Cost Accumulated Amortization Foreign Currency Translation Adjustments Net Remaining Useful Life (In years) Developed technology $ 17,200 $ (8,376 ) $ (93 ) $ 8,731 4.0 Customer relationships 2,210 (1,280 ) (30 ) 900 2.6 $ 19,410 $ (9,656 ) $ (123 ) $ 9,631 As of December 31, 2016 Cost Accumulated Amortization Foreign Currency Translation Adjustments Net Remaining Useful Life (In years) Developed technology $ 14,000 $ (6,584 ) $ (169 ) $ 7,247 2.9 Customer relationships 1,800 (1,044 ) (53 ) 703 2.3 $ 15,800 $ (7,628 ) $ (222 ) $ 7,950 |
Summary of Estimated Future Amortization Expense | Estimated future amortization expense as of June 30, 2017 is as follows (in thousands): Remainder of 2017 $ 1,726 2018 2,736 2019 2,674 2020 1,102 2021 492 Thereafter 901 $ 9,631 |
Commitments and Contingencies C
Commitments and Contingencies Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Remaining Obligations Under Operating Lease Agreements | The following table summarizes our remaining obligations under the two operating lease agreements and the two agreements with cloud infrastructure providers discussed above as of June 30, 2017 (in thousands): Total Less than 1 Year 1 to 3 Years 3 to 5 Years More than 5 Years Operating lease obligations $ 55,321 $ 212 $ 10,338 $ 10,957 $ 33,814 Purchase obligations 35,654 19,254 16,400 — — |
Common Stock and Stockholders24
Common Stock and Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Summary of Stock Option and RSU Award Activity | A summary of our stock option and restricted stock unit, or RSU, activity for the six months ended June 30, 2017 is as follows (in thousands, except per share information): Options Outstanding RSUs Outstanding Shares Available for Grant Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding RSUs Weighted Average Grant Date Fair Value (In years) Outstanding — January 1, 2017 6,039 8,479 $ 14.52 7.49 $ 66,449 6,936 $ 20.81 Increase in authorized shares 4,833 Stock options granted (628 ) 628 26.49 RSUs granted (2,261 ) 2,261 27.24 Stock options exercised (1,545 ) 9.82 RSUs vested (1,681 ) 19.26 Stock options forfeited or canceled 190 (190 ) 23.70 RSUs forfeited or canceled 662 (662 ) 21.69 RSUs forfeited and unavailable for grant (53 ) 23.44 Outstanding — June 30, 2017 8,835 7,372 $ 16.29 7.37 $ 84,918 6,801 $ 23.22 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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 Six Months Ended 2017 2016 2017 2016 Net loss $ (29,306 ) $ (26,254 ) $ (56,300 ) $ (53,425 ) Weighted-average shares used to compute basic and diluted net loss per share 99,506 92,174 98,545 91,351 Net loss per share, basic and diluted $ (0.29 ) $ (0.28 ) $ (0.57 ) $ (0.58 ) |
Schedule of Anti-Dilutive Securities Excluded from the Diluted per Share Calculation | The anti-dilutive securities excluded from the shares used to calculate diluted net loss per share are as follows (in thousands): As of June 30, 2017 2016 Shares subject to outstanding common stock options and employee stock purchase plan 7,448 10,514 Restricted stock units 6,801 8,052 14,249 18,566 |
Geographic Information (Tables)
Geographic Information (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Revenue by Geographic Areas | The following table presents our revenue by geographic area, as determined based on the billing address of our customers (in thousands): Three Months Ended Six Months Ended 2017 2016 2017 2016 United States $ 54,292 $ 40,068 $ 104,516 $ 77,635 EMEA 28,849 20,776 54,891 39,607 Other 18,132 13,356 34,873 25,417 Total $ 101,273 $ 74,200 $ 194,280 $ 142,659 |
Schedule of Long-Lived Assets by Geographic Areas | The following table presents our long-lived assets by geographic area (in thousands): As of As of United States $ 27,199 $ 26,372 EMEA: Republic of Ireland 5,067 5,703 Other EMEA 5,826 6,834 Total EMEA 10,893 12,537 APAC 7,997 8,357 Total $ 46,089 $ 47,266 |
Overview and Basis of Present27
Overview and Basis of Presentation - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | |
Accounting Standards Update 2016-16 | |||
Subsidiary, Sale of Stock [Line Items] | |||
Deferred tax asset, gross | $ 52.8 | ||
Deferred tax asset valuation allowance | $ 52.8 | ||
Accounts Receivable | Customer Concentration Risk | |||
Subsidiary, Sale of Stock [Line Items] | |||
Concentration risk (percent) | 10.00% | ||
Sales Revenue, Net | Customer Concentration Risk | |||
Subsidiary, Sale of Stock [Line Items] | |||
Concentration risk (percent) | 10.00% | 10.00% | |
Adjustments for New Accounting Principle, Early Adoption | Accounting Standards Update 2016-16 | |||
Subsidiary, Sale of Stock [Line Items] | |||
Deferred tax asset related to intra-entity transfers of assets | $ 6.2 |
Business Combination - Narrativ
Business Combination - Narrative (Details) - Outbound Solutions Inc | Apr. 27, 2017USD ($) |
Business Acquisition [Line Items] | |
Cash consideration | $ 16,600,000 |
Goodwill expected to be tax deductible | $ 0 |
Developed technology | |
Business Acquisition [Line Items] | |
Acquired intangible assets weighted average useful life | 6 years 6 months |
Developed technology | |
Business Acquisition [Line Items] | |
Acquired intangible assets weighted average useful life | 3 years 6 months |
Business Combination - Summary
Business Combination - Summary of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Apr. 27, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | |||
Goodwill | $ 59,131 | $ 45,347 | |
Outbound Solutions Inc | |||
Business Acquisition [Line Items] | |||
Net tangible assets acquired | $ 96 | ||
Net deferred tax liability recognized | (492) | ||
Goodwill | 13,350 | ||
Total purchase price | 16,564 | ||
Developed technology | Outbound Solutions Inc | |||
Business Acquisition [Line Items] | |||
Identifiable intangible assets: | 3,200 | ||
Developed technology | Outbound Solutions Inc | |||
Business Acquisition [Line Items] | |||
Identifiable intangible assets: | $ 410 |
Financial Instruments - Financi
Financial Instruments - Financial Assets Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Included in marketable securities | $ 205,991 | $ 206,358 |
Fair Value Measurements, Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total fair value of financial assets | 211,256 | 209,903 |
Included in cash and cash equivalents | 5,265 | 3,545 |
Included in marketable securities | 205,991 | 206,358 |
Fair Value Measurements, Recurring | Corporate bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total fair value of financial assets | 134,134 | 124,930 |
Fair Value Measurements, Recurring | Asset-backed securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total fair value of financial assets | 29,303 | 32,567 |
Fair Value Measurements, Recurring | U.S. treasury securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total fair value of financial assets | 25,449 | 30,585 |
Fair Value Measurements, Recurring | Commercial paper | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total fair value of financial assets | 11,120 | 9,787 |
Fair Value Measurements, Recurring | Agency securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total fair value of financial assets | 8,482 | 8,489 |
Fair Value Measurements, Recurring | Money market funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total fair value of financial assets | 2,768 | 3,545 |
Fair Value Measurements, Recurring | Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total fair value of financial assets | 2,768 | 3,545 |
Fair Value Measurements, Recurring | Level 1 | Corporate bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total fair value of financial assets | 0 | 0 |
Fair Value Measurements, Recurring | Level 1 | Money market funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total fair value of financial assets | 2,768 | 3,545 |
Fair Value Measurements, Recurring | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total fair value of financial assets | 208,488 | 206,358 |
Fair Value Measurements, Recurring | Level 2 | Corporate bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total fair value of financial assets | 134,134 | 124,930 |
Fair Value Measurements, Recurring | Level 2 | Asset-backed securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total fair value of financial assets | 29,303 | 32,567 |
Fair Value Measurements, Recurring | Level 2 | U.S. treasury securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total fair value of financial assets | 25,449 | 30,585 |
Fair Value Measurements, Recurring | Level 2 | Commercial paper | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total fair value of financial assets | 11,120 | 9,787 |
Fair Value Measurements, Recurring | Level 2 | Agency securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total fair value of financial assets | 8,482 | 8,489 |
Fair Value Measurements, Recurring | Level 2 | Money market funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total fair value of financial assets | $ 0 | $ 0 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2016 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Securities that were in an unrealized loss position for more than 12 months. | $ 0 | $ 0 |
Cash collateral posted | 0 | 1,100,000 |
Foreign currency forward contracts | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Unrealized loss in accumulated other comprehensive loss | 400,000 | |
Reclassification from accumulated other comprehensive income into earnings over next 12 month | 500,000 | |
Notional value | 90,100,000 | 79,600,000 |
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 |
Maximum | Foreign currency forward contracts | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative, maturity | 15 months |
Financial Instruments - Marketa
Financial Instruments - Marketable Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Fair Value Disclosures [Abstract] | ||
Due in one year or less | $ 137,489 | $ 131,190 |
Due after one year | 68,502 | 75,168 |
Total | $ 205,991 | $ 206,358 |
Financial Instruments - Schedul
Financial Instruments - Schedule of Derivative Instruments on Consolidated Balance Sheets (Details) - Designated as Hedging Instrument - Level 2 - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Derivatives Fair Value [Line Items] | ||
Asset Derivatives | $ 1,376 | $ 868 |
Liability Derivatives | 1,507 | 4,280 |
Foreign currency forward contracts | Other current assets | ||
Derivatives Fair Value [Line Items] | ||
Asset Derivatives | 1,376 | 868 |
Foreign currency forward contracts | Accrued liabilities | ||
Derivatives Fair Value [Line Items] | ||
Liability Derivatives | $ 1,507 | $ 4,280 |
Financial Instruments - Sched34
Financial Instruments - Schedule of Derivative Instruments on Statement of Operations (Details) - Designated as Hedging Instrument - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Derivative Instruments Gain Loss [Line Items] | ||||
Gain (Loss) Recognized in AOCI | $ 1,495 | $ (2,772) | $ 2,488 | $ (425) |
Gain (Loss) Reclassified from AOCI into Earnings | (327) | 114 | (860) | (148) |
Revenue, cost of revenue, operating expenses | Foreign currency forward contracts | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Gain (Loss) Recognized in AOCI | 1,495 | (2,772) | 2,488 | (425) |
Gain (Loss) Reclassified from AOCI into Earnings | $ (327) | $ 114 | $ (860) | $ (148) |
Property and Equipment - Compon
Property and Equipment - Components of Property and Equipment (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Property Plant And Equipment [Line Items] | ||
Total | $ 125,946 | $ 114,073 |
Less: accumulated depreciation and amortization | (64,193) | (51,342) |
Property and equipment, net | 61,753 | 62,731 |
Hosting equipment | ||
Property Plant And Equipment [Line Items] | ||
Total | 37,413 | 35,018 |
Leasehold improvements | ||
Property Plant And Equipment [Line Items] | ||
Total | 28,055 | 25,396 |
Capitalized internal-use software | ||
Property Plant And Equipment [Line Items] | ||
Total | 27,938 | 25,773 |
Computer equipment and licensed software and patents | ||
Property Plant And Equipment [Line Items] | ||
Total | 15,228 | 11,879 |
Furniture and fixtures | ||
Property Plant And Equipment [Line Items] | ||
Total | 9,281 | 8,014 |
Construction in progress | ||
Property Plant And Equipment [Line Items] | ||
Total | $ 8,031 | $ 7,993 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |||||
Depreciation expense | $ 5.1 | $ 3.9 | $ 9.8 | $ 7.6 | |
Amortization expense of capitalized internal-use software | 2.1 | $ 1.8 | 4.2 | $ 3.5 | |
Carrying value of capitalized internal-use software | 15.6 | 15.6 | $ 15.4 | ||
Capitalized internal-use software included in construction in progress | $ 7.1 | $ 7.1 | $ 5.4 |
Goodwill and Acquired Intangi37
Goodwill and Acquired Intangible Assets - Changes in Carrying Amount of Goodwill (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2017USD ($) | |
Goodwill [Roll Forward] | |
Balance as of December 31, 2016 | $ 45,347 |
Goodwill acquired | 13,350 |
Foreign currency translation adjustments | 434 |
Balance as of June 30, 2017 | $ 59,131 |
Goodwill and Acquired Intangi38
Goodwill and Acquired Intangible Assets - Acquired Intangible Assets Subject to Amortization (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Finite Lived Intangible Assets [Line Items] | ||
Cost | $ 19,410 | $ 15,800 |
Accumulated Amortization | (9,656) | (7,628) |
Foreign Currency Translation Adjustments | (123) | (222) |
Net | 9,631 | 7,950 |
Developed technology | ||
Finite Lived Intangible Assets [Line Items] | ||
Cost | 17,200 | 14,000 |
Accumulated Amortization | (8,376) | (6,584) |
Foreign Currency Translation Adjustments | (93) | (169) |
Net | $ 8,731 | $ 7,247 |
Remaining Useful Life | 4 years | 2 years 10 months 24 days |
Developed technology | ||
Finite Lived Intangible Assets [Line Items] | ||
Cost | $ 2,210 | $ 1,800 |
Accumulated Amortization | (1,280) | (1,044) |
Foreign Currency Translation Adjustments | (30) | (53) |
Net | $ 900 | $ 703 |
Remaining Useful Life | 2 years 7 months 2 days | 2 years 3 months 2 days |
Goodwill and Acquired Intangi39
Goodwill and Acquired Intangible Assets - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense | $ 1 | $ 1 | $ 2 | $ 1.9 |
Goodwill and Acquired Intangi40
Goodwill and Acquired Intangible Assets - Estimated Future Amortization Expense (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Remainder of 2017 | $ 1,726 | |
2,018 | 2,736 | |
2,019 | 2,674 | |
2,020 | 1,102 | |
2,021 | 492 | |
Thereafter | 901 | |
Net | $ 9,631 | $ 7,950 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Jul. 31, 2017 | |
Other Commitments [Line Items] | |||||
Rent expense | $ 2,800 | $ 2,500 | $ 5,500 | $ 4,700 | |
Operating Leases, Future Minimum Payments Due, Rolling Maturity [Abstract] | |||||
Total amount of rent to be paid | 55,321 | 55,321 | |||
Operating lease obligations less than one year | 212 | 212 | |||
Operating lease obligations one to three years | 10,338 | 10,338 | |||
Operating lease obligations three to five years | 10,957 | 10,957 | |||
Operating lease obligations more than five years | 33,814 | 33,814 | |||
Subsequent Event | |||||
Operating Leases, Future Minimum Payments Due, Rolling Maturity [Abstract] | |||||
Total amount of rent to be paid | $ 20,200 | ||||
Cloud Infrastructure Agreements | |||||
Purchase Obligation, Fiscal Year Maturity [Abstract] | |||||
Purchase obligations | 35,654 | 35,654 | |||
Purchase obligations due in less than one year | 19,254 | 19,254 | |||
Purchase obligations due one to three years | 16,400 | 16,400 | |||
Purchase obligations due three to five years | 0 | 0 | |||
Purchase obligations due after year five | $ 0 | $ 0 |
Common Stock and Stockholders42
Common Stock and Stockholders' Equity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | Jan. 01, 2017 | May 06, 2016 | Jun. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Class Of Stock [Line Items] | |||||
Common stock, shares authorized (in shares) | 400,000,000 | 400,000,000 | 400,000,000 | ||
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 | $ 0.01 | ||
Common stock, shares issued (in shares) | 100,700,000 | 100,700,000 | 97,200,000 | ||
Common stock, shares outstanding (in shares) | 100,200,000 | 100,200,000 | 96,700,000 | ||
Common stock shares outstanding, subject to repurchase (in shares) | 24,000 | 24,000 | 100,000 | ||
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 | 10,000,000 | ||
Preferred stock, par value (usd per share) | $ 0.01 | $ 0.01 | $ 0.01 | ||
Preferred stock, shares issued (in shares) | 0 | 0 | 0 | ||
Preferred stock, shares outstanding (in shares) | 0 | 0 | 0 | ||
Increase in authorized shares (in shares), shares | 4,833,000 | ||||
Shares of common stock available for issuance (in shares) | 8,835,000 | 8,835,000 | 6,039,000 | ||
Stock options granted (in shares) | 1,200,000 | 628,000 | |||
Share price (usd per share) | $ 27.78 | $ 27.78 | |||
Future period share-based compensation expense | $ 191.1 | $ 191.1 | |||
Future period share-based compensation expense, period to recognized | 2 years 8 months 2 days | ||||
Employee Stock Purchase Plan Awards | |||||
Class Of Stock [Line Items] | |||||
Offering period | 18 months | ||||
2009 Stock Option and Grant Plan | |||||
Class Of Stock [Line Items] | |||||
Shares of common stock available for issuance (in shares) | 0 | 0 | |||
2014 Plan | Employee Stock Option | |||||
Class Of Stock [Line Items] | |||||
Increase in authorized shares (in shares), shares | 4,800,000 | ||||
Shares of common stock available for issuance (in shares) | 8,800,000 | 8,800,000 | |||
Employee Stock Purchase Plan | |||||
Class Of Stock [Line Items] | |||||
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 (in shares) | 0 | 400,000 | |||
Increase in authorized shares (in shares), shares | 1,000,000 | ||||
Shares of common stock available for issuance (in shares) | 3,900,000 | 3,900,000 |
Common Stock and Stockholders43
Common Stock and Stockholders' Equity - Summary of Stock Option and RSU Award Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | May 06, 2016 | Jun. 30, 2017 | Dec. 31, 2016 |
Shares Available for Grant | |||
Outstanding — January 1, 2017 | 6,039 | ||
Increase in authorized shares, shares | 4,833 | ||
Stock options granted, shares | (628) | ||
RSUs granted, shares | (2,261) | ||
Stock options forfeited or canceled, shares | 190 | ||
RSUs forfeited or canceled, shares | 662 | ||
Outstanding — June 30, 2017 | 8,835 | 6,039 | |
Number of Shares | |||
Balance at the beginning of the period, shares | 8,479 | ||
Stock options granted, shares | 1,200 | 628 | |
Stock options exercised, shares | (1,545) | ||
Stock options forfeited or canceled, shares | (190) | ||
Balance at the end of the period, shares | 7,372 | 8,479 | |
Weighted-Average Exercise Price | |||
Balance at the beginning of the period (usd per share) | $ 14.52 | ||
Stock options granted (usd per share) | 26.49 | ||
Stock options exercised (usd per share) | 9.82 | ||
Stock options forfeited or canceled (usd per share) | 23.70 | ||
Balance at the end of the period (usd per share) | $ 16.29 | $ 14.52 | |
Weighted Average Remaining Contractual Term | |||
Weighted Average Remaining Contractual Term | 7 years 4 months 13 days | 7 years 5 months 27 days | |
Aggregate Intrinsic Value | |||
Aggregate intrinsic value, beginning | $ 66,449 | ||
Aggregate intrinsic value, ending | $ 84,918 | $ 66,449 | |
RSUs Outstanding | |||
Outstanding RSUs | |||
Balance at the beginning of the period, shares | 6,936 | ||
RSUs granted, shares | 2,261 | ||
RSUs vested, shares | (1,681) | ||
RSUs forfeited or canceled, shares | (662) | ||
RSUs forfeited and unavailable for grant, shares | (53) | ||
Balance at the end of the period, shares | 6,801 | 6,936 | |
Weighted-Average Grant Date Fair Value | |||
Balance at the beginning of the period (usd per share) | $ 20.81 | ||
Weighted average grant date fair value, RSUs granted (usd per share) | 27.24 | ||
Weighted average grant date fair value, RSUs vested (usd per share) | 19.26 | ||
Weighted average grant date fair value, RSUs forfeited or canceled (usd per share) | 21.69 | ||
Weighted average grant date fair value, forfeited and unavailable for grant (usd per share) | 23.44 | ||
Balance at the end of the period (usd per share) | $ 23.22 | $ 20.81 |
Net Loss per Share - Computatio
Net Loss per Share - Computation of Basic and Diluted Net Loss per Share of Common Stock (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Earnings Per Share [Abstract] | ||||
Net loss | $ (29,306) | $ (26,254) | $ (56,300) | $ (53,425) |
Weighted-average shares used to compute basic and diluted net loss per share | 99,506 | 92,174 | 98,545 | 91,351 |
Net loss per share, basic and diluted (usd per share) | $ (0.29) | $ (0.28) | $ (0.57) | $ (0.58) |
Net Loss per Share - Schedule o
Net Loss per Share - Schedule of Anti-Dilutive Securities Excluded from the Diluted per Share Calculation (Details) - shares shares in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share amount (in shares) | 14,249 | 18,566 |
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 (in shares) | 7,448 | 10,514 |
Restricted stock units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share amount (in shares) | 6,801 | 8,052 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate, percent, less than | 2.00% | 2.00% | 2.00% | 2.00% |
Geographic Information - Additi
Geographic Information - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2017segments | |
Segment Reporting [Abstract] | |
Number of reportable segments | 1 |
Geographic Information - Schedu
Geographic Information - Schedule of Revenue by Geographic Areas (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Revenue | $ 101,273 | $ 74,200 | $ 194,280 | $ 142,659 |
United States | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Revenue | 54,292 | 40,068 | 104,516 | 77,635 |
EMEA | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Revenue | 28,849 | 20,776 | 54,891 | 39,607 |
Other | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Revenue | $ 18,132 | $ 13,356 | $ 34,873 | $ 25,417 |
Geographic Information - Sche49
Geographic Information - Schedule of Long-Lived Assets by Geographic Areas (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Long-lived assets | $ 46,089 | $ 47,266 |
United States | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Long-lived assets | 27,199 | 26,372 |
Republic of Ireland | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Long-lived assets | 5,067 | 5,703 |
Other EMEA | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Long-lived assets | 5,826 | 6,834 |
EMEA | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Long-lived assets | 10,893 | 12,537 |
APAC | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Long-lived assets | $ 7,997 | $ 8,357 |