Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Jul. 26, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | A10 Networks, Inc. | |
Entity Central Index Key | 0001580808 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Emerging Growth Company | true | |
Entity Small Business | false | |
Entity Ex Transition Period | true | |
Entity Common Stock, Shares Outstanding | 76,555,094 | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 36,818 | $ 40,621 |
Marketable securities | 82,478 | 87,754 |
Accounts receivable, net of allowances of $58 and $319, respectively | 45,251 | 53,972 |
Inventory | 22,522 | 17,930 |
Prepaid expenses and other current assets | 14,746 | 14,662 |
Total current assets | 201,815 | 214,939 |
Property and equipment, net | 7,408 | 7,262 |
Goodwill | 1,307 | 1,307 |
Intangible assets | 3,026 | 3,748 |
Other non-current assets | 13,256 | 8,620 |
Total assets | 226,812 | 235,876 |
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
Accounts payable | 7,749 | 8,202 |
Accrued liabilities | 20,209 | 25,291 |
Deferred revenue | 60,571 | 63,874 |
Total current liabilities | 88,529 | 97,367 |
Deferred revenue, non-current | 37,220 | 34,092 |
Other non-current liabilities | 2,737 | 534 |
Total liabilities | 128,486 | 131,993 |
Commitments and contingencies (Note 2 and Note 6) | ||
Stockholders' equity: | ||
Common stock, $0.00001 par value: 500,000 shares authorized; 76,082 and 74,301 shares issued and outstanding, respectively | 1 | 1 |
Additional paid-in-capital | 388,356 | 376,272 |
Accumulated other comprehensive income (loss) | 258 | (144) |
Accumulated deficit | (290,289) | (272,246) |
Total stockholders' equity | 98,326 | 103,883 |
Total liabilities and stockholders' equity | $ 226,812 | $ 235,876 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable | $ 58 | $ 319 |
Common Stock, par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 76,082,000 | 74,301,000 |
Common stock, shares outstanding (in shares) | 76,082,000 | 74,301,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenue: | ||||
Total revenue | $ 49,189 | $ 60,713 | $ 99,479 | $ 109,896 |
Cost of revenue: | ||||
Total cost of revenue | 11,271 | 13,187 | 23,521 | 25,071 |
Gross profit | 37,918 | 47,526 | 75,958 | 84,825 |
Operating expenses: | ||||
Sales and marketing | 23,626 | 25,788 | 48,109 | 52,692 |
Research and development | 14,617 | 15,572 | 30,783 | 34,369 |
General and administrative | 6,099 | 9,858 | 14,457 | 21,452 |
Total operating expenses | 44,342 | 51,218 | 93,349 | 108,513 |
Loss from operations | (6,424) | (3,692) | (17,391) | (23,688) |
Non-operating income (expense): | ||||
Interest expense | (37) | (32) | (192) | (65) |
Interest and other income (expense), net | 776 | (429) | 143 | 137 |
Total non-operating income (expense), net | 739 | (461) | (49) | 72 |
Loss before income taxes | (5,685) | (4,153) | (17,440) | (23,616) |
Provision for income taxes | 86 | 379 | 603 | 586 |
Net loss | $ (5,771) | $ (4,532) | $ (18,043) | $ (24,202) |
Net loss per share: | ||||
Basic and diluted (in dollars per share) | $ (0.08) | $ (0.06) | $ (0.24) | $ (0.33) |
Weighted-average shares used in computing net loss per share: | ||||
Basic and diluted (in shares) | 75,712 | 72,707 | 75,263 | 72,471 |
Products | ||||
Revenue: | ||||
Total revenue | $ 26,785 | $ 39,224 | $ 55,015 | $ 67,373 |
Cost of revenue: | ||||
Total cost of revenue | 6,891 | 9,080 | 14,407 | 16,189 |
Services | ||||
Revenue: | ||||
Total revenue | 22,404 | 21,489 | 44,464 | 42,523 |
Cost of revenue: | ||||
Total cost of revenue | $ 4,380 | $ 4,107 | $ 9,114 | $ 8,882 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (5,771) | $ (4,532) | $ (18,043) | $ (24,202) |
Other comprehensive income (loss), net of tax: | ||||
Unrealized gain (loss) on marketable securities | 162 | 75 | 402 | (98) |
Comprehensive loss | $ (5,609) | $ (4,457) | $ (17,641) | $ (24,300) |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit |
Beginning balance at Dec. 31, 2017 | $ 1 | $ 355,533 | $ (123) | $ (257,025) | |
Beginning balance (in shares) at Dec. 31, 2017 | 71,692 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Common stock issued under employee equity incentive plans (in shares) | 1,015 | ||||
Common stock issued under employee equity incentive plans | $ 0 | 1,269 | |||
Stock-based compensation | 10,723 | ||||
Unrealized gain (loss) on marketable securities | $ (98) | (98) | |||
Cumulative effect adjustment from adoption of ASU 2014-09 | ASU 2014-09 | 12,397 | ||||
Net loss | (24,202) | (24,202) | |||
Ending balance (in shares) at Jun. 30, 2018 | 72,707 | ||||
Ending balance at Jun. 30, 2018 | 98,475 | $ 1 | 367,525 | (221) | (268,830) |
Beginning balance at Mar. 31, 2018 | $ 1 | 364,953 | (296) | (264,298) | |
Beginning balance (in shares) at Mar. 31, 2018 | 72,707 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Common stock issued under employee equity incentive plans (in shares) | 0 | ||||
Common stock issued under employee equity incentive plans | $ 0 | 0 | |||
Stock-based compensation | 2,572 | ||||
Unrealized gain (loss) on marketable securities | 75 | 75 | |||
Cumulative effect adjustment from adoption of ASU 2014-09 | ASU 2014-09 | 0 | ||||
Net loss | (4,532) | (4,532) | |||
Ending balance (in shares) at Jun. 30, 2018 | 72,707 | ||||
Ending balance at Jun. 30, 2018 | 98,475 | $ 1 | 367,525 | (221) | (268,830) |
Beginning balance at Dec. 31, 2018 | 103,883 | $ 1 | 376,272 | (144) | (272,246) |
Beginning balance (in shares) at Dec. 31, 2018 | 74,301 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Common stock issued under employee equity incentive plans (in shares) | 1,781 | ||||
Common stock issued under employee equity incentive plans | $ 0 | 3,260 | |||
Stock-based compensation | 8,824 | ||||
Unrealized gain (loss) on marketable securities | 402 | 402 | |||
Cumulative effect adjustment from adoption of ASU 2014-09 | ASU 2014-09 | 0 | ||||
Net loss | (18,043) | (18,043) | |||
Ending balance (in shares) at Jun. 30, 2019 | 76,082 | ||||
Ending balance at Jun. 30, 2019 | 98,326 | $ 1 | 388,356 | 258 | (290,289) |
Beginning balance at Mar. 31, 2019 | $ 1 | 381,195 | 96 | (284,518) | |
Beginning balance (in shares) at Mar. 31, 2019 | 75,183 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Common stock issued under employee equity incentive plans (in shares) | 899 | ||||
Common stock issued under employee equity incentive plans | $ 0 | 2,233 | |||
Stock-based compensation | 4,928 | ||||
Unrealized gain (loss) on marketable securities | 162 | 162 | |||
Cumulative effect adjustment from adoption of ASU 2014-09 | ASU 2014-09 | 0 | ||||
Net loss | (5,771) | (5,771) | |||
Ending balance (in shares) at Jun. 30, 2019 | 76,082 | ||||
Ending balance at Jun. 30, 2019 | $ 98,326 | $ 1 | $ 388,356 | $ 258 | $ (290,289) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities: | ||
Net loss | $ (18,043) | $ (24,202) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 4,982 | 4,103 |
Stock-based compensation | 8,824 | 10,723 |
Other non-cash items | (310) | (234) |
Changes in operating assets and liabilities: | ||
Accounts receivable | 8,802 | (1,941) |
Inventory | (5,045) | 1,993 |
Prepaid expenses and other assets | 63 | (705) |
Accounts payable | (434) | (3,035) |
Accrued and other liabilities | (9,372) | 3,163 |
Deferred revenue | (175) | 7,447 |
Other | 123 | 118 |
Net cash used in operating activities | (10,585) | (2,570) |
Cash flows from investing activities: | ||
Proceeds from sales of marketable securities | 16,134 | 13,877 |
Proceeds from maturities of marketable securities | 19,250 | 30,655 |
Purchases of marketable securities | (29,557) | (46,890) |
Purchase of investment | 0 | (1,000) |
Purchases of property and equipment | (2,303) | (1,289) |
Net cash provided by (used in) investing activities | 3,524 | (4,647) |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock under employee equity incentive plans | 3,260 | 1,269 |
Other | (52) | |
Net cash provided by financing activities | 3,258 | 1,217 |
Net decrease in cash and cash equivalents | (3,803) | (6,000) |
Cash and cash equivalents - beginning of period | 40,621 | 46,567 |
Cash and cash equivalents - end of period | 36,818 | 40,567 |
Non-cash investing and financing activities: | ||
Inventory transfers to property and equipment | 453 | 619 |
Purchases of property and equipment included in accounts payable | $ 19 | $ 38 |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Significant Accounting Policies | Description of Business and Summary of Significant Accounting Policies Description of Business A10 Networks, Inc. (together with our subsidiaries, the “Company”, “we”, “our” or “us”) was incorporated in California in 2004 and reincorporated in Delaware in March 2014. We are headquartered in San Jose, California and have wholly-owned subsidiaries throughout the world including Asia and Europe. We are a leading provider of secure application solutions and services that enable a new generation of intelligently connected companies with the ability to continuously improve cyber protection and digital responsiveness across dynamic Information Technology (“IT”) and network infrastructures. Our product portfolio consists of six secure application solutions: Thunder Application Delivery Controller (“ADC”), Lightning Application Delivery Controller (“Lightning ADC”), Thunder Carrier Grade Networking (“CGN”), Thunder Threat Protection System (“TPS”), Thunder SSL Insight (“SSLi”) and Thunder Convergent Firewall (“CFW”); and two intelligent management and automation tools: Harmony Controller and aGalaxy TPS. Our solutions are available in a variety of form factors, such as optimized hardware appliances, bare metal software, containerized software, virtual appliances and cloud-native software. Basis of Presentation The accompanying unaudited condensed consolidated financial statements include those of A10 Networks, Inc. and its subsidiaries after elimination of all intercompany accounts and transactions. We have prepared the accompanying unaudited condensed consolidated financial statements pursuant to the rules and regulations of the United States Securities and Exchange Commission (the “SEC”). As permitted under these rules and regulations, we have condensed or omitted certain financial information and footnote disclosures we normally include in our annual consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The unaudited condensed consolidated balance sheet as of December 31, 2018 has been derived from our audited financial statements, which are included in our 2018 Annual Report on Form 10-K, as amended by Form 10-K/A, for the year ended December 31, 2018 on file with the SEC (the “2018 Annual Report”). These financial statements have been prepared on the same basis as our annual financial statements and, in management’s opinion, reflect all adjustments consisting only of normal recurring adjustments that are necessary for a fair presentation of our financial information. Our interim period operating results do not necessarily indicate the results that may be expected for any other interim period or for the full fiscal year. These financial statements and accompanying notes should be read in conjunction with the financial statements and accompanying notes thereto in the 2018 Annual Report. Use of Estimates The preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Those estimates and assumptions affect revenue recognition and deferred revenue, the allowance for doubtful accounts, the sales return reserve, the valuation of inventory, the fair value of marketable securities, the incremental borrowing rate used in determining operating lease liabilities, contingencies and litigation, accrued liabilities, deferred commissions and the determination of fair value of stock-based compensation. These estimates are based on information available as of the date of the condensed consolidated financial statements; therefore, actual results could differ from management’s estimates. Significant Accounting Policies The Company’s significant accounting policies are disclosed in the 2018 Annual Report. Other than the accounting policies related to the adoption of Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) discussed below, there have been no material changes to the Company’s significant accounting policies during the six months ended June 30, 2019 . Leases In February 2016, the Financial Accounting Standards Board ("FASB") issued ASU 2016-02, Leases (Topic 842) in order to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet for those leases classified as operating leases under prior generally accepted accounting principles. ASU 2016-02 requires that a lessee should recognize a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term on the balance sheet. The adoption of ASU 2016-02 on January 1, 2019 resulted in the recognition of right-of-use assets of approximately $6.0 million and lease liabilities for operating leases of approximately $6.8 million on the Company’s condensed consolidated balance sheets, with no material impact to its condensed consolidated statements of operations. See Note 2 for further information regarding the impact of the adoption of ASU 2016-02 on the Company's financial statements. The Company determines if an arrangement is a lease at inception. For leases where the Company is the lessee, right-of-use (“ROU”) assets represent the Company’s right to use the underlying asset for the term of the lease and are included within other non-current assets on the condensed consolidated balance sheets, and the lease liabilities represent an obligation to make lease payments arising from the lease and are recorded within accrued liabilities and other non-current liabilities on the condensed consolidated balance sheets. Lease liabilities are recognized at the lease commencement date based on the present value of the future lease payments over the lease term. The Company uses its incremental borrowing rate based on the information available at the commencement date of the underlying lease arrangement to determine the present value of lease payments. The ROU asset is determined based on the lease liability initially established and reduced for any prepaid lease payments and any lease incentives received. The lease term to calculate the ROU asset and related lease liability includes options to extend or terminate the lease when it is reasonably certain that the Company will exercise the option. The Company’s lease agreements generally do not contain any material variable lease payments, residual value guarantees or restrictive covenants. The Company elected the package of practical expedients permitted under the transition guidance, which allowed for the carry-forward of the Company’s historical lease classification and assessment on whether a contract is or contains a lease. The Company elected to not apply the new standard’s recognition requirements to leases with an initial term of 12 months or less and instead elected to recognize lease payments in the condensed consolidated statements of operations on a straight-line basis over the lease term. The Company did not elect to apply the hindsight practical expedient when determining lease term and assessing impairment of right-of-use assets. Lease expense for operating leases is recognized on a straight-line basis over the lease term as an operating expense while expense for financing leases is recognized as depreciation expense and interest expense using the accelerated interest method of recognition. The Company accounts for lease components and non-lease components as a single lease component. Concentration of Credit Risk and Significant Customers Financial instruments that potentially subject us to concentrations of credit risk consist of cash, cash equivalents, marketable securities and accounts receivable. Our cash, cash equivalents and marketable securities are held and invested in high-credit quality financial instruments by recognized financial institutions and are subject to minimum credit risk. Our accounts receivable are unsecured and represent amounts due to us based on contractual obligations of our customers. We mitigate credit risk in respect to accounts receivable by performing periodic credit evaluations based on a number of factors, including past transaction experience, evaluation of credit history and review of the invoicing terms of the contract. We generally do not require our customers to provide collateral to support accounts receivable. Significant customers, including distribution channel partners and direct customers, are those which represent 10% or more of our total revenue for each period presented or our gross accounts receivable balance as of each respective balance sheet date. Revenues from our significant customers as a percentage of our total revenue are as follows: Three Months Ended Six Months Ended Customers 2019 2018 2019 2018 Customer A (a distribution channel partner) 14% * 14% * Customer B (a distribution channel partner) * 20% * 14% Customer C (a distribution channel partner) 12% * * * * represents less than 10% of total revenue As of June 30, 2019 , three customers accounted for 16% , 14% and 10% , respectively, of our total gross accounts receivable. As of December 31, 2018 , two customers accounted for 16% and 12% , respectively, of our total gross accounts receivable. Recent Accounting Pronouncements Not Yet Effective There have been no new accounting pronouncements issued by the FASB during the six months ended June 30, 2019 , as compared to the recent accounting pronouncements described in Note 1 of the Company’s 2018 Annual Report, that the Company believes are of significance or potential significance to the Company. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Leases | Leases We lease various operating spaces in the United States, Asia and Europe under non-cancellable operating lease arrangements that expire on various dates through July 2027. These arrangements require us to pay certain operating expenses, such as taxes, repairs and insurance, and contain renewal and escalation clauses. The table below presents the Company’s right-of-use assets and lease liabilities as of June 30, 2019 (in thousands): June 30, 2019 Operating leases Right-of-use assets: Other non-current assets $ 4,812 Total right-of-use assets $ 4,812 Lease liabilities: Accrued liabilities $ 3,081 Other non-current liabilities 2,350 Total operating lease liabilities $ 5,431 The aggregate future lease payments for operating leases as of June 30, 2019 were as follows (in thousands): Remainder of 2019 $ 1,917 2020 2,051 2021 1,293 2022 337 Total lease payments 5,598 Less: imputed interest (167 ) Present value of lease liabilities $ 5,431 The components of lease costs were as follows (in thousands): Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 Operating lease costs $ 852 $ 1,745 Short-term lease costs 138 275 Total lease costs $ 990 $ 2,020 Average lease terms and discount rates for the Company’s operating leases were as follows (in thousands): June 30, 2019 Weighted-average remaining term (years) 2.07 Weighted-average discount rate 3.31 % Supplemental cash flow information for the Company’s operating leases (in thousands): Six Months Ended June 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,982 Right-of-use assets obtained in exchange for new lease liabilities $ 467 New Corporate Office Lease On May 2, 2019 (the “Effective Date”), the Company entered into a sublease agreement (the “Sublease”) with Marvell Semiconductor, Inc. (“Sublandlord”) for corporate office space located at 2300 Orchard Parkway, San Jose, California, 95131 (the “Premises”). The Company intends to use the premises as a corporate office space and for research and development purposes. The term of the Sublease is seven years and eight months from the earlier of (i) December 1, 2019 or (ii) the date the Company commences business operations at the Premises. The Sublease provides for monthly base rent of approximately $262,000 per month for the first year with annual increases thereafter. The total base rent through the end of the term of the Sublease is approximately $26.4 million . In addition to base rent, the Company will also be responsible for operating and other expenses. The Company anticipates gaining access and the right of use of the lease facility in the fourth quarter of 2019 and will account for the sublease arrangement under ASC 842. Lease Commitments as of December 31, 2018 As previously disclosed in the Company’s 2018 Annual Report and under the previous lease accounting standard, ASC 840, Leases , the aggregate future minimum lease payments for operating leases as of December 31, 2018 were as follows (in thousands): 2019 $ 3,907 2020 1,921 2021 1,194 2022 313 Total $ 7,335 |
Marketable Securities and Fair
Marketable Securities and Fair Value Measurements | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Marketable Securities and Fair Value Measurements | Marketable Securities and Fair Value Measurements Marketable Securities Marketable securities, classified as available-for-sale, consisted of the following (in thousands): June 30, 2019 December 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Certificates of deposit $ 10,998 $ 27 $ — $ 11,025 $ 11,000 $ 7 $ (3 ) $ 11,004 Corporate securities 50,033 189 (9 ) 50,213 46,442 11 (116 ) 46,337 U.S. Treasury and agency securities 1,749 — (2 ) 1,747 1,748 — (12 ) 1,736 Commercial paper 4,955 8 — 4,963 12,327 1 (5 ) 12,323 Asset-backed securities 14,485 46 (1 ) 14,530 16,381 5 (32 ) 16,354 Total $ 82,220 $ 270 $ (12 ) $ 82,478 $ 87,898 $ 24 $ (168 ) $ 87,754 During the six months ended June 30, 2019 and 2018 , we did not reclassify any amount to earnings from accumulated other comprehensive loss related to unrealized gains or losses. The following table summarizes the cost and estimated fair value of marketable securities based on stated effective maturities as of June 30, 2019 (in thousands): Amortized Cost Fair Value Less than 1 year $ 42,570 $ 42,632 Mature in 1 - 3 years 39,650 39,846 Total $ 82,220 $ 82,478 All available-for-sale securities have been classified as current because they are available for use in current operations. Marketable securities in an unrealized loss position consisted of the following (in thousands): Less Than 12 Months 12 Months or More Total June 30, 2019 Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Corporate securities $ 1,499 $ (1 ) $ 5,642 $ (8 ) $ 7,141 $ (9 ) U.S. Treasury and agency securities — — 1,747 (2 ) 1,747 (2 ) Asset-backed securities — — 1,503 (1 ) 1,503 (1 ) Total $ 1,499 $ (1 ) $ 8,892 $ (11 ) $ 10,391 $ (12 ) Less Than 12 Months 12 Months or More Total December 31, 2018 Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Certificates of deposit $ 2,997 $ (3 ) $ — $ — $ 2,997 $ (3 ) Corporate securities 29,435 (68 ) 7,601 (48 ) 37,036 (116 ) U.S. Treasury and agency securities 992 (7 ) 744 (5 ) 1,736 (12 ) Commercial paper 9,888 (5 ) — — 9,888 (5 ) Asset-backed securities 8,499 (15 ) 4,758 (17 ) 13,257 (32 ) Total $ 51,811 $ (98 ) $ 13,103 $ (70 ) $ 64,914 $ (168 ) Based on evaluation of securities that have been in a continuous loss position, we did not recognize any other-than-temporary impairment charges during the six months ended June 30, 2019 and 2018 . Fair Value Measurements The following is a summary of our cash, cash equivalents and marketable securities measured at fair value on a recurring basis (in thousands): June 30, 2019 December 31, 2018 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash $ 28,565 $ — $ — $ 28,565 $ 39,113 $ — $ — $ 39,113 Cash equivalents 8,253 — — 8,253 1,508 — — 1,508 Certificates of deposit — 11,025 — 11,025 — 11,004 — 11,004 Corporate securities — 50,213 — 50,213 — 46,337 — 46,337 U.S. Treasury and agency securities — 1,747 — 1,747 — 1,736 — 1,736 Commercial paper — 4,963 — 4,963 — 12,323 — 12,323 Asset-backed securities — 14,530 — 14,530 — 16,354 — 16,354 Total $ 36,818 $ 82,478 $ — $ 119,296 $ 40,621 $ 87,754 $ — $ 128,375 There were no transfers between Level 1 and Level 2 fair value measurement categories during the six months ended June 30, 2019 and 2018 . |
Condensed Consolidated Financia
Condensed Consolidated Financial Statement Details | 6 Months Ended |
Jun. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Condensed Consolidated Financial Statement Details | Condensed Consolidated Financial Statement Details Inventory Inventory consisted of the following (in thousands): June 30, December 31, Raw materials $ 8,465 $ 7,979 Finished goods 14,057 9,951 Total inventory $ 22,522 $ 17,930 Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following (in thousands): June 30, 2019 December 31, 2018 Prepaid expenses $ 7,953 $ 6,679 Deferred contract acquisition costs 5,272 6,564 Other 1,521 1,419 Total prepaid and other current assets $ 14,746 $ 14,662 Property and Equipment, Net Property and equipment, net, consisted of the following (in thousands): Useful Life June 30, December 31, (in years) Equipment 1 - 3 $ 49,636 $ 49,804 Software 1 - 3 4,352 4,088 Furniture and fixtures 1 - 3 967 967 Leasehold improvements 2 - 8 3,834 3,832 Construction in progress 787 160 Property and equipment, gross 59,576 58,851 Less: accumulated depreciation (52,168 ) (51,589 ) Property and equipment, net $ 7,408 $ 7,262 Depreciation expense on property and equipment was $1.4 million and $1.7 million for the three months ended June 30, 2019 and 2018 , respectively, and $2.6 million and $3.4 million for the six months ended June 30, 2019 and 2018 , respectively. Intangible Assets Purchased intangible assets, net, consisted of the following (in thousands): June 30, 2019 December 31, 2018 Cost Accumulated Amortization Net Cost Accumulated Amortization Net Developed technology $ 5,050 $ (3,030 ) $ 2,020 $ 5,050 $ (2,525 ) $ 2,525 Patents 2,936 (1,930 ) $ 1,006 2,936 (1,713 ) 1,223 Total intangible assets $ 7,986 $ (4,960 ) $ 3,026 $ 7,986 $ (4,238 ) $ 3,748 Amortization expense related to purchased intangible assets was $0.4 million and $0.3 million for the three months ended June 30, 2019 and 2018 , respectively, and $0.7 million for each of the six months ended June 30, 2019 and 2018 . Purchased intangible assets will be amortized over a remaining weighted average useful life of 2.1 years . Future amortization expense for purchased intangible assets as of June 30, 2019 is as follows (in thousands): Fiscal Year Remainder of 2019 $ 721 2020 1,442 2021 863 Total $ 3,026 Accrued Liabilities Accrued liabilities consisted of the following (in thousands): June 30, December 31, Accrued compensation and benefits $ 8,872 $ 15,283 Accrued tax liabilities 3,712 4,455 Lease liability 3,081 — Other 4,544 5,553 Total accrued liabilities $ 20,209 $ 25,291 Deferred Revenue Deferred revenue consisted of the following (in thousands): June 30, December 31, Deferred revenue: Products $ 5,799 $ 5,216 Services 91,992 92,750 Total deferred revenue 97,791 97,966 Less: current portion (60,571 ) (63,874 ) Non-current portion $ 37,220 $ 34,092 |
Credit Facility
Credit Facility | 6 Months Ended |
Jun. 30, 2019 | |
Line of Credit Facility [Abstract] | |
Credit Facility | Credit Facility In November 2016, we entered into a loan and security agreement (the “2016 Credit Facility”) with Silicon Valley Bank (“SVB”) as the lender. The 2016 Credit Facility provides a three -year, $25.0 million revolving credit facility, which includes a maximum of $25.0 million letter of credit subfacility. When the balance of our cash, cash equivalents and marketable securities minus outstanding revolving loans and letters of credit equals or exceeds $50.0 million , loans may be advanced under the 2016 Credit Facility up to the full $25.0 million . When our net cash falls below $50.0 million , loans may be advanced under the 2016 Credit Facility based on a borrowing base equal to a specified percentage of the value of our eligible accounts receivable. The loans bear interest, at our option, at (i) the prime rate reported in The Wall Street Journal, minus 0.50% or (ii) a LIBOR rate determined in accordance with the 2016 Credit Facility, plus 2.50% . We are required to pay customary closing fees, commitment fees and letter of credit fees for a facility of this size and type. In September 2018, we entered into an amendment with SVB to reduce the unused revolving credit facility fee on the 2016 Credit Facility from 0.4% to 0.3% . Our obligations under the 2016 Credit Facility are secured by substantially all of our assets, excluding our intellectual property. The 2016 Credit Facility contains customary affirmative and negative covenants. In addition, the 2016 Credit Facility requires us to maintain compliance with an adjusted quick ratio of not less than 1.50 :1.00, as determined in accordance with the 2016 Credit Facility. As of June 30, 2019 , we had no outstanding balance under the 2016 Credit Facility and were in compliance with all facility covenants. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Proceedings Litigation From time to time, we may be party or subject to various legal proceedings and claims, either asserted or unasserted, which arise in the ordinary course of business. Some of these proceedings involve claims that are subject to substantial uncertainties and unascertainable damages. We make a provision for a liability when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Unless otherwise specifically disclosed in this note, we have determined that no provision for liability nor disclosure is required related to any claim against us because: (a) there is not a reasonable possibility that a loss exceeding amounts already recognized (if any) may be incurred with respect to such claim; (b) a reasonably possible loss or range of loss cannot be estimated; or (c) such estimate is immaterial. On March 22, 2018, the Company, our Chief Executive Officer, our Chief Financial Officer, and certain former officers, were named as defendants in a putative class action lawsuit filed in the United States District Court for the Northern District of California, captioned Shah v. A10 Networks, Inc. et al., 3:18-cv-01772-VC (the “Securities Action”). On August 31, 2018, the court appointed a lead plaintiff. On October 5, 2018, the lead plaintiff filed an amended complaint. The amended complaint names the same defendants as the initial complaint, in addition to one of the Company’s former executive vice presidents. The amended complaint asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. The amended complaint named the same defendants as the initial complaint, in addition to one of the Company’s former executive vice presidents. The Company and individual defendants filed motions to dismiss the amended complaint. On February 21, 2019, the court granted the motions to dismiss with leave to amend within 21 days. The lead plaintiff did not file an amended complaint by the Court-ordered deadline. Instead, on March 21, 2019, the lead plaintiff filed a notice of appeal in the United States Court of Appeals for the Ninth Circuit. On April 5, 2019, the clerk of court suspended briefing on the appeal and ordered that, by April 26, 2019, appellants shall either move for voluntary dismissal or show cause why the appeal should not be dismissed for lack of jurisdiction. On April 25, 2019, appellants moved to voluntarily dismiss the appeal without prejudice, and that motion was granted on May 1, 2019. The district court entered final judgment dismissing lead plaintiff’s claims on May 8, 2019. The lead plaintiff subsequently filed a notice of appeal on June 6, 2019. On May 30, 2018, certain of our current and former directors and officers were named as defendants in a putative shareholder derivative lawsuit filed in the United States District Court for the Northern District of California, captioned Moulton v. Chen et al., 3:18-cv-03223-VC (the “Derivative Action”). We were also named as a nominal defendant. The complaint in the Derivative Action alleges breaches of fiduciary duties and other related claims in connection with purported misrepresentations related to internal controls and revenues and failures to ensure that financial statements were made in accordance with generally accepted accounting principles. Plaintiff seeks unspecified damages allegedly sustained by the Company, restitution, and other relief. On July 11, 2018 the Derivative Action was stayed until a motion to dismiss in the Securities Action is granted with prejudice or denied in whole or in part. Following dismissal of the Securities Action, Plaintiff voluntarily dismissed his claims on June 7, 2019. Investigations The U.S. Securities and Exchange Commission (“SEC”) is conducting a private investigation into possible violations of Section 17(a) of the Securities Act of 1933 and Sections 10(b), 13(a), and 13(b) of the Securities Exchange Act of 1934 (“Exchange Act”) and Rules 10b-5, 12b-20, 13a-1, 13a-11, 13a-13, 13a-14, 13a-15, and 13b2-1 thereunder. The Company is cooperating with the SEC regarding this investigation. The Company is unable to predict the duration, scope or outcome of the investigation, but an adverse outcome is reasonably possible. In such an event, the Company could be required to pay fines and sanctions and/or implement additional remedial measures. However, the Company is not able to estimate the likelihood or a reasonable range of possible loss. Lease Commitments We lease various operating spaces in the United States, Asia and Europe under non-cancelable operating lease arrangements that expire on various dates through July 2027. These arrangements require us to pay certain operating expenses, such as taxes, repairs and insurance, and contain renewal and escalation clauses. Guarantees and Indemnifications In the normal course of business, we provide indemnifications to customers against claims of intellectual property infringement made by third parties arising from the use of our products. Other guarantees or indemnification arrangements include guarantees of product and service performance, and standby letters of credit for lease facilities and corporate credit cards. We have not recorded a liability related to these indemnification and guarantee provisions and our guarantees and indemnification arrangements have not had any significant impact on our consolidated financial statements to date. |
Equity Incentive Plans and Stoc
Equity Incentive Plans and Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Equity Incentive Plans and Stock-Based Compensation | Equity Incentive Plans and Stock-Based Compensation Equity Incentive Plans 2014 Equity Incentive Plan The 2014 Equity Incentive Plan (the “2014 Plan”) provides for the granting of stock options, restricted stock awards, restricted stock units (“RSUs”), performance-based RSUs (“PSUs”), stock appreciation rights, performance units and performance shares to our employees, consultants and members of our board of directors. In June 2015, our board of directors adopted and our stockholders approved an amendment and restatement of the 2014 Plan, which increased the number of shares available for issuance under the 2014 Plan by the number of shares granted under the 2008 Stock Plan (the “2008 Plan”) that were or may in the future be canceled or otherwise forfeited or repurchased after March 20, 2014. The shares authorized for the 2014 Plan increase annually by the least of (i) 8,000,000 shares, (ii) 5% of the outstanding shares of common stock on the last day of our immediately preceding fiscal year, or (iii) such other amount as determined by our Board of Directors. Accordingly, effective January 1, 2019 , the number of shares in the 2014 Plan increased by 3,715,060 shares, representing 5% of the prior year end’s common stock outstanding. As of June 30, 2019 , we had 11,983,811 shares available for future grant under the 2014 Plan. To date, we have granted stock options, RSUs and PSUs under the 2014 Plan. Stock options expire no more than 10 years from the grant date and generally vest over four years . In the case of an incentive stock option granted to an employee who, at the time of grant, owns stock representing more than 10% of the total combined voting power of all classes of stock, the per share exercise price will be no less than 110% of the fair market value per share on the date of grant, and the incentive stock option will expire no later than five years from the date of grant. For incentive stock options granted to any other employees and nonstatutory stock options granted to employees, consultants, or members of our board of directors, the per share exercise price will be no less than 100% of the fair market value per share on the date of grant. RSUs and PSUs generally vest over one to four years . 2014 Employee Stock Purchase Plan The 2014 Employee Stock Purchase Plan (the “2014 Purchase Plan”) was suspended effective March 16, 2018 due to the delay of the Form 10-K filing for the year ended December 31, 2017. In October 2018, the Board approved amending the 2014 Purchase Plan (the “Amended 2014 Purchase Plan”) in order to, among other things, reduce the maximum contribution participants can make under the plan from 15% to 10% of eligible compensation. The Amended 2014 Purchase Plan also reflects revised offering periods, which were changed from 24 months to six months in duration and that begin on or about December 1 and June 1 each year, starting in December 2018. The Amended 2014 Purchase Plan permits eligible employees to purchase shares of our common stock through payroll deductions with up to 10% of their gross eligible earnings subject to certain Internal Revenue Code limitations. The purchase price of the shares is 85% of the lower of the fair market value of our common stock on the first day of a six-month offering period or the relevant purchase date. In addition, no participant may purchase more than 1,500 shares of common stock in each purchase period. Employees purchased 322,903 shares at an average price of $5.18 during the six months ended June 30, 2019 . The intrinsic value of shares purchased during the six months ended June 30, 2019 was $0.3 million. The intrinsic value is calculated as the difference between the market value on the date of purchase and the purchase price of the shares. As of June 30, 2019 , the Company had 2,742,279 shares available for future issuance under the Amended 2014 Purchase Plan. Stock-Based Compensation A summary of our stock-based compensation expense is as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Stock-based compensation by type of award: Stock options $ 157 $ 302 $ 341 $ 631 Stock awards 4,522 2,270 7,996 4,935 Employee stock purchase rights (1) 249 — 487 5,157 $ 4,928 $ 2,572 $ 8,824 $ 10,723 Stock-based compensation by category of expense: Cost of revenue $ 458 $ 197 $ 782 $ 1,090 Sales and marketing 1,860 701 3,181 3,466 Research and development 1,593 1,003 2,924 4,385 General and administrative 1,017 671 1,937 1,782 $ 4,928 $ 2,572 $ 8,824 $ 10,723 (1) Amount for the six months ended June 30, 2018 includes $4.1 million of accelerated stock-based compensation expense. In March 2018, as a result of a suspension of the 2014 Purchase Plan due to our non-timely filing status, all unrecognized stock-based compensation expense related to the 2014 Purchase Plan was accelerated and recognized within the condensed consolidated statement of operations. As of June 30, 2019 , the Company had $30.8 million of unrecognized stock-based compensation expense related to unvested stock-based awards which will be recognized over a weighted-average period of 2.5 years. Stock Options The following tables summarize our stock option activities and related information: Number of Shares (thousands) Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (years) Aggregate Intrinsic Value (thousands) Outstanding as of December 31, 2018 4,674 $ 5.19 Granted — $ — Exercised (496 ) $ 3.20 Canceled (93 ) $ 9.03 Outstanding as of June 30, 2019 4,085 $ 5.34 4.86 $ 7,802 Vested and exercisable as of June 30, 2019 3,688 $ 5.22 4.47 $ 7,517 As of June 30, 2019 , the aggregate intrinsic value represents the excess of the closing price of our common stock of $6.82 over the exercise price of the outstanding in-the-money options. The intrinsic value of options exercised was $1.8 million and $1.1 million during the six months ended June 30, 2019 and 2018 , respectively. Stock Awards We have granted RSUs to our employees, consultants and members of our board of directors, and PSUs and market performance-based restricted stock units (“MSUs”) to certain executives. In February 2016, we granted 547,000 PSUs with certain financial and operational targets. Actual performance, as measured at the time and prior to the restatement of the 2016 financial statements, resulted in participants achieving 80% of target. Given the PSUs did not contain explicit or implicit claw back rights, there was no change to stock-based compensation expense for the impact of the previously disclosed restatement of the 2016 consolidated financial statements. As of June 30, 2019 , 253,203 shares had vested, 200,297 shares were forfeited, and the remaining shares 93,500 will vest (as to 80% ) in February 2020 subject to continued service vesting requirements. In October 2018, we granted 464,888 PSUs with certain financial targets. These PSUs will become eligible to vest at 75% on the second month following achievement of certain performance targets by December 31, 2020, with the remaining 25% of the PSUs to vest on the first anniversary of the initial vesting date, subject to service condition vesting requirements. None of these PSUs were vested as of June 30, 2019 . In April 2019, we granted 346,453 PSUs with certain financial targets. These PSUs will become eligible to vest at 75% on the second month following achievement of certain performance targets by December 31, 2021, with the remaining 25% of the PSUs to vest on the first anniversary of the initial vesting date, subject to service condition vesting requirements. None of these PSUs were vested as of June 30, 2019 . The following table summarizes our stock award activities and related information: Number of Shares (thousands) Weighted-Average Grant Date Fair Value Weighted-Average Remaining Vesting Term (years) Nonvested as of December 31, 2018 5,974 $ 6.51 Granted 1,245 $ 6.78 Released (962 ) $ 6.73 Canceled (580 ) $ 6.41 Nonvested as of June 30, 2019 5,677 $ 6.54 1.61 The aggregate fair value of stock awards released as of the respective vesting dates was $6.4 million and $4.3 million for the six months ended June 30, 2019 and 2018 , respectively. |
Net Loss Per Share
Net Loss Per Share | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | Net Loss Per Share Basic net loss per share is computed using the weighted average number of common shares outstanding for the period. Diluted net loss per share is computed using the weighted average number of common shares outstanding for the period plus potential dilutive common shares, including stock options, RSUs and employee stock purchase rights, unless the potential common shares are anti-dilutive. Since we had net losses in the three and six months ended June 30, 2019 and 2018 , none of the potential dilutive common shares were included in the computation of diluted shares for these periods, as inclusion of such shares would have been anti-dilutive. The following table presents common shares related to potentially dilutive shares excluded from the calculation of diluted net loss per share as their effect would have been anti-dilutive (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Stock options, restricted stock units and employee stock purchase rights 9,600 9,209 9,797 9,826 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes We recorded income tax expense of $0.1 million and $0.4 million for the three months ended June 30, 2019 and 2018 , respectively, and $0.6 million for each of the six months ended June 30, 2019 and 2018 , which primarily consisted of foreign taxes. Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the carrying amounts of existing assets and liabilities in the financial statements and their respective tax bases using tax rates expected to be in effect during the years in which the basis differences reverse. We believe it is more likely than not that our federal and state net deferred tax assets will not be fully realized. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of our deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. A valuation allowance is recorded for loss carryforwards and other deferred tax assets where it is more likely than not that such deferred tax assets will not be realized. Accordingly, we continue to maintain a valuation allowance against all of our U.S. and certain foreign net deferred tax assets as of June 30, 2019 . We will continue to maintain a full valuation allowance against our net federal, state and certain foreign deferred tax assets until there is sufficient evidence to support recoverability of our deferred tax assets. We had $4.0 million of unrecognized tax benefits as of June 30, 2019 and December 31, 2018. We do not anticipate a material change to our unrecognized tax benefits over the next twelve months. Unrecognized tax benefits may change during the next twelve months for items that arise in the ordinary course of business. Accrued interest and penalties related to unrecognized tax benefits are recognized as part of our income tax provision in our condensed consolidated statements of operations. We are subject to taxation in the United States, various states, and several foreign jurisdictions. Because we have net operating loss and credit carryforwards, there are open statutes of limitations in which federal, state and foreign taxing authorities may examine our tax returns for all years from 2005 through the current period. We are not currently under examination by any taxing authorities. |
Geographic Information
Geographic Information | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Geographic Information | Geographic Information The following table depicts the disaggregation of revenue by geographic region based on the ship to location of our customers and is consistent with how we evaluate our financial performance (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 United States $ 15,278 $ 30,443 $ 33,378 $ 51,121 Japan 14,894 11,868 28,046 24,948 Asia Pacific, excluding Japan 9,213 10,667 17,989 18,105 EMEA 6,570 5,420 13,799 11,919 Other 3,234 2,315 6,267 3,803 Total revenue $ 49,189 $ 60,713 $ 99,479 $ 109,896 The following table is a summary of our long-lived assets which include property and equipment, net and operating lease ROU assets based on the physical location of the assets (in thousands): June 30, December 31, United States $ 6,843 $ 5,525 Japan 3,195 1,108 Other 2,182 629 Total $ 12,220 $ 7,262 |
Revenue Revenue
Revenue Revenue | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), as subsequently amended, which supersedes the revenue recognition requirements in Accounting Standards Codification (“ASC”) Topic 605, Revenue Recognition. This ASU requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This ASU also includes Subtopic 340-40, Other Assets and Deferred Costs - Contracts with Customers, which requires the capitalization of incremental customer acquisition costs and amortization of these costs over the contract period or estimated customer life which resulted in the recognition of a deferred commission asset on our consolidated balance sheet. The Company adopted ASU 2014-09 and its related amendments (collectively “ASC 606”) on January 1, 2018 using the modified retrospective method. The adoption of the new standard resulted in changes to the Company’s accounting policies for revenue recognition, commissions and deferred commissions. As a result of the adoption, the Company recorded a reduction to opening accumulated deficit of $12.4 million as of January 1, 2018 due to the cumulative impact of adopting the new standard as follows: • A decrease in total deferred revenue of $4.0 million primarily due to the removal of the current limitation on contingent revenue that would have accelerated revenue recognition for certain of our historical revenue contracts; and • Recognition of a deferred commissions asset of $8.4 million due to the requirement under the new standard to recognize incremental customer acquisition costs in our condensed consolidated statement of operations as the related performance obligations are met as compared to the previous recognition to expense as incurred. For additional information and disclosure of the impact of adopting the new standard, see Note 2 to the Company’s Consolidated Financial Statements included in Part II, Item 8 of the 2018 Annual Report. Contract Balances The following table reflects contract balances with customers (in thousands): June 30, 2019 December 31, 2018 Accounts receivable, net $ 45,251 $ 53,972 Deferred revenue, current 60,571 63,874 Deferred revenue, non-current 37,220 34,092 We receive payments from customers based upon billing cycles. Invoice payment terms are usually ranging from 30 to 90 days. Accounts receivable are recorded when the right to consideration becomes unconditional. Contract assets include amounts related to our contractual right to consideration for performance obligations not yet billed and are included in prepaid and other current assets in the condensed consolidated balance sheets. The amount is immaterial as of June 30, 2019 . Deferred revenue primarily consists of amounts that have been invoiced but not yet been recognized as revenue and consists of performance obligations pertaining to support and subscription services. During the three months ended June 30, 2019 and 2018 , we recognized revenue of $21.0 million and $17.2 million , respectively, and during the six months ended June 30, 2019 and 2018 , we recognized revenue of $38.7 million and $36.7 million , respectively, related to deferred revenues at the beginning of the respective periods. Deferred Contract Acquisition Costs In connection with the adoption of ASC 340-40, we capitalize certain contract acquisition costs consisting of incremental sales commissions incurred to obtain customer contracts. Deferred commissions related to product revenues are recognized upon transfer of control to customers. Deferred commissions related to services revenue are recognized as the related performance obligations are met. Deferred commissions that will be recognized during the succeeding 12-month period are recorded as prepaid expenses and other current assets, and the remaining portion is recorded as other non-current assets. Amortization of deferred commissions is included in sales and marketing expense. Deferred contract acquisition costs were $8.5 million as of June 30, 2019 , and the related amortization amount was $1.9 million and $1.3 million for the three months ended June 30, 2019 and 2018 , respectively, and $3.9 million and $3.0 million for the six months ended June 30, 2019 and 2018 , respectively. We had no impairment loss in relation to the costs capitalized and no asset impairment charges related to contract assets. Remaining Performance Obligations Remaining performance obligations represent contracted revenues that are non-cancellable and have not yet been recognized due to unsatisfied or partially satisfied performance obligations, which include deferred revenues and amounts that will be invoiced and recognized as revenues in future periods. We expect to recognize revenue on the remaining performance obligations as follows (in thousands): June 30, 2019 Within 1 year $ 60,571 Next 2 to 3 years 29,678 Thereafter 7,542 Total $ 97,791 |
Subsequent Event
Subsequent Event | 6 Months Ended |
Jun. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Events On July 26, 2019, the Company entered into a letter agreement with VIEX Capital Advisors, LLC (“VIEX”), certain entities affiliated with VIEX, and Eric Singer. Pursuant to the letter agreement, among other things, a) the Company increased the size of the Company’s board of directors (the “Board”) to six directors and appointed Mr. Singer to serve as a director, effective July 26, 2019; b) Mr. Singer was appointed to the Board’s Compensation, Nominating and Corporate Governance and Strategy Committees; c) VIEX and certain of its affiliated entities agreed to customary “standstill” provisions that will expire at 11:59 p.m., Pacific time, on the day that is 15 business days prior to the deadline for the submission of stockholder nominations of directors and business proposals for the Company’s 2020 Annual Meeting of Stockholders (the “Restricted Period”); and d) after August 25, 2019, and prior to the expiration of the Restricted Period, VIEX has the right to recommend one independent director for appointment to the Board, and the Board must take appropriate action to appoint that person. On July 30, 2019, the Company announced the planned retirement of Lee Chen, the Company’s President and Chief Executive Officer. The Board has formed a search committee and retained an executive search firm for the purpose of recruiting and exploring potential chief executive officer candidates. Upon the appointment of a successor, Mr. Chen will resign as president and chief executive officer. |
Description of Business and S_2
Description of Business and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements include those of A10 Networks, Inc. and its subsidiaries after elimination of all intercompany accounts and transactions. We have prepared the accompanying unaudited condensed consolidated financial statements pursuant to the rules and regulations of the United States Securities and Exchange Commission (the “SEC”). As permitted under these rules and regulations, we have condensed or omitted certain financial information and footnote disclosures we normally include in our annual consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The unaudited condensed consolidated balance sheet as of December 31, 2018 has been derived from our audited financial statements, which are included in our 2018 Annual Report on Form 10-K, as amended by Form 10-K/A, for the year ended December 31, 2018 on file with the SEC (the “2018 Annual Report”). These financial statements have been prepared on the same basis as our annual financial statements and, in management’s opinion, reflect all adjustments consisting only of normal recurring adjustments that are necessary for a fair presentation of our financial information. Our interim period operating results do not necessarily indicate the results that may be expected for any other interim period or for the full fiscal year. These financial statements and accompanying notes should be read in conjunction with the financial statements and accompanying notes thereto in the 2018 Annual Report. |
Use of Estimates | Use of Estimates The preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Those estimates and assumptions affect revenue recognition and deferred revenue, the allowance for doubtful accounts, the sales return reserve, the valuation of inventory, the fair value of marketable securities, the incremental borrowing rate used in determining operating lease liabilities, contingencies and litigation, accrued liabilities, deferred commissions and the determination of fair value of stock-based compensation. These estimates are based on information available as of the date of the condensed consolidated financial statements; therefore, actual results could differ from management’s estimates. |
Leases | Leases In February 2016, the Financial Accounting Standards Board ("FASB") issued ASU 2016-02, Leases (Topic 842) in order to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet for those leases classified as operating leases under prior generally accepted accounting principles. ASU 2016-02 requires that a lessee should recognize a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term on the balance sheet. The adoption of ASU 2016-02 on January 1, 2019 resulted in the recognition of right-of-use assets of approximately $6.0 million and lease liabilities for operating leases of approximately $6.8 million on the Company’s condensed consolidated balance sheets, with no material impact to its condensed consolidated statements of operations. See Note 2 for further information regarding the impact of the adoption of ASU 2016-02 on the Company's financial statements. The Company determines if an arrangement is a lease at inception. For leases where the Company is the lessee, right-of-use (“ROU”) assets represent the Company’s right to use the underlying asset for the term of the lease and are included within other non-current assets on the condensed consolidated balance sheets, and the lease liabilities represent an obligation to make lease payments arising from the lease and are recorded within accrued liabilities and other non-current liabilities on the condensed consolidated balance sheets. Lease liabilities are recognized at the lease commencement date based on the present value of the future lease payments over the lease term. The Company uses its incremental borrowing rate based on the information available at the commencement date of the underlying lease arrangement to determine the present value of lease payments. The ROU asset is determined based on the lease liability initially established and reduced for any prepaid lease payments and any lease incentives received. The lease term to calculate the ROU asset and related lease liability includes options to extend or terminate the lease when it is reasonably certain that the Company will exercise the option. The Company’s lease agreements generally do not contain any material variable lease payments, residual value guarantees or restrictive covenants. The Company elected the package of practical expedients permitted under the transition guidance, which allowed for the carry-forward of the Company’s historical lease classification and assessment on whether a contract is or contains a lease. The Company elected to not apply the new standard’s recognition requirements to leases with an initial term of 12 months or less and instead elected to recognize lease payments in the condensed consolidated statements of operations on a straight-line basis over the lease term. The Company did not elect to apply the hindsight practical expedient when determining lease term and assessing impairment of right-of-use assets. Lease expense for operating leases is recognized on a straight-line basis over the lease term as an operating expense while expense for financing leases is recognized as depreciation expense and interest expense using the accelerated interest method of recognition. The Company accounts for lease components and non-lease components as a single lease component. |
Concentration of Credit Risk and Significant Customers | Concentration of Credit Risk and Significant Customers Financial instruments that potentially subject us to concentrations of credit risk consist of cash, cash equivalents, marketable securities and accounts receivable. Our cash, cash equivalents and marketable securities are held and invested in high-credit quality financial instruments by recognized financial institutions and are subject to minimum credit risk. Our accounts receivable are unsecured and represent amounts due to us based on contractual obligations of our customers. We mitigate credit risk in respect to accounts receivable by performing periodic credit evaluations based on a number of factors, including past transaction experience, evaluation of credit history and review of the invoicing terms of the contract. We generally do not require our customers to provide collateral to support accounts receivable. Significant customers, including distribution channel partners and direct customers, are those which represent 10% or more of our total revenue for each period presented or our gross accounts receivable balance as of each respective balance sheet date. |
Recently Adopted Accounting Guidance/Recent Accounting Pronouncements Not Yet Effective | Recent Accounting Pronouncements Not Yet Effective There have been no new accounting pronouncements issued by the FASB during the six months ended June 30, 2019 , as compared to the recent accounting pronouncements described in Note 1 of the Company’s 2018 Annual Report, that the Company believes are of significance or potential significance to the Company. |
Deferred Contract Acquisition Costs | In connection with the adoption of ASC 340-40, we capitalize certain contract acquisition costs consisting of incremental sales commissions incurred to obtain customer contracts. Deferred commissions related to product revenues are recognized upon transfer of control to customers. Deferred commissions related to services revenue are recognized as the related performance obligations are met. Deferred commissions that will be recognized during the succeeding 12-month period are recorded as prepaid expenses and other current assets, and the remaining portion is recorded as other non-current assets. Amortization of deferred commissions is included in sales and marketing expense. |
Description of Business and S_3
Description of Business and Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Revenue as Percentage of Total Revenue | Revenues from our significant customers as a percentage of our total revenue are as follows: Three Months Ended Six Months Ended Customers 2019 2018 2019 2018 Customer A (a distribution channel partner) 14% * 14% * Customer B (a distribution channel partner) * 20% * 14% Customer C (a distribution channel partner) 12% * * * * represents less than 10% of total revenue |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Assets And Liabilities, | The table below presents the Company’s right-of-use assets and lease liabilities as of June 30, 2019 (in thousands): June 30, 2019 Operating leases Right-of-use assets: Other non-current assets $ 4,812 Total right-of-use assets $ 4,812 Lease liabilities: Accrued liabilities $ 3,081 Other non-current liabilities 2,350 Total operating lease liabilities $ 5,431 |
Lease Payments | The aggregate future lease payments for operating leases as of June 30, 2019 were as follows (in thousands): Remainder of 2019 $ 1,917 2020 2,051 2021 1,293 2022 337 Total lease payments 5,598 Less: imputed interest (167 ) Present value of lease liabilities $ 5,431 |
Lease Costs | Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 Operating lease costs $ 852 $ 1,745 Short-term lease costs 138 275 Total lease costs $ 990 $ 2,020 Average lease terms and discount rates for the Company’s operating leases were as follows (in thousands): June 30, 2019 Weighted-average remaining term (years) 2.07 Weighted-average discount rate 3.31 % Supplemental cash flow information for the Company’s operating leases (in thousands): Six Months Ended June 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,982 Right-of-use assets obtained in exchange for new lease liabilities $ 467 |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | As previously disclosed in the Company’s 2018 Annual Report and under the previous lease accounting standard, ASC 840, Leases , the aggregate future minimum lease payments for operating leases as of December 31, 2018 were as follows (in thousands): 2019 $ 3,907 2020 1,921 2021 1,194 2022 313 Total $ 7,335 |
Marketable Securities and Fai_2
Marketable Securities and Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Available-for-sale Securities | Marketable securities, classified as available-for-sale, consisted of the following (in thousands): June 30, 2019 December 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Certificates of deposit $ 10,998 $ 27 $ — $ 11,025 $ 11,000 $ 7 $ (3 ) $ 11,004 Corporate securities 50,033 189 (9 ) 50,213 46,442 11 (116 ) 46,337 U.S. Treasury and agency securities 1,749 — (2 ) 1,747 1,748 — (12 ) 1,736 Commercial paper 4,955 8 — 4,963 12,327 1 (5 ) 12,323 Asset-backed securities 14,485 46 (1 ) 14,530 16,381 5 (32 ) 16,354 Total $ 82,220 $ 270 $ (12 ) $ 82,478 $ 87,898 $ 24 $ (168 ) $ 87,754 |
Schedule of Cost and Estimated Fair Values of Available-for-sale Securities by Contractual Maturity | The following table summarizes the cost and estimated fair value of marketable securities based on stated effective maturities as of June 30, 2019 (in thousands): Amortized Cost Fair Value Less than 1 year $ 42,570 $ 42,632 Mature in 1 - 3 years 39,650 39,846 Total $ 82,220 $ 82,478 |
Schedule of gross unrealized losses | Marketable securities in an unrealized loss position consisted of the following (in thousands): Less Than 12 Months 12 Months or More Total June 30, 2019 Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Corporate securities $ 1,499 $ (1 ) $ 5,642 $ (8 ) $ 7,141 $ (9 ) U.S. Treasury and agency securities — — 1,747 (2 ) 1,747 (2 ) Asset-backed securities — — 1,503 (1 ) 1,503 (1 ) Total $ 1,499 $ (1 ) $ 8,892 $ (11 ) $ 10,391 $ (12 ) Less Than 12 Months 12 Months or More Total December 31, 2018 Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Certificates of deposit $ 2,997 $ (3 ) $ — $ — $ 2,997 $ (3 ) Corporate securities 29,435 (68 ) 7,601 (48 ) 37,036 (116 ) U.S. Treasury and agency securities 992 (7 ) 744 (5 ) 1,736 (12 ) Commercial paper 9,888 (5 ) — — 9,888 (5 ) Asset-backed securities 8,499 (15 ) 4,758 (17 ) 13,257 (32 ) Total $ 51,811 $ (98 ) $ 13,103 $ (70 ) $ 64,914 $ (168 ) |
Schedule of Cash, Cash Equivalents and Available-for-sale Investments Measured at Fair Value on Recurring Basis | The following is a summary of our cash, cash equivalents and marketable securities measured at fair value on a recurring basis (in thousands): June 30, 2019 December 31, 2018 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash $ 28,565 $ — $ — $ 28,565 $ 39,113 $ — $ — $ 39,113 Cash equivalents 8,253 — — 8,253 1,508 — — 1,508 Certificates of deposit — 11,025 — 11,025 — 11,004 — 11,004 Corporate securities — 50,213 — 50,213 — 46,337 — 46,337 U.S. Treasury and agency securities — 1,747 — 1,747 — 1,736 — 1,736 Commercial paper — 4,963 — 4,963 — 12,323 — 12,323 Asset-backed securities — 14,530 — 14,530 — 16,354 — 16,354 Total $ 36,818 $ 82,478 $ — $ 119,296 $ 40,621 $ 87,754 $ — $ 128,375 |
Condensed Consolidated Financ_2
Condensed Consolidated Financial Statement Details (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Inventory | Inventory consisted of the following (in thousands): June 30, December 31, Raw materials $ 8,465 $ 7,979 Finished goods 14,057 9,951 Total inventory $ 22,522 $ 17,930 |
Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consisted of the following (in thousands): June 30, 2019 December 31, 2018 Prepaid expenses $ 7,953 $ 6,679 Deferred contract acquisition costs 5,272 6,564 Other 1,521 1,419 Total prepaid and other current assets $ 14,746 $ 14,662 |
Schedule of Property and Equipment, Net | Property and equipment, net, consisted of the following (in thousands): Useful Life June 30, December 31, (in years) Equipment 1 - 3 $ 49,636 $ 49,804 Software 1 - 3 4,352 4,088 Furniture and fixtures 1 - 3 967 967 Leasehold improvements 2 - 8 3,834 3,832 Construction in progress 787 160 Property and equipment, gross 59,576 58,851 Less: accumulated depreciation (52,168 ) (51,589 ) Property and equipment, net $ 7,408 $ 7,262 |
Schedule of Acquired Intangible Assets | Purchased intangible assets, net, consisted of the following (in thousands): June 30, 2019 December 31, 2018 Cost Accumulated Amortization Net Cost Accumulated Amortization Net Developed technology $ 5,050 $ (3,030 ) $ 2,020 $ 5,050 $ (2,525 ) $ 2,525 Patents 2,936 (1,930 ) $ 1,006 2,936 (1,713 ) 1,223 Total intangible assets $ 7,986 $ (4,960 ) $ 3,026 $ 7,986 $ (4,238 ) $ 3,748 |
Schedule of Future Amortization Expense for Purchased Finite-lived Intangible Assets | Future amortization expense for purchased intangible assets as of June 30, 2019 is as follows (in thousands): Fiscal Year Remainder of 2019 $ 721 2020 1,442 2021 863 Total $ 3,026 |
Schedule of Accrued Liabilities | Accrued liabilities consisted of the following (in thousands): June 30, December 31, Accrued compensation and benefits $ 8,872 $ 15,283 Accrued tax liabilities 3,712 4,455 Lease liability 3,081 — Other 4,544 5,553 Total accrued liabilities $ 20,209 $ 25,291 |
Schedule of Deferred Revenue | Deferred revenue consisted of the following (in thousands): June 30, December 31, Deferred revenue: Products $ 5,799 $ 5,216 Services 91,992 92,750 Total deferred revenue 97,791 97,966 Less: current portion (60,571 ) (63,874 ) Non-current portion $ 37,220 $ 34,092 The following table reflects contract balances with customers (in thousands): June 30, 2019 December 31, 2018 Accounts receivable, net $ 45,251 $ 53,972 Deferred revenue, current 60,571 63,874 Deferred revenue, non-current 37,220 34,092 |
Equity Incentive Plans and St_2
Equity Incentive Plans and Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Stock-based Compensation | A summary of our stock-based compensation expense is as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Stock-based compensation by type of award: Stock options $ 157 $ 302 $ 341 $ 631 Stock awards 4,522 2,270 7,996 4,935 Employee stock purchase rights (1) 249 — 487 5,157 $ 4,928 $ 2,572 $ 8,824 $ 10,723 Stock-based compensation by category of expense: Cost of revenue $ 458 $ 197 $ 782 $ 1,090 Sales and marketing 1,860 701 3,181 3,466 Research and development 1,593 1,003 2,924 4,385 General and administrative 1,017 671 1,937 1,782 $ 4,928 $ 2,572 $ 8,824 $ 10,723 (1) Amount for the six months ended June 30, 2018 includes $4.1 million of accelerated stock-based compensation expense. In March 2018, as a result of a suspension of the 2014 Purchase Plan due to our non-timely filing status, all unrecognized stock-based compensation expense related to the 2014 Purchase Plan was accelerated and recognized within the condensed consolidated statement of operations. |
Summary of Activity under Stock Option Plans | The following tables summarize our stock option activities and related information: Number of Shares (thousands) Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (years) Aggregate Intrinsic Value (thousands) Outstanding as of December 31, 2018 4,674 $ 5.19 Granted — $ — Exercised (496 ) $ 3.20 Canceled (93 ) $ 9.03 Outstanding as of June 30, 2019 4,085 $ 5.34 4.86 $ 7,802 Vested and exercisable as of June 30, 2019 3,688 $ 5.22 4.47 $ 7,517 |
Summary of Restricted Stock Units Activity | The following table summarizes our stock award activities and related information: Number of Shares (thousands) Weighted-Average Grant Date Fair Value Weighted-Average Remaining Vesting Term (years) Nonvested as of December 31, 2018 5,974 $ 6.51 Granted 1,245 $ 6.78 Released (962 ) $ 6.73 Canceled (580 ) $ 6.41 Nonvested as of June 30, 2019 5,677 $ 6.54 1.61 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Summary of Anti-dilutive Shares | The following table presents common shares related to potentially dilutive shares excluded from the calculation of diluted net loss per share as their effect would have been anti-dilutive (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Stock options, restricted stock units and employee stock purchase rights 9,600 9,209 9,797 9,826 |
Geographic Information (Tables)
Geographic Information (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Total Revenue Based on Customer's Location | The following table depicts the disaggregation of revenue by geographic region based on the ship to location of our customers and is consistent with how we evaluate our financial performance (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 United States $ 15,278 $ 30,443 $ 33,378 $ 51,121 Japan 14,894 11,868 28,046 24,948 Asia Pacific, excluding Japan 9,213 10,667 17,989 18,105 EMEA 6,570 5,420 13,799 11,919 Other 3,234 2,315 6,267 3,803 Total revenue $ 49,189 $ 60,713 $ 99,479 $ 109,896 |
Long-lived Assets by Geographic Areas | The following table is a summary of our long-lived assets which include property and equipment, net and operating lease ROU assets based on the physical location of the assets (in thousands): June 30, December 31, United States $ 6,843 $ 5,525 Japan 3,195 1,108 Other 2,182 629 Total $ 12,220 $ 7,262 |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Contract with Customer, Asset and Liability | Deferred revenue consisted of the following (in thousands): June 30, December 31, Deferred revenue: Products $ 5,799 $ 5,216 Services 91,992 92,750 Total deferred revenue 97,791 97,966 Less: current portion (60,571 ) (63,874 ) Non-current portion $ 37,220 $ 34,092 The following table reflects contract balances with customers (in thousands): June 30, 2019 December 31, 2018 Accounts receivable, net $ 45,251 $ 53,972 Deferred revenue, current 60,571 63,874 Deferred revenue, non-current 37,220 34,092 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | We expect to recognize revenue on the remaining performance obligations as follows (in thousands): June 30, 2019 Within 1 year $ 60,571 Next 2 to 3 years 29,678 Thereafter 7,542 Total $ 97,791 |
Description of Business and S_4
Description of Business and Summary of Significant Accounting Policies - Additional Information (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019USD ($)toolsolution | Jan. 01, 2019USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Number of software based advanced solutions | solution | 6 | |
Number of intelligent management and automation tools | tool | 2 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
ROU asset | $ 4,812 | |
Present value of lease liabilities | $ 5,431 | |
ASU 2016-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
ROU asset | $ 6,000 | |
Present value of lease liabilities | $ 6,800 |
Description of Business and S_5
Description of Business and Summary of Significant Accounting Policies - Concentration Risk (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Customer A | Revenue | |||||
Entity Wide Revenue Major Customer [Line Items] | |||||
Percentage representation of significant customers (percent) | 14.00% | 14.00% | |||
Customer A | Accounts Receivable | |||||
Entity Wide Revenue Major Customer [Line Items] | |||||
Percentage representation of significant customers (percent) | 16.00% | 16.00% | |||
Customer B | Revenue | |||||
Entity Wide Revenue Major Customer [Line Items] | |||||
Percentage representation of significant customers (percent) | 20.00% | 14.00% | |||
Customer B | Accounts Receivable | |||||
Entity Wide Revenue Major Customer [Line Items] | |||||
Percentage representation of significant customers (percent) | 14.00% | 12.00% | |||
Customer C | Revenue | |||||
Entity Wide Revenue Major Customer [Line Items] | |||||
Percentage representation of significant customers (percent) | 12.00% | ||||
Customer C | Accounts Receivable | |||||
Entity Wide Revenue Major Customer [Line Items] | |||||
Percentage representation of significant customers (percent) | 10.00% |
Leases - Assets and Liabilities
Leases - Assets and Liabilities (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Leases [Abstract] | |
Total right-of-use assets | $ 4,812 |
Accrued liabilities | 3,081 |
Other non-current liabilities | 2,350 |
Total operating lease liabilities | $ 5,431 |
Leases - Lease Liabilities (Det
Leases - Lease Liabilities (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Leases [Abstract] | |
Remainder of 2019 | $ 1,917 |
2020 | 2,051 |
2021 | 1,293 |
2022 | 337 |
Total lease payments | 5,598 |
Less: imputed interest | (167) |
Present value of lease liabilities | $ 5,431 |
Leases - Lease Costs (Details)
Leases - Lease Costs (Details) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019USD ($) | Jun. 30, 2019USD ($) | |
Leases [Abstract] | ||
Operating lease costs | $ 852 | $ 1,745 |
Short-term lease costs | 138 | 275 |
Total lease costs | $ 990 | $ 2,020 |
Weighted-average remaining term (years) | 2 years 26 days | 2 years 26 days |
Weighted-average discount rate | 3.31% | 3.31% |
Operating cash flows from operating leases | $ 1,982 | |
Right-of-use assets obtained in exchange for new lease liabilities | $ 467 |
Leases - Sublease (Details)
Leases - Sublease (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Leases [Abstract] | |
Monthly base rent | $ 262 |
Total base rent | $ 26,400 |
Leases - Topic 840 (Details)
Leases - Topic 840 (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 3,907 |
2020 | 1,921 |
2021 | 1,194 |
2022 | 313 |
Total | $ 7,335 |
Marketable Securities and Fai_3
Marketable Securities and Fair Value Measurements - Estimate of Fair Value of Marketable Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 82,220 | $ 87,898 |
Gross Unrealized Gains | 270 | 24 |
Gross Unrealized Losses | (12) | (168) |
Fair Value | 82,478 | 87,754 |
Certificates of deposit | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 10,998 | 11,000 |
Gross Unrealized Gains | 27 | 7 |
Gross Unrealized Losses | 0 | (3) |
Fair Value | 11,025 | 11,004 |
Corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 50,033 | 46,442 |
Gross Unrealized Gains | 189 | 11 |
Gross Unrealized Losses | (9) | (116) |
Fair Value | 50,213 | 46,337 |
U.S. Treasury and agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,749 | 1,748 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (2) | (12) |
Fair Value | 1,747 | 1,736 |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 4,955 | 12,327 |
Gross Unrealized Gains | 8 | 1 |
Gross Unrealized Losses | 0 | (5) |
Fair Value | 4,963 | 12,323 |
Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 14,485 | 16,381 |
Gross Unrealized Gains | 46 | 5 |
Gross Unrealized Losses | (1) | (32) |
Fair Value | $ 14,530 | $ 16,354 |
Marketable Securities and Fai_4
Marketable Securities and Fair Value Measurements - Contractual Maturities (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Amortized Cost | ||
Less than 1 year | $ 42,570 | |
Mature in 1 - 3 years | 39,650 | |
Amortized Cost | 82,220 | $ 87,898 |
Fair Value | ||
Less than 1 year | 42,632 | |
Mature in 1 - 3 years | 39,846 | |
Fair Value | $ 82,478 | $ 87,754 |
Marketable Securities and Fai_5
Marketable Securities and Fair Value Measurements - Securities in Unrealized Loss Position (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less Than 12 Months | $ 1,499 | $ 51,811 |
Fair Value, 12 Months or More | 8,892 | 13,103 |
Fair Value, Total | 10,391 | 64,914 |
Gross Unrealized Losses, Less Than 12 Months | (1) | (98) |
Gross Unrealized Losses,12 Months or More | (11) | (70) |
Gross Unrealized Losses, Total | (12) | (168) |
Certificates of deposit | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less Than 12 Months | 2,997 | |
Fair Value, 12 Months or More | 0 | |
Fair Value, Total | 2,997 | |
Gross Unrealized Losses, Less Than 12 Months | (3) | |
Gross Unrealized Losses,12 Months or More | 0 | |
Gross Unrealized Losses, Total | (3) | |
Corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less Than 12 Months | 1,499 | 29,435 |
Fair Value, 12 Months or More | 5,642 | 7,601 |
Fair Value, Total | 7,141 | 37,036 |
Gross Unrealized Losses, Less Than 12 Months | (1) | (68) |
Gross Unrealized Losses,12 Months or More | (8) | (48) |
Gross Unrealized Losses, Total | (9) | (116) |
U.S. Treasury and agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less Than 12 Months | 0 | 992 |
Fair Value, 12 Months or More | 1,747 | 744 |
Fair Value, Total | 1,747 | 1,736 |
Gross Unrealized Losses, Less Than 12 Months | 0 | (7) |
Gross Unrealized Losses,12 Months or More | (2) | (5) |
Gross Unrealized Losses, Total | (2) | (12) |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less Than 12 Months | 9,888 | |
Fair Value, 12 Months or More | 0 | |
Fair Value, Total | 9,888 | |
Gross Unrealized Losses, Less Than 12 Months | (5) | |
Gross Unrealized Losses,12 Months or More | 0 | |
Gross Unrealized Losses, Total | (5) | |
Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less Than 12 Months | 0 | 8,499 |
Fair Value, 12 Months or More | 1,503 | 4,758 |
Fair Value, Total | 1,503 | 13,257 |
Gross Unrealized Losses, Less Than 12 Months | 0 | (15) |
Gross Unrealized Losses,12 Months or More | (1) | (17) |
Gross Unrealized Losses, Total | $ (1) | $ (32) |
Marketable Securities and Fai_6
Marketable Securities and Fair Value Measurements - Schedule of Fair Value of Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Financial Assets | ||
Marketable Securities | $ 82,478 | $ 87,754 |
Total | 119,296 | 128,375 |
Level 1 | ||
Financial Assets | ||
Total | 36,818 | 40,621 |
Level 2 | ||
Financial Assets | ||
Total | 82,478 | 87,754 |
Cash | ||
Financial Assets | ||
Cash and Cash Equivalents | 28,565 | 39,113 |
Cash | Level 1 | ||
Financial Assets | ||
Cash and Cash Equivalents | 28,565 | 39,113 |
Cash equivalents | ||
Financial Assets | ||
Cash and Cash Equivalents | 8,253 | 1,508 |
Cash equivalents | Level 1 | ||
Financial Assets | ||
Cash and Cash Equivalents | 8,253 | 1,508 |
Certificates of deposit | ||
Financial Assets | ||
Marketable Securities | 11,025 | 11,004 |
Certificates of deposit | Level 2 | ||
Financial Assets | ||
Marketable Securities | 11,025 | 11,004 |
Corporate securities | ||
Financial Assets | ||
Marketable Securities | 50,213 | 46,337 |
Corporate securities | Level 2 | ||
Financial Assets | ||
Marketable Securities | 50,213 | 46,337 |
U.S. Treasury and agency securities | ||
Financial Assets | ||
Marketable Securities | 1,747 | 1,736 |
U.S. Treasury and agency securities | Level 2 | ||
Financial Assets | ||
Marketable Securities | 1,747 | 1,736 |
Commercial paper | ||
Financial Assets | ||
Marketable Securities | 4,963 | 12,323 |
Commercial paper | Level 2 | ||
Financial Assets | ||
Marketable Securities | 4,963 | 12,323 |
Asset-backed securities | ||
Financial Assets | ||
Marketable Securities | 14,530 | 16,354 |
Asset-backed securities | Level 2 | ||
Financial Assets | ||
Marketable Securities | $ 14,530 | $ 16,354 |
Condensed Consolidated Financ_3
Condensed Consolidated Financial Statement Details - Schedule of Inventory (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 8,465 | $ 7,979 |
Finished goods | 14,057 | 9,951 |
Total inventory | $ 22,522 | $ 17,930 |
Condensed Consolidated Financ_4
Condensed Consolidated Financial Statement Details - Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Abstract] | ||
Prepaid expenses | $ 7,953 | $ 6,679 |
Deferred contract acquisition costs | 5,272 | 6,564 |
Other | 1,521 | 1,419 |
Total prepaid and other current assets | $ 14,746 | $ 14,662 |
Condensed Consolidated Financ_5
Condensed Consolidated Financial Statement Details - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 59,576 | $ 58,851 |
Less: accumulated depreciation | (52,168) | (51,589) |
Property and equipment, net | 7,408 | 7,262 |
Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 49,636 | 49,804 |
Software | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 4,352 | 4,088 |
Furniture and fixtures | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 967 | 967 |
Leasehold improvements | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 3,834 | 3,832 |
Construction in progress | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 787 | $ 160 |
Minimum | Equipment | ||
Property Plant And Equipment [Line Items] | ||
Useful life | 1 year | |
Minimum | Software | ||
Property Plant And Equipment [Line Items] | ||
Useful life | 1 year | |
Minimum | Furniture and fixtures | ||
Property Plant And Equipment [Line Items] | ||
Useful life | 1 year | |
Minimum | Leasehold improvements | ||
Property Plant And Equipment [Line Items] | ||
Useful life | 2 years | |
Maximum | Equipment | ||
Property Plant And Equipment [Line Items] | ||
Useful life | 3 years | |
Maximum | Software | ||
Property Plant And Equipment [Line Items] | ||
Useful life | 3 years | |
Maximum | Furniture and fixtures | ||
Property Plant And Equipment [Line Items] | ||
Useful life | 3 years | |
Maximum | Leasehold improvements | ||
Property Plant And Equipment [Line Items] | ||
Useful life | 8 years |
Condensed Consolidated Financ_6
Condensed Consolidated Financial Statement Details - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation expense | $ 1.4 | $ 1.7 | $ 2.6 | $ 3.4 |
Amortization expense related to intangible assets | $ 0.4 | $ 0.3 | $ 0.7 | $ 0.7 |
Weighted average useful life of intangible assets | 2 years 1 month |
Condensed Consolidated Financ_7
Condensed Consolidated Financial Statement Details - Purchased Intangible Assets, net (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Cost | $ 7,986 | $ 7,986 |
Accumulated Amortization | (4,960) | (4,238) |
Total | 3,026 | 3,748 |
Developed technology | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Cost | 5,050 | 5,050 |
Accumulated Amortization | (3,030) | (2,525) |
Total | 2,020 | 2,525 |
Patents | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Cost | 2,936 | 2,936 |
Accumulated Amortization | (1,930) | (1,713) |
Total | $ 1,006 | $ 1,223 |
Condensed Consolidated Financ_8
Condensed Consolidated Financial Statement Details - Future Amortization Expense of Acquired Intangibles (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Abstract] | ||
Remainder of 2019 | $ 721 | |
2020 | 1,442 | |
2021 | 863 | |
Total | $ 3,026 | $ 3,748 |
Condensed Consolidated Financ_9
Condensed Consolidated Financial Statement Details - Accrued Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Accrued Liabilities, Current [Abstract] | ||
Accrued compensation and benefits | $ 8,872 | $ 15,283 |
Accrued tax liabilities | 3,712 | 4,455 |
Lease liability | 3,081 | |
Other | 4,544 | 5,553 |
Total accrued liabilities | $ 20,209 | $ 25,291 |
Condensed Consolidated Finan_10
Condensed Consolidated Financial Statement Details - Schedule of Deferred Revenue (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Deferred Revenue Arrangement [Line Items] | ||
Total deferred revenue | $ 97,791 | $ 97,966 |
Less: current portion | (60,571) | (63,874) |
Non-current portion | 37,220 | 34,092 |
Products | ||
Deferred Revenue Arrangement [Line Items] | ||
Total deferred revenue | 5,799 | 5,216 |
Services | ||
Deferred Revenue Arrangement [Line Items] | ||
Total deferred revenue | $ 91,992 | $ 92,750 |
Credit Facility (Details)
Credit Facility (Details) - Line of credit | 1 Months Ended | ||
Sep. 30, 2018 | Nov. 30, 2016USD ($) | Jun. 30, 2019USD ($) | |
Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Debt instrument term (in years) | 3 years | ||
Maximum borrowing capacity | $ 25,000,000 | ||
Debt covenant, net cash equals or exceeds, amount | 50,000,000 | ||
Debt covenant, net cash falls below, amount | $ 50,000,000 | ||
Unused capacity commitment fee | 0.40% | ||
Minimum adjusted quick ratio under debt compliance | 1.50 | ||
Amount outstanding | $ 0 | ||
Amended Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Unused capacity commitment fee | 0.30% | ||
Letter of Credit | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | $ 25,000,000 | ||
Prime Rate | Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Variable rate basis spread | 0.50% | ||
LIBOR | Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Variable rate basis spread | 2.50% |
Equity Incentive Plans and St_3
Equity Incentive Plans and Stock-Based Compensation - 2014 Equity Incentive Plan/ESPP (Details) - USD ($) $ / shares in Units, $ in Millions | Jan. 01, 2019 | Sep. 30, 2018 | Jun. 10, 2015 | Oct. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Intrinsic value of options exercised | $ 1.8 | $ 1.1 | ||||
2014 Stock Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares available for future grant (in shares) | 11,983,811 | |||||
Expiration period | 5 years | |||||
2014 Stock Incentive Plan | Prior Common Stock Outstanding | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Percentage of outstanding shares of common stock | 5.00% | |||||
Additional shares authorized for future issuance (in shares) | 3,715,060 | |||||
2014 Stock Incentive Plan | Stock options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Expiration period | 10 years | |||||
Vesting period | 4 years | |||||
2014 Stock Incentive Plan | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Additional shares reserved for future issuance (in shares) | 8,000,000 | |||||
Percentage of outstanding shares of common stock | 5.00% | |||||
Voting percentage | 10.00% | |||||
2014 Stock Incentive Plan | Maximum | Restricted Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 4 years | |||||
2014 Stock Incentive Plan | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Purchase price of common stock percentage | 110.00% | |||||
2014 Stock Incentive Plan | Minimum | Non Statutory Stock Options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Purchase price of common stock percentage | 100.00% | |||||
2014 Stock Incentive Plan | Minimum | Restricted Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 1 year | |||||
2014 Employee Stock Purchase Plan | ESPP | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Percentage of eligible compensation | 15.00% | |||||
Offering period | 24 months | |||||
Amended 2014 Employee Stock Purchase Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares available for future grant (in shares) | 2,742,279,000 | |||||
Amended 2014 Employee Stock Purchase Plan | ESPP | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Percentage of eligible compensation | 10.00% | |||||
Offering period | 6 months | |||||
Percentage of market value | 85.00% | |||||
Maximum shares to purchase (in shares) | 1,500 | |||||
ESPP | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares sold (in shares) | 322,903,000 | |||||
Shares sold, price per share (in dollars per share) | $ 5.18 | |||||
Intrinsic value of options exercised | $ 300 |
Equity Incentive Plans and St_4
Equity Incentive Plans and Stock-Based Compensation - Schedule of Stock-based Compensation Awards Granted under Stock Option Plan in Consolidated Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | $ 4,928 | $ 2,572 | $ 8,824 | $ 10,723 |
Cost of revenue | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | 458 | 197 | 782 | 1,090 |
Sales and marketing | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | 1,860 | 701 | 3,181 | 3,466 |
Research and development | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | 1,593 | 1,003 | 2,924 | 4,385 |
General and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | 1,017 | 671 | 1,937 | 1,782 |
Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | 157 | 302 | 341 | 631 |
Stock awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | 4,522 | 2,270 | 7,996 | 4,935 |
Employee stock purchase rights | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | $ 249 | $ 0 | $ 487 | 5,157 |
Accelerated stock-based compensation | $ 4,100 |
Equity Incentive Plans and St_5
Equity Incentive Plans and Stock-Based Compensation - Stock-based Compensation/Stock Repurchase Program (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Share-based Payment Arrangement [Abstract] | |
Total compensation expense related to unvested awards granted, not yet recognized | $ 30.8 |
Total compensation expense related to unvested awards granted, not yet recognized weighted-average period for recognition (in years) | 2 years 6 months |
Equity Incentive Plans and St_6
Equity Incentive Plans and Stock-Based Compensation - Summary of Activity under Stock Option Plans (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Number of Shares (thousands) | ||
Outstanding options, Beginning balance (in shares) | 4,674 | |
Granted (in shares) | 0 | |
Exercised (in shares) | (496) | |
Canceled (in shares) | (93) | |
Outstanding options, Ending balance (in shares) | 4,085 | |
Vested and exercisable (in shares) | 3,688 | |
Weighted-Average Exercise Price | ||
Beginning balance (in dollars per share) | $ 5.19 | |
Granted (in dollars per share) | 0 | |
Exercised (in dollars per share) | 3.20 | |
Canceled (in dollars per share) | 9.03 | |
Ending balance (in dollars per share) | 5.34 | |
Vested and exercisable at end of period (in dollars per share) | $ 5.22 | |
Weighted-average remaining contractual term (in years) | 4 years 10 months 10 days | |
Weighted average remaining contractual term, Vested and exercisable at end of period (in years) | 4 years 5 months 19 days | |
Aggregate Intrinsic Value | $ 7,802 | |
Aggregate Intrinsic Value, Vested and exercisable at end of period | $ 7,517 | |
Closing price (in dollars per share) | $ 6.82 | |
Intrinsic value of options exercised | $ 1,800 | $ 1,100 |
Equity Incentive Plans and St_7
Equity Incentive Plans and Stock-Based Compensation - Information About Stock Options (Details) - shares | 1 Months Ended | 6 Months Ended | |||
Feb. 29, 2020 | Apr. 30, 2019 | Oct. 31, 2018 | Feb. 29, 2016 | Jun. 30, 2019 | |
PSUs, February 2016 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted (in shares) | 547,000 | ||||
Actual performance vesting percentage | 80.00% | ||||
Vested in period (in shares) | 253,203 | ||||
Forfeited in period (in shares) | 200,297 | ||||
PSUs, October 2018 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted (in shares) | 464,888 | ||||
Vested in period (in shares) | 0 | ||||
PSUs, April 2019 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted (in shares) | 346,453 | ||||
Vested in period (in shares) | 0 | ||||
Tranche One | PSUs, February 2016 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting percentage | 80.00% | ||||
Tranche One | PSUs, October 2018 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting percentage | 75.00% | ||||
Tranche One | PSUs, April 2019 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting percentage | 75.00% | ||||
Tranche Two | PSUs, October 2018 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting percentage | 25.00% | ||||
Tranche Two | PSUs, April 2019 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting percentage | 25.00% | ||||
Forecast | PSUs, February 2016 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vested in period (in shares) | 93,500 |
Equity Incentive Plans and St_8
Equity Incentive Plans and Stock-Based Compensation - Summary of RSU activity (Details) - Restricted Stock - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Unvested at beginning of period (in shares) | 5,974 | |
Granted (in shares) | 1,245 | |
Released (in shares) | (962) | |
Canceled (in shares) | (580) | |
Unvested at end of period (in shares) | 5,677 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Unvested at beginning of period (in dollars per share) | $ 6.51 | |
Granted (in dollars per share) | 6.78 | |
Released (in dollars per share) | 6.73 | |
Canceled (in dollars per share) | 6.41 | |
Unvested at ending of period (in dollars per share) | $ 6.54 | |
Weighted-Average Remaining Vesting Term (years) | 1 year 7 months 10 days | |
Fair value of released awards | $ 6.4 | $ 4.3 |
Net Loss Per Share - Summary of
Net Loss Per Share - Summary of Outstanding Shares of Common Stock Equivalents (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Stock options, restricted stock units and employee stock purchase rights | ||||
Earnings Per Share Diluted [Line Items] | ||||
Anti-dilutive securities excluded from computation of diluted net income per share | 9,600 | 9,209 | 9,797 | 9,826 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||||
Income tax expense | $ 86 | $ 379 | $ 603 | $ 586 | |
Unrecognized tax benefits | $ 4,000 | $ 4,000 | $ 4,200 |
Geographic Information - Schedu
Geographic Information - Schedule of Total Revenue Based on Customer's Location (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Total revenue | $ 49,189 | $ 60,713 | $ 99,479 | $ 109,896 |
United States | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 15,278 | 30,443 | 33,378 | 51,121 |
Japan | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 14,894 | 11,868 | 28,046 | 24,948 |
Asia Pacific, excluding Japan | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 9,213 | 10,667 | 17,989 | 18,105 |
EMEA | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 6,570 | 5,420 | 13,799 | 11,919 |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | $ 3,234 | $ 2,315 | $ 6,267 | $ 3,803 |
Geographic Information - Long L
Geographic Information - Long Lived Assets By Geographic Area (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 12,220 | $ 7,262 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 6,843 | 5,525 |
Japan | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 3,195 | 1,108 |
Other | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 2,182 | $ 629 |
Revenue - Additional Informatio
Revenue - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Jan. 01, 2018 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Accumulated deficit | $ 290,289,000 | $ 290,289,000 | $ 272,246,000 | |||
Deferred revenue | 97,791,000 | 97,791,000 | $ 97,966,000 | |||
Revenue recognized | 21,000,000 | $ 17,200,000 | 38,700,000 | $ 36,700,000 | ||
Asset impairment charges for contract assets | 0 | |||||
ASU 2014-09 | ||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Accumulated deficit | $ 12,400,000 | |||||
Deferred revenue | 4,000,000 | |||||
Deferred commissions asset | $ 8,400,000 | |||||
Deferred Sales Commissions | ||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Deferred contract acquisition costs | 8,500,000 | 8,500,000 | ||||
Amortization | $ 1,900,000 | $ 1,300,000 | 3,900,000 | $ 3,000,000 | ||
Impairment loss of contract acquisition costs | $ 0 |
Revenue - Contract Balances (De
Revenue - Contract Balances (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Revenue from Contract with Customer [Abstract] | ||
Accounts receivable, net | $ 45,251 | $ 53,972 |
Deferred revenue | 60,571 | 63,874 |
Deferred revenue, non-current | $ 37,220 | $ 34,092 |
Revenue - Remaining Performance
Revenue - Remaining Performance Obligations (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligation | $ 97,791 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-07-01 | |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligation | $ 60,571 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation period | 6 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligation | $ 29,678 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation period | 2 years |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligation | $ 7,542 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation period |