Rapid7 (RPD) 10-Q 1 Aug 19 2019 Q2 Quarterly report Financial data

Cover Page

Cover Page - shares	6 Months Ended
	Jun. 30, 2019	Jul. 31, 2019
Cover page.
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2019
Document Transition Report	false
Entity File Number	001-37496
Entity Registrant Name	RAPID7, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	35-2423994
Entity Address, Address Line One	120 Causeway Street
Entity Address, City or Town	Boston,
Entity Address, State or Province	MA
Entity Address, Postal Zip Code	02114
City Area Code	617
Local Phone Number	247-1717
Title of 12(b) Security	Common Stock, $0.01 par value per share
Trading Symbol	RPD
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		48,842,220
Entity Central Index Key	0001560327
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2
Amendment Flag	false

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 126,569	$ 99,565
Short-term investments	119,138	159,210
Accounts receivable, net of allowance for doubtful accounts of $1,622 and $1,624 at June 30, 2019 and December 31, 2018, respectively	69,289	74,935
Deferred contract acquisition and fulfillment costs, current portion	13,851	12,321
Prepaid expenses and other current assets	15,416	9,746
Total current assets	344,263	355,777
Long-term investments	18,680	44,892
Property and equipment, net	51,860	17,523
Operating lease right-of-use assets	59,417	0
Deferred contract acquisition and fulfillment costs, non-current portion	29,275	27,634
Goodwill	97,866	88,420
Intangible assets, net	29,726	23,955
Other assets	5,192	1,168
Total assets	636,279	559,369
Current liabilities:
Accounts payable	12,975	7,048
Accrued expenses	33,069	37,376
Operating lease liabilities, current portion	6,057	0
Deferred revenue, current portion	199,048	189,855
Other current liabilities	126	707
Total current liabilities	251,275	234,986
Convertible senior notes, net	179,791	174,688
Operating lease liabilities, non-current portion	71,722	0
Deferred revenue, non-current portion	44,944	58,716
Other long-term liabilities	1,023	3,660
Total liabilities	548,755	472,050
Stockholders’ equity:
Preferred stock, $0.01 par value per share; 10,000,000 shares authorized at June 30, 2019 and December 31, 2018; 0 shares issued at June 30, 2019 and December 31, 2018	0	0
Common stock, $0.01 par value per share; 100,000,000 shares authorized at June 30, 2019 and December 31, 2018; 49,284,448 and 48,087,257 shares issued at June 30, 2019 and December 31, 2018, respectively; 48,797,640 and 47,600,449 shares outstanding at June 30, 2019 and December 31, 2018, respectively	488	476
Treasury stock, at cost, 486,808 shares at June 30, 2019 and December 31, 2018	(4,764)	(4,764)
Additional paid-in-capital	581,127	556,223
Accumulated other comprehensive income (loss)	351	(31)
Accumulated deficit	(489,678)	(464,585)
Total stockholders’ equity	87,524	87,319
Total liabilities and stockholders’ equity	$ 636,279	$ 559,369

Consolidated Balance Sheets (_2

Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Net of allowance for doubtful accounts	$ 1,622	$ 1,624
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	10,000,000	10,000,000
Preferred stock, shares issued (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	100,000,000	100,000,000
Common stock, shares issued (in shares)	49,284,448	48,087,257
Common stock, shares outstanding (in shares)	48,797,640	47,600,449
Treasury stock, shares (in shares)	486,808	486,808

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Revenue:
Total revenue	$ 78,959	$ 58,441	$ 152,144	$ 112,956
Cost of revenue:
Total cost of revenue	22,181	17,393	42,154	33,987
Total gross profit	56,778	41,048	109,990	78,969
Operating expenses:
Research and development	19,626	16,082	37,491	32,804
Sales and marketing	38,172	31,157	73,310	60,209
General and administrative	11,160	8,149	21,113	16,881
Total operating expenses	68,958	55,388	131,914	109,894
Loss from operations	(12,180)	(14,340)	(21,924)	(30,925)
Other income (expense), net:
Interest income	1,582	464	3,313	707
Interest expense	(3,312)	0	(6,541)	(2)
Other income (expense), net	(29)	(326)	(235)	(248)
Loss before income taxes	(13,939)	(14,202)	(25,387)	(30,468)
Provision for (benefit from) income taxes	(519)	131	(294)	226
Net loss	$ (13,420)	$ (14,333)	$ (25,093)	$ (30,694)
Net loss per share, basic and diluted (in dollars per share)	$ (0.28)	$ (0.31)	$ (0.52)	$ (0.67)
Weighted-average common shares outstanding, basic and diluted (in shares)	48,451,562	46,279,947	48,141,474	45,746,513
Product [Member]
Revenue:
Total revenue	$ 63,207	$ 39,043	$ 119,495	$ 74,322
Cost of revenue:
Total cost of revenue	14,556	9,650	27,041	18,086
Maintenance and Support [Member]
Revenue:
Total revenue	9,372	10,610	18,929	21,363
Cost of revenue:
Total cost of revenue	2,081	2,007	3,965	3,856
Professional Services [Member]
Revenue:
Total revenue	6,380	8,788	13,720	17,271
Cost of revenue:
Total cost of revenue	$ 5,544	$ 5,736	$ 11,148	$ 12,045

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Statement of Comprehensive Income [Abstract]
Net loss	$ (13,420)	$ (14,333)	$ (25,093)	$ (30,694)
Other comprehensive income (loss):
Change in fair value of investments	189	20	382	15
Total change in unrealized gain on investments	189	20	382	15
Comprehensive loss	$ (13,231)	$ (14,313)	$ (24,711)	$ (30,679)

Consolidated Statements of Chan

Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock [Member]	Treasury Stock [Member]	Additional Paid-in Capital [Member]	AOCI Attributable to Parent [Member]	Retained Earnings [Member]
Beginning balance (in shares) at Dec. 31, 2017		44,054	487
Beginning balance at Dec. 31, 2017	$ 24,153	$ 441	$ (4,764)	$ 463,428	$ (39)	$ (434,913)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense	13,575			13,575
Issuance of common stock related to follow-on public offering (in shares)		1,500
Issuance of common stock related to follow-on public offering	30,907	$ 15		30,892
Issuance of common stock under Employee Stock Purchase Plan (in shares)		124
Issuance of common stock under Employee Stock Purchase Plan	1,632	$ 1		1,631
Vesting of restricted stock units (in shares)		425
Vesting of restricted stock units	0	$ 4		(4)
Forfeiture of restricted stock awards (in shares)		(3)
Forfeiture of restricted stock awards	0
Shares withheld for employee taxes (in shares)		(42)
Shares withheld for employee taxes	(1,005)	$ (1)		(1,004)
Issuance of common stock upon exercise of stock options (in shares)		681
Issuance of common stock upon exercise of stock options	5,087	$ 7		5,080
Net unrealized gain on investments	15				15
Net loss	(30,694)					(30,694)
Ending balance (in shares) at Jun. 30, 2018		46,739	487
Ending balance at Jun. 30, 2018	69,543	$ 467	$ (4,764)	513,598	(24)	(439,734)
Beginning balance (in shares) at Mar. 31, 2018		46,199	487
Beginning balance at Mar. 31, 2018	73,922	$ 462	$ (4,764)	503,669	(44)	(425,401)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense	7,350			7,350
Vesting of restricted stock units (in shares)		269
Vesting of restricted stock units	0	$ 2		(2)
Shares withheld for employee taxes (in shares)		(22)
Shares withheld for employee taxes	(543)			(543)
Issuance of common stock upon exercise of stock options (in shares)		293
Issuance of common stock upon exercise of stock options	3,127	$ 3		3,124
Net unrealized gain on investments	20				20
Net loss	(14,333)					(14,333)
Ending balance (in shares) at Jun. 30, 2018		46,739	487
Ending balance at Jun. 30, 2018	69,543	$ 467	$ (4,764)	513,598	(24)	(439,734)
Beginning balance (in shares) at Dec. 31, 2018		47,600	487
Beginning balance at Dec. 31, 2018	87,319	$ 476	$ (4,764)	556,223	(31)	(464,585)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense	19,064			19,064
Issuance of common stock under Employee Stock Purchase Plan (in shares)		111
Issuance of common stock under Employee Stock Purchase Plan	2,634	$ 1		2,633
Vesting of restricted stock units (in shares)		595
Vesting of restricted stock units	0	$ 6		(6)
Shares withheld for employee taxes (in shares)		(58)
Shares withheld for employee taxes	(2,839)	$ (1)		(2,838)
Issuance of common stock upon exercise of stock options (in shares)		550
Issuance of common stock upon exercise of stock options	6,057	$ 6		6,051
Net unrealized gain on investments	382				382
Net loss	(25,093)					(25,093)
Ending balance (in shares) at Jun. 30, 2019		48,798	487
Ending balance at Jun. 30, 2019	87,524	$ 488	$ (4,764)	581,127	351	(489,678)
Beginning balance (in shares) at Mar. 31, 2019		48,158	487
Beginning balance at Mar. 31, 2019	88,851	$ 482	$ (4,764)	569,229	162	(476,258)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense	10,430			10,430
Vesting of restricted stock units (in shares)		351
Vesting of restricted stock units	0	$ 3		(3)
Shares withheld for employee taxes (in shares)		(36)
Shares withheld for employee taxes	(1,859)	$ (1)		(1,858)
Issuance of common stock upon exercise of stock options (in shares)		325
Issuance of common stock upon exercise of stock options	3,333	$ 4		3,329
Net unrealized gain on investments	189				189
Net loss	(13,420)					(13,420)
Ending balance (in shares) at Jun. 30, 2019		48,798	487
Ending balance at Jun. 30, 2019	$ 87,524	$ 488	$ (4,764)	$ 581,127	$ 351	$ (489,678)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Cash flows from operating activities:
Net loss	$ (25,093)	$ (30,694)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	7,371	5,077
Amortization of debt discount and issuance costs	5,104	0
Stock-based compensation expense	19,064	13,575
Provision for doubtful accounts	1,353	456
Deferred income taxes	(761)	0
Foreign currency re-measurement loss	191	471
Other non-cash (income) expense	(1,290)	(71)
Changes in operating assets and liabilities:
Accounts receivable	4,549	24,586
Deferred contract acquisition and fulfillment costs	(3,172)	(4,531)
Prepaid expenses and other assets	(9,334)	(3,602)
Accounts payable	2,184	2,391
Accrued expenses	(7,312)	(7,806)
Deferred revenue	(5,066)	(1,001)
Other liabilities	1,129	(669)
Net cash used in operating activities	(11,083)	(1,818)
Cash flows from investing activities:
Business acquisition, net of cash acquired	(14,621)	0
Purchases of property and equipment	(17,712)	(5,650)
Capitalization of internal-use software costs	(3,152)	(1,413)
Purchases of investments	(72,432)	(10,655)
Sales/maturities of investments	140,302	33,128
Net cash provided by investing activities	32,385	15,410
Cash flows from financing activities:
Proceeds from follow-on public offering, net of offering costs of $608	0	30,907
Taxes paid related to net share settlement of equity awards	(2,839)	(1,005)
Proceeds from employee stock purchase plan	2,634	1,632
Proceeds from stock option exercises	6,058	4,657
Net cash provided by financing activities	5,853	36,191
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(151)	(314)
Net increase in cash, cash equivalents and restricted cash	27,004	49,469
Cash, cash equivalents and restricted cash, beginning of period	99,565	51,762
Cash, cash equivalents and restricted cash, end of period	126,569	101,231
Supplemental cash flow information:
Cash paid for interest on convertible senior notes	1,342	0
Cash paid for income taxes, net of refunds	319	315
Non-cash investing activities:
Leasehold improvements acquired through tenant improvement allowance	14,016	0
Reconciliation of cash, cash equivalents and restricted cash:
Total cash, cash equivalents and restricted cash	$ 99,565	$ 51,762

Consolidated Statements of Ca_2

Consolidated Statements of Cash Flows (Unaudited) (Parenthetical) $ in Thousands	6 Months Ended
	Jun. 30, 2018USD ($)
Statement of Cash Flows [Abstract]
Offering costs	$ 608

Description of Business, Basis

Description of Business, Basis of Presentation and Consolidation and Significant Accounting Policies	6 Months Ended
	Jun. 30, 2019
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 advancing security with visibility, analytics, and automation delivered through our Insight cloud. Our solutions simplify the complex, allowing security teams to work more effectively with IT and development to reduce vulnerabilities, monitor for malicious behavior, investigate and shut down attacks, and automate routine tasks. 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, 2018 filed with the SEC on February 28, 2019. 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 and six months ended June 30, 2019 are not necessarily indicative of the results to be expected for any future period or the entire fiscal year. Significant Accounting Policies Our significant accounting policies are described in Note 2, Summary of Significant Accounting Policies , to the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2018 . There have been no material changes to the significant accounting policies during the three and six-month periods ended June 30, 2019 other than those noted below. Leases Effective January 1, 2019, we adopted Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) 2016-02, Leases (Topic 842), as amended Accounting Standard Codification (ASC) 842. In accordance with ASC 842, at the inception of an arrangement, we determine whether the arrangement is or contains a lease based on the unique facts and circumstances present and the classification of the lease. Most leases with a term greater than one year are recognized on the balance sheet as right-of-use (ROU) assets, lease liabilities and, if applicable, long-term lease liabilities. We have elected not to recognize on the balance sheet leases with terms of one year or less. For contracts with lease and non-lease components, we have elected not to allocate the contract consideration and to account for the lease and non-lease components as a single lease component. Lease liabilities and their corresponding ROU assets are recorded based on the present value of lease payments over the expected lease term. The implicit rate within our operating leases are generally not determinable and therefore we use the incremental borrowing rate at the lease commencement date to determine the present value of lease payments. The determination of our incremental borrowing rate requires judgment. We determine our incremental borrowing rate for each lease using our estimated borrowing rate, adjusted for various factors including level of collateralization, term and currency to align with the terms of the lease. The operating lease ROU asset also includes any lease prepayments, offset by lease incentives. Certain of our leases include options to extend or terminate the lease. An option to extend the lease is considered in connection with determining the ROU asset and lease liability when it is reasonably certain we will exercise that option. An option to terminate is considered unless it is reasonably certain we will not exercise the option. For periods prior to the adoption of ASC 842, we recorded rent expense on a straight-line basis over the term of the related lease. The difference between the straight-line rent expense and the payments made in accordance with the operating lease agreements were recognized as a deferred rent liability on the accompanying consolidated balance sheets. Recent Accounting Pronouncements Accounting Pronouncements Recently Adopted In February 2016, the FASB issued ASU 2016-02, Leases , which requires companies to recognize on the balance sheet the assets and liabilities for the rights and obligations created by the leased asset. The standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. We adopted this standard effective January 1, 2019 using the modified retrospective approach for all leases entered into before the effective date. We also elected to implement the new standard at the adoption date with a cumulative-effect adjustment, if any, recognized to the opening balance of accumulative deficit in the period of adoption. For comparability purposes, we will continue to comply with the previous disclosure requirements in accordance with the existing lease guidance for all periods presented in the year of adoption. We elected the package of practical expedients as permitted under the transition guidance, which allowed us: (1) to carry forward the historical lease classification; (2) not to reassess whether expired or existing contracts are or contain leases; and, (3) not to reassess the treatment of initial direct costs for existing leases. In addition, we elected an accounting policy to not recognize leases with an initial term of one year or less on the balance sheet. Upon the adoption of this standard on January 1, 2019, we recognized a total lease liability of $21.3 million , representing the present value of the minimum rental payments remaining as of the adoption date and a right-of-use asset in the amount of $15.4 million . We did not have any finance leases (formerly referred to as capital leases prior to the adoption of ASC 842), therefore there was no change in accounting treatment required. Accounting Pronouncements Not Yet Effective In August 2018, the FASB issued Accounting Standards Update (ASU) 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract, which aligns the requirements for capitalizing implementation costs in cloud computing arrangements with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The new standard will be effective for us in the first quarter of 2020, with early adoption permitted. Entities can choose to adopt the new guidance prospectively or retrospectively. We are currently in the process of evaluating the effects of this pronouncement on our consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement, which eliminates, modifies and adds disclosure requirements for fair value measurements. The new standard will be effective for us in the first quarter of 2020, with early adoption permitted. We do not expect this ASU to have a material impact on our consolidated financial statements.

Revenue from Contracts with Cus

Revenue from Contracts with Customers	6 Months Ended
	Jun. 30, 2019
Revenue from Contract with Customer [Abstract]
Revenue from Contracts with Customers	Revenue from Contracts with Customers We generate products revenue from the sale of (1) cloud-based subscriptions for our InsightIDR, InsightVM, InsightAppSec and InsightConnect products, (2) managed services offerings, which utilize our products and (3) term or perpetual software licenses for our Nexpose, Metasploit, and AppSpider products, and associated content subscriptions for our Nexpose and Metasploit products. We also generate appliance revenue that is included in our products revenue and is associated with hardware sold with our Nexpose product to certain customers. We generate maintenance and support revenue associated with customers’ purchases of our software licenses for Nexpose, Metasploit and AppSpider. 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 FASB ASU 2014-09, Revenue from Contracts with Customers (Topic 606) (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 and six months ended June 30, 2019 and 2018 : Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (in thousands) Subscription revenue $ 52,309 $ 31,361 $ 99,278 $ 60,130 Term and perpetual software licenses 10,315 6,697 18,991 12,257 Maintenance and support 9,372 10,610 18,929 21,363 Professional services 6,380 8,788 13,720 17,271 Other 583 985 1,226 1,935 Total revenue $ 78,959 $ 58,441 $ 152,144 $ 112,956 The following table summarizes the revenue by region based on the shipping address of customers who have contracted to use our products or services for the three and six months ended June 30, 2019 and 2018 : Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (in thousands) United States $ 64,106 $ 47,773 $ 124,046 $ 91,983 All other 14,853 10,668 28,098 20,973 Total revenue $ 78,959 $ 58,441 $ 152,144 $ 112,956 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 a term of one year , which is billed in advance and non-cancellable. • 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 a term of one year , which is billed in advance and non-cancellable. • 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 five years, which represents a longer period of time in comparison to the initial contractual period of maintenance and support. The estimated economic life of five 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 June 30, 2019 and 2018 , we recognized revenue of $66.6 million and $48.5 million , respectively, and for the six months ended June 30, 2019 and 2018 , we recognized $117.2 million and $84.3 million , respectively, that was included in the corresponding contract liability balance at the beginning of the periods presented. Deferred revenue that will be realized during the succeeding 12-month period is recorded as current, and the remaining deferred revenue is recorded as non-current. 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 June 30, 2019 and December 31, 2018 , contract assets of $0.5 million and $0.8 million , respectively, are included in prepaid expenses and other current assets in our consolidated balance sheet. Deferred Contract Acquisition and Fulfillment Costs We capitalize commission expenses paid to internal sales personnel and partner referral fees that are incremental costs 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 five years as sales commissions on initial sales are not commensurate with sales commissions on contract renewals. 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 our 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 for the six months ended June 30, 2019 and 2018 : Six Months Ended June 30, 2019 2018 (in thousands) Beginning balance $ 39,955 $ 27,165 Capitalization of contract acquisition and fulfillment costs 10,067 8,921 Amortization of deferred contract acquisition and fulfillment costs (6,896 ) (4,391 ) Ending balance $ 43,126 $ 31,695 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 June 30, 2019 . The estimated revenues do not include unexercised contract renewals. Remainder of 2019 2020 2021 and thereafter (in thousands) Subscription revenue $ 96,471 $ 64,955 $ 14,811 Term and perpetual software licenses 14,819 16,352 13,222 Maintenance and support 15,908 11,237 2,327 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 June 30, 2019 , the estimated revenue expected to be recognized in the future related to professional services is $10.6 million

Business Combination

Business Combination	6 Months Ended
	Jun. 30, 2019
Business Combinations [Abstract]
Business Combination	Business Combination On April 1, 2019, we acquired NetFort Technologies Limited (NetFort), a provider of end-to-end network traffic visibility and analytics across cloud, virtual and physical platforms for a purchase price of $16.1 million . The $16.1 million purchase price was funded with cash. In the three and six months ended June 30, 2019 , we recorded $0.3 million and $0.5 million , respectively, of acquisition related costs in general and administrative expense. The following table summarizes the preliminary allocation of purchase price to the estimated fair value of the assets acquired and liabilities assumed at the acquisition date (in thousands): Purchase price $ 16,130 Recognized amount of identifiable assets acquired and liabilities assumed: Cash and cash equivalents $ 1,523 Other net working capital 325 Deferred revenue (487 ) Deferred tax liability (761 ) Intangible asset 6,084 Total identifiable net assets assumed 6,684 Goodwill 9,446 Total purchase price allocation $ 16,130 The fair value of identifiable intangible assets was based on valuations using the income approach. The estimated fair value and useful life of identifiable intangible assets are as follows: Amount Weighted Average Amortization Life (years) (in thousands) Developed technology $ 6,084 5 The excess of the purchase price over the tangible assets acquired, identifiable intangible asset acquired and assumed liabilities was recorded as goodwill. We believe that the amount of goodwill reflects the expected synergistic benefits of being able to leverage the integration of the technology acquired with our existing product offerings and to be able to successfully market and sell these new products and features to our customer base. The goodwill was allocated to our one reporting unit. The acquired goodwill and intangible asset will not be deductible for tax purposes. Accordingly, a $0.8 million deferred tax benefit was recorded resulting from a partial release of our valuation allowance to account for the creation of a deferred tax liability for the developed technology intangible asset acquired. These preliminary amounts are subject to subsequent adjustment as we obtain additional information to finalize certain components of working capital. Following the acquisition, certain retained employees and non-employee contractors of NetFort received an aggregate of 123,623 restricted stock units (RSUs), which will vest over a maximum of three years . The vesting of the RSUs are subject to the employee's continued service with us. Accordingly, compensation expense associated with the RSUs will be expensed as incurred in our post-acquisition financial statements. Proforma results of operations have not been included, as the acquisition of NetFort was not material to our results of operations for any periods presented.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2019
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 measured and recorded at fair value on a recurring basis using the above input categories: As of June 30, 2019 Level 1 Level 2 Level 3 Total (in thousands) Description: Assets: Money market funds $ 108,526 $ — $ — $ 108,526 U.S. government agencies 45,838 — — 45,838 Commercial paper — 17,292 — 17,292 Corporate bonds — 45,606 — 45,606 Agency bonds — 21,098 — 21,098 Asset-backed securities — 7,984 — 7,984 Total assets $ 154,364 $ 91,980 $ — $ 246,344 As of December 31, 2018 Level 1 Level 2 Level 3 Total (in thousands) Description: Assets: Money market funds $ 55,646 $ — $ — $ 55,646 U.S. government agencies 74,481 — — 74,481 Commercial paper — 57,554 — 57,554 Corporate bonds — 48,495 — 48,495 Agency bonds — 19,087 — 19,087 Asset-backed securities — 7,483 — 7,483 Total assets $ 130,127 $ 132,619 $ — $ 262,746 As of June 30, 2019 , the fair value of our 1.25% convertible senior notes due 2023, as further described in Note 7, Convertible Senior Notes and Capped Calls , was $351.0 million based upon quoted market prices. We consider the fair value of the Notes to be a Level 2 measurement due to limited trading activity of the Notes. We had no other liabilities measured and recorded at fair value on a recurring basis as of June 30, 2019 or December 31, 2018 . Our investments, which are all classified as available-for-sale, consisted of the following: As of June 30, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) Description: U.S. government agencies $ 45,695 $ 143 $ — $ 45,838 Commercial paper 17,291 1 — 17,292 Corporate bonds 45,483 124 (1 ) 45,606 Agency bonds 21,026 72 — 21,098 Asset-backed securities 7,972 13 (1 ) 7,984 Total assets $ 137,467 $ 353 $ (2 ) $ 137,818 As of December 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) Description: U.S. government agencies $ 71,480 $ 20 $ (17 ) $ 71,483 Commercial paper 57,554 — — 57,554 Corporate bonds 48,532 15 (52 ) 48,495 Agency bonds 19,077 16 (6 ) 19,087 Asset-backed securities 7,490 — (7 ) 7,483 Total assets $ 204,133 $ 51 $ (82 ) $ 204,102 As of June 30, 2019 and December 31, 2018 , our available-for-sale investments had maturities ranging from three months to two years . Our available-for-sale investments as of December 31, 2018 included $3.0 million of U.S. Government agencies investments, which are classified as cash and cash equivalents as the original maturity was less than three months. For all of our investments for which the amortized cost basis was greater than the fair value at June 30, 2019 and December 31, 2018

Property and Equipment

Property and Equipment	6 Months Ended
	Jun. 30, 2019
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 $ 20,612 $ 18,724 Furniture and fixtures (1) 10,178 5,580 Leasehold improvements (1) 50,271 19,437 Total 81,061 43,741 Less accumulated depreciation (29,201 ) (26,218 ) Property and equipment, net $ 51,860 $ 17,523 (1) As of June 30, 2019 , $30.5 million and $3.8 million of leasehold improvements and furniture and fixtures, respectively, related to our new Boston, Massachusetts corporate headquarters which was completed in July 2019. As of December 31, 2018 , leasehold improvements included $3.8 million of construction-in progress related to our new corporate headquarters facility. Depreciation expense was $2.1 million and $1.6 million for the three months ended June 30, 2019 and 2018 , respectively, and $3.9 million and $3.0 million for the six months ended June 30, 2019 and 2018 , respectively.

Goodwill and Intangible Assets

Goodwill and Intangible Assets	6 Months Ended
	Jun. 30, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets	Goodwill and Intangible Assets Goodwill was $97.9 million and $88.4 million as of June 30, 2019 and December 31, 2018 , respectively. The following table displays the changes in goodwill: Amount (in thousands) Balance at December 31, 2018 $ 88,420 NetFort acquisition 9,446 Balance at June 30, 2019 $ 97,866 The following table presents details of our intangible assets, which include acquired identifiable intangible assets and capitalized internal-use software costs: As of June 30, 2019 As of December 31, 2018 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 5.4 $ 35,855 $ (12,761 ) $ 23,094 $ 29,771 $ (9,741 ) $ 20,030 Customer relationships 6.7 1,000 (577 ) 423 1,000 (504 ) 496 Trade names 6.1 519 (518 ) 1 519 (516 ) 3 Non-compete agreements 2.0 40 (40 ) — 40 (40 ) — Total acquired intangible assets 37,414 (13,896 ) 23,518 31,330 (10,801 ) 20,529 Internal-use software 6,938 (730 ) 6,208 3,786 (360 ) 3,426 Total intangible assets $ 44,352 $ (14,626 ) $ 29,726 $ 35,116 $ (11,161 ) $ 23,955 Amortization expense was $1.9 million and $1.0 million for the three months ended June 30, 2019 and 2018 , respectively, and $3.5 million and $2.1 million for the six months ended June 30, 2019 and 2018 , respectively. Estimated future amortization expense of the acquired identifiable intangible assets and completed capitalized internal-use software costs as of June 30, 2019 was as follows (in thousands): 2019 (for the remaining six months) $ 3,907 2020 7,771 2021 6,975 2022 4,298 2023 2,667 2024 and thereafter 304 Total $ 25,922 The table above excludes the impact of $3.8 million of capitalized internal-use software costs for projects that have not been completed as of June 30, 2019

Convertible Senior Notes and Ca

Convertible Senior Notes and Capped Calls	6 Months Ended
	Jun. 30, 2019
Debt Disclosure [Abstract]
Convertible Senior Notes and Capped Calls	Convertible Senior Notes and Capped Calls In August 2018, we issued $200.0 million aggregate principal amount of convertible senior notes due August 1, 2023 and an additional $30.0 million aggregate principal amount of such notes pursuant to the exercise in full of the over-allotment options of the initial purchasers (collectively, the Notes). The Notes are our senior unsecured obligations and bear interest at a fixed rate of 1.25% per annum, payable semi-annually in arrears on February 1 and August 1 of each year, commencing on February 1, 2019. The Notes will mature on August 1, 2023, unless earlier converted, redeemed or repurchased. The Notes do not contain any financial covenants. The total net proceeds from the Notes offering, after deducting initial purchase discounts and estimated debt issuance costs was $223.1 million . The Notes are governed by an indenture between the Company, as issuer, and U.S. Bank National Association, as trustee (the Indenture). Each $1,000 principal amount of the Notes is initially convertible into 24.0460 shares of our common stock, the Conversion Option, which is equivalent to an initial conversion price of approximately $41.59 per share, subject to adjustment upon the occurrence of specified events. The holders of the Notes may convert their Notes at their option at any time prior to the close of business on the business day immediately preceding February 1, 2023, only under the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on December 31, 2018 (and only during such calendar quarter), if the last reported sale price of our common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price of the Notes on each applicable trading day; (2) during the five business day period after any five consecutive trading day period (measurement period) in which the trading price (as defined in the Indenture) per $1,000 principal amount of the Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of our common stock and the conversion rate of the Notes on each such trading day; (3) if we call any or all of the Notes for redemption, at any time prior to the close of business on the scheduled trading day immediately preceding the redemption date; or (4) upon the occurrence of specified corporate events (as set forth in the Indenture). On or after February 1, 2023 until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert their Notes at any time, regardless of the foregoing circumstances. Upon conversion, we will pay or deliver, as the case may be, cash, shares of our common stock or a combination of cash and shares of our common stock, at our election, in the manner and subject to the terms and conditions provided in the Indenture. We may not redeem the Notes prior to August 6, 2021. On or after August 6, 2021, we may redeem for cash all or any portion of the Notes, at our option, if the last reported sale price of our common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including the trading day immediately preceding, the date on which we provide the redemption notice at a redemption price equal to 100% principal amount of the Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. If we undergo a fundamental change (as set forth in the Indenture) at any time prior to the maturity date, holders of the Notes, will have the right, at their option, to require us to repurchase for cash all or any portion of their Notes at a repurchase price equal to 100% of the principal amount of the Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date. In addition, following certain corporate events that occur prior to the maturity date or following our issuance of a notice of redemption, in each case as described in the Indenture, we will increase the conversion rate for a holder of the Notes who elects to convert its Notes in connection with such a corporate event or during the related redemption period in certain circumstances. During the six months ended June 30, 2019 , none of the conditions allowing holders of the Notes to convert their Notes had been met. The Notes are therefore not convertible as of June 30, 2019 and are classified as long-term debt. The foregoing description is qualified in its entirety by reference to the text of the Indenture and the Form of the Notes, which are filed as Exhibits 4.1 and 4.2 to this Quarterly Report on Form 10-Q. In accounting for the transaction, the Notes have been separated into liability and equity components. The initial carrying amount of the liability component was calculated by measuring the fair value of a similar debt instrument that does not have an associated convertible feature. The initial carrying amount of the equity component representing the Conversion Option was $53.8 million and was determined by deducting the fair value of the liability component from the par value of the Notes. The equity component was recorded as an increase to additional paid-in capital and is not remeasured as long as it continues to meet the conditions for equity classification. The excess of the principal amount of the Notes over the initial carrying amount of the liability component, or the debt discount, is amortized to interest expense over the contractual term of the Notes at an effective interest rate of 7.37% . In accounting for the debt issuance costs of $6.9 million related to the Notes, we allocated the total amount incurred to the liability and equity components of the Notes based on their relative values. Issuance costs attributable to the liability component were $5.3 million and will be amortized to interest expense using the effective interest method over the contractual term of the Notes. Issuance costs attributable to the equity component of $1.6 million were netted with the equity component in additional paid-in capital. The net carrying amount of the liability component of the Notes was as follows: As of As of (in thousands) Principal $ 230,000 $ 230,000 Unamortized debt discount (45,690 ) (50,334 ) Unamortized issuance costs (4,519 ) (4,978 ) Net carrying amount $ 179,791 $ 174,688 The net carrying amount of the equity component as June 30, 2019 and December 31, 2018 was as follows (in thousands): Debt discount for conversion option $ 53,820 Issuance costs (1,626 ) Net carrying amount $ 52,194 Interest expense related to the Notes was as follows: Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 (in thousands) Contractual interest expense $ 718 $ 1,437 Amortization of debt discount 2,361 4,645 Amortization of issuance costs 233 459 Total interest expense $ 3,312 $ 6,541 In connection with the offering of the Notes, we entered into privately negotiated capped call transactions with certain counterparties, the (Capped Calls). The Capped Calls each have an initial strike price of $41.59 per share, subject to certain adjustments, which correspond to the initial conversion price of the Notes. The Capped Calls have initial cap prices of $63.98 per share, subject to certain adjustments. The Capped Calls are expected to offset potential dilution to our common stock upon conversion of the Notes, with such offset subject to a cap based on the cap price. The Capped Calls cover, subject to anti-dilution adjustments, approximately 5.5 million shares of our common stock. For accounting purposes, the Capped Calls are separate transactions, and not part of the terms of the Notes. The Capped Calls are recorded in stockholders' equity and are not accounted for as derivatives. Accordingly, the cost of $26.9 million incurred in connection with the Capped Calls was recorded as a reduction to additional paid-in capital. The net impact to our stockholders' equity, included in additional paid-in capital, of the above components of the Notes was as follows (in thousands): Conversion option $ 53,820 Purchase of capped calls (26,910 ) Issuance costs (1,626 ) Total $ 25,284

Leases

Leases	6 Months Ended
	Jun. 30, 2019
Leases [Abstract]
Leases	Leases Our leases primarily relate to office facilities that have remaining terms of up to 10.5 years , some of which include one or more options to renew with renewal terms of up to 5 years and some of which include options to terminate the leases within the next 3 years . All of our leases are classified as operating leases. In November 2017, we entered into a lease agreement with respect to 147,061 square feet of office space at 120 Causeway Street, Boston, Massachusetts for our new corporate headquarters. The term of the lease was 126 months . We took possession of the leased office space on May 1, 2019 at which time we recorded a ROU asset and corresponding lease liability of $58.6 million . The components of lease expense were as follows: Three Months Ended Six Months Ended (in thousands) Operating lease cost $ 3,055 $ 5,022 Short-term lease costs 137 286 Variable lease costs 592 1,009 Total lease costs $ 3,784 $ 6,317 Supplemental balance sheet information related to the operating leases was as follows: As of (in thousands, except lease term and discount rate) Operating ROU assets $ 59,417 Operating lease liabilities, current portion $ 6,057 Operating lease liabilities, non-current portion 71,722 Total operating lease liabilities $ 77,779 Weighted average remaining lease term (in years) - operating leases 9.2 Weighted average discount rate - operating leases 7.8 % Supplemental cash flow information related to leases was as follows: Three Months Ended Six Months Ended (in thousands) Cash paid for amounts included in the measurement of lease liabilities $ 2,578 $ 4,506 ROU assets obtained in exchange for new lease obligations $ 58,906 $ 60,772 Maturities of operating lease liabilities as of June 30, 2019 were as follows (in thousands): 2019 (for the remaining six months) $ 4,869 2020 11,959 2021 11,691 2022 11,391 2023 11,340 2024 and thereafter 53,561 Total lease payments $ 104,811 Less: imputed interest (27,032 ) Total $ 77,779 In July 2019, we entered into a lease agreement with respect to 67,214 square feet at 100 Causeway Street, Boston, Massachusetts, to be located in the same complex as, and in order to expand, our corporate headquarters. The term of the lease is 102 months and is expected to commence in June 2021. Our future lease payments are approximately $35.0 million . We plan to take possession of the leased office space in the second quarter of 2021, at which time we will record an operating ROU asset and corresponding lease liability. Under the prior lease accounting standard, as of December 31, 2018, the future minimum payments under non-cancellable leases, which included our future headquarters, were as follows (in thousands): 2019 $ 9,899 2020 11,616 2021 10,933 2022 11,054 2023 11,136 Thereafter 53,648 Total $ 108,286

Stock-Based Compensation Expens

Stock-Based Compensation Expense	6 Months Ended
	Jun. 30, 2019
Share-based Payment Arrangement [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 June 30, Six Months Ended June 30, 2019 2018 2019 2018 (in thousands) Stock-based compensation expense: Cost of revenue $ 718 $ 469 $ 1,291 $ 843 Research and development 4,054 2,850 7,228 5,416 Sales and marketing 2,942 2,055 5,406 3,618 General and administrative 2,716 1,976 5,139 3,698 Total stock-based compensation expense $ 10,430 $ 7,350 $ 19,064 $ 13,575 We recognize compensation cost of all awards on a straight-line basis over the applicable vesting period, which is generally four years . (b) Restricted Stock and Restricted Stock Units Restricted stock and restricted stock unit activity during the six months ended June 30, 2019 was as follows: Restricted Stock Restricted Stock Units Shares Weighted-Average Grant Date Fair Value Shares Weighted-Average Unvested balance as of December 31, 2018 21,677 $ 10.88 2,773,773 $ 21.21 Granted — — 1,509,033 41.83 Vested (21,677 ) 10.88 (594,764 ) 22.88 Forfeited — — (174,261 ) 25.31 Unvested balance as of June 30, 2019 — $ — 3,513,781 $ 29.58 As of June 30, 2019 , the unrecognized compensation expense related to our unvested restricted stock units expected to vest was $97.1 million . This unrecognized compensation expense will be recognized over an estimated weighted-average amortization period of 2.8 years . (c) Stock Options Stock option activity during the six months ended June 30, 2019 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, 2018 3,713,179 $ 10.32 Granted — — Exercised (549,612 ) 11.02 $ 21,286 Forfeited/cancelled (26,013 ) 12.88 Outstanding as of June 30, 2019 3,137,554 $ 10.17 5.7 $ 149,561 Vested and exercisable as of June 30, 2019 2,416,849 $ 8.90 5.1 $ 118,275 As of June 30, 2019 , the unrecognized compensation expense related to our unvested stock options expected to vest was $4.5 million . This unrecognized compensation expense will be recognized over an estimated weighted-average amortization period of 1.5 years . The total fair value of stock options vested in the six months ended June 30, 2019 was $3.8 million . (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, 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. On September 14, 2018, we issued 96,108 shares of common stock to employees for aggregate proceeds of $2.0 million . The purchase prices of the shares were $21.96 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, 2018 of $25.84 and on September 18, 2017 of $17.39 , respectively. On March 15, 2019, we issued 110,822 shares of common stock to employees for aggregate proceeds of $2.6 million . The purchase prices of the shares were $30.46 and $21.96 per share, which were discounted in accordance with the terms of the ESPP from the closing prices of our common stock on September 17, 2018 of $35.84 and on March 16, 2018 of $25.84 , respectively.

Net Loss per Share

Net Loss per Share	6 Months Ended
	Jun. 30, 2019
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 and six months ended June 30, 2019 and 2018 : Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (in thousands, except share and per share data) Numerator: Net loss $ (13,420 ) $ (14,333 ) $ (25,093 ) $ (30,694 ) Denominator: Weighted-average common shares outstanding, basic and diluted 48,451,562 46,279,947 48,141,474 45,746,513 Net loss per share attributable to common stockholders, basic and diluted $ (0.28 ) $ (0.31 ) $ (0.52 ) $ (0.67 ) 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 and Six Months Ended June 30, 2019 2018 Options to purchase common stock 3,137,554 4,054,256 Unvested restricted stock — 115,168 Unvested restricted stock units 3,513,781 3,312,840 Shares to be issued under ESPP 46,331 61,966 Total 6,697,666 7,544,230 Additionally, the 5.5 million shares underlying the conversion option of the Notes are not considered in the calculation of diluted net loss per share as the effect would be anti-dilutive. The Notes are not convertible as of June 30, 2019 . We expect to settle the principal amount of the Notes in cash and therefore use the treasury stock method for calculating any potential dilutive effect of the conversion spread on diluted net income per share, if applicable. The conversion spread will have a dilutive impact on diluted net income per share when the average market price of our common stock for a given period of time exceeds the initial conversion price of $41.59 per share for the Notes.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2019
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 In October 2018, Finjan, Inc. (Finjan) filed a complaint against us and our wholly-owned subsidiary, Rapid7 LLC, in the United States District Court, District of Delaware, alleging patent infringement of seven patents held by them. In the complaint, Finjan sought unspecified damages, attorneys' fees and injunctive relief. We intend to vigorously contest Finjan's claims. This litigation is still in its early stages and the final outcome, including our liability, if any, with respect to Finjan's claims, is uncertain. 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 addition, from time to time, we are 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, financial condition or results of operations. Regardless of the outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources and other factors. (c) Indemnification Obligations We agree to standard indemnification provisions in the ordinary course of business. Pursuant to these provisions, we agree to indemnify, hold harmless and reimburse the indemnified party for losses suffered or incurred by the indemnified party, generally our customers, in connection with any United States patent, copyright or other intellectual property infringement claim by any third party arising from the use of our products or services in accordance with the agreement or arising from our gross negligence, willful misconduct or violation of the law (provided that there is not gross or willful misconduct on the part of the other party) with respect to our products or services. The term of these indemnification provisions is generally perpetual from the time of execution of the agreement. We carry insurance that covers certain third-party claims relating to our services and limits our exposure. We have never incurred costs to defend lawsuits or settle claims related to these indemnification provisions. 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	6 Months Ended
	Jun. 30, 2019
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 June 30, Six Months Ended June 30, 2019 2018 2019 2018 (in thousands) North America $ 66,301 $ 49,519 $ 128,340 $ 95,896 Other 12,658 8,922 23,804 17,060 Total $ 78,959 $ 58,441 $ 152,144 $ 112,956 Of the total net revenues generated in North America, 97% and 96% of the revenues were generated in the United States for the three months ended June 30, 2019 and 2018 , respectively, and 97% and 96% of the revenues were generated in the United States for the six months ended June 30, 2019 and 2018 , respectively. Property and equipment, net by geographic area was as follows: As of June 30, 2019 As of December 31, 2018 (in thousands) United States $ 48,508 $ 16,311 Other 3,352 1,212 Total $ 51,860 $ 17,523

Related Party Transactions

Related Party Transactions	6 Months Ended
	Jun. 30, 2019
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions In October 2015, McAfee, LLC 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. On February 6, 2017, Michael Berry, a member of our board of directors, became the chief financial officer of Intel Security (McAfee). During the three and six months ended June 30, 2019 , we made payments of $0.3 million to McAfee LLC for partner referral fees. As of June 30, 2019 , we had $0.6 million of partner referral fees payable to McAfee, LLC recorded as accrued expenses on our consolidated balance sheet.

Description of Business, Basi_2

Description of Business, Basis of Presentation and Consolidation and Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2019
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, 2018 filed with the SEC on February 28, 2019. 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 and six months ended June 30, 2019 are not necessarily indicative of the results to be expected for any future period or the entire fiscal year.
Leases	Leases Effective January 1, 2019, we adopted Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) 2016-02, Leases (Topic 842), as amended Accounting Standard Codification (ASC) 842. In accordance with ASC 842, at the inception of an arrangement, we determine whether the arrangement is or contains a lease based on the unique facts and circumstances present and the classification of the lease. Most leases with a term greater than one year are recognized on the balance sheet as right-of-use (ROU) assets, lease liabilities and, if applicable, long-term lease liabilities. We have elected not to recognize on the balance sheet leases with terms of one year or less. For contracts with lease and non-lease components, we have elected not to allocate the contract consideration and to account for the lease and non-lease components as a single lease component. Lease liabilities and their corresponding ROU assets are recorded based on the present value of lease payments over the expected lease term. The implicit rate within our operating leases are generally not determinable and therefore we use the incremental borrowing rate at the lease commencement date to determine the present value of lease payments. The determination of our incremental borrowing rate requires judgment. We determine our incremental borrowing rate for each lease using our estimated borrowing rate, adjusted for various factors including level of collateralization, term and currency to align with the terms of the lease. The operating lease ROU asset also includes any lease prepayments, offset by lease incentives. Certain of our leases include options to extend or terminate the lease. An option to extend the lease is considered in connection with determining the ROU asset and lease liability when it is reasonably certain we will exercise that option. An option to terminate is considered unless it is reasonably certain we will not exercise the option. For periods prior to the adoption of ASC 842, we recorded rent expense on a straight-line basis over the term of the related lease. The difference between the straight-line rent expense and the payments made in accordance with the operating lease agreements were recognized as a deferred rent liability on the accompanying consolidated balance sheets.
Recent Accounting Pronouncements	Recent Accounting Pronouncements Accounting Pronouncements Recently Adopted In February 2016, the FASB issued ASU 2016-02, Leases , which requires companies to recognize on the balance sheet the assets and liabilities for the rights and obligations created by the leased asset. The standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. We adopted this standard effective January 1, 2019 using the modified retrospective approach for all leases entered into before the effective date. We also elected to implement the new standard at the adoption date with a cumulative-effect adjustment, if any, recognized to the opening balance of accumulative deficit in the period of adoption. For comparability purposes, we will continue to comply with the previous disclosure requirements in accordance with the existing lease guidance for all periods presented in the year of adoption. We elected the package of practical expedients as permitted under the transition guidance, which allowed us: (1) to carry forward the historical lease classification; (2) not to reassess whether expired or existing contracts are or contain leases; and, (3) not to reassess the treatment of initial direct costs for existing leases. In addition, we elected an accounting policy to not recognize leases with an initial term of one year or less on the balance sheet. Upon the adoption of this standard on January 1, 2019, we recognized a total lease liability of $21.3 million , representing the present value of the minimum rental payments remaining as of the adoption date and a right-of-use asset in the amount of $15.4 million . We did not have any finance leases (formerly referred to as capital leases prior to the adoption of ASC 842), therefore there was no change in accounting treatment required. Accounting Pronouncements Not Yet Effective In August 2018, the FASB issued Accounting Standards Update (ASU) 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract, which aligns the requirements for capitalizing implementation costs in cloud computing arrangements with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The new standard will be effective for us in the first quarter of 2020, with early adoption permitted. Entities can choose to adopt the new guidance prospectively or retrospectively. We are currently in the process of evaluating the effects of this pronouncement on our consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement, which eliminates, modifies and adds disclosure requirements for fair value measurements. The new standard will be effective for us in the first quarter of 2020, with early adoption permitted. We do not expect this ASU to have a material impact on our consolidated financial statements.

Revenue from Contracts with C_2

Revenue from Contracts with Customers (Tables)	6 Months Ended
	Jun. 30, 2019
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue	The following table summarizes revenue from contracts with customers for the three and six months ended June 30, 2019 and 2018 : Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (in thousands) Subscription revenue $ 52,309 $ 31,361 $ 99,278 $ 60,130 Term and perpetual software licenses 10,315 6,697 18,991 12,257 Maintenance and support 9,372 10,610 18,929 21,363 Professional services 6,380 8,788 13,720 17,271 Other 583 985 1,226 1,935 Total revenue $ 78,959 $ 58,441 $ 152,144 $ 112,956 The following table summarizes the revenue by region based on the shipping address of customers who have contracted to use our products or services for the three and six months ended June 30, 2019 and 2018 : Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (in thousands) United States $ 64,106 $ 47,773 $ 124,046 $ 91,983 All other 14,853 10,668 28,098 20,973 Total revenue $ 78,959 $ 58,441 $ 152,144 $ 112,956
Capitalized Contract Cost	The following table summarizes the activity of the deferred contract acquisition and fulfillment costs for the six months ended June 30, 2019 and 2018 : Six Months Ended June 30, 2019 2018 (in thousands) Beginning balance $ 39,955 $ 27,165 Capitalization of contract acquisition and fulfillment costs 10,067 8,921 Amortization of deferred contract acquisition and fulfillment costs (6,896 ) (4,391 ) Ending balance $ 43,126 $ 31,695
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 June 30, 2019 . The estimated revenues do not include unexercised contract renewals. Remainder of 2019 2020 2021 and thereafter (in thousands) Subscription revenue $ 96,471 $ 64,955 $ 14,811 Term and perpetual software licenses 14,819 16,352 13,222 Maintenance and support 15,908 11,237 2,327

Business Combination (Tables)

Business Combination (Tables)	6 Months Ended
	Jun. 30, 2019
Business Combinations [Abstract]
Schedule of Business Acquisitions, by Acquisition	The following table summarizes the preliminary allocation of purchase price to the estimated fair value of the assets acquired and liabilities assumed at the acquisition date (in thousands): Purchase price $ 16,130 Recognized amount of identifiable assets acquired and liabilities assumed: Cash and cash equivalents $ 1,523 Other net working capital 325 Deferred revenue (487 ) Deferred tax liability (761 ) Intangible asset 6,084 Total identifiable net assets assumed 6,684 Goodwill 9,446 Total purchase price allocation $ 16,130
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination	The fair value of identifiable intangible assets was based on valuations using the income approach. The estimated fair value and useful life of identifiable intangible assets are as follows: Amount Weighted Average Amortization Life (years) (in thousands) Developed technology $ 6,084 5

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2019
Fair Value Disclosures [Abstract]
Assets Measured at Fair Value on Recurring Basis	The following table presents our financial assets measured and recorded at fair value on a recurring basis using the above input categories: As of June 30, 2019 Level 1 Level 2 Level 3 Total (in thousands) Description: Assets: Money market funds $ 108,526 $ — $ — $ 108,526 U.S. government agencies 45,838 — — 45,838 Commercial paper — 17,292 — 17,292 Corporate bonds — 45,606 — 45,606 Agency bonds — 21,098 — 21,098 Asset-backed securities — 7,984 — 7,984 Total assets $ 154,364 $ 91,980 $ — $ 246,344 As of December 31, 2018 Level 1 Level 2 Level 3 Total (in thousands) Description: Assets: Money market funds $ 55,646 $ — $ — $ 55,646 U.S. government agencies 74,481 — — 74,481 Commercial paper — 57,554 — 57,554 Corporate bonds — 48,495 — 48,495 Agency bonds — 19,087 — 19,087 Asset-backed securities — 7,483 — 7,483 Total assets $ 130,127 $ 132,619 $ — $ 262,746
Schedule of Available-for-sale Securities Reconciliation	Our investments, which are all classified as available-for-sale, consisted of the following: As of June 30, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) Description: U.S. government agencies $ 45,695 $ 143 $ — $ 45,838 Commercial paper 17,291 1 — 17,292 Corporate bonds 45,483 124 (1 ) 45,606 Agency bonds 21,026 72 — 21,098 Asset-backed securities 7,972 13 (1 ) 7,984 Total assets $ 137,467 $ 353 $ (2 ) $ 137,818 As of December 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) Description: U.S. government agencies $ 71,480 $ 20 $ (17 ) $ 71,483 Commercial paper 57,554 — — 57,554 Corporate bonds 48,532 15 (52 ) 48,495 Agency bonds 19,077 16 (6 ) 19,087 Asset-backed securities 7,490 — (7 ) 7,483 Total assets $ 204,133 $ 51 $ (82 ) $ 204,102

Property and Equipment (Tables)

Property and Equipment (Tables)	6 Months Ended
	Jun. 30, 2019
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 $ 20,612 $ 18,724 Furniture and fixtures (1) 10,178 5,580 Leasehold improvements (1) 50,271 19,437 Total 81,061 43,741 Less accumulated depreciation (29,201 ) (26,218 ) Property and equipment, net $ 51,860 $ 17,523 (1) As of June 30, 2019 , $30.5 million and $3.8 million

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	6 Months Ended
	Jun. 30, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Goodwill	The following table displays the changes in goodwill: Amount (in thousands) Balance at December 31, 2018 $ 88,420 NetFort acquisition 9,446 Balance at June 30, 2019 $ 97,866
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 June 30, 2019 As of December 31, 2018 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 5.4 $ 35,855 $ (12,761 ) $ 23,094 $ 29,771 $ (9,741 ) $ 20,030 Customer relationships 6.7 1,000 (577 ) 423 1,000 (504 ) 496 Trade names 6.1 519 (518 ) 1 519 (516 ) 3 Non-compete agreements 2.0 40 (40 ) — 40 (40 ) — Total acquired intangible assets 37,414 (13,896 ) 23,518 31,330 (10,801 ) 20,529 Internal-use software 6,938 (730 ) 6,208 3,786 (360 ) 3,426 Total intangible assets $ 44,352 $ (14,626 ) $ 29,726 $ 35,116 $ (11,161 ) $ 23,955
Schedule of Estimated Amortization Expense	Estimated future amortization expense of the acquired identifiable intangible assets and completed capitalized internal-use software costs as of June 30, 2019 was as follows (in thousands): 2019 (for the remaining six months) $ 3,907 2020 7,771 2021 6,975 2022 4,298 2023 2,667 2024 and thereafter 304 Total $ 25,922

Convertible Senior Notes and _2

Convertible Senior Notes and Capped Calls (Tables)	6 Months Ended
	Jun. 30, 2019
Debt Disclosure [Abstract]
Schedule of Liability and Equity Components of Convertible Debt	The net carrying amount of the liability component of the Notes was as follows: As of As of (in thousands) Principal $ 230,000 $ 230,000 Unamortized debt discount (45,690 ) (50,334 ) Unamortized issuance costs (4,519 ) (4,978 ) Net carrying amount $ 179,791 $ 174,688 The net carrying amount of the equity component as June 30, 2019 and December 31, 2018 was as follows (in thousands): Debt discount for conversion option $ 53,820 Issuance costs (1,626 ) Net carrying amount $ 52,194 Interest expense related to the Notes was as follows: Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 (in thousands) Contractual interest expense $ 718 $ 1,437 Amortization of debt discount 2,361 4,645 Amortization of issuance costs 233 459 Total interest expense $ 3,312 $ 6,541 The net impact to our stockholders' equity, included in additional paid-in capital, of the above components of the Notes was as follows (in thousands): Conversion option $ 53,820 Purchase of capped calls (26,910 ) Issuance costs (1,626 ) Total $ 25,284

Leases (Tables)

Leases (Tables)	6 Months Ended
	Jun. 30, 2019
Leases [Abstract]
Lease, Cost	Supplemental cash flow information related to leases was as follows: Three Months Ended Six Months Ended (in thousands) Cash paid for amounts included in the measurement of lease liabilities $ 2,578 $ 4,506 ROU assets obtained in exchange for new lease obligations $ 58,906 $ 60,772 The components of lease expense were as follows: Three Months Ended Six Months Ended (in thousands) Operating lease cost $ 3,055 $ 5,022 Short-term lease costs 137 286 Variable lease costs 592 1,009 Total lease costs $ 3,784 $ 6,317
Assets and Liabilities, Lessee	Supplemental balance sheet information related to the operating leases was as follows: As of (in thousands, except lease term and discount rate) Operating ROU assets $ 59,417 Operating lease liabilities, current portion $ 6,057 Operating lease liabilities, non-current portion 71,722 Total operating lease liabilities $ 77,779 Weighted average remaining lease term (in years) - operating leases 9.2 Weighted average discount rate - operating leases 7.8 %
Lessee, Operating Lease, Liability, Maturity	Maturities of operating lease liabilities as of June 30, 2019 were as follows (in thousands): 2019 (for the remaining six months) $ 4,869 2020 11,959 2021 11,691 2022 11,391 2023 11,340 2024 and thereafter 53,561 Total lease payments $ 104,811 Less: imputed interest (27,032 ) Total $ 77,779 Under the prior lease accounting standard, as of December 31, 2018, the future minimum payments under non-cancellable leases, which included our future headquarters, were as follows (in thousands): 2019 $ 9,899 2020 11,616 2021 10,933 2022 11,054 2023 11,136 Thereafter 53,648 Total $ 108,286

Stock-Based Compensation Expe_2

Stock-Based Compensation Expense (Tables)	6 Months Ended
	Jun. 30, 2019
Share-based Payment Arrangement [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 June 30, Six Months Ended June 30, 2019 2018 2019 2018 (in thousands) Stock-based compensation expense: Cost of revenue $ 718 $ 469 $ 1,291 $ 843 Research and development 4,054 2,850 7,228 5,416 Sales and marketing 2,942 2,055 5,406 3,618 General and administrative 2,716 1,976 5,139 3,698 Total stock-based compensation expense $ 10,430 $ 7,350 $ 19,064 $ 13,575
Summary of Restricted Stock and Restricted Stock Unit Activity	Restricted stock and restricted stock unit activity during the six months ended June 30, 2019 was as follows: Restricted Stock Restricted Stock Units Shares Weighted-Average Grant Date Fair Value Shares Weighted-Average Unvested balance as of December 31, 2018 21,677 $ 10.88 2,773,773 $ 21.21 Granted — — 1,509,033 41.83 Vested (21,677 ) 10.88 (594,764 ) 22.88 Forfeited — — (174,261 ) 25.31 Unvested balance as of June 30, 2019 — $ — 3,513,781 $ 29.58
Summary of Stock Option Activity	Stock option activity during the six months ended June 30, 2019 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, 2018 3,713,179 $ 10.32 Granted — — Exercised (549,612 ) 11.02 $ 21,286 Forfeited/cancelled (26,013 ) 12.88 Outstanding as of June 30, 2019 3,137,554 $ 10.17 5.7 $ 149,561 Vested and exercisable as of June 30, 2019 2,416,849 $ 8.90 5.1 $ 118,275

Net Loss per Share (Tables)

Net Loss per Share (Tables)	6 Months Ended
	Jun. 30, 2019
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 and six months ended June 30, 2019 and 2018 : Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (in thousands, except share and per share data) Numerator: Net loss $ (13,420 ) $ (14,333 ) $ (25,093 ) $ (30,694 ) Denominator: Weighted-average common shares outstanding, basic and diluted 48,451,562 46,279,947 48,141,474 45,746,513 Net loss per share attributable to common stockholders, basic and diluted $ (0.28 ) $ (0.31 ) $ (0.52 ) $ (0.67 )
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 and Six Months Ended June 30, 2019 2018 Options to purchase common stock 3,137,554 4,054,256 Unvested restricted stock — 115,168 Unvested restricted stock units 3,513,781 3,312,840 Shares to be issued under ESPP 46,331 61,966 Total 6,697,666 7,544,230

Segment Information and Infor_2

Segment Information and Information about Geographic Areas (Tables)	6 Months Ended
	Jun. 30, 2019
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 June 30, Six Months Ended June 30, 2019 2018 2019 2018 (in thousands) North America $ 66,301 $ 49,519 $ 128,340 $ 95,896 Other 12,658 8,922 23,804 17,060 Total $ 78,959 $ 58,441 $ 152,144 $ 112,956
Property and Equipment, Net By Geographic Area	Property and equipment, net by geographic area was as follows: As of June 30, 2019 As of December 31, 2018 (in thousands) United States $ 48,508 $ 16,311 Other 3,352 1,212 Total $ 51,860 $ 17,523

Description of Business, Basi_3

Description of Business, Basis of Presentation and Consolidation and Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Jan. 01, 2019	Dec. 31, 2018
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating lease right-of-use assets	$ 59,417		$ 0
Operating lease liability	$ 77,779
Accounting Standards Update 2016-02 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating lease right-of-use assets		$ 15,400
Operating lease liability		$ 21,300

Revenue from Contracts with C_3

Revenue from Contracts with Customers - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Disaggregation of Revenue [Line Items]
Total revenue	$ 78,959	$ 58,441	$ 152,144	$ 112,956
United States [Member]
Disaggregation of Revenue [Line Items]
Total revenue	64,106	47,773	124,046	91,983
All other [Member]
Disaggregation of Revenue [Line Items]
Total revenue	14,853	10,668	28,098	20,973
Subscription Revenue [Member]
Disaggregation of Revenue [Line Items]
Total revenue	52,309	31,361	99,278	60,130
Term And Perpetual License [Member]
Disaggregation of Revenue [Line Items]
Total revenue	10,315	6,697	18,991	12,257
Maintenance and Support [Member]
Disaggregation of Revenue [Line Items]
Total revenue	9,372	10,610	18,929	21,363
Professional Services [Member]
Disaggregation of Revenue [Line Items]
Total revenue	6,380	8,788	13,720	17,271
Other [Member]
Disaggregation of Revenue [Line Items]
Total revenue	$ 583	$ 985	$ 1,226	$ 1,935

Revenue from Contracts with C_4

Revenue from Contracts with Customers - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue recognized	$ 66.6	$ 48.5	$ 117.2	$ 84.3
Contract assets	$ 0.5		$ 0.5		$ 0.8
Cloud-Based Subscription Contract [Member]
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Contract term			1 year
Managed Services Offerings [Member]
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Contract term			1 year
Term And Perpetual License [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member]
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Economic life			5 years
Professional Services [Member]
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Amortization period	1 year		1 year
Expected timing of satisfaction, period	12 months		12 months
Professional Services [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member]
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Contractual period			1 year

Revenue from Contracts with C_5

Revenue from Contracts with Customers - Capitalized Costs (Details) - Contract Acquisition And Fulfillment Costs [Member] - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Capitalized Contract Cost [Roll Forward]
Beginning balance	$ 39,955	$ 27,165
Capitalization of contract acquisition and fulfillment costs	10,067	8,921
Amortization of deferred contract acquisition and fulfillment costs	(6,896)	(4,391)
Ending balance	$ 43,126	$ 31,695

Revenue from Contracts with C_6

Revenue from Contracts with Customers - Performance Obligation (Details) $ in Thousands	Jun. 30, 2019USD ($)
Subscription Revenue [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 96,471
Expected timing of satisfaction, period	6 months
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	$ 64,955
Expected timing of satisfaction, period	1 year
Subscription Revenue [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 14,811
Expected timing of satisfaction, period
Term And Perpetual License [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 14,819
Expected timing of satisfaction, period	6 months
Term And Perpetual License [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	$ 16,352
Expected timing of satisfaction, period	1 year
Term And Perpetual License [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 13,222
Expected timing of satisfaction, period
Maintenance and Support [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 15,908
Expected timing of satisfaction, period	6 months
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	$ 11,237
Expected timing of satisfaction, period	1 year
Maintenance and Support [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 2,327
Expected timing of satisfaction, period
Professional Services [Member]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected timing of satisfaction, period	12 months
Professional Services [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-10-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 10,600

Business Combination - Narrativ

Business Combination - Narrative (Details) - USD ($) $ in Millions	Apr. 01, 2019	Jun. 30, 2019	Jun. 30, 2019
Business Acquisition [Line Items]
Vesting period			4 years
NetFort Technologies [Member]
Business Acquisition [Line Items]
Total cash consideration	$ 16.1
Acquisition related costs		$ 0.3	$ 0.5
Deferred tax benefit recognized during period for release of valuation allowance	$ 0.8
Vesting period	3 years
Restricted Stock Units (RSUs) [Member] | NetFort Technologies [Member]
Business Acquisition [Line Items]
Equity awards granted to certain retained employees (in shares)	123,623

Business Combination - Assets A

Business Combination - Assets Acquired (Details) - USD ($) $ in Thousands	Apr. 01, 2019	Jun. 30, 2019	Dec. 31, 2018
Business Acquisition [Line Items]
Goodwill		$ 97,866	$ 88,420
NetFort Technologies [Member]
Business Acquisition [Line Items]
Cash consideration	$ 16,130
Cash and cash equivalents	1,523
Other net working capital	325
Deferred revenue	(487)
Deferred tax liability	(761)
Intangible asset	6,084
Total identifiable net assets assumed	6,684
Goodwill	9,446
Total purchase price allocation	$ 16,130

Business Combination - Intangib

Business Combination - Intangible Assets Acquired (Details) - Developed Technology [Member] - NetFort Technologies [Member] $ in Thousands	Apr. 01, 2019USD ($)
Business Acquisition [Line Items]
Amount	$ 6,084
Weighted Average Amortization Life (years)	5 years

Fair Value Measurements - Asset

Fair Value Measurements - Assets Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	$ 137,818	$ 204,102
The Notes, Due 2023 [Member] | Convertible Debt [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate	1.25%
Convertible debt, fair value	$ 351,000
Fair Value, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	246,344	262,746
Level 1 [Member] | Fair Value, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	154,364	130,127
Level 2 [Member] | Fair Value, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	91,980	132,619
Level 3 [Member] | Fair Value, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	0	0
U.S. Government Agencies [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	45,838	71,483
U.S. Government Agencies [Member] | Fair Value, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	45,838	74,481
U.S. Government Agencies [Member] | Level 1 [Member] | Fair Value, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	45,838	74,481
U.S. Government Agencies [Member] | Level 2 [Member] | Fair Value, 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, 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	17,292	57,554
Commercial Paper [Member] | Fair Value, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	17,292	57,554
Commercial Paper [Member] | Level 1 [Member] | Fair Value, 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, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	17,292	57,554
Commercial Paper [Member] | Level 3 [Member] | Fair Value, 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	45,606	48,495
Corporate Bonds [Member] | Fair Value, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	45,606	48,495
Corporate Bonds [Member] | Level 1 [Member] | Fair Value, 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, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	45,606	48,495
Corporate Bonds [Member] | Level 3 [Member] | Fair Value, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	0	0
Agency Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	21,098	19,087
Agency Bonds [Member] | Fair Value, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	21,098	19,087
Agency Bonds [Member] | Level 1 [Member] | Fair Value, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	0	0
Agency Bonds [Member] | Level 2 [Member] | Fair Value, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	21,098	19,087
Agency Bonds [Member] | Level 3 [Member] | Fair Value, 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	7,984	7,483
Asset-backed Securities [Member] | Fair Value, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	7,984	7,483
Asset-backed Securities [Member] | Level 1 [Member] | Fair Value, 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] | Level 2 [Member] | Fair Value, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	7,984	7,483
Asset-backed Securities [Member] | Level 3 [Member] | Fair Value, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	0	0
Money Market Funds [Member] | Fair Value, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds	108,526	55,646
Money Market Funds [Member] | Level 1 [Member] | Fair Value, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds	108,526	55,646
Money Market Funds [Member] | Level 2 [Member] | Fair Value, 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, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds	$ 0	$ 0

Fair Value Measurements - Avail

Fair Value Measurements - Available for Sale Investments at Fair Value (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 137,467	$ 204,133
Gross Unrealized Gains	353	51
Gross Unrealized Losses	(2)	(82)
Fair Value	$ 137,818	$ 204,102
Minimum [Member]
Debt Securities, Available-for-sale [Line Items]
Remaining maturity	3 months	3 months
Maximum [Member]
Debt Securities, Available-for-sale [Line Items]
Remaining maturity	2 years	2 years
U.S. Government Agencies [Member]
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 45,695	$ 71,480
Gross Unrealized Gains	143	20
Gross Unrealized Losses	0	(17)
Fair Value	45,838	71,483
U.S. Government Agencies [Member] | Available-for-sale Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Money market funds		3,000
Commercial Paper [Member]
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	17,291	57,554
Gross Unrealized Gains	1	0
Gross Unrealized Losses	0	0
Fair Value	17,292	57,554
Corporate Bonds [Member]
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	45,483	48,532
Gross Unrealized Gains	124	15
Gross Unrealized Losses	(1)	(52)
Fair Value	45,606	48,495
Agency Bonds [Member]
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	21,026	19,077
Gross Unrealized Gains	72	16
Gross Unrealized Losses	0	(6)
Fair Value	21,098	19,087
Asset-backed Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	7,972	7,490
Gross Unrealized Gains	13	0
Gross Unrealized Losses	(1)	(7)
Fair Value	$ 7,984	$ 7,483

Property and Equipment - Summar

Property and Equipment - Summary of Property and Equipment (Detail) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 81,061	$ 43,741
Less accumulated depreciation	(29,201)	(26,218)
Net property and equipment	51,860	17,523
Computer Equipment and Software [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	20,612	18,724
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	10,178	5,580
Construction in progress, gross	3,800
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	50,271	19,437
Construction in progress, gross	$ 30,500
Construction in Progress [Member]
Property, Plant and Equipment [Line Items]
Construction in progress, gross		$ 3,800

Property and Equipment - Additi

Property and Equipment - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 2.1	$ 1.6	$ 3.9	$ 3

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets - Narrative (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	$ 97,866		$ 97,866		$ 88,420
Amortization expense	$ 1,900	$ 1,000	3,500	$ 2,100
Capitalized internal-use software costs for works in process			$ 3,800

Goodwill and Intangible Asset_3

Goodwill and Intangible Assets - Goodwill Activity (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2019USD ($)
Goodwill [Roll Forward]
Balance at December 31, 2018	$ 88,420
NetFort acquisition	9,446
Balance at June 30, 2019	$ 97,866

Goodwill and Intangible Asset_4

Goodwill and Intangible Assets - Schedule of Identifiable Intangible Assets (Detail) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Finite-Lived Intangible Assets [Line Items]
Total intangible assets, Gross Carrying Amount	$ 44,352	$ 35,116
Accumulated Amortization	(14,626)	(11,161)
Total	25,922
Total intangible assets, Net Book Value	29,726	23,955
Acquired Intangible Assets, Gross Carrying Amount	37,414	31,330
Acquired Intangible Assets, Accumulated Amortization	(13,896)	(10,801)
Acquired Intangible Assets, Net Book Value	$ 23,518	20,529
Developed Technology [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets, Weighted-Average Life	5 years 4 months 24 days
Gross Carrying Amount	$ 35,855	29,771
Accumulated Amortization	(12,761)	(9,741)
Total	$ 23,094	20,030
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	(577)	(504)
Total	$ 423	496
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	(518)	(516)
Total	$ 1	3
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)
Total	0	0
Internal-use Software [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	6,938	3,786
Accumulated Amortization	(730)	(360)
Total	$ 6,208	$ 3,426

Goodwill and Intangible Asset_5

Goodwill and Intangible Assets - Schedule of Estimated Amortization Expense (Detail) $ in Thousands	Jun. 30, 2019USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2019 (for the remaining six months)	$ 3,907
2020	7,771
2021	6,975
2022	4,298
2023	2,667
2024 and thereafter	304
Total	$ 25,922

Convertible Senior Notes and _3

Convertible Senior Notes and Capped Calls - Additional Information (Details) $ / shares in Units, shares in Millions	1 Months Ended	3 Months Ended	6 Months Ended
	Aug. 31, 2018USD ($)day$ / sharesshares	Jun. 30, 2019USD ($)	Jun. 30, 2019USD ($)$ / shares	Dec. 31, 2018USD ($)
Debt Instrument [Line Items]
Equity component of convertible debt, subsequent adjustments	$ 26,910,000
Call Option [Member]
Debt Instrument [Line Items]
Strike price (in dollars per share) | $ / shares	$ 41.59
Cap price (in dollars per share) | $ / shares	$ 63.98
Option indexed to issuer's equity (in shares) | shares	5.5
Equity component of convertible debt, subsequent adjustments			$ 26,900,000
The Notes [Member]
Debt Instrument [Line Items]
Strike price (in dollars per share) | $ / shares			$ 41.59
Convertible Debt [Member] | The Notes, Due 2023 [Member]
Debt Instrument [Line Items]
Face amount	$ 200,000,000
Interest rate		1.25%	1.25%
Convertible Debt [Member] | The Notes, Over-allotment Option [Member]
Debt Instrument [Line Items]
Face amount	$ 30,000,000
Convertible Debt [Member] | The Notes [Member]
Debt Instrument [Line Items]
Interest rate	1.25%
Proceeds from convertible debt	$ 223,100,000
Conversion ratio (in shares per $1000)	0.024046
Conversion price (in dollars per share) | $ / shares	$ 41.59
Redemption price, percentage	100.00%
Carrying amount of equity component	$ 53,800,000	$ 52,194,000	$ 52,194,000	$ 52,194,000
Convertible debt		179,791,000	179,791,000	174,688,000
Amortization of debt discount		2,361,000	4,645,000
Converted instrument, rate	7.37%
Debt issuance costs, net	$ 6,900,000	$ 4,519,000	$ 4,519,000	$ 4,978,000
Liability component	5,300,000
Issuance costs of equity component	$ 1,600,000
Debt Covenant One [Member] | Convertible Debt [Member] | The Notes [Member]
Debt Instrument [Line Items]
Threshold trading days | day	20
Threshold consecutive trading days | day	30
Threshold percentage of stock price trigger	130.00%
Debt Covenant Two [Member] | Convertible Debt [Member] | The Notes [Member]
Debt Instrument [Line Items]
Threshold trading days | day	5
Threshold percentage of stock price trigger	98.00%
Debt Covenant Three [Member] | Convertible Debt [Member] | The Notes [Member]
Debt Instrument [Line Items]
Threshold trading days | day	20
Threshold consecutive trading days | day	30
Threshold percentage of stock price trigger	130.00%
Redemption price, percentage	100.00%

Convertible Senior Notes and _4

Convertible Senior Notes and Capped Calls - Carrying Amount of Liability Component (Details) - Convertible Debt [Member] - The Notes [Member] - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018	Aug. 31, 2018
Debt Instrument [Line Items]
Principal	$ 230,000	$ 230,000
Unamortized debt discount	(45,690)	(50,334)
Unamortized issuance costs	(4,519)	(4,978)	$ (6,900)
Net carrying amount	$ 179,791	$ 174,688

Convertible Senior Notes and _5

Convertible Senior Notes and Capped Calls - Carrying Amount of Equity Component (Details) - Convertible Debt [Member] - The Notes [Member] - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018	Aug. 31, 2018
Debt Instrument [Line Items]
Debt discount for conversion option	$ 53,820	$ 53,820
Issuance costs	(1,626)	(1,626)
Net carrying amount	$ 52,194	$ 52,194	$ 53,800

Convertible Senior Notes and _6

Convertible Senior Notes and Capped Calls - Schedule of Interest Expense (Details) - Convertible Debt [Member] - The Notes [Member] - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2019
Debt Instrument [Line Items]
Contractual interest expense	$ 718	$ 1,437
Amortization of debt discount	2,361	4,645
Amortization of issuance costs	233	459
Total interest expense	$ 3,312	$ 6,541

Convertible Senior Notes and _7

Convertible Senior Notes and Capped Calls - Impact to Shareholders' Equity (Details) $ in Thousands	1 Months Ended
	Aug. 31, 2018USD ($)
Debt Instrument [Line Items]
Conversion option	$ 53,820
Purchase of capped calls	(26,910)
Issuance costs	(1,626)
Total	$ 25,284

Leases - Additional Information

Leases - Additional Information (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2019USD ($)	Jul. 31, 2019USD ($)ft²	May 01, 2019USD ($)	Dec. 31, 2018USD ($)	Nov. 30, 2017ft²
Lessee, Lease, Description [Line Items]
Lease term	9 years 2 months 12 days
Renewal term	5 years
Termination period	3 years
Operating lease liability	$ 77,779
Operating lease right-of-use assets	59,417			$ 0
Total lease payments	$ 104,811
Headquarters [Member]
Lessee, Lease, Description [Line Items]
Area of real estate property | ft²					147,061
Term of lease					126 months
Operating lease liability			$ 58,600
Operating lease right-of-use assets			$ 58,600
Headquarter Expansion [Member] | Subsequent Event [Member]
Lessee, Lease, Description [Line Items]
Area of real estate property | ft²		67,214
Term of lease		102 months
Total lease payments		$ 35,000
Maximum [Member]
Lessee, Lease, Description [Line Items]
Lease term	10 years 6 months

Leases - Lease Expense (Details

Leases - Lease Expense (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2019
Leases [Abstract]
Operating lease cost	$ 3,055	$ 5,022
Short-term lease costs	137	286
Variable lease costs	592	1,009
Total lease costs	$ 3,784	$ 6,317

Leases - Supplemental Balance S

Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Leases [Abstract]
Operating lease right-of-use assets	$ 59,417	$ 0
Operating lease liabilities, current portion	6,057	0
Operating lease liabilities, non-current portion	71,722	$ 0
Total operating lease liabilities	$ 77,779
Weighted average remaining lease term (in years) - operating leases	9 years 2 months 12 days
Weighted average discount rate - operating leases	7.80%

Leases - Supplemental Cash Flow

Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2019
Leases [Abstract]
Cash paid for amounts included in the measurement of lease liabilities	$ 2,578	$ 4,506
ROU assets obtained in exchange for new lease obligations	$ 58,906	$ 60,772

Leases - Maturities of Operatin

Leases - Maturities of Operating Lease Liabilities (Details) $ in Thousands	Jun. 30, 2019USD ($)
Leases [Abstract]
2019 (for the remaining nine months)	$ 4,869
2020	11,959
2021	11,691
2022	11,391
2023	11,340
2024 and thereafter	53,561
Total lease payments	104,811
Less: imputed interest	(27,032)
Total	$ 77,779

Leases - Future Minimum Lease P

Leases - Future Minimum Lease Payments Under Topic 840 (Details) $ in Thousands	Dec. 31, 2018USD ($)
Leases [Abstract]
2019	$ 9,899
2020	11,616
2021	10,933
2022	11,054
2023	11,136
Thereafter	53,648
Total	$ 108,286

Stock-Based Compensation Expe_3

Stock-Based Compensation Expense - Schedule of Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	$ 10,430	$ 7,350	$ 19,064	$ 13,575
Cost of Revenue [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	718	469	1,291	843
Research and Development [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	4,054	2,850	7,228	5,416
Sales and Marketing [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	2,942	2,055	5,406	3,618
General and Administrative [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	$ 2,716	$ 1,976	$ 5,139	$ 3,698

Stock-Based Compensation Expe_4

Stock-Based Compensation Expense - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands	Mar. 15, 2019	Sep. 14, 2018	Mar. 15, 2018	Jun. 30, 2019	Jun. 30, 2018	Sep. 17, 2018	Mar. 16, 2018	Sep. 18, 2017	Mar. 16, 2017
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%
Issuance of common stock under Employee Stock Purchase Plan				$ 2,634	$ 1,632
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				$ 97,100
Unrecognized compensation expense, recognition period				2 years 9 months 18 days
Options to Purchase Common Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense, recognition period				1 year 6 months
Unrecognized compensation cost, stock options				$ 4,500
Stock options vested, fair value				$ 3,800
Employee Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock issued to employees (in shares)	110,822	96,108	123,607
Issuance of common stock under Employee Stock Purchase Plan	$ 2,600	$ 2,000	$ 1,600
Share issued, price per share (in dollars per share)						$ 30.46	$ 21.96	$ 14.78	$ 12.96
Closing price of shares issued (in dollars per share)						$ 35.84	$ 25.84	$ 17.39	$ 15.25

Stock-Based Compensation Expe_5

Stock-Based Compensation Expense - Summary of Restricted Stock and Restricted Stock Unit Activity (Detail)	6 Months Ended
	Jun. 30, 2019$ / sharesshares
Restricted Stock [Member]
Shares
Unvested balance, Beginning balance (in shares) | shares	21,677
Granted (in shares) | shares	0
Vested (in shares) | shares	(21,677)
Forfeited (in shares) | shares	0
Unvested balance, Ending balance (in shares) | shares	0
Weighted-Average Grant Date Fair Value
Beginning balance (in dollars per share) | $ / shares	$ 10.88
Granted (in dollars per share) | $ / shares	0
Vested (in dollars per share) | $ / shares	10.88
Forfeited (in dollars per share) | $ / shares	0
Ending Balance (in dollars per share) | $ / shares	$ 0
Restricted Stock Units (RSUs) [Member]
Shares
Unvested balance, Beginning balance (in shares) | shares	2,773,773
Granted (in shares) | shares	1,509,033
Vested (in shares) | shares	(594,764)
Forfeited (in shares) | shares	(174,261)
Unvested balance, Ending balance (in shares) | shares	3,513,781
Weighted-Average Grant Date Fair Value
Beginning balance (in dollars per share) | $ / shares	$ 21.21
Granted (in dollars per share) | $ / shares	41.83
Vested (in dollars per share) | $ / shares	22.88
Forfeited (in dollars per share) | $ / shares	25.31
Ending Balance (in dollars per share) | $ / shares	$ 29.58

Stock-Based Compensation Expe_6

Stock-Based Compensation Expense - Summary of Stock Option Activity (Detail) $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2019USD ($)$ / sharesshares
Shares
Outstanding, Beginning balance (in shares) | shares	3,713,179
Granted (in shares) | shares	0
Exercised (in shares) | shares	(549,612)
Forfeited/canceled (in shares) | shares	(26,013)
Outstanding, Ending balance (in shares) | shares	3,137,554
Vested and exercisable (in shares) | shares	2,416,849
Weighted Average Exercise Price
Outstanding, Beginning balance (in dollars per share) | $ / shares	$ 10.32
Granted (in dollars per share) | $ / shares	0
Exercised (in dollars per share) | $ / shares	11.02
Forfeited/canceled (in dollars per share) | $ / shares	12.88
Outstanding, Ending balance (in dollars per share) | $ / shares	10.17
Vested and exercisable (in dollars per share) | $ / shares	$ 8.90
Weighted Average Remaining Contractual Life (in years)
Outstanding	5 years 8 months 12 days
Vested and exercisable	5 years 1 month 6 days
Aggregate Intrinsic Value
Exercised | $	$ 21,286
Outstanding | $	149,561
Vested and exercisable | $	$ 118,275

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		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Numerator:
Net loss	$ (13,420)	$ (14,333)	$ (25,093)	$ (30,694)
Denominator:
Weighted-average common shares outstanding, basic and diluted (in shares)	48,451,562	46,279,947	48,141,474	45,746,513
Net loss per share attributable to common stockholders, basic and diluted (in dollars per share)	$ (0.28)	$ (0.31)	$ (0.52)	$ (0.67)

Net Loss Per Share - Summary _2

Net Loss Per Share - Summary of Antidilutive Securities Excluded From Computation Diluted Weighted Average Shares Outstanding (Detail) - $ / shares	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Schedule Of Calculation Of Numerator And Denominator In Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share amount (in shares)	6,697,666	7,544,230
The Notes [Member]
Schedule Of Calculation Of Numerator And Denominator In Earnings Per Share [Line Items]
Strike price (in dollars per share)	$ 41.59
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 (in shares)	0	115,168
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 (in shares)	3,513,781	3,312,840
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 (in shares)	46,331	61,966
Convertible Debt Securities [Member]
Schedule Of Calculation Of Numerator And Denominator In Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share amount (in shares)	5,500,000
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 (in shares)	3,137,554	4,054,256

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Details)	1 Months Ended
	Oct. 31, 2018patent
Commitments and Contingencies Disclosure [Abstract]
Number of patents allegedly infringed	7

Segment Information and Infor_3

Segment Information and Information about Geographic Areas - Additional Information (Detail) - Segment	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
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	97.00%	96.00%	97.00%	96.00%

Segment Information and Infor_4

Segment Information and Information about Geographic Areas - Net Revenues of Customer by Geographic Area (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Entity Wide Portfolio Carrying Amount, Major Customer [Line Items]
Net revenues, Total	$ 78,959	$ 58,441	$ 152,144	$ 112,956
North America [Member]
Entity Wide Portfolio Carrying Amount, Major Customer [Line Items]
Net revenues, Total	66,301	49,519	128,340	95,896
Other [Member]
Entity Wide Portfolio Carrying Amount, Major Customer [Line Items]
Net revenues, Total	$ 12,658	$ 8,922	$ 23,804	$ 17,060

Segment Information and Infor_5

Segment Information and Information about Geographic Areas - Property and Equipment, Net By Geographic Area (Detail) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Revenues from External Customers and Long-Lived Assets [Line Items]
Property and equipment, net	$ 51,860	$ 17,523
United States [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Property and equipment, net	48,508	16,311
Other [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Property and equipment, net	$ 3,352	$ 1,212

Related Party Transactions - Na

Related Party Transactions - Narrative (Details) - McAfee LLC [Member] $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2019USD ($)	Jun. 30, 2019USD ($)
Related Party Transaction [Line Items]
Sales and marketing expense related to partner referral fees	$ 0.3	$ 0.3
Due to related parties	$ 0.6	$ 0.6

Uncategorized Items - rpdq22019

Label	Element	Value
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ 25,873,000
Restricted Cash and Cash Equivalents	us-gaap_RestrictedCashAndCashEquivalents	500,000
Restricted Cash and Cash Equivalents	us-gaap_RestrictedCashAndCashEquivalents	0
Retained Earnings [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ 25,873,000