Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 10, 2017 | Jun. 30, 2016 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | MOBILEIRON, INC. | ||
Entity Central Index Key | 1,470,099 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 144 | ||
Entity Common Stock, Shares Outstanding | 89,226,493 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 54,043 | $ 47,234 |
Short-term investments | 36,184 | 49,576 |
Accounts receivable, net of allowance for doubtful accounts of $433 and $628 at December 31, 2016 and December 31, 2015, respectively | 43,755 | 42,674 |
Prepaid expenses and other current assets | 6,131 | 4,809 |
TOTAL CURRENT ASSETS | 140,113 | 144,293 |
Long-term investments | 2,094 | |
Property and equipment-net | 5,503 | 6,572 |
Intangible assets-net | 645 | 1,261 |
Goodwill | 5,475 | 5,475 |
Other assets | 1,370 | 1,419 |
TOTAL ASSETS | 153,106 | 161,114 |
Current liabilities: | ||
Accounts payable | 701 | 2,551 |
Accrued expenses | 21,674 | 19,196 |
Deferred revenue-current | 68,153 | 55,978 |
TOTAL CURRENT LIABILITIES | 90,528 | 77,725 |
Long-term liabilities: | ||
Deferred revenue-noncurrent | 19,923 | 13,897 |
Other long-term liabilities | 1,838 | 1,353 |
TOTAL LIABILITIES | 112,289 | 92,975 |
Commitments and contingencies (Note 13) | ||
Stockholders' equity: | ||
Common stock, $0.0001 par value, 300,000,000 shares authorized, 89,066,031 shares and 81,326,237 shares issued and outstanding at December 31, 2016 and December 31, 2015, respectively | 9 | 8 |
Additional paid-in capital | 383,193 | 343,336 |
Accumulated deficit | (342,385) | (275,205) |
TOTAL STOCKHOLDERS' EQUITY | 40,817 | 68,139 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 153,106 | $ 161,114 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Statement Of Financial Position [Abstract] | ||
Accounts receivable allowances | $ 433 | $ 628 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 89,066,031 | 81,326,237 |
Common stock, shares outstanding | 89,066,031 | 81,326,237 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenue | |||
Perpetual license | $ 45,775 | $ 53,512 | $ 66,816 |
Subscription | 61,357 | 48,080 | 30,227 |
Software support and services | 56,794 | 47,706 | 35,252 |
Total revenue | 163,926 | 149,298 | 132,295 |
Cost of revenue | |||
Perpetual license | 2,658 | 2,881 | 4,448 |
Subscription | 8,297 | 7,181 | 5,719 |
Software support and services | 19,412 | 18,115 | 13,868 |
Restructuring charge | 181 | ||
Total cost of revenue | 30,548 | 28,177 | 24,035 |
Gross profit | 133,378 | 121,121 | 108,260 |
Operating expenses: | |||
Research and development | 67,398 | 61,871 | 46,278 |
Sales and marketing | 101,757 | 105,520 | 99,870 |
General and administrative | 29,695 | 36,037 | 22,400 |
Restructuring charges | 871 | 1,049 | |
Amortization of intangible assets | 782 | ||
Total operating expenses | 199,721 | 204,477 | 169,330 |
Operating loss | (66,343) | (83,356) | (61,070) |
Other (income) expense - net | (145) | 274 | 302 |
Loss before income taxes | (66,198) | (83,630) | (61,372) |
Income tax expense | 982 | 852 | 517 |
Net loss | $ (67,180) | $ (84,482) | $ (61,889) |
Net loss per share, basic and diluted | $ (0.78) | $ (1.07) | $ (1.30) |
Weighted-average shares used to compute net loss per share, basic and diluted | 85,845 | 78,755 | 47,517 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) $ in Thousands | Preferred Stock | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Total |
BALANCE at Dec. 31, 2013 | $ 160,259 | $ 2 | $ 19,007 | $ (128,834) | $ (109,825) |
BALANCE, Shares at Dec. 31, 2013 | 49,446,072 | 11,008,283 | |||
Issuance of common stock for stock option exercises, net of repurchases | 2,280 | $ 2,280 | |||
Issuance of common stock for stock option exercises, net of repurchases, Shares | 1,044,087 | 1,089,708 | |||
Vesting of early exercised stock options | 669 | $ 669 | |||
Vesting of early exercised stock options, Shares | 1,400,259 | ||||
Issuance of Series F preferred stock at $9.9550 per share—net of issuance costs | $ 1,994 | ||||
Issuance of Series E or F preferred stock at $9.9550 per share - net of issuance costs (in Shares) | 200,903 | ||||
Stock-based compensation | 16,749 | 16,749 | |||
Conversion of preferred stock for initial public offering | $ (162,253) | $ 5 | 162,248 | 162,253 | |
Conversion of preferred stock for initial public offering, Shares | (49,646,975) | 49,646,975 | |||
Issuance of common stock for initial public offering, net of issuance costs of $4,076 | $ 1 | 102,874 | 102,875 | ||
Issuance of common stock for initial public offering, net of issuance costs of $4,076, Shares | 12,777,777 | ||||
Purchase of Averail Corporation | 1,982 | 1,982 | |||
Purchase of Averail Corporation | 276,463 | ||||
Net loss | (61,889) | (61,889) | |||
BALANCE at Dec. 31, 2014 | $ 8 | 305,809 | (190,723) | 115,094 | |
BALANCE, Shares at Dec. 31, 2014 | 76,153,844 | ||||
Issuance of common stock for stock option exercises, net of repurchases | 5,846 | $ 5,846 | |||
Issuance of common stock for stock option exercises, net of repurchases, Shares | 2,776,221 | 2,817,915 | |||
Vesting of early exercised stock options | 246 | $ 246 | |||
Vesting of early exercised stock options, Shares | 198,564 | ||||
Issuance of common stock pursuant to the Employee Stock Purchase Plan | 7,359 | 7,359 | |||
Issuance of common stock pursuant to the Employee Stock Purchase Plan, Shares | 1,273,147 | ||||
Vesting of restricted stock units, Shares | 924,461 | ||||
Stock-based compensation | 24,076 | 24,076 | |||
Net loss | (84,482) | (84,482) | |||
BALANCE at Dec. 31, 2015 | $ 8 | 343,336 | (275,205) | 68,139 | |
BALANCE, Shares at Dec. 31, 2015 | 81,326,237 | ||||
Issuance of common stock for stock option exercises, net of repurchases | 2,468 | $ 2,468 | |||
Issuance of common stock for stock option exercises, net of repurchases, Shares | 1,040,902 | 1,040,902 | |||
Vesting of early exercised stock options | 43 | $ 43 | |||
Vesting of early exercised stock options, Shares | 9,957 | ||||
Issuance of common stock pursuant to the Employee Stock Purchase Plan | 4,851 | 4,851 | |||
Issuance of common stock pursuant to the Employee Stock Purchase Plan, Shares | 1,799,341 | ||||
Issuance of common shares pursuant to the Employee Stock-Settled Bonus Plan | $ 1 | 5,638 | 5,639 | ||
Issuance of common stock shares pursuant to the Employee Stock-Settled Bonus Plan, shares | 1,653,371 | ||||
Vesting of restricted stock units, Shares | 3,236,223 | ||||
Stock-based compensation | 26,857 | 26,857 | |||
Net loss | (67,180) | (67,180) | |||
BALANCE at Dec. 31, 2016 | $ 9 | $ 383,193 | $ (342,385) | $ 40,817 | |
BALANCE, Shares at Dec. 31, 2016 | 89,066,031 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (Parenthetical) $ in Thousands | 12 Months Ended |
Dec. 31, 2014USD ($)$ / shares | |
Preferred Stock | Series F Preferred Stock | |
Preferred stock, per share | $ / shares | $ 9.9550 |
Stock issuance costs | $ 6 |
Common Stock | |
Stock issuance costs | $ 4,076 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net loss | $ (67,180) | $ (84,482) | $ (61,889) |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Stock-based compensation expense | 34,389 | 28,791 | 16,749 |
Depreciation | 3,348 | 2,757 | 2,215 |
Amortization of intangible assets | 616 | 870 | 1,430 |
Amortization of premium (accretion) of investment securities | (14) | 368 | |
Provision for doubtful accounts | 77 | 150 | 54 |
Loss on disposal of equipment | 99 | 21 | |
Changes in operating assets and liabilities: | |||
Accounts receivable | (1,158) | (8,148) | (10,605) |
Other current and noncurrent assets | (447) | (932) | (835) |
Accounts payable | (1,297) | 1,414 | (12) |
Accrued expenses and other long-term liabilities | 1,637 | (5,024) | 2,881 |
Deferred revenue | 18,201 | 15,701 | 13,422 |
Net cash used in operating activities | (11,729) | (48,535) | (36,569) |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Purchase of property and equipment | (2,930) | (3,730) | (3,119) |
Proceeds from maturities of investment securities | 94,631 | 44,964 | |
Purchase of investment securities | (79,134) | (60,913) | (36,104) |
Purchase of intellectual property | (650) | ||
Net cash provided by (used in) investing activities | 12,567 | (19,679) | (39,873) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Amount drawn from revolving line of credit | 3,300 | ||
Repayments of revolving line of credit | (7,600) | ||
Proceeds from the issuance of convertible preferred stock-net of cash issuance costs | 1,994 | ||
Proceeds from initial public offering | 106,950 | ||
Payment of offering costs related to initial public offering | (4,076) | ||
Proceeds from Employee Stock Purchase Plan | 4,332 | 5,406 | 4,280 |
Proceeds from exercise of stock options | 1,639 | 5,755 | 2,308 |
Net cash provided by financing activities | 5,971 | 11,161 | 107,156 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | 6,809 | (57,053) | 30,714 |
CASH AND CASH EQUIVALENTS-Beginning of period | 47,234 | 104,287 | 73,573 |
CASH AND CASH EQUIVALENTS-End of period | 54,043 | 47,234 | 104,287 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | |||
Cash paid for income taxes | 1,021 | 595 | 271 |
SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING ACTIVITIES RELATED TO ACQUISITIONS | |||
Fair value of assets acquired | 2,276 | ||
Liabilities assumed | (294) | ||
Issuance of common stock | (1,982) | ||
SUPPLEMENTAL DISCLOSURES OF NONCASH FINANCING ACTIVITIES: | |||
Value of shares issued under the 2015 Non-Executive Bonus Plan | 5,639 | ||
Value of shares issued under the Employee Stock Purchase Plan | $ 4,851 | 7,359 | |
Purchase of property and equipment recorded in accounts payable | 554 | ||
Tenant improvement allowance recorded in property and equipment and liabilities | $ 1,068 | ||
Offering costs recorded in accrued liabilities | $ 27 |
Description of Business and Sig
Description of Business and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Description of Business and Significant Accounting Policies | 1. Description of Busines Description of Business MobileIron, Inc. and its wholly owned subsidiaries, collectively, the “Company”, “we”, “us” or “our”, provides a purpose-built mobile IT platform that enables enterprises to manage and secure mobile applications, content and devices while providing their employees with device choice, privacy and a native user experience. We were incorporated in Delaware in July 2007 and are headquartered in Mountain View, California, with additional sales and support presence in North America, Europe, the Middle East, Asia and Australia. Initial Public Offering In June 2014, we completed our initial public offering, or our IPO, in which we issued and sold 12,777,777 shares of common stock, including 1,666,666 million shares of common stock sold pursuant to the full exercise of the underwriters’ over-allotment option, at a price of $9.00 per share. We received aggregate proceeds of $107.0 million from the sale of shares of common stock, net of underwriters’ discounts and commissions, but before deducting offering expenses of approximately $4.1 million. Upon the closing of the initial public offering, all shares of our outstanding convertible preferred stock automatically were converted into 49,646,975 shares of common stock. Basis of Presentation and Consolidation The accompanying audited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles, or GAAP, and include the accounts of our wholly owned subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation. Stock Split In May 2014, we amended and restated our amended and restated certificate of incorporation to effect a seven-for-five reverse stock split of our common stock and convertible preferred stock. On the effective date of the reverse stock split, (i) each seven shares of outstanding convertible preferred stock and common stock was reduced to five shares of convertible preferred stock and common stock, respectively; (ii) the number of shares of common stock issuable under each outstanding option to purchase common stock was proportionately reduced on a seven-for-five basis; (iii) the exercise price of each outstanding option to purchase common stock was proportionately increased on a seven-for-five basis; and (iv) corresponding adjustments in the per share conversion prices, dividend rates and liquidation preferences of the convertible preferred stock were made. All of the share and per share information referenced throughout this Annual Report on Form 10-K and notes to the consolidated financial statements have been retroactively adjusted to reflect this reverse stock split. Foreign Currency Translation Our reporting currency is the U.S. dollar. The functional currency of all our international operations is the U.S. dollar. All monetary asset and liability accounts are translated into U.S. dollars at the period-end rate, nonmonetary assets and liabilities are translated at historical exchange rates, and revenue and expenses are translated at the weighted-average exchange rates in effect during the period. Translation adjustments arising are recorded as foreign currency gains (losses) in the consolidated statements of operations. We recognized a foreign currency loss of approximately $339,000, $518,000 and $304,000 in 2016, 2015 and 2014, respectively, in other (income) expense—net in our consolidated statements of operations. Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. These estimates include, but are not limited to, revenue recognition, stock-based compensation, goodwill, intangible assets and accounting for income taxes. Actual results could differ from those estimates. Concentrations of Credit Risk Financial instruments that potentially subject us to a concentration of credit risk consist of cash, money market funds and fixed income investments. Although we deposit our cash with multiple financial institutions, our deposits, at times, exceed federally insured limits. We invest in fixed income securities that are of high-credit quality. Substantially all of our money market funds, or $15.0 million, are held in two funds that are rated “AAA.” We generally do not require collateral or other security in support of accounts receivable. Allowances are provided for individual accounts receivable when we become aware of a customer’s inability to meet its financial obligations, such as in the case of bankruptcy, deterioration in the customer’s operating results, or change in financial position. If circumstances related to customers change, estimates of the recoverability of receivables would be further adjusted. We also consider broader factors in evaluating the sufficiency of our allowances for doubtful accounts, including the length of time receivables are past due, significant one-time events and historical experience. Activity in our allowance for doubtful accounts was as follow (in thousands): Balance at Bad Write-offs, Balance at Beginning Debt Net of End of Period Expense Recoveries of Period Balance as of December 31, 2016 $ $ Balance as of December 31, 2015 $ $ Balance as of December 31, 2014 $ $ One reseller accounted for 16% (1% as an end customer), 17% (1% as an end customer) and 22% (2% as an end customer) of total revenue in 2016, 2015 and 2014, respectively. The same reseller accounted for 15% and 14% of net accounts receivable as of December 31, 2016 and 2015, respectively. There were no other resellers or end-user customers that accounted for 10% or more as a percentage of our revenue or net accounts receivable for any period presented. Segments We have one reportable segment. Summary of Significant Accounting Policies Revenue Recognition We derive revenue principally from software-related arrangements consisting of perpetual software licenses, post-contract customer support for such licenses, or PCS or software support, including when and if available updates, and professional services such as consulting and training services. We also offer our software as term-based licenses and cloud-based arrangements. In addition, we install our software on servers that we ship to customers. We begin to recognize revenue when (i) persuasive evidence of an arrangement exists, (ii) delivery has occurred or services have been provided, (iii) the sales price is fixed or determinable, and (iv) collection of the related receivable is probable. If collection is not considered probable, revenue is recognized only upon collection. Signed agreements, including by electronic acceptance, are used as evidence of an arrangement. Delivery is considered to occur when we provide a customer with a link and credentials to download our software. Delivery of a hardware appliance (an “appliance”) is considered to occur when title and risk of loss has transferred to the customer, which typically occurs when appliances are delivered to a common carrier. Delivery of services occurs when performed. Prior to January 1, 2013, we had not established vendor specific objective evidence, or VSOE, of fair value for any of the elements in our multiple-element arrangements. As of January 1, 2013, we determined that we had sufficient history to establish VSOE of fair value for PCS and professional services. Prior to January 1, 2013, we did not have VSOE of fair value for our software-related undelivered elements due to limited history of stand-alone sales transactions and inconsistency in pricing. We established VSOE of fair value when we had a substantial majority of stand-alone sales transactions of software support and services pricing within a narrow pricing band. In our VSOE analysis, we generally include stand-alone sales transactions completed during a rolling 12 month period unless a shorter period is appropriate due to changes in our pricing structure. We typically enter into multiple-element arrangements with our customers in which a customer may purchase a combination of software on a perpetual or subscription license, PCS, and professional services. The professional services are not considered essential to the functionality of the software. All of these elements are considered separate units of accounting. Our standard agreements do not include rights for customers to cancel or terminate arrangements or to return software to obtain refunds. We use the residual method to recognize revenue when a perpetual license arrangement includes one or more elements to be delivered at a future date provided the following criteria are met: (i) VSOE of fair value does not exist for one or more of the delivered items but exists for all undelivered elements, (ii) all other applicable revenue recognition criteria are met and (iii) the fair value of all of the undelivered elements is less than the arrangement fee. VSOE of fair value is based on the normal pricing practices for those products and services when sold separately by us and contractual customer renewal rates for post-contract customer support services. Under the residual method, the fair value of the undelivered elements is deferred and the remaining portion of the arrangement fee is recognized as revenue in the period in which it was earned. If evidence of the fair value of one or more undelivered elements does not exist, then the revenue is deferred and recognized when delivery of those elements occurs, or when fair value can be established, or ratably over the PCS period if the only undelivered element is PCS—we refer to these deferred revenue elements as the “Deferred Portion.” Revenue from subscriptions to our on premise term licenses, arrangements where perpetual and subscriptions to our on premise term licenses are sold together, and subscriptions to our cloud service are recognized ratably over the contractual term for all periods presented and are included as a component of subscription revenue within our consolidated statements of operations. We refer to arrangements where perpetual and subscriptions to our on premise term licenses are sold together as “Bundled Arrangements.” Occasionally, we enter into multiple-element arrangements with our customers in which a customer may purchase a combination of software on a perpetual or term basis, PCS, professional services, and appliances. We generally provide the appliances and software upon the commencement of the arrangement and provide software-related elements throughout the support period. We account for appliance-bundled arrangements under the revised accounting standard related to multiple-element arrangements, Accounting Standard Update, or ASU, No. 2009-13, Multiple Element Arrangements , and determine the revenue to be recognized based on the standard’s fair value hierarchy and then determine the value of each element in the arrangement based on the relative selling price of the arrangement. Amounts related to appliances are generally recognized upon delivery with the remaining consideration allocated to software and software-related elements, which are recognized as described elsewhere in this policy. Revenue from PCS is recognized ratably over the support term and is included as a component of software support and service revenue within the consolidated statements of operations. Revenue related to professional services is recognized upon delivery and is included as a component of software support and services revenue within the consolidated statements of operations. Prior to establishing VSOE of fair value for PCS and professional services on January 1, 2013, we recognized revenue for multiple element software and software-related arrangements ratably from the date of service commencement over the contractual term of the related PCS arrangement. After January 1, 2013, the deferred revenue related to these arrangements continues to be recognized ratably over the remaining contractual term of the PCS arrangement. We recognized $1.8 million and $5.2 million of perpetual license revenue in 2015 and 2014, respectively, from sales made prior to January 1, 2013. In 2016, we recognized no significant revenue from sales made prior to January 1, 2013. We allocated the revenue from all multiple-element arrangements entered into prior to the establishment of VSOE of fair value for our PCS and professional services to each respective revenue caption using our best estimate of value of each element based on the facts and circumstances of the arrangements, our go-to-market strategy, price list and discounts from price list as applicable. We believe that the allocation between the revenue captions allows for greater transparency and comparability of revenue from period to period even though VSOE of fair value may not have existed at that time. Appliance revenue was less than 10% of total revenue for all periods presented and is included as a component of perpetual license revenue within the consolidated statements of operations. Historically, sales made through resellers were fulfilled directly to end users, and we recognized revenue when we delivered licenses to end users and all other revenue recognition criteria were met. Over time, however, our business has evolved and some of our operators, system integrators and other resellers have requested that we deliver licenses to them. In those instances we recognize revenue at the time that we deliver to our resellers and all other revenue recognition criteria are met; such resellers have no rights of return or exchange. Shipping charges and sales tax billed to partners are excluded from revenue. Sales commissions and other incremental costs to acquire contracts are also expensed as incurred and are recorded in sales and marketing expense. For all arrangements, any revenue that has been deferred and is expected to be recognized beyond one year is classified as long-term deferred revenue in the consolidated balance sheets. Cash Equivalents We consider all highly liquid investments with an original maturity of three months or less to be cash equivalents. As of December 31, 2016 and 2015, cash and cash equivalents consisted of cash deposited with banks, money market funds and investments that mature within three months of their purchase. Held-To-Maturity Investments We determine the appropriate classification of our fixed income investments at the time of purchase and reevaluate their classifications each reporting period. Investments are classified as held-to-maturity since the Company has positive intent and the ability to hold the securities to maturity. Held-to-maturity securities are stated at amortized cost. Comprehensive Loss Comprehensive loss includes all changes in equity (net assets) during a period from non-owner sources. In 2016, 2015 and 2014, there were no differences between net loss and comprehensive loss. Therefore, the consolidated statements of comprehensive loss have been omitted. Net Loss per Share of Common Stock Basic net loss per common share is calculated by dividing the net loss by the weighted-average number of common shares outstanding during the period, without consideration for potentially dilutive securities. Diluted net loss per share is computed by dividing the net loss by the weighted-average number of common shares and potentially dilutive securities outstanding for the period determined using the treasury-stock and if-converted methods. For purposes of the diluted net loss per share calculation, convertible preferred stock, unvested restricted stock, restricted stock units and stock options are considered to be potentially dilutive securities. Because we have reported a net loss for 2016, 2015 and 2014, the number of shares used to calculate diluted net loss per common share is the same as the number of shares used to calculate basic net loss per common share for those periods presented because the potentially dilutive shares would have been anti-dilutive if included in the calculation. Software Development Costs Incurred in Connection with Software to be Sold or Marketed The costs to develop new software products and enhancements to existing software products are expensed as incurred until technological feasibility has been established. We consider technological feasibility to have occurred when all planning, designing, coding and testing have been completed according to design specifications. Once technological feasibility is established, any additional costs would be capitalized. We believe our current process for developing software is essentially completed concurrent with the establishment of technological feasibility, and accordingly, no costs have been capitalized. Internal Use Software We capitalize costs incurred during the application development stage related to our internally used software. Such costs are primarily incurred by third-party vendors and consultants. Costs related to preliminary project activities and post-implementation activities are expensed as incurred. Amounts capitalized in all periods presented were not significant. All software development costs incurred in connection with our cloud offering, or SaaS, are also sold or marketed to partners or end customers, therefore we start capitalizing costs when technological feasibility is achieved. No costs were capitalized in any periods presented as we believe that our current process for developing software is essentially completed concurrent with the establishment of technological feasibility. Property and Equipment Property and equipment are stated at cost. Depreciation is computed using the straight-line method over the estimated useful life of the property and equipment, determined to be three years for computers and equipment and software, five years for furniture and fixtures, and the lesser of the remaining lease term or estimated useful life for leasehold improvements. Expenditures for repairs and software support are charged to expense as incurred. Upon disposition, the cost and related accumulated depreciation are removed from the accounts and the resulting gain or loss is reflected as operating expenses in the consolidated statements of operations. Goodwill and Intangible Assets We record the excess of the acquisition purchase price over the fair value of the tangible and identifiable intangible assets acquired as goodwill. We perform an impairment test of our goodwill in the third quarter of our fiscal year, or more frequently if indicators of potential impairment arise. We have a single reporting unit and consequently evaluate goodwill for impairment based on an evaluation of the fair value of the Company as a whole. We record purchased intangible assets at their respective estimated fair values at the date of acquisition. Purchased intangible assets are being amortized using the straight-line method over their remaining estimated useful lives, which range from three to five years. We evaluate the remaining useful lives of intangible assets on a periodic basis to determine whether events or circumstances warrant a revision to the remaining estimated amortization period. We have determined that our intangible assets have not been impaired during the years ended December 31, 2016, 2015 and 2014. Long-Lived Assets with Finite Lives Long-lived assets are reviewed for possible impairment whenever events or circumstances indicate that the carrying amount of these assets may not be recoverable. We evaluate the recoverability of each of our long-lived assets, including purchased intangible assets and property and equipment, by comparison of its carrying amount to the future undiscounted cash flows we expect the asset to generate. If we consider the asset to be impaired, we measure the amount of any impairment as the difference between the carrying amount and the fair value of the impaired asset. Stock-Based Compensation We use the estimated grant-date fair value method of accounting in accordance with Accounting Standards Codification, or ASC, Topic 718 Compensation—Stock Compensation . Fair value is determined using the Black-Scholes Model using various inputs, including our estimates of expected volatility, term and future dividends. We estimated the forfeiture rate in 2016, 2015 and 2014 based on our historical experience for annual grant years where the majority of the vesting terms have been satisfied. We recognize compensation costs for awards with service and performance vesting conditions and for our Employee Stock Purchase Plan, or ESPP, on an accelerated method over the requisite service period of the award. For stock options or restricted stock grants with no performance condition, we recognize compensation costs on a straight-line basis over the requisite service period of the award, which is generally the vesting term of four years. Research and Development Research and development, or R&D, costs are charged to expense as incurred. Advertising Advertising costs are expensed and included in sales and marketing expense when incurred. Advertising expense in 2016, 2015 and 2014 was $305,000, $256,000 and $526,000, respectively. Income Taxes We account for income taxes in accordance with ASC Topic 740, Income Taxes , under which deferred tax liabilities and assets are recognized for the expected future tax consequences of temporary differences between financial statement carrying amounts and the tax basis of assets and liabilities and net operating loss and tax credit carryforwards. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. We use a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. A tax position is recognized when it is more likely than not that the tax position will be sustained upon examination, including resolution of any related appeals or litigation processes. A tax position that meets the more-likely-than-not recognition threshold is measured at the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement with a taxing authority. The standard also provides guidance on derecognition of tax benefits, classification on the balance sheet, interest and penalties, accounting in interim periods, disclosure and transition. Recent Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board, or FASB, or other standard setting bodies and adopted by us as of the specified effective date. Unless otherwise discussed, the impact of recently issued standards that are not yet effective will not have a material impact on our financial position or results of operations upon adoption. In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments – Credit Losses – Measurement of Credit Losses on Financial Instruments, which introduces a model based on expected losses to estimate credit losses for most financial assets and certain other instruments. In addition, for available-for-sale debt securities with unrealized losses, the losses will be recognized as allowances rather than reductions in the amortized cost of the securities. The standard is effective for annual reporting periods beginning after December 15, 2019, with early adoption permitted for annual reporting periods beginning after December 15, 2018. Entities will apply the standard’s provisions by recording a cumulative-effect adjustment to retained earnings. We are evaluating the impact of the adoption on our consolidated balance sheet, results of operations, cash flows and disclosures. In May 2014, the FASB, jointly with the International Accounting Standards Board, issued a comprehensive new standard on revenue recognition from contracts with customers. The standard’s core principle is that a reporting entity will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In applying this new guidance to contracts within its scope, an entity will: (1) identify the contract(s) with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when (or as) the entity satisfies a performance obligation. Additionally, this new guidance will require significantly expanded disclosures about revenue recognition. As clarified by the FASB on July 9, 2015, provisions of this new standard are effective for annual reporting periods (including interim reporting periods within those annual periods) beginning after December 15, 2017. Early adoption is permitted for annual reporting periods (including interim reporting periods within those annual periods) beginning after December 15, 2016. Entities have the option of using either a full retrospective or a modified retrospective approach to adopt this new guidance. We currently plan to adopt the new standard effective January 1, 2018. We anticipate this standard will have a material impact on our consolidated financial statements. While we are continuing to assess all potential impacts of the standard, we believe the most significant impact relates to our accounting for subscriptions to our on-premise licenses, specifically, as under the new standard we expect to recognize revenue from those subscriptions predominantly at the time of billing rather than ratably over the license term. In addition, we expect accounting for commissions to be impacted significantly as we will capitalize and amortize most commissions under the new standard instead of expensing commissions as incurred. Due to the complexity of certain of our contracts, the revenue recognition treatment required under the new standard will be dependent on contract-specific terms. In February 2016, the FASB finalized the Accounting Standard Update, or ASU, 2016-02, “Leases”. ASU 2016-02 requires lessees to recognize the assets and liabilities on the balance sheet for the rights and obligations created by most leases (leases with the term of 12 months or longer) and continue to recognize expenses on the income statements over the lease term. It will also require disclosure designed to give financial statement users information on the amount, timing, and uncertainly of cash flows arising from leases. The guidance is effective for annual reporting periods beginning after December 15, 2018 and interim periods within those fiscal years. As a result of this new standard, we expect to record a lease commitment liability and corresponding asset for most of our leases. We will adopt ASU 2016-02 effective January 1, 2019. In March 2016, the FASB issued new Accounting Standard Update, or ASU, 2016-09, “Improvements to Employee Share-Based Payment Accounting”. ASU 2016-09 simplifies several aspects of the accounting for employee share-based payment transactions including the accounting for income taxes, forfeitures, statutory tax withholding requirements and classification in the statement of cash flows. Under the new standard, excess tax benefits and tax deficiencies are to be recognized as income tax expense or benefit in the income statement and the excess tax benefits and tax deficiencies are considered discrete items in the reporting period they occur and are not included in the estimate of an entity’s annual effective tax rate. Excess tax benefits will be classified along with other cash flows related to income taxes as an operating activity. The ASU allows an entity to elect as an accounting policy either to continue to estimate the total number of awards that are expected to vest or account for forfeitures when they occur. The ASU modifies the current exception to liability classification of an award when an employer uses a net-settlement feature to withhold shares to meet the employer’s minimum statutory tax withholding requirement. The guidance is effective for annual reporting periods beginning after December 15, 2016 and interim periods within those fiscal years. We will adopt all relevant provisions of this update in the first quarter of fiscal 2017. We do not expect, that adoption of this update will have a significant effect on our consolidated balance sheet, results of operations, cash flows or statement of shareholders equity because we have a full valuation allowance on our deferred tax assets but it will have an impact on our disclosures. As part of this adoption, we will make an accounting policy election to continue to estimate the total number of awards that are expected to vest. |
Significant Balance Sheet Compo
Significant Balance Sheet Components | 12 Months Ended |
Dec. 31, 2016 | |
Balance Sheet Related Disclosures [Abstract] | |
Significant Balance Sheet Components | 2. Significant Balance Sheet Components Property and Equipment —Property and equipment at December 31, 2016 and 2015 consisted of the following (in thousands): As of December 31, 2016 2015 Computers and appliances $ $ Purchased software Furniture and fixtures Leasehold improvements Total property and equipment Accumulated depreciation and amortization Total property and equipment—net $ $ Accrued Expenses —Accrued expenses at December 31, 2016 and 2015 consisted of the following (in thousands): As of December 31, 2016 2015 Accrued commissions $ $ Accrued stock-settled bonus Accrued vacation Employee Stock Purchase Plan liability Other accrued payroll-related expenses Other accrued liabilities Total accrued expenses $ $ Deferred Revenue —Current and noncurrent deferred revenue at December 31, 2016 and 2015 consisted of the following (in thousands): As of December 31, 2016 2015 Perpetual license $ $ Subscription Software support Professional services Total current and noncurrent deferred revenue $ $ |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | 3. Fair Value Measurement With the exception of our held-to-maturity fixed income investments, we report financial assets and liabilities and nonfinancial assets and liabilities that are recognized or disclosed at fair value in the consolidated financial statements on a recurring basis in accordance with ASC 820 (formerly FASB Statement No. 157, Fair Value Measurements ). ASC 820 defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities, which are required to be recorded at fair value, we consider the principal or most advantageous market in which we would transact and the market-based risk measurements or assumptions that market participants would use in pricing the asset or liability, such as inherent risk, transfer restrictions and credit risk. ASC 820 also establishes a fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value into three levels. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is available and significant to the fair value measurement. ASC 820 establishes and prioritizes three levels of inputs that may be used to measure fair value: · Level 1—Inputs are unadjusted quoted prices in active markets for identical assets or liabilities. · Level 2—Inputs are quoted prices for similar assets and liabilities in active markets or inputs other than quoted prices that are observable for the assets or liabilities, either directly or indirectly through market corroboration, for substantially the full term of the financial instruments. · Level 3—Inputs are unobservable inputs based on our own assumptions used to measure assets and liabilities at fair value. The inputs require significant management judgment or estimation. Our financial assets that are carried at fair value include cash and money market funds. We had no financial liabilities, or nonfinancial assets and liabilities that were required to be measured at fair value on a recurring basis, or that were measured at fair value as of December 31, 2016 or 2015. Our financial instruments measured at fair market value as of December 31, 2016 and 2015 were as follows: As of December 31, 2016 (in thousands) Level 1 Level 2 Level 3 Total Money market funds $ $ — $ — $ Corporate debt securities — — Commercial paper — — Total $ $ $ — $ As of December 31, 2015 (in thousands) Level 1 Level 2 Level 3 Total Money market funds $ $ — $ — $ Corporate debt securities — — Commercial paper — — Securities and obligations of U.S. government agencies — — Total $ $ $ — $ |
Investments
Investments | 12 Months Ended |
Dec. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | 4. Investments Our portfolio of fixed income securities consists of commercial paper, corporate debt securities and securities and obligations of U.S. government agencies. All our investments in fixed income securities are classified as held-to-maturity. These investments are carried at amortized cost. Our investments in fixed income securities as of December 31, 2016 and 2015 were as follows: As of December 31, 2016 Amortized Fair (in thousands) cost Gains Losses Value Corporate debt securities $ $ — $ $ Commercial paper Total $ $ $ $ As of December 31, 2015 Amortized Fair (in thousands) cost Gains Losses Value Corporate debt securities $ $ $ $ Commercial paper Securities and obligations of U.S. government agencies — Total $ $ $ $ The following table summarizes the balance sheet classification of our investments: As of December 31, (in thousands) 2016 2015 Cash equivalents $ $ Short-term investments Long-term investments — Total investments $ $ The gross amortized cost and estimated fair value of our held-to-maturity investments at December 31, 2016 and 2015 by contractual maturity are shown below. Actual maturities may differ from contractual maturities because the issuers of the securities may have the right to prepay obligations without prepayment penalties. As of December 31, 2016 2015 Gross Gross Amortized Fair Amortized Fair (in thousands) Cost Value Cost Value Due in one year or less $ $ $ $ Due after one year through five years — — Total $ $ $ $ We monitor our investment portfolio for impairment on a periodic basis. In order to determine whether a decline in fair value is other-than-temporary, we evaluate, among other factors: the duration and extent to which the fair value has been less than the carrying value; our financial condition and business outlook, including key operational and cash flow metrics, current market conditions and future trends in our industry; our relative competitive position within the industry; and our intent and ability to retain the investment for a period of time sufficient to allow for any anticipated recovery in fair value. A decline in the fair value of the security below amortized cost that is deemed other-than-temporary is charged to earnings, resulting in the establishment of a new cost basis for the affected securities. In 2016, we had an insignificant amount of unrealized gains or losses, and we did not recognize any other-than-temporary impairments . |
Acquisition
Acquisition | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | 5. Acquisitions In November 2014, we purchased developed technology for $650,000 to enhance our product portfolio, which we capitalized in intangible assets—net on the accompanying balance sheet and expect to amortize on a straight-line basis over its estimated useful life of three years. In April 2014, we completed the acquisition of certain assets of Averail Corporation, or Averail, a privately-held content security-oriented software company, for 276,463 shares of common stock and the assumption of certain liabilities. The assets acquired will provide additional features in our Docs Work product. Included in the total, 43,612 shares subject to a holdback provision for standard representations and warranties were released in October 2015. The aggregate purchase price of the transaction was approximately $2.0 million, net of liabilities assumed. In connection with this acquisition, 103,231 of these shares were distributed to entities affiliated with Storm Ventures, and 103,232 of these shares were issued to entities affiliated with Foundation Capital, subject to certain holdback provisions. The Storm Ventures entities and the Foundation Capital entities each collectively hold more than 5% of our capital stock. In addition, Tae Hea Nahm, an affiliate of Storm Ventures, serves on our board of directors and was a director of Averail prior to its acquisition. The aggregate value of the securities issued to our investors was approximately $1.5 million. The total consideration for this transaction was approximately $2.0 million and consisted of the following (in thousands except share data): Common stock issued (232,854 shares) $ Holdback common stock (43,612 shares) Total consideration $ Transaction costs associated with the acquisition were $167,000, all of which we expensed in 2014, and are included in general and administrative expense in the accompanying consolidated statements of operations . We accounted for the Averail acquisition as a business combination. The assets acquired and liabilities assumed were recorded at fair market value. The excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired was recorded as goodwill. The goodwill generated from this business combination was primarily related to value placed on the employee workforce and expected synergies. Goodwill for all acquisitions is not amortized and is not deductible for tax purposes. The purchase price was allocated as follows (in thousands): Technology – intangible asset $ Goodwill Liabilities assumed Net assets acquired $ The technology intangible asset is being amortized on a straight-line basis over a period of four years and is reported, net of accumulated amortization, in the accompanying consolidated balance sheets as of December 31, 2016 and 2015. Amortization expense related to the intangible asset was $400,000 in each of 2016 and 2015 and $300,000 in 2014, and was included in cost of revenue. The amount of revenue and earnings from the acquisitions are included in the condensed consolidated statements of operations and pro forma results of operations for the acquisition have not been presented because the effect of the acquisition was not significant to our financial results. |
Goodwill and Intangibles
Goodwill and Intangibles | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangibles | 6. Goodwill and Intangibles The following table reflects intangible assets subject to amortization as of December 31, 2016 and 2015 (in thousands): December 31, 2016 Gross Carrying Accumulated Net Book Amount Amortization Impairment Value Technology $ $ — $ Total $ $ $ — $ December 31, 2015 Gross Carrying Accumulated Net Book Amount Amortization Impairment Value Technology $ $ — $ Total $ $ $ — $ Amortization of the technology intangible assets was recorded in cost of revenue. The weighted average remaining life of our intangible assets on December 31, 2016 was 1.1 years. Estimated remaining intangible assets amortization expense for their remaining lives as follows (in thousands): Year 2017 2018 2019 — Total $ At December 31, 2016, 2015 and 2014, the carrying value of goodwill was $5.5 million. |
Restructuring Charge
Restructuring Charge | 12 Months Ended |
Dec. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charge | 7. Restructuring Charges We initiated business restructuring plans in 2015 and 2016 to reduce our cost structure through workforce reductions. These restructuring activities were substantially complete as of December 31, 2016. The following table sets forth a summary of restructuring activities which took place during the years ended December 31, 2016 and 2015 (in thousands): Severance and Related Costs Balance, December 31, 2014 $ — Provision for restructuring charges Cash payments Balance, December 31, 2015 $ — Provision for restructuring charges Cash payments Balance, December 31, 2016 $ The remaining restructuring balance as of December 31, 2016 relates to employee severance, which we expect to pay by March 31, 2017. |
Line of Credit
Line of Credit | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Line of Credit | 8. Line of Credit We have a $20.0 million revolving line of credit with a financial institution that can be used to (a) borrow for working capital and general business requirements, (b) issue letters of credit, and (c) enter into foreign exchange contracts. Amounts borrowed accrue interest at a floating per annum rate equal to the prime rate. A default interest rate shall apply during an event of default at a rate per annum equal to 5% above the otherwise applicable interest rate. The line of credit is collateralized by substantially all of our assets, except intellectual property, and requires us to comply with working capital, net worth and other covenants, including limitations on indebtedness and restrictions on dividend distributions, among others, and the borrowing capacity is limited to eligible accounts receivable. We are required to maintain an adjusted quick ratio (defined as the ratio of current assets to current liabilities minus deferred revenue) of at least 1.25. In 2014, we withdrew $3.3 million and repaid $7.6 million under our line of credit. There were no outstanding amounts under the line of credit at December 31, 2016 and 2015. In May 2015, we issued a letter of credit for $1.5 million as a security deposit for a new Mountain View facility lease thereby reducing the borrowing capacity under our line of credit to $18.5 million. In July 2015, we amended our revolving line of credit and extended its maturity date to August 2017. There were no other outstanding amounts under the line of credit at December 31, 2016 and 2015, we were in compliance with all financial covenants. |
Preferred Stock
Preferred Stock | 12 Months Ended |
Dec. 31, 2016 | |
Temporary Equity Disclosure [Abstract] | |
Preferred Stock | 9. Preferred Stock Upon completion of our IPO in June 2014, all shares of our issued and outstanding convertible preferred stock were automatically converted into 49,646,975 shares of common stock. We amended and restated our certificate of incorporation in June 2014 to authorize the future issuance of up to 10,000,000 shares of convertible preferred stock. No shares of convertible preferred stock were issued and outstanding as of December 31, 2016. In January 2014, we issued 200,903 shares of Series F for net cash proceeds of $2.0 million. The following table summarizes information regarding our convertible preferred stock by class immediately prior to the IPO (in thousands, except share and per share data): Per share Aggregate Shares liquidation liquidation Carrying Authorized Outstanding preference preference value Series A $ $ $ Series B Series C Series D Series E Series F Total $ $ |
Common Stock
Common Stock | 12 Months Ended |
Dec. 31, 2016 | |
Stockholders Equity Note [Abstract] | |
Common Stock | 10. Common Stock We were authorized to issue 300,000,000 shares of common stock with a par value of $0.0001 per share as of December 31, 2016 and 2015. Each share of common stock is entitled to one vote. The holders of common stock are also entitled to receive dividends from funds available, when and if declared by the board of directors, subject to the approval and priority rights of holders of all classes of preferred stock outstanding. As of December 31, 2016 and 2015, we reserved shares of common stock for issuance as follows: As of December 31, 2016 2015 Options outstanding Unvested restricted stock units outstanding Unvested early exercised stock options Shares available for grant under the 2014 Equity Incentive Plan Shares available for purchase under the Employee Stock Purchase Plan Total |
Share Based Awards
Share Based Awards | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share Based Awards | 11. Share Based Awards 2008 Plan The 2008 Stock Plan, or 2008 Plan, which expired on June 12, 2014, provided for the grant of incentive and nonstatutory stock options to employees, nonemployee directors and consultants of the Company. Options granted under the 2008 Plan generally become exercisable within three to four years following the date of grant and expire 10 years from the date of grant. When options are subject to our repurchase right, we may buy back any unvested shares at their original exercise price in the event of an employee’s termination prior to full vesting. Our 2008 Plan was terminated following the date our 2014 Equity Incentive Plan, or the 2014 Plan, became effective. Any outstanding stock awards under our 2008 Plan will continue to be governed by the terms of our 2008 Plan and applicable award agreements. 2014 Equity Incentive Plan Our board of directors adopted our 2014 Plan on April 17, 2014, and our stockholders subsequently approved the 2014 Plan on May 27, 2014. The 2014 Plan became effective on the date that our registration statement was declared effective by the SEC. The 2014 Plan is the successor to and continuation of our 2008 Plan. Upon the effective date of the 2014 Plan, no further grants can be made under our 2008 Plan. Our 2014 Plan provides for the grant of incentive stock options, or ISOs, within the meaning of Section 422 of the Internal Revenue Code, or the Code, to our employees and our parent and subsidiary corporations’ employees, and for the grant of nonstatutory stock options, or NSOs, stock appreciation rights, restricted stock awards, restricted stock unit awards, performance-based stock awards, and other forms of equity compensation to our employees, directors and consultants. Additionally, our 2014 Plan provides for the grant of performance cash awards to our employees, directors and consultants. The initial number of shares of our common stock available to be issued under our 2014 Plan was 8,142,857, which number of shares will be increased by any shares subject to stock options or other stock awards granted under the 2008 Plan that would have otherwise returned to our 2008 Plan (such as upon the expiration or termination of a stock award prior to vesting), not to exceed 16,312,202. The number of shares of our common stock reserved for issuance under our 2014 Plan automatically increase on January 1 of each year, beginning on January 1, 2015 and continuing through and including January 1, 2024, by 5% of the total number of shares of our capital stock outstanding on December 31 of the preceding calendar year, or a lesser number of shares determined by our board of directors. On January 1, 2016, we increased the number of shares of common stock reserved for issuance under our 2014 Plan by 4,066,933 shares, which was 5% of the total number of capital stock outstanding at December 31, 2015. Amended and Restated 2015 Inducement Plan On December 20, 2015, our board of directors adopted our Amended and Restated 2015 Inducement Plan, or the Inducement Plan, to reserve 1,600,000 shares of our common stock to be used exclusively for grants of awards to individuals that were not previously employees or directors of the Company. The terms and conditions of the Plan are substantially similar to our stockholder-approved 2014 Plan. On January 5, 2016 our board of directors approved the amendment and restatement of the Inducement Plan to increase the share reserve under the Inducement Plan to 1,970,000 shares of our common stock. As of December 31, 2016 there were 1,970,000 options and restricted stock units outstanding under the Inducement Plan. 2014 Employee Stock Purchase Plan Our board of directors adopted our 2014 Employee Stock Purchase Plan, or ESPP, on April 17, 2014, and our stockholders subsequently approved the ESPP on May 27, 2014. The ESPP became effective immediately upon the execution and delivery of the underwriting agreement related to our IPO. The purpose of the ESPP is to secure the services of new employees, to retain the services of existing employees and to provide incentives for such individuals to exert maximum efforts toward our success and that of our affiliates. The ESPP is intended to qualify as an “employee stock purchase plan” within the meaning of Section 423 of the Code. The ESPP permits eligible employees to purchase our common stock through payroll deductions, which may not exceed 15% of the employee’s base compensation. Stock may be purchased under the plan at a price equal to 85% of the fair market value of our common stock on either the first day of the offering or the last day of the applicable purchase period, whichever is lower. As of December 31, 2016 and 2015 , approximately 575,974 and 1,561,929 shares of common stock were available for future issuance under our ESPP, respectively. The number of shares of our common stock reserved for issuance under our ESPP increase automatically each year, beginning on January 1, 2015 and continuing through and including January 1, 2024, by the lesser of (i) 1% of the total number of shares of our common stock outstanding on December 31 of the preceding calendar year; (ii) 2,142,857 shares of common stock; or (iii) such lesser number as determined by our board of directors. Shares subject to purchase rights granted under our ESPP that terminate without having been exercised in full will not reduce the number of shares available for issuance under our ESPP. On January 1, 2016, we increased the number of shares available for issuance under the ESPP by 813,386 shares, which was 1% of the total number of capital stock outstanding at December 31, 2015. Restricted Stock and Restricted Stock Units Restricted stock activity in 2014 and 2015 was as follows: Restricted Stock Time - and - Time - based performance based Total shares shares shares Unvested, December 31, 2013 Granted — Vested Cancelled/Forfeited Unvested, December 31, 2014 Granted — — — Vested Cancelled/Forfeited — Unvested, December 31, 2015 — — — No restricted stock was granted, vested or cancelled/forfeited in 2016. For stock-based compensation expense, we measured the value of the restricted stock based on the fair value of our common stock on the date of grant. Our restricted stock grants were subject to service only or service and performance-based vesting conditions. We expensed the fair value of restricted stock grants with service only vesting conditions on a straight-line basis over the vesting period of the awards. For restricted stock subject to service and performance conditions, we evaluated the probability of meeting the vesting conditions at the end of each reporting period to determine how much compensation expense to record. We amortized the fair value, net of estimated forfeitures, as stock-based compensation expense using the graded vesting method over the vesting periods of the awards. To the extent that actual results or updated estimates differed from our original estimates, the cumulative effect on current and prior periods of those changes was recorded in the period those estimates were revised. In 2014 we began granting restricted stock units under our 2014 Plan. For stock-based compensation expense, we measure the value of the restricted stock units based on the fair value of our common stock on the date of grant. Our restricted stock unit grants are subject to service conditions and we expense the fair value of those shares on a straight-line basis over their vesting periods. Our restricted stock unit activity for 2014, 2015 and 2016 was as follows: Restricted Stock Units Weighted- Average Number of Grant Date Shares Fair Value Unvested, December 31, 2013 — $ — Granted Vested — — Cancelled/Forfeited Unvested, December 31, 2014 $ Granted Vested Cancelled/Forfeitures Unvested, December 31, 2015 $ Granted Vested Cancelled/Forfeitures Unvested, December 31, 2016 $ Bonus Plans In 2015, our board of directors approved the 2015 Executive Bonus Plan and 2015 Non-Executive Bonus Plan, or 2015 Bonus Plan, which provided for the issuance of shares of unrestricted common stock to employees based on meeting certain Company metrics. We issued 1,653,371 shares of unrestricted common stock in the first quarter of 2016 based on amounts earned under the 2015 Non-Executive Bonus Plan. No shares were issued under the 2015 Executive Bonus Plan. Shares issued from the 2015 Non-Executive Bonus Plan reduced the 2014 Plan shares available for issuance. In May 2016, our compensation committee approved the 2016 Executive Bonus Plan and 2016 Non-Executive Bonus Plan, or 2016 Bonus Plans, each effective as of January 1, 2016. We recorded stock-based compensation expense related to the 2015 and 2016 Bonus Plans over the service period of eligible employees based on forecasted performance relative to the Company metrics. To the extent that updated estimates of bonus expense differed from original estimates, the cumulative effect on current and prior periods of those changes was recorded in the period those estimates were revised. In 2015 we recorded $4.7 million of stock-based compensation expense under the 2015 Non-Executive Bonus Plan. In 2016 we recorded $6.6 million of stock-based compensation expense under the 2016 Bonus Plans and $923,000 under the 2015 Non-Executive Bonus Plan. Stock Options Stock option activity under the 2008 Plan, 2014 Plan and the Inducement Plan in 2014, 2015 and 2016 was as follows: Options Outstanding Weighted- Number of Average Aggregate Shares Weighted- Remaining Intrinsic Available Number of Average Contractual Value for Issuance Shares Exercise Price Term (Years) (In thousands) Balance—December 31, 2013 $ $ Authorized — Stock options granted Restricted stock units granted — Exercised (1) — Stock options canceled Restricted stock units canceled — Repurchased — Balance—December 31, 2014 $ $ Authorized — Stock options granted Restricted stock units granted — Exercised Stock options canceled Restricted stock units canceled — Repurchased — Balance—December 31, 2015 $ $ Authorized — Stock options granted Issuance of shares under 2016 Bonus Plans — Restricted stock units granted — Exercised — Stock options canceled Restricted stock units canceled — Balance—December 31, 2016 $ $ Vested and exercisable—December 31, 2016 $ $ Vested and expected to vest(2)—December 31, 2016 $ $ (1) Includes early exercises of 42,772 in 2014. In 2015 or 2016 no shares of common stock were issued for the exercise of common stock options prior to their vesting dates, or early exercises. (2) Options expected to vest are net of an estimated forfeiture rate. Additional information regarding options outstanding at December 31, 2016 is as follows : Options Outstanding Options Exercisable Weighted- Average Remaining Weighted- Weighted- Number of Contractual Average Number of Average Range of exercises Shares Term (Years) Exercise Price Shares Exercise Price $0.04 — $2.90 $ $ $3.08 — $3.70 $3.77 — $5.77 $6.20 — $10.80 $12.05 — $12.05 Outstanding at December 31, 2016 $ $ The aggregate pretax intrinsic value of vested options exercised in 2016, 2015 and 2014 was $1.4 million, $11.8 million and $5.4 million, respectively. The intrinsic value is the difference between the estimated fair value of the Company’s common stock at the date of exercise and the exercise price for in-the-money options. The weighted-average grant-date fair value of options granted in 2016, 2015 and 2014 was $1.42, $3.04 and $4.09 per share, respectively. Our stock-based compensation expense was recorded in the following cost and expense categories (in thousands): Year Ended December 31, 2016 2015 2014 Contra-revenue $ — $ — $ Cost of revenue Research and development Sales and marketing General and administrative Total $ $ Determining Fair Value of Stock Options The fair value of each grant of stock options was determined by us using the methods and assumptions discussed below. Each of these inputs is subjective and generally requires significant judgment to determine. Expected Term— The expected term of stock options represents the weighted-average period the stock options are expected to be outstanding. For option grants that are considered to be “plain vanilla”, we have opted to use the simplified method for estimating the expected term as provided by the Securities and Exchange Commission. The simplified method calculates the expected term as the average of time-to-vesting and the contractual life of the options. Expected Volatility— The expected stock price volatility assumption was determined by examining the historical volatilities of a group of industry peers, as we do not have a significant trading history for our common stock. We will continue to analyze our historical stock price volatility and expected term assumptions as more historical data for our common stock becomes available. Risk-Free Interest Rate— The risk free rate assumption was based on the U.S. Treasury instruments with terms that were consistent with the expected term of our stock options. Expected Dividend— The expected dividend assumption was based on our history and expectation of dividend payouts. Forfeiture Rate— Forfeitures were estimated based on historical experience. Fair Value of Common Stock— Prior to the IPO, the fair value of the shares of common stock underlying the stock options was historically been the responsibility of and determined by our board of directors. Because there was no public market for our common stock, the board of directors determined fair value of common stock at the time of grant of the option by considering a number of objective and subjective factors including independent third-party valuations of our common stock, sales of convertible preferred stock to unrelated third parties, operating and financial performance, the lack of liquidity of capital stock and general and industry specific economic outlook, amongst other factors. Following the closing of the IPO offering, the fair value of our common stock is determined based on the closing price of our common stock on the NASDAQ Global Select Market. We used the Black-Scholes Model to estimate the fair value of our stock options granted to employees with the following weighted-average assumptions: Year ended December 31, 2016 2015 2014 Expected dividend yield — — — Risk-free interest rate 1.4% - 1.5% 1.6% - 1.8% 1.7% - 2.1% Expected volatility 42% 43% - 45% 48% - 56% Expected life (in years) 6.1 5.5 - 6.1 5.6 - 6.5 We used the Black-Scholes model to estimate the fair value of our Employee Stock Purchase Plan awards with the following assumptions: Year ended December 31, 2016 2015 2014 Expected dividend yield — — — Risk-free interest rate 0.5% - 0.7% 0.1% - 0.7% 0.1% - 0.5% Expected volatility 34% - 41% 34% - 35% 47% - 49% Expected life (in years) 0.5 - 2.0 0.5 - 2.0 0.7 - 2.2 As required by Topic 718 Compensation—Stock Compensation, we estimate expected forfeitures and recognize compensation costs only for those equity awards expected to vest. Our stock options granted are typically granted with vesting terms of 48 months. The following table summarizes our unrecognized stock-based compensation expense as of December 31, 2016 net of estimated forfeitures: Unrecognized Remaining Stock-based Weighted-Average Compensation Recognition Expense Period (in millions) (in years) Stock options $ Restricted stock units ESPP Total $ Early Exercise of Common Stock In 2014 we issued 42,772 shares of common stock for the exercise of common stock options prior to their vesting dates, or early exercises. In 2015 or 2016 no shares of common stock were issued for the exercise of common stock options prior to their vesting dates, or early exercises. Cash received from all such early exercises of stock options is recorded in accrued expenses on the consolidated balance sheets and reclassified to stockholders’ equity as the options vest. The unvested shares are subject to our repurchase right at the original purchase price. As of December 31, 2016 and 2015 there were 2,471 and 12,428 shares, respectively, legally outstanding, but not included within common stock outstanding for accounting purposes as a result of the exercise of common stock options which were not yet vested. As of December 31, 2015, the aggregate price of shares subject to repurchase recorded in accrued expenses totaled $48,000. The aggregate price of shares subject to repurchase in accrued expenses as of December 31, 2016 was insignificant. |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2016 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefit Plan | 12. Employee Benefit Plan We maintain a defined contribution 401(k) plan. The plan covers all full-time U.S. employees over the age of 21. Each employee can contribute up to $18,000 annually (with a $6,000 catch up contribution limit for employees aged 50 or older). We have the option to provide matching contributions, but have not done so to date. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 13. Commitments and Contingencies Operating Leases We lease our office facilities under noncancelable agreements expiring between 2017 and 2023. Rent expense in 2016, 2015 and 2014 was $6.7 million, $4.7 million and $2.6 million. respectively. The aggregate future minimum lease payments under the agreements are as follows (in thousands): Year 2017 $ 2018 2019 2020 2021 Thereafter Total $ Litigation On May 1, 2015, a purported stockholder class action lawsuit was filed in the United States District Court for the Northern District of California against the Company and certain of its officers, captioned Panjwani v. MobileIron, Inc., et al. The action was purportedly brought on behalf of a putative class of all persons who purchased or otherwise acquired the Company’s securities between February 13, 2015 and April 22, 2015. It asserted claims for violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. The complaint sought, among other things, compensatory damages and attorney’s fees and costs on behalf of the putative class. An amended complaint was filed on September 28, 2015. On February 22, 2016, the District Court issued an order granting MobileIron’s motion to dismiss the amended complaint and on March 15, 2016 the Court dismissed the case. MobileIron paid no money to the plaintiffs or their attorneys in connection with the dismissal of the action On August 5, 2015, August 21, 2015 and August 24, 2015, purported stockholder class action lawsuits were filed in the Superior Court of California, Santa Clara County against the Company, certain of its officers, directors, underwriters and investors, captioned Schneider v. MobileIron, Inc., et al., Kerley v. MobileIron, Inc., et al. and Steinberg v. MobileIron, Inc., et al, which were subsequently consolidated under the case caption In re MobileIron Shareholder Litigation. The actions are purportedly brought on behalf of a putative class of all persons who purchased the Company’s securities issued pursuant or traceable to the Company’s registration statement and the June 12, 2014 initial public offering. The lawsuits assert claims for violations of Sections 11, 12(a)(2) and 15 of the Securities Act of 1933. The complaint seeks among other things, compensatory damages and attorney’s fees and costs on behalf of the putative class. On April 12, 2016, Plaintiffs filed a corrected consolidated complaint, which no longer names the underwriters or investors as defendants. On August 8, 2016 the Company filed a demurrer to the corrected consolidated complaint. The court overruled the demurrer on October 4, 2016. The Company intends to defend this litigation vigorously. We continually evaluate uncertainties associated with litigation and record a charge equal to at least the minimum estimated liability for a loss contingency when both of the following conditions are met: (i) information available prior to issuance of the financial statements indicates that it is probable that a liability has been incurred at the date of the financial statements and (ii) the loss or range of loss can be reasonably estimated. If we determine that a loss is possible and a range of the loss can be reasonably estimated, we disclose the range of the possible loss in the Notes to the Consolidated Financial Statements. We evaluate, on a quarterly basis, developments in our legal matters that could affect the amount of liability that has been previously accrued, if any, and the matters and related ranges of possible losses disclosed, and make adjustments and changes to our disclosures as appropriate. Significant judgment is required to determine both likelihood of there being and the estimated amount of a loss related to such matters. Until the final resolution of such matters, there may be an exposure to loss, and such amounts could be material. An estimate of a reasonably possible loss (or a range of loss) cannot be made in our lawsuits at this time. Indemnification Under the indemnification provisions of our standard sales related contracts, we agree to defend and/or settle claims brought by third parties against our customers alleging that the customer’s use of our software infringes the third party’s intellectual property right, such as a patent right. These indemnification obligations are typically not subject to limitation; however if it is commercially impractical for us to either procure the right for the customer to continue to use our software or modify our software so that it’s not infringing, we typically can terminate the customer agreement and refund the customer a portion of the license fees paid, prorated over the three year period from initial delivery. We also on occasion indemnify our customers for other types of third party claims. In addition, we indemnify our officers, directors, and certain key employees while they are serving in such capacities in good faith. Through December 31, 2016, we have not received any material written claim for indemnification. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | 14. Segment Information We conduct business globally. Our chief operating decision maker (Chief Executive Officer) reviews financial information presented on a consolidated basis accompanied by information about revenue by geographic region for purposes of allocating resources and evaluating financial performance. We have one business activity, and there are no segment managers who are held accountable for operations, operating results and plans for levels, components or types of products or services below the consolidated unit level. Accordingly, we are considered to be in a single reportable segment and operating unit structure. Revenue by geographic region based on the billing address was as follows: Year ended December 31, (in thousands) 2016 2015 2014 Revenue United States $ $ $ International Total $ $ $ We recognized revenue of $21.3 million, or 13% of total revenue, from customers with a billing address in Germany in 2016. No other country, outside of the United States, exceeded 10% of the total revenue in 2016. No country, outside of the United States, exceeded 10% of the total revenue in the year ended December 31, 2015 or 2014. As of December 31, 2016 and 2015, $1.3 million and $1.4 million or 24% and 22%, respectively, of our net Property and Equipment was attributable to our operations located in India. Substantially all other long-lived assets were attributable to operations in the United States. |
Net Loss per Share
Net Loss per Share | 12 Months Ended |
Dec. 31, 2016 | |
Net Loss Per Share [Abstract] | |
Net Loss per Share | 15. Net Loss per Share The following table sets forth the computation of basic and diluted net loss per share for 2016, 2015 and 2014 (in thousands, except per share data): Year ended December 31, 2016 2015 2014 Numerator: Net loss $ $ $ Denominator: Weighted–average shares outstanding Less: weighted average shares subject to repurchase Weighted–average shares used to compute basic and diluted net loss per share Basic and diluted net loss per share $ $ $ Basic net loss per share is computed by dividing the net loss by the weighted-average number of common shares outstanding for the period. Because we have reported a net loss for 2016, 2015 and 2014, the number of shares used to calculate diluted net loss per common share is the same as the number of shares used to calculate basic net loss per common share for those periods presented because the potentially dilutive shares would have been anti-dilutive if included in the calculation. The following potentially dilutive securities outstanding have been excluded from the computation of diluted weighted-average shares outstanding because such securities have an antidilutive impact due to losses reported (in common stock equivalent shares): December 31, 2016 2015 2014 Options to purchase common stock and unvested restricted stock and restricted stock units |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 16. Income Taxes Loss before income taxes consisted of the following (in thousands): Year ended December 31, 2016 2015 2014 United States $ $ $ International Total $ $ $ A significant portion of our international income is earned by foreign branches of our United States parent corporation and thus is already subject to United States taxation. The income of our foreign branches has been included as part of the United States jurisdiction in the table above. Income tax expense for 2016, 2015 and 2014, was composed of the following (in thousands): Year ended December 31, 2016 2015 2014 Current: Federal $ — $ — $ — State Foreign Total current income tax expense $ $ $ For 2016, 2015 and 2014, our effective tax rate differs from the amount computed by applying the statutory federal and state income tax rates to net loss before income tax, primarily as the result of changes in valuation allowance. Year ended December 31, 2016 2015 2014 Federal tax benefit at statutory rate % % % State tax benefit net of federal effect Foreign taxes Change in valuation allowance Credits Stock-based compensation Non-deductible expenses and other Effective tax rate % % % Income tax expense for 2016, 2015 and 2014 relates to state minimum income tax, income tax on our earnings in foreign jurisdictions, and, in 2016 and 2015, withholding taxes on sales to customers in certain jurisdictions. A significant portion of our international income is earned by foreign branches of our United States parent corporation and thus is already subject to United States taxation. The income of our foreign branches has been included as part of the United States jurisdiction in the table above. The components of net deferred tax assets at December 31, 2016 and 2015 consisted of the following (in thousands): As of December 31, 2016 2015 Deferred tax assets: Accruals and allowances $ $ Gains on foreign exchange Net operating loss carryforwards Depreciation and amortization R&D tax credits Stock-based compensation Valuation allowance Net deferred tax assets $ — $ — Our accounting for deferred taxes involves the evaluation of a number of factors concerning the realizability of our net deferred tax assets. We primarily considered such factors as our history of operating losses, the nature of our deferred tax assets and the timing, likelihood and amount, if any, of future taxable income during the periods in which those temporary differences and carryforwards become deductible. At present, we do not believe that it is more likely than not that the deferred tax assets will be realized; accordingly, a full valuation allowance has been established and no deferred tax asset is shown in the accompanying consolidated balance sheets. As of December 31, 2016, we had net operating loss carryforwards of approximately $241.3 million and $101.7 million available to reduce future taxable income, if any, for both federal and state income tax purposes, respectively. The federal and state net operating loss carryforwards will expire at various dates beginning 2027 and 2017, respectively. We had federal and California R&D tax credit carryforwards at December 31, 2016 of $8.4 million and $9.5 million, respectively. If not utilized, the federal R&D tax credit carryforward will expire in various portions beginning 2027. The California R&D tax credit can be carried forward indefinitely. A limitation may apply to the use of the net operation loss and credit carryforwards, under provisions of the Internal Revenue Code that are applicable if we experience an “ownership change”. That may occur, for example, as a result of trading in our stock by significant investors as well as issuance of new equity. Should these limitations apply, the carryforwards would be subject to an annual limitation, resulting in a substantial reduction in the gross deferred tax assets before considering the valuation allowance. Further, a portion of the carryforwards may expire before being applied to reduce future earnings. As a result of certain realization requirements of ASC 718, the table of deferred tax assets and liabilities shown above does not include certain deferred tax assets as of December 31, 2016 and 2015 that arose directly from tax deductions related to equity compensation in excess of compensation recognized for financial reporting. Equity will be increased by $5.4 million if and when such deferred tax assets are ultimately realized. We use ASC 740 ordering when determining when excess tax benefits have been realized. We follow the provisions of ASC 740-10, Accounting for Uncertainty in Income Taxes. ASC 740-10 prescribes a comprehensive model for the recognition, measurement, presentation and disclosure in financial statements of uncertain tax positions that have been taken or expected to be taken on a tax return. No non-current liability related to uncertain tax positions is recorded in the financial statements as the deferred tax assets have been presented net of these unrecognized tax benefits. At December 31, 2016 and 2015, our reserve for unrecognized tax benefits was approximately $5.3 million and $4.1 million, respectively. Due to the full valuation allowance at December 31, 2016, current adjustments to the unrecognized tax benefit will have no impact on our effective income tax rate; any adjustments made after the valuation allowance is released will have an impact on the tax rate. We do not anticipate any significant change in our uncertain tax positions within 12 months of this reporting date. We include penalties and interest expense related to income taxes as a component of other expense and interest expense, respectively, as necessary. A reconciliation of the gross unrealized tax benefits is as follows (in thousands): Year ended December 31, 2016 2015 2014 Unrecognized tax benefits, beginning of year $ $ $ Gross increases—tax positions from prior periods — Gross increases—tax positions from current period Unrecognized tax benefits, end of year $ $ $ We are subject to taxation in the United States and various states and foreign jurisdictions. As of December 31, 2016, the statute of limitations is open for all tax years from inception, that is, for the period from July 23, 2007 (date of inception) to December 31, 2016 and forward for federal, state and foreign tax purposes. |
Description of Business and S24
Description of Business and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Description of Business | Description of Business MobileIron, Inc. and its wholly owned subsidiaries, collectively, the “Company”, “we”, “us” or “our”, provides a purpose-built mobile IT platform that enables enterprises to manage and secure mobile applications, content and devices while providing their employees with device choice, privacy and a native user experience. We were incorporated in Delaware in July 2007 and are headquartered in Mountain View, California, with additional sales and support presence in North America, Europe, the Middle East, Asia and Australia. |
Initial Public Offering | Initial Public Offering In June 2014, we completed our initial public offering, or our IPO, in which we issued and sold 12,777,777 shares of common stock, including 1,666,666 million shares of common stock sold pursuant to the full exercise of the underwriters’ over-allotment option, at a price of $9.00 per share. We received aggregate proceeds of $107.0 million from the sale of shares of common stock, net of underwriters’ discounts and commissions, but before deducting offering expenses of approximately $4.1 million. Upon the closing of the initial public offering, all shares of our outstanding convertible preferred stock automatically were converted into 49,646,975 shares of common stock. |
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation The accompanying audited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles, or GAAP, and include the accounts of our wholly owned subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation. |
Stock Split | Stock Split In May 2014, we amended and restated our amended and restated certificate of incorporation to effect a seven-for-five reverse stock split of our common stock and convertible preferred stock. On the effective date of the reverse stock split, (i) each seven shares of outstanding convertible preferred stock and common stock was reduced to five shares of convertible preferred stock and common stock, respectively; (ii) the number of shares of common stock issuable under each outstanding option to purchase common stock was proportionately reduced on a seven-for-five basis; (iii) the exercise price of each outstanding option to purchase common stock was proportionately increased on a seven-for-five basis; and (iv) corresponding adjustments in the per share conversion prices, dividend rates and liquidation preferences of the convertible preferred stock were made. All of the share and per share information referenced throughout this Annual Report on Form 10-K and notes to the consolidated financial statements have been retroactively adjusted to reflect this reverse stock split. |
Foreign Currency Translation | Foreign Currency Translation Our reporting currency is the U.S. dollar. The functional currency of all our international operations is the U.S. dollar. All monetary asset and liability accounts are translated into U.S. dollars at the period-end rate, nonmonetary assets and liabilities are translated at historical exchange rates, and revenue and expenses are translated at the weighted-average exchange rates in effect during the period. Translation adjustments arising are recorded as foreign currency gains (losses) in the consolidated statements of operations. We recognized a foreign currency loss of approximately $339,000, $518,000 and $304,000 in 2016, 2015 and 2014, respectively, in other (income) expense—net in our consolidated statements of operations. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. These estimates include, but are not limited to, revenue recognition, stock-based compensation, goodwill, intangible assets and accounting for income taxes. Actual results could differ from those estimates. |
Concentrations of Credit Risk | Concentrations of Credit Risk Financial instruments that potentially subject us to a concentration of credit risk consist of cash, money market funds and fixed income investments. Although we deposit our cash with multiple financial institutions, our deposits, at times, exceed federally insured limits. We invest in fixed income securities that are of high-credit quality. Substantially all of our money market funds, or $15.0 million, are held in two funds that are rated “AAA.” We generally do not require collateral or other security in support of accounts receivable. Allowances are provided for individual accounts receivable when we become aware of a customer’s inability to meet its financial obligations, such as in the case of bankruptcy, deterioration in the customer’s operating results, or change in financial position. If circumstances related to customers change, estimates of the recoverability of receivables would be further adjusted. We also consider broader factors in evaluating the sufficiency of our allowances for doubtful accounts, including the length of time receivables are past due, significant one-time events and historical experience. Activity in our allowance for doubtful accounts was as follow (in thousands): Balance at Bad Write-offs, Balance at Beginning Debt Net of End of Period Expense Recoveries of Period Balance as of December 31, 2016 $ $ Balance as of December 31, 2015 $ $ Balance as of December 31, 2014 $ $ One reseller accounted for 16% (1% as an end customer), 17% (1% as an end customer) and 22% (2% as an end customer) of total revenue in 2016, 2015 and 2014, respectively. The same reseller accounted for 15% and 14% of net accounts receivable as of December 31, 2016 and 2015, respectively. There were no other resellers or end-user customers that accounted for 10% or more as a percentage of our revenue or net accounts receivable for any period presented. |
Segments | Segments We have one reportable segment. |
Revenue Recognition | Revenue Recognition We derive revenue principally from software-related arrangements consisting of perpetual software licenses, post-contract customer support for such licenses, or PCS or software support, including when and if available updates, and professional services such as consulting and training services. We also offer our software as term-based licenses and cloud-based arrangements. In addition, we install our software on servers that we ship to customers. We begin to recognize revenue when (i) persuasive evidence of an arrangement exists, (ii) delivery has occurred or services have been provided, (iii) the sales price is fixed or determinable, and (iv) collection of the related receivable is probable. If collection is not considered probable, revenue is recognized only upon collection. Signed agreements, including by electronic acceptance, are used as evidence of an arrangement. Delivery is considered to occur when we provide a customer with a link and credentials to download our software. Delivery of a hardware appliance (an “appliance”) is considered to occur when title and risk of loss has transferred to the customer, which typically occurs when appliances are delivered to a common carrier. Delivery of services occurs when performed. Prior to January 1, 2013, we had not established vendor specific objective evidence, or VSOE, of fair value for any of the elements in our multiple-element arrangements. As of January 1, 2013, we determined that we had sufficient history to establish VSOE of fair value for PCS and professional services. Prior to January 1, 2013, we did not have VSOE of fair value for our software-related undelivered elements due to limited history of stand-alone sales transactions and inconsistency in pricing. We established VSOE of fair value when we had a substantial majority of stand-alone sales transactions of software support and services pricing within a narrow pricing band. In our VSOE analysis, we generally include stand-alone sales transactions completed during a rolling 12 month period unless a shorter period is appropriate due to changes in our pricing structure. We typically enter into multiple-element arrangements with our customers in which a customer may purchase a combination of software on a perpetual or subscription license, PCS, and professional services. The professional services are not considered essential to the functionality of the software. All of these elements are considered separate units of accounting. Our standard agreements do not include rights for customers to cancel or terminate arrangements or to return software to obtain refunds. We use the residual method to recognize revenue when a perpetual license arrangement includes one or more elements to be delivered at a future date provided the following criteria are met: (i) VSOE of fair value does not exist for one or more of the delivered items but exists for all undelivered elements, (ii) all other applicable revenue recognition criteria are met and (iii) the fair value of all of the undelivered elements is less than the arrangement fee. VSOE of fair value is based on the normal pricing practices for those products and services when sold separately by us and contractual customer renewal rates for post-contract customer support services. Under the residual method, the fair value of the undelivered elements is deferred and the remaining portion of the arrangement fee is recognized as revenue in the period in which it was earned. If evidence of the fair value of one or more undelivered elements does not exist, then the revenue is deferred and recognized when delivery of those elements occurs, or when fair value can be established, or ratably over the PCS period if the only undelivered element is PCS—we refer to these deferred revenue elements as the “Deferred Portion.” Revenue from subscriptions to our on premise term licenses, arrangements where perpetual and subscriptions to our on premise term licenses are sold together, and subscriptions to our cloud service are recognized ratably over the contractual term for all periods presented and are included as a component of subscription revenue within our consolidated statements of operations. We refer to arrangements where perpetual and subscriptions to our on premise term licenses are sold together as “Bundled Arrangements.” Occasionally, we enter into multiple-element arrangements with our customers in which a customer may purchase a combination of software on a perpetual or term basis, PCS, professional services, and appliances. We generally provide the appliances and software upon the commencement of the arrangement and provide software-related elements throughout the support period. We account for appliance-bundled arrangements under the revised accounting standard related to multiple-element arrangements, Accounting Standard Update, or ASU, No. 2009-13, Multiple Element Arrangements , and determine the revenue to be recognized based on the standard’s fair value hierarchy and then determine the value of each element in the arrangement based on the relative selling price of the arrangement. Amounts related to appliances are generally recognized upon delivery with the remaining consideration allocated to software and software-related elements, which are recognized as described elsewhere in this policy. Revenue from PCS is recognized ratably over the support term and is included as a component of software support and service revenue within the consolidated statements of operations. Revenue related to professional services is recognized upon delivery and is included as a component of software support and services revenue within the consolidated statements of operations. Prior to establishing VSOE of fair value for PCS and professional services on January 1, 2013, we recognized revenue for multiple element software and software-related arrangements ratably from the date of service commencement over the contractual term of the related PCS arrangement. After January 1, 2013, the deferred revenue related to these arrangements continues to be recognized ratably over the remaining contractual term of the PCS arrangement. We recognized $1.8 million and $5.2 million of perpetual license revenue in 2015 and 2014, respectively, from sales made prior to January 1, 2013. In 2016, we recognized no significant revenue from sales made prior to January 1, 2013. We allocated the revenue from all multiple-element arrangements entered into prior to the establishment of VSOE of fair value for our PCS and professional services to each respective revenue caption using our best estimate of value of each element based on the facts and circumstances of the arrangements, our go-to-market strategy, price list and discounts from price list as applicable. We believe that the allocation between the revenue captions allows for greater transparency and comparability of revenue from period to period even though VSOE of fair value may not have existed at that time. Appliance revenue was less than 10% of total revenue for all periods presented and is included as a component of perpetual license revenue within the consolidated statements of operations. Historically, sales made through resellers were fulfilled directly to end users, and we recognized revenue when we delivered licenses to end users and all other revenue recognition criteria were met. Over time, however, our business has evolved and some of our operators, system integrators and other resellers have requested that we deliver licenses to them. In those instances we recognize revenue at the time that we deliver to our resellers and all other revenue recognition criteria are met; such resellers have no rights of return or exchange. Shipping charges and sales tax billed to partners are excluded from revenue. Sales commissions and other incremental costs to acquire contracts are also expensed as incurred and are recorded in sales and marketing expense. For all arrangements, any revenue that has been deferred and is expected to be recognized beyond one year is classified as long-term deferred revenue in the consolidated balance sheets. |
Cash Equivalents | Cash Equivalents We consider all highly liquid investments with an original maturity of three months or less to be cash equivalents. As of December 31, 2016 and 2015, cash and cash equivalents consisted of cash deposited with banks, money market funds and investments that mature within three months of their purchase. |
Held-To-Maturity Investments | Held-To-Maturity Investments We determine the appropriate classification of our fixed income investments at the time of purchase and reevaluate their classifications each reporting period. Investments are classified as held-to-maturity since the Company has positive intent and the ability to hold the securities to maturity. Held-to-maturity securities are stated at amortized cost. |
Comprehensive Loss | Comprehensive Loss Comprehensive loss includes all changes in equity (net assets) during a period from non-owner sources. In 2016, 2015 and 2014, there were no differences between net loss and comprehensive loss. Therefore, the consolidated statements of comprehensive loss have been omitted. |
Net Loss per Share of Common Stock | Net Loss per Share of Common Stock Basic net loss per common share is calculated by dividing the net loss by the weighted-average number of common shares outstanding during the period, without consideration for potentially dilutive securities. Diluted net loss per share is computed by dividing the net loss by the weighted-average number of common shares and potentially dilutive securities outstanding for the period determined using the treasury-stock and if-converted methods. For purposes of the diluted net loss per share calculation, convertible preferred stock, unvested restricted stock, restricted stock units and stock options are considered to be potentially dilutive securities. Because we have reported a net loss for 2016, 2015 and 2014, the number of shares used to calculate diluted net loss per common share is the same as the number of shares used to calculate basic net loss per common share for those periods presented because the potentially dilutive shares would have been anti-dilutive if included in the calculation. |
Software Development Costs Incurred in Connection with Software to be Sold or Marketed | Software Development Costs Incurred in Connection with Software to be Sold or Marketed The costs to develop new software products and enhancements to existing software products are expensed as incurred until technological feasibility has been established. We consider technological feasibility to have occurred when all planning, designing, coding and testing have been completed according to design specifications. Once technological feasibility is established, any additional costs would be capitalized. We believe our current process for developing software is essentially completed concurrent with the establishment of technological feasibility, and accordingly, no costs have been capitalized. |
Internal Use Software | Internal Use Software We capitalize costs incurred during the application development stage related to our internally used software. Such costs are primarily incurred by third-party vendors and consultants. Costs related to preliminary project activities and post-implementation activities are expensed as incurred. Amounts capitalized in all periods presented were not significant. All software development costs incurred in connection with our cloud offering, or SaaS, are also sold or marketed to partners or end customers, therefore we start capitalizing costs when technological feasibility is achieved. No costs were capitalized in any periods presented as we believe that our current process for developing software is essentially completed concurrent with the establishment of technological feasibility. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost. Depreciation is computed using the straight-line method over the estimated useful life of the property and equipment, determined to be three years for computers and equipment and software, five years for furniture and fixtures, and the lesser of the remaining lease term or estimated useful life for leasehold improvements. Expenditures for repairs and software support are charged to expense as incurred. Upon disposition, the cost and related accumulated depreciation are removed from the accounts and the resulting gain or loss is reflected as operating expenses in the consolidated statements of operations. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets We record the excess of the acquisition purchase price over the fair value of the tangible and identifiable intangible assets acquired as goodwill. We perform an impairment test of our goodwill in the third quarter of our fiscal year, or more frequently if indicators of potential impairment arise. We have a single reporting unit and consequently evaluate goodwill for impairment based on an evaluation of the fair value of the Company as a whole. We record purchased intangible assets at their respective estimated fair values at the date of acquisition. Purchased intangible assets are being amortized using the straight-line method over their remaining estimated useful lives, which range from three to five years. We evaluate the remaining useful lives of intangible assets on a periodic basis to determine whether events or circumstances warrant a revision to the remaining estimated amortization period. We have determined that our intangible assets have not been impaired during the years ended December 31, 2016, 2015 and 2014. |
Long-Lived Assets with Finite Lives | Long-Lived Assets with Finite Lives Long-lived assets are reviewed for possible impairment whenever events or circumstances indicate that the carrying amount of these assets may not be recoverable. We evaluate the recoverability of each of our long-lived assets, including purchased intangible assets and property and equipment, by comparison of its carrying amount to the future undiscounted cash flows we expect the asset to generate. If we consider the asset to be impaired, we measure the amount of any impairment as the difference between the carrying amount and the fair value of the impaired asset. |
Stock-Based Compensation | Stock-Based Compensation We use the estimated grant-date fair value method of accounting in accordance with Accounting Standards Codification, or ASC, Topic 718 Compensation—Stock Compensation . Fair value is determined using the Black-Scholes Model using various inputs, including our estimates of expected volatility, term and future dividends. We estimated the forfeiture rate in 2016, 2015 and 2014 based on our historical experience for annual grant years where the majority of the vesting terms have been satisfied. We recognize compensation costs for awards with service and performance vesting conditions and for our Employee Stock Purchase Plan, or ESPP, on an accelerated method over the requisite service period of the award. For stock options or restricted stock grants with no performance condition, we recognize compensation costs on a straight-line basis over the requisite service period of the award, which is generally the vesting term of four years. |
Research and Development | Research and Development Research and development, or R&D, costs are charged to expense as incurred. |
Advertising | Advertising Advertising costs are expensed and included in sales and marketing expense when incurred. Advertising expense in 2016, 2015 and 2014 was $305,000, $256,000 and $526,000, respectively. |
Income Taxes | Income Taxes We account for income taxes in accordance with ASC Topic 740, Income Taxes , under which deferred tax liabilities and assets are recognized for the expected future tax consequences of temporary differences between financial statement carrying amounts and the tax basis of assets and liabilities and net operating loss and tax credit carryforwards. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. We use a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. A tax position is recognized when it is more likely than not that the tax position will be sustained upon examination, including resolution of any related appeals or litigation processes. A tax position that meets the more-likely-than-not recognition threshold is measured at the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement with a taxing authority. The standard also provides guidance on derecognition of tax benefits, classification on the balance sheet, interest and penalties, accounting in interim periods, disclosure and transition. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board, or FASB, or other standard setting bodies and adopted by us as of the specified effective date. Unless otherwise discussed, the impact of recently issued standards that are not yet effective will not have a material impact on our financial position or results of operations upon adoption. In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments – Credit Losses – Measurement of Credit Losses on Financial Instruments, which introduces a model based on expected losses to estimate credit losses for most financial assets and certain other instruments. In addition, for available-for-sale debt securities with unrealized losses, the losses will be recognized as allowances rather than reductions in the amortized cost of the securities. The standard is effective for annual reporting periods beginning after December 15, 2019, with early adoption permitted for annual reporting periods beginning after December 15, 2018. Entities will apply the standard’s provisions by recording a cumulative-effect adjustment to retained earnings. We are evaluating the impact of the adoption on our consolidated balance sheet, results of operations, cash flows and disclosures. In May 2014, the FASB, jointly with the International Accounting Standards Board, issued a comprehensive new standard on revenue recognition from contracts with customers. The standard’s core principle is that a reporting entity will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In applying this new guidance to contracts within its scope, an entity will: (1) identify the contract(s) with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when (or as) the entity satisfies a performance obligation. Additionally, this new guidance will require significantly expanded disclosures about revenue recognition. As clarified by the FASB on July 9, 2015, provisions of this new standard are effective for annual reporting periods (including interim reporting periods within those annual periods) beginning after December 15, 2017. Early adoption is permitted for annual reporting periods (including interim reporting periods within those annual periods) beginning after December 15, 2016. Entities have the option of using either a full retrospective or a modified retrospective approach to adopt this new guidance. We currently plan to adopt the new standard effective January 1, 2018. We anticipate this standard will have a material impact on our consolidated financial statements. While we are continuing to assess all potential impacts of the standard, we believe the most significant impact relates to our accounting for subscriptions to our on-premise licenses, specifically, as under the new standard we expect to recognize revenue from those subscriptions predominantly at the time of billing rather than ratably over the license term. In addition, we expect accounting for commissions to be impacted significantly as we will capitalize and amortize most commissions under the new standard instead of expensing commissions as incurred. Due to the complexity of certain of our contracts, the revenue recognition treatment required under the new standard will be dependent on contract-specific terms. In February 2016, the FASB finalized the Accounting Standard Update, or ASU, 2016-02, “Leases”. ASU 2016-02 requires lessees to recognize the assets and liabilities on the balance sheet for the rights and obligations created by most leases (leases with the term of 12 months or longer) and continue to recognize expenses on the income statements over the lease term. It will also require disclosure designed to give financial statement users information on the amount, timing, and uncertainly of cash flows arising from leases. The guidance is effective for annual reporting periods beginning after December 15, 2018 and interim periods within those fiscal years. As a result of this new standard, we expect to record a lease commitment liability and corresponding asset for most of our leases. We will adopt ASU 2016-02 effective January 1, 2019. In March 2016, the FASB issued new Accounting Standard Update, or ASU, 2016-09, “Improvements to Employee Share-Based Payment Accounting”. ASU 2016-09 simplifies several aspects of the accounting for employee share-based payment transactions including the accounting for income taxes, forfeitures, statutory tax withholding requirements and classification in the statement of cash flows. Under the new standard, excess tax benefits and tax deficiencies are to be recognized as income tax expense or benefit in the income statement and the excess tax benefits and tax deficiencies are considered discrete items in the reporting period they occur and are not included in the estimate of an entity’s annual effective tax rate. Excess tax benefits will be classified along with other cash flows related to income taxes as an operating activity. The ASU allows an entity to elect as an accounting policy either to continue to estimate the total number of awards that are expected to vest or account for forfeitures when they occur. The ASU modifies the current exception to liability classification of an award when an employer uses a net-settlement feature to withhold shares to meet the employer’s minimum statutory tax withholding requirement. The guidance is effective for annual reporting periods beginning after December 15, 2016 and interim periods within those fiscal years. We will adopt all relevant provisions of this update in the first quarter of fiscal 2017. We do not expect, that adoption of this update will have a significant effect on our consolidated balance sheet, results of operations, cash flows or statement of shareholders equity because we have a full valuation allowance on our deferred tax assets but it will have an impact on our disclosures. As part of this adoption, we will make an accounting policy election to continue to estimate the total number of awards that are expected to vest. |
Description of Business and S25
Description of Business and Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Schedule of allowance for doubtful accounts | Activity in our allowance for doubtful accounts was as follow (in thousands): Balance at Bad Write-offs, Balance at Beginning Debt Net of End of Period Expense Recoveries of Period Balance as of December 31, 2016 $ $ Balance as of December 31, 2015 $ $ Balance as of December 31, 2014 $ $ |
Significant Balance Sheet Com26
Significant Balance Sheet Components (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Property and Equipment (in thousands) | Property and equipment at December 31, 2016 and 2015 consisted of the following (in thousands): As of December 31, 2016 2015 Computers and appliances $ $ Purchased software Furniture and fixtures Leasehold improvements Total property and equipment Accumulated depreciation and amortization Total property and equipment—net $ $ |
Schedule of Accrued Expenses (in thousands) | Accrued expenses at December 31, 2016 and 2015 consisted of the following (in thousands): As of December 31, 2016 2015 Accrued commissions $ $ Accrued stock-settled bonus Accrued vacation Employee Stock Purchase Plan liability Other accrued payroll-related expenses Other accrued liabilities Total accrued expenses $ $ |
Schedule of Current and Non-Current Deferred Revenue (in thousands) | Current and noncurrent deferred revenue at December 31, 2016 and 2015 consisted of the following (in thousands): As of December 31, 2016 2015 Perpetual license $ $ Subscription Software support Professional services Total current and noncurrent deferred revenue $ $ |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Instruments Measured at Fair Value (in thousands) | Our financial instruments measured at fair market value as of December 31, 2016 and 2015 were as follows: As of December 31, 2016 (in thousands) Level 1 Level 2 Level 3 Total Money market funds $ $ — $ — $ Corporate debt securities — — Commercial paper — — Total $ $ $ — $ As of December 31, 2015 (in thousands) Level 1 Level 2 Level 3 Total Money market funds $ $ — $ — $ Corporate debt securities — — Commercial paper — — Securities and obligations of U.S. government agencies — — Total $ $ $ — $ |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Investments in Fixed Income Securities | Our investments in fixed income securities as of December 31, 2016 and 2015 were as follows: As of December 31, 2016 Amortized Fair (in thousands) cost Gains Losses Value Corporate debt securities $ $ — $ $ Commercial paper Total $ $ $ $ As of December 31, 2015 Amortized Fair (in thousands) cost Gains Losses Value Corporate debt securities $ $ $ $ Commercial paper Securities and obligations of U.S. government agencies — Total $ $ $ $ |
Summary of the Balance Sheet Classification of Investments | As of December 31, (in thousands) 2016 2015 Cash equivalents $ $ Short-term investments Long-term investments — Total investments $ $ |
Schedule of Held-to-Maturity Investments by Contractual Maturity | As of December 31, 2016 2015 Gross Gross Amortized Fair Amortized Fair (in thousands) Cost Value Cost Value Due in one year or less $ $ $ $ Due after one year through five years — — Total $ $ $ $ |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Components of Consideration Paid on Acquisition (in thousands) | Common stock issued (232,854 shares) $ Holdback common stock (43,612 shares) Total consideration $ |
Purchase Price Allocation (in thousands) | The purchase price was allocated as follows (in thousands): Technology – intangible asset $ Goodwill Liabilities assumed Net assets acquired $ |
Goodwill and Intangibles (Table
Goodwill and Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets Subject to Amortization (in thousands) | The following table reflects intangible assets subject to amortization as of December 31, 2016 and 2015 (in thousands): December 31, 2016 Gross Carrying Accumulated Net Book Amount Amortization Impairment Value Technology $ $ — $ Total $ $ $ — $ December 31, 2015 Gross Carrying Accumulated Net Book Amount Amortization Impairment Value Technology $ $ — $ Total $ $ $ — $ |
Estimated Intangible Assets Amortization Expense (in thousands) | Estimated remaining intangible assets amortization expense for their remaining lives as follows (in thousands): Year 2017 2018 2019 — Total $ |
Restructuring Charge (Tables)
Restructuring Charge (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
Summary of Restructuring Activities | Severance and Related Costs Balance, December 31, 2014 $ — Provision for restructuring charges Cash payments Balance, December 31, 2015 $ — Provision for restructuring charges Cash payments Balance, December 31, 2016 $ |
Preferred Stock (Tables)
Preferred Stock (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Scenario Immediately Prior to IPO [Member] | |
Summary of Preferred Stock (in thousands, except share data) | The following table summarizes information regarding our convertible preferred stock by class immediately prior to the IPO (in thousands, except share and per share data): Per share Aggregate Shares liquidation liquidation Carrying Authorized Outstanding preference preference value Series A $ $ $ Series B Series C Series D Series E Series F Total $ $ |
Common Stock (Tables)
Common Stock (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Stockholders Equity Note [Abstract] | |
Schedule of Common Stock Reserved for Issuance | As of December 31, 2016 and 2015, we reserved shares of common stock for issuance as follows: As of December 31, 2016 2015 Options outstanding Unvested restricted stock units outstanding Unvested early exercised stock options Shares available for grant under the 2014 Equity Incentive Plan Shares available for purchase under the Employee Stock Purchase Plan Total |
Share Based Awards (Tables)
Share Based Awards (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Schedule of Stock Option Activity | Options Outstanding Weighted- Number of Average Aggregate Shares Weighted- Remaining Intrinsic Available Number of Average Contractual Value for Issuance Shares Exercise Price Term (Years) (In thousands) Balance—December 31, 2013 $ $ Authorized — Stock options granted Restricted stock units granted — Exercised (1) — Stock options canceled Restricted stock units canceled — Repurchased — Balance—December 31, 2014 $ $ Authorized — Stock options granted Restricted stock units granted — Exercised Stock options canceled Restricted stock units canceled — Repurchased — Balance—December 31, 2015 $ $ Authorized — Stock options granted Issuance of shares under 2016 Bonus Plans — Restricted stock units granted — Exercised — Stock options canceled Restricted stock units canceled — Balance—December 31, 2016 $ $ Vested and exercisable—December 31, 2016 $ $ Vested and expected to vest(2)—December 31, 2016 $ $ (1) Includes early exercises of 42,772 in 2014. In 2015 or 2016 no shares of common stock were issued for the exercise of common stock options prior to their vesting dates, or early exercises. (2) Options expected to vest are net of an estimated forfeiture rate. |
Additional Information Regarding Options | Options Outstanding Options Exercisable Weighted- Average Remaining Weighted- Weighted- Number of Contractual Average Number of Average Range of exercises Shares Term (Years) Exercise Price Shares Exercise Price $0.04 — $2.90 $ $ $3.08 — $3.70 $3.77 — $5.77 $6.20 — $10.80 $12.05 — $12.05 Outstanding at December 31, 2016 $ $ |
Schedule of Stock-based Compensation Expense Recognized (in thousands) | Our stock-based compensation expense was recorded in the following cost and expense categories (in thousands): Year Ended December 31, 2016 2015 2014 Contra-revenue $ — $ — $ Cost of revenue Research and development Sales and marketing General and administrative Total $ $ |
Schedule of Assumptions Used for Calculating the Fair Value of Employee Option Grants | Year ended December 31, 2016 2015 2014 Expected dividend yield — — — Risk-free interest rate 1.4% - 1.5% 1.6% - 1.8% 1.7% - 2.1% Expected volatility 42% 43% - 45% 48% - 56% Expected life (in years) 6.1 5.5 - 6.1 5.6 - 6.5 |
Schedule of Assumptions Used for Calculating the Fair Value of Employee stock purchase plans | Year ended December 31, 2016 2015 2014 Expected dividend yield — — — Risk-free interest rate 0.5% - 0.7% 0.1% - 0.7% 0.1% - 0.5% Expected volatility 34% - 41% 34% - 35% 47% - 49% Expected life (in years) 0.5 - 2.0 0.5 - 2.0 0.7 - 2.2 |
Schedule of Unrecognized Stock-based Compensation Related to Nonvested Awards | Unrecognized Remaining Stock-based Weighted-Average Compensation Recognition Expense Period (in millions) (in years) Stock options $ Restricted stock units ESPP Total $ |
Restricted Stock | |
Schedule of Restricted Stock and RSU Activity | Restricted Stock Time - and - Time - based performance based Total shares shares shares Unvested, December 31, 2013 Granted — Vested Cancelled/Forfeited Unvested, December 31, 2014 Granted — — — Vested Cancelled/Forfeited — Unvested, December 31, 2015 — — — |
RSUs | |
Schedule of Restricted Stock and RSU Activity | Restricted Stock Units Weighted- Average Number of Grant Date Shares Fair Value Unvested, December 31, 2013 — $ — Granted Vested — — Cancelled/Forfeited Unvested, December 31, 2014 $ Granted Vested Cancelled/Forfeitures Unvested, December 31, 2015 $ Granted Vested Cancelled/Forfeitures Unvested, December 31, 2016 $ |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Lease Payments (in thousands) | The aggregate future minimum lease payments under the agreements are as follows (in thousands): Year 2017 $ 2018 2019 2020 2021 Thereafter Total $ |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Revenue by Geographic Region | Year ended December 31, (in thousands) 2016 2015 2014 Revenue United States $ $ $ International Total $ $ $ |
Net Loss per Share (Tables)
Net Loss per Share (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Net Loss Per Share [Abstract] | |
Schedule of Basic and Diluted Net Loss per Share (in thousands, except per share data) | The following table sets forth the computation of basic and diluted net loss per share for 2016, 2015 and 2014 (in thousands, except per share data): Year ended December 31, 2016 2015 2014 Numerator: Net loss $ $ $ Denominator: Weighted–average shares outstanding Less: weighted average shares subject to repurchase Weighted–average shares used to compute basic and diluted net loss per share Basic and diluted net loss per share $ $ $ |
Schedule of Antidilutive Securities Excluded from Net Loss per Share Computation | December 31, 2016 2015 2014 Options to purchase common stock and unvested restricted stock and restricted stock units |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Loss before Income Taxes, Domestic and Foreign (in thousands) | Loss before income taxes consisted of the following (in thousands): Year ended December 31, 2016 2015 2014 United States $ $ $ International Total $ $ $ |
Components of Income Tax Expense (Benefit) | Income tax expense for 2016, 2015 and 2014, was composed of the following (in thousands): Year ended December 31, 2016 2015 2014 Current: Federal $ — $ — $ — State Foreign Total current income tax expense $ $ $ |
Schedule of Effective Tax Rate Reconciliation to Statutory Rates | Year ended December 31, 2016 2015 2014 Federal tax benefit at statutory rate % % % State tax benefit net of federal effect Foreign taxes Change in valuation allowance Credits Stock-based compensation Non-deductible expenses and other Effective tax rate % % % |
Components of Net Deferred Tax Assets | The components of net deferred tax assets at December 31, 2016 and 2015 consisted of the following (in thousands): As of December 31, 2016 2015 Deferred tax assets: Accruals and allowances $ $ Gains on foreign exchange Net operating loss carryforwards Depreciation and amortization R&D tax credits Stock-based compensation Valuation allowance Net deferred tax assets $ — $ — |
Reconciliation of Gross Unrealized Tax Benefits | A reconciliation of the gross unrealized tax benefits is as follows (in thousands): Year ended December 31, 2016 2015 2014 Unrecognized tax benefits, beginning of year $ $ $ Gross increases—tax positions from prior periods — Gross increases—tax positions from current period Unrecognized tax benefits, end of year $ $ $ |
Description of Business and S39
Description of Business and Significant Accounting Policies (Details) | May 27, 2014 | Nov. 30, 2014 | Jun. 30, 2014USD ($)$ / sharesshares | Mar. 31, 2016USD ($)shares | Dec. 31, 2016USD ($)segmentitem | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) |
Description Of Business And Significant Accounting Policies [Line Items] | ||||||||
Net proceeds from sale of shares of common stock | $ 106,950,000 | |||||||
Conversion of outstanding preferred stock into common stock, shares | shares | 49,646,975 | |||||||
Reverse stock split | 0.7142 | |||||||
Foreign currency loss | $ 339,000 | $ 518,000 | 304,000 | |||||
AAA-rated money market funds | $ 15,000,000 | |||||||
Number of Money Market Funds | item | 2 | |||||||
Accounts receivable allowances | $ 433,000 | 628,000 | ||||||
Balance at Beginning of Period | $ 628,000 | 628,000 | 550,000 | 492,000 | ||||
Bad debt expense | 77,000 | 150,000 | 54,000 | |||||
Write-offs, Net of Recoveries | (272,000) | (72,000) | 4,000 | |||||
Balance at End of Period | $ 433,000 | 628,000 | 550,000 | $ 492,000 | ||||
Number of Reportable Segments | segment | 1 | |||||||
Period for inclusion in VSOE analysis | 12 months | |||||||
Perpetual license revenue related to sales made prior to VSOE establishment | 1,800,000 | 5,200,000 | ||||||
Capitalized development costs of software to be sold or marked | $ 0 | |||||||
Capitalized development costs of software for internal use | $ 0 | |||||||
Estimated useful life, purchased intangible assets | 3 years | |||||||
Share Based Compensation Arrangement By Share Based Payment Award Award Vesting Period1 | 4 years | |||||||
Advertising costs | $ 305,000 | $ 256,000 | $ 526,000 | |||||
Non-Executive Bonus Plan 2015 | ||||||||
Description Of Business And Significant Accounting Policies [Line Items] | ||||||||
Common stock issued (in shares) | shares | 1,653,371 | |||||||
Computers and appliances | ||||||||
Description Of Business And Significant Accounting Policies [Line Items] | ||||||||
Property plant and equipment useful life | 3 years | |||||||
Furniture and Fixtures | ||||||||
Description Of Business And Significant Accounting Policies [Line Items] | ||||||||
Property plant and equipment useful life | 5 years | |||||||
Minimum | ||||||||
Description Of Business And Significant Accounting Policies [Line Items] | ||||||||
Estimated useful life, purchased intangible assets | 3 years | |||||||
Maximum | ||||||||
Description Of Business And Significant Accounting Policies [Line Items] | ||||||||
Estimated useful life, purchased intangible assets | 5 years | |||||||
Sales Revenue, Net | ||||||||
Description Of Business And Significant Accounting Policies [Line Items] | ||||||||
Concentration risk, percentage | 16.00% | 17.00% | 22.00% | |||||
Sales Revenue, Net | Appliance Revenue | Maximum | ||||||||
Description Of Business And Significant Accounting Policies [Line Items] | ||||||||
Concentration risk, percentage | 10.00% | |||||||
As Reseller | Sales Revenue, Net | ||||||||
Description Of Business And Significant Accounting Policies [Line Items] | ||||||||
Concentration risk, percentage | 17.00% | 22.00% | ||||||
As Reseller | Net Accounts Receivable | ||||||||
Description Of Business And Significant Accounting Policies [Line Items] | ||||||||
Concentration risk, percentage | 15.00% | 14.00% | ||||||
As an end customer | Sales Revenue, Net | ||||||||
Description Of Business And Significant Accounting Policies [Line Items] | ||||||||
Concentration risk, percentage | 1.00% | 1.00% | 2.00% | |||||
IPO | ||||||||
Description Of Business And Significant Accounting Policies [Line Items] | ||||||||
Common stock issued (in shares) | shares | 12,777,777 | |||||||
Common stock issued price per share | $ / shares | $ 9 | |||||||
Net proceeds from sale of shares of common stock | $ 107,000,000 | |||||||
Offering expenses | $ 4,100,000 | |||||||
Overallotment | ||||||||
Description Of Business And Significant Accounting Policies [Line Items] | ||||||||
Common stock issued (in shares) | shares | 1,666,666 |
Significant Balance Sheet Com40
Significant Balance Sheet Components - Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 16,513 | $ 14,353 |
Accumulated depreciation and amortization | (11,010) | (7,781) |
Total property and equipment-net | 5,503 | 6,572 |
Computers and appliances | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 9,754 | 7,908 |
Purchased software | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 2,297 | 2,220 |
Furniture and Fixtures | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 1,477 | 1,338 |
Leasehold improvements | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 2,985 | $ 2,887 |
Significant Balance Sheet Com41
Significant Balance Sheet Components - Accrued Expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Accrued Expenses [Abstract] | ||
Accrued commissions | $ 5,908 | $ 4,181 |
Accrued stock settled bonus | 6,608 | 4,714 |
Accrued vacation | 611 | 512 |
Employee stock purchase plan liability | 1,811 | 2,329 |
Other accrued payroll-related expenses | 3,085 | 2,483 |
Other accrued liabilities | 3,651 | 4,977 |
Total accrued expenses | $ 21,674 | $ 19,196 |
Significant Balance Sheet Com42
Significant Balance Sheet Components - Deferred Revenue (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred Revenue | ||
Current and noncurrent deferred revenue | $ 88,076 | $ 69,875 |
Perpetual license | ||
Deferred Revenue | ||
Current and noncurrent deferred revenue | 404 | 400 |
Subscription | ||
Deferred Revenue | ||
Current and noncurrent deferred revenue | 35,495 | 25,013 |
Software support | ||
Deferred Revenue | ||
Current and noncurrent deferred revenue | 50,117 | 42,254 |
Professional services | ||
Deferred Revenue | ||
Current and noncurrent deferred revenue | $ 2,060 | $ 2,208 |
Fair Value Measurement (Details
Fair Value Measurement (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Financial and nonfinancial liabilities measured at fair value | $ 0 | |
Nonfinancial assets measured at fair value | 0 | |
Assets fair value | 73,220 | $ 83,983 |
Level 1 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Assets fair value | 15,003 | 18,850 |
Level 2 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Assets fair value | 58,217 | 65,133 |
Money Market Funds | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Assets fair value | 15,003 | 18,850 |
Money Market Funds | Level 1 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Assets fair value | 15,003 | 18,850 |
Corporate debt securities | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Assets fair value | 10,738 | 28,520 |
Corporate debt securities | Level 2 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Assets fair value | 10,738 | 28,520 |
Commercial paper | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Assets fair value | 47,479 | 24,187 |
Commercial paper | Level 2 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Assets fair value | $ 47,479 | 24,187 |
Securities and obligations of U.S. government agencies | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Assets fair value | 12,426 | |
Securities and obligations of U.S. government agencies | Level 2 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Assets fair value | $ 12,426 |
Investments - Investments in fi
Investments - Investments in fixed income securities(Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized cost | $ 58,213 | $ 65,167 |
Gains | 8 | 2 |
Losses | (4) | (36) |
Fair Value | 58,217 | 65,133 |
Corporate debt securities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized cost | 10,740 | 28,549 |
Gains | 1 | |
Losses | (2) | (30) |
Fair Value | 10,738 | 28,520 |
Commercial paper | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized cost | 47,473 | 24,187 |
Gains | 8 | 1 |
Losses | (2) | (1) |
Fair Value | $ 47,479 | 24,187 |
Securities and obligations of U.S. government agencies | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized cost | 12,431 | |
Losses | (5) | |
Fair Value | $ 12,426 |
Investments - Balance sheet cla
Investments - Balance sheet classification of investments (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Investments, Debt and Equity Securities [Abstract] | ||
Cash equivalents | $ 22,029 | $ 13,499 |
Short-term investments | 36,184 | 49,574 |
Long-term investments | 2,094 | |
Total | $ 58,213 | $ 65,167 |
Investments - Cost vs FV (Detai
Investments - Cost vs FV (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Gross Amortized Cost | ||
Due in one year or less | $ 58,213 | $ 63,073 |
Due after one through five years | 2,094 | |
Total | 58,213 | 65,167 |
Fair Value | ||
Due in one year or less | 58,217 | 63,040 |
Due after one through five years | 2,093 | |
Total | $ 58,217 | $ 65,133 |
Acquisitions (Details)
Acquisitions (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |
Nov. 30, 2014 | Apr. 30, 2014 | Dec. 31, 2015 | |
Business Acquisition [Line Items] | |||
Purchase of developed technology | $ 650,000 | ||
Finite Lived Intangible Asset Useful Life | 3 years | ||
Stock issued, value | $ 1,670,000 | ||
Common Stock | |||
Business Acquisition [Line Items] | |||
Holdback based on standard representations and warranties, shares | 43,612 | ||
Storm Ventures | |||
Business Acquisition [Line Items] | |||
Business acquisition, shares issued | 103,231 | ||
Equity Method Investment, Ownership Percentage | 5.00% | ||
Foundation Capital | |||
Business Acquisition [Line Items] | |||
Business acquisition, shares issued | 103,232 | ||
Equity Method Investment, Ownership Percentage | 5.00% | ||
Averail Corporation | |||
Business Acquisition [Line Items] | |||
Finite Lived Intangible Asset Useful Life | 4 years | ||
Averail Corporation | Common Stock | |||
Business Acquisition [Line Items] | |||
Business acquisition, shares issued | 276,463 | ||
Holdback based on standard representations and warranties, shares | 43,612 | ||
Averail Corporation | Two Investors | Common Stock | |||
Business Acquisition [Line Items] | |||
Stock issued, value | $ 1,500,000 |
Acquisitions - Consideration (D
Acquisitions - Consideration (Details) $ in Thousands | 1 Months Ended |
Apr. 30, 2014USD ($)shares | |
Business Acquisition [Line Items] | |
Stock issued, value | $ | $ 1,670 |
Holdback common stock, value | $ | 312 |
Total consideration | $ | $ 1,982 |
Common Stock | |
Business Acquisition [Line Items] | |
Number of shares issued on acquisition | shares | 232,854 |
Holdback based on standard representations and warranties, shares | shares | 43,612 |
Averail Corporation | Common Stock | |
Business Acquisition [Line Items] | |
Holdback based on standard representations and warranties, shares | shares | 43,612 |
Acquisitions - Allocation (Deta
Acquisitions - Allocation (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Nov. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2016 | Apr. 30, 2014 | |
Business Acquisition [Line Items] | |||||
Goodwill | $ 5,475,000 | $ 5,475,000 | |||
Estimated useful life, purchased intangible assets | 3 years | ||||
Amortization of intangible assets | $ 782,000 | ||||
Cost of Revenues | |||||
Business Acquisition [Line Items] | |||||
Amortization of intangible assets | 300,000 | ||||
Averail Corporation | |||||
Business Acquisition [Line Items] | |||||
Goodwill | $ 676,000 | ||||
Liabilities assumed | (294,000) | ||||
Net assets acquired | 1,982,000 | ||||
Estimated useful life, purchased intangible assets | 4 years | ||||
Averail Corporation | Technology | |||||
Business Acquisition [Line Items] | |||||
Technology - intangible asset | $ 1,600,000 | ||||
Averail Corporation | General and administrative expense | |||||
Business Acquisition [Line Items] | |||||
Transaction costs on acquisition | $ 167,000 | ||||
Averail Corporation | Cost of Revenues | |||||
Business Acquisition [Line Items] | |||||
Amortization of intangible assets | $ 400,000 |
Goodwill and Intangibles - Inta
Goodwill and Intangibles - Intangible assets subject to amortization (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 3,080 | $ 3,080 |
Accumulated Amortization | (2,435) | (1,819) |
Net Book Value | 645 | 1,261 |
Technology | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 3,080 | 3,080 |
Accumulated Amortization | (2,435) | (1,819) |
Net Book Value | $ 645 | $ 1,261 |
Weighted Average | ||
Finite Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Life, Intangible Assets | 1 year 1 month 6 days |
Goodwill and Intangibles - Amor
Goodwill and Intangibles - Amortization (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
2,017 | $ 545 | |
2,018 | 100 | |
Net Book Value | $ 645 | $ 1,261 |
Restructuring Charge (Details)
Restructuring Charge (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Restructuring Reserve [Roll Forward] | ||
Provision for restructuring charges | $ 1,052 | $ 1,049 |
Cash payments | (1,037) | $ (1,049) |
Ending Balance | $ 15 |
Line of Credit (Details)
Line of Credit (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
May 31, 2015USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2015USD ($) | |
Line Of Credit Facility [Line Items] | ||||
Revolving line of credit, maximum borrowing capacity | $ 20,000 | |||
Quick ratio | 1.25 | |||
Amount drawn from revolving line of credit | $ 3,300 | |||
Repayments of revolving line of credit | $ 7,600 | |||
Line of Credit Facility, Remaining Borrowing Capacity | $ 18,500 | |||
Prime Rate | ||||
Line Of Credit Facility [Line Items] | ||||
Revolving line of credit, basis spread over variable rate | 5.00% | |||
Letter of Credit [Member] | ||||
Line Of Credit Facility [Line Items] | ||||
Revolving line of credit amount outstanding | $ 0 | $ 0 | ||
Amount drawn from revolving line of credit | $ 1,500 |
Preferred Stock (Details)
Preferred Stock (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Jun. 30, 2014 | Jan. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2016 | Jun. 11, 2014 | May 31, 2014 | |
Temporary Equity [Line Items] | ||||||
Conversion of preferred stock for initial public offering, Shares | 49,646,975 | |||||
Convertible preferred stock, shares authorized | 69,505,831 | |||||
Net cash proceeds from convertible preferred stock | $ 1,994 | |||||
Convertible preferred stock, shares issued | 0 | |||||
Convertible preferred stock, shares outstanding | 0 | 49,646,975 | ||||
Maximum | ||||||
Temporary Equity [Line Items] | ||||||
Convertible preferred stock, shares authorized | 10,000,000 | |||||
Series A Preferred Stock | ||||||
Temporary Equity [Line Items] | ||||||
Convertible preferred stock, shares authorized | 18,604,666 | |||||
Convertible preferred stock, shares outstanding | 13,289,037 | |||||
Series B Preferred Stock | ||||||
Temporary Equity [Line Items] | ||||||
Convertible preferred stock, shares authorized | 16,225,758 | |||||
Convertible preferred stock, shares outstanding | 11,589,825 | |||||
Series C Preferred Stock | ||||||
Temporary Equity [Line Items] | ||||||
Convertible preferred stock, shares authorized | 13,281,250 | |||||
Convertible preferred stock, shares outstanding | 9,486,602 | |||||
Series D Preferred Stock | ||||||
Temporary Equity [Line Items] | ||||||
Convertible preferred stock, shares authorized | 6,550,505 | |||||
Convertible preferred stock, shares outstanding | 4,678,927 | |||||
Series E Preferred Stock | ||||||
Temporary Equity [Line Items] | ||||||
Convertible preferred stock, shares authorized | 6,429,159 | |||||
Convertible preferred stock, shares outstanding | 4,592,244 | |||||
Series F Preferred Stock | ||||||
Temporary Equity [Line Items] | ||||||
Convertible preferred stock, shares authorized | 8,414,493 | |||||
Issuance of convertible preferred stock, shares | 200,903 | |||||
Net cash proceeds from convertible preferred stock | $ 2,000 | |||||
Convertible preferred stock, shares outstanding | 6,010,340 |
Preferred Stock - Tables (Detai
Preferred Stock - Tables (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2016 | Jun. 11, 2014 | May 31, 2014 | |
Temporary Equity [Line Items] | ||||
Common Stock Voting Rights | one | |||
Convertible preferred stock, shares authorized | 69,505,831 | |||
Convertible preferred stock, shares outstanding | 0 | 49,646,975 | ||
Convertible preferred stock, aggregate liquidation preference | $ 162,828 | |||
Convertible preferred stock, carrying value | $ 162,253 | |||
Series A Preferred Stock | ||||
Temporary Equity [Line Items] | ||||
Convertible preferred stock, shares authorized | 18,604,666 | |||
Convertible preferred stock, shares outstanding | 13,289,037 | |||
Convertible preferred stock, per share liquidation preference | $ 0.70 | |||
Convertible preferred stock, aggregate liquidation preference | $ 9,302 | |||
Convertible preferred stock, carrying value | $ 9,222 | |||
Series B Preferred Stock | ||||
Temporary Equity [Line Items] | ||||
Convertible preferred stock, shares authorized | 16,225,758 | |||
Convertible preferred stock, shares outstanding | 11,589,825 | |||
Convertible preferred stock, per share liquidation preference | $ 0.95 | |||
Convertible preferred stock, aggregate liquidation preference | $ 10,977 | |||
Convertible preferred stock, carrying value | $ 10,929 | |||
Series C Preferred Stock | ||||
Temporary Equity [Line Items] | ||||
Convertible preferred stock, shares authorized | 13,281,250 | |||
Convertible preferred stock, shares outstanding | 9,486,602 | |||
Convertible preferred stock, per share liquidation preference | $ 1.79 | |||
Convertible preferred stock, aggregate liquidation preference | $ 17,000 | |||
Convertible preferred stock, carrying value | $ 16,860 | |||
Series D Preferred Stock | ||||
Temporary Equity [Line Items] | ||||
Convertible preferred stock, shares authorized | 6,550,505 | |||
Convertible preferred stock, shares outstanding | 4,678,927 | |||
Convertible preferred stock, per share liquidation preference | $ 4.27 | |||
Convertible preferred stock, aggregate liquidation preference | $ 20,000 | |||
Convertible preferred stock, carrying value | $ 19,945 | |||
Series E Preferred Stock | ||||
Temporary Equity [Line Items] | ||||
Convertible preferred stock, shares authorized | 6,429,159 | |||
Convertible preferred stock, shares outstanding | 4,592,244 | |||
Convertible preferred stock, per share liquidation preference | $ 9.96 | |||
Convertible preferred stock, aggregate liquidation preference | $ 45,716 | |||
Convertible preferred stock, carrying value | $ 45,596 | |||
Series F Preferred Stock | ||||
Temporary Equity [Line Items] | ||||
Convertible preferred stock, shares authorized | 8,414,493 | |||
Convertible preferred stock, shares outstanding | 6,010,340 | |||
Convertible preferred stock, per share liquidation preference | $ 9.96 | |||
Convertible preferred stock, aggregate liquidation preference | $ 59,833 | |||
Convertible preferred stock, carrying value | $ 59,701 |
Common Stock (Details)
Common Stock (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2016 | |
Stockholders Equity Note [Abstract] | ||
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, voting rights | one |
Common Stock - Shares of common
Common Stock - Shares of common stock reserved for issuance (Details) - shares | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Options outstanding | 9,835,992 | 11,498,747 | 16,435,568 | 13,330,882 |
Unvested restricted stock outstanding | 93,805 | 1,918,620 | ||
Unvested early exercised stock options | 2,471 | 12,428 | ||
Shares available for issuance under the plan | 4,199,415 | 6,672,236 | 7,392,158 | 2,085,338 |
Shares available for purchase under Employee Stock Purchase Plan | 575,974 | 1,561,929 | ||
Total | 25,088,827 | 27,578,302 | ||
RSUs | ||||
Unvested restricted stock outstanding | 10,474,975 | 7,832,962 | 478,789 |
Share Based Awards (Details)
Share Based Awards (Details) - shares | Jan. 31, 2017 | Jan. 01, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2008 | Jan. 05, 2016 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Shares of common stock available for issuance | 25,088,827 | 27,578,302 | |||||
Additional shares authorized | 4,436,933 | 5,418,242 | 9,913,915 | ||||
Employee Stock Purchase Plan | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Maximum annual percentage increase in shares issuable | 1.00% | ||||||
Additional shares authorized | 813,386 | ||||||
Maximum percentage of employee base compensation that may be utilized to purchase common stock under the ESPP | 15.00% | ||||||
Percentage of purchase price of common stock at fair market value | 85.00% | ||||||
Maximum increase in shares issuable | 2,142,857 | ||||||
2008 Stock Plan | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Expiry term of exercisable options | 10 years | ||||||
2014 Equity Incentive Plan | Incentive Stock Options | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Shares of common stock, authorized for issuance | 8,142,857 | ||||||
Maximum annual percentage increase in shares issuable | 5.00% | ||||||
Additional shares authorized | 4,066,933 | ||||||
Additional shares authorized as a percentage of capital stock outstanding | 5.00% | ||||||
Total shares issuable assuming annual increases | 16,312,202 | ||||||
2015 Inducement Plan | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Shares of common stock, authorized for issuance | 1,600,000 | ||||||
Shares of common stock available for issuance | 1,970,000 | ||||||
2015 Inducement Plan | Options and restricted stock units | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Shares outstanding under the 2015 Inducement Plan | 1,970,000 | ||||||
2014 Employee Stock Purchase Plan | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Additional shares authorized | 1,200,000 | ||||||
Additional shares authorized as a percentage of capital stock outstanding | 1.00% | ||||||
2014 Employee Stock Purchase Plan | Employee Stock Purchase Plan | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Shares of common stock available for issuance | 575,974 | 1,561,929 | |||||
Minimum | 2008 Stock Plan | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Options granted, exercisable term | 3 years | ||||||
Maximum | 2008 Stock Plan | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Options granted, exercisable term | 4 years |
Share Based Awards - RSUs and B
Share Based Awards - RSUs and Bonus Plans (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Unvested, Beginning Balance | 93,805 | 1,918,620 | ||
Granted | 16,294 | |||
Vested | (73,683) | (1,077,517) | ||
Cancelled/Forfeited | (20,122) | (763,592) | ||
Unvested, Ending Balance | 93,805 | |||
Cancelled/Forfeited | (3,192,618) | (1,653,927) | (1,667) | |
Stock Issued During Period Value Acquisitions | $ 1,982,000 | |||
Stock Issued During Period Value Conversion Of Convertible Securities | 162,253,000 | |||
Share Based Compensation Arrangement By Share Based Payment Award Award Vesting Period1 | 4 years | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||||
Stock-based compensation expense | $ 34,389,000 | $ 28,791,000 | $ 16,749,000 | |
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Granted | 0 | |||
Vested | 0 | |||
Cancelled/Forfeited | 0 | |||
Restricted Stock | Time-based Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Unvested, Beginning Balance | 61,259 | 886,718 | ||
Granted | 16,294 | |||
Vested | (41,137) | (491,313) | ||
Cancelled/Forfeited | (20,122) | (350,440) | ||
Unvested, Ending Balance | 61,259 | |||
Restricted Stock | Time-and-Performance Based Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Unvested, Beginning Balance | 32,546 | 1,031,902 | ||
Vested | (32,546) | (586,204) | ||
Cancelled/Forfeited | (413,152) | |||
Unvested, Ending Balance | 32,546 | |||
RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Unvested, Beginning Balance | 7,832,962 | 7,832,962 | 478,789 | |
Granted | 10,724,225 | 9,932,561 | 480,456 | |
Vested | (4,889,594) | (924,461) | ||
Cancelled/Forfeited | (3,192,618) | (1,653,927) | (1,667) | |
Unvested, Ending Balance | 10,474,975 | 7,832,962 | 478,789 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||||
Unvested, Beginning Balance | $ 6.66 | $ 6.66 | $ 9.45 | |
Granted (in dollars per share) | 3.36 | 6.92 | $ 9.45 | |
Vested (in dollars per share) | 4.99 | 8.36 | ||
Cancelled/Forfeited (in dollars per share) | 5.39 | 8.06 | 9.18 | |
Unvested, Ending Balance | $ 4.45 | $ 6.66 | $ 9.45 | |
Incentive Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Share Based Compensation Arrangement By Share Based Payment Award Award Vesting Period1 | 48 months | |||
Non-Executive Bonus Plan 2015 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||||
Common stock issued (in shares) | 1,653,371 | |||
Stock-based compensation expense | $ 923,000 | $ 4,700,000 | ||
Executive Bonus Plan 2015 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||||
Common stock issued (in shares) | 0 | |||
2016 Bonus Plans | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Granted | 1,653,371 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||||
Stock-based compensation expense | $ 6,600,000 |
Share Based Awards - Options ac
Share Based Awards - Options activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Options Activity Rollforward | ||||
Number of Shares Available for Issuance, Beginning Balance | 6,672,236 | 7,392,158 | 2,085,338 | |
Options Outstanding, Number, Beginning Balance | 11,498,747 | 16,435,568 | 13,330,882 | |
Number of Shares Available for Issuance, Authorized | 4,436,933 | 5,418,242 | 9,913,915 | |
Number of Shares Available for Issuance, Granted | (1,316,200) | (1,089,100) | (5,373,131) | |
Options Outstanding, Shares Granted | 1,316,200 | 1,089,100 | 5,373,131 | |
Number of Shares Available for Issuance, other than Options granted | (16,294) | |||
Options exercised | (1,040,902) | (2,817,915) | (1,089,708) | |
Exercised, withheld in net settlement | 9,019 | |||
Number of Shares Available for Issuance, Canceled | 1,938,053 | 3,208,006 | 1,178,737 | |
Number of Shares Available for Issuance, Restricted stock units canceled | 3,192,618 | 1,653,927 | 1,667 | |
Number of Shares Available for Issuance, Repurchased | 12,545 | 66,088 | ||
Number of Shares Available for Issuance, Ending Balance | 4,199,415 | 6,672,236 | 7,392,158 | 2,085,338 |
Options Outstanding, Number, Ending Balance | 9,835,992 | 11,498,747 | 16,435,568 | 13,330,882 |
Vested and exercisable- end of the period | 7,023,833 | |||
Vested and expected to vest - end of the period | 9,497,378 | |||
Options Activity, Weighted Average Exercise Price Rollforward | ||||
Options Outstanding, Weighted-Average Exercise Price, Beginning Balance | $ 4.51 | $ 4.15 | $ 2.90 | |
Options Outstanding, Weighted Average Exercise Price Granted | 3.36 | 6.95 | 6.97 | |
Options Outstanding, Weighted Average Exercise Price Exercised | 2.37 | 2.12 | 2.27 | |
Options Outstanding, Weighted Average Exercise Price Canceled | 5.46 | 5.61 | 4.55 | |
Options Outstanding, Weighted-Average Exercise Price, Ending Balance | 4.39 | $ 4.51 | $ 4.15 | $ 2.90 |
Options Outstanding, Weighted-Average Exercise Price, Vested and exercisable | 4.08 | |||
Options Outstanding, Weighted-Average Exercise Price, Vested and expected to vest | $ 4.37 | |||
Options Outstanding, Weighted-Average Remaining Contractual Term (Years) | 6 years 2 months 23 days | 6 years 10 months 10 days | 7 years 9 months 29 days | 8 years 4 months 17 days |
Options Outstanding, Aggregate Intrinsic Value | $ 5,734 | $ 6,256 | $ 95,791 | $ 38,339 |
Options Outstanding, Vested and exercisable, Aggregate Intrinsic Value | 5,210 | |||
Options Outstanding, Vested and expected to vest, Aggregate Intrinsic Value | $ 5,657 | |||
RSUs, excluding Bonus Plans | ||||
Options Activity Rollforward | ||||
Number of Shares Available for Issuance, other than Options granted | (9,070,854) | (9,932,561) | (480,456) | |
RSUs | ||||
Options Activity Rollforward | ||||
Number of Shares Available for Issuance, other than Options granted | (10,724,225) | (9,932,561) | (480,456) | |
2016 Bonus Plans | ||||
Options Activity Rollforward | ||||
Number of Shares Available for Issuance, other than Options granted | (1,653,371) |
Share Based Awards - Options by
Share Based Awards - Options by price (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Number of shares outstanding | 9,835,992 | ||
Weighted average remaining contractual term, outstanding | 6 years 2 months 23 days | ||
Weighted average exercise price, outstanding | $ 4.39 | ||
Number of shares exercisable | 7,023,833 | ||
Weighted average exercise price, exercisable | $ 4.08 | ||
Vested options exercised, intrinsic value | $ 1.4 | $ 11.8 | $ 5.4 |
Options granted, grant date fair value per share | $ 1.42 | $ 3.04 | $ 4.09 |
$0.04 - $1.75 | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Exercise price, lower limit | 0.04 | ||
Exercise price, upper limit | $ 2.90 | ||
Number of shares outstanding | 2,000,481 | ||
Weighted average remaining contractual term, outstanding | 4 years 29 days | ||
Weighted average exercise price, outstanding | $ 1.19 | ||
Number of shares exercisable | 2,000,481 | ||
Weighted average exercise price, exercisable | $ 1.19 | ||
$2.90 - $3.70 | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Exercise price, lower limit | 3.08 | ||
Exercise price, upper limit | $ 3.70 | ||
Number of shares outstanding | 2,883,203 | ||
Weighted average remaining contractual term, outstanding | 7 years 1 month 21 days | ||
Weighted average exercise price, outstanding | $ 3.54 | ||
Number of shares exercisable | 1,618,203 | ||
Weighted average exercise price, exercisable | $ 3.70 | ||
$3.77 - $5.77 | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Exercise price, lower limit | 3.77 | ||
Exercise price, upper limit | $ 5.77 | ||
Number of shares outstanding | 2,868,971 | ||
Weighted average remaining contractual term, outstanding | 5 years 11 months 16 days | ||
Weighted average exercise price, outstanding | $ 4.98 | ||
Number of shares exercisable | 2,106,222 | ||
Weighted average exercise price, exercisable | $ 4.88 | ||
$6.20 - $9.87 | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Exercise price, lower limit | 6.20 | ||
Exercise price, upper limit | $ 10.80 | ||
Number of shares outstanding | 2,027,512 | ||
Weighted average remaining contractual term, outstanding | 7 years 3 months 4 days | ||
Weighted average exercise price, outstanding | $ 7.73 | ||
Number of shares exercisable | 1,266,344 | ||
Weighted average exercise price, exercisable | $ 7.58 | ||
$10.80 - $12.05 | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Exercise price, lower limit | $ 12.05 | ||
Number of shares outstanding | 55,825 | ||
Weighted average remaining contractual term, outstanding | 7 years 8 months 1 day | ||
Weighted average exercise price, outstanding | $ 12.05 | ||
Number of shares exercisable | 32,583 | ||
Weighted average exercise price, exercisable | $ 12.05 |
Share Based Awards - Compensati
Share Based Awards - Compensation expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $ 34,389 | $ 28,791 | $ 16,749 |
Contra-Revenues | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 123 | ||
Cost of Revenues | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 3,043 | 2,774 | 1,353 |
Research and Development | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 11,728 | 10,607 | 5,980 |
Sales and Marketing | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 10,474 | 9,508 | 5,930 |
General and administrative expense | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $ 9,144 | $ 5,902 | $ 3,363 |
Share Based Awards - Options as
Share Based Awards - Options assumptions (Details) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Incentive Stock Options | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected volatility | 42.00% | ||
Expected life (in years) | 6 years 1 month 6 days | ||
Minimum | Incentive Stock Options | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Risk-free interest rate | 1.40% | 1.60% | 1.70% |
Expected volatility | 43.00% | 48.00% | |
Expected life (in years) | 5 years 6 months | 5 years 7 months 6 days | |
Minimum | Employees Stock Purchase Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Risk-free interest rate | 0.50% | 0.10% | 0.10% |
Expected volatility | 34.00% | 34.00% | 47.00% |
Expected life (in years) | 6 months | 6 months | 8 months 12 days |
Maximum | Incentive Stock Options | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Risk-free interest rate | 1.50% | 1.80% | 2.10% |
Expected volatility | 45.00% | 56.00% | |
Expected life (in years) | 6 years 1 month 6 days | 6 years 6 months | |
Maximum | Employees Stock Purchase Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Risk-free interest rate | 0.70% | 0.70% | 0.50% |
Expected volatility | 41.00% | 35.00% | 49.00% |
Expected life (in years) | 2 years | 2 years | 2 years 2 months 12 days |
Share Based Awards - Unrecogniz
Share Based Awards - Unrecognized expense (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total unrecognized compensation cost | $ 41,200,000 | ||
Shares issued for the exercise of common stock options prior to their vesting dates, or early exercises | 0 | 0 | 42,772 |
Shares outstanding due to early exercise of unvested stock options | 2,471 | 12,428 | |
Shares subject to repurchase, aggregate price | $ 48,000 | ||
Incentive Stock Options | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total unrecognized compensation cost | $ 4,600,000 | ||
Unrecognized compensation cost, weighted-average period of recognition | 2 years 2 months 12 days | ||
RSUs | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total unrecognized compensation cost | $ 35,300,000 | ||
Unrecognized compensation cost, weighted-average period of recognition | 2 years 10 months 24 days | ||
Employees Stock Purchase Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total unrecognized compensation cost | $ 1,300,000 | ||
Unrecognized compensation cost, weighted-average period of recognition | 7 months 6 days |
Employee Benefit Plan (Details)
Employee Benefit Plan (Details) | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Compensation And Retirement Disclosure [Abstract] | |
Age restriction of employees | 21 years |
Employee's contribution to plan 401(k) plan | $ 18,000 |
Catch up contribution limit for employees age 50 or older | $ 6,000 |
Minimum age of employees with catch up contribution limit | 50 years |
Commitments and Contingencies -
Commitments and Contingencies - Commitments (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operating Leased Assets [Line Items] | |||
Rent expense | $ 6,700,000 | $ 4,700,000 | $ 2,600,000 |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
2,017 | 5,778,000 | ||
2,018 | 4,952,000 | ||
2,019 | 4,810,000 | ||
2,020 | 4,053,000 | ||
2,021 | 3,332,000 | ||
Thereafter | 3,879,000 | ||
Total | 26,804,000 | ||
Payments for litigation settlements | $ 0 | ||
Minimum | Lease Agreements [Member] | |||
Operating Leased Assets [Line Items] | |||
Lease agreement expiration year | 2,017 | ||
Maximum | Lease Agreements [Member] | |||
Operating Leased Assets [Line Items] | |||
Lease agreement expiration year | 2,023 |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016USD ($)person | Dec. 31, 2015USD ($)segment | Dec. 31, 2014USD ($) | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Number of business activities | segment | 1 | ||
Number of segment managers | person | 0 | ||
Revenues | $ 163,926 | $ 149,298 | $ 132,295 |
Property and equipment-net | 5,503 | 6,572 | |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 77,039 | 74,235 | 72,124 |
International | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $ 86,887 | $ 75,063 | $ 60,171 |
Sales Revenue, Net | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration risk, percentage | 16.00% | 17.00% | 22.00% |
Sales Revenue, Net | United States | Geographic Concentration Risk [Member] | Minimum | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration risk, percentage | 10.00% | 10.00% | 10.00% |
Sales Revenue, Net | Germany | Geographic Concentration Risk [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $ 21,300 | ||
Concentration risk, percentage | 13.00% | ||
Net Property and Equipment | India | Geographic Concentration Risk [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration risk, percentage | 24.00% | 22.00% | |
Property and equipment-net | $ 1,300 | $ 1,400 |
Net Loss per Share (Details)
Net Loss per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Numerator: | |||
Net loss | $ (67,180) | $ (84,482) | $ (61,889) |
Denominator: | |||
Weighted-average shares outstanding | 85,853 | 78,867 | 48,332 |
Less: weighted average shares subject to repurchase | (8) | (112) | (815) |
Weighted-average shares used to compute basic and diluted net loss per share | 85,845 | 78,755 | 47,517 |
Basic and diluted net loss per share | $ (0.78) | $ (1.07) | $ (1.30) |
Net Loss Per Share - Antidiluti
Net Loss Per Share - Antidilutive (Details) - shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Stock Option [Member] | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from net loss per share (shares) | 20,313,438 | 19,344,137 | 17,125,349 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Loss before Income Taxes | |||
United States | $ (67,402) | $ (84,595) | $ (61,733) |
International | 1,204 | 965 | 361 |
Loss before income taxes | (66,198) | (83,630) | (61,372) |
Income tax expense, current: | |||
State | 22 | 26 | 25 |
Foreign | 960 | 826 | 492 |
Total current income tax expense | $ 982 | $ 852 | $ 517 |
Income Taxes - Rate reconciliat
Income Taxes - Rate reconciliation (Details) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Federal tax benefit at statutory rate | 34.00% | 34.00% | 34.00% |
State tax benefit net of federal effect | 4.40% | 2.20% | 2.80% |
Foreign taxes | (0.40%) | (0.40%) | (0.30%) |
Change in valuation allowance | (33.00%) | (33.90%) | (35.00%) |
Credits | 1.80% | 1.50% | 1.90% |
Stock-based compensation | (8.00%) | (4.10%) | (3.50%) |
Non-deductible expenses and other | (0.30%) | (0.40%) | (0.70%) |
Effective tax rate | (1.50%) | (1.10%) | (0.80%) |
Income Taxes - Deferred tax ass
Income Taxes - Deferred tax assets (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Components of Deferred Tax Assets [Abstract] | ||
Accruals and allowances | $ 8,862 | $ 6,489 |
Gains on foreign exchange | 81 | 127 |
Net operating loss carryforwards | 81,623 | 64,674 |
Depreciation and amortization | 6,489 | 7,413 |
R&D tax credits | 10,461 | 7,969 |
Stock-based compensation | 10,272 | 9,278 |
Valuation allowance | (117,788) | (95,950) |
Net deferred tax assets | $ 0 | $ 0 |
Income Taxes - Loss CF(Details)
Income Taxes - Loss CF(Details) $ in Millions | Dec. 31, 2016USD ($) |
Federal | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | $ 241.3 |
State | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | $ 101.7 |
Income Taxes - Credit CF(Detail
Income Taxes - Credit CF(Details) - R&D $ in Millions | Dec. 31, 2016USD ($) |
California Tax Authority | |
Tax Credit Carryforward [Line Items] | |
Tax credit carryforwards | $ 9.5 |
Federal | |
Tax Credit Carryforward [Line Items] | |
Tax credit carryforwards | $ 8.4 |
Income Taxes - Unrealized benef
Income Taxes - Unrealized benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Deferred tax asset not recognized for excess equity compensation | $ 5,400 | ||
Non-current liability related to uncertain tax positions | 0 | ||
Reconciliation of the gross unrealized tax benefits | |||
Unrecognized tax benefits, beginning of year | 4,052 | $ 2,794 | $ 1,674 |
Gross increases - tax positions from prior periods | 43 | 10 | |
Gross increases - tax positions from current period | 1,211 | 1,258 | 1,110 |
Unrecognized tax benefits, end of year | $ 5,306 | $ 4,052 | $ 2,794 |