Benefitfocus (BNFT) 10-Q 3 Aug 18 2018 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2018	Aug. 01, 2018
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q2
Trading Symbol	BNFT
Entity Registrant Name	Benefitfocus,Inc.
Entity Central Index Key	1,576,169
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		31,886,575

Unaudited Consolidated Balance

Unaudited Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 53,292	$ 55,335
Accounts receivable, net	26,771	30,091
Contract, prepaid and other current assets	13,776	15,859
Total current assets	93,839	101,285
Property and equipment, net	71,382	72,681
Intangible assets, net	21	150
Goodwill	1,634	1,634
Deferred contract costs and other non-current assets	14,426	16,253
Total assets	181,302	192,003
Current liabilities:
Accounts payable	845	4,260
Accrued expenses	11,299	9,110
Accrued compensation and benefits	14,707	14,250
Deferred revenue, current portion	36,868	43,804
Revolving line of credit, current portion	28,000	24,000
Financing and capital lease obligations, current portion	4,395	3,423
Total current liabilities	96,114	98,847
Deferred revenue, net of current portion	14,100	11,223
Revolving line of credit, net of current portion	39,246	32,246
Financing and capital lease obligations, net of current portion	56,765	55,597
Other non-current liabilities	2,589	2,809
Total liabilities	208,814	200,722
Commitments and contingencies
Stockholders' deficit:
Preferred stock, par value $0.001, 5,000,000 shares authorized, no shares issued and outstanding at June 30, 2018 and December 31, 2017	0	0
Common stock, par value $0.001, 50,000,000 shares authorized, 31,825,997 and 31,307,989 shares issued and outstanding at June 30, 2018 and December 31, 2017, respectively	32	31
Additional paid-in capital	361,765	352,496
Accumulated deficit	(389,309)	(361,246)
Total stockholders' deficit	(27,512)	(8,719)
Total liabilities and stockholders' deficit	$ 181,302	$ 192,003

Unaudited Consolidated Balance3

Unaudited Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2018	Dec. 31, 2017
Statement Of Financial Position [Abstract]
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	50,000,000	50,000,000
Common stock, shares issued	31,825,997	31,307,989
Common stock, shares outstanding	31,825,997	31,307,989

Unaudited Consolidated Statemen

Unaudited Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Income Statement [Abstract]
Revenue	$ 60,581	$ 55,089	$ 122,944	$ 112,712
Cost of revenue	30,721	29,696	62,124	61,898
Gross profit	29,860	25,393	60,820	50,814
Operating expenses:
Sales and marketing	18,400	17,863	38,317	35,886
Research and development	12,128	12,473	24,151	24,654
General and administrative	10,387	5,877	20,080	13,634
Total operating expenses	40,915	36,213	82,548	74,174
Loss from operations	(11,055)	(10,820)	(21,728)	(23,360)
Other expense:
Interest income	68	47	126	74
Interest expense on building lease financing obligations	(1,867)	(1,861)	(3,733)	(3,721)
Interest expense on other borrowings	(1,415)	(1,210)	(2,732)	(2,272)
Other income (expense)	13	(1)	13	(149)
Total other expense, net	(3,201)	(3,025)	(6,326)	(6,068)
Loss before income taxes	(14,256)	(13,845)	(28,054)	(29,428)
Income tax expense	5	5	9	5
Net loss	(14,261)	(13,850)	(28,063)	(29,433)
Comprehensive loss	$ (14,261)	$ (13,850)	$ (28,063)	$ (29,433)
Net loss per common share:
Basic and diluted	$ (0.45)	$ (0.45)	$ (0.89)	$ (0.95)
Weighted-average common shares outstanding:
Basic and diluted	31,806,972	31,076,995	31,571,468	30,868,888

Unaudited Consolidated Stateme5

Unaudited Consolidated Statement of Changes in Stockholders' Deficit - 6 months ended Jun. 30, 2018 - USD ($) $ in Thousands	Total	Previously Reported	Common Stock, $0.001 Par Value	Common Stock, $0.001 Par ValuePreviously Reported	Additional Paid-in Capital	Additional Paid-in CapitalPreviously Reported	Accumulated Deficit	Accumulated DeficitPreviously Reported
Balance at Dec. 31, 2017	$ (8,719)	$ (39,331)	$ 31	$ 31	$ 352,496	$ 355,301	$ (361,246)	$ (394,663)
Balance (in shares) at Dec. 31, 2017	31,307,989		31,307,989	31,307,989
Adoption of revenue recognition standard at Dec. 31, 2017	$ 30,612				(2,805)		33,417
Exercise of stock options	90				90
Exercise of stock options (in shares)			13,828
Issuance of common stock upon vesting of restricted stock units	1		$ 1
Issuance of common stock upon vesting of restricted stock units (in shares)			497,158
Issuance of common stock under Employee Stock Purchase Plan, or ESPP	180				180
Issuance of common stock under Employee Stock Purchase Plan, or ESPP (in shares)			7,022
Stock-based compensation expense	8,999				8,999
Net loss	(28,063)						(28,063)
Balance at Jun. 30, 2018	$ (27,512)		$ 32		$ 361,765		$ (389,309)
Balance (in shares) at Jun. 30, 2018	31,825,997		31,825,997

Unaudited Consolidated Stateme6

Unaudited Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Cash flows from operating activities
Net loss	$ (28,063)	$ (29,433)
Adjustments to reconcile net loss to net cash and cash equivalents used in operating activities:
Depreciation and amortization	7,957	7,945
Stock-based compensation expense	8,999	7,250
Interest accrual on financing obligation	3,758	3,747
Loss on disposal or impairment of property and equipment	0	149
Provision for doubtful accounts	364	61
Changes in operating assets and liabilities:
Accounts receivable, net	2,956	5,112
Accrued interest on short-term investments	0	7
Contract, prepaid and other current assets	2,182	5,017
Deferred contract costs and other non-current assets	2,003	3,041
Accounts payable and accrued expenses	(1,110)	(3,197)
Accrued compensation and benefits	458	(2,669)
Deferred revenue	(4,059)	(2,959)
Other non-current liabilities	(218)	(467)
Net cash and cash equivalents used in operating activities	(4,773)	(6,396)
Cash flows from investing activities
Proceeds from maturity of short-term investments held to maturity	0	2,000
Purchases of property and equipment	(3,561)	(3,825)
Net cash and cash equivalents used in investing activities	(3,561)	(1,825)
Cash flows from financing activities
Draws on revolving line of credit	59,000	53,000
Payments on revolving line of credit	(48,000)	(41,000)
Proceeds from exercises of stock options and ESPP	270	3,161
Payments on financing and capital lease obligations	(4,979)	(4,398)
Net cash and cash equivalents provided by financing activities	6,291	10,763
Net (decrease) increase in cash and cash equivalents	(2,043)	2,542
Cash and cash equivalents, beginning of period	55,335	56,853
Cash and cash equivalents, end of period	53,292	59,395
Supplemental disclosure of non-cash investing and financing activities
Property and equipment purchases in accounts payable and accrued expenses	272	732
Property and equipment purchased with financing and capital lease obligations	3,085	0
Post contract support purchased with financing obligations	$ 275	$ 0

Organization and Description of

Organization and Description of Business	6 Months Ended
	Jun. 30, 2018
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Organization and Description of Business	1. Organization and Description of Business Benefitfocus, Inc. (the “Company”) provides a leading cloud-based benefits management platform for consumers, employers, insurance carriers and brokers 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. and BenefitStore, Inc.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2018
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies Principles of Consolidation These consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. We are not the primary beneficiary of, nor do we have a controlling financial interest in, any variable interest entity. Accordingly, we have not consolidated any variable interest entity. 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 and cash flows. The results of operations for the three- and six-month periods ended June 30, 2018 are not necessarily indicative of the results for the full year or for any other future period. These unaudited consolidated financial statements should be read in conjunction with the audited financial statements and related footnotes for the year ended December 31, 2017 included in the Company’s Annual Report on Form 10-K, as amended. 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 allowances for doubtful accounts and returns, valuations of deferred income taxes, long-lived assets, capitalizable software development costs and the related amortization, stock-based compensation, the determination of the useful lives of assets and the impairment assessment of goodwill as well as the estimates disclosed in association with revenue recognition. Determination of these transactions and account balances are based on, among other things, 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 materially from these estimates. Revenue The Company derives its revenues primarily from fees for software services and professional services sold to employers and insurance carriers. Revenues are recognized when control of these services is transferred to customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those services. Taxes collected from customers relating to services and remitted to governmental authorities are excluded from revenues. The Company determines revenue recognition through the following steps: • Identification of each contract with a customer; • Identification of the performance obligations in the contract; • Determination of the transaction price; • Allocation of the transaction price to the performance obligations in the contract; and • Recognition of revenue when, or as, performance obligations are satisfied. Software Services Revenues Software services revenues primarily consist of monthly subscription fees paid to the Company by its employer and insurance carrier customers for access to, and usage of, cloud-based benefits software solutions for a specified contract term. Fees are generally charged based on the number of employees or subscribers with access to the solution. Software services revenue also includes insurance broker commissions from the sale of voluntary and ancillary benefits policies to employees of the Company’s customers. Software services revenues are generally recognized on a ratable basis over the contract term beginning on the date the software services are made available to the customer. The Company’s software service contracts are generally three years for both carrier and employer customers. Revenue from insurance broker commissions is recognized when the orders for the policies are received and transferred to the insurance carrier, and is reduced by estimates for risks from collectability, policy cancellation and termination. Professional Services Revenues Professional services revenues primarily consist of fees related to the implementation of software products purchased by customers. Professional services typically include discovery, configuration and deployment, integration, testing, and training. Fees from consulting services, support services and training are also included in professional services revenue. Revenue from implementation services with customers in the Carrier segment are generally recognized over the contract term of the associated software services contract, including any extension periods representing a material right. The Company utilizes estimates of hours as a measure of progress to determine revenue in certain arrangements. Revenues from implementation services with customers in the Employer segment are generally recognized as those services are performed. Revenues from support and training fees are recognized over the service contract period. Contracts with Multiple Performance Obligations Certain of the Company’s contracts with customers contain multiple performance obligations. For these contracts, the individual performance obligations are accounted for separately if they are distinct. The Company allocates the transaction price to the separate performance obligations based on their relative standalone selling prices. The Company determines the standalone selling prices based on its overall pricing objectives, taking into consideration market conditions and other factors, including the value of its contracts, the software services sold, customer size and complexity, and the number and types of users under the contracts. Practical Expedients Elected In addition to practical expedients disclosed elsewhere in the notes to unaudited consolidated financial statements, the Company has elected to use the practical expedient not to adjust the promised amount of consideration for the effects of a significant financing component for contracts in which the period between transferring a service to a customer and when the customer pays for that service is one year or less. Contract Costs The Company capitalizes costs to obtain contracts that are considered incremental and recoverable, such as sales commissions. Payments of sales commissions generally include multiple payments. The Company capitalizes only those payments made within an insignificant time from the contract inception, typically three months or less. Subsequent payments are expensed as incurred. The capitalized costs are amortized to sales and marketing expense over the estimated period of benefit of the asset, which is generally four to five years. The Company has elected to use the practical expedient to expense the costs to obtain a contract when the amortization period is less than one year. The balance of deferred costs related to obtaining contracts included in deferred contract costs and other non-current assets was $7,219 and $7,376 as of June 30, 2018 and December 31, 2017, respectively. Sales and marketing expense includes $1,059 and $1,142 of amortization for the three months ended June 30, 2018 and 2017, respectively, and $2,161 and $2,304 for the six months ended June 30, 2018 and 2017, respectively. The Company capitalizes contract fulfillment costs directly associated with customer contracts that are not related to satisfying performance obligations. The costs are amortized to cost of revenue expense over the estimated period of benefit, which is generally five years. The balance of deferred fulfillment costs included in deferred contract costs and other non-current assets was $6,380 and $8,060 as of June 30, 2018 and December 31, 2017, respectively. Cost of revenue expense includes $884 and $869 of amortization for the three months ended June 30, 2018 and 2017, respectively, and $1,779 and $1,722 for the six months ended June 30, 2018 and 2017, respectively. 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 are unsecured and derived from revenue earned from customers located in the United States. No customer represented more than 10% of total accounts receivable as of June 30, 2018. Accounts receivable from one customer represented approximately 12% of the total accounts receivable as of December 31, 2017. Revenue from one customer was approximately 16% and 12% of the total revenue in the three-month period ended June 30, 2018 and 2017, respectively, and 14% and 12% of the total revenue in the six-month period ended June 30, 2018 and 2017, respectively. Accounts Receivable and Allowance for Doubtful Accounts and Returns Accounts receivable are 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 in the 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. The Company removes recorded receivables and the associated allowances when they are deemed permanently uncollectible. Historically, actual write-offs for uncollectible accounts have not significantly differed from the Company’s estimates. However, if bad debts are higher than expected, future write-offs will be greater than the Company’s estimates. The allowance for doubtful accounts was $902 and $654 as of June 30, 2018 and December 31, 2017, 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 historical reasons for adjustments, changes in customer volume, complexity of billing arrangements, software availability, and past due customer billings. The allowance for returns was $3,608 and $2,877 as of June 30, 2018 and December 31, 2017, 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 to cost of revenue over the software’s estimated useful life, which is three years. The Company evaluates these assets for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. In the three months ended June 30, 2018 and 2017, the Company capitalized software development costs of $1,319 and $1,102, respectively, and amortized capitalized software development costs of $964 and $794, respectively. In the six months ended June 30, 2018 and 2017, the Company capitalized software development costs of $2,599 and $2,329, respectively, and amortized capitalized software development costs of $1,853 and $1,625, respectively. The net book value of capitalized software development costs was $8,407 and $7,660 at June 30, 2018 and December 31, 2017, respectively. Comprehensive Loss The Company’s net loss equals comprehensive loss for all periods presented. Recently Adopted Accounting Standards Revenue from Contracts with Customers On January 1, 2018, the Company adopted Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers (Topic 606),” applying the full retrospective transition method to all contracts that were not completed as of January 1, 2016, the initial date of application. The adoption of Topic 606 significantly affected the accounting for revenue from certain professional services in the Carrier segment and insurance broker commission revenue included in software services revenue in the Employer segment. Prior to the adoption of Topic 606, the Company recognized revenue from certain professional services in the Carrier segment over the customer relationship period. Under Topic 606, revenue from certain of these services are recognized over the contract term of the associated software services contract, including any extension periods representing a material right, which can be shorter than the customer relationship period. The financial statement impact of this change is a reduction to the deferred revenue balance as of the date of adoption. Also prior to the adoption of Topic 606, the Company recognized insurance broker commission revenue over the policy period. Under Topic 606, the revenue related to broker commissions is recognized when the performance obligation has been satisfied, which is when the orders for the policies are received and transferred to the insurance carrier. As a result, software services revenue from these arrangements in the Employer segment is recognized in the aggregate and earlier under Topic 606 in comparison to the previous treatment. The financial statement impact of this change is reductions to balances of deferred revenue and increases in contract asset balances reported in other non-current assets. Additionally, prior to the adoption of Topic 606, the Company recognized revenue from implementation services fees that are paid in advance in the Employer segment either when the associated software services are made available to the customer or over the customer relationship period. Under the new standard, revenue from these fees are recognized as the services are provided on a percentage of completion basis. The financial statement impact of this change is revenue from these fees being recognized sooner under the new standard. In connection with the adoption of Topic 606, the Company is required to capitalize costs associated with obtaining and fulfilling a contract. Contract assets recognized for costs to obtain a contract consist primarily of sales commissions associated with obtaining contracts in the Carrier segment. These assets are amortized to sales and marketing expense over the estimated period of benefit of the asset, which is generally four to five years. Contract assets recognized for costs to fulfill a contract consist primarily of internal costs related to implementing products in the Carrier segment. These assets are amortized to cost of revenue expense over the estimated period of benefit, which is generally five years. The Company used the practical expedient for contracts that were completed by January 1, 2018, the initial date of application of Topic 606, that allows for the use of the transaction price at the date the contract was completed for contracts restated in comparative reporting periods, rather than estimating the variable consideration amount in each comparative reporting period. The following tables show the amounts by which financial statement lines were affected by the adoption of Topic 606. As of December 31, 2017 Financial Statement Line Item As previously reported Adjustments As adjusted Consolidated Balance Sheet: Accounts receivable, net $ 30,156 $ (65 ) $ 30,091 Contract, prepaid and other current assets 4,337 11,522 15,859 Deferred contract costs and other non-current assets 816 15,437 16,253 Accrued expenses 9,136 (26 ) 9,110 Deferred revenue, current portion 38,821 4,983 43,804 Deferred revenue, net of current portion 19,898 (8,675 ) 11,223 Additional paid-in capital 355,301 (2,805 ) 352,496 Accumulated deficit (394,663 ) 33,417 (361,246 ) Three Months Ended June 30, 2017 Financial Statement Line Item As previously reported Adjustments As adjusted Consolidated Statement of Operations and Comprehensive Loss: Revenue $ 63,348 $ (8,259 ) $ 55,089 Cost of revenue 28,828 868 29,696 Sales and marketing 17,646 217 17,863 Loss from operations (1,476 ) (9,344 ) (10,820 ) Net loss and comprehensive loss (4,506 ) (9,344 ) (13,850 ) Net loss per common share: Basic and diluted $ (0.14 ) $ (0.30 ) $ (0.45 ) Six Months Ended June 30, 2017 Financial Statement Line Item As previously reported Adjustments As adjusted Consolidated Statement of Operations and Comprehensive Loss: Revenue $ 127,519 $ (14,807 ) $ 112,712 Cost of revenue 60,429 1,469 61,898 Sales and marketing 34,923 963 35,886 Loss from operations (6,121 ) (17,239 ) (23,360 ) Net loss and comprehensive loss (12,194 ) (17,239 ) (29,433 ) Net loss per common share: Basic and diluted $ (0.40 ) $ (0.56 ) $ (0.95 ) Cash provided by, or used in, operating, investing and financing activities were not affected by the adoption of Topic 606. Accounting Standards Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” The purpose of this ASU is to require a financial asset measured at amortized cost basis to be presented at the net amount expected to be collected. Credit losses relating to available-for-sale debt securities should be recorded through an allowance for credit losses. This ASU is effective for interim and annual reporting periods starting January 1, 2020. The Company is currently evaluating the impact of this guidance on its consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842).” The amendments in this update require lessees, among other things, to recognize lease assets and lease liabilities on the balance sheet for those leases classified as operating leases under previous authoritative guidance. This update also introduces new disclosure requirements for leasing arrangements. ASU 2016-02 will be effective for the Company beginning January 1, 2019. Early adoption is permitted. The Company is continuing to evaluate the impact of this update on its consolidated financial statements.

Net Loss Per Common Share

Net Loss Per Common Share	6 Months Ended
	Jun. 30, 2018
Earnings Per Share [Abstract]
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: Three Months Ended June 30, Six Months Ended June 30, Anti-Dilutive Common Share Equivalents 2018 2017 2018 2017 Restricted stock units 2,087,753 1,808,890 2,087,753 1,808,890 Stock options 249,327 314,937 249,327 314,937 Warrant to purchase common stock - 580,813 - 580,813 Employee Stock Purchase Plan 5,591 4,204 5,591 4,204 Total anti-dilutive common share equivalents 2,342,671 2,708,844 2,342,671 2,708,844 Basic and diluted net loss per common share is calculated as follows: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Numerator: Net loss $ (14,261 ) $ (13,850 ) $ (28,063 ) $ (29,433 ) Net loss attributable to common stockholders $ (14,261 ) $ (13,850 ) $ (28,063 ) $ (29,433 ) Denominator: Weighted-average common shares outstanding, basic and diluted 31,806,972 31,076,995 31,571,468 30,868,888 Net loss per common share, basic and diluted $ (0.45 ) $ (0.45 ) $ (0.89 ) $ (0.95 )

Fair Value Measurement

Fair Value Measurement	6 Months Ended
	Jun. 30, 2018
Fair Value Disclosures [Abstract]
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 and revolving line of credit approximates fair value, considering the borrowing rates currently available to the Company 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 the periods presented. June 30, 2018 Description Level 1 Level 2 Level 3 Total Cash Equivalents: Money market mutual funds (1) $ 45,768 $ — $ — $ 45,768 Total assets $ 45,768 $ — $ — $ 45,768 December 31, 2017 Description Level 1 Level 2 Level 3 Total Cash Equivalents: Money market mutual funds (1) $ 46,730 $ — $ — $ 46,730 Total assets $ 46,730 $ — $ — $ 46,730 ________________ ( 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.

Revolving Line of Credit

Revolving Line of Credit	6 Months Ended
	Jun. 30, 2018
Debt Disclosure [Abstract]
Revolving Line of Credit	5. Revolving Line of Credit On March 29, 2018, the Company amended its revolving line of credit agreement. The amendment altered definitions in the revolving line of credit agreement, including Consolidated EBITDA and Recurring Revenue, and changes the Minimum Consolidated EBITDA requirements. The amendment was entered into to modify the above terms and requirements to account for the Company’s adoption of Topic 606. As of June 30, 2018 and December 31, 2017, the amount outstanding under the Company’s revolving line of credit was $67,246 and $56,246, respectively. As of June 30, 2018, the additional amount available to borrow, adjusted by the borrowing base limit, was $10,441 and the interest rate was 6.25%. In January 2018, the Company repaid $24,000 of the amount outstanding under its line of credit and borrowed $7,000 under its line of credit for general operating purposes. In March 2018, the Company borrowed $24,000 under its line of credit for general operating purposes. In April 2018, the Company repaid $24,000 of the amount outstanding under its line of credit. In June 2018, the Company borrowed $28,000 under its line of credit for general operating purposes.

Stock-based Compensation

Stock-based Compensation	6 Months Ended
	Jun. 30, 2018
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Stock-based Compensation	6. Stock-based Compensation Restricted Stock Units During the six months ended June 30, 2018, the Company granted 500,606 restricted stock units, or RSUs, to employees and officers with an aggregate grant date fair value of $12,939. These RSUs generally vest in equal annual installments over various periods ranging from less than 1 to 4 years from the grant date. The Company amortizes the grant date fair value of the stock subject to the RSUs on a straight-line basis over the period of vesting. During the six months ended June 30, 2018, in connection with the Company’s incentive bonus programs, the Company granted 808,967 performance RSUs to officers with an aggregate grant date fair value of $19,054. The aggregate grant date fair value of the performance RSUs assuming target achievement was $13,347

Stockholders' Deficit

Stockholders' Deficit	6 Months Ended
	Jun. 30, 2018
Equity [Abstract]
Stockholders' Deficit	7. Stockholders’ Deficit Common Stock The holders of common stock are entitled to one vote for each share. The voting, dividend and liquidation rights of the holders of common stock are subject to and qualified by the rights, powers and preferences of the holders of preferred stock. At June 30, 2018, the Company had reserved a total of 4,450,855 of its authorized 50,000,000 shares of common stock for future issuance as follows: Outstanding stock options 249,327 Restricted stock units 2,087,753 Available for future issuance under stock award plans 1,984,557 Available for future issuance under ESPP 129,218 Total common shares reserved for future issuance 4,450,855

Revenue

Revenue	6 Months Ended
	Jun. 30, 2018
Revenue From Contract With Customer [Abstract]
Revenue	8. Revenue Disaggregation of Revenue The following tables provide information about disaggregation of revenue by service line and includes a reconciliation of disaggregated revenue with reportable segments: Three Months Ended June 30, 2018 Three Months Ended June 30, 2017 Employer Carrier Total Employer Carrier Total Service line: Software services $ 30,663 $ 17,625 $ 48,288 $ 25,231 $ 17,333 $ 42,564 Professional services 8,735 3,558 12,293 8,498 4,027 12,525 Total $ 39,398 $ 21,183 $ 60,581 $ 33,729 $ 21,360 $ 55,089 Six Months Ended June 30, 2018 Six Months Ended June 30, 2017 Employer Carrier Total Employer Carrier Total Service line: Software services $ 60,976 $ 35,482 $ 96,458 $ 54,257 $ 34,808 $ 89,065 Professional services 18,706 7,780 26,486 15,309 8,338 23,647 Total $ 79,682 $ 43,262 $ 122,944 $ 69,566 $ 43,146 $ 112,712 Contract Balances The following table provides information about contract assets and contract liabilities from contracts with customers: Balance at Beginning of Period Balance at End of Period Six Months Ended June 30, 2018 Contract assets $ 11,522 $ 7,024 Contract liabilities: Deferred revenue $ 55,027 $ 50,968 Six Months Ended June 30, 2017 Contract assets $ 15,929 $ 9,114 Contract liabilities: Deferred revenue $ 56,949 $ 53,990 The Company recognizes payments from customers based on contractual billing schedules. Accounts receivable are recorded when the right to consideration becomes unconditional. Contract assets include amounts related to the Company’s contractual right to consideration for completed performance objectives not yet invoiced. Contract liabilities include payments received in advance of performance under the contract and are recognized as revenue when earned under the contract. The Company had no asset impairment charges related to contract assets during the three and six months ended June 30, 2018 and 2017. The following tables show the significant changes in contract asset balances: Three Months Ended June 30, Contract Assets 2018 2017 Transferred to receivables from contract assets $ 4,301 $ 5,941 Revenue recognized from performance obligations satisfied but not billed $ 2,086 $ 1,810 Other changes in carrier contract assets $ 91 $ 203 Six Months Ended June 30, Contract Assets 2018 2017 Transferred to receivables from contract assets $ 9,166 $ 9,569 Revenue recognized from performance obligations satisfied but not billed $ 4,891 $ 3,177 Other changes in carrier contract assets $ 222 $ 423 Performance Obligations As of June 30, 2018, the aggregate amount of the Company’s performance obligations that are unsatisfied or partially unsatisfied were approximately $215,000, of which a majority are expected to be satisfied within the next three years. The Company excludes from its population of performance obligations contracts with original durations of one year or less, contract renewal periods that renew automatically, and amounts of variable consideration that are allocated to wholly unsatisfied distinct service that forms part of a single performance obligation and meets certain variable allocation criteria.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2018
Income Tax Disclosure [Abstract]
Income Taxes	9. Income Taxes The Company’s effective federal tax rate for the three and six months ended June 30, 2018 was less than one percent, primarily as a result of estimated tax losses for the fiscal year to date offset by the increase in the valuation allowance in the net operating loss carryforwards. Current tax expense relates to estimated state income taxes. The Company has not completed its accounting for the income tax effects of the December 22, 2017 enactment of the Tax Cuts & Jobs Act (“Tax Reform”) with respect to the rolling impact of state tax conformity of each change. The Company is not able to determine a reasonable estimate for this item and therefore, in accordance with Staff Accounting Bulletin 118, continues to account for this item based on the tax laws that were in effect immediately before the enactment of Tax Reform.

Segments and Geographic Informa

Segments and Geographic Information	6 Months Ended
	Jun. 30, 2018
Segment Reporting [Abstract]
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. Segments are evaluated based on gross profit. 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 reported. Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Revenue from external customers by segment: Employer $ 39,398 $ 33,729 $ 79,682 $ 69,566 Carrier 21,183 21,360 43,262 43,146 Total net revenue from external customers $ 60,581 $ 55,089 $ 122,944 $ 112,712 Depreciation and amortization by segment: Employer $ 2,629 $ 2,461 $ 5,147 $ 4,971 Carrier 1,398 1,479 2,810 2,974 Total depreciation and amortization $ 4,027 $ 3,940 $ 7,957 $ 7,945 Gross profit by segment: Employer $ 16,875 $ 11,667 $ 34,493 $ 23,610 Carrier 12,985 13,726 26,327 27,204 Total gross profit $ 29,860 $ 25,393 $ 60,820 $ 50,814

Related Parties

Related Parties	6 Months Ended
	Jun. 30, 2018
Related Party Transactions [Abstract]
Related Parties	11. Related Parties Related Party Leasing Arrangements The Company leases its office space at its Charleston, South Carolina headquarters campus under the terms of three non-cancellable leases from entities affiliated with an executive who is also a Company director and significant stockholder. Two of the Company’s headquarter campus building leases are accounted for as build-to-suit leases and recorded as financing obligations in the Consolidated Balance Sheets. The remaining lease, also for office space, is accounted for as a capital lease. The three lease agreements have 15-year terms ending on December 31, 2031, with Company options to renew for five additional years. The arrangements provide for 3.0% fixed annual rent increases. Payments under these agreements were $2,425 and $2,355 for the three months ended June 30, 2018 and 2017, respectively, and $5,751 and $5,563 for the six months ended June 30, 2018 and 2017, respectively. Other amounts due to the related parties were $473 and $901 as of June 30, 2018 and December 31, 2017, respectively, In March 2018, the Company’s landlord extended the time period to commence construction of additional office space under its December 12, 2016 lease. Under the extension, the Company agrees to commence construction on or about April 1, 2019 and the target commencement date extends one year to July 1, 2020. The Company can terminate the lease prior to April 1, 2019. Other Related Party Expenses The Company utilizes the services of various companies that are owned and controlled by an executive who is also a Company director and significant stockholder. The companies provide construction project management services, private air transportation and other services. Expenses related to these companies were $11 for the three months ended June 30, 2018, and $24 and $19 for the six months ended June 30, 2018 and 2017, respectively. There were no expenses related to these companies for the three months ended June 30, 2017. Related Party Revolving Line of Credit In conjunction with an amendment to the Company’s revolving line of credit agreement in October 2016, Goldman Sachs Lending Partners, LLC was added to the lending syndicate. Goldman Sachs Lending Partners, LLC is an affiliate of The Goldman Sachs Group, Inc., as are the Goldman Sachs funds that owned approximately 11.8% of the Company’s outstanding common stock as of June 30, 2018. Goldman Sachs Lending Partners, LLC committed $10,000 to the revolving commitment and therefore loans the Company approximately 10.5% of all amounts borrowed under the credit facility. Accordingly, amounts due to Goldman Sachs Lending Partners, LLC was approximately $7,061 of the $67,246 outstanding under the revolving line of credit as of June 30, 2018 and $5,906 of the $56,246 outstanding under the revolving line of credit as of December 31, 2017.

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2018
Subsequent Events [Abstract]
Subsequent Events	12. Subsequent Events Restricted Stock Units On July 1, 2018, the Company granted 160,036 RSUs and 47,269 performance RSUs with an aggregate grant date fair value of $5,441 and $1,607, respectively. The aggregate grant date fair value of the performance RSUs assuming target achievement was $1,124. The number of performance RSUs that will vest will be determined upon the achievement of certain financial targets for 2018, and vesting will then occur in equal annual installments over various periods ranging from one to four years. The actual number of shares issued upon vesting could range between 0% and 100% of the number of awards granted. Common Stock During July and August 2018, employees exercised stock options and RSUs vested resulting in the issuance of 60,578 shares. Revolving Line of Credit In July 2018, the Company repaid $28,000 of the amount outstanding under its revolving line of credit and borrowed $3,000 under its revolving line of credit for general operating purposes. In August 2018, the Company repaid $3,000 of the amount outstanding under its revolving line of credit.

Summary of Significant Accoun19

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2018
Accounting Policies [Abstract]
Principles of Consolidation	Principles of Consolidation These consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. We are not the primary beneficiary of, nor do we have a controlling financial interest in, any variable interest entity. Accordingly, we have not consolidated any variable interest entity.
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 and cash flows. The results of operations for the three- and six-month periods ended June 30, 2018 are not necessarily indicative of the results for the full year or for any other future period. These unaudited consolidated financial statements should be read in conjunction with the audited financial statements and related footnotes for the year ended December 31, 2017 included in the Company’s Annual Report on Form 10-K, as amended.
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 allowances for doubtful accounts and returns, valuations of deferred income taxes, long-lived assets, capitalizable software development costs and the related amortization, stock-based compensation, the determination of the useful lives of assets and the impairment assessment of goodwill as well as the estimates disclosed in association with revenue recognition. Determination of these transactions and account balances are based on, among other things, 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 materially from these estimates.
Revenue	Revenue The Company derives its revenues primarily from fees for software services and professional services sold to employers and insurance carriers. Revenues are recognized when control of these services is transferred to customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those services. Taxes collected from customers relating to services and remitted to governmental authorities are excluded from revenues. The Company determines revenue recognition through the following steps: • Identification of each contract with a customer; • Identification of the performance obligations in the contract; • Determination of the transaction price; • Allocation of the transaction price to the performance obligations in the contract; and • Recognition of revenue when, or as, performance obligations are satisfied. Software Services Revenues Software services revenues primarily consist of monthly subscription fees paid to the Company by its employer and insurance carrier customers for access to, and usage of, cloud-based benefits software solutions for a specified contract term. Fees are generally charged based on the number of employees or subscribers with access to the solution. Software services revenue also includes insurance broker commissions from the sale of voluntary and ancillary benefits policies to employees of the Company’s customers. Software services revenues are generally recognized on a ratable basis over the contract term beginning on the date the software services are made available to the customer. The Company’s software service contracts are generally three years for both carrier and employer customers. Revenue from insurance broker commissions is recognized when the orders for the policies are received and transferred to the insurance carrier, and is reduced by estimates for risks from collectability, policy cancellation and termination. Professional Services Revenues Professional services revenues primarily consist of fees related to the implementation of software products purchased by customers. Professional services typically include discovery, configuration and deployment, integration, testing, and training. Fees from consulting services, support services and training are also included in professional services revenue. Revenue from implementation services with customers in the Carrier segment are generally recognized over the contract term of the associated software services contract, including any extension periods representing a material right. The Company utilizes estimates of hours as a measure of progress to determine revenue in certain arrangements. Revenues from implementation services with customers in the Employer segment are generally recognized as those services are performed. Revenues from support and training fees are recognized over the service contract period. Contracts with Multiple Performance Obligations Certain of the Company’s contracts with customers contain multiple performance obligations. For these contracts, the individual performance obligations are accounted for separately if they are distinct. The Company allocates the transaction price to the separate performance obligations based on their relative standalone selling prices. The Company determines the standalone selling prices based on its overall pricing objectives, taking into consideration market conditions and other factors, including the value of its contracts, the software services sold, customer size and complexity, and the number and types of users under the contracts. Practical Expedients Elected In addition to practical expedients disclosed elsewhere in the notes to unaudited consolidated financial statements, the Company has elected to use the practical expedient not to adjust the promised amount of consideration for the effects of a significant financing component for contracts in which the period between transferring a service to a customer and when the customer pays for that service is one year or less.
Contract Costs	Contract Costs The Company capitalizes costs to obtain contracts that are considered incremental and recoverable, such as sales commissions. Payments of sales commissions generally include multiple payments. The Company capitalizes only those payments made within an insignificant time from the contract inception, typically three months or less. Subsequent payments are expensed as incurred. The capitalized costs are amortized to sales and marketing expense over the estimated period of benefit of the asset, which is generally four to five years. The Company has elected to use the practical expedient to expense the costs to obtain a contract when the amortization period is less than one year. The balance of deferred costs related to obtaining contracts included in deferred contract costs and other non-current assets was $7,219 and $7,376 as of June 30, 2018 and December 31, 2017, respectively. Sales and marketing expense includes $1,059 and $1,142 of amortization for the three months ended June 30, 2018 and 2017, respectively, and $2,161 and $2,304 for the six months ended June 30, 2018 and 2017, respectively. The Company capitalizes contract fulfillment costs directly associated with customer contracts that are not related to satisfying performance obligations. The costs are amortized to cost of revenue expense over the estimated period of benefit, which is generally five years. The balance of deferred fulfillment costs included in deferred contract costs and other non-current assets was $6,380 and $8,060 as of June 30, 2018 and December 31, 2017, respectively. Cost of revenue expense includes $884 and $869 of amortization for the three months ended June 30, 2018 and 2017, respectively, and $1,779 and $1,722 for the six months ended June 30, 2018 and 2017, respectively.
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 are unsecured and derived from revenue earned from customers located in the United States. No customer represented more than 10% of total accounts receivable as of June 30, 2018. Accounts receivable from one customer represented approximately 12% of the total accounts receivable as of December 31, 2017. Revenue from one customer was approximately 16% and 12% of the total revenue in the three-month period ended June 30, 2018 and 2017, respectively, and 14% and 12% of the total revenue in the six-month period ended June 30, 2018 and 2017, respectively.
Accounts Receivable and Allowance for Doubtful Accounts and Returns	Accounts Receivable and Allowance for Doubtful Accounts and Returns Accounts receivable are 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 in the 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. The Company removes recorded receivables and the associated allowances when they are deemed permanently uncollectible. Historically, actual write-offs for uncollectible accounts have not significantly differed from the Company’s estimates. However, if bad debts are higher than expected, future write-offs will be greater than the Company’s estimates. The allowance for doubtful accounts was $902 and $654 as of June 30, 2018 and December 31, 2017, 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 historical reasons for adjustments, changes in customer volume, complexity of billing arrangements, software availability, and past due customer billings. The allowance for returns was $3,608 and $2,877 as of June 30, 2018 and December 31, 2017, 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 to cost of revenue over the software’s estimated useful life, which is three years. The Company evaluates these assets for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. In the three months ended June 30, 2018 and 2017, the Company capitalized software development costs of $1,319 and $1,102, respectively, and amortized capitalized software development costs of $964 and $794, respectively. In the six months ended June 30, 2018 and 2017, the Company capitalized software development costs of $2,599 and $2,329, respectively, and amortized capitalized software development costs of $1,853 and $1,625, respectively. The net book value of capitalized software development costs was $8,407 and $7,660 at June 30, 2018 and December 31, 2017, respectively.
Comprehensive Loss	Comprehensive Loss The Company’s net loss equals comprehensive loss for all periods presented.
Recently Adopted Accounting Standards	Recently Adopted Accounting Standards Revenue from Contracts with Customers On January 1, 2018, the Company adopted Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers (Topic 606),” applying the full retrospective transition method to all contracts that were not completed as of January 1, 2016, the initial date of application. The adoption of Topic 606 significantly affected the accounting for revenue from certain professional services in the Carrier segment and insurance broker commission revenue included in software services revenue in the Employer segment. Prior to the adoption of Topic 606, the Company recognized revenue from certain professional services in the Carrier segment over the customer relationship period. Under Topic 606, revenue from certain of these services are recognized over the contract term of the associated software services contract, including any extension periods representing a material right, which can be shorter than the customer relationship period. The financial statement impact of this change is a reduction to the deferred revenue balance as of the date of adoption. Also prior to the adoption of Topic 606, the Company recognized insurance broker commission revenue over the policy period. Under Topic 606, the revenue related to broker commissions is recognized when the performance obligation has been satisfied, which is when the orders for the policies are received and transferred to the insurance carrier. As a result, software services revenue from these arrangements in the Employer segment is recognized in the aggregate and earlier under Topic 606 in comparison to the previous treatment. The financial statement impact of this change is reductions to balances of deferred revenue and increases in contract asset balances reported in other non-current assets. Additionally, prior to the adoption of Topic 606, the Company recognized revenue from implementation services fees that are paid in advance in the Employer segment either when the associated software services are made available to the customer or over the customer relationship period. Under the new standard, revenue from these fees are recognized as the services are provided on a percentage of completion basis. The financial statement impact of this change is revenue from these fees being recognized sooner under the new standard. In connection with the adoption of Topic 606, the Company is required to capitalize costs associated with obtaining and fulfilling a contract. Contract assets recognized for costs to obtain a contract consist primarily of sales commissions associated with obtaining contracts in the Carrier segment. These assets are amortized to sales and marketing expense over the estimated period of benefit of the asset, which is generally four to five years. Contract assets recognized for costs to fulfill a contract consist primarily of internal costs related to implementing products in the Carrier segment. These assets are amortized to cost of revenue expense over the estimated period of benefit, which is generally five years. The Company used the practical expedient for contracts that were completed by January 1, 2018, the initial date of application of Topic 606, that allows for the use of the transaction price at the date the contract was completed for contracts restated in comparative reporting periods, rather than estimating the variable consideration amount in each comparative reporting period. The following tables show the amounts by which financial statement lines were affected by the adoption of Topic 606. As of December 31, 2017 Financial Statement Line Item As previously reported Adjustments As adjusted Consolidated Balance Sheet: Accounts receivable, net $ 30,156 $ (65 ) $ 30,091 Contract, prepaid and other current assets 4,337 11,522 15,859 Deferred contract costs and other non-current assets 816 15,437 16,253 Accrued expenses 9,136 (26 ) 9,110 Deferred revenue, current portion 38,821 4,983 43,804 Deferred revenue, net of current portion 19,898 (8,675 ) 11,223 Additional paid-in capital 355,301 (2,805 ) 352,496 Accumulated deficit (394,663 ) 33,417 (361,246 ) Three Months Ended June 30, 2017 Financial Statement Line Item As previously reported Adjustments As adjusted Consolidated Statement of Operations and Comprehensive Loss: Revenue $ 63,348 $ (8,259 ) $ 55,089 Cost of revenue 28,828 868 29,696 Sales and marketing 17,646 217 17,863 Loss from operations (1,476 ) (9,344 ) (10,820 ) Net loss and comprehensive loss (4,506 ) (9,344 ) (13,850 ) Net loss per common share: Basic and diluted $ (0.14 ) $ (0.30 ) $ (0.45 ) Six Months Ended June 30, 2017 Financial Statement Line Item As previously reported Adjustments As adjusted Consolidated Statement of Operations and Comprehensive Loss: Revenue $ 127,519 $ (14,807 ) $ 112,712 Cost of revenue 60,429 1,469 61,898 Sales and marketing 34,923 963 35,886 Loss from operations (6,121 ) (17,239 ) (23,360 ) Net loss and comprehensive loss (12,194 ) (17,239 ) (29,433 ) Net loss per common share: Basic and diluted $ (0.40 ) $ (0.56 ) $ (0.95 ) Cash provided by, or used in, operating, investing and financing activities were not affected by the adoption of Topic 606.
Accounting Standards Not Yet Adopted	Accounting Standards Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” The purpose of this ASU is to require a financial asset measured at amortized cost basis to be presented at the net amount expected to be collected. Credit losses relating to available-for-sale debt securities should be recorded through an allowance for credit losses. This ASU is effective for interim and annual reporting periods starting January 1, 2020. The Company is currently evaluating the impact of this guidance on its consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842).” The amendments in this update require lessees, among other things, to recognize lease assets and lease liabilities on the balance sheet for those leases classified as operating leases under previous authoritative guidance. This update also introduces new disclosure requirements for leasing arrangements. ASU 2016-02 will be effective for the Company beginning January 1, 2019. Early adoption is permitted. The Company is continuing to evaluate the impact of this update on its consolidated financial statements.

Summary of Significant Accoun20

Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2018
Accounting Policies [Abstract]
Schedule of Impact on Financial Statements on Adoption of Topic 606	The following tables show the amounts by which financial statement lines were affected by the adoption of Topic 606. As of December 31, 2017 Financial Statement Line Item As previously reported Adjustments As adjusted Consolidated Balance Sheet: Accounts receivable, net $ 30,156 $ (65 ) $ 30,091 Contract, prepaid and other current assets 4,337 11,522 15,859 Deferred contract costs and other non-current assets 816 15,437 16,253 Accrued expenses 9,136 (26 ) 9,110 Deferred revenue, current portion 38,821 4,983 43,804 Deferred revenue, net of current portion 19,898 (8,675 ) 11,223 Additional paid-in capital 355,301 (2,805 ) 352,496 Accumulated deficit (394,663 ) 33,417 (361,246 ) Three Months Ended June 30, 2017 Financial Statement Line Item As previously reported Adjustments As adjusted Consolidated Statement of Operations and Comprehensive Loss: Revenue $ 63,348 $ (8,259 ) $ 55,089 Cost of revenue 28,828 868 29,696 Sales and marketing 17,646 217 17,863 Loss from operations (1,476 ) (9,344 ) (10,820 ) Net loss and comprehensive loss (4,506 ) (9,344 ) (13,850 ) Net loss per common share: Basic and diluted $ (0.14 ) $ (0.30 ) $ (0.45 ) Six Months Ended June 30, 2017 Financial Statement Line Item As previously reported Adjustments As adjusted Consolidated Statement of Operations and Comprehensive Loss: Revenue $ 127,519 $ (14,807 ) $ 112,712 Cost of revenue 60,429 1,469 61,898 Sales and marketing 34,923 963 35,886 Loss from operations (6,121 ) (17,239 ) (23,360 ) Net loss and comprehensive loss (12,194 ) (17,239 ) (29,433 ) Net loss per common share: Basic and diluted $ (0.40 ) $ (0.56 ) $ (0.95 )

Net Loss Per Common Share (Tabl

Net Loss Per Common Share (Tables)	6 Months Ended
	Jun. 30, 2018
Earnings Per Share [Abstract]
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: Three Months Ended June 30, Six Months Ended June 30, Anti-Dilutive Common Share Equivalents 2018 2017 2018 2017 Restricted stock units 2,087,753 1,808,890 2,087,753 1,808,890 Stock options 249,327 314,937 249,327 314,937 Warrant to purchase common stock - 580,813 - 580,813 Employee Stock Purchase Plan 5,591 4,204 5,591 4,204 Total anti-dilutive common share equivalents 2,342,671 2,708,844 2,342,671 2,708,844
Basic and Diluted Net Loss per Common Share	Basic and diluted net loss per common share is calculated as follows: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Numerator: Net loss $ (14,261 ) $ (13,850 ) $ (28,063 ) $ (29,433 ) Net loss attributable to common stockholders $ (14,261 ) $ (13,850 ) $ (28,063 ) $ (29,433 ) Denominator: Weighted-average common shares outstanding, basic and diluted 31,806,972 31,076,995 31,571,468 30,868,888 Net loss per common share, basic and diluted $ (0.45 ) $ (0.45 ) $ (0.89 ) $ (0.95 )

Fair Value Measurement (Tables)

Fair Value Measurement (Tables)	6 Months Ended
	Jun. 30, 2018
Fair Value Disclosures [Abstract]
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 the periods presented. June 30, 2018 Description Level 1 Level 2 Level 3 Total Cash Equivalents: Money market mutual funds (1) $ 45,768 $ — $ — $ 45,768 Total assets $ 45,768 $ — $ — $ 45,768 December 31, 2017 Description Level 1 Level 2 Level 3 Total Cash Equivalents: Money market mutual funds (1) $ 46,730 $ — $ — $ 46,730 Total assets $ 46,730 $ — $ — $ 46,730 ________________ ( 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.

Stockholders' Deficit (Tables)

Stockholders' Deficit (Tables)	6 Months Ended
	Jun. 30, 2018
Equity [Abstract]
Shares of Common Stock Reserved for Future Issuance	At June 30, 2018, the Company had reserved a total of 4,450,855 of its authorized 50,000,000 shares of common stock for future issuance as follows: Outstanding stock options 249,327 Restricted stock units 2,087,753 Available for future issuance under stock award plans 1,984,557 Available for future issuance under ESPP 129,218 Total common shares reserved for future issuance 4,450,855

Revenue (Tables)

Revenue (Tables)	6 Months Ended
	Jun. 30, 2018
Revenue From Contract With Customer [Abstract]
Summary of Disaggregation of Revenue by Service Line with Reportable Segments	The following tables provide information about disaggregation of revenue by service line and includes a reconciliation of disaggregated revenue with reportable segments: Three Months Ended June 30, 2018 Three Months Ended June 30, 2017 Employer Carrier Total Employer Carrier Total Service line: Software services $ 30,663 $ 17,625 $ 48,288 $ 25,231 $ 17,333 $ 42,564 Professional services 8,735 3,558 12,293 8,498 4,027 12,525 Total $ 39,398 $ 21,183 $ 60,581 $ 33,729 $ 21,360 $ 55,089 Six Months Ended June 30, 2018 Six Months Ended June 30, 2017 Employer Carrier Total Employer Carrier Total Service line: Software services $ 60,976 $ 35,482 $ 96,458 $ 54,257 $ 34,808 $ 89,065 Professional services 18,706 7,780 26,486 15,309 8,338 23,647 Total $ 79,682 $ 43,262 $ 122,944 $ 69,566 $ 43,146 $ 112,712
Summary of Contract Assets and Contract Liabilities	The following table provides information about contract assets and contract liabilities from contracts with customers: Balance at Beginning of Period Balance at End of Period Six Months Ended June 30, 2018 Contract assets $ 11,522 $ 7,024 Contract liabilities: Deferred revenue $ 55,027 $ 50,968 Six Months Ended June 30, 2017 Contract assets $ 15,929 $ 9,114 Contract liabilities: Deferred revenue $ 56,949 $ 53,990
Summary of Significant Changes in Contract Asset Balances	The following tables show the significant changes in contract asset balances: Three Months Ended June 30, Contract Assets 2018 2017 Transferred to receivables from contract assets $ 4,301 $ 5,941 Revenue recognized from performance obligations satisfied but not billed $ 2,086 $ 1,810 Other changes in carrier contract assets $ 91 $ 203 Six Months Ended June 30, Contract Assets 2018 2017 Transferred to receivables from contract assets $ 9,166 $ 9,569 Revenue recognized from performance obligations satisfied but not billed $ 4,891 $ 3,177 Other changes in carrier contract assets $ 222 $ 423

Segments and Geographic Infor25

Segments and Geographic Information (Tables)	6 Months Ended
	Jun. 30, 2018
Segment Reporting [Abstract]
Segments and Geographic Information	Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Revenue from external customers by segment: Employer $ 39,398 $ 33,729 $ 79,682 $ 69,566 Carrier 21,183 21,360 43,262 43,146 Total net revenue from external customers $ 60,581 $ 55,089 $ 122,944 $ 112,712 Depreciation and amortization by segment: Employer $ 2,629 $ 2,461 $ 5,147 $ 4,971 Carrier 1,398 1,479 2,810 2,974 Total depreciation and amortization $ 4,027 $ 3,940 $ 7,957 $ 7,945 Gross profit by segment: Employer $ 16,875 $ 11,667 $ 34,493 $ 23,610 Carrier 12,985 13,726 26,327 27,204 Total gross profit $ 29,860 $ 25,393 $ 60,820 $ 50,814

Summary of Significant Accoun26

Summary of Significant Accounting Policies - Additional Information (Detail) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2018USD ($)	Jun. 30, 2017USD ($)	Jun. 30, 2018USD ($)Customer	Jun. 30, 2017USD ($)	Dec. 31, 2017USD ($)
Summary Of Significant Accounting Policies [Line Items]
Contract cost payments, description			The Company capitalizes only those payments made within an insignificant time from the contract inception, typically three months or less. Subsequent payments are expensed as incurred. The capitalized costs are amortized to sales and marketing expense over the estimated period of benefit of the asset, which is generally four to five years. The Company has elected to use the practical expedient to expense the costs to obtain a contract when the amortization period is less than one year.
Deferred contract costs and other non-current assets	$ 14,426		$ 14,426		$ 16,253
Allowance for doubtful accounts	902		902		654
Capitalized software cost gross	1,319	$ 1,102	2,599	$ 2,329
Amortization of capitalized software cost	964	$ 794	1,853	$ 1,625
Capitalized software cost net	8,407		$ 8,407		7,660
Capitalized Software Development Costs
Summary Of Significant Accounting Policies [Line Items]
Useful lives for property and equipment			3 years
Allowance for Returns
Summary Of Significant Accounting Policies [Line Items]
Allowance for returns	$ 3,608		$ 3,608		$ 2,877
Customer Concentration Risk | Accounts Receivable
Summary Of Significant Accounting Policies [Line Items]
Number of customers exceeded 10% of total accounts receivable | Customer			0
Concentration risk, percentage					12.00%
Customer Concentration Risk | Total Revenue
Summary Of Significant Accounting Policies [Line Items]
Concentration risk, percentage	16.00%	12.00%	14.00%	12.00%
Sales and Marketing Expense
Summary Of Significant Accounting Policies [Line Items]
Deferred contract costs and other non-current assets	$ 7,219		$ 7,219		$ 7,376
Amortization of contract costs	1,059	$ 1,142	$ 2,161	$ 2,304
Cost of Revenue
Summary Of Significant Accounting Policies [Line Items]
Estimated amortization period of contract costs			5 years
Deferred contract costs and other non-current assets	6,380		$ 6,380		$ 8,060
Amortization of contract costs	$ 884	$ 869	$ 1,779	$ 1,722
Cost of Revenue | Accounting Standards Update ("ASU") 2014-09
Summary Of Significant Accounting Policies [Line Items]
Estimated amortization period of contract costs			5 years
Minimum | Sales and Marketing Expense
Summary Of Significant Accounting Policies [Line Items]
Estimated amortization period of contract costs			4 years
Minimum | Sales and Marketing Expense | Accounting Standards Update ("ASU") 2014-09
Summary Of Significant Accounting Policies [Line Items]
Estimated amortization period of contract costs			4 years
Maximum | Sales and Marketing Expense
Summary Of Significant Accounting Policies [Line Items]
Estimated amortization period of contract costs			5 years
Maximum | Sales and Marketing Expense | Accounting Standards Update ("ASU") 2014-09
Summary Of Significant Accounting Policies [Line Items]
Estimated amortization period of contract costs			5 years

Impact on Consolidated Balance

Impact on Consolidated Balance Sheet on Adoption of Topic 606 (Detail) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Accounts receivable, net	$ 26,771	$ 30,091
Contract, prepaid and other current assets	13,776	15,859
Deferred contract costs and other non-current assets	14,426	16,253
Accrued expenses	11,299	9,110
Deferred revenue, current portion	36,868	43,804
Deferred revenue, net of current portion	14,100	11,223
Additional paid-in capital	361,765	352,496
Accumulated deficit	$ (389,309)	(361,246)
Accounting Standards Update ("ASU") 2014-09 | As Previously Reported
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Accounts receivable, net		30,156
Contract, prepaid and other current assets		4,337
Deferred contract costs and other non-current assets		816
Accrued expenses		9,136
Deferred revenue, current portion		38,821
Deferred revenue, net of current portion		19,898
Additional paid-in capital		355,301
Accumulated deficit		(394,663)
Accounting Standards Update ("ASU") 2014-09 | Adjustments
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Accounts receivable, net		(65)
Contract, prepaid and other current assets		11,522
Deferred contract costs and other non-current assets		15,437
Accrued expenses		(26)
Deferred revenue, current portion		4,983
Deferred revenue, net of current portion		(8,675)
Additional paid-in capital		(2,805)
Accumulated deficit		$ 33,417

Impact on Consolidated Statemen

Impact on Consolidated Statement of Operations and Comprehensive Loss on Adoption of Topic 606 (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Revenue	$ 60,581	$ 55,089	$ 122,944	$ 112,712
Cost of revenue	30,721	29,696	62,124	61,898
Sales and marketing	18,400	17,863	38,317	35,886
Loss from operations	$ (11,055)	(10,820)	$ (21,728)	(23,360)
Net loss and comprehensive loss		$ (13,850)		$ (29,433)
Basic and diluted	$ (0.45)	$ (0.45)	$ (0.89)	$ (0.95)
Accounting Standards Update ("ASU") 2014-09 | As Previously Reported
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Revenue		$ 63,348		$ 127,519
Cost of revenue		28,828		60,429
Sales and marketing		17,646		34,923
Loss from operations		(1,476)		(6,121)
Net loss and comprehensive loss		$ (4,506)		$ (12,194)
Basic and diluted		$ (0.14)		$ (0.40)
Accounting Standards Update ("ASU") 2014-09 | Adjustments
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Revenue		$ (8,259)		$ (14,807)
Cost of revenue		868		1,469
Sales and marketing		217		963
Loss from operations		(9,344)		(17,239)
Net loss and comprehensive loss		$ (9,344)		$ (17,239)
Basic and diluted		$ (0.30)		$ (0.56)

Common Share Equivalents Securi

Common Share Equivalents Securities Excluded From Calculation of Weighted Average Common Share Outstanding (Detail) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive common share equivalents	2,342,671	2,708,844	2,342,671	2,708,844
Restricted Stock Units (RSUs)
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive common share equivalents	2,087,753	1,808,890	2,087,753	1,808,890
Stock Options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive common share equivalents	249,327	314,937	249,327	314,937
Warrant to Purchase Common Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive common share equivalents	0	580,813	0	580,813
Employee Stock Purchase Plan
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive common share equivalents	5,591	4,204	5,591	4,204

Basic and Diluted Net Loss per

Basic and Diluted Net Loss per Common Share (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Numerator:
Net loss	$ (14,261)	$ (13,850)	$ (28,063)	$ (29,433)
Net loss attributable to common stockholders	$ (14,261)	$ (13,850)	$ (28,063)	$ (29,433)
Denominator:
Weighted-average common shares outstanding, basic and diluted	31,806,972	31,076,995	31,571,468	30,868,888
Net loss per common share, basic and diluted	$ (0.45)	$ (0.45)	$ (0.89)	$ (0.95)

Assets and Liabilities Measured

Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands		Jun. 30, 2018	Dec. 31, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets		$ 45,768	$ 46,730
Money market mutual funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash Equivalents	[1]	45,768	46,730
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets		45,768	46,730
Level 1 | Money market mutual funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash Equivalents	[1]	45,768	46,730
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets		0	0
Level 2 | Money market mutual funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash Equivalents	[1]	0	0
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets		0	0
Level 3 | Money market mutual funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash Equivalents	[1]	$ 0	$ 0
[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.

Revolving Line of Credit - Addi

Revolving Line of Credit - Additional Information (Detail) - USD ($) $ in Thousands	1 Months Ended			6 Months Ended
	Apr. 30, 2018	Mar. 31, 2018	Jan. 31, 2018	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Line Of Credit Facility [Line Items]
Payments on revolving line of credit				$ 48,000	$ 41,000
Proceeds from line of credit borrowing				59,000	$ 53,000
Revolving Line of Credit
Line Of Credit Facility [Line Items]
Amount outstanding under credit facility				67,246		$ 56,246
Amount available to borrow under line of credit				$ 10,441
Line of credit, interest rate				6.25%
Payments on revolving line of credit	$ 24,000		$ 24,000
Proceeds from line of credit borrowing		$ 24,000	$ 7,000	$ 28,000

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Mar. 31, 2019	Jun. 30, 2018
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of restricted stock units, granted		500,606
Restricted stock units, aggregate grant date fair value		$ 12,939
Restricted Stock Units (RSUs) | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock plan vesting period		1 year
Restricted Stock Units (RSUs) | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock plan vesting period		4 years
Performance Based Restricted Stock Units R S Us
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of restricted stock units, granted		808,967
Restricted stock units, aggregate grant date fair value		$ 19,054
Aggregate grant date fair value at target		$ 13,347
Awards vesting date		Dec. 31, 2018
Performance Based Restricted Stock Units R S Us | Scenario Forecast
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock plan vesting period	4 years
Awards vesting start date	Apr. 1, 2019
Number of restricted stock units, vested	25,112
Performance Based Restricted Stock Units R S Us | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued vesting percentage		0.00%
Performance Based Restricted Stock Units R S Us | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued vesting percentage		100.00%

Stockholders' Deficit - Additio

Stockholders' Deficit - Additional Information (Detail) - shares	Jun. 30, 2018	Dec. 31, 2017
Stockholders Equity Note [Abstract]
Common stock, authorized shares reserved for future issuance	4,450,855
Common stock, shares authorized	50,000,000	50,000,000

Common Stock for Future Issuanc

Common Stock for Future Issuance (Detail)	Jun. 30, 2018shares
Class Of Stock [Line Items]
Outstanding stock options	249,327
Restricted stock units	2,087,753
Total common shares reserved for future issuance	4,450,855
Stock Award Plans
Class Of Stock [Line Items]
Common stock available for future issuance	1,984,557
ESPP
Class Of Stock [Line Items]
Common stock available for future issuance	129,218

Summary of Disaggregation of Re

Summary of Disaggregation of Revenue by Service Line with Reportable Segments (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Disaggregation Of Revenue [Line Items]
Revenue	$ 60,581	$ 55,089	$ 122,944	$ 112,712
Employer
Disaggregation Of Revenue [Line Items]
Revenue	39,398	33,729	79,682	69,566
Carrier
Disaggregation Of Revenue [Line Items]
Revenue	21,183	21,360	43,262	43,146
Software Services
Disaggregation Of Revenue [Line Items]
Revenue	48,288	42,564	96,458	89,065
Software Services | Employer
Disaggregation Of Revenue [Line Items]
Revenue	30,663	25,231	60,976	54,257
Software Services | Carrier
Disaggregation Of Revenue [Line Items]
Revenue	17,625	17,333	35,482	34,808
Professional Services
Disaggregation Of Revenue [Line Items]
Revenue	12,293	12,525	26,486	23,647
Professional Services | Employer
Disaggregation Of Revenue [Line Items]
Revenue	8,735	8,498	18,706	15,309
Professional Services | Carrier
Disaggregation Of Revenue [Line Items]
Revenue	$ 3,558	$ 4,027	$ 7,780	$ 8,338

Summary of Contract Assets and

Summary of Contract Assets and Contract Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2017	Dec. 31, 2016
Revenue From Contract With Customer [Abstract]
Contract assets	$ 7,024	$ 11,522	$ 9,114	$ 15,929
Contract liabilities:
Deferred revenue	$ 50,968	$ 55,027	$ 53,990	$ 56,949

Revenue - Additional Informatio

Revenue - Additional Information (Detail) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Revenue From Contract With Customer [Abstract]
Asset impairment charges related to contract assets	$ 0	$ 0	$ 0	$ 0
Aggregate amount of unsatisfied or partially unsatisfied performance obligations	$ 215,000,000		$ 215,000,000
Performance obligations expected satisfaction period	3 years		3 years

Summary of Significant Changes

Summary of Significant Changes in Contract Asset Balances (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Revenue From Contract With Customer [Abstract]
Transferred to receivables from contract assets	$ 4,301	$ 5,941	$ 9,166	$ 9,569
Revenue recognized from performance obligations satisfied but not billed	2,086	1,810	4,891	3,177
Other changes in carrier contract assets	$ 91	$ 203	$ 222	$ 423

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail)	3 Months Ended	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2018
Maximum
Income Taxes [Line Items]
Effective federal tax rate	1.00%	1.00%

Segments and Geographic Infor41

Segments and Geographic Information (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Segment Reporting Information [Line Items]
Net revenue from external customers	$ 60,581	$ 55,089	$ 122,944	$ 112,712
Depreciation and amortization	4,027	3,940	7,957	7,945
Gross profit	29,860	25,393	60,820	50,814
Employer
Segment Reporting Information [Line Items]
Net revenue from external customers	39,398	33,729	79,682	69,566
Depreciation and amortization	2,629	2,461	5,147	4,971
Gross profit	16,875	11,667	34,493	23,610
Carrier
Segment Reporting Information [Line Items]
Net revenue from external customers	21,183	21,360	43,262	43,146
Depreciation and amortization	1,398	1,479	2,810	2,974
Gross profit	$ 12,985	$ 13,726	$ 26,327	$ 27,204

Related Parties - Additional In

Related Parties - Additional Information (Detail)	1 Months Ended	3 Months Ended		6 Months Ended
	Mar. 31, 2018	Jun. 30, 2018USD ($)	Jun. 30, 2017USD ($)	Jun. 30, 2018USD ($)Lease_Agreements	Jun. 30, 2017USD ($)	Dec. 31, 2017USD ($)
Related Party Transaction [Line Items]
Lease operating expenses		$ 2,425,000	$ 2,355,000
Due to related party, current		473,000		$ 473,000		$ 901,000
Revolving Line of Credit
Related Party Transaction [Line Items]
Amount outstanding under credit facility		67,246,000		67,246,000		56,246,000
Stockholders and Executives
Related Party Transaction [Line Items]
Due to related party, current		0		0		0
Service from related party		11,000	$ 0	$ 24,000	$ 19,000
Goldman Sachs Group, Inc.
Related Party Transaction [Line Items]
Outstanding common stock ownership percentage				11.80%
Goldman Sachs Group, Inc. | Revolving Line of Credit
Related Party Transaction [Line Items]
Revolving commitment amount from related party		$ 10,000,000		$ 10,000,000
Percentage of loan amounts borrowed under credit facility		10.50%		10.50%
Amount outstanding under credit facility		$ 67,246,000		$ 67,246,000		56,246,000
Due to related party		$ 7,061,000		$ 7,061,000		$ 5,906,000
Related Party Leasing Arrangements
Related Party Transaction [Line Items]
Lease commencement date	Apr. 1, 2019
Lease extended period	1 year
Extended lease commencement date	Jul. 1, 2020
Related Party Leasing Arrangements | Non-Cancellable Leases
Related Party Transaction [Line Items]
Number of Lease agreements with related party | Lease_Agreements				3
Lease agreement period		15 years		15 years
Lease renewal option term		5 years		5 years
Extended leases, expiration date				Dec. 31, 2031
Percentage of fixed annual rent increases				3.00%

Subsequent Events - Additional

Subsequent Events - Additional Information (Detail) - USD ($) $ in Thousands	Jul. 01, 2018	Aug. 31, 2018	Jul. 31, 2018	Apr. 30, 2018	Mar. 31, 2018	Jan. 31, 2018	Aug. 31, 2018	Jun. 30, 2018	Jun. 30, 2017
Subsequent Event [Line Items]
Payments on revolving line of credit								$ 48,000	$ 41,000
Proceeds from line of credit borrowing								59,000	$ 53,000
Revolving Line of Credit
Subsequent Event [Line Items]
Payments on revolving line of credit				$ 24,000		$ 24,000
Proceeds from line of credit borrowing					$ 24,000	$ 7,000		$ 28,000
Restricted Stock Units (RSUs)
Subsequent Event [Line Items]
Number of restricted stock units, granted								500,606
Restricted stock units, aggregate grant date fair value								$ 12,939
Restricted Stock Units (RSUs) | Minimum
Subsequent Event [Line Items]
Vesting period of restricted stock awards								1 year
Restricted Stock Units (RSUs) | Maximum
Subsequent Event [Line Items]
Vesting period of restricted stock awards								4 years
Performance Based Restricted Stock Units R S Us
Subsequent Event [Line Items]
Number of restricted stock units, granted								808,967
Restricted stock units, aggregate grant date fair value								$ 19,054
Performance Based Restricted Stock Units R S Us | Minimum
Subsequent Event [Line Items]
Shares issued vesting percentage								0.00%
Performance Based Restricted Stock Units R S Us | Maximum
Subsequent Event [Line Items]
Shares issued vesting percentage								100.00%
Subsequent Event
Subsequent Event [Line Items]
Issuance of common stock upon exercise of stock options and vesting of restricted stock units							60,578
Subsequent Event | Revolving Line of Credit
Subsequent Event [Line Items]
Payments on revolving line of credit		$ 3,000	$ 28,000
Proceeds from line of credit borrowing			$ 3,000
Subsequent Event | Restricted Stock Units (RSUs)
Subsequent Event [Line Items]
Number of restricted stock units, granted	160,036
Restricted stock units, aggregate grant date fair value	$ 5,441
Vesting period of restricted stock awards	4 years
Subsequent Event | Performance Based Restricted Stock Units R S Us
Subsequent Event [Line Items]
Number of restricted stock units, granted	47,269
Restricted stock units, aggregate grant date fair value	$ 1,607
Restricted stock units, aggregate grant date fair value assuming target achievement	$ 1,124
Minimum vesting period of restricted stock awards	1 year
Maximum vesting period of restricted stock awards	4 years
Vesting in 4 Years Starting April 1, 2018 | Subsequent Event | Performance Based Restricted Stock Units R S Us | Minimum
Subsequent Event [Line Items]
Shares issued vesting percentage	0.00%
Vesting in 4 Years Starting April 1, 2018 | Subsequent Event | Performance Based Restricted Stock Units R S Us | Maximum
Subsequent Event [Line Items]
Shares issued vesting percentage	100.00%