Benefitfocus (BNFT) 10-Q 12 Nov 13 2013 Q3 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
	Sep. 30, 2013	Nov. 01, 2013
Document Information [Line Items]	'	'
Document Type	'10-Q	'
Amendment Flag	'false	'
Document Period End Date	30-Sep-13	'
Document Fiscal Year Focus	'2013	'
Document Fiscal Period Focus	'Q3	'
Trading Symbol	'BNFT	'
Entity Registrant Name	'Benefitfocus,Inc.	'
Entity Central Index Key	'0001576169	'
Current Fiscal Year End Date	'--12-31	'
Entity Filer Category	'Non-accelerated Filer	'
Entity Common Stock, Shares Outstanding	'	24,463,854

Consolidated_Balance_Sheets

Consolidated Balance Sheets (USD $)	Sep. 30, 2013		Dec. 31, 2012
In Thousands, unless otherwise specified
Current assets:	'		'
Cash and cash equivalents	$84,672		$19,703
Accounts receivable, net	21,177		13,372
Prepaid expenses and other current assets	2,495		1,483
Total current assets	108,344		34,558
Property and equipment, net	16,474		14,150
Intangible assets, net	1,333		1,579
Goodwill	1,634		1,634
Total assets	127,785		51,921
Current liabilities:	'		'
Accounts payable	5,596		1,726
Accrued expenses	3,219		2,453
Accrued compensation and benefits	15,737		9,661
Deferred revenue, current portion	14,192		11,165
Capital lease obligations, current portion	1,170		1,171
Notes payable, current portion	'		2,420
Contingent consideration related to acquisition, current portion	310	[1]	328	[1]
Total current liabilities	40,224		28,924
Deferred revenue, net of current portion	58,166		46,355
Revolving line of credit	5,757		'
Capital lease obligations, net of current portion	604		550
Notes payable, net of current portion	'		3,561
Other non-current liabilities	2,593		2,301
Total liabilities	107,344		81,691
Commitments and contingencies	'		'
Redeemable convertible preferred stock:	'		'
Redeemable convertible preferred stock	'		135,478
Stockholders' equity (deficit):	'		'
Preferred stock, par value $0.001, 5,000,000 shares authorized, no shares issued and outstanding at September 30, 2013 and December 31, 2012	'		'
Additional paid-in capital	213,756		'
Accumulated deficit	-193,339		-171,357
Total stockholders' equity (deficit)	20,441		-165,248
Total liabilities, redeemable convertible preferred stock and stockholders' equity (deficit)	127,785		51,921
Series A Redeemable Convertible Preferred Stock	'		'
Redeemable convertible preferred stock:	'		'
Redeemable convertible preferred stock	'		105,505
Series B Redeemable Convertible Preferred Stock	'		'
Redeemable convertible preferred stock:	'		'
Redeemable convertible preferred stock	'		29,973
Common Stock Without Par Value	'		'
Stockholders' equity (deficit):	'		'
Common stock value	'		6,109
Common Stock With Par Value	'		'
Stockholders' equity (deficit):	'		'
Common stock value	$24		'
[1]	Contingent consideration related to acquisitions is classified within Level 3 because the liabilities are valued using significant unobservable inputs. The Company estimated the fair value of the acquisition-related contingent consideration using a probability-weighted discounted cash flow method. On the unaudited consolidated statements of operations and comprehensive loss, change in fair value related to changes in estimated contingent consideration to be paid is included in "Change in fair value of contingent consideration", and accretion of the discount on contingent consideration is included in "Other expense."

Consolidated_Balance_Sheets_Pa

Consolidated Balance Sheets (Parenthetical) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Common stock, par value	$0.00	'
Preferred stock, par value	$0.00	$0.00
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	'	'
Preferred stock, shares outstanding	'	'
Series A Redeemable Convertible Preferred Stock	'	'
Redeemable convertible preferred stock, no par value	'	'
Redeemable convertible preferred stock, shares authorized	'	14,055,851
Redeemable convertible preferred stock, shares issued	'	14,055,851
Redeemable convertible preferred stock, shares outstanding	'	14,055,851
Series B Redeemable Convertible Preferred Stock	'	'
Redeemable convertible preferred stock, no par value	'	'
Redeemable convertible preferred stock, shares authorized	'	2,441,009
Redeemable convertible preferred stock, shares issued	'	2,441,009
Redeemable convertible preferred stock, shares outstanding	'	2,441,009
Common Stock Without Par Value	'	'
Common stock, par value	'	'
Common stock, shares authorized	'	100,000,000
Common stock, shares issued	'	20,125,063
Common stock, shares outstanding	'	4,792,347
Common Stock With Par Value	'	'
Common stock, par value	$0.00	'
Common stock, shares authorized	50,000,000	'
Common stock, shares issued	24,441,228	'
Common stock, shares outstanding	24,441,228	'

Consolidated_Statements_of_Ope

Consolidated Statements of Operations and Comprehensive Loss (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Share data, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Revenue	$26,317	$20,833	$74,496	$59,531
Cost of revenue	16,379	10,899	43,549	33,130
Gross profit	9,938	9,934	30,947	26,401
Operating expenses:	'	'	'	'
Sales and marketing	7,426	6,727	27,331	21,791
Research and development	6,633	3,706	17,138	11,416
General and administrative	2,645	1,811	8,253	5,564
Change in fair value of contingent consideration	'	-1	-43	169
Total operating expenses	16,704	12,243	52,679	38,940
Loss from operations	-6,766	-2,309	-21,732	-12,539
Other income (expense):	'	'	'	'
Interest income	8	9	31	41
Interest expense	-113	-37	-271	-139
Other expense	9	-28	-29	-57
Total other expense, net	-96	-56	-269	-155
Loss before income taxes	-6,862	-2,365	-22,001	-12,694
Income tax (benefit) expense	-59	10	-19	49
Net loss	-6,803	-2,375	-21,982	-12,743
Comprehensive loss	($6,803)	($2,375)	($21,982)	($12,743)
Net loss per common share:	'	'	'	'
Basic and diluted	($1.08)	($0.49)	($4.14)	($2.64)
Weighted-average common shares outstanding:	'	'	'	'
Basic and diluted	6,320,731	4,836,179	5,315,008	4,824,182

Consolidated_Statements_of_Cha

Consolidated Statements of Changes in Stockholders' Equity (Deficit) (USD $)	Total	Common Stock, No Par Value	Common Stock, $0.001 Par Value	Additional Paid-in Capital	Accumulated Deficit
In Thousands, except Share data
Balance at Dec. 31, 2012	($165,248)	$6,109	'	'	($171,357)
Balance (in shares) at Dec. 31, 2012	'	4,792,347	'	'	'
Exercise of stock options (in shares)	147,021	71,694	75,327	'	'
Exercise of stock options	572	168	'	404	'
Issuance of common stock (in shares)	'	5,000	'	'	'
Issuance of common stock	68	68	'	'	'
Effects of corporate restructuring (in shares)	'	-4,869,041	4,869,041	'	'
Effects of corporate restructuring	'	-7,328	5	7,323	'
Initial public offering, net of issuance costs (in shares)	'	'	3,000,000	'	'
Initial public offering, net of issuance costs	70,064	'	3	70,061	'
Conversion of redeemable convertible preferred stock (in shares)	'	'	16,496,860	'	'
Conversion of redeemable convertible preferred stock	135,477	'	16	135,461	'
Stock-based compensation expense	821	537	'	284	'
Accretion of customer warrant	669	446	'	223	'
Net loss	-21,982	'	'	'	-21,982
Balance at Sep. 30, 2013	$20,441	'	$24	$213,756	($193,339)
Balance (in shares) at Sep. 30, 2013	'	'	24,441,228	'	'

Consolidated_Statements_of_Cas

Consolidated Statements of Cash Flows (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012
Cash flows from operating activities	'	'
Net loss	($21,982)	($12,743)
Adjustments to reconcile net loss to net cash and cash equivalents provided by operating activities:	'	'
Depreciation and amortization	5,727	6,567
Stock-based compensation expense	821	464
Change in fair value and accretion of warrant	669	320
Change in fair value of contingent consideration	-18	225
Provision for doubtful accounts	55	80
Loss on disposal of property and equipment	20	9
Changes in operating assets and liabilities:	'	'
Accounts receivable, net	-7,860	-2,437
Prepaid expenses and other current assets	-1,012	228
Accounts payable	3,870	405
Accrued expenses	766	456
Accrued compensation and benefits	6,076	3,659
Contingent consideration related to acquisition	'	-320
Deferred revenue	14,838	9,165
Other non-current liabilities	293	319
Net cash and cash equivalents provided by operating activities	2,263	6,397
Cash flows from investing activities	'	'
Purchases of property and equipment	-6,695	-5,154
Proceeds from sale of property and equipment	9	'
Net cash and cash equivalents used in investing activities	-6,686	-5,154
Cash flows from financing activities	'	'
Proceeds from initial public offering, net of issuance costs	70,064	'
Draws on revolving line of credit	10,757	'
Payments on revolving line of credit	-5,000	'
Proceeds from notes payable borrowing	1,465	'
Repayment of notes payable	-7,447	-835
Proceeds from exercises of stock options	572	84
Proceeds from issuance of common stock (excluding IPO)	68	'
Repurchases of common stock	'	-593
Payments of contingent consideration	'	-1,700
Payments on capital lease obligations	-1,087	-1,071
Net cash and cash equivalents provided by (used in) financing activities	69,392	-4,115
Net increase (decrease) in cash and cash equivalents	64,969	-2,872
Cash and cash equivalents, beginning of period	19,703	15,856
Cash and cash equivalents, end of period	84,672	12,984
Supplemental disclosure of non-cash investing and financing activities	'	'
Property and equipment acquired with direct financing or leases	1,138	'
Supplemental disclosures of cash flow information	'	'
Income taxes paid	168	40
Interest paid	$248	$149

Organization_and_Description_o

Organization and Description of Business	9 Months Ended
	Sep. 30, 2013
Organization and Description of Business	'
	1. Organization and Description of Business
	Benefitfocus, Inc. (the “Company”) is a leading provider of cloud-based benefits software solutions for consumers, employers, insurance carriers and brokers delivered under a software-as-a-service (SaaS) model. The financial statements of the Company include the financial position and operations of its wholly owned subsidiaries, Benefitfocus.com, Inc., Benefit Informatics, Inc. and BenefitStore, Inc.
	Corporate restructuring
	The Company, a Delaware corporation, was originally a wholly owned subsidiary of Benefitfocus.com, Inc., the South Carolina corporation that conducts the business of the Company. On March 13, 2013, the Board of Directors of each of Benefitfocus, Inc. and Benefitfocus.com, Inc. approved a corporate restructuring to be effected prior to the completion of the Company’s initial public offering (“IPO”) of shares of its common stock. On September 13, 2013, the Company restructured its organization by merging Benefitfocus.com, Inc. with a newly formed South Carolina corporation, which was a wholly owned subsidiary of the Company. As a result of the corporate restructuring, Benefitfocus.com, Inc. became a wholly owned operating subsidiary of the Company. Additionally, the common and preferred stockholders of Benefitfocus.com, Inc. became common and preferred stockholders, respectively, of Benefitfocus, Inc. and warrants that were exercisable for common shares of Benefitfocus.com, Inc. became exercisable for common shares of Benefitfocus, Inc. Similarly, holders of options to purchase common shares of Benefitfocus.com, Inc. became holders of options to purchase shares of common stock of Benefitfocus, Inc.
	Initial Public Offering
	In September 2013, the Company completed its IPO in which it issued and sold 3,000,000 shares of common stock and existing shareholders sold 2,675,250 shares of common stock at a public offering price of $26.50 per share. The Company did not receive any proceeds from the sale of common stock by the existing shareholders. The Company received net proceeds of $70,064 after deducting underwriting discounts and commissions of $5,565 and other offering expenses of $3,871. Upon the closing of the IPO, all shares of the Company’s then-outstanding redeemable convertible preferred stock automatically converted into 16,496,860 shares of its $0.001 par value common stock.

Summary_of_Significant_Account

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2013
Summary of Significant Accounting Policies	'
	2. Summary of Significant Accounting Policies
	Principles of Consolidation
	These unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). The unaudited consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.
	Interim Unaudited Consolidated Financial Information
	The accompanying unaudited consolidated financial statements and footnotes have been prepared in accordance with GAAP as contained in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (the “Codification” or “ASC”) for interim financial information, and with Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, the interim financial information includes all adjustments of a normal recurring nature necessary for a fair presentation of the results of operations, financial position, changes in stockholders’ equity (deficit) and cash flows. The results of operations for the three and nine-month periods ended September 30, 2013 are not necessarily indicative of the results for the full year or the results for any future periods. These unaudited consolidated financial statements should be read in conjunction with the audited financial statements and related footnotes for the year ended December 31, 2012 included in the Company’s final prospectus filed pursuant to Rule 424(b) under the Securities Act of 1933, as amended, with the SEC on September 18, 2013.
	Use of Estimates
	The preparation of financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the reported amounts in the consolidated financial statements and accompanying notes. Such estimates include revenue recognition and the customer relationship period, allowances for doubtful accounts and returns, valuations of deferred income taxes, long-lived assets, warrants, the useful lives of assets, capitalizable software development costs and the related amortization, contingent consideration, stock-based compensation, annual bonus attainment, acquired intangibles, and goodwill. Determination of these transactions and account balances are based on the Company’s estimates and judgments. These estimates are based on the Company’s knowledge of current events and actions it may undertake in the future as well as on various other assumptions that it believes to be reasonable. Actual results could differ from these estimates.
	Revenue and Deferred Revenue
	The Company derives the majority of its revenue from software services fees, which consist primarily of monthly subscription fees paid by customers for access to and usage of the Company’s cloud-based benefits software solutions for a specified contract term. The Company also derives revenue from professional services which primarily include fees related to the integration of customers’ systems with the Company’s platform, which typically includes discovery, configuration, deployment, testing, and training.
	The Company recognizes revenue when there is persuasive evidence of an arrangement, the service has been provided, the fees to be paid by the customer are fixed and determinable and collectability is reasonably assured. The Company considers delivery of its cloud-based software services has commenced once it has granted the customer access to its platform.
	The Company’s arrangements generally contain multiple elements comprised of software services and professional services. The Company evaluates each element in an arrangement to determine whether it represents a separate unit of accounting. An element constitutes a separate unit of accounting when the delivered item has standalone value and delivery of the undelivered element is probable and within the Company’s control. The Company’s professional services are not sold separately from the software services and there is no alternative use for them. As such, the Company has determined that the professional services do not have standalone value. Accordingly, software services and professional services are combined and recognized as a single unit of accounting.
	The Company generally recognizes software services fees monthly based on the number of employees covered by the relevant benefits plans at contracted rates for a specified period of time, once the criteria for revenue recognition described above have been satisfied. The Company defers recognition of revenue for professional services fees paid by customers in connection with its software services, and begins recognizing such revenue once the services are performed and the software services have commenced, ratably over the longer of the contract term or the estimated expected life of the customer relationship. Costs incurred by the Company in connection with providing such professional services are charged to expense as incurred and are included in “Cost of revenue.”
	Cost of Revenue
	Cost of revenue primarily consists of employee compensation, professional services, data center co-location costs, networking expenses, depreciation expenses for computer equipment directly associated with generating revenue, amortization expenses for capitalized software development costs, and infrastructure maintenance costs. In addition, the Company allocates a portion of overhead, such as rent, additional depreciation and amortization expense, and employee benefit costs, to cost of revenue based on headcount.
	Concentrations of Credit Risk
	The Company’s financial instruments that are exposed to concentrations of credit risk consist primarily of cash equivalents and accounts receivable. All of the Company’s cash and cash equivalents are held at financial institutions that management believes to be of high credit quality. The bank deposits of the Company might, at times, exceed federally insured limits and are generally uninsured and uncollateralized. The Company has not experienced any losses on cash and cash equivalents to date. To manage accounts receivable risk, the Company evaluates the creditworthiness of its customers and maintains an allowance for doubtful accounts.
	Accounts receivable were unsecured and were derived from revenue earned from customers located in the United States. Accounts receivable from one customer, Aetna, represented 16.2% and 18.2% of the total accounts receivable at September 30, 2013 and December 31, 2012, respectively.
	Revenue from the Company’s largest customer, Aetna, represented 10.4% of total revenue for the three months ended September 30, 2013 and 10.4% and 10.8% of total revenue for the three and nine-month periods ended September 30, 2012, respectively. Additionally, revenue from two affiliated customers, BlueCross BlueShield of South Carolina and BlueChoice HealthPlan, represented 10.5% and 10.2% of total revenue for three- and nine-month periods ended September 30, 2012, respectively. Revenue from these customers is reported in the Company’s Carrier segment. No customer represented more than 10% of total revenue for the nine months ended September 30, 2013.
	Accounts Receivable and Allowance for Doubtful Accounts and Returns
	Accounts receivable is stated at realizable value, net of allowances for doubtful accounts and returns. The Company utilizes the allowance method to provide for doubtful accounts based on management’s evaluation of the collectability of amounts due, and other relevant factors. Bad debt expense is recorded in general and administrative expense on the unaudited consolidated statements of operations and comprehensive loss. The Company’s estimate is based on historical collection experience and a review of the current status of accounts receivable. Historically, actual write-offs for uncollectible accounts have not significantly differed from the Company’s estimates. The Company removes recorded receivables and the associated allowances when they are deemed permanently uncollectible. However, higher than expected bad debts may result in future write-offs that are greater than the Company’s estimates. The allowance for doubtful accounts was $131 and $130 as of September 30, 2013 and December 31, 2012, respectively.
	The allowances for returns are accounted for as reductions of revenue and are estimated based on the Company’s periodic assessment of historical experience and trends. The Company considers factors such as the time lag since the initiation of revenue recognition, historical reasons for adjustments, new customer volume, complexity of billing arrangements, timing of software availability, and past due customer billings. The allowance for returns was $659 and $770 as of September 30, 2013 and December 31, 2012, respectively.
	Capitalized Software Development Costs
	The Company capitalizes certain costs related to its software developed or obtained for internal use. Costs related to preliminary project activities and post-implementation activities are expensed as incurred. Internal and external costs incurred during the application development stage, including upgrades and enhancements representing modifications that will result in significant additional functionality, are capitalized. Software maintenance and training costs are expensed as incurred. Capitalized costs are recorded as part of property and equipment and are amortized on a straight-line basis over the software’s estimated useful life. The Company evaluates the useful lives of these assets on at least an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets.
	In the three months ended September 30, 2013 and 2012, the Company capitalized software development costs of $971 and $858, and amortized capitalized software development costs of $662 and $554, respectively. In the nine months ended September 30, 2013 and 2012, the Company capitalized software development costs of $2,350 and $2,497, and amortized capitalized software development costs of $1,904 and $2,664, respectively. The net book value of capitalized software development costs was $4,415 and $3,969 at September 30, 2013 and December 31, 2012, respectively. Capitalized software amortization for the nine months ended September 30, 2012, included an impairment of $1,051. The impairment relates to certain software developed for internal use that the Company determined was no longer probable to produce cash flows for the remainder of the respective useful lives.
	Comprehensive Loss
	The Company’s net loss equals comprehensive loss for all periods presented, as the Company has no components of other comprehensive income (loss).
	Stock-Based Employee Compensation
	Stock-based employee compensation is measured based on the grant-date fair value of the awards and recognized in the unaudited consolidated statements of operations and comprehensive loss over the period during which the optionholder is required to perform services in exchange for the award, which is the vesting period, using the straight-line method. The Company uses the Black-Scholes option pricing model for estimating the fair value of stock options. The use of the option valuation model requires the input of subjective assumptions, including the fair value of the Company’s common stock, the expected life of the option and the expected stock price volatility based on peer companies. Additionally, the recognition of stock-based compensation expense requires the estimation of the number of options that will ultimately vest and the number of options that will ultimately be forfeited.
	Recently Adopted Accounting Pronouncements
	In July 2012, the FASB issued ASU 2012-02, “Intangibles—Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment”, which is intended to reduce the cost and complexity of performing an impairment test for indefinite-lived intangible assets by providing entities an option to perform a “qualitative” assessment to determine whether further impairment testing is necessary. The Company’s adoption of this statement, effective January 1, 2013, did not have any impact on the Company’s consolidated financial statements.
	In February 2013, the FASB issued ASU 2013-02, “Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income”, which requires entities to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, ASU 2013-02 requires presentation, either on the face of the income statement or in the notes, of significant amounts reclassified out of accumulated other comprehensive income by respective line items of net income, but only if the amounts reclassified are required to be reclassified in their entirety in the same reporting period. For amounts that are not required to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures that provide additional details about these amounts. The Company prospectively adopted ASU 2013-02 effective January 1, 2013. The adoption of this pronouncement did not have any impact on the Company’s consolidated financial statements.

Net_Loss_Per_Common_Share

Net Loss Per Common Share	9 Months Ended
	Sep. 30, 2013
Net Loss Per Common Share	'
	3. Net Loss Per Common Share
	Diluted loss per common share is the same as basic loss per common share for all periods presented because the effects of potentially dilutive items were anti-dilutive given the Company’s net loss. The following common share equivalent securities have been excluded from the calculation of weighted average common shares outstanding because the effect is anti-dilutive for the periods presented:
		As of September 30,
	Anti-Dilutive Common Share Equivalents	2013			2012
	Redeemable convertible preferred stock:
	Series A		—			14,055,851
	Series B		—			2,441,009
	Stock options		3,117,177			2,781,728
	Warrants to purchase common stock		500,000			500,000
	Total anti-dilutive common share equivalents		3,617,177			19,778,588
	Basic and diluted net loss per common share is calculated as follows:
		Three Months Ended						Nine Months Ended
		September 30,						September 30,
		2013			2012			2013			2012
	Numerator:
	Net loss	$	(6,803	)	$	(2,375	)	$	(21,982	)	$	(12,743	)
	Net loss attributable to common stockholders	$	(6,803	)	$	(2,375	)	$	(21,982	)	$	(12,743	)
	Denominator:
	Weighted-average common shares outstanding, basic and diluted		6,320,731			4,836,179			5,315,008			4,824,182
	Net loss per common share, basic and diluted	$	(1.08	)	$	(0.49	)	$	(4.14	)	$	(2.64	)

Fair_Value_Measurement

Fair Value Measurement	9 Months Ended
	Sep. 30, 2013
Fair Value Measurement	'
	4. Fair Value Measurement
	The carrying amounts of certain of the Company’s financial instruments, including cash and cash equivalents, net accounts receivable, accounts payable and other accrued liabilities, and accrued compensation and benefits, approximate fair value due to their short-term nature. The carrying value of the Company’s financing obligations approximates fair value, considering the borrowing rates currently available to the Company for financing obligations with similar terms and credit risks.
	The Company uses a three-tier fair value hierarchy to classify and disclose all assets and liabilities measured at fair value on a recurring basis, as well as assets and liabilities measured at fair value on a non-recurring basis, in periods subsequent to their initial measurement. The hierarchy requires the Company to use observable inputs when available, and to minimize the use of unobservable inputs when determining fair value. The three tiers are defined as follows:
		Level 1.	Quoted prices (unadjusted) in active markets for identical assets or liabilities.
		Level 2.	Other inputs that are directly or indirectly observable in the marketplace.
		Level 3.	Unobservable inputs for which there is little or no market data, which require the Company to develop its own assumptions.
	Assets and Liabilities Measured at Fair Value on a Recurring Basis
	The Company evaluates its financial assets and liabilities subject to fair value measurements on a recurring basis to determine the appropriate level to classify them for each reporting period. This determination requires significant judgments to be made.
	The following tables present information about the Company’s assets and liabilities that are measured at fair value on a recurring basis using the above categories, as of September 30, 2013 and December 31, 2012.
			September 30, 2013
	Description		Level 1			Level 2			Level 3		Total
	Cash equivalents:
	Money market mutual funds (1)		$	83,521		$	—		$	—	$	83,521
	Total assets		$	83,521		$	—		$	—	$	83,521
	Liabilities:
	Contingent consideration (2)		$	—		$	—		$	310	$	310
	Total liabilities		$	—		$	—		$	310	$	310
			December 31, 2012
	Description		Level 1			Level 2			Level 3		Total
	Cash equivalents:
	Money market mutual funds (1)		$	18,282		$	—		$	—	$	18,282
	Total assets		$	18,282		$	—		$	—	$	18,282
	Liabilities:
	Contingent consideration (2)		$	—		$	—		$	328	$	328
	Total liabilities		$	—		$	—		$	328	$	328
		-1	Money market funds are classified as cash equivalents in the Company’s unaudited consolidated balance sheets. As short-term, highly liquid investments readily convertible to known amounts of cash, with remaining maturities of three months or less at the time of purchase, the Company’s cash equivalent money market funds have carrying values that approximate fair value.
		-2	Contingent consideration related to acquisitions is classified within Level 3 because the liabilities are valued using significant unobservable inputs. The Company estimated the fair value of the acquisition-related contingent consideration using a probability-weighted discounted cash flow method. On the unaudited consolidated statements of operations and comprehensive loss, change in fair value related to changes in estimated contingent consideration to be paid is included in “Change in fair value of contingent consideration”, and accretion of the discount on contingent consideration is included in “Other expense.”
	Assets Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3)
	The following table presents the changes in the Company’s Level 3 instruments measured at fair value on a recurring basis for the nine months ended September 30:
			2013			2012
	Balance of contingent consideration at January 1		$	328		$	2,538
	Change in fair value			(43	)		169
	Accretion of discount			25			57
	Payment			—			(2,020	)
	Balance of contingent consideration at September 30		$	310		$	744

Notes_Payable

Notes Payable	9 Months Ended
	Sep. 30, 2013
Notes Payable	'
	5. Notes Payable
	At December 31, 2012 the Company had a $6,000 master credit facility under which two senior secured promissory notes totaling $4,535 were outstanding. In March 2013 and June 2013, the Company borrowed an additional $874 and $591, respectively, under two additional senior secured promissory notes bearing interest at fixed annual rates ranging from 3.6% to 3.7% and repayable in equal monthly installments of principal and interest through dates ranging from December 2015 to July 2016.
	On August 27, 2013, the Company entered into a loan and security agreement with Silicon Valley Bank for a revolving line of credit of up to $35,000 for working capital, to fund general business requirements, and to repay the indebtedness under the master credit facility and other senior secured promissory notes. The revolving line of credit limit is eligible to be increased from the initial limit of $15,000 to $35,000, as a result of closing of the Company’s IPO on September 23, 2013. Borrowing capacity under the line of credit is subject to a borrowing base limit described below. Therefore, credit available under the line of credit may be less than the specified limit.
	Amounts borrowed under the line of credit are payable on August 27, 2016. Amounts available under the line of credit are subject to a borrowing base limit which is a function of the Company’s monthly recurring revenue as adjusted to reflect lost customer revenue during the previous quarter. Advances can be designated as LIBOR advances or prime rate advances. LIBOR advances bear interest at 2.75% plus the greater of 0.50% or current LIBOR for the applicable period, generally 30 days, adjusted for certain regulatory reserve requirements. The LIBOR rate is adjusted approximately monthly. Prime Rate advances bear interest at the prime rate as published in the Wall Street Journal.
	The Company made customary affirmative and negative covenants in connection with the loan and security agreement, including financial covenants related to liquidity and revenue growth. In the event of a default, Silicon Valley Bank may declare all obligations immediately due and stop advancing money or extending credit under the line of credit. The line of credit is collateralized by substantially all of the Company’s tangible and intangible assets, including any proceeds of intellectual property (but not the underlying intellectual property itself), and the Company has agreed not to encumber any of its intellectual property without Silicon Valley Bank’s prior written consent. As of September 30, 2013, the Company was in compliance with the covenants.
	On August 30, 2013, the Company borrowed $5,757 under this line of credit, which it used to repay all of the amounts outstanding under its master credit facility and two senior promissory notes with its previous lender. In September 2013, the Company borrowed and repaid an additional $5,000 under this line of credit. As of September 30, 2013, the amount available to borrow under this line of credit was $9,243.

Commitments_and_Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2013
Commitments and Contingencies	'
	6. Commitments and Contingencies
	Capital Lease Commitments
	The Company has entered into various capital lease arrangements to obtain property and equipment for operations. These agreements range from 3 to 5 years with interest rates ranging from 3.6% to 14.9%. The leases are secured by the underlying leased property and equipment.
	In March 2013, the Company entered into a lease with a term of 3 years to finance data processing equipment and software. The total payments under the lease are $1,117. The lease provides for a bargain purchase option at the end of its term. The Company accounts for this arrangement as capital lease.
	Operating Lease Commitments
	The Company leases its primary office space in South Carolina under the terms of two non-cancelable operating leases. The leases have 15-year terms which started in 2006 and 2009. In February 2013, the Company entered into an amendment to the 2009 office lease agreement to rent additional space starting in January 2014.
	In August 2013, the Company entered into an amendment to a 2012 office lease agreement for its facility in Tulsa, Oklahoma. Under the terms of the amendment, the Company has committed to extend its lease term to April 2015.
	For operating leases that contain free rent periods or escalating rent payment provisions, rent expense is recognized over the term of the lease on a straight-line basis. The liability related to the straight-line rent expense is recorded in “Other non-current liabilities.”

StockBased_Compensation

Stock-Based Compensation	9 Months Ended
	Sep. 30, 2013
Stock-Based Compensation	'
	7. Stock-Based Compensation
	The Company maintains a 2000 Stock Option Plan (the “2000 Plan”) and a 2012 Stock Plan (the “2012 Plan”), pursuant to which the Company has reserved 6,289,232 shares of its common stock for issuance to its employees, directors and non-employee third parties. The 2012 Plan, effective on January 31, 2012, serves as the successor to the 2000 Plan and permits the granting of incentive stock options, nonqualified stock options and other equity grants such as restricted stock units. No new awards will be issued under the 2000 Plan as of the effective date of the 2012 Plan. Outstanding awards under the 2000 Plan continue to be subject to the terms and conditions of the 2000 Plan. Shares available for grant under the 2000 Plan, which were reserved but not issued or subject to outstanding awards under the 2000 Plan as of the effective date, were added to the reserves of the 2012 Plan.
	The terms of the stock option grants, including the exercise price per share and vesting periods, were historically determined by the Chairman of the Board who was delegated the authority by the Company’s Board of Directors. The plans are now administered by the Compensation Committee of the Board. Stock options are granted at exercise prices not less than the estimated fair market value of the Company’s common stock at the date of grant. As of September 30, 2013, the Company had 3,427,514 shares allocated to the 2012 Plan, but not yet issued or subject to outstanding options. Generally, the Company issues previously unissued shares for the exercise of stock options; however, previously acquired shares may be reissued to satisfy future issuances. The options typically vest quarterly over a four-year period. The options expire 10 years from the grant date. Compensation expense for the fair value of the options at their grant date is recognized ratably over the vesting schedule.
	Stock-based compensation expense related to stock options is included in the following line items in the accompanying unaudited consolidated statements of operations and comprehensive loss:
		Three months ended						Nine months ended
		September 30,						September 30,
		2013			2012			2013		2012
	Cost of revenue	$	57		$	42		$	188	$	126
	Sales and marketing		29			15			93		45
	Research and development		56			28			189		85
	General and administrative		142			68			351		208
		$	284		$	153		$	821	$	464
	The Company values stock options using the Black-Scholes option-pricing model, which requires the input of subjective assumptions, including the risk-free interest rate, expected life, expected stock price volatility and dividend yield. The risk-free interest rate assumption is based upon observed interest rates for constant maturity U.S. Treasury securities consistent with the expected term of the Company’s employee stock options. The expected life represents the period of time the stock options are expected to be outstanding and is based on the simplified method. Under the simplified method, the expected life of an option is presumed to be the mid-point between the vesting date and the end of the contractual term. The Company used the simplified method due to the lack of sufficient historical exercise data to provide a reasonable basis upon which to otherwise estimate the expected life of the stock options. The Company has a limited history of trading as a public company, therefore expected volatility is based on historical volatilities for publicly traded stock of comparable companies over the estimated expected life of the stock options. The Company assumed no dividend yield because it does not expect to pay dividends in the near future, which is consistent with the Company’s history of not paying dividends.
	The following table summarizes the assumptions used for estimating the fair value of stock options granted for the nine months ended September 30:
		2013			2012
	Risk-free interest rate		1.0% - 1.7	%		0.9% - 1.2	%
	Expected term (years)		6.08			6.08
	Expected volatility		52	%		55	%
	Dividend yield		0	%		0	%
	Weighted-average grant-date fair value per share	$	7.71		$	3.31
	The following is a summary of the option activity for the nine months ended September 30, 2013:
		Number of			Weighted			Weighted		Aggregate
		Options			Average			Average		Intrinsic Value
					Exercise			Remaining
					Price			Contractual
								Term
								(in years)
	Outstanding balance at December 31, 2012		3,121,064		$	6.15
	Granted		172,000			13.53
	Exercised		(147,021	)		3.87
	Forfeited		(27,042	)		5.73
	Expired		(1,824	)		1.52
	Outstanding balance at September 30, 2013		3,117,177		$	6.67			5.21	$	130,256
	Exercisable at September 30, 2013		2,373,254		$	5.61			4.11	$	101,706
	Vested and expected to vest at September 30, 2013		3,057,582		$	6.62			5.15	$	127,924
	The total compensation cost related to nonvested awards not yet recognized as of September 30, 2013 was $3,685 and will be recognized over a weighted average period of approximately 3.1 years. The aggregate intrinsic value of employee options exercised during the nine months ended September 30, 2013 and 2012 was $4,014 and $154, respectively.

Warrants

Warrants	9 Months Ended
	Sep. 30, 2013
Warrants	'
	8. Warrants
	During 2009, in connection with a new five-year contract executed with a major customer, the Company issued a warrant to the customer for the right to purchase 500,000 shares of common stock at $5.48 per share. The warrant was issued from the stock option pool of shares approved by the Board of Directors. Under the terms of the warrant, the warrant expires in 10 years. The customer was originally entitled to exercise the warrant in its entirety in 9.5 years, with earlier exercise rights for all or part of the warrant under certain conditions. The original terms of the warrant also provided that, in the event the customer cancelled the contract prior to the end of the five-year term, one half of the warrant would be forfeited. In March 2013, the Company accelerated the vesting of the warrant, making it fully exercisable. As a result of the modification, quarterly remeasurement of the warrant is no longer required. The reduction to revenue related to the warrant during the three months ended September 30, 2013 and 2012 was $223 and $126, respectively. For the nine months ended September 30, 2013 and 2012 the reduction to revenue related to the warrant was $669 and $320, respectively.

Income_Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2013
Income Taxes	'
	9. Income Taxes
	The Company’s effective federal tax rate for the three and nine months ended September 30, 2013 was less than one percent primarily as a result of estimated tax losses for the fiscal year offset by the change in the valuation allowance on the net operating loss carryforwards. Current tax expense relates primarily to state income taxes. The tax benefit for the three and nine months ended September 30, 2013 is primarily due to the true-up of state income tax expense based on the tax return filings for the year ended December 31, 2012 which were filed during September 2013.

Segments_and_Geographic_Inform

Segments and Geographic Information	9 Months Ended
	Sep. 30, 2013
Segments and Geographic Information	'
	10. Segments and Geographic Information
	Operating segments are defined as components of an enterprise for which discrete financial information is available that is evaluated regularly by the chief operating decision maker (“CODM”) for purposes of allocating resources and evaluating financial performance. The Company’s CODM, the Chief Executive Officer, reviews financial information presented on a consolidated basis, accompanied by information about operating segments, for purposes of allocating resources and evaluating financial performance.
	The Company’s reportable segments are based on the type of customer. The Company determined its operating segments to be: Employer, which derives substantially all of its revenue from customers that use the Company’s services for the provision of benefits to their employees, and administrators acting on behalf of employers; and Carrier, which derives substantially all of its revenue from insurance companies that provide coverage at their own risk.
	The Company evaluates the performance of its operating segments based on operating income. The Company does not allocate interest income, interest expense or income tax expense by segment. Accordingly, the Company does not report such information. Additionally, Employer and Carrier segments share the majority of the Company’s assets. Therefore, no segment asset information is evaluated or reported.
		Three Months Ended						Nine Months Ended
		September 30,						September 30,
		2013			2012			2013			2012
	Revenue from external customers by segment:
	Employer	$	9,823		$	5,911		$	27,417		$	16,372
	Carrier		16,494			14,922			47,079			43,159
	Total net revenue from external customers	$	26,317		$	20,833		$	74,496		$	59,531
	Depreciation and amortization by segment:
	Employer	$	683		$	574		$	2,045		$	1,978
	Carrier		1,292			1,239			3,682			4,589
	Total depreciation and amortization	$	1,975		$	1,813		$	5,727		$	6,567
	Income (loss) from operations by segment:
	Employer	$	(7,100	)	$	(4,648	)	$	(19,543	)	$	(16,440	)
	Carrier		334			2,339			(2,189	)		3,901
	Total loss from operations	$	(6,766	)	$	(2,309	)	$	(21,732	)	$	(12,539	)
	Substantially all assets were held and all revenue was generated in the United States during the nine months ended September 30, 2013 and 2012.

Related_Parties

Related Parties	9 Months Ended
	Sep. 30, 2013
Related Parties	'
	11. Related Parties
	Related Party Operating Leases
	The Company leases its primary office space under the terms of two non-cancelable operating leases from an entity owned and controlled by two of the Company’s directors, significant stockholders and executives. The leases have 15-year terms which started in 2006 and 2009. The Company has an option to renew the leases for five additional years. The leases provide for 3.0% fixed annual rent increases. Expenses related to these agreements, consisting of rent on a straight-line basis and related facilities expenses, were $1,012 and $996 for the three months ended September 30, 2013 and 2012, respectively and $3,038 and $2,559 for the nine months ended September 30, 2013 and 2012, respectively. Amounts due to the related party were $210 and $234 of September 30, 2013 and December 31, 2012, respectively. Amounts due to the related party were recorded “Accrued expenses” as of September 30, 2013 and “Accounts payable” as of December 31, 2012.
	Related Party Travel Expenses
	The Company utilizes the services of a private air transportation company that is owned and controlled by one of the Company’s directors, significant stockholders and executives. Expenses related to this company were $87 and $18 for the three months ended September 30, 2013 and 2012, respectively, and $242 and $106 for the nine months ended September 30, 2013 and 2012, respectively. Amounts due to this company party were $64 as of September 30, 2013 and were recorded in “Accrued expenses.”

Summary_of_Significant_Account1

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2013
Principles of Consolidation	'
	Principles of Consolidation
	These unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). The unaudited consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.
Interim Unaudited Consolidated Financial Information	'
	Interim Unaudited Consolidated Financial Information
	The accompanying unaudited consolidated financial statements and footnotes have been prepared in accordance with GAAP as contained in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (the “Codification” or “ASC”) for interim financial information, and with Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, the interim financial information includes all adjustments of a normal recurring nature necessary for a fair presentation of the results of operations, financial position, changes in stockholders’ equity (deficit) and cash flows. The results of operations for the three and nine-month periods ended September 30, 2013 are not necessarily indicative of the results for the full year or the results for any future periods. These unaudited consolidated financial statements should be read in conjunction with the audited financial statements and related footnotes for the year ended December 31, 2012 included in the Company’s final prospectus filed pursuant to Rule 424(b) under the Securities Act of 1933, as amended, with the SEC on September 18, 2013.
Use of Estimates	'
	Use of Estimates
	The preparation of financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the reported amounts in the consolidated financial statements and accompanying notes. Such estimates include revenue recognition and the customer relationship period, allowances for doubtful accounts and returns, valuations of deferred income taxes, long-lived assets, warrants, the useful lives of assets, capitalizable software development costs and the related amortization, contingent consideration, stock-based compensation, annual bonus attainment, acquired intangibles, and goodwill. Determination of these transactions and account balances are based on the Company’s estimates and judgments. These estimates are based on the Company’s knowledge of current events and actions it may undertake in the future as well as on various other assumptions that it believes to be reasonable. Actual results could differ from these estimates.
Revenue and Deferred Revenue	'
	Revenue and Deferred Revenue
	The Company derives the majority of its revenue from software services fees, which consist primarily of monthly subscription fees paid by customers for access to and usage of the Company’s cloud-based benefits software solutions for a specified contract term. The Company also derives revenue from professional services which primarily include fees related to the integration of customers’ systems with the Company’s platform, which typically includes discovery, configuration, deployment, testing, and training.
	The Company recognizes revenue when there is persuasive evidence of an arrangement, the service has been provided, the fees to be paid by the customer are fixed and determinable and collectability is reasonably assured. The Company considers delivery of its cloud-based software services has commenced once it has granted the customer access to its platform.
	The Company’s arrangements generally contain multiple elements comprised of software services and professional services. The Company evaluates each element in an arrangement to determine whether it represents a separate unit of accounting. An element constitutes a separate unit of accounting when the delivered item has standalone value and delivery of the undelivered element is probable and within the Company’s control. The Company’s professional services are not sold separately from the software services and there is no alternative use for them. As such, the Company has determined that the professional services do not have standalone value. Accordingly, software services and professional services are combined and recognized as a single unit of accounting.
	The Company generally recognizes software services fees monthly based on the number of employees covered by the relevant benefits plans at contracted rates for a specified period of time, once the criteria for revenue recognition described above have been satisfied. The Company defers recognition of revenue for professional services fees paid by customers in connection with its software services, and begins recognizing such revenue once the services are performed and the software services have commenced, ratably over the longer of the contract term or the estimated expected life of the customer relationship. Costs incurred by the Company in connection with providing such professional services are charged to expense as incurred and are included in “Cost of revenue.”
Cost of Revenue	'
	Cost of Revenue
	Cost of revenue primarily consists of employee compensation, professional services, data center co-location costs, networking expenses, depreciation expenses for computer equipment directly associated with generating revenue, amortization expenses for capitalized software development costs, and infrastructure maintenance costs. In addition, the Company allocates a portion of overhead, such as rent, additional depreciation and amortization expense, and employee benefit costs, to cost of revenue based on headcount.
Concentrations of Credit Risk	'
	Concentrations of Credit Risk
	The Company’s financial instruments that are exposed to concentrations of credit risk consist primarily of cash equivalents and accounts receivable. All of the Company’s cash and cash equivalents are held at financial institutions that management believes to be of high credit quality. The bank deposits of the Company might, at times, exceed federally insured limits and are generally uninsured and uncollateralized. The Company has not experienced any losses on cash and cash equivalents to date. To manage accounts receivable risk, the Company evaluates the creditworthiness of its customers and maintains an allowance for doubtful accounts.
	Accounts receivable were unsecured and were derived from revenue earned from customers located in the United States. Accounts receivable from one customer, Aetna, represented 16.2% and 18.2% of the total accounts receivable at September 30, 2013 and December 31, 2012, respectively.
	Revenue from the Company’s largest customer, Aetna, represented 10.4% of total revenue for the three months ended September 30, 2013 and 10.4% and 10.8% of total revenue for the three and nine-month periods ended September 30, 2012, respectively. Additionally, revenue from two affiliated customers, BlueCross BlueShield of South Carolina and BlueChoice HealthPlan, represented 10.5% and 10.2% of total revenue for three- and nine-month periods ended September 30, 2012, respectively. Revenue from these customers is reported in the Company’s Carrier segment. No customer represented more than 10% of total revenue for the nine months ended September 30, 2013.
Accounts Receivable and Allowance for Doubtful Accounts and Returns	'
	Accounts Receivable and Allowance for Doubtful Accounts and Returns
	Accounts receivable is stated at realizable value, net of allowances for doubtful accounts and returns. The Company utilizes the allowance method to provide for doubtful accounts based on management’s evaluation of the collectability of amounts due, and other relevant factors. Bad debt expense is recorded in general and administrative expense on the unaudited consolidated statements of operations and comprehensive loss. The Company’s estimate is based on historical collection experience and a review of the current status of accounts receivable. Historically, actual write-offs for uncollectible accounts have not significantly differed from the Company’s estimates. The Company removes recorded receivables and the associated allowances when they are deemed permanently uncollectible. However, higher than expected bad debts may result in future write-offs that are greater than the Company’s estimates. The allowance for doubtful accounts was $131 and $130 as of September 30, 2013 and December 31, 2012, respectively.
	The allowances for returns are accounted for as reductions of revenue and are estimated based on the Company’s periodic assessment of historical experience and trends. The Company considers factors such as the time lag since the initiation of revenue recognition, historical reasons for adjustments, new customer volume, complexity of billing arrangements, timing of software availability, and past due customer billings. The allowance for returns was $659 and $770 as of September 30, 2013 and December 31, 2012, respectively.
Capitalized Software Development Costs	'
	Capitalized Software Development Costs
	The Company capitalizes certain costs related to its software developed or obtained for internal use. Costs related to preliminary project activities and post-implementation activities are expensed as incurred. Internal and external costs incurred during the application development stage, including upgrades and enhancements representing modifications that will result in significant additional functionality, are capitalized. Software maintenance and training costs are expensed as incurred. Capitalized costs are recorded as part of property and equipment and are amortized on a straight-line basis over the software’s estimated useful life. The Company evaluates the useful lives of these assets on at least an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets.
	In the three months ended September 30, 2013 and 2012, the Company capitalized software development costs of $971 and $858, and amortized capitalized software development costs of $662 and $554, respectively. In the nine months ended September 30, 2013 and 2012, the Company capitalized software development costs of $2,350 and $2,497, and amortized capitalized software development costs of $1,904 and $2,664, respectively. The net book value of capitalized software development costs was $4,415 and $3,969 at September 30, 2013 and December 31, 2012, respectively. Capitalized software amortization for the nine months ended September 30, 2012, included an impairment of $1,051. The impairment relates to certain software developed for internal use that the Company determined was no longer probable to produce cash flows for the remainder of the respective useful lives.
Comprehensive Loss	'
	Comprehensive Loss
	The Company’s net loss equals comprehensive loss for all periods presented, as the Company has no components of other comprehensive income (loss).
Stock-Based Employee Compensation	'
	Stock-Based Employee Compensation
	Stock-based employee compensation is measured based on the grant-date fair value of the awards and recognized in the unaudited consolidated statements of operations and comprehensive loss over the period during which the optionholder is required to perform services in exchange for the award, which is the vesting period, using the straight-line method. The Company uses the Black-Scholes option pricing model for estimating the fair value of stock options. The use of the option valuation model requires the input of subjective assumptions, including the fair value of the Company’s common stock, the expected life of the option and the expected stock price volatility based on peer companies. Additionally, the recognition of stock-based compensation expense requires the estimation of the number of options that will ultimately vest and the number of options that will ultimately be forfeited.
Recently Adopted Accounting Pronouncements	'
	Recently Adopted Accounting Pronouncements
	In July 2012, the FASB issued ASU 2012-02, “Intangibles—Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment”, which is intended to reduce the cost and complexity of performing an impairment test for indefinite-lived intangible assets by providing entities an option to perform a “qualitative” assessment to determine whether further impairment testing is necessary. The Company’s adoption of this statement, effective January 1, 2013, did not have any impact on the Company’s consolidated financial statements.
	In February 2013, the FASB issued ASU 2013-02, “Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income”, which requires entities to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, ASU 2013-02 requires presentation, either on the face of the income statement or in the notes, of significant amounts reclassified out of accumulated other comprehensive income by respective line items of net income, but only if the amounts reclassified are required to be reclassified in their entirety in the same reporting period. For amounts that are not required to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures that provide additional details about these amounts. The Company prospectively adopted ASU 2013-02 effective January 1, 2013. The adoption of this pronouncement did not have any impact on the Company’s consolidated financial statements.

Net_Loss_Per_Common_Share_Tabl

Net Loss Per Common Share (Tables)	9 Months Ended
	Sep. 30, 2013
Common Share Equivalent Securities Excluded from Calculation of Weighted-Average Common Shares Outstanding	'
	The following common share equivalent securities have been excluded from the calculation of weighted average common shares outstanding because the effect is anti-dilutive for the periods presented:
		As of September 30,
	Anti-Dilutive Common Share Equivalents	2013			2012
	Redeemable convertible preferred stock:
	Series A		—			14,055,851
	Series B		—			2,441,009
	Stock options		3,117,177			2,781,728
	Warrants to purchase common stock		500,000			500,000
	Total anti-dilutive common share equivalents		3,617,177			19,778,588
Basic and Diluted Net Loss Per Common Share	'
	Basic and diluted net loss per common share is calculated as follows:
		Three Months Ended						Nine Months Ended
		September 30,						September 30,
		2013			2012			2013			2012
	Numerator:
	Net loss	$	(6,803	)	$	(2,375	)	$	(21,982	)	$	(12,743	)
	Net loss attributable to common stockholders	$	(6,803	)	$	(2,375	)	$	(21,982	)	$	(12,743	)
	Denominator:
	Weighted-average common shares outstanding, basic and diluted		6,320,731			4,836,179			5,315,008			4,824,182
	Net loss per common share, basic and diluted	$	(1.08	)	$	(0.49	)	$	(4.14	)	$	(2.64	)

Fair_Value_Measurement_Tables

Fair Value Measurement (Tables)	9 Months Ended
	Sep. 30, 2013
Assets and Liabilities Measured at Fair Value on Recurring Basis	'
	The following tables present information about the Company’s assets and liabilities that are measured at fair value on a recurring basis using the above categories, as of September 30, 2013 and December 31, 2012.
			September 30, 2013
	Description		Level 1			Level 2			Level 3		Total
	Cash equivalents:
	Money market mutual funds (1)		$	83,521		$	—		$	—	$	83,521
	Total assets		$	83,521		$	—		$	—	$	83,521
	Liabilities:
	Contingent consideration (2)		$	—		$	—		$	310	$	310
	Total liabilities		$	—		$	—		$	310	$	310
			December 31, 2012
	Description		Level 1			Level 2			Level 3		Total
	Cash equivalents:
	Money market mutual funds (1)		$	18,282		$	—		$	—	$	18,282
	Total assets		$	18,282		$	—		$	—	$	18,282
	Liabilities:
	Contingent consideration (2)		$	—		$	—		$	328	$	328
	Total liabilities		$	—		$	—		$	328	$	328
		-1	Money market funds are classified as cash equivalents in the Company’s unaudited consolidated balance sheets. As short-term, highly liquid investments readily convertible to known amounts of cash, with remaining maturities of three months or less at the time of purchase, the Company’s cash equivalent money market funds have carrying values that approximate fair value.
		-2	Contingent consideration related to acquisitions is classified within Level 3 because the liabilities are valued using significant unobservable inputs. The Company estimated the fair value of the acquisition-related contingent consideration using a probability-weighted discounted cash flow method. On the unaudited consolidated statements of operations and comprehensive loss, change in fair value related to changes in estimated contingent consideration to be paid is included in “Change in fair value of contingent consideration”, and accretion of the discount on contingent consideration is included in “Other expense.”
Changes in Level 3 Instruments Measured at Fair Value on Recurring Basis	'
	The following table presents the changes in the Company’s Level 3 instruments measured at fair value on a recurring basis for the nine months ended September 30:
			2013			2012
	Balance of contingent consideration at January 1		$	328		$	2,538
	Change in fair value			(43	)		169
	Accretion of discount			25			57
	Payment			—			(2,020	)
	Balance of contingent consideration at September 30		$	310		$	744

StockBased_Compensation_Tables

Stock-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2013
Stock-Based Compensation Expense Related to Stock Options	'
	Stock-based compensation expense related to stock options is included in the following line items in the accompanying unaudited consolidated statements of operations and comprehensive loss:
		Three months ended						Nine months ended
		September 30,						September 30,
		2013			2012			2013		2012
	Cost of revenue	$	57		$	42		$	188	$	126
	Sales and marketing		29			15			93		45
	Research and development		56			28			189		85
	General and administrative		142			68			351		208
		$	284		$	153		$	821	$	464
Assumptions Used for Estimating Fair Value of Stock Options	'
	The following table summarizes the assumptions used for estimating the fair value of stock options granted for the nine months ended September 30:
		2013			2012
	Risk-free interest rate		1.0% - 1.7	%		0.9% - 1.2	%
	Expected term (years)		6.08			6.08
	Expected volatility		52	%		55	%
	Dividend yield		0	%		0	%
	Weighted-average grant-date fair value per share	$	7.71		$	3.31
Summary of Option Activity	'
	The following is a summary of the option activity for the nine months ended September 30, 2013:
		Number of			Weighted			Weighted		Aggregate
		Options			Average			Average		Intrinsic Value
					Exercise			Remaining
					Price			Contractual
								Term
								(in years)
	Outstanding balance at December 31, 2012		3,121,064		$	6.15
	Granted		172,000			13.53
	Exercised		(147,021	)		3.87
	Forfeited		(27,042	)		5.73
	Expired		(1,824	)		1.52
	Outstanding balance at September 30, 2013		3,117,177		$	6.67			5.21	$	130,256
	Exercisable at September 30, 2013		2,373,254		$	5.61			4.11	$	101,706
	Vested and expected to vest at September 30, 2013		3,057,582		$	6.62			5.15	$	127,924

Segments_and_Geographic_Inform1

Segments and Geographic Information (Tables)	9 Months Ended
	Sep. 30, 2013
Segments and Geographic Information	'
		Three Months Ended							Nine Months Ended
		September 30,							September 30,
			2013			2012				2013			2012
	Revenue from external customers by segment:
	Employer		$	9,823		$	5,911			$	27,417		$	16,372
	Carrier			16,494			14,922				47,079			43,159
	Total net revenue from external customers		$	26,317		$	20,833			$	74,496		$	59,531
	Depreciation and amortization by segment:
	Employer		$	683		$	574			$	2,045		$	1,978
	Carrier			1,292			1,239				3,682			4,589
	Total depreciation and amortization		$	1,975		$	1,813			$	5,727		$	6,567
	Income (loss) from operations by segment:
	Employer		$	(7,100	)	$	(4,648	)		$	(19,543	)	$	(16,440	)
	Carrier			334			2,339				(2,189	)		3,901
	Total loss from operations		$	(6,766	)	$	(2,309	)		$	(21,732	)	$	(12,539	)

Organization_and_Description_o1

Organization and Description of Business - Additional Information (Detail) (USD $)	1 Months Ended	9 Months Ended
In Thousands, except Share data, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2013
Organization And Description Of Business [Line Items]	'	'
Net proceeds from initial public offering	$70,064	$70,064
Underwriting discounts and commissions	5,565	'
Other offering expenses	$3,871	'
Conversion of redeemable convertible preferred units into common stock	16,496,860	'
Common stock par value	$0.00	$0.00
IPO	'	'
Organization And Description Of Business [Line Items]	'	'
Stock issued, shares	3,000,000	'
Stock issued, public offering price	$26.50	$26.50
Existing shareholders	'	'
Organization And Description Of Business [Line Items]	'	'
Stock issued, shares	2,675,250	'

Summary_of_Significant_Account2

Summary of Significant Accounting Policies - Additional Information (Detail) (USD $)

3 Months Ended

9 Months Ended

9 Months Ended

12 Months Ended

3 Months Ended

9 Months Ended

3 Months Ended

9 Months Ended

In Thousands, unless otherwise specified

Sep. 30, 2013

Sep. 30, 2012

Sep. 30, 2013

Sep. 30, 2012

Dec. 31, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Sep. 30, 2012

Sep. 30, 2012

Sep. 30, 2012

Sep. 30, 2012

Customer

Allowance for Returns

Allowance for Returns

Accounts Receivable

Accounts Receivable

Sales Revenue, Net

Sales Revenue, Net

Sales Revenue, Net

Sales Revenue, Net

Sales Revenue, Net

Aetna

Aetna

Aetna

Aetna

Aetna

BlueCross BlueShield of South Carolina and BlueChoice HealthPlan

BlueCross BlueShield of South Carolina and BlueChoice HealthPlan

Summary of Significant Accounting Policies [Line Items]

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Concentration risk, percentage

'

'

'

'

'

'

'

16.20%

18.20%

10.40%

10.40%

10.80%

10.50%

10.20%

Number of customers exceeded 10% of total revenue

'

'

0

'

'

'

'

'

'

'

'

'

'

'

Allowance for doubtful accounts

$131

'

$131

'

$130

'

'

'

'

'

'

'

'

'

Allowance for returns

'

'

'

'

'

659

770

'

'

'

'

'

'

'

Capitalized software development costs

971

858

2,350

2,497

'

'

'

'

'

'

'

'

'

'

Capitalized software development costs, amortization

662

554

1,904

2,664

'

'

'

'

'

'

'

'

'

'

Capitalized software development costs, net

4,415

'

4,415

'

3,969

'

'

'

'

'

'

'

'

'

Impairment of capitalized software development costs

'

'

'

$1,051

'

'

'

'

'

'

'

'

'

'

Common_Share_Equivalents_Secur

Common Share Equivalents Securities Excluded From Calculation of Weighted Average Common Share Outstanding (Detail)	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]	'	'
Antidilutive common share equivalents	3,617,177	19,778,588
Series A Redeemable Convertible Preferred Stock	'	'
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]	'	'
Antidilutive common share equivalents	'	14,055,851
Series B Redeemable Convertible Preferred Stock	'	'
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]	'	'
Antidilutive common share equivalents	'	2,441,009
Stock Options	'	'
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]	'	'
Antidilutive common share equivalents	3,117,177	2,781,728
Warrant to Purchase Common Stock	'	'
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]	'	'
Antidilutive common share equivalents	500,000	500,000

Basic_and_Diluted_Net_Loss_Per

Basic and Diluted Net Loss Per Common Share (Detail) (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Share data, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Numerator:	'	'	'	'
Net loss	($6,803)	($2,375)	($21,982)	($12,743)
Net loss attributable to common stockholders	($6,803)	($2,375)	($21,982)	($12,743)
Denominator:	'	'	'	'
Weighted-average common shares outstanding, basic and diluted	6,320,731	4,836,179	5,315,008	4,824,182
Net loss per common share, basic and diluted	($1.08)	($0.49)	($4.14)	($2.64)

Assets_and_Liabilities_Measure

Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) (USD $)	Sep. 30, 2013		Dec. 31, 2012
In Thousands, unless otherwise specified
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'		'
Total assets	$83,521		$18,282
Contingent consideration	310	[1]	328	[1]
Total liabilities	310		328
Money market mutual funds	'		'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'		'
Cash equivalents	83,521	[2]	18,282	[2]
Level 1	'		'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'		'
Total assets	83,521		18,282
Level 1 | Money market mutual funds	'		'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'		'
Cash equivalents	83,521	[2]	18,282	[2]
Level 3	'		'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'		'
Contingent consideration	310	[1]	328	[1]
Total liabilities	$310		$328
[1]	Contingent consideration related to acquisitions is classified within Level 3 because the liabilities are valued using significant unobservable inputs. The Company estimated the fair value of the acquisition-related contingent consideration using a probability-weighted discounted cash flow method. On the unaudited consolidated statements of operations and comprehensive loss, change in fair value related to changes in estimated contingent consideration to be paid is included in "Change in fair value of contingent consideration", and accretion of the discount on contingent consideration is included in "Other expense."
[2]	Money market funds are classified as cash equivalents in the Company's unaudited consolidated balance sheets. As short-term, highly liquid investments readily convertible to known amounts of cash, with remaining maturities of three months or less at the time of purchase, the Company's cash equivalent money market funds have carrying values that approximate fair value.

Changes_in_Level_3_Instruments

Changes in Level 3 Instruments Measured at Fair Value on a Recurring Basis (Detail) (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]	'	'
Beginning balance of contingent consideration	$328	$2,538
Change in fair value	-43	169
Accretion of discount	25	57
Payment	'	-2,020
Ending balance of contingent consideration	$310	$744

Notes_Payable_Additional_Infor

Notes Payable - Additional Information (Detail) (USD $)	1 Months Ended	9 Months Ended	1 Months Ended
In Thousands, unless otherwise specified	Aug. 30, 2013	Sep. 30, 2013	Aug. 27, 2013	Aug. 27, 2013	Aug. 27, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2013	Sep. 30, 2013
			Revolving Line of Credit	Revolving Line of Credit	Revolving Line of Credit	Credit Facility Notes	Credit Facility Notes	Credit Facility Notes	Credit Facility Notes	Credit Facility Notes
				LIBOR	Maximum				Minimum	Maximum
					LIBOR
Debt Instrument [Line Items]	'	'	'	'	'	'	'	'	'	'
Line of credit facility maximum borrowing capacity	'	'	$35,000	'	'	'	'	$6,000	'	'
Amount outstanding under credit facility	'	'	'	'	'	'	'	4,535	'	'
Proceeds from notes payable borrowing	'	1,465	'	'	'	591	874	'	'	'
Fixed annual interest rates	'	'	'	'	'	'	'	'	3.60%	3.70%
Line of credit facility current borrowing capacity	'	'	15,000	'	'	'	'	'	'	'
Line of credit facility expiration date	'	'	27-Aug-16	'	'	'	'	'	'	'
Line of credit facility interest rate	'	'	'	2.75%	'	'	'	'	'	'
Line of credit facility basis spread on variable rate	'	'	'	'	0.50%	'	'	'	'	'
Period of variable interest rate	'	'	'	'30 days	'	'	'	'	'	'
Proceeds from line of credit borrowing	5,757	10,757	'	'	'	'	'	'	'	'
Payments on revolving line of credit	'	5,000	'	'	'	'	'	'	'	'
Amount available to borrow under line of credit	'	$9,243	'	'	'	'	'	'	'	'

Commitments_and_Contingencies_

Commitments and Contingencies - Additional Information (Detail) (USD $)	9 Months Ended				1 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2013	Mar. 31, 2013
	Leases		Property and Equipment for Operations	Property and Equipment for Operations	Data Processing Equipment and Software
			Minimum	Maximum
Commitments and Contingencies Disclosure [Line Items]	'	'	'	'	'
Capital lease agreement period	'	'	'3 years	'5 years	'3 years
Interest rate under lease agreement	'	'	3.60%	14.90%	'
Total payment under capital lease	$1,087	$1,071	'	'	$1,117
Number of non cancelable operating leases	2	'	'	'	'
Operating leases term	'15 years	'	'	'	'

StockBased_Compensation_Additi

Stock-Based Compensation - Additional Information (Detail) (USD $)	9 Months Ended
In Thousands, except Share data, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Jan. 31, 2012
Share Based Compensation Arrangements By Share Based Payment Award Options [Line Items]	'	'	'
Number of common shares reserved for issuance under stock plans	'	'	6,289,232
Total compensation cost related to nonvested awards not yet recognized	$3,685	'	'
Total compensation cost related to nonvested awards not yet recognized period	'3 years 1 month 6 days	'	'
Aggregate intrinsic value of employee options exercised	$4,014	$154	'
2012 Plan	'	'	'
Share Based Compensation Arrangements By Share Based Payment Award Options [Line Items]	'	'	'
Share allocated to stock option plan	3,427,514	'	'
Stock plan vesting period	'4 years	'	'
Stock plan expiration period from grant date	'10 years	'	'

StockBased_Compensation_Expens

Stock-Based Compensation Expense Related to Stock Options (Detail) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]	'	'	'	'
Share-based compensation expense	$284	$153	$821	$464
Cost of revenue	'	'	'	'
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]	'	'	'	'
Share-based compensation expense	57	42	188	126
Sales and marketing	'	'	'	'
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]	'	'	'	'
Share-based compensation expense	29	15	93	45
Research and development	'	'	'	'
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]	'	'	'	'
Share-based compensation expense	56	28	189	85
General and administrative	'	'	'	'
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]	'	'	'	'
Share-based compensation expense	$142	$68	$351	$208

Assumptions_Used_For_Estimatin

Assumptions Used For Estimating Fair Value of Stock Options Granted (Detail) (USD $)	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'
Risk-free interest rate, minimum	1.00%	0.90%
Risk-free interest rate, maximum	1.70%	1.20%
Expected term (years)	'6 years 29 days	'6 years 29 days
Expected volatility	52.00%	55.00%
Dividend yield	0.00%	0.00%
Weighted-average grant-date fair value per share	$7.71	$3.31

Summary_of_Option_Activity_Det

Summary of Option Activity (Detail) (USD $)	9 Months Ended
In Thousands, except Share data, unless otherwise specified	Sep. 30, 2013
Stock options	'
Beginning Balance	3,121,064
Granted	172,000
Exercised	-147,021
Forfeited	-27,042
Expired	-1,824
Ending Balance	3,117,177
Exercisable	2,373,254
Vested and expected to vest	3,057,582
Weighted Average Exercise Price	'
Beginning Balance	$6.15
Granted	$13.53
Exercised	$3.87
Forfeited	$5.73
Expired	$1.52
Ending Balance	$6.67
Exercisable	$5.61
Vested and expected to vest	$6.62
Weighted Average Remaining Contractual Term	'
Outstanding	'5 years 2 months 16 days
Exercisable	'4 years 1 month 10 days
Vested and Expected to Vest	'5 years 1 month 24 days
Aggregate Intrinsic Value	'
Outstanding	$130,256
Exercisable	101,706
Vested and Expected to vest	$127,924

Warrants_Additional_Informatio

Warrants - Additional Information (Detail) (USD $)	3 Months Ended		9 Months Ended		12 Months Ended
In Thousands, except Share data, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2009
Class of Warrant or Right [Line Items]	'	'	'	'	'
Warrant contract term	'	'	'	'	'5 years
Warrant issued, shares	'	'	'	'	500,000
Warrant issued exercise price	'	'	'	'	5.48
Warrant issued, expiration term	'	'	'	'	'10 years
Warrant issued, exercise period	'	'	'	'	'9 years 6 months
Reduction to revenue related to warrant	$223	$126	$669	$320	'

Income_Taxes_Additional_Inform

Income Taxes - Additional Information (Detail)	3 Months Ended	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2013
Income Taxes [Line Items]	'	'
Effective federal tax rate	'Less than one percent	'Less than one percent

Segment_and_Geographic_Informa

Segment and Geographic Information (Detail) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Segment Reporting Information [Line Items]	'	'	'	'
Net revenue from external customers	$26,317	$20,833	$74,496	$59,531
Depreciation and amortization	1,975	1,813	5,727	6,567
Loss from operations	-6,766	-2,309	-21,732	-12,539
Operating Segments | Employer	'	'	'	'
Segment Reporting Information [Line Items]	'	'	'	'
Net revenue from external customers	9,823	5,911	27,417	16,372
Depreciation and amortization	683	574	2,045	1,978
Loss from operations	-7,100	-4,648	-19,543	-16,440
Operating Segments | Carrier	'	'	'	'
Segment Reporting Information [Line Items]	'	'	'	'
Net revenue from external customers	16,494	14,922	47,079	43,159
Depreciation and amortization	1,292	1,239	3,682	4,589
Loss from operations	$334	$2,339	($2,189)	$3,901

Related_Parties_Additional_Inf

Related Parties - Additional Information (Detail) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
Related Party Transaction [Line Items]	'	'	'	'	'
Operating lease agreement period	'	'	'15 years	'	'
Lease renewal option term	'	'	'5 years	'	'
Percentage of fixed annual rent increases	'	'	3.00%	'	'
Lease operating expenses	$1,012	$996	$3,038	$2,559	'
Due to related party	210	'	210	'	234
Transportation service from related party	87	18	242	106	'
Due to related party, current	$64	'	$64	'	'