Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | May 01, 2017 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | RAPID7, INC. | |
Entity Central Index Key | 1,560,327 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Trading Symbol | RPD | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 42,858,692 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 50,662 | $ 53,148 |
Short-term investments | 28,561 | 18,779 |
Accounts receivable, net of allowance for doubtful accounts of $1,130 and $1,061 at March 31, 2017 and December 31, 2016, respectively | 33,703 | 49,154 |
Prepaid expenses and other current assets | 7,742 | 9,152 |
Total current assets | 120,668 | 130,233 |
Long-term investments | 16,803 | 20,162 |
Property and equipment, net | 8,010 | 8,088 |
Goodwill | 75,110 | 75,110 |
Intangible assets, net | 8,460 | 8,946 |
Other assets | 720 | 764 |
Total assets | 229,771 | 243,303 |
Current liabilities: | ||
Accounts payable | 3,495 | 4,012 |
Accrued expenses | 16,346 | 23,499 |
Deferred revenue, current portion | 116,564 | 116,903 |
Other current liabilities | 1,239 | 1,195 |
Total current liabilities | 137,644 | 145,609 |
Deferred revenue, non-current portion | 51,083 | 52,160 |
Other long-term liabilities | 3,187 | 3,496 |
Total liabilities | 191,914 | 201,265 |
Stockholders’ equity: | ||
Preferred stock, $0.01 par value per share; 10,000,000 shares authorized at March 31, 2017 and December 31, 2016; 0 shares issued at March 31, 2017 and December 31, 2016 | 0 | 0 |
Common stock, $0.01 par value per share; 100,000,000 shares authorized at March 31, 2017 and December 31, 2016; 43,309,925 and 43,018,737 shares issued at March 31, 2017 and December 31, 2016, respectively; 42,840,896 and 42,554,683 shares outstanding at March 31, 2017 and December 31, 2016, respectively | 428 | 426 |
Treasury stock, at cost, 469,029 and 464,054 shares at March 31, 2017 and December 31, 2016, respectively | (4,457) | (4,391) |
Additional paid-in-capital | 441,913 | 435,360 |
Accumulated other comprehensive loss | (39) | (19) |
Accumulated deficit | (399,988) | (389,338) |
Total stockholders’ equity | 37,857 | 42,038 |
Total liabilities and stockholders’ equity | $ 229,771 | $ 243,303 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Net of allowance for doubtful accounts | $ 1,130 | $ 1,061 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 43,309,925 | 43,018,737 |
Common stock, shares outstanding | 42,840,896 | 42,554,683 |
Treasury stock, shares | 469,029 | 464,054 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Revenue: | ||
Products | $ 25,942 | $ 20,145 |
Maintenance and support | 10,802 | 8,381 |
Professional services | 8,501 | 6,270 |
Total revenue | 45,245 | 34,796 |
Cost of revenue: | ||
Products | 4,710 | 2,598 |
Maintenance and support | 1,878 | 1,681 |
Professional services | 5,676 | 4,433 |
Total cost of revenue | 12,264 | 8,712 |
Total gross profit | 32,981 | 26,084 |
Operating expenses: | ||
Research and development | 11,393 | 12,342 |
Sales and marketing | 24,810 | 22,768 |
General and administrative | 7,248 | 6,593 |
Total operating expenses | 43,451 | 41,703 |
Loss from operations | (10,470) | (15,619) |
Other income (expense), net: | ||
Interest income (expense), net | 169 | (15) |
Other income (expense), net | (115) | 196 |
Loss before income taxes | (10,416) | (15,438) |
Provision for income taxes | 129 | 142 |
Net loss | $ (10,545) | $ (15,580) |
Net loss per share, basic and diluted (in dollars per share) | $ (0.25) | $ (0.38) |
Weighted-average common shares outstanding, basic and diluted | 42,016,831 | 40,547,669 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (10,545) | $ (15,580) |
Other comprehensive loss: | ||
Comprehensive loss | (20) | 0 |
Comprehensive loss | $ (10,565) | $ (15,580) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Cash flows from operating activities: | ||
Net loss | $ (10,545) | $ (15,580) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 1,624 | 1,711 |
Stock-based compensation expense | 4,279 | 5,519 |
Provision for doubtful accounts | 316 | 124 |
Foreign currency re-measurement loss (gain) | 44 | (223) |
Other non-cash expenses | 97 | 78 |
Changes in assets and liabilities: | ||
Accounts receivable | 15,182 | 14,048 |
Prepaid expenses and other assets | 1,466 | (716) |
Accounts payable | (244) | (500) |
Accrued expenses | (7,216) | (7,427) |
Deferred revenue | (1,416) | 1,540 |
Other liabilities | (266) | (166) |
Net cash provided by (used in) operating activities | 3,321 | (1,592) |
Cash flows from investing activities: | ||
Purchases of property and equipment | (1,335) | (1,092) |
Purchases of investments | (7,401) | 0 |
Maturities of investments | 900 | 0 |
Net cash used in investing activities | (7,836) | (1,092) |
Cash flows from financing activities: | ||
Payments of capital lease obligations | 0 | (68) |
Taxes paid related to net share settlement of equity awards | (169) | (3,087) |
Proceeds from employee stock purchase plan | 1,499 | 2,096 |
Proceeds from stock option exercises | 775 | 547 |
Net cash provided by (used in) financing activities | 2,105 | (512) |
Effect of exchange rate changes on cash and cash equivalents | (76) | 151 |
Net decrease in cash and cash equivalents | (2,486) | (3,045) |
Cash and cash equivalents, beginning of period | 53,148 | 86,553 |
Cash and cash equivalents, end of period | 50,662 | 83,508 |
Supplemental cash flow information: | ||
Cash paid for income taxes | 65 | 274 |
Cash paid for interest | $ 0 | $ 1 |
Description of Business, Basis
Description of Business, Basis of Presentation and Consolidation and Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2017 | |
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 a leading provider of analytics for security and IT operations solutions that enable organizations to implement an active, analytics-driven approach to cyber security and IT operations. 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, 2016 filed with the SEC on March 9, 2017. 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, 2017 are not necessarily indicative of the results to be expected for any future period or the entire fiscal year. Recent Accounting Pronouncements In October 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory . The ASU is intended to improve the accounting for the income tax consequences of intra-entity transfers of assets other than inventory. Current GAAP prohibits the recognition of current and deferred income taxes for an intra-entity asset transfer until the asset has been sold to an outside party. The ASU will allow an entity to recognize the income tax consequences of these transfers when the transfers occur. The ASU will be effective for us in the first quarter of 2018. We are currently evaluating the impact that the adoption of this ASU will have on our consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The ASU is intended to simplify several aspects of the accounting for share-based payment transactions, including the accounting for income taxes, forfeitures and statutory tax withholding requirements, as well as classification on the statement of cash flows. We adopted this ASU on January 1, 2017 and as a result, we have made an accounting policy election to account for forfeitures as they occur. This change has been applied on a modified retrospective basis, resulting in a cumulative-effect adjustment to increase accumulated deficit by $0.1 million as of January 1, 2017. The adoption of this ASU also requires excess tax benefits and tax deficiencies be recorded in the income statement as opposed to additional paid-in capital when the awards vest or are settled, and has been applied on a prospective basis. In connection with the adoption of this ASU, we recorded a cumulative-effect adjustment as of January 1, 2017 to increase gross deferred tax assets and the related valuation allowance against deferred tax assets by $3.4 million . The provisions related to classification of excess tax benefits in the statement of cash flows were adopted prospectively, and as such, the prior periods were not retrospectively adjusted. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . The ASU requires companies to recognize on the balance sheet the assets and liabilities for the rights and obligations created by leased assets. The ASU will be effective for us in the first quarter of 2019, with early adoption permitted. We are currently evaluating the impact that the adoption of this ASU will have on our consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) . The ASU outlines a single, comprehensive model for accounting for revenue from contracts with customers and requires more detailed disclosure to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from such contracts. In August 2015, the FASB issued ASU 2015-14, which provides a one year deferral in the effective date of ASU 2014-09. ASU 2014-09 will now be effective for us beginning January 1, 2018; however, early adoption will be permitted as of the original effective date. We plan to adopt ASU 2014-09 in the first quarter of 2018 and expect to adopt on a modified retrospective basis. Under this method of adoption, we would recognize the cumulative effect of initially applying the standard as an adjustment to the opening balance of retained earnings in the period of initial application. Comparative prior year periods would not be adjusted. We are currently evaluating the potential impact of this standard on our financial position and results of operations. Based on our analysis performed to date, we expect recognition of total revenue related to our perpetual and term software licenses, managed services, cloud-based subscriptions and stand-alone professional services to remain substantially unchanged. However, under the new standard, for software licenses that are sold with professional services in a multiple-element arrangement, the professional services will likely represent a separate performance obligation and we will recognize revenue associated with the professional services as such services are performed. Revenue associated with professional services in a multiple-element arrangement is currently recognized ratably over the related contractual period of maintenance and support (typically one to three years) due to the lack of vendor-specific objective evidence (VSOE) of selling price for the contractual elements. In addition, under the new standard, we expect the allocation of contract consideration for multiple-element arrangements to be on a relative fair value basis which may impact the presentation of revenue by class. Additionally, under the new standard, we expect to capitalize direct and incremental certain commission costs to obtain a contract and amortize such costs over the customer's estimated economic life rather than expensing them as incurred in the period that the commissions are earned by our employees (which is typically upon signing of an arrangement). |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2017 | |
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 consider an inactive market to be one in which there are infrequent or few transactions for the asset or liability, the prices are not current, or price quotations vary substantially either over time or among market makers. The following table presents our financial assets and liabilities measured and recorded at fair value on a recurring basis using the above input categories: As of March 31, 2017 Level 1 Level 2 Level 3 Total (in thousands) Description: Assets: Money market funds $ 4,632 $ — $ — $ 4,632 U.S. Government agencies 14,973 — — 14,973 Commercial paper — 6,295 — 6,295 Corporate bonds — 17,686 — 17,686 Asset-backed securities — 6,410 — 6,410 Total assets $ 19,605 $ 30,391 $ — $ 49,996 As of December 31, 2016 Level 1 Level 2 Level 3 Total (in thousands) Description: Assets: Money market funds $ 10,085 $ — $ — $ 10,085 U.S. Government agencies 14,982 — — 14,982 Commercial paper — 8,078 — 8,078 Corporate bonds — 10,314 — 10,314 Asset-backed securities — 6,467 — 6,467 Total assets $ 25,067 $ 24,859 $ — $ 49,926 We had no liabilities measured and recorded at fair value on a recurring basis as of March 31, 2017 or December 31, 2016 . Our investments, which are all classified as available-for-sale, consisted of the following: As of March 31, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) Description: U.S. Government agencies $ 14,993 $ — $ (20 ) $ 14,973 Commercial paper 6,295 — — 6,295 Corporate bonds 17,701 4 (19 ) 17,686 Asset-backed securities 6,414 — (4 ) 6,410 Total assets $ 45,403 $ 4 $ (43 ) $ 45,364 As of December 31, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) Description: U.S. Government agencies $ 14,992 $ 3 $ (13 ) $ 14,982 Commercial paper 7,178 — — 7,178 Corporate bonds 10,326 1 (13 ) 10,314 Asset-backed securities 6,464 4 (1 ) 6,467 Total assets $ 38,960 $ 8 $ (27 ) $ 38,941 For all of our investments for which the amortized cost basis was greater than the fair value at March 31, 2017 and December 31, 2016 , we have concluded that there is no plan to sell the security nor is it more likely than not that we would be required to sell the security before its anticipated recovery. In making the determination as to whether the unrealized loss is other-than-temporary, we considered the length of time and extent the investment has been in an unrealized loss position, the financial condition and near-term prospects of the issuers, the issuers’ credit rating and the time to maturity. |
Property and Equipment
Property and Equipment | 3 Months Ended |
Mar. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment are recorded at cost and consist of the following: As of As of (in thousands) Computer equipment and software $ 13,268 $ 12,844 Furniture and fixtures 3,287 3,131 Leasehold improvements 8,557 8,077 Total 25,112 24,052 Less accumulated depreciation (17,102 ) (15,964 ) Property and equipment, net $ 8,010 $ 8,088 Depreciation expense was $1.1 million for the three months ended March 31, 2017 and 2016 . |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill was $75.1 million as of March 31, 2017 and December 31, 2016 . Identifiable intangible assets consist of the following: As of March 31, 2017 As of December 31, 2016 Weighted- Average Life (years) Gross Carrying Amount Accumulated Amortization Net Book Value Gross Carrying Amount Accumulated Amortization Net Book Value (in thousands) Intangible assets subject to amortization: Developed technology 6.3 $ 11,231 $ (3,557 ) $ 7,674 $ 11,231 $ (3,118 ) $ 8,113 Customer relationships 6.7 1,000 (236 ) 764 1,000 (197 ) 803 Trade names 6.1 519 (499 ) 20 519 (496 ) 23 Non-compete agreements 2.0 40 (38 ) 2 40 (33 ) 7 Total intangible assets $ 12,790 $ (4,330 ) $ 8,460 $ 12,790 $ (3,844 ) $ 8,946 Amortization expense was $0.5 million and $0.6 million for the three months ended March 31, 2017 and 2016 , respectively. Estimated future amortization expense of the acquired identifiable intangible assets as of March 31, 2017 is as follows (in thousands): 2017 (for the remaining nine months) $ 1,444 2018 1,886 2019 1,859 2020 1,837 2021 1,332 2022 and thereafter 102 Total $ 8,460 |
Stock-Based Compensation Expens
Stock-Based Compensation Expense | 3 Months Ended |
Mar. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation Expense | Stock-Based Compensation Expense (a) General Stock-based compensation expense for restricted stock, restricted stock units, stock options and issuances of common stock pursuant to our employee stock purchase plan was classified in the accompanying consolidated statements of operations as follows: Three Months Ended March 31, 2017 2016 (in thousands) Stock-based compensation expense: Cost of revenue $ 202 $ 137 Research and development 1,513 1,493 Sales and marketing 1,403 2,901 General and administrative 1,161 988 Total stock-based compensation expense $ 4,279 $ 5,519 We recognize compensation cost of all awards on a straight-line basis over the applicable vesting period, which is generally four years. (b) Restricted Stock and Restricted Stock Units Restricted stock and restricted stock unit activity during the three months ended March 31, 2017 was as follows: Restricted Stock Restricted Stock Units Shares Weighted-Average Grant Date Fair Value Shares Weighted-Average Unvested balance as of December 31, 2016 585,004 $ 18.05 734,577 $ 13.47 Granted — — 1,308,940 13.83 Vested (78,441 ) 19.05 (48,312 ) 13.21 Forfeited (860 ) 23.01 (40,554 ) 12.73 Unvested balance as of March 31, 2017 505,703 $ 17.89 1,954,651 $ 13.73 As of March 31, 2017 , the unrecognized compensation expense related to our unvested restricted stock and restricted stock units expected to vest was $32.8 million . This unrecognized compensation expense will be recognized over an estimated weighted-average amortization period of 3.1 years. During the three months ended March 31, 2017 , we repurchased 4,975 shares of our common stock in settlement of employee tax withholding obligations due upon the vesting of restricted stock. (c) Stock Options Stock option activity during the three months ended March 31, 2017 was as follows: Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (in years) Aggregate Intrinsic Value (in thousands) Outstanding as of December 31, 2016 4,580,375 $ 8.20 Granted 1,138,566 12.93 Exercised (120,479 ) 6.43 $ 1,000 Forfeited/cancelled (97,442 ) 12.10 Outstanding as of March 31, 2017 5,501,020 9.15 7.3 $ 32,817 Vested and exercisable as of March 31, 2017 2,926,282 5.91 5.6 $ 26,759 Vested and expected to vest as of March 31, 2017 5,501,020 9.15 7.3 $ 32,817 As of March 31, 2017 , the unrecognized compensation expense related to our unvested stock options expected to vest was $14.7 million . This unrecognized compensation expense will be recognized over an estimated weighted-average amortization period of 3.1 years. The total fair value of stock options vested in the three months ended March 31, 2017 was $1.0 million . The weighted-average grant date fair value of stock options granted in the three months ended March 31, 2017 was $6.46 per share. (d) Employee Stock Purchase Plan Under the Rapid7, Inc. 2015 Employee Stock Purchase Plan (ESPP), employees may set aside up to 15% of their gross earnings, on an after-tax basis, to purchase our common shares at a discounted price, which is calculated at 85% of the lesser of: (i) the market value of our common stock at the beginning of each offering period and (ii) the market value of our common stock on the applicable purchase date. On March 15, 2017, we issued 138,085 shares of common stock to employees for aggregate proceeds of $1.5 million . The purchase prices of the shares of common stock were $10.60 and $12.79 per share, which were discounted in accordance with the terms of the ESPP from the closing prices of our common stock on March 16, 2016 of $12.47 and on March 15, 2017 of $15.05 , respectively. |
Net Loss per Share
Net Loss per Share | 3 Months Ended |
Mar. 31, 2017 | |
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, 2017 and 2016 : Three Months Ended March 31, 2017 2016 (in thousands, except share and per share data) Numerator: Net loss $ (10,545 ) $ (15,580 ) Denominator: Weighted-average common shares outstanding, basic and diluted 42,016,831 40,547,669 Net loss per share attributable to common stockholders, basic and diluted $ (0.25 ) $ (0.38 ) 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, 2017 2016 Options to purchase common stock 5,501,020 4,881,355 Unvested restricted stock 505,703 1,062,568 Unvested restricted stock units 1,954,651 498,300 Shares to be issued under ESPP 10,959 17,639 Total 7,972,333 6,459,862 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies (a) Warranty We provide limited product warranties. Historically, any payments made under these provisions have been immaterial. (b) Litigation and Claims From time to time, we may be a party to litigation or subject to claims incident to the ordinary course of business. Although the results of litigation and claims cannot be predicted with certainty, we currently believe that the final outcome of these ordinary course matters will not have a material adverse effect on our business. Regardless of the outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources and other factors. (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, 2017 | |
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, 2017 2016 (in thousands) North America $ 37,993 $ 30,132 Other 7,252 4,664 Total $ 45,245 $ 34,796 Of the total net revenues generated in North America, 94% and 97% of the revenues were generated in the United States for the three months ended March 31, 2017 and 2016, respectively. Property and equipment, net by geographic area was as follows: As of March 31, 2017 As of December 31, 2016 (in thousands) United States $ 6,726 $ 7,063 Other 1,284 1,025 Total $ 8,010 $ 8,088 |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions In October 2015, McAfee LLC (formerly known as Intel Security) announced the end-of-sale for the McAfee Vulnerability Manager to customers and partners, effective January 11, 2016, with end-of-life to follow, and announced that we were named their exclusive vulnerability management partner. Under the terms of the commercial agreement, we incur partner referral fees as customers transition from McAfee Vulnerability Manager to Nexpose. During the three months ended March 31, 2017 , we recognized sales and marketing expense of $0.9 million related to partner referral fees paid to McAfee LLC. On February 6, 2017, Michael Berry, a member of our Board of Directors, became the Chief Financial Officer of McAfee LLC. |
Description of Business, Basi16
Description of Business, Basis of Presentation and Consolidation and Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
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, 2016 filed with the SEC on March 9, 2017. 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, 2017 are not necessarily indicative of the results to be expected for any future period or the entire fiscal year. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In October 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory . The ASU is intended to improve the accounting for the income tax consequences of intra-entity transfers of assets other than inventory. Current GAAP prohibits the recognition of current and deferred income taxes for an intra-entity asset transfer until the asset has been sold to an outside party. The ASU will allow an entity to recognize the income tax consequences of these transfers when the transfers occur. The ASU will be effective for us in the first quarter of 2018. We are currently evaluating the impact that the adoption of this ASU will have on our consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The ASU is intended to simplify several aspects of the accounting for share-based payment transactions, including the accounting for income taxes, forfeitures and statutory tax withholding requirements, as well as classification on the statement of cash flows. We adopted this ASU on January 1, 2017 and as a result, we have made an accounting policy election to account for forfeitures as they occur. This change has been applied on a modified retrospective basis, resulting in a cumulative-effect adjustment to increase accumulated deficit by $0.1 million as of January 1, 2017. The adoption of this ASU also requires excess tax benefits and tax deficiencies be recorded in the income statement as opposed to additional paid-in capital when the awards vest or are settled, and has been applied on a prospective basis. In connection with the adoption of this ASU, we recorded a cumulative-effect adjustment as of January 1, 2017 to increase gross deferred tax assets and the related valuation allowance against deferred tax assets by $3.4 million . The provisions related to classification of excess tax benefits in the statement of cash flows were adopted prospectively, and as such, the prior periods were not retrospectively adjusted. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . The ASU requires companies to recognize on the balance sheet the assets and liabilities for the rights and obligations created by leased assets. The ASU will be effective for us in the first quarter of 2019, with early adoption permitted. We are currently evaluating the impact that the adoption of this ASU will have on our consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) . The ASU outlines a single, comprehensive model for accounting for revenue from contracts with customers and requires more detailed disclosure to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from such contracts. In August 2015, the FASB issued ASU 2015-14, which provides a one year deferral in the effective date of ASU 2014-09. ASU 2014-09 will now be effective for us beginning January 1, 2018; however, early adoption will be permitted as of the original effective date. We plan to adopt ASU 2014-09 in the first quarter of 2018 and expect to adopt on a modified retrospective basis. Under this method of adoption, we would recognize the cumulative effect of initially applying the standard as an adjustment to the opening balance of retained earnings in the period of initial application. Comparative prior year periods would not be adjusted. We are currently evaluating the potential impact of this standard on our financial position and results of operations. Based on our analysis performed to date, we expect recognition of total revenue related to our perpetual and term software licenses, managed services, cloud-based subscriptions and stand-alone professional services to remain substantially unchanged. However, under the new standard, for software licenses that are sold with professional services in a multiple-element arrangement, the professional services will likely represent a separate performance obligation and we will recognize revenue associated with the professional services as such services are performed. Revenue associated with professional services in a multiple-element arrangement is currently recognized ratably over the related contractual period of maintenance and support (typically one to three years) due to the lack of vendor-specific objective evidence (VSOE) of selling price for the contractual elements. In addition, under the new standard, we expect the allocation of contract consideration for multiple-element arrangements to be on a relative fair value basis which may impact the presentation of revenue by class. Additionally, under the new standard, we expect to capitalize direct and incremental certain commission costs to obtain a contract and amortize such costs over the customer's estimated economic life rather than expensing them as incurred in the period that the commissions are earned by our employees (which is typically upon signing of an arrangement). |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Assets Measured at Fair Value on Recurring Basis | The following table presents our financial assets and liabilities measured and recorded at fair value on a recurring basis using the above input categories: As of March 31, 2017 Level 1 Level 2 Level 3 Total (in thousands) Description: Assets: Money market funds $ 4,632 $ — $ — $ 4,632 U.S. Government agencies 14,973 — — 14,973 Commercial paper — 6,295 — 6,295 Corporate bonds — 17,686 — 17,686 Asset-backed securities — 6,410 — 6,410 Total assets $ 19,605 $ 30,391 $ — $ 49,996 As of December 31, 2016 Level 1 Level 2 Level 3 Total (in thousands) Description: Assets: Money market funds $ 10,085 $ — $ — $ 10,085 U.S. Government agencies 14,982 — — 14,982 Commercial paper — 8,078 — 8,078 Corporate bonds — 10,314 — 10,314 Asset-backed securities — 6,467 — 6,467 Total assets $ 25,067 $ 24,859 $ — $ 49,926 |
Schedule of Available-for-sale Securities Reconciliation | Our investments, which are all classified as available-for-sale, consisted of the following: As of March 31, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) Description: U.S. Government agencies $ 14,993 $ — $ (20 ) $ 14,973 Commercial paper 6,295 — — 6,295 Corporate bonds 17,701 4 (19 ) 17,686 Asset-backed securities 6,414 — (4 ) 6,410 Total assets $ 45,403 $ 4 $ (43 ) $ 45,364 As of December 31, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) Description: U.S. Government agencies $ 14,992 $ 3 $ (13 ) $ 14,982 Commercial paper 7,178 — — 7,178 Corporate bonds 10,326 1 (13 ) 10,314 Asset-backed securities 6,464 4 (1 ) 6,467 Total assets $ 38,960 $ 8 $ (27 ) $ 38,941 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property and Equipment | Property and equipment are recorded at cost and consist of the following: As of As of (in thousands) Computer equipment and software $ 13,268 $ 12,844 Furniture and fixtures 3,287 3,131 Leasehold improvements 8,557 8,077 Total 25,112 24,052 Less accumulated depreciation (17,102 ) (15,964 ) Property and equipment, net $ 8,010 $ 8,088 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Identifiable Intangible Assets | Identifiable intangible assets consist of the following: As of March 31, 2017 As of December 31, 2016 Weighted- Average Life (years) Gross Carrying Amount Accumulated Amortization Net Book Value Gross Carrying Amount Accumulated Amortization Net Book Value (in thousands) Intangible assets subject to amortization: Developed technology 6.3 $ 11,231 $ (3,557 ) $ 7,674 $ 11,231 $ (3,118 ) $ 8,113 Customer relationships 6.7 1,000 (236 ) 764 1,000 (197 ) 803 Trade names 6.1 519 (499 ) 20 519 (496 ) 23 Non-compete agreements 2.0 40 (38 ) 2 40 (33 ) 7 Total intangible assets $ 12,790 $ (4,330 ) $ 8,460 $ 12,790 $ (3,844 ) $ 8,946 |
Schedule of Estimated Amortization Expense | Estimated future amortization expense of the acquired identifiable intangible assets as of March 31, 2017 is as follows (in thousands): 2017 (for the remaining nine months) $ 1,444 2018 1,886 2019 1,859 2020 1,837 2021 1,332 2022 and thereafter 102 Total $ 8,460 |
Stock-Based Compensation Expe20
Stock-Based Compensation Expense (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Stock-Based Compensation Expense | Stock-based compensation expense for restricted stock, restricted stock units, stock options and issuances of common stock pursuant to our employee stock purchase plan was classified in the accompanying consolidated statements of operations as follows: Three Months Ended March 31, 2017 2016 (in thousands) Stock-based compensation expense: Cost of revenue $ 202 $ 137 Research and development 1,513 1,493 Sales and marketing 1,403 2,901 General and administrative 1,161 988 Total stock-based compensation expense $ 4,279 $ 5,519 |
Summary of Restricted Stock and Restricted Stock Unit Activity | Restricted stock and restricted stock unit activity during the three months ended March 31, 2017 was as follows: Restricted Stock Restricted Stock Units Shares Weighted-Average Grant Date Fair Value Shares Weighted-Average Unvested balance as of December 31, 2016 585,004 $ 18.05 734,577 $ 13.47 Granted — — 1,308,940 13.83 Vested (78,441 ) 19.05 (48,312 ) 13.21 Forfeited (860 ) 23.01 (40,554 ) 12.73 Unvested balance as of March 31, 2017 505,703 $ 17.89 1,954,651 $ 13.73 |
Summary of Stock Option Activity | Stock option activity during the three months ended March 31, 2017 was as follows: Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (in years) Aggregate Intrinsic Value (in thousands) Outstanding as of December 31, 2016 4,580,375 $ 8.20 Granted 1,138,566 12.93 Exercised (120,479 ) 6.43 $ 1,000 Forfeited/cancelled (97,442 ) 12.10 Outstanding as of March 31, 2017 5,501,020 9.15 7.3 $ 32,817 Vested and exercisable as of March 31, 2017 2,926,282 5.91 5.6 $ 26,759 Vested and expected to vest as of March 31, 2017 5,501,020 9.15 7.3 $ 32,817 |
Net Loss per Share (Tables)
Net Loss per Share (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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, 2017 and 2016 : Three Months Ended March 31, 2017 2016 (in thousands, except share and per share data) Numerator: Net loss $ (10,545 ) $ (15,580 ) Denominator: Weighted-average common shares outstanding, basic and diluted 42,016,831 40,547,669 Net loss per share attributable to common stockholders, basic and diluted $ (0.25 ) $ (0.38 ) |
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, 2017 2016 Options to purchase common stock 5,501,020 4,881,355 Unvested restricted stock 505,703 1,062,568 Unvested restricted stock units 1,954,651 498,300 Shares to be issued under ESPP 10,959 17,639 Total 7,972,333 6,459,862 |
Segment Information and Infor22
Segment Information and Information about Geographic Areas (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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, 2017 2016 (in thousands) North America $ 37,993 $ 30,132 Other 7,252 4,664 Total $ 45,245 $ 34,796 |
Property and Equipment, Net By Geographic Area | Property and equipment, net by geographic area was as follows: As of March 31, 2017 As of December 31, 2016 (in thousands) United States $ 6,726 $ 7,063 Other 1,284 1,025 Total $ 8,010 $ 8,088 |
Description of Business, Basi23
Description of Business, Basis of Presentation and Consolidation and Significant Accounting Policies - Additional Information (Detail) - Accounting Standards Update 2016-09 [Member] $ in Millions | Mar. 31, 2017USD ($) |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Deferred tax assets | $ 3.4 |
Valuation allowance against deferred tax assets | 3.4 |
Accumulated Deficit [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Cumulative effect adjustment | $ 0.1 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | $ 45,364 | $ 38,941 |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 49,996 | 49,926 |
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 19,605 | 25,067 |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 30,391 | 24,859 |
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 0 | 0 |
Money Market Funds [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 4,632 | 10,085 |
Money Market Funds [Member] | Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 4,632 | 10,085 |
Money Market Funds [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 0 | 0 |
Money Market Funds [Member] | Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 0 | 0 |
U.S. Government Agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 14,973 | 14,982 |
U.S. Government Agencies [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 14,973 | 14,982 |
U.S. Government Agencies [Member] | Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 14,973 | 14,982 |
U.S. Government Agencies [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
U.S. Government Agencies [Member] | Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 6,295 | 7,178 |
Commercial Paper [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 6,295 | 8,078 |
Commercial Paper [Member] | Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Commercial Paper [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 6,295 | 8,078 |
Commercial Paper [Member] | Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Corporate Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 17,686 | 10,314 |
Corporate Bonds [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 17,686 | 10,314 |
Corporate Bonds [Member] | Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Corporate Bonds [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 17,686 | 10,314 |
Corporate Bonds [Member] | Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Asset-backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 6,410 | 6,467 |
Asset-backed Securities [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 6,410 | 6,467 |
Asset-backed Securities [Member] | Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Asset-backed Securities [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 6,410 | 6,467 |
Asset-backed Securities [Member] | Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | $ 0 | $ 0 |
Fair Value Measurements - Avail
Fair Value Measurements - Available for Sale Investments at Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 45,403 | $ 38,960 |
Gross Unrealized Gains | 4 | 8 |
Gross Unrealized Losses | (43) | (27) |
Fair Value | 45,364 | 38,941 |
U.S. Government Agencies [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 14,993 | 14,992 |
Gross Unrealized Gains | 0 | 3 |
Gross Unrealized Losses | (20) | (13) |
Fair Value | 14,973 | 14,982 |
Commercial Paper [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 6,295 | 7,178 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 6,295 | 7,178 |
Corporate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 17,701 | 10,326 |
Gross Unrealized Gains | 4 | 1 |
Gross Unrealized Losses | (19) | (13) |
Fair Value | 17,686 | 10,314 |
Asset-backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 6,414 | 6,464 |
Gross Unrealized Gains | 0 | 4 |
Gross Unrealized Losses | (4) | (1) |
Fair Value | $ 6,410 | $ 6,467 |
Property and Equipment - Summar
Property and Equipment - Summary of Property and Equipment (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 25,112 | $ 24,052 |
Less accumulated depreciation | (17,102) | (15,964) |
Net property and equipment | 8,010 | 8,088 |
Computer Equipment and Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 13,268 | 12,844 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 3,287 | 3,131 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 8,557 | $ 8,077 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 1.1 | $ 1.1 |
Goodwill and Intangible Asset28
Goodwill and Intangible Assets - Narrative (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill | $ 75,110 | $ 75,110 | |
Amortization expense | $ 500 | $ 600 |
Goodwill and Intangible Asset29
Goodwill and Intangible Assets - Schedule of Identifiable Intangible Assets (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 12,790 | $ 12,790 |
Accumulated Amortization | (4,330) | (3,844) |
Intangible assets, net | $ 8,460 | 8,946 |
Developed Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Weighted- Average Life | 6 years 3 months 18 days | |
Gross Carrying Amount | $ 11,231 | 11,231 |
Accumulated Amortization | (3,557) | (3,118) |
Intangible assets, net | $ 7,674 | 8,113 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Weighted- Average Life | 6 years 8 months 12 days | |
Gross Carrying Amount | $ 1,000 | 1,000 |
Accumulated Amortization | (236) | (197) |
Intangible assets, net | $ 764 | 803 |
Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Weighted- Average Life | 6 years 1 month 6 days | |
Gross Carrying Amount | $ 519 | 519 |
Accumulated Amortization | (499) | (496) |
Intangible assets, net | $ 20 | 23 |
Non-compete Agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Weighted- Average Life | 2 years | |
Gross Carrying Amount | $ 40 | 40 |
Accumulated Amortization | (38) | (33) |
Intangible assets, net | $ 2 | $ 7 |
Goodwill and Intangible Asset30
Goodwill and Intangible Assets - Schedule of Estimated Amortization Expense (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2017 (for the remaining nine months) | $ 1,444 | |
2,018 | 1,886 | |
2,019 | 1,859 | |
2,020 | 1,837 | |
2,021 | 1,332 | |
2022 and thereafter | 102 | |
Intangible assets, net | $ 8,460 | $ 8,946 |
Stock-Based Compensation Expe31
Stock-Based Compensation Expense - Schedule of Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | $ 4,279 | $ 5,519 |
Cost of Revenue [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | 202 | 137 |
Research and Development [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | 1,513 | 1,493 |
Sales and Marketing [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | 1,403 | 2,901 |
General and Administrative [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | $ 1,161 | $ 988 |
Stock-Based Compensation Expe32
Stock-Based Compensation Expense - Additional Information (Detail) - USD ($) | Mar. 15, 2017 | Mar. 31, 2017 | Mar. 16, 2016 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 4 years | ||
Number of common stock repurchased | 4,975 | ||
Purchase price of common stock by employees (as a percent) | 85.00% | ||
Employee Stock Purchase Plan [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employee withholding percentage | 15.00% | ||
Restricted Stock And Restricted Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation expense | $ 32,784,368 | ||
Unrecognized compensation expense, recognition period | 3 years 1 month 6 days | ||
Options to Purchase Common Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation expense, recognition period | 3 years 1 month 6 days | ||
Unrecognized compensation cost, stock options | $ 14,700,000 | ||
Stock options vested, fair value | $ 1,000,000 | ||
Stock options granted, weighted-average grant date fair value | $ 6.46 | ||
Employee Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock issued to employees (in shares) | 138,085 | ||
Aggregate proceeds from issuance of common stock to employees | $ 1,500,000 | ||
Share issued, price per share (in dollars per share) | $ 12.79 | $ 10.60 | |
Closing price of shares issued (in dollars per share) | $ 15.05 | $ 12.47 |
Stock-Based Compensation Expe33
Stock-Based Compensation Expense - Summary of Restricted Stock and Restricted Stock Unit Activity (Detail) | 3 Months Ended |
Mar. 31, 2017$ / sharesshares | |
Restricted Stock [Member] | |
Shares | |
Unvested balance, Beginning balance (in shares) | shares | 585,004 |
Granted (in shares) | shares | 0 |
Vested (in shares) | shares | (78,441) |
Forfeited (in shares) | shares | (860) |
Unvested balance, Ending balance (in shares) | shares | 505,703 |
Weighted-Average Grant Date Fair Value | |
Beginning balance (in dollars per share) | $ / shares | $ 18.05 |
Granted (in dollars per share) | $ / shares | 0 |
Vested (in dollars per share) | $ / shares | 19.05 |
Forfeited (in dollars per share) | $ / shares | 23.01 |
Ending Balance (in dollars per share) | $ / shares | $ 17.89 |
Restricted Stock Units (RSUs) [Member] | |
Shares | |
Unvested balance, Beginning balance (in shares) | shares | 734,577 |
Granted (in shares) | shares | 1,308,940 |
Vested (in shares) | shares | (48,312) |
Forfeited (in shares) | shares | (40,554) |
Unvested balance, Ending balance (in shares) | shares | 1,954,651 |
Weighted-Average Grant Date Fair Value | |
Beginning balance (in dollars per share) | $ / shares | $ 13.47 |
Granted (in dollars per share) | $ / shares | 13.83 |
Vested (in dollars per share) | $ / shares | 13.21 |
Forfeited (in dollars per share) | $ / shares | 12.73 |
Ending Balance (in dollars per share) | $ / shares | $ 13.73 |
Stock-Based Compensation Expe34
Stock-Based Compensation Expense - Summary of Stock Option Activity (Detail) - Stock Options [Member] $ / shares in Units, $ in Thousands | 3 Months Ended |
Mar. 31, 2017USD ($)$ / sharesshares | |
Shares | |
Outstanding, Beginning balance (in shares) | shares | 4,580,375 |
Granted (in shares) | shares | 1,138,566 |
Exercised (in shares) | shares | (120,479) |
Forfeited/canceled (in shares) | shares | (97,442) |
Outstanding, Ending balance (in shares) | shares | 5,501,020 |
Vested and exercisable (in shares) | shares | 2,926,282 |
Vested or expected to vest (in shares) | shares | 5,501,020 |
Weighted Average Exercise Price | |
Outstanding, Beginning balance (in dollars per share) | $ / shares | $ 8.20 |
Granted (in dollars per share) | $ / shares | 12.93 |
Exercised (in dollars per share) | $ / shares | 6.43 |
Forfeited/canceled (in dollars per share) | $ / shares | 12.10 |
Outstanding, Ending balance (in dollars per share) | $ / shares | 9.15 |
Vested and exercisable (in dollars per share) | $ / shares | 5.91 |
Vested and expected to vest (in dollars per share) | $ / shares | $ 9.15 |
Weighted Average Remaining Contractual Life (in years) | |
Outstanding | 7 years 3 months 18 days |
Vested and exercisable | 5 years 7 months 6 days |
Vested and expected to vest | 7 years 3 months 18 days |
Aggregate Intrinsic Value | |
Exercised (in dollars) | $ | $ 1,000 |
Outstanding (in dollars) | $ | 32,817 |
Vested and exercisable (in dollars) | $ | 26,759 |
Vested and expected to vest (in dollars) | $ | $ 32,817 |
Net Loss Per Share - Summary of
Net Loss Per Share - Summary of Basic and Diluted Net Loss Per Share of Common Stock (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Earnings Per Share [Abstract] | ||
Net loss | $ (10,545) | $ (15,580) |
Weighted-average common shares outstanding, basic and diluted | 42,016,831 | 40,547,669 |
Net loss per share, basic and diluted (in dollars per share) | $ (0.25) | $ (0.38) |
Net Loss Per Share - Summary 36
Net Loss Per Share - Summary of Antidilutive Securities Excluded From Computation Diluted Weighted Average Shares Outstanding (Detail) - shares | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Schedule Of Calculation Of Numerator And Denominator In Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share amount | 7,972,333 | 6,459,862 |
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 | 505,703 | 1,062,568 |
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 | 1,954,651 | 498,300 |
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 | 10,959 | 17,639 |
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 | 5,501,020 | 4,881,355 |
Segment Information and Infor37
Segment Information and Information about Geographic Areas - Additional Information (Detail) - Segment | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Segment Reporting Information [Line Items] | ||
Number of operating segments | 1 | |
United States [Member] | ||
Segment Reporting Information [Line Items] | ||
Percentage of net revenues | 94.00% | 97.00% |
Segment Information and Infor38
Segment Information and Information about Geographic Areas - Net Revenues of Customer by Geographic Area (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Entity Wide Portfolio Carrying Amount, Major Customer [Line Items] | ||
Net revenues, Total | $ 45,245 | $ 34,796 |
North America [Member] | ||
Entity Wide Portfolio Carrying Amount, Major Customer [Line Items] | ||
Net revenues, Total | 37,993 | 30,132 |
Other [Member] | ||
Entity Wide Portfolio Carrying Amount, Major Customer [Line Items] | ||
Net revenues, Total | $ 7,252 | $ 4,664 |
Segment Information and Infor39
Segment Information and Information about Geographic Areas - Property and Equipment, Net By Geographic Area (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | $ 8,010 | $ 8,088 |
United States [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | 6,726 | 7,063 |
Other [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | $ 1,284 | $ 1,025 |
Related Party Transactions - Na
Related Party Transactions - Narrative (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2017USD ($) | |
McAfee LLC [Member] | |
Related Party Transaction [Line Items] | |
Sales and marketing expense related to partner referral fees | $ 0.9 |