Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | May 01, 2018 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | RAPID7, INC. | |
Entity Central Index Key | 1,560,327 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Trading Symbol | RPD | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 46,231,891 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 99,646 | $ 51,562 |
Short-term investments | 29,630 | 39,178 |
Accounts receivable, net of allowance for doubtful accounts of $1,407 and $1,478 at March 31, 2018 and December 31, 2017, respectively | 38,718 | 73,661 |
Deferred contract acquisition and fulfillment costs, current portion | 8,583 | 0 |
Prepaid expenses and other current assets | 12,232 | 8,877 |
Total current assets | 188,809 | 173,278 |
Long-term investments | 1,096 | 1,102 |
Property and equipment, net | 9,238 | 8,589 |
Goodwill | 83,164 | 83,164 |
Intangible assets, net | 16,316 | 16,640 |
Deferred contract acquisition and fulfillment costs, non-current portion | 20,295 | 0 |
Other assets | 1,552 | 1,363 |
Total assets | 320,470 | 284,136 |
Current liabilities: | ||
Accounts payable | 5,669 | 2,240 |
Accrued expenses | 18,372 | 29,728 |
Deferred revenue, current portion | 140,448 | 155,811 |
Other current liabilities | 1,702 | 1,706 |
Total current liabilities | 166,191 | 189,485 |
Deferred revenue, non-current portion | 78,450 | 68,689 |
Other long-term liabilities | 1,907 | 1,809 |
Total liabilities | 246,548 | 259,983 |
Stockholders’ equity: | ||
Preferred stock, $0.01 par value per share; 10,000,000 shares authorized at March 31, 2018 and December 31, 2017; 0 shares issued at March 31, 2018 and December 31, 2017 | 0 | 0 |
Common stock, $0.01 par value per share; 100,000,000 shares authorized at March 31, 2018 and December 31, 2017; 46,685,380 and 44,540,544 shares issued at March 31, 2018 and December 31, 2017, respectively; 46,198,572 and 44,053,736 shares outstanding at March 31, 2018 and December 31, 2017, respectively | 462 | 441 |
Treasury stock, at cost, 486,808 shares at March 31, 2018 and December 31, 2017 | (4,764) | (4,764) |
Additional paid-in-capital | 503,669 | 463,428 |
Accumulated other comprehensive loss | (44) | (39) |
Accumulated deficit | (425,401) | (434,913) |
Total stockholders’ equity | 73,922 | 24,153 |
Total liabilities and stockholders’ equity | $ 320,470 | $ 284,136 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Net of allowance for doubtful accounts | $ 1,407 | $ 1,478 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 46,685,380 | 44,540,544 |
Common stock, shares outstanding | 46,198,572 | 44,053,736 |
Treasury stock, shares | 486,808 | 486,808 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Revenue: | ||
Products | $ 35,279 | $ 25,942 |
Maintenance and support | 10,753 | 10,802 |
Professional services | 8,483 | 8,501 |
Total revenue | 54,515 | 45,245 |
Cost of revenue: | ||
Products | 8,436 | 4,710 |
Maintenance and support | 1,849 | 1,878 |
Professional services | 6,309 | 5,676 |
Total cost of revenue | 16,594 | 12,264 |
Total gross profit | 37,921 | 32,981 |
Operating expenses: | ||
Research and development | 16,722 | 11,393 |
Sales and marketing | 29,052 | 24,810 |
General and administrative | 8,732 | 7,248 |
Total operating expenses | 54,506 | 43,451 |
Loss from operations | (16,585) | (10,470) |
Other income (expense), net: | ||
Interest income (expense), net | 241 | 169 |
Other income (expense), net | 78 | (115) |
Loss before income taxes | (16,266) | (10,416) |
Provision for income taxes | 95 | 129 |
Net loss | $ (16,361) | $ (10,545) |
Net loss per share, basic and diluted (in dollars per share) | $ (0.36) | $ (0.25) |
Weighted-average common shares outstanding, basic and diluted | 45,210,250 | 42,016,831 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (16,361) | $ (10,545) |
Other comprehensive loss: | ||
Change in fair value of investments | (5) | (20) |
Total change in unrealized losses on investments | (5) | (20) |
Comprehensive loss | $ (16,366) | $ (10,565) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Cash flows from operating activities: | ||
Net loss | $ (16,361) | $ (10,545) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 2,399 | 1,624 |
Stock-based compensation expense | 6,225 | 4,279 |
Provision for doubtful accounts | 156 | 316 |
Foreign currency re-measurement loss | 147 | 44 |
Other non-cash (income) expense | (52) | 97 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 34,722 | 15,182 |
Deferred contract acquisition and fulfillment costs | (1,713) | 0 |
Prepaid expenses and other assets | (3,190) | 1,466 |
Accounts payable | 3,219 | (244) |
Accrued expenses | (11,317) | (7,216) |
Deferred revenue | (6,495) | (1,416) |
Other liabilities | (444) | (266) |
Net cash provided by operating activities | 7,296 | 3,321 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (2,147) | (1,335) |
Capitalization of internal-use software costs | (693) | 0 |
Purchases of investments | (4,460) | (7,401) |
Sale and maturities of investments | 14,062 | 900 |
Net cash provided by (used in) investing activities | 6,762 | (7,836) |
Cash flows from financing activities: | ||
Proceeds from secondary public offering, net of offering costs paid of $284 | 31,231 | 0 |
Taxes paid related to net share settlement of equity awards | (462) | (169) |
Proceeds from employee stock purchase plan | 1,632 | 1,499 |
Proceeds from stock option exercises | 1,961 | 775 |
Net cash provided by financing activities | 34,362 | 2,105 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (36) | (76) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 48,384 | (2,486) |
Cash, cash equivalents and restricted cash, beginning of period | 51,762 | 53,148 |
Cash, cash equivalents and restricted cash, end of period | 100,146 | 50,662 |
Supplemental cash flow information: | ||
Cash paid for income taxes | 53 | 65 |
Total cash, cash equivalents and restricted cash | $ 51,762 | $ 53,148 |
Consolidated Statements of Cas7
Consolidated Statements of Cash Flows (Parenthetical) $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Statement of Cash Flows [Abstract] | |
Offering costs | $ 284 |
Description of Business, Basis
Description of Business, Basis of Presentation and Consolidation and Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Description of Business, Basis of Presentation and Consolidation and Significant Accounting Policies | Description of Business, Basis of Presentation and Consolidation and Significant Accounting Policies Description of Business Rapid7, Inc. and subsidiaries ("we", "us" or "our") is trusted by IT and security professionals around the world to manage risk, simplify modern IT complexity, and drive innovation. Our analytics help transform today's vast amount of security and IT data into the answers needed to securely develop and operate sophisticated IT networks and applications. 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 (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 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, 2017 filed with the SEC on March 8, 2018. 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, 2018 are not necessarily indicative of the results to be expected for any future period or the entire fiscal year. Significant Accounting Policies For a more complete discussion of our significant accounting policies and other information, the consolidated financial statements and notes thereto should be read in conjunction with the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2017. As of January 1, 2018, we adopted Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606) (ASU 2014-09), which with its amendments is collectively known as ASC 606. See Accounting Pronouncements Recently Adopted below and Note 2, Revenue from Contract with Customers , for a discussion of the impact of the adoption of this standard, which we are adopting using the modified retrospective transition method, and changes in our accounting policies related to revenue recognition and accounting for costs to obtain and fulfill a customer contract. Recent Accounting Pronouncements Accounting Pronouncements Recently Adopted In December 2017, the SEC issued Staff Accounting Bulletin 118 (SAB 118), which provides guidance for companies analyzing their accounting for the income tax effects of the Tax Cuts and Jobs Act of 2017 (Tax Act). SAB 118 provides that a company may report provisional amounts based on reasonable estimates. The provisional estimates are then subject to adjustment during a measurement period up to one year and should be accounted for as a prospective change. We continue to evaluate our transition tax obligation and expect to finalize our conclusion by the end of fiscal 2018. The provisional amounts recorded are based on our current interpretation and understanding of the Tax Act signed into law in December 2017, are judgmental and may change as we receive additional clarification and implementation guidance. Changes to these provisional amounts could result in additional charges or credits in future reporting periods. In May 2017, the Financial Accounting Standards Board (FASB), issued Accounting Standards Update (ASU) 2017-09, Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting , clarifying when a change to the terms or conditions of a share-based payment award must be accounted for as a modification. The ASU required modification accounting if the fair value, vesting condition or the classification of the award is not the same immediately before and after a change to the terms and conditions of the award. We adopted this standard on a prospective basis on January 1, 2018. There was no impact to our consolidated financial statements as a result of the adoption. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash , which provided guidance on the treatment of restricted cash in the statements of cash flows. Amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. We adopted this standard in the first quarter of 2018 utilizing the retrospective transition method. The presentation of restricted cash in the consolidated statements of cash flows was adjusted as a result of adopting this new standard. In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory . The ASU is intended to improve the accounting for the income tax consequences of intra-entity transfers of assets other than inventory. Current GAAP prohibits the recognition of current and deferred income taxes for an intra-entity asset transfer until the asset has been sold to an outside party. The ASU will allow an entity to recognize the income tax consequences of these transfers when the transfers occur. We adopted this standard on January 1, 2018 and there was no impact to our consolidated financial statements as a result of the adoption. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) (ASU 2014-09), which replaced the revenue recognition requirements in FASB ASC Topic 605, Revenue Recognition (ASC 605). The new revenue standard outlines a single, comprehensive model for accounting for revenue from contracts with customers and requires more detailed disclosure to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from such contracts. The new revenue standard provides a five-step analysis of transactions to determine when and how revenue is recognized. The core principle is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. We adopted ASC 606 on January 1, 2018 using the modified retrospective method. Under this method of adoption, we recognized the cumulative effect of initially applying the new revenue standard as an adjustment to the opening balance of accumulated deficit. Comparative prior year periods were not adjusted. As a result of applying the modified retrospective method to adopt ASC 606, the following adjustments were made to the consolidated balance sheet as of January 1, 2018: As Reported Adjustments Adjusted under ASC 606 December 31, 2017 Term and Perpetual License Professional Services Other Costs to Obtain or Fulfill a Contract January 1, 2018 (in thousands) Cash and cash equivalents $ 51,562 $ — $ — $ — $ — $ 51,562 Short-term investments 39,178 — — — — 39,178 Accounts receivable, net 73,661 — — — — 73,661 Deferred contract acquisition and fulfillment costs, current portion — — — — 7,844 7,844 Prepaid expenses and other current assets 8,877 — 30 — — 8,907 Long-term investments 1,102 — — — — 1,102 Property and equipment, net 8,589 — — — — 8,589 Goodwill 83,164 — — — — 83,164 Intangible assets, net 16,640 — — — — 16,640 Deferred contract acquisition and fulfillment costs, non-current portion — — — — 19,321 19,321 Other assets 1,363 — — — — 1,363 Total assets $ 284,136 $ — $ 30 $ — $ 27,165 $ 311,331 Accounts payable $ 2,240 $ — $ — $ — $ — $ 2,240 Accrued expenses 29,728 — — — — 29,728 Deferred revenue, current portion 155,811 (10,912 ) (1,523 ) (1,356 ) — 142,020 Other current liabilities 1,706 — — — — 1,706 Deferred revenue, non-current portion 68,689 17,647 (2,624 ) (339 ) — 83,373 Other long-term liabilities 1,809 — — — 429 2,238 Total liabilities 259,983 6,735 (4,147 ) (1,695 ) 429 261,305 Common stock 441 — — — — 441 Treasury stock (4,764 ) — — — — (4,764 ) Additional paid-in-capital 463,428 — — — — 463,428 Accumulated other comprehensive loss (39 ) — — — — (39 ) Accumulated deficit (434,913 ) (6,735 ) 4,177 1,695 26,736 (409,040 ) Total stockholders’ equity 24,153 (6,735 ) 4,177 1,695 26,736 50,026 Total liabilities and stockholders’ equity $ 284,136 $ — $ 30 $ — $ 27,165 $ 311,331 Term and Perpetual Licenses Prior to the adoption of ASC 606, we recognized revenue for our term and perpetual licenses over the contractual period of maintenance and support due to the lack of vendor-specific objective evidence (VSOE) of selling price of maintenance and support. Under ASC 606, for our term and perpetual licenses which are not dependent on the continued delivery of content subscriptions, revenue is recognized at the time of delivery. For our perpetual licenses where the utility to the customer is dependent on the continued delivery of content subscriptions, the content subscription renewal option results in a material right with respect to the perpetual license. As a result, revenue related to the sale of these perpetual licenses is recognized ratably over the customer's estimated economic life of 5 years. The net impact of these changes resulted in a $6.7 million adjustment to accumulated deficit with an associated increase to deferred revenue. Professional Services Under ASC 605, professional services which were sold with term or perpetual licenses were recognized ratably over the contractual period of maintenance and support. Under ASC 606, these services are deemed distinct performance obligations and therefore recognized as the services are performed. The net impact of these changes resulted in a $4.2 million adjustment to accumulated deficit with an associated decrease to deferred revenue. Costs to Obtain or Fulfill a Contract Prior to the adoption of ASC 606, we expensed sales commissions in the period that they were earned by our employees (which was typically upon signing of an arrangement). Under ASC 606, the direct and incremental costs to obtain contracts with customers, including sales commissions, are deferred and recognized over a period of benefit that we have determined to be 5 years. In addition, under ASC 606, contract fulfillment costs associated with certain of our product offerings are deferred and amortized over the estimated period of benefit. Prior to the adoption of ASC 606, such costs were expensed as incurred. The net impact of these changes resulted in a $27.2 million increase in deferred contract acquisition and fulfillment costs and an adjustment to accumulated deficit. Income Taxes Deferred tax liabilities increased by $0.4 million due to the temporary differences between the accounting and tax carrying values of capitalized costs to obtain or fulfill a contract created as a result of the adoption of ASC 606. In addition, the increase in deferred revenue generated additional deferred tax assets. As we fully reserve our deferred tax assets in the jurisdictions impacted by the increase in deferred revenue, this impact was offset by a corresponding increase to our valuation allowance. Refer to Note 2, Revenue from Contracts with Customers, for additional information including further discussion on the impact of the adoption of ASC 606 and changes in accounting policies relating to revenue recognition and accounting for costs to obtain or fulfill a customer contract. Accounting Pronouncements Not Yet Effective In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . The ASU requires companies to recognize on the balance sheet the assets and liabilities for the rights and obligations created by leased assets. The ASU will be effective for us in the first quarter of 2019, with early adoption permitted. We are currently evaluating the impact that the adoption of this ASU will have on our consolidated financial statements. Although we have not finalized our process of evaluating the impact of adoption of the ASU on our consolidated financial statements, we expect there will be a material increase to assets and liabilities related to the recognition of new right-of-use assets and lease liabilities on our balance sheet for leases currently classified as operating leases. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 3 Months Ended |
Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers Effective January 1, 2018, we adopted ASC 606 under the modified retrospective transition method. This method was applied to contracts that were not complete as of the date of initial application. The following is a summary of new and/or revised significant accounting policies affected by our adoption of ASC 606, which relate primarily to revenue and cost recognition. Refer to Note 2, Summary of Significant Accounting Policies , in our Annual Report on Form 10-K for the year ended December 31, 2017 for the policies in effect for revenue and cost recognition prior to January 1, 2018 and for all other significant accounting policies. For further information regarding the adoption of ASC 606, see Note 1, Accounting Pronouncements Recently Adopted . We generate products revenue from the sale of (1) term or perpetual software licenses for our Nexpose, Metasploit, AppSpider and Komand products, and associated content subscriptions for our Nexpose and Metasploit products, (2) cloud-based subscriptions for our InsightIDR, InsightVM, InsightAppSec, Logentries and InsightOps products and (3) managed services offerings which utilize either our InsightVM, AppSpider or InsightIDR products. We also generate an immaterial amount of appliance revenue that is included in our products revenue. We generate maintenance and support revenue associated with customers’ purchases of our software licenses for Nexpose, Metasploit, AppSpider and Komand. We generate professional service revenue from the sale of our deployment and training services related to our solutions, incident response services and security advisory services. Our deployment services educate and assist our customers on the best use and best practices to deploy our solutions. In accordance with ASC 606, revenue is recognized when a customer obtains control of promised products or services. The amount of revenue recognized reflects the consideration that we expect to be entitled to receive in exchange for these products or services. To achieve the core principle of this standard, we apply the following five steps: 1) Identify the contract with a customer We consider the terms and conditions of the contracts and our customary business practices in identifying our contracts under ASC 606. We determine we have a contract with a customer when the contract is approved, we can identify each party’s rights regarding the services to be transferred, we can identify the payment terms for the services, and we have determined the customer has the ability and intent to pay and the contract has commercial substance. We apply judgment in determining the customer’s ability and intent to pay, which is based on a variety of factors, including the customer’s historical payment experience or, in the case of a new customer, credit and financial information pertaining to the customer. 2) Identify the performance obligations in the contract Performance obligations promised in a contract are identified based on the products and services that will be transferred to the customer that are both capable of being distinct, whereby the customer can benefit from the product or service either on its own or together with other resources that are readily available from third parties or from us, and are distinct in the context of the contract, whereby the transfer of the products or services is separately identifiable from other promises in the contract. 3) Determine the transaction price The transaction price is determined based on the consideration to which we expect to be entitled in exchange for transferring products or services to the customer. Variable consideration is included in the transaction price if, in our judgment, it is probable that no significant future reversal of cumulative revenue under the contract will occur. In instances where the timing of revenue recognition differs from the timing of invoicing, we have determined our contracts generally do not include a significant financing component. The primary purpose of our invoicing terms is to provide customers with simplified and predictable ways of purchasing our products and services, not to receive financing from our customers or to provide customers with financing. Examples include invoicing at the beginning of a subscription term with revenue recognized ratably over the contract period. 4) Allocate the transaction price to performance obligations in the contract If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation based on a relative standalone selling price (“SSP”). 5) Recognize revenue when or as we satisfy a performance obligation Revenue is recognized at the time the related performance obligation is satisfied by transferring the promised product or service to a customer. Revenue is recognized when control of the products or services are transferred to our customers, in an amount that reflects the consideration that we expect to receive in exchange for those products or services. The following table summarizes revenue from contracts with customers for the three months ended March 31, 2018 (in thousands): Subscription revenue $ 28,710 Term and perpetual software licenses 5,619 Maintenance and support 10,753 Professional services 8,483 Other 950 Total revenue $ 54,515 The following table summarizes the revenue by region based on the shipping address of customers who have contracted to use our product or service for the three months ended March 31, 2018 (in thousands): United States $ 44,210 All other 10,305 Total revenue $ 54,515 Subscription Revenue Subscription revenue consists of revenue from our cloud-based subscription, managed services offerings and content subscriptions associated with our software licenses. We generate cloud-based subscription revenue primarily from sales of subscriptions to access our cloud platform, together with related support services to our customers. These arrangements do not provide the customer with the right to take possession of our software operating on our cloud platform at any time. Instead, customers are granted continuous access to our cloud platform over the contractual period. Revenue is recognized over time on a ratable basis over the contract term beginning on the date that our service is made available to the customer. Our cloud-based subscription contracts generally have terms of 1 to 3 years which are billed in advance and non-cancelable. Managed services offerings consist of fees generated when we operate our software and provide our capabilities on behalf of our customers. Revenue is recognized on a ratable basis over the contract term beginning on the date that our service is made available to the customer. Our managed services offerings generally have terms of 1 to 3 years which are billed in advance and non-cancelable. Revenue related to our content subscriptions associated with our software licenses is recognized ratably over the contractual period. Some of our customers have the option to purchase additional subscription and support services at a stated price. These options generally do not provide a material right as they are priced at our SSP. Certain subscription contracts contain service level commitments, which entitle our customers to receive service credits and, in certain cases, refunds, if our services do not meet certain levels. These service credits and refunds represent variable consideration. We have historically not experienced any significant incidents affecting the defined levels of reliability and performance as required by our subscription contracts and accordingly, no estimated refunds have been considered in the allocation of the transaction price. Term and Perpetual Software Licenses For our perpetual software licenses where the utility to the customer is dependent on the continued delivery of content subscriptions, the content subscription renewal options result in a material right with respect to the perpetual software license. As a result, the revenue attributable to the perpetual software license is recognized ratably over the customer’s estimated economic life of 5 years, which represents a longer period of time in comparison to the initial contractual period of maintenance and support. The estimated economic life of 5 years represents the period which the customer is expected to benefit from the material right. We estimated this period of benefit by taking into consideration several factors, including the terms and conditions of our customer contracts and renewals and the expected useful life of our technology. For our term software licenses where the utility to the customer is dependent on the continued delivery of content subscriptions, we recognize the license revenue over the contractual term of the arrangement as a material right does not exist. For our term and perpetual software licenses which are not dependent on the continued delivery of content subscriptions, the license is considered distinct from the maintenance and support, and we therefore recognize revenue attributable to the license at the time of delivery. Maintenance and Support Maintenance and support services are sold with our perpetual and term software licenses. As maintenance and support services are distinct from the perpetual and term software license, revenue attributable to maintenance and support services is recognized ratably over the contractual period. Professional Services All of our professional services are considered distinct performance obligations when sold stand alone or with other products. These contracts generally have terms of one year or less. For the majority of these contracts, revenue is recognized over time based upon the proportion of work performed to date. Other Other revenue primarily includes revenue from delivery of appliances and other miscellaneous revenue . Contracts with Multiple Performance Obligations The majority of our contracts with customers contain multiple performance obligations. For these contracts, we account for individual performance obligations separately if they are considered distinct. The transaction price is allocated to the separate performance obligations on a relative SSP basis. We determine SSP based on our overall pricing objectives, taking into consideration market conditions and other factors, including the geographic locations of our customers and selling method (i.e., partner or direct). Contract Balances Contract liabilities consist of deferred revenue and include payments received in advance of performance under the contract. Such amounts are recognized as revenue over the contractual period consistent with the above methodology. For the three months ended March 31, 2018, we recognized revenue of $46.5 million that was included in the corresponding contract liability balance at the beginning of the period presented. We receive payments from customers based upon contractual billing schedules. Accounts receivable are recorded when the right to consideration becomes unconditional. Contract assets, or unbilled receivables, include amounts related to our contractual right to consideration for both completed and partially completed performance obligations that may not have been invoiced. As of January 1, 2018 and March 31, 2018, contract assets of $0.3 million and $0.5 million , respectively, are included in prepaid expenses and other current assets in our consolidated balance sheet. Costs to Obtain or Fulfill a Contract We capitalize commission expenses paid to internal sales personnel and partner referral fees that are incremental to obtaining customer contracts. These costs are recorded as deferred contract acquisition costs in the consolidated balance sheets. Costs to obtain a contract for a new customer, up-sell or cross-sell are amortized on a straight-line basis over an estimated period of benefit of 5 years. We determined the estimated period of benefit by taking into consideration the contractual term and expected renewals of customer contracts, our technology and other factors, including the fact that commissions paid on renewals are not commensurate with commissions paid on initial sales transactions. We periodically review the carrying amount of deferred contract acquisition costs to determine whether events or changes in circumstances have occurred that could impact the period of benefit. Commissions paid relating to contract renewals are deferred and amortized on a straight-line basis over the related renewal period. Costs to obtain a contract for professional services arrangements are expensed as incurred in accordance with the practical expedient as the contractual period of our professional services arrangements are one year or less. Amortization expense associated with deferred contract acquisition costs is recorded to sales and marketing expense in the accompanying consolidated statements of operations. We capitalize costs incurred to fulfill our contracts that relate directly to the contract, are expected to generate resources that will be used to satisfy our performance obligations and are expected to be recovered through revenue generated under the contract. Contract fulfillment costs are amortized on a straight-line basis over the estimated period of benefit and recorded as cost of products in our consolidated statement of operations. The following table summarizes the activity of the deferred contract acquisition and fulfillment costs: Three Months Ended March 31, 2018 (in thousands) Beginning balance $ 27,165 Capitalization of contract acquisition and fulfillment costs 3,733 Amortization of deferred contract acquisition and fulfillment costs (2,020 ) Ending balance $ 28,878 Transaction price allocated to the remaining performance obligations The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied or partially unsatisfied as of March 31, 2018. The estimated revenues do not include unexercised contract renewals. Remainder of 2018 2019 2020 and thereafter (in thousands) Subscription revenue $ 67,921 $ 36,817 $ 18,468 Software licenses 11,665 12,344 21,030 Maintenance and support 25,398 11,369 4,348 The amounts presented in the table above primarily consist of fixed fees which are typically recognized ratably as the performance obligation is satisfied. As of March 31, 2018, the estimated revenue expected to be recognized in the future related to professional services is $13.7 million . We will recognize this revenue as the professional services are completed, which is expected to occur within the next 12 months or less. Transition Disclosures In accordance with the modified retrospective method transition requirements, we will present the financial statement line items impacted and adjusted to compare to presentation under ASC 605 for each of the interim and annual periods during the first year of adoption of ASC 606. The following tables summarize the impact as of and for the three months ended March 31, 2018. As of March 31, 2018 Balance Sheet As Reported under ASC 606 Proforma as if ASC 605 was in effect (in thousands) Cash and cash equivalents $ 99,646 $ 99,646 Short-term investments 29,630 29,630 Accounts receivable, net 38,718 38,718 Deferred contract acquisition and fulfillment costs, current portion 8,583 — Prepaid expenses and other current assets 12,232 11,949 Long-term investments 1,096 1,096 Property and equipment, net 9,238 9,238 Goodwill 83,164 83,164 Intangible assets, net 16,316 16,316 Deferred contract acquisition and fulfillment costs, non-current portion 20,295 — Other assets 1,552 1,552 Total assets $ 320,470 $ 291,309 Accounts payable $ 5,669 $ 5,669 Accrued expenses 18,372 18,372 Deferred revenue, current portion 140,448 152,336 Other current liabilities 1,702 1,702 Deferred revenue, non-current portion 78,450 61,730 Other long-term liabilities 1,907 1,478 Total liabilities 246,548 241,287 Common stock 462 462 Treasury stock (4,764 ) (4,764 ) Additional paid-in-capital 503,669 503,669 Accumulated other comprehensive loss (44 ) (44 ) Accumulated deficit (425,401 ) (449,301 ) Total stockholders’ equity 73,922 50,022 Total liabilities and stockholders’ equity $ 320,470 $ 291,309 Total reported assets were $29.2 million greater than the proforma balance sheet, which assumes the previous guidance remained in effect as of March 31, 2018, largely due to deferred contract acquisition costs of $28.9 million . Total reported liabilities were $5.3 million greater than the proforma balance sheet primarily due to changes in deferred revenue and deferred tax liabilities. Three Months Ended March 31, 2018 Statement of Operations As Reported under ASC 606 Proforma as if ASC 605 was in effect (in thousands, except share and per share data) Revenue: Products $ 35,279 $ 37,766 Maintenance and support 10,753 11,682 Professional services 8,483 8,753 Total revenue 54,515 58,201 Cost of revenue: Products 8,436 8,464 Maintenance and support 1,849 1,849 Professional services 6,309 6,303 Total cost of revenue 16,594 16,616 Total gross profit 37,921 41,585 Operating expenses: Research and development 16,722 16,722 Sales and marketing 29,052 30,743 General and administrative 8,732 8,732 Total operating expenses 54,506 56,197 Loss from operations (16,585 ) (14,612 ) Other income (expense), net: Interest income (expense), net 241 241 Other income (expense), net 78 78 Loss before income taxes (16,266 ) (14,293 ) Provision for income taxes 95 95 Net loss $ (16,361 ) $ (14,388 ) Net loss per share, basic and diluted $ (0.36 ) $ (0.32 ) Weighted-average common shares outstanding, basic and diluted 45,210,250 45,210,250 The following summarizes the significant changes on the consolidated statement of operations for the three months ended March 31, 2018 as a result of the adoption of ASC 606 on January 1, 2018 compared to if we had continued to recognize revenue under ASC 605: • Products revenue decreased $2.5 million under ASC 606 primarily due to perpetual licenses revenue which are dependent on the continued delivery of content subscriptions and the change in the allocation of contract consideration to a relative fair value method under ASC 606 from residual method under ASC 605. As a result of the allocation change, more contract consideration is allocated to license revenue under ASC 606. Given the utility of certain of our perpetual license products are dependent on the continued delivery of content subscriptions, the content subscription renewal option results in a material right with respect to the perpetual license. As a result, revenue allocated to the perpetual license is recognized ratably over the customer's estimated economic life of 5 years rather than over the contractual period of maintenance and support, typically one to three years. • Maintenance and support revenue decreased $0.9 million under ASC 606 primarily due to the change in the allocation of contract consideration to the relative fair value method under ASC 606 from the residual method under ASC 605. As a result of the allocation change, more contract consideration is allocated to license revenue under ASC 606. • Professional services revenue decreased $0.3 million under ASC 606. Under ASC 606, the professional services represent distinct performance obligations and therefore are recognized as such services are performed. Under ASC 605, professional services sold together with term or perpetual licenses were recognized ratably over the contractual period of maintenance and support. • Sales and marketing expense decreased $1.7 million under ASC 606 primarily due to the capitalization of commissions considered direct and incremental costs to obtain a contract in the three months ended March 31, 2018 partially offset by amortization of capitalized commissions recorded as part of the cumulative effect adjustment upon adoption of ASC 606. Three Months Ended March 31, 2018 Statement of Cash Flows As Reported under ASC 606 Proforma as if ASC 605 was in effect (in thousands) Net loss $ (16,361 ) $ (14,388 ) Adjustments to reconcile net loss to net cash provided by operating activities 8,875 8,875 Changes in operating assets and liabilities: Accounts receivable 34,722 34,722 Deferred contract acquisition and fulfillment costs (1,713 ) — Prepaid expenses and other assets (3,190 ) (2,936 ) Accounts payable 3,219 3,219 Accrued expenses (11,317 ) (11,317 ) Deferred revenue (6,495 ) (10,435 ) Other liabilities (444 ) (444 ) Net cash provided by operating activities 7,296 7,296 The adoption of ASC 606 resulted in offsetting changes in operating assets and liabilities and had no impact on net cash flow from operations. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements We measure certain financial assets and liabilities at fair value. Fair value is determined based upon the exit price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants, as determined by either the principal market or the most advantageous market. Inputs used in the valuation techniques to derive fair values are classified based on a three-level hierarchy, as follows: Level 1 : Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 : Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which all significant inputs are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 : Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the asset or liability. We consider an active market to be one in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis, and we consider an inactive market to be one in which there are infrequent or few transactions for the asset or liability, the prices are not current, or price quotations vary substantially either over time or among market makers. The following table presents our financial assets and liabilities measured and recorded at fair value on a recurring basis using the above input categories: As of March 31, 2018 Level 1 Level 2 Level 3 Total (in thousands) Description: Assets: Money market funds $ 7,368 $ — $ — $ 7,368 U.S. government agencies 9,378 — — 9,378 Commercial paper — 12,657 — 12,657 Corporate bonds — 11,137 — 11,137 Total assets $ 16,746 $ 23,794 $ — $ 40,540 As of December 31, 2017 Level 1 Level 2 Level 3 Total (in thousands) Description: Assets: Money market funds $ 95 $ — $ — $ 95 U.S. government agencies 11,869 — — 11,869 Commercial paper — 12,942 — 12,942 Corporate bonds — 12,964 — 12,964 Asset-backed securities — 2,505 — 2,505 Total assets $ 11,964 $ 28,411 $ — $ 40,375 We had no liabilities measured and recorded at fair value on a recurring basis as of March 31, 2018 or December 31, 2017 . Our investments, which are all classified as available-for-sale, consisted of the following: As of March 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) Description: U.S. government agencies $ 9,385 $ — $ (7 ) $ 9,378 Commercial paper 10,211 — — 10,211 Corporate bonds 11,174 — (37 ) 11,137 Total assets $ 30,770 $ — $ (44 ) $ 30,726 Our available-for-sale investments as of March 31, 2018 includes $2.4 million of commercial paper investments which are classified as cash and cash equivalents as the original maturity was less than three months. As of December 31, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) Description: U.S. government agencies $ 11,880 $ — $ (11 ) $ 11,869 Commercial paper 12,942 — — 12,942 Corporate bonds 12,991 — (27 ) 12,964 Asset-backed securities 2,506 — (1 ) 2,505 Total assets $ 40,319 $ — $ (39 ) $ 40,280 As of March 31, 2018 and December 31, 2017, our available-for-sale investments had maturities ranging from three months to two years. For all of our investments for which the amortized cost basis was greater than the fair value at March 31, 2018 and December 31, 2017 , we have concluded that there is no plan to sell the security nor is it more likely than not that we would be required to sell the security before its anticipated recovery. In making the determination as to whether the unrealized loss is other-than-temporary, we considered the length of time and extent the investment has been in an unrealized loss position, the financial condition and near-term prospects of the issuers, the issuers’ credit rating and the time to maturity. |
Property and Equipment
Property and Equipment | 3 Months Ended |
Mar. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment are recorded at cost and consist of the following: As of As of (in thousands) Computer equipment and software $ 18,002 $ 16,205 Furniture and fixtures 3,965 4,034 Leasehold improvements 9,374 9,079 Total 31,341 29,318 Less accumulated depreciation (22,103 ) (20,729 ) Property and equipment, net $ 9,238 $ 8,589 Depreciation expense was $1.4 million and $1.1 million for the three months ended March 31, 2018 and 2017 , respectively. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill was $83.2 million as of March 31, 2018 and December 31, 2017 . The following table presents details of our intangible assets, which include acquired identifiable intangible assets and capitalized internal-use software costs: As of March 31, 2018 As of December 31, 2017 Weighted- Average Life (years) Gross Carrying Amount Accumulated Amortization Net Book Value Gross Carrying Amount Accumulated Amortization Net Book Value (in thousands) Intangible assets subject to amortization: Developed technology 5.7 $ 20,611 $ (6,664 ) $ 13,947 $ 20,611 $ (5,756 ) $ 14,855 Customer relationships 6.7 1,000 (389 ) 611 1,000 (351 ) 649 Trade names 6.1 519 (512 ) 7 519 (510 ) 9 Non-compete agreements 2.0 40 (40 ) — 40 (40 ) — Total acquired intangible assets 22,170 (7,605 ) 14,565 22,170 (6,657 ) 15,513 Internal-use software 1,855 (104 ) 1,751 1,162 (35 ) 1,127 Total intangible assets $ 24,025 $ (7,709 ) $ 16,316 $ 23,332 $ (6,692 ) $ 16,640 Amortization expense was $1.0 million and $0.5 million for the three months ended March 31, 2018 and 2017 , respectively. Estimated future amortization expense of the acquired identifiable intangible assets and completed capitalized internal-use software costs as of March 31, 2018 is as follows (in thousands): 2018 (for the remaining nine months) $ 3,074 2019 4,081 2020 4,023 2021 3,226 2022 1,095 2023 and thereafter — Total $ 15,499 The table above excludes the impact of $0.8 million of capitalized internal-use software costs for projects that have not been completed as of March 31, 2018, and therefore, we have not determined the useful life of the software, nor have all the costs associated with these projects been incurred. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity On January 30, 2018, we completed a public offering of 5,950,000 shares of our common stock, of which 1,500,000 shares of common stock were sold by us and 4,450,000 shares of common stock were sold by certain existing stockholders, at an offering price of $22.00 per share, including 770,000 shares pursuant to the underwriters' option to purchase additional shares from the selling stockholders. Our net proceeds from the offering were $30.9 million , after deducting underwriting discounts and commissions and our offering expenses. We did not receive any of the proceeds from the sale of shares by the selling stockholders. |
Stock-Based Compensation Expens
Stock-Based Compensation Expense | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation Expense | 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, 2018 2017 (in thousands) Stock-based compensation expense: Cost of revenue $ 374 $ 202 Research and development 2,566 1,513 Sales and marketing 1,563 1,403 General and administrative 1,722 1,161 Total stock-based compensation expense $ 6,225 $ 4,279 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, 2018 was as follows: Restricted Stock Restricted Stock Units Shares Weighted-Average Grant Date Fair Value Shares Weighted-Average Unvested balance as of December 31, 2017 210,083 $ 18.00 1,988,509 $ 14.77 Granted — — 1,758,777 23.71 Vested (47,109 ) 18.82 (155,431 ) 13.57 Forfeited — — (84,682 ) 18.34 Unvested balance as of March 31, 2018 162,974 $ 17.76 3,507,173 $ 19.22 As of March 31, 2018 , the unrecognized compensation expense related to our unvested restricted stock and restricted stock units expected to vest was $65.5 million . This unrecognized compensation expense will be recognized over an estimated weighted-average amortization period of 3.2 years. (c) Stock Options Stock option activity during the three months ended March 31, 2018 was as follows: Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (in years) Aggregate Intrinsic Value (in thousands) Outstanding as of December 31, 2017 4,684,954 $ 9.68 Granted 97,850 24.14 Exercised (388,786 ) 5.04 $ 7,345 Forfeited/cancelled (43,795 ) 16.18 Outstanding as of March 31, 2018 4,350,223 $ 10.35 7.0 $ 66,227 Vested and exercisable as of March 31, 2018 2,629,325 $ 7.99 6.0 $ 46,236 As of March 31, 2018 , the unrecognized compensation expense related to our unvested stock options expected to vest was $10.3 million . This unrecognized compensation expense will be recognized over an estimated weighted-average amortization period of 2.3 years. The total fair value of stock options vested in the three months ended March 31, 2018 was $7.0 million . The weighted-average grant date fair value of stock options granted in the three months ended March 31, 2018 was $11.73 per share. (d) Employee Stock Purchase Plan Under the Rapid7, Inc. 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 stock 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, 2017, we issued 138,085 shares of common stock to employees for aggregate proceeds of $1.5 million . The purchase prices of the shares of common stock were $10.60 and $12.79 per share, which were discounted in accordance with the terms of the ESPP from the closing prices of our common stock on March 16, 2016 of $12.47 and on March 15, 2017 of $15.05 , respectively. On March 15, 2018, we issued 123,607 shares of common stock to employees for aggregate proceeds of $1.6 million . The purchase prices of the shares were $12.96 and $14.78 per share, which were discounted in accordance with the terms of the ESPP from the closing prices of our common stock on March 16, 2017 of $15.25 and on September 18, 2017 of $17.39 , respectively. |
Net Loss per Share
Net Loss per Share | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Net Loss per Share | 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, 2018 and 2017 : Three Months Ended March 31, 2018 2017 (in thousands, except share and per share data) Numerator: Net loss $ (16,361 ) $ (10,545 ) Denominator: Weighted-average common shares outstanding, basic and diluted 45,210,250 42,016,831 Net loss per share attributable to common stockholders, basic and diluted $ (0.36 ) $ (0.25 ) 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, 2018 2017 Options to purchase common stock 4,350,223 5,501,020 Unvested restricted stock 162,974 505,703 Unvested restricted stock units 3,507,173 1,954,651 Shares to be issued under ESPP 9,423 10,959 Total 8,029,793 7,972,333 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 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 may be a party to litigation or 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. In November 2016, Rapid7 LLC and two of our then executive officers were named as defendants in a class action lawsuit which alleged violations of certain Massachusetts wage and hour laws. In the three months ended March 31, 2018, we increased our litigation accrual by $0.4 million to $0.6 million which reflects the preliminary settlement amount discussed between the parties in April 2018. (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. As permitted under Delaware law, we have entered into indemnification agreements with our officers and directors, indemnifying them for certain events or occurrences while they serve as officers or directors of the company. |
Segment Information and Informa
Segment Information and Information about Geographic Areas | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Information and Information about Geographic Areas | 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 were as follows: Three Months Ended March 31, 2018 2017 (in thousands) North America $ 46,377 $ 37,993 Other 8,138 7,252 Total $ 54,515 $ 45,245 Of the total net revenues generated in North America, 95% and 94% of the revenues were generated in the United States for the three months ended March 31, 2018 and 2017 , respectively. Property and equipment, net by geographic area was as follows: As of March 31, 2018 As of December 31, 2017 (in thousands) United States $ 7,876 $ 7,182 Other 1,362 1,407 Total $ 9,238 $ 8,589 |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions In October 2015, McAfee LLC (formerly known as Intel Security) announced the end-of-sale for the McAfee Vulnerability Manager to customers and partners, effective January 11, 2016, with end-of-life to follow, and announced that we were named their exclusive vulnerability management partner. Under the terms of the commercial agreement, we incur partner referral fees as customers transition from McAfee Vulnerability Manager to Nexpose. During the three months ended March 31, 2018, we recognized sales and marketing expense of $0.2 million related to partner referral fees payable to McAfee LLC. On February 6, 2017, Michael Berry, a member of our Board of Directors, became the Chief Financial Officer of McAfee LLC. |
Description of Business, Basi19
Description of Business, Basis of Presentation and Consolidation and Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [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 (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 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, 2017 filed with the SEC on March 8, 2018. 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, 2018 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 Accounting Pronouncements Recently Adopted In December 2017, the SEC issued Staff Accounting Bulletin 118 (SAB 118), which provides guidance for companies analyzing their accounting for the income tax effects of the Tax Cuts and Jobs Act of 2017 (Tax Act). SAB 118 provides that a company may report provisional amounts based on reasonable estimates. The provisional estimates are then subject to adjustment during a measurement period up to one year and should be accounted for as a prospective change. We continue to evaluate our transition tax obligation and expect to finalize our conclusion by the end of fiscal 2018. The provisional amounts recorded are based on our current interpretation and understanding of the Tax Act signed into law in December 2017, are judgmental and may change as we receive additional clarification and implementation guidance. Changes to these provisional amounts could result in additional charges or credits in future reporting periods. In May 2017, the Financial Accounting Standards Board (FASB), issued Accounting Standards Update (ASU) 2017-09, Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting , clarifying when a change to the terms or conditions of a share-based payment award must be accounted for as a modification. The ASU required modification accounting if the fair value, vesting condition or the classification of the award is not the same immediately before and after a change to the terms and conditions of the award. We adopted this standard on a prospective basis on January 1, 2018. There was no impact to our consolidated financial statements as a result of the adoption. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash , which provided guidance on the treatment of restricted cash in the statements of cash flows. Amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. We adopted this standard in the first quarter of 2018 utilizing the retrospective transition method. The presentation of restricted cash in the consolidated statements of cash flows was adjusted as a result of adopting this new standard. In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory . The ASU is intended to improve the accounting for the income tax consequences of intra-entity transfers of assets other than inventory. Current GAAP prohibits the recognition of current and deferred income taxes for an intra-entity asset transfer until the asset has been sold to an outside party. The ASU will allow an entity to recognize the income tax consequences of these transfers when the transfers occur. We adopted this standard on January 1, 2018 and there was no impact to our consolidated financial statements as a result of the adoption. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) (ASU 2014-09), which replaced the revenue recognition requirements in FASB ASC Topic 605, Revenue Recognition (ASC 605). The new revenue standard outlines a single, comprehensive model for accounting for revenue from contracts with customers and requires more detailed disclosure to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from such contracts. The new revenue standard provides a five-step analysis of transactions to determine when and how revenue is recognized. The core principle is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. We adopted ASC 606 on January 1, 2018 using the modified retrospective method. Under this method of adoption, we recognized the cumulative effect of initially applying the new revenue standard as an adjustment to the opening balance of accumulated deficit. Comparative prior year periods were not adjusted. As a result of applying the modified retrospective method to adopt ASC 606, the following adjustments were made to the consolidated balance sheet as of January 1, 2018: As Reported Adjustments Adjusted under ASC 606 December 31, 2017 Term and Perpetual License Professional Services Other Costs to Obtain or Fulfill a Contract January 1, 2018 (in thousands) Cash and cash equivalents $ 51,562 $ — $ — $ — $ — $ 51,562 Short-term investments 39,178 — — — — 39,178 Accounts receivable, net 73,661 — — — — 73,661 Deferred contract acquisition and fulfillment costs, current portion — — — — 7,844 7,844 Prepaid expenses and other current assets 8,877 — 30 — — 8,907 Long-term investments 1,102 — — — — 1,102 Property and equipment, net 8,589 — — — — 8,589 Goodwill 83,164 — — — — 83,164 Intangible assets, net 16,640 — — — — 16,640 Deferred contract acquisition and fulfillment costs, non-current portion — — — — 19,321 19,321 Other assets 1,363 — — — — 1,363 Total assets $ 284,136 $ — $ 30 $ — $ 27,165 $ 311,331 Accounts payable $ 2,240 $ — $ — $ — $ — $ 2,240 Accrued expenses 29,728 — — — — 29,728 Deferred revenue, current portion 155,811 (10,912 ) (1,523 ) (1,356 ) — 142,020 Other current liabilities 1,706 — — — — 1,706 Deferred revenue, non-current portion 68,689 17,647 (2,624 ) (339 ) — 83,373 Other long-term liabilities 1,809 — — — 429 2,238 Total liabilities 259,983 6,735 (4,147 ) (1,695 ) 429 261,305 Common stock 441 — — — — 441 Treasury stock (4,764 ) — — — — (4,764 ) Additional paid-in-capital 463,428 — — — — 463,428 Accumulated other comprehensive loss (39 ) — — — — (39 ) Accumulated deficit (434,913 ) (6,735 ) 4,177 1,695 26,736 (409,040 ) Total stockholders’ equity 24,153 (6,735 ) 4,177 1,695 26,736 50,026 Total liabilities and stockholders’ equity $ 284,136 $ — $ 30 $ — $ 27,165 $ 311,331 Term and Perpetual Licenses Prior to the adoption of ASC 606, we recognized revenue for our term and perpetual licenses over the contractual period of maintenance and support due to the lack of vendor-specific objective evidence (VSOE) of selling price of maintenance and support. Under ASC 606, for our term and perpetual licenses which are not dependent on the continued delivery of content subscriptions, revenue is recognized at the time of delivery. For our perpetual licenses where the utility to the customer is dependent on the continued delivery of content subscriptions, the content subscription renewal option results in a material right with respect to the perpetual license. As a result, revenue related to the sale of these perpetual licenses is recognized ratably over the customer's estimated economic life of 5 years. The net impact of these changes resulted in a $6.7 million adjustment to accumulated deficit with an associated increase to deferred revenue. Professional Services Under ASC 605, professional services which were sold with term or perpetual licenses were recognized ratably over the contractual period of maintenance and support. Under ASC 606, these services are deemed distinct performance obligations and therefore recognized as the services are performed. The net impact of these changes resulted in a $4.2 million adjustment to accumulated deficit with an associated decrease to deferred revenue. Costs to Obtain or Fulfill a Contract Prior to the adoption of ASC 606, we expensed sales commissions in the period that they were earned by our employees (which was typically upon signing of an arrangement). Under ASC 606, the direct and incremental costs to obtain contracts with customers, including sales commissions, are deferred and recognized over a period of benefit that we have determined to be 5 years. In addition, under ASC 606, contract fulfillment costs associated with certain of our product offerings are deferred and amortized over the estimated period of benefit. Prior to the adoption of ASC 606, such costs were expensed as incurred. The net impact of these changes resulted in a $27.2 million increase in deferred contract acquisition and fulfillment costs and an adjustment to accumulated deficit. Income Taxes Deferred tax liabilities increased by $0.4 million due to the temporary differences between the accounting and tax carrying values of capitalized costs to obtain or fulfill a contract created as a result of the adoption of ASC 606. In addition, the increase in deferred revenue generated additional deferred tax assets. As we fully reserve our deferred tax assets in the jurisdictions impacted by the increase in deferred revenue, this impact was offset by a corresponding increase to our valuation allowance. Refer to Note 2, Revenue from Contracts with Customers, for additional information including further discussion on the impact of the adoption of ASC 606 and changes in accounting policies relating to revenue recognition and accounting for costs to obtain or fulfill a customer contract. Accounting Pronouncements Not Yet Effective In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . The ASU requires companies to recognize on the balance sheet the assets and liabilities for the rights and obligations created by leased assets. The ASU will be effective for us in the first quarter of 2019, with early adoption permitted. We are currently evaluating the impact that the adoption of this ASU will have on our consolidated financial statements. Although we have not finalized our process of evaluating the impact of adoption of the ASU on our consolidated financial statements, we expect there will be a material increase to assets and liabilities related to the recognition of new right-of-use assets and lease liabilities on our balance sheet for leases currently classified as operating leases. |
Description of Business, Basi20
Description of Business, Basis of Presentation and Consolidation and Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | As a result of applying the modified retrospective method to adopt ASC 606, the following adjustments were made to the consolidated balance sheet as of January 1, 2018: As Reported Adjustments Adjusted under ASC 606 December 31, 2017 Term and Perpetual License Professional Services Other Costs to Obtain or Fulfill a Contract January 1, 2018 (in thousands) Cash and cash equivalents $ 51,562 $ — $ — $ — $ — $ 51,562 Short-term investments 39,178 — — — — 39,178 Accounts receivable, net 73,661 — — — — 73,661 Deferred contract acquisition and fulfillment costs, current portion — — — — 7,844 7,844 Prepaid expenses and other current assets 8,877 — 30 — — 8,907 Long-term investments 1,102 — — — — 1,102 Property and equipment, net 8,589 — — — — 8,589 Goodwill 83,164 — — — — 83,164 Intangible assets, net 16,640 — — — — 16,640 Deferred contract acquisition and fulfillment costs, non-current portion — — — — 19,321 19,321 Other assets 1,363 — — — — 1,363 Total assets $ 284,136 $ — $ 30 $ — $ 27,165 $ 311,331 Accounts payable $ 2,240 $ — $ — $ — $ — $ 2,240 Accrued expenses 29,728 — — — — 29,728 Deferred revenue, current portion 155,811 (10,912 ) (1,523 ) (1,356 ) — 142,020 Other current liabilities 1,706 — — — — 1,706 Deferred revenue, non-current portion 68,689 17,647 (2,624 ) (339 ) — 83,373 Other long-term liabilities 1,809 — — — 429 2,238 Total liabilities 259,983 6,735 (4,147 ) (1,695 ) 429 261,305 Common stock 441 — — — — 441 Treasury stock (4,764 ) — — — — (4,764 ) Additional paid-in-capital 463,428 — — — — 463,428 Accumulated other comprehensive loss (39 ) — — — — (39 ) Accumulated deficit (434,913 ) (6,735 ) 4,177 1,695 26,736 (409,040 ) Total stockholders’ equity 24,153 (6,735 ) 4,177 1,695 26,736 50,026 Total liabilities and stockholders’ equity $ 284,136 $ — $ 30 $ — $ 27,165 $ 311,331 Three Months Ended March 31, 2018 Statement of Operations As Reported under ASC 606 Proforma as if ASC 605 was in effect (in thousands, except share and per share data) Revenue: Products $ 35,279 $ 37,766 Maintenance and support 10,753 11,682 Professional services 8,483 8,753 Total revenue 54,515 58,201 Cost of revenue: Products 8,436 8,464 Maintenance and support 1,849 1,849 Professional services 6,309 6,303 Total cost of revenue 16,594 16,616 Total gross profit 37,921 41,585 Operating expenses: Research and development 16,722 16,722 Sales and marketing 29,052 30,743 General and administrative 8,732 8,732 Total operating expenses 54,506 56,197 Loss from operations (16,585 ) (14,612 ) Other income (expense), net: Interest income (expense), net 241 241 Other income (expense), net 78 78 Loss before income taxes (16,266 ) (14,293 ) Provision for income taxes 95 95 Net loss $ (16,361 ) $ (14,388 ) Net loss per share, basic and diluted $ (0.36 ) $ (0.32 ) Weighted-average common shares outstanding, basic and diluted 45,210,250 45,210,250 The following summarizes the significant changes on the consolidated statement of operations for the three months ended March 31, 2018 as a result of the adoption of ASC 606 on January 1, 2018 compared to if we had continued to recognize revenue under ASC 605: • Products revenue decreased $2.5 million under ASC 606 primarily due to perpetual licenses revenue which are dependent on the continued delivery of content subscriptions and the change in the allocation of contract consideration to a relative fair value method under ASC 606 from residual method under ASC 605. As a result of the allocation change, more contract consideration is allocated to license revenue under ASC 606. Given the utility of certain of our perpetual license products are dependent on the continued delivery of content subscriptions, the content subscription renewal option results in a material right with respect to the perpetual license. As a result, revenue allocated to the perpetual license is recognized ratably over the customer's estimated economic life of 5 years rather than over the contractual period of maintenance and support, typically one to three years. • Maintenance and support revenue decreased $0.9 million under ASC 606 primarily due to the change in the allocation of contract consideration to the relative fair value method under ASC 606 from the residual method under ASC 605. As a result of the allocation change, more contract consideration is allocated to license revenue under ASC 606. • Professional services revenue decreased $0.3 million under ASC 606. Under ASC 606, the professional services represent distinct performance obligations and therefore are recognized as such services are performed. Under ASC 605, professional services sold together with term or perpetual licenses were recognized ratably over the contractual period of maintenance and support. • Sales and marketing expense decreased $1.7 million under ASC 606 primarily due to the capitalization of commissions considered direct and incremental costs to obtain a contract in the three months ended March 31, 2018 partially offset by amortization of capitalized commissions recorded as part of the cumulative effect adjustment upon adoption of ASC 606. Three Months Ended March 31, 2018 Statement of Cash Flows As Reported under ASC 606 Proforma as if ASC 605 was in effect (in thousands) Net loss $ (16,361 ) $ (14,388 ) Adjustments to reconcile net loss to net cash provided by operating activities 8,875 8,875 Changes in operating assets and liabilities: Accounts receivable 34,722 34,722 Deferred contract acquisition and fulfillment costs (1,713 ) — Prepaid expenses and other assets (3,190 ) (2,936 ) Accounts payable 3,219 3,219 Accrued expenses (11,317 ) (11,317 ) Deferred revenue (6,495 ) (10,435 ) Other liabilities (444 ) (444 ) Net cash provided by operating activities 7,296 7,296 The following tables summarize the impact as of and for the three months ended March 31, 2018. As of March 31, 2018 Balance Sheet As Reported under ASC 606 Proforma as if ASC 605 was in effect (in thousands) Cash and cash equivalents $ 99,646 $ 99,646 Short-term investments 29,630 29,630 Accounts receivable, net 38,718 38,718 Deferred contract acquisition and fulfillment costs, current portion 8,583 — Prepaid expenses and other current assets 12,232 11,949 Long-term investments 1,096 1,096 Property and equipment, net 9,238 9,238 Goodwill 83,164 83,164 Intangible assets, net 16,316 16,316 Deferred contract acquisition and fulfillment costs, non-current portion 20,295 — Other assets 1,552 1,552 Total assets $ 320,470 $ 291,309 Accounts payable $ 5,669 $ 5,669 Accrued expenses 18,372 18,372 Deferred revenue, current portion 140,448 152,336 Other current liabilities 1,702 1,702 Deferred revenue, non-current portion 78,450 61,730 Other long-term liabilities 1,907 1,478 Total liabilities 246,548 241,287 Common stock 462 462 Treasury stock (4,764 ) (4,764 ) Additional paid-in-capital 503,669 503,669 Accumulated other comprehensive loss (44 ) (44 ) Accumulated deficit (425,401 ) (449,301 ) Total stockholders’ equity 73,922 50,022 Total liabilities and stockholders’ equity $ 320,470 $ 291,309 |
Revenue from Contracts with C21
Revenue from Contracts with Customers (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table summarizes revenue from contracts with customers for the three months ended March 31, 2018 (in thousands): Subscription revenue $ 28,710 Term and perpetual software licenses 5,619 Maintenance and support 10,753 Professional services 8,483 Other 950 Total revenue $ 54,515 The following table summarizes the revenue by region based on the shipping address of customers who have contracted to use our product or service for the three months ended March 31, 2018 (in thousands): United States $ 44,210 All other 10,305 Total revenue $ 54,515 |
Capitalized Contract Cost | The following table summarizes the activity of the deferred contract acquisition and fulfillment costs: Three Months Ended March 31, 2018 (in thousands) Beginning balance $ 27,165 Capitalization of contract acquisition and fulfillment costs 3,733 Amortization of deferred contract acquisition and fulfillment costs (2,020 ) Ending balance $ 28,878 |
Remaining Performance Obligation | The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied or partially unsatisfied as of March 31, 2018. The estimated revenues do not include unexercised contract renewals. Remainder of 2018 2019 2020 and thereafter (in thousands) Subscription revenue $ 67,921 $ 36,817 $ 18,468 Software licenses 11,665 12,344 21,030 Maintenance and support 25,398 11,369 4,348 |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | As a result of applying the modified retrospective method to adopt ASC 606, the following adjustments were made to the consolidated balance sheet as of January 1, 2018: As Reported Adjustments Adjusted under ASC 606 December 31, 2017 Term and Perpetual License Professional Services Other Costs to Obtain or Fulfill a Contract January 1, 2018 (in thousands) Cash and cash equivalents $ 51,562 $ — $ — $ — $ — $ 51,562 Short-term investments 39,178 — — — — 39,178 Accounts receivable, net 73,661 — — — — 73,661 Deferred contract acquisition and fulfillment costs, current portion — — — — 7,844 7,844 Prepaid expenses and other current assets 8,877 — 30 — — 8,907 Long-term investments 1,102 — — — — 1,102 Property and equipment, net 8,589 — — — — 8,589 Goodwill 83,164 — — — — 83,164 Intangible assets, net 16,640 — — — — 16,640 Deferred contract acquisition and fulfillment costs, non-current portion — — — — 19,321 19,321 Other assets 1,363 — — — — 1,363 Total assets $ 284,136 $ — $ 30 $ — $ 27,165 $ 311,331 Accounts payable $ 2,240 $ — $ — $ — $ — $ 2,240 Accrued expenses 29,728 — — — — 29,728 Deferred revenue, current portion 155,811 (10,912 ) (1,523 ) (1,356 ) — 142,020 Other current liabilities 1,706 — — — — 1,706 Deferred revenue, non-current portion 68,689 17,647 (2,624 ) (339 ) — 83,373 Other long-term liabilities 1,809 — — — 429 2,238 Total liabilities 259,983 6,735 (4,147 ) (1,695 ) 429 261,305 Common stock 441 — — — — 441 Treasury stock (4,764 ) — — — — (4,764 ) Additional paid-in-capital 463,428 — — — — 463,428 Accumulated other comprehensive loss (39 ) — — — — (39 ) Accumulated deficit (434,913 ) (6,735 ) 4,177 1,695 26,736 (409,040 ) Total stockholders’ equity 24,153 (6,735 ) 4,177 1,695 26,736 50,026 Total liabilities and stockholders’ equity $ 284,136 $ — $ 30 $ — $ 27,165 $ 311,331 Three Months Ended March 31, 2018 Statement of Operations As Reported under ASC 606 Proforma as if ASC 605 was in effect (in thousands, except share and per share data) Revenue: Products $ 35,279 $ 37,766 Maintenance and support 10,753 11,682 Professional services 8,483 8,753 Total revenue 54,515 58,201 Cost of revenue: Products 8,436 8,464 Maintenance and support 1,849 1,849 Professional services 6,309 6,303 Total cost of revenue 16,594 16,616 Total gross profit 37,921 41,585 Operating expenses: Research and development 16,722 16,722 Sales and marketing 29,052 30,743 General and administrative 8,732 8,732 Total operating expenses 54,506 56,197 Loss from operations (16,585 ) (14,612 ) Other income (expense), net: Interest income (expense), net 241 241 Other income (expense), net 78 78 Loss before income taxes (16,266 ) (14,293 ) Provision for income taxes 95 95 Net loss $ (16,361 ) $ (14,388 ) Net loss per share, basic and diluted $ (0.36 ) $ (0.32 ) Weighted-average common shares outstanding, basic and diluted 45,210,250 45,210,250 The following summarizes the significant changes on the consolidated statement of operations for the three months ended March 31, 2018 as a result of the adoption of ASC 606 on January 1, 2018 compared to if we had continued to recognize revenue under ASC 605: • Products revenue decreased $2.5 million under ASC 606 primarily due to perpetual licenses revenue which are dependent on the continued delivery of content subscriptions and the change in the allocation of contract consideration to a relative fair value method under ASC 606 from residual method under ASC 605. As a result of the allocation change, more contract consideration is allocated to license revenue under ASC 606. Given the utility of certain of our perpetual license products are dependent on the continued delivery of content subscriptions, the content subscription renewal option results in a material right with respect to the perpetual license. As a result, revenue allocated to the perpetual license is recognized ratably over the customer's estimated economic life of 5 years rather than over the contractual period of maintenance and support, typically one to three years. • Maintenance and support revenue decreased $0.9 million under ASC 606 primarily due to the change in the allocation of contract consideration to the relative fair value method under ASC 606 from the residual method under ASC 605. As a result of the allocation change, more contract consideration is allocated to license revenue under ASC 606. • Professional services revenue decreased $0.3 million under ASC 606. Under ASC 606, the professional services represent distinct performance obligations and therefore are recognized as such services are performed. Under ASC 605, professional services sold together with term or perpetual licenses were recognized ratably over the contractual period of maintenance and support. • Sales and marketing expense decreased $1.7 million under ASC 606 primarily due to the capitalization of commissions considered direct and incremental costs to obtain a contract in the three months ended March 31, 2018 partially offset by amortization of capitalized commissions recorded as part of the cumulative effect adjustment upon adoption of ASC 606. Three Months Ended March 31, 2018 Statement of Cash Flows As Reported under ASC 606 Proforma as if ASC 605 was in effect (in thousands) Net loss $ (16,361 ) $ (14,388 ) Adjustments to reconcile net loss to net cash provided by operating activities 8,875 8,875 Changes in operating assets and liabilities: Accounts receivable 34,722 34,722 Deferred contract acquisition and fulfillment costs (1,713 ) — Prepaid expenses and other assets (3,190 ) (2,936 ) Accounts payable 3,219 3,219 Accrued expenses (11,317 ) (11,317 ) Deferred revenue (6,495 ) (10,435 ) Other liabilities (444 ) (444 ) Net cash provided by operating activities 7,296 7,296 The following tables summarize the impact as of and for the three months ended March 31, 2018. As of March 31, 2018 Balance Sheet As Reported under ASC 606 Proforma as if ASC 605 was in effect (in thousands) Cash and cash equivalents $ 99,646 $ 99,646 Short-term investments 29,630 29,630 Accounts receivable, net 38,718 38,718 Deferred contract acquisition and fulfillment costs, current portion 8,583 — Prepaid expenses and other current assets 12,232 11,949 Long-term investments 1,096 1,096 Property and equipment, net 9,238 9,238 Goodwill 83,164 83,164 Intangible assets, net 16,316 16,316 Deferred contract acquisition and fulfillment costs, non-current portion 20,295 — Other assets 1,552 1,552 Total assets $ 320,470 $ 291,309 Accounts payable $ 5,669 $ 5,669 Accrued expenses 18,372 18,372 Deferred revenue, current portion 140,448 152,336 Other current liabilities 1,702 1,702 Deferred revenue, non-current portion 78,450 61,730 Other long-term liabilities 1,907 1,478 Total liabilities 246,548 241,287 Common stock 462 462 Treasury stock (4,764 ) (4,764 ) Additional paid-in-capital 503,669 503,669 Accumulated other comprehensive loss (44 ) (44 ) Accumulated deficit (425,401 ) (449,301 ) Total stockholders’ equity 73,922 50,022 Total liabilities and stockholders’ equity $ 320,470 $ 291,309 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Assets Measured at Fair Value on Recurring Basis | The following table presents our financial assets and liabilities measured and recorded at fair value on a recurring basis using the above input categories: As of March 31, 2018 Level 1 Level 2 Level 3 Total (in thousands) Description: Assets: Money market funds $ 7,368 $ — $ — $ 7,368 U.S. government agencies 9,378 — — 9,378 Commercial paper — 12,657 — 12,657 Corporate bonds — 11,137 — 11,137 Total assets $ 16,746 $ 23,794 $ — $ 40,540 As of December 31, 2017 Level 1 Level 2 Level 3 Total (in thousands) Description: Assets: Money market funds $ 95 $ — $ — $ 95 U.S. government agencies 11,869 — — 11,869 Commercial paper — 12,942 — 12,942 Corporate bonds — 12,964 — 12,964 Asset-backed securities — 2,505 — 2,505 Total assets $ 11,964 $ 28,411 $ — $ 40,375 |
Schedule of Available-for-sale Securities Reconciliation | Our investments, which are all classified as available-for-sale, consisted of the following: As of March 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) Description: U.S. government agencies $ 9,385 $ — $ (7 ) $ 9,378 Commercial paper 10,211 — — 10,211 Corporate bonds 11,174 — (37 ) 11,137 Total assets $ 30,770 $ — $ (44 ) $ 30,726 Our available-for-sale investments as of March 31, 2018 includes $2.4 million of commercial paper investments which are classified as cash and cash equivalents as the original maturity was less than three months. As of December 31, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) Description: U.S. government agencies $ 11,880 $ — $ (11 ) $ 11,869 Commercial paper 12,942 — — 12,942 Corporate bonds 12,991 — (27 ) 12,964 Asset-backed securities 2,506 — (1 ) 2,505 Total assets $ 40,319 $ — $ (39 ) $ 40,280 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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 (in thousands) Computer equipment and software $ 18,002 $ 16,205 Furniture and fixtures 3,965 4,034 Leasehold improvements 9,374 9,079 Total 31,341 29,318 Less accumulated depreciation (22,103 ) (20,729 ) Property and equipment, net $ 9,238 $ 8,589 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Identifiable Intangible Assets | The following table presents details of our intangible assets, which include acquired identifiable intangible assets and capitalized internal-use software costs: As of March 31, 2018 As of December 31, 2017 Weighted- Average Life (years) Gross Carrying Amount Accumulated Amortization Net Book Value Gross Carrying Amount Accumulated Amortization Net Book Value (in thousands) Intangible assets subject to amortization: Developed technology 5.7 $ 20,611 $ (6,664 ) $ 13,947 $ 20,611 $ (5,756 ) $ 14,855 Customer relationships 6.7 1,000 (389 ) 611 1,000 (351 ) 649 Trade names 6.1 519 (512 ) 7 519 (510 ) 9 Non-compete agreements 2.0 40 (40 ) — 40 (40 ) — Total acquired intangible assets 22,170 (7,605 ) 14,565 22,170 (6,657 ) 15,513 Internal-use software 1,855 (104 ) 1,751 1,162 (35 ) 1,127 Total intangible assets $ 24,025 $ (7,709 ) $ 16,316 $ 23,332 $ (6,692 ) $ 16,640 |
Schedule of Estimated Amortization Expense | Estimated future amortization expense of the acquired identifiable intangible assets and completed capitalized internal-use software costs as of March 31, 2018 is as follows (in thousands): 2018 (for the remaining nine months) $ 3,074 2019 4,081 2020 4,023 2021 3,226 2022 1,095 2023 and thereafter — Total $ 15,499 |
Stock-Based Compensation Expe25
Stock-Based Compensation Expense (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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, 2018 2017 (in thousands) Stock-based compensation expense: Cost of revenue $ 374 $ 202 Research and development 2,566 1,513 Sales and marketing 1,563 1,403 General and administrative 1,722 1,161 Total stock-based compensation expense $ 6,225 $ 4,279 |
Summary of Restricted Stock and Restricted Stock Unit Activity | Restricted stock and restricted stock unit activity during the three months ended March 31, 2018 was as follows: Restricted Stock Restricted Stock Units Shares Weighted-Average Grant Date Fair Value Shares Weighted-Average Unvested balance as of December 31, 2017 210,083 $ 18.00 1,988,509 $ 14.77 Granted — — 1,758,777 23.71 Vested (47,109 ) 18.82 (155,431 ) 13.57 Forfeited — — (84,682 ) 18.34 Unvested balance as of March 31, 2018 162,974 $ 17.76 3,507,173 $ 19.22 |
Summary of Stock Option Activity | Stock option activity during the three months ended March 31, 2018 was as follows: Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (in years) Aggregate Intrinsic Value (in thousands) Outstanding as of December 31, 2017 4,684,954 $ 9.68 Granted 97,850 24.14 Exercised (388,786 ) 5.04 $ 7,345 Forfeited/cancelled (43,795 ) 16.18 Outstanding as of March 31, 2018 4,350,223 $ 10.35 7.0 $ 66,227 Vested and exercisable as of March 31, 2018 2,629,325 $ 7.99 6.0 $ 46,236 |
Net Loss per Share (Tables)
Net Loss per Share (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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, 2018 and 2017 : Three Months Ended March 31, 2018 2017 (in thousands, except share and per share data) Numerator: Net loss $ (16,361 ) $ (10,545 ) Denominator: Weighted-average common shares outstanding, basic and diluted 45,210,250 42,016,831 Net loss per share attributable to common stockholders, basic and diluted $ (0.36 ) $ (0.25 ) |
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, 2018 2017 Options to purchase common stock 4,350,223 5,501,020 Unvested restricted stock 162,974 505,703 Unvested restricted stock units 3,507,173 1,954,651 Shares to be issued under ESPP 9,423 10,959 Total 8,029,793 7,972,333 |
Segment Information and Infor27
Segment Information and Information about Geographic Areas (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Net Revenues of Customer by Geographic Area | Net revenues by geographic area presented based upon the location of the customer were as follows: Three Months Ended March 31, 2018 2017 (in thousands) North America $ 46,377 $ 37,993 Other 8,138 7,252 Total $ 54,515 $ 45,245 |
Property and Equipment, Net By Geographic Area | Property and equipment, net by geographic area was as follows: As of March 31, 2018 As of December 31, 2017 (in thousands) United States $ 7,876 $ 7,182 Other 1,362 1,407 Total $ 9,238 $ 8,589 |
Description of Business, Basi28
Description of Business, Basis of Presentation and Consolidation and Significant Accounting Policies - ASC 606 (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Mar. 31, 2017 |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Cash and cash equivalents | $ 99,646 | $ 51,562 | $ 51,562 | $ 50,662 |
Short-term investments | 29,630 | 39,178 | 39,178 | |
Accounts receivable, net | 38,718 | 73,661 | 73,661 | |
Deferred contract acquisition and fulfillment costs, current portion | 8,583 | 7,844 | 0 | |
Prepaid expenses and other current assets | 12,232 | 8,907 | 8,877 | |
Long-term investments | 1,096 | 1,102 | 1,102 | |
Property and equipment, net | 9,238 | 8,589 | 8,589 | |
Goodwill | 83,164 | 83,164 | 83,164 | |
Intangible assets, net | 16,316 | 16,640 | 16,640 | |
Deferred contract acquisition and fulfillment costs, non-current portion | 20,295 | 19,321 | 0 | |
Other assets | 1,552 | 1,363 | 1,363 | |
Total assets | 320,470 | 311,331 | 284,136 | |
Accounts payable | 5,669 | 2,240 | 2,240 | |
Accrued expenses | 18,372 | 29,728 | 29,728 | |
Deferred revenue, current portion | 140,448 | 142,020 | 155,811 | |
Other current liabilities | 1,702 | 1,706 | 1,706 | |
Deferred revenue, non-current portion | 78,450 | 83,373 | 68,689 | |
Other long-term liabilities | 1,907 | 2,238 | 1,809 | |
Total liabilities | 246,548 | 261,305 | 259,983 | |
Common stock | 462 | 441 | 441 | |
Treasury stock | (4,764) | (4,764) | (4,764) | |
Additional paid-in-capital | 503,669 | 463,428 | 463,428 | |
Accumulated other comprehensive loss | (44) | (39) | (39) | |
Accumulated deficit | (425,401) | (409,040) | (434,913) | |
Total stockholders’ equity | 73,922 | 50,026 | 24,153 | |
Total liabilities and stockholders’ equity | 320,470 | 311,331 | 284,136 | |
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Cash and cash equivalents | 99,646 | 51,562 | ||
Short-term investments | 29,630 | 39,178 | ||
Accounts receivable, net | 38,718 | 73,661 | ||
Deferred contract acquisition and fulfillment costs, current portion | 0 | 0 | ||
Prepaid expenses and other current assets | 11,949 | 8,877 | ||
Long-term investments | 1,096 | 1,102 | ||
Property and equipment, net | 9,238 | 8,589 | ||
Goodwill | 83,164 | 83,164 | ||
Intangible assets, net | 16,316 | 16,640 | ||
Deferred contract acquisition and fulfillment costs, non-current portion | 0 | 0 | ||
Other assets | 1,552 | 1,363 | ||
Total assets | 291,309 | 284,136 | ||
Accounts payable | 5,669 | 2,240 | ||
Accrued expenses | 18,372 | 29,728 | ||
Deferred revenue, current portion | 152,336 | 155,811 | ||
Other current liabilities | 1,702 | 1,706 | ||
Deferred revenue, non-current portion | 61,730 | 68,689 | ||
Other long-term liabilities | 1,478 | 1,809 | ||
Total liabilities | 241,287 | 259,983 | ||
Common stock | 462 | 441 | ||
Treasury stock | (4,764) | (4,764) | ||
Additional paid-in-capital | 503,669 | 463,428 | ||
Accumulated other comprehensive loss | (44) | (39) | ||
Accumulated deficit | (449,301) | (434,913) | ||
Total stockholders’ equity | 50,022 | 24,153 | ||
Total liabilities and stockholders’ equity | 291,309 | $ 284,136 | ||
Term And Perpetual License [Member] | Accounting Standards Update 2014-09 [Member] | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Accumulated deficit | 6,700 | |||
Term And Perpetual License [Member] | Accounting Standards Update 2014-09 [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Cash and cash equivalents | 0 | |||
Short-term investments | 0 | |||
Accounts receivable, net | 0 | |||
Deferred contract acquisition and fulfillment costs, current portion | 0 | |||
Prepaid expenses and other current assets | 0 | |||
Long-term investments | 0 | |||
Property and equipment, net | 0 | |||
Goodwill | 0 | |||
Intangible assets, net | 0 | |||
Deferred contract acquisition and fulfillment costs, non-current portion | 0 | |||
Other assets | 0 | |||
Total assets | 0 | |||
Accounts payable | 0 | |||
Accrued expenses | 0 | |||
Deferred revenue, current portion | (10,912) | |||
Other current liabilities | 0 | |||
Deferred revenue, non-current portion | 17,647 | |||
Other long-term liabilities | 0 | |||
Total liabilities | 6,735 | |||
Common stock | 0 | |||
Treasury stock | 0 | |||
Additional paid-in-capital | 0 | |||
Accumulated other comprehensive loss | 0 | |||
Accumulated deficit | (6,735) | |||
Total stockholders’ equity | (6,735) | |||
Total liabilities and stockholders’ equity | 0 | |||
Professional Services [Member] | Accounting Standards Update 2014-09 [Member] | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Accumulated deficit | $ 4,200 | |||
Professional Services [Member] | Accounting Standards Update 2014-09 [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Cash and cash equivalents | 0 | |||
Short-term investments | 0 | |||
Accounts receivable, net | 0 | |||
Deferred contract acquisition and fulfillment costs, current portion | 0 | |||
Prepaid expenses and other current assets | 30 | |||
Long-term investments | 0 | |||
Property and equipment, net | 0 | |||
Goodwill | 0 | |||
Intangible assets, net | 0 | |||
Deferred contract acquisition and fulfillment costs, non-current portion | 0 | |||
Other assets | 0 | |||
Total assets | 30 | |||
Accounts payable | 0 | |||
Accrued expenses | 0 | |||
Deferred revenue, current portion | (1,523) | |||
Other current liabilities | 0 | |||
Deferred revenue, non-current portion | (2,624) | |||
Other long-term liabilities | 0 | |||
Total liabilities | (4,147) | |||
Common stock | 0 | |||
Treasury stock | 0 | |||
Additional paid-in-capital | 0 | |||
Accumulated other comprehensive loss | 0 | |||
Accumulated deficit | 4,177 | |||
Total stockholders’ equity | 4,177 | |||
Total liabilities and stockholders’ equity | 30 | |||
Other [Member] | Accounting Standards Update 2014-09 [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Cash and cash equivalents | 0 | |||
Short-term investments | 0 | |||
Accounts receivable, net | 0 | |||
Deferred contract acquisition and fulfillment costs, current portion | 0 | |||
Prepaid expenses and other current assets | 0 | |||
Long-term investments | 0 | |||
Property and equipment, net | 0 | |||
Goodwill | 0 | |||
Intangible assets, net | 0 | |||
Deferred contract acquisition and fulfillment costs, non-current portion | 0 | |||
Other assets | 0 | |||
Total assets | 0 | |||
Accounts payable | 0 | |||
Accrued expenses | 0 | |||
Deferred revenue, current portion | (1,356) | |||
Other current liabilities | 0 | |||
Deferred revenue, non-current portion | (339) | |||
Other long-term liabilities | 0 | |||
Total liabilities | (1,695) | |||
Common stock | 0 | |||
Treasury stock | 0 | |||
Additional paid-in-capital | 0 | |||
Accumulated other comprehensive loss | 0 | |||
Accumulated deficit | 1,695 | |||
Total stockholders’ equity | 1,695 | |||
Total liabilities and stockholders’ equity | 0 | |||
Costs To Obtain Or Fulfill A Contract [Member] | Accounting Standards Update 2014-09 [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Cash and cash equivalents | 0 | |||
Short-term investments | 0 | |||
Accounts receivable, net | 0 | |||
Deferred contract acquisition and fulfillment costs, current portion | 7,844 | |||
Prepaid expenses and other current assets | 0 | |||
Long-term investments | 0 | |||
Property and equipment, net | 0 | |||
Goodwill | 0 | |||
Intangible assets, net | 0 | |||
Deferred contract acquisition and fulfillment costs, non-current portion | 19,321 | |||
Other assets | 0 | |||
Total assets | 27,165 | |||
Accounts payable | 0 | |||
Accrued expenses | 0 | |||
Deferred revenue, current portion | 0 | |||
Other current liabilities | 0 | |||
Deferred revenue, non-current portion | 0 | |||
Other long-term liabilities | 429 | |||
Total liabilities | 429 | |||
Common stock | 0 | |||
Treasury stock | 0 | |||
Additional paid-in-capital | 0 | |||
Accumulated other comprehensive loss | 0 | |||
Accumulated deficit | 26,736 | |||
Total stockholders’ equity | 26,736 | |||
Total liabilities and stockholders’ equity | $ 27,165 |
Description of Business, Basi29
Description of Business, Basis of Presentation and Consolidation and Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Accumulated deficit | $ (425,401) | $ (409,040) | $ (434,913) |
Accounting Standards Update 2014-09 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Deferred contract acquisition and fulfillment costs | 27,200 | ||
Deferred tax liabilities | $ 400 | ||
Term And Perpetual License [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Economic life | 5 years | ||
Term And Perpetual License [Member] | Accounting Standards Update 2014-09 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Accumulated deficit | $ 6,700 | ||
Deferred revenue | 6,700 | ||
Professional Services [Member] | Accounting Standards Update 2014-09 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Accumulated deficit | 4,200 | ||
Deferred revenue | $ 4,200 |
Revenue from Contracts with C30
Revenue from Contracts with Customers - Disaggregation of Revenue (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Disaggregation of Revenue [Line Items] | |
Total revenue | $ 54,515 |
Subscription Revenue [Member] | |
Disaggregation of Revenue [Line Items] | |
Total revenue | 28,710 |
Term And Perpetual License [Member] | |
Disaggregation of Revenue [Line Items] | |
Total revenue | 5,619 |
Maintenance and Support [Member] | |
Disaggregation of Revenue [Line Items] | |
Total revenue | 10,753 |
Professional Services [Member] | |
Disaggregation of Revenue [Line Items] | |
Total revenue | 8,483 |
Other [Member] | |
Disaggregation of Revenue [Line Items] | |
Total revenue | 950 |
United States [Member] | |
Disaggregation of Revenue [Line Items] | |
Total revenue | 44,210 |
All other [Member] | |
Disaggregation of Revenue [Line Items] | |
Total revenue | $ 10,305 |
Revenue from Contracts with C31
Revenue from Contracts with Customers - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Jan. 01, 2018 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Revenue recognized | $ 46,500 | ||
Contract assets | 500 | $ 300 | |
Reported assets | 29,200 | ||
Deferred acquisition costs | 28,900 | ||
Reported liabilities | 5,300 | ||
Decrease in product revenue | (35,279) | $ (25,942) | |
Decrease in maintenance and support | (10,753) | (10,802) | |
Decrease in professional services | (8,483) | (8,501) | |
Decrease in sales and marketing expense | (29,052) | $ (24,810) | |
Accounting Standards Update 2014-09 [Member] | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Decrease in product revenue | 2,500 | ||
Decrease in maintenance and support | 900 | ||
Decrease in professional services | 300 | ||
Decrease in sales and marketing expense | 1,700 | ||
Professional Services [Member] | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Remaining performance obligation | $ 13,700 | ||
Term And Perpetual License [Member] | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Economic life | 5 years | ||
Minimum [Member] | Maintenance and Support [Member] | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Contractual period | 1 year | ||
Maximum [Member] | Maintenance and Support [Member] | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Contractual period | 3 years |
Revenue from Contracts with C32
Revenue from Contracts with Customers - Capitalized Costs (Details) - Contract Acquisition And Fulfillment Costs [Member] $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Capitalized Contract Cost [Roll Forward] | |
Beginning balance | $ 27,165 |
Capitalization of contract acquisition and fulfillment costs | 3,733 |
Amortization of deferred contract acquisition and fulfillment costs | (2,020) |
Ending balance | $ 28,878 |
Revenue from Contracts with C33
Revenue from Contracts with Customers - Performance Obligation (Details) $ in Thousands | Mar. 31, 2018USD ($) |
Subscription Revenue [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 67,921 |
Subscription Revenue [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | 36,817 |
Subscription Revenue [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | 18,468 |
Software Licenses [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | 11,665 |
Software Licenses [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | 12,344 |
Software Licenses [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | 21,030 |
Maintenance and Support [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | 25,398 |
Maintenance and Support [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | 11,369 |
Maintenance and Support [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 4,348 |
Revenue from Contracts with C34
Revenue from Contracts with Customers - Balance Sheet (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Mar. 31, 2017 |
Assets | ||||
Cash and cash equivalents | $ 99,646 | $ 51,562 | $ 51,562 | $ 50,662 |
Short-term investments | 29,630 | 39,178 | 39,178 | |
Accounts receivable, net | 38,718 | 73,661 | 73,661 | |
Deferred contract acquisition and fulfillment costs, current portion | 8,583 | 7,844 | 0 | |
Prepaid expenses and other current assets | 12,232 | 8,907 | 8,877 | |
Long-term investments | 1,096 | 1,102 | 1,102 | |
Property and equipment, net | 9,238 | 8,589 | 8,589 | |
Goodwill | 83,164 | 83,164 | 83,164 | |
Intangible assets, net | 16,316 | 16,640 | 16,640 | |
Deferred contract acquisition and fulfillment costs, non-current portion | 20,295 | 19,321 | 0 | |
Other assets | 1,552 | 1,363 | 1,363 | |
Total assets | 320,470 | 311,331 | 284,136 | |
Liabilities | ||||
Accounts payable | 5,669 | 2,240 | 2,240 | |
Accrued expenses | 18,372 | 29,728 | 29,728 | |
Deferred revenue, current portion | 140,448 | 142,020 | 155,811 | |
Other current liabilities | 1,702 | 1,706 | 1,706 | |
Deferred revenue, non-current portion | 78,450 | 83,373 | 68,689 | |
Other long-term liabilities | 1,907 | 2,238 | 1,809 | |
Total liabilities | 246,548 | 261,305 | 259,983 | |
Common stock | 462 | 441 | 441 | |
Treasury stock | (4,764) | (4,764) | (4,764) | |
Additional paid-in-capital | 503,669 | 463,428 | 463,428 | |
Accumulated other comprehensive loss | (44) | (39) | (39) | |
Accumulated deficit | (425,401) | (409,040) | (434,913) | |
Total stockholders’ equity | 73,922 | 50,026 | 24,153 | |
Total liabilities and stockholders’ equity | 320,470 | $ 311,331 | 284,136 | |
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | ||||
Assets | ||||
Cash and cash equivalents | 99,646 | 51,562 | ||
Short-term investments | 29,630 | 39,178 | ||
Accounts receivable, net | 38,718 | 73,661 | ||
Deferred contract acquisition and fulfillment costs, current portion | 0 | 0 | ||
Prepaid expenses and other current assets | 11,949 | 8,877 | ||
Long-term investments | 1,096 | 1,102 | ||
Property and equipment, net | 9,238 | 8,589 | ||
Goodwill | 83,164 | 83,164 | ||
Intangible assets, net | 16,316 | 16,640 | ||
Deferred contract acquisition and fulfillment costs, non-current portion | 0 | 0 | ||
Other assets | 1,552 | 1,363 | ||
Total assets | 291,309 | 284,136 | ||
Liabilities | ||||
Accounts payable | 5,669 | 2,240 | ||
Accrued expenses | 18,372 | 29,728 | ||
Deferred revenue, current portion | 152,336 | 155,811 | ||
Other current liabilities | 1,702 | 1,706 | ||
Deferred revenue, non-current portion | 61,730 | 68,689 | ||
Other long-term liabilities | 1,478 | 1,809 | ||
Total liabilities | 241,287 | 259,983 | ||
Common stock | 462 | 441 | ||
Treasury stock | (4,764) | (4,764) | ||
Additional paid-in-capital | 503,669 | 463,428 | ||
Accumulated other comprehensive loss | (44) | (39) | ||
Accumulated deficit | (449,301) | (434,913) | ||
Total stockholders’ equity | 50,022 | 24,153 | ||
Total liabilities and stockholders’ equity | $ 291,309 | $ 284,136 |
Revenue from Contracts with C35
Revenue from Contracts with Customers - Statement of Operations (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Revenue: | ||
Products | $ 35,279 | $ 25,942 |
Maintenance and support | 10,753 | 10,802 |
Professional services | 8,483 | 8,501 |
Total revenue | 54,515 | 45,245 |
Cost of revenue: | ||
Products | 8,436 | 4,710 |
Maintenance and support | 1,849 | 1,878 |
Professional services | 6,309 | 5,676 |
Total cost of revenue | 16,594 | 12,264 |
Total gross profit | 37,921 | 32,981 |
Operating expenses: | ||
Research and development | 16,722 | 11,393 |
Sales and marketing | 29,052 | 24,810 |
General and administrative | 8,732 | 7,248 |
Total operating expenses | 54,506 | 43,451 |
Loss from operations | (16,585) | (10,470) |
Interest income (expense), net | 241 | 169 |
Other income (expense), net | 78 | (115) |
Loss before income taxes | (16,266) | (10,416) |
Provision for income taxes | 95 | 129 |
Net loss | $ (16,361) | $ (10,545) |
Net loss per share, basic and diluted (in dollars per share) | $ (0.36) | $ (0.25) |
Weighted-average common shares outstanding, basic and diluted | 45,210,250 | 42,016,831 |
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | ||
Revenue: | ||
Products | $ 37,766 | |
Maintenance and support | 11,682 | |
Professional services | 8,753 | |
Total revenue | 58,201 | |
Cost of revenue: | ||
Products | 8,464 | |
Maintenance and support | 1,849 | |
Professional services | 6,303 | |
Total cost of revenue | 16,616 | |
Total gross profit | 41,585 | |
Operating expenses: | ||
Research and development | 16,722 | |
Sales and marketing | 30,743 | |
General and administrative | 8,732 | |
Total operating expenses | 56,197 | |
Loss from operations | (14,612) | |
Interest income (expense), net | 241 | |
Other income (expense), net | 78 | |
Loss before income taxes | (14,293) | |
Provision for income taxes | 95 | |
Net loss | $ (14,388) | |
Net loss per share, basic and diluted (in dollars per share) | $ (0.32) | |
Weighted-average common shares outstanding, basic and diluted | 45,210,250 |
Revenue from Contracts with C36
Revenue from Contracts with Customers - Statement of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Net loss | $ (16,361) | $ (10,545) |
Adjustments to reconcile net loss to net cash provided by operating activities | 8,875 | |
Accounts receivable | 34,722 | 15,182 |
Deferred contract acquisition and fulfillment costs | (1,713) | 0 |
Prepaid expenses and other assets | (3,190) | 1,466 |
Accounts payable | 3,219 | (244) |
Accrued expenses | (11,317) | (7,216) |
Deferred revenue | (6,495) | (1,416) |
Other liabilities | (444) | (266) |
Net cash provided by operating activities | 7,296 | $ 3,321 |
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Net loss | (14,388) | |
Adjustments to reconcile net loss to net cash provided by operating activities | 8,875 | |
Accounts receivable | 34,722 | |
Deferred contract acquisition and fulfillment costs | 0 | |
Prepaid expenses and other assets | (2,936) | |
Accounts payable | 3,219 | |
Accrued expenses | (11,317) | |
Deferred revenue | (10,435) | |
Other liabilities | (444) | |
Net cash provided by operating activities | $ 7,296 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | $ 30,726 | $ 40,280 |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 40,540 | 40,375 |
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 16,746 | 11,964 |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 23,794 | 28,411 |
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 0 | 0 |
Money Market Funds [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 7,368 | 95 |
Money Market Funds [Member] | Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 7,368 | 95 |
Money Market Funds [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 0 | 0 |
Money Market Funds [Member] | Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 0 | 0 |
U.S. Government Agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 9,378 | 11,869 |
U.S. Government Agencies [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 9,378 | 11,869 |
U.S. Government Agencies [Member] | Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 9,378 | 11,869 |
U.S. Government Agencies [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
U.S. Government Agencies [Member] | Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 10,211 | 12,942 |
Commercial Paper [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 12,657 | 12,942 |
Commercial Paper [Member] | Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Commercial Paper [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 12,657 | 12,942 |
Commercial Paper [Member] | Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Corporate Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 11,137 | 12,964 |
Corporate Bonds [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 11,137 | 12,964 |
Corporate Bonds [Member] | Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Corporate Bonds [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 11,137 | 12,964 |
Corporate Bonds [Member] | Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | $ 0 | 0 |
Asset-backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 2,505 | |
Asset-backed Securities [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 2,505 | |
Asset-backed Securities [Member] | Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | |
Asset-backed Securities [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 2,505 | |
Asset-backed Securities [Member] | Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | $ 0 |
Fair Value Measurements - Avail
Fair Value Measurements - Available for Sale Investments at Fair Value (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 30,770 | $ 40,319 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (44) | (39) |
Fair Value | $ 30,726 | $ 40,280 |
Remaining maturity | 3 months | 2 years |
U.S. Government Agencies [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 9,385 | $ 11,880 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (7) | (11) |
Fair Value | 9,378 | 11,869 |
Commercial Paper [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 10,211 | 12,942 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 10,211 | 12,942 |
Corporate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 11,174 | 12,991 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (37) | (27) |
Fair Value | 11,137 | 12,964 |
Asset-backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 2,506 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (1) | |
Fair Value | $ 2,505 | |
Available-for-sale Securities [Member] | Commercial Paper [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cash and cash equivalents | $ 2,400 |
Property and Equipment - Summar
Property and Equipment - Summary of Property and Equipment (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 31,341 | $ 29,318 | |
Less accumulated depreciation | (22,103) | (20,729) | |
Net property and equipment | 9,238 | $ 8,589 | 8,589 |
Computer Equipment and Software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 18,002 | 16,205 | |
Furniture and Fixtures [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 3,965 | 4,034 | |
Leasehold Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 9,374 | $ 9,079 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 1.4 | $ 1.1 |
Goodwill and Intangible Asset41
Goodwill and Intangible Assets - Narrative (Detail) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Jan. 01, 2018 | Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Goodwill | $ 83,164 | $ 83,164 | $ 83,164 | |
Amortization expense | 1,000 | $ 500 | ||
Capitalized internal-use software costs for works in process | $ 800 |
Goodwill and Intangible Asset42
Goodwill and Intangible Assets - Schedule of Identifiable Intangible Assets (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | |||
Total intangible assets, Gross Carrying Amount | $ 24,025 | $ 23,332 | |
Accumulated Amortization | (7,709) | (6,692) | |
Intangible assets, net | 15,499 | ||
Total intangible assets, Net Book Value | 16,316 | $ 16,640 | 16,640 |
Acquired Intangible Assets, Gross Carrying Amount | 22,170 | 22,170 | |
Acquired Intangible Assets, Accumulated Amortization | 7,605 | 6,657 | |
Acquired Intangible Assets, Net Book Value | $ 14,565 | 15,513 | |
Developed Technology [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets, Weighted-Average Life | 5 years 8 months 12 days | ||
Gross Carrying Amount | $ 20,611 | 20,611 | |
Accumulated Amortization | (6,664) | (5,756) | |
Intangible assets, net | $ 13,947 | 14,855 | |
Customer Relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets, Weighted-Average Life | 6 years 8 months 12 days | ||
Gross Carrying Amount | $ 1,000 | 1,000 | |
Accumulated Amortization | (389) | (351) | |
Intangible assets, net | $ 611 | 649 | |
Trade Names [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets, Weighted-Average Life | 6 years 1 month 6 days | ||
Gross Carrying Amount | $ 519 | 519 | |
Accumulated Amortization | (512) | (510) | |
Intangible assets, net | $ 7 | 9 | |
Non-compete Agreements [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets, Weighted-Average Life | 2 years | ||
Gross Carrying Amount | $ 40 | 40 | |
Accumulated Amortization | (40) | (40) | |
Intangible assets, net | 0 | 0 | |
Internal-use Software [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 1,855 | 1,162 | |
Accumulated Amortization | (104) | (35) | |
Intangible assets, net | $ 1,751 | $ 1,127 |
Goodwill and Intangible Asset43
Goodwill and Intangible Assets - Schedule of Estimated Amortization Expense (Detail) $ in Thousands | Mar. 31, 2018USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2018 (for the remaining three months) | $ 3,074 |
2,019 | 4,081 |
2,020 | 4,023 |
2,021 | 3,226 |
2,022 | 1,095 |
2023 and thereafter | 0 |
Intangible assets, net | $ 15,499 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) $ / shares in Units, $ in Millions | Jan. 30, 2018USD ($)$ / sharesshares |
Class of Stock [Line Items] | |
Shares issued (in shares) | 5,950,000 |
Share price of shares issued (in dollars per share) | $ / shares | $ 22 |
Shares issued for underwriters' option (in shares) | 770,000 |
Proceeds from issuance of stock | $ | $ 30.9 |
Parent [Member] | |
Class of Stock [Line Items] | |
Shares issued (in shares) | 1,500,000 |
Existing Stockholders [Member] | |
Class of Stock [Line Items] | |
Shares issued (in shares) | 4,450,000 |
Stock-Based Compensation Expe45
Stock-Based Compensation Expense - Schedule of Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | $ 6,225 | $ 4,279 |
Cost of Revenue [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | 374 | 202 |
Research and Development [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | 2,566 | 1,513 |
Sales and Marketing [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | 1,563 | 1,403 |
General and Administrative [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | $ 1,722 | $ 1,161 |
Stock-Based Compensation Expe46
Stock-Based Compensation Expense - Additional Information (Detail) - USD ($) | Mar. 15, 2018 | Mar. 15, 2017 | Mar. 31, 2018 | Jan. 30, 2018 | Sep. 18, 2017 | Mar. 16, 2017 | Mar. 16, 2016 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period | 4 years | ||||||
Purchase price of common stock by employees (as a percent) | 85.00% | ||||||
Closing price of shares issued (in dollars per share) | $ 22 | ||||||
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 | $ 65,525,000 | ||||||
Unrecognized compensation expense, recognition period | 3 years 2 months 12 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 3 months 19 days | ||||||
Unrecognized compensation cost, stock options | $ 10,300,000 | ||||||
Stock options vested, fair value | $ 7,000,000 | ||||||
Stock options granted, weighted-average grant date fair value | $ 11.73 | ||||||
Employee Stock [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Common stock issued to employees (in shares) | 123,607 | 138,085 | |||||
Aggregate proceeds from issuance of common stock to employees | $ 1,600,000 | $ 1,500,000 | |||||
Share issued, price per share (in dollars per share) | $ 12.79 | $ 14.78 | $ 12.96 | $ 10.60 | |||
Closing price of shares issued (in dollars per share) | $ 15.05 | $ 17.39 | $ 15.25 | $ 12.47 |
Stock-Based Compensation Expe47
Stock-Based Compensation Expense - Summary of Restricted Stock and Restricted Stock Unit Activity (Detail) | 3 Months Ended |
Mar. 31, 2018$ / sharesshares | |
Restricted Stock [Member] | |
Shares | |
Unvested balance, Beginning balance (in shares) | shares | 210,083 |
Granted (in shares) | shares | 0 |
Vested (in shares) | shares | (47,109) |
Forfeited (in shares) | shares | 0 |
Unvested balance, Ending balance (in shares) | shares | 162,974 |
Weighted-Average Grant Date Fair Value | |
Beginning balance (in dollars per share) | $ / shares | $ 18 |
Granted (in dollars per share) | $ / shares | 0 |
Vested (in dollars per share) | $ / shares | 18.82 |
Forfeited (in dollars per share) | $ / shares | 0 |
Ending Balance (in dollars per share) | $ / shares | $ 17.76 |
Restricted Stock Units (RSUs) [Member] | |
Shares | |
Unvested balance, Beginning balance (in shares) | shares | 1,988,509 |
Granted (in shares) | shares | 1,758,777 |
Vested (in shares) | shares | (155,431) |
Forfeited (in shares) | shares | (84,682) |
Unvested balance, Ending balance (in shares) | shares | 3,507,173 |
Weighted-Average Grant Date Fair Value | |
Beginning balance (in dollars per share) | $ / shares | $ 14.77 |
Granted (in dollars per share) | $ / shares | 23.71 |
Vested (in dollars per share) | $ / shares | 13.57 |
Forfeited (in dollars per share) | $ / shares | 18.34 |
Ending Balance (in dollars per share) | $ / shares | $ 19.22 |
Stock-Based Compensation Expe48
Stock-Based Compensation Expense - Summary of Stock Option Activity (Detail) - Stock Options [Member] $ / shares in Units, $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($)$ / sharesshares | |
Shares | |
Outstanding, Beginning balance (in shares) | shares | 4,684,954 |
Granted (in shares) | shares | 97,850 |
Exercised (in shares) | shares | (388,786) |
Forfeited/canceled (in shares) | shares | (43,795) |
Outstanding, Ending balance (in shares) | shares | 4,350,223 |
Vested and exercisable (in shares) | shares | 2,629,325 |
Weighted Average Exercise Price | |
Outstanding, Beginning balance (in dollars per share) | $ / shares | $ 9.68 |
Granted (in dollars per share) | $ / shares | 24.14 |
Exercised (in dollars per share) | $ / shares | 5.04 |
Forfeited/canceled (in dollars per share) | $ / shares | 16.18 |
Outstanding, Ending balance (in dollars per share) | $ / shares | 10.35 |
Vested and exercisable (in dollars per share) | $ / shares | $ 7.99 |
Weighted Average Remaining Contractual Life (in years) | |
Outstanding | 7 years |
Vested and exercisable | 6 years |
Aggregate Intrinsic Value | |
Exercised (in dollars) | $ | $ 7,345 |
Outstanding (in dollars) | $ | 66,227 |
Vested and exercisable (in dollars) | $ | $ 46,236 |
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, 2018 | Mar. 31, 2017 | |
Earnings Per Share [Abstract] | ||
Net loss | $ (16,361) | $ (10,545) |
Weighted-average common shares outstanding, basic and diluted | 45,210,250 | 42,016,831 |
Net loss per share, basic and diluted (in dollars per share) | $ (0.36) | $ (0.25) |
Net Loss Per Share - Summary 50
Net Loss Per Share - Summary of Antidilutive Securities Excluded From Computation Diluted Weighted Average Shares Outstanding (Detail) - shares | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Schedule Of Calculation Of Numerator And Denominator In Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share amount | 8,029,793 | 7,972,333 |
Unvested 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 | 162,974 | 505,703 |
Unvested Restricted Stock Units [Member] | ||
Schedule Of Calculation Of Numerator And Denominator In Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share amount | 3,507,173 | 1,954,651 |
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 | 9,423 | 10,959 |
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 | 4,350,223 | 5,501,020 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Increase in litigation accrual | $ 0.4 |
Litigation accrual | $ 0.6 |
Segment Information and Infor52
Segment Information and Information about Geographic Areas - Additional Information (Detail) - Segment | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Segment Reporting Information [Line Items] | ||
Number of operating segments | 1 | |
Total Net Revenues[Member] | United States [Member] | ||
Segment Reporting Information [Line Items] | ||
Percentage of net revenues | 95.00% | 94.00% |
Segment Information and Infor53
Segment Information and Information about Geographic Areas - Net Revenues of Customer by Geographic Area (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Entity Wide Portfolio Carrying Amount, Major Customer [Line Items] | ||
Net revenues, Total | $ 54,515 | $ 45,245 |
North America [Member] | ||
Entity Wide Portfolio Carrying Amount, Major Customer [Line Items] | ||
Net revenues, Total | 46,377 | 37,993 |
Other [Member] | ||
Entity Wide Portfolio Carrying Amount, Major Customer [Line Items] | ||
Net revenues, Total | $ 8,138 | $ 7,252 |
Segment Information and Infor54
Segment Information and Information about Geographic Areas - Property and Equipment, Net By Geographic Area (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Property and equipment, net | $ 9,238 | $ 8,589 | $ 8,589 |
United States [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Property and equipment, net | 7,876 | 7,182 | |
Other [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Property and equipment, net | $ 1,362 | $ 1,407 |
Related Party Transactions - Na
Related Party Transactions - Narrative (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($) | |
McAfee LLC [Member] | |
Related Party Transaction [Line Items] | |
Sales and marketing expense related to partner referral fees | $ 0.2 |
Uncategorized Items - rpd-20180
Label | Element | Value |
Restricted Cash | us-gaap_RestrictedCash | $ 0 |
Restricted Cash | us-gaap_RestrictedCash | $ 500,000 |