Rapid7 (RPD) 10-Q 8 May 20 2020 Q1 Quarterly report Financial data

Cover Page

Cover Page - shares	3 Months Ended
	Mar. 31, 2020	Apr. 30, 2020
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2020
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		50,501,098
Entity Central Index Key	0001560327
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1
Amendment Flag	false

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 204,434	$ 123,413
Short-term investments	36,384	116,158
Accounts receivable, net of allowance for doubtful accounts of $2,251 and $1,829 at March 31, 2020 and December 31, 2019, respectively	64,388	87,927
Deferred contract acquisition and fulfillment costs, current portion	17,486	17,047
Prepaid expenses and other current assets	19,624	20,051
Total current assets	342,316	364,596
Long-term investments	12,804	22,887
Property and equipment, net	50,075	50,670
Operating lease right-of-use assets	62,942	60,984
Deferred contract acquisition and fulfillment costs, non-current portion	34,289	34,213
Goodwill	97,866	97,866
Intangible assets, net	27,867	28,561
Other assets	5,518	5,136
Total assets	633,677	664,913
Current liabilities:
Accounts payable	10,062	6,836
Accrued expenses	26,486	41,021
Operating lease liabilities, current portion	8,866	7,179
Deferred revenue, current portion	219,432	231,518
Other current liabilities	35	119
Total current liabilities	264,881	286,673
Convertible senior notes, net	187,944	185,200
Operating lease liabilities, non-current portion	71,586	72,294
Deferred revenue, non-current portion	31,641	36,226
Other long-term liabilities	1,325	1,352
Total liabilities	557,377	581,745
Stockholders’ equity:
Preferred stock, $0.01 par value per share; 10,000,000 shares authorized at March 31, 2020 and December 31, 2019; 0 shares issued at March 31, 2020 and December 31, 2019	0	0
Common stock, $0.01 par value per share; 100,000,000 shares authorized at March 31, 2020 and December 31, 2019; 50,906,182 and 50,397,922 shares issued at March 31, 2020 and December 31, 2019, respectively; 50,419,374 and 49,911,114 shares outstanding at March 31, 2020 and December 31, 2019, respectively	504	499
Treasury stock, at cost, 486,808 shares at March 31, 2020 and December 31, 2019	(4,764)	(4,764)
Additional paid-in-capital	621,992	605,650
Accumulated other comprehensive (loss) income	(78)	213
Accumulated deficit	(541,354)	(518,430)
Total stockholders’ equity	76,300	83,168
Total liabilities and stockholders’ equity	$ 633,677	$ 664,913

Consolidated Balance Sheets (_2

Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
Net of allowance for doubtful accounts	$ 2,251	$ 1,829
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)	50,906,182	50,397,922
Common stock, shares outstanding (in shares)	50,419,374	49,911,114
Treasury stock, shares (in shares)	486,808	486,808

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Revenue:
Total revenue	$ 94,340	$ 73,185
Cost of revenue:
Total cost of revenue	27,714	19,973
Total gross profit	66,626	53,212
Operating expenses:
Research and development	24,202	17,865
Sales and marketing	48,145	35,138
General and administrative	14,099	9,953
Total operating expenses	86,446	62,956
Loss from operations	(19,820)	(9,744)
Other income (expense), net:
Interest income	1,048	1,731
Interest expense	(3,462)	(3,229)
Other income (expense), net	(447)	(206)
Loss before income taxes	(22,681)	(11,448)
Provision for income taxes	243	225
Net loss	$ (22,924)	$ (11,673)
Net loss per share, basic and diluted (in dollars per share)	$ (0.46)	$ (0.24)
Weighted-average common shares outstanding, basic and diluted (in shares)	50,127,310	47,827,939
Products [Member]
Revenue:
Total revenue	$ 87,549	$ 65,845
Cost of revenue:
Total cost of revenue	21,256	14,369
Professional Services [Member]
Revenue:
Total revenue	6,791	7,340
Cost of revenue:
Total cost of revenue	$ 6,458	$ 5,604

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Statement of Comprehensive Income [Abstract]
Net loss	$ (22,924)	$ (11,673)
Other comprehensive income (loss):
Change in fair value of investments	(235)	193
Adjustments for net gains realized and included in net loss	56	0
Total change in unrealized (losses) gains on investments	(291)	193
Comprehensive loss	$ (23,215)	$ (11,480)

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]	Accumulated Other Comprehensive Gain (Loss) [Member]	Accumulated Deficit [Member]
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	8,634			8,634
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)		244
Vesting of restricted stock units	0	$ 3		(3)
Shares withheld for employee taxes (in shares)		(22)
Shares withheld for employee taxes	(980)			(980)
Issuance of common stock upon exercise of stock options (in shares)		225
Issuance of common stock upon exercise of stock options	2,724	$ 2		2,722
Net unrealized gain (loss) on investments	193				193
Net loss	(11,673)					(11,673)
Ending balance (in shares) at Mar. 31, 2019		48,158	487
Ending balance at Mar. 31, 2019	88,851	$ 482	$ (4,764)	569,229	162	(476,258)
Beginning balance (in shares) at Dec. 31, 2019		49,911	487
Beginning balance at Dec. 31, 2019	83,168	$ 499	$ (4,764)	605,650	213	(518,430)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense	12,965			12,965
Issuance of common stock under employee stock purchase plan (in shares)		102
Issuance of common stock under employee stock purchase plan	3,346	$ 1		3,345
Vesting of restricted stock units (in shares)		308
Vesting of restricted stock units	0	$ 3		(3)
Shares withheld for employee taxes (in shares)		(27)
Shares withheld for employee taxes	(1,533)	$ 0		(1,533)
Issuance of common stock upon exercise of stock options (in shares)		125
Issuance of common stock upon exercise of stock options	1,569	$ 1		1,568
Net unrealized gain (loss) on investments	(291)				(291)
Net loss	(22,924)					(22,924)
Ending balance (in shares) at Mar. 31, 2020		50,419	487
Ending balance at Mar. 31, 2020	$ 76,300	$ 504	$ (4,764)	$ 621,992	$ (78)	$ (541,354)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Cash flows from operating activities:
Net loss	$ (22,924)	$ (11,673)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	4,843	3,427
Amortization of debt discount and issuance costs	2,743	2,510
Stock-based compensation expense	13,347	8,634
Provision for doubtful accounts	527	437
Foreign currency re-measurement loss	447	249
Other non-cash (income) expense	(138)	(722)
Changes in operating assets and liabilities:
Accounts receivable	22,608	14,729
Deferred contract acquisition and fulfillment costs	(516)	(1,094)
Prepaid expenses and other assets	135	(5,940)
Accounts payable	4,010	66
Accrued expenses	(14,563)	(13,690)
Deferred revenue	(16,671)	(12,104)
Other liabilities	(1,063)	1,605
Net cash used in operating activities	(7,215)	(13,566)
Cash flows from investing activities:
Purchases of property and equipment	(2,756)	(8,463)
Capitalization of internal-use software costs	(1,474)	(1,601)
Purchases of investments	(24,272)	(63,029)
Sales/maturities of investments	113,924	72,738
Net cash provided by (used in) investing activities	85,422	(355)
Cash flows from financing activities:
Taxes paid related to net share settlement of equity awards	(1,533)	(979)
Proceeds from employee stock purchase plan	3,346	2,634
Proceeds from stock option exercises	1,561	2,718
Net cash provided by financing activities	3,374	4,373
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(560)	(148)
Net increase (decrease) in cash, cash equivalents and restricted cash	81,021	(9,696)
Cash, cash equivalents and restricted cash, beginning of period	123,413	99,565
Cash, cash equivalents and restricted cash, end of period	204,434	89,869
Supplemental cash flow information:
Cash paid for interest on convertible senior notes	1,438	1,342
Cash paid for income taxes, net of refunds	33	88
Non-cash investing activities:
Leasehold improvements acquired through tenant improvement allowance	$ 0	$ 7,313

Description of Business, Basis

Description of Business, Basis of Presentation and Consolidation and Significant Accounting Policies	3 Months Ended
	Mar. 31, 2020
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 Platform. 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, 2019 filed with the SEC on February 28, 2020. The consolidated financial statements include our results of operations and those of our wholly-owned subsidiaries and reflect all adjustments (consisting solely of normal, recurring adjustments) which are, in the opinion of management, necessary for a fair statement of results for the interim periods presented. All intercompany transactions and balances have been eliminated in consolidation. The results of operations for the three months ended March 31, 2020 are not necessarily indicative of the results to be expected for any future period or the entire fiscal year. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates, judgments and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Significant items subject to such estimates and assumptions include the determination of the estimated economic life of perpetual licenses for revenue recognition, the determination of standalone selling prices in revenue transactions with multiple performance obligations, the estimated period of benefit for deferred contract acquisition and fulfillment costs, the useful lives of long-lived assets, the valuation of allowance for doubtful accounts, the valuation of stock-based compensation, the valuation of intangible assets acquired in a business combination, the incremental borrowing rate for operating leases and the valuation for deferred tax assets. We base our estimates on historical experience and on various other assumptions that we believe are reasonable. Actual results could differ from those estimates. The COVID-19 pandemic is expected to result in a global slowdown of economic activity that is likely to decrease demand for a broad variety of goods and services, including from our customers. We currently expect our operational and financial performance to be negatively impacted by the slowdown in activity associated with the COVID-19 pandemic for the year ending December 31, 2020 and beyond. Estimates and assumptions about future events and their effects cannot be determined with certainty and therefore require the exercise of judgment. As of the date of issuance of these financial statements, we are not aware of any specific event or circumstance that would require us to update our estimates, assumptions and judgments or revise the carrying value of our assets or liabilities. These estimates may change as new events occur and additional information is obtained and will be recognized in the consolidated financial statements as soon as they become known. Actual results could differ from those estimates and any such differences may be material to our financial statements. Reclassification Historically, we have presented revenue on our consolidated statement of operations as products, maintenance and support and professional services revenue. For the three months ended March 31, 2020, we have combined products and maintenance and support revenue as products revenue on our consolidated statement of operations as our customers continue to migrate from our on-premise products to our SaaS Insight Platform. Given this continued migration, we believe it is more relevant to categorize maintenance and support revenue together as products revenue. Prior periods have been adjusted to conform with this presentation. 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, 2019. There have been no changes to the significant accounting policies during the three-month period ended March 31, 2020. Recent Accounting Pronouncements Accounting Pronouncements Recently Adopted In August 2018, the Financial Accounting Standards Board (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. We adopted this standard on January 1, 2020 using the prospective adoption approach. The impact to our consolidated financial statements as a result of the adoption was not material. 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. We adopted this standard on January 1, 2020 and there was no impact to our consolidated financial statements as a result of the adoption. Accounting Pronouncements Not Yet Effective In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes . This standard is intended to simplify various aspects related to accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and clarifying certain aspects of the current guidance to promote consistency among reporting entities. The new standard will be effective for us in the first quarter of 2021, with early adoption permitted. An entity that elects early adoption must adopt all the amendments in the same period. Most amendments within this ASU are required to be applied on a prospective basis, while certain amendments must be applied on a retrospective or modified retrospective basis. The Company is currently assessing the impact of adopting this standard but does not expect the adoption of this guidance to have a material impact on its consolidated financial statements.

Revenue from Contracts with Cus

Revenue from Contracts with Customers	3 Months Ended
	Mar. 31, 2020
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, penetration testing and security advisory services. Our deployment services educate and assist our customers on the best use and best practices to deploy our solutions. The following table summarizes revenue from contracts with customers for the three months ended March 31, 2020 and 2019: Three Months Ended March 31, 2020 2019 (in thousands) Subscription revenue $ 68,625 $ 46,969 Term and perpetual software licenses 10,271 8,676 Maintenance and support 8,422 9,557 Professional services 6,791 7,340 Other 231 643 Total revenue $ 94,340 $ 73,185 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 annual or multi-year contractual terms which are billed in advance of the annual subscription period and are 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 annual or multi-year contractual terms which are billed in advance of the annual subscription period and are non-cancellable. • Revenue related to our content subscriptions associated with our software licenses is recognized ratably over the contractual period. 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 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 In cases where our contracts with customers contain multiple performance obligations, we account for individual performance obligations separately if they are considered distinct. The transaction price is allocated to the separate performance obligations on a relative SSP basis. We determine SSP based on our overall pricing objectives, taking into consideration market conditions and other factors, including the geographic locations of our customers and selling method (i.e., partner or direct). Contract Balances Contract liabilities consist of deferred revenue and include payments received in advance of performance under the contract. Such amounts are recognized as revenue over the contractual period consistent with the above methodology. For the three months ended March 31, 2020 and 2019, we recognized revenue of $83.4 million and $64.6 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. Unbilled receivables include amounts related to our contractual right to consideration for both completed and partially completed performance obligations that have not been invoiced. If the right to consideration is based on satisfaction of another performance obligation in the contract other than the passage of time, we record a contract asset. As of March 31, 2020 and December 31, 2019, unbilled receivables of $1.0 million and $0.8 million, respectively, are included in prepaid expenses and other current assets in our consolidated balance sheet. As of March 31, 2020 and December 31, 2019, we had no contract assets recorded on our consolidated balance sheet. Transaction price allocated to the remaining performance obligations The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied or partially unsatisfied as of March 31, 2020. The estimated revenues do not include unexercised contract renewals. Next Twelve Months Thereafter (in thousands) Subscription revenue $ 176,115 $ 31,250 Term and perpetual software licenses 24,579 13,508 Maintenance and support 19,658 3,010 Professional services 11,609 — The amounts presented in the table above primarily consist of fixed fees, which are typically recognized ratably as the performance obligation is satisfied. The following table summarizes the activity of the deferred contract acquisition and fulfillment costs for the three months ended March 31, 2020 and 2019: Three Months Ended March 31, 2020 2019 (in thousands) Beginning balance $ 51,260 $ 39,955 Capitalization of contract acquisition and fulfillment costs 5,084 4,309 Amortization of deferred contract acquisition and fulfillment costs (4,569) (3,216) Ending balance $ 51,775 $ 41,048

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2020
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 March 31, 2020 Level 1 Level 2 Level 3 Total (in thousands) Description: Assets: Money market funds $ 185,309 $ — $ — $ 185,309 Corporate bonds — 23,579 — 23,579 Commercial paper — 20,009 — 20,009 Agency bonds — 3,101 — 3,101 Asset-backed securities — 2,499 — 2,499 Total assets $ 185,309 $ 49,188 $ — $ 234,497 As of December 31, 2019 Level 1 Level 2 Level 3 Total (in thousands) Description: Assets: Money market funds $ 106,781 $ — $ — $ 106,781 Corporate bonds — 60,878 — 60,878 U.S. government agencies 36,979 — — 36,979 Commercial paper — 19,966 — 19,966 Agency bonds — 12,242 — 12,242 Asset-backed securities — 8,980 — 8,980 Total assets $ 143,760 $ 102,066 $ — $ 245,826 As of March 31, 2020, 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 $278.7 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 March 31, 2020 or December 31, 2019. Our investments, which are all classified as available-for-sale, consisted of the following: As of March 31, 2020 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) Description: Corporate bonds 23,658 22 (101) 23,579 Commercial paper 20,009 — — 20,009 Agency bonds 3,100 1 — 3,101 Asset-backed securities 2,499 — — 2,499 Total assets $ 49,266 $ 23 $ (101) $ 49,188 As of December 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) Description: U.S. government agencies $ 36,880 $ 99 $ — $ 36,979 Corporate bonds 60,803 77 (2) 60,878 Commercial paper 19,965 1 — 19,966 Agency bonds 12,198 44 — 12,242 Asset-backed securities 8,986 1 (7) 8,980 Total assets $ 138,832 $ 222 $ (9) $ 139,045 As of March 31, 2020, our available-for-sale investments had maturities ranging from two

Property and Equipment

Property and Equipment	3 Months Ended
	Mar. 31, 2020
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 March 31, 2020 As of December 31, 2019 (in thousands) Computer equipment and software $ 14,037 $ 13,106 Furniture and fixtures 7,921 7,522 Leasehold improvements 44,320 44,050 Total 66,278 64,678 Less accumulated depreciation (16,203) (14,008) Property and equipment, net $ 50,075 $ 50,670 Depreciation expense was $2.7 million and $1.9 million for the three months ended March 31, 2020 and 2019, respectively.

Goodwill and Intangible Assets

Goodwill and Intangible Assets	3 Months Ended
	Mar. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets	Goodwill and Intangible Assets Goodwill was $97.9 million as of March 31, 2020 and December 31, 2019. The following table presents details of our intangible assets, which include acquired identifiable intangible assets and capitalized internal-use software costs: As of March 31, 2020 As of December 31, 2019 Weighted- Gross Carrying Accumulated Net Book Value Gross Carrying Accumulated Net Book Value (in thousands) Intangible assets subject to amortization: Developed technology 5.4 $ 35,855 $ (17,738) $ 18,117 $ 35,855 $ (16,080) $ 19,775 Customer relationships 6.7 1,000 (673) 327 1,000 (641) 359 Trade names 6.1 519 (519) — 519 (519) — Non-compete agreements 2.0 40 (40) — 40 (40) — Total acquired intangible assets 37,414 (18,970) 18,444 37,414 (17,280) 20,134 Internal-use software 3.0 11,347 (1,924) 9,423 9,873 (1,446) 8,427 Total intangible assets $ 48,761 $ (20,894) $ 27,867 $ 47,287 $ (18,726) $ 28,561 Amortization expense was $2.1 million and $1.6 million for the three months ended March 31, 2020 and 2019, respectively. Estimated future amortization expense of the acquired identifiable intangible assets and completed capitalized internal-use software costs as of March 31, 2020 was as follows (in thousands): 2020 (for the remaining nine months) $ 6,469 2021 7,841 2022 4,970 2023 2,667 2024 304 2025 and thereafter — Total $ 22,251

Deferred Contract Acquisition a

Deferred Contract Acquisition and Fulfillment Costs	3 Months Ended
	Mar. 31, 2020
Revenue from Contract with Customer [Abstract]
Deferred Contract Acquisition and Fulfillment Costs	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, penetration testing and security advisory services. Our deployment services educate and assist our customers on the best use and best practices to deploy our solutions. The following table summarizes revenue from contracts with customers for the three months ended March 31, 2020 and 2019: Three Months Ended March 31, 2020 2019 (in thousands) Subscription revenue $ 68,625 $ 46,969 Term and perpetual software licenses 10,271 8,676 Maintenance and support 8,422 9,557 Professional services 6,791 7,340 Other 231 643 Total revenue $ 94,340 $ 73,185 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 annual or multi-year contractual terms which are billed in advance of the annual subscription period and are 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 annual or multi-year contractual terms which are billed in advance of the annual subscription period and are non-cancellable. • Revenue related to our content subscriptions associated with our software licenses is recognized ratably over the contractual period. 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 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 In cases where our contracts with customers contain multiple performance obligations, we account for individual performance obligations separately if they are considered distinct. The transaction price is allocated to the separate performance obligations on a relative SSP basis. We determine SSP based on our overall pricing objectives, taking into consideration market conditions and other factors, including the geographic locations of our customers and selling method (i.e., partner or direct). Contract Balances Contract liabilities consist of deferred revenue and include payments received in advance of performance under the contract. Such amounts are recognized as revenue over the contractual period consistent with the above methodology. For the three months ended March 31, 2020 and 2019, we recognized revenue of $83.4 million and $64.6 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. Unbilled receivables include amounts related to our contractual right to consideration for both completed and partially completed performance obligations that have not been invoiced. If the right to consideration is based on satisfaction of another performance obligation in the contract other than the passage of time, we record a contract asset. As of March 31, 2020 and December 31, 2019, unbilled receivables of $1.0 million and $0.8 million, respectively, are included in prepaid expenses and other current assets in our consolidated balance sheet. As of March 31, 2020 and December 31, 2019, we had no contract assets recorded on our consolidated balance sheet. Transaction price allocated to the remaining performance obligations The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied or partially unsatisfied as of March 31, 2020. The estimated revenues do not include unexercised contract renewals. Next Twelve Months Thereafter (in thousands) Subscription revenue $ 176,115 $ 31,250 Term and perpetual software licenses 24,579 13,508 Maintenance and support 19,658 3,010 Professional services 11,609 — The amounts presented in the table above primarily consist of fixed fees, which are typically recognized ratably as the performance obligation is satisfied. The following table summarizes the activity of the deferred contract acquisition and fulfillment costs for the three months ended March 31, 2020 and 2019: Three Months Ended March 31, 2020 2019 (in thousands) Beginning balance $ 51,260 $ 39,955 Capitalization of contract acquisition and fulfillment costs 5,084 4,309 Amortization of deferred contract acquisition and fulfillment costs (4,569) (3,216) Ending balance $ 51,775 $ 41,048

Convertible Senior Notes and Ca

Convertible Senior Notes and Capped Calls	3 Months Ended
	Mar. 31, 2020
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 2023 Notes). The 2023 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 2023 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 2023 Notes offering, after deducting initial purchase discounts and estimated debt issuance costs was $223.1 million. The 2023 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 2023 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 2023 Notes may convert their 2023 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 2023 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 2023 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 2023 Notes on each such trading day; (3) if we call any or all of the 2023 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 2023 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. If we undergo a fundamental change (as set forth in the Indenture) at any time prior to the maturity date, holders of the 2023 Notes, will have the right, at their option, to require us to repurchase for cash all or any portion of their 2023 Notes at a repurchase price equal to 100% of the principal amount of the 2023 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 2023 Notes who elects to convert its 2023 Notes in connection with such a corporate event or during the related redemption period in certain circumstances. During the three months ended December 31, 2019, the conversion feature of the 2023 Notes was triggered as the last reported price of our common stock was more than or equal to 130% of the conversion price for at least 20 trading days in the period of 30 consecutive trading days ending on, and including, December 31, 2019, and therefore the 2023 Notes were convertible, in whole or in part, at the option of the holders between January 1, 2020 through March 31, 2020. However, no holders of the 2023 Notes elected to convert their 2023 Notes during the January 1, 2020 through March 31, 2020 period. As of March 31, 2020, the 2023 Notes are not convertible at the option of the holder. We may not redeem the 2023 Notes prior to August 6, 2021. On or after August 6, 2021, we may redeem for cash all or any portion of the 2023 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 2023 Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. The foregoing description is qualified in its entirety by reference to the text of the Indenture and the Form of the 2023 Notes, which were incorporated by reference as Exhibits 4.4 and 4.5 to our Annual Report on Form 10-K for the year ended December 31, 2019, filed with the SEC on February 28, 2020. In accounting for the transaction, the 2023 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 2023 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 2023 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 2023 Notes at an effective interest rate of 7.36%. In accounting for the debt issuance costs of $6.9 million related to the 2023 Notes, we allocated the total amount incurred to the liability and equity components of the 2023 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 2023 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 2023 Notes was as follows: As of March 31, 2020 As of December 31, 2019 (in thousands) Principal $ 230,000 $ 230,000 Unamortized debt discount (38,271) (40,768) Unamortized issuance costs (3,785) (4,032) Net carrying amount $ 187,944 $ 185,200 The net carrying amount of the equity component as March 31, 2020 and December 31, 2019 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 2023 Notes was as follows: Three Months Ended March 31, 2020 2019 (in thousands) Contractual interest expense $ 719 $ 719 Amortization of debt discount 2,496 2,284 Amortization of issuance costs 247 226 Total interest expense $ 3,462 $ 3,229 In connection with the offering of the 2023 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 2023 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 2023 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 2023 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 2023 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	3 Months Ended
	Mar. 31, 2020
Leases [Abstract]
Leases	Leases Our leases primarily relate to office facilities that have remaining terms of up to 9.8 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 6 years. All of our leases are classified as operating leases. The components of lease expense were as follows: Three Months Ended March 31, 2020 2019 (in thousands) Operating lease cost $ 3,371 $ 1,967 Short-term lease costs 290 149 Variable lease costs 922 417 Total lease costs $ 4,583 $ 2,533 Supplemental balance sheet information related to the operating leases was as follows: As of March 31, 2020 As of December 31, 2019 (in thousands, except lease term and discount rate) Operating ROU assets $ 62,942 $ 60,984 Operating lease liabilities, current portion $ 8,866 $ 7,179 Operating lease liabilities, non-current portion 71,586 72,294 Total operating lease liabilities $ 80,452 $ 79,473 Weighted average remaining lease term (in years) - operating leases 8.2 8.7 Weighted average discount rate - operating leases 7.3 % 7.6 % Supplemental cash flow information related to leases was as follows: Three Months Ended Three Months Ended (in thousands) Cash paid for amounts included in the measurement of lease liabilities $ 3,836 $ 1,928 ROU assets obtained in exchange for new lease obligations $ 3,990 $ 1,866 Maturities of operating lease liabilities as of March 31, 2020 were as follows (in thousands): 2020 (for the remaining nine months) $ 10,029 2021 14,871 2022 12,238 2023 11,965 2024 11,249 2025 and thereafter 44,134 Total lease payments $ 104,486 Less: imputed interest (24,034) Total $ 80,452

Stock-Based Compensation Expens

Stock-Based Compensation Expense	3 Months Ended
	Mar. 31, 2020
Share-based Payment Arrangement [Abstract]
Stock-Based Compensation Expense	Stock-Based Compensation Expense (a) General Stock-based compensation expense for restricted stock units, stock options and issuances of common stock pursuant to our employee stock purchase plan was classified in the accompanying consolidated statements of operations as follows: Three Months Ended March 31, 2020 2019 (in thousands) Stock-based compensation expense: Cost of revenue $ 931 $ 573 Research and development 4,645 3,174 Sales and marketing 3,678 2,464 General and administrative 4,093 2,423 Total stock-based compensation expense $ 13,347 $ 8,634 We recognize compensation cost of all awards on a straight-line basis over the applicable vesting period, which is generally four years. In the first quarter of 2020, our Compensation Committee adopted and approved the performance goals, targets and payout formulas for 2020 under our bonus plans, including permitting our executive officers and other employees the opportunity to receive payment of their earned bonuses for fiscal year 2020 in the form of common stock (in lieu of cash). During the three months ended March 31, 2020, we recognized stock-based compensation expense related to such bonuses in the amount of $0.4 million based on the probable expected performance against the pre-established corporate financial objectives as of March 31, 2020. For employees who elected to receive their 2020 bonuses in the form of common stock (in lieu of cash), the payouts are expected to be made in the form of fully vested stock awards in the first quarter of 2021 pursuant to our 2015 Equity Incentive Plan, as amended. The number of shares underlying such awards shall be determined by dividing the dollar value of the actual bonus award payment by the closing price per share of our common stock on the date of grant. (b) Restricted Stock Units Restricted stock unit activity during the three months ended March 31, 2020 was as follows: Shares Weighted-Average Unvested balance as of December 31, 2019 2,936,924 $ 32.43 Granted 1,181,721 59.96 Vested (308,333) 25.87 Forfeited (94,970) 33.72 Unvested balance as of March 31, 2020 3,715,342 $ 41.71 As of March 31, 2020, the unrecognized compensation expense related to our unvested restricted stock units expected to vest was $143.7 million. This unrecognized compensation expense will be recognized over an estimated weighted-average amortization period of 2.8 years. (c) Stock Options Stock option activity during the three months ended March 31, 2020 was as follows: Shares Weighted Weighted Aggregate Outstanding as of December 31, 2019 2,705,458 $ 10.18 Granted — — Exercised (125,432) 12.50 $ 4,519 Forfeited/cancelled (11,250) 12.47 Outstanding as of March 31, 2020 2,568,776 $ 10.06 4.8 $ 85,461 Vested and exercisable as of March 31, 2020 2,255,925 $ 9.34 4.6 $ 76,671 As of March 31, 2020, the unrecognized compensation expense related to our unvested stock options expected to vest was $2.0 million. This unrecognized compensation expense will be recognized over an estimated weighted-average amortization period of 1.0 years. The total fair value of stock options vested in the three months ended March 31, 2020 was $0.7 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, 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. On September 13, 2019, we issued 74,221 shares of common stock to employees for aggregate proceeds of $2.9 million. The purchase prices of the shares were $30.46 and $42.22 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 September 13, 2019 of $49.67, respectively. On March 15, 2020, we issued 101,806 shares of common stock to employees for aggregate proceeds of $3.3 million. The purchase price of the shares was $32.87 per share, which was discounted in accordance with the terms of the ESPP from the closing price of our common stock on March 13, 2020 of $38.67.

Net Loss per Share

Net Loss per Share	3 Months Ended
	Mar. 31, 2020
Earnings Per Share [Abstract]
Net Loss per Share	Net Loss per Share The following table summarizes the computation of basic and diluted net loss per share of our common stock for the three months ended March 31, 2020 and 2019: Three Months Ended March 31, 2020 2019 (in thousands, except share and per share data) Numerator: Net loss $ (22,924) $ (11,673) Denominator: Weighted-average common shares outstanding, basic and diluted 50,127,310 47,827,939 Net loss per share attributable to common stockholders, basic and diluted $ (0.46) $ (0.24) The following potentially dilutive securities outstanding, prior to the use of the treasury stock method or if-converted method, have been excluded from the computation of diluted weighted-average shares outstanding for the respective periods below because they would have been anti-dilutive: Three Months Ended March 31, 2020 2019 Options to purchase common stock 2,568,776 3,465,033 Unvested restricted stock — 5,422 Unvested restricted stock units 3,715,342 3,752,506 Shares to be issued under ESPP 11,522 6,280 Total 6,295,640 7,229,241

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2020
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	3 Months Ended
	Mar. 31, 2020
Segment Reporting [Abstract]
Segment Information and Information about Geographic Areas	Segment Information and Information about Geographic Areas We operate in one segment. Our chief operating decision maker is our Chief Executive Officer, who makes operating decisions, assesses performance and allocates resources on a consolidated basis. Net revenues by geographic area presented based upon the location of the customer were as follows: Three Months Ended March 31, 2020 2019 (in thousands) United States $ 75,837 $ 59,940 Other 18,503 13,245 Total $ 94,340 $ 73,185 Property and equipment, net by geographic area was as follows: As of March 31, 2020 As of December 31, 2019 (in thousands) United States $ 44,424 $ 42,570 Other 5,651 8,100 Total $ 50,075 $ 50,670

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2020
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events Acquisition of Divvy Cloud Corporation On May 1, 2020, we acquired Divvy Cloud Corporation (DivvyCloud), a Cloud Security Posture Management (CSPM) company, for consideration of approximately $130.8 million in cash paid at closing, an aggregate of 200,596 shares of Rapid7’s common stock to be issued to the founders of DivvyCloud in three equal annual installments beginning on the first anniversary of the closing date and $7.4 million in deferred cash payments. We also issued restricted stock units pursuant to our equity incentive plan with an aggregate fair market value of approximately $12.0 million to certain employees of DivvyCloud, subject to vesting conditions. Convertible Senior Notes On May 1, 2020, we issued $230.0 million aggregate principal amount of convertible senior notes due May 1, 2025 (collectively, the 2025 Notes). The total net proceeds from the offering, after deducting initial purchase discounts and estimated debt issuance costs, were approximately $223.2 million. The 2025 Notes are unsecured obligations and bear interest at a fixed rate of 2.25% per annum, payable semi-annually in arrears on May 1 and November 1 of each year, commencing on November 1, 2020. The 2025 Notes will mature on May 1, 2025, unless earlier converted, redeemed or repurchased. The Notes do not contain any financial covenants. The 2025 Notes are governed by an indenture between the Company, as issuer, and U.S. Bank National Association, as trustee (the 2025 Indenture). In connection with the issuance of the 2025 Notes, we entered into capped call transactions with certain counterparties (the Capped Calls). We used $27.3 million of the net proceeds from the 2025 Notes to purchase the Capped Calls. The Capped Calls are expected to offset potential dilution to our common stock upon conversion of the 2025 Notes. The Capped Calls have an initial cap price of $93.88 per share (which initially represents a premium of 100% over the last reported sale price of our common stock on April 28, 2020), subject to certain adjustments. Senior Secured Credit Facility On April 23, 2020, we entered into a Credit and Security Agreement (the Credit Agreement), with KeyBank National Association, as administrative agent, and the lenders party thereto. The Credit Agreement provides for a three

Description of Business, Basi_2

Description of Business, Basis of Presentation and Consolidation and Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2020
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, 2019 filed with the SEC on February 28, 2020. The consolidated financial statements include our results of operations and those of our wholly-owned subsidiaries and reflect all adjustments (consisting solely of normal, recurring adjustments) which are, in the opinion of management, necessary for a fair statement of results for the interim periods presented. All intercompany transactions and balances have been eliminated in consolidation. The results of operations for the three months ended March 31, 2020 are not necessarily indicative of the results to be expected for any future period or the entire fiscal year.
Use of Estimates	Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates, judgments and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Significant items subject to such estimates and assumptions include the determination of the estimated economic life of perpetual licenses for revenue recognition, the determination of standalone selling prices in revenue transactions with multiple performance obligations, the estimated period of benefit for deferred contract acquisition and fulfillment costs, the useful lives of long-lived assets, the valuation of allowance for doubtful accounts, the valuation of stock-based compensation, the valuation of intangible assets acquired in a business combination, the incremental borrowing rate for operating leases and the valuation for deferred tax assets. We base our estimates on historical experience and on various other assumptions that we believe are reasonable. Actual results could differ from those estimates. The COVID-19 pandemic is expected to result in a global slowdown of economic activity that is likely to decrease demand for a broad variety of goods and services, including from our customers. We currently expect our operational and financial performance to be negatively impacted by the slowdown in activity associated with the COVID-19 pandemic for the year ending December 31, 2020 and beyond. Estimates and assumptions about future events and their effects cannot be determined with certainty and therefore require the exercise of judgment. As of the date of issuance of these financial statements, we are not aware of any specific event or circumstance that would require us to update our estimates, assumptions and judgments or revise the carrying value of our assets or liabilities. These estimates may change as new events occur and additional information is obtained and will be recognized in the consolidated financial statements as soon as they become known. Actual results could differ from those estimates and any such differences may be material to our financial statements.
Reclassification	Reclassification Historically, we have presented revenue on our consolidated statement of operations as products, maintenance and support and professional services revenue. For the three months ended March 31, 2020, we have combined products and maintenance and support revenue as products revenue on our consolidated statement of operations as our customers continue to migrate from our on-premise products to our SaaS Insight Platform. Given this continued migration, we believe it is more relevant to categorize maintenance and support revenue together as products revenue. Prior periods have been adjusted to conform with this presentation.
Recent Accounting Pronouncements	Recent Accounting Pronouncements Accounting Pronouncements Recently Adopted In August 2018, the Financial Accounting Standards Board (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. We adopted this standard on January 1, 2020 using the prospective adoption approach. The impact to our consolidated financial statements as a result of the adoption was not material. 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. We adopted this standard on January 1, 2020 and there was no impact to our consolidated financial statements as a result of the adoption. Accounting Pronouncements Not Yet Effective In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes . This standard is intended to simplify various aspects related to accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and clarifying certain aspects of the current guidance to promote consistency among reporting entities. The new standard will be effective for us in the first quarter of 2021, with early adoption permitted. An entity that elects early adoption must adopt all the amendments in the same period. Most amendments within this ASU are required to be applied on a prospective basis, while certain amendments must be applied on a retrospective or modified retrospective basis. The Company is currently assessing the impact of adopting this standard but does not expect the adoption of this guidance to have a material impact on its consolidated financial statements.
Revenue	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, penetration testing and security advisory services. Our deployment services educate and assist our customers on the best use and best practices to deploy our solutions.

Revenue from Contracts with C_2

Revenue from Contracts with Customers (Tables)	3 Months Ended
	Mar. 31, 2020
Revenue from Contract with Customer [Abstract]
Summary of Revenue from Contracts with Customers and Revenue by Region	The following table summarizes revenue from contracts with customers for the three months ended March 31, 2020 and 2019: Three Months Ended March 31, 2020 2019 (in thousands) Subscription revenue $ 68,625 $ 46,969 Term and perpetual software licenses 10,271 8,676 Maintenance and support 8,422 9,557 Professional services 6,791 7,340 Other 231 643 Total revenue $ 94,340 $ 73,185
Summary of Estimated Revenue Expected to be Recognized in Future Related to Performance Obligations	The estimated revenues do not include unexercised contract renewals. Next Twelve Months Thereafter (in thousands) Subscription revenue $ 176,115 $ 31,250 Term and perpetual software licenses 24,579 13,508 Maintenance and support 19,658 3,010 Professional services 11,609 —

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2020
Fair Value Disclosures [Abstract]
Summary of Financial Assets Measured and Recorded 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 March 31, 2020 Level 1 Level 2 Level 3 Total (in thousands) Description: Assets: Money market funds $ 185,309 $ — $ — $ 185,309 Corporate bonds — 23,579 — 23,579 Commercial paper — 20,009 — 20,009 Agency bonds — 3,101 — 3,101 Asset-backed securities — 2,499 — 2,499 Total assets $ 185,309 $ 49,188 $ — $ 234,497 As of December 31, 2019 Level 1 Level 2 Level 3 Total (in thousands) Description: Assets: Money market funds $ 106,781 $ — $ — $ 106,781 Corporate bonds — 60,878 — 60,878 U.S. government agencies 36,979 — — 36,979 Commercial paper — 19,966 — 19,966 Agency bonds — 12,242 — 12,242 Asset-backed securities — 8,980 — 8,980 Total assets $ 143,760 $ 102,066 $ — $ 245,826
Summary of Investments Classified as Available-For-Sale	Our investments, which are all classified as available-for-sale, consisted of the following: As of March 31, 2020 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) Description: Corporate bonds 23,658 22 (101) 23,579 Commercial paper 20,009 — — 20,009 Agency bonds 3,100 1 — 3,101 Asset-backed securities 2,499 — — 2,499 Total assets $ 49,266 $ 23 $ (101) $ 49,188 As of December 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) Description: U.S. government agencies $ 36,880 $ 99 $ — $ 36,979 Corporate bonds 60,803 77 (2) 60,878 Commercial paper 19,965 1 — 19,966 Agency bonds 12,198 44 — 12,242 Asset-backed securities 8,986 1 (7) 8,980 Total assets $ 138,832 $ 222 $ (9) $ 139,045

Property and Equipment (Tables)

Property and Equipment (Tables)	3 Months Ended
	Mar. 31, 2020
Property, Plant and Equipment [Abstract]
Summary of Property and Equipment	Property and equipment are recorded at cost and consist of the following: As of March 31, 2020 As of December 31, 2019 (in thousands) Computer equipment and software $ 14,037 $ 13,106 Furniture and fixtures 7,921 7,522 Leasehold improvements 44,320 44,050 Total 66,278 64,678 Less accumulated depreciation (16,203) (14,008) Property and equipment, net $ 50,075 $ 50,670

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	3 Months Ended
	Mar. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Identifiable Intangible Assets	The following table presents details of our intangible assets, which include acquired identifiable intangible assets and capitalized internal-use software costs: As of March 31, 2020 As of December 31, 2019 Weighted- Gross Carrying Accumulated Net Book Value Gross Carrying Accumulated Net Book Value (in thousands) Intangible assets subject to amortization: Developed technology 5.4 $ 35,855 $ (17,738) $ 18,117 $ 35,855 $ (16,080) $ 19,775 Customer relationships 6.7 1,000 (673) 327 1,000 (641) 359 Trade names 6.1 519 (519) — 519 (519) — Non-compete agreements 2.0 40 (40) — 40 (40) — Total acquired intangible assets 37,414 (18,970) 18,444 37,414 (17,280) 20,134 Internal-use software 3.0 11,347 (1,924) 9,423 9,873 (1,446) 8,427 Total intangible assets $ 48,761 $ (20,894) $ 27,867 $ 47,287 $ (18,726) $ 28,561
Schedule of Estimated Amortization Expense	Estimated future amortization expense of the acquired identifiable intangible assets and completed capitalized internal-use software costs as of March 31, 2020 was as follows (in thousands): 2020 (for the remaining nine months) $ 6,469 2021 7,841 2022 4,970 2023 2,667 2024 304 2025 and thereafter — Total $ 22,251

Deferred Contract Acquisition_2

Deferred Contract Acquisition and Fulfillment Costs (Tables)	3 Months Ended
	Mar. 31, 2020
Revenue from Contract with Customer [Abstract]
Summary of Activity of Deferred Contract Acquisition and Fulfillment Costs	The following table summarizes the activity of the deferred contract acquisition and fulfillment costs for the three months ended March 31, 2020 and 2019: Three Months Ended March 31, 2020 2019 (in thousands) Beginning balance $ 51,260 $ 39,955 Capitalization of contract acquisition and fulfillment costs 5,084 4,309 Amortization of deferred contract acquisition and fulfillment costs (4,569) (3,216) Ending balance $ 51,775 $ 41,048

Convertible Senior Notes and _2

Convertible Senior Notes and Capped Calls (Tables)	3 Months Ended
	Mar. 31, 2020
Debt Disclosure [Abstract]
Schedule of Liability and Equity Components of Convertible Debt	The net carrying amount of the liability component of the 2023 Notes was as follows: As of March 31, 2020 As of December 31, 2019 (in thousands) Principal $ 230,000 $ 230,000 Unamortized debt discount (38,271) (40,768) Unamortized issuance costs (3,785) (4,032) Net carrying amount $ 187,944 $ 185,200 The net carrying amount of the equity component as March 31, 2020 and December 31, 2019 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 2023 Notes was as follows: Three Months Ended March 31, 2020 2019 (in thousands) Contractual interest expense $ 719 $ 719 Amortization of debt discount 2,496 2,284 Amortization of issuance costs 247 226 Total interest expense $ 3,462 $ 3,229 The net impact to our stockholders' equity, included in additional paid-in capital, of the above components of the 2023 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)	3 Months Ended
	Mar. 31, 2020
Leases [Abstract]
Summary of Components of Lease Expense and Supplemental Cash Flow Information Related to Leases	The components of lease expense were as follows: Three Months Ended March 31, 2020 2019 (in thousands) Operating lease cost $ 3,371 $ 1,967 Short-term lease costs 290 149 Variable lease costs 922 417 Total lease costs $ 4,583 $ 2,533 Supplemental cash flow information related to leases was as follows: Three Months Ended Three Months Ended (in thousands) Cash paid for amounts included in the measurement of lease liabilities $ 3,836 $ 1,928 ROU assets obtained in exchange for new lease obligations $ 3,990 $ 1,866
Summary of Supplemental Balance Sheet Information Related to Operating Leases	Supplemental balance sheet information related to the operating leases was as follows: As of March 31, 2020 As of December 31, 2019 (in thousands, except lease term and discount rate) Operating ROU assets $ 62,942 $ 60,984 Operating lease liabilities, current portion $ 8,866 $ 7,179 Operating lease liabilities, non-current portion 71,586 72,294 Total operating lease liabilities $ 80,452 $ 79,473 Weighted average remaining lease term (in years) - operating leases 8.2 8.7 Weighted average discount rate - operating leases 7.3 % 7.6 %
Summary of Maturities of Operating Lease Liabilities and Future Minimum Payments under Non-cancellable Leases	Maturities of operating lease liabilities as of March 31, 2020 were as follows (in thousands): 2020 (for the remaining nine months) $ 10,029 2021 14,871 2022 12,238 2023 11,965 2024 11,249 2025 and thereafter 44,134 Total lease payments $ 104,486 Less: imputed interest (24,034) Total $ 80,452

Stock-Based Compensation Expe_2

Stock-Based Compensation Expense (Tables)	3 Months Ended
	Mar. 31, 2020
Share-based Payment Arrangement [Abstract]
Schedule of Stock-Based Compensation Expense	Stock-based compensation expense for restricted stock units, stock options and issuances of common stock pursuant to our employee stock purchase plan was classified in the accompanying consolidated statements of operations as follows: Three Months Ended March 31, 2020 2019 (in thousands) Stock-based compensation expense: Cost of revenue $ 931 $ 573 Research and development 4,645 3,174 Sales and marketing 3,678 2,464 General and administrative 4,093 2,423 Total stock-based compensation expense $ 13,347 $ 8,634
Summary of Restricted Stock and Restricted Stock Unit Activity	Restricted stock unit activity during the three months ended March 31, 2020 was as follows: Shares Weighted-Average Unvested balance as of December 31, 2019 2,936,924 $ 32.43 Granted 1,181,721 59.96 Vested (308,333) 25.87 Forfeited (94,970) 33.72 Unvested balance as of March 31, 2020 3,715,342 $ 41.71
Summary of Stock Option Activity	Stock option activity during the three months ended March 31, 2020 was as follows: Shares Weighted Weighted Aggregate Outstanding as of December 31, 2019 2,705,458 $ 10.18 Granted — — Exercised (125,432) 12.50 $ 4,519 Forfeited/cancelled (11,250) 12.47 Outstanding as of March 31, 2020 2,568,776 $ 10.06 4.8 $ 85,461 Vested and exercisable as of March 31, 2020 2,255,925 $ 9.34 4.6 $ 76,671

Net Loss per Share (Tables)

Net Loss per Share (Tables)	3 Months Ended
	Mar. 31, 2020
Earnings Per Share [Abstract]
Summary of Basic and Diluted Net Loss Per Share of Common Stock	The following table summarizes the computation of basic and diluted net loss per share of our common stock for the three months ended March 31, 2020 and 2019: Three Months Ended March 31, 2020 2019 (in thousands, except share and per share data) Numerator: Net loss $ (22,924) $ (11,673) Denominator: Weighted-average common shares outstanding, basic and diluted 50,127,310 47,827,939 Net loss per share attributable to common stockholders, basic and diluted $ (0.46) $ (0.24)
Anti-Dilutive Securities Excluded from Computation Diluted Weighted Average Shares Outstanding	The following potentially dilutive securities outstanding, prior to the use of the treasury stock method or if-converted method, have been excluded from the computation of diluted weighted-average shares outstanding for the respective periods below because they would have been anti-dilutive: Three Months Ended March 31, 2020 2019 Options to purchase common stock 2,568,776 3,465,033 Unvested restricted stock — 5,422 Unvested restricted stock units 3,715,342 3,752,506 Shares to be issued under ESPP 11,522 6,280 Total 6,295,640 7,229,241

Segment Information and Infor_2

Segment Information and Information about Geographic Areas (Tables)	3 Months Ended
	Mar. 31, 2020
Segment Reporting [Abstract]
Net Revenues of Customer by Geographic Area	Net revenues by geographic area presented based upon the location of the customer were as follows: Three Months Ended March 31, 2020 2019 (in thousands) United States $ 75,837 $ 59,940 Other 18,503 13,245 Total $ 94,340 $ 73,185
Property and Equipment, Net By Geographic Area	Property and equipment, net by geographic area was as follows: As of March 31, 2020 As of December 31, 2019 (in thousands) United States $ 44,424 $ 42,570 Other 5,651 8,100 Total $ 50,075 $ 50,670

Revenue from Contracts with C_3

Revenue from Contracts with Customers - Summary of Revenue from Contracts with Customers and Revenue by Region (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Disaggregation of Revenue [Line Items]
Total revenue	$ 94,340	$ 73,185
Subscription Revenue [Member]
Disaggregation of Revenue [Line Items]
Total revenue	68,625	46,969
Term and Perpetual Software Licenses [Member]
Disaggregation of Revenue [Line Items]
Total revenue	10,271	8,676
Maintenance and Support [Member]
Disaggregation of Revenue [Line Items]
Total revenue	8,422	9,557
Professional Services [Member]
Disaggregation of Revenue [Line Items]
Total revenue	6,791	7,340
Other [Member]
Disaggregation of Revenue [Line Items]
Total revenue	$ 231	$ 643

Revenue from Contracts with C_4

Revenue from Contracts with Customers - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue recognized	$ 83.4	$ 64.6
Contract assets	$ 1		$ 0.8
Term and Perpetual Software Licenses [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] | 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 - Summary of Estimated Revenue Expected to be Recognized in Future Related to Performance Obligations (Details) $ in Thousands	Mar. 31, 2020USD ($)
Subscription Revenue [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 176,115
Expected timing of satisfaction, period	12 months
Subscription Revenue [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 31,250
Expected timing of satisfaction, period
Term and Perpetual Software Licenses [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 24,579
Expected timing of satisfaction, period	12 months
Term and Perpetual Software Licenses [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 13,508
Expected timing of satisfaction, period
Maintenance and Support [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 19,658
Expected timing of satisfaction, period	12 months
Maintenance and Support [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 3,010
Expected timing of satisfaction, period
Professional Services [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 11,609
Expected timing of satisfaction, period	12 months
Professional Services [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 0
Expected timing of satisfaction, period

Fair Value Measurements - Summa

Fair Value Measurements - Summary of Financial Assets Measured and Recorded at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	$ 49,188	$ 139,045
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	$ 278,700
Fair Value, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	234,497	245,826
Level 1 [Member] | Fair Value, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	185,309	143,760
Level 2 [Member] | Fair Value, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	49,188	102,066
Level 3 [Member] | Fair Value, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	0	0
Corporate Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	23,579	60,878
Corporate Bonds [Member] | Fair Value, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	23,579	60,878
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	23,579	60,878
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
U.S. Government Agencies [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities		36,979
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		36,979
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		36,979
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
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
Commercial Paper [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	20,009	19,966
Commercial Paper [Member] | Fair Value, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	20,009	19,966
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	20,009	19,966
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
Agency Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	3,101	12,242
Agency Bonds [Member] | Fair Value, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	3,101	12,242
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	3,101	12,242
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	2,499	8,980
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	2,499	8,980
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	2,499	8,980
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	185,309	106,781
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	185,309	106,781
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 - Sum_2

Fair Value Measurements - Summary of Investments Classified as Available-For-Sale (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 49,266	$ 138,832
Gross Unrealized Gains	23	222
Gross Unrealized Losses	(101)	(9)
Fair Value	$ 49,188	$ 139,045
Minimum [Member]
Debt Securities, Available-for-sale [Line Items]
Remaining maturity	2 months	3 months
Maximum [Member]
Debt Securities, Available-for-sale [Line Items]
Remaining maturity	19 months	2 years
U.S. Government Agencies [Member]
Debt Securities, Available-for-sale [Line Items]
Amortized Cost		$ 36,880
Gross Unrealized Gains		99
Gross Unrealized Losses		0
Fair Value		36,979
Corporate Bonds [Member]
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 23,658	60,803
Gross Unrealized Gains	22	77
Gross Unrealized Losses	(101)	(2)
Fair Value	23,579	60,878
Commercial Paper [Member]
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	20,009	19,965
Gross Unrealized Gains	0	1
Gross Unrealized Losses	0	0
Fair Value	20,009	19,966
Agency Bonds [Member]
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	3,100	12,198
Gross Unrealized Gains	1	44
Gross Unrealized Losses	0	0
Fair Value	3,101	12,242
Asset-backed Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	2,499	8,986
Gross Unrealized Gains	0	1
Gross Unrealized Losses	0	(7)
Fair Value	$ 2,499	$ 8,980

Property and Equipment - Summar

Property and Equipment - Summary of Property and Equipment (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 66,278	$ 64,678
Less accumulated depreciation	(16,203)	(14,008)
Property and equipment, net	50,075	50,670
Computer Equipment and Software [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	14,037	13,106
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	7,921	7,522
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 44,320	$ 44,050

Property and Equipment - Additi

Property and Equipment - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 2.7	$ 1.9

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	$ 97,866		$ 97,866
Amortization expense	2,100	$ 1,600
Capitalized internal-use software costs for works in process	$ 5,600

Goodwill and Intangible Asset_3

Goodwill and Intangible Assets - Schedule of Identifiable Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Finite-Lived Intangible Assets [Line Items]
Total intangible assets, Gross Carrying Amount	$ 48,761	$ 47,287
Accumulated Amortization	(20,894)	(18,726)
Total	22,251
Total intangible assets, Net Book Value	27,867	28,561
Total acquired intangible assets, Gross Carrying Amount	37,414	37,414
Total acquired intangible assets, Accumulated Amortization	(18,970)	(17,280)
Acquired Intangible Assets, Net Book Value	$ 18,444	20,134
Developed Technology [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets, Weighted-Average Life (years)	5 years 4 months 24 days
Gross Carrying Amount	$ 35,855	35,855
Accumulated Amortization	(17,738)	(16,080)
Total	$ 18,117	19,775
Customer Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets, Weighted-Average Life (years)	6 years 8 months 12 days
Gross Carrying Amount	$ 1,000	1,000
Accumulated Amortization	(673)	(641)
Total	$ 327	359
Trade Names [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets, Weighted-Average Life (years)	6 years 1 month 6 days
Gross Carrying Amount	$ 519	519
Accumulated Amortization	(519)	(519)
Total	$ 0	0
Non-compete Agreements [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets, Weighted-Average Life (years)	2 years
Gross Carrying Amount	$ 40	40
Accumulated Amortization	(40)	(40)
Total	$ 0	0
Internal-use Software [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets, Weighted-Average Life (years)	3 years
Gross Carrying Amount	$ 11,347	9,873
Accumulated Amortization	(1,924)	(1,446)
Total	$ 9,423	$ 8,427

Goodwill and Intangible Asset_4

Goodwill and Intangible Assets - Schedule of Estimated Amortization Expense (Details) $ in Thousands	Mar. 31, 2020USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2020	$ 6,469
2021	7,841
2022	4,970
2023	2,667
2024	304
2025	0
Total	$ 22,251

Deferred Contract Acquisition_3

Deferred Contract Acquisition and Fulfillment Costs (Details) - Contract Acquisition and Fulfillment Costs [Member] - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Capitalized Contract Costs [Roll Forward]
Beginning balance	$ 51,260	$ 39,955
Capitalization of contract acquisition and fulfillment costs	5,084	4,309
Amortization of deferred contract acquisition and fulfillment costs	(4,569)	(3,216)
Ending balance	$ 51,775	$ 41,048

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
	Aug. 31, 2018USD ($)day$ / sharesshares	Mar. 31, 2020USD ($)$ / shares	Dec. 31, 2019USD ($)
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, Due 2023 [Member] | Convertible Debt [Member]
Debt Instrument [Line Items]
Face amount	$ 200,000,000
Interest rate		1.25%
The Notes, Over-allotment Options [Member] | Convertible Debt [Member]
Debt Instrument [Line Items]
Face amount	30,000,000
The Notes [Member]
Debt Instrument [Line Items]
Strike price (in dollars per share) | $ / shares		$ 41.59
Equity component of convertible debt, subsequent adjustments	$ 26,910,000
The Notes [Member] | Convertible Debt [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
Carrying amount of equity component	$ 53,800,000	$ 52,194,000	$ 52,194,000
Converted instrument, rate	7.36%
Debt issuance costs, net	$ 6,900,000	$ 3,785,000	$ 4,032,000
Liability component	5,300,000
Issuance costs of equity component	$ 1,600,000
The Notes [Member] | Convertible Debt [Member] | Debt Covenant One [Member]
Debt Instrument [Line Items]
Threshold trading days | day	20
Threshold consecutive trading days | day	30
Threshold percentage of stock price trigger	130.00%
The Notes [Member] | Convertible Debt [Member] | Debt Covenant Two [Member]
Debt Instrument [Line Items]
Threshold trading days | day	5
Threshold percentage of stock price trigger	98.00%
The Notes [Member] | Convertible Debt [Member] | Debt Covenant Three [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	Mar. 31, 2020	Dec. 31, 2019	Aug. 31, 2018
Debt Instrument [Line Items]
Principal	$ 230,000	$ 230,000
Unamortized debt discount	(38,271)	(40,768)
Unamortized issuance costs	(3,785)	(4,032)	$ (6,900)
Net carrying amount	$ 187,944	$ 185,200

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	Mar. 31, 2020	Dec. 31, 2019	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
	Mar. 31, 2020	Mar. 31, 2019
Debt Instrument [Line Items]
Contractual interest expense	$ 719	$ 719
Amortization of debt discount	2,496	2,284
Amortization of issuance costs	247	226
Total interest expense	$ 3,462	$ 3,229

Convertible Senior Notes and _7

Convertible Senior Notes and Capped Calls - Impact to Shareholders' Equity (Details) - The Notes [Member] $ 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)	3 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Lessee, Lease, Description [Line Items]
Lease term	8 years 2 months 12 days	8 years 8 months 12 days
Renewal term	5 years
Termination period	6 years
Office Building [Member]
Lessee, Lease, Description [Line Items]
Lease term	9 years 9 months 18 days

Leases - Summary of Components

Leases - Summary of Components of Lease Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Leases [Abstract]
Operating lease cost	$ 3,371	$ 1,967
Short-term lease costs	290	149
Variable lease costs	922	417
Total lease costs	$ 4,583	$ 2,533

Leases - Summary of Supplementa

Leases - Summary of Supplemental Balance Sheet Information Related to Operating Leases (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Leases [Abstract]
Operating ROU assets	$ 62,942	$ 60,984
Operating lease liabilities, current portion	8,866	7,179
Operating lease liabilities, non-current portion	71,586	72,294
Total operating lease liabilities	$ 80,452	$ 79,473
Weighted average remaining lease term (in years) - operating leases	8 years 2 months 12 days	8 years 8 months 12 days
Weighted average discount rate - operating leases	7.30%	7.60%

Leases - Summary of Supplemen_2

Leases - Summary of Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Leases [Abstract]
Cash paid for amounts included in the measurement of lease liabilities	$ 3,836	$ 1,928
ROU assets obtained in exchange for new lease obligations	$ 3,990	$ 1,866

Leases - Summary of Maturities

Leases - Summary of Maturities of Operating Lease Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Leases [Abstract]
2020	$ 10,029
2021	14,871
2022	12,238
2023	11,965
2024	11,249
2025	44,134
Total lease payments	104,486
Less: imputed interest	(24,034)
Total	$ 80,452	$ 79,473

Stock-Based Compensation Expe_3

Stock-Based Compensation Expense - Schedule of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	$ 13,347	$ 8,634
Cost of Revenue [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	931	573
Research and Development [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	4,645	3,174
Sales and Marketing [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	3,678	2,464
General and Administrative [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	$ 4,093	$ 2,423

Stock-Based Compensation Expe_4

Stock-Based Compensation Expense - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands	Mar. 15, 2020	Sep. 13, 2019	Mar. 15, 2019	Mar. 31, 2020	Mar. 31, 2019	Mar. 13, 2020	Sep. 17, 2018	Mar. 16, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period				4 years
Share-based payment arrangement, expense				$ 13,347	$ 8,634
Purchase price of common stock by employees				85.00%
Issuance of common stock under employee stock purchase plan				$ 3,346	$ 2,634
Employee Stock Purchase Plan [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee withholding percentage				15.00%
2020 Bonus Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based payment arrangement, expense				$ 400
Restricted Stock and Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense				$ 143,700
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
Unrecognized compensation cost, stock options				$ 2,000
Stock options vested, fair value				$ 700
Employee Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock issued to employees (in shares)	101,806	74,221	110,822
Issuance of common stock under employee stock purchase plan	$ 3,300	$ 2,900	$ 2,600
Share issued, price per share (in dollars per share)	$ 32.87	$ 42.22					$ 30.46	$ 21.96
Closing price of shares issued (in dollars per share)		$ 49.67				$ 38.67	$ 35.84	$ 25.84

Stock-Based Compensation Expe_5

Stock-Based Compensation Expense - Summary of Restricted Stock and Restricted Stock Unit Activity (Details) - Restricted Stock Units (RSUs) [Member]	3 Months Ended
	Mar. 31, 2020$ / sharesshares
Shares
Unvested balance, Beginning balance (in shares) | shares	2,936,924
Granted (in shares) | shares	1,181,721
Vested (in shares) | shares	(308,333)
Forfeited (in shares) | shares	(94,970)
Unvested balance, Ending balance (in shares) | shares	3,715,342
Weighted-Average Grant Date Fair Value
Unvested balance, Beginning balance (in dollars per share) | $ / shares	$ 32.43
Granted (in dollars per share) | $ / shares	59.96
Vested (in dollars per share) | $ / shares	25.87
Forfeited (in dollars per share) | $ / shares	33.72
Unvested balance, Ending Balance (in dollars per share) | $ / shares	$ 41.71

Stock-Based Compensation Expe_6

Stock-Based Compensation Expense - Summary of Stock Option Activity (Details) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2020USD ($)$ / sharesshares
Shares
Outstanding, Beginning balance (in shares) | shares	2,705,458
Granted (in shares) | shares	0
Exercised (in shares) | shares	(125,432)
Forfeited/canceled (in shares) | shares	(11,250)
Outstanding, Ending balance (in shares) | shares	2,568,776
Vested and exercisable (in shares) | shares	2,255,925
Weighted Average Exercise Price
Outstanding, Beginning balance (in dollars per share) | $ / shares	$ 10.18
Granted (in dollars per share) | $ / shares	0
Exercised (in dollars per share) | $ / shares	12.50
Forfeited/canceled (in dollars per share) | $ / shares	12.47
Outstanding, Ending balance (in dollars per share) | $ / shares	10.06
Vested and exercisable (in dollars per share) | $ / shares	$ 9.34
Weighted Average Remaining Contractual Life (in years)
Outstanding	4 years 9 months 18 days
Vested and exercisable	4 years 7 months 6 days
Aggregate Intrinsic Value
Exercised | $	$ 4,519
Outstanding | $	85,461
Vested and exercisable | $	$ 76,671

Net Loss per Share - Summary of

Net Loss per Share - Summary of Basic and Diluted Net Loss Per Share of Common Stock (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Numerator:
Net loss	$ (22,924)	$ (11,673)
Denominator:
Weighted-average common shares outstanding, basic and diluted (in shares)	50,127,310	47,827,939
Net loss per share attributable to common stockholders, basic and diluted (in dollars per share)	$ (0.46)	$ (0.24)

Net Loss per Share - Summary _2

Net Loss per Share - Summary of Antidilutive Securities Excluded From Computation Diluted Weighted Average Shares Outstanding (Details) - $ / shares	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
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)	6,295,640	7,229,241
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	5,422
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)	3,715,342	3,752,506
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)	11,522	6,280
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)	2,568,776	3,465,033

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 (Details)	3 Months Ended
	Mar. 31, 2020Segment
Segment Reporting [Abstract]
Number of operating segments	1

Segment Information and Infor_4

Segment Information and Information about Geographic Areas - Net Revenues of Customer by Geographic Area (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Entity Wide Portfolio Carrying Amount, Major Customer [Line Items]
Net revenues, Total	$ 94,340	$ 73,185
North America [Member]
Entity Wide Portfolio Carrying Amount, Major Customer [Line Items]
Net revenues, Total	75,837	59,940
Other [Member]
Entity Wide Portfolio Carrying Amount, Major Customer [Line Items]
Net revenues, Total	$ 18,503	$ 13,245

Segment Information and Infor_5

Segment Information and Information about Geographic Areas - Property and Equipment, Net By Geographic Area (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Revenues from External Customers and Long-Lived Assets [Line Items]
Property and equipment, net, Total	$ 50,075	$ 50,670
United States [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Property and equipment, net, Total	44,424	42,570
Other [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Property and equipment, net, Total	$ 5,651	$ 8,100

Subsequent Events - Narrative (

Subsequent Events - Narrative (Details)	May 01, 2020USD ($)installment$ / sharesshares	Apr. 23, 2020USD ($)	Aug. 31, 2018$ / shares	Mar. 31, 2020USD ($)	May 08, 2020USD ($)
Call Option [Member]
Subsequent Event [Line Items]
Equity component of convertible debt, subsequent adjustments				$ 26,900,000
Cap price (in dollars per share) | $ / shares			$ 63.98
Subsequent Event [Member] | Letter of Credit [Member]
Subsequent Event [Line Items]
Maximum borrowing capacity		$ 15,000,000
Subsequent Event [Member] | Revolving Credit Facility [Member]
Subsequent Event [Line Items]
Long-term debt, term		3 years
Current borrowing capacity		$ 30,000,000
Maximum borrowing capacity		$ 70,000,000
Basis spread on variable rate		2.50%
Commitment fee percentage		0.20%
Long-term line of credit					$ 0
Subsequent Event [Member] | Revolving Credit Facility [Member] | Minimum [Member]
Subsequent Event [Line Items]
Basis spread on variable rate		1.00%
Subsequent Event [Member] | Convertible Debt [Member]
Subsequent Event [Line Items]
Face amount	$ 230,000,000
Proceeds from convertible debt	$ 223,200,000
Interest rate	2.25%
Subsequent Event [Member] | Convertible Debt [Member] | Call Option [Member]
Subsequent Event [Line Items]
Equity component of convertible debt, subsequent adjustments	$ 27,300,000
Cap price (in dollars per share) | $ / shares	$ 93.88
Premium over stock price	100.00%
Subsequent Event [Member] | DivvyCloud [Member]
Subsequent Event [Line Items]
Payments to acquire businesses, net	$ 130,800,000
Equity awards granted to certain retained employees (in shares) | shares	200,596
Number of installments | installment	3
Contingent consideration, liability	$ 7,400,000
Restricted stock granted, fair value	$ 12,000,000