Marketo (MKTO) 10-Q 8 May 15 2015 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	Mar. 31, 2015	4-May-15
Document and Entity Information
Entity Registrant Name	Marketo, Inc.
Entity Central Index Key	1490660
Document Type	10-Q
Document Period End Date	31-Mar-15
Amendment Flag	FALSE
Current Fiscal Year End Date	-19
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		42,239,686
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q1

Condensed_Consolidated_Balance

Condensed Consolidated Balance Sheets (USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, unless otherwise specified
Current assets:
Cash and cash equivalents	$103,768	$112,644
Accounts receivable, net of allowances	40,189	37,867
Prepaid expenses and other current assets	10,039	5,756
Total current assets	153,996	156,267
Property and equipment, net	17,672	16,832
Goodwill	29,201	29,201
Intangible assets, net	7,373	7,076
Other assets	1,887	1,035
Total assets	210,129	210,411
Current liabilities:
Accounts payable	3,800	3,901
Accrued expenses and other current liabilities	20,117	20,691
Deferred revenue	66,884	62,945
Current portion of credit facility	2,746	2,719
Total current liabilities	93,547	90,256
Credit facility, net of current portion	1,955	2,653
Other liabilities	3,809	3,526
Total liabilities	99,311	96,435
Commitments and contingencies (Note 8)
Redeemable non-controlling interests (Note 6)	1,794	800
Stockholders' equity:
Common stock	4	4
Additional paid-in capital	311,340	297,420
Accumulated other comprehensive loss	-264	-350
Accumulated deficit	-202,056	-183,898
Total stockholders' equity	109,024	113,176
Total liabilities, redeemable non-controlling interests and stockholders' equity	$210,129	$210,411

Condensed_Consolidated_Stateme

Condensed Consolidated Statements of Operations (USD $)	3 Months Ended
Share data in Thousands, except Per Share data, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Revenue:
Subscription and support	$40,100,000	$28,611,000
Professional services and other	5,900,000	3,681,000
Total revenue	46,000,000	32,292,000
Cost of revenue:
Subscription and support	9,074,000	6,235,000
Professional services and other	7,337,000	4,841,000
Total cost of revenue	16,411,000	11,076,000
Gross profit:
Subscription and support	31,026,000	22,376,000
Professional services and other	-1,437,000	-1,160,000
Total gross profit	29,589,000	21,216,000
Operating expenses:
Research and development	9,695,000	7,131,000
Sales and marketing	30,032,000	20,368,000
General and administrative	8,782,000	6,192,000
Total operating expenses	48,509,000	33,691,000
Loss from operations	-18,920,000	-12,475,000
Other income (expense), net	520,000	-59,000
Loss before provision (benefit) for income taxes	-18,400,000	-12,534,000
Provision (benefit) for income taxes	212,000	-14,000
Net loss	-18,612,000	-12,520,000
Net loss attributable to redeemable non-controlling interests	454,000	11,000
Net loss attributable to Marketo	($18,158,000)	($12,509,000)
Net loss per share of common stock, basic and diluted (in dollars per share)	($0.44)	($0.32)
Shares used in computing net loss per share of common stock, basic and diluted (in shares)	41,613	39,379

Condensed_Consolidated_Stateme1

Condensed Consolidated Statements of Comprehensive Loss (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Condensed Consolidated Statements of Comprehensive Loss
Net loss	($18,612)	($12,520)
Other comprehensive income (loss):
Foreign currency translation adjustments	89	-50
Total comprehensive loss	-18,523	-12,570
Net loss attributable to redeemable non-controlling interests	454	11
Other comprehensive (income) loss attributable to redeemable non-controlling interests	-3	2
Comprehensive loss attributable to Marketo	($18,072)	($12,557)

Condensed_Consolidated_Stateme2

Condensed Consolidated Statements of Cash Flows (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Cash flows from operating activities:
Net loss attributable to Marketo	($18,158)	($12,509)
Net loss attributable to redeemable noncontrolling interests	-454	-11
Net loss	-18,612	-12,520
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	2,879	2,131
Stock-based compensation expense	9,281	5,007
Deferred income taxes	187	-74
Changes in operating assets and liabilities:
Accounts receivable, net	-2,779	1,709
Prepaid expenses and other current assets	-4,170	-3,724
Other assets	-644	-393
Accounts payable	1,028	44
Accrued expenses and other current liabilities	-515	-9,628
Deferred revenue	4,694	4,251
Other liabilities	116	-14
Net cash used in operating activities	-8,535	-13,211
Cash flows from investing activities:
Increase in Restricted Cash	-215
Purchase of property and equipment	-4,092	-2,579
Capitalized software development	-521	-179
Net cash used in investing activities	-4,828	-2,758
Cash flows from financing activities:
Proceeds from issuance of common stock upon exercise of stock options	965	2,518
Proceeds from the issuance of common stock issued under the employee stock purchase plan	2,885	3,384
Investment from redeemable non-controlling interests	1,678	1,953
Repurchase of unvested common stock from terminated employees		-23
Withholding taxes remitted for the net share settlement of an equity awards	-3	-15
Repayment of debt	-670	-293
Payment of deferred initial public offering and follow-on offering costs		-104
Payment incurred for common stock registration related to acquisition		-155
Net cash provided by financing activities	4,855	7,265
Effect of foreign exchange rate changes on cash and cash equivalents	-368	-23
Net increase (decrease) in cash and cash equivalents	-8,876	-8,727
Cash and cash equivalents - beginning of period	112,644	112,644
Cash and cash equivalents -end of period	103,768	119,572
Supplemental disclosures of cash flow information:
Cash paid for interest	52	75
Cash paid for income taxes	29	29
Supplemental disclosure of noncash investing and financing activities:
Vesting of early exercise options	42	115
Property and equipment acquired through tenant improvement allowance	$65

The_Company_and_Summary_of_Sig

The Company and Summary of Significant Accounting Policies and Estimates	3 Months Ended
	Mar. 31, 2015
The Company and Summary of Significant Accounting Policies and Estimates
The Company and Summary of Significant Accounting Policies and Estimates
	1. The Company and Summary of Significant Accounting Policies and Estimates
	Business
	Marketo, Inc. (Marketo or the Company) was incorporated in the state of California on January 20, 2006. The Company was reincorporated in the state of Delaware on December 17, 2009. The Company operates from its headquarters in San Mateo, California and has operating subsidiaries in Ireland, Australia, Israel, Japan and the United Kingdom.
	Marketo is a provider of the leading cloud-based Engagement Marketing software platform that is purpose-built to enable organizations to engage in modern engagement marketing. The Company’s  platform is designed to enable the effective management, optimization and analytical measurement of marketing activities, enabling organizations to acquire new customers more efficiently, build stronger relationships with existing customers, improve sales effectiveness and drive faster revenue growth. On this platform, the Company delivers an easy to use, integrated suite of advanced applications. The Company generally offers its services on an annual subscription basis with quarterly or annual payment terms.
	Basis of Presentation
	The unaudited condensed consolidated financial statements and accompanying notes of the Company reflect all adjustments (all of which are normal and recurring in nature) that, in the opinion of management, are necessary for a fair presentation of the interim periods presented. The unaudited condensed consolidated financial statements include the accounts of Marketo and its wholly-owned and majority-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.
	The results of operations for the interim periods presented are not necessarily indicative of the results to be expected for the entire year ending December 31, 2015. Certain information and note disclosures normally included in annual financial statements prepared in accordance with generally accepted accounting principles in the United States of America (U.S. GAAP) have been condensed or omitted under the rules and regulations of the Securities and Exchange Commission (SEC). These unaudited interim condensed consolidated financial statements should be read in conjunction with the Company’s audited financial statements and related notes presented in the Company’s Annual Report on Form 10-K filed with the SEC on March 12, 2015. There have been no changes in the Company’s significant accounting policies from those that were disclosed in the Company’s audited consolidated financial statements for the fiscal year ended December 31, 2014.
	Use of Estimates
	The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Such management estimates and assumptions include the estimated selling price for the various elements in our customer contracts, the allowance for doubtful accounts, stock-based compensation expense, useful lives of intangible assets, redemption value of redeemable non-controlling interests and the valuation of deferred tax assets and acquired intangible assets. Actual results could differ materially from those estimates, and such differences could be material to the financial statements and affect the results of operations reported in future periods.
	Recent Accounting Pronouncements
	In April 2015, the Financial Accounting Standard Board (FASB) issued new accounting guidance, Simplifying the Presentation of Debt Issuance Costs. The guidance requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The debt issuance costs guidance is effective for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption is permitted. The Company has elected not to early adopt. The adoption of the debt guidance is not expected to have a material impact on the Company’s condensed consolidated financial statements. In May 2014, the FASB issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606), which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective.  ASU 2014-09 also specifies the accounting for some costs to obtain or fulfill a contract with a customer. Unless amended or delayed by the FASB, the new standard would be effective for the Company on January 1, 2017. Early application would be permitted. The standard permits the use of either the retrospective or cumulative effect transition method.  The Company is evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting.

Joint_Venture

Joint Venture	3 Months Ended
	Mar. 31, 2015
Joint Venture
Joint Venture
	2. Joint Venture
	In February 2014, the Company entered into an agreement with SunBridge Corporation and Dentsu eMarketing One K.K. (collectively, the Investors) to engage in the investment, organization, management and operation of a Japanese subsidiary (Marketo KK) of the Company that is focused on the sale of the Company’s products and services in Japan. The Investors initially contributed approximately $2.0 million (200,000,000 Japanese Yen) in cash in exchange for 35.4% of the outstanding common stock of Marketo KK. Furthermore, under the agreement, the Company and the Investors agreed to subscribe to additional shares by contributing additional funding of approximately $2.0 million (237,480,955 Japanese Yen) and approximately $1.7 million (200,000,000 Japanese Yen), respectively, which occurred in March 2015. As of March 31, 2015, the Company and the Investors owned approximately 60.1% and 39.9% of the outstanding common stock in Marketo KK, respectively. See Note 6 for the activity in the redeemable non-controlling interests balance.
	Twenty percent of the common stock held by the Investors may be callable by the Company or puttable by the Investors beginning on the seventh anniversary of the initial capital contribution by the Investors. This percentage increases to forty percent and one hundred percent on the eighth and tenth anniversary, respectively.  Should the call or put option be exercised, the redemption value would be determined based on a prescribed formula derived from the relative revenues of Marketo KK and the Company and may be settled, at the Company’s discretion, with Company stock (with no limit on the shares that may be issued) or cash.  Additionally, the common stock held by the Investors may be callable or puttable following a change of control of the Company.  The redeemable non-controlling interests in Marketo KK are classified outside of permanent equity in the Company’s condensed consolidated balance sheet as of March 31, 2015, primarily due to the put right available to the redeemable non-controlling interest holders in the future which may be settled in cash or common stock of the Company. The balance of the redeemable non-controlling interests is reported at the greater of the initial carrying amount adjusted for the redeemable non-controlling interest’s share of earnings, or its estimated redemption value. The resulting changes in the estimated redemption amount (increases or decreases) are recorded with corresponding adjustments against retained earnings or, in the absence of retained earnings, additional paid-in-capital. The estimated redemption value of the call/put option embedded in the redeemable non-controlling interests was approximately $1.1 million at March 31, 2015.

Fair_Value_of_Financial_Instru

Fair Value of Financial Instruments	3 Months Ended
	Mar. 31, 2015
Fair Value of Financial Instruments
Fair Value of Financial Instruments
	3. Fair Value of Financial Instruments
	The Company measures certain financial assets at fair value on a recurring basis based on a fair value hierarchy that requires the Company to maximize the use of observable inputs and minimize the use of unobservable inputs. Inputs used in the valuation techniques to derive fair values are classified based on a three-level hierarchy, as follows:
		·		Level 1 — Quoted prices in active markets for identical assets or liabilities.
		·		Level 2 — Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which all significant inputs are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities.
		·		Level 3 — Unobservable inputs to the valuation methodology that are significant to the measurement of fair value of assets or liabilities.
	As of March 31, 2015 and December 31, 2014, financial assets measured at fair value on a recurring basis were comprised of money market funds and certificates of deposit included within cash and cash equivalents.
	The fair value of these financial assets was determined using the following inputs for the periods presented:
			March 31, 2015						December 31, 2014
			Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
			(in thousands)
	Money market funds		$	94,037	$	—	$	—	$	104,021	$	—	$	—
	Certificates of deposit		—		25		—		—		25		—
	Total		$	94,037	$	25	$	—	$	104,021	$	25	$	—

Balance_Sheet_Components

Balance Sheet Components	3 Months Ended
	Mar. 31, 2015
Balance Sheet Components
Balance Sheet Components
	4. Balance Sheet Components
	Cash and Cash Equivalents
	Cash and cash equivalents consist of the following:
		March 31,			December 31,
		2015			2014
		(in thousands)
	Cash	$	9,706		$	8,598
	Cash equivalents:
	Money market funds	94,037			104,021
	Certificates of deposit	25			25
		94,062			104,046
	Cash and cash equivalents	$	103,768		$	112,644
	Accounts Receivable
	Accounts receivable consist of the following:
		March 31,			December 31,
		2015			2014
		(in thousands)
	Accounts receivable	$	40,670		$	38,260
	Allowance for doubtful accounts	(481		)	(393		)
	Accounts receivable, net	$	40,189		$	37,867
	Property and Equipment, Net
	Property and equipment, net consists of the following:
		March 31,			December 31,
		2015			2014
		(in thousands)
	Computer equipment	$	20,201		$	18,384
	Software	2,526			2,417
	Office furniture	2,313			2,071
	Leasehold improvements	5,326			5,123
	Construction in progress	2,329			1,745
	Total property and equipment	32,695			29,740
	Less accumulated depreciation	(15,023		)	(12,908		)
	Property and equipment, net	$	17,672		$	16,832
	Accrued Expenses and Other Current Liabilities
	Accrued expenses and other current liabilities are as follows:
		March 31,			December 31,
		2015			2014
		(in thousands)
	Accrued bonuses, commissions and wages	$	8,403		$	10,553
	Accrued ESPP	1,045			2,324
	Accrued vacation	3,537			2,972
	Accrued marketing expenses	1,179			1,313
	Accrued other	5,953			3,529
	Total	$	20,117		$	20,691

Goodwill_and_Intangible_Assets

Goodwill and Intangible Assets	3 Months Ended
	Mar. 31, 2015
Goodwill and Intangible Assets
Goodwill and Intangible Assets
	5. Goodwill and Intangible Assets
	Goodwill and intangible assets consisted of the following as of March 31, 2015 and December 31, 2014:
		March 31,			Weighted		December 31,			Weighted
		2015			Average		2014			Average
					Remaining					Remaining
					Useful Life					Useful Life
		(in thousands)			(in years)		(in thousands)			(in years)
	Developed technology	$	6,050		2.7		$	6,050		2.9
	Domain names	950			3.4		950			3.6
	Customer relationships	1,600			1.4		1,600			1.6
	Non-compete agreements	580			2.7		580			3
	Capitalized software development costs	3,075			1.6		2,042			1.2
		12,255					11,222
	Less accumulated amortization	(4,882		)			(4,146		)
	Intangible assets, net	7,373					7,076
	Goodwill	29,201					29,201
	Goodwill and intangible assets, net	$	36,574				$	36,277
	Amortization expense for the periods indicated below was as follows (in thousands):
		Three Months
		Ended March 31,
		2015			2014
	Amortization expense	$	736		$	517
	Based on the carrying amount of intangible assets as of March 31, 2015, the estimated future amortization is as follows (in thousands):
		Nine Months			Years Ending December 31,
		Ending
		December 31,
		2015			2016			2017			2018		2019		Total
	Developed Technology	$	1,131		$	1,508		$	1,406		$	—	$	—	$	4,045
	Domain Names	137			180			100			100		29		546
	Customer Relationships	410			315			—			—		—		725
	Non-Compete Agreements	113			150			144			—		—		407
	Capitalized Software Development Costs	879			649			122			—		—		1,650
	Total	$	2,670		$	2,802		$	1,772		$	100	$	29	$	7,373

Stockholders_Equity_and_Redeem

Stockholders Equity and Redeemable Noncontrolling Interests	3 Months Ended
	Mar. 31, 2015
Stockholders' Equity and Redeemable Non-controlling Interests
Stockholders' Equity and Redeemable Non-controlling Interests
	6. Stockholders’ Equity and Redeemable Non-controlling Interests
	The following table summarizes the activity in stockholders’ equity and redeemable non-controlling interests for the period indicated below (in thousands):
		Total			Redeemable
		Stockholders’			Non-controlling
		Equity			Interests
	Balance as of December 31, 2014	$	113,176		$	800
	Issuance of common stock upon exercise and early exercise of stock options	965			—
	Issuance of common stock under employee stock purchase plan	2,885			—
	Investment by redeemable non-controlling interests	233			1,445
	Vesting of early exercised options	42			—
	Stock-based compensation expense	9,795			—
	Net loss	(18,158		)	(454		)
	Foreign currency translation adjustments	86			3
	Balance as of March 31, 2015	$	109,024		$	1,794
	The Company capitalized stock-based compensation expense of $0.5 million associated with the Company’s internal-use software projects.

Credit_Facility

Credit Facility	3 Months Ended
	Mar. 31, 2015
Credit Facility
Credit Facility
	7. Credit Facility
	In May 2012, the Company entered into a loan and security agreement with a bank related to an equipment facility providing the Company with an equipment line of up to $4.0 million. In June 2013, the Company entered into a first amendment to the loan and security agreement, which provided an additional line of credit for advances of up to $4.5 million. The interest rate associated with both lines of credit is the greater of 4% or three-quarters percentage points above the prime rate, as determined on the applicable funding date. For each equipment advance, the Company will pay interest only for approximately nine months. Subsequently, the Company will make thirty-six equal monthly payments of principal and interest. The loan is secured by a security interest on substantially all of the Company’s assets, including the equipment purchased with the advances, and excludes the Company’s intellectual property. The loan and security agreement contains customary events of default and provides that during the existence of an event of default, interest on the obligations could be increased by 5%.
	In May 2014, the Company entered into a second amendment to the loan and security agreement to amend various covenants. Under the second amendment the Company is required to maintain compliance with certain financial covenants, which include maintaining a minimum cash balance with the bank and various reporting covenants. As of March 31, 2015, the Company was in compliance with these covenants.  As of March 31, 2015 and December 31, 2014, the outstanding loan balance was $4.7 million and $5.4 million, respectively.
	There were no material changes in the Company’s commitments under the outstanding loan balance, as disclosed in the Company’s audited consolidated financial statements for the year ended December 31, 2014.

Commitments_and_Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2015
Commitments and Contingencies.
Commitments and Contingencies
	8. Commitments and Contingencies
	Except as set forth below, there were no material changes in the Company’s commitments under contractual obligations, as disclosed in the Company’s audited consolidated financial statements for the year ended December 31, 2014.
	In February 2015, the Company entered into a definitive lease agreement whereby the Company will lease approximately 6,448 square feet of office space in Sydney, Australia. The Company’s future minimum lease payments under this agreement are approximately $1.0 million, payable over the thirty-six month term of the lease.
	In March 2015, the Company entered into a definitive lease agreement whereby the Company will lease approximately 4,147 square feet of office space in Tokyo, Japan. The Company’s future minimum lease payments under this agreement are approximately $1.4 million, payable over the forty-two month term of the lease.
	As of March 31, 2015, future minimum operating lease payments are as follows (in thousands):
	2015 (9 months)	$	4,390
	2016	6,359
	2017	6,529
	2018	4,533
	2019	470
	Total	$	22,281
	Additionally, in January 2015, the Company entered into a renewal agreement with a customer relationship management vendor. The Company’s contractual obligation under this agreement is approximately $4.0 million, payable over the thirty-six month term of the agreement.
	In January 2015, the Company also entered into a renewal agreement with a data center vendor. The Company’s contractual obligation under this agreement is approximately $1.4 million, payable over the thirty-six month term of the agreement.

Stockholders_Equity_and_Stock_

Stockholder's Equity and Stock Based Compensation	3 Months Ended
	Mar. 31, 2015
Stockholder's Equity and Stock Based Compensation
Stockholder's Equity and Stock Based Compensation
	9. Stockholder’s Equity and Stock Based Compensation
	Common Stock Authorized and Outstanding
	As of March 31, 2015, the Company was authorized to issue 1,000,000,000 common shares with a par value of $0.0001 per share and 20,000,000 convertible preferred shares with a par value of $0.0001 per share. As of March 31, 2015, the Company had approximately 42.1 million shares of common stock issued and outstanding.
	Summary of Stock Option Activity
	A summary of the Company’s stock option activity under all stock option plans and related information for three months ended March 31, 2015 is as follows:
		Number of		Weighted-			Weighted-		Aggregate
		Stock		Average			Average		Intrinsic
		Options		Exercise			Remaining		Value
		Outstanding		Price			Contractual
							Life
		(in thousands)					(Years)		(in thousands)
	Balance as of December 31, 2014	5,404		$	11.55		7.56		$	120,595
	Granted	—		—
	Exercised	(278	)	3.47
	Repurchased	—		—
	Cancelled/forfeited	(157	)	12.79
	Balance as of March 31, 2015	4,969		11.96			7.18		80,350
	Exercisable as of March 31, 2015	4,163		7.27			7.01		79,948
	Vested and expected to vest as of March 31, 2015	4,682		$	11.5		7.13		$	77,198
	The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the Company’s closing price of $25.62 as of March 31, 2015 for options that were in-the-money as of that date.
	Option awards generally vest over a four year period, with 25% vesting after one year from date of grant and monthly thereafter. Stock options granted under the Company’s 2006 Plan provided option holders with an early exercise provision, where in the event of termination any unvested shares purchased are subject to repurchase by the Company at the original purchase price. This right of repurchase lapses as the option vests. Options exercisable as of March 31, 2015 include options that are exercisable prior to vesting.
	The weighted average grant date fair value of options granted and the total intrinsic value of options exercised were as follows (in thousands, except weighted average grant date fair value):
		Three Months
		Ended March 31,
		2015			2014
	Weighted average grant date fair value of options granted	N/A			$	21.78
	Total intrinsic value of options exercised	$	7,583		$	28,623
	The total estimated grant date fair value of options vested during the three months ended March 31, 2015 was approximately $5.7 million.
	Determining Fair Value of Stock Options
	The fair value of each option grant is estimated on the date of grant using the Black-Scholes option valuation model. The following assumptions were used to estimate the fair value of options granted to employees:
		Three Months
		Ended March 31,
		2015		2014
	Expected term (in years)	N/A		6
	Risk-free interest rate	N/A		1.84%
	Expected volatility	N/A		56%
	Expected dividend rate	N/A		0%
	Restricted Stock Units
	A summary of the Company’s Restricted Stock Units (RSUs) activity and related information for the three months ended March 31, 2015 are as follows:
		Number of		Weighted Average			Aggregate
		RSUs		Grant Date			Intrinsic
				Fair Value			Value
		(in thousands)					(in thousands)
	Balance as of December 31, 2014	2,360		$	33.3		$	77,207
	RSUs Granted	1,082		34.5
	RSUs Vested	(215	)	41.36
	RSUs Cancelled/Forfeited	(108	)	32.7
	Balance as of March 31, 2015	3,119		$	33.18		$	79,922
	RSUs granted during the three months ended March 31, 2015 are subject to a time-based vesting condition that ranges from 3 to 4 years.
	The aggregate intrinsic value of RSUs outstanding at March 31, 2015 was determined using the Company’s closing stock price of $25.62 per share as of March 31, 2015.
	The weighted average grant date fair value of RSUs granted and the total intrinsic value of RSUs that vested during the periods presented were as follows (in thousands, except weighted average grant date fair value):
		Three Months
		Ended March 31,
		2015			2014
	Weighted average grant date fair value of RSUs granted	$	34.50		$	41.57
	Total intrinsic value of vested RSUs	$	6,029		$	195
	Market Stock Units
	In February 2015, the Compensation Committee of the Company’s Board of Directors granted market-performance based restricted stock units (MSUs) to its executive officers. MSU awards are granted under the Company’s 2013 Equity Incentive Plan.
	Each MSU award granted in the first quarter of fiscal 2015 contains three separate tranches. The actual number of MSUs which will be eligible to vest in each tranche will be based on the performance of the Company’s stock price relative to the performance of the NASDAQ Composite Index over the vesting period of each tranche, which ranges from one to three years. MSU participants have the ability to receive up to 100% of the target number of shares in tranche 1 and 2 and up to 150% of the target number of shares in tranche 3.
	The following table summarizes the MSU activity as of March 31, 2015:
		Number of Shares		Weighted Average			Weighted Average		Aggregate
		Underlying MSUs		Grant Date			Remaining Vesting		Intrinsic
				Fair Value			Period		Value
	(in thousands)					(in years)		(in thousands)
Balance as of December 31, 2014	—		$	—		—		$	—
MSUs Granted	240		37.53
MSUs Vested	—		—
MSUs Cancelled/Forfeited	—		—
Balance as of March 31, 2015	240		$	37.53		1.88		$	6,144
The aggregate intrinsic value of MSUs outstanding was determined using the Company’s closing stock price of $25.62 as of March 31, 2015.
The fair value of each MSU award is determined by multiplying the fair value per share by the underlying number of shares. The fair value per share was determined on the grant date using the Monte Carlo valuation methodology and the assumptions described in the table below. The fair value per share for Tranche 1, Tranche 2, and Tranche 3 is $9.10, $8.68 and $19.75, respectively. The Company amortizes the fair value of each MSU award using the graded-vesting method, adjusted for estimated forfeitures. Stock-based compensation expense associated with participants who fulfill their requisite service period is not reversed even if the performance conditions are not met. However, stock-based compensation expense is reversed for participants who forfeit their MSU awards prior to fulfilling their requisite service period.
The fair value of the MSUs granted during the first quarter of fiscal 2015 was estimated using the following weighted-average assumptions:
	Three Months
	Ended March 31, 2015
Expected term (in years)	3
Risk-free interest rate	0.99%
Expected volatility	39%
Expected dividend rate	0%
Employee Stock Purchase Plan
The assumptions used to value employee stock purchase rights under the Black-Scholes model during the three months ended March 31, 2015 and 2014 were as follows:
	Three Months
	Ended March 31,
	2015		2014
Expected term (in months)	6		9-Jun
Risk-free interest rate	0.05 - 0.07%		0.08% - 0.11%
Expected volatility	39% - 43%		41% - 42%
Expected dividend rate	0%		0%
During the first three months of fiscal 2015, the Company issued approximately 0.1 million shares of common stock under the ESPP with an average purchase price of $23.87 per share.
Stock Compensation Expense
The stock-based compensation expense included in operating results was allocated as follows (in thousands):
	Three Months
	Ended March 31,
	2015			2014
Cost of subscription and support revenue	$	619		$	384
Cost of professional services and other revenue	937			447
Research and development	2,316			1,079
Sales and marketing	2,802			1,779
General and administrative	2,607			1,318
Total stock-based compensation expense	$	9,281		$	5,007
For the quarter ended March 31, 2015, the Company incurred expenses of $2.3 million for options, $6.5 million for RSUs, $0.6 million for MSUs and $0.4 million for ESPP. Additionally, the Company capitalized stock-based compensation expense of $0.5 million associated with the Company’s internal-use software projects. Amounts for the first quarter of 2015 include stock compensation expense of $0.7 million related to performance-based RSUs that are tied to product milestones issued in connection with an acquisition that occurred in December 2014.
As of March 31, 2015, total unrecognized compensation cost related to unvested awards not yet recognized under all equity compensation plans, adjusted for estimate forfeitures, was as follows:
	March 31, 2015
	Unrecognized			Average Expected
	Expense			Recognition Period
	(in thousands)			(in years)
Stock options	$	16,493		1.94
Restricted stock units and market stock units	79,485			3.12
Employee stock purchase plan	585			0.38
Total unrecognized stock-based compensation expense	$	96,563		2.90

Net_Loss_per_Share

Net Loss per Share	3 Months Ended
	Mar. 31, 2015
Net Loss per Share
Net Loss per Share
	10. Net Loss per Share
	Basic net loss per share is computed by dividing the net loss by the weighted-average number of shares of common stock outstanding during the period, less the weighted-average unvested common stock subject to repurchase or forfeiture as they are not deemed to be issued for accounting purposes. Diluted net loss per share is computed by giving effect to all potential shares of common stock, including preferred stock, stock options, RSUs and employee stock purchase plan, to the extent they are dilutive.
	The following table sets forth the computation of the Company’s basic and diluted net loss per share of common stock under the two-class method attributable to common stockholders:
		Three Months
		Ended March 31,
		2015			2014
		(in thousands, except per share amount)
	Numerator:
	Net loss attributable to Marketo	$	(18,158	)	$	(12,509	)
	Denominator:
	Weighted-average common shares outstanding	41,815			39,628
	Less: Weighted-average unvested common shares subject to repurchase or forfeiture and shares held in escrow	(202		)	(249		)
	Weighted-average shares used in computing net loss per share of common stock, basic and diluted	41,613			39,379
	Net loss per share of common stock, basic and diluted	$	(0.44	)	$	(0.32	)
	The Company applied the two-class method to calculate its basic and diluted net loss per share of common stock, as its convertible preferred stock, common stock subject to repurchase and common stock held in escrow are participating securities. The two-class method is an earnings allocation formula that treats a participating security as having rights to earnings that otherwise would have been available to common shareholders.
	However, the two-class method does not impact the net loss per share of common stock as the Company was in a loss position for each of the periods presented and preferred shareholders, holders of common stock subject to repurchase and common stock held in escrow do not have to participate in losses.
	Additionally, since the Company was in a loss position for each of the periods presented, diluted net loss per share is the same as basic net loss per share for each period, as the inclusion of all potential common shares outstanding would have been anti-dilutive. Potentially dilutive securities that were excluded from the diluted per share calculation because they would have been antidilutive were as follows:
		As of March 31,
		2015		2014
		(in thousands)
	Stock options to purchase common stock	4,969		6,166
	Employee stock purchase plan	120		124
	Common stock held in escrow	159		137
	Common stock subject to repurchase	39		104
	Restricted stock units and market stock units	3,359		1,471
		8,646		8,002

Income_Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2015
Income Taxes
Income Taxes
	11. Income Taxes
	The provision for income taxes for the three months ended March 31, 2015 was approximately $212,000. The provision for income taxes for the three months ended March 31, 2015 consisted primarily of foreign and state income taxes. The benefit for income taxes for the three months ended March 31, 2014 was approximately $14,000. The benefit for income taxes for the three months ended March 31, 2014 consisted primarily of foreign and state income taxes offset by a deferred tax benefit resulting primarily from the reduction in the foreign deferred tax liability as a result of the amortization of the acquired intangibles relating to the acquisition of Insightera, which occurred in December 2013.
	For the three months ended March 31, 2015, the provision for income taxes differed from the statutory amount primarily due to unbenefited federal, state, and certain foreign losses with minor offsets for certain state and foreign taxes currently payable.  For the three months ended March 31, 2014, the provision for income taxes differed from the statutory amount primarily due to state and foreign taxes currently payable.  The Company realized no benefit for current year losses due to maintaining a full valuation allowance against the U.S. and most of its foreign net deferred tax assets.
	The realization of tax benefits of deferred tax assets is dependent upon future levels of taxable income, of an appropriate character, in the periods the items are expected to be deductible or taxable. Based on the available objective evidence, the Company does not believe it is more likely than not that the U.S. Federal and state net deferred tax assets will be realizable. Accordingly, the Company has provided a full valuation allowance against the domestic net deferred tax assets and certain foreign jurisdictions with net deferred tax assets as of March 31, 2015 and December 31, 2014. The Company intends to maintain the remaining valuation allowance until sufficient positive evidence exists to support a reversal of, or decrease in, the valuation allowance. During the three months ended March 31, 2015, there have been no material changes to the total amount of unrecognized tax benefits.

Segment_Information_and_Inform

Segment Information and Information about Geographic Areas	3 Months Ended
	Mar. 31, 2015
Segment Information and Information about Geographic Areas
Segment Information and Information about Geographic Areas
	12. Segment Information and Information about Geographic Areas
	The accounting principles guiding disclosures about segments of an enterprise and related information establishes standards for the reporting by business enterprises of information about operating segments, products and services, geographic areas, and major customers. The method of determining which information is reported is based on the way that management organizes the operating segments within the Company for making operational decisions and assessments of financial performance. The Company’s chief operating decision maker (the CODM) is considered to be the Company’s chief executive officer (CEO). The CODM reviews financial information presented on a consolidated basis for purposes of making operating decisions and assessing financial performance. As such, the Company is determined to be operating in one business segment.
	All of the Company’s principal operations and decision-making functions are located in the United States.
	Revenue
	Revenue by geography is based on the shipping address of the customer. The following table presents the Company’s revenue by geographic region for the periods presented:
		Three Months
		Ended March 31,
		2015		2014
		(in thousands)
	United States	$	39,265	$	27,350
	EMEA	3,152		2,656
	Other	3,583		2,286
	Total	$	46,000	$	32,292
	No single customer accounted for more than 10% of the Company’s total revenue during the three months ended March 31, 2015 and 2014. No single customer accounted for more than 10% of accounts receivable as of March 31, 2015 and December 31, 2014.
	Long-lived Assets
	The following table sets forth the Company’s long-lived assets by geographic areas as of the periods presented:
		March 31,		December 31,
		2015		2014
		(in thousands)
	United States	$	17,074	$	16,265
	EMEA	232		209
	Other	366		358
	Total	$	17,672	$	16,832

The_Company_and_Summary_of_Sig1

The Company and Summary of Significant Accounting Policies and Estimates (Policies)	3 Months Ended
	Mar. 31, 2015
The Company and Summary of Significant Accounting Policies and Estimates
Basis of Presentation
	Basis of Presentation
	The unaudited condensed consolidated financial statements and accompanying notes of the Company reflect all adjustments (all of which are normal and recurring in nature) that, in the opinion of management, are necessary for a fair presentation of the interim periods presented. The unaudited condensed consolidated financial statements include the accounts of Marketo and its wholly-owned and majority-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.
	The results of operations for the interim periods presented are not necessarily indicative of the results to be expected for the entire year ending December 31, 2015. Certain information and note disclosures normally included in annual financial statements prepared in accordance with generally accepted accounting principles in the United States of America (U.S. GAAP) have been condensed or omitted under the rules and regulations of the Securities and Exchange Commission (SEC). These unaudited interim condensed consolidated financial statements should be read in conjunction with the Company’s audited financial statements and related notes presented in the Company’s Annual Report on Form 10-K filed with the SEC on March 12, 2015. There have been no changes in the Company’s significant accounting policies from those that were disclosed in the Company’s audited consolidated financial statements for the fiscal year ended December 31, 2014.
Use of Estimates
	Use of Estimates
	The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Such management estimates and assumptions include the estimated selling price for the various elements in our customer contracts, the allowance for doubtful accounts, stock-based compensation expense, useful lives of intangible assets, redemption value of redeemable non-controlling interests and the valuation of deferred tax assets and acquired intangible assets. Actual results could differ materially from those estimates, and such differences could be material to the financial statements and affect the results of operations reported in future periods.
Recent Accounting Pronouncements
	Recent Accounting Pronouncements
	In April 2015, the Financial Accounting Standard Board (FASB) issued new accounting guidance, Simplifying the Presentation of Debt Issuance Costs. The guidance requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The debt issuance costs guidance is effective for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption is permitted. The Company has elected not to early adopt. The adoption of the debt guidance is not expected to have a material impact on the Company’s condensed consolidated financial statements. In May 2014, the FASB issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606), which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective.  ASU 2014-09 also specifies the accounting for some costs to obtain or fulfill a contract with a customer. Unless amended or delayed by the FASB, the new standard would be effective for the Company on January 1, 2017. Early application would be permitted. The standard permits the use of either the retrospective or cumulative effect transition method.  The Company is evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting.

Fair_Value_of_Financial_Instru1

Fair Value of Financial Instruments (Tables)	3 Months Ended
	Mar. 31, 2015
Fair Value of Financial Instruments
Schedule of financial assets measured stated at fair value on a recurring basis
		March 31, 2015						December 31, 2014
		Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
		(in thousands)
	Money market funds	$	94,037	$	—	$	—	$	104,021	$	—	$	—
	Certificates of deposit	—		25		—		—		25		—
	Total	$	94,037	$	25	$	—	$	104,021	$	25	$	—

Balance_Sheet_Components_Table

Balance Sheet Components (Tables)	3 Months Ended
	Mar. 31, 2015
Balance Sheet Components
Schedule of cash and cash equivalents
		March 31,			December 31,
		2015			2014
		(in thousands)
	Cash	$	9,706		$	8,598
	Cash equivalents:
	Money market funds	94,037			104,021
	Certificates of deposit	25			25
		94,062			104,046
	Cash and cash equivalents	$	103,768		$	112,644
Schedule of accounts receivable
		March 31,			December 31,
		2015			2014
		(in thousands)
	Accounts receivable	$	40,670		$	38,260
	Allowance for doubtful accounts	(481		)	(393		)
	Accounts receivable, net	$	40,189		$	37,867
Schedule of property and equipment, net
		March 31,			December 31,
		2015			2014
		(in thousands)
	Computer equipment	$	20,201		$	18,384
	Software	2,526			2,417
	Office furniture	2,313			2,071
	Leasehold improvements	5,326			5,123
	Construction in progress	2,329			1,745
	Total property and equipment	32,695			29,740
	Less accumulated depreciation	(15,023		)	(12,908		)
	Property and equipment, net	$	17,672		$	16,832
Schedule of accrued expenses and other current liabilities
		March 31,			December 31,
		2015			2014
		(in thousands)
	Accrued bonuses, commissions and wages	$	8,403		$	10,553
	Accrued ESPP	1,045			2,324
	Accrued vacation	3,537			2,972
	Accrued marketing expenses	1,179			1,313
	Accrued other	5,953			3,529
	Total	$	20,117		$	20,691

Goodwill_and_Intangible_Assets1

Goodwill and Intangible Assets (Tables)	3 Months Ended
	Mar. 31, 2015
Goodwill and Intangible Assets
Schedule of goodwill and intangible assets
		March 31,			Weighted		December 31,			Weighted
		2015			Average		2014			Average
					Remaining					Remaining
					Useful Life					Useful Life
		(in thousands)			(in years)		(in thousands)			(in years)
	Developed technology	$	6,050		2.7		$	6,050		2.9
	Domain names	950			3.4		950			3.6
	Customer relationships	1,600			1.4		1,600			1.6
	Non-compete agreements	580			2.7		580			3
	Capitalized software development costs	3,075			1.6		2,042			1.2
		12,255					11,222
	Less accumulated amortization	(4,882		)			(4,146		)
	Intangible assets, net	7,373					7,076
	Goodwill	29,201					29,201
	Goodwill and intangible assets, net	$	36,574				$	36,277
Schedule of amortization expense
	Amortization expense for the periods indicated below was as follows (in thousands):
		Three Months
		Ended March 31,
		2015			2014
	Amortization expense	$	736		$	517
Schedule of estimated future amortization based on the carrying amount of intangible assets
	Based on the carrying amount of intangible assets as of March 31, 2015, the estimated future amortization is as follows (in thousands):
		Nine Months			Years Ending December 31,
		Ending
		December 31,
		2015			2016			2017			2018		2019		Total
	Developed Technology	$	1,131		$	1,508		$	1,406		$	—	$	—	$	4,045
	Domain Names	137			180			100			100		29		546
	Customer Relationships	410			315			—			—		—		725
	Non-Compete Agreements	113			150			144			—		—		407
	Capitalized Software Development Costs	879			649			122			—		—		1,650
	Total	$	2,670		$	2,802		$	1,772		$	100	$	29	$	7,373

Stockholders_Equity_and_Redeem1

Stockholders Equity and Redeemable Noncontrolling Interests (Tables)	3 Months Ended
	Mar. 31, 2015
Stockholders' Equity and Redeemable Non-controlling Interests
Summary of activity in stockholders' equity and redeemable non-controlling interests
	The following table summarizes the activity in stockholders’ equity and redeemable non-controlling interests for the period indicated below (in thousands):
		Total			Redeemable
		Stockholders’			Non-controlling
		Equity			Interests
	Balance as of December 31, 2014	$	113,176		$	800
	Issuance of common stock upon exercise and early exercise of stock options	965			—
	Issuance of common stock under employee stock purchase plan	2,885			—
	Investment by redeemable non-controlling interests	233			1,445
	Vesting of early exercised options	42			—
	Stock-based compensation expense	9,795			—
	Net loss	(18,158		)	(454		)
	Foreign currency translation adjustments	86			3
	Balance as of March 31, 2015	$	109,024		$	1,794

Commitments_and_Contingencies_

Commitments and Contingencies (Tables)	3 Months Ended
	Mar. 31, 2015
Commitments and Contingencies.
Schedule of future minimum operating lease payments
	As of March 31, 2015, future minimum operating lease payments are as follows (in thousands):
	2015 (9 months)	$	4,390
	2016	6,359
	2017	6,529
	2018	4,533
	2019	470
	Total	$	22,281

Stockholders_Equity_and_Stock_1

Stockholder's Equity and Stock Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2015
Stockholder's Equity and Stock Based Compensation
Summary of stock option activity
		Number of		Weighted-			Weighted-		Aggregate
		Stock		Average			Average		Intrinsic
		Options		Exercise			Remaining		Value
		Outstanding		Price			Contractual
							Life
		(in thousands)					(Years)		(in thousands)
	Balance as of December 31, 2014	5,404		$	11.55		7.56		$	120,595
	Granted	—		—
	Exercised	(278	)	3.47
	Repurchased	—		—
	Cancelled/forfeited	(157	)	12.79
	Balance as of March 31, 2015	4,969		11.96			7.18		80,350
	Exercisable as of March 31, 2015	4,163		7.27			7.01		79,948
	Vested and expected to vest as of March 31, 2015	4,682		$	11.5		7.13		$	77,198
Schedule of weighted average grant date fair value of options granted and the total intrinsic value of options exercised
	The weighted average grant date fair value of options granted and the total intrinsic value of options exercised were as follows (in thousands, except weighted average grant date fair value):
		Three Months
		Ended March 31,
		2015			2014
	Weighted average grant date fair value of options granted	N/A			$	21.78
	Total intrinsic value of options exercised	$	7,583		$	28,623
Schedule of assumptions used for estimation of fair value of options granted to employees
		Three Months
		Ended March 31,
		2015		2014
	Expected term (in years)	N/A		6
	Risk-free interest rate	N/A		1.84%
	Expected volatility	N/A		56%
	Expected dividend rate	N/A		0%
Summary of Restricted Stock Units RSUs activity
		Number of		Weighted Average			Aggregate
		RSUs		Grant Date			Intrinsic
				Fair Value			Value
		(in thousands)					(in thousands)
	Balance as of December 31, 2014	2,360		$	33.3		$	77,207
	RSUs Granted	1,082		34.5
	RSUs Vested	(215	)	41.36
	RSUs Cancelled/Forfeited	(108	)	32.7
	Balance as of March 31, 2015	3,119		$	33.18		$	79,922
Schedule of weighted average grant date fair value of RSU granted and the total fair value
	The weighted average grant date fair value of RSUs granted and the total intrinsic value of RSUs that vested during the periods presented were as follows (in thousands, except weighted average grant date fair value):
		Three Months
		Ended March 31,
		2015			2014
	Weighted average grant date fair value of RSUs granted	$	34.50		$	41.57
	Total intrinsic value of vested RSUs	$	6,029		$	195
Schedule of market performance based compensation restricted stock units (MSU) award activity
		Number of Shares		Weighted Average			Weighted Average		Aggregate
		Underlying MSUs		Grant Date			Remaining Vesting		Intrinsic
				Fair Value			Period		Value
		(in thousands)					(in years)		(in thousands)
	Balance as of December 31, 2014	—		$	—		—		$	—
	MSUs Granted	240		37.53
	MSUs Vested	—		—
	MSUs Cancelled/Forfeited	—		—
	Balance as of March 31, 2015	240		$	37.53		1.88		$	6,144
Schedule of weighted average assumptions used to estimate fair value of market performance based compensation restricted stock units (MSU) awards
		Three Months
		Ended March 31, 2015
	Expected term (in years)	3
	Risk-free interest rate	0.99%
	Expected volatility	39%
	Expected dividend rate	0%
Schedule of assumptions used to value employee stock purchase rights under the Black-Scholes model
		Three Months
		Ended March 31,
		2015		2014
	Expected term (in months)	6		9-Jun
	Risk-free interest rate	0.05 - 0.07%		0.08% - 0.11%
	Expected volatility	39% - 43%		41% - 42%
	Expected dividend rate	0%		0%
Schedule of stock-based compensation expense included in operating results
	The stock-based compensation expense included in operating results was allocated as follows (in thousands):
		Three Months
		Ended March 31,
		2015			2014
	Cost of subscription and support revenue	$	619		$	384
	Cost of professional services and other revenue	937			447
	Research and development	2,316			1,079
	Sales and marketing	2,802			1,779
	General and administrative	2,607			1,318
	Total stock-based compensation expense	$	9,281		$	5,007
Schedule of total unrecognized compensation cost related to unvested awards not yet recognized under all equity compensation plans, adjusted for estimate forfeitures
		March 31, 2015
		Unrecognized			Average Expected
		Expense			Recognition Period
		(in thousands)			(in years)
	Stock options	$	16,493		1.94
	Restricted stock units and market stock units	79,485			3.12
	Employee stock purchase plan	585			0.38
	Total unrecognized stock-based compensation expense	$	96,563		2.90

Net_Loss_per_Share_Tables

Net Loss per Share (Tables)	3 Months Ended
	Mar. 31, 2015
Net Loss per Share
Schedule of computation of basic and diluted net loss per share of common stock
		Three Months
		Ended March 31,
		2015			2014
		(in thousands, except per share amount)
	Numerator:
	Net loss attributable to Marketo	$	(18,158	)	$	(12,509	)
	Denominator:
	Weighted-average common shares outstanding	41,815			39,628
	Less: Weighted-average unvested common shares subject to repurchase or forfeiture and shares held in escrow	(202		)	(249		)
	Weighted-average shares used in computing net loss per share of common stock, basic and diluted	41,613			39,379
	Net loss per share of common stock, basic and diluted	$	(0.44	)	$	(0.32	)
Schedule of potentially dilutive securities excluded from the diluted per share calculation
		As of March 31,
		2015		2014
		(in thousands)
	Stock options to purchase common stock	4,969		6,166
	Employee stock purchase plan	120		124
	Common stock held in escrow	159		137
	Common stock subject to repurchase	39		104
	Restricted stock units and market stock units	3,359		1,471
		8,646		8,002

Segment_Information_and_Inform1

Segment Information and Information about Geographic Areas (Tables)	3 Months Ended
	Mar. 31, 2015
Segment Information and Information about Geographic Areas
Schedule of revenue by geographic region
		Three Months
		Ended March 31,
		2015		2014
		(in thousands)
	United States	$	39,265	$	27,350
	EMEA	3,152		2,656
	Other	3,583		2,286
	Total	$	46,000	$	32,292
Schedule of long-lived assets by geographic areas
		March 31,		December 31,
		2015		2014
		(in thousands)
	United States	$	17,074	$	16,265
	EMEA	232		209
	Other	366		358
	Total	$	17,672	$	16,832

Joint_Venture_Details

Joint Venture (Details)	3 Months Ended			1 Months Ended				3 Months Ended	1 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2015	Mar. 31, 2015	Mar. 31, 2015	Feb. 28, 2014	Feb. 28, 2014	Mar. 31, 2015	Mar. 31, 2015	Mar. 31, 2015
	USD ($)	USD ($)	Marketo KK	Marketo KK	Marketo KK	Investors	Investors	Investors	Investors	Investors
			USD ($)	Vesting milestones	Vesting milestones	USD ($)	JPY (¥)		Vesting milestones	Vesting milestones
				USD ($)	JPY (¥)				USD ($)	JPY (¥)
Joint Venture
Amount contributed by investors to acquire equity interests	$1,678,000	$1,953,000				$2,000,000	¥ 200,000,000
Equity interests held by company (as a percent)				60.10%	60.10%
Contributions to subscribe to additional shares				2,000,000	237,480,955				1,700,000	200,000,000
Percentage of equity interest held by investors						35.40%	35.40%		39.90%	39.90%
Percentage of the common stock callable or puttable beginning on the seventh anniversary								20.00%
Percentage of the common stock callable or puttable beginning on the eighth anniversary								40.00%
Percentage of the common stock callable or puttable beginning on the tenth anniversary								100.00%
Redeemable non-controlling interests
Estimated redemption value of call/put option embedded in redeemable non-controlling interests			1,100,000
Increase due to investment by redeemable non-controlling interests	$1,445,000

Fair_Value_of_Financial_Instru2

Fair Value of Financial Instruments (Details) (Recurring basis, USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, unless otherwise specified
Level 1
Fair Value of Financial Instruments
Total fair value of financial assets	$94,037	$104,021
Level 1 | Money market funds
Fair Value of Financial Instruments
Total fair value of financial assets	94,037	104,021
Level 2
Fair Value of Financial Instruments
Total fair value of financial assets	25	25
Level 2 | Certificates of deposit
Fair Value of Financial Instruments
Total fair value of financial assets	$25	$25

Balance_Sheet_Components_Detai

Balance Sheet Components (Details) (USD $)	Mar. 31, 2015	Dec. 31, 2014	Mar. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Cash and cash equivalents
Cash	$9,706	$8,598
Cash equivalents:
Money market funds	94,037	104,021
Certificates of deposit	25	25
Total cash equivalents	94,062	104,046
Cash and cash equivalents	103,768	112,644	119,572	112,644	128,299
Accounts Receivable
Accounts receivable	40,670	38,260
Allowance for doubtful accounts	-481	-393
Accounts receivable, net	40,189	37,867
Property and equipment, net
Total property and equipment	32,695	29,740
Less accumulated depreciation	-15,023	-12,908
Property and equipment, net	17,672	16,832
Computer equipment
Property and equipment, net
Total property and equipment	20,201	18,384
Software
Property and equipment, net
Total property and equipment	2,526	2,417
Office furniture
Property and equipment, net
Total property and equipment	2,313	2,071
Leasehold improvements
Property and equipment, net
Total property and equipment	5,326	5,123
Construction in progress
Property and equipment, net
Total property and equipment	$2,329	$1,745

Balance_Sheet_Components_Detai1

Balance Sheet Components (Details 2) (USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, unless otherwise specified
Accrued expenses and other current liabilities
Accrued bonuses, commissions and wages	$8,403	$10,553
Accrued ESPP	1,045	2,324
Accrued vacation	3,537	2,972
Accrued marketing expenses	1,179	1,313
Accrued other	5,953	3,529
Total	$20,117	$20,691

Goodwill_and_Intangible_Assets2

Goodwill and Intangible Assets (Details) (USD $)	3 Months Ended		12 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Goodwill and Intangible Assets
Intangible assets, gross	$12,255		$11,222
Less accumulated amortization	-4,882		-4,146
Net Carrying Amount	7,373		7,076
Goodwill	29,201		29,201
Goodwill and intangible assets, net	36,574		36,277
Amortization expense	736	517
Estimated future amortization
Nine Months Ending December 31, 2015	2,670
2016	2,802
2017	1,772
2018	100
2019	29
Net Carrying Amount	7,373		7,076
Developed technology
Goodwill and Intangible Assets
Intangible assets, gross	6,050		6,050
Net Carrying Amount	4,045
Weighted Average Remaining Useful Life	2 years 8 months 12 days		2 years 10 months 24 days
Estimated future amortization
Nine Months Ending December 31, 2015	1,131
2016	1,508
2017	1,406
Net Carrying Amount	4,045
Domain names
Goodwill and Intangible Assets
Intangible assets, gross	950		950
Net Carrying Amount	546
Weighted Average Remaining Useful Life	3 years 4 months 24 days		3 years 7 months 6 days
Estimated future amortization
Nine Months Ending December 31, 2015	137
2016	180
2017	100
2018	100
2019	29
Net Carrying Amount	546
Customer relationships
Goodwill and Intangible Assets
Intangible assets, gross	1,600		1,600
Net Carrying Amount	725
Weighted Average Remaining Useful Life	1 year 4 months 24 days		1 year 7 months 6 days
Estimated future amortization
Nine Months Ending December 31, 2015	410
2016	315
Net Carrying Amount	725
Non-compete agreements
Goodwill and Intangible Assets
Intangible assets, gross	580		580
Net Carrying Amount	407
Weighted Average Remaining Useful Life	2 years 8 months 12 days		3 years
Estimated future amortization
Nine Months Ending December 31, 2015	113
2016	150
2017	144
Net Carrying Amount	407
Capitalized software development costs
Goodwill and Intangible Assets
Intangible assets, gross	3,075		2,042
Net Carrying Amount	1,650
Weighted Average Remaining Useful Life	1 year 7 months 6 days		1 year 2 months 12 days
Estimated future amortization
Nine Months Ending December 31, 2015	879
2016	649
2017	122
Net Carrying Amount	$1,650

Stockholders_Equity_and_Redeem2

Stockholders Equity and Redeemable Noncontrolling Interests (Details) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Increase (Decrease) in Shareholders' Equity
Balance	$113,176,000
Issuance of common stock upon exercise and early exercise of stock options	965,000
Issuance of common stock under employee stock purchase plan	2,885,000
Investment by redeemable non-controlling interests	233,000
Vesting of early exercised options	42,000	115,000
Stock-based compensation expense	9,795,000
Net loss	-18,158,000	-12,509,000
Foreign currency translation adjustments	86,000
Balance	109,024,000
Redeemable Non-controlling Interests
Balance	800,000
Investment by redeemable non-controlling interests	1,445,000
Net loss attributable to redeemable noncontrolling interests	-454,000	-11,000
Foreign currency translation adjustments	3,000
Balance	1,794,000
Capitalized stock-based compensation associated with internal-use software projects	$500,000

Credit_Facility_Details

Credit Facility (Details) (USD $)	1 Months Ended
In Millions, unless otherwise specified	31-May-12	Mar. 31, 2015	Dec. 31, 2014	Jun. 30, 2013
	item
Equipment facility
Credit facility
Outstanding loan		$4.70	$5.40
Original Line of Credit
Credit facility
Maximum borrowing capacity	4
Minimum interest rate (as a percent)	4.00%
Percentage points above prime rate considered for determining interest rate	0.75%
Interest payment period	9 months
Number of equal monthly principal and interest payments	36
Percentage of increase in interest rate basis of existence of an event as per loan and security agreement	5.00%
New line of credit
Credit facility
Maximum borrowing capacity				$4.50

Commitments_and_Contingencies_1

Commitments and Contingencies (Details) (USD $)	1 Months Ended
	Feb. 28, 2015	Mar. 31, 2015	Jan. 31, 2015
	sqft	sqft
Leases and contractual obligations
Future minimum lease payments		$22,281,000
Future minimum lease payments
2015 (remaining 9 months)		4,390,000
2016		6,359,000
2017		6,529,000
2018		4,533,000
2019		470,000
Total		22,281,000
Sydney, Australia lease agreement
Leases and contractual obligations
Area of office space (in square feet)	6,448
Future minimum lease payments	1,000,000
Term of operating lease	36 months
Future minimum lease payments
Total	1,000,000
Tokyo, Japan lease agreement
Leases and contractual obligations
Area of office space (in square feet)		4,147
Future minimum lease payments		1,400,000
Term of operating lease		42 months
Future minimum lease payments
Total		1,400,000
Customer relationship management vendor
Leases and contractual obligations
Contractual Obligation			4,000,000
Term of contractual obligation (in months)			36 months
Data center vendor
Leases and contractual obligations
Contractual Obligation			$1,400,000
Term of contractual obligation (in months)			36 months

Stockholders_Equity_and_Stock_2

Stockholder's Equity and Stock Based Compensation (Details) (USD $)	3 Months Ended		12 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Stockholder's Equity and Stock Based Compensation
Common stock, shares authorized	1,000,000,000
Common stock, par value (in dollars per share)	$0.00
Preferred stock, shares authorized	20,000,000
Preferred stock, par value (in dollars per share)	$0.00
Common stock, shares issued	42,100,000
Common stock, shares outstanding	42,100,000
Stock options to purchase common stock
Number of Stock Options Outstanding
Balance at the beginning of the period (in shares)	5,404,000
Exercised (in shares)	-278,000
Cancelled/Forfeited (in shares)	-157,000
Balance at the end of the period (in shares)	4,969,000		5,404,000
Exercisable at the end of the period (in shares)	4,163,000
Vested and expected to vest at the end of the period (in shares)	4,682,000
Weighted-Average Exercise Price
Balance at the beginning of the period (in dollars per share)	$11.55
Exercised (in dollars per share)	$3.47
Cancelled/Forfeited (in dollars per share)	$12.79
Balance at end of the period (in dollars per share)	$11.96		$11.55
Exercisable at the end of the period (in dollars per share)	$7.27
Vested and expected to vest at the end of the period (in dollars per share)	$11.50
Weighted-Average Remaining Contractual Life
Outstanding at the beginning of the period	7 years 2 months 5 days		7 years 6 months 22 days
Outstanding at the end of the period	7 years 2 months 5 days		7 years 6 months 22 days
Exercisable at the end of the period	7 years 4 days
Vested and expected to vest at the end of the period	7 years 1 month 17 days
Aggregate Intrinsic Value
Outstanding at the beginning of the period	$120,595,000
Outstanding at the end of the period	80,350,000		120,595,000
Exercisable at the end of the period	79,948,000
Vested and expected to vest at the end of the period	77,198,000
Closing stock price (in dollars per share)	$25.62
Additional information
Weighted average grant date fair value (in dollars per share)		$21.78
Total intrinsic value of options exercised	7,583,000	28,623,000
Total estimated grant date fair value of options vested	$5,700,000
Stock options to purchase common stock | 2006 Stock Plan
Additional information
Vesting period	4 years
Percentage of awards which will vest after one year	25.00%

Stockholders_Equity_and_Stock_3

Stockholder's Equity and Stock Based Compensation (Details 1) (USD $)	3 Months Ended
In Thousands, except Share data, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Employee Stock Purchase Plan
Additional information
Average purchase price of shares issued (in dollars per share)	23.87
Issuance of common stock under employee stock purchase plan	100,000
Employee Stock Purchase Plan | Minimum
Valuation assumptions
Expected term		6 months
Risk-free interest rate (as a percent)	0.05%	0.08%
Expected volatility (as a percent)	39.00%	41.00%
Employee Stock Purchase Plan | Maximum
Valuation assumptions
Expected term	6 months	9 months
Risk-free interest rate (as a percent)	0.07%	0.11%
Expected volatility (as a percent)	43.00%	42.00%
Expected dividend rate (as a percent)	0.00%	0.00%
Estimate of fair value of options member
Valuation assumptions
Expected term		6 years
Risk-free interest rate (as a percent)		1.84%
Expected volatility (as a percent)		56.00%
Expected dividend rate (as a percent)		0.00%
Stock options to purchase common stock
Additional information
Closing stock price (in dollars per share)	25.62
RSUs
Number of RSUs
Balance at the beginning of the period (in shares)	2,360,000
RSUs Granted (in shares)	1,082,000
RSUs Vested (in shares)	-215,000
RSUs Cancelled/Forfeited (in shares)	-108,000
Balance at the end of the period (in shares)	3,119,000
Average Grant Date Fair Value
Balance at the beginning of the period (in dollars per share)	33.3
RSUs Granted (in dollars per share)	34.5	41.57
RSUs Vested (in dollars per share)	41.36
RSUs Cancelled/Forfeited (in dollars per share)	32.7
Balance at the end of the period (in dollars per share)	33.18
Aggregate Intrinsic Value
Balance at the beginning of the period (in dollars)	77,207
Balance at the end of the period (in dollars)	79,922
Additional information
RSUs Granted (in dollars per share)	34.5	41.57
Total intrinsic value of vested RSUs	6,029	195
Closing stock price (in dollars per share)	25.62
RSUs | Minimum
Aggregate Intrinsic Value
Vesting period	3 years
RSUs | Maximum
Aggregate Intrinsic Value
Vesting period	4 years

Stockholders_Equity_and_Stock_4

Stockholder's Equity and Stock Based Compensation (Details2) (MSU's, Executive Officers, USD $)	3 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Mar. 31, 2015
	item
Valuation assumptions
Expected term	3 years
Risk-free interest rate (as a percent)	0.99%
Expected volatility (as a percent)	39.00%
Expected dividend rate (as a percent)	0.00%
Number of shares underlying MSU's
Granted to employees (in shares)	240
Balance at the end of the period (in shares)	240
Average Grant Date Fair Value
Granted (in dollars per share)	$37.53
Balance at the end of the period (in dollars per share)	$37.53
Weighted average remaining vesting period (in years)
Balance at the beginning of the period (in years)	1 year 10 months 17 days
Balance at the end of the period (in years)	1 year 10 months 17 days
Aggregate Intrinsic Value
Balance at the end of the period (in dollars)	$6,144
Additional information
Number of separate tranches	3
Vesting period	1 year 10 months 17 days
Closing stock price (in dollars per share)	$25.62
Tranche one
Additional information
Percent of shares in tranche that can be received	100.00%
Grant date fair value per share	$9.10
Tranche two
Additional information
Percent of shares in tranche that can be received	100.00%
Grant date fair value per share	$8.68
Tranche three
Additional information
Percent of shares in tranche that can be received	150.00%
Grant date fair value per share	$19.75
Minimum
Additional information
Vesting period for each tranche (in years)	1 year
Maximum
Additional information
Vesting period for each tranche (in years)	3 years

Stockholders_Equity_and_Stock_5

Stockholder's Equity and Stock Based Compensation (Details 3) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Stock Compensation Expense
Total stock-based compensation expense	$9,281,000	$5,007,000
Capitalized stock-based compensation expense	500,000
Total unrecognized compensation cost related to unvested awards not yet recognized
Unrecognized Expense	96,563,000
Expected Recognition Period	2 years 10 months 24 days
Employee Stock Purchase Plan
Stock Compensation Expense
Total stock-based compensation expense	400,000
Total unrecognized compensation cost related to unvested awards not yet recognized
Unrecognized Expense	585,000
Expected Recognition Period	4 months 17 days
Stock options to purchase common stock
Stock Compensation Expense
Total stock-based compensation expense	2,300,000
Total unrecognized compensation cost related to unvested awards not yet recognized
Unrecognized Expense	16,493,000
Expected Recognition Period	1 year 11 months 9 days
RSUs
Stock Compensation Expense
Total stock-based compensation expense	6,500,000
Total unrecognized compensation cost related to unvested awards not yet recognized
Unrecognized Expense	79,485,000
Expected Recognition Period	3 years 1 month 13 days
MSU's
Stock Compensation Expense
Total stock-based compensation expense	600,000
Cost of subscription and support revenue
Stock Compensation Expense
Total stock-based compensation expense	619,000	384,000
Cost of professional services and other revenue
Stock Compensation Expense
Total stock-based compensation expense	937,000	447,000
Research and development
Stock Compensation Expense
Total stock-based compensation expense	2,316,000	1,079,000
Sales and marketing
Stock Compensation Expense
Total stock-based compensation expense	2,802,000	1,779,000
General and administrative
Stock Compensation Expense
Total stock-based compensation expense	2,607,000	1,318,000
Internal use software projects
Stock Compensation Expense
Capitalized stock-based compensation expense	500,000
Internal use software projects | RSUs
Stock Compensation Expense
Stock-based compensation from performance based restricted stock units	$700,000

Net_Loss_per_Share_Details

Net Loss per Share (Details) (USD $)	3 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Numerator:
Net loss	($18,612)	($12,520)
Less net loss attributable to redeemable non-controlling interests	-454	-11
Net loss attributable to Marketo	($18,158)	($12,509)
Denominator:
Weighted-average common shares outstanding	41,815	39,628
Less: Weighted-average unvested common shares subject to repurchase or forfeiture and shares held in escrow	-202	-249
Weighted-average shares used in computing net loss per share of common stock, basic and diluted	41,613	39,379
Net loss per share of common stock, basic and diluted (in dollars per share)	($0.44)	($0.32)
Potentially dilutive securities that were excluded from the diluted per share
Potentially dilutive securities excluded from the diluted per share calculation	8,646	8,002
Stock options to purchase common stock
Potentially dilutive securities that were excluded from the diluted per share
Potentially dilutive securities excluded from the diluted per share calculation	4,969	6,166
Employee Stock Purchase Plan
Potentially dilutive securities that were excluded from the diluted per share
Potentially dilutive securities excluded from the diluted per share calculation	120	124
Common stock held in escrow
Potentially dilutive securities that were excluded from the diluted per share
Potentially dilutive securities excluded from the diluted per share calculation	159	137
Common stock subject to repurchase
Potentially dilutive securities that were excluded from the diluted per share
Potentially dilutive securities excluded from the diluted per share calculation	39	104
RSUs
Potentially dilutive securities that were excluded from the diluted per share
Potentially dilutive securities excluded from the diluted per share calculation	3,359	1,471

Income_Taxes_Details

Income Taxes (Details) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Provision for income taxes
(Benefit) provision for income taxes	($212,000)	$14,000
Income tax benefit for current year losses due to maintaining a full valuation allowance	0	0
Components of deferred tax assets and liabilities
Increase in net valuation allowance		$0

Segment_Information_and_Inform2

Segment Information and Information about Geographic Areas (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
	item
Segment Information and Information about Geographic Areas
Number of business segment	1
Revenue and long-lived assets by geographic area
Revenue	$46,000	$32,292
Long-lived assets	17,672	16,832
United States
Revenue and long-lived assets by geographic area
Revenue	39,265	27,350
Long-lived assets	17,074	16,265
EMEA
Revenue and long-lived assets by geographic area
Revenue	3,152	2,656
Long-lived assets	232	209
Other
Revenue and long-lived assets by geographic area
Revenue	3,583	2,286
Long-lived assets	$366	$358