Benefitfocus (BNFT) 10-Q 2 May 19 2019 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2019	Apr. 26, 2019
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q1
Trading Symbol	BNFT
Entity Registrant Name	Benefitfocus,Inc.
Entity Central Index Key	0001576169
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		32,530,485

Unaudited Consolidated Balance

Unaudited Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 144,158	$ 190,928
Accounts receivable, net	28,247	21,077
Contract, prepaid and other current assets	19,039	16,667
Total current assets	191,444	228,672
Property and equipment, net	27,324	69,965
Financing lease right-of-use assets	80,867	0
Operating lease right-of-use assets	2,172	0
Intangible assets, net	14,411	0
Goodwill	12,304	1,634
Deferred contract costs and other non-current assets	12,507	13,668
Total assets	341,029	313,939
Current liabilities:
Accounts payable	4,755	8,687
Accrued expenses	10,310	11,461
Accrued compensation and benefits	13,989	17,269
Deferred revenue, current portion	36,326	36,540
Lease liabilities and financing obligations, current portion	6,771	4,486
Total current liabilities	72,151	78,443
Deferred revenue, net of current portion	10,569	9,323
Convertible senior notes	179,442	176,692
Lease liabilities and financing obligations, net current portion	89,095	57,116
Other non-current liabilities	162	2,575
Total liabilities	351,419	324,149
Commitments and contingencies	0	0
Stockholders' deficit:
Preferred stock, par value $0.001, 5,000,000 shares authorized, no shares issued and outstanding at March 31, 2019 and December 31, 2018	0	0
Common stock, par value $0.001, 50,000,000 shares authorized, 32,070,628 and 32,017,773 shares issued and outstanding at March 31, 2019 and December 31, 2018, respectively	32	32
Additional paid-in capital	409,973	403,631
Accumulated deficit	(420,395)	(413,873)
Total stockholders' deficit	(10,390)	(10,210)
Total liabilities and stockholders' deficit	$ 341,029	$ 313,939

Unaudited Consolidated Balanc_2

Unaudited Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2019	Dec. 31, 2018
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	32,070,628	32,017,773
Common stock, shares outstanding	32,070,628	32,017,773

Unaudited Consolidated Statemen

Unaudited Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Income Statement [Abstract]
Revenue	$ 68,299	$ 62,363
Cost of revenue	32,852	31,403
Gross profit	35,447	30,960
Operating expenses:
Sales and marketing	19,619	19,917
Research and development	13,090	12,023
General and administrative	11,796	9,693
Total operating expenses	44,505	41,633
Loss from operations	(9,058)	(10,673)
Other income (expense):
Interest income	660	58
Interest expense on building lease financing obligations (prior to adoption of ASC 842)	0	(1,866)
Interest expense	(5,814)	(1,317)
Other income	9	0
Total other expense, net	(5,145)	(3,125)
Loss before income taxes	(14,203)	(13,798)
Income tax expense	6	4
Net loss	(14,209)	(13,802)
Comprehensive loss	$ (14,209)	$ (13,802)
Net loss per common share:
Basic and diluted	$ (0.44)	$ (0.44)
Weighted-average common shares outstanding:
Basic and diluted	32,056,934	31,333,348

Unaudited Consolidated Statem_2

Unaudited Consolidated Statement of Changes in Stockholders' Deficit - USD ($) $ in Thousands	Total	Common Stock, $0.001 Par Value	Additional Paid-in Capital	Accumulated Deficit
Balance at Dec. 31, 2017	$ (8,719)	$ 31	$ 352,496	$ (361,246)
Balance (in shares) at Dec. 31, 2017		31,307,989
Exercise of stock options	42	$ 0	42	0
Exercise of stock options (in shares)		9,250
Issuance of common stock upon vesting of restricted stock units	0	$ 0	0	0
Issuance of common stock upon vesting of restricted stock units (in shares)		15,208
Issuance of common stock under Employee Stock Purchase Plan, or ESPP	180	$ 0	180	0
Issuance of common stock under Employee Stock Purchase Plan, or ESPP (in shares)		7,022
Stock-based compensation expense	4,325	$ 0	4,325	0
Net loss	(13,802)	0	0	(13,802)
Balance at Mar. 31, 2018	(17,974)	$ 31	357,043	(375,048)
Balance (in shares) at Mar. 31, 2018		31,339,469
Balance at Dec. 31, 2018	$ (10,210)	$ 32	403,631	(413,873)
Balance (in shares) at Dec. 31, 2018	32,017,773	32,017,773
Cumulative effect adjustment from adoption of lease standard (Accounting Standards Update ("ASU") 2016-02) at Dec. 31, 2018	$ 7,687	$ 0	0	7,687
Exercise of stock options	89	$ 0	89	0
Exercise of stock options (in shares)		18,600
Issuance of common stock upon vesting of restricted stock units	0	$ 0	0	0
Issuance of common stock upon vesting of restricted stock units (in shares)		34,255
Stock-based compensation expense	6,253	$ 0	6,253	0
Net loss	(14,209)	0	0	(14,209)
Balance at Mar. 31, 2019	$ (10,390)	$ 32	$ 409,973	$ (420,395)
Balance (in shares) at Mar. 31, 2019	32,070,628	32,070,628

Unaudited Consolidated Statem_3

Unaudited Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Cash flows from operating activities
Net loss	$ (14,209)	$ (13,802)
Adjustments to reconcile net loss to net cash and cash equivalents used in operating activities:
Depreciation and amortization	5,335	3,930
Stock-based compensation expense	6,367	4,325
Accretion of interest on convertible senior notes	2,749	0
Interest accrual on financing obligations (prior to adoption of ASC 842)	0	1,879
Rent expense in excess of payments	9	0
Provision for doubtful accounts	265	359
Changes in operating assets and liabilities:
Accounts receivable, net	(6,514)	54
Contract, prepaid and other current assets	(2,495)	881
Deferred costs and other non-current assets	1,568	1,166
Accounts payable and accrued expenses	(4,867)	2,722
Accrued compensation and benefits	(3,580)	(2,962)
Deferred revenue	(5,089)	(2,127)
Other non-current liabilities	(23)	(108)
Net cash and cash equivalents used in operating activities	(20,484)	(3,683)
Cash flows from investing activities
Business combination, net of cash acquired	(21,033)	0
Purchases of property and equipment	(2,955)	(1,641)
Net cash and cash equivalents used in investing activities	(23,988)	(1,641)
Cash flows from financing activities
Draws on revolving line of credit	0	31,000
Payments on revolving line of credit	0	(24,000)
Payments of debt issuance costs	(357)	0
Proceeds from exercises of stock options and ESPP	89	222
Payments on capital lease and financing obligations	(655)	(2,448)
Payments of principal on financing lease obligations	(1,375)	0
Net cash and cash equivalents (used in) provided by financing activities	(2,298)	4,774
Net decrease in cash and cash equivalents	(46,770)	(550)
Cash and cash equivalents, beginning of period	190,928	55,335
Cash and cash equivalents, end of period	144,158	54,785
Supplemental disclosure of non-cash investing and financing activities
Property and equipment purchases in accounts payable and accrued expenses	382	452
Property and equipment purchased with financing and capital lease obligations	0	713
Post contract support purchased with financing obligations	$ 0	$ 275

Organization and Description of

Organization and Description of Business	3 Months Ended
	Mar. 31, 2019
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	3 Months Ended
	Mar. 31, 2019
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. The Company is not the primary beneficiary of, nor does it have a controlling financial interest in, any variable interest entity. Accordingly, the Company has 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’ deficit and cash flows. The results of operations for the three-month period ended March 31, 2019 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, 2018 included in the Company’s Annual Report on Form 10-K. 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, incremental borrowing rate used in lease accounting, 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 and Deferred 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 certain other revenue which is generated from the value of policies or products enrolled in through Company’s marketplace. 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. Revenue from insurance broker commissions and supplier transactions is recognized at a point in time when the orders for the policies are received and transferred to the insurance carrier or supplier, 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 insurance carrier customers are generally recognized over the contract term of the associated software services contract, including any extension periods representing a material right. In certain arrangements, the Company utilizes estimates of hours as a measure of progress to determine revenue. Revenues from implementation services with employer customers are generally recognized as those services are performed. Revenues from support and training fees are recognized over the service 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. 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 expenses 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 $6,859 and $7,506 as of March 31, 2019 and December 31, 2018, respectively. Sales and marketing expense includes $1,047 and $1,102 of amortization for the three months ended March 31, 2019 and 2018, 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 $4,967 and $5,235 as of March 31, 2019 and December 31, 2018, respectively. Cost of revenue expense includes $802 and $895 of amortization for the three months ended March 31, 2019 and 2018, 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. Revenue from one customer was approximately 11% and 12% of the total revenue in the three-month period ended March 31, 2019 and 2018, 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. Historically, actual write-offs for uncollectible accounts have not significantly differed from the Company’s estimates. The Company removes recorded receivables and the associated allowances when they are deemed permanently uncollectible. However, higher than expected bad debts may result in future write-offs that are greater than the Company’s estimates. The allowance for doubtful accounts was $657 and $392 as of March 31, 2019 and December 31, 2018, respectively. The allowances for returns are accounted for as reductions of revenue and are estimated based on the Company’s periodic assessment of historical experience and trends. The Company considers factors such as the time lag since the initiation of revenue recognition, historical reasons for adjustments, new customer volume, delivery issues or delays, and past due customer billings. The allowance for returns was $3,051 and $3,191 as of March 31, 2019 and December 31, 2018, 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 March 31, 2019 and 2018, the Company capitalized software development costs of $2,063 and $1,280, respectively, and amortized capitalized software development costs of $1,178 and $889, respectively. The net book value of capitalized software development costs was $10,691 and $9,806 at March 31, 2019 and December 31, 2018, respectively. Leases (after adoption of ASC 842) The Company regularly enters into finance leases for property and equipment. The leasing arrangements for the Company’s office space at its headquarters campus are classified as finance leases. The Company also leases office space under operating leases. The Company determines if an arrangement is a lease at inception. Right of use, or ROU, assets represent the Company’s right to use an underlying asset for the lease term. Lease liabilities represent an obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. As the Company’s operating leases do not provide an implicit interest rate, the Company uses its incremental borrowing rate based on information available at commencement date to determine the present value of lease payments. The ROU asset also consists of any prepaid lease payments, lease incentives, or initial direct costs. The lease terms used to calculate the ROU asset and related lease liability include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for operating leases is recognized on a straight-line basis over the lease term as an operating expense while the expense for finance leases is recognized as depreciation expense and interest expense. The Company has lease agreements which require payments for lease and non-lease components (e.g. common area maintenance and equipment maintenance) that are accounted for as a single lease component. Variable lease payment amounts that cannot be determined at the commencement of the lease, such as maintenance costs based on future obligations, are not included in the ROU assets or liabilities. These are expensed as incurred and recorded as variable lease expense. Comprehensive Loss The Company’s net loss equals comprehensive loss for all periods presented. Recently Adopted Accounting Standards Leases On January 1, 2019, the Company adopted Accounting Standards Update (“ASU”) No. 2016-02, “Leases (Topic 842),” codified as ASC 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. ASC 842 introduces new disclosure requirements for leasing arrangements. The Company adopted this update using the modified transition method at the beginning of the period of adoption. Accordingly, the Company did not adjust prior period financial statements, and recognized a cumulative-effect adjustment to the opening balance of accumulated deficit in 2019 in the amount of $7,687. The Company utilized the following additional significant policy elections: • Elected the package of three transition practical expedients to not reassess: o whether any expired or existing contracts are or contain a lease; o the classification of any expired or existing leases; and o the treatment of initial direct costs. • Adopted a policy to not separate lease and associated nonlease components for all classes of assets. The Company applied this policy to all existing leases on transition as well as new leases going forward. • Adopted a policy to not include leases with a term of 12 months or less in the recognized ROU assets and lease liabilities for all classes of assets. The adoption of this standard had a significant impact on the Company’s consolidated financial statements as follows: • Net assets of $21,019 and related financing obligations and other noncurrent liabilities of $34,909 for existing build-to-suit lease arrangements were derecognized. These leases were transitioned to the new standard based on a proforma analysis of the lease balances as of the transition date as if they had been leases under ASC 840. Based on this analysis, the land component of these leases was combined with the remainder of the lease obligations. Historically, these obligations were accounted for separately and recognized as part of facilities expense and allocated to cost of revenue and operating expenses. Amounts recognized included $56,422 of net ROU assets, $2,848 of net leasehold improvements, and $63,952 of total finance lease liabilities. The net cumulative adjustment to accumulated deficit to derecognize and transition these leases was $7,687. • Finance lease liabilities and ROU assets of $3,589 were recorded related to payment obligations for nonlease components (e.g. common area maintenance and equipment maintenance) associated with existing capital leases. • Operating lease liabilities and ROU assets of $1,169 were recorded related to existing operating lease obligations. Accounting Standards Not Yet Adopted In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement.” The ASU modifies the disclosure requirements required for fair value measurements. This ASU is effective for the Company for the interim and annual reporting periods starting January 1, 2020. Early adoption is permitted. The Company does not expect this guidance to have a material impact on its consolidated financial statements. 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.

Net Loss Per Common Share

Net Loss Per Common Share	3 Months Ended
	Mar. 31, 2019
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 March 31, Anti-Dilutive Common Share Equivalents 2019 2018 Restricted stock units 2,013,082 1,730,065 Stock options 214,647 253,905 Convertible senior notes 4,513,824 - Employee Stock Purchase Plan 1,959 4,358 Total anti-dilutive common share equivalents 6,743,512 1,988,328 Basic and diluted net loss per common share is calculated as follows: Three Months Ended March 31, 2019 2018 Numerator: Net loss $ (14,209 ) $ (13,802 ) Net loss attributable to common stockholders $ (14,209 ) $ (13,802 ) Denominator: Weighted-average common shares outstanding, basic and diluted 32,056,934 31,333,348 Net loss per common share, basic and diluted $ (0.44 ) $ (0.44 )

Fair Value Measurement

Fair Value Measurement	3 Months Ended
	Mar. 31, 2019
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. March 31, 2019 Description Level 1 Level 2 Level 3 Total Cash Equivalents: Money market mutual funds (1) $ 136,596 $ — $ — $ 136,596 Total assets $ 136,596 $ — $ — $ 136,596 December 31, 2018 Description Level 1 Level 2 Level 3 Total Cash Equivalents: Money market mutual funds (1) $ 182,748 $ — $ — $ 182,748 Total assets $ 182,748 $ — $ — $ 182,748 ________________ ( 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.

Business Combination

Business Combination	3 Months Ended
	Mar. 31, 2019
Business Combinations [Abstract]
Business Combination	5. Business Combination On February 25, 2019, the Company purchased certain operating assets and liabilities, intellectual property and intangible assets, including the workforce in place, of the commercial business of Connecture, Inc., for $21,072 ($24,000 before working capital adjustments). This acquisition added technology to potentially strengthen the Company’s platform, expand its customer reach, and enhance the value the Company delivers to its carrier customers. The following table summarizes the fair value of the consideration paid and the amounts of the assets acquired and liabilities assumed recognized at the acquisition date: Consideration Transferred Cash $ 20,033 Payable 39 Contingent consideration arrangement 1,000 Fair value of total consideration transferred $ 21,072 Recognized Amounts of Identifiable Assets Acquired and Liabilities Assumed Accounts receivable, net $ 921 Contract, prepaid and other current assets 561 Property and equipment, net 198 Operating lease right-of-use assets 1,107 Intangible assets, net 14,600 Deferred contract costs and other non-current assets 430 Accrued compensation and benefits (186 ) Deferred revenue, current portion (6,122 ) Operating lease ROU liabilities, current portion (84 ) Operating lease ROU liabilities, net of current portion (1,023 ) Total identifiable net assets 10,402 Goodwill 10,670 Total identifiable net assets and goodwill $ 21,072 The goodwill of $10,670 arising from the acquisition consists largely of the value of the acquired organized workforce as well as economies of scale. The goodwill recognized is expected to be deductible for income tax purposes. The identifiable intangible assets acquired have a weighted average amortization period of 6.5 years and include developed technology, customer relationships, and trade name. The Company did not acquire any contingent liabilities as part of the transaction. The $21,072 fair value purchase price includes cash of $21,033 and a liability to Connecture of $39 for estimated working capital adjustments. The cash transferred includes $1,000 in contingent consideration placed into a third-party escrow. These escrowed funds are released to Connecture as required contractual consents to the assignment of service arrangements are obtained from specified customers. The undiscounted consideration distributable to Connecture under this arrangement ranges from $0 to $1,000. As customer consents are obtained, the amount of the undiscounted consideration associated with the customer is transferred to Connecture. For any specified service contracts that, at the end of one year, are continuing to be honored by the customer, whether or not affirmative consent has been received from such customer, the related escrowed funds will be distributed to Connecture. If during the first year after the closing date of the acquisition, a customer refuses to consent to the assignment of the contract, or fails to deliver consent and stops performing under the contract or otherwise terminates the contract, the portion of the escrow related to that customer contract will then be distributable back to the Company. The Company expects all of the contingent consideration will be distributed to Connecture within one year of acquisition. Therefore, the full $1,000 undiscounted escrow balance is included in the fair value of the consideration transferred for the acquisition. The fair value of the consideration transferred along with accounts receivable, contract assets, and deferred revenue is provisional pending finalization of the working capital adjustment to the purchase price defined by the agreement between the parties. The fair value of property and equipment, right of use assets, and lease liabilities is provisional pending finalization of the Company’s review of supporting records for these assets and liabilities. The Company incurred $289 in costs related to completing the acquisition of which $191 are recognized in General and administrative expense for the quarter ended March 31, 2019. Revenue and expenses recognized by the Company related to the operations of the acquired business were immaterial for the period from the acquisition to March 31, 2019. Coincident with the acquisition, the Company entered into two additional agreements with Connecture each of which are accounted for separately at contracted prices as described below: • Transition Services Agreement where each party provides certain transition services to the other for a 12-month period to facilitate an orderly transition the acquired business. • An agreement for the Company to provide interim services to Connecture as a subcontractor under a master services agreement maintained by Connecture that includes service commitments related to both the acquired business and Connecture’s retained business while the parties work together with the customer to legally separate the contract. Supplemental pro forma revenue and earnings information are not presented since historical records for the acquired business are not available. Therefore, determining the amount of revenue and earnings of the combined entity as though the business combination had occurred as of the beginning of the comparable periods would require significant estimates of amounts that the Company cannot independently substantiate. The Company estimates that the difference between pro forma information compared to reported results would not be significant.

Convertible Senior Notes

Convertible Senior Notes	3 Months Ended
	Mar. 31, 2019
Debt Disclosure [Abstract]
Convertible Senior Notes	6. Convertible Senior Notes In December 2018, the Company issued $240,000 aggregate principal amount of 1.25% convertible senior notes (“Notes”) due December 15, 2023, unless earlier repurchased by the Company or converted by the holder pursuant to their terms. Interest is payable semiannually in arrears on June 15 and December 15 of each year, commencing on June 15, 2019. The Notes are governed by an Indenture between the Company, as issuer, and U.S. Bank, National Association, as trustee. The Notes are unsecured and rank: senior in right of payment to the Company’s future indebtedness that is expressly subordinated in right of payment to the Notes; equal in right of payment to the Company’s unsecured indebtedness that is not so subordinated; effectively junior in right of payment to any of the Company’s senior, secured indebtedness to the extent of the value of the assets securing such indebtedness; and structurally junior to all indebtedness and other liabilities incurred by the Company’s subsidiaries. Upon conversion, the Company will pay or deliver, as the case may be, cash, shares of the Company’s common stock or a combination of cash and shares of common stock, at the Company’s election. The Notes have an initial conversion rate of 18.8076 shares of common stock per $1 principal amount of Notes. This represents an initial effective conversion price of approximately $53.17 per share of common stock and 4,513,824 shares issuable upon conversion. Throughout the term of the Notes, the conversion rate may be adjusted upon the occurrence of certain events. Holders of the Notes will not receive any cash payment representing accrued and unpaid interest, if any, upon conversion of a Note, except in limited circumstances. Accrued but unpaid interest will be deemed to be paid by cash, shares of the Company’s common stock or a combination of cash and shares of the Company’s common stock paid or delivered, as the case may be, to the holder upon conversion of Notes. Prior to the close of business on September 14, 2023, the Notes will be convertible at the option of holders during certain periods, only upon satisfaction of certain conditions set forth below. On or after September 15, 2023, until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert all or any portion of their Notes at the conversion price at any time regardless of whether the conditions set forth below have been met. Holders may convert all or a portion of their Notes prior to the close of business on September 14, 2023, in multiples of $1 principal amount, only under the following circumstances: • during any calendar quarter commencing after the calendar quarter ending on March 31, 2019 (and only during such calendar quarter), if the last reported sales price of the common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; • during the five business day period after any five consecutive trading day period, or the Notes measurement period, in which the “trading price” (as defined in the Indenture) per $1 principal amount of notes for each trading day of the Notes measurement period was less than 98% of the product of the last reported sale price of the Company’s common stock and the conversion rate on each such trading day; • if the Company calls any or all of the Notes for redemption, at any time prior to the close of business on September 14, 2023; or • upon the occurrence of specified corporate events. As of March 31, 2019, the Notes were not convertible. Based on market data available for publicly traded, senior, unsecured corporate bonds issued by companies in the same industry and with similar maturity, the Company estimated the implied market interest rate of its Notes to be approximately 7.30%, assuming no conversion option. Assumptions used in the estimate represent what market participants would use in pricing the liability component of the Notes, including market interest rates, credit standing, and yield curves, all of which are defined as Level 2 observable inputs. The estimated implied interest rate was applied to the Notes, which resulted in a fair value of the liability component of $181,500 upon issuance, calculated as the present value of future contractual payments based on the $240,000 aggregate principal amount. The excess of the principal amount of the liability component over its carrying amount, or the debt discount, is amortized to interest expense over the term of the Notes. The $58,500 difference between the In accounting for the transaction costs related to the issuance of the Notes, the Company allocated the total amount incurred to the liability and equity components in proportion to the allocation of proceeds. Transaction costs attributable to the liability component, totaling $4,808, are being amortized to expense over the term of the Notes, and transaction costs attributable to the equity component, totaling $1,550, and were included with the equity component in shareholders’ equity. The Notes consist of the following as of: As of March 31, 2019 December 31, 2018 Liability Component: Principal $ 240,000 $ 240,000 Less: debt discount, net of amortization (60,558 ) (63,308 ) Net carrying amount $ 179,442 $ 176,692 Equity component (a) 56,950 56,950 (a) Recorded in the consolidated balance sheet within additional paid-in capital, net of $1,550 transaction costs in equity. The following table sets forth total interest expense recognized related to the Notes: Three Months Ended March 31, 2019 1.25% coupon $ 750 Amortization of debt discount and transaction costs 2,749 $ 3,499 As of March 31, 2019, the fair value of the Notes, which was determined based on inputs that are observable in the market or that could be derived from, or corroborated with, observable market data, quoted price of the Notes in an over-the-counter market (Level 2), and carrying value of debt instruments (carrying value excludes the equity component of the Company’s Notes classified in equity) were as follows: March 31, 2019 December 31, 2018 Fair Value Carrying Value Fair Value Carrying Value Convertible senior notes $ 276,000 $ 179,442 $ 254,400 $ 176,692 In connection with the issuance of the Notes, the Company entered into capped call transactions with certain counterparties affiliated with the initial purchasers and others. The capped call transactions are expected to reduce potential dilution of earnings per share upon conversion of the Notes. Under the capped call transactions, the Company purchased capped call options that in the aggregate relate to the total number of shares of the Company’s common stock underlying the Notes, with an initial strike price of approximately $53.17 per share, which corresponds to the initial conversion price of the Notes and is subject to anti-dilution adjustments substantially similar to those applicable to the conversion rate of the Notes, and have a cap price of approximately $89.98. The cost of the purchased capped calls of $33,024 was recorded to stockholders’ deficit and will not be re-measured provided it continues to meet the conditions for equity classification. Based on the closing price of our common stock of $49.52 on March 31, 2019, the if-converted value of the Notes was less than their respective principal amounts.

Revolving Line of Credit

Revolving Line of Credit	3 Months Ended
	Mar. 31, 2019
Debt Disclosure [Abstract]
Revolving Line of Credit	7. Revolving Line of Credit The Company executed a loan and security agreement with a syndicate of lenders led by Silicon Valley Bank for a senior revolving credit agreement in February 2015 (as subsequently amended, the “Senior Revolver”). The Company is bound by customary affirmative and negative covenants in connection with the Senior Revolver, including financial covenants related to liquidity and EBITDA. In the event of a default, the lenders may declare all obligations immediately due and stop advancing money or extending credit under the line of credit. The line of credit is collateralized by substantially all of the Company’s tangible and intangible assets, including intellectual property and the equity of subsidiaries. As of March 31, 2019 and December 31, 2018, there were no amounts outstanding under the Senior Revolver. As of March 31, 2019, the amount available to borrow was $89,609.

Commitments

Commitments	3 Months Ended
	Mar. 31, 2019
Commitments And Contingencies Disclosure [Abstract]
Commitments	8. Commitments Total net cash flows were not impacted by adoption of ASC 842; however, classification of some transactions moved between operating and financing activities. Supplemental cash flow information related to the Company’s operating and finance leases was as follows: Cash Paid for Amounts Included in the Measurement of Lease Liabilities Three Months Ended March 31, 2019 Financing cash flows from finance leases $ 1,375 Operating cash flows from finance leases $ 2,131 Operating cash flows from operating leases $ 146 ROU Assets Obtained in Exchange for New Lease Obligations Finance lease liabilities $ - Operating lease liabilities $ 1,107 As of March 31, 2019, the Company had no additional significant operating or finance leases that had not yet commenced. Operating Leases The Company leases office facilities under various non-cancelable operating lease agreements with original lease periods expiring between 2020 and 2027. Some of the leases provide for renewal terms at the Company’s option. Certain future minimum lease payments due under these operating lease agreements contain free rent periods or escalating rent payment provisions. These leases generally do not contain purchase options. Lease expense is recognized on a straight-line basis over the lease term as an operating expense. The components of operating lease expense were as follows: Three Months Ended March 31, 2019 Fixed operating lease expense $ 155 Short-term lease expense, net 24 Variable operating lease expense 27 Total operating lease expense $ 206 The following table presents the lease balances within the Consolidated Balance Sheet, weighted average remaining lease term, and weighted average discount rates related to the Company’s operating leases: Lease Assets and Liabilities Classification As of March 31, 2019 Assets Operating lease ROU asset - Buildings Operating lease right-of-use assets $ 2,172 Liabilities Operating lease ROU liabilities, current portion Current liabilities 615 Operating lease ROU liabilities, net of current portion Other non-current liabilities 1,779 Total operating lease liabilities 2,394 Weighted average remaining lease term (in years) 5.87 Weighted average discount rate 5.73% The following table presents the maturity of the Company’s operating lease liabilities as of March 31, 2019: Operating Leases Year Ending December 31, Remainder of 2019 $ 575 2020 445 2021 385 2022 391 2023 398 Thereafter 660 Total minimum lease payments 2,854 Less: imputed interest (460 ) Total operating lease liabilities $ 2,394 Finance Leases The Company leases three buildings on its Charleston, South Carolina campus. Under ASC 840, one leasing arrangements was accounted for as a capital lease while the remaining two lease agreements were accounted for as build-to-suit, failed sale-leaseback arrangements. Accordingly, the Company recognized liabilities for the lease payments related to these two buildings, which were recorded as financing obligations. Pursuant to ASC 842, the assets and related financing obligations for the existing build-to-suit lease arrangements were derecognized with a cumulative adjustment of $7,687 to accumulated deficit. These leases were transitioned to the new standard based on an analysis of the lease balances as of the transition date as if they had been a lease under ASC 840. Based on this analysis, the land components of these leases were combined with the remainder of the lease obligation whereas this obligation was previously accounted for separately and recognized as part of facility expense. To calculate the present value of lease payments, the Company used an incremental borrowing rate based on third-party valuation results as of December 2016. All three leasing arrangements are classified as finance leases under ASC 842. As a result of the adoption of ASC 842, operating expenses increased as depreciation expense related to the buildings increased due to shortening the period of depreciation from the estimated life of the asset to the expected term of the lease. Additionally, interest expense decreased as a result of a discount rate that is lower than the rate required for build-to-suit accounting. Additional information regarding these three leases is incorporated in the following disclosures. The Company has entered into various purchase agreements to obtain property and equipment for operations that are accounted for as finance leases. These arrangements have original terms ranging from 3 to 5 years with interest rates ranging from 5.25% to 14.09%. The leases are secured by the underlying leased property and equipment. The components of finance lease expense were as follows: Three Months Ended March 31, 2019 Amortization of ROU assets $ 2,035 Interest on lease liabilities 2,125 Variable finance lease expense 8 Total finance lease expense $ 4,168 The following table presents the lease balances within the Consolidated Balance Sheet, weighted average remaining lease term, and weighted average discount rates related to the Company’s finance leases: Lease Assets and Liabilities Classification As of March 31, 2019 Assets Finance lease ROU asset Finance lease right-of-use assets, net $ 82,827 Finance lease ROU accumulated amortization Finance lease right-of-use assets, net (1,960 ) Finance lease ROU assets, net 80,867 Liabilities Finance lease ROU liabilities, current portion Current Liabilities $ 5,384 Finance lease ROU liabilities, net of current portion Other non-current liabilities 86,471 Total finance lease liabilities 91,855 Weighted average remaining lease term (in years) 12.14 Weighted average discount rate 9.40% The following table presents the maturity of the Company’s finance lease liabilities as of March 31, 2019: Finance Leases Year Ending December 31, Remainder of 2019 $ 10,422 2020 11,968 2021 11,430 2022 11,176 2023 11,506 Thereafter 103,616 Total minimum lease payments 160,118 Less: imputed interest (68,263 ) Total finance lease liabilities $ 91,855

Stock-based Compensation

Stock-based Compensation	3 Months Ended
	Mar. 31, 2019
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Stock-based Compensation	9. Stock-based Compensation Restricted Stock Units During the three months ended March 31, 2019, the Company granted 53,378 restricted stock units, or RSUs, to employees and officers with an aggregate grant date fair value of $2,543. These RSUs generally vest in equal annual installments over various periods ranging from less than 1 to 4 years from the grant date, subject to continued service to the Company. 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. The weighted-average vesting period for these RSU’s is approximately 3.10 years from the date of grant.

Stockholders' Deficit

Stockholders' Deficit	3 Months Ended
	Mar. 31, 2019
Equity [Abstract]
Stockholders' Deficit	10. 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 March 31, 2019, the Company had reserved a total of 4,209,856 of its authorized 50,000,000 shares of common stock for future issuance as follows: Outstanding stock options 214,647 Restricted stock units 2,013,082 Available for future issuance under stock award plans 1,858,712 Available for future issuance under ESPP 123,415 Total common shares reserved for future issuance 4,209,856

Revenue

Revenue	3 Months Ended
	Mar. 31, 2019
Revenue From Contract With Customer [Abstract]
Revenue	11. Revenue Disaggregation of Revenue The following tables provide information about disaggregation of revenue by service line: Three Months Ended March 31, 2019 2018 Service line: Software services $ 53,012 $ 48,170 Professional services 15,287 14,193 Total $ 68,299 $ 62,363 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 Three Months Ended March 31, 2019 Contract assets $ 12,798 $ 12,383 Contract liabilities: Deferred revenue $ 45,863 $ 46,895 Three Months Ended March 31, 2018 Contract assets $ 11,522 $ 9,329 Contract liabilities: Deferred revenue $ 55,027 $ 52,900 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 months ended March 31, 2019 and 2018. The following tables show the significant changes in contract asset balances: Three Months Ended March 31, Contract Assets 2019 2018 Transferred to receivables from contract assets $ 4,099 $ 4,865 Revenue recognized from performance obligations satisfied but not billed $ 3,684 $ 2,757 Revenue recognized during the three months ended March 31, 2019 that was included in the deferred revenue balance at the beginning of the periods was $13,146. The Company recorded favorable adjustments to revenue arising from performance obligations satisfied or partially satisfied in previous periods $992 during the three months ended March 31, 2019. Performance Obligations As of March 31, 2019, 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	3 Months Ended
	Mar. 31, 2019
Income Tax Disclosure [Abstract]
Income Taxes	12. Income Taxes The Company’s effective federal tax rate for the three months ended March 31, 2019 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.

Segments and Geographic Informa

Segments and Geographic Information	3 Months Ended
	Mar. 31, 2019
Segment Reporting [Abstract]
Segments and Geographic Information	13. Segments and Geographic Information During the three months ended March 31, 2019, the Company concluded that the composition of its reportable segments changed as a result of changes in the structure of its internal organization. As a result of these changes, the Company views its operations and manages its business as one operating segment. Segment information matches the consolidated financial information for the current period and prior periods reported.

Related Parties

Related Parties	3 Months Ended
	Mar. 31, 2019
Related Party Transactions [Abstract]
Related Parties	14. 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. The Company’s headquarter campus building leases are accounted for as financing lease right-of-use assets and lease liabilities on the Consolidated Balance Sheet as of March 31, 2019. 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 $3,331 and $3,326 for the three months ended March 31, 2019 and 2018. Other amounts due to these related parties were $223 and $833 as of March 31, 2019 and December 31, 2018, respectively and were recorded in “Accrued expenses.” In March 2019, the Company terminated its cancellable lease agreement to construct additional office space under its December 12, 2016 lease. 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 $119 and $13 for the three months ended March 31, 2019 and 2018, respectively. There were no amounts due to these companies as of March 31, 2019 or December 31, 2018. During 2018, the Company entered into an agreement to purchase software and services from a company affiliated with a Company director. The aggregate amount of payments due under this contract is $115. Payments related to this agreement were $35 for the three months ended March 31, 2019. There were no amounts due to this company as of March 31, 2019. Amounts due to this company were $35 as of December 31, 2018

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2019
Subsequent Events [Abstract]
Subsequent Events	15. Subsequent Events Restricted Stock Units On April 1, 2019, the Company granted 344,978 RSUs and 544,809 performance RSUs with an aggregate grant date fair value of $16,422 and $25,759, respectively. The aggregate grant date fair value of the performance RSUs assuming target achievement was $18,185. The number of performance RSUs that will vest will be determined upon the achievement of certain financial targets for 2019, and vesting will then occur in equal annual installments over various periods ranging from less than one to four years. The actual number of shares issued upon vesting could range between 0% and 100% of the number of awards granted. The weighted-average vesting period for these RSUs and performance RSUs is approximately 3.42 and 3.65 years from the date of grant, respectively. Common Stock During April 2019, employees exercised stock options and RSUs vested resulting in the issuance of 459,857 shares.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2019
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. The Company is not the primary beneficiary of, nor does it have a controlling financial interest in, any variable interest entity. Accordingly, the Company has 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’ deficit and cash flows. The results of operations for the three-month period ended March 31, 2019 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, 2018 included in the Company’s Annual Report on Form 10-K.
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, incremental borrowing rate used in lease accounting, 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 and Deferred Revenue	Revenue and Deferred 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 certain other revenue which is generated from the value of policies or products enrolled in through Company’s marketplace. 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. Revenue from insurance broker commissions and supplier transactions is recognized at a point in time when the orders for the policies are received and transferred to the insurance carrier or supplier, 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 insurance carrier customers are generally recognized over the contract term of the associated software services contract, including any extension periods representing a material right. In certain arrangements, the Company utilizes estimates of hours as a measure of progress to determine revenue. Revenues from implementation services with employer customers are generally recognized as those services are performed. Revenues from support and training fees are recognized over the service 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.
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 expenses 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 $6,859 and $7,506 as of March 31, 2019 and December 31, 2018, respectively. Sales and marketing expense includes $1,047 and $1,102 of amortization for the three months ended March 31, 2019 and 2018, 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 $4,967 and $5,235 as of March 31, 2019 and December 31, 2018, respectively. Cost of revenue expense includes $802 and $895 of amortization for the three months ended March 31, 2019 and 2018, 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. Revenue from one customer was approximately 11% and 12% of the total revenue in the three-month period ended March 31, 2019 and 2018, 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. Historically, actual write-offs for uncollectible accounts have not significantly differed from the Company’s estimates. The Company removes recorded receivables and the associated allowances when they are deemed permanently uncollectible. However, higher than expected bad debts may result in future write-offs that are greater than the Company’s estimates. The allowance for doubtful accounts was $657 and $392 as of March 31, 2019 and December 31, 2018, respectively. The allowances for returns are accounted for as reductions of revenue and are estimated based on the Company’s periodic assessment of historical experience and trends. The Company considers factors such as the time lag since the initiation of revenue recognition, historical reasons for adjustments, new customer volume, delivery issues or delays, and past due customer billings. The allowance for returns was $3,051 and $3,191 as of March 31, 2019 and December 31, 2018, 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 March 31, 2019 and 2018, the Company capitalized software development costs of $2,063 and $1,280, respectively, and amortized capitalized software development costs of $1,178 and $889, respectively. The net book value of capitalized software development costs was $10,691 and $9,806 at March 31, 2019 and December 31, 2018, respectively.
Leases (after adoption of ASC 842)	Leases (after adoption of ASC 842) The Company regularly enters into finance leases for property and equipment. The leasing arrangements for the Company’s office space at its headquarters campus are classified as finance leases. The Company also leases office space under operating leases. The Company determines if an arrangement is a lease at inception. Right of use, or ROU, assets represent the Company’s right to use an underlying asset for the lease term. Lease liabilities represent an obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. As the Company’s operating leases do not provide an implicit interest rate, the Company uses its incremental borrowing rate based on information available at commencement date to determine the present value of lease payments. The ROU asset also consists of any prepaid lease payments, lease incentives, or initial direct costs. The lease terms used to calculate the ROU asset and related lease liability include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for operating leases is recognized on a straight-line basis over the lease term as an operating expense while the expense for finance leases is recognized as depreciation expense and interest expense. The Company has lease agreements which require payments for lease and non-lease components (e.g. common area maintenance and equipment maintenance) that are accounted for as a single lease component. Variable lease payment amounts that cannot be determined at the commencement of the lease, such as maintenance costs based on future obligations, are not included in the ROU assets or liabilities. These are expensed as incurred and recorded as variable lease expense.
Comprehensive Loss	Comprehensive Loss The Company’s net loss equals comprehensive loss for all periods presented.
Recently Adopted Accounting Standards	Recently Adopted Accounting Standards Leases On January 1, 2019, the Company adopted Accounting Standards Update (“ASU”) No. 2016-02, “Leases (Topic 842),” codified as ASC 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. ASC 842 introduces new disclosure requirements for leasing arrangements. The Company adopted this update using the modified transition method at the beginning of the period of adoption. Accordingly, the Company did not adjust prior period financial statements, and recognized a cumulative-effect adjustment to the opening balance of accumulated deficit in 2019 in the amount of $7,687. The Company utilized the following additional significant policy elections: • Elected the package of three transition practical expedients to not reassess: o whether any expired or existing contracts are or contain a lease; o the classification of any expired or existing leases; and o the treatment of initial direct costs. • Adopted a policy to not separate lease and associated nonlease components for all classes of assets. The Company applied this policy to all existing leases on transition as well as new leases going forward. • Adopted a policy to not include leases with a term of 12 months or less in the recognized ROU assets and lease liabilities for all classes of assets. The adoption of this standard had a significant impact on the Company’s consolidated financial statements as follows: • Net assets of $21,019 and related financing obligations and other noncurrent liabilities of $34,909 for existing build-to-suit lease arrangements were derecognized. These leases were transitioned to the new standard based on a proforma analysis of the lease balances as of the transition date as if they had been leases under ASC 840. Based on this analysis, the land component of these leases was combined with the remainder of the lease obligations. Historically, these obligations were accounted for separately and recognized as part of facilities expense and allocated to cost of revenue and operating expenses. Amounts recognized included $56,422 of net ROU assets, $2,848 of net leasehold improvements, and $63,952 of total finance lease liabilities. The net cumulative adjustment to accumulated deficit to derecognize and transition these leases was $7,687. • Finance lease liabilities and ROU assets of $3,589 were recorded related to payment obligations for nonlease components (e.g. common area maintenance and equipment maintenance) associated with existing capital leases. • Operating lease liabilities and ROU assets of $1,169 were recorded related to existing operating lease obligations.
Accounting Standards Not Yet Adopted	Accounting Standards Not Yet Adopted In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement.” The ASU modifies the disclosure requirements required for fair value measurements. This ASU is effective for the Company for the interim and annual reporting periods starting January 1, 2020. Early adoption is permitted. The Company does not expect this guidance to have a material impact on its consolidated financial statements. 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.

Net Loss Per Common Share (Tabl

Net Loss Per Common Share (Tables)	3 Months Ended
	Mar. 31, 2019
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 March 31, Anti-Dilutive Common Share Equivalents 2019 2018 Restricted stock units 2,013,082 1,730,065 Stock options 214,647 253,905 Convertible senior notes 4,513,824 - Employee Stock Purchase Plan 1,959 4,358 Total anti-dilutive common share equivalents 6,743,512 1,988,328
Basic and Diluted Net Loss per Common Share	Basic and diluted net loss per common share is calculated as follows: Three Months Ended March 31, 2019 2018 Numerator: Net loss $ (14,209 ) $ (13,802 ) Net loss attributable to common stockholders $ (14,209 ) $ (13,802 ) Denominator: Weighted-average common shares outstanding, basic and diluted 32,056,934 31,333,348 Net loss per common share, basic and diluted $ (0.44 ) $ (0.44 )

Fair Value Measurement (Tables)

Fair Value Measurement (Tables)	3 Months Ended
	Mar. 31, 2019
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. March 31, 2019 Description Level 1 Level 2 Level 3 Total Cash Equivalents: Money market mutual funds (1) $ 136,596 $ — $ — $ 136,596 Total assets $ 136,596 $ — $ — $ 136,596 December 31, 2018 Description Level 1 Level 2 Level 3 Total Cash Equivalents: Money market mutual funds (1) $ 182,748 $ — $ — $ 182,748 Total assets $ 182,748 $ — $ — $ 182,748 ________________ ( 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.

Business Combination (Tables)

Business Combination (Tables)	3 Months Ended
	Mar. 31, 2019
Business Combinations [Abstract]
Summary of Fair Value of Consideration Paid and Amounts of Assets Acquired and Liabilities Assumed Recognized at Acquisition Date	The following table summarizes the fair value of the consideration paid and the amounts of the assets acquired and liabilities assumed recognized at the acquisition date: Consideration Transferred Cash $ 20,033 Payable 39 Contingent consideration arrangement 1,000 Fair value of total consideration transferred $ 21,072 Recognized Amounts of Identifiable Assets Acquired and Liabilities Assumed Accounts receivable, net $ 921 Contract, prepaid and other current assets 561 Property and equipment, net 198 Operating lease right-of-use assets 1,107 Intangible assets, net 14,600 Deferred contract costs and other non-current assets 430 Accrued compensation and benefits (186 ) Deferred revenue, current portion (6,122 ) Operating lease ROU liabilities, current portion (84 ) Operating lease ROU liabilities, net of current portion (1,023 ) Total identifiable net assets 10,402 Goodwill 10,670 Total identifiable net assets and goodwill $ 21,072

Convertible Senior Notes (Table

Convertible Senior Notes (Tables)	3 Months Ended
	Mar. 31, 2019
Debt Disclosure [Abstract]
Schedule of Convertible Notes	The Notes consist of the following as of: As of March 31, 2019 December 31, 2018 Liability Component: Principal $ 240,000 $ 240,000 Less: debt discount, net of amortization (60,558 ) (63,308 ) Net carrying amount $ 179,442 $ 176,692 Equity component (a) 56,950 56,950 (a) Recorded in the consolidated balance sheet within additional paid-in capital, net of $1,550 transaction costs in equity.
Summary of Recognized Interest Expense	The following table sets forth total interest expense recognized related to the Notes: Three Months Ended March 31, 2019 1.25% coupon $ 750 Amortization of debt discount and transaction costs 2,749 $ 3,499
Schedule of Fair Value and Carrying Value of Senior Notes	As of March 31, 2019, the fair value of the Notes, which was determined based on inputs that are observable in the market or that could be derived from, or corroborated with, observable market data, quoted price of the Notes in an over-the-counter market (Level 2), and carrying value of debt instruments (carrying value excludes the equity component of the Company’s Notes classified in equity) were as follows: March 31, 2019 December 31, 2018 Fair Value Carrying Value Fair Value Carrying Value Convertible senior notes $ 276,000 $ 179,442 $ 254,400 $ 176,692

Commitments (Tables)

Commitments (Tables)	3 Months Ended
	Mar. 31, 2019
Leases [Abstract]
Schedule of Supplemental Cash Flow Information Related to Operating and Finance Leases	Supplemental cash flow information related to the Company’s operating and finance leases was as follows: Cash Paid for Amounts Included in the Measurement of Lease Liabilities Three Months Ended March 31, 2019 Financing cash flows from finance leases $ 1,375 Operating cash flows from finance leases $ 2,131 Operating cash flows from operating leases $ 146 ROU Assets Obtained in Exchange for New Lease Obligations Finance lease liabilities $ - Operating lease liabilities $ 1,107
Schedule of Operating and Finance Lease Expense	The components of operating lease expense were as follows: Three Months Ended March 31, 2019 Fixed operating lease expense $ 155 Short-term lease expense, net 24 Variable operating lease expense 27 Total operating lease expense $ 206 The components of finance lease expense were as follows: Three Months Ended March 31, 2019 Amortization of ROU assets $ 2,035 Interest on lease liabilities 2,125 Variable finance lease expense 8 Total finance lease expense $ 4,168
Schedule of Operating Lease Assets and Liabilities	The following table presents the lease balances within the Consolidated Balance Sheet, weighted average remaining lease term, and weighted average discount rates related to the Company’s operating leases: Lease Assets and Liabilities Classification As of March 31, 2019 Assets Operating lease ROU asset - Buildings Operating lease right-of-use assets $ 2,172 Liabilities Operating lease ROU liabilities, current portion Current liabilities 615 Operating lease ROU liabilities, net of current portion Other non-current liabilities 1,779 Total operating lease liabilities 2,394 Weighted average remaining lease term (in years) 5.87 Weighted average discount rate 5.73%
Schedule of Maturities of Operating Lease Liabilities	The following table presents the maturity of the Company’s operating lease liabilities as of March 31, 2019: Operating Leases Year Ending December 31, Remainder of 2019 $ 575 2020 445 2021 385 2022 391 2023 398 Thereafter 660 Total minimum lease payments 2,854 Less: imputed interest (460 ) Total operating lease liabilities $ 2,394
Schedule of Finance Lease Assets and Liabilities	The following table presents the lease balances within the Consolidated Balance Sheet, weighted average remaining lease term, and weighted average discount rates related to the Company’s finance leases: Lease Assets and Liabilities Classification As of March 31, 2019 Assets Finance lease ROU asset Finance lease right-of-use assets, net $ 82,827 Finance lease ROU accumulated amortization Finance lease right-of-use assets, net (1,960 ) Finance lease ROU assets, net 80,867 Liabilities Finance lease ROU liabilities, current portion Current Liabilities $ 5,384 Finance lease ROU liabilities, net of current portion Other non-current liabilities 86,471 Total finance lease liabilities 91,855 Weighted average remaining lease term (in years) 12.14 Weighted average discount rate 9.40%
Schedule of Maturities of Finance Lease Liabilities	The following table presents the maturity of the Company’s finance lease liabilities as of March 31, 2019: Finance Leases Year Ending December 31, Remainder of 2019 $ 10,422 2020 11,968 2021 11,430 2022 11,176 2023 11,506 Thereafter 103,616 Total minimum lease payments 160,118 Less: imputed interest (68,263 ) Total finance lease liabilities $ 91,855

Stockholders' Deficit (Tables)

Stockholders' Deficit (Tables)	3 Months Ended
	Mar. 31, 2019
Equity [Abstract]
Shares of Common Stock Reserved for Future Issuance	At March 31, 2019, the Company had reserved a total of 4,209,856 of its authorized 50,000,000 shares of common stock for future issuance as follows: Outstanding stock options 214,647 Restricted stock units 2,013,082 Available for future issuance under stock award plans 1,858,712 Available for future issuance under ESPP 123,415 Total common shares reserved for future issuance 4,209,856

Revenue (Tables)

Revenue (Tables)	3 Months Ended
	Mar. 31, 2019
Revenue From Contract With Customer [Abstract]
Summary of Disaggregation of Revenue by Service Line	The following tables provide information about disaggregation of revenue by service line: Three Months Ended March 31, 2019 2018 Service line: Software services $ 53,012 $ 48,170 Professional services 15,287 14,193 Total $ 68,299 $ 62,363
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 Three Months Ended March 31, 2019 Contract assets $ 12,798 $ 12,383 Contract liabilities: Deferred revenue $ 45,863 $ 46,895 Three Months Ended March 31, 2018 Contract assets $ 11,522 $ 9,329 Contract liabilities: Deferred revenue $ 55,027 $ 52,900
Summary of Significant Changes in Contract Asset Balances	The following tables show the significant changes in contract asset balances: Three Months Ended March 31, Contract Assets 2019 2018 Transferred to receivables from contract assets $ 4,099 $ 4,865 Revenue recognized from performance obligations satisfied but not billed $ 3,684 $ 2,757

Summary of Significant Accoun_3

Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands	Jan. 01, 2019	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018	Jan. 01, 2018
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 expenses the costs to obtain a contract when the amortization period is less than one year.
Deferred contract costs and other non-current assets		$ 12,507		$ 13,668
Allowance for doubtful accounts		657		392
Capitalized software cost gross		2,063	$ 1,280
Amortization of capitalized software cost		1,178	$ 889
Capitalized software cost net		10,691		9,806
Property and equipment, net		27,324		69,965
Finance lease liabilities		86,471
Operating lease liabilities		2,394
Operating lease right-of-use assets		$ 2,172		0
Accounting Standards Update 2016-02
Summary Of Significant Accounting Policies [Line Items]
Cumulative-effect adjustment on accumulated deficit	$ 7,687			7,687	$ 7,687
Net asset derecognized	21,019
Financing obligations and other noncurrent liabilities derecognized	34,909
Right-of-Use asset, net	56,422
Finance lease liabilities	63,952
Finance lease liabilities payment obligation for non lease components	3,589
Finance lease liabilities payment obligation for non lease components	3,589
Operating lease liabilities	1,169
Operating lease right-of-use assets	1,169
Capitalized Software Development Costs
Summary Of Significant Accounting Policies [Line Items]
Useful lives for property and equipment		3 years
Leasehold Improvements | Accounting Standards Update 2016-02
Summary Of Significant Accounting Policies [Line Items]
Property and equipment, net	$ 2,848
Allowance for Returns
Summary Of Significant Accounting Policies [Line Items]
Allowance for returns		$ 3,051		3,191
Customer Concentration Risk | Total Revenue
Summary Of Significant Accounting Policies [Line Items]
Concentration risk, percentage		11.00%	12.00%
Sales and Marketing Expense
Summary Of Significant Accounting Policies [Line Items]
Deferred contract costs and other non-current assets		$ 6,859		7,506
Amortization of contract costs		$ 1,047	$ 1,102
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		$ 4,967		$ 5,235
Amortization of contract costs		$ 802	$ 895
Minimum | Sales and Marketing Expense
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

Common Share Equivalents Securi

Common Share Equivalents Securities Excluded From Calculation of Weighted Average Common Share Outstanding (Detail) - shares	Mar. 31, 2018	Mar. 31, 2019
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive common share equivalents	1,988,328	6,743,512
Restricted Stock Units (RSUs)
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive common share equivalents	1,730,065	2,013,082
Stock Options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive common share equivalents	253,905	214,647
Convertible Senior Notes
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive common share equivalents	0	4,513,824
Employee Stock Purchase Plan
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive common share equivalents	4,358	1,959

Basic and Diluted Net Loss per

Basic and Diluted Net Loss per Common Share (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Numerator:
Net loss	$ (14,209)	$ (13,802)
Net loss attributable to common stockholders	$ (14,209)	$ (13,802)
Denominator:
Weighted-average common shares outstanding, basic and diluted	32,056,934	31,333,348
Net loss per common share, basic and diluted	$ (0.44)	$ (0.44)

Assets and Liabilities Measured

Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands		Mar. 31, 2019	Dec. 31, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets		$ 136,596	$ 182,748
Money market mutual funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash Equivalents	[1]	136,596	182,748
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets		136,596	182,748
Level 1 | Money market mutual funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash Equivalents	[1]	136,596	182,748
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.

Business Combination - Addition

Business Combination - Additional Information (Detail)	Feb. 25, 2019USD ($)	Mar. 31, 2019USD ($)Agreement	Mar. 31, 2018USD ($)	Dec. 31, 2018USD ($)
Business Acquisition [Line Items]
Goodwill		$ 12,304,000		$ 1,634,000
Business combination, net of cash acquired		$ 21,033,000	$ 0
Connecture, Inc
Business Acquisition [Line Items]
Purchase price	$ 21,072,000
Business combination, consideration transferred, other	24,000,000
Goodwill	$ 10,670,000
Identifiable intangible assets acquired, Weighted average amortization period	6 years 6 months
Contingent liabilities	$ 0
Business combination, net of cash acquired	21,033,000
Liability for estimated working capital adjustments	39,000
Contingent consideration placed into escrow	1,000,000
Undiscounted consideration distributable under service arrangements, Minimum	0
Undiscounted consideration distributable under service arrangements, Maximum	1,000,000
Undiscounted consideration distributable under service arrangements, Description		For any specified service contracts that, at the end of one year, are continuing to be honored by the customer, whether or not affirmative consent has been received from such customer, the related escrowed funds will be distributed to Connecture. If during the first year after the closing date of the acquisition, a customer refuses to consent to the assignment of the contract, or fails to deliver consent and stops performing under the contract or otherwise terminates the contract, the portion of the escrow related to that customer contract will then be distributable back to the Company. The Company expects all of the contingent consideration will be distributed to Connecture within one year of acquisition.
Business acquisition related costs	$ 289,000
Number of additional agreements accounted for separately at contracted prices | Agreement		2
Additional agreements accounted for separately at contracted prices, Description		Coincident with the acquisition, the Company entered into two additional agreements with Connecture each of which are accounted for separately at contracted prices as described below: Transition Services Agreement where each party provides certain transition services to the other for a 12-month period to facilitate an orderly transition the acquired business. An agreement for the Company to provide interim services to Connecture as a subcontractor under a master services agreement maintained by Connecture that includes service commitments related to both the acquired business and Connecture’s retained business while the parties work together with the customer to legally separate the contract.
Connecture, Inc | General and Administrative
Business Acquisition [Line Items]
Business acquisition related costs		$ 191,000

Summary of Fair Value of Consid

Summary of Fair Value of Consideration Paid and Amounts of Assets Acquired and Liabilities Assumed Recognized at Acquisition Date (Detail) - USD ($) $ in Thousands	Feb. 25, 2019	Mar. 31, 2019	Dec. 31, 2018
Recognized Amounts of Identifiable Assets Acquired and Liabilities Assumed
Goodwill		$ 12,304	$ 1,634
Connecture, Inc
Consideration Transferred
Cash	$ 20,033
Payable	39
Contingent consideration arrangement	1,000
Fair value of total consideration transferred	21,072
Recognized Amounts of Identifiable Assets Acquired and Liabilities Assumed
Accounts receivable, net	921
Contract, prepaid and other current assets	561
Property and equipment, net	198
Operating lease right-of-use assets	1,107
Intangible assets, net	14,600
Deferred contract costs and other non-current assets	430
Accrued compensation and benefits	(186)
Deferred revenue, current portion	(6,122)
Operating lease ROU liabilities, current portion	(84)
Operating lease ROU liabilities, net of current portion	(1,023)
Total identifiable net assets	10,402
Goodwill	10,670
Total identifiable net assets and goodwill	$ 21,072

Convertible Senior Notes - Addi

Convertible Senior Notes - Additional Information (Detail)	1 Months Ended	3 Months Ended
	Dec. 31, 2018USD ($)	Mar. 31, 2019USD ($)sharesDay$ / shares
Common Stock
Debt Instrument [Line Items]
Closing price of our common stock | $ / shares		$ 49.52
1.25% Convertible Senior Notes
Debt Instrument [Line Items]
Debt instrument, aggregate principal amount	$ 240,000,000	$ 240,000,000
Debt instrument, interest rate	1.25%
Debt instrument, maturity date	Dec. 15, 2023
Initial effective conversion price of debt instrument | $ / shares		$ 1
Consecutive trading period | Day		5
Interest rate conversion notes		7.30%
Fair value of the liability conversion notes		$ 181,500,000
Gross proceeds received from issuance of the notes		240,000,000
Difference between gross proceeds received from issuance of the notes and estimated fair value of notes		58,500,000
Transaction costs attributable to the liability component		4,808,000
Transaction costs attributable to the equity component		$ 1,550,000
1.25% Convertible Senior Notes | Call Option
Debt Instrument [Line Items]
Initial strike price | $ / shares		53.17
Cap price | $ / shares		33,024
Purchase of convertible note capped call hedge		$ 89.98
1.25% Convertible Senior Notes | Maximum
Debt Instrument [Line Items]
Conversion price percentage		1.30
Percent of Senior notes Principal amount to trigger Conversion as product of stock price and conversion rate		98.00%
1.25% Convertible Senior Notes | Common Stock
Debt Instrument [Line Items]
Debt instrument, conversion ratio		18.8076
Initial effective conversion price of debt instrument | $ / shares		$ 53.17
Number shares issuable upon conversion | shares		4,513,824

Schedule of Convertible Notes (

Schedule of Convertible Notes (Detail) - 1.25% Convertible Senior Notes - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Principal	$ 240,000	$ 240,000
Less: debt discount, net of amortization	(60,558)	(63,308)
Net carrying amount	179,442	176,692
Equity component (a)	$ 56,950	$ 56,950

Schedule of Convertible Notes_2

Schedule of Convertible Notes (Parathetical) (Detail) - 1.25% Convertible Senior Notes $ in Thousands	Mar. 31, 2019USD ($)
Debt Instrument [Line Items]
Transaction costs attributable to the equity component	$ 1,550
Additional Paid-in Capital
Debt Instrument [Line Items]
Transaction costs attributable to the equity component	$ 1,550

Summary of Recognized Interest

Summary of Recognized Interest Expense (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Debt Instrument [Line Items]
Interest expense	$ 5,814	$ 1,317
1.25% Convertible Senior Notes
Debt Instrument [Line Items]
1.25% coupon	750
Amortization of debt discount and transaction costs	2,749
Interest expense	$ 3,499

Schedule of Fair Value and Carr

Schedule of Fair Value and Carrying Value of Senior Notes (Detail) - 1.25% Convertible Senior Notes - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Fair Value	$ 276,000	$ 254,400
Carrying Value	$ 179,442	$ 176,692

Revolving Line of Credit - Addi

Revolving Line of Credit - Additional Information (Detail) - Senior Revolving Line of Credit - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Line Of Credit Facility [Line Items]
Amount outstanding under credit facility	$ 0	$ 0
Amount available to borrow under line of credit	$ 89,609,000

Schedule of Supplemental Cash F

Schedule of Supplemental Cash Flow Information Related to Operating and Finance Leases (Detail) $ in Thousands	3 Months Ended
	Mar. 31, 2019USD ($)
Cash Paid for Amounts Included in the Measurement of Lease Liabilities
Financing cash flows from finance leases	$ 1,375
Operating cash flows from finance leases	2,131
Operating cash flows from operating leases	146
ROU Assets Obtained in Exchange for New Lease Obligations
Finance lease liabilities	0
Operating lease liabilities	$ 1,107

Schedule of Operating Lease Exp

Schedule of Operating Lease Expense (Detail) $ in Thousands	3 Months Ended
	Mar. 31, 2019USD ($)
Commitments And Contingencies Disclosure [Abstract]
Fixed operating lease expense	$ 155
Short-term lease expense, net	24
Variable operating lease expense	27
Total operating lease expense	$ 206

Schedule of Operating Lease Ass

Schedule of Operating Lease Assets and Liabilities (Detail) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Assets
Operating lease right-of-use assets	$ 2,172	$ 0
Liabilities
Operating lease ROU liabilities, current portion	$ 615
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	us-gaap:LiabilitiesCurrent
Operating lease ROU liabilities, net of current portion	$ 1,779
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	us-gaap:OtherLiabilitiesNoncurrent
Total operating lease liabilities	$ 2,394
Weighted average remaining lease term (in years)	5 years 10 months 13 days
Weighted average discount rate	5.73%
Buildings
Assets
Operating lease right-of-use assets	$ 2,172

Schedule of Maturities of Opera

Schedule of Maturities of Operating Lease Liabilities (Detail) $ in Thousands	Mar. 31, 2019USD ($)
Commitments And Contingencies Disclosure [Abstract]
Remainder of 2019	$ 575
2020	445
2021	385
2022	391
2023	398
Thereafter	660
Total minimum lease payments	2,854
Less: imputed interest	(460)
Operating lease liabilities	$ 2,394

Commitments - Additional Inform

Commitments - Additional Information (Detail) $ in Thousands	3 Months Ended
	Mar. 31, 2019USD ($)BuildingLease_Agreements
Commitments And Contingencies Disclosure [Line Items]
Number of buildings leased	3
Number of leasing arrangements classified as finance leases | Lease_Agreements	3
Lessee, finance lease, description	The Company has entered into various purchase agreements to obtain property and equipment for operations that are accounted for as finance leases. These arrangements have original terms ranging from 3 to 5 years with interest rates ranging from 5.25% to 14.09%. The leases are secured by the underlying leased property and equipment.
Minimum
Commitments And Contingencies Disclosure [Line Items]
Finance lease, term of contract	3 years
Finance lease, interest rate under lease agreement	5.25%
Maximum
Commitments And Contingencies Disclosure [Line Items]
Finance lease, term of contract	5 years
Finance lease, interest rate under lease agreement	14.09%
Accounting Standards Update 2016-02
Commitments And Contingencies Disclosure [Line Items]
Build-to-suit lease arrangements derecognized to accumulated deficit | $	$ (7,687)
Capital Lease
Commitments And Contingencies Disclosure [Line Items]
Number of buildings leased	1
Build to Suit and Failed Sale Leaseback
Commitments And Contingencies Disclosure [Line Items]
Number of buildings leased	2

Schedule of Finance Lease Expen

Schedule of Finance Lease Expense (Detail) $ in Thousands	3 Months Ended
	Mar. 31, 2019USD ($)
Income And Expenses Lessee [Abstract]
Amortization of ROU assets	$ 2,035
Interest on lease liabilities	2,125
Variable finance lease expense	8
Total finance lease expense	$ 4,168

Schedule of Finance Lease Asset

Schedule of Finance Lease Assets and Liabilities (Detail) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Assets
Finance lease ROU asset	$ 82,827
Finance lease ROU accumulated amortization	(1,960)
Finance lease ROU assets, net	80,867	$ 0
Liabilities
Finance lease ROU liabilities, current portion	$ 5,384
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List]	us-gaap:LiabilitiesCurrent
Finance lease ROU liabilities, net of current portion	$ 86,471
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	us-gaap:OtherLiabilitiesNoncurrent
Total finance lease liabilities	$ 91,855
Weighted average remaining lease term (in years)	12 years 1 month 20 days
Weighted average discount rate	9.40%

Schedule of Maturities of Finan

Schedule of Maturities of Finance Lease Liabilities (Detail) $ in Thousands	Mar. 31, 2019USD ($)
Contractual Obligation Fiscal Year Maturity Schedule [Abstract]
Remainder of 2019	$ 10,422
2020	11,968
2021	11,430
2022	11,176
2023	11,506
Thereafter	103,616
Total minimum lease payments	160,118
Less: imputed interest	(68,263)
Total finance lease liabilities	$ 91,855

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Detail) - Restricted Stock Units (RSUs) $ in Thousands	3 Months Ended
	Mar. 31, 2019USD ($)shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of restricted stock units, granted | shares	53,378
Restricted stock units, aggregate grant date fair value | $	$ 2,543
Stock plan vesting period	3 years 1 month 6 days
Minimum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock plan vesting period	1 year
Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock plan vesting period	4 years

Stockholders' Deficit - Additio

Stockholders' Deficit - Additional Information (Detail) - shares	Mar. 31, 2019	Dec. 31, 2018
Stockholders Equity Note [Abstract]
Common stock, authorized shares reserved for future issuance	4,209,856
Common stock, shares authorized	50,000,000	50,000,000

Common Stock for Future Issuanc

Common Stock for Future Issuance (Detail)	Mar. 31, 2019shares
Class Of Stock [Line Items]
Outstanding stock options	214,647
Restricted stock units	2,013,082
Total common shares reserved for future issuance	4,209,856
Stock Award Plans
Class Of Stock [Line Items]
Common stock available for future issuance	1,858,712
ESPP
Class Of Stock [Line Items]
Common stock available for future issuance	123,415

Summary of Disaggregation of Re

Summary of Disaggregation of Revenue by Service Line (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Disaggregation Of Revenue [Line Items]
Revenue	$ 68,299	$ 62,363
Software Services
Disaggregation Of Revenue [Line Items]
Revenue	53,012	48,170
Professional Services
Disaggregation Of Revenue [Line Items]
Revenue	$ 15,287	$ 14,193

Summary of Contract Assets and

Summary of Contract Assets and Contract Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018	Mar. 31, 2018	Dec. 31, 2017
Revenue From Contract With Customer [Abstract]
Contract assets	$ 12,383	$ 12,798	$ 9,329	$ 11,522
Contract liabilities:
Deferred revenue	$ 46,895	$ 45,863	$ 52,900	$ 55,027

Revenue - Additional Informatio

Revenue - Additional Information (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Revenue From Contract With Customer [Abstract]
Asset impairment charges related to contract assets	$ 0	$ 0
Revenue recognized included in deferred revenue beginning balance	13,146,000
Favorable adjustments to revenue arising from performance obligations satisfied or partially satisfied in previous periods	992,000
Aggregate amount of unsatisfied or partially unsatisfied performance obligations	$ 215,000,000

Summary of Significant Changes

Summary of Significant Changes in Contract Asset Balances (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Revenue From Contract With Customer [Abstract]
Transferred to receivables from contract assets	$ 4,099	$ 4,865
Revenue recognized from performance obligations satisfied but not billed	$ 3,684	$ 2,757

Revenue - Additional Informat_2

Revenue - Additional Information (Detail1)	Mar. 31, 2019
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2019-04-01
Disaggregation Of Revenue [Line Items]
Performance obligations expected satisfaction period	3 years

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2019
Maximum
Income Taxes [Line Items]
Effective federal tax rate	1.00%

Segments and Geographic Infor_2

Segments and Geographic Information - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2019Segment
Segment Reporting [Abstract]
Number of Operating Segments	1

Related Parties - Additional In

Related Parties - Additional Information (Detail)	1 Months Ended	3 Months Ended
	Mar. 31, 2019USD ($)	Mar. 31, 2019USD ($)Lease_Agreements	Mar. 31, 2018USD ($)	Dec. 31, 2018USD ($)
Related Party Transaction [Line Items]
Lease operating expenses		$ 3,331,000	$ 3,326,000
Due to related party, current	$ 223,000	223,000		$ 833,000
Stockholders and Executives
Related Party Transaction [Line Items]
Due to related party, current	0	0		$ 0
Service from related party		119,000	13,000
Company Director
Related Party Transaction [Line Items]
Due to related party, current	35,000	35,000
Service from related party		0	$ 35,000
Aggregate amount of payments	$ 115,000	$ 115,000
Related Party Leasing Arrangements
Related Party Transaction [Line Items]
Lease termination date	Mar. 31, 2019
Related Party Leasing Arrangements | Non-Cancellable Leases
Related Party Transaction [Line Items]
Number of Lease agreements | 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	Apr. 01, 2019	Apr. 30, 2019	Mar. 31, 2019
Restricted Stock Units (RSUs)
Subsequent Event [Line Items]
Number of restricted stock units, granted			53,378
Restricted stock units, aggregate grant date fair value			$ 2,543
Vesting period of restricted stock awards			3 years 1 month 6 days
Minimum | Restricted Stock Units (RSUs)
Subsequent Event [Line Items]
Vesting period of restricted stock awards			1 year
Maximum | Restricted Stock Units (RSUs)
Subsequent Event [Line Items]
Vesting period of restricted stock awards			4 years
Subsequent Event
Subsequent Event [Line Items]
Issuance of common stock upon exercise of stock options and vesting of restricted stock units		459,857
Subsequent Event | Restricted Stock Units (RSUs)
Subsequent Event [Line Items]
Number of restricted stock units, granted	344,978
Restricted stock units, aggregate grant date fair value	$ 16,422
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	544,809
Restricted stock units, aggregate grant date fair value	$ 25,759
Restricted stock units, aggregate grant date fair value assuming target achievement	$ 18,185
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, 2019 | Subsequent Event | Restricted Stock Units (RSUs)
Subsequent Event [Line Items]
Vesting period of restricted stock awards	3 years 5 months 1 day
Vesting in 4 Years Starting April 1, 2019 | Subsequent Event | Performance Based Restricted Stock Units R S Us
Subsequent Event [Line Items]
Vesting period of restricted stock awards	3 years 7 months 24 days
Vesting in 4 Years Starting April 1, 2019 | Subsequent Event | Minimum | Performance Based Restricted Stock Units R S Us
Subsequent Event [Line Items]
Shares issued vesting percentage	0.00%
Vesting in 4 Years Starting April 1, 2019 | Subsequent Event | Maximum | Performance Based Restricted Stock Units R S Us
Subsequent Event [Line Items]
Shares issued vesting percentage	100.00%