Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | Apr. 30, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | RPD | |
Entity Registrant Name | RAPID7, INC. | |
Entity Central Index Key | 1,560,327 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 41,936,396 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash | $ 83,508 | $ 86,553 |
Accounts receivables, net of allowance for doubtful accounts of $728 and $730 at March 31, 2016 and December 31, 2015, respectively | 29,817 | 44,164 |
Prepaid expenses and other current assets | 6,618 | 6,148 |
Total current assets | 119,943 | 136,865 |
Property and equipment, net | 7,611 | 7,532 |
Goodwill | 74,943 | 74,565 |
Intangible assets, net | 10,802 | 11,385 |
Other assets | 481 | 214 |
Total assets | 213,780 | 230,561 |
Current liabilities: | ||
Accounts payable | 1,657 | 2,038 |
Accrued expenses | 14,424 | 24,707 |
Deferred revenue, current portion | 90,081 | 87,917 |
Other current liabilities | 767 | 1,105 |
Total current liabilities | 106,929 | 115,767 |
Deferred revenue, non-current portion | 41,776 | 42,400 |
Other long-term liabilities | 4,460 | 4,319 |
Total liabilities | $ 153,165 | $ 162,486 |
Stockholders' equity: | ||
Preferred stock, $0.01 par value per share; 10,000,000 shares authorized at March 31, 2016 and December 31, 2015; 0 shares issued at March 31, 2016 and December 31, 2015 | ||
Common stock, $0.01 par value; 100,000,000 shares authorized at March 31, 2016 and December 31, 2015; 42,277,059 and 41,942,026 shares issued at March 31, 2016 and December 31, 2015, respectively; 41,875,433 and 41,540,400 shares outstanding at March 31, 2016 and December 31, 2015, respectively | $ 419 | $ 415 |
Additional paid-in-capital | 419,640 | 411,524 |
Accumulated deficit | (355,918) | (340,338) |
Treasury stock, at cost, 401,626 shares at March 31, 2016 and December 31, 2015 | (3,526) | (3,526) |
Total stockholders' equity | 60,615 | 68,075 |
Total liabilities and stockholders' equity | $ 213,780 | $ 230,561 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Net of allowance for doubtful accounts | $ 728 | $ 730 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 42,277,059 | 41,942,026 |
Common stock, shares outstanding | 41,875,433 | 41,540,400 |
Treasury Stock, shares | 401,626 | 401,626 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Revenue: | ||
Products | $ 20,145 | $ 13,645 |
Maintenance and support | 8,381 | 5,799 |
Professional services | 6,270 | 4,127 |
Total revenue | 34,796 | 23,571 |
Cost of revenue: | ||
Products | 2,598 | 1,546 |
Maintenance and support | 1,681 | 1,210 |
Professional services | 4,433 | 3,736 |
Total cost of revenue | 8,712 | 6,492 |
Total gross profit | 26,084 | 17,079 |
Operating expenses: | ||
Research and development | 12,342 | 6,414 |
Sales and marketing | 22,768 | 13,230 |
General and administrative | 6,593 | 4,053 |
Total operating expenses | 41,703 | 23,697 |
Loss from operations | (15,619) | (6,618) |
Other income (expense), net: | ||
Interest income (expense), net | (15) | (685) |
Other income (expense), net | 196 | (305) |
Loss before income taxes | (15,438) | (7,608) |
Provision for income taxes | 142 | 74 |
Net loss | (15,580) | (7,682) |
Accretion of preferred stock to redemption value | (11,273) | |
Net loss attributable to common stockholders | $ (15,580) | $ (18,955) |
Net loss per share attributable to common stockholders, basic and diluted | $ (0.38) | $ (1.50) |
Weighted-average common shares outstanding, basic and diluted | 40,547,669 | 12,642,188 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cash flows from operating activities: | ||
Net loss | $ (15,580) | $ (7,682) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 1,711 | 1,134 |
Amortization of debt discount | 138 | |
Non-cash interest expense | 78 | |
Stock-based compensation expense | 5,519 | 575 |
Provision for doubtful accounts | 124 | 165 |
Foreign currency re-measurement (gain) loss | (223) | 241 |
Changes in assets and liabilities: | ||
Accounts receivables | 14,048 | 4,179 |
Prepaid expenses and other assets | (716) | (778) |
Accounts payable | (500) | (688) |
Accrued expenses | (7,427) | (3,928) |
Deferred revenue | 1,540 | 3,588 |
Other liabilities | (166) | 44 |
Net cash used in operating activities | (1,592) | (3,012) |
Cash flows from investing activities: | ||
Purchases of property and equipment | (1,092) | (573) |
Net cash used in investing activities | (1,092) | (573) |
Cash flows from financing activities: | ||
Payments of capital lease obligations | (68) | (59) |
Taxes paid related to net share settlement of equity awards | (3,087) | |
Proceeds from employee stock purchase plan | 2,096 | |
Proceeds from stock option exercises | 547 | 408 |
Net cash (used in) provided by financing activities | (512) | 349 |
Effect of exchange rate changes on cash | 151 | (244) |
Net decrease in cash | (3,045) | (3,480) |
Cash, beginning of period | 86,553 | 36,823 |
Cash, end of period | 83,508 | 33,343 |
Supplemental cash flow information: | ||
Cash paid for income taxes | 274 | 58 |
Cash paid for interest | $ 1 | $ 549 |
Description of Business and Bas
Description of Business and Basis of Presentation and Consolidation | 3 Months Ended |
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Basis of Presentation and Consolidation | Note 1. Description of Business and Basis of Presentation and Consolidation Description of Business Rapid7, Inc. and subsidiaries (“we,” “us” or “our”) is a leading provider of security data and analytics solutions that enable organizations to implement an active, analytics-driven approach to cyber security. Our solutions empower organizations to prevent cyber attacks by providing visibility into vulnerabilities and to rapidly detect compromises, respond to breaches and correct the underlying causes of cyber attacks. Basis of Presentation and Consolidation The accompanying unaudited consolidated financial statements have been prepared by us in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) as well as pursuant to the rules and regulations of the Securities and Exchange Commission (SEC) regarding interim financial reporting. Accordingly, certain information and note disclosures normally included in the financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. These consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2015 filed with the SEC on March 10, 2016. The consolidated financial statements include our results of operations and those of our wholly-owned subsidiaries and reflect all adjustments (consisting solely of normal, recurring adjustments) which are, in the opinion of management, necessary for a fair statement of results for the interim periods presented. All intercompany transactions and balances have been eliminated in consolidation. The results of operations for the three months ended March 31, 2016 are not necessarily indicative of the results to be expected for any future period or the entire fiscal year. Recent Accounting Pronouncements In March 2016, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update, or ASU, 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) In November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740) – Balance Sheet Classification of Deferred Taxes In September 2015, the FASB issued ASU 2015-16, Business Combinations (Topic 805) – Simplifying the Accounting for Measurement-Period Adjustments In April 2015, the FASB issued ASU 2015-05, Intangibles -Goodwill and Other – Internal Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) |
Business Combinations
Business Combinations | 3 Months Ended |
Mar. 31, 2016 | |
Business Combinations [Abstract] | |
Business Combinations | Note 2. Business Combinations Prior Year Acquisitions RevelOps, Inc. On October 13, 2015, we acquired 100% of the outstanding equity of RevelOps, Inc. (d/b/a Logentries) for total consideration of $68.1 million. We made an initial payment of $36.2 million in cash, issued 1,252,627 shares of our common stock with an aggregate fair value of $27.4 million, inclusive of a discount from the quoted market price due to certain trading restrictions associated with the shares, and issued vested replacement options with respect to 221,759 shares of our common stock to certain continuing employees with an aggregate fair value of $4.5 million upon the closing of the acquisition. The fair value of the vested replacement options included in the purchase price was based on the fair value of the vested Logentries options on the acquisition date. The excess fair value when comparing the fair value of the new vested replacement options and the vested Logentries options of $0.3 million was expensed immediately in the post-combination financial statements of the combined entity. Assets acquired and liabilities assumed were recorded at their estimated fair values as of the acquisition date. The excess of the purchase price over the assets acquired and liabilities assumed was recorded as goodwill. The preliminary fair values of goodwill, intangible assets and net assets were $59.1 million, $9.4 million and $(0.4) million, respectively. These preliminary amounts are subject to subsequent adjustment as we obtain additional information to finalize certain components of working capital. Pro Forma Financial Information The unaudited pro forma financial information in the table below summarizes the combined results of our operations and Logentries, on a pro forma basis, as though we had acquired Logentries on January 1, 2014. The unaudited pro forma financial information for all periods presented also includes the effects of business combination accounting resulting from the acquisition, including amortization expense from acquired intangibles assets, reversal of acquisition related expenses and the stock-compensation expense recorded to retain certain employees. Three Months March 31, 2015 (in thousands) Total revenue $ 24,077 Net loss $ (10,476 ) NT OBJECTives, Inc. On April 30, 2015, we acquired 100% of the outstanding equity of NT OBJECTives, Inc. (NTO), a web application security testing company, expanding the web application testing capabilities of our threat exposure management offering. We acquired NTO for total consideration of $6.1 million. We made an initial payment of $3.4 million in cash, issued 9,091 shares of our common stock with an aggregate fair value of $0.1 million, are obligated to pay $0.1 million in cash for the settlement of a working capital adjustment and are obligated to make two additional payments of $1.5 million each, less the amount of any indemnity claims. The net present value of these two additional payments, or $2.5 million, was included in the total purchase consideration paid. Assets acquired and liabilities assumed were recorded at their estimated fair values as of the acquisition date. The excess of the purchase price over the assets acquired and liabilities assumed was recorded as goodwill. The fair values of goodwill, intangible assets and net assets were $4.6 million, $2.1 million and $(0.6) million, respectively. Pro forma results of operations have not been included, as the acquisition of NTO was not material to our results of operations for any periods presented. In May 2015, we entered into loan agreements with certain retained employees of NTO. The terms of these agreements require the employees to pay us the total amount borrowed, with accrued interest at 1.7% per annum, within 18 months of the agreement date. The loan agreements are secured by restricted stock awards granted to the employees. The aggregate amount of these loans was $0.5 million and is currently classified as prepaid expenses and other current assets on the consolidated balance sheets. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Note 3. Goodwill and Intangible Assets The change in the carrying amount of goodwill for the three months ended March 31, 2016 was as follows: Amount (in thousands) Balance as of December 31, 2015 $ 74,565 Logentries acquisition accounting adjustments 378 Balance as of March 31, 2016 $ 74,943 Identifiable intangible assets consist of the following: As of March 31, 2016 As of December 31, 2015 Weighted- Gross Carrying Accumulated Net Book Gross Carrying Accumulated Net Book Value (in thousands) Intangible assets subject to amortization: Developed technology 5.9 $ 12,851 $ (3,401 ) $ 9,450 $ 12,851 $ (2,955 ) $ 9,896 Trade names 6.3 719 (457 ) 262 719 (389 ) 330 Customer relationships 6.7 1,000 (82 ) 918 1,000 (43 ) 957 Non-compete agreements 4.8 540 (368 ) 172 540 (338 ) 202 Total intangible assets $ 15,110 $ (4,308 ) $ 10,802 $ 15,110 $ (3,725 ) $ 11,385 Amortization expense was $0.6 million and $0.2 million for the three months ended March 31, 2016 and 2015, respectively. Estimated future amortization expense of the acquired identifiable intangible assets as of March 31, 2016 is as follows (in thousands): 2016 (for the remaining nine months) $ 1,702 2017 2,034 2018 1,915 2019 1,880 2020 1,837 2021 and thereafter 1,434 Total $ 10,802 |
Property and Equipment
Property and Equipment | 3 Months Ended |
Mar. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Note 4. Property and Equipment Property and equipment are recorded at cost and consist of the following: As of As of March 31, 2016 December 31, 2015 (in thousands) Computer equipment and software $ 10,979 $ 9,858 Furniture and fixtures 2,411 2,409 Leasehold improvements 7,028 6,943 Total 20,418 19,210 Less accumulated depreciation (12,807 ) (11,678 ) Property and equipment, net $ 7,611 $ 7,532 Depreciation expense was $1.1 million and $0.9 million for the three months ended March 31, 2016 and 2015, respectively. |
Stock-Based Compensation Expens
Stock-Based Compensation Expense | 3 Months Ended |
Mar. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation Expense | Note 5. Stock-Based Compensation Expense (a) General Stock-based compensation expense for restricted stock, restricted stock units, stock options and issuances of common stock pursuant to our employee stock purchase plan was classified in the accompanying consolidated statements of operations as follows: Three Months Ended March 31, 2016 2015 (in thousands) Stock-based compensation expense: Cost of revenue $ 137 $ 49 Research and development 1,493 144 Sales and marketing 2,901 115 General and administrative 988 267 Total stock-based compensation expense $ 5,519 $ 575 We recognize compensation cost of all awards on a straight-line basis over the applicable vesting period, which is generally four years. (b) Restricted Stock and Restricted Stock Units Restricted stock and restricted stock unit activity during the three months ended March 31, 2016 was as follows: Restricted Stock Weighted Fair Value Outstanding as of December 31, 2015 1,149,257 $ 19.34 Granted 528,550 12.97 Vested (84,649 ) 19.14 Forfeited (32,290 ) 13.61 Outstanding as of March 31, 2016 1,560,868 $ 17.31 As of March 31, 2016, the unrecognized compensation expense related to our unvested restricted stock and restricted stock units expected to vest was $16.8 million. This unrecognized compensation expense will be recognized over an estimated weighted-average amortization period of 2.8 years. (c) Stock Options Stock option activity during the three months ended March 31, 2016 was as follows: Shares Weighted Weighted Aggregate Outstanding as of December 31, 2015 4,246,525 $ 5.99 Granted 916,558 12.96 Exercised (122,284 ) 4.13 Forfeited/cancelled (159,444 ) 10.11 Outstanding as of March 31, 2016 4,881,355 7.21 7.6 $ 29,337 Vested and exercisable as of March 31, 2016 2,793,056 4.53 6.6 $ 23,891 Vested and expected to vest as of March 31, 2016 4,460,388 6.78 7.4 $ 28,639 As of March 31, 2016, the unrecognized compensation expense related to our unvested stock options expected to vest was $7.7 million. This unrecognized compensation expense will be recognized over an estimated weighted-average amortization period of 2.9 years. The total fair value of stock options vested in the three months ended March 31, 2016 was $2.3 million. The weighted-average grant date fair value of stock options granted in the three months ended March 31, 2016 was $6.18 per share. (d) Employee Stock Purchase Plan Under the 2015 Employee Stock Purchase Plan (ESPP), employees may set aside up to 15% of their gross earnings, on an after-tax basis, to purchase our common shares at a discounted price, which is calculated at 85% of the lesser of: (i) the market value of our common stock at the beginning of each offering period and (ii) the market value of our common stock on the applicable purchase date. On March 15, 2016 we issued 192,676 shares of common stock to employees for aggregate proceeds of $2.1 million. The purchase price of the shares of common stock was $10.88 per share, which was discounted from the market price of $12.80 at the close of business on March 15, 2016, in accordance with the terms of the ESPP. |
Net Loss per Share
Net Loss per Share | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Net Loss per Share | Note 6. Net Loss per Share The following table summarizes the computation of basic and diluted net loss per share of our common stock for the three months ended March 31, 2016 and 2015: Three Months Ended March 31, 2016 2015 (in thousands, except share and per share Numerator: Net loss $ (15,580 ) $ (7,682 ) Accretion of preferred stock to redemption value — (11,273 ) Net loss attributable to common stockholders, basic and diluted $ (15,580 ) $ (18,955 ) Denominator: Weighted-average 40,547,669 12,642,188 Net loss per share attributable to common stockholders, basic and diluted $ (0.38 ) $ (1.50 ) The following potentially dilutive securities outstanding, prior to the use of the treasury stock method or if-converted method, have been excluded from the computation of diluted weighted-average shares outstanding for the respective periods below because they would have been anti-dilutive: Three Months Ended March 31, 2016 2015 Options to purchase common stock 4,881,355 4,006,962 Restricted stock 1,062,568 — Restricted stock units 498,300 — Warrants to purchase common stock — 200,000 Shares to be issued under ESPP 17,639 — Redeemable convertible preferred stock — 16,382,615 Total 6,459,862 20,589,577 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 7. Commitments and Contingencies (a) Warranty We provide limited product warranties. Historically, any payments made under these provisions have been immaterial. (b) Litigation and Claims From time to time, we are and may be a party to litigation and subject to claims incident to the ordinary course of business. Although the results of litigation and claims cannot be predicted with certainty, we currently believe that the final outcome of these ordinary course matters will not have a material adverse effect on our business. Regardless of the outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources and other factors. (c) Indemnification Obligations We agree to standard indemnification provisions in the ordinary course of business. Pursuant to these provisions, we agree to indemnify, hold harmless and reimburse the indemnified party for losses suffered or incurred by the indemnified party, generally our customers, in connection with any United States patent, copyright or other intellectual property infringement claim by any third party arising from the use of our products or services in accordance with the agreement or arising from our gross negligence, willful misconduct or violation of the law (provided that there is not gross or willful misconduct on the part of the other party) with respect to our products or services. The term of these indemnification provisions is generally perpetual from the time of execution of the agreement. We carry insurance that covers certain third-party claims relating to our services and limits our exposure. We have never incurred costs to defend lawsuits or settle claims related to these indemnification provisions. |
Segment Information and Informa
Segment Information and Information about Geographic Areas | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Information and Information about Geographic Areas | Note 8. Segment Information and Information about Geographic Areas We operate in one segment. Our chief operating decision maker is our Chief Executive Officer, who makes operating decisions, assesses performance and allocates resources on a consolidated basis. Net revenues by geographic area presented based upon the location of the customer are as follows: Three Months Ended March 31, 2016 2015 (in thousands) North America $ 30,132 $ 20,344 Other 4,664 3,227 Total $ 34,796 $ 23,571 Of the net revenues generated in North America, 97% and 96% were generated in the United States in the three months ended March 31, 2016 and 2015, respectively. Property and equipment, net by geographic area was as follows: As of As of March 31, 2016 December 31, 2015 (in thousands) United States $ 6,767 $ 6,633 Other 844 899 Total $ 7,611 $ 7,532 |
Description of Business and B14
Description of Business and Basis of Presentation and Consolidation (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation The accompanying unaudited consolidated financial statements have been prepared by us in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) as well as pursuant to the rules and regulations of the Securities and Exchange Commission (SEC) regarding interim financial reporting. Accordingly, certain information and note disclosures normally included in the financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. These consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2015 filed with the SEC on March 10, 2016. The consolidated financial statements include our results of operations and those of our wholly-owned subsidiaries and reflect all adjustments (consisting solely of normal, recurring adjustments) which are, in the opinion of management, necessary for a fair statement of results for the interim periods presented. All intercompany transactions and balances have been eliminated in consolidation. The results of operations for the three months ended March 31, 2016 are not necessarily indicative of the results to be expected for any future period or the entire fiscal year. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In March 2016, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update, or ASU, 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) In November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740) – Balance Sheet Classification of Deferred Taxes In September 2015, the FASB issued ASU 2015-16, Business Combinations (Topic 805) – Simplifying the Accounting for Measurement-Period Adjustments In April 2015, the FASB issued ASU 2015-05, Intangibles -Goodwill and Other – Internal Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) |
Business Combinations (Tables)
Business Combinations (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Logentries [Member] | |
Pro Forma Financial Information | The unaudited pro forma financial information for all periods presented also includes the effects of business combination accounting resulting from the acquisition, including amortization expense from acquired intangibles assets, reversal of acquisition related expenses and the stock-compensation expense recorded to retain certain employees. Three Months March 31, 2015 (in thousands) Total revenue $ 24,077 Net loss $ (10,476 ) |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Carrying Amount of Goodwill | The change in the carrying amount of goodwill for the three months ended March 31, 2016 was as follows: Amount (in thousands) Balance as of December 31, 2015 $ 74,565 Logentries acquisition accounting adjustments 378 Balance as of March 31, 2016 $ 74,943 |
Schedule of Identifiable Intangible Assets | Identifiable intangible assets consist of the following: As of March 31, 2016 As of December 31, 2015 Weighted- Gross Carrying Accumulated Net Book Gross Carrying Accumulated Net Book Value (in thousands) Intangible assets subject to amortization: Developed technology 5.9 $ 12,851 $ (3,401 ) $ 9,450 $ 12,851 $ (2,955 ) $ 9,896 Trade names 6.3 719 (457 ) 262 719 (389 ) 330 Customer relationships 6.7 1,000 (82 ) 918 1,000 (43 ) 957 Non-compete agreements 4.8 540 (368 ) 172 540 (338 ) 202 Total intangible assets $ 15,110 $ (4,308 ) $ 10,802 $ 15,110 $ (3,725 ) $ 11,385 |
Schedule of Estimated Amortization Expense | Estimated future amortization expense of the acquired identifiable intangible assets as of March 31, 2016 is as follows (in thousands): 2016 (for the remaining nine months) $ 1,702 2017 2,034 2018 1,915 2019 1,880 2020 1,837 2021 and thereafter 1,434 Total $ 10,802 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property and Equipment | Property and equipment are recorded at cost and consist of the following: As of As of March 31, 2016 December 31, 2015 (in thousands) Computer equipment and software $ 10,979 $ 9,858 Furniture and fixtures 2,411 2,409 Leasehold improvements 7,028 6,943 Total 20,418 19,210 Less accumulated depreciation (12,807 ) (11,678 ) Property and equipment, net $ 7,611 $ 7,532 |
Stock-Based Compensation Expe18
Stock-Based Compensation Expense (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Stock-Based Compensation Expense | Stock-based compensation expense for restricted stock, restricted stock units, stock options and issuances of common stock pursuant to our employee stock purchase plan was classified in the accompanying consolidated statements of operations as follows: Three Months Ended March 31, 2016 2015 (in thousands) Stock-based compensation expense: Cost of revenue $ 137 $ 49 Research and development 1,493 144 Sales and marketing 2,901 115 General and administrative 988 267 Total stock-based compensation expense $ 5,519 $ 575 |
Summary of Restricted Stock and Restricted Stock Unit Activity | Restricted stock and restricted stock unit activity during the three months ended March 31, 2016 was as follows: Restricted Stock Weighted Outstanding as of December 31, 2015 1,149,257 $ 19.34 Granted 528,550 12.97 Vested (84,649 ) 19.14 Forfeited (32,290 ) 13.61 Outstanding as of March 31, 2016 1,560,868 $ 17.31 |
Summary of Stock Option Activity | Stock option activity during the three months ended March 31, 2016 was as follows: Shares Weighted Weighted Aggregate Outstanding as of December 31, 2015 4,246,525 $ 5.99 Granted 916,558 12.96 Exercised (122,284 ) 4.13 Forfeited/cancelled (159,444 ) 10.11 Outstanding as of March 31, 2016 4,881,355 7.21 7.6 $ 29,337 Vested and exercisable as of March 31, 2016 2,793,056 4.53 6.6 $ 23,891 Vested and expected to vest as of March 31, 2016 4,460,388 6.78 7.4 $ 28,639 |
Net Loss per Share (Tables)
Net Loss per Share (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Summary of Basic and Diluted Net Loss Per Share of Common Stock | The following table summarizes the computation of basic and diluted net loss per share of our common stock for the three months ended March 31, 2016 and 2015: Three Months Ended March 31, 2016 2015 (in thousands, except share and per share Numerator: Net loss $ (15,580 ) $ (7,682 ) Accretion of preferred stock to redemption value — (11,273 ) Net loss attributable to common stockholders, basic and diluted $ (15,580 ) $ (18,955 ) Denominator: Weighted-average 40,547,669 12,642,188 Net loss per share attributable to common stockholders, basic and diluted $ (0.38 ) $ (1.50 ) |
Anti-Dilutive Securities Excluded from Computation Diluted Weighted Average Shares Outstanding | The following potentially dilutive securities outstanding, prior to the use of the treasury stock method or if-converted method, have been excluded from the computation of diluted weighted-average shares outstanding for the respective periods below because they would have been anti-dilutive: Three Months Ended March 31, 2016 2015 Options to purchase common stock 4,881,355 4,006,962 Restricted stock 1,062,568 — Restricted stock units 498,300 — Warrants to purchase common stock — 200,000 Shares to be issued under ESPP 17,639 — Redeemable convertible preferred stock — 16,382,615 Total 6,459,862 20,589,577 |
Segment Information and Infor20
Segment Information and Information about Geographic Areas (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Net Revenues of Customer by Geographic Area | Net revenues by geographic area presented based upon the location of the customer are as follows: Three Months Ended March 31, 2016 2015 (in thousands) North America $ 30,132 $ 20,344 Other 4,664 3,227 Total $ 34,796 $ 23,571 |
Property and Equipment, Net By Geographic Area | Property and equipment, net by geographic area was as follows: As of As of March 31, 2016 December 31, 2015 (in thousands) United States $ 6,767 $ 6,633 Other 844 899 Total $ 7,611 $ 7,532 |
Business Combinations - Additio
Business Combinations - Additional Information (Detail) - USD ($) $ in Thousands | Oct. 13, 2015 | Apr. 30, 2015 | May. 31, 2015 | Mar. 31, 2016 | Dec. 31, 2015 |
Business Acquisition [Line Items] | |||||
Fair value of goodwill | $ 74,943 | $ 74,565 | |||
Percentage of accrued interest | 1.70% | ||||
Related party transaction maturity period | 18 months | ||||
Aggregate loan amount | $ 500 | ||||
RevelOps, Inc [Member] | |||||
Business Acquisition [Line Items] | |||||
Percentage of shares outstanding acquired | 100.00% | ||||
Total consideration | $ 68,100 | ||||
Cash consideration | $ 36,200 | ||||
Number of shares issued as part of acquisition | 1,252,627 | ||||
Fair value of shares issued as part of acquisition | $ 27,400 | ||||
Value of shares issued and vested with replacement options | $ 4,500 | ||||
RevelOps, Inc [Member] | Replacement Options [Member] | |||||
Business Acquisition [Line Items] | |||||
Number of shares issued as part of acquisition | 221,759 | ||||
Logentries [Member] | |||||
Business Acquisition [Line Items] | |||||
Fair value in excess of vested options expensed | $ 300 | ||||
Fair value of goodwill | 59,100 | ||||
Fair value of intangible assets | 9,400 | ||||
Net assets acquired | $ (400) | ||||
NT OBJECTives, Inc. [Member] | |||||
Business Acquisition [Line Items] | |||||
Percentage of shares outstanding acquired | 100.00% | ||||
Total consideration | $ 6,100 | ||||
Cash consideration | $ 3,400 | ||||
Number of shares issued as part of acquisition | 9,091 | ||||
Fair value of goodwill | $ 4,600 | ||||
Fair value of intangible assets | 2,100 | ||||
Net assets acquired | (600) | ||||
Shares issued in connection with business acquisition, value | 100 | ||||
Additional payment | 3,000 | ||||
Future cash payment | 2,500 | ||||
Additional payment | $ 100 |
Business Combinations - Busines
Business Combinations - Business acquisition, pro forma information (Detail) - Logentries [Member] $ in Thousands | 3 Months Ended |
Mar. 31, 2015USD ($) | |
Business Acquisition Pro Forma Information [Line Items] | |
Total revenue | $ 24,077 |
Net loss | $ (10,476) |
Goodwill and Intangible Asset23
Goodwill and Intangible Assets - Schedule of Change in Carrying Amount of Goodwill (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Goodwill And Intangible Assets [Line Items] | |
Goodwill, beginning balance | $ 74,565 |
Goodwill, ending balance | 74,943 |
Logentries [Member] | |
Goodwill And Intangible Assets [Line Items] | |
Acquisition | $ 378 |
Goodwill and Intangible Asset24
Goodwill and Intangible Assets - Schedule of Identifiable Intangible Assets (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Gross Carrying Amount | $ 15,110 | $ 15,110 |
Intangible assets, Accumulated Amortization | (4,308) | (3,725) |
Intangible assets, Net Book Value | $ 10,802 | 11,385 |
Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Weighted- Average Life | 6 years 3 months 18 days | |
Intangible assets, Gross Carrying Amount | $ 719 | 719 |
Intangible assets, Accumulated Amortization | (457) | (389) |
Intangible assets, Net Book Value | $ 262 | 330 |
Developed Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Weighted- Average Life | 5 years 10 months 24 days | |
Intangible assets, Gross Carrying Amount | $ 12,851 | 12,851 |
Intangible assets, Accumulated Amortization | (3,401) | (2,955) |
Intangible assets, Net Book Value | $ 9,450 | 9,896 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Weighted- Average Life | 6 years 8 months 12 days | |
Intangible assets, Gross Carrying Amount | $ 1,000 | 1,000 |
Intangible assets, Accumulated Amortization | (82) | (43) |
Intangible assets, Net Book Value | $ 918 | 957 |
Non-compete Agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Weighted- Average Life | 4 years 9 months 18 days | |
Intangible assets, Gross Carrying Amount | $ 540 | 540 |
Intangible assets, Accumulated Amortization | (368) | (338) |
Intangible assets, Net Book Value | $ 172 | $ 202 |
Goodwill and Intangible Asset25
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization expense | $ 0.6 | $ 0.2 |
Goodwill and Intangible Asset26
Goodwill and Intangible Assets - Schedule of Estimated Amortization Expense (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | ||
2016 (for the remaining nine months) | $ 1,702 | |
2,017 | 2,034 | |
2,018 | 1,915 | |
2,019 | 1,880 | |
2,020 | 1,837 | |
2021 and thereafter | 1,434 | |
Total | $ 10,802 | $ 11,385 |
Property and Equipment - Summar
Property and Equipment - Summary of Property and Equipment (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 20,418 | $ 19,210 |
Less accumulated depreciation | (12,807) | (11,678) |
Net property and equipment | 7,611 | 7,532 |
Computer Equipment and Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 10,979 | 9,858 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 2,411 | 2,409 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 7,028 | $ 6,943 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 1.1 | $ 0.9 |
Stock-Based Compensation Expe29
Stock-Based Compensation Expense - Schedule of Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | $ 5,519 | $ 575 |
Cost of Revenue [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | 137 | 49 |
Research and Development [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | 1,493 | 144 |
Sales and Marketing [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | 2,901 | 115 |
General and Administrative [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | $ 988 | $ 267 |
Stock-Based Compensation Expe30
Stock-Based Compensation Expense - Additional Information (Detail) - USD ($) | Mar. 15, 2016 | Mar. 31, 2016 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 4 years | |
Purchase price of common stock by employees | 85.00% | |
Employee Stock Purchase Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 192,676 | |
Stock Issued During Period, Value, Employee Stock Purchase Plans | $ 2,100,000 | |
Share issued, price per share | $ 10.88 | |
Market price of shares issued | $ 12.80 | |
Employee Stock Purchase Plan [Member] | Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Employee withholding percentage | 15.00% | |
Restricted Stock And Restricted Stock Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation expense, restricted stock | $ 16,800,000 | |
Unrecognized compensation expense, recognition period | 2 years 9 months 18 days | |
Options to Purchase Common Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation expense, recognition period | 2 years 10 months 24 days | |
Unrecognized compensation cost, stock options | $ 7,700,000 | |
Stock options vested, fair value | $ 2,300,000 | |
Stock options granted, weighted-average grant date fair value | $ 6.18 |
Stock-Based Compensation Expe31
Stock-Based Compensation Expense - Summary of Restricted Stock and Restricted Stock Unit Activity (Detail) - Restricted Stock [Member] | 3 Months Ended |
Mar. 31, 2016$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Restricted shares outstanding, Beginning balance | shares | 1,149,257 |
Restricted stock granted, Shares | shares | 528,550 |
Restricted stock vested, Shares | shares | (84,649) |
Restricted stock forfeited, Shares | shares | (32,290) |
Restricted shares outstanding, Ending balance | shares | 1,560,868 |
Weighted-average grant date fair value, Beginning balance | $ / shares | $ 19.34 |
Weighted-average grant date fair value, Restricted stock granted | $ / shares | 12.97 |
Weighted-average grant date fair value, Restricted stock vested | $ / shares | 19.14 |
Weighted-average grant date fair value, Restricted stock forfeited | $ / shares | 13.61 |
Weighted-average grant date fair value, Ending Balance | $ / shares | $ 17.31 |
Stock-Based Compensation Expe32
Stock-Based Compensation Expense - Summary of Stock Option Activity (Detail) $ / shares in Units, $ in Thousands | 3 Months Ended |
Mar. 31, 2016USD ($)$ / sharesshares | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Number of shares under stock option, Beginning balance | shares | 4,246,525 |
Number of shares Granted | shares | 916,558 |
Number of shares Exercised | shares | (122,284) |
Number of shares forfeited/cancelled | shares | (159,444) |
Number of shares under stock option, Ending balance | shares | 4,881,355 |
Number of stock options, Vested and exercisable | shares | 2,793,056 |
Number of stock options, Vested or expected to vest | shares | 4,460,388 |
Weighted average exercise price, Beginning balance | $ / shares | $ 5.99 |
Weighted average exercise price, Stock options granted | $ / shares | 12.96 |
Weighted average exercise price, Stock options exercised | $ / shares | 4.13 |
Weighted average exercise price, Stock options forfeited/cancelled | $ / shares | 10.11 |
Weighted average exercise price, Ending balance | $ / shares | 7.21 |
Weighted average exercise price, Vested and exercisable | $ / shares | 4.53 |
Weighted average exercise price, Vested and expected to vest | $ / shares | $ 6.78 |
Weighted Average Exercise Price Outstanding | 7 years 7 months 6 days |
Weighted Average Exercise Price Vested and exercisable | 6 years 7 months 6 days |
Stock options aggregate intrinsic value, Exercised | $ | $ 0 |
Stock options aggregate intrinsic value, Outstanding | $ | 29,337 |
Stock options aggregate intrinsic value, Exercisable | $ | $ 23,891 |
Net Loss Per Share - Summary of
Net Loss Per Share - Summary of Basic and Diluted Net Loss Per Share of Common Stock (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Earnings Per Share [Abstract] | ||
Net loss | $ (15,580) | $ (7,682) |
Accretion of preferred stock to redemption value | (11,273) | |
Net loss attributable to common stockholders, basic and diluted | $ (15,580) | $ (18,955) |
Weighted-average common shares outstanding, basic and diluted | 40,547,669 | 12,642,188 |
Net loss per share attributable to common stockholders, basic and diluted | $ (0.38) | $ (1.50) |
Net Loss Per Share - Summary 34
Net Loss Per Share - Summary of Antidilutive Securities Excluded From Computation Diluted Weighted Average Shares Outstanding (Detail) - shares | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Schedule Of Calculation Of Numerator And Denominator In Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share amount | 6,459,862 | 20,589,577 |
Restricted Stock [Member] | ||
Schedule Of Calculation Of Numerator And Denominator In Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share amount | 1,062,568 | |
Restricted Stock Units (RSUs) [Member] | ||
Schedule Of Calculation Of Numerator And Denominator In Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share amount | 498,300 | |
Warrants to Purchase Common Stock [Member] | ||
Schedule Of Calculation Of Numerator And Denominator In Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share amount | 200,000 | |
Employee Stock Purchase Plan [Member] | ||
Schedule Of Calculation Of Numerator And Denominator In Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share amount | 17,639 | |
Redeemable Convertible Preferred Stock [Member] | ||
Schedule Of Calculation Of Numerator And Denominator In Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share amount | 16,382,615 | |
Options to Purchase Common Stock [Member] | ||
Schedule Of Calculation Of Numerator And Denominator In Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share amount | 4,881,355 | 4,006,962 |
Segment Information and Infor35
Segment Information and Information about Geographic Areas - Additional Information (Detail) - Segment | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Segment Reporting Information [Line Items] | ||
Number of operating segment | 1 | |
United States [Member] | ||
Segment Reporting Information [Line Items] | ||
Percentage of net revenues | 97.00% | 96.00% |
Segment Information and Infor36
Segment Information and Information about Geographic Areas - Net Revenues of Customer by Geographic Area (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Entity Wide Portfolio Carrying Amount, Major Customer [Line Items] | ||
Net revenues, Total | $ 34,796 | $ 23,571 |
North America [Member] | ||
Entity Wide Portfolio Carrying Amount, Major Customer [Line Items] | ||
Net revenues, Total | 30,132 | 20,344 |
Other [Member] | ||
Entity Wide Portfolio Carrying Amount, Major Customer [Line Items] | ||
Net revenues, Total | $ 4,664 | $ 3,227 |
Segment Information and Infor37
Segment Information and Information about Geographic Areas - Property and Equipment, Net By Geographic Area (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | $ 7,611 | $ 7,532 |
United States [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | 6,767 | 6,633 |
Other [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | $ 844 | $ 899 |