Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 23, 2018 | Jun. 30, 2017 | |
Document And Entity Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | CarGurus, Inc. | ||
Trading Symbol | CARG | ||
Entity Central Index Key | 1,494,259 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Public Float | $ 771,446,882 | ||
Class A Common Stock | |||
Document And Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 77,890,576 | ||
Class B Common Stock | |||
Document And Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 28,235,290 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets | ||
Cash and cash equivalents | $ 87,709 | $ 29,476 |
Investments | 50,000 | 44,774 |
Accounts receivable, net of allowance for doubtful accounts of $494 and $164, respectively | 12,577 | 6,653 |
Prepaid income taxes | 1,533 | 1,815 |
Prepaid expenses and other current assets | 5,385 | 2,789 |
Total current assets | 157,204 | 85,507 |
Property and equipment, net | 16,563 | 12,780 |
Restricted cash | 1,843 | 2,044 |
Deferred tax assets | 825 | |
Other long–term assets | 159 | |
Total assets | 176,594 | 100,331 |
Current liabilities | ||
Accounts payable | 23,908 | 16,426 |
Accrued expenses | 13,588 | 8,384 |
Deferred revenue | 4,305 | 3,330 |
Deferred rent | 1,165 | 910 |
Total current liabilities | 42,966 | 29,050 |
Deferred rent, net of current portion | 5,648 | 5,673 |
Deferred tax liabilities | 292 | |
Other non–current liabilities | 955 | 590 |
Total liabilities | 49,569 | 35,605 |
Commitments and contingencies (Note 6) | ||
Convertible preferred stock | 132,698 | |
Stockholders’ equity: | ||
Additional paid–in capital | 185,190 | 3,714 |
Accumulated deficit | (58,499) | (71,698) |
Accumulated other comprehensive income (loss) | 228 | (30) |
Total stockholders’ equity (deficit) | 127,025 | (67,972) |
Total liabilities, convertible preferred stock, and stockholders’ equity (deficit) | 176,594 | 100,331 |
Class A Common Stock | ||
Stockholders’ equity: | ||
Common stock | 78 | 14 |
Class B Common Stock | ||
Stockholders’ equity: | ||
Common stock | $ 28 | $ 28 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Allowance for doubtful accounts | $ 494 | $ 164 |
Class A Common Stock | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 77,884,754 | 14,022,132 |
Common stock, shares outstanding | 77,884,754 | 14,022,132 |
Class B Common Stock | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 28,226,104 | 28,044,264 |
Common stock, shares outstanding | 28,226,104 | 28,044,264 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Income Statement [Abstract] | ||||
Revenue | $ 316,861 | $ 198,141 | $ 98,588 | |
Cost of revenue | [1] | 17,609 | 9,575 | 4,234 |
Gross profit | 299,252 | 188,566 | 94,354 | |
Operating expenses: | ||||
Sales and marketing | 236,165 | 154,125 | 81,877 | |
Product, technology, and development | 22,470 | 11,453 | 8,235 | |
General and administrative | 22,688 | 12,783 | 5,801 | |
Depreciation and amortization | 2,655 | 1,634 | 969 | |
Total operating expenses | 283,978 | 179,995 | 96,882 | |
Income (loss) from operations | 15,274 | 8,571 | (2,528) | |
Other income (expense), net | 563 | 374 | (12) | |
Income (loss) before income taxes | 15,837 | 8,945 | (2,540) | |
Provision for (benefit from) income taxes | 2,638 | 2,448 | (904) | |
Net income (loss) | 13,199 | 6,497 | (1,636) | |
Reconciliation of net income (loss) to net income (loss) attributable to common stockholders: | ||||
Net income (loss) | 13,199 | 6,497 | (1,636) | |
Deemed dividend to preferred stockholders | (32,087) | (15,930) | ||
Net income attributable to participating securities | (6,098) | |||
Net income (loss) attributable to common stockholders — basic | 7,101 | (25,590) | (17,566) | |
Net income (loss) | 13,199 | 6,497 | (1,636) | |
Deemed dividend to preferred stockholders | (32,087) | (15,930) | ||
Net income attributable to participating securities | (5,829) | |||
Net income (loss) attributable to common stockholders — diluted | $ 7,370 | $ (25,590) | $ (17,566) | |
Net income (loss) per share attributable to common stockholders: (Note 9) | ||||
Basic | $ 0.13 | $ (0.58) | $ (0.41) | |
Diluted | $ 0.12 | $ (0.58) | $ (0.41) | |
Weighted–average number of shares of common stock used in computing net income (loss) per share attributable to common stockholders: | ||||
Basic | 55,835,265 | 44,138,922 | 43,141,236 | |
Diluted | 60,637,584 | 44,138,922 | 43,141,236 | |
[1] | Includes depreciation and amortization expense for the years ended December 31, 2017, 2016, and 2015 of $1,140, $438, and $153, respectively. |
Consolidated Statements of Ope5
Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement [Abstract] | |||
Depreciation and amortization expense | $ 1,140 | $ 438 | $ 153 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net income (loss) | $ 13,199 | $ 6,497 | $ (1,636) |
Other comprehensive income (loss): | |||
Foreign currency translation adjustment | 258 | (30) | |
Comprehensive income (loss) | $ 13,457 | $ 6,467 | $ (1,636) |
Consolidated Statements of Conv
Consolidated Statements of Convertible Preferred Stock and Stockholders' Equity (Deficit) - USD ($) $ in Thousands | Total | Series A Preferred Stock | Series B Preferred Stock | Series C Preferred Stock | Series D Preferred Stock | Series E Preferred Stock | Member Units | Common StockClass A Common Stock | Common StockClass B Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Retained Earnings (Accumulated Deficit) |
Beginning balance at Dec. 31, 2014 | $ 7,878 | $ 5,864 | $ 175 | $ 1,839 | ||||||||
Beginning balance, Shares at Dec. 31, 2014 | 14,764,149 | |||||||||||
Issuance of member units upon exercise of unit options | 59 | $ 59 | ||||||||||
Issuance of member units upon exercise of unit options, Shares | 1,017,583 | |||||||||||
Conversion from LLC to Corporation | (5,750) | $ 15 | $ 30 | 1,185 | (1,057) | |||||||
Convertible preferred stock, Conversion from LLC to Corporation, Shares | 3,333,000 | 3,329,497 | 1,648,978 | |||||||||
Convertible preferred stock, Conversion from LLC to Corporation | $ 1,750 | $ 2,600 | $ 1,400 | |||||||||
Member units, Conversion from LLC to Corporation, Shares | (15,781,732) | |||||||||||
Member units, Conversion from LLC to Corporation | $ (5,923) | |||||||||||
Conversion from LLC to Corporation, Shares | 14,940,514 | 29,881,028 | ||||||||||
Net income (loss) | (1,636) | (1,636) | ||||||||||
Convertible preferred stock, Issuance of preferred stock, net of issuance costs, Shares | 1,673,105 | |||||||||||
Convertible preferred stock, Issuance of preferred stock, net of issuance costs | $ 67,872 | |||||||||||
Repurchase of stock | (17,756) | $ (149) | $ (26) | $ (69) | (17,756) | |||||||
Repurchase of stock, Shares | (283,394) | (33,443) | (81,123) | (64,556) | (129,112) | |||||||
Issuance of common stock upon exercise of stock options | 8 | 8 | ||||||||||
Issuance of common stock upon exercise of stock options, Shares | 3,996 | 7,992 | ||||||||||
Tax benefit related to exercise of stock options | 26 | 26 | ||||||||||
Stock–based compensation expense | 1,040 | 1,040 | ||||||||||
Ending balance at Dec. 31, 2015 | (16,131) | $ 15 | $ 30 | 2,434 | (18,610) | |||||||
Convertible preferred stock, Ending balance, Shares at Dec. 31, 2015 | 3,049,606 | 3,296,054 | 1,567,855 | 1,673,105 | ||||||||
Convertible preferred stock, Ending balance at Dec. 31, 2015 | $ 1,601 | $ 2,574 | $ 1,331 | $ 67,872 | ||||||||
Ending balance, Shares at Dec. 31, 2015 | 14,879,954 | 29,759,908 | ||||||||||
Net income (loss) | 6,497 | 6,497 | ||||||||||
Convertible preferred stock, Issuance of preferred stock, net of issuance costs, Shares | 1,107,202 | |||||||||||
Convertible preferred stock, Issuance of preferred stock, net of issuance costs | $ 59,732 | |||||||||||
Repurchase of stock | (59,588) | $ (118) | $ (279) | $ (15) | $ (1) | $ (2) | (59,585) | |||||
Repurchase of stock, Shares | (224,903) | (357,568) | (17,243) | (899,046) | (1,798,092) | |||||||
Issuance of common stock upon exercise of stock options and vesting of restricted stock units | 137 | 137 | ||||||||||
Issuance of common stock upon exercise of stock options and vesting of restricted stock units, Shares | 41,224 | 82,448 | ||||||||||
Tax benefit related to exercise of stock options | 821 | 821 | ||||||||||
Stock–based compensation expense | 322 | 322 | ||||||||||
Foreign currency translation adjustment | (30) | $ (30) | ||||||||||
Ending balance at Dec. 31, 2016 | (67,972) | $ 14 | $ 28 | 3,714 | (30) | (71,698) | ||||||
Convertible preferred stock, Ending balance, Shares at Dec. 31, 2016 | 2,824,703 | 2,938,486 | 1,550,612 | 1,673,105 | 1,107,202 | |||||||
Convertible preferred stock, Ending balance at Dec. 31, 2016 | 132,698 | $ 1,483 | $ 2,295 | $ 1,316 | $ 67,872 | $ 59,732 | ||||||
Ending balance, Shares at Dec. 31, 2016 | 14,022,132 | 28,044,264 | ||||||||||
Net income (loss) | 13,199 | 13,199 | ||||||||||
Issuance of stock, net of issuance/offering costs | 43,240 | $ 3 | 43,237 | |||||||||
Issuance of stock, net of issuance/offering costs, Shares | 3,205,000 | |||||||||||
Issuance of common stock upon exercise of stock options | 398 | 398 | ||||||||||
Issuance of common stock upon exercise of stock options, Shares | 92,944 | 181,840 | ||||||||||
Stock–based compensation expense | 5,204 | 5,204 | ||||||||||
Conversion of preferred stock | 132,698 | $ 61 | 132,637 | |||||||||
Convertible preferred stock, Conversion of preferred stock, Shares | (2,824,703) | (2,938,486) | (1,550,612) | (1,673,105) | (1,107,202) | |||||||
Convertible preferred stock, Conversion of preferred stock | $ (1,483) | $ (2,295) | $ (1,316) | $ (67,872) | $ (59,732) | |||||||
Conversion of preferred stock, Shares | 60,564,678 | |||||||||||
Foreign currency translation adjustment | 258 | 258 | ||||||||||
Ending balance at Dec. 31, 2017 | $ 127,025 | $ 78 | $ 28 | $ 185,190 | $ 228 | $ (58,499) | ||||||
Ending balance, Shares at Dec. 31, 2017 | 77,884,754 | 28,226,104 |
Consolidated Statements of Con8
Consolidated Statements of Convertible Preferred Stock and Stockholders' Equity (Deficit) (Parenthetical) - USD ($) $ in Thousands | Aug. 23, 2016 | Jul. 07, 2015 | Dec. 31, 2016 | Dec. 31, 2015 |
Series D Preferred Stock | ||||
Stock issuance costs | $ 128 | $ 130 | ||
Series E Preferred Stock | ||||
Stock issuance costs | $ 268 | $ 280 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating Activities | |||
Net income (loss) | $ 13,199 | $ 6,497 | $ (1,636) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 3,795 | 2,072 | 1,122 |
Unrealized currency loss on foreign denominated transactions | 128 | ||
Deferred taxes | (1,117) | 782 | (649) |
Provision for doubtful accounts | 1,117 | 508 | 284 |
Stock–based compensation expense | 5,028 | 322 | 1,040 |
Excess tax benefit related to exercise of stock options | (821) | (26) | |
Changes in operating assets and liabilities: | |||
Accounts receivable, net | (7,039) | (1,432) | (716) |
Prepaid expenses, prepaid income taxes, and other assets | (2,287) | (2,226) | (820) |
Accounts payable | 6,244 | 5,811 | 6,104 |
Accrued expenses | 5,191 | 4,118 | 2,469 |
Deferred revenue | 962 | 1,856 | 1,089 |
Deferred rent | 227 | 1,927 | 4,654 |
Other non–current liabilities | 243 | 590 | |
Net cash provided by operating activities | 25,691 | 20,004 | 12,915 |
Investing Activities | |||
Purchases of property and equipment | (5,157) | (5,846) | (6,353) |
Capitalization of website development costs | (2,215) | (1,372) | (1,262) |
Investments in certificates of deposit | (50,000) | (59,774) | |
Maturities of certificates of deposit | 44,774 | 15,000 | |
Net cash used in investing activities | (12,598) | (51,992) | (7,615) |
Financing Activities | |||
Initial public offering proceeds, net of offering costs paid of $3,308 | 44,382 | ||
Proceeds from issuance of preferred stock, net of offering costs | 59,732 | 67,872 | |
Proceeds from exercise of unit options and stock options | 398 | 137 | 67 |
Excess tax benefit related to exercise of stock options | 821 | 26 | |
Cash paid for repurchase of preferred stock, common stock, and vested options | (60,000) | (18,000) | |
Net cash provided by financing activities | 44,780 | 690 | 49,965 |
Impact of foreign currency on cash, cash equivalents, and restricted cash | 159 | (45) | |
Net increase (decrease) in cash, cash equivalents, and restricted cash | 58,032 | (31,343) | 55,265 |
Cash, cash equivalents, and restricted cash at beginning of period | 31,520 | 62,863 | 7,598 |
Cash, cash equivalents, and restricted cash at end of period | 89,552 | 31,520 | 62,863 |
Supplemental disclosure of cash flow information: | |||
Cash paid for income taxes | 4,393 | 2,045 | 316 |
Cash paid for interest | 29 | 26 | $ 17 |
Supplemental disclosure of non–cash investing and financing activities: | |||
Unpaid purchases of property and equipment | 510 | $ 476 | |
Unpaid initial public offering costs | 1,142 | ||
Capitalized stockholders' compensation in website development costs | $ 176 |
Consolidated Statements of Ca10
Consolidated Statements of Cash Flows (Parenthetical) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Statement Of Cash Flows [Abstract] | |
Initial public offering cost | $ 3,308 |
Organization and Business Descr
Organization and Business Description | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Organization and Business Description | 1. Organization and Business Description CarGurus, Inc. (the “Company”), is a global, online automotive marketplace connecting buyers and sellers of new and used cars. Using proprietary technology, search algorithms, and innovative data analytics, the Company provides information and analysis that create a differentiated automotive search experience for consumers. The Company’s marketplace empowers users worldwide with unbiased third-party validation on pricing and dealer reputation, as well as other useful information that aids them in finding “Great Deals from Top-Rated Dealers.” The Company is headquartered in Cambridge, Massachusetts and was incorporated in the State of Delaware on June 26, 2015. The Company operates principally in the United States and has also launched marketplaces in Canada, the United Kingdom, and Germany. The Company has wholly owned subsidiaries in the United States, Ireland, and the United Kingdom. Prior to June 26, 2015, the Company operated as CarGurus LLC and was organized on November 10, 2005 as a limited liability company under the laws of the Commonwealth of Massachusetts. In connection with the conversion into a Delaware corporation, the Class A unitholders received an equal number of shares of Class B common stock, the Class B unitholders received an equal number of shares of Series A convertible preferred stock, or Series A Preferred Stock, the Class C unitholders received an equal number of shares of Series B convertible preferred stock, or Series B Preferred Stock, and the Class D unitholders received an equal number of shares of Series C convertible preferred stock, or Series C Preferred Stock. In connection with this conversion, the Company also reclassified members' retained earnings of $1,057, accumulated under CarGurus LLC, to additional paid-in capital of CarGurus, Inc. On October 16, 2017, the Company completed its initial public offering (“IPO”), in which the Company issued and sold 3,205,000 shares of its Class A common stock, including the full exercise by the underwriters of their option to purchase 705,000 shares of Class A common stock, at a public offering price of $16.00 per share for aggregate gross proceeds of $51.3 million. The Company received $43.2 million in net proceeds after deducting $3.6 million of underwriting discounts and commissions and $4.5 million in offering costs. In addition to shares of Class A common stock issued and sold by the Company, certain selling stockholders sold an aggregate of 7,605,000 shares of Class A common stock, including the full exercise by the underwriters of their option to purchase 705,000 shares of Class A common stock, as part of the IPO. Upon the closing of the IPO, all of the outstanding shares of convertible preferred stock automatically converted into 20,188,226 shares of Class A common stock and 40,376,452 shares of Class B common stock. The 40,376,452 shares of Class B common stock subsequently converted into 40,376,452 shares of Class A common stock resulting in a total conversion of all outstanding shares of Preferred Stock into 60,564,678 shares of Class A common stock. Subsequent to the closing of the IPO, there were no shares of Preferred Stock outstanding. The Company is subject to a number of risks and uncertainties common to companies in its and similar industries and stages of development including, but not limited to, rapid technological changes, competition from substitute products and services from larger companies, management of international activities, protection of proprietary rights, patent litigation, and dependence on key individuals. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies The accompanying consolidated financial statements reflect the application of certain significant accounting policies as described below and elsewhere in these notes to the consolidated financial statements. The Company believes that a significant accounting policy is one that is both important to the portrayal of the Company’s financial condition and results, and requires management’s most difficult, subjective, or complex judgments, often as the result of the need to make estimates about the effect of matters that are inherently uncertain. Basis of Presentation The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, or GAAP. Any reference in these notes to applicable guidance is meant to refer to the authoritative U.S. generally accepted accounting principles as found in the Accounting Standards Codification, or ASC, and Accounting Standards Update, or ASU, of the Financial Accounting Standards Board, or FASB. Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All material intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Significant estimates relied upon in preparing these consolidated financial statements include revenue recognition and revenue reserves, contingent liabilities, allowances for doubtful accounts, expected future cash flows used to evaluate the recoverability of long‑lived assets, the expensing and capitalization of product, technology, and development costs for website development and internal‑use software, the determination of the fair value of stock awards issued prior to the IPO, stock‑based compensation expense, and the recoverability of the Company’s net deferred tax assets and related valuation allowance. Although the Company regularly assesses these estimates, actual results could differ materially from these estimates. Changes in estimates are recorded in the period in which they become known. The Company bases its estimates on historical experience and various other assumptions that it believes to be reasonable under the circumstances. Actual results may differ from management’s estimates if these results differ from historical experience, or other assumptions do not turn out to be substantially accurate, even if such assumptions are reasonable when made. Subsequent Events Considerations The Company considers events or transactions that occur after the balance sheet date but prior to the issuance of the financial statements to provide additional evidence relative to certain estimates or to identify matters that require additional disclosure. Subsequent events have been evaluated as required. The Company has evaluated all subsequent events and determined that there are no material recognized or unrecognized subsequent events requiring disclosure. Revenue Recognition The Company derives its revenue from two primary sources: marketplace subscription revenue, which consists of listing and display advertising subscriptions from dealers, and advertising and other revenue, which consists primarily of display advertising revenue from auto manufacturers and other auto‑related brand advertisers. The Company recognizes revenue when all of the following conditions are satisfied: (1) there is persuasive evidence of an arrangement; (2) the service has been provided to the customer; (3) the collection of fees is reasonably assured; and (4) the amount of fees to be paid by the customer is fixed or determinable. The Company offers two types of paid marketplace listing products to dealers, Enhanced and Featured Listings, which require a contractual subscription with initial terms ranging from one month to one year. Contracts for customers generally auto‑renew on a monthly basis and are cancellable by dealers with 30‑days’ advance notice at the end of current term. In addition, the arrangement allows the dealers to access a dashboard to track sales leads and manage its account. Customers do not have the right to take possession of the Company’s software. The Company recognizes revenue in accordance with ASC 605, Revenue Recognition In addition to listing dealers’ inventory on its marketplace, the Company periodically enters into multiple‑element service arrangements that provide dealers with Enhanced or Featured Listing products, as well as other advertising and customer acquisition products including display advertising, which appears on its marketplace and on other sites on the internet and requires a paid subscription under contracts with initial terms ranging from one month to one year. Contracts for customers generally auto‑renew on a monthly basis and are cancellable by dealers with 30‑days’ advance notice at the end of the current term. The Company assesses arrangements with multiple deliverables under ASU No. 2009‑13, Revenue Recognition (Topic 605), Multiple‑Deliverable Revenue Arrangements — a Consensus of the FASB Emerging Issues Task Force Advertising and other revenue consists primarily of non‑dealer display advertising revenue from auto manufacturers and other auto‑related brand advertisers sold on a cost per thousand impressions, or CPM, basis. Impressions are the number of times an advertisement is loaded on a web page. Pricing is primarily based on advertisement size and position on the Company’s mobile applications and websites, and fees are generally billed monthly. The Company recognizes such revenue as impressions are delivered. The Company does not provide minimum impression guarantees or other types of minimum guarantees in its contracts with customers. The Company sells advertising directly to auto manufacturers and other auto‑related brand advertisers, as well as indirectly through revenue sharing arrangements with advertising exchange partners. Company‑sold advertising is not subject to revenue sharing arrangements. Company‑sold advertising revenue is recognized based on the gross amount charged to the advertiser. Partner‑sold advertising revenue is recognized based on the net amount of revenue received from the content partners. Revenue from advertising sold directly by the Company to auto manufacturers and other auto‑related brand advertisers is recorded on a gross basis predominately because the Company is the primary obligor responsible for fulfilling advertisement delivery, including the acceptability of the services delivered. The Company enters into contractual arrangements directly with advertisers and is directly responsible for the fulfillment of the contractual terms and any remedy for issues with such fulfillment. The Company also has latitude in establishing the selling price with the advertiser, as the Company sells advertisements at a rate determined at its sole discretion. Advertising revenue subject to revenue sharing agreements between the Company and advertising exchange partners is recognized based on the net amount of revenue received from the partner predominately because the advertising partner, and not the Company, is the primary obligor responsible for fulfillment, including the acceptability of the services delivered. In partner‑sold advertising arrangements, the advertising partner has a direct contractual relationship with the advertiser. There is no contractual relationship between the Company and the advertiser for partner‑sold transactions. When an advertising exchange partner sells advertisements, the partner is responsible for fulfilling the advertisements, and accordingly, the Company has determined the advertising partner is the primary obligor. Additionally, the Company does not have any latitude in establishing the price with the advertiser for partner‑sold advertising. Revenue is presented net of any taxes collected from customers. The Company establishes sales allowances at the time of revenue recognition based on its history of adjustments and credits provided to its customers. Sales allowances relate primarily to credits issued for service interruption. In assessing the adequacy of the sales allowance, the Company evaluates its history of adjustments and credits made through the date of the issuance of the financial statements. Estimated sales adjustments and credits and ultimate losses may vary from actual results which could be material to the financial statements; however, to date, actual sales allowances have been materially consistent with the Company’s estimates. Sales allowances are recorded as a reduction to revenue in the consolidated statements of operations. Deferred Revenue Deferred revenue primarily consists of payments received in advance of revenue recognition from the Company’s marketplace revenue and is recognized as the revenue recognition criteria are met. The Company generally invoices its customers monthly. Accordingly, the deferred revenue balances do not represent the total contract value of annual or multiyear subscription agreements. Deferred revenue that is expected to be recognized during the succeeding 12‑month period is recorded as current deferred revenue and the remaining portion is recorded as noncurrent in the consolidated balance sheets. All deferred revenue was recorded as current for all periods presented. Cost of Revenue Cost of revenue primarily consists of costs related to supporting and hosting the Company’s website and product offerings. These costs include salaries, benefits, incentive compensation and stock‑based compensation expense related to the customer support team, and third‑party service provider costs such as data center and networking expenses, allocated overhead, depreciation and amortization expense associated with the Company’s property and equipment, and amortization of capitalized website development costs. Concentration of Credit Risk and Significant Customers The Company has no significant off‑balance sheet risk, such as foreign exchange contracts, option contracts, or other foreign hedging arrangements. Financial instruments that potentially expose the Company to concentrations of credit risk consist primarily of cash, cash equivalents, investments, and trade accounts receivable. The Company maintains its cash, cash equivalents, and investments principally with accredited financial institutions of high credit standing. Although the Company deposits its cash and investments with multiple financial institutions, its deposits, at times, may exceed federally insured limits. Credit risk with respect to accounts receivable is dispersed due to the large number of customers. The Company routinely assesses the creditworthiness of its customers. The Company generally has not experienced any material losses related to receivables from individual customers, or groups of customers. The Company does not require collateral. Due to these factors, no additional credit risk beyond amounts provided for collection losses is believed by management to be probable in the Company’s accounts receivable. For the years ended December 31, 2017 and 2016, no individual customer accounted for more than 10% of total revenue. For the year ended December 31, 2015, one customer accounted for 14% of total revenue. As of December 31, 2017, two customers accounted for 29% and 17% of net accounts receivable, respectively. As of December 31, 2016, two customers accounted for 24% and 15% of net accounts receivable, respectively. No other individual customer accounted for more than 10% of net accounts receivable at December 31, 2017 or 2016. Cash, Cash Equivalents, and Investments The Company considers all highly liquid investments with an original maturity of three months or less at the date of purchase to be cash equivalents. Investments not classified as cash equivalents with maturities less than one year from the balance sheet date are classified as short‑term investments, while investments with maturities in excess of one year from the balance sheet date are classified as long‑term investments. Management determines the appropriate classification of investments at the time of purchase, and re‑evaluates such determination at each balance sheet date. Cash and cash equivalents primarily consist of cash on deposit with banks, and amounts held in interest‑bearing money market accounts. Cash equivalents are carried at cost, which approximates their fair market value. The Company’s investment policy, which was approved by the Audit Committee of the Company’s board of directors, or the Board, permits investments in fixed income securities, including U.S. government and agency securities, non‑U.S. government securities, money market instruments, commercial paper, certificates of deposit, corporate bonds, and asset‑backed securities. As of December 31, 2017 and 2016, investments consisted of U.S. certificates of deposit, or CDs, with remaining maturities of less than twelve months. The Company classifies CDs with readily determinable market values as held‑to‑maturity, because it is the Company’s intention to hold such investments until they mature. As such, investments were recorded at amortized cost at December 31, 2017 and 2016. The Company adjusts the cost of investments for amortization of premiums and accretion of discounts to maturity. The Company includes such amortization and accretion in interest income (expense). Realized gains and losses from sales of the Company’s investments are included in other income (expense), net. There were no realized gains or losses on investments for the years ended December 31, 2017, 2016 or 2015. The Company reviews investments for other‑than‑temporary impairment whenever the fair value of an investment is less than the amortized cost and evidence indicates that an investment’s carrying amount is not recoverable within a reasonable period of time. Other‑than‑temporary impairments of investments are recognized in the consolidated statements of operations if the Company has experienced a credit loss, has the intent to sell the investment, or if it is more likely than not that the Company will be required to sell the investment before recovery of the amortized cost basis. Evidence considered in this assessment includes reasons for the impairment, compliance with the Company’s investment policy, the severity and duration of the impairment, and changes in value subsequent to the end of the period. As of December 31, 2017 and 2016, the Company determined that no other‑than‑temporary impairments were required to be recognized in the consolidated statements of operations. Restricted Cash At December 31, 2017 and 2016, restricted cash was $1,843 and $2,044, respectively, and primarily related to cash held at a financial institution in an interest‑bearing cash account as collateral for two letters of credit related to the contractual provisions for the Company’s building lease security deposits. As of December 31, 2017 and 2016, the restricted cash is classified as a long‑term asset. Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are recorded based on the amount due from the customer and do not generally bear interest. The Company offsets gross trade accounts receivable with an allowance for doubtful accounts. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in the Company’s existing accounts receivable and is based upon historical loss patterns, the number of days that billings are past due, and an evaluation of the potential risk of loss associated with specific accounts. Account balances are charged against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company does not have any off‑balance sheet credit exposure related to its customers. Provisions for allowances for doubtful accounts are recorded in general and administrative expense. The Company considers current economic trends when evaluating the adequacy of the allowance for doubtful accounts. If circumstances relating to specific customers change, or unanticipated changes occur in the general business environment, particularly as it affects auto dealers, the Company’s estimates of the recoverability of receivables could be further adjusted. Below is a summary of the changes in the Company’s allowance for doubtful accounts for the years ended December 31, 2017, 2016, and 2015: Balance at Beginning of Period Provision Write – recoveries Balance at End of Period Year ended December 31, 2017 $ 164 $ 1,117 $ (787 ) $ 494 Year ended December 31, 2016 75 508 (419 ) 164 Year ended December 31, 2015 30 284 (239 ) 75 Property and Equipment Property and equipment are stated at cost less accumulated depreciation and amortization using the straight‑line method over the estimated useful lives of the assets. Leasehold improvements are amortized over the shorter of the lease term or the estimated useful life of the related asset. The estimated useful lives of the Company’s property and equipment are as follows: Estimated Useful Life (In Years) Computer equipment 3 Capitalized software 3 Website development costs 3 Furniture and fixtures 5 Leasehold improvements Lesser of asset life or lease term Expenditures for maintenance and repairs are charged to expense as incurred, whereas major betterments are capitalized as additions to property and equipment. The Company reviews its property and equipment whenever events or changes in circumstances indicate that the carrying value of certain assets might not be recoverable. In these instances, the Company recognizes an impairment loss when it is probable that the estimated cash flows are less than the carrying value of the asset. Foreign Currency Translation The reporting currency of the Company is the U.S. dollar. The functional currency of the Company’s foreign subsidiaries is the local currency of each subsidiary. All assets and liabilities in the balance sheets of entities whose functional currency is a currency other than the U.S. dollar are translated into U.S. dollar equivalents at exchange rates as follows: (1) asset and liability accounts at period‑end rates; (2) income statement accounts at weighted‑average exchange rates for the period; and (3) stockholders’ equity accounts at historical exchange rates. The resulting translation adjustments are excluded from income (loss) and reflected as a separate component of stockholders’ equity (deficit). Foreign currency transaction gains and losses are included in net income (loss) for the period. The Company may periodically have certain intercompany foreign currency transactions that are deemed to be of a long‑term investment nature; exchange adjustments related to those transactions are made directly to a separate component of stockholders’ equity (deficit). Capitalized Website and Software Development Costs The Company capitalizes certain costs associated with the development of its websites and internal‑use software products after the preliminary project stage is complete, and until the software is ready for its intended use. Research and development costs incurred during the preliminary project stage or costs incurred for data conversion activities, training, maintenance, and general and administrative or overhead costs are expensed as incurred. Capitalization begins when the preliminary project stage is complete; management authorizes and commits to the funding of the software project with appropriate authority; it is probable the project will be completed; the software will be used to perform the functions intended; and certain functional and quality standards have been met. Qualified costs incurred during the operating stage of the Company’s software applications relating to upgrades and enhancements are capitalized to the extent it is probable that they will result in added functionality, while costs that cannot be separated between maintenance of, and minor upgrades and enhancements to, internal‑use software are expensed as incurred. Capitalized website development costs and software development costs are amortized on a straight‑line basis over their estimated useful life of three years. Management evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. During the years ended December 31, 2017, 2016, and 2015, the Company capitalized $2,215, $1,372, and $1,262 of software and website development costs, respectively. The Company recorded amortization expense associated with its capitalized software and website development costs of $812, $343, and $153 for the years ended December 31, 2017, 2016, and 2015, respectively. Impairment of Long‑Lived Assets The Company evaluates the recoverability of long‑lived assets, such as property and equipment, for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. During this review, the Company re‑evaluates the significant assumptions used in determining the original cost and estimated lives of long‑lived assets. Although the assumptions may vary from asset to asset, they generally include operating results, changes in the use of the asset, cash flows, and other indicators of value. Management then determines whether the remaining useful life continues to be appropriate, or whether there has been an impairment of long‑lived assets based primarily upon whether expected future undiscounted cash flows are sufficient to support the assets’ recovery. Recoverability of these assets is measured by comparison of the carrying amount of the asset to the future undiscounted cash flows the asset is expected to generate. If the asset is considered to be impaired, the amount of any impairment is measured as the difference between the carrying value and the fair value of the impaired asset. For the years ended December 31, 2017, 2016, and 2015, the Company did not identify any impairment of its long‑lived assets. Income Taxes The Company accounts for income taxes in accordance with the asset and liability method. Under this method, deferred tax assets and liabilities are recognized based on temporary differences between the financial reporting and income tax bases of assets and liabilities using statutory rates. In addition, this method requires a valuation allowance against net deferred tax assets if, based upon the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. The Company accounts for uncertain tax positions recognized in the consolidated financial statements by prescribing a more‑likely‑than‑not threshold for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The Company has no recorded liabilities for uncertain tax positions as of December 31, 2017 and 2016. Disclosure of Fair Value of Financial Instruments The carrying amounts of the Company’s financial instruments, which include cash and cash equivalents, investments, accounts receivable, accounts payable, and accrued expenses, approximated their fair values at December 31, 2017 and 2016 due to the short‑term nature of these instruments. The Company has evaluated the estimated fair value of financial instruments using available market information. The use of different market assumptions, estimation methodologies, or both, could have a significant effect on the estimated fair value amounts. See Note 3 for further discussion. Stock‑Based Compensation For stock‑based awards issued under the Company’s stock‑based compensation plans, which are more fully described in Note 8, the fair value of each award is estimated on the date of grant, and, up through the year ended December 31, 2016, an estimated forfeiture rate was used when calculating stock‑based compensation expense for the period. The Company recognizes compensation expense for service-based awards on a straight-line basis over the requisite service period for each separate vesting portion of the award, with the amount of compensation expense recognized at any date at least equaling the portion of the grant-date fair value of the award that is vested at that date. Certain awards granted by the Company prior to the IPO were subject to service‑based vesting conditions and a performance‑based vesting condition achieved upon a liquidity event, defined as either a change of control or an IPO. The Securities and Exchange Commission’s declaration of effectiveness of the Company’s registration statement on Form S-1 on October 11, 2017 satisfied the liquidity event performance condition. Upon the achievement of the liquidity event, the Company recorded previously unrecognized cumulative stock-based compensation expense of $2.5 million related to these awards. Given the absence of an active market for the Company’s common stock prior to the IPO, the Board, the members of which the Company believes have extensive business, finance, and venture capital experience, was required to estimate the fair value of the Company’s common stock at the time of each grant of a stock‑based award. The Company and the Board utilized various valuation methodologies in accordance with the framework of the American Institute of Certified Public Accountants’ Technical Practice Aid, Valuation of Privately‑Held Company Equity Securities Issued as Compensation The Company believes this methodology was reasonable based upon the Company’s internal peer company analyses, and further supported by arm’s‑length transactions involving the Company’s convertible Preferred Stock. As the Company’s common stock was not actively traded, the determination of fair value involved assumptions, judgments, and estimates. If different assumptions had been made, stock‑based compensation expense, consolidated net income (loss), and consolidated net income (loss) per share could have been significantly different. For RSUs granted subsequent to the IPO, the fair value is determined based on the closing price of the Company’s Class A common stock as reported on the Nasdaq Global Select Market on the date of grant. For RSUs issued under the Company’s stock‑based compensation plans prior to the IPO, the fair value of each grant was calculated based on the estimated fair value of the Company’s common stock on the date of grant. The Company estimated the fair value of most stock option awards on the date of grant using the Black‑Scholes option‑pricing model. Certain stock option awards that have an exercise price that was materially above the current estimated fair market value of the Company’s stock are considered to be “deeply out of the money,” and are valued at the date of grant using a binomial lattice option‑pricing model. The fair value of each option grant issued under the Company’s stock‑based compensation plans that was not considered “deeply out of the money,” was estimated using the Black‑Scholes option‑pricing model. As there was no public market for its common stock prior to the IPO, the Company determined the volatility for options granted based on an analysis of reported data for a peer group of companies that issued options with substantially similar terms. The expected volatility of granted options has been determined using a weighted‑average of the historical volatility measures of this peer group of companies. The expected life of options has been determined utilizing the “simplified method.” The simplified method is based on the average of the vesting tranches and the contractual life of each grant. The risk‑free interest rate is based on a treasury instrument whose term is consistent with the expected life of the stock options. The Company has not paid, and does not anticipate paying, cash dividends on its common stock; therefore, the expected dividend yield was assumed to be zero. In addition, the Company applied an estimated forfeiture rate of 5% in determining the expense recorded in the accompanying consolidated statements of operations for the years ended December 31, 2016 and 2015. In March 2016, the FASB issued ASU 2016‑09, Compensation — Stock Compensation (Topic 718): Improvements to Employee Share‑Based Payment Accounting the Company recorded tax benefits of related to differences between tax deductions related to stock compensation and the corresponding financial statement expense compensation. The weighted‑average fair value of options granted during the years ended December 31, 2016 and 2015 was $0.90 and $0.46, respectively. No options were granted during 2017. The weighted‑average assumptions utilized to determine the fair value of options granted are presented in the following table: 2016 2015 Expected dividend yield — — Expected volatility 49 % 64 % Risk – 1.57 % 1.73 % Expected term (in years) 6.07 6.05 See Note 8 for a summary of the stock option and RSU activity for the years ended December 31, 2017, 2016, and 2015. Advertising Costs Advertising costs are expensed as incurred. Advertising expense, which is included within sales and marketing expense in the consolidated statements of operations, was $173,186, $112,167, and $61,865 for the years ended December 31, 2017, 2016, and 2015, respectively. Leases The Company categorizes leases at their inception as either operating or capital leases. On certain lease arrangements, the Company may receive rent holidays or other incentives. The Company recognizes lease costs on a straight‑line basis once control of the space is achieved, without regard to deferred payment terms, such as rent holidays, that defer the commencement date of required payments or escalating payment amounts. The difference between required lease payments and rent expense has been recorded as deferred rent. Additionally, incentives received are treated as a reduction of costs over the term of the agreement, as they are considered an inseparable part of the lease agreement. Comprehensive Income (Loss) Comprehensive income (loss) is defined as the change in stockholders’ equity of a business enterprise during a period from transactions and other events and circumstances from non‑owner sources. Comprehensive income (loss) consists of net income (loss) and other comprehensive (loss) income, which includes certain changes in equity that are excluded from net income (loss). Specifically, cumulative foreign currency translation adjustments are included in accumulated other comprehensive income (loss). As of December 31, 2017, 2016, and 2015, accumulated other comprehensive income (loss) is presented separately on the consolidated balance sheets and consists entirely of cumulative foreign currency translation adjustments. Contingent Liabilities The Company has certain contingent liabilities that arise in the ordinary course of business activities. The Company accrues for loss contingencies when losses become probable and are reasonably estimable. If the reasonable estimate of the loss is a range and no amount within the range is a better estimate, the minimum amount of the range is recorded as a liability. The Company does not accrue for contingent losses that, in its judgment, are considered to be reasonably possible, but not probable; however, it discloses the range of such reasonably possible losses. Emerging Growth Company Status The Company is an “emerging growth company,” as defined in the Jumpstart Our Business Startups Act, or JOBS Act, and may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies. The Company may take advantage of these exemptions until the Company is no longer an emerging growth company. Section 107 of the JOBS Act provides that an emerging growth company can take advantage of the extended transition period afforded by the JOBS Act for the implementation of new or revised accounting standards. The Company has elected to use the extended transition period for complying with new or revised accounting standards and as a result of this election, its financial statements may not be comparable to companies that comply with public company effective dates. The Company may take advantage of these exemptions up unti |
Fair Value of Financial Instrum
Fair Value of Financial Instruments Including Cash, Cash Equivalents and Investments | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments Including Cash, Cash Equivalents and Investments | 3. Fair Value of Financial Instruments Including Cash, Cash Equivalents and Investments ASC 820, Fair Value Measurements and Disclosures ASC 820 identifies fair value as the exchange price, or exit price, representing the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants based on the highest and best use of the asset or liability. As such, fair value is a market‑based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. The Company uses valuation techniques to measure fair value that maximize the use of observable inputs and minimize the use of unobservable inputs. These inputs are prioritized as follows: Level 1 — Quoted unadjusted prices for identical instruments in active markets. Level 2 — Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model‑derived valuations in which all observable inputs and significant value drivers are observable in active markets. Level 3 — Model‑derived valuations in which one or more significant inputs or significant value drivers are unobservable, including assumptions developed by the Company. The valuation techniques that may be used to measure fair value are as follows: Market Approach — Uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. Income Approach — Uses valuation techniques to convert future amounts to a single present amount based on current market expectations about those future amounts, including present value techniques, option pricing models, and excess earnings method. Cost Approach — Based on the amount that currently would be required to replace the service capacity of an asset (replacement cost). The following tables present, for each of the fair value levels, the Company’s assets that are measured at fair value on a recurring basis at December 31, 2017 and 2016: December 31, 2017 Quoted Prices in Active Markets for Identical Assets (Level 1 Inputs) Significant Other Observable Inputs (Level 2 Inputs) Significant Unobservable Inputs (Level 3 Inputs) Total Assets: Cash equivalents: Money market funds $ 60,709 $ — $ — $ 60,709 Investments: Certificates of deposit — 50,000 — 50,000 Total $ 60,709 $ 50,000 $ — $ 110,709 December 31, 2016 Quoted Prices in Active Markets for Identical Assets (Level 1 Inputs) Significant Other Observable Inputs (Level 2 Inputs) Significant Unobservable Inputs (Level 3 Inputs) Total Assets: Investments: Certificates of deposit $ — $ 44,774 $ — $ 44,774 Total $ — $ 44,774 $ — $ 44,774 The Company measures eligible assets and liabilities at fair value with changes in value recognized in earnings. Fair value treatment may be elected either upon initial recognition of an eligible asset or liability or, for an existing asset or liability, if an event triggers a new basis of accounting. The Company did not elect to remeasure any of its existing financial assets or liabilities and did not elect the fair value option for any financial assets and liabilities transacted in the years ended December 31, 2017 or 2016. The following is a summary of cash, cash equivalents, and investments as of December 31, 2017 and 2016. Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value December 31, 2017: Cash and cash equivalents due in 90 days or less $ 87,709 $ — $ — $ 87,709 Investments: Certificates of deposit due in one year or less 50,000 50,000 Total cash, cash equivalents, and investments $ 137,709 $ — $ — $ 137,709 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value December 31, 2016: Cash and cash equivalents due in 90 days or less $ 29,476 $ — $ — $ 29,476 Investments: Certificates of deposit due in one year or less 44,774 44,774 Total cash, cash equivalents, and investments $ 74,250 $ — $ — $ 74,250 |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2017 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment, Net | 4. Property and Equipment, Net Property and equipment consists of the following: At December 31, 2017 2016 Computer equipment $ 3,532 $ 2,001 Capitalized software 174 114 Website development costs 4,895 2,680 Furniture and fixtures 4,421 3,386 Leasehold improvements 10,797 8,202 Construction in progress 46 119 23,865 16,502 Less accumulated depreciation (7,302 ) (3,722 ) Property and equipment, net $ 16,563 $ 12,780 Depreciation and amortization expense, which includes amortization expense associated with capitalized software and website development costs, was $3,795, $2,072, and $1,122 for the years ended December 31, 2017, 2016, and 2015, respectively. |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Dec. 31, 2017 | |
Accrued Liabilities Current [Abstract] | |
Accrued Expenses | 5. Accrued Expenses Accrued expenses consist of the following: At December 31, 2017 2016 Accrued bonuses $ 7,807 $ 4,662 Other accrued expenses 5,781 3,722 $ 13,588 $ 8,384 The Company had accrued bonuses of $7.8 million and $4.7 million at December 31, 2017 and 2016, respectively. The increase of $3.1 million in accrued bonuses is primarily due to increased headcount in 2017, as compared to 2016. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 6. Commitments and Contingencies Operating Leases The Company leases its facilities under non‑cancelable operating leases with various expiration dates through January 2024. Rent expense for non-cancelable operating leases with free rental periods or scheduled rent increases is recognized on a straight-line basis over the terms of the leases. The difference between required lease payments and rent expense has been recorded as deferred rent. As of December 31, 2017, the Company had deferred rent and rent incentives of $6,813, of which $1,165 and $5,648, respectively, are classified as a short‑term liability and a long‑term liability in the corresponding consolidated balance sheet. As of December 31, 2016, the Company had deferred rent and rent incentives of $6,583, of which $910 and $5,673, respectively, are classified as a short‑term liability and a long‑term liability in the corresponding consolidated balance sheet. Rent expense related to the operating leases for the years ended December 31, 2017, 2016, and 2015 was $5,994, $3,678, and $2,700 respectively. Future minimum rental commitments under the Company’s operating leases at December 31, 2017 are as follows: Year Ending December 31, Operating Lease Commitments 2018 $ 7,363 2019 7,653 2020 7,694 2021 7,794 2022 and thereafter 9,775 $ 40,279 Legal Matters From time to time the Company may become involved in legal proceedings or be subject to claims arising in the ordinary course of its business. The Company is not presently subject to any pending or threatened litigation that it believes, if determined adversely to the Company, individually, or taken together, would reasonably be expected to have a material adverse effect on its business or financial results. Guarantees and Indemnification Obligations In the ordinary course of business, the Company enters into agreements with its customers that include commercial provisions with respect to licensing, infringement, indemnification, and other common provisions. The Company does not, in the ordinary course, agree to indemnification obligations for the Company under its contracts with customers. Based on historical experience and information known at December 31, 2017, 2016, and 2015, the Company has not incurred any costs for guarantees or indemnities. |
Convertible Preferred Stock and
Convertible Preferred Stock and Stockholders' Equity | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Convertible Preferred Stock and Stockholders' Equity | 7. Convertible Preferred Stock and Stockholders’ Equity On July 7, 2015, the Company completed a Series D convertible preferred stock, or Series D Preferred Stock, offering in the amount of $67,872, net of issuance costs of approximately $128. In connection with this issuance, the Company used a portion of the proceeds received, approximately $18,000, to repurchase and retire certain outstanding shares of Series A, Series B, and Series C Preferred Stock and common stock, as well as certain vested stock options from existing stockholders. The difference between the amount implicitly paid to repurchase the various classes of Preferred Stock and the corresponding carrying value of the underlying shares, or $15,930, was treated as a deemed dividend and was recorded against retained earnings. As the shares of common stock were repurchased for constructive retirement, the excess purchase price over the corresponding par value was charged directly to retained earnings. On August 23, 2016, the Company completed a Series E convertible preferred stock, or Series E Preferred Stock, offering in the amount of $59,732, net of issuance costs of approximately $268. In connection with this issuance, the Company used the proceeds received to repurchase and retire certain outstanding shares of Series A, Series B, and Series C Preferred Stock and common stock, as well as certain vested stock options and restricted stock units from existing stockholders. The difference between the amount implicitly paid to repurchase the various classes of Preferred Stock and the corresponding carrying value of the underlying shares, or $32,087, was treated as a deemed dividend and was recorded against retained earnings. As the shares of common stock were repurchased for constructive retirement, the excess purchase price over the corresponding par value was charged directly to retained earnings. On June 21, 2017, the Company amended and restated its Certificate of Incorporation pursuant to the Third Amended and Restated Certificate of Incorporation. Under the Third Amended and Restated Certificate of Incorporation, the total number of shares of all classes of stock which the Company had authority to issue was (i) 120,020,700 shares of Class A common stock, par value $0.001 per share, (ii) 80,013,800 shares of Class B common stock, par value $0.001 per share, and (iii) 11,091,782 shares of Preferred Stock, par value $0.001 per share, of which 3,333,000 shares were designated Series A Preferred Stock, 3,329,497 shares were designated Series B Preferred Stock, 1,648,978 shares were designated Series C Preferred Stock, 1,673,105 shares were designated Series D Preferred Stock, and 1,107,202 shares were designated Series E Preferred Stock. The Series A Preferred Stock, Series B Preferred Stock, Series C Preferred Stock, Series D Preferred Stock, and Series E Preferred Stock are referred to collectively as the Preferred Stock. Upon the effectiveness of the Third Amended and Restated Certificate of Incorporation, (i) each share of Class A common stock issued and outstanding was recapitalized, reclassified, and reconstituted into two fully paid and non‑assessable shares of outstanding Class A common stock and four fully paid and non‑assessable shares of outstanding Class B common stock, and (ii) each share of Class B common stock of the Company issued and outstanding was recapitalized, reclassified, and reconstituted into two fully paid and non‑assessable shares of outstanding Class A common stock and four fully paid and non‑assessable shares of outstanding Class B common stock. Further, upon the effectiveness of the Third Amended and Restated Certificate of Incorporation, the number of shares of common stock as to which each outstanding option to purchase common stock was exercisable for and each outstanding RSU was convertible into was adjusted such that upon exercise of outstanding stock options or vesting of outstanding RSUs, each holder would receive two fully paid and non‑assessable shares of Class A common stock and four fully paid and non‑assessable shares of Class B common stock in respect of each share of common stock previously underlying such option or RSU. The exercise price per share of common stock underlying each outstanding option was adjusted upon the effectiveness of the Third Amended and Restated Certificate of Incorporation to be one‑sixth of the exercise price per share in effect immediately prior to such adjustment and the fair market value per share of common stock issuable upon settlement of such RSU was adjusted to be one‑sixth of the fair market value per share in effect immediately prior to the recapitalization. All share and per share data shown in the accompanying consolidated financial statements and related notes have been retroactively revised to reflect the share recapitalization. On October 16, 2017, in connection with the closing of the IPO, all of the outstanding shares of Preferred Stock automatically converted into 20,188,226 shares of Class A common stock and 40,376,452 shares of Class B common stock. The 40,376,452 shares of Class B common stock subsequently converted into 40,376,452 shares of Class A common stock resulting in a total conversion of all outstanding shares of Preferred Stock into 60,564,678 shares of Class A common stock. Subsequent to the closing of the IPO, there were no shares of Preferred Stock outstanding. Immediately following such conversion, the Company’s Fourth Amended and Restated Certificate of Incorporation became effective. Pursuant to the Fourth Amended and Restated Certificate of Incorporation, the Company is authorized to issue up to 500,000,000 shares of Class A common stock, 100,000,000 shares of Class B common stock, and 10,000,000 shares of Preferred Stock, all with a par value of $0.001 per share. As of December 31, 2017, the Preferred Stock is undesignated and no Preferred Stock is outstanding. In addition, pursuant to the Fourth Amended and Restated Certificate of Incorporation, all shares of Class B common stock will automatically convert into shares of Class A common stock, on a share for share basis, upon the date falling after the first to occur of (1) the death of Langley Steinert, the Company’s Chief Executive Officer, President and Chairman, (2) his voluntary termination of all employment with the Company and service on the Company’s board of directors, or (3) the sum of the number of shares of capital stock held by Langley Steinert, by any Family Member of Langley Steinert, and by any Permitted Entity of Langley Steinert (as such terms are defined in the Fourth Amended and Restated Certificate of Incorporation), assuming the exercise and settlement in full of all outstanding options and convertible securities and calculated on an as-converted to Class A common stock basis, being less than 9,091,484. Shares of Class B common stock will not automatically convert into shares of Class A common stock upon the termination of Mr. Steinert's status as an officer and director, unless such termination is either made voluntarily by Mr. Steinert or due to Mr. Steinert's death. Once converted into Class A common stock, the converted shares of Class B common stock will not be reissued. In addition, if all shares of Class B common stock are converted into Class A common stock, then any outstanding options or convertible securities with the right to purchase or acquire shares of Class B common stock shall become a right to purchase or acquire shares of Class A common stock. Common Stock Each share of Class A common stock entitles the holder to one vote for each share on all matters submitted to a vote of the Company’s stockholders at all meetings of stockholders and written actions in lieu of meetings. Each share of Class B common stock entitles the holder to ten votes for each share on all matters submitted to a vote of the Company’s stockholders at all meetings of stockholders and written actions in lieu of meetings. Holders of common stock are entitled to receive dividends, when and if declared by the Board. At December 31, 2017, each share of Class B common stock was convertible into one share of Class A common stock at the option of the holder at any time. Automatic conversion will occur upon the occurrence of a Transfer, as defined in the Fourth Amended and Restated Certificate of Incorporation, of such share of Class B common stock. Upon the effectiveness of the Company’s Fourth Amended and Restated Certificate of Incorporation, additional terms of conversion and transfer were implemented as discussed above. Preferred Stock Prior to the Company’s IPO, at which time all shares of Preferred Stock were converted into shares of common stock, the Company’s Preferred Stock consisted of the following: Original Issue Price Per Share Shares Authorized Outstanding Liquidation Amount Carrying Value Series A Preferred Stock $ 0.525053 3,333,000 2,824,703 $ 1,483 $ 1,483 Series B Preferred Stock $ 0.780899 3,329,497 2,938,486 2,295 2,295 Series C Preferred Stock $ 0.849012 1,648,978 1,550,612 1,316 1,316 Series D Preferred Stock $ 40.642989 1,673,105 1,673,105 68,000 67,872 Series E Preferred Stock $ 54.190650 1,107,202 1,107,202 60,000 59,732 11,091,782 10,094,108 $ 133,094 $ 132,698 The holders of the Company’s Preferred Stock had certain voting and dividend rights, as well as liquidation preferences and conversion privileges. All rights, preferences, and privileges associated with the Preferred Stock were terminated at the time of the Company’s IPO in conjunction with the conversion of all outstanding shares of Preferred Stock into shares of common stock. |
Stock-based Compensation
Stock-based Compensation | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-based Compensation | 8. Stock‑based Compensation Equity Incentive Plans The Company’s Amended and Restated 2006 Equity Incentive Plan (the “2006 Plan”) provided for the issuance of non-qualified stock options, restricted stock and stock awards to the Company’s employees, officers, directors and consultants. The 2006 Plan authorized up to an aggregate of 3,444,668 shares of the Company's Class B common stock for such issuances. In conjunction with the effectiveness of the Company’s 2015 Equity Incentive Plan (the “2015 Plan”), the Board voted that no further stock options or other equity-based awards may be granted under the 2006 Plan. In 2015, the Board first adopted the 2015 Plan, which became effective on June 26, 2015. The 2015 Plan provided for the issuance of incentive stock options, non-qualified stock options, restricted stock, stock awards and restricted stock units (“RSUs”) to employees, consultants and non-employee directors. As of the effective date of the 2015 Plan, up to 603,436 shares of common stock were authorized for issuance under the 2015 Plan. The 2015 Plan was amended and restated effective August 6, 2015 to permit the granting of RSUs under the 2015 Plan, remove Class B common stock from the pool of shares available for issuance under the 2015 Plan and make certain other desired changes. The 2015 Plan was further amended and restated at October 15, 2015 to add a ten-year term and to make certain other desired changes. The 2015 Plan was further amended and restated effective August 22, 2016 to merge the 2006 Plan into the 2015 Plan, to increase the number of shares of Class A common stock that may be issued under the 2015 Plan, and to lengthen the term of the 2015 Plan to expire on August 21, 2026. In addition, pursuant to this amendment and restatement of the 2015 Plan, prior to giving effect to the recapitalization that occurred on June 21, 2017, there were (i) 618,691 shares of Class A common stock, plus (ii) 802,562 shares of Class B common stock authorized under the 2015 Plan; provided, however, that (1) the number of shares of Class A common stock was increased, on a share for share basis, by the number of shares of Class B common stock that were (a) subject to outstanding options granted under the 2006 Plan that expired, terminated, or were cancelled for any reason without having been exercised, (b) surrendered in payment of the exercise price of outstanding options granted under the 2006 Plan or (c) withheld in satisfaction of tax withholding upon exercise of outstanding options granted under the 2006 Plan, and the number of shares of Class B common stock reserved under the amended and restated 2015 Plan was decreased, on a corresponding share for share basis, (2) no new awards of Class B common stock could be granted under the amended and restated 2015 Plan, and (3) except with respect to outstanding options granted under the 2006 Plan that were exercised on or after the date of the amendment and restatement, no Class B common stock could be issued under the 2015 Plan. In connection with the recapitalization that occurred on June 21, 2017, the 2015 Plan was further amended and restated to account for each outstanding common stock option being adjusted such that each share of common stock underlying such option became two shares of Class A common stock and four shares of Class B common stock underlying such option, and each outstanding RSU being adjusted such that each share of common stock issuable upon settlement of such RSU became two shares of Class A common stock and four shares of Class B common stock issuable upon settlement of such RSU. Pursuant to the 2015 Plan as further amended in connection with the recapitalization, there were (i) 3,181,740 shares of Class A common stock and (ii) 5,161,644 shares of Class B common stock authorized for issuance under the 2015 Plan. In connection with the IPO, in October 2017, the Board adopted, and the Company’s stockholders approved, the Omnibus Equity Compensation Plan (the “2017 Plan”) for the purpose of granting incentive stock options, non-qualified stock options, stock awards, stock units, other share-based awards and cash awards to employees, advisors and consultants to the Company and its subsidiaries and non-employee members of the Company’s board of directors. The 2017 Plan is the successor to the 2015 Plan. The 2017 Plan authorizes the issuance or transfer of the sum of: (i) 7,800,000 shares of the Company’s Class A common stock, plus (ii) the number of shares of our Class A common stock (up to 4,500,000 shares) equal to the sum of (x) the number of shares of Class A common stock and Class B common stock of the Company subject to outstanding awards under the 2015 Plan as of October 10, 2017 that terminate, expire or are cancelled, forfeited, exchanged, or surrendered on or after October 10, 2017 without having been exercised, vested, or paid prior to October 10, 2017, including shares tendered or withheld to satisfy tax withholding obligations with respect to outstanding grants under the Prior Plan, plus (y) the number of shares of Class A common stock reserved for issuance under the 2015 Plan that remain available for grant under the 2015 Plan as of the October 10, 2017. The aggregate number of shares of Class A common stock that may be issued or transferred under the 2017 Plan pursuant to incentive stock options will not exceed 12,300,000 shares of Class A common stock. As of the first trading day of January of each calendar year during the term of the 2017 Plan (excluding any extensions), beginning with calendar year 2019, an additional number of shares of Class A common stock will be added to the number of shares of our Class A common stock authorized to be issued or transferred under the 2017 Plan and the number of shares authorized to be issued or transferred pursuant to incentive stock options, equal to 4% of the total number of shares of our Class A common stock outstanding on the last trading day in December of the immediately preceding calendar year, or 6,000,000 shares, whichever is less, or such lesser amount as determined by the Board. At December 31, 2017, 7,831,708 shares of Class A common stock were available for issuance under the 2017 Plan. The following is a summary of the stock option activity for all stock‑based compensation plans during the year ended December 31, 2017: Common Stock Weighted-Average Exercise Price for Equity Weighted-Average Contractual Life (In Years) Aggregate Intrinsic Value ( 1) Outstanding, December 31, 2016 5,698,812 $ 1.63 6.9 23,893 Granted — — Exercised (274,784 ) 1.45 2,238 Forfeited and cancelled (382,488 ) 2.12 Outstanding, December 31, 2017 5,041,540 $ 1.60 6.0 143,059 Options exercisable at December 31, 2017 3,981,196 $ 1.02 5.6 115,157 (1) The aggregate intrinsic value was calculated based on the positive difference, if any, between the estimated fair value of our common stock on December 31, 2015, 2016, and, 2017, respectively, or the date of exercise, as appropriate, and the exercise price of the underlying options. There were no options granted in 2017. The weighted-average grant-date fair value of options granted was $0.90 per share in 2016 and $0.46 per share in 2015. The aggregate intrinsic value for options exercised during the years ended December 31, 2016 and 2015 was $2,021 and $936, respectively. The Company entered into RSU agreements with certain of its employees pursuant to the 2015 Plan and the 2017 Plan. The RSUs granted under the 2015 Plan are subject to both a service-based vesting condition and a performance-based vesting condition based on a liquidity event, defined as either a change in control or an IPO. The Securities and Exchange Commission’s declaration of effectiveness of the Company’s registration statement on Form S-1 on October 11, 2017 satisfied the liquidity event performance condition. The following is a summary of the RSU activity during the year ended December 31, 2017: Number of Shares Weighted- Average Grant Date Fair Value Aggregate Intrinsic Value Unvested outstanding, December 31, 2016 1,580,094 $ 3.25 $ 8,754 Granted 1,606,538 16.99 27,298 Vested (693,922 ) 3.61 (13,276 ) Cancelled (120,330 ) 5.45 (1,594 ) Unvested outstanding, December 31, 2017 2,372,380 $ 12.34 $ 71,124 The weighted-average grant-date fair value of RSUs granted was $3.89 and $2.05 per share in 2016 and 2015, respectively. No RSUs vested in the years ended December 31, 2016 and 2015. For the years ended December 31, 2017, 2016, and 2015, total stock‑based compensation expense was $5,028, $322, and $1,040, respectively. The following two tables show stock compensation expense by award type and where the stock compensation expense is recorded in the Company’s consolidated statements of operations Year Ended December 31, 2017 2016 2015 Options $ 281 $ 322 $ 1,040 RSUs 4,747 — — Total stock-based compensation $ 5,028 $ 322 $ 1,040 Year Ended December 31, 2017 2016 2015 Cost of revenue $ 151 $ 18 $ 4 Sales and marketing expense 1,911 163 67 Product, technology, and development expense 1,637 104 883 General and administrative expense 1,329 37 86 $ 5,028 $ 322 $ 1,040 Excluded from stock-based compensation expense is $176 of capitalized software development costs in 2017. Stock-based compensation expense related to capitalized software development costs was immaterial in 2016 and 2015. The income tax benefit from stock-based compensation expense was $1,301, $67, and $75 in the years ended December 31, 2017, 2016, and 2015, respectively. As of December 31, 2017, there was $462 of unrecognized stock‑based compensation expense related to unvested stock options, which is expected to be recognized over a weighted‑average period of 1.9 years. As of December 31, 2017, there was $26,864 of unrecognized stock‑based compensation expense, related to unvested stock‑based restricted stock units which is expected to be recognized over a weighted‑average period of 3.3 years. Common Stock Reserved for Future Issuance At December 31, 2017, the Company had reserved the following shares of voting common stock for future issuance: Common stock options outstanding 5,041,540 Restricted stock units outstanding 3,066,302 Shares available for issuance under the 2017 Plan 7,831,708 Total shares of authorized common stock reserved for future issuance 15,939,550 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 9. Earnings Per Share Net income (loss) per share information is determined using the two‑class method, which includes the weighted‑average number of shares of common stock outstanding during the period and other securities that participate in dividends (a participating security). The Company considers the Preferred Stock to have been participating securities because they included rights to participate in dividends with the common stock. Under the two‑class method, basic net income (loss) per share attributable to common stockholders is computed by dividing the net income (loss) attributable to common stockholders by the weighted‑average number of shares of common stock outstanding during the period. Diluted net income (loss) per share attributable to common stockholders is computed using the more dilutive of (1) the two‑class method or (2) the if‑converted method. The Company allocates net income first to preferred stockholders based on dividend rights under the Company’s certificate of incorporation and then to preferred and common stockholders based on ownership interests. Net losses are not allocated to preferred stockholders as they do not have an obligation to share in the Company’s net losses. Since June 26, 2015, the date of the Company’s conversion from a limited liability company to a corporation, and as of the date of this Annual Report on Form 10-K, the Company had and has two classes of common stock authorized: Class A common stock and Class B common stock. As more fully described in Note 7, the rights of the holders of Class A and Class B common stock were and are identical, except with respect to voting and conversion. Each share of Class A common stock was and is entitled to one vote per share and each share of Class B common stock was and is entitled to ten votes per share. Each share of Class B common stock was and is convertible into one share of Class A common stock at the option of the holder at any time. In addition, each share of Class B common stock was and is automatically convertible into one share of Class A common stock upon transfer of such share, which is defined to include entering into a voting agreement, whether or not for value, except for certain transfers described in both the Company’s Third Amended and Restated Certificate of Incorporation and Fourth Amended and Restated Certificate of Incorporation, which exception includes transfers to certain family members of the transferor stockholder. Upon either the death or voluntary termination of the Company’s Chief Executive Officer, all shares of Class B common stock were and are automatically convertible into one share of Class A common stock. Upon the effectiveness of the Company’s Fourth Amended and Restated Certificate of Incorporation, additional terms of conversion and transfer were implemented. The Company allocates undistributed earnings attributable to common stock between the common stock classes on a one‑to‑one basis when computing net income (loss) per share. As a result, basic and diluted net income (loss) per share of Class A common stock and share of Class B common stock are equivalent. Diluted net income (loss) per share gives effect to all potentially dilutive securities. Potential dilutive securities consist of shares of common stock issuable upon the exercise of stock options, shares of common stock issuable upon the vesting of RSUs, and shares of common stock issuable upon the conversion of the outstanding Preferred Stock. The dilutive effect of these common stock equivalents is reflected in diluted earnings per share by application of the treasury stock method. For the year ended 2017, the two‑class method was used in the computation of diluted net income per share, which was equally as dilutive as the if-converted method. For the years ended December 31, 2016 and 2015, the net loss attributable to common stockholders is divided by the weighted‑average number of shares of common stock outstanding during the period to calculate diluted earnings per share. The dilutive effect of common stock equivalents has been excluded from the calculation as their effect would have been anti‑dilutive due to the net losses incurred for the periods after including the effects of deemed dividends on the Preferred Stock. The following table presents a reconciliation of the numerator and denominator used in the calculation of basic and diluted net income (loss) per share: Year Ended December 31, 2017 2016 2015 Numerator: Net income (loss) $ 13,199 $ 6,497 $ (1,636 ) Deemed dividend to preferred stockholders — (32,087 ) (15,930 ) Net income attributable to participating securities (6,098 ) — — Net income (loss) attributable to common stockholders — basic $ 7,101 $ (25,590 ) $ (17,566 ) Net income (loss) $ 13,199 $ 6,497 $ (1,636 ) Deemed dividend to preferred stockholders — (32,087 ) (15,930 ) Net income attributable to participating securities (5,829 ) — — Net income (loss) attributable to common stockholders — diluted $ 7,370 $ (25,590 ) $ (17,566 ) Denominator: Weighted–average number of shares of common stock used in computing net income (loss) per share attributable to common stockholders — basic 55,835,265 44,138,922 43,141,236 Dilutive effect of share equivalents resulting from stock options 4,290,362 — — Dilutive effect of share equivalents resulting from unvested restricted stock units 511,957 — — Weighted–average number of shares of common stock used in computing net income (loss) per share — diluted 60,637,584 44,138,922 43,141,236 Net income (loss) per share attributable to common stockholders: Basic $ 0.13 $ (0.58 ) $ (0.41 ) Diluted 0.12 $ (0.58 ) $ (0.41 ) The following potentially dilutive common stock equivalents have been excluded from the calculation of diluted weighted‑average shares outstanding for the years ended December 31, 2017, 2016, and 2015, as their effect would have been anti‑dilutive for the periods presented: Year Ended December 31, 2017 2016 2015 Stock options outstanding — 5,698,812 5,626,710 Restricted stock units outstanding 829 1,580,094 553,986 Convertible preferred stock — 10,094,108 9,586,620 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 10. Income Taxes The domestic and foreign components of income (loss) before income taxes are as follows: Year Ended December 31, 2017 2016 2015 United States $ 15,543 $ 8,919 $ (2,540 ) Foreign 294 26 — Income (loss) before income taxes $ 15,837 $ 8,945 $ (2,540 ) The provision for (benefit from) income taxes contained the following components: Year Ended December 31, 2017 2016 2015 Current provision: Federal $ 3,262 $ 1,440 $ (276 ) State 431 223 21 Foreign 62 3 — 3,755 1,666 (255 ) Deferred (benefit) provision: Federal (755 ) 880 (544 ) State (343 ) (98 ) (105 ) Foreign (19 ) — — (1,117 ) 782 (649 ) Income tax (benefit) provision $ 2,638 $ 2,448 $ (904 ) The Company's effective tax rates for the years ending December 31, 2017 and 2016 are less than the U.S. federal statutory rate primarily due to federal and state research and development credits, excess tax deductions related to stock-based compensation awards and tax deductions for fees incurred during the IPO process. The Company’s effective tax rate for the year ended December 31, 2015 is greater than the U.S. federal statutory rate primarily due to state income taxes. Year Ended December 31, 2017 2016 2015 U.S. federal taxes at statutory rate 35.0 % 35.0 % 34.0 % State taxes, net of federal benefit 3.1 4.5 3.6 Nondeductible expenses 1.2 2.0 (1.4 ) Tax deductible IPO costs (9.3 ) — — Stock compensation (4.4 ) — — Foreign rate differential (0.4 ) (0.1 ) — Credits (9.0 ) (15.0 ) — Other 0.5 1.0 (0.6 ) Total 16.7 % 27.4 % 35.6 % The approximate income tax effect of each type of temporary difference and carryforward as of December 31, 2017 and 2016 is as follows: As of December 31, 2017 2016 Deferred tax assets: Credit carryforwards $ 166 $ 141 Stock-based compensation 1,301 67 Landlord allowance on leasehold improvements 1,078 1,468 Deferred rent 583 968 Accruals and reserves 606 612 3,734 3,256 Deferred tax liability: Fixed assets (2,909 ) (3,548 ) (2,909 ) (3,548 ) Net deferred tax assets (liabilities) $ 825 $ (292 ) The Company uses the asset and liability method to account for income taxes in accordance with ASC 740, Income Taxes The Tax Cuts and Jobs Act (the “TCJA”) was enacted on December 22, 2017. Among other things, the TCJA reduces the U.S. federal corporate tax rate from 35% to 21%, requires companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred, and creates new taxes on certain foreign sourced earnings. As of December 31, 2017, the Company recognized a provisional amount of $187 which is included as a component of income tax expense from continuing operations. The Company re-measured certain deferred tax assets and liabilities based on the rates at which they are anticipated to reverse in the future, which is generally 21%. However, the Company is still examining certain aspects of the TCJA and refining its calculations, which could potentially affect the measurement of these balances or potentially give rise to new deferred tax amounts. The provisional amount recorded related to the re-measurement of the Company’s deferred tax balance was a tax expense of $151. The one-time transition tax is based on the Company’s total post-1986 earnings and profits (“E&P”) for which the Company has previously deferred from U.S. income taxes. The Company recorded a provisional amount for its one-time transition tax liability of $36 for its foreign subsidiaries, resulting in an increase of income tax provision of $36. The Company has not yet completed its calculation of the total post-1986 foreign E&P for these foreign subsidiaries. Further, the transition tax is based in part on the amount of those earnings held in cash and other specified assets. This amount may change when the Company finalizes the calculation of post-1986 foreign E&P previously deferred from U.S. federal taxation and finalize the amounts held in cash or other specified assets. As of December 31, 2017, foreign earnings, which were not significant, have been retained indefinitely by the Company’s foreign subsidiaries for reinvestment. Upon repatriation of those earnings, in the form of dividends or otherwise, the Company could be subject to withholding taxes payable to the various foreign countries. The Company has not provided a valuation allowance against its net deferred tax assets at December 31, 2017 and 2016. Based upon the level of historical U.S. earnings and future projections over the period in which the net deferred tax assets are deductible, at this time, management believes it is more likely than not that the Company will realize the benefits of these deductible differences. As of December 31, 2017, the Company has state tax credit carryforwards of $227, available to reduce future tax liabilities that expire at various dates through 2032. Net operating loss carryforwards arising in taxable years ending after December 31, 2017 are no longer subject to expiration under the Internal Revenue Code of 1986, as amended (the “Code”). Utilization of the tax credit carryforwards may be subject to an annual limitation due to ownership change limitations that have occurred previously or that could occur in the future, as provided by Section 382 of the Code, or Section 382, as well as similar state provisions. Ownership changes may limit the amount of tax credit carryforwards that can be utilized annually to offset future taxable income and tax, respectively. In general, an ownership change, as defined by Section 382, results from transactions that increase the ownership of 5% stockholders in the stock of a corporation by more than 50% in the aggregate over a three-year period. The Company previously adopted the provision for uncertain tax positions under ASC 740, Income Taxes The Company and its subsidiaries are subject to various U.S. federal, state, and foreign income taxes. The Company is currently open to examination under the statute of limitations by the Internal Revenue Service and state jurisdictions for the tax years ended 2014 through 2017. Currently, there are no income tax audits in process. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 11. Related Party Transactions On October 16, 2017, the Company completed its IPO. Allen & Company LLC acted as an underwriter in the IPO. Immediately prior to the IPO, Allen & Company LLC and its associated persons, including Ian Smith, a member of the Board, beneficially owned shares of the Company’s outstanding Preferred Stock representing 13.5% of the Company’s outstanding Preferred Stock. In connection with Allen & Company LLC’s role as an underwriter in the IPO, pursuant to the underwriting agreement, Allen & Company LLC purchased 2,190,200 shares of our Class A common stock in the IPO at $14.88 per share for a total purchase price of $32,590,176, after deducting underwriting discounts and commissions paid to Allen & Company LLC of $2,453,024. Consummation of this transaction, which occurred prior to the Company’s adoption of a formal related person transaction policy, was approved by the Board. |
Segment and Geographic Informat
Segment and Geographic Information | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information | 12. Segment and Geographic Information The Company has two reportable segments, United States and International. Segment information is presented in the same manner as the Company’s chief operating decision maker, or CODM, reviews the Company’s operating results in assessing performance and allocating resources. The CODM reviews revenue and operating income (loss) for each reportable segment as a proxy for the operating performance of the Company’s United States and International operations. The Company’s chief executive officer is the CODM on behalf of both reportable segments. The United States segment derives revenues from marketplace subscriptions, advertising services, and other revenues from customers within the United States. The International segment derives revenues from marketplace subscriptions, advertising services, and other revenues from customers outside of the United States. A majority of our operational overhead expenses, including technology and personnel costs, and other general and administrative costs associated with running our business, are incurred in the United States and not allocated to the International segment. Assets and costs discretely incurred by reportable segments, including depreciation and amortization, are included in the calculation of reportable segment income (loss) from operations. Segment operating income (loss) does not reflect the transfer pricing adjustments related to the Company’s foreign subsidiaries, which are recorded for statutory reporting purposes. Asset information is assessed and reviewed on a global basis. Information regarding the Company’s operations by segment and geographical area is presented below: Year Ended December 31, 2017 2016 2015 Segment revenue: United States $ 307,472 $ 195,824 $ 98,566 International 9,389 2,317 22 Total revenue $ 316,861 $ 198,141 $ 98,588 Year Ended December 31, 2017 2016 2015 Segment income (loss) from operations: United States $ 41,586 $ 27,461 $ 637 International (26,312 ) (18,890 ) (3,165 ) Total income (loss) from operations $ 15,274 $ 8,571 $ (2,528 ) As of December 31, 2017 and 2016, property and equipment held outside the United States was not material. |
Components of Other Income (Exp
Components of Other Income (Expense), Net | 12 Months Ended |
Dec. 31, 2017 | |
Other Income And Expenses [Abstract] | |
Components of Other Income (Expense), Net | 13. Components of Other Income (Expense), Net The components of other income (expense), net, are as follows: Year Ended December 31, 2017 2016 2015 Interest income $ 869 $ 416 $ — Interest expense (29 ) (26 ) (12 ) Foreign exchange losses (277 ) (16 ) — Other income (expense), net $ 563 $ 374 $ (12 ) |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2017 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefit Plans | 14. Employee benefit plans The Company maintains a defined contribution savings plan for all eligible U.S. employees under Section 401(k) of the Code. Effective July 1, 2017, the Company implemented a matching policy, under which the Company matches 50% of an employee’s annual contributions to the 401(k) plan, up to a maximum of the lesser of (i) 6% of the employee’s base salary, bonus and commissions paid during the year or (ii) $5,000. Matching contributions are subject to vesting based on the employee’s start date and length of service. Employees can designate the investment of their 401(k) accounts into several mutual funds. The Company does not allow investment in its common stock through the 401(k) plan. During the years ended December 31, 2016 and 2015, the Company did not make any employer contributions to the plan. During the year ended December 31, 2017, the Company began matching employee 401(k) contributions up to a set limit. Total employer contributions were $724 during the year ended December 31, 2017. |
Quarterly Financial Results (Un
Quarterly Financial Results (Unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Data [Abstract] | |
Quarterly Financial Results (unaudited) | 15. Quarterly Financial Results (unaudited) The following table presents certain unaudited quarterly financial information for the eight quarters in the period ended December 31, 2017. This information has been prepared on the same basis as the audited financial statements and includes all adjustments (consisting only of normal recurring adjustments) necessary to present fairly the unaudited quarterly results of operations set forth herein. Fourth Third Second First Quarter Quarter Quarter Quarter Year ended December 31, 2017 Revenue $ 90,597 $ 82,989 $ 76,240 $ 67,035 Cost of revenue 5,242 4,720 4,322 3,325 Gross profit 85,355 78,269 71,918 63,710 Net income 2,267 2,379 4,346 4,207 Basic net income per share (1) $ 0.02 $ 0.02 $ 0.04 $ 0.04 Diluted net income per share (1) $ 0.02 $ 0.02 $ 0.04 $ 0.04 Year ended December 31, 2016 Revenue $ 60,764 $ 53,136 $ 45,627 $ 38,614 Cost of revenue 2,904 2,852 2,141 1,678 Gross profit 57,860 50,284 43,486 36,936 Net income 3,838 2,138 269 252 Basic net (loss) income per share (1) $ (0.66 ) $ 0.02 $ (0.00 ) $ (0.00 ) Diluted net (loss) income per share (1) $ (0.66 ) $ 0.02 $ (0.00 ) $ (0.00 ) (1) The amounts were computed independently for each quarter, and the sum of the quarters may not total the annual amounts. |
Summary of Significant Accoun26
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, or GAAP. Any reference in these notes to applicable guidance is meant to refer to the authoritative U.S. generally accepted accounting principles as found in the Accounting Standards Codification, or ASC, and Accounting Standards Update, or ASU, of the Financial Accounting Standards Board, or FASB. |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All material intercompany accounts and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Significant estimates relied upon in preparing these consolidated financial statements include revenue recognition and revenue reserves, contingent liabilities, allowances for doubtful accounts, expected future cash flows used to evaluate the recoverability of long‑lived assets, the expensing and capitalization of product, technology, and development costs for website development and internal‑use software, the determination of the fair value of stock awards issued prior to the IPO, stock‑based compensation expense, and the recoverability of the Company’s net deferred tax assets and related valuation allowance. Although the Company regularly assesses these estimates, actual results could differ materially from these estimates. Changes in estimates are recorded in the period in which they become known. The Company bases its estimates on historical experience and various other assumptions that it believes to be reasonable under the circumstances. Actual results may differ from management’s estimates if these results differ from historical experience, or other assumptions do not turn out to be substantially accurate, even if such assumptions are reasonable when made. |
Subsequent Events Considerations | Subsequent Events Considerations The Company considers events or transactions that occur after the balance sheet date but prior to the issuance of the financial statements to provide additional evidence relative to certain estimates or to identify matters that require additional disclosure. Subsequent events have been evaluated as required. The Company has evaluated all subsequent events and determined that there are no material recognized or unrecognized subsequent events requiring disclosure. |
Revenue Recognition | Revenue Recognition The Company derives its revenue from two primary sources: marketplace subscription revenue, which consists of listing and display advertising subscriptions from dealers, and advertising and other revenue, which consists primarily of display advertising revenue from auto manufacturers and other auto‑related brand advertisers. The Company recognizes revenue when all of the following conditions are satisfied: (1) there is persuasive evidence of an arrangement; (2) the service has been provided to the customer; (3) the collection of fees is reasonably assured; and (4) the amount of fees to be paid by the customer is fixed or determinable. The Company offers two types of paid marketplace listing products to dealers, Enhanced and Featured Listings, which require a contractual subscription with initial terms ranging from one month to one year. Contracts for customers generally auto‑renew on a monthly basis and are cancellable by dealers with 30‑days’ advance notice at the end of current term. In addition, the arrangement allows the dealers to access a dashboard to track sales leads and manage its account. Customers do not have the right to take possession of the Company’s software. The Company recognizes revenue in accordance with ASC 605, Revenue Recognition In addition to listing dealers’ inventory on its marketplace, the Company periodically enters into multiple‑element service arrangements that provide dealers with Enhanced or Featured Listing products, as well as other advertising and customer acquisition products including display advertising, which appears on its marketplace and on other sites on the internet and requires a paid subscription under contracts with initial terms ranging from one month to one year. Contracts for customers generally auto‑renew on a monthly basis and are cancellable by dealers with 30‑days’ advance notice at the end of the current term. The Company assesses arrangements with multiple deliverables under ASU No. 2009‑13, Revenue Recognition (Topic 605), Multiple‑Deliverable Revenue Arrangements — a Consensus of the FASB Emerging Issues Task Force Advertising and other revenue consists primarily of non‑dealer display advertising revenue from auto manufacturers and other auto‑related brand advertisers sold on a cost per thousand impressions, or CPM, basis. Impressions are the number of times an advertisement is loaded on a web page. Pricing is primarily based on advertisement size and position on the Company’s mobile applications and websites, and fees are generally billed monthly. The Company recognizes such revenue as impressions are delivered. The Company does not provide minimum impression guarantees or other types of minimum guarantees in its contracts with customers. The Company sells advertising directly to auto manufacturers and other auto‑related brand advertisers, as well as indirectly through revenue sharing arrangements with advertising exchange partners. Company‑sold advertising is not subject to revenue sharing arrangements. Company‑sold advertising revenue is recognized based on the gross amount charged to the advertiser. Partner‑sold advertising revenue is recognized based on the net amount of revenue received from the content partners. Revenue from advertising sold directly by the Company to auto manufacturers and other auto‑related brand advertisers is recorded on a gross basis predominately because the Company is the primary obligor responsible for fulfilling advertisement delivery, including the acceptability of the services delivered. The Company enters into contractual arrangements directly with advertisers and is directly responsible for the fulfillment of the contractual terms and any remedy for issues with such fulfillment. The Company also has latitude in establishing the selling price with the advertiser, as the Company sells advertisements at a rate determined at its sole discretion. Advertising revenue subject to revenue sharing agreements between the Company and advertising exchange partners is recognized based on the net amount of revenue received from the partner predominately because the advertising partner, and not the Company, is the primary obligor responsible for fulfillment, including the acceptability of the services delivered. In partner‑sold advertising arrangements, the advertising partner has a direct contractual relationship with the advertiser. There is no contractual relationship between the Company and the advertiser for partner‑sold transactions. When an advertising exchange partner sells advertisements, the partner is responsible for fulfilling the advertisements, and accordingly, the Company has determined the advertising partner is the primary obligor. Additionally, the Company does not have any latitude in establishing the price with the advertiser for partner‑sold advertising. Revenue is presented net of any taxes collected from customers. The Company establishes sales allowances at the time of revenue recognition based on its history of adjustments and credits provided to its customers. Sales allowances relate primarily to credits issued for service interruption. In assessing the adequacy of the sales allowance, the Company evaluates its history of adjustments and credits made through the date of the issuance of the financial statements. Estimated sales adjustments and credits and ultimate losses may vary from actual results which could be material to the financial statements; however, to date, actual sales allowances have been materially consistent with the Company’s estimates. Sales allowances are recorded as a reduction to revenue in the consolidated statements of operations. |
Deferred Revenue | Deferred Revenue Deferred revenue primarily consists of payments received in advance of revenue recognition from the Company’s marketplace revenue and is recognized as the revenue recognition criteria are met. The Company generally invoices its customers monthly. Accordingly, the deferred revenue balances do not represent the total contract value of annual or multiyear subscription agreements. Deferred revenue that is expected to be recognized during the succeeding 12‑month period is recorded as current deferred revenue and the remaining portion is recorded as noncurrent in the consolidated balance sheets. All deferred revenue was recorded as current for all periods presented. |
Cost of Revenue | Cost of Revenue Cost of revenue primarily consists of costs related to supporting and hosting the Company’s website and product offerings. These costs include salaries, benefits, incentive compensation and stock‑based compensation expense related to the customer support team, and third‑party service provider costs such as data center and networking expenses, allocated overhead, depreciation and amortization expense associated with the Company’s property and equipment, and amortization of capitalized website development costs. |
Concentration of Credit Risk and Significant Customers | Concentration of Credit Risk and Significant Customers The Company has no significant off‑balance sheet risk, such as foreign exchange contracts, option contracts, or other foreign hedging arrangements. Financial instruments that potentially expose the Company to concentrations of credit risk consist primarily of cash, cash equivalents, investments, and trade accounts receivable. The Company maintains its cash, cash equivalents, and investments principally with accredited financial institutions of high credit standing. Although the Company deposits its cash and investments with multiple financial institutions, its deposits, at times, may exceed federally insured limits. Credit risk with respect to accounts receivable is dispersed due to the large number of customers. The Company routinely assesses the creditworthiness of its customers. The Company generally has not experienced any material losses related to receivables from individual customers, or groups of customers. The Company does not require collateral. Due to these factors, no additional credit risk beyond amounts provided for collection losses is believed by management to be probable in the Company’s accounts receivable. For the years ended December 31, 2017 and 2016, no individual customer accounted for more than 10% of total revenue. For the year ended December 31, 2015, one customer accounted for 14% of total revenue. As of December 31, 2017, two customers accounted for 29% and 17% of net accounts receivable, respectively. As of December 31, 2016, two customers accounted for 24% and 15% of net accounts receivable, respectively. No other individual customer accounted for more than 10% of net accounts receivable at December 31, 2017 or 2016. |
Cash, Cash Equivalents, and Investments | Cash, Cash Equivalents, and Investments The Company considers all highly liquid investments with an original maturity of three months or less at the date of purchase to be cash equivalents. Investments not classified as cash equivalents with maturities less than one year from the balance sheet date are classified as short‑term investments, while investments with maturities in excess of one year from the balance sheet date are classified as long‑term investments. Management determines the appropriate classification of investments at the time of purchase, and re‑evaluates such determination at each balance sheet date. Cash and cash equivalents primarily consist of cash on deposit with banks, and amounts held in interest‑bearing money market accounts. Cash equivalents are carried at cost, which approximates their fair market value. The Company’s investment policy, which was approved by the Audit Committee of the Company’s board of directors, or the Board, permits investments in fixed income securities, including U.S. government and agency securities, non‑U.S. government securities, money market instruments, commercial paper, certificates of deposit, corporate bonds, and asset‑backed securities. As of December 31, 2017 and 2016, investments consisted of U.S. certificates of deposit, or CDs, with remaining maturities of less than twelve months. The Company classifies CDs with readily determinable market values as held‑to‑maturity, because it is the Company’s intention to hold such investments until they mature. As such, investments were recorded at amortized cost at December 31, 2017 and 2016. The Company adjusts the cost of investments for amortization of premiums and accretion of discounts to maturity. The Company includes such amortization and accretion in interest income (expense). Realized gains and losses from sales of the Company’s investments are included in other income (expense), net. There were no realized gains or losses on investments for the years ended December 31, 2017, 2016 or 2015. The Company reviews investments for other‑than‑temporary impairment whenever the fair value of an investment is less than the amortized cost and evidence indicates that an investment’s carrying amount is not recoverable within a reasonable period of time. Other‑than‑temporary impairments of investments are recognized in the consolidated statements of operations if the Company has experienced a credit loss, has the intent to sell the investment, or if it is more likely than not that the Company will be required to sell the investment before recovery of the amortized cost basis. Evidence considered in this assessment includes reasons for the impairment, compliance with the Company’s investment policy, the severity and duration of the impairment, and changes in value subsequent to the end of the period. As of December 31, 2017 and 2016, the Company determined that no other‑than‑temporary impairments were required to be recognized in the consolidated statements of operations. |
Restricted Cash | Restricted Cash At December 31, 2017 and 2016, restricted cash was $1,843 and $2,044, respectively, and primarily related to cash held at a financial institution in an interest‑bearing cash account as collateral for two letters of credit related to the contractual provisions for the Company’s building lease security deposits. As of December 31, 2017 and 2016, the restricted cash is classified as a long‑term asset. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are recorded based on the amount due from the customer and do not generally bear interest. The Company offsets gross trade accounts receivable with an allowance for doubtful accounts. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in the Company’s existing accounts receivable and is based upon historical loss patterns, the number of days that billings are past due, and an evaluation of the potential risk of loss associated with specific accounts. Account balances are charged against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company does not have any off‑balance sheet credit exposure related to its customers. Provisions for allowances for doubtful accounts are recorded in general and administrative expense. The Company considers current economic trends when evaluating the adequacy of the allowance for doubtful accounts. If circumstances relating to specific customers change, or unanticipated changes occur in the general business environment, particularly as it affects auto dealers, the Company’s estimates of the recoverability of receivables could be further adjusted. Below is a summary of the changes in the Company’s allowance for doubtful accounts for the years ended December 31, 2017, 2016, and 2015: Balance at Beginning of Period Provision Write – recoveries Balance at End of Period Year ended December 31, 2017 $ 164 $ 1,117 $ (787 ) $ 494 Year ended December 31, 2016 75 508 (419 ) 164 Year ended December 31, 2015 30 284 (239 ) 75 |
Property and Equipment | Property and Equipment Property and equipment are stated at cost less accumulated depreciation and amortization using the straight‑line method over the estimated useful lives of the assets. Leasehold improvements are amortized over the shorter of the lease term or the estimated useful life of the related asset. The estimated useful lives of the Company’s property and equipment are as follows: Estimated Useful Life (In Years) Computer equipment 3 Capitalized software 3 Website development costs 3 Furniture and fixtures 5 Leasehold improvements Lesser of asset life or lease term Expenditures for maintenance and repairs are charged to expense as incurred, whereas major betterments are capitalized as additions to property and equipment. The Company reviews its property and equipment whenever events or changes in circumstances indicate that the carrying value of certain assets might not be recoverable. In these instances, the Company recognizes an impairment loss when it is probable that the estimated cash flows are less than the carrying value of the asset. |
Foreign Currency Translation | Foreign Currency Translation The reporting currency of the Company is the U.S. dollar. The functional currency of the Company’s foreign subsidiaries is the local currency of each subsidiary. All assets and liabilities in the balance sheets of entities whose functional currency is a currency other than the U.S. dollar are translated into U.S. dollar equivalents at exchange rates as follows: (1) asset and liability accounts at period‑end rates; (2) income statement accounts at weighted‑average exchange rates for the period; and (3) stockholders’ equity accounts at historical exchange rates. The resulting translation adjustments are excluded from income (loss) and reflected as a separate component of stockholders’ equity (deficit). Foreign currency transaction gains and losses are included in net income (loss) for the period. The Company may periodically have certain intercompany foreign currency transactions that are deemed to be of a long‑term investment nature; exchange adjustments related to those transactions are made directly to a separate component of stockholders’ equity (deficit). |
Capitalized Website and Software Development Costs | Capitalized Website and Software Development Costs The Company capitalizes certain costs associated with the development of its websites and internal‑use software products after the preliminary project stage is complete, and until the software is ready for its intended use. Research and development costs incurred during the preliminary project stage or costs incurred for data conversion activities, training, maintenance, and general and administrative or overhead costs are expensed as incurred. Capitalization begins when the preliminary project stage is complete; management authorizes and commits to the funding of the software project with appropriate authority; it is probable the project will be completed; the software will be used to perform the functions intended; and certain functional and quality standards have been met. Qualified costs incurred during the operating stage of the Company’s software applications relating to upgrades and enhancements are capitalized to the extent it is probable that they will result in added functionality, while costs that cannot be separated between maintenance of, and minor upgrades and enhancements to, internal‑use software are expensed as incurred. Capitalized website development costs and software development costs are amortized on a straight‑line basis over their estimated useful life of three years. Management evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. During the years ended December 31, 2017, 2016, and 2015, the Company capitalized $2,215, $1,372, and $1,262 of software and website development costs, respectively. The Company recorded amortization expense associated with its capitalized software and website development costs of $812, $343, and $153 for the years ended December 31, 2017, 2016, and 2015, respectively. |
Impairment of Long-Lived Assets | Impairment of Long‑Lived Assets The Company evaluates the recoverability of long‑lived assets, such as property and equipment, for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. During this review, the Company re‑evaluates the significant assumptions used in determining the original cost and estimated lives of long‑lived assets. Although the assumptions may vary from asset to asset, they generally include operating results, changes in the use of the asset, cash flows, and other indicators of value. Management then determines whether the remaining useful life continues to be appropriate, or whether there has been an impairment of long‑lived assets based primarily upon whether expected future undiscounted cash flows are sufficient to support the assets’ recovery. Recoverability of these assets is measured by comparison of the carrying amount of the asset to the future undiscounted cash flows the asset is expected to generate. If the asset is considered to be impaired, the amount of any impairment is measured as the difference between the carrying value and the fair value of the impaired asset. For the years ended December 31, 2017, 2016, and 2015, the Company did not identify any impairment of its long‑lived assets. |
Income Taxes | Income Taxes The Company accounts for income taxes in accordance with the asset and liability method. Under this method, deferred tax assets and liabilities are recognized based on temporary differences between the financial reporting and income tax bases of assets and liabilities using statutory rates. In addition, this method requires a valuation allowance against net deferred tax assets if, based upon the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. The Company accounts for uncertain tax positions recognized in the consolidated financial statements by prescribing a more‑likely‑than‑not threshold for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The Company has no recorded liabilities for uncertain tax positions as of December 31, 2017 and 2016. The Company uses the asset and liability method to account for income taxes in accordance with ASC 740, Income Taxes |
Disclosure of Fair Value of Financial Instruments | Disclosure of Fair Value of Financial Instruments The carrying amounts of the Company’s financial instruments, which include cash and cash equivalents, investments, accounts receivable, accounts payable, and accrued expenses, approximated their fair values at December 31, 2017 and 2016 due to the short‑term nature of these instruments. The Company has evaluated the estimated fair value of financial instruments using available market information. The use of different market assumptions, estimation methodologies, or both, could have a significant effect on the estimated fair value amounts. See Note 3 for further discussion. |
Stock-Based Compensation | Stock‑Based Compensation For stock‑based awards issued under the Company’s stock‑based compensation plans, which are more fully described in Note 8, the fair value of each award is estimated on the date of grant, and, up through the year ended December 31, 2016, an estimated forfeiture rate was used when calculating stock‑based compensation expense for the period. The Company recognizes compensation expense for service-based awards on a straight-line basis over the requisite service period for each separate vesting portion of the award, with the amount of compensation expense recognized at any date at least equaling the portion of the grant-date fair value of the award that is vested at that date. Certain awards granted by the Company prior to the IPO were subject to service‑based vesting conditions and a performance‑based vesting condition achieved upon a liquidity event, defined as either a change of control or an IPO. The Securities and Exchange Commission’s declaration of effectiveness of the Company’s registration statement on Form S-1 on October 11, 2017 satisfied the liquidity event performance condition. Upon the achievement of the liquidity event, the Company recorded previously unrecognized cumulative stock-based compensation expense of $2.5 million related to these awards. Given the absence of an active market for the Company’s common stock prior to the IPO, the Board, the members of which the Company believes have extensive business, finance, and venture capital experience, was required to estimate the fair value of the Company’s common stock at the time of each grant of a stock‑based award. The Company and the Board utilized various valuation methodologies in accordance with the framework of the American Institute of Certified Public Accountants’ Technical Practice Aid, Valuation of Privately‑Held Company Equity Securities Issued as Compensation The Company believes this methodology was reasonable based upon the Company’s internal peer company analyses, and further supported by arm’s‑length transactions involving the Company’s convertible Preferred Stock. As the Company’s common stock was not actively traded, the determination of fair value involved assumptions, judgments, and estimates. If different assumptions had been made, stock‑based compensation expense, consolidated net income (loss), and consolidated net income (loss) per share could have been significantly different. For RSUs granted subsequent to the IPO, the fair value is determined based on the closing price of the Company’s Class A common stock as reported on the Nasdaq Global Select Market on the date of grant. For RSUs issued under the Company’s stock‑based compensation plans prior to the IPO, the fair value of each grant was calculated based on the estimated fair value of the Company’s common stock on the date of grant. The Company estimated the fair value of most stock option awards on the date of grant using the Black‑Scholes option‑pricing model. Certain stock option awards that have an exercise price that was materially above the current estimated fair market value of the Company’s stock are considered to be “deeply out of the money,” and are valued at the date of grant using a binomial lattice option‑pricing model. The fair value of each option grant issued under the Company’s stock‑based compensation plans that was not considered “deeply out of the money,” was estimated using the Black‑Scholes option‑pricing model. As there was no public market for its common stock prior to the IPO, the Company determined the volatility for options granted based on an analysis of reported data for a peer group of companies that issued options with substantially similar terms. The expected volatility of granted options has been determined using a weighted‑average of the historical volatility measures of this peer group of companies. The expected life of options has been determined utilizing the “simplified method.” The simplified method is based on the average of the vesting tranches and the contractual life of each grant. The risk‑free interest rate is based on a treasury instrument whose term is consistent with the expected life of the stock options. The Company has not paid, and does not anticipate paying, cash dividends on its common stock; therefore, the expected dividend yield was assumed to be zero. In addition, the Company applied an estimated forfeiture rate of 5% in determining the expense recorded in the accompanying consolidated statements of operations for the years ended December 31, 2016 and 2015. In March 2016, the FASB issued ASU 2016‑09, Compensation — Stock Compensation (Topic 718): Improvements to Employee Share‑Based Payment Accounting the Company recorded tax benefits of related to differences between tax deductions related to stock compensation and the corresponding financial statement expense compensation. The weighted‑average fair value of options granted during the years ended December 31, 2016 and 2015 was $0.90 and $0.46, respectively. No options were granted during 2017. The weighted‑average assumptions utilized to determine the fair value of options granted are presented in the following table: 2016 2015 Expected dividend yield — — Expected volatility 49 % 64 % Risk – 1.57 % 1.73 % Expected term (in years) 6.07 6.05 See Note 8 for a summary of the stock option and RSU activity for the years ended December 31, 2017, 2016, and 2015. |
Advertising Costs | Advertising Costs Advertising costs are expensed as incurred. Advertising expense, which is included within sales and marketing expense in the consolidated statements of operations, was $173,186, $112,167, and $61,865 for the years ended December 31, 2017, 2016, and 2015, respectively. |
Leases | Leases The Company categorizes leases at their inception as either operating or capital leases. On certain lease arrangements, the Company may receive rent holidays or other incentives. The Company recognizes lease costs on a straight‑line basis once control of the space is achieved, without regard to deferred payment terms, such as rent holidays, that defer the commencement date of required payments or escalating payment amounts. The difference between required lease payments and rent expense has been recorded as deferred rent. Additionally, incentives received are treated as a reduction of costs over the term of the agreement, as they are considered an inseparable part of the lease agreement. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Comprehensive income (loss) is defined as the change in stockholders’ equity of a business enterprise during a period from transactions and other events and circumstances from non‑owner sources. Comprehensive income (loss) consists of net income (loss) and other comprehensive (loss) income, which includes certain changes in equity that are excluded from net income (loss). Specifically, cumulative foreign currency translation adjustments are included in accumulated other comprehensive income (loss). As of December 31, 2017, 2016, and 2015, accumulated other comprehensive income (loss) is presented separately on the consolidated balance sheets and consists entirely of cumulative foreign currency translation adjustments. |
Contingent Liabilities | Contingent Liabilities The Company has certain contingent liabilities that arise in the ordinary course of business activities. The Company accrues for loss contingencies when losses become probable and are reasonably estimable. If the reasonable estimate of the loss is a range and no amount within the range is a better estimate, the minimum amount of the range is recorded as a liability. The Company does not accrue for contingent losses that, in its judgment, are considered to be reasonably possible, but not probable; however, it discloses the range of such reasonably possible losses. |
Emerging Growth Company Status | Emerging Growth Company Status The Company is an “emerging growth company,” as defined in the Jumpstart Our Business Startups Act, or JOBS Act, and may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies. The Company may take advantage of these exemptions until the Company is no longer an emerging growth company. Section 107 of the JOBS Act provides that an emerging growth company can take advantage of the extended transition period afforded by the JOBS Act for the implementation of new or revised accounting standards. The Company has elected to use the extended transition period for complying with new or revised accounting standards and as a result of this election, its financial statements may not be comparable to companies that comply with public company effective dates. The Company may take advantage of these exemptions up until the last day of the fiscal year following the fifth anniversary of the IPO or such earlier time that it is no longer an emerging growth company. The Company would cease to be an emerging growth company if it has more than $1.07 billion in annual revenue, has more than $700.0 million in market value of its stock held by non‑affiliates (and it has been a public company for at least 12 months, and has filed one annual report on Form 10‑K), or it issues more than $1.0 billion of non‑convertible debt securities over a three‑year period. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements From time to time, new accounting pronouncements are issued by the FASB or other standard setting bodies and adopted by the Company on or prior to the specified effective date. Unless otherwise discussed, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on its financial position or results of operations upon adoption. Revenue Recognition In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) Revenue from Contracts with Customers expects to adopt the standard, using the modified retrospective method. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of Effective Date The Company has developed an implementation plan to adopt this new guidance. As part of this plan, the Company is currently assessing the impact of the new guidance on its results of operations. Based on the Company’s procedures performed to date, nothing has come to its attention that would indicate that the adoption of ASU 2014-09 will have a material impact on its revenue recognition; however, further analysis is required and the Company will continue to evaluate this assessment throughout 2018. While the Company is still evaluating the impact that this guidance will have on its financial statements and related disclosures, the Company’s preliminary assessment is that there will be an impact relating to the accounting for costs to acquire a contract. Under the standard, the Company will be required to capitalize certain costs, primarily commission expense to sales representatives, on its consolidated balance sheet and amortize such costs over the period of performance for the underlying customer contracts. The Company is still evaluating the impact of capitalizing costs to execute a contract. Other Recent Accounting Pronouncements In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments In February 2016, the FASB issued ASU No. 2016-02 , Leases (Topic 842) |
Fair Value Measurement and Disclosures | ASC 820 identifies fair value as the exchange price, or exit price, representing the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants based on the highest and best use of the asset or liability. As such, fair value is a market‑based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. The Company uses valuation techniques to measure fair value that maximize the use of observable inputs and minimize the use of unobservable inputs. These inputs are prioritized as follows: Level 1 — Quoted unadjusted prices for identical instruments in active markets. Level 2 — Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model‑derived valuations in which all observable inputs and significant value drivers are observable in active markets. Level 3 — Model‑derived valuations in which one or more significant inputs or significant value drivers are unobservable, including assumptions developed by the Company. The valuation techniques that may be used to measure fair value are as follows: Market Approach — Uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. Income Approach — Uses valuation techniques to convert future amounts to a single present amount based on current market expectations about those future amounts, including present value techniques, option pricing models, and excess earnings method. Cost Approach — Based on the amount that currently would be required to replace the service capacity of an asset (replacement cost). |
Earnings Per Share | Net income (loss) per share information is determined using the two‑class method, which includes the weighted‑average number of shares of common stock outstanding during the period and other securities that participate in dividends (a participating security). The Company considers the Preferred Stock to have been participating securities because they included rights to participate in dividends with the common stock. Under the two‑class method, basic net income (loss) per share attributable to common stockholders is computed by dividing the net income (loss) attributable to common stockholders by the weighted‑average number of shares of common stock outstanding during the period. Diluted net income (loss) per share attributable to common stockholders is computed using the more dilutive of (1) the two‑class method or (2) the if‑converted method. The Company allocates net income first to preferred stockholders based on dividend rights under the Company’s certificate of incorporation and then to preferred and common stockholders based on ownership interests. Net losses are not allocated to preferred stockholders as they do not have an obligation to share in the Company’s net losses. |
Summary of Significant Accoun27
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Changes in Allowance for Doubtful Accounts | Below is a summary of the changes in the Company’s allowance for doubtful accounts for the years ended December 31, 2017, 2016, and 2015: Balance at Beginning of Period Provision Write – recoveries Balance at End of Period Year ended December 31, 2017 $ 164 $ 1,117 $ (787 ) $ 494 Year ended December 31, 2016 75 508 (419 ) 164 Year ended December 31, 2015 30 284 (239 ) 75 |
Schedule of Estimated Useful Lives of Property and Equipment | The estimated useful lives of the Company’s property and equipment are as follows: Estimated Useful Life (In Years) Computer equipment 3 Capitalized software 3 Website development costs 3 Furniture and fixtures 5 Leasehold improvements Lesser of asset life or lease term |
Schedule of Weighted-Average Assumptions Utilized to Determine Fair Value of Options Granted | The weighted‑average assumptions utilized to determine the fair value of options granted are presented in the following table: 2016 2015 Expected dividend yield — — Expected volatility 49 % 64 % Risk – 1.57 % 1.73 % Expected term (in years) 6.07 6.05 |
Fair Value of Financial Instr28
Fair Value of Financial Instruments Including Cash, Cash Equivalents and Investments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Levels, Assets Measured at Fair Value on Recurring Basis | The following tables present, for each of the fair value levels, the Company’s assets that are measured at fair value on a recurring basis at December 31, 2017 and 2016: December 31, 2017 Quoted Prices in Active Markets for Identical Assets (Level 1 Inputs) Significant Other Observable Inputs (Level 2 Inputs) Significant Unobservable Inputs (Level 3 Inputs) Total Assets: Cash equivalents: Money market funds $ 60,709 $ — $ — $ 60,709 Investments: Certificates of deposit — 50,000 — 50,000 Total $ 60,709 $ 50,000 $ — $ 110,709 December 31, 2016 Quoted Prices in Active Markets for Identical Assets (Level 1 Inputs) Significant Other Observable Inputs (Level 2 Inputs) Significant Unobservable Inputs (Level 3 Inputs) Total Assets: Investments: Certificates of deposit $ — $ 44,774 $ — $ 44,774 Total $ — $ 44,774 $ — $ 44,774 |
Schedule of Cash, Cash Equivalents, and Investments | The following is a summary of cash, cash equivalents, and investments as of December 31, 2017 and 2016. Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value December 31, 2017: Cash and cash equivalents due in 90 days or less $ 87,709 $ — $ — $ 87,709 Investments: Certificates of deposit due in one year or less 50,000 50,000 Total cash, cash equivalents, and investments $ 137,709 $ — $ — $ 137,709 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value December 31, 2016: Cash and cash equivalents due in 90 days or less $ 29,476 $ — $ — $ 29,476 Investments: Certificates of deposit due in one year or less 44,774 44,774 Total cash, cash equivalents, and investments $ 74,250 $ — $ — $ 74,250 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment consists of the following: At December 31, 2017 2016 Computer equipment $ 3,532 $ 2,001 Capitalized software 174 114 Website development costs 4,895 2,680 Furniture and fixtures 4,421 3,386 Leasehold improvements 10,797 8,202 Construction in progress 46 119 23,865 16,502 Less accumulated depreciation (7,302 ) (3,722 ) Property and equipment, net $ 16,563 $ 12,780 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accrued Liabilities Current [Abstract] | |
Schedule of Accrued Expenses | Accrued expenses consist of the following: At December 31, 2017 2016 Accrued bonuses $ 7,807 $ 4,662 Other accrued expenses 5,781 3,722 $ 13,588 $ 8,384 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Commitments Under Company's Operating Leases | Future minimum rental commitments under the Company’s operating leases at December 31, 2017 are as follows: Year Ending December 31, Operating Lease Commitments 2018 $ 7,363 2019 7,653 2020 7,694 2021 7,794 2022 and thereafter 9,775 $ 40,279 |
Convertible Preferred Stock a32
Convertible Preferred Stock and Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Summary of Preferred Stock | Prior to the Company’s IPO, at which time all shares of Preferred Stock were converted into shares of common stock, the Company’s Preferred Stock consisted of the following: Original Issue Price Per Share Shares Authorized Outstanding Liquidation Amount Carrying Value Series A Preferred Stock $ 0.525053 3,333,000 2,824,703 $ 1,483 $ 1,483 Series B Preferred Stock $ 0.780899 3,329,497 2,938,486 2,295 2,295 Series C Preferred Stock $ 0.849012 1,648,978 1,550,612 1,316 1,316 Series D Preferred Stock $ 40.642989 1,673,105 1,673,105 68,000 67,872 Series E Preferred Stock $ 54.190650 1,107,202 1,107,202 60,000 59,732 11,091,782 10,094,108 $ 133,094 $ 132,698 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Stock Option Activity | The following is a summary of the stock option activity for all stock‑based compensation plans during the year ended December 31, 2017: Common Stock Weighted-Average Exercise Price for Equity Weighted-Average Contractual Life (In Years) Aggregate Intrinsic Value ( 1) Outstanding, December 31, 2016 5,698,812 $ 1.63 6.9 23,893 Granted — — Exercised (274,784 ) 1.45 2,238 Forfeited and cancelled (382,488 ) 2.12 Outstanding, December 31, 2017 5,041,540 $ 1.60 6.0 143,059 Options exercisable at December 31, 2017 3,981,196 $ 1.02 5.6 115,157 (1) The aggregate intrinsic value was calculated based on the positive difference, if any, between the estimated fair value of our common stock on December 31, 2015, 2016, and, 2017, respectively, or the date of exercise, as appropriate, and the exercise price of the underlying options. |
Summary of Restricted Stock Unit Activity | The following is a summary of the RSU activity during the year ended December 31, 2017: Number of Shares Weighted- Average Grant Date Fair Value Aggregate Intrinsic Value Unvested outstanding, December 31, 2016 1,580,094 $ 3.25 $ 8,754 Granted 1,606,538 16.99 27,298 Vested (693,922 ) 3.61 (13,276 ) Cancelled (120,330 ) 5.45 (1,594 ) Unvested outstanding, December 31, 2017 2,372,380 $ 12.34 $ 71,124 |
Summary of Stock-based Compensation Expense by Award Type | Year Ended December 31, 2017 2016 2015 Options $ 281 $ 322 $ 1,040 RSUs 4,747 — — Total stock-based compensation $ 5,028 $ 322 $ 1,040 |
Summary of Allocation of Stock-based Compensation Expense | Year Ended December 31, 2017 2016 2015 Cost of revenue $ 151 $ 18 $ 4 Sales and marketing expense 1,911 163 67 Product, technology, and development expense 1,637 104 883 General and administrative expense 1,329 37 86 $ 5,028 $ 322 $ 1,040 |
Summary of Shares of Common Stock Reserved for Future Issuance | At December 31, 2017, the Company had reserved the following shares of voting common stock for future issuance: Common stock options outstanding 5,041,540 Restricted stock units outstanding 3,066,302 Shares available for issuance under the 2017 Plan 7,831,708 Total shares of authorized common stock reserved for future issuance 15,939,550 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Reconciliation of Numerator and Denominator Used in Calculation of Basic and Diluted Net (Loss) Income Per Share | The following table presents a reconciliation of the numerator and denominator used in the calculation of basic and diluted net income (loss) per share: Year Ended December 31, 2017 2016 2015 Numerator: Net income (loss) $ 13,199 $ 6,497 $ (1,636 ) Deemed dividend to preferred stockholders — (32,087 ) (15,930 ) Net income attributable to participating securities (6,098 ) — — Net income (loss) attributable to common stockholders — basic $ 7,101 $ (25,590 ) $ (17,566 ) Net income (loss) $ 13,199 $ 6,497 $ (1,636 ) Deemed dividend to preferred stockholders — (32,087 ) (15,930 ) Net income attributable to participating securities (5,829 ) — — Net income (loss) attributable to common stockholders — diluted $ 7,370 $ (25,590 ) $ (17,566 ) Denominator: Weighted–average number of shares of common stock used in computing net income (loss) per share attributable to common stockholders — basic 55,835,265 44,138,922 43,141,236 Dilutive effect of share equivalents resulting from stock options 4,290,362 — — Dilutive effect of share equivalents resulting from unvested restricted stock units 511,957 — — Weighted–average number of shares of common stock used in computing net income (loss) per share — diluted 60,637,584 44,138,922 43,141,236 Net income (loss) per share attributable to common stockholders: Basic $ 0.13 $ (0.58 ) $ (0.41 ) Diluted 0.12 $ (0.58 ) $ (0.41 ) |
Schedule of Potentially Dilutive Common Stock Equivalents Excluded from Calculation of Diluted Weighted-average Shares Outstanding | The following potentially dilutive common stock equivalents have been excluded from the calculation of diluted weighted‑average shares outstanding for the years ended December 31, 2017, 2016, and 2015, as their effect would have been anti‑dilutive for the periods presented: Year Ended December 31, 2017 2016 2015 Stock options outstanding — 5,698,812 5,626,710 Restricted stock units outstanding 829 1,580,094 553,986 Convertible preferred stock — 10,094,108 9,586,620 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Domestic and Foreign Components of Income (Loss) Before Income Taxes | The domestic and foreign components of income (loss) before income taxes are as follows: Year Ended December 31, 2017 2016 2015 United States $ 15,543 $ 8,919 $ (2,540 ) Foreign 294 26 — Income (loss) before income taxes $ 15,837 $ 8,945 $ (2,540 ) |
Schedule of Provision for (Benefit From) Income Taxes | The provision for (benefit from) income taxes contained the following components: Year Ended December 31, 2017 2016 2015 Current provision: Federal $ 3,262 $ 1,440 $ (276 ) State 431 223 21 Foreign 62 3 — 3,755 1,666 (255 ) Deferred (benefit) provision: Federal (755 ) 880 (544 ) State (343 ) (98 ) (105 ) Foreign (19 ) — — (1,117 ) 782 (649 ) Income tax (benefit) provision $ 2,638 $ 2,448 $ (904 ) |
Schedule of Effective Tax Rate Greater than U.S. Federal Statutory Rate Primarily Due to State Income Taxes | The Company’s effective tax rate for the year ended December 31, 2015 is greater than the U.S. federal statutory rate primarily due to state income taxes. Year Ended December 31, 2017 2016 2015 U.S. federal taxes at statutory rate 35.0 % 35.0 % 34.0 % State taxes, net of federal benefit 3.1 4.5 3.6 Nondeductible expenses 1.2 2.0 (1.4 ) Tax deductible IPO costs (9.3 ) — — Stock compensation (4.4 ) — — Foreign rate differential (0.4 ) (0.1 ) — Credits (9.0 ) (15.0 ) — Other 0.5 1.0 (0.6 ) Total 16.7 % 27.4 % 35.6 % |
Schedule of Income Tax Effect of Each Type of Temporary Difference and Carryforward | The approximate income tax effect of each type of temporary difference and carryforward as of December 31, 2017 and 2016 is as follows: As of December 31, 2017 2016 Deferred tax assets: Credit carryforwards $ 166 $ 141 Stock-based compensation 1,301 67 Landlord allowance on leasehold improvements 1,078 1,468 Deferred rent 583 968 Accruals and reserves 606 612 3,734 3,256 Deferred tax liability: Fixed assets (2,909 ) (3,548 ) (2,909 ) (3,548 ) Net deferred tax assets (liabilities) $ 825 $ (292 ) |
Segment and Geographic Inform36
Segment and Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Summary of Operations by Segment and Geographical Area | Information regarding the Company’s operations by segment and geographical area is presented below: Year Ended December 31, 2017 2016 2015 Segment revenue: United States $ 307,472 $ 195,824 $ 98,566 International 9,389 2,317 22 Total revenue $ 316,861 $ 198,141 $ 98,588 Year Ended December 31, 2017 2016 2015 Segment income (loss) from operations: United States $ 41,586 $ 27,461 $ 637 International (26,312 ) (18,890 ) (3,165 ) Total income (loss) from operations $ 15,274 $ 8,571 $ (2,528 ) |
Components of Other Income (E37
Components of Other Income (Expense), Net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Income And Expenses [Abstract] | |
Schedule of Components of Other Income (Expense), Net | The components of other income (expense), net, are as follows: Year Ended December 31, 2017 2016 2015 Interest income $ 869 $ 416 $ — Interest expense (29 ) (26 ) (12 ) Foreign exchange losses (277 ) (16 ) — Other income (expense), net $ 563 $ 374 $ (12 ) |
Quarterly Financial Results (38
Quarterly Financial Results (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Data [Abstract] | |
Schedule of Unaudited Quarterly Financial Information | The following table presents certain unaudited quarterly financial information for the eight quarters in the period ended December 31, 2017. This information has been prepared on the same basis as the audited financial statements and includes all adjustments (consisting only of normal recurring adjustments) necessary to present fairly the unaudited quarterly results of operations set forth herein. Fourth Third Second First Quarter Quarter Quarter Quarter Year ended December 31, 2017 Revenue $ 90,597 $ 82,989 $ 76,240 $ 67,035 Cost of revenue 5,242 4,720 4,322 3,325 Gross profit 85,355 78,269 71,918 63,710 Net income 2,267 2,379 4,346 4,207 Basic net income per share (1) $ 0.02 $ 0.02 $ 0.04 $ 0.04 Diluted net income per share (1) $ 0.02 $ 0.02 $ 0.04 $ 0.04 Year ended December 31, 2016 Revenue $ 60,764 $ 53,136 $ 45,627 $ 38,614 Cost of revenue 2,904 2,852 2,141 1,678 Gross profit 57,860 50,284 43,486 36,936 Net income 3,838 2,138 269 252 Basic net (loss) income per share (1) $ (0.66 ) $ 0.02 $ (0.00 ) $ (0.00 ) Diluted net (loss) income per share (1) $ (0.66 ) $ 0.02 $ (0.00 ) $ (0.00 ) (1) The amounts were computed independently for each quarter, and the sum of the quarters may not total the annual amounts. |
Organization and Business Des39
Organization and Business Description - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Oct. 16, 2017 | Jun. 26, 2015 | Dec. 31, 2017 | Dec. 31, 2015 |
Organization And Business Description [Line Items] | ||||
State of incorporation | Delaware | |||
Date of incorporation | Jun. 26, 2015 | |||
Reclassified retained earnings in connection with stock conversion | $ (5,750) | |||
Issuance of stock, net of issuance/offering costs | $ 43,240 | |||
Net proceeds received after deducting underwriting discounts and commissions and offering costs | $ 44,382 | |||
Conversion of convertible securities into shares of common stock | 9,091,484 | |||
Preferred stock, shares outstanding | 0 | |||
Class A Common Stock | ||||
Organization And Business Description [Line Items] | ||||
Conversion of convertible securities into shares of common stock | 60,564,678 | |||
Class A Common Stock | Selling Shareholders | ||||
Organization And Business Description [Line Items] | ||||
Issuance of stock, net of issuance/offering costs, Shares | 7,605,000 | |||
Class A Common Stock | Subsequent Conversion | ||||
Organization And Business Description [Line Items] | ||||
Conversion of convertible securities into shares of common stock | 40,376,452 | |||
Class B Common Stock | ||||
Organization And Business Description [Line Items] | ||||
Conversion of convertible securities into shares of common stock | 40,376,452 | |||
IPO | ||||
Organization And Business Description [Line Items] | ||||
Preferred stock, shares outstanding | 0 | |||
IPO | Class A Common Stock | ||||
Organization And Business Description [Line Items] | ||||
Issuance of stock, net of issuance/offering costs, Shares | 3,205,000 | |||
Number of shares issued for services | 705,000 | |||
Offering price per share | $ 16 | |||
Issuance of stock, net of issuance/offering costs | $ 51,300 | |||
Net proceeds received after deducting underwriting discounts and commissions and offering costs | 43,200 | |||
Underwriting discounts and commissions | 3,600 | |||
Stock issuance costs | $ 4,500 | |||
Conversion of convertible securities into shares of common stock | 20,188,226 | |||
Retained Earnings (Accumulated Deficit) | ||||
Organization And Business Description [Line Items] | ||||
Reclassified retained earnings in connection with stock conversion | $ (1,057) | $ (1,057) |
Summary of Significant Accoun40
Summary of Significant Accounting Policies - Additional Information (Details) | 12 Months Ended | |||
Dec. 31, 2017USD ($)Customershares | Dec. 31, 2016USD ($)Customer$ / shares | Dec. 31, 2015USD ($)Customer$ / shares | Oct. 11, 2017USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | ||||
Contractual subscription cancellable period | 30 days | |||
Multiple - element service arrangements, Contractual subscription cancellable period | 30 days | |||
Description of significant off-balance sheet risk | The Company has no significant offbalance sheet risk, such as foreign exchange contracts, option contracts, or other foreign hedging arrangements. | |||
Significant off-balance sheet risk | $ 0 | |||
Realized gains or losses on investments | 0 | $ 0 | $ 0 | |
Other than temporary impairments recognized in statements of operations | 0 | 0 | ||
Restricted cash | 1,843,000 | 2,044,000 | ||
Impairment of long lived assets | 0 | 0 | $ 0 | |
Liabilities for uncertain tax positions | $ 0 | $ 0 | ||
Unrecognized stock-based compensation expense related to stock-based awards | $ 2,500,000 | |||
Expected dividend yield | 0.00% | |||
Estimated forfeiture rate | 5.00% | 5.00% | ||
Tax benefits | $ (2,638,000) | $ (2,448,000) | $ 904,000 | |
Weighted average fair value of options granted | $ / shares | $ 0.90 | $ 0.46 | ||
Options granted during period | shares | 0 | |||
Advertising expense | $ 173,186,000 | $ 112,167,000 | $ 61,865,000 | |
Emerging growth company description | The Company would cease to be an emerging growth company if it has more than $1.07 billion in annual revenue, has more than $700.0 million in market value of its stock held by nonaffiliates (and it has been a public company for at least 12 months, and has filed one annual report on Form 10K), or it issues more than $1.0 billion of nonconvertible debt securities over a threeyear period. | |||
Debt security maturity period | 3 years | |||
Accounting Standards Update 2016-09 | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Tax benefits | $ 681,000 | |||
Website and Software Development Costs | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Estimated useful life | 3 years | |||
Software and website development costs capitalized | $ 2,215,000 | 1,372,000 | 1,262,000 | |
Amortization expense | $ 812,000 | $ 343,000 | $ 153,000 | |
Sales Revenue, Net | Concentration of Credit Risk | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Concentration of credit risk, percentage | 10.00% | 10.00% | 14.00% | |
Number of major customers | Customer | 0 | 0 | 1 | |
Net Accounts Receivable | Concentration of Credit Risk | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Number of major customers | Customer | 2 | 2 | ||
Net Accounts Receivable | Concentration of Credit Risk | Customer One | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Concentration of credit risk, percentage | 29.00% | 24.00% | ||
Net Accounts Receivable | Concentration of Credit Risk | Customer Two | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Concentration of credit risk, percentage | 17.00% | 15.00% | ||
Minimum | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Contractual subscription term | 1 month | |||
Multiple - element service arrangements, Contractual subscription term | 1 month | |||
Annual gross revenue | $ 1,070,000,000 | |||
Market value of common stock held by non-affiliates | 700,000,000 | |||
Non convertible debt securities | $ 1,000,000,000 | |||
Maximum | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Contractual subscription term | 1 year | |||
Multiple - element service arrangements, Contractual subscription term | 1 year | |||
Maturity of certificates of deposit, description | As of December 31, 2017 and 2016, investments consisted of U.S. certificates of deposit, or CDs, with remaining maturities of less than twelve months. | |||
Maturity period of certificates of deposit | 12 months | 12 months |
Summary of Significant Accoun41
Summary of Significant Accounting Policies - Summary of Changes in Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Receivables [Abstract] | |||
Balance at Beginning of Period | $ 164 | $ 75 | $ 30 |
Provision for doubtful accounts | 1,117 | 508 | 284 |
Write–offs, net of recoveries | (787) | (419) | (239) |
Balance at End of Period | $ 494 | $ 164 | $ 75 |
Summary of Significant Accoun42
Summary of Significant Accounting Policies - Schedule of Estimated Useful Lives of Property and Equipment (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Computer Equipment | |
Property Plant And Equipment [Line Items] | |
Estimated Useful Life | 3 years |
Capitalized Software | |
Property Plant And Equipment [Line Items] | |
Estimated Useful Life | 3 years |
Website Development Costs | |
Property Plant And Equipment [Line Items] | |
Estimated Useful Life | 3 years |
Furniture and Fixtures | |
Property Plant And Equipment [Line Items] | |
Estimated Useful Life | 5 years |
Leasehold Improvements | |
Property Plant And Equipment [Line Items] | |
Estimated Useful Life | Lesser of asset life or lease term |
Summary of Significant Accoun43
Summary of Significant Accounting Policies - Schedule of Weighted-Average Assumptions Utilized to Determine Fair Value of Options Granted (Details) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Expected volatility | 49.00% | 64.00% |
Risk–free interest rate | 1.57% | 1.73% |
Expected term (in years) | 6 years 26 days | 6 years 18 days |
Fair Value of Financial Instr44
Fair Value of Financial Instruments Including Cash, Cash Equivalents and Investments - Schedule of Fair Value Levels, Assets Measured at Fair Value on Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | $ 110,709 | $ 44,774 |
Quoted Prices in Active Markets for Identical Assets (Level 1 Inputs) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 60,709 | |
Significant Other Observable Inputs (Level 2 Inputs) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 50,000 | 44,774 |
Money Market Funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents: | 60,709 | |
Money Market Funds | Quoted Prices in Active Markets for Identical Assets (Level 1 Inputs) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents: | 60,709 | |
Certificates of Deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments: | 50,000 | 44,774 |
Certificates of Deposit | Significant Other Observable Inputs (Level 2 Inputs) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments: | $ 50,000 | $ 44,774 |
Fair Value of Financial Instr45
Fair Value of Financial Instruments Including Cash, Cash Equivalents and Investments - Schedule of Cash, Cash Equivalents, and Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Amortized Cost | ||
Cash And Cash Equivalents [Line Items] | ||
Cash and cash equivalents due in 90 days or less | $ 87,709 | $ 29,476 |
Certificates of deposit due in one year or less | 50,000 | 44,774 |
Total cash, cash equivalents, and investments | 137,709 | 74,250 |
Estimated Fair Value | ||
Cash And Cash Equivalents [Line Items] | ||
Cash and cash equivalents due in 90 days or less | 87,709 | 29,476 |
Certificates of deposit due in one year or less | 50,000 | 44,774 |
Total cash, cash equivalents, and investments | $ 137,709 | $ 74,250 |
Property and Equipment, Net - S
Property and Equipment, Net - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 23,865 | $ 16,502 |
Less accumulated depreciation | (7,302) | (3,722) |
Property and equipment, net | 16,563 | 12,780 |
Computer Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 3,532 | 2,001 |
Website and Software Development Costs | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 174 | 114 |
Website Development Costs | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 4,895 | 2,680 |
Furniture and Fixtures | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 4,421 | 3,386 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 10,797 | 8,202 |
Construction in Progress | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 46 | $ 119 |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property Plant And Equipment [Line Items] | |||
Depreciation and amortization | $ 3,795 | $ 2,072 | $ 1,122 |
Capitalized Software and Website Development Costs | |||
Property Plant And Equipment [Line Items] | |||
Depreciation and amortization | $ 3,795 | $ 2,072 | $ 1,122 |
Accrued Expenses - Schedule of
Accrued Expenses - Schedule of Accrued Expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Accrued Liabilities Current [Abstract] | ||
Accrued bonuses | $ 7,807 | $ 4,662 |
Other accrued expenses | 5,781 | 3,722 |
Accrued expenses, Total | $ 13,588 | $ 8,384 |
Accrued Expenses - Additional I
Accrued Expenses - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Accrued Liabilities Current [Abstract] | ||
Accrued bonuses | $ 7,807 | $ 4,662 |
Increase Decrease In Accrued Bonus Expenses | $ 3,100 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |||
Deferred rent and rent incentives | $ 6,813 | $ 6,583 | |
Deferred rent and rent incentives, current | 1,165 | 910 | |
Deferred rent and rent incentives, noncurrent | 5,648 | 5,673 | |
Rent expense | $ 5,994 | $ 3,678 | $ 2,700 |
Commitments and Contingencies51
Commitments and Contingencies - Schedule of Future Minimum Rental Commitments Under Company's Operating Leases (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
2,018 | $ 7,363 |
2,019 | 7,653 |
2,020 | 7,694 |
2,021 | 7,794 |
2022 and thereafter | 9,775 |
Total | $ 40,279 |
Convertible Preferred Stock a52
Convertible Preferred Stock and Stockholders' Equity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Oct. 16, 2017 | Jun. 21, 2017 | Aug. 23, 2016 | Jul. 07, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Oct. 11, 2017 |
Class Of Stock [Line Items] | ||||||||
Proceeds to repurchase Preferred stock and common stock shares | $ 60,000 | $ 18,000 | ||||||
Deemed dividend to preferred stockholders | 32,087 | 15,930 | ||||||
Preferred stock, shares authorized | 10,000,000 | 11,091,782 | 11,091,782 | |||||
Preferred stock, par value | $ 0.001 | $ 0.001 | ||||||
Common stock exercise feature | the number of shares of common stock as to which each outstanding option to purchase common stock was exercisable for and each outstanding RSU was convertible into was adjusted such that upon exercise of outstanding stock options or vesting of outstanding RSUs, each holder would receive two fully paid and nonassessable shares of Class A common stock and four fully paid and nonassessable shares of Class B common stock in respect of each share of common stock previously underlying such option or RSU | |||||||
Percentage of common stock exercise price adjusted | 0.167% | |||||||
Percentage of common stock fair value adjusted prior to recapitalization | 0.167% | |||||||
Convertible preferred stock, terms of conversion | On October 16, 2017, in connection with the closing of the IPO, all of the outstanding shares of Preferred Stock automatically converted into 20,188,226 shares of Class A common stock and 40,376,452 shares of Class B common stock. The 40,376,452 shares of Class B common stock subsequently converted into 40,376,452 shares of Class A common stock resulting in a total conversion of all outstanding shares of Preferred Stock into 60,564,678 shares of Class A common stock. | |||||||
Conversion of preferred stock, Shares | 9,091,484 | |||||||
Preferred stock, shares outstanding | 0 | |||||||
IPO | ||||||||
Class Of Stock [Line Items] | ||||||||
Preferred stock, shares outstanding | 0 | |||||||
Series D Preferred Stock | ||||||||
Class Of Stock [Line Items] | ||||||||
Offering amount, net of issuance costs | $ 67,872 | |||||||
Stock issuance costs | 128 | $ 130 | ||||||
Proceeds to repurchase Preferred stock and common stock shares | 18,000 | |||||||
Deemed dividend to preferred stockholders | $ 15,930 | |||||||
Preferred stock, shares authorized | 1,673,105 | 1,673,105 | ||||||
Series E Preferred Stock | ||||||||
Class Of Stock [Line Items] | ||||||||
Offering amount, net of issuance costs | $ 59,732 | |||||||
Stock issuance costs | 268 | $ 280 | ||||||
Deemed dividend to preferred stockholders | $ 32,087 | |||||||
Preferred stock, shares authorized | 1,107,202 | 1,107,202 | ||||||
Class A Common Stock | ||||||||
Class Of Stock [Line Items] | ||||||||
Common stock, shares authorized | 500,000,000 | 120,020,700 | 500,000,000 | 500,000,000 | ||||
Common stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | ||||
Common stock conversion terms | each share of Class A common stock issued and outstanding was recapitalized, reclassified, and reconstituted into two fully paid and nonassessable shares of outstanding Class A common stock and four fully paid and nonassessable shares of outstanding Class B common stock | |||||||
Number of shares issued upon exercise of outstanding stock options or vesting of outstanding RSUs | 2 | |||||||
Conversion of preferred stock, Shares | 60,564,678 | |||||||
Class A Common Stock | IPO | ||||||||
Class Of Stock [Line Items] | ||||||||
Stock issuance costs | $ 4,500 | |||||||
Conversion of preferred stock, Shares | 20,188,226 | |||||||
Class A Common Stock | Class A Common Stock Recapitalized, Reclassified And Reconstituted [Member] | ||||||||
Class Of Stock [Line Items] | ||||||||
Common stock issued in conversion | 2 | |||||||
Class A Common Stock | Class B Common Stock Recapitalized, Reclassified And Reconstituted [Member] | ||||||||
Class Of Stock [Line Items] | ||||||||
Common stock issued in conversion | 2 | |||||||
Class A Common Stock | Subsequent Conversion | ||||||||
Class Of Stock [Line Items] | ||||||||
Conversion of preferred stock, Shares | 40,376,452 | |||||||
Class B Common Stock | ||||||||
Class Of Stock [Line Items] | ||||||||
Common stock, shares authorized | 100,000,000 | 80,013,800 | 100,000,000 | 100,000,000 | ||||
Common stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | ||||
Common stock conversion terms | each share of Class B common stock of the Company issued and outstanding was recapitalized, reclassified, and reconstituted into two fully paid and nonassessable shares of outstanding Class A common stock and four fully paid and nonassessable shares of outstanding Class B common stock | |||||||
Number of shares issued upon exercise of outstanding stock options or vesting of outstanding RSUs | 4 | |||||||
Conversion of preferred stock, Shares | 40,376,452 | |||||||
Class B Common Stock | Class A Common Stock Recapitalized, Reclassified And Reconstituted [Member] | ||||||||
Class Of Stock [Line Items] | ||||||||
Common stock issued in conversion | 4 | |||||||
Class B Common Stock | Class B Common Stock Recapitalized, Reclassified And Reconstituted [Member] | ||||||||
Class Of Stock [Line Items] | ||||||||
Common stock issued in conversion | 4 | |||||||
Series A Preferred Stock | ||||||||
Class Of Stock [Line Items] | ||||||||
Preferred stock, shares authorized | 3,333,000 | 3,333,000 | ||||||
Series B Preferred Stock | ||||||||
Class Of Stock [Line Items] | ||||||||
Preferred stock, shares authorized | 3,329,497 | 3,329,497 | ||||||
Series C Preferred Stock | ||||||||
Class Of Stock [Line Items] | ||||||||
Preferred stock, shares authorized | 1,648,978 | 1,648,978 |
Convertible Preferred Stock a53
Convertible Preferred Stock and Stockholders' Equity - Common Stock - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2017Voteshares | |
Class Of Stock [Line Items] | |
Common stock conversion feature | each share of Class B common stock was convertible into one share of Class A common stock at the option of the holder at any time. |
Class A Common Stock | |
Class Of Stock [Line Items] | |
Common stock voting rights | one vote for each share |
Number of votes entitled to stockholders per share | 1 |
Class B Common Stock | |
Class Of Stock [Line Items] | |
Common stock voting rights | ten votes for each share |
Number of votes entitled to stockholders per share | 10 |
Class of share converted to another class | one share of Class A common stock |
Conversion of stock | shares | 1 |
Convertible Preferred Stock a54
Convertible Preferred Stock and Stockholders' Equity - Summary of Preferred Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | Oct. 16, 2017 | Oct. 11, 2017 | Jun. 21, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Temporary Equity [Line Items] | |||||
Shares Authorized | 10,000,000 | 11,091,782 | 11,091,782 | ||
Outstanding | 10,094,108 | ||||
Liquidation Amount | $ 133,094 | ||||
Carrying Value | $ 132,698 | $ 132,698 | |||
Series A Preferred Stock | |||||
Temporary Equity [Line Items] | |||||
Original Issue Price Per Share | $ 0.525053 | ||||
Shares Authorized | 3,333,000 | 3,333,000 | |||
Outstanding | 2,824,703 | 2,824,703 | 3,049,606 | ||
Liquidation Amount | $ 1,483 | ||||
Carrying Value | $ 1,483 | $ 1,483 | $ 1,601 | ||
Series B Preferred Stock | |||||
Temporary Equity [Line Items] | |||||
Original Issue Price Per Share | $ 0.780899 | ||||
Shares Authorized | 3,329,497 | 3,329,497 | |||
Outstanding | 2,938,486 | 2,938,486 | 3,296,054 | ||
Liquidation Amount | $ 2,295 | ||||
Carrying Value | $ 2,295 | $ 2,295 | $ 2,574 | ||
Series C Preferred Stock | |||||
Temporary Equity [Line Items] | |||||
Original Issue Price Per Share | $ 0.849012 | ||||
Shares Authorized | 1,648,978 | 1,648,978 | |||
Outstanding | 1,550,612 | 1,550,612 | 1,567,855 | ||
Liquidation Amount | $ 1,316 | ||||
Carrying Value | $ 1,316 | $ 1,316 | $ 1,331 | ||
Series D Preferred Stock | |||||
Temporary Equity [Line Items] | |||||
Original Issue Price Per Share | $ 40.642989 | ||||
Shares Authorized | 1,673,105 | 1,673,105 | |||
Outstanding | 1,673,105 | 1,673,105 | 1,673,105 | ||
Liquidation Amount | $ 68,000 | ||||
Carrying Value | $ 67,872 | $ 67,872 | $ 67,872 | ||
Series E Preferred Stock | |||||
Temporary Equity [Line Items] | |||||
Original Issue Price Per Share | $ 54.190650 | ||||
Shares Authorized | 1,107,202 | 1,107,202 | |||
Outstanding | 1,107,202 | 1,107,202 | |||
Liquidation Amount | $ 60,000 | ||||
Carrying Value | $ 59,732 | $ 59,732 |
Stock-based Compensation - Addi
Stock-based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Aug. 22, 2016 | Aug. 15, 2015 | Jun. 26, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Oct. 16, 2017 | Oct. 11, 2017 | Jun. 21, 2017 | Dec. 31, 2006 |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||||||||
Number of options granted in period | 0 | |||||||||
Weighted average fair value of options granted | $ 0.90 | $ 0.46 | ||||||||
Total stock-based compensation expense | $ 5,028 | $ 322 | $ 1,040 | |||||||
Capitalized software development costs excluded from stock-based compensation expense | 176 | |||||||||
Income tax benefit from stock-based compensation expense | $ 1,301 | $ 67 | $ 75 | |||||||
Unrecognized stock-based compensation expense related to stock-based awards | $ 2,500 | |||||||||
Stock Options | ||||||||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||||||||
Number of options granted in period | 0 | |||||||||
Weighted average fair value of options granted | $ 0.90 | $ 0.46 | ||||||||
Aggregate intrinsic value for options exercised | $ 2,238 | $ 2,021 | $ 936 | |||||||
Total stock-based compensation expense | 281 | $ 322 | $ 1,040 | |||||||
Unrecognized stock-based compensation expense related to stock options | $ 462 | |||||||||
Unrecognized stock-based compensation expense, expected period for recognition | 1 year 10 months 24 days | |||||||||
RSUs | ||||||||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||||||||
Number of RSUs granted in period | 1,606,538 | |||||||||
Weighted average grant date fair value of RSUs granted | $ 16.99 | $ 3.89 | $ 2.05 | |||||||
Number of RSUs vested in period | 693,922 | 0 | 0 | |||||||
Total stock-based compensation expense | $ 4,747 | |||||||||
Unrecognized stock-based compensation expense, expected period for recognition | 3 years 3 months 18 days | |||||||||
Unrecognized stock-based compensation expense related to stock-based awards | $ 26,864 | |||||||||
2006 Plan | ||||||||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||||||||
Stock options, granted | 0 | |||||||||
Number of RSUs granted in period | 0 | |||||||||
2006 Plan | Class B Common Stock | ||||||||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||||||||
Number of shares authorized for issuance | 3,444,668 | |||||||||
2015 Plan | ||||||||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||||||||
Number of shares authorized for issuance | 603,436 | |||||||||
Term of authorized shares | 10 years | |||||||||
Award expiration date | Aug. 21, 2026 | |||||||||
Equity Incentive Plan, plan modification, description and terms | (1) the number of shares of Class A common stock was increased, on a share for share basis, by the number of shares of Class B common stock that were (a) subject to outstanding options granted under the 2006 Plan that expired, terminated, or were cancelled for any reason without having been exercised, (b) surrendered in payment of the exercise price of outstanding options granted under the 2006 Plan or (c) withheld in satisfaction of tax withholding upon exercise of outstanding options granted under the 2006 Plan, and the number of shares of Class B common stock reserved under the amended and restated 2015 Plan was decreased, on a corresponding share for share basis, (2) no new awards of Class B common stock could be granted under the amended and restated 2015 Plan, and (3) except with respect to outstanding options granted under the 2006 Plan that were exercised on or after the date of the amendment and restatement, no Class B common stock could be issued under the 2015 Plan. | |||||||||
2015 Plan | Class B Common Stock | ||||||||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||||||||
Number of shares authorized for issuance | 5,161,644 | |||||||||
Number of additional shares authorized | 802,562 | |||||||||
2015 Plan | Class B Common Stock | Stock Options | ||||||||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||||||||
Number of shares called by each instrument | 4 | |||||||||
2015 Plan | Class B Common Stock | RSUs | ||||||||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||||||||
Number of shares called by each instrument | 4 | |||||||||
2015 Plan | Class A Common Stock | ||||||||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||||||||
Number of shares authorized for issuance | 3,181,740 | |||||||||
Number of additional shares authorized | 618,691 | |||||||||
2015 Plan | Class A Common Stock | Stock Options | ||||||||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||||||||
Number of shares called by each instrument | 2 | |||||||||
2015 Plan | Class A Common Stock | RSUs | ||||||||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||||||||
Number of shares called by each instrument | 2 | |||||||||
2017 Plan | ||||||||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||||||||
Number of additional shares authorized | 6,000,000 | |||||||||
Equity incentive plan, issuance of additional shares, description and terms | As of the first trading day of January of each calendar year during the term of the 2017 Plan (excluding any extensions), beginning with calendar year 2019, an additional number of shares of Class A common stock will be added to the number of shares of our Class A common stock authorized to be issued or transferred under the 2017 Plan and the number of shares authorized to be issued or transferred pursuant to incentive stock options, equal to 4% of the total number of shares of our Class A common stock outstanding on the last trading day in December of the immediately preceding calendar year, or 6,000,000 shares, whichever is less, or such lesser amount as determined by the Board. | |||||||||
2017 Plan | Class A Common Stock | ||||||||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||||||||
Equity incentive plan, additional shares authorized percentage | 4.00% | |||||||||
Number of shares available for issuance during period | 7,831,708 | |||||||||
2017 Plan | Class A Common Stock | Maximum | ||||||||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||||||||
Number of shares authorized for issuance | 12,300,000 | |||||||||
2017 Plan | Class A Common Stock | Awarded Under 2017 Plan | ||||||||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||||||||
Number of shares authorized for issuance | 7,800,000 | |||||||||
2017 Plan | Class A Common Stock | Awarded Under 2015 Plan | ||||||||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||||||||
Number of shares authorized for issuance | 4,500,000 |
Stock-based Compensation - Summ
Stock-based Compensation - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Common Stock | |||
Options granted during period | 0 | ||
Stock Options | |||
Common Stock | |||
Outstanding, Beginning balance | 5,698,812 | ||
Options granted during period | 0 | ||
Exercised | (274,784) | ||
Forfeited and cancelled | (382,488) | ||
Outstanding, Ending balance | 5,041,540 | 5,698,812 | |
Options exercisable | 3,981,196 | ||
Weighted-Average Exercise Price for Equity | |||
Outstanding, Beginning balance | $ 1.63 | ||
Exercised | 1.45 | ||
Forfeited and cancelled | 2.12 | ||
Outstanding, Ending balance | 1.60 | $ 1.63 | |
Options exercisable | $ 1.02 | ||
Weighted-Average Contractual Life (In Years) | |||
Outstanding | 6 years | 6 years 10 months 25 days | |
Options exercisable | 5 years 7 months 6 days | ||
Aggregate Intrinsic Value | |||
Outstanding, Beginning balance | $ 23,893 | ||
Exercised | 2,238 | $ 2,021 | $ 936 |
Outstanding, Ending balance | 143,059 | $ 23,893 | |
Options exercisable | $ 115,157 |
Stock-based Compensation - Su57
Stock-based Compensation - Summary of Restricted Stock Unit Activity (Details) - RSUs - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Number of Shares | |||
Unvested outstanding, beginning balance | 1,580,094 | ||
Granted | 1,606,538 | ||
Vested | (693,922) | 0 | 0 |
Cancelled | (120,330) | ||
Unvested outstanding, ending balance | 2,372,380 | 1,580,094 | |
Weighted-Average Grant Date Fair Value | |||
Unvested outstanding, beginning balance | $ 3.25 | ||
Granted | 16.99 | $ 3.89 | $ 2.05 |
Vested | 3.61 | ||
Cancelled | 5.45 | ||
Unvested outstanding, ending balance | $ 12.34 | $ 3.25 | |
Aggregate Intrinsic Value | |||
Unvested outstanding, beginning balance | $ 8,754 | ||
Granted | 27,298 | ||
Vested | (13,276) | ||
Cancelled | (1,594) | ||
Unvested outstanding, ending balance | $ 71,124 | $ 8,754 |
Stock-based Compensation - Su58
Stock-based Compensation - Summary of Stock-based Compensation Expense by Award Type (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total stock-based compensation expense | $ 5,028 | $ 322 | $ 1,040 |
Stock Options | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total stock-based compensation expense | 281 | $ 322 | $ 1,040 |
RSUs | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total stock-based compensation expense | $ 4,747 |
Stock-based Compensation - Su59
Stock-based Compensation - Summary of Allocation of Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | $ 5,028 | $ 322 | $ 1,040 |
Cost of Revenue | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | 151 | 18 | 4 |
Sales and Marketing Expense | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | 1,911 | 163 | 67 |
Product, Technology, and Development Expense | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | 1,637 | 104 | 883 |
General and Administrative Expense | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | $ 1,329 | $ 37 | $ 86 |
Stock-based Compensation - Su60
Stock-based Compensation - Summary of Shares of Common Stock Reserved for Future Issuance (Details) | Dec. 31, 2017shares |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Total shares of authorized common stock reserved for future issuance | 15,939,550 |
Stock Options | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Total shares of authorized common stock reserved for future issuance | 5,041,540 |
RSUs | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Total shares of authorized common stock reserved for future issuance | 3,066,302 |
2017 Plan | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Total shares of authorized common stock reserved for future issuance | 7,831,708 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2017Voteshares | |
Earnings Per Share Basic [Line Items] | |
Conversion of stock, description | Each share of Class B common stock was and is convertible into one share of Class A common stock at the option of the holder at any time. In addition, each share of Class B common stock was and is automatically convertible into one share of Class A common stock upon transfer of such share, which is defined to include entering into a voting agreement, whether or not for value, except for certain transfers described in both the Company’s Third Amended and Restated Certificate of Incorporation and Fourth Amended and Restated Certificate of Incorporation, which exception includes transfers to certain family members of the transferor stockholder. Upon either the death or voluntary termination of the Company’s Chief Executive Officer, all shares of Class B common stock were and are automatically convertible into one share of Class A common stock |
Class A Common Stock | |
Earnings Per Share Basic [Line Items] | |
Right to voting | one vote for each share |
Number of votes entitled to stockholders per share | 1 |
Class B Common Stock | |
Earnings Per Share Basic [Line Items] | |
Right to voting | ten votes for each share |
Number of votes entitled to stockholders per share | 10 |
Class of share converted to another class | one share of Class A common stock |
Conversion of stock | shares | 1 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Reconciliation of Numerator and Denominator Used in Calculation of Basic and Diluted Net (Loss) Income Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Numerator: | |||||||||||
Net income (loss) | $ 2,267 | $ 2,379 | $ 4,346 | $ 4,207 | $ 3,838 | $ 2,138 | $ 269 | $ 252 | $ 13,199 | $ 6,497 | $ (1,636) |
Deemed dividend to preferred stockholders | (32,087) | (15,930) | |||||||||
Net income attributable to participating securities | (6,098) | ||||||||||
Net income (loss) attributable to common stockholders — basic | 7,101 | (25,590) | (17,566) | ||||||||
Net income attributable to participating securities | (5,829) | ||||||||||
Net income (loss) attributable to common stockholders — diluted | $ 7,370 | $ (25,590) | $ (17,566) | ||||||||
Weighted–average number of shares of common stock used in computing net income (loss) per share attributable to common stockholders: | |||||||||||
Weighted–average number of shares of common stock used in computing net income (loss) per share attributable to common stockholders — basic | 55,835,265 | 44,138,922 | 43,141,236 | ||||||||
Dilutive effect of share equivalents resulting from stock options | 4,290,362 | ||||||||||
Dilutive effect of share equivalents resulting from unvested restricted stock units | 511,957 | ||||||||||
Weighted–average number of shares of common stock used in computing net income (loss) per share — diluted | 60,637,584 | 44,138,922 | 43,141,236 | ||||||||
Net income (loss) per share attributable to common stockholders: (Note 9) | |||||||||||
Basic | $ 0.02 | $ 0.02 | $ 0.04 | $ 0.04 | $ (0.66) | $ 0.02 | $ 0 | $ 0 | $ 0.13 | $ (0.58) | $ (0.41) |
Diluted | $ 0.02 | $ 0.02 | $ 0.04 | $ 0.04 | $ (0.66) | $ 0.02 | $ 0 | $ 0 | $ 0.12 | $ (0.58) | $ (0.41) |
Earnings Per Share - Schedule63
Earnings Per Share - Schedule of Potentially Dilutive Common Stock Equivalents Excluded from Calculation of Diluted Weighted-average Shares Outstanding (Details) - shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Stock Options Outstanding | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Potentially dilutive common stock equivalents excluded from calculation of diluted weighted-average shares outstanding | 5,698,812 | 5,626,710 | |
Restricted Stock Units Outstanding | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Potentially dilutive common stock equivalents excluded from calculation of diluted weighted-average shares outstanding | 829 | 1,580,094 | 553,986 |
Convertible Preferred Stock | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Potentially dilutive common stock equivalents excluded from calculation of diluted weighted-average shares outstanding | 10,094,108 | 9,586,620 |
Income Taxes - Schedule of Dome
Income Taxes - Schedule of Domestic and Foreign Components of Income (Loss) Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments [Abstract] | |||
United States | $ 15,543 | $ 8,919 | $ (2,540) |
Foreign | 294 | 26 | |
Income (loss) before income taxes | $ 15,837 | $ 8,945 | $ (2,540) |
Income Taxes - Schedule of Prov
Income Taxes - Schedule of Provision for (Benefit From) Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current provision: | |||
Federal | $ 3,262 | $ 1,440 | $ (276) |
State | 431 | 223 | 21 |
Foreign | 62 | 3 | |
Current provision | 3,755 | 1,666 | (255) |
Deferred (benefit) provision: | |||
Federal | (755) | 880 | (544) |
State | (343) | (98) | (105) |
Foreign | (19) | ||
Deferred (benefit) provision | (1,117) | 782 | (649) |
Income tax (benefit) provision | $ 2,638 | $ 2,448 | $ (904) |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Tax Rate Greater than U.S. Federal Statutory Rate Primarily Due to State Income Taxes (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Effective Income Tax Rate Continuing Operations Tax Rate Reconciliation [Abstract] | |||
U.S. federal taxes at statutory rate | 35.00% | 35.00% | 34.00% |
State taxes, net of federal benefit | 3.10% | 4.50% | 3.60% |
Nondeductible expenses | 1.20% | 2.00% | (1.40%) |
Tax deductible IPO costs | (9.30%) | ||
Stock compensation | (4.40%) | ||
Foreign rate differential | (0.40%) | (0.10%) | |
Credits | (9.00%) | (15.00%) | |
Other | 0.50% | 1.00% | (0.60%) |
Total | 16.70% | 27.40% | 35.60% |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Tax Effect of Each Type of Temporary Difference and Carryforward (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets: | ||
Credit carryforwards | $ 166 | $ 141 |
Stock-based compensation | 1,301 | 67 |
Landlord allowance on leasehold improvements | 1,078 | 1,468 |
Deferred rent | 583 | 968 |
Accruals and reserves | 606 | 612 |
Deferred tax assets | 3,734 | 3,256 |
Deferred tax liability: | ||
Fixed assets | (2,909) | (3,548) |
Deferred tax liability | (2,909) | (3,548) |
Net deferred tax assets | $ 825 | |
Net deferred tax liabilities | $ (292) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Line Items] | ||||
U.S. federal corporate tax rate | 35.00% | 35.00% | 34.00% | |
Provisional Income tax expense | $ 187 | |||
Provisional amount tax expense related to re-measurement of deferred tax balance | 151 | |||
Provisional amount for one-time transition tax liability for foreign subsidiaries | 36 | |||
Provisional income tax expense, increase | $ 36 | |||
Tax credit carryforward, expiration year | 2,032 | |||
Liabilities for uncertain tax positions | $ 0 | $ 0 | ||
Accrued interest or penalties related to uncertain tax positions | $ 0 | $ 0 | ||
Earliest Tax Year | ||||
Income Tax Disclosure [Line Items] | ||||
Tax year open to examination | 2,014 | |||
Latest Tax Year | ||||
Income Tax Disclosure [Line Items] | ||||
Tax year open to examination | 2,017 | |||
State | ||||
Income Tax Disclosure [Line Items] | ||||
Tax credit carryforwards | $ 227 | |||
Internal Revenue Service (IRS) | ||||
Income Tax Disclosure [Line Items] | ||||
Tax credit carryforward, limitations on use | an ownership change, as defined by Section 382, results from transactions that increase the ownership of 5% stockholders in the stock of a corporation by more than 50% in the aggregate over a three-year period. | |||
Tax credit carryforward limitations on use, cumulative ownership change, period | 3 years | |||
Internal Revenue Service (IRS) | Minimum | ||||
Income Tax Disclosure [Line Items] | ||||
Tax credit carryforward limitations on use, cumulative ownership change percentage | 5.00% | |||
Internal Revenue Service (IRS) | Maximum | ||||
Income Tax Disclosure [Line Items] | ||||
Tax credit carryforward limitations on use, cumulative ownership change percentage | 50.00% | |||
Scenario Forecast [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
U.S. federal corporate tax rate | 21.00% |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) | Oct. 16, 2017 | Dec. 31, 2017 |
Related Party Transaction [Line Items] | ||
Issuance of stock, net of issuance/offering costs | $ 43,240,000 | |
IPO | Class A Common Stock | ||
Related Party Transaction [Line Items] | ||
Number of shares issued for services | 705,000 | |
Offering price per share | $ 16 | |
Issuance of stock, net of issuance/offering costs | $ 51,300,000 | |
Underwriting discounts and commissions | $ 3,600,000 | |
Allen And Company LLC and Associated Persons | IPO | ||
Related Party Transaction [Line Items] | ||
Percentage of ownership of outstanding preferred stock | 13.50% | |
Allen And Company LLC and Associated Persons | IPO | Class A Common Stock | ||
Related Party Transaction [Line Items] | ||
Number of shares issued for services | 2,190,200 | |
Offering price per share | $ 14.88 | |
Issuance of stock, net of issuance/offering costs | $ 32,590,176 | |
Underwriting discounts and commissions | $ 2,453,024 |
Segment and Geographic Inform70
Segment and Geographic Information - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2017Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Segment and Geographic Inform71
Segment and Geographic Information - Summary of Operations by Segment and Geographical Area (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment revenue: | |||||||||||
Revenue | $ 90,597 | $ 82,989 | $ 76,240 | $ 67,035 | $ 60,764 | $ 53,136 | $ 45,627 | $ 38,614 | $ 316,861 | $ 198,141 | $ 98,588 |
Segment income (loss) from operations: | |||||||||||
Total income (loss) from operations | 15,274 | 8,571 | (2,528) | ||||||||
United States | |||||||||||
Segment revenue: | |||||||||||
Revenue | 307,472 | 195,824 | 98,566 | ||||||||
Segment income (loss) from operations: | |||||||||||
Total income (loss) from operations | 41,586 | 27,461 | 637 | ||||||||
International | |||||||||||
Segment revenue: | |||||||||||
Revenue | 9,389 | 2,317 | 22 | ||||||||
Segment income (loss) from operations: | |||||||||||
Total income (loss) from operations | $ (26,312) | $ (18,890) | $ (3,165) |
Components of Other Income (E72
Components of Other Income (Expense), Net - Schedule of Components of Other Income (Expense), Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other Income And Expenses [Abstract] | |||
Interest income | $ 869 | $ 416 | |
Interest expense | (29) | (26) | $ (12) |
Foreign exchange losses | (277) | (16) | |
Other income (expense), net | $ 563 | $ 374 | $ (12) |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Compensation And Retirement Disclosure [Abstract] | |||
Employer matching contribution, percent of match | 50.00% | ||
Defined contribution plan, maximum annual contributions per employee, percent | 6.00% | ||
Annual maximum amount of employee contributions | $ 5,000,000 | ||
Defined contribution plan, employer contribution | $ 724,000 | $ 0 | $ 0 |
Quarterly Financial Results (74
Quarterly Financial Results (Unaudited) - Schedule of Unaudited Quarterly Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||||
Quarterly Financial Data [Abstract] | ||||||||||||||
Revenue | $ 90,597 | $ 82,989 | $ 76,240 | $ 67,035 | $ 60,764 | $ 53,136 | $ 45,627 | $ 38,614 | $ 316,861 | $ 198,141 | $ 98,588 | |||
Cost of revenue | 5,242 | 4,720 | 4,322 | 3,325 | 2,904 | 2,852 | 2,141 | 1,678 | 17,609 | [1] | 9,575 | [1] | 4,234 | [1] |
Gross profit | 85,355 | 78,269 | 71,918 | 63,710 | 57,860 | 50,284 | 43,486 | 36,936 | 299,252 | 188,566 | 94,354 | |||
Net income | $ 2,267 | $ 2,379 | $ 4,346 | $ 4,207 | $ 3,838 | $ 2,138 | $ 269 | $ 252 | $ 13,199 | $ 6,497 | $ (1,636) | |||
Basic net (loss) income per share | $ 0.02 | $ 0.02 | $ 0.04 | $ 0.04 | $ (0.66) | $ 0.02 | $ 0 | $ 0 | $ 0.13 | $ (0.58) | $ (0.41) | |||
Diluted net (loss) income per share | $ 0.02 | $ 0.02 | $ 0.04 | $ 0.04 | $ (0.66) | $ 0.02 | $ 0 | $ 0 | $ 0.12 | $ (0.58) | $ (0.41) | |||
[1] | Includes depreciation and amortization expense for the years ended December 31, 2017, 2016, and 2015 of $1,140, $438, and $153, respectively. |