Rapid7 (RPD) 10-Q 12 May 16 2016 Q1 Quarterly report Financial data

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