Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2020 | Oct. 26, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-36343 | |
Entity Registrant Name | A10 NETWORKS, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 20-1446869 | |
Entity Address, Address Line One | 2300 Orchard Parkway | |
Entity Address, City or Town | San Jose | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 95131 | |
City Area Code | 408 | |
Local Phone Number | 325-8668 | |
Title of 12(b) Security | Common Stock, $0.00001 par value | |
Trading Symbol | ATEN | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 76,708,465 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0001580808 | |
Current Fiscal Year End Date | --12-31 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 83,069 | $ 45,742 |
Marketable securities | 76,041 | 84,180 |
Accounts receivable, net of allowances of $7 and $52, respectively | 42,803 | 53,566 |
Inventory | 22,600 | 22,384 |
Prepaid expenses and other current assets | 10,809 | 15,067 |
Total current assets | 235,322 | 220,939 |
Property and equipment, net | 7,297 | 7,656 |
Goodwill | 1,307 | 1,307 |
Intangible assets, net | 1,223 | 2,305 |
Other non-current assets | 38,948 | 41,846 |
Total assets | 284,097 | 274,053 |
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
Accounts payable | 7,289 | 7,592 |
Accrued liabilities | 27,602 | 27,756 |
Deferred revenue | 61,886 | 62,233 |
Total current liabilities | 96,777 | 97,581 |
Deferred revenue, non-current | 40,140 | 38,931 |
Other non-current liabilities | 25,479 | 28,754 |
Total liabilities | 162,396 | 165,266 |
Commitments and contingencies (Note 2 and Note 5) | ||
Stockholders' equity: | ||
Common stock, $0.00001 par value: 500,000 shares authorized; 78,487 and 77,580 shares issued and outstanding, respectively | 1 | 1 |
Treasury stock, at cost: 2,878 and 678 shares, respectively | (18,226) | (4,890) |
Additional paid-in-capital | 419,758 | 403,490 |
Accumulated other comprehensive income | 258 | 251 |
Accumulated deficit | (280,090) | (290,065) |
Total stockholders' equity | 121,701 | 108,787 |
Total liabilities and stockholders' equity | 284,097 | 274,053 |
Available-for-sale Securities | $ 76,041 | $ 84,180 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable | $ 7 | $ 52 |
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) | 78,487,000 | 77,580,000 |
Common stock, shares outstanding (in shares) | 78,487,000 | 77,580,000 |
Treasury Stock, Shares | 2,877,935 | 677,935 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenue: | ||||
Total revenue | $ 56,608 | $ 52,833 | $ 162,872 | $ 152,312 |
Cost of revenue: | ||||
Total cost of revenue | 13,123 | 11,920 | 36,687 | 35,441 |
Gross profit | 43,485 | 40,913 | 126,185 | 116,871 |
Operating expenses: | ||||
Sales and marketing | 18,556 | 22,056 | 57,653 | 70,165 |
Research and development | 13,694 | 15,784 | 42,459 | 46,567 |
General and administrative | 4,994 | 2,854 | 16,126 | 17,311 |
Total operating expenses | 37,244 | 40,694 | 116,238 | 134,043 |
Income (loss) from operations | 6,241 | 219 | 9,947 | (17,172) |
Non-operating income (expense): | ||||
Interest expense | 0 | (30) | (1) | (222) |
Interest and other income, net | 479 | 254 | 938 | 397 |
Total non-operating income, net | 479 | 224 | 937 | 175 |
Income (loss) before provision for income taxes | 6,720 | 443 | 10,884 | (16,997) |
Provision for income taxes | 256 | 270 | 909 | 873 |
Net income (loss) | $ 6,464 | $ 173 | $ 9,975 | $ (17,870) |
Net income (loss) per share: | ||||
Basic | $ 0.08 | $ 0 | $ 0.13 | $ (0.24) |
Diluted | $ 0.08 | $ 0 | $ 0.12 | $ (0.24) |
Weighted-average shares used in computing net income (loss) per share: | ||||
Basic | 78,235 | 76,618 | 78,158 | 75,611 |
Diluted | 80,424 | 79,093 | 80,232 | 75,611 |
Products | ||||
Revenue: | ||||
Total revenue | $ 32,188 | $ 30,052 | $ 92,138 | $ 85,067 |
Cost of revenue: | ||||
Total cost of revenue | 7,610 | 7,108 | 21,095 | 21,515 |
Services | ||||
Revenue: | ||||
Total revenue | 24,420 | 22,781 | 70,734 | 67,245 |
Cost of revenue: | ||||
Total cost of revenue | $ 5,513 | $ 4,812 | $ 15,592 | $ 13,926 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 6,464 | $ 173 | $ 9,975 | $ (17,870) |
Other comprehensive income (loss), net of tax: | ||||
Unrealized gain (loss) on marketable securities | (215) | 27 | 7 | 429 |
Comprehensive income (loss) | $ 6,249 | $ 200 | $ 9,982 | $ (17,441) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 9,975 | $ (17,870) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 8,773 | 7,433 |
Stock-based compensation | 9,382 | 12,221 |
Other non-cash items | 466 | (422) |
Changes in operating assets and liabilities: | ||
Accounts receivable | 10,777 | 8,735 |
Inventory | (810) | (4,222) |
Prepaid expenses and other assets | 3,716 | 468 |
Accounts payable | (322) | (3,172) |
Accrued and other liabilities | (4,297) | (9,183) |
Deferred revenue | 861 | 107 |
Net cash provided by (used in) operating activities | 38,521 | (5,905) |
Cash flows from investing activities: | ||
Proceeds from sales of marketable securities | 8,330 | 22,189 |
Proceeds from maturities of marketable securities | 39,280 | 33,449 |
Purchases of marketable securities | (39,695) | (53,852) |
Purchases of property and equipment | (2,549) | (3,939) |
Net cash provided by (used in) investing activities | 5,366 | (2,153) |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock under employee equity incentive plans | 6,776 | 3,505 |
Repurchase of common stock | (13,336) | 0 |
Other | 0 | (1) |
Net cash provided by (used in) financing activities | (6,560) | 3,504 |
Net increase (decrease) in cash and cash equivalents | 37,327 | (4,554) |
Cash and cash equivalents—beginning of period | 45,742 | 40,621 |
Cash and cash equivalents—end of period | 83,069 | 36,067 |
Non-cash investing and financing activities: | ||
Inventory transfers to property and equipment | 594 | 1,070 |
Purchases of property and equipment included in accounts payable | $ 21 | $ 459 |
Condensed Consolidated Financia
Condensed Consolidated Financial Statement Details | 9 Months Ended |
Sep. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Condensed Consolidated Financial Statement Details | Condensed Consolidated Financial Statement Details Inventory Inventory consisted of the following (in thousands): September 30, December 31, Raw materials $ 8,522 $ 9,495 Finished goods 14,078 12,889 Total inventory $ 22,600 $ 22,384 Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following (in thousands): September 30, December 31, Prepaid expenses $ 3,891 $ 6,163 Deferred contract acquisition costs 4,161 6,231 Other 2,757 2,673 Total prepaid expenses and other current assets $ 10,809 $ 15,067 Property and Equipment, Net Property and equipment, net, consisted of the following (in thousands): Useful Life September 30, December 31, (in years) Equipment 1 - 5 $ 24,318 $ 22,702 Software 1 - 3 765 726 Furniture and fixtures 1 - 7 652 459 Leasehold improvements Lease term 3,616 5,440 Construction in process 1,256 — Property and equipment, gross 30,607 29,327 Less: accumulated depreciation (23,310) (21,671) Property and equipment, net $ 7,297 $ 7,656 Depreciation expense on property and equipment was $1.0 million and $1.3 million for the three months ended September 30, 2020 and 2019, respectively, and was $3.4 million and $3.9 million for the nine months ended September 30, 2020 and 2019, respectively. Intangible Assets Purchased intangible assets, net, consisted of the following (in thousands): September 30, 2020 December 31, 2019 Cost Accumulated Amortization Net Cost Accumulated Amortization Net Developed technology $ 5,050 $ (4,293) $ 757 $ 5,050 $ (3,535) $ 1,515 Patents 2,936 (2,470) 466 2,936 (2,146) 790 Total intangible assets $ 7,986 $ (6,763) $ 1,223 $ 7,986 $ (5,681) $ 2,305 Amortization expense related to purchased intangible assets was $0.4 million and $0.4 million for the three months ended September 30, 2020 and 2019, respectively, and was $1.1 million and $1.1 million for the nine months ended September 30, 2020 and 2019, respectively. Future amortization expense for purchased intangible assets as of September 30, 2020 is as follows (in thousands): Fiscal Year Remainder of 2020 $ 361 2021 862 Total $ 1,223 Accrued Liabilities Accrued liabilities consisted of the following (in thousands): September 30, December 31, Accrued compensation and benefits $ 15,323 $ 12,227 Accrued tax liabilities 2,410 4,354 Lease liability 5,184 5,109 Other 4,685 6,066 Total accrued liabilities $ 27,602 $ 27,756 Deferred Revenue Deferred revenue consisted of the following (in thousands): September 30, December 31, Deferred revenue: Products $ 6,125 $ 6,593 Services 95,901 94,571 Total deferred revenue 102,026 101,164 Less: current portion (61,886) (62,233) Non-current portion $ 40,140 $ 38,931 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) $ in Thousands | May 17, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning balance | $ 110,860 | $ 98,326 | $ 108,787 | $ 103,883 | ||
Common stock issued under employee equity incentive plans | 0 | 0 | 0 | 0 | ||
Unrealized gain (loss) on marketable securities | (215) | 27 | 7 | 429 | ||
Net income (loss) | 6,464 | 173 | 9,975 | (17,870) | ||
Ending balance | 121,701 | 102,168 | 121,701 | 102,168 | ||
Stock Repurchased During Period, Value | $ 0 | 0 | $ (13,336) | 0 | ||
Common stock, shares outstanding (in shares) | 78,487,000 | 78,487,000 | 77,580,000 | |||
Common Stock | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning balance | $ 1 | $ 1 | $ 1 | $ 1 | ||
Beginning balance (in shares) | 77,519,000 | 76,082,000 | 77,580,000 | 74,301,000 | ||
Common stock issued under employee equity incentive plans (in shares) | 968,000 | 662,000 | 3,107,000 | 2,443,000 | ||
Ending balance (in shares) | 78,487,000 | 76,744,000 | 78,487,000 | 76,744,000 | ||
Ending balance | $ 1 | $ 1 | $ 1 | $ 1 | ||
Additional Paid-in Capital | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning balance | 415,166 | 393,246 | 403,490 | 381,162 | ||
Common stock issued under employee equity incentive plans | 1,168 | 245 | 6,776 | 3,505 | ||
Ending balance | 419,758 | 396,888 | 419,758 | 396,888 | ||
APIC, Share-based Payment Arrangement, Option, Increase for Cost Recognition | 3,424 | 3,397 | 9,492 | 12,221 | ||
Accumulated Other Comprehensive Income (Loss) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning balance | 473 | 258 | 251 | (144) | ||
Unrealized gain (loss) on marketable securities | (215) | 27 | 7 | 429 | ||
Ending balance | 258 | 285 | 258 | 285 | ||
Accumulated Deficit | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning balance | (286,554) | (290,289) | (290,065) | (272,246) | ||
Net income (loss) | 6,464 | 173 | 9,975 | (17,870) | ||
Ending balance | (280,090) | (290,116) | (280,090) | (290,116) | ||
Treasury Stock | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning balance | (18,226) | (4,890) | (4,890) | (4,890) | ||
Ending balance | $ (18,226) | $ (4,890) | $ (18,226) | $ (4,890) | ||
Treasury Stock, Shares, Acquired | (2,200,000) | 0 | 0 | (2,200,000) | 0 |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2020 | |
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 portfolio of software and hardware solutions combines industry-leading performance and scale with advanced intelligent automation, machine learning, data driven analytics, and threat intelligence to ensure security and availability of customer applications across their multi-cloud and mobile infrastructure networks, including on-premise, private and public clouds. As the cyber threat landscape intensifies and network architectures evolve, we are committed to providing customers with greater connected intelligence to improve the security, visibility, automation, availability, flexibility, management and performance of their applications. Our customers include leading cloud providers, web-scale businesses, service providers, government organizations and enterprises. Our product portfolio seeks to address many of the aforementioned challenges and solution requirements. The 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 intelligent management, and automation tools; Harmony Controller and aGalaxy TPS. Our products are offered in a variety of form factors and payment models, including physical appliances and perpetual and subscription based software licenses, as well as pay-as-you-go licensing models and FlexPool, a flexible consumption-based software model. 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” or the “Commission”). 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 (“U.S. GAAP”). The unaudited condensed consolidated balance sheet as of December 31, 2019 has been derived from our audited financial statements, which are included in our 2019 Annual Report on Form 10-K for the year ended December 31, 2019 on file with the SEC (the “2019 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 2019 Annual Report. Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the amounts reported in the 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, 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. Due to the COVID-19 pandemic, there has been uncertainty and disruption in the global economy and financial markets. The Company is not aware of any specific event or circumstance that would require an update to its estimates or judgments or a revision of the carrying value of its assets or liabilities as of October 30, 2020, the date of issuance of this Quarterly Report on Form 10-Q. These estimates may change, as new events occur and additional information is obtained. Actual results could differ materially from these estimates under different assumptions or conditions. Significant Accounting Policies The Company’s significant accounting policies are disclosed in Part II-Item 8, “Financial Statements and Supplementary Data,” of the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 filed with the SEC on March 10, 2020, except for the Company’s capitalization of internally developed software expenses which is described below. There have been no other material changes to the Company’s significant accounting policies during the nine months ended September 30, 2020. Capitalization of Internally Developed Software to be Marketed and Sold In the first quarter of 2020, the Company began capitalizing software engineering labor costs related to certain long-term projects that are expected to take more than a year to complete. The Company accounts for the capitalization of labor costs under ASC Topic 985-20 - Software to be Sold, Leased or Marketed . During the three and nine months ended September 30, 2020, the Company’s capitalized labor costs were not material. 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 September 30, Nine Months Ended September 30, Customers 2020 2019 2020 2019 Customer A (a distribution channel partner) * 16% * 11% Customer B (a distribution channel partner) * * 11% * Customer C (a distribution channel partner) 12% 11% 10% 13% Customer D (a distribution channel partner) * * 10% * * represents less than 10% of total revenue As of September 30, 2020, two customers accounted for 15% and 14%, respectively, of our total gross accounts receivable. As of December 31, 2019, two customers accounted for 17% and 12%, respectively, of our total gross accounts receivable. Repurchase of Common Stock On May 17, 2020, the Company entered into a Common Stock Repurchase and Option Exchange Agreement (the “Repurchase Agreement”) with Lee Chen, the Company’s founder and its former Chairman, President and Chief Executive Officer. Pursuant to the Repurchase Agreement, the Company purchased 2,200,000 shares of the Company’s common stock from Mr. Chen at $6.00 per share, or an aggregate purchase price of $13.2 million. The shares are held in treasury and accounted for under the cost method. In addition, the Company also cancelled 282,500 vested, unexercised in-the-money options held by Mr. Chen pursuant to the Repurchase Agreement in exchange for $0.1 million, which was recorded to treasury stock. As of September 30, 2020 and December 31, 2019 there were 2,877,935 shares and 677,935 shares, respectively, of stock held in treasury. A portion of the prior period balance for Additional paid-in capital on the Company’s balance sheet as of December 31, 2019 has been reclassified to Treasury stock, at cost, to conform to the current period presentation. This reclassification did not have a material impact on the previously reported financial statements. On September 17, 2020, the Company announced that its Board of Directors had approved a stock repurchase program of up to $50 million of its common stock over a period of twelve months. Any stock repurchases may be made from time to time in the open market and through privately negotiated transactions, in block trades and/or through other legally permissible means, depending on market conditions and in accordance with applicable rules and regulations. The shares repurchased will be held in treasury and accounted for under the cost method. As of September 30, 2020, no stock repurchases had been made under this program. Recently Adopted Accounting Pronouncements Effective January 1, 2020, the Company adopted ASU No. 2016-13, Financial Instruments-Credit Losses: Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), as amended, using a modified retrospective approach, with certain exceptions allowed. The standard amends the guidance for measuring and recording credit losses on financial assets measured at amortized cost by replacing the incurred-loss model with an expected-loss model. This new standard also requires that credit losses related to available-for-sale debt securities be recorded as an allowance through net income rather than by reducing the carrying amount under the current, other-than-temporary-impairment model. The adoption of ASU 2016-13 did not have a significant impact on the Company’s Condensed Consolidated Financial Statements. Effective January 1, 2020, the Company adopted ASU No. 2018-13, Fair Value Measurement (Topic 820 - Changes to the Disclosure Requirements for the Fair Value Measurement) . Entities will no longer be required to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, but public companies will be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. The guidance is effective for all entities for fiscal years beginning after December 15, 2019 and for interim periods within those fiscal years. The new guidance did not have a significant impact on the Company’s Condensed Consolidated Financial Statements. In January 2017, the Financial Accounting Standards Board (“FASB”) issued ASU 2017-04, Intangibles—Goodwill and Other (Topic 350)—Simplifying the Test for Goodwill Impairment (“ASU 2017-04”). ASU 2017-04 simplifies the accounting for goodwill impairments by eliminating the requirement to compare the implied fair value of goodwill with its carrying amount as part of step two of the goodwill impairment test referenced in Accounting Standards Codification (“ASC”) 350, Intangibles - Goodwill and Other (“ASC 350”). As a result, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value. However, the impairment loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. ASU 2017-04 is effective for annual reporting periods beginning after December 15, 2019, including any interim impairment tests within those annual periods, with early application permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. In January 2020, the Company adopted ASU 2017-04, and the adoption had no impact on the Company’s Condensed Consolidated Financial Statements. Recently Issued Accounting Pronouncements In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”), which simplifies income tax accounting in various areas including, but not limited to, the accounting for hybrid tax regimes, tax implications related to business combinations, and interim period accounting for enacted changes in tax law, along with some codification improvements. ASU 2019-12 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted. Certain changes in the standard require retrospective or modified retrospective adoption, while other changes must be adopted prospectively. The Company does not expect the adoption of ASU 2019-12 to have a significant impact on the Company’s Condensed Consolidated Financial Statements. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2020 | |
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 September 30, 2020 (in thousands): September 30, 2020 Operating leases Right-of-use assets: Other non-current assets $ 29,547 Total right-of-use assets $ 29,547 Lease liabilities: Accrued liabilities $ 5,184 Other non-current liabilities 24,797 Total operating lease liabilities $ 29,981 The aggregate future lease payments for non-cancelable operating leases as of September 30, 2020 were as follows (in thousands): Remainder of 2020 $ 1,511 2021 6,019 2022 4,824 2023 4,414 2024 4,518 Thereafter 11,773 Total lease payments 33,059 Less: imputed interest (3,078) Present value of lease liabilities $ 29,981 The components of lease costs were as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Operating lease costs $ 3,305 $ 821 $ 8,442 $ 2,566 Short-term lease costs 192 138 460 413 Total lease costs $ 3,497 $ 959 $ 8,902 $ 2,979 Average lease terms and discount rates for the Company’s operating leases were as follows: September 30, 2020 Weighted-average remaining term (years) 6.35 Weighted-average discount rate 3.14% Supplemental cash flow information for the Company’s operating leases was as follows (in thousands): Nine Months Ended September 30, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 4,335 No new operating leases were entered into during the nine months ended September 30, 2020. |
Marketable Securities and Fair
Marketable Securities and Fair Value Measurements | 9 Months Ended |
Sep. 30, 2020 | |
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): September 30, 2020 December 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Certificates of deposit $ 4,200 $ 1 $ — $ 4,201 $ 10,548 $ 10 $ — $ 10,558 Corporate securities 51,222 216 (5) 51,433 51,745 207 (1) 51,951 U.S. Treasury and agency securities 5,503 21 — 5,524 9,222 3 — 9,225 Commercial paper 9,733 — — 9,733 500 — — 500 Asset-backed securities 5,125 25 — 5,150 11,914 32 — 11,946 Total $ 75,783 $ 263 $ (5) $ 76,041 $ 83,929 $ 252 $ (1) $ 84,180 During the three and nine months ended September 30, 2020 and 2019, we did not reclassify any amount to earnings from accumulated other comprehensive income (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 September 30, 2020 (in thousands): Amortized Cost Fair Value Less than 1 year $ 71,851 $ 72,100 Mature in 1 - 3 years 3,932 3,941 Total $ 75,783 $ 76,041 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 as of September 30, 2020 consisted of the following (in thousands): Less Than 12 Months 12 Months or More Total As of September 30, 2020 Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Corporate securities $ 9,918 $ (5) $ — $ — $ 9,918 $ (5) Marketable securities in an unrealized loss position as of December 31, 2019 consisted of the following (in thousands): Less Than 12 Months 12 Months or More Total As of December 31, 2019 Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Corporate securities $ 2,996 $ (1) $ — $ — $ 2,996 $ (1) 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 three and nine months ended September 30, 2020 and 2019. 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): September 30, 2020 December 31, 2019 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash $ 63,344 $ — $ — $ 63,344 $ 35,546 $ — $ — $ 35,546 Cash equivalents 19,725 — — 19,725 10,196 — — 10,196 Certificates of deposit — 4,201 — 4,201 — 10,558 — 10,558 Corporate securities — 51,433 — 51,433 — 51,951 — 51,951 U.S. Treasury and agency securities — 5,524 — 5,524 — 9,225 — 9,225 Commercial paper — 9,733 — 9,733 — 500 — 500 Asset-backed securities — 5,150 — 5,150 — 11,946 — 11,946 Total $ 83,069 $ 76,041 $ — $ 159,110 $ 45,742 $ 84,180 $ — $ 129,922 There were no transfers between Level 1 and Level 2 fair value measurement categories during the three and nine months ended September 30, 2020 and 2019. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies 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. We recognize rent expense under these arrangements on a straight-line basis over the term of the lease. See Note 2 - Leases for the Company’s aggregate future lease payments for the Company’s non-cancelable operating leases as of September 30, 2020. Rent expense was $1.4 million and $1.0 million for three months ended September 30, 2020 and 2019, respectively, and was $4.4 million and $3.0 million for the nine months ended September 30, 2020 and 2019, respectively. Purchase Commitments We have open purchase commitments with third-party contract manufacturers with facilities in Taiwan to supply nearly all of our finished goods inventories, spare parts, and accessories. These purchase orders are expected to be paid within one year of the issuance date. 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 | 9 Months Ended |
Sep. 30, 2020 | |
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. The shares authorized for the 2014 Plan increase annually by the lesser 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, 2020, the number of shares in the 2014 Plan increased by 3,879,002 shares, representing 5% of the prior year end’s common stock outstanding. As of September 30, 2020, we had 14,550,134 shares available for future grant under the 2014 Plan. 2014 Employee Stock Purchase Plan In October 2018, the Board of Directors approved amending the 2014 Employee Stock 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. As of September 30, 2020, the Company had 2,106,940 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 September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Stock-based compensation by type of award: Stock options $ 37 $ 153 $ 195 $ 494 Stock awards 3,005 2,981 8,343 10,977 Employee stock purchase rights 331 263 844 750 $ 3,373 $ 3,397 $ 9,382 $ 12,221 Stock-based compensation by category of expense: Cost of revenue $ 399 $ 317 $ 998 $ 1,099 Sales and marketing 928 1,166 2,334 4,347 Research and development 1,129 1,498 3,104 4,422 General and administrative 917 416 2,946 2,353 $ 3,373 $ 3,397 $ 9,382 $ 12,221 As of September 30, 2020, the Company had $27.5 million of unrecognized stock-based compensation expense related to unvested stock-based awards which will be recognized over a weighted-average period of 2.41 years. Stock Options The following table summarizes our stock option activities and related information: Number of Shares (thousands) Weighted-Average Exercise Price Per Share Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value (thousands) Outstanding as of December 31, 2019 3,702 $ 5.57 Granted — — Exercised (1,143) 4.49 Canceled (712) 7.13 Outstanding as of September 30, 2020 1,847 5.64 3.07 $ 2,439 Vested and exercisable as of September 30, 2020 1,847 $ 5.64 3.07 $ 2,439 As of September 30, 2020, the aggregate intrinsic value represents the excess of the closing price of our common stock of $6.37 over the exercise price of the outstanding in-the-money options. The intrinsic value of options exercised was $1.0 million and $0.7 million during the three months ended September 30, 2020 and 2019, respectively, and was $2.6 million and $2.5 million during the nine months ended September 30, 2020 and 2019, respectively. Stock Awards We have granted RSUs to our employees, consultants and members of our Board of Directors, and PSUs 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 September 30, 2020, 253,203 shares had vested, 200,297 shares were forfeited, and the remaining 93,500 shares vested (as to 80%) in February 2020. 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 continued service vesting requirements. None of these PSUs were vested as of September 30, 2020. 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 continued service vesting requirements. None of these PSUs were vested as of September 30, 2020. In December 2019, we granted 375,000 PSUs with certain market performance-based targets to be achieved between December 2019 and December 2023. One-third of each tranche of these PSUs will become eligible to vest on each of the three anniversaries of the date the performance-based target is achieved, subject to continued service vesting requirements. The grant date fair values of each tranche of these PSUs were estimated to be $4.59, $4.06 and $3.59. None of these PSUs were vested as of September 30, 2020. In April 2020, we granted 100,000 PSUs with certain market performance-based targets to be achieved between April 2020 and April 2024. One-third of each tranche of these PSUs will become eligible to vest on each of the three anniversaries of the date the performance-based target is achieved, subject to continued service vesting requirements. The grant date fair values of each tranche of these PSUs were estimated to be $6.18, $5.63 and $5.13. None of these PSUs were vested as of September 30, 2020. In July 2020, we granted 283,169 PSUs with certain market performance-based targets to be achieved between July 2020 and July 2024. One-third of each tranche of these PSUs will become eligible to vest on each of the three anniversaries of the date the performance-based target is achieved, subject to continued service vesting requirements. The grant date fair values of each tranche of these PSUs were estimated to be $5.38, $4.88 and $4.43. None of these PSUs were vested as of September 30, 2020. In July 2020, we granted 491,130 PSUs with a certain market performance-based target to be achieved between July 2020 and July 2024. One-half of each tranche of these PSUs will become eligible to vest within 30 days of the achievement of the performance-based target, and one-fourth of each tranche will become eligible to vest on each of the first and second anniversaries of the date the performance-based target is achieved, subject to continued service vesting requirements. The grant date fair value of each PSU awarded was estimated to be $6.60. None of these PSUs were vested as of September 30, 2020. The following table summarizes our stock award activities and related information: Number of Shares (thousands) Weighted-Average Grant Date Fair Value Per Share Weighted-Average Remaining Vesting Term Aggregate Fair Value (thousands) Nonvested as of December 31, 2019 6,148 $ 6.59 Granted 1,905 6.64 Released (1,669) 6.79 Canceled (1,126) 6.59 Nonvested as of September 30, 2020 5,258 $ 6.55 2.29 $ 33,493 The aggregate fair value of stock awards released was $5.3 million and $3.8 million for the three months ended September 30, 2020 and 2019, respectively, and was $11.8 million and $10.2 million for the nine months ended September 30, 2020 and 2019, respectively. |
Net Loss Per Share
Net Loss Per Share | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | 7. Net Income (Loss) Per Share Basic net income (loss) per share is computed using the weighted average number of common shares outstanding for the period. Diluted net income (loss) per share applying the treasury stock method 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 during the nine months ended September 30, 2019, none of the potential dilutive common shares were included in the computation of diluted shares for this period, as inclusion of such shares would have been anti-dilutive. Basic and diluted net income (loss) per share are calculated as follows (in thousands, except per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Basic and diluted net income (loss) per share Numerator: Net income (loss) $ 6,464 $ 173 $ 9,975 $ (17,870) Denominator: Weighted-average shares outstanding - basic 78,235 76,618 78,158 75,611 Effect of dilutive potential common shares from stock options, stock awards and employee stock purchase plan 2,189 2,475 2,074 — Weighted-average shares outstanding - diluted 80,424 79,093 80,232 75,611 Net income (loss) per share: Basic $ 0.08 $ — $ 0.13 $ (0.24) Diluted $ 0.08 $ — $ 0.12 $ (0.24) The following table presents common shares related to potentially dilutive shares excluded from the calculation of diluted net income (loss) per share as their effect would have been anti-dilutive (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Stock options, restricted stock units and employee stock purchase rights 515 9,290 887 9,235 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes We recorded income tax expense of $0.3 million and $0.3 million for the three months ended September 30, 2020 and 2019, respectively, and $0.9 million and $0.9 million for the nine months ended September 30, 2020 and 2019, respectively, 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 September 30, 2020. 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 the recoverability of our deferred tax assets. We had $4.5 million of unrecognized tax benefits as of September 30, 2020. 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 provision for income taxes 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 | 9 Months Ended |
Sep. 30, 2020 | |
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 September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Americas $ 21,985 $ 22,751 $ 71,386 $ 62,396 Japan 18,015 15,157 48,509 43,203 Asia Pacific, excluding Japan 8,701 8,379 21,588 26,368 EMEA 7,907 6,546 21,389 20,345 Total revenue $ 56,608 $ 52,833 $ 162,872 $ 152,312 The following table is a summary of our long-lived assets which include property and equipment, net and operating lease right-of-use assets based on the physical location of the assets (in thousands): September 30, December 31, United States $ 32,811 $ 35,964 Japan 1,812 2,689 Other 2,221 2,017 Total $ 36,844 $ 40,670 |
Revenue Revenue
Revenue Revenue | 9 Months Ended |
Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Contract Balances The following table reflects contract balances with customers (in thousands): September 30, December 31, 2019 Accounts receivable, net $ 42,803 $ 53,566 Deferred revenue, current 61,886 62,233 Deferred revenue, non-current 40,140 38,931 We receive payments from customers based upon billing cycles. Invoice payment terms usually range 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 amounts were immaterial as of September 30, 2020 and December 31, 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. We recognized revenue of $22.8 million and $21.1 million during the three months ended September 30, 2020 and 2019, respectively, and $51.1 million and $52.3 million during the nine months ended September 30, 2020 and 2019, 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 $7.4 million and $9.5 million as of September 30, 2020 and December 31, 2019, respectively. The related amortization amount was $1.6 million and $1.6 million for the three months ended September 30, 2020 and 2019, respectively, and was $4.9 million and $5.5 million for the nine months ended September 30, 2020 and 2019, respectively. We had no impairment loss in relation to the costs capitalized and no asset impairment charges related to contract assets during the three and nine months ended September 30, 2020 and 2019. 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): September 30, 2020 Within 1 year $ 61,886 Next 2 to 3 years 31,107 Thereafter 9,033 Total $ 102,026 |
Description of Business and S_2
Description of Business and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
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” or the “Commission”). 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 (“U.S. GAAP”). The unaudited condensed consolidated balance sheet as of December 31, 2019 has been derived from our audited financial statements, which are included in our 2019 Annual Report on Form 10-K for the year ended December 31, 2019 on file with the SEC (the “2019 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 2019 Annual Report. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the amounts reported in the 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, 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. |
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 | Recently Adopted Accounting Pronouncements Effective January 1, 2020, the Company adopted ASU No. 2016-13, Financial Instruments-Credit Losses: Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), as amended, using a modified retrospective approach, with certain exceptions allowed. The standard amends the guidance for measuring and recording credit losses on financial assets measured at amortized cost by replacing the incurred-loss model with an expected-loss model. This new standard also requires that credit losses related to available-for-sale debt securities be recorded as an allowance through net income rather than by reducing the carrying amount under the current, other-than-temporary-impairment model. The adoption of ASU 2016-13 did not have a significant impact on the Company’s Condensed Consolidated Financial Statements. Effective January 1, 2020, the Company adopted ASU No. 2018-13, Fair Value Measurement (Topic 820 - Changes to the Disclosure Requirements for the Fair Value Measurement) . Entities will no longer be required to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, but public companies will be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. The guidance is effective for all entities for fiscal years beginning after December 15, 2019 and for interim periods within those fiscal years. The new guidance did not have a significant impact on the Company’s Condensed Consolidated Financial Statements. In January 2017, the Financial Accounting Standards Board (“FASB”) issued ASU 2017-04, Intangibles—Goodwill and Other (Topic 350)—Simplifying the Test for Goodwill Impairment (“ASU 2017-04”). ASU 2017-04 simplifies the accounting for goodwill impairments by eliminating the requirement to compare the implied fair value of goodwill with its carrying amount as part of step two of the goodwill impairment test referenced in Accounting Standards Codification (“ASC”) 350, Intangibles - Goodwill and Other (“ASC 350”). As a result, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value. However, the impairment loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. ASU 2017-04 is effective for annual reporting periods beginning after December 15, 2019, including any interim impairment tests within those annual periods, with early application permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. In January 2020, the Company adopted ASU 2017-04, and the adoption had no impact on the Company’s Condensed Consolidated Financial Statements. Recently Issued Accounting Pronouncements In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”), which simplifies income tax accounting in various areas including, but not limited to, the accounting for hybrid tax regimes, tax implications related to business combinations, and interim period accounting for enacted changes in tax law, along with some codification improvements. ASU 2019-12 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted. Certain changes in the standard require retrospective or modified retrospective adoption, while other changes must be adopted prospectively. The Company does not expect the adoption of ASU 2019-12 to have a significant impact on the Company’s Condensed Consolidated Financial Statements. |
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. |
Software to be Sold, Leased, or Otherwise Marketed, Policy | Capitalization of Internally Developed Software to be Marketed and Sold In the first quarter of 2020, the Company began capitalizing software engineering labor costs related to certain long-term projects that are expected to take more than a year to complete. The Company accounts for the capitalization of labor costs under ASC Topic 985-20 - Software to be Sold, Leased or Marketed |
Description of Business and S_3
Description of Business and Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Revenue as Percentage of Total Revenue | Three Months Ended September 30, Nine Months Ended September 30, Customers 2020 2019 2020 2019 Customer A (a distribution channel partner) * 16% * 11% Customer B (a distribution channel partner) * * 11% * Customer C (a distribution channel partner) 12% 11% 10% 13% Customer D (a distribution channel partner) * * 10% * * represents less than 10% of total revenue |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Assets And Liabilities, | The table below presents the Company’s right-of-use assets and lease liabilities as of September 30, 2020 (in thousands): September 30, 2020 Operating leases Right-of-use assets: Other non-current assets $ 29,547 Total right-of-use assets $ 29,547 Lease liabilities: Accrued liabilities $ 5,184 Other non-current liabilities 24,797 Total operating lease liabilities $ 29,981 |
Lease Payments | The aggregate future lease payments for non-cancelable operating leases as of September 30, 2020 were as follows (in thousands): Remainder of 2020 $ 1,511 2021 6,019 2022 4,824 2023 4,414 2024 4,518 Thereafter 11,773 Total lease payments 33,059 Less: imputed interest (3,078) Present value of lease liabilities $ 29,981 |
Lease Costs | Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Operating lease costs $ 3,305 $ 821 $ 8,442 $ 2,566 Short-term lease costs 192 138 460 413 Total lease costs $ 3,497 $ 959 $ 8,902 $ 2,979 Average lease terms and discount rates for the Company’s operating leases were as follows: September 30, 2020 Weighted-average remaining term (years) 6.35 Weighted-average discount rate 3.14% Supplemental cash flow information for the Company’s operating leases was as follows (in thousands): Nine Months Ended September 30, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 4,335 |
Marketable Securities and Fai_2
Marketable Securities and Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Available-for-sale Securities | Marketable securities, classified as available-for-sale, consisted of the following (in thousands): September 30, 2020 December 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Certificates of deposit $ 4,200 $ 1 $ — $ 4,201 $ 10,548 $ 10 $ — $ 10,558 Corporate securities 51,222 216 (5) 51,433 51,745 207 (1) 51,951 U.S. Treasury and agency securities 5,503 21 — 5,524 9,222 3 — 9,225 Commercial paper 9,733 — — 9,733 500 — — 500 Asset-backed securities 5,125 25 — 5,150 11,914 32 — 11,946 Total $ 75,783 $ 263 $ (5) $ 76,041 $ 83,929 $ 252 $ (1) $ 84,180 |
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 September 30, 2020 (in thousands): Amortized Cost Fair Value Less than 1 year $ 71,851 $ 72,100 Mature in 1 - 3 years 3,932 3,941 Total $ 75,783 $ 76,041 |
Schedule of gross unrealized losses | Marketable securities in an unrealized loss position as of September 30, 2020 consisted of the following (in thousands): Less Than 12 Months 12 Months or More Total As of September 30, 2020 Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Corporate securities $ 9,918 $ (5) $ — $ — $ 9,918 $ (5) Marketable securities in an unrealized loss position as of December 31, 2019 consisted of the following (in thousands): Less Than 12 Months 12 Months or More Total As of December 31, 2019 Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Corporate securities $ 2,996 $ (1) $ — $ — $ 2,996 $ (1) |
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): September 30, 2020 December 31, 2019 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash $ 63,344 $ — $ — $ 63,344 $ 35,546 $ — $ — $ 35,546 Cash equivalents 19,725 — — 19,725 10,196 — — 10,196 Certificates of deposit — 4,201 — 4,201 — 10,558 — 10,558 Corporate securities — 51,433 — 51,433 — 51,951 — 51,951 U.S. Treasury and agency securities — 5,524 — 5,524 — 9,225 — 9,225 Commercial paper — 9,733 — 9,733 — 500 — 500 Asset-backed securities — 5,150 — 5,150 — 11,946 — 11,946 Total $ 83,069 $ 76,041 $ — $ 159,110 $ 45,742 $ 84,180 $ — $ 129,922 |
Condensed Consolidated Financ_2
Condensed Consolidated Financial Statement Details (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Inventory | Inventory consisted of the following (in thousands): September 30, December 31, Raw materials $ 8,522 $ 9,495 Finished goods 14,078 12,889 Total inventory $ 22,600 $ 22,384 |
Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consisted of the following (in thousands): September 30, December 31, Prepaid expenses $ 3,891 $ 6,163 Deferred contract acquisition costs 4,161 6,231 Other 2,757 2,673 Total prepaid expenses and other current assets $ 10,809 $ 15,067 |
Schedule of Property and Equipment, Net | Property and equipment, net, consisted of the following (in thousands): Useful Life September 30, December 31, (in years) Equipment 1 - 5 $ 24,318 $ 22,702 Software 1 - 3 765 726 Furniture and fixtures 1 - 7 652 459 Leasehold improvements Lease term 3,616 5,440 Construction in process 1,256 — Property and equipment, gross 30,607 29,327 Less: accumulated depreciation (23,310) (21,671) Property and equipment, net $ 7,297 $ 7,656 |
Schedule of Acquired Intangible Assets | Purchased intangible assets, net, consisted of the following (in thousands): September 30, 2020 December 31, 2019 Cost Accumulated Amortization Net Cost Accumulated Amortization Net Developed technology $ 5,050 $ (4,293) $ 757 $ 5,050 $ (3,535) $ 1,515 Patents 2,936 (2,470) 466 2,936 (2,146) 790 Total intangible assets $ 7,986 $ (6,763) $ 1,223 $ 7,986 $ (5,681) $ 2,305 |
Schedule of Future Amortization Expense for Purchased Finite-lived Intangible Assets | Future amortization expense for purchased intangible assets as of September 30, 2020 is as follows (in thousands): Fiscal Year Remainder of 2020 $ 361 2021 862 Total $ 1,223 |
Schedule of Accrued Liabilities | Accrued liabilities consisted of the following (in thousands): September 30, December 31, Accrued compensation and benefits $ 15,323 $ 12,227 Accrued tax liabilities 2,410 4,354 Lease liability 5,184 5,109 Other 4,685 6,066 Total accrued liabilities $ 27,602 $ 27,756 |
Schedule of Deferred Revenue | Deferred revenue consisted of the following (in thousands): September 30, December 31, Deferred revenue: Products $ 6,125 $ 6,593 Services 95,901 94,571 Total deferred revenue 102,026 101,164 Less: current portion (61,886) (62,233) Non-current portion $ 40,140 $ 38,931 The following table reflects contract balances with customers (in thousands): September 30, December 31, 2019 Accounts receivable, net $ 42,803 $ 53,566 Deferred revenue, current 61,886 62,233 Deferred revenue, non-current 40,140 38,931 |
Equity Incentive Plans and St_2
Equity Incentive Plans and Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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 September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Stock-based compensation by type of award: Stock options $ 37 $ 153 $ 195 $ 494 Stock awards 3,005 2,981 8,343 10,977 Employee stock purchase rights 331 263 844 750 $ 3,373 $ 3,397 $ 9,382 $ 12,221 Stock-based compensation by category of expense: Cost of revenue $ 399 $ 317 $ 998 $ 1,099 Sales and marketing 928 1,166 2,334 4,347 Research and development 1,129 1,498 3,104 4,422 General and administrative 917 416 2,946 2,353 $ 3,373 $ 3,397 $ 9,382 $ 12,221 |
Summary of Activity under Stock Option Plans | The following table summarizes our stock option activities and related information: Number of Shares (thousands) Weighted-Average Exercise Price Per Share Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value (thousands) Outstanding as of December 31, 2019 3,702 $ 5.57 Granted — — Exercised (1,143) 4.49 Canceled (712) 7.13 Outstanding as of September 30, 2020 1,847 5.64 3.07 $ 2,439 Vested and exercisable as of September 30, 2020 1,847 $ 5.64 3.07 $ 2,439 |
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 Per Share Weighted-Average Remaining Vesting Term Aggregate Fair Value (thousands) Nonvested as of December 31, 2019 6,148 $ 6.59 Granted 1,905 6.64 Released (1,669) 6.79 Canceled (1,126) 6.59 Nonvested as of September 30, 2020 5,258 $ 6.55 2.29 $ 33,493 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Basic and diluted net income (loss) per share are calculated as follows (in thousands, except per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Basic and diluted net income (loss) per share Numerator: Net income (loss) $ 6,464 $ 173 $ 9,975 $ (17,870) Denominator: Weighted-average shares outstanding - basic 78,235 76,618 78,158 75,611 Effect of dilutive potential common shares from stock options, stock awards and employee stock purchase plan 2,189 2,475 2,074 — Weighted-average shares outstanding - diluted 80,424 79,093 80,232 75,611 Net income (loss) per share: Basic $ 0.08 $ — $ 0.13 $ (0.24) Diluted $ 0.08 $ — $ 0.12 $ (0.24) |
Summary of Anti-dilutive Shares | The following table presents common shares related to potentially dilutive shares excluded from the calculation of diluted net income (loss) per share as their effect would have been anti-dilutive (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Stock options, restricted stock units and employee stock purchase rights 515 9,290 887 9,235 |
Geographic Information (Tables)
Geographic Information (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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 September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Americas $ 21,985 $ 22,751 $ 71,386 $ 62,396 Japan 18,015 15,157 48,509 43,203 Asia Pacific, excluding Japan 8,701 8,379 21,588 26,368 EMEA 7,907 6,546 21,389 20,345 Total revenue $ 56,608 $ 52,833 $ 162,872 $ 152,312 |
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 right-of-use assets based on the physical location of the assets (in thousands): September 30, December 31, United States $ 32,811 $ 35,964 Japan 1,812 2,689 Other 2,221 2,017 Total $ 36,844 $ 40,670 |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Contract with Customer, Asset and Liability | Deferred revenue consisted of the following (in thousands): September 30, December 31, Deferred revenue: Products $ 6,125 $ 6,593 Services 95,901 94,571 Total deferred revenue 102,026 101,164 Less: current portion (61,886) (62,233) Non-current portion $ 40,140 $ 38,931 The following table reflects contract balances with customers (in thousands): September 30, December 31, 2019 Accounts receivable, net $ 42,803 $ 53,566 Deferred revenue, current 61,886 62,233 Deferred revenue, non-current 40,140 38,931 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | We expect to recognize revenue on the remaining performance obligations as follows (in thousands): September 30, 2020 Within 1 year $ 61,886 Next 2 to 3 years 31,107 Thereafter 9,033 Total $ 102,026 |
Description of Business and S_4
Description of Business and Summary of Significant Accounting Policies - Additional Information (Details) $ / shares in Units, $ in Thousands | May 17, 2020USD ($)$ / sharesshares | Sep. 30, 2020USD ($)shares | Sep. 30, 2019shares | Sep. 30, 2020USD ($)solutionshares | Sep. 30, 2019shares | Dec. 31, 2019shares |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
ROU asset | $ 29,547 | $ 29,547 | ||||
Present value of lease liabilities | $ 29,981 | $ 29,981 | ||||
Number of software based advanced solutions | solution | 6 | |||||
Treasury Stock Acquired, Average Cost Per Share | $ / shares | $ 6 | |||||
Treasury Stock, Shares | shares | 2,877,935 | 2,877,935 | 677,935 | |||
Treasury Stock, Value, Acquired, Cost Method | $ 13,200 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | shares | 282,500 | 712,000 | ||||
Stock options | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Treasury Stock, Value, Acquired, Cost Method | $ 100 | |||||
Treasury Stock | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Treasury Stock, Shares, Acquired | shares | 2,200,000 | 0 | 0 | 2,200,000 | 0 |
Description of Business and S_5
Description of Business and Summary of Significant Accounting Policies - Concentration Risk (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Customer A | Revenue | |||||
Entity Wide Revenue Major Customer [Line Items] | |||||
Percentage representation of significant customers (percent) | 16.00% | 11.00% | |||
Customer A | Accounts Receivable | |||||
Entity Wide Revenue Major Customer [Line Items] | |||||
Percentage representation of significant customers (percent) | 15.00% | 17.00% | |||
Customer B | Revenue | |||||
Entity Wide Revenue Major Customer [Line Items] | |||||
Percentage representation of significant customers (percent) | 11.00% | ||||
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% | 11.00% | 10.00% | 13.00% | |
Customer D | Revenue | |||||
Entity Wide Revenue Major Customer [Line Items] | |||||
Percentage representation of significant customers (percent) | 10.00% |
Leases - Assets and Liabilities
Leases - Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Total right-of-use assets | $ 29,547 | |
Accrued liabilities | 5,184 | $ 5,109 |
Other non-current liabilities | 24,797 | |
Total operating lease liabilities | $ 29,981 |
Leases - Lease Liabilities (Det
Leases - Lease Liabilities (Details) $ in Thousands | Sep. 30, 2020USD ($) |
Leases [Abstract] | |
Remainder of 2020 | $ 1,511 |
2021 | 6,019 |
2022 | 4,824 |
2023 | 4,414 |
2024 | 4,518 |
Thereafter | 11,773 |
Total lease payments | 33,059 |
Less: imputed interest | (3,078) |
Present value of lease liabilities | $ 29,981 |
Leases - Lease Costs (Details)
Leases - Lease Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Leases [Abstract] | ||||
Operating lease costs | $ 3,305 | $ 821 | $ 8,442 | $ 2,566 |
Short-term lease costs | 192 | 138 | 460 | 413 |
Total lease costs | $ 3,497 | $ 959 | $ 8,902 | $ 2,979 |
Weighted-average remaining term (years) | 6 years 4 months 6 days | 6 years 4 months 6 days | ||
Weighted-average discount rate | 3.14% | 3.14% | ||
Operating cash flows from operating leases | $ 4,335 |
Marketable Securities and Fai_3
Marketable Securities and Fair Value Measurements - Estimate of Fair Value of Marketable Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Total | $ 75,783 | $ 83,929 |
Gross Unrealized Gains | 263 | 252 |
Gross Unrealized Losses | (5) | (1) |
Available-for-sale Securities | 76,041 | 84,180 |
Certificates of deposit | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total | 4,200 | 10,548 |
Gross Unrealized Gains | 1 | 10 |
Gross Unrealized Losses | 0 | 0 |
Available-for-sale Securities | 4,201 | 10,558 |
Corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total | 51,222 | 51,745 |
Gross Unrealized Gains | 216 | 207 |
Gross Unrealized Losses | (5) | (1) |
Available-for-sale Securities | 51,433 | 51,951 |
U.S. Treasury and agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total | 5,503 | 9,222 |
Gross Unrealized Gains | 21 | 3 |
Gross Unrealized Losses | 0 | 0 |
Available-for-sale Securities | 5,524 | 9,225 |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total | 9,733 | 500 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Available-for-sale Securities | 9,733 | 500 |
Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total | 5,125 | 11,914 |
Gross Unrealized Gains | 25 | 32 |
Gross Unrealized Losses | 0 | 0 |
Available-for-sale Securities | $ 5,150 | $ 11,946 |
Marketable Securities and Fai_4
Marketable Securities and Fair Value Measurements - Contractual Maturities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Amortized Cost | ||
Less than 1 year | $ 71,851 | |
Mature in 1 - 3 years | 3,932 | |
Total | 75,783 | $ 83,929 |
Fair Value | ||
Less than 1 year | 72,100 | |
Mature in 1 - 3 years | 3,941 | |
Total | $ 76,041 | $ 84,180 |
Marketable Securities and Fai_5
Marketable Securities and Fair Value Measurements - Securities in Unrealized Loss Position (Details) - Corporate securities - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less Than 12 Months | $ 9,918 | $ 2,996 |
Fair Value, 12 Months or More | 0 | 0 |
Fair Value, Total | 9,918 | 2,996 |
Gross Unrealized Losses, Less Than 12 Months | (5) | (1) |
Gross Unrealized Losses,12 Months or More | 0 | 0 |
Gross Unrealized Losses, Total | $ (5) | $ (1) |
Marketable Securities and Fai_6
Marketable Securities and Fair Value Measurements - Schedule of Fair Value of Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Financial Assets | ||
Marketable Securities | $ 76,041 | $ 84,180 |
Level 1 | ||
Financial Assets | ||
Total | 83,069 | 45,742 |
Level 2 | ||
Financial Assets | ||
Total | 76,041 | 84,180 |
Fair Value, Inputs, Level 1, 2 and 3 | ||
Financial Assets | ||
Total | 159,110 | 129,922 |
Cash | ||
Financial Assets | ||
Cash and Cash Equivalents | 63,344 | 35,546 |
Cash | Level 1 | ||
Financial Assets | ||
Cash and Cash Equivalents | 63,344 | 35,546 |
Cash equivalents | ||
Financial Assets | ||
Cash and Cash Equivalents | 19,725 | 10,196 |
Cash equivalents | Level 1 | ||
Financial Assets | ||
Cash and Cash Equivalents | 19,725 | 10,196 |
Certificates of deposit | ||
Financial Assets | ||
Marketable Securities | 4,201 | 10,558 |
Certificates of deposit | Level 2 | ||
Financial Assets | ||
Marketable Securities | 4,201 | 10,558 |
Corporate securities | ||
Financial Assets | ||
Marketable Securities | 51,433 | 51,951 |
Corporate securities | Level 2 | ||
Financial Assets | ||
Marketable Securities | 51,433 | 51,951 |
U.S. Treasury and agency securities | ||
Financial Assets | ||
Marketable Securities | 5,524 | 9,225 |
U.S. Treasury and agency securities | Level 2 | ||
Financial Assets | ||
Marketable Securities | 5,524 | 9,225 |
Commercial paper | ||
Financial Assets | ||
Marketable Securities | 9,733 | 500 |
Commercial paper | Level 2 | ||
Financial Assets | ||
Marketable Securities | 9,733 | 500 |
Asset-backed securities | ||
Financial Assets | ||
Marketable Securities | 5,150 | 11,946 |
Asset-backed securities | Level 2 | ||
Financial Assets | ||
Marketable Securities | $ 5,150 | $ 11,946 |
Condensed Consolidated Financ_3
Condensed Consolidated Financial Statement Details - Schedule of Inventory (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 8,522 | $ 9,495 |
Finished goods | 14,078 | 12,889 |
Total inventory | $ 22,600 | $ 22,384 |
Condensed Consolidated Financ_4
Condensed Consolidated Financial Statement Details - Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Abstract] | ||
Prepaid expenses | $ 3,891 | $ 6,163 |
Deferred contract acquisition costs | 4,161 | 6,231 |
Other | 2,757 | 2,673 |
Total prepaid expenses and other current assets | $ 10,809 | $ 15,067 |
Condensed Consolidated Financ_5
Condensed Consolidated Financial Statement Details - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 30,607 | $ 29,327 |
Less: accumulated depreciation | (23,310) | (21,671) |
Property and equipment, net | 7,297 | 7,656 |
Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 24,318 | 22,702 |
Software | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 765 | 726 |
Furniture and fixtures | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 652 | 459 |
Leasehold improvements | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 3,616 | 5,440 |
Construction in process | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 1,256 | $ 0 |
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 | 5 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 | 7 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 | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation expense | $ 1 | $ 1.3 | $ 3.4 | $ 3.9 |
Amortization expense related to intangible assets | $ 0.4 | $ 0.4 | $ 1.1 | $ 1.1 |
Condensed Consolidated Financ_7
Condensed Consolidated Financial Statement Details - Purchased Intangible Assets, net (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Cost | $ 7,986 | $ 7,986 | $ 7,986 | ||
Accumulated Amortization | (6,763) | (6,763) | (5,681) | ||
Net | 1,223 | 1,223 | 2,305 | ||
Amortization expense related to intangible assets | 400 | $ 400 | 1,100 | $ 1,100 | |
Developed technology | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Cost | 5,050 | 5,050 | 5,050 | ||
Accumulated Amortization | (4,293) | (4,293) | (3,535) | ||
Net | 757 | 757 | 1,515 | ||
Patents | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Cost | 2,936 | 2,936 | 2,936 | ||
Accumulated Amortization | (2,470) | (2,470) | (2,146) | ||
Net | $ 466 | $ 466 | $ 790 |
Condensed Consolidated Financ_8
Condensed Consolidated Financial Statement Details - Future Amortization Expense of Acquired Intangibles (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Abstract] | ||
Remainder of 2020 | $ 361 | |
2021 | 862 | |
Net | $ 1,223 | $ 2,305 |
Condensed Consolidated Financ_9
Condensed Consolidated Financial Statement Details - Accrued Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Accrued Liabilities, Current [Abstract] | ||
Accrued compensation and benefits | $ 15,323 | $ 12,227 |
Accrued tax liabilities | 2,410 | 4,354 |
Lease liability | 5,184 | 5,109 |
Other | 4,685 | 6,066 |
Total accrued liabilities | $ 27,602 | $ 27,756 |
Condensed Consolidated Finan_10
Condensed Consolidated Financial Statement Details - Schedule of Deferred Revenue (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Deferred Revenue Arrangement [Line Items] | ||
Total deferred revenue | $ 102,026 | $ 101,164 |
Less: current portion | (61,886) | (62,233) |
Non-current portion | 40,140 | 38,931 |
Products | ||
Deferred Revenue Arrangement [Line Items] | ||
Total deferred revenue | 6,125 | 6,593 |
Services | ||
Deferred Revenue Arrangement [Line Items] | ||
Total deferred revenue | $ 95,901 | $ 94,571 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Rent expense | $ 1.4 | $ 1 | $ 4.4 | $ 3 |
Equity Incentive Plans and St_3
Equity Incentive Plans and Stock-Based Compensation - 2014 Equity Incentive Plan/ESPP (Details) - USD ($) $ in Millions | Jan. 01, 2020 | Sep. 30, 2018 | Jun. 10, 2015 | Oct. 31, 2018 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Jun. 30, 2020 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Intrinsic value of options exercised | $ 1 | $ 0.7 | $ 2.6 | $ 2.5 | |||||
2014 Stock Incentive Plan | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of shares available for future grant (in shares) | 14,550,134 | ||||||||
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) | 3,879,002 | ||||||||
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% | ||||||||
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) | 2,106,940 | 2,106,940 | |||||||
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 |
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 | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | $ 3,373 | $ 3,397 | $ 9,382 | $ 12,221 |
Cost of revenue | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | 399 | 317 | 998 | 1,099 |
Sales and marketing | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | 928 | 1,166 | 2,334 | 4,347 |
Research and development | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | 1,129 | 1,498 | 3,104 | 4,422 |
General and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | 917 | 416 | 2,946 | 2,353 |
Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | 37 | 153 | 195 | 494 |
Stock awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | 3,005 | 2,981 | 8,343 | 10,977 |
Employee stock purchase rights | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | $ 331 | $ 263 | $ 844 | $ 750 |
Equity Incentive Plans and St_5
Equity Incentive Plans and Stock-Based Compensation - Stock-based Compensation/Stock Repurchase Program (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Share-based Payment Arrangement [Abstract] | |
Total compensation expense related to unvested awards granted, not yet recognized | $ 27.5 |
Total compensation expense related to unvested awards granted, not yet recognized weighted-average period for recognition (in years) | 2 years 4 months 28 days |
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, $ in Thousands | May 17, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 |
Number of Shares (thousands) | |||||
Outstanding options, Beginning balance (in shares) | 3,702,000 | ||||
Granted (in shares) | 0 | ||||
Exercised (in shares) | (1,143,000) | ||||
Canceled (in shares) | (282,500) | (712,000) | |||
Outstanding options, Ending balance (in shares) | 1,847,000 | 1,847,000 | |||
Vested and exercisable (in shares) | 1,847,000 | 1,847,000 | |||
Weighted-Average Exercise Price Per Share | |||||
Beginning balance (in dollars per share) | $ 5.57 | ||||
Granted (in dollars per share) | 0 | ||||
Exercised (in dollars per share) | 4.49 | ||||
Canceled (in dollars per share) | 7.13 | ||||
Ending balance (in dollars per share) | $ 5.64 | 5.64 | |||
Vested and exercisable at end of period (in dollars per share) | $ 5.64 | $ 5.64 | |||
Weighted-average remaining contractual term (in years) | 3 years 25 days | ||||
Weighted average remaining contractual term, Vested and exercisable at end of period (in years) | 3 years 25 days | ||||
Aggregate Intrinsic Value | $ 2,439 | $ 2,439 | |||
Aggregate Intrinsic Value, Vested and exercisable at end of period | $ 2,439 | $ 2,439 | |||
Closing price (in dollars per share) | $ 6.37 | $ 6.37 | |||
Intrinsic value of options exercised | $ 1,000 | $ 700 | $ 2,600 | $ 2,500 |
Equity Incentive Plans and St_7
Equity Incentive Plans and Stock-Based Compensation - Information About Stock Options (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||
Feb. 29, 2020 | Apr. 30, 2019 | Oct. 31, 2018 | Feb. 29, 2016 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 1 | $ 0.7 | $ 2.6 | $ 2.5 | ||||
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) | 93,500 | 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 | 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% |
Equity Incentive Plans and St_8
Equity Incentive Plans and Stock-Based Compensation - Summary of RSU activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||
Jul. 31, 2020 | Apr. 30, 2020 | Dec. 31, 2019 | Apr. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||||||
Unvested at end of period (in shares) | 5,258,000 | 5,258,000 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Nonvested | $ 33,493 | $ 33,493 | ||||||
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. The shares authorized for the 2014 Plan increase annually by the lesser 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, 2020, the number of shares in the 2014 Plan increased by 3,879,002 shares, representing 5% of the prior year end’s common stock outstanding. As of September 30, 2020, we had 14,550,134 shares available for future grant under the 2014 Plan. 2014 Employee Stock Purchase Plan In October 2018, the Board of Directors approved amending the 2014 Employee Stock 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. As of September 30, 2020, the Company had 2,106,940 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 September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Stock-based compensation by type of award: Stock options $ 37 $ 153 $ 195 $ 494 Stock awards 3,005 2,981 8,343 10,977 Employee stock purchase rights 331 263 844 750 $ 3,373 $ 3,397 $ 9,382 $ 12,221 Stock-based compensation by category of expense: Cost of revenue $ 399 $ 317 $ 998 $ 1,099 Sales and marketing 928 1,166 2,334 4,347 Research and development 1,129 1,498 3,104 4,422 General and administrative 917 416 2,946 2,353 $ 3,373 $ 3,397 $ 9,382 $ 12,221 As of September 30, 2020, the Company had $27.5 million of unrecognized stock-based compensation expense related to unvested stock-based awards which will be recognized over a weighted-average period of 2.41 years. Stock Options The following table summarizes our stock option activities and related information: Number of Shares (thousands) Weighted-Average Exercise Price Per Share Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value (thousands) Outstanding as of December 31, 2019 3,702 $ 5.57 Granted — — Exercised (1,143) 4.49 Canceled (712) 7.13 Outstanding as of September 30, 2020 1,847 5.64 3.07 $ 2,439 Vested and exercisable as of September 30, 2020 1,847 $ 5.64 3.07 $ 2,439 As of September 30, 2020, the aggregate intrinsic value represents the excess of the closing price of our common stock of $6.37 over the exercise price of the outstanding in-the-money options. The intrinsic value of options exercised was $1.0 million and $0.7 million during the three months ended September 30, 2020 and 2019, respectively, and was $2.6 million and $2.5 million during the nine months ended September 30, 2020 and 2019, respectively. Stock Awards We have granted RSUs to our employees, consultants and members of our Board of Directors, and PSUs 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 September 30, 2020, 253,203 shares had vested, 200,297 shares were forfeited, and the remaining 93,500 shares vested (as to 80%) in February 2020. 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 continued service vesting requirements. None of these PSUs were vested as of September 30, 2020. 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 continued service vesting requirements. None of these PSUs were vested as of September 30, 2020. In December 2019, we granted 375,000 PSUs with certain market performance-based targets to be achieved between December 2019 and December 2023. One-third of each tranche of these PSUs will become eligible to vest on each of the three anniversaries of the date the performance-based target is achieved, subject to continued service vesting requirements. The grant date fair values of each tranche of these PSUs were estimated to be $4.59, $4.06 and $3.59. None of these PSUs were vested as of September 30, 2020. In April 2020, we granted 100,000 PSUs with certain market performance-based targets to be achieved between April 2020 and April 2024. One-third of each tranche of these PSUs will become eligible to vest on each of the three anniversaries of the date the performance-based target is achieved, subject to continued service vesting requirements. The grant date fair values of each tranche of these PSUs were estimated to be $6.18, $5.63 and $5.13. None of these PSUs were vested as of September 30, 2020. In July 2020, we granted 283,169 PSUs with certain market performance-based targets to be achieved between July 2020 and July 2024. One-third of each tranche of these PSUs will become eligible to vest on each of the three anniversaries of the date the performance-based target is achieved, subject to continued service vesting requirements. The grant date fair values of each tranche of these PSUs were estimated to be $5.38, $4.88 and $4.43. None of these PSUs were vested as of September 30, 2020. In July 2020, we granted 491,130 PSUs with a certain market performance-based target to be achieved between July 2020 and July 2024. One-half of each tranche of these PSUs will become eligible to vest within 30 days of the achievement of the performance-based target, and one-fourth of each tranche will become eligible to vest on each of the first and second anniversaries of the date the performance-based target is achieved, subject to continued service vesting requirements. The grant date fair value of each PSU awarded was estimated to be $6.60. None of these PSUs were vested as of September 30, 2020. The following table summarizes our stock award activities and related information: Number of Shares (thousands) Weighted-Average Grant Date Fair Value Per Share Weighted-Average Remaining Vesting Term Aggregate Fair Value (thousands) Nonvested as of December 31, 2019 6,148 $ 6.59 Granted 1,905 6.64 Released (1,669) 6.79 Canceled (1,126) 6.59 Nonvested as of September 30, 2020 5,258 $ 6.55 2.29 $ 33,493 The aggregate fair value of stock awards released was $5.3 million and $3.8 million for the three months ended September 30, 2020 and 2019, respectively, and was $11.8 million and $10.2 million for the nine months ended September 30, 2020 and 2019, respectively. | |||||||
Restricted Stock | ||||||||
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) | 6,148,000 | |||||||
Granted (in shares) | 1,905,000 | |||||||
Released (in shares) | (1,669,000) | |||||||
Canceled (in shares) | (1,126,000) | |||||||
Unvested at end of period (in shares) | 6,148,000 | |||||||
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) | $ 6.59 | |||||||
Granted (in dollars per share) | 6.64 | |||||||
Released (in dollars per share) | 6.79 | |||||||
Canceled (in dollars per share) | 6.59 | |||||||
Unvested at ending of period (in dollars per share) | $ 6.59 | $ 6.55 | $ 6.55 | |||||
Weighted-Average Remaining Vesting Term (years) | 2 years 3 months 14 days | |||||||
Fair value of released awards | $ 5,300 | $ 3,800 | $ 11,800 | $ 10,200 | ||||
Performance Stock Units, May 2020 [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||||||
Granted (in shares) | 100,000 | 0 | ||||||
Performance Stock Units, May 2020 [Member] | Tranche One | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||||||||
Unvested at ending of period (in dollars per share) | $ 6.18 | |||||||
Performance Stock Units, May 2020 [Member] | Tranche Two | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||||||||
Unvested at ending of period (in dollars per share) | 5.63 | |||||||
Performance Stock Units, May 2020 [Member] | Share-based Payment Arrangement, Tranche Three [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||||||||
Unvested at ending of period (in dollars per share) | $ 5.13 | |||||||
Performance Stock Units, December 2019 [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||||||
Granted (in shares) | 375,000 | 0 | ||||||
Performance Stock Units, December 2019 [Member] | Tranche One | ||||||||
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) | $ 4.59 | |||||||
Unvested at ending of period (in dollars per share) | $ 4.59 | |||||||
Performance Stock Units, December 2019 [Member] | Tranche Two | ||||||||
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) | 4.06 | |||||||
Unvested at ending of period (in dollars per share) | 4.06 | |||||||
Performance Stock Units, December 2019 [Member] | Share-based Payment Arrangement, Tranche Three [Member] | ||||||||
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) | $ 3.59 | |||||||
Unvested at ending of period (in dollars per share) | $ 3.59 | |||||||
PSUs, April 2019 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||||||
Granted (in shares) | 346,453 | 0 | ||||||
Performance Stock Unit, July 2, 2020 [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||||||
Granted (in shares) | 283,169 | 0 | ||||||
Performance Stock Unit, July 2, 2020 [Member] | Tranche One | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||||||||
Unvested at ending of period (in dollars per share) | $ 5.38 | |||||||
Performance Stock Unit, July 2, 2020 [Member] | Tranche Two | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||||||||
Unvested at ending of period (in dollars per share) | 4.88 | |||||||
Performance Stock Unit, July 2, 2020 [Member] | Share-based Payment Arrangement, Tranche Three [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||||||||
Unvested at ending of period (in dollars per share) | $ 4.43 | |||||||
Performance Stock Units, July 20, 2020 [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||||||
Granted (in shares) | 491,130 | 0 | ||||||
Performance Stock Units, July 20, 2020 [Member] | Tranche One | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||||||||
Unvested at ending of period (in dollars per share) | $ 6.60 |
Net Loss Per Share - Summary of
Net Loss Per Share - Summary of Outstanding Shares of Common Stock Equivalents (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Earnings Per Share Diluted [Line Items] | ||||
Net income (loss) | $ 6,464 | $ 173 | $ 9,975 | $ (17,870) |
Weighted-average shares outstanding - basic (in shares) | 78,235 | 76,618 | 78,158 | 75,611 |
Weighted Average Number Diluted Shares Outstanding Adjustment | 2,189 | 2,475 | 2,074 | 0 |
Weighted-average shares outstanding - diluted (in shares) | 80,424 | 79,093 | 80,232 | 75,611 |
Basic | $ 0.08 | $ 0 | $ 0.13 | $ (0.24) |
Diluted | $ 0.08 | $ 0 | $ 0.12 | $ (0.24) |
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 | 515 | 9,290 | 887 | 9,235 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense | $ 256 | $ 270 | $ 909 | $ 873 |
Unrecognized tax benefits | $ 4,500 | $ 4,500 |
Geographic Information - Schedu
Geographic Information - Schedule of Total Revenue Based on Customer's Location (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Segment Reporting Information [Line Items] | ||||
Total revenue | $ 56,608 | $ 52,833 | $ 162,872 | $ 152,312 |
Americas | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 21,985 | 22,751 | 71,386 | 62,396 |
Japan | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 18,015 | 15,157 | 48,509 | 43,203 |
Asia Pacific, excluding Japan | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 8,701 | 8,379 | 21,588 | 26,368 |
EMEA | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | $ 7,907 | $ 6,546 | $ 21,389 | $ 20,345 |
Geographic Information - Long L
Geographic Information - Long Lived Assets By Geographic Area (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 36,844 | $ 40,670 |
Americas | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 32,811 | 35,964 |
Japan | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 1,812 | 2,689 |
Other | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 2,221 | $ 2,017 |
Revenue - Additional Informatio
Revenue - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Accumulated deficit | $ 280,090,000 | $ 280,090,000 | $ 290,065,000 | ||
Deferred revenue | 102,026,000 | 102,026,000 | 101,164,000 | ||
Revenue recognized | 22,800,000 | $ 21,100,000 | 51,100,000 | $ 52,300,000 | |
Asset impairment charges for contract assets | 0 | ||||
Deferred Sales Commissions | |||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Deferred contract acquisition costs | 7,400,000 | 7,400,000 | $ 9,500,000 | ||
Amortization | $ 1,600,000 | $ 1,600,000 | 4,900,000 | $ 5,500,000 | |
Impairment loss of contract acquisition costs | $ 0 |
Revenue - Contract Balances (De
Revenue - Contract Balances (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Revenue from Contract with Customer [Abstract] | ||
Accounts receivable, net | $ 42,803 | $ 53,566 |
Deferred revenue | 61,886 | 62,233 |
Deferred revenue, non-current | $ 40,140 | $ 38,931 |
Revenue - Remaining Performance
Revenue - Remaining Performance Obligations (Details) $ in Thousands | Sep. 30, 2020USD ($) |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligation | $ 102,026 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-10-01 | |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligation | $ 61,886 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-10-01 | |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligation | $ 31,107 |
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]: 2023-10-01 | |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligation | $ 9,033 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation period | 4 years |