Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Jun. 30, 2014 | Jul. 31, 2014 | |
Document Information [Line Items] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Jun-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Trading Symbol | 'MOBL | ' |
Entity Registrant Name | 'MobileIron, Inc. | ' |
Entity Central Index Key | '0001470099 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Non-accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 75,867,717 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $155,313 | $73,573 |
Accounts receivable, net of allowance for doubtful accounts of $492 at June 30, 2014 and $492 at December 31, 2013 | 28,312 | 24,125 |
Prepaid expenses and other current assets | 4,411 | 3,712 |
Total current assets | 188,036 | 101,410 |
Property and equipment—net | 3,405 | 3,095 |
Intangible assets—net | 2,257 | 1,311 |
Goodwill | 5,475 | 4,799 |
Other assets | 761 | 644 |
TOTAL ASSETS | 199,934 | 111,259 |
Current liabilities: | ' | ' |
Accounts payable | 3,020 | 836 |
Accrued expenses | 15,071 | 14,798 |
Short-term borrowings | ' | 4,300 |
Deferred revenue-current | 36,628 | 32,422 |
TOTAL CURRENT LIABILITIES | 54,719 | 52,356 |
Long-term liabilities: | ' | ' |
Deferred revenue-noncurrent | 9,682 | 8,329 |
Other long-term liabilities | 203 | 140 |
TOTAL LIABILITIES | 64,604 | 60,825 |
Commitments and contingencies (Note 11) | ' | ' |
Convertible preferred stock: | ' | ' |
Convertible preferred stock, $0.0001 par value, 10,000,000 shares authorized, no shares issued or outstanding at June 30, 2014; 69,505,831 shares authorized and 49,446,072 shares issued and outstanding at December 31, 2013 | ' | 160,259 |
Stockholders' equity (deficit): | ' | ' |
Common stock, $0.0001 par value, 300,000,000 and 111,390,000 shares authorized, 75,770,406 shares and 11,008,283 shares issued and outstanding at June 30, 2014 and December 31, 2013, respectively | 8 | 2 |
Additional paid-in capital | 295,229 | 19,007 |
Accumulated deficit | -159,907 | -128,834 |
TOTAL STOCKHOLDERS' EQUITY (DEFICIT) | 135,330 | -109,825 |
TOTAL LIABILITIES, CONVERTIBLE PREFERRED STOCK, AND STOCKHOLDERS' EQUITY (DEFICIT) | $199,934 | $111,259 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Accounts receivable allowances | $492 | $492 |
Convertible preferred stock, par value | $0.00 | $0.00 |
Convertible preferred stock, shares authorized | 10,000,000 | 69,505,831 |
Convertible preferred stock, shares issued | 0 | 49,446,072 |
Convertible preferred stock, shares outstanding | 0 | 49,446,072 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 300,000,000 | 111,390,000 |
Common stock, shares issued | 75,770,406 | 11,008,283 |
Common stock, shares outstanding | 75,770,406 | 11,008,283 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Revenue | ' | ' | ' | ' |
Perpetual license | $15,933 | $17,243 | $30,608 | $36,437 |
Subscription | 7,104 | 3,236 | 13,070 | 5,973 |
Software support and services | 8,430 | 4,676 | 16,002 | 8,566 |
Total revenue | 31,467 | 25,155 | 59,680 | 50,976 |
Cost of revenue | ' | ' | ' | ' |
Perpetual license | 1,013 | 816 | 2,124 | 1,581 |
Subscription | 1,466 | 884 | 2,706 | 1,745 |
Software support and services | 3,429 | 2,187 | 6,315 | 4,276 |
Total cost of revenue | 5,908 | 3,887 | 11,145 | 7,602 |
Gross profit | 25,559 | 21,268 | 48,535 | 43,374 |
Operating expenses: | ' | ' | ' | ' |
Research and development | 11,919 | 8,565 | 22,218 | 17,415 |
Sales and marketing | 25,063 | 15,442 | 46,827 | 29,202 |
General and administrative | 5,117 | 3,287 | 9,725 | 5,737 |
Amortization of intangible assets | 365 | 52 | 417 | 104 |
Total operating expenses | 42,464 | 27,346 | 79,187 | 52,458 |
Operating loss | -16,905 | -6,078 | -30,652 | -9,084 |
Other expense - net | 95 | 83 | 192 | 168 |
Loss before income taxes | -17,000 | -6,161 | -30,844 | -9,252 |
Income tax expense | 111 | 39 | 229 | 90 |
Net loss | ($17,111) | ($6,200) | ($31,073) | ($9,342) |
Net loss per share, basic and diluted | ($0.66) | ($0.64) | ($1.67) | ($0.99) |
Weighted-average shares used to compute net loss per share, basic and diluted | 26,028 | 9,692 | 18,590 | 9,444 |
CONSOLIDATED_STATEMENTS_OF_CON
CONSOLIDATED STATEMENTS OF CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (DEFICIT) (USD $) | Total | Series F Preferred Stock | Convertible Preferred Stock | Convertible Preferred Stock | Common Stock | Additional Paid-in Capital | Accumulated Deficit |
In Thousands, except Share data | USD ($) | USD ($) | Series F Preferred Stock | USD ($) | USD ($) | USD ($) | |
USD ($) | |||||||
BALANCE at Dec. 31, 2013 | ($109,825) | ' | $160,259 | ' | $2 | $19,007 | ($128,834) |
BALANCE, Shares at Dec. 31, 2013 | ' | ' | 49,446,072 | ' | 11,008,283 | ' | ' |
Issuance of common stock for stock option exercises | 1,952 | ' | ' | ' | ' | 1,952 | ' |
Issuance of common stock for stock option exercises, Shares | ' | ' | ' | ' | 864,256 | ' | ' |
Vesting of early exercised stock options and restricted stock | 304 | ' | ' | ' | ' | 304 | ' |
Vesting of early exercised stock options and restricted stock, Shares | ' | ' | ' | ' | 1,196,652 | ' | ' |
Issuance of Series F preferred stock at $9.9550 per share in January—net of issuance costs of $6 | ' | ' | ' | 1,994 | ' | ' | ' |
Issuance of Series F preferred stock at $9.9550 per share in January—net of issuance costs of $6, Shares | ' | ' | ' | 200,903 | ' | ' | ' |
Stock-based compensation | 6,932 | ' | ' | ' | ' | 6,932 | ' |
Conversion of preferred stock for initial public offering | 162,253 | ' | -162,253 | ' | 5 | 162,248 | ' |
Conversion of preferred stock for initial public offering, Shares | 49,646,975 | ' | -49,646,975 | ' | 49,646,975 | ' | ' |
Issuance of common stock for initial public offering, net of issuance costs of $4,145 | 102,805 | ' | ' | ' | 1 | 102,804 | ' |
Issuance of common stock for initial public offering, net of issuance costs of $4,145, Shares | ' | ' | ' | ' | 12,777,777 | ' | ' |
Purchase of Averail Corporation | 1,982 | ' | ' | ' | ' | 1,982 | ' |
Purchase of Averail Corporation, Shares | ' | ' | ' | ' | 276,463 | ' | ' |
Net loss | -31,073 | ' | ' | ' | ' | ' | -31,073 |
BALANCE at Jun. 30, 2014 | $135,330 | ' | ' | ' | $8 | $295,229 | ($159,907) |
BALANCE, Shares at Jun. 30, 2014 | ' | ' | ' | ' | 75,770,406 | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CON1
CONSOLIDATED STATEMENTS OF CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (DEFICIT) (Parenthetical) (USD $) | 6 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 |
Series F Preferred Stock | ' |
Preferred stock, per share | $9.96 |
Stock issuance costs | $6 |
Common Stock | ' |
Stock issuance costs | $4,145 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASHFLOWS (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Net loss | ($31,073) | ($9,342) |
Adjustments to reconcile net loss to net cash used in operating activities: | ' | ' |
Stock-based compensation expense | 6,932 | 4,449 |
Depreciation | 1,085 | 698 |
Amortization of intangible assets | 655 | 243 |
Loss on disposal of equipment | 21 | ' |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | -4,187 | 2,363 |
Other current and noncurrent assets | -817 | -1,370 |
Accounts payable | 1,167 | 1,089 |
Accrued expenses and other long-term liabilities | 562 | 738 |
Deferred revenue | 5,559 | -8,145 |
Net cash used in operating activities | -20,096 | -9,277 |
CASH FLOWS FROM INVESTING ACTIVITES: | ' | ' |
Purchase of property and equipment | -1,415 | -963 |
Purchase of intellectual property | ' | -30 |
Net cash used in investing activities | -1,415 | -993 |
CASH FLOWS FROM FINANCING ACTIVITES: | ' | ' |
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 issuancecosts of $6 in the six months ended June 30, 2014 | 1,994 | ' |
Proceeds from initial public offering | 106,950 | ' |
Payment of offering costs related to initial public offering | -3,440 | ' |
Proceeds from exercise of stock options | 2,047 | 174 |
Net cash provided by financing activities | 103,251 | 174 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | 81,740 | -10,096 |
CASH AND CASH EQUIVALENTS—Beginning of period | 73,573 | 38,692 |
CASH AND CASH EQUIVALENTS—End of period | 155,313 | 28,596 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ' | ' |
Cash paid for income taxes | 99 | 65 |
SUPPLEMENTAL DISCLOSURES OF NONCASH INVESTING ACTIVITIES TO ACQUIRE AVERAIL IN 2014: | ' | ' |
Fair value of assets acquired | 2,276 | ' |
Liabilities assumed | -294 | ' |
Issuance of common stock | -1,982 | ' |
SUPPLEMENTAL DISCLOSURES OF NONCASH FINANCING ACTIVITIES: | ' | ' |
Offering costs recorded in accrued liabilities | $705 | ' |
CONSOLIDATED_STATEMENTS_OF_CAS1
CONSOLIDATED STATEMENTS OF CASHFLOWS (Parenthetical) (USD $) | 6 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 |
Cash issuance costs | $3,440 |
Convertible Preferred Stock | ' |
Cash issuance costs | $6 |
Description_of_Business_and_Si
Description of Business and Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2014 | |
Description of Business and Significant Accounting Policies | ' |
1. Description of Business and Significant Accounting Policies | |
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 (“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 unaudited condensed consolidated financial statements as of June 30, 2014 and for the three and six months ended June 30, 2014 and June 30, 2013 have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial statements and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”), and include the accounts of our wholly owned subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation. | |
Certain information and footnote disclosures in this Form 10-Q normally included in annual financial statements prepared in accordance with U.S. GAAP and pursuant to the rules and regulations of the SEC have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, the unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary for a fair presentation of our balance sheet as of June 30, 2014, our operating results for the three and six months ended June 30, 2014 and June 30, 2013, and our cash flows for the six months ended June 30, 2014 and June 30, 2013. Operating results for the three and six months ended June 30, 2014 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2014. The condensed consolidated balance sheet as of December 31, 2013 has been derived from the audited consolidated financial statements as of that date but does not include all the footnotes required by U.S. GAAP for complete financial statements. | |
The accompanying condensed consolidated financial statements and related financial information should be read in conjunction with our audited financial statements and related notes thereto for the year ended December 31, 2013, included in our prospectus filed with the SEC on June 12, 2014 pursuant to Rule 424(b) under the Securities Act of 1933, as amended (the “Securities Act”). | |
On May 27, 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-to-five basis; (iii) the exercise price of each outstanding option to purchase common stock was proportionately increased on a seven-to-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 these condensed consolidated financial statements and notes to the condensed consolidated financial statements have been retroactively adjusted to reflect this reverse stock split. | |
Segments | |
We have one reportable segment. | |
Summary of Significant Accounting Policies | |
There have been no material changes to our significant accounting policies as compared to those described in our Prospectus filed with the SEC on June 12, 2014 pursuant to Rule 424(b) under the Securities Act. | |
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 $93,000 and $86,000 for the three months ended June 30, 2014 and 2013, respectively, and approximately $169,000 and $172,000 for the six months ended June 30, 2014 and 2013, respectively, in other expense—net in our condensed consolidated statements of operations. | |
Use of Estimates | |
The preparation of condensed 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. | |
Revenue Recognition | |
We derive revenue principally from software-related arrangements consisting of perpetual software licenses, post-contract customer support for such licenses (“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 and 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 the customer a license key to download the 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 (“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 and if evidence of the fair value of one or more undelivered elements does not exist, the revenue is deferred and recognized when delivery of those elements occurs, 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 statement 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 (“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 statement 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 statement 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. Approximately $1.4 million and $5.9 million of perpetual license revenue in three months ended June 30, 2014 and 2013, respectively, and approximately $2.9 million and $13.4 million of perpetual license revenue in the six months ended June 30, 2014 and 2013, respectively, related to sales made prior to January 1, 2013. Approximately $4.4 million and $7.3 million deferred revenue as of June 30, 2014 and December 31, 2013, related to 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 its PCS and professional services to each respective revenue caption using its 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 statement of operations. | |
Sales made through resellers are recognized as revenue upon sell-through to end customers. | |
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 June 30, 2014 and December 31, 2013 cash and cash equivalents consist of cash deposited with banks and money market funds for which their cost approximates their fair value. | |
Comprehensive Loss | |
Comprehensive loss includes all changes in equity (net assets) during a period from non-owner sources. For the three and six months ended June 30, 2014 and 2013, there were no differences between net loss and comprehensive loss. | |
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, and stock options are considered to be potentially dilutive securities. Because we have reported a net loss for the three and six months ended June 30, 2014 and 2013, 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. | |
Concentrations of Credit Risk | |
Financial instruments that potentially subject us to a concentration of credit risk consist of cash and money market funds. Substantially all of our cash is held by one financial institution that management believes is of high-credit quality. Such deposits exceed federally insured limits. Substantially all of our money market funds are held in a single fund that is 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. As of June 30, 2014 and December 31, 2013 we have an allowance for doubtful accounts of $492,000. | |
One reseller accounted for 26% of total revenue (2% as an end customer) and 18% of total revenue (0% as an end customer) for the three months ended June 30, 2014 and 2013, respectively, and for 25% of total revenue (1% as an end customer) and 18% of total revenue (0% as an end customer) for the six months ended June 30, 2014 and 2013, respectively. The same reseller accounted for 26% and 11% of net accounts receivable as of June 30, 2014 and December 31, 2013, respectively. | |
A separate reseller accounted for 13% of our net accounts receivable as of December 31, 2013. | |
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. | |
Inventory | |
We have appliances (industry standard hardware servers available from multiple vendors) that are available for customers to purchase, on which we will preinstall our software prior to shipment. Inventory is stated at the lower of cost or net realizable value. We value our inventory using the first-in, first-out method. Appropriate consideration is given to obsolescence, excessive levels, deterioration and other factors in evaluating net realizable value—such adjustments were not material for any period presented. The entire inventory is comprised of finished goods. As of June 30, 2014 and as of December 31, 2013, we had inventory of $657,000 and $665,000, respectively, which is included in prepaid expenses and other current assets in the consolidated balance sheets. | |
Software Development Costs | |
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 SaaS offering to the extent it will not be sold, leased, or otherwise marketed as a separate product. Costs related to preliminary project activities and post-implementation activities are expensed as incurred. We did not capitalize any costs during the three and six months ended June 30, 2014 and 2013, as all software developed for our cloud offering will be sold as part of our perpetual or term licenses. | |
Property and Equipment | |
Property and equipment are stated at cost. Depreciation is computed using the straight-line method over the estimated useful lives, 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 observed no impairment indicators during the three and six months ended June 30, 2014 and 2013. | |
We also review our indefinite lived intangible assets for impairment. We have determined that our intangible assets have not been impaired during the three and six months ended June 30, 2014 or the corresponding periods in 2013. | |
Impairment of Long-Lived Assets | |
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 (“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 for the three and six months ended June 30, 2014 and the corresponding periods in 2013 based on its historical experience for annual grant years where the majority of the vesting terms have been satisfied. We recognize compensation costs for awards with a service and performance condition based on the graded vesting method. We recognize compensation costs, net of forfeitures, for stock options or other awards with only service conditions on a straight-line basis over the requisite service period of the award, which is generally the vesting term. | |
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 for the three months ended June 30, 2014 and 2013 was $59,000 and $138,000, respectively. Advertising expense for the six months ended June 30, 2014 and 2013 was $206,000 and $221,000, 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 (“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 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 obligation 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 would require significantly expanded disclosures about revenue recognition. Provisions of this new standard are effective for annual reporting periods (including interim reporting periods within those annual periods) beginning after December 15, 2016. Early application is not permitted. Entities have the option of using either a full retrospective or a modified retrospective approach to adopt this new guidance. We are currently evaluating the potential effect on our consolidated financial statements from adoption of this standard. |
Fair_Value_Measurement
Fair Value Measurement | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Fair Value Measurement | ' | |||||||||||||||
2. Fair value measurement | ||||||||||||||||
We report all 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 June 30, 2014 or December 31, 2013. | ||||||||||||||||
Our financial instruments measured at fair value on a recurring basis as of June 30, 2014 and December 31, 2013 were as follows (in thousands): | ||||||||||||||||
As of June 30, 2014 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Money market funds | $ | 137,401 | $ | — | $ | — | $ | 137,401 | ||||||||
Total | $ | 137,401 | $ | — | $ | — | $ | 137,401 | ||||||||
As of December 31, 2013 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Money market funds | $ | 52,901 | $ | — | $ | — | $ | 52,901 | ||||||||
Total | $ | 52,901 | $ | — | $ | — | $ | 52,901 | ||||||||
As of June 30, 2014 and December 31, 2013, all money market funds had an original maturity of less than three months and were included in cash and cash equivalents in the condensed consolidated balance sheets. |
Acquisition
Acquisition | 6 Months Ended | ||||
Jun. 30, 2014 | |||||
Acquisition | ' | ||||
3. Acquisition | |||||
On April 2014, we completed the acquisition of certain assets of Averail Corporation (“Averail”), a privately-held content security-oriented software company, for 276,466 shares of common stock and the assumption of certain liabilities. The assets acquired will provide additional features in our Docs@Work product. We obtained control of the specific assets acquired and liabilities assumed of Averail through the issuance of 276,466 shares of our common stock to the pre-existing Averail shareholders. Included in the total, 43,612 shares are subject to a holdback provision for standard representations and warranties and will be held in escrow for 18 month from the date of acquisition. The aggregate purchase price of the transaction was approximately $2.0 million, net of liabilities assumed. In connection with this acquisition, 206,463 of these shares were distributed to two Averail investors that are also MobileIron investors. In addition, one of our board members served as a director of Averail. 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) | $ | 1,670 | |||
Holdback common stock (43,612 shares) | 312 | ||||
Total consideration | $ | 1,982 | |||
Transaction costs associated with the acquisition were $167,000, all of which we expensed in the six months ended June 30, 2014, and are included in general and administrative expense in the accompanying consolidated statement 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 the business combination was primarily related to value placed on the employee workforce and expected synergies. | |||||
The purchase price was allocated as follows (in thousands): | |||||
Technology – intangible asset | $ | 1,600 | |||
Goodwill | 676 | ||||
Liabilities assumed | (294 | ) | |||
Net assets acquired | $ | 1,982 | |||
The technology intangible asset is being amortized over a period of four years and is reported, net of accumulated amortization, in the accompanying condensed consolidated balance sheet as of June 30, 2014. Amortization expense related to the intangible asset was $100,000 for the three months ended June 30, 2014, all of which was included in cost of revenue. | |||||
The amount of revenue and earnings of Averail since the acquisition date are included in the condensed consolidated statement 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 | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Goodwill and Intangibles | ' | |||||||||||||||
4. Goodwill and intangibles | ||||||||||||||||
Our intangible assets are subject to amortization on a straight-line basis over their estimated useful lives as follows: | ||||||||||||||||
Estimated Life | Weighted Average Remaining Life as of June 30, 2014 | |||||||||||||||
(In Years) | ||||||||||||||||
Noncompete covenants | 2 | 0.2 | ||||||||||||||
Technology | 5-Mar | 1.3 | ||||||||||||||
In conjunction with the termination of the employees subject to the noncompete agreements, we reduced the remaining life of the noncompete covenants intangible asset. | ||||||||||||||||
The following table reflects intangible assets subject to amortization as of June 30, 2014 and as of December 31, 2013 (in thousands): | ||||||||||||||||
30-Jun-14 | ||||||||||||||||
Gross Carrying | Accumulated | Net Book | ||||||||||||||
Amount | Amortization | Impairment | Value | |||||||||||||
In-process research and development | $ | 3,925 | $ | — | $ | (3,925 | ) | $ | — | |||||||
Noncompete covenants | 1,042 | (677 | ) | — | 365 | |||||||||||
Technology | 2,429 | (537 | ) | — | 1,892 | |||||||||||
Total | $ | 7,396 | $ | (1,214 | ) | $ | (3,925 | ) | $ | 2,257 | ||||||
31-Dec-13 | ||||||||||||||||
Gross Carrying | Accumulated | Net Book | ||||||||||||||
Amount | Amortization | Impairment | Value | |||||||||||||
In-process research and development | $ | 3,925 | $ | — | $ | (3,925 | ) | $ | — | |||||||
Noncompete covenants | 1,042 | (260 | ) | — | 782 | |||||||||||
Technology | 829 | (300 | ) | — | 529 | |||||||||||
Total | $ | 5,796 | $ | (560 | ) | $ | (3,925 | ) | $ | 1,311 | ||||||
Amortization of the technology intangible assets was recorded in cost of revenue. | ||||||||||||||||
During three months ended September 30, 2013 we recorded an impairment loss of $3.9 million against the entire recorded in-process R&D balance associated with the Push acquisition. | ||||||||||||||||
Estimated remaining intangible assets amortization expense for the next five fiscal years and thereafter is as follows (in thousands): | ||||||||||||||||
Year | ||||||||||||||||
2014 (remaining) | $ | 703 | ||||||||||||||
2015 | 654 | |||||||||||||||
2016 | 400 | |||||||||||||||
2017 | 400 | |||||||||||||||
2018 | 100 | |||||||||||||||
Total | $ | 2,257 | ||||||||||||||
At June 30, 2014 and December 31, 2013, the carrying value of goodwill was as follows (in thousands): | ||||||||||||||||
Balance , December 31, 2013 | $ | 4,799 | ||||||||||||||
Additions | 676 | |||||||||||||||
Balance, June 30, 2014 | $ | 5,475 | ||||||||||||||
Significant_Balance_Sheet_Comp
Significant Balance Sheet Components | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Significant Balance Sheet Components | ' | |||||||
5. Significant balance sheet components | ||||||||
Property and Equipment—Property and equipment at June 30, 2014 and December 31, 2013 consisted of the following (in thousands): | ||||||||
30-Jun-14 | 31-Dec-13 | |||||||
Computers and appliances | $ | 5,199 | $ | 4,265 | ||||
Purchased software | 1,235 | 856 | ||||||
Furniture and fixtures | 177 | 176 | ||||||
Leasehold improvements | 696 | 689 | ||||||
Total property and equipment | 7,307 | 5,986 | ||||||
Accumulated depreciation and amortization | (3,902 | ) | (2,891 | ) | ||||
Total property and equipment—net | $ | 3,405 | $ | 3,095 | ||||
Accrued Expenses—Accrued expenses at June 30, 2014 and December 31, 2013 consisted of the following (in thousands): | ||||||||
30-Jun-14 | 31-Dec-13 | |||||||
Accrued commissions | $ | 5,094 | $ | 6,703 | ||||
Accrued payroll and related expenses | 3,579 | 3,852 | ||||||
Accrued vacation | 3,312 | 2,088 | ||||||
Liability for early exercised stock options (Note 9) | 727 | 938 | ||||||
Other accrued liabilities | 2,359 | 1,217 | ||||||
Total accrued expenses | $ | 15,071 | $ | 14,798 | ||||
Deferred Revenue—Current and non-current deferred revenue at June 30, 2014 and December 31, 2013 consisted of the following (in thousands): | ||||||||
30-Jun-14 | 31-Dec-13 | |||||||
Perpetual license | $ | 6,230 | $ | 8,589 | ||||
Subscription | 14,682 | 10,600 | ||||||
Software support | 23,544 | 19,868 | ||||||
Professional services | 1,854 | 1,694 | ||||||
Total current and noncurrent deferred revenue | $ | 46,310 | $ | 40,751 | ||||
Included in deferred perpetual license revenue was $4.4 million and $7.3 million at June 30, 2014 and at December 31, 2013, respectively, of revenue deferred for multiple element software license arrangements billed prior to January 1, 2013 for which we did not recognize revenue immediately due to lack of VSOE of fair value for software support and services. See Note 1 to these condensed consolidated financial statements. |
Line_of_Credit
Line of Credit | 6 Months Ended |
Jun. 30, 2014 | |
Line of Credit | ' |
6. Line of credit | |
In August 2012, we entered into a $10.0 million revolving line of credit with a financial institution. The revolving line of credit 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. Revolving loans may be borrowed, repaid and re-borrowed until August 2014. Amounts borrowed accrue interest at a floating-per-annum rate equal to the greater of (1) the prime rate plus 1% or (2) 4.25%. 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 nonfinancial covenants, including limitations on indebtedness and restrictions on dividend distributions, among others, and the borrowing capacity is limited to eligible accounts receivable. | |
In December 2013, we amended the revolving line of credit with the same financial institution to increase the potential borrowing capacity to $20.0 million and extend the maturity date to August 2015. All other material terms and conditions remained the same with the exception of the added requirement that we maintain an adjusted quick ratio (defined as the ratio of current assets to current liabilities minus deferred revenue) of at least 1.15. | |
There were no outstanding amounts under the line of credit at June 30, 2014 and $4.3 million outstanding at December 31, 2013. As of June 30, 2014 and December 31, 2013, we were in compliance with all financial covenants. |
Preferred_Stock
Preferred Stock | 6 Months Ended | |||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||
Preferred Stock | ' | |||||||||||||||||||
7. 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 June 30, 2014. | ||||||||||||||||||||
Immediately prior to the IPO, we were authorized to issue up to 18,604,666 shares of Series A preferred stock (“Series A”), 16,225,758 shares of Series B preferred stock (“Series B”), 13,281,250 shares of Series C preferred stock (“Series C”), 6,550,505 shares of Series D preferred stock (“Series D”), 6,429,159 shares of Series E preferred stock (“Series E”), and 8,414,493 shares of Series F preferred stock (“Series F”). | ||||||||||||||||||||
In January 2014, we issued 200,903 shares of Series F for net cash proceeds of $2.0 million. We did not issue any preferred stock in the three months ended June 30, 2014. | ||||||||||||||||||||
The following table summarizes information regarding our convertible preferred stock by class immediately prior to the IPO: | ||||||||||||||||||||
Shares | ||||||||||||||||||||
Authorized | Outstanding | Per share | Aggregate | Carrying | ||||||||||||||||
liquidation | liquidation | value | ||||||||||||||||||
preference | preference | |||||||||||||||||||
Series A | 18,604,666 | 13,289,037 | $ | 0.7 | $ | 9,302 | $ | 9,222 | ||||||||||||
Series B | 16,225,758 | 11,589,825 | 0.95 | 10,977 | 10,929 | |||||||||||||||
Series C | 13,281,250 | 9,486,602 | 1.79 | 17,000 | 16,860 | |||||||||||||||
Series D | 6,550,505 | 4,678,927 | 4.27 | 20,000 | 19,945 | |||||||||||||||
Series E | 6,429,159 | 4,592,244 | 9.96 | 45,716 | 45,596 | |||||||||||||||
Series F | 8,414,493 | 6,010,340 | 9.96 | 59,833 | 59,701 | |||||||||||||||
Total | 69,505,831 | 49,646,975 | $ | 162,828 | $ | 162,253 | ||||||||||||||
Common_Stock
Common Stock | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Common Stock | ' | |||||||
8. Common Stock | ||||||||
We were authorized to issue 300,000,000 and 111,390,000 shares of common stock with a par value of $0.0001 per share as of June 30, 2014 and December 31, 2013, respectively. Each share of common stock is entitled to one vote. The holders of common stock are also entitled to receive dividends out of funds legally available therefore, 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 June 30, 2014 and December 31, 2013, we reserved shares of common stock for issuance as follows: | ||||||||
As of | As of | |||||||
June 30, | December 31, | |||||||
2014 | 2013 | |||||||
Conversion of preferred stock | — | 49,446,072 | ||||||
Options outstanding | 16,289,915 | 13,330,882 | ||||||
Unvested restricted stock outstanding | 153,916 | 1,918,620 | ||||||
Options available for future grant under stock option plan | 8,165,979 | 2,085,338 | ||||||
Available for grant under employee stock purchase plan | 2,071,428 | — | ||||||
Total | 26,681,238 | 66,780,912 | ||||||
Share_Based_Awards
Share Based Awards | 6 Months Ended | |||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||
Share Based Awards | ' | |||||||||||||||||||
9. Share Based Awards | ||||||||||||||||||||
We have authorized the issuance of stock options and restricted stock for officers, employees and consultants of the Company. | ||||||||||||||||||||
2008 Plan | ||||||||||||||||||||
In 2008, our board of directors approved the adoption of the 2008 Plan (the “2008 Plan”). As of December 31, 2013, a total of 2,085,338 shares were available for issuance under the 2008 Plan. | ||||||||||||||||||||
The 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 the Company’s 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 (“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 (“ISOs”), within the meaning of Section 422 of the Internal Revenue Code (the “Code”), to our employees and our parent and subsidiary corporations’ employees, and for the grant of nonstatutory stock options (“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 number of shares of our common stock that may be issued under our 2014 Plan is 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. Additionally, the number of shares of our common stock reserved for issuance under our 2014 Plan will 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. The maximum number of shares that may be issued upon the exercise of ISOs under our 2014 Plan is 42,857,142. | ||||||||||||||||||||
Shares issued under our 2014 Plan will be authorized but unissued or reacquired shares of our common stock. Shares subject to stock awards granted under our 2014 Plan that expire or terminate without being exercised in full, or that are paid out in cash rather than in shares, will not reduce the number of shares available for issuance under our 2014 Plan. Additionally, shares issued pursuant to stock awards under our 2014 Plan that we repurchase or that are forfeited, as well as shares used to pay the exercise price of a stock award or to satisfy the tax withholding obligations related to a stock award, will become available for future grant under our 2014 Plan. | ||||||||||||||||||||
2014 Employee Stock Purchase Plan | ||||||||||||||||||||
Our board of directors adopted our 2014 Employee Stock Purchase Plan, (“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 aggregate number of shares of our common stock that may be issued under our ESPP is 2,071,428 shares. Additionally, the number of shares of our common stock reserved for issuance under our ESPP will 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. | ||||||||||||||||||||
We recorded approximately $411,000 of stock-based compensation for the three months ended June 30, 2014 related to our ESPP plan. We did not record any stock-based compensation expense related to our ESPP plan in any prior period presented. | ||||||||||||||||||||
Stock-based compensation expense | ||||||||||||||||||||
Restricted Stock | ||||||||||||||||||||
Restricted stock activity for the six months ended June 30, 2014 was as follows: | ||||||||||||||||||||
Restricted Stock | ||||||||||||||||||||
Time-based | Time-and-performance based | Total | ||||||||||||||||||
shares | shares | shares | ||||||||||||||||||
Unvested, December 31, 2013 | 886,718 | 1,031,902 | 1,918,620 | |||||||||||||||||
Granted | 16,294 | — | 16,294 | |||||||||||||||||
Vested | (457,828 | ) | (559,578 | ) | (1,017,406 | ) | ||||||||||||||
Cancelled/Forfeited | (350,440 | ) | (413,152 | ) | (763,592 | ) | ||||||||||||||
Unvested, June 30, 2014 | 94,744 | 59,172 | 153,916 | |||||||||||||||||
For stock-based compensation expense, we measure the value of the restricted stock based on the fair value of our common stock on the date of grant. | ||||||||||||||||||||
For shares subject to service and performance conditions, we evaluate the probability of meeting the vesting conditions at the end of each reporting period to determine how much compensation expense to record. We amortize 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 differ from our current estimates, the cumulative effect on current and prior periods of those changes will be recorded in the period those estimates are revised. In May 2014, in conjunction with the termination of certain employees, we accelerated the vesting of and repurchased or cancelled shares of restricted stock. The stock-based compensation expense recorded in the six months ended June 30, 2014 includes the remaining compensation expense associated with those shares as well as expense of $451,000 associated with the modification of the awards. As of June 30, 2014, performance conditions associated with the remaining unvested time and performance awards have been met. | ||||||||||||||||||||
Stock Options | ||||||||||||||||||||
Stock option activity under the 2008 Plan and 2014 Plans for the six months ended June 30, 2014 was as follows: | ||||||||||||||||||||
Options Outstanding | ||||||||||||||||||||
Number of | Number of | Weighted- | Weighted- | Aggregate | ||||||||||||||||
Shares | Shares | Average | Average | Intrinsic | ||||||||||||||||
Available for | Exercise Price | Remaining | Value | |||||||||||||||||
Issuance | Contractual | (In thousands) | ||||||||||||||||||
Term (Years) | ||||||||||||||||||||
Balance—December 31, 2013 | 2,085,338 | 13,330,882 | $ | 2.9 | 8.38 | $ | 38,339 | |||||||||||||
Authorized | 9,904,961 | |||||||||||||||||||
Granted | (4,397,027 | ) | 4,397,027 | 6.39 | ||||||||||||||||
Exercised(1) | — | (907,028 | ) | 2.36 | ||||||||||||||||
Canceled | 530,966 | (530,966 | ) | 3.94 | ||||||||||||||||
Repurchased | 41,741 | |||||||||||||||||||
Balance—June 30, 2014 | 8,165,979 | 16,289,915 | $ | 3.84 | 8.38 | $ | 92,606 | |||||||||||||
Vested and exercisable—December 31, 2013 | 4,864,864 | $ | 19,378 | |||||||||||||||||
Vested and expected to vest(2)— | 12,244,397 | $ | 35,615 | |||||||||||||||||
December 31, 2013 | ||||||||||||||||||||
Vested and exercisable—June 30, 2014 | 5,589,016 | $ | 41,755 | |||||||||||||||||
Vested and expected to vest(2)—June 30, | 14,955,442 | $ | 85,849 | |||||||||||||||||
2014 | ||||||||||||||||||||
-1 | Includes early exercises of 42,772 for six months ended June 30, 2014. | |||||||||||||||||||
-2 | Options expected to vest reflect an estimated forfeiture rate. | |||||||||||||||||||
Our stock-based compensation expense was recorded in the following cost and expense categories (in thousands): | ||||||||||||||||||||
Three Months Ended, | Six Months Ended, | |||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||
Contra-revenue | $ | 98 | $ | 13 | $ | 123 | $ | 36 | ||||||||||||
Cost of revenue | 328 | 70 | 429 | 151 | ||||||||||||||||
Research and development | 1,687 | 1,383 | 2,935 | 2,975 | ||||||||||||||||
Sales and marketing | 1,498 | 466 | 2,114 | 892 | ||||||||||||||||
General and administrative | 895 | 218 | 1,331 | 395 | ||||||||||||||||
Total | $ | 4,506 | $ | 2,150 | $ | 6,932 | $ | 4,449 | ||||||||||||
During the three months ended June 30, 2014, we recorded $1.3 million in stock-based compensation expense related to employee stock options with vesting commencing on our IPO date. We accounted for these options using the graded vesting method. | ||||||||||||||||||||
We used Black-Scholes Model to estimate fair value of our stock options granted with the following weighted-average assumptions: | ||||||||||||||||||||
Three Months Ended, | Six Months Ended, | |||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||
Expected dividend yield | — | — | — | — | ||||||||||||||||
Risk-free interest rate | 1.8% - 2.6% | 1.5% - 2.4% | 1.7% - 2.7% | 1.0% - 2.4% | ||||||||||||||||
Expected volatility | 54% - 55% | 52% - 53% | 54% - 56% | 52% - 53% | ||||||||||||||||
Expected life (in years) | 5.8 - 10.0 | 5.9 - 10.0 | 5.6 - 10.0 | 5.9 - 10.0 | ||||||||||||||||
We used Black-Sholes model to estimate fair value of our employee stock purchase plan awards with the following weighted-average assumptions: | ||||||||||||||||||||
Three Months Ended, | ||||||||||||||||||||
June 30, | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Expected dividend yield | — | — | ||||||||||||||||||
Risk-free interest rate | 0.1% - 0.5% | — | ||||||||||||||||||
Expected volatility | 47% - 49% | — | ||||||||||||||||||
Expected life (in years) | 0.7 - 2.2 | — | ||||||||||||||||||
Total outstanding non-employee stock options were 64,127 and 78,389 at June 30, 2014 and December 31, 2013 respectively. The non-employee stock-based compensation expense was not material for any period presented. | ||||||||||||||||||||
As required by Topic 718 Compensation—Stock Compensation, we estimate expected forfeitures and recognize compensation costs only for those equity awards expected to vest. As of June 30, 2014, there was $24.7 million of total unrecognized compensation cost related to unvested stock options and restricted stock. The expense related to our stock-based arrangements is expected to be recognized over a weighted average period of 3.3 years. Our stock options granted during the six months ended June 30, 2014 were typically granted with vesting terms of 48 months. As of June 30, 2014, there was $9.4 million of total unrecognized compensation expense related to our employee stock purchase plan. The expense related to our employee stock purchase plan is expected to be recognized over a weighted average period of 1.5 years. | ||||||||||||||||||||
Early Exercise of Common Stock | ||||||||||||||||||||
During the three and six months ended June 30, 2014, we issued 2,329 and 42,772 shares, respectively, of common stock for the exercise of common stock options prior to their vesting dates, or early exercises. Cash received from all such early exercises of options is recorded in accrued expenses on the consolidated balance sheets and reclassified to stockholders’ equity (deficit) as the options vest. The unvested shares are subject to our repurchase right at the original purchase price. | ||||||||||||||||||||
As of June 30, 2014 and December 31, 2013 there were 285,030 and 465,260 shares, respectively, legally outstanding, but not included within common stock outstanding for accounting purposes as a result of the early exercise of common stock options, which were not yet vested. | ||||||||||||||||||||
As of June 30, 2014 and December 31, 2013, the aggregate price of shares subject to repurchase recorded in accrued expenses totaled $727,000 and $938,000, respectively. |
Employee_Benefit_Plan
Employee Benefit Plan | 6 Months Ended |
Jun. 30, 2014 | |
Employee Benefit Plan | ' |
10. Employee Benefit Plan | |
We maintain a defined contribution 401(k) plan. The plan covers all full-time employees over the age of 21. Each employee can contribute up to $17,500 annually. We have the option to provide matching contributions, but have not done so to date. |
Commitments_and_Contingencies
Commitments and Contingencies | 6 Months Ended | |||
Jun. 30, 2014 | ||||
Commitments and Contingencies | ' | |||
11. Commitments and Contingencies | ||||
Operating Leases | ||||
We lease our office facilities under noncancelable agreements expiring between 2014 and 2017. Rent expense for three months ended June 30, 2014 and 2013 was $597,000 and $349,000, respectively. Rent expense for the six months ended June 30, 2014 and 2013 was $1.1 million and $746,000, respectively. On June 25, 2014, we entered into an additional rental agreement in our Mountain View, CA location. The lease term expires in 2017 and minimum lease payments are approximately $2.0 million. The aggregate future minimum lease payments under the agreements are as follows (in thousands): | ||||
Year | ||||
2014 (remaining) | $ | 865 | ||
2015 | 1,791 | |||
2016 | 1,391 | |||
2017 | 699 | |||
2018 | — | |||
$ | 4,746 | |||
Litigation | ||||
We are involved in legal proceedings arising in the ordinary course of business, including intellectual property litigation. Although management currently is of the opinion that these matters will not have a material adverse effect on our consolidated condensed consolidated financial statements, the ultimate outcome of these matters cannot be predicted at this time, due to the inherent uncertainties in litigation. | ||||
On November 14, 2012, Good Technology filed a lawsuit against us in federal court in the Northern District of California alleging false and misleading representations concerning their products and infringement of four patents held by them. In the complaint, Good Technology sought unspecified damages, attorneys’ fees and a permanent injunction. On March 1, 2013, we counterclaimed against Good Technology for patent infringement of one of our patents. On May 17, 2013, the parties served infringement contentions for their respective patents, and on September 3, 2013, the parties served invalidity contentions regarding the opposing party’s patents. Discovery has commenced and a trial date has been set for July 2015. Although the outcome of this matter is currently not determinable, our management expects that any losses that are probable, or reasonably possible of being incurred as a result of this matter, would not be material to our consolidated financial statements as a whole, for all periods presented. |
Segment_Information
Segment Information | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Segment Information | ' | |||||||||||||||
12. 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: | ||||||||||||||||
Three Months Ended, | Six Months Ended, | |||||||||||||||
June 30, | June 30, | |||||||||||||||
(in thousands, except percentages) | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Revenue | ||||||||||||||||
United States | $ | 17,621 | $ | 13,545 | $ | 33,984 | $ | 27,153 | ||||||||
International | 13,846 | 11,610 | 25,696 | 23,823 | ||||||||||||
Total | $ | 31,467 | $ | 25,155 | $ | 59,680 | $ | 50,976 | ||||||||
Substantially all of our long-lived assets were attributable to operations in the United States as of June 30, 2014 and December 31, 2013. |
Net_Loss_Per_Share
Net Loss Per Share | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Net Loss per Share | ' | |||||||||||||||
13. Net Loss per Share | ||||||||||||||||
The following table sets forth the computation of basic and diluted net loss per share for the three and six months ended June 30, 2014 and corresponding periods for 2013 (in thousands, except per share data): | ||||||||||||||||
Three Months Ended, | Six Months Ended, | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Numerator: | ||||||||||||||||
Net loss | $ | (17,111 | ) | $ | (6,200 | ) | $ | (31,073 | ) | $ | (9,342 | ) | ||||
Denominator: | ||||||||||||||||
Weighted–average shares outstanding | 27,108 | 12,892 | 20,385 | 12,873 | ||||||||||||
Less: weighted average shares subject to repurchase | (1,080 | ) | (3,200 | ) | (1,795 | ) | (3,429 | ) | ||||||||
Weighted–average shares used to compute basic and diluted net | 26,028 | 9,692 | 18,590 | 9,444 | ||||||||||||
loss per share | ||||||||||||||||
Basic and diluted net loss per share | $ | (0.66 | ) | $ | (0.64 | ) | $ | (1.67 | ) | $ | (0.99 | ) | ||||
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 the three and six months ended June 30, 2014 and 2013, 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) | ||||||||||||||||
As of | As of | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Convertible preferred stock | — | 43,636,635 | ||||||||||||||
Options to purchase common stock and unvested restricted stock | 16,728,861 | 15,575,707 | ||||||||||||||
Total | 16,728,861 | 59,212,342 | ||||||||||||||
Description_of_Business_and_Si1
Description of Business and Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2014 | |
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 (“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 unaudited condensed consolidated financial statements as of June 30, 2014 and for the three and six months ended June 30, 2014 and June 30, 2013 have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial statements and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”), and include the accounts of our wholly owned subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation. | |
Certain information and footnote disclosures in this Form 10-Q normally included in annual financial statements prepared in accordance with U.S. GAAP and pursuant to the rules and regulations of the SEC have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, the unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary for a fair presentation of our balance sheet as of June 30, 2014, our operating results for the three and six months ended June 30, 2014 and June 30, 2013, and our cash flows for the six months ended June 30, 2014 and June 30, 2013. Operating results for the three and six months ended June 30, 2014 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2014. The condensed consolidated balance sheet as of December 31, 2013 has been derived from the audited consolidated financial statements as of that date but does not include all the footnotes required by U.S. GAAP for complete financial statements. | |
The accompanying condensed consolidated financial statements and related financial information should be read in conjunction with our audited financial statements and related notes thereto for the year ended December 31, 2013, included in our prospectus filed with the SEC on June 12, 2014 pursuant to Rule 424(b) under the Securities Act of 1933, as amended (the “Securities Act”). | |
On May 27, 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-to-five basis; (iii) the exercise price of each outstanding option to purchase common stock was proportionately increased on a seven-to-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 these condensed consolidated financial statements and notes to the condensed consolidated financial statements have been retroactively adjusted to reflect this reverse stock split. | |
Segments | ' |
Segments | |
We have one reportable segment. | |
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 $93,000 and $86,000 for the three months ended June 30, 2014 and 2013, respectively, and approximately $169,000 and $172,000 for the six months ended June 30, 2014 and 2013, respectively, in other expense—net in our condensed consolidated statements of operations. | |
Use of Estimates | ' |
Use of Estimates | |
The preparation of condensed 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. | |
Revenue Recognition | ' |
Revenue Recognition | |
We derive revenue principally from software-related arrangements consisting of perpetual software licenses, post-contract customer support for such licenses (“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 and 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 the customer a license key to download the 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 (“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 and if evidence of the fair value of one or more undelivered elements does not exist, the revenue is deferred and recognized when delivery of those elements occurs, 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 statement 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 (“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 statement 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 statement 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. Approximately $1.4 million and $5.9 million of perpetual license revenue in three months ended June 30, 2014 and 2013, respectively, and approximately $2.9 million and $13.4 million of perpetual license revenue in the six months ended June 30, 2014 and 2013, respectively, related to sales made prior to January 1, 2013. Approximately $4.4 million and $7.3 million deferred revenue as of June 30, 2014 and December 31, 2013, related to 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 its PCS and professional services to each respective revenue caption using its 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 statement of operations. | |
Sales made through resellers are recognized as revenue upon sell-through to end customers. | |
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 June 30, 2014 and December 31, 2013 cash and cash equivalents consist of cash deposited with banks and money market funds for which their cost approximates their fair value. | |
Comprehensive Loss | ' |
Comprehensive Loss | |
Comprehensive loss includes all changes in equity (net assets) during a period from non-owner sources. For the three and six months ended June 30, 2014 and 2013, there were no differences between net loss and comprehensive loss. | |
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, and stock options are considered to be potentially dilutive securities. Because we have reported a net loss for the three and six months ended June 30, 2014 and 2013, 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. | |
Concentrations of Credit Risk | ' |
Concentrations of Credit Risk | |
Financial instruments that potentially subject us to a concentration of credit risk consist of cash and money market funds. Substantially all of our cash is held by one financial institution that management believes is of high-credit quality. Such deposits exceed federally insured limits. Substantially all of our money market funds are held in a single fund that is 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. As of June 30, 2014 and December 31, 2013 we have an allowance for doubtful accounts of $492,000. | |
One reseller accounted for 26% of total revenue (2% as an end customer) and 18% of total revenue (0% as an end customer) for the three months ended June 30, 2014 and 2013, respectively, and for 25% of total revenue (1% as an end customer) and 18% of total revenue (0% as an end customer) for the six months ended June 30, 2014 and 2013, respectively. The same reseller accounted for 26% and 11% of net accounts receivable as of June 30, 2014 and December 31, 2013, respectively. | |
A separate reseller accounted for 13% of our net accounts receivable as of December 31, 2013. | |
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. | |
Inventory | ' |
Inventory | |
We have appliances (industry standard hardware servers available from multiple vendors) that are available for customers to purchase, on which we will preinstall our software prior to shipment. Inventory is stated at the lower of cost or net realizable value. We value our inventory using the first-in, first-out method. Appropriate consideration is given to obsolescence, excessive levels, deterioration and other factors in evaluating net realizable value—such adjustments were not material for any period presented. The entire inventory is comprised of finished goods. As of June 30, 2014 and as of December 31, 2013, we had inventory of $657,000 and $665,000, respectively, which is included in prepaid expenses and other current assets in the consolidated balance sheets. | |
Software Development Costs | ' |
Software Development Costs | |
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 SaaS offering to the extent it will not be sold, leased, or otherwise marketed as a separate product. Costs related to preliminary project activities and post-implementation activities are expensed as incurred. We did not capitalize any costs during the three and six months ended June 30, 2014 and 2013, as all software developed for our cloud offering will be sold as part of our perpetual or term licenses. | |
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 lives, 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 observed no impairment indicators during the three and six months ended June 30, 2014 and 2013. | |
We also review our indefinite lived intangible assets for impairment. We have determined that our intangible assets have not been impaired during the three and six months ended June 30, 2014 or the corresponding periods in 2013. | |
Impairment of Long-Lived Assets | ' |
Impairment of Long-Lived Assets | |
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 (“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 for the three and six months ended June 30, 2014 and the corresponding periods in 2013 based on its historical experience for annual grant years where the majority of the vesting terms have been satisfied. We recognize compensation costs for awards with a service and performance condition based on the graded vesting method. We recognize compensation costs, net of forfeitures, for stock options or other awards with only service conditions on a straight-line basis over the requisite service period of the award, which is generally the vesting term. | |
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 for the three months ended June 30, 2014 and 2013 was $59,000 and $138,000, respectively. Advertising expense for the six months ended June 30, 2014 and 2013 was $206,000 and $221,000, 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 (“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 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 obligation 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 would require significantly expanded disclosures about revenue recognition. Provisions of this new standard are effective for annual reporting periods (including interim reporting periods within those annual periods) beginning after December 15, 2016. Early application is not permitted. Entities have the option of using either a full retrospective or a modified retrospective approach to adopt this new guidance. We are currently evaluating the potential effect on our consolidated financial statements from adoption of this standard. |
Fair_Value_Measurement_Tables
Fair Value Measurement (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Schedule of Fair Value of Financial Instruments Measured on Recurring Basis | ' | |||||||||||||||
Our financial instruments measured at fair value on a recurring basis as of June 30, 2014 and December 31, 2013 were as follows (in thousands): | ||||||||||||||||
As of June 30, 2014 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Money market funds | $ | 137,401 | $ | — | $ | — | $ | 137,401 | ||||||||
Total | $ | 137,401 | $ | — | $ | — | $ | 137,401 | ||||||||
As of December 31, 2013 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Money market funds | $ | 52,901 | $ | — | $ | — | $ | 52,901 | ||||||||
Total | $ | 52,901 | $ | — | $ | — | $ | 52,901 | ||||||||
Acquisition_Tables
Acquisition (Tables) | 6 Months Ended | ||||
Jun. 30, 2014 | |||||
Components of Consideration Paid on Acquisition | ' | ||||
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) | $ | 1,670 | |||
Holdback common stock (43,612 shares) | 312 | ||||
Total consideration | $ | 1,982 | |||
Components of Purchase Price | ' | ||||
The purchase price was allocated as follows (in thousands): | |||||
Technology – intangible asset | $ | 1,600 | |||
Goodwill | 676 | ||||
Liabilities assumed | (294 | ) | |||
Net assets acquired | $ | 1,982 | |||
Goodwill_and_Intangibles_Table
Goodwill and Intangibles (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Summary of Estimated Useful Lives of Intangible Assets Subject to Amortization | ' | |||||||||||||||
Our intangible assets are subject to amortization on a straight-line basis over their estimated useful lives as follows: | ||||||||||||||||
Estimated Life | Weighted Average Remaining Life as of June 30, 2014 | |||||||||||||||
(In Years) | ||||||||||||||||
Noncompete covenants | 2 | 0.2 | ||||||||||||||
Technology | 5-Mar | 1.3 | ||||||||||||||
Schedule of Carrying Values of Intangible Assets | ' | |||||||||||||||
The following table reflects intangible assets subject to amortization as of June 30, 2014 and as of December 31, 2013 (in thousands): | ||||||||||||||||
30-Jun-14 | ||||||||||||||||
Gross Carrying | Accumulated | Net Book | ||||||||||||||
Amount | Amortization | Impairment | Value | |||||||||||||
In-process research and development | $ | 3,925 | $ | — | $ | (3,925 | ) | $ | — | |||||||
Noncompete covenants | 1,042 | (677 | ) | — | 365 | |||||||||||
Technology | 2,429 | (537 | ) | — | 1,892 | |||||||||||
Total | $ | 7,396 | $ | (1,214 | ) | $ | (3,925 | ) | $ | 2,257 | ||||||
31-Dec-13 | ||||||||||||||||
Gross Carrying | Accumulated | Net Book | ||||||||||||||
Amount | Amortization | Impairment | Value | |||||||||||||
In-process research and development | $ | 3,925 | $ | — | $ | (3,925 | ) | $ | — | |||||||
Noncompete covenants | 1,042 | (260 | ) | — | 782 | |||||||||||
Technology | 829 | (300 | ) | — | 529 | |||||||||||
Total | $ | 5,796 | $ | (560 | ) | $ | (3,925 | ) | $ | 1,311 | ||||||
Schedule of Estimated Intangible Assets Amortization Expense | ' | |||||||||||||||
Estimated remaining intangible assets amortization expense for the next five fiscal years and thereafter is as follows (in thousands): | ||||||||||||||||
Year | ||||||||||||||||
2014 (remaining) | $ | 703 | ||||||||||||||
2015 | 654 | |||||||||||||||
2016 | 400 | |||||||||||||||
2017 | 400 | |||||||||||||||
2018 | 100 | |||||||||||||||
Total | $ | 2,257 | ||||||||||||||
Schedule of Carrying Value of Goodwill | ' | |||||||||||||||
At June 30, 2014 and December 31, 2013, the carrying value of goodwill was as follows (in thousands): | ||||||||||||||||
Balance , December 31, 2013 | $ | 4,799 | ||||||||||||||
Additions | 676 | |||||||||||||||
Balance, June 30, 2014 | $ | 5,475 | ||||||||||||||
Significant_Balance_Sheet_Comp1
Significant Balance Sheet Components (Tables) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Schedule of Property and Equipment | ' | |||||||
Property and Equipment—Property and equipment at June 30, 2014 and December 31, 2013 consisted of the following (in thousands): | ||||||||
30-Jun-14 | 31-Dec-13 | |||||||
Computers and appliances | $ | 5,199 | $ | 4,265 | ||||
Purchased software | 1,235 | 856 | ||||||
Furniture and fixtures | 177 | 176 | ||||||
Leasehold improvements | 696 | 689 | ||||||
Total property and equipment | 7,307 | 5,986 | ||||||
Accumulated depreciation and amortization | (3,902 | ) | (2,891 | ) | ||||
Total property and equipment—net | $ | 3,405 | $ | 3,095 | ||||
Schedule of Accrued Expenses | ' | |||||||
Accrued Expenses—Accrued expenses at June 30, 2014 and December 31, 2013 consisted of the following (in thousands): | ||||||||
30-Jun-14 | 31-Dec-13 | |||||||
Accrued commissions | $ | 5,094 | $ | 6,703 | ||||
Accrued payroll and related expenses | 3,579 | 3,852 | ||||||
Accrued vacation | 3,312 | 2,088 | ||||||
Liability for early exercised stock options (Note 9) | 727 | 938 | ||||||
Other accrued liabilities | 2,359 | 1,217 | ||||||
Total accrued expenses | $ | 15,071 | $ | 14,798 | ||||
Schedule of Current and Non-Current Deferred Revenue | ' | |||||||
Deferred Revenue—Current and non-current deferred revenue at June 30, 2014 and December 31, 2013 consisted of the following (in thousands): | ||||||||
30-Jun-14 | 31-Dec-13 | |||||||
Perpetual license | $ | 6,230 | $ | 8,589 | ||||
Subscription | 14,682 | 10,600 | ||||||
Software support | 23,544 | 19,868 | ||||||
Professional services | 1,854 | 1,694 | ||||||
Total current and noncurrent deferred revenue | $ | 46,310 | $ | 40,751 | ||||
Preferred_Stock_Tables
Preferred Stock (Tables) | 6 Months Ended | |||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||
Summary of Preferred Stock | ' | |||||||||||||||||||
The following table summarizes information regarding our convertible preferred stock by class immediately prior to the IPO: | ||||||||||||||||||||
Shares | ||||||||||||||||||||
Authorized | Outstanding | Per share | Aggregate | Carrying | ||||||||||||||||
liquidation | liquidation | value | ||||||||||||||||||
preference | preference | |||||||||||||||||||
Series A | 18,604,666 | 13,289,037 | $ | 0.7 | $ | 9,302 | $ | 9,222 | ||||||||||||
Series B | 16,225,758 | 11,589,825 | 0.95 | 10,977 | 10,929 | |||||||||||||||
Series C | 13,281,250 | 9,486,602 | 1.79 | 17,000 | 16,860 | |||||||||||||||
Series D | 6,550,505 | 4,678,927 | 4.27 | 20,000 | 19,945 | |||||||||||||||
Series E | 6,429,159 | 4,592,244 | 9.96 | 45,716 | 45,596 | |||||||||||||||
Series F | 8,414,493 | 6,010,340 | 9.96 | 59,833 | 59,701 | |||||||||||||||
Total | 69,505,831 | 49,646,975 | $ | 162,828 | $ | 162,253 | ||||||||||||||
Common_Stock_Tables
Common Stock (Tables) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Schedule of Common Stock Reserved for Issuance | ' | |||||||
As of June 30, 2014 and December 31, 2013, we reserved shares of common stock for issuance as follows: | ||||||||
As of | As of | |||||||
June 30, | December 31, | |||||||
2014 | 2013 | |||||||
Conversion of preferred stock | — | 49,446,072 | ||||||
Options outstanding | 16,289,915 | 13,330,882 | ||||||
Unvested restricted stock outstanding | 153,916 | 1,918,620 | ||||||
Options available for future grant under stock option plan | 8,165,979 | 2,085,338 | ||||||
Available for grant under employee stock purchase plan | 2,071,428 | — | ||||||
Total | 26,681,238 | 66,780,912 | ||||||
Share_Based_Awards_Tables
Share Based Awards (Tables) | 6 Months Ended | |||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||
Schedule of Restricted Stock Activity | ' | |||||||||||||||||||
Restricted stock activity for the six months ended June 30, 2014 was as follows: | ||||||||||||||||||||
Restricted Stock | ||||||||||||||||||||
Time-based | Time-and-performance based | Total | ||||||||||||||||||
shares | shares | shares | ||||||||||||||||||
Unvested, December 31, 2013 | 886,718 | 1,031,902 | 1,918,620 | |||||||||||||||||
Granted | 16,294 | — | 16,294 | |||||||||||||||||
Vested | (457,828 | ) | (559,578 | ) | (1,017,406 | ) | ||||||||||||||
Cancelled/Forfeited | (350,440 | ) | (413,152 | ) | (763,592 | ) | ||||||||||||||
Unvested, June 30, 2014 | 94,744 | 59,172 | 153,916 | |||||||||||||||||
Schedule of Stock Option Activity | ' | |||||||||||||||||||
Stock Options | ||||||||||||||||||||
Stock option activity under the 2008 Plan and 2014 Plans for the six months ended June 30, 2014 was as follows: | ||||||||||||||||||||
Options Outstanding | ||||||||||||||||||||
Number of | Number of | Weighted- | Weighted- | Aggregate | ||||||||||||||||
Shares | Shares | Average | Average | Intrinsic | ||||||||||||||||
Available for | Exercise Price | Remaining | Value | |||||||||||||||||
Issuance | Contractual | (In thousands) | ||||||||||||||||||
Term (Years) | ||||||||||||||||||||
Balance—December 31, 2013 | 2,085,338 | 13,330,882 | $ | 2.9 | 8.38 | $ | 38,339 | |||||||||||||
Authorized | 9,904,961 | |||||||||||||||||||
Granted | (4,397,027 | ) | 4,397,027 | 6.39 | ||||||||||||||||
Exercised(1) | — | (907,028 | ) | 2.36 | ||||||||||||||||
Canceled | 530,966 | (530,966 | ) | 3.94 | ||||||||||||||||
Repurchased | 41,741 | |||||||||||||||||||
Balance—June 30, 2014 | 8,165,979 | 16,289,915 | $ | 3.84 | 8.38 | $ | 92,606 | |||||||||||||
Vested and exercisable—December 31, 2013 | 4,864,864 | $ | 19,378 | |||||||||||||||||
Vested and expected to vest(2)— | 12,244,397 | $ | 35,615 | |||||||||||||||||
December 31, 2013 | ||||||||||||||||||||
Vested and exercisable—June 30, 2014 | 5,589,016 | $ | 41,755 | |||||||||||||||||
Vested and expected to vest(2)—June 30, | 14,955,442 | $ | 85,849 | |||||||||||||||||
2014 | ||||||||||||||||||||
-1 | Includes early exercises of 42,772 for six months ended June 30, 2014. | |||||||||||||||||||
-2 | Options expected to vest reflect an estimated forfeiture rate. | |||||||||||||||||||
Schedule of Stock-based Compensation Expense Recognized | ' | |||||||||||||||||||
Our stock-based compensation expense was recorded in the following cost and expense categories (in thousands): | ||||||||||||||||||||
Three Months Ended, | Six Months Ended, | |||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||
Contra-revenue | $ | 98 | $ | 13 | $ | 123 | $ | 36 | ||||||||||||
Cost of revenue | 328 | 70 | 429 | 151 | ||||||||||||||||
Research and development | 1,687 | 1,383 | 2,935 | 2,975 | ||||||||||||||||
Sales and marketing | 1,498 | 466 | 2,114 | 892 | ||||||||||||||||
General and administrative | 895 | 218 | 1,331 | 395 | ||||||||||||||||
Total | $ | 4,506 | $ | 2,150 | $ | 6,932 | $ | 4,449 | ||||||||||||
During the three months ended June 30, 2014, we recorded $1.3 million in stock-based compensation expense related to employee stock options with vesting commencing on our IPO date. We accounted for these options using the graded vesting method. | ||||||||||||||||||||
Schedule of Assumptions Used for Calculating the Fair Value of Employee Option Grants | ' | |||||||||||||||||||
We used Black-Scholes Model to estimate fair value of our stock options granted with the following weighted-average assumptions: | ||||||||||||||||||||
Three Months Ended, | Six Months Ended, | |||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||
Expected dividend yield | — | — | — | — | ||||||||||||||||
Risk-free interest rate | 1.8% - 2.6% | 1.5% - 2.4% | 1.7% - 2.7% | 1.0% - 2.4% | ||||||||||||||||
Expected volatility | 54% - 55% | 52% - 53% | 54% - 56% | 52% - 53% | ||||||||||||||||
Expected life (in years) | 5.8 - 10.0 | 5.9 - 10.0 | 5.6 - 10.0 | 5.9 - 10.0 | ||||||||||||||||
Schedule of Assumptions Used for Calculating the Fair Value of Employee stock purchase plans | ' | |||||||||||||||||||
We used Black-Sholes model to estimate fair value of our employee stock purchase plan awards with the following weighted-average assumptions: | ||||||||||||||||||||
Three Months Ended, | ||||||||||||||||||||
June 30, | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Expected dividend yield | — | — | ||||||||||||||||||
Risk-free interest rate | 0.1% - 0.5% | — | ||||||||||||||||||
Expected volatility | 47% - 49% | — | ||||||||||||||||||
Expected life (in years) | 0.7 - 2.2 | — | ||||||||||||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 6 Months Ended | |||
Jun. 30, 2014 | ||||
Schedule of Future Minimum Lease Payments | ' | |||
The aggregate future minimum lease payments under the agreements are as follows (in thousands): | ||||
Year | ||||
2014 (remaining) | $ | 865 | ||
2015 | 1,791 | |||
2016 | 1,391 | |||
2017 | 699 | |||
2018 | — | |||
$ | 4,746 | |||
Segment_Information_Tables
Segment Information (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Schedule of Revenue by Geographic Region | ' | |||||||||||||||
Revenue by geographic region based on the billing address was as follows: | ||||||||||||||||
Three Months Ended, | Six Months Ended, | |||||||||||||||
June 30, | June 30, | |||||||||||||||
(in thousands, except percentages) | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Revenue | ||||||||||||||||
United States | $ | 17,621 | $ | 13,545 | $ | 33,984 | $ | 27,153 | ||||||||
International | 13,846 | 11,610 | 25,696 | 23,823 | ||||||||||||
Total | $ | 31,467 | $ | 25,155 | $ | 59,680 | $ | 50,976 | ||||||||
Net_Loss_Per_Share_Tables
Net Loss Per Share (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Schedule of Basic and Diluted Net Loss per Share | ' | |||||||||||||||
The following table sets forth the computation of basic and diluted net loss per share for the three and six months ended June 30, 2014 and corresponding periods for 2013 (in thousands, except per share data): | ||||||||||||||||
Three Months Ended, | Six Months Ended, | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Numerator: | ||||||||||||||||
Net loss | $ | (17,111 | ) | $ | (6,200 | ) | $ | (31,073 | ) | $ | (9,342 | ) | ||||
Denominator: | ||||||||||||||||
Weighted–average shares outstanding | 27,108 | 12,892 | 20,385 | 12,873 | ||||||||||||
Less: weighted average shares subject to repurchase | (1,080 | ) | (3,200 | ) | (1,795 | ) | (3,429 | ) | ||||||||
Weighted–average shares used to compute basic and diluted net | 26,028 | 9,692 | 18,590 | 9,444 | ||||||||||||
loss per share | ||||||||||||||||
Basic and diluted net loss per share | $ | (0.66 | ) | $ | (0.64 | ) | $ | (1.67 | ) | $ | (0.99 | ) | ||||
Schedule of Antidilutive Securities Excluded from Net Loss per Share Computation | ' | |||||||||||||||
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) | ||||||||||||||||
As of | As of | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Convertible preferred stock | — | 43,636,635 | ||||||||||||||
Options to purchase common stock and unvested restricted stock | 16,728,861 | 15,575,707 | ||||||||||||||
Total | 16,728,861 | 59,212,342 | ||||||||||||||
Description_of_Business_and_Si2
Description of Business and Significant Accounting Policies - Additional Information (Details) (USD $) | 0 Months Ended | 1 Months Ended | 3 Months Ended | 6 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | 1 Months Ended | |||||||||||||||
27-May-14 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | |
Segment | Computers and Equipment and Software | Furniture and Fixtures | Maximum | Minimum | Appliance Revenue | As Reseller | As Reseller | As Reseller | As Reseller | As Reseller | As Reseller | As an end customer | As an end customer | As an end customer | As an end customer | Reseller Two | Non VSOE | Non VSOE | IPO | IPO | |||||||
Maximum | Sales Revenue, Net | Sales Revenue, Net | Sales Revenue, Net | Sales Revenue, Net | Net Accounts Receivable | Net Accounts Receivable | Sales Revenue, Net | Sales Revenue, Net | Sales Revenue, Net | Sales Revenue, Net | Net Accounts Receivable | Software License Arrangement | Software License Arrangement | Overallotment | |||||||||||||
Description Of Business And Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Entity incorporation state | ' | ' | ' | ' | 'Delaware | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Entity incorporation date | ' | ' | ' | ' | 1-Jul-07 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12,777,777 | 1,666,666 |
Common stock issued price per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $9 | ' |
Net proceeds from sale of shares of common stock | ' | ' | ' | ' | $106,950,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $107,000,000 | ' |
Offering expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,100,000 | ' |
Conversion of outstanding preferred stock into common stock, shares | ' | 49,646,975 | ' | ' | 49,646,975 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reverse stock split | 0.7142 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Description of reverse stock split | ' | ' | ' | ' | 'On May 27, 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-to-five basis; (iii) the exercise price of each outstanding option to purchase common stock was proportionately increased on a seven-to-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 these condensed consolidated financial statements and notes to the condensed consolidated financial statements have been retroactively adjusted to reflect this reverse stock split. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of reportable segment | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Foreign currency loss recognized in other expense - net | ' | ' | -93,000 | -86,000 | -169,000 | -172,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Perpetual license revenue related to sales made prior to VSOE establishment | ' | ' | 1,400,000 | 5,900,000 | 2,900,000 | 13,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred revenue, related to perpetual license sales prior to VSOE establishment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,400,000 | 7,300,000 | ' | ' |
Accounts receivable allowances | ' | 492,000 | 492,000 | ' | 492,000 | ' | 492,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Concentration risk, percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | 26.00% | 18.00% | 25.00% | 18.00% | 26.00% | 11.00% | 2.00% | 0.00% | 1.00% | 0.00% | 13.00% | ' | ' | ' | ' |
Inventory | ' | 657,000 | 657,000 | ' | 657,000 | ' | 665,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property plant and equipment useful life | ' | ' | ' | ' | ' | ' | ' | '3 years | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated useful life, purchased intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Asset impairment charges | ' | ' | 0 | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Advertising costs | ' | ' | $59,000 | $138,000 | $206,000 | $221,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair_Value_Measurement_Schedul
Fair Value Measurement - Schedule of Fair Value of Financial Instruments Measured on Recurring Basis (Details) (Fair Value, Measurements, Recurring, USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Assets fair value | $137,401 | $52,901 |
Level 1 | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Assets fair value | 137,401 | 52,901 |
Money Market Funds | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Assets fair value | 137,401 | 52,901 |
Money Market Funds | Level 1 | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Assets fair value | $137,401 | $52,901 |
Acquisition_Additional_Informa
Acquisition - Additional Information (Details) (USD $) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Business Acquisition [Line Items] | ' | ' | ' | ' | ' |
Holdback based on standard representations and warranties, shares | 43,612 | ' | ' | ' | ' |
Amortization of intangible assets | ' | $365,000 | $52,000 | $417,000 | $104,000 |
Averail Corporation | ' | ' | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' | ' | ' |
Number of shares issued on acquisition | 276,466 | ' | ' | ' | ' |
Holdback based on standard representations and warranties, shares | 43,612 | ' | ' | ' | ' |
Duration of shares held in escrow | '18 months | ' | ' | ' | ' |
Consideration paid on acquisition | 1,982,000 | ' | ' | ' | ' |
Aggregate value of securities issued to investors | 1,500,000 | ' | ' | ' | ' |
Transaction costs on acquisition | 167,000 | ' | ' | ' | ' |
Estimated useful life, purchased intangible assets | ' | ' | ' | '4 years | ' |
Amortization of intangible assets | ' | $100,000 | ' | ' | ' |
Averail Corporation | Two Investors | ' | ' | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' | ' | ' |
Number of shares issued in acquisition to related parties | 206,463 | ' | ' | ' | ' |
Acquisition_Components_of_Cons
Acquisition - Components of Consideration Paid on Acquisition (Details) (Averail Corporation, USD $) | 1 Months Ended |
In Thousands, unless otherwise specified | Apr. 30, 2014 |
Averail Corporation | ' |
Business Acquisition [Line Items] | ' |
Common stock issued (232,854 shares) | $1,670 |
Holdback common stock (43,612 shares) | 312 |
Total consideration | $1,982 |
Acquisition_Components_of_Cons1
Acquisition - Components of Consideration Paid on Acquisition (Parenthetical) (Details) | 1 Months Ended |
Apr. 30, 2014 | |
Business Acquisition [Line Items] | ' |
Holdback based on standard representations and warranties, shares | 43,612 |
Averail Corporation | ' |
Business Acquisition [Line Items] | ' |
Holdback based on standard representations and warranties, shares | 43,612 |
Averail Corporation | Common Stock | ' |
Business Acquisition [Line Items] | ' |
Holdback based on standard representations and warranties, shares | 232,854 |
Acquisition_Components_of_Purc
Acquisition - Components of Purchase Price (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Apr. 30, 2014 |
In Thousands, unless otherwise specified | Averail Corporation | ||
Business Acquisition [Line Items] | ' | ' | ' |
Technology – intangible asset | ' | ' | $1,600 |
Goodwill | 5,475 | 4,799 | 676 |
Liabilities assumed | ' | ' | -294 |
Net assets acquired | ' | ' | $1,982 |
Goodwill_and_Intangibles_Summa
Goodwill and Intangibles - Summary of Estimated Useful Lives of Intangible Assets Subject to Amortization (Details) | 6 Months Ended |
Jun. 30, 2014 | |
Minimum | ' |
Finite Lived Intangible Assets [Line Items] | ' |
Estimated Life, Intangible Assets | '3 years |
Maximum | ' |
Finite Lived Intangible Assets [Line Items] | ' |
Estimated Life, Intangible Assets | '5 years |
Noncompete Covenants | ' |
Finite Lived Intangible Assets [Line Items] | ' |
Estimated Life, Intangible Assets | '2 years |
Weighted Average Remaining Life, Intangible Assets | '2 months 12 days |
Technology | ' |
Finite Lived Intangible Assets [Line Items] | ' |
Weighted Average Remaining Life, Intangible Assets | '1 year 3 months 18 days |
Technology | Minimum | ' |
Finite Lived Intangible Assets [Line Items] | ' |
Estimated Life, Intangible Assets | '3 years |
Technology | Maximum | ' |
Finite Lived Intangible Assets [Line Items] | ' |
Estimated Life, Intangible Assets | '5 years |
Goodwill_and_Intangibles_Sched
Goodwill and Intangibles - Schedule of Carrying Values of Intangible Assets (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Finite Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | $7,396 | $5,796 |
Accumulated Amortization | -1,214 | -560 |
Impairment | -3,925 | -3,925 |
Net Book Value | 2,257 | 1,311 |
In-Process Research and Development | ' | ' |
Finite Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | 3,925 | 3,925 |
Impairment | -3,925 | -3,925 |
Noncompete Covenants | ' | ' |
Finite Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | 1,042 | 1,042 |
Accumulated Amortization | -677 | -260 |
Net Book Value | 365 | 782 |
Technology | ' | ' |
Finite Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | 2,429 | 829 |
Accumulated Amortization | -537 | -300 |
Net Book Value | $1,892 | $529 |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets - Additional Information (Details) (USD $) | 3 Months Ended | 6 Months Ended | 3 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Sep. 30, 2013 | |
In-Process R&D Project | |||||
Finite Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' |
Asset impairment charges | $0 | $0 | $0 | $0 | $3,925,000 |
Goodwill_and_Intangibles_Sched1
Goodwill and Intangibles - Schedule of Estimated Intangible Assets Amortization Expense (Details) (USD $) | Jun. 30, 2014 |
In Thousands, unless otherwise specified | |
Finite Lived Intangible Assets [Line Items] | ' |
2014 (remaining) | $703 |
2015 | 654 |
2016 | 400 |
2017 | 400 |
2018 | 100 |
Total | $2,257 |
Goodwill_and_Intangibles_Sched2
Goodwill and Intangibles - Schedule of Carrying Value of Goodwill (Details) (USD $) | 6 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 |
Goodwill [Roll Forward] | ' |
Beginning Balance | $4,799 |
Additions | 676 |
Ending Balance | $5,475 |
Significant_Balance_Sheet_Comp2
Significant Balance Sheet Components - Schedule of Property and Equipment (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property Plant And Equipment [Line Items] | ' | ' |
Property and equipment, gross | $7,307 | $5,986 |
Accumulated depreciation and amortization | -3,902 | -2,891 |
Total property and equipment—net | 3,405 | 3,095 |
Computers and appliances | ' | ' |
Property Plant And Equipment [Line Items] | ' | ' |
Property and equipment, gross | 5,199 | 4,265 |
Purchased software | ' | ' |
Property Plant And Equipment [Line Items] | ' | ' |
Property and equipment, gross | 1,235 | 856 |
Furniture and Fixtures | ' | ' |
Property Plant And Equipment [Line Items] | ' | ' |
Property and equipment, gross | 177 | 176 |
Leasehold improvements | ' | ' |
Property Plant And Equipment [Line Items] | ' | ' |
Property and equipment, gross | $696 | $689 |
Significant_Balance_Sheet_Comp3
Significant Balance Sheet Components - Schedule of Accrued Expenses (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule Of Accrued Expenses [Line Items] | ' | ' |
Accrued commissions | $5,094 | $6,703 |
Accrued payroll and related expenses | 3,579 | 3,852 |
Accrued vacation | 3,312 | 2,088 |
Liability for early exercised stock options | 727 | 938 |
Other accrued liabilities | 2,359 | 1,217 |
Total accrued expenses | $15,071 | $14,798 |
Significant_Balance_Sheet_Comp4
Significant Balance Sheet Components - Schedule of Current and Non-Current Deferred Revenue (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred Revenue Arrangement [Line Items] | ' | ' |
Current and noncurrent deferred revenue | $46,310 | $40,751 |
Perpetual license | ' | ' |
Deferred Revenue Arrangement [Line Items] | ' | ' |
Current and noncurrent deferred revenue | 6,230 | 8,589 |
Subscription | ' | ' |
Deferred Revenue Arrangement [Line Items] | ' | ' |
Current and noncurrent deferred revenue | 14,682 | 10,600 |
Software support | ' | ' |
Deferred Revenue Arrangement [Line Items] | ' | ' |
Current and noncurrent deferred revenue | 23,544 | 19,868 |
Professional services | ' | ' |
Deferred Revenue Arrangement [Line Items] | ' | ' |
Current and noncurrent deferred revenue | $1,854 | $1,694 |
Significant_Balance_Sheet_Comp5
Significant Balance Sheet Components - Additional Information (Details) (Non VSOE, Software License Arrangement, USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Non VSOE | Software License Arrangement | ' | ' |
Deferred Revenue Arrangement [Line Items] | ' | ' |
Deferred revenue, related to perpetual license sales prior to VSOE establishment | $4.40 | $7.30 |
Line_of_Credit_Additional_Info
Line of Credit - Additional Information (Details) (USD $) | 1 Months Ended | 12 Months Ended | |
Aug. 31, 2012 | Dec. 31, 2013 | Jun. 30, 2014 | |
Line Of Credit Facility [Line Items] | ' | ' | ' |
Revolving line of credit, maximum borrowing capacity | $10,000,000 | $20,000,000 | ' |
Revolving line of credit termination date | '2014-08 | '2015-08 | ' |
Revolving line of credit, fixed rate | 4.25% | ' | ' |
Revolving line of credit, spread over applicable rate on default | 5.00% | ' | ' |
Quick ratio | ' | 1.15 | ' |
Revolving line of credit amount outstanding | ' | $4,300,000 | $0 |
Prime Rate | ' | ' | ' |
Line Of Credit Facility [Line Items] | ' | ' | ' |
Revolving line of credit, basis spread over variable rate | 1.00% | ' | ' |
Preferred_Stock_Additional_Inf
Preferred Stock - Additional Information (Details) (USD $) | 1 Months Ended | 6 Months Ended | 1 Months Ended | ||||||||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 11, 2014 | Dec. 31, 2013 | Jun. 11, 2014 | Jun. 11, 2014 | Jun. 11, 2014 | Jun. 11, 2014 | Jun. 11, 2014 | Jan. 31, 2014 | Jun. 11, 2014 |
Series A Preferred Stock | Series B Preferred Stock | Series C Preferred Stock | Series D Preferred Stock | Series E Preferred Stock | Series F Preferred Stock | Series F Preferred Stock | |||||
Temporary Equity [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Conversion of preferred stock for initial public offering, Shares | 49,646,975 | 49,646,975 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible preferred stock, shares authorized | 10,000,000 | 10,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock, share issued | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock, share outstanding | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible preferred stock, shares authorized | 10,000,000 | 10,000,000 | 69,505,831 | 69,505,831 | 18,604,666 | 16,225,758 | 13,281,250 | 6,550,505 | 6,429,159 | ' | 8,414,493 |
Issuance of convertible preferred stock, shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200,903 | ' |
Net cash proceeds from convertible preferred stock | ' | $1,994 | ' | ' | ' | ' | ' | ' | ' | $2,000 | ' |
Preferred_Stock_Summary_of_Pre
Preferred Stock - Summary of Preferred Stock (Details) (USD $) | Jun. 30, 2014 | Jun. 11, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | |||
Temporary Equity [Line Items] | ' | ' | ' |
Convertible preferred stock, shares authorized | 10,000,000 | 69,505,831 | 69,505,831 |
Convertible preferred stock, shares outstanding | 0 | 49,646,975 | 49,446,072 |
Convertible preferred stock, aggregate liquidation preference | ' | $162,828 | ' |
Convertible preferred stock, carrying value | ' | 162,253 | 160,259 |
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_Additional_Inform
Common Stock - Additional Information (Details) (USD $) | 6 Months Ended | |
Jun. 30, 2014 | Dec. 31, 2013 | |
Class Of Stock [Line Items] | ' | ' |
Common stock, shares authorized | 300,000,000 | 111,390,000 |
Common stock, par value | $0.00 | $0.00 |
Common stock, voting rights | 'Each share of common stock is entitled to one vote. | ' |
Common_Stock_Schedule_of_Commo
Common Stock - Schedule of Common Stock Reserved for Issuance (Details) | Jun. 30, 2014 | Dec. 31, 2013 |
Class Of Stock [Line Items] | ' | ' |
Conversion of preferred stock | ' | 49,446,072 |
Options outstanding | 16,289,915 | 13,330,882 |
Unvested restricted stock outstanding | 153,916 | 1,918,620 |
Options available for future grant under stock option plan | 8,165,979 | 2,085,338 |
Available for grant under employee stock purchase plan | 2,071,428 | ' |
Total | 26,681,238 | 66,780,912 |
Share_Based_Awards_Additional_
Share Based Awards - Additional Information (Details) (USD $) | 3 Months Ended | 6 Months Ended | 6 Months Ended | 12 Months Ended | 3 Months Ended | 6 Months Ended | 6 Months Ended | 6 Months Ended | 3 Months Ended | ||||||||||
Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | |
Restricted Stock | Employee Stock Purchase Plan | Stock Options | Stock Options | Stockbased compensation expense for employees options with vesting commencing on IPO date | 2008 Stock Plan | 2008 Stock Plan | 2008 Stock Plan | 2008 Stock Plan | 2014 Stock Plan | 2014 Stock Plan | 2014 Stock Plan | 2014 Employee Stock Purchase Plan | 2014 Employee Stock Purchase Plan | 2014 Employee Stock Purchase Plan | |||||
Minimum | Maximum | Maximum | Maximum | Stockbased compensation expense for the ESPP | Maximum | ||||||||||||||
Incentive Stock Options | |||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares available for issuance under the plan | 8,165,979 | 8,165,979 | ' | 2,085,338 | ' | ' | ' | ' | ' | ' | 2,085,338 | ' | ' | ' | ' | ' | ' | ' | ' |
Options granted, exercisable term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | '4 years | ' | ' | ' | ' | ' | ' |
Expiry term of exercisable options | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expiration date | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12-Jul-14 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares of common stock, authorized for issuance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,142,857 | 42,857,142 | ' | ' | 2,071,428 |
Shares of common stock available for issuance | 26,681,238 | 26,681,238 | ' | 66,780,912 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 16,312,202 | ' | 2,142,857 | ' | ' |
Description of common stock reserved for issuance under the plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'the number of shares of our common stock reserved for issuance under our 2014 Plan will 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, | ' | ' | 'the number of shares of our common stock reserved for issuance under our ESPP will 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; | ' | ' |
Percentage of shares increase every year to issue employees | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% | ' | ' | 1.00% | ' | ' |
Stock-based compensation expense | ' | $6,932,000 | $4,449,000 | ' | ' | ' | ' | ' | $1,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | $411,000 | ' |
Non-employee stock options outstanding | ' | ' | ' | ' | ' | ' | 64,127 | 78,389 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total unrecognized compensation cost | ' | ' | ' | ' | 24,700,000 | 9,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized compensation cost, weighted-average period of recognition | '0 years | '3 years 10 months 24 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares issued for early exercise of stock options | 2,329 | 42,772 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares outstanding due to early exercise of unvested stock options | 285,030 | 285,030 | ' | 465,260 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Liability for early exercised stock options | $727,000 | $727,000 | ' | $938,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share_Based_Awards_Schedule_of
Share Based Awards - Schedule of Restricted Stock Activity (Details) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 |
Restricted Stock | Restricted Stock | Restricted Stock | |||
Time-based Shares | Time-and-Performance Based Shares | ||||
Class Of Stock [Line Items] | ' | ' | ' | ' | ' |
Unvested, Beginning Balance | 153,916 | 1,918,620 | 1,918,620 | 886,718 | 1,031,902 |
Granted | ' | ' | 16,294 | 16,294 | ' |
Vested | ' | ' | -1,017,406 | -457,828 | -559,578 |
Cancelled/Forfeited | ' | ' | -763,592 | -350,440 | -413,152 |
Unvested, Ending Balance | 153,916 | 1,918,620 | 153,916 | 94,744 | 59,172 |
Share_Based_Awards_Schedule_of1
Share Based Awards - Schedule of Stock Option Activity (Details) (USD $) | 6 Months Ended | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 | ||
Class Of Stock [Line Items] | ' | ' | ||
Number of Shares Available for Issuance, Beginning Balance | 2,085,338 | ' | ||
Number of Shares Available for Issuance, Authorized | 9,904,961 | ' | ||
Number of Shares Available for Issuance, Granted | -4,397,027 | ' | ||
Number of Shares Available for Issuance, Canceled | 530,966 | ' | ||
Number of Shares Available for Issuance, Repurchased | 41,741 | ' | ||
Number of Shares Available for Issuance, Ending Balance | 8,165,979 | 2,085,338 | ||
Options Outstanding, Shares Beginning Balance | 13,330,882 | ' | ||
Options Outstanding, Shares Granted | 4,397,027 | ' | ||
Shares Exercised | -907,028 | [1] | ' | |
Options Outstanding, Shares Canceled | -530,966 | ' | ||
Options Outstanding , Shares Ending Balance | 16,289,915 | 13,330,882 | ||
Vested and exercisable—December 31, 2013 | 5,589,016 | 4,864,864 | ||
Vested and expected to vest(2)— December 31, 2013 | 14,955,442 | [2] | 12,244,397 | [1] |
Options Outstanding, Weighted-Average Exercise Price, Beginning Balance | $2.90 | ' | ||
Options Outstanding, Weighted Average Exercise Price Granted | $6.39 | ' | ||
Options Outstanding, Weighted Average Exercise Price Exercised | $2.36 | [1] | ' | |
Options Outstanding, Weighted Average Exercise Price Canceled | $3.94 | ' | ||
Options Outstanding, Weighted-Average Exercise Price, Ending Balance | $3.84 | $2.90 | ||
Options Outstanding, Weighted-Average Remaining Contractual Term (Years) | '8 years 4 months 17 days | '8 years 4 months 17 days | ||
Options Outstanding, Aggregate Intrinsic Value | $92,606 | $38,339 | ||
Options Outstanding, Vested and exercisable, Aggregate Intrinsic Value | 41,755 | 19,378 | ||
Options Outstanding, Vested and expected to vest, Aggregate Intrinsic Value | $85,849 | [2] | $35,615 | [1] |
[1] | Includes early exercises of 42,772 for six months ended June 30, 2014 | |||
[2] | Options expected to vest reflect an estimated forfeiture rate |
Share_Based_Awards_Schedule_of2
Share Based Awards - Schedule of Stock Option Activity (Parenthetical) (Details) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2014 | Jun. 30, 2014 | |
Class Of Stock [Line Items] | ' | ' |
Shares issued for early exercise of stock options | 2,329 | 42,772 |
Share_Based_Awards_Schedule_of3
Share Based Awards - Schedule of Stock-based Compensation Expense Recognized (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Total stock-based compensation expense | $4,506 | $2,150 | $6,932 | $4,449 |
Contra-Revenues | ' | ' | ' | ' |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Total stock-based compensation expense | 98 | 13 | 123 | 36 |
Cost of Revenues | ' | ' | ' | ' |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Total stock-based compensation expense | 328 | 70 | 429 | 151 |
Research and Development | ' | ' | ' | ' |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Total stock-based compensation expense | 1,687 | 1,383 | 2,935 | 2,975 |
Sales and Marketing | ' | ' | ' | ' |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Total stock-based compensation expense | 1,498 | 466 | 2,114 | 892 |
General and Administrative | ' | ' | ' | ' |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Total stock-based compensation expense | $895 | $218 | $1,331 | $395 |
Share_Based_Awards_Schedule_of4
Share Based Awards - Schedule of Assumptions Used for Calculating the Fair Value of Employee Option Grants (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Minimum | ' | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' | ' |
Expected dividend yield | ' | ' | ' | ' |
Risk-free interest rate | 1.80% | 1.50% | 1.70% | 1.00% |
Expected volatility | 54.00% | 52.00% | 54.00% | 52.00% |
Expected life (in years) | '5 years 9 months 18 days | '5 years 10 months 24 days | '5 years 7 months 6 days | '5 years 10 months 24 days |
Maximum | ' | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' | ' |
Expected dividend yield | ' | ' | ' | ' |
Risk-free interest rate | 2.60% | 2.40% | 2.70% | 2.40% |
Expected volatility | 55.00% | 53.00% | 56.00% | 53.00% |
Expected life (in years) | '10 years | '10 years | '10 years | '10 years |
Share_Based_Awards_Schedule_of5
Share Based Awards - Schedule of Assumptions Used for Calculating the Fair Value of Employee Stock Purchase Plans (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Minimum | ' | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' | ' |
Expected dividend yield | ' | ' | ' | ' |
Risk-free interest rate | 1.80% | 1.50% | 1.70% | 1.00% |
Expected volatility | 54.00% | 52.00% | 54.00% | 52.00% |
Expected life (in years) | '5 years 9 months 18 days | '5 years 10 months 24 days | '5 years 7 months 6 days | '5 years 10 months 24 days |
Maximum | ' | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' | ' |
Expected dividend yield | ' | ' | ' | ' |
Risk-free interest rate | 2.60% | 2.40% | 2.70% | 2.40% |
Expected volatility | 55.00% | 53.00% | 56.00% | 53.00% |
Expected life (in years) | '10 years | '10 years | '10 years | '10 years |
Employee Stock Purchase Plan | ' | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' | ' |
Expected dividend yield | ' | ' | ' | ' |
Expected life (in years) | ' | ' | ' | '0 years |
Employee Stock Purchase Plan | Minimum | ' | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' | ' |
Expected dividend yield | ' | ' | ' | ' |
Risk-free interest rate | 0.10% | ' | ' | ' |
Expected volatility | 47.00% | ' | ' | ' |
Expected life (in years) | '8 months 12 days | ' | ' | ' |
Employee Stock Purchase Plan | Maximum | ' | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' | ' |
Expected dividend yield | ' | ' | ' | ' |
Risk-free interest rate | 0.50% | ' | ' | ' |
Expected volatility | 49.00% | ' | ' | ' |
Expected life (in years) | '2 years 2 months 12 days | ' | ' | ' |
Employee_Benefit_Plan_Addition
Employee Benefit Plan - Additional Information (Details) (USD $) | 6 Months Ended |
Jun. 30, 2014 | |
Employees | |
Defined Benefit Plan Disclosure [Line Items] | ' |
Number of employees covered | 'all |
Age restriction of employees | 21 |
Employee's contribution to plan 401(k) plan | $17,500 |
Employee contribution still date | $0 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Operating Leased Assets [Line Items] | ' | ' | ' | ' |
Rent expense | $597,000 | $349,000 | $1,100,000 | $746,000 |
Mountain View, CA location | ' | ' | ' | ' |
Operating Leased Assets [Line Items] | ' | ' | ' | ' |
Future minimum value for the headquarter lease | ' | ' | $2,000,000 | ' |
Minimum | ' | ' | ' | ' |
Operating Leased Assets [Line Items] | ' | ' | ' | ' |
Lease agreement expiration year | ' | ' | '2014 | ' |
Maximum | ' | ' | ' | ' |
Operating Leased Assets [Line Items] | ' | ' | ' | ' |
Lease agreement expiration year | ' | ' | '2017 | ' |
Commitments_and_Contingencies_2
Commitments and Contingencies - Schedule of Future Minimum Lease Payments (Details) (USD $) | Jun. 30, 2014 |
In Thousands, unless otherwise specified | |
Operating Leased Assets [Line Items] | ' |
2014 | $865 |
2015 | 1,791 |
2016 | 1,391 |
2017 | 699 |
2018 | ' |
Total | $4,746 |
Segment_Information_Schedule_o
Segment Information - Schedule of Revenue by Geographic Region (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Entity Wide Revenue Major Customer [Line Items] | ' | ' | ' | ' |
Revenues | $31,467 | $25,155 | $59,680 | $50,976 |
United States | ' | ' | ' | ' |
Entity Wide Revenue Major Customer [Line Items] | ' | ' | ' | ' |
Revenues | 17,621 | 13,545 | 33,984 | 27,153 |
International | ' | ' | ' | ' |
Entity Wide Revenue Major Customer [Line Items] | ' | ' | ' | ' |
Revenues | $13,846 | $11,610 | $25,696 | $23,823 |
Net_Loss_per_Share_Schedule_of
Net Loss per Share - Schedule of Basic and Diluted Net Loss per Share (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Numerator: | ' | ' | ' | ' |
Net loss | ($17,111) | ($6,200) | ($31,073) | ($9,342) |
Denominator: | ' | ' | ' | ' |
Weighted–average shares outstanding | 27,108 | 12,892 | 20,385 | 12,873 |
Less: weighted average shares subject to repurchase | -1,080 | -3,200 | -1,795 | -3,429 |
Weighted–average shares used to compute basic and diluted net loss per share | 26,028 | 9,692 | 18,590 | 9,444 |
Basic and diluted net loss per share | ($0.66) | ($0.64) | ($1.67) | ($0.99) |
Recovered_Sheet1
Net Loss Per Share - Schedule of Antidilutive Securities Excluded from Net Loss per Share Computation (Details) | 6 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ' | ' |
Antidilutive securities excluded from net loss per share (shares) | 16,728,861 | 59,212,342 |
Convertible preferred stock | ' | ' |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ' | ' |
Antidilutive securities excluded from net loss per share (shares) | ' | 43,636,635 |
Options to purchase common stock and unvested restricted stock | ' | ' |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ' | ' |
Antidilutive securities excluded from net loss per share (shares) | 16,728,861 | 15,575,707 |