Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 26, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2020 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
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, $.00001 Par Value | ||
Trading Symbol | ATEN | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Public Float | $ 321 | ||
Entity Common Stock, Shares Outstanding | 76,914,118 | ||
Documents Incorporated by Reference | Portions of the registrant’s definitive Proxy Statement for the 2021 Annual Stockholders’ Meeting, which the registrant expects to file with the Securities and Exchange Commission within 120 days of December 31, 2020, are incorporated by reference into Part III (Items 10, 11,12, 13 and 14) of this Annual Report on Form 10-K. | ||
Entity Shell Company | false | ||
Entity File Number | 001-36343 | ||
Amendment Flag | false | ||
Entity Central Index Key | 0001580808 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2020 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 83,281 | |
Marketable securities | 74,851 | $ 84,180 |
Accounts receivable, net of allowances of $41 and $52, respectively | 51,051 | 53,566 |
Inventory | 20,730 | 22,384 |
Prepaid expenses and other current assets | 12,390 | 15,067 |
Total current assets | 242,303 | 220,939 |
Property and equipment, net | 7,888 | 7,656 |
Goodwill | 1,307 | 1,307 |
Intangible assets | 862 | 2,305 |
Other non-current assets | 38,451 | 41,846 |
Total assets | 290,811 | 274,053 |
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
Accounts payable | 4,851 | 7,592 |
Accrued liabilities | 36,930 | 27,756 |
Deferred revenue, current | 65,999 | 62,233 |
Total current liabilities | 107,780 | 97,581 |
Deferred revenue, non-current | 42,700 | 38,931 |
Other non-current liabilities | 24,357 | 28,754 |
Total liabilities | 174,837 | 165,266 |
Commitments and contingencies (Note 8) | ||
Stockholders' equity: | ||
Common stock, $0.00001 par value: 500,000 shares authorized; 76,346 and 77,580 shares issued and outstanding, respectively | 1 | 1 |
Treasury stock, at cost: 5,578 and 678 shares, respectively | (37,410) | (4,870) |
Additional paid-in-capital | 425,534 | 403,470 |
Accumulated other comprehensive income | 98 | 251 |
Accumulated deficit | (272,249) | (290,065) |
Total stockholders' equity | 115,974 | 108,787 |
Total liabilities and stockholders' equity | $ 290,811 | $ 274,053 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable | $ 41 | $ 52 |
Common Stock, par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized (in shares) | 500,000 | 500,000 |
Common stock, shares issued (in shares) | 76,346 | 77,580 |
Common stock, shares outstanding (in shares) | 76,346 | 77,580 |
Treasury stock, shares (in shares) | 5,578 | 678 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue: | |||
Total revenue | $ 225,527 | $ 212,628 | $ 232,223 |
Cost of revenue: | |||
Total cost of revenue | 50,148 | 48,881 | 51,896 |
Gross profit | 175,379 | 163,747 | 180,327 |
Operating expenses: | |||
Sales and marketing | 77,732 | 92,783 | 103,214 |
Research and development | 58,063 | 61,824 | 65,157 |
General and administrative | 21,851 | 23,704 | 39,635 |
Restructuring expense | 0 | 2,530 | 0 |
Total operating expenses | 157,646 | 180,841 | 208,006 |
Income (loss) from operations | 17,733 | (17,094) | (27,679) |
Non-operating income (expense): | |||
Interest expense | (1) | (237) | (129) |
Interest and other income, net | 1,407 | 919 | 1,273 |
Total non-operating income, net | 1,406 | 682 | 1,144 |
Income (loss) before income taxes | 19,139 | (16,412) | (26,535) |
Provision for income taxes | 1,323 | 1,407 | 1,082 |
Net income (loss) | $ 17,816 | $ (17,819) | $ (27,617) |
Net income (loss) per share - basic (in dollars per share) | $ 0.23 | $ (0.23) | $ (0.38) |
Net income (loss) per share - diluted (in dollars per share) | $ 0.22 | $ (0.23) | $ (0.38) |
Weighted-average shares used in computing net income (loss) per share: | |||
Weighted Average Number of Shares Outstanding, Basic | 77,776 | 76,080 | 72,882 |
Weighted Average Number of Shares Outstanding, Diluted | 80,019 | 76,080 | 72,882 |
Products | |||
Revenue: | |||
Total revenue | $ 129,876 | $ 121,920 | $ 144,682 |
Cost of revenue: | |||
Total cost of revenue | 29,109 | 29,816 | 34,066 |
Services | |||
Revenue: | |||
Total revenue | 95,651 | 90,708 | 87,541 |
Cost of revenue: | |||
Total cost of revenue | $ 21,039 | $ 19,065 | $ 17,830 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ 17,816 | $ (17,819) | $ (27,617) |
Other comprehensive income (loss), net of tax: | |||
Unrealized gain (loss) on marketable securities | (153) | 395 | (21) |
Comprehensive income (loss) | $ 17,663 | $ (17,424) | $ (27,638) |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated DeficitCumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Income (Loss) | Treasury Stock |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Cumulative effect adjustment from adoption of ASU 2014-09 | $ 98,386 | $ 12,396 | $ 1 | $ 360,403 | $ (257,025) | $ 12,396 | $ (123) | |
Treasury stock, value | (4,870) | |||||||
Beginning balance at Dec. 31, 2017 | 98,386 | 12,396 | $ 1 | 360,403 | (257,025) | 12,396 | (123) | |
Beginning balance (in shares) at Dec. 31, 2017 | 71,692 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Cumulative effect adjustment from adoption of ASU 2014-09 | 103,883 | $ 12,396 | $ 1 | 381,142 | (272,246) | $ 12,396 | (144) | |
Stock-based compensation expense | 17,038 | 17,038 | ||||||
Common stock issued under employee equity incentive plans (in shares) | 2,609 | |||||||
Common stock issued under employee equity incentive plans | 3,701 | 3,701 | ||||||
Unrealized loss on marketable securities, net of tax | (21) | (21) | ||||||
Net loss | (27,617) | (27,617) | ||||||
Ending balance (in shares) at Dec. 31, 2018 | 74,301 | |||||||
Ending balance at Dec. 31, 2018 | $ 103,883 | $ 1 | 381,142 | (272,246) | (144) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201409Member | |||||||
Cumulative effect adjustment from adoption of ASU 2014-09 | $ 103,883 | 1 | 381,142 | (272,246) | (144) | |||
Treasury stock, value | (4,870) | |||||||
Cumulative effect adjustment from adoption of ASU 2014-09 | 108,787 | $ 1 | 403,470 | (290,065) | 251 | |||
Stock-based compensation expense | 16,529 | 16,529 | ||||||
Common stock issued under employee equity incentive plans (in shares) | 3,279 | |||||||
Common stock issued under employee equity incentive plans | 5,799 | 5,799 | ||||||
Unrealized loss on marketable securities, net of tax | 395 | 395 | ||||||
Net loss | (17,819) | (17,819) | ||||||
Ending balance (in shares) at Dec. 31, 2019 | 77,580 | |||||||
Ending balance at Dec. 31, 2019 | 108,787 | $ 1 | 403,470 | (290,065) | 251 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Cumulative effect adjustment from adoption of ASU 2014-09 | 108,787 | 1 | 403,470 | (290,065) | 251 | |||
Treasury stock, value | (4,870) | |||||||
Cumulative effect adjustment from adoption of ASU 2014-09 | 115,974 | $ 1 | 425,534 | (272,249) | 98 | |||
Stock-based compensation expense | 12,473 | 12,473 | ||||||
Common stock issued under employee equity incentive plans (in shares) | 3,666 | |||||||
Common stock issued under employee equity incentive plans | $ 9,591 | 9,591 | ||||||
Repurchase of common stock (in shares) | (4,900) | |||||||
Repurchase of common stock | $ (32,540) | $ (32,540) | ||||||
Unrealized loss on marketable securities, net of tax | (153) | (153) | ||||||
Net loss | 17,816 | 17,816 | ||||||
Ending balance (in shares) at Dec. 31, 2020 | 76,346 | |||||||
Ending balance at Dec. 31, 2020 | 115,974 | $ 1 | 425,534 | (272,249) | 98 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Cumulative effect adjustment from adoption of ASU 2014-09 | 115,974 | $ 1 | $ 425,534 | $ (272,249) | $ 98 | |||
Treasury stock, value | $ (37,410) |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities: | |||
Net income (loss) | $ 17,816 | $ (17,819) | $ (27,617) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 11,303 | 10,028 | 7,880 |
Stock-based compensation | 12,310 | 16,529 | 17,038 |
Provision for doubtful accounts and sales returns | (78) | (190) | 212 |
Other non-cash items | 1,144 | (153) | (68) |
Changes in operating assets and liabilities: | |||
Accounts receivable | 2,346 | 599 | (6,119) |
Inventory | 543 | (5,648) | (1,529) |
Prepaid expenses and other assets | 1,141 | (452) | (2,434) |
Accounts payable | (2,683) | (621) | (603) |
Accrued and other liabilities | 3,909 | (5,897) | 3,116 |
Deferred revenue | 7,535 | 3,198 | 7,331 |
Other | 0 | 0 | 99 |
Net cash provided by (used in) operating activities | 55,286 | (426) | (2,694) |
Cash flows from investing activities: | |||
Proceeds from sales of marketable securities | 9,051 | 32,200 | 32,720 |
Proceeds from maturities of marketable securities | 57,707 | 43,525 | 51,024 |
Purchases of marketable securities | (57,992) | (71,636) | (86,823) |
Purchase of investment | 0 | 0 | (1,000) |
Purchases of property and equipment | (3,564) | (4,340) | (2,797) |
Net cash provided by (used in) investing activities | 5,202 | (251) | (6,876) |
Cash flows from financing activities: | |||
Proceeds from issuance of common stock under employee equity incentive plans | 9,591 | 5,799 | 3,701 |
Repurchases of common stock | (32,540) | 0 | 0 |
Other | 0 | (1) | (77) |
Net cash provided by (used in) financing activities | (22,949) | 5,798 | 3,624 |
Net increase (decrease) in cash and cash equivalents | 37,539 | 5,121 | (5,946) |
Cash and cash equivalents - beginning of year | 45,742 | 40,621 | 46,567 |
Cash and cash equivalents - end of year | 83,281 | 45,742 | 40,621 |
Supplemental Disclosures: | |||
Cash paid for income taxes, net of refunds | 1,032 | 934 | 517 |
Cash paid for interest | 4 | 262 | 100 |
Non-cash investing and financing activities: | |||
Inventory transfers to property and equipment | 1,112 | 1,193 | 1,176 |
Purchases of property and equipment included in accounts payable | $ 58 | $ 10 | $ 58 |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 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 product portfolio seeks to address many of the cyber protection 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 two intelligent management and automation tools; Harmony Controller and aGalaxy TPS. Our solutions are available in a variety of form factors, such as optimized hardware appliances, bare metal software, containerized software, virtual appliances and cloud-native software. Basis of Presentation The accompanying consolidated financial statements include those of A10 Networks, Inc. and its subsidiaries, and have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) and pursuant to the rules and regulations of the United States Securities and Exchange Commission (the “SEC”). All intercompany accounts and transactions have been eliminated in consolidation. Reclassifications Certain prior year amounts have been reclassified to conform to current year presentation in the consolidated revenues by geographic region in Note 12 Geographic Information, in the notes to consolidated financial statements. We have combined in the “Americas” region, revenues from the United States with revenues from Latin America. A portion of the prior period balance for Additional paid-in capital on the Company’s consolidated 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. 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 consolidated financial statements; therefore, actual results could differ from management’s estimates. Significant Accounting Policies Cash and Cash Equivalents Cash and cash equivalents include bank deposits and short-term, highly liquid investments purchased with an original maturity of 90 days or less. Our cash equivalents consist of money market funds. Marketable securities We classify our investments in debt securities as available-for-sale and record these investments at fair value. We may sell these investments at any time before their maturities. Accordingly, we classified our securities, including those with maturities exceeding twelve months, as current assets and included in marketable securities in the consolidated balance sheets. Unrealized gains and losses are reported in accumulated other comprehensive income (loss), net of taxes, in the consolidated statements of stockholders’ equity. Realized gains and losses are determined based on the specific identification method. Realized gains and losses and other-than-temporary impairment charges, if any, on marketable securities are reported in interest and other income, net as incurred in the consolidated statements of operations. We regularly review our investment portfolio to identify and evaluate investments that have indicators of possible impairment. Investments are considered impaired when a decline in fair value is judged to be other-than-temporary. If the cost of an individual investment exceeds its fair value, we evaluate, among other factors, general market conditions, the duration and extent to which the fair value is less than cost, and our intent and ability to hold the investment. Once a decline in fair value is determined to be other-than-temporary, we will record an impairment charge and establish a new cost basis in the investment. Fair Value Measurement Our financial instruments consist of cash, cash equivalents, marketable securities, accounts receivable and accounts payable. Our cash equivalents are measured and recorded at fair value on a recurring basis. Marketable securities are comprised of certificates of deposit, corporate securities, U.S. Treasury and agency securities, commercial paper and asset-backed securities and are measured at fair value on a recurring basis. Accounts receivable and accounts payable are stated at their carrying value, which approximates fair value due to the short time to the expected receipt or payment. Financial instruments recorded at fair value are measured and classified using the three-level valuation hierarchy as described below: Level 1 — observable inputs for identical assets or liabilities, such as quoted prices in active markets. Level 2 — inputs other than the quoted prices in active markets that are observable either directly or indirectly. Level 3 — unobservable inputs in which there is little or no market data, which requires us to develop our own assumptions when pricing the financial instruments. Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are recorded at invoice amounts, net of allowances for doubtful accounts. We evaluate the collectability of our accounts receivable based on known collection risks and historical experience. In circumstances where we are aware of a specific customer’s inability to meet its financial obligations to us (for examples, bankruptcy filings or substantial downgrading of credit ratings), we record a specific reserve for bad debts against amounts due to reduce the net recognized receivable to the amount we reasonably believe will be collected. For all other customers, we record reserves for bad debts based on the length of time the receivables are past due and our historical experience of collections and write-offs. Inventory Inventory is stated at the lower of cost or net realizable value. Inventory cost is determined using first-in, first-out method. We evaluate inventory for excess and obsolete products, based on management’s assessment of future demand and market conditions. Inventory write-downs, once established, are not reversed as they establish a new cost basis for the inventory. Inventory write downs are included as a component of cost of products revenue in the consolidated statements of operations. Property and Equipment, Net Property and equipment are stated at cost, less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets. Depreciation on property and equipment, excluding leasehold improvements, ranges from one Leasehold improvements are amortized on a straight-line basis over the shorter of the estimated useful lives of the assets or the remaining lease term. Amortization on leasehold improvements ranges from one Leases The Company determines if an arrangement is a lease at inception. For leases where the Company is the lessee, right-of-use (“ROU”) assets represent the Company’s right to use the underlying asset for the term of the lease and are included within other non-current assets in the consolidated balance sheets, and the lease liabilities represent an obligation to make lease payments arising from the lease and are recorded within accrued liabilities and other non-current liabilities in the consolidated balance sheets. Lease liabilities are recognized at the lease commencement date based on the present value of the future lease payments over the lease term. The Company uses its incremental borrowing rate based on the information available at the commencement date of the underlying lease arrangement to determine the present value of lease payments. The ROU asset is determined based on the lease liability initially established and reduced for any prepaid lease payments and any lease incentives received. The lease term to calculate the ROU asset and related lease liability includes options to extend or terminate the lease when it is reasonably certain that the Company will exercise the option. The Company’s lease agreements generally do not contain any material variable lease payments, residual value guarantees or restrictive covenants. The Company elected the package of practical expedients permitted under the transition guidance, which allowed for the carry-forward of the Company’s historical lease classification and assessment on whether a contract is or contains a lease. The Company elected to not apply the new standard’s recognition requirements to leases with an initial term of 12 months or less and instead elected to recognize lease payments in the consolidated statements of operations on a straight-line basis over the lease term. Lease expense for operating leases is recognized on a straight-line basis over the lease term as an operating expense while expense for financing leases is recognized as depreciation expense and interest expense using the accelerated interest method of recognition. The Company accounts for lease components and non-lease components as a single lease component. Goodwill Goodwill represents the excess of purchase consideration over the fair values of assets acquired and liabilities assumed in a business combination. Goodwill is not amortized but is reviewed for possible impairment annually in the fourth quarter or more frequently if impairment indicators arise. We have identified a single reporting unit for the purpose of our goodwill impairment tests, and the fair value of our reporting unit has been determined by our enterprise value. We may elect to utilize a qualitative assessment to determine whether it is more likely than not that the fair value of our reporting unit is less than its carrying value. If, after assessing the qualitative factors, we determine that it is more likely than not that the fair value of our reporting unit is less than its carrying value, an impairment analysis will be performed. We compare the fair value of our reporting unit with its carrying amount and if the carrying value of the reporting unit exceeds its fair value, an impairment loss will be recognized for the amount by which the carrying amount of a reporting unit exceeds its fair value up to the amount of goodwill. We did not identify impairment of goodwill for any periods presented. See the Recently Adopted Accounting Pronouncements section below for a discussion on the adoption of ASU 2017-04 in January 2020, which simplifies the goodwill impairment review process. Intangible Assets Intangible assets are recorded at fair value and amortized on a straight-line basis over their estimated useful lives, which range from 5 to 11 years. We evaluate our intangible assets for impairment at least annually and when indicators of impairment may exist. There were no impairment charges to our intangible assets during the years ended December 31, 2020, 2019 and 2018. Impairment of Long-Lived Assets We evaluate our property and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of our long-lived assets may not be recoverable. Recoverability of an asset group is measured by comparison of its carrying amount to the expected future undiscounted cash flows that the asset group is expected to generate. If it is determined that an asset group is not recoverable, an impairment loss is recorded in the amount by which the carrying amount of the asset group exceeds its fair value. Revenue Recognition We recognize revenue, net of applicable taxes, when we transfer control of promised goods or services to our customers in an amount that reflects the consideration to which we expect to be entitled to in exchange for those goods or services. We derive revenue from two sources: (i) products revenue, which includes hardware, perpetual software license and subscription revenue; and (ii) services revenue, which includes post contract support (“PCS”), professional services, and training. A substantial portion of our revenue is from sales of our products and services through distribution channel partners, such as resellers and distributors. We apply the following five-step revenue recognition model: • Identification of the contract, or contracts, with a customer • Identification of the performance obligations in the contract • Determination of the transaction price • Allocation of the transaction price to the performance obligations in the contract • Recognition of revenue when, or as, performance obligations are satisfied. PCS revenue includes arrangements for software support and technical support for our products. PCS is offered under renewable, fee-based contracts, which include technical support, hardware repair and replacement parts, bug fixes, patches, and unspecified upgrades on a when-and-if available basis. Revenue for PCS services is recognized on a straight-line basis over the service contract term, which is typically one year, but can be up to five years as there is no discernible pattern of transfer related to these promises. Billed but unearned PCS revenue is included in deferred revenue. Professional service revenue primarily consists of the fees we earn related to installation and consulting services. We recognize revenue from professional services upon delivery or completion of performance. Professional service arrangements are typically short term in nature and are largely completed within 30 to 90 days from the start of service. Revenue is recognized for training when the training course is delivered. Contracts with Multiple Performance Obligations Most of our contracts with customers, other than renewals of PCS, contain multiple performance obligations with a combination of products and PCS. Products and PCS generally qualify as distinct performance obligations. Our hardware includes embedded ACOS software, which together deliver the essential functionality of our products. For contracts which contain multiple performance obligations, we allocate revenue to each distinct performance obligation based on the standalone selling price (“SSP”). Judgment is required to determine the SSP for each distinct performance obligation. We use a range of amounts to estimate SSP for products and PCS sold together in a contract to determine whether there is a discount to be allocated based on the relative SSP of the various products and PCS. If we do not have an observable SSP, such as when we do not sell a product or service separately, then SSP is estimated using judgment and considering all reasonably available information such as market conditions and information about the size and/or purchase volume of the customer. We generally use a range of amounts to estimate SSP for individual products and services based on multiple factors including, but not limited to the sales channel (reseller, distributor or end-customer), the geographies in which our products and services are sold, and the size of the end-customer. We account for multiple contracts with a single partner as one arrangement if the contractual terms and/or substance of those agreements indicate that they may be so closely related that they are, in effect, parts of a single contract. We may occasionally accept returns to address customer satisfaction issues even though there is generally no contractual provision for such returns. We estimate returns for sales to customers based on historical returns rates applied against current-period shipments. Specific customer returns and allowances are considered when determining our sales return reserve estimate. Our policy applies to the accounting for individual contracts. However, we have elected a practical expedient to apply the guidance to a portfolio of contracts or performance obligations with similar characteristics so long as such application would not differ materially from applying the guidance to the individual contracts (or performance obligations) within that portfolio. Consequently, we have chosen to apply the portfolio approach when possible, which we do not believe will happen frequently. Additionally, we will evaluate a portfolio of data, when possible, in various situations, including accounting for commissions, rights of return and transactions with variable consideration. We report revenue net of sales taxes. We include shipping charges billed to customers in revenue and the related shipping costs are included in cost of product revenue. Deferred Contract Acquisition Costs 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 in the consolidated statements of operations. Research and Development Costs Research and development efforts are focused on new product development and on developing additional functionality for our existing products. These expenses consist of personnel costs, and to a lesser extent, prototype materials, depreciation and certain allocated facilities and information technology costs. We expense research and development costs as incurred. Capitalization of Internally Developed Software to be Marketed and Sold In the first quarter of 2020, we began capitalizing software engineering labor costs related to certain long-term projects that are expected to take more than a year to complete. We account for the capitalization of labor costs under ASC Topic 985-20, Software to be Sold, Leased or Marketed . During the year ended December 31, 2020, capitalized labor costs totaled $1.6 million and is included in property and equipment in the consolidated balance sheets. Stock-Based Compensation Stock-based compensation expense is measured on the grant date based on the fair value of the award and recognized on a straight-line basis over the requisite service period, reduced for actual forfeitures. The fair values of restricted stock units (“RSUs”) are estimated using our stock price on the grant date. The fair value of options and employee stock purchase rights is estimated using the Black-Scholes model on the grant date. The Black-Scholes model determines the fair value of share-based payment awards based on assumptions including expected term, stock price volatility, and risk-free interest rate. The fair value of market performance-based restricted stock units (“PSUs”) is valued using the Monte Carlo simulation model, which uses the stock price, expected volatility and risk-free interest rate to determine the fair value. Warranty Costs Our appliance hardware and software generally carry a warranty period of 90 days. Estimates of future warranty costs are based on historical returns and the application of the historical return rates to our in-warranty installed base. Warranty costs to repair or replace items sold to customers have been insignificant for the years ended December 31, 2020, 2019 and 2018. Foreign Currency The functional currency of our foreign subsidiaries is the U.S. dollar. Transactions denominated in non-functional currencies are remeasured to the functional currency at the average exchange rate for the period. Non-functional currency monetary assets and liabilities are remeasured to the functional currency using the exchange rate in effect at the balance sheet date, and non-monetary assets and liabilities are remeasured at historical exchange rates. Gains and losses related to remeasurement are recorded in interest and other income, net in the consolidated statements of operations. Income Taxes We account for income taxes using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in our consolidated financial statements or in our tax returns. Estimates and judgments occur in the calculation of certain tax liabilities and in the determination of the recoverability of certain deferred income tax assets, which arise from temporary differences and carryforwards. Deferred income tax assets and liabilities are measured using the currently enacted tax rates that apply to taxable income in effect for the years in which those tax assets are expected to be realized or settled. We regularly assess the likelihood that our deferred tax assets will be recovered from future taxable income and, to the extent we believe, based upon the weight of available evidence, that it is more likely than not that all or a portion of deferred tax assets will not be realized, a valuation allowance is established through an adjustment to income tax expense. The factors used to assess the likelihood of realization of our deferred tax assets include our forecast of future taxable income and available tax planning strategies that could be implemented to realize the net deferred tax assets. Assumptions represent our best estimates and involve inherent uncertainties and the application of our judgment. We account for uncertainty in income taxes recognized in our consolidated financial statements by regularly reviewing our tax positions and benefits to be realized. We recognize tax liabilities based upon our estimate of whether, and the extent to which, additional taxes will be due when such estimates are more-likely-than-not to be sustained. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained upon examination by taxing authorities. The provision for income taxes excludes the effects of any resulting tax reserves, or unrecognized tax benefits, that are considered appropriate as well as the related net interest and penalties. Advertising Costs Advertising costs are expensed when incurred. Advertising costs were $0.4 million, $0.5 million and $0.7 million for the years ended December 31, 2020, 2019 and 2018, respectively. Segment Information An operating segment is a component of an enterprise for which its discrete financial information is available and its operating results are regularly reviewed by our chief operating decision maker for resource allocation decisions and performance assessment. Our chief operating decision maker is our Chief Executive Officer. Our Chief Executive Officer reviews financial information presented on a consolidated basis for purposes of allocating resources and assessing performance of the Company. Accordingly, we have one reportable segment and one operating segment. Vendor Business Concentration We rely on third parties to manufacture our hardware appliances and we purchase raw materials from third-party vendors. We outsource substantially all of our manufacturing services to three independent manufacturers. In addition, we purchase certain strategic component inventory which is consigned to our third-party manufacturers. Other hardware components included in our products are sourced from various suppliers by our manufacturers and are principally industry standard parts and components that are available from multiple vendors. 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 (“end-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: Years Ended December 31, 2020 2019 2018 Customer A (a distribution channel partner) * * 14% Customer B (a distribution channel partner) * 12% 10% Customer C (a distribution channel partner) * 14% * Customer D (a distribution channel partner) 10% * * * represents less than 10% of total revenue As of December 31, 2020, two customers accounted for 17% and 10% of our total gross accounts receivable. As of December 31, 2019, two customers accounted for 17% and 12% of our total gross accounts receivable. Recently Adopted Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), as subsequently amended, which supersedes the revenue recognition requirements in Accounting Standards Codification (“ASC”) Topic 605, Revenue Recognition . This ASU requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This ASU also includes Subtopic 340-40, Other Assets and Deferred Costs - Contracts with Customers, which requires the capitalization of incremental customer acquisition costs and amortization of these costs over the contract period or estimated customer life which resulted in the recognition of a deferred commission asset on our consolidated balance sheet. The Company adopted ASU No. 2014-09 and its related amendments (collectively “ASC 606”) on January 1, 2018 using the modified retrospective method. See Note 2 Revenue, for disclosure on the impact of adopting this standard. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), and subsequent amendments to the initial guidance, in order to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet for those leases classified as operating leases under prior generally accepted accounting principles. ASU No. 2016-02, as amended, requires that a lessee recognize a liability to make lease payments (the lease liability) and a right-of-use asset (“ROU”) representing its right to use the underlying asset for the lease term on the balance sheet. The Company adopted the standard effective January 1, 2019, using the modified retrospective method, which resulted in the recognition of right-of-use assets of approximately $6.0 million and lease liabilities for operating leases of approximately $6.8 million on the Company’s consolidated balance sheets, with no material impact to its consolidated statements of operations. See Note 5 Leases, for further information regarding the impact of the adoption of ASU No. 2016-02 on the Company's consolidated financial statements. 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 consolidated financial statements. In January 2017, the 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 did not have a material impact on the Company’s consolidated financial statements. In March 2018, the FASB issued ASU No. 2018-05, Income Taxes (Topic 740) : Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin (“SAB”) No. 118. These amendments add SEC guidance to the FASB Accounting Standards Codification regarding the Tax Cuts and Jobs Act pursuant to the issuance of SAB 118. The amendments are effective upon addition to the FASB Codification and did not have a material impact on the Company’s 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) (“ASU 2018-13”). Under ASU 2018-13, 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 adoption of ASU 2018-13 did not have a significant impact on the Company’s consolidated financial statements. In November 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes . The amendments in this update improve consistent application of and simplify U.S. GAAP for Topic 740 by clarifying and amending existing guidance for, among other items, intra-period allocation, reporting tax law changes and losses in interim periods, state and local taxes not fully based on income and recognition of deferred tax liability related to certain transactions. There is also new guidance related to consolidated group reporting and tax impacts resulting from business combinations. The guidance is effective for public entities for fiscal years beginning after December 15, 2020 and for interim periods within those fiscal |
Marketable Securities and Fair
Marketable Securities and Fair Value Measurements | 12 Months Ended |
Dec. 31, 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): December 31, 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 $ 2,150 $ — $ — $ 2,150 $ 10,548 $ 10 $ — $ 10,558 Corporate securities 45,070 83 (8) 45,145 51,745 207 (1) 51,951 U.S. Treasury and agency securities 9,493 12 — 9,505 9,222 3 — 9,225 Commercial paper 12,136 — — 12,136 500 — 500 Asset-backed securities 5,904 11 — 5,915 11,914 32 — 11,946 Total $ 74,753 $ 106 $ (8) $ 74,851 $ 83,929 $ 252 $ (1) $ 84,180 During the years ended December 31, 2020 and 2019, the Company 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 December 31, 2020 (in thousands): Amortized Cost Fair Value Less than 1 year $ 58,717 $ 58,754 Mature in 1 - 3 years 16,036 16,097 Total $ 74,753 $ 74,851 All available-for-sale securities are classified as current because they are available for use in current operations. Marketable securities in an unrealized loss position consisted of the following (in thousands): Less Than 12 Months 12 Months or More Total As of December 31, 2020 Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Certificates of deposit $ — $ — $ — $ — $ — $ — Corporate securities 20,355 (8) — — 20,355 (8) U.S. Treasury and agency securities — — — — — — Commercial paper — — — — — — Asset-backed securities — — — — — — Total $ 20,355 $ (8) $ — $ — $ 20,355 $ (8) 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 Certificates of deposit $ — $ — $ — $ — $ — $ — Corporate securities 2,996 (1) — — 2,996 (1) U.S. Treasury and agency securities — — — — — — Commercial paper — — — — — — Asset-backed securities — — — — — — Total $ 2,996 $ (1) $ — $ — $ 2,996 $ (1) Based on evaluation of securities that have been in a continuous loss position, the Company determined all gross unrealized losses on its marketable securities as of December 31, 2020 were temporary in nature and related primarily to interest rate shifts rather than changes in the underlying credit quality of the securities in a loss position. The Company has the ability to hold these investments until maturity, or for at least the foreseeable future. As such, no decline has been deemed to be other-than-temporary by the Company. Fair Value Measurements The following is a summary of the Company’s cash, cash equivalents and marketable securities measured at fair value on a recurring basis (in thousands): December 31, 2020 December 31, 2019 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash $ 62,388 $ — $ — $ 62,388 $ 35,546 $ — $ — $ 35,546 Cash equivalents 20,893 — — 20,893 10,196 — — 10,196 Certificates of deposit — 2,150 — 2,150 — 10,558 — 10,558 Corporate securities — 45,145 — 45,145 — 51,951 — 51,951 U.S. Treasury and agency securities — 9,505 — 9,505 — 9,225 — 9,225 Commercial paper — 12,136 — 12,136 — 500 — 500 Asset-backed securities — 5,915 — 5,915 — 11,946 — 11,946 Total $ 83,281 $ 74,851 $ — $ 158,132 $ 45,742 $ 84,180 $ — $ 129,922 There were no transfers between Level 1 and Level 2 fair value measurement categories during the years ended December 31, 2020 and 2019. |
Revenue Revenue
Revenue Revenue | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue ASC 606 Adoption Impact On January 1, 2018, the Company adopted ASC 606 applying the modified retrospective method. The Company recognized the cumulative effect of initially applying the new guidance as an adjustment to the opening balance of accumulated deficit as of the adoption date. The Company applied ASC 606 to all contracts that were not completed at the date of initial application. Comparative information for prior periods has not been restated and continues to be reported under the accounting standards in effect for those periods. In connection with the adoption of ASC 606, the Company also adopted ASC No. 340-40, Other Assets and Deferred Costs - Contracts with Customers , which requires the deferral of incremental costs of obtaining a contract with a customer. Collectively, ASC No. 606 and ASC No. 340-40 are referred to as the “new standard.” Adoption of the new standard resulted in changes to the Company’s accounting policies for revenue recognition, commissions expense and deferred commissions as discussed below. The Company recorded a reduction to opening accumulated deficit of $12.4 million as of January 1, 2018 due to the cumulative impact of adopting the new standard as follows: • A decrease in total deferred revenue of $4.0 million primarily due to the removal of the limitation on contingent revenue that would have accelerated revenue recognition for certain of our historical revenue contracts; and • Recognition of a deferred commissions asset of $8.4 million on our consolidated balance sheet due to the requirement under the new standard to recognize incremental customer acquisition costs in our consolidated statement of operations as the related performance obligations are met as compared to the previous recognition to expense as incurred. Impact on the Consolidated Financial Statements The following table summarize the impact of ASC 606 on the Company’s Consolidated Statement of Operations for the year ended December 31, 2018: Selected Consolidated Statement of Operations Line Items Year Ended December 31, 2018 (in thousands, except per share amounts) As Reported Adjustments Increase (Decrease) Balance Without Adopting the New Standard Revenue - products $ 144,682 $ (2,594) $ 142,088 Revenue - services 87,541 — 87,541 Total revenue 232,223 (2,594) 229,629 Gross profit 180,327 (2,594) 177,733 Sales and marketing 103,214 1,345 104,559 Total operating expenses 208,006 1,345 209,351 Loss from operations (27,679) (3,939) (31,618) Net loss (27,617) (3,939) (31,556) Basic and diluted net loss per share $ (0.38) $ (0.43) Contract Balances The following table reflects contract balances with customers (in thousands): As of As of Balance Sheet Line Reference December 31, 2020 December 31, 2019 Accounts receivables, net $ 51,051 $ 53,566 Deferred revenue, current 65,999 62,233 Deferred revenue, non-current 42,700 38,931 The Company receives payment from customers based upon billing cycles. Invoice payment terms typically range from 30 to 90 days. Accounts receivable are recorded when the right to consideration becomes unconditional. Contract assets include amounts related to the Company’s contractual right to consideration for performance obligations not yet billed, and are included in prepaid and other current assets in the Company’s Consolidated Balance Sheets. The contract assets amount was immaterial as of December 31, 2020 and 2019. Deferred revenue primarily consists of amounts that have been invoiced but not yet recognized as revenue and consists of performance obligations pertaining to support and subscription services. During the years ended December 31, 2020 and 2019, the Company recognized revenue of $61.8 million and $63.2 million, respectively, related to deferred revenue at the beginning of the period. Deferred revenue consisted of the following (in thousands): December 31, December 31, Deferred revenue: Products $ 7,358 $ 6,593 Services 101,341 94,571 Total deferred revenue 108,699 101,164 Less: current portion (65,999) (62,233) Non-current portion $ 42,700 $ 38,931 Deferred Contract Acquisition Costs As of December 31, 2020, the current and non-current portions of deferred contract acquisition costs totaled $5.3 million and $3.7 million, respectively, and the related amortization was $6.5 million for the year ended December 31, 2020. As of December 31, 2019, the current and non-current portions of deferred contract acquisition costs totaled $6.2 million and $3.3 million, respectively, and the related amortization was $7.4 million for the year ended December 31, 2019. For the years ended December 31, 2020, 2019 and 2018, the Company had no impairment loss in relation to the costs capitalized and no asset impairment charges related to contract assets. Remaining Performance Obligations Remaining performance obligations represent contracted revenues that are non-cancellable and have not yet been recognized due to unsatisfied or partially satisfied performance obligations, which include deferred revenues and amounts that will be invoiced and recognized as revenues in future periods. The Company expects to recognize revenue on the remaining performance obligations as follows (in thousands): December 31, 2020 Within 1 year $ 65,999 Next 2 to 3 years 32,824 Thereafter 9,876 Total $ 108,699 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | The Company leases various facilities in the United States, Asia and Europe under non-cancellable operating lease arrangements that expire on various dates through July 2027. These arrangements require the Company 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 December 31, 2020 (in thousands): December 31, 2020 Operating leases Right-of-use assets: Other non-current assets $ 28,240 Total right-of-use assets $ 28,240 Lease liabilities: Accrued liabilities $ 5,260 Other non-current liabilities 23,498 Total operating lease liabilities $ 28,758 The aggregate future lease payments for the Company’s operating leases as of December 31, 2020 were as follows (in thousands): 2021 $ 6,064 2022 4,840 2023 4,414 2024 4,518 2025 4,625 Thereafter 7,148 Total lease payments 31,609 Less: imputed interest (2,851) Present value of lease liabilities $ 28,758 The components of lease costs were as follows (in thousands): Year Ended Operating lease costs $ 6,548 Short-term lease costs 254 Total lease costs $ 6,802 Average lease terms and discount rates for the Company’s operating leases were as follows (in thousands): December 31, 2020 Weighted-average remaining term (in years) 6.2 Weighted-average discount rate 3.14 % Supplemental cash flow information for the Company’s operating leases were as follows (in thousands): Year Ended Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 6,291 Right-of-use assets obtained in exchange for new lease liabilities $ 868 Corporate Headquarters Lease On May 2, 2019, the Company entered into a sublease agreement (the “Sublease”) with Marvell Semiconductor, Inc. (“Sublandlord”) for its corporate headquarters and research and development space located at 2300 Orchard Parkway, San Jose, California, 95131 (the “Premises”). The term of the Sublease is approximately eight years and began on December 1, 2019, the date the Company commenced business operations at the Premises. The Sublease provides for monthly base rent of approximately $262,000 per month for the first year with annual increases thereafter. The total base rent through the end of the term of the Sublease will total approximately $33.8 million. In addition to base rent, the Company will also be responsible for operating and other facility expenses. The Company has accounted for the lease under ASC 842 and recorded a right-of-use asset of $30.0 million included in other non-current assets and recorded lease liabilities of $3.3 million and $26.7 million, included in accrued liabilities and other non-current liabilities, respectively, in the consolidated balance sheets as of December 31, 2019. |
Restructuring (Notes)
Restructuring (Notes) | 12 Months Ended |
Dec. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring In October 2019, the Company implemented a restructuring plan (the “2019 restructuring plan”) in its ongoing efforts to reduce operating costs and focus on advanced technologies. Expense related to the 2019 restructuring plan was accrued for in 2019, which resulted in a reduction of approximately 5% of the Company’s workforce and the closure and consolidation of certain U.S. and international office facilities. The Company recorded restructuring expenses of $2.5 million in the fourth quarter of 2019, which included the following (in thousands): Cost of revenue Sales and marketing Research and development General and administrative Total restructuring expense Employee severance and related payroll taxes $ 28 $ 1,355 $ 340 $ 194 $ 1,917 Facilities closure expenses 435 89 524 Legal fees 89 89 $ 28 $ 1,790 $ 429 $ 283 $ 2,530 |
Other Balance Sheet Accounts De
Other Balance Sheet Accounts Details | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Other Balance Sheet Accounts Details | Other Balance Sheet Accounts Details Allowance for Doubtful Accounts The following table presents the changes in the Company’s allowance for doubtful accounts (in thousands): December 31, December 31, Allowance for doubtful accounts, beginning balance $ 52 $ 319 Increase (decrease) of provision 78 (72) Write-offs (89) (195) Allowance for doubtful accounts, ending balance $ 41 $ 52 Inventory Inventory consisted of the following (in thousands): December 31, December 31, Raw materials $ 8,395 $ 9,495 Finished goods 12,335 12,889 Total inventory $ 20,730 $ 22,384 Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following (in thousands): December 31, December 31, Prepaid expenses $ 3,818 $ 6,163 Deferred contract acquisition costs 5,345 6,231 Other 3,227 2,673 Prepaid expenses and other current assets $ 12,390 $ 15,067 Property and Equipment, Net Property and equipment, net, consisted of the following (in thousands): Useful Life December 31, December 31, (in years) Equipment 1-3 $ 25,286 $ 22,702 Software 1-3 765 726 Furniture and fixtures 1-3 652 459 Leasehold improvements 1-7 3,616 5,440 Construction in progress 1,677 — Property and equipment, gross 31,996 29,327 Less: accumulated depreciation (24,108) (21,671) Property and equipment, net $ 7,888 $ 7,656 Depreciation expense on property and equipment was $4.2 million, $5.0 million and $6.4 million for the years ended December 31, 2020, 2019 and 2018, respectively. Intangible Assets Purchased intangible assets, net, consisted of the following (in thousands): December 31, 2020 December 31, 2019 Cost Accumulated Amortization Net Cost Accumulated Amortization Net Developed technology $ 5,050 $ (4,545) $ 505 $ 5,050 $ (3,535) $ 1,515 Patents 2,936 (2,579) 357 2,936 (2,146) 790 Total $ 7,986 $ (7,124) $ 862 $ 7,986 $ (5,681) $ 2,305 Amortization expense related to purchased intangible assets was $1.4 million for each of the years ended December 31, 2020, 2019 and 2018. Purchased intangible assets will be amortized over a remaining weighted average useful life of 0.6 years. Future amortization expense for purchased intangible assets as of December 31, 2020 is as follows (in thousands): Fiscal Year 2021 862 Other non-current assets Other non-current assets consisted of the following (in thousands): December 31, December 31, Right-of-use assets $ 28,240 $ 33,014 Deferred contract acquisition costs 3,714 3,297 Deposits 2,746 2,338 Net deferred tax assets 944 1,171 Other 2,807 2,026 Total other non-current assets $ 38,451 $ 41,846 Accrued Liabilities Accrued liabilities consisted of the following (in thousands): December 31, December 31, Accrued compensation and benefits $ 19,725 $ 12,227 Accrued tax liabilities 3,748 4,354 Lease liabilities 5,260 5,109 Other 8,197 6,066 Total accrued liabilities $ 36,930 $ 27,756 Other Non-Current Liabilities Other non-current liabilities consisted of the following (in thousands): December 31, 2020 December 31, 2019 Lease liabilities $ 23,498 $ 28,046 Other 859 708 Total other non-current liabilities $ 24,357 $ 28,754 |
Credit Facility
Credit Facility | 12 Months Ended |
Dec. 31, 2020 | |
Line of Credit Facility [Abstract] | |
Credit Facility | Credit Facility In November 2016, the Company entered into a loan and security agreement (the “2016 Credit Facility”) with Silicon Valley Bank (“SVB”) as the lender. The 2016 Credit Facility provided a three In September 2018, the Company entered into an amendment with SVB to reduce the unused revolving credit facility fee on the 2016 Credit Facility from 0.4% to 0.3%. The Company’s obligations under the 2016 Credit Facility were secured by substantially all of the Company’s assets, excluding intellectual property. The 2016 Credit Facility required the Company to maintain compliance with customary affirmative and negative covenants, including compliance with an adjusted quick ratio of not less than 1.50:1.00, and restricted the Company’s ability to pay cash dividends or make other distributions on our common stock. The Company elected to allow the 2016 Credit Facility to expire without renewal on the maturity date of November 1, 2019. There were no outstanding loans or advances as of the maturity date. The Company currently has no plans to enter into any new borrowing facilities. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Proceedings Litigation From time to time, we may be party or subject to various legal proceedings and claims, either asserted or unasserted, which arise in the ordinary course of business. Some of these proceedings involve claims that are subject to substantial uncertainties and unascertainable damages. We make a provision for a liability when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Unless otherwise specifically disclosed in this note, we have determined that no provision for liability nor disclosure is required related to any claim against us because: (a) there is not a reasonable possibility that a loss exceeding amounts already recognized (if any) may be incurred with respect to such claim; (b) a reasonably possible loss or range of loss cannot be estimated; or (c) such estimate is immaterial. On March 22, 2018, the Company, and certain of its current and former executive officers, were named as defendants in a putative class action lawsuit filed in the United States District Court for the Northern District of California, captioned Shah v. A10 Networks, Inc. et al., 3:18-cv-01772-VC (the “Securities Action”). On August 31, 2018, the court appointed a lead plaintiff. On October 5, 2018, the lead plaintiff filed an amended complaint. The amended complaint named the same defendants as the initial complaint, in addition to one of the Company’s former executive vice presidents. The amended complaint asserted claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. The Company and individual defendants filed motions to dismiss the amended complaint. On February 21, 2019, the court granted the motions to dismiss with leave to amend within 21 days. The lead plaintiff did not file an amended complaint by the Court-ordered deadline. Instead, on March 21, 2019, the lead plaintiff filed a notice of appeal in the United States Court of Appeals for the Ninth Circuit. On April 5, 2019, the clerk of court suspended briefing on the appeal and ordered that, by April 26, 2019, appellants shall either move for voluntary dismissal or show cause why the appeal should not be dismissed for lack of jurisdiction. On April 25, 2019, appellants moved to voluntarily dismiss the appeal without prejudice, and that motion was granted on May 1, 2019. The district court entered final judgment dismissing lead plaintiff’s claims on May 8, 2019. The lead plaintiff subsequently filed a notice of appeal on June 6, 2019. The parties filed a stipulated motion to voluntarily dismiss the appeal on October 7, 2019, with each side to bear its own costs. The Court of Appeals granted the stipulated motion to dismiss on October 10, 2019. On May 30, 2018, certain of our current and former directors and officers were named as defendants in a putative shareholder derivative lawsuit filed in the United States District Court for the Northern District of California, captioned Moulton v. Chen et al., 3:18-cv-03223-VC (the “Derivative Action”). We were also named as a nominal defendant. The complaint in the Derivative Action alleged breaches of fiduciary duties and other related claims in connection with purported misrepresentations related to internal controls and revenues and alleged failures to ensure that financial statements were made in accordance with generally accepted accounting principles. Plaintiff sought unspecified damages allegedly sustained by the Company, restitution, and other relief. On July 11, 2018 the Derivative Action was stayed until a motion to dismiss in the Securities Action was granted with prejudice or denied in whole or in part. Following dismissal of the Securities Action, the plaintiff voluntarily dismissed his claims on June 7, 2019. Investigations The U.S. Securities and Exchange Commission (“SEC”) conducted a private investigation into possible violations of Section 17(a) of the Securities Act of 1933 and Sections 10(b), 13(a), and 13(b) of the Securities Exchange Act of 1934 (“Exchange Act”) and Rules 10b-5, 12b-20, 13a-1, 13a-11, 13a-13, 13a-14, 13a-15, and 13b2-1 thereunder. The Company cooperated with the SEC regarding this investigation. The SEC staff informed the Company on September 6, 2019 that it had concluded its investigation and did not intend to recommend an enforcement action to the SEC. Lease Commitments The Company leases 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. The Company recognizes rent expense under these arrangements on a straight-line basis over the term of the lease. The Company has 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. The following table summarizes our non-cancelable operating leases as of December 31, 2020 (in thousands): Years Ending December 31, Operating Leases and Other Contractual Obligation 2021 $ 6,064 2022 4,840 2023 4,414 2024 4,518 2025 4,625 Thereafter 7,148 Total $ 31,609 Rent expense was $6.7 million, $4.8 million and $4.5 million for the years ended December 31, 2020, 2019 and 2018, respectively. 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 indemnifications 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, Stock-B
Equity Incentive Plans, Stock-Based Compensation and Stock Repurchase Program | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Equity Incentive Plans, Stock-Based Compensation and Stock Repurchase Program | Equity Incentive Plans, Stock-Based Compensation and Stock Repurchase Program 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”), market performance-based RSUs (“PSUs”), stock appreciation rights, performance units and performance shares to our employees, consultants and members of our board of directors. In June 2015, our board of directors adopted and our stockholders approved an amendment and restatement of the 2014 Plan, which increased the number of shares available for issuance under the 2014 Plan by the number of shares granted under the 2008 Stock Plan (the “2008 Plan”) that were or may in the future be canceled or otherwise forfeited or repurchased after March 20, 2014. As of December 31, 2020, we had 10,725,127 shares available for future grant under the 2014 Plan. The shares authorized for the 2014 Plan increase annually by the least of (i) 8,000,000 shares, (ii) 5% of the outstanding shares of common stock on the last day of our immediately preceding fiscal year, or (iii) such other amount as determined by our Board of Directors. In November 2020, our Board of Directors determined the current shares authorized under the 2014 Plan were sufficient for the time being and decided not to increase the number of shares authorized in 2021. To date, the Company has granted stock options, RSUs and PSUs under the 2014 Plan. Stock options expire no more than 10 years from the grant date and generally vest over four years. In the case of an incentive stock option granted to an employee, who at the time of grant, owns stock representing more than 10% of the total combined voting power of all classes of stock, the per share exercise price will be no less than 110% of the fair market value per share on the date of grant, and the incentive stock option will expire no later than five one 2014 Employee Stock Purchase Plan The 2014 Employee Stock Purchase Plan (the “2014 Purchase Plan”) was suspended effective March 16, 2018 due to the delay of the Form 10-K filing for the year ended December 31, 2017. In October 2018, the Board of Directors approved amending the 2014 Purchase Plan (the “Amended 2014 Purchase Plan”) in order to, among other things, reduce the maximum contribution participants can make under the plan from 15% to 10% of eligible compensation. The Amended 2014 Purchased Plan also reflects revised offering periods, which were changed from 24 months to six months in duration and that begin on or about December 1 and June 1 each year, starting in December 2018. The Amended 2014 Purchase Plan permits eligible employees to purchase shares of our common stock through payroll deductions with up to 10% of their pre-tax eligible earnings subject to certain Internal Revenue Code (“IRC”) limitations. The purchase price of the shares is 85% of the lower of the fair market value of our common stock on the first day of a six-month offering period or the relevant purchase date. In addition, no participant may purchase more than 1,500 shares of common stock in each purchase period. Employees purchased 581,634 shares at an average price of $5.67 and with an aggregate intrinsic value of $1.0 million during the year ended December 31, 2020, and purchased 662,362 shares at an average price of $5.14 and with an intrinsic value of $0.8 million during the year ended December 31, 2019. During 2018, there were no stock purchases by employees under the Amended 2014 Purchase Plan or the 2014 Purchase Plan. The intrinsic value is calculated as the difference between the market value on the date of purchase and the purchase price of the shares. As of December 31, 2020, we had 1,821,186 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): Years Ended December 31, 2020 2019 2018 Stock-based compensation by type of award: Stock options $ 209 $ 648 $ 1,353 Stock awards 10,938 14,882 10,445 Employee stock purchase rights (1) 1,163 999 5,240 Total $ 12,310 $ 16,529 $ 17,038 Stock-based compensation by category of expense: Cost of revenue $ 1,357 $ 1,500 $ 1,602 Sales and marketing 3,018 5,765 5,667 Research and development 4,241 6,039 6,631 General and administrative 3,694 3,225 3,138 Total $ 12,310 $ 16,529 $ 17,038 (1) Amount for the year ended December 31, 2018 includes $4.1 million of accelerated stock-based compensation expense. In March 2018, as a result of a suspension of the 2014 Purchase Plan due to our non-timely filing status, all unrecognized stock-based compensation expense related to ESPP under the 2014 Purchase Plan was accelerated and recognized within the consolidated statement of operations. As of December 31, 2020, the Company had $24.4 million of unrecognized stock-based compensation expense related to unvested stock-based awards, including ESPP under our Amended 2014 Purchase Plan, which will be recognized over a weighted-average period of 2.7 years. Fair Value Determination: The fair values of stock options and employee stock purchase rights were estimated as of the grant date using the Black-Scholes option-pricing model with the following assumptions: Stock Options (1) Employee Stock Purchase Rights Year Ended December 31, Years Ended December 31, 2018 2020 2019 2018 Expected term (in years) 4.8 0.5 0.5 0.5 Risk-free interest rate 3.1% 0.1% 2.3% 2.6% Expected volatility 37% 59% 34% 28% Dividend rate —% —% —% —% (1) The Company did not grant stock options in the years ended December 31, 2020 and 2019. • Expected Term . We estimate the expected life of options based on an analysis of our historical experience of employee exercise and post-vesting termination behavior considered in relation to the contractual life of the option. The expected term for the employee stock purchase rights is based on the term of the purchase period. • Risk-Free Interest Rate . The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for zero coupon U.S. Treasury notes with maturities approximately equal to the expected terms of stock options and the employee stock purchase rights. • Expected Volatility . For stock options, due to the limited trading history of our own common stock, we determined the share price volatility factor based on a combination of the historical volatility of our own common stock and the historical volatility of our peer group for the stock options. For employee stock purchase rights, we used the historical volatility of our own common stock. • Dividend Rate . The expected dividend was assumed to be zero as we have never paid dividends and do not anticipate paying any dividends in the foreseeable future. Stock Options The following tables summarize our stock option activities and related information: Number of Shares Weighted-Average Exercise Price Per Share Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value (1) (thousands) Outstanding as of December 31, 2019 3,702 $ 5.57 Granted — — Exercised (1,298) 4.85 Canceled (731) 7.15 Outstanding as of December 31, 2020 1,673 $ 5.44 2.67 $ 7,520 Vested and exercisable as of December 31, 2020 1,673 $ 5.44 2.67 $ 7,520 (1) The aggregate intrinsic value represents the excess of the closing price of our common stock of $9.86 as of December 31, 2020 over the exercise price of the outstanding in-the-money options. Following is additional information pertaining to our stock option activities (in thousands, except per share data): Years Ended December 31, 2020 2019 2018 Weighted-average grant date fair value of options granted (per share) $ — $ — $ 2.19 Intrinsic value of options exercised (1) $ 2,778 $ 1,930 $ 2,629 (1) Intrinsic value of options exercised is the difference between the closing price of our common stock at the time of exercise and the exercise price paid. Stock Awards The Company has granted RSUs to its employees, consultants and members of its Board of Directors, and PSUs to certain executives and employees. The Company’s PSUs have market performance-based vesting conditions as well as service-based vesting conditions. As of December 31, 2020, there were 3,753,620 RSUs and 1,134,103 PSUs outstanding. The following table summarizes our stock award activities and related information: Number of Shares Weighted-Average Grant Date Fair Value Per Share Weighted-Average Remaining Vesting Term Nonvested as of December 31, 2019 6,148 $ 6.59 Granted 2,018 6.74 Released (1,786) 6.79 Canceled (1,492) 6.56 Nonvested as of December 31, 2020 4,888 $ 6.59 2.13 Following is additional information pertaining to our stock award activities (in thousands, except per share data): Years Ended December 31, 2020 2019 2018 Weighted-average grant date fair value of stock awards granted (per share) $ 6.74 $ 6.74 $ 5.95 Total fair value of stock awards released (vested) during the period $ 12,129 $ 12,183 $ 9,714 Repurchase Agreement 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 repurchased 2.2 million shares of common stock from Mr. Chen for approximately $13.3 million. The common shares repurchased are held in treasury and accounted for under the cost method. Stock Repurchase Program On September 17, 2020, the Company’s Board of Directors approved a stock repurchase program of up to $50 million of its common stock over a period of twelve months. During the year ended December 31, 2020, the Company repurchased a total of 2.7 million shares for a total cost of $19.2 million and as of December 31, 2020, the Company had $30.8 million available to repurchase shares under this program. Under the program, repurchased shares are held in treasury at cost. The Company’s stock repurchase program does not obligate us to acquire any specific number of shares. Shares may be repurchased in privately negotiated and/or open market transactions, including under plans complying with Rule 10b5-1 under the Exchange Act. To date, all repurchases under this program have occurred in the open market. |
Net Loss Per Share
Net Loss Per Share | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | 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 is computed using the weighted average number of common shares outstanding for the period plus potential dilutive common shares, including stock options, RSUs, PSUs and employee stock purchase rights, unless the potential common shares are anti-dilutive. Since we had net losses in the years ended December 31, 2019 and 2018, none of the potential dilutive common shares were included in the computation of diluted shares for these periods, as inclusion of such shares would have been anti-dilutive. The following table presents common shares related to potentially dilutive shares excluded from the calculation of diluted net income (loss) per share as their effect would have been anti-dilutive (in thousands): Years Ended December 31, 2020 2019 2018 Stock options, RSUs, PSUs and employee stock purchase rights 822 9,199 9,621 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The geographical breakdown of income (loss) before income taxes is as follows (in thousands): Years Ended December 31, 2020 2019 2018 Domestic income (loss) $ 15,455 $ (20,345) $ (29,658) Foreign income 3,684 3,933 3,123 Income (loss) before income taxes $ 19,139 $ (16,412) $ (26,535) The provision for income taxes consisted of the following (in thousands): Years Ended December 31, 2020 2019 2018 Current provision for income taxes: State $ 40 $ 49 $ 44 Foreign 1,057 1,716 953 Total current 1,097 1,765 997 Deferred tax expense (benefit): Federal 2 3 (13) Foreign 224 (361) 98 Total deferred 226 (358) 85 Provision for income taxes $ 1,323 $ 1,407 $ 1,082 The reconciliation of the statutory federal income taxes and the provision for income tax is as follows (in thousands, except percentages): Years Ended December 31, 2020 2019 2018 Amount Percentage Amount Percentage Amount Percentage Tax at statutory rate $ 4,019 21.0 % $ (3,447) 21.0 % $ (5,572) 21.0 % State tax - net of federal benefits 31 0.2 42 (0.3) 39 (0.1) Foreign rate differential 507 2.6 363 (2.2) 258 (1.0) Changes in federal valuation allowance (3,281) (17.1) 4,695 (28.6) 6,430 (24.2) Change in federal tax rate due to Tax Cuts and Jobs Act — — — — — — Stock-based compensation 781 4.1 578 (3.5) 1,950 (7.3) Non-deductible meals and entertainment expenses 219 1.2 287 (1.8) 342 (1.3) Other permanent items 364 1.9 257 (1.6) 351 (1.3) Federal tax credits - net of uncertain tax positions (1,035) (5.4) (1,809) 11.0 (2,634) 9.9 Expenses for uncertain tax positions — — 166 (1.0) 137 (0.5) Other (282) (1.5) 275 (1.6) (219) 0.7 $ 1,323 7.0 % $ 1,407 (8.6) % $ 1,082 (4.1) % Deferred tax balances are comprised of the following (in thousands): December 31, December 31, Deferred tax assets: Net operating loss carryforwards $ 42,251 $ 46,273 Research and development credits, net of uncertain tax positions 27,743 25,386 Accruals, reserves, and other 12,026 12,021 Stock-based compensation 2,362 3,306 Depreciation and amortization 1,537 2,219 Operating lease liability 6,049 7,061 Gross deferred tax assets 91,968 96,266 Valuation allowance (82,938) (85,743) Total deferred tax assets 9,030 10,523 Deferred tax liabilities: Deferred contract acquisition costs (2,068) (2,245) Operating lease right-of-use asset (5,996) (7,088) Other (22) (19) Total deferred tax liabilities (8,086) (9,352) Net deferred tax assets $ 944 $ 1,171 Recognition of deferred tax assets is appropriate when realization of these assets is more likely than not. Based upon the weight of available evidence, which includes our historical operating performance and the recorded cumulative net losses in prior fiscal periods, we recorded a full valuation allowance of $82.9 million and $85.7 million against the U.S. net deferred tax assets as of December 31, 2020 and 2019, respectively. For the years ended December 31, 2020 and 2019, the valuation allowance decreased by $2.8 million and increased by $7.1 million, respectively. As of December 31, 2020 and 2019, we had U.S. federal net operating loss (“NOL”) carryforwards of $177.0 million and $193.8 million, respectively, and state NOL carryforwards of $78.0 million and $84.6 million, respectively. The federal NOL carryforwards will expire at various dates beginning in the year ending December 31, 2033, if not utilized. The state NOL carryforwards expire in various years ending between 2023 and 2039, if not utilized. The Tax Cuts and Jobs Act of 2017 (the “Tax Act”), as modified by the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act, among other things, includes changes to the rules governing NOLs. NOLs arising in tax years beginning after December 31, 2017 are subject to an 80% of taxable income limitation (as calculated before taking the NOLs into account) for tax years beginning after December 31, 2020. In addition, NOLs arising in tax years 2018, 2019, and 2020 are subject to a five year carryback and indefinite carryforward, while NOLs arising in tax years beginning after December 31, 2020 also are subject to indefinite carryforward but cannot be carried back. Additionally, as of December 31, 2020 and 2019, we had U.S. federal research and development credit carryforwards of $16.4 million and $15.3 million, respectively, and state research and development credit carryforwards of $18.2 million and $16.4 million, respectively. The federal credit carryforwards will begin to expire at various dates beginning in 2025 while the state credit carryforwards can be carried over indefinitely. Utilization of the NOL and credit carryforwards may be subject to an annual limitation provided for in the IRC Section 382 and similar state codes. Any annual limitation could result in the expiration of NOL and credit carryforwards before utilization. With respect to our undistributed foreign subsidiaries’ earnings we consider those earnings to be indefinitely reinvested and, accordingly, no related provision for U.S. federal and state income taxes has been provided. Our intention has not changed subsequent to the one-time transition tax under the Tax Act. Upon distribution of those earnings in the form of dividends or otherwise, we may be subject to both U.S. income taxes subject to an adjustment for foreign tax credits and withholding taxes in the various countries. As of December 31, 2020 and 2019, the undistributed earnings approximated $16.0 million and $13.6 million, respectively. Our undistributed earnings through December 31, 2017, have been taxed under the one-time transition tax under the Tax Act. Uncertain Tax Positions As of December 31, 2020, 2019 and 2018, we had gross unrecognized tax benefits of $4.6 million, $4.4 million and $4.2 million, respectively. Accrued interest expense related to unrecognized tax benefits is not recognized as part of our income tax provision in our consolidated statements of operations and is immaterial for the years ended December 31, 2020 and 2019. Our policy for classifying interest and penalties associated with unrecognized income tax benefits is to exclude such items in income tax expense. The activity related to the unrecognized tax benefits is as follows (in thousands): Years Ended December 31, 2020 2019 2018 Gross unrecognized tax benefits—beginning balance $ 4,441 $ 4,191 $ 3,782 Increases (decreases) related to tax positions from prior years (268) (280) (266) Increases related to tax positions taken during current year 412 530 675 Decreases related to tax positions taken during the current year — — — Gross unrecognized tax benefits—ending balance $ 4,585 $ 4,441 $ 4,191 These amounts are related to certain deferred tax assets with a corresponding valuation allowance. As of December 31, 2020, the total amount of unrecognized tax benefits, if recognized, that would affect the effective tax rate is $0.8 million. 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. The Company is subject to taxation in the United States, various states, and several foreign jurisdictions. Because the Company has NOL 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. The Company is not currently under examination by any taxing authorities. On March 27, 2020, the Coronavirus Aid, Relief and Economic Security (“CARES”) Act was signed into law. The CARES Act includes provisions relating to refundable payroll tax credits, net operating loss carryback periods, alternative minimum tax credit refunds, modifications to the net interest deduction limitations and technical corrections to the tax depreciation methods for qualified improvement property. The CARES Act has an immaterial impact on the Company’s income taxes. |
Geographic Information
Geographic Information | 12 Months Ended |
Dec. 31, 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): Years Ended December 31, 2020 2019 2018 Americas $ 98,150 $ 89,944 $ 112,506 Japan 67,050 59,454 55,205 Asia Pacific, excluding Japan 29,760 35,689 36,897 EMEA 30,567 27,541 27,615 Total $ 225,527 $ 212,628 $ 232,223 The following table is a summary of our long-lived assets which include property and equipment, net and right-of-use assets based on the physical location of the assets (in thousands): December 31, December 31, Americas $ 32,558 $ 35,964 Japan 1,566 2,689 Other 2,004 2,017 Total $ 36,128 $ 40,670 |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plan The Company has a profit sharing plan that qualifies under Section 401(k) of the IRC which is offered to all of its United States employees. Participants in the plan may elect to contribute up to $19,500 of their annual compensation to the plan for the 2020 calendar year. Individuals who are 50 or older may contribute an additional $6,500 of their annual income. The Company typically matches 50% of the first 6% of the employee’s eligible compensation for a maximum employer contribution of $2,500 per participant per year. The Company temporarily suspended its employer matching contribution in June 2020 due to cost savings measures, although the Company re-instated its employer matching contributions effective March 1, 2021. The Company’s matching contributions totaled $0.4 million, $0.7 million and $1.0 million during the years ended December 31, 2020, 2019 and 2018, respectively. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data (Unaudited) | Selected Quarterly Financial Data (Unaudited) Selected quarterly financial data for 2020 and 2019 is as follows (in thousands, except per share amounts): Quarter Ended March 31, 2020 June 30, 2020 September 30, 2020 December 31, 2020 Revenue $ 53,764 $ 52,500 $ 56,608 $ 62,655 Gross profit $ 41,622 $ 41,078 $ 43,485 $ 49,194 Net income (loss) $ (297) $ 3,808 $ 6,464 $ 7,841 Net income (loss) per share - basic $ — $ 0.05 $ 0.08 $ 0.10 Net income (loss) per share - diluted $ — $ 0.05 $ 0.08 $ 0.10 Quarter Ended March 31, 2019 June 30, 2019 September 30, 2019 December 31, 2019 Revenue $ 50,290 $ 49,189 $ 52,833 $ 60,316 Gross profit $ 38,040 $ 37,918 $ 40,913 $ 46,876 Net income (loss) $ (12,272) $ (5,771) $ 173 $ 51 Net income (loss) per share - basic $ (0.16) $ (0.08) $ — $ — Net income (loss) per share - diluted $ (0.16) $ (0.08) $ — $ — |
Description of Business and S_2
Description of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of PresentationThe accompanying consolidated financial statements include those of A10 Networks, Inc. and its subsidiaries, and have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) and pursuant to the rules and regulations of the United States Securities and Exchange Commission (the “SEC”). All intercompany accounts and transactions have been eliminated in consolidation. |
Reclassifications | Reclassifications Certain prior year amounts have been reclassified to conform to current year presentation in the consolidated revenues by geographic region in Note 12 Geographic Information, in the notes to consolidated financial statements. We have combined in the “Americas” region, revenues from the United States with revenues from Latin America. A portion of the prior period balance for Additional paid-in capital on the Company’s consolidated 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. |
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 consolidated financial statements; therefore, actual results could differ from management’s estimates. |
Cash and Cash Equivalents | Cash and Cash EquivalentsCash and cash equivalents include bank deposits and short-term, highly liquid investments purchased with an original maturity of 90 days or less. Our cash equivalents consist of money market funds. |
Marketable securities | Marketable securities We classify our investments in debt securities as available-for-sale and record these investments at fair value. We may sell these investments at any time before their maturities. Accordingly, we classified our securities, including those with maturities exceeding twelve months, as current assets and included in marketable securities in the consolidated balance sheets. |
Fair Value Measurement | Fair Value Measurement Our financial instruments consist of cash, cash equivalents, marketable securities, accounts receivable and accounts payable. Our cash equivalents are measured and recorded at fair value on a recurring basis. Marketable securities are comprised of certificates of deposit, corporate securities, U.S. Treasury and agency securities, commercial paper and asset-backed securities and are measured at fair value on a recurring basis. Accounts receivable and accounts payable are stated at their carrying value, which approximates fair value due to the short time to the expected receipt or payment. Financial instruments recorded at fair value are measured and classified using the three-level valuation hierarchy as described below: Level 1 — observable inputs for identical assets or liabilities, such as quoted prices in active markets. Level 2 — inputs other than the quoted prices in active markets that are observable either directly or indirectly. Level 3 — unobservable inputs in which there is little or no market data, which requires us to develop our own assumptions when pricing the financial instruments. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful AccountsAccounts receivable are recorded at invoice amounts, net of allowances for doubtful accounts. We evaluate the collectability of our accounts receivable based on known collection risks and historical experience. In circumstances where we are aware of a specific customer’s inability to meet its financial obligations to us (for examples, bankruptcy filings or substantial downgrading of credit ratings), we record a specific reserve for bad debts against amounts due to reduce the net recognized receivable to the amount we reasonably believe will be collected. For all other customers, we record reserves for bad debts based on the length of time the receivables are past due and our historical experience of collections and write-offs. |
Inventory | InventoryInventory is stated at the lower of cost or net realizable value. Inventory cost is determined using first-in, first-out method. We evaluate inventory for excess and obsolete products, based on management’s assessment of future demand and market conditions. Inventory write-downs, once established, are not reversed as they establish a new cost basis for the inventory. Inventory write downs are included as a component of cost of products revenue in the consolidated statements of operations. |
Property and Equipment, Net | Property and Equipment, Net Property and equipment are stated at cost, less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets. Depreciation on property and equipment, excluding leasehold improvements, ranges from one Leasehold improvements are amortized on a straight-line basis over the shorter of the estimated useful lives of the assets or the remaining lease term. Amortization on leasehold improvements ranges from one |
Leases | Leases The Company determines if an arrangement is a lease at inception. For leases where the Company is the lessee, right-of-use (“ROU”) assets represent the Company’s right to use the underlying asset for the term of the lease and are included within other non-current assets in the consolidated balance sheets, and the lease liabilities represent an obligation to make lease payments arising from the lease and are recorded within accrued liabilities and other non-current liabilities in the consolidated balance sheets. Lease liabilities are recognized at the lease commencement date based on the present value of the future lease payments over the lease term. The Company uses its incremental borrowing rate based on the information available at the commencement date of the underlying lease arrangement to determine the present value of lease payments. The ROU asset is determined based on the lease liability initially established and reduced for any prepaid lease payments and any lease incentives received. The lease term to calculate the ROU asset and related lease liability includes options to extend or terminate the lease when it is reasonably certain that the Company will exercise the option. The Company’s lease agreements generally do not contain any material variable lease payments, residual value guarantees or restrictive covenants. The Company elected the package of practical expedients permitted under the transition guidance, which allowed for the carry-forward of the Company’s historical lease classification and assessment on whether a contract is or contains a lease. The Company elected to not apply the new standard’s recognition requirements to leases with an initial term of 12 months or less and instead elected to recognize lease payments in the consolidated statements of operations on a straight-line basis over the lease term. Lease expense for operating leases is recognized on a straight-line basis over the lease term as an operating expense while expense for financing leases is recognized as depreciation expense and interest expense using the accelerated interest method of recognition. The Company accounts for lease components and non-lease components as a single lease component. |
Goodwill | Goodwill Goodwill represents the excess of purchase consideration over the fair values of assets acquired and liabilities assumed in a business combination. Goodwill is not amortized but is reviewed for possible impairment annually in the fourth quarter or more frequently if impairment indicators arise. We have identified a single reporting unit for the purpose of our goodwill impairment tests, and the fair value of our reporting unit has been determined by our enterprise value. We may elect to utilize a qualitative assessment to determine whether it is more likely than not that the fair value of our reporting unit is less than its carrying value. If, after assessing the qualitative factors, we determine that it is more likely than not that the fair value of our reporting unit is less than its carrying value, an impairment analysis will be performed. We compare the fair value of our reporting unit with its carrying amount and if the carrying value of the reporting unit exceeds its fair value, an impairment loss will be recognized for the amount by which the carrying amount of a reporting unit exceeds its fair value up to the amount of goodwill. We did not identify impairment of goodwill for any periods presented. See the Recently Adopted Accounting Pronouncements section below for a discussion on the adoption of ASU 2017-04 in January 2020, which simplifies the goodwill impairment review process. |
Intangible Assets | Intangible Assets Intangible assets are recorded at fair value and amortized on a straight-line basis over their estimated useful lives, which range from 5 to 11 years. We evaluate our intangible assets for impairment at least annually and when indicators of impairment may exist. There were no impairment charges to our intangible assets during the years ended December 31, 2020, 2019 and 2018. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets We evaluate our property and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of our long-lived assets may not be recoverable. Recoverability of an asset group is measured by comparison of its carrying amount to the expected future undiscounted cash flows that the asset group is expected to generate. If it is determined that an asset group is not recoverable, an impairment loss is recorded in the amount by which the carrying amount of the asset group exceeds its fair value. |
Revenue Recognition | Revenue Recognition We recognize revenue, net of applicable taxes, when we transfer control of promised goods or services to our customers in an amount that reflects the consideration to which we expect to be entitled to in exchange for those goods or services. We derive revenue from two sources: (i) products revenue, which includes hardware, perpetual software license and subscription revenue; and (ii) services revenue, which includes post contract support (“PCS”), professional services, and training. A substantial portion of our revenue is from sales of our products and services through distribution channel partners, such as resellers and distributors. We apply the following five-step revenue recognition model: • Identification of the contract, or contracts, with a customer • Identification of the performance obligations in the contract • Determination of the transaction price • Allocation of the transaction price to the performance obligations in the contract • Recognition of revenue when, or as, performance obligations are satisfied. PCS revenue includes arrangements for software support and technical support for our products. PCS is offered under renewable, fee-based contracts, which include technical support, hardware repair and replacement parts, bug fixes, patches, and unspecified upgrades on a when-and-if available basis. Revenue for PCS services is recognized on a straight-line basis over the service contract term, which is typically one year, but can be up to five years as there is no discernible pattern of transfer related to these promises. Billed but unearned PCS revenue is included in deferred revenue. Professional service revenue primarily consists of the fees we earn related to installation and consulting services. We recognize revenue from professional services upon delivery or completion of performance. Professional service arrangements are typically short term in nature and are largely completed within 30 to 90 days from the start of service. Revenue is recognized for training when the training course is delivered. Contracts with Multiple Performance Obligations Most of our contracts with customers, other than renewals of PCS, contain multiple performance obligations with a combination of products and PCS. Products and PCS generally qualify as distinct performance obligations. Our hardware includes embedded ACOS software, which together deliver the essential functionality of our products. For contracts which contain multiple performance obligations, we allocate revenue to each distinct performance obligation based on the standalone selling price (“SSP”). Judgment is required to determine the SSP for each distinct performance obligation. We use a range of amounts to estimate SSP for products and PCS sold together in a contract to determine whether there is a discount to be allocated based on the relative SSP of the various products and PCS. If we do not have an observable SSP, such as when we do not sell a product or service separately, then SSP is estimated using judgment and considering all reasonably available information such as market conditions and information about the size and/or purchase volume of the customer. We generally use a range of amounts to estimate SSP for individual products and services based on multiple factors including, but not limited to the sales channel (reseller, distributor or end-customer), the geographies in which our products and services are sold, and the size of the end-customer. We account for multiple contracts with a single partner as one arrangement if the contractual terms and/or substance of those agreements indicate that they may be so closely related that they are, in effect, parts of a single contract. We may occasionally accept returns to address customer satisfaction issues even though there is generally no contractual provision for such returns. We estimate returns for sales to customers based on historical returns rates applied against current-period shipments. Specific customer returns and allowances are considered when determining our sales return reserve estimate. Our policy applies to the accounting for individual contracts. However, we have elected a practical expedient to apply the guidance to a portfolio of contracts or performance obligations with similar characteristics so long as such application would not differ materially from applying the guidance to the individual contracts (or performance obligations) within that portfolio. Consequently, we have chosen to apply the portfolio approach when possible, which we do not believe will happen frequently. Additionally, we will evaluate a portfolio of data, when possible, in various situations, including accounting for commissions, rights of return and transactions with variable consideration. We report revenue net of sales taxes. We include shipping charges billed to customers in revenue and the related shipping costs are included in cost of product revenue. Deferred Contract Acquisition Costs 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 in the consolidated statements of operations. |
Research and Development Costs | Research and Development CostsResearch and development efforts are focused on new product development and on developing additional functionality for our existing products. These expenses consist of personnel costs, and to a lesser extent, prototype materials, depreciation and certain allocated facilities and information technology costs. We expense research and development costs as incurred. |
Stock-Based Compensation | Stock-Based Compensation Stock-based compensation expense is measured on the grant date based on the fair value of the award and recognized on a straight-line basis over the requisite service period, reduced for actual forfeitures. The fair values of restricted stock units (“RSUs”) are estimated using our stock price on the grant date. The fair value of options and employee stock purchase rights is estimated using the Black-Scholes model on the grant date. The Black-Scholes model determines the fair value of share-based payment awards based on assumptions including expected term, stock price volatility, and risk-free interest rate. The fair value of market performance-based restricted stock units (“PSUs”) is valued using the Monte Carlo simulation model, which uses the stock price, expected volatility and risk-free interest rate to determine the fair value. |
Warranty Costs | Warranty Costs Our appliance hardware and software generally carry a warranty period of 90 days. Estimates of future warranty costs are based on historical returns and the application of the historical return rates to our in-warranty installed base. Warranty costs to repair or replace items sold to customers have been insignificant for the years ended December 31, 2020, 2019 and 2018. |
Foreign Currency | Foreign Currency The functional currency of our foreign subsidiaries is the U.S. dollar. Transactions denominated in non-functional currencies are remeasured to the functional currency at the average exchange rate for the period. Non-functional currency monetary assets and liabilities are remeasured to the functional currency using the exchange rate in effect at the balance sheet date, and non-monetary assets and liabilities are remeasured at historical exchange rates. Gains and losses related to remeasurement are recorded in interest and other income, net in the consolidated statements of operations. |
Income Taxes | Income Taxes We account for income taxes using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in our consolidated financial statements or in our tax returns. Estimates and judgments occur in the calculation of certain tax liabilities and in the determination of the recoverability of certain deferred income tax assets, which arise from temporary differences and carryforwards. Deferred income tax assets and liabilities are measured using the currently enacted tax rates that apply to taxable income in effect for the years in which those tax assets are expected to be realized or settled. We regularly assess the likelihood that our deferred tax assets will be recovered from future taxable income and, to the extent we believe, based upon the weight of available evidence, that it is more likely than not that all or a portion of deferred tax assets will not be realized, a valuation allowance is established through an adjustment to income tax expense. The factors used to assess the likelihood of realization of our deferred tax assets include our forecast of future taxable income and available tax planning strategies that could be implemented to realize the net deferred tax assets. Assumptions represent our best estimates and involve inherent uncertainties and the application of our judgment. We account for uncertainty in income taxes recognized in our consolidated financial statements by regularly reviewing our tax positions and benefits to be realized. We recognize tax liabilities based upon our estimate of whether, and the extent to which, additional taxes will be due when such estimates are more-likely-than-not to be sustained. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained upon examination by taxing authorities. The provision for income taxes excludes the effects of any resulting tax reserves, or unrecognized tax benefits, that are considered appropriate as well as the related net interest and penalties. |
Advertising Costs | Advertising CostsAdvertising costs are expensed when incurred. |
Segment Information | Segment Information An operating segment is a component of an enterprise for which its discrete financial information is available and its operating results are regularly reviewed by our chief operating decision maker for resource allocation decisions and performance assessment. Our chief operating decision maker is our Chief Executive Officer. Our Chief Executive Officer reviews financial information presented on a consolidated basis for purposes of allocating resources and assessing performance of the Company. Accordingly, we have one reportable segment and one operating segment. |
Vendor Business Concentration | Vendor Business Concentration We rely on third parties to manufacture our hardware appliances and we purchase raw materials from third-party vendors. We outsource substantially all of our manufacturing services to three independent manufacturers. In addition, we purchase certain strategic component inventory which is consigned to our third-party manufacturers. Other hardware components included in our products are sourced from various suppliers by our manufacturers and are principally industry standard parts and components that are available from multiple vendors. |
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. |
Recently Adopted Accounting Guidance/Recent Accounting Pronouncements Not Yet Effective | Recently Adopted Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), as subsequently amended, which supersedes the revenue recognition requirements in Accounting Standards Codification (“ASC”) Topic 605, Revenue Recognition . This ASU requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This ASU also includes Subtopic 340-40, Other Assets and Deferred Costs - Contracts with Customers, which requires the capitalization of incremental customer acquisition costs and amortization of these costs over the contract period or estimated customer life which resulted in the recognition of a deferred commission asset on our consolidated balance sheet. The Company adopted ASU No. 2014-09 and its related amendments (collectively “ASC 606”) on January 1, 2018 using the modified retrospective method. See Note 2 Revenue, for disclosure on the impact of adopting this standard. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), and subsequent amendments to the initial guidance, in order to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet for those leases classified as operating leases under prior generally accepted accounting principles. ASU No. 2016-02, as amended, requires that a lessee recognize a liability to make lease payments (the lease liability) and a right-of-use asset (“ROU”) representing its right to use the underlying asset for the lease term on the balance sheet. The Company adopted the standard effective January 1, 2019, using the modified retrospective method, which resulted in the recognition of right-of-use assets of approximately $6.0 million and lease liabilities for operating leases of approximately $6.8 million on the Company’s consolidated balance sheets, with no material impact to its consolidated statements of operations. See Note 5 Leases, for further information regarding the impact of the adoption of ASU No. 2016-02 on the Company's consolidated financial statements. 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 consolidated financial statements. In January 2017, the 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 did not have a material impact on the Company’s consolidated financial statements. In March 2018, the FASB issued ASU No. 2018-05, Income Taxes (Topic 740) : Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin (“SAB”) No. 118. These amendments add SEC guidance to the FASB Accounting Standards Codification regarding the Tax Cuts and Jobs Act pursuant to the issuance of SAB 118. The amendments are effective upon addition to the FASB Codification and did not have a material impact on the Company’s 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) (“ASU 2018-13”). Under ASU 2018-13, 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 adoption of ASU 2018-13 did not have a significant impact on the Company’s consolidated financial statements. In November 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes . The amendments in this update improve consistent application of and simplify U.S. GAAP for Topic 740 by clarifying and amending existing guidance for, among other items, intra-period allocation, reporting tax law changes and losses in interim periods, state and local taxes not fully based on income and recognition of deferred tax liability related to certain transactions. There is also new guidance related to consolidated group reporting and tax impacts resulting from business combinations. The guidance is effective for public entities for fiscal years beginning after December 15, 2020 and for interim periods within those fiscal years. The Company adopted this guidance effective January 1, 2021 and does not expect the adoption of this guidance to have a material impact on the Company’s consolidated financial statements. In October 2020, the FASB issued ASU No. 2020-10, Codification Improvements . The amendments in this ASU improve the consistency of the codification and reorganize the guidance into appropriate sections providing less opportunities for disclosures to be missed. The amendments in this update do not change GAAP and are not expected to result in a significant change in practice. The amendments in this ASU are effective for fiscal years beginning after December 15, 2020. Early adoption is permitted. The Company adopted this guidance on January 1, 2021 and does not expect the adoption of this guidance to have a material impact on the Company’s consolidated financial statements. |
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, we began capitalizing software engineering labor costs related to certain long-term projects that are expected to take more than a year to complete. We account for the capitalization of labor costs under ASC Topic 985-20, Software to be Sold, Leased or Marketed . During the year ended December 31, 2020, capitalized labor costs totaled $1.6 million and is included in property and equipment in the consolidated balance sheets. |
Description of Business and S_3
Description of Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Revenue as Percentage of Total Revenue | Revenues from our significant customers as a percentage of our total revenue are as follows: Years Ended December 31, 2020 2019 2018 Customer A (a distribution channel partner) * * 14% Customer B (a distribution channel partner) * 12% 10% Customer C (a distribution channel partner) * 14% * Customer D (a distribution channel partner) 10% * * * represents less than 10% of total revenue |
Marketable Securities and Fai_2
Marketable Securities and Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Available-for-sale Securities | Marketable securities, classified as available-for-sale, consisted of the following (in thousands): December 31, 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 $ 2,150 $ — $ — $ 2,150 $ 10,548 $ 10 $ — $ 10,558 Corporate securities 45,070 83 (8) 45,145 51,745 207 (1) 51,951 U.S. Treasury and agency securities 9,493 12 — 9,505 9,222 3 — 9,225 Commercial paper 12,136 — — 12,136 500 — 500 Asset-backed securities 5,904 11 — 5,915 11,914 32 — 11,946 Total $ 74,753 $ 106 $ (8) $ 74,851 $ 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 December 31, 2020 (in thousands): Amortized Cost Fair Value Less than 1 year $ 58,717 $ 58,754 Mature in 1 - 3 years 16,036 16,097 Total $ 74,753 $ 74,851 |
Schedule of gross unrealized losses | Marketable securities in an unrealized loss position consisted of the following (in thousands): Less Than 12 Months 12 Months or More Total As of December 31, 2020 Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Certificates of deposit $ — $ — $ — $ — $ — $ — Corporate securities 20,355 (8) — — 20,355 (8) U.S. Treasury and agency securities — — — — — — Commercial paper — — — — — — Asset-backed securities — — — — — — Total $ 20,355 $ (8) $ — $ — $ 20,355 $ (8) 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 Certificates of deposit $ — $ — $ — $ — $ — $ — Corporate securities 2,996 (1) — — 2,996 (1) U.S. Treasury and agency securities — — — — — — Commercial paper — — — — — — Asset-backed securities — — — — — — Total $ 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 the Company’s cash, cash equivalents and marketable securities measured at fair value on a recurring basis (in thousands): December 31, 2020 December 31, 2019 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash $ 62,388 $ — $ — $ 62,388 $ 35,546 $ — $ — $ 35,546 Cash equivalents 20,893 — — 20,893 10,196 — — 10,196 Certificates of deposit — 2,150 — 2,150 — 10,558 — 10,558 Corporate securities — 45,145 — 45,145 — 51,951 — 51,951 U.S. Treasury and agency securities — 9,505 — 9,505 — 9,225 — 9,225 Commercial paper — 12,136 — 12,136 — 500 — 500 Asset-backed securities — 5,915 — 5,915 — 11,946 — 11,946 Total $ 83,281 $ 74,851 $ — $ 158,132 $ 45,742 $ 84,180 $ — $ 129,922 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The following table summarize the impact of ASC 606 on the Company’s Consolidated Statement of Operations for the year ended December 31, 2018: Selected Consolidated Statement of Operations Line Items Year Ended December 31, 2018 (in thousands, except per share amounts) As Reported Adjustments Increase (Decrease) Balance Without Adopting the New Standard Revenue - products $ 144,682 $ (2,594) $ 142,088 Revenue - services 87,541 — 87,541 Total revenue 232,223 (2,594) 229,629 Gross profit 180,327 (2,594) 177,733 Sales and marketing 103,214 1,345 104,559 Total operating expenses 208,006 1,345 209,351 Loss from operations (27,679) (3,939) (31,618) Net loss (27,617) (3,939) (31,556) Basic and diluted net loss per share $ (0.38) $ (0.43) |
Contract with Customer, Asset and Liability | The following table reflects contract balances with customers (in thousands): As of As of Balance Sheet Line Reference December 31, 2020 December 31, 2019 Accounts receivables, net $ 51,051 $ 53,566 Deferred revenue, current 65,999 62,233 Deferred revenue, non-current 42,700 38,931 |
Schedule of Deferred Revenue | Deferred revenue consisted of the following (in thousands): December 31, December 31, Deferred revenue: Products $ 7,358 $ 6,593 Services 101,341 94,571 Total deferred revenue 108,699 101,164 Less: current portion (65,999) (62,233) Non-current portion $ 42,700 $ 38,931 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | The Company expects to recognize revenue on the remaining performance obligations as follows (in thousands): December 31, 2020 Within 1 year $ 65,999 Next 2 to 3 years 32,824 Thereafter 9,876 Total $ 108,699 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Assets And Liabilities, | The table below presents the Company’s right-of-use assets and lease liabilities as of December 31, 2020 (in thousands): December 31, 2020 Operating leases Right-of-use assets: Other non-current assets $ 28,240 Total right-of-use assets $ 28,240 Lease liabilities: Accrued liabilities $ 5,260 Other non-current liabilities 23,498 Total operating lease liabilities $ 28,758 |
Lease Payments | The aggregate future lease payments for the Company’s operating leases as of December 31, 2020 were as follows (in thousands): 2021 $ 6,064 2022 4,840 2023 4,414 2024 4,518 2025 4,625 Thereafter 7,148 Total lease payments 31,609 Less: imputed interest (2,851) Present value of lease liabilities $ 28,758 |
Lease Costs | The components of lease costs were as follows (in thousands): Year Ended Operating lease costs $ 6,548 Short-term lease costs 254 Total lease costs $ 6,802 Average lease terms and discount rates for the Company’s operating leases were as follows (in thousands): December 31, 2020 Weighted-average remaining term (in years) 6.2 Weighted-average discount rate 3.14 % Supplemental cash flow information for the Company’s operating leases were as follows (in thousands): Year Ended Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 6,291 Right-of-use assets obtained in exchange for new lease liabilities $ 868 |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | The Company recorded restructuring expenses of $2.5 million in the fourth quarter of 2019, which included the following (in thousands): Cost of revenue Sales and marketing Research and development General and administrative Total restructuring expense Employee severance and related payroll taxes $ 28 $ 1,355 $ 340 $ 194 $ 1,917 Facilities closure expenses 435 89 524 Legal fees 89 89 $ 28 $ 1,790 $ 429 $ 283 $ 2,530 |
Other Balance Sheet Accounts _2
Other Balance Sheet Accounts Details (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Allowance for Doubtful Accounts | The following table presents the changes in the Company’s allowance for doubtful accounts (in thousands): December 31, December 31, Allowance for doubtful accounts, beginning balance $ 52 $ 319 Increase (decrease) of provision 78 (72) Write-offs (89) (195) Allowance for doubtful accounts, ending balance $ 41 $ 52 |
Schedule of Inventory | Inventory consisted of the following (in thousands): December 31, December 31, Raw materials $ 8,395 $ 9,495 Finished goods 12,335 12,889 Total inventory $ 20,730 $ 22,384 |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consisted of the following (in thousands): December 31, December 31, Prepaid expenses $ 3,818 $ 6,163 Deferred contract acquisition costs 5,345 6,231 Other 3,227 2,673 Prepaid expenses and other current assets $ 12,390 $ 15,067 |
Schedule of Property and Equipment, Net | Property and equipment, net, consisted of the following (in thousands): Useful Life December 31, December 31, (in years) Equipment 1-3 $ 25,286 $ 22,702 Software 1-3 765 726 Furniture and fixtures 1-3 652 459 Leasehold improvements 1-7 3,616 5,440 Construction in progress 1,677 — Property and equipment, gross 31,996 29,327 Less: accumulated depreciation (24,108) (21,671) Property and equipment, net $ 7,888 $ 7,656 |
Schedule of Acquired Intangible Assets | Purchased intangible assets, net, consisted of the following (in thousands): December 31, 2020 December 31, 2019 Cost Accumulated Amortization Net Cost Accumulated Amortization Net Developed technology $ 5,050 $ (4,545) $ 505 $ 5,050 $ (3,535) $ 1,515 Patents 2,936 (2,579) 357 2,936 (2,146) 790 Total $ 7,986 $ (7,124) $ 862 $ 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 December 31, 2020 is as follows (in thousands): Fiscal Year 2021 862 |
Schedule of Other Assets, Noncurrent [Table Text Block] | Other non-current assets consisted of the following (in thousands): December 31, December 31, Right-of-use assets $ 28,240 $ 33,014 Deferred contract acquisition costs 3,714 3,297 Deposits 2,746 2,338 Net deferred tax assets 944 1,171 Other 2,807 2,026 Total other non-current assets $ 38,451 $ 41,846 |
Schedule of Accrued Liabilities | Accrued liabilities consisted of the following (in thousands): December 31, December 31, Accrued compensation and benefits $ 19,725 $ 12,227 Accrued tax liabilities 3,748 4,354 Lease liabilities 5,260 5,109 Other 8,197 6,066 Total accrued liabilities $ 36,930 $ 27,756 |
Other Noncurrent Liabilities [Table Text Block] | Other non-current liabilities consisted of the following (in thousands): December 31, 2020 December 31, 2019 Lease liabilities $ 23,498 $ 28,046 Other 859 708 Total other non-current liabilities $ 24,357 $ 28,754 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Operating Leases and Purchase Commitments | The following table summarizes our non-cancelable operating leases as of December 31, 2020 (in thousands): Years Ending December 31, Operating Leases and Other Contractual Obligation 2021 $ 6,064 2022 4,840 2023 4,414 2024 4,518 2025 4,625 Thereafter 7,148 Total $ 31,609 |
Equity Incentive Plans and Stoc
Equity Incentive Plans and Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Stock-based Compensation | A summary of our stock-based compensation expense is as follows (in thousands): Years Ended December 31, 2020 2019 2018 Stock-based compensation by type of award: Stock options $ 209 $ 648 $ 1,353 Stock awards 10,938 14,882 10,445 Employee stock purchase rights (1) 1,163 999 5,240 Total $ 12,310 $ 16,529 $ 17,038 Stock-based compensation by category of expense: Cost of revenue $ 1,357 $ 1,500 $ 1,602 Sales and marketing 3,018 5,765 5,667 Research and development 4,241 6,039 6,631 General and administrative 3,694 3,225 3,138 Total $ 12,310 $ 16,529 $ 17,038 (1) Amount for the year ended December 31, 2018 includes $4.1 million of accelerated stock-based compensation expense. In March 2018, as a result of a suspension of the 2014 Purchase Plan due to our non-timely filing status, all unrecognized stock-based compensation expense related to ESPP under the 2014 Purchase Plan was accelerated and recognized within the consolidated statement of operations. |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | The fair values of stock options and employee stock purchase rights were estimated as of the grant date using the Black-Scholes option-pricing model with the following assumptions: Stock Options (1) Employee Stock Purchase Rights Year Ended December 31, Years Ended December 31, 2018 2020 2019 2018 Expected term (in years) 4.8 0.5 0.5 0.5 Risk-free interest rate 3.1% 0.1% 2.3% 2.6% Expected volatility 37% 59% 34% 28% Dividend rate —% —% —% —% |
Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions [Table Text Block] | The fair values of stock options and employee stock purchase rights were estimated as of the grant date using the Black-Scholes option-pricing model with the following assumptions: Stock Options (1) Employee Stock Purchase Rights Year Ended December 31, Years Ended December 31, 2018 2020 2019 2018 Expected term (in years) 4.8 0.5 0.5 0.5 Risk-free interest rate 3.1% 0.1% 2.3% 2.6% Expected volatility 37% 59% 34% 28% Dividend rate —% —% —% —% |
Summary of Activity under Stock Option Plans | The following tables summarize our stock option activities and related information: Number of Shares Weighted-Average Exercise Price Per Share Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value (1) (thousands) Outstanding as of December 31, 2019 3,702 $ 5.57 Granted — — Exercised (1,298) 4.85 Canceled (731) 7.15 Outstanding as of December 31, 2020 1,673 $ 5.44 2.67 $ 7,520 Vested and exercisable as of December 31, 2020 1,673 $ 5.44 2.67 $ 7,520 (1) The aggregate intrinsic value represents the excess of the closing price of our common stock of $9.86 as of December 31, 2020 over the exercise price of the outstanding in-the-money options. |
Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Grant Date Intrinsic Value [Table Text Block] | Following is additional information pertaining to our stock option activities (in thousands, except per share data): Years Ended December 31, 2020 2019 2018 Weighted-average grant date fair value of options granted (per share) $ — $ — $ 2.19 Intrinsic value of options exercised (1) $ 2,778 $ 1,930 $ 2,629 (1) Intrinsic value of options exercised is the difference between the closing price of our common stock at the time of exercise and the exercise price paid. |
Summary of Restricted Stock Units Activity | The following table summarizes our stock award activities and related information: Number of Shares Weighted-Average Grant Date Fair Value Per Share Weighted-Average Remaining Vesting Term Nonvested as of December 31, 2019 6,148 $ 6.59 Granted 2,018 6.74 Released (1,786) 6.79 Canceled (1,492) 6.56 Nonvested as of December 31, 2020 4,888 $ 6.59 2.13 Following is additional information pertaining to our stock award activities (in thousands, except per share data): Years Ended December 31, 2020 2019 2018 Weighted-average grant date fair value of stock awards granted (per share) $ 6.74 $ 6.74 $ 5.95 Total fair value of stock awards released (vested) during the period $ 12,129 $ 12,183 $ 9,714 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Summary of Anti-dilutive Shares | The following table presents common shares related to potentially dilutive shares excluded from the calculation of diluted net income (loss) per share as their effect would have been anti-dilutive (in thousands): Years Ended December 31, 2020 2019 2018 Stock options, RSUs, PSUs and employee stock purchase rights 822 9,199 9,621 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | The geographical breakdown of income (loss) before income taxes is as follows (in thousands): Years Ended December 31, 2020 2019 2018 Domestic income (loss) $ 15,455 $ (20,345) $ (29,658) Foreign income 3,684 3,933 3,123 Income (loss) before income taxes $ 19,139 $ (16,412) $ (26,535) |
Schedule of Components of Income Tax Expense (Benefit) | The provision for income taxes consisted of the following (in thousands): Years Ended December 31, 2020 2019 2018 Current provision for income taxes: State $ 40 $ 49 $ 44 Foreign 1,057 1,716 953 Total current 1,097 1,765 997 Deferred tax expense (benefit): Federal 2 3 (13) Foreign 224 (361) 98 Total deferred 226 (358) 85 Provision for income taxes $ 1,323 $ 1,407 $ 1,082 |
Schedule of Effective Income Tax Rate Reconciliation | The reconciliation of the statutory federal income taxes and the provision for income tax is as follows (in thousands, except percentages): Years Ended December 31, 2020 2019 2018 Amount Percentage Amount Percentage Amount Percentage Tax at statutory rate $ 4,019 21.0 % $ (3,447) 21.0 % $ (5,572) 21.0 % State tax - net of federal benefits 31 0.2 42 (0.3) 39 (0.1) Foreign rate differential 507 2.6 363 (2.2) 258 (1.0) Changes in federal valuation allowance (3,281) (17.1) 4,695 (28.6) 6,430 (24.2) Change in federal tax rate due to Tax Cuts and Jobs Act — — — — — — Stock-based compensation 781 4.1 578 (3.5) 1,950 (7.3) Non-deductible meals and entertainment expenses 219 1.2 287 (1.8) 342 (1.3) Other permanent items 364 1.9 257 (1.6) 351 (1.3) Federal tax credits - net of uncertain tax positions (1,035) (5.4) (1,809) 11.0 (2,634) 9.9 Expenses for uncertain tax positions — — 166 (1.0) 137 (0.5) Other (282) (1.5) 275 (1.6) (219) 0.7 $ 1,323 7.0 % $ 1,407 (8.6) % $ 1,082 (4.1) % |
Schedule of Deferred Tax Assets and Liabilities | Deferred tax balances are comprised of the following (in thousands): December 31, December 31, Deferred tax assets: Net operating loss carryforwards $ 42,251 $ 46,273 Research and development credits, net of uncertain tax positions 27,743 25,386 Accruals, reserves, and other 12,026 12,021 Stock-based compensation 2,362 3,306 Depreciation and amortization 1,537 2,219 Operating lease liability 6,049 7,061 Gross deferred tax assets 91,968 96,266 Valuation allowance (82,938) (85,743) Total deferred tax assets 9,030 10,523 Deferred tax liabilities: Deferred contract acquisition costs (2,068) (2,245) Operating lease right-of-use asset (5,996) (7,088) Other (22) (19) Total deferred tax liabilities (8,086) (9,352) Net deferred tax assets $ 944 $ 1,171 |
Summary of Income Tax Contingencies | The activity related to the unrecognized tax benefits is as follows (in thousands): Years Ended December 31, 2020 2019 2018 Gross unrecognized tax benefits—beginning balance $ 4,441 $ 4,191 $ 3,782 Increases (decreases) related to tax positions from prior years (268) (280) (266) Increases related to tax positions taken during current year 412 530 675 Decreases related to tax positions taken during the current year — — — Gross unrecognized tax benefits—ending balance $ 4,585 $ 4,441 $ 4,191 |
Geographic Information (Tables)
Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 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): Years Ended December 31, 2020 2019 2018 Americas $ 98,150 $ 89,944 $ 112,506 Japan 67,050 59,454 55,205 Asia Pacific, excluding Japan 29,760 35,689 36,897 EMEA 30,567 27,541 27,615 Total $ 225,527 $ 212,628 $ 232,223 |
Long-lived Assets by Geographic Areas | The following table is a summary of our long-lived assets which include property and equipment, net and right-of-use assets based on the physical location of the assets (in thousands): December 31, December 31, Americas $ 32,558 $ 35,964 Japan 1,566 2,689 Other 2,004 2,017 Total $ 36,128 $ 40,670 |
Selected Quarterly Financial _2
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information | Selected quarterly financial data for 2020 and 2019 is as follows (in thousands, except per share amounts): Quarter Ended March 31, 2020 June 30, 2020 September 30, 2020 December 31, 2020 Revenue $ 53,764 $ 52,500 $ 56,608 $ 62,655 Gross profit $ 41,622 $ 41,078 $ 43,485 $ 49,194 Net income (loss) $ (297) $ 3,808 $ 6,464 $ 7,841 Net income (loss) per share - basic $ — $ 0.05 $ 0.08 $ 0.10 Net income (loss) per share - diluted $ — $ 0.05 $ 0.08 $ 0.10 Quarter Ended March 31, 2019 June 30, 2019 September 30, 2019 December 31, 2019 Revenue $ 50,290 $ 49,189 $ 52,833 $ 60,316 Gross profit $ 38,040 $ 37,918 $ 40,913 $ 46,876 Net income (loss) $ (12,272) $ (5,771) $ 173 $ 51 Net income (loss) per share - basic $ (0.16) $ (0.08) $ — $ — Net income (loss) per share - diluted $ (0.16) $ (0.08) $ — $ — |
Description of Business and S_4
Description of Business and Summary of Significant Accounting Policies - Additional Information (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020USD ($)solutionsegmenttool | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Jan. 01, 2019USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Number of software based advanced solutions | solution | 6 | |||
Number of intelligent management and automation tools | tool | 2 | |||
Warranty period | 90 days | |||
Advertising costs | $ 400 | $ 500 | $ 700 | |
Number of reportable segments | segment | 1 | |||
Number of operating segments | segment | 1 | |||
ROU asset | $ 28,240 | $ 33,014 | ||
Lease liability | 28,758 | |||
Capitalized Software Development Costs for Software Sold to Customers | $ 1,600 | |||
Minimum | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Useful life | 1 year | |||
Finite lived asset useful life | 5 years | |||
Maximum | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Useful life | 3 years | |||
Finite lived asset useful life | 11 years | |||
Leasehold improvements | Minimum | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Useful life | 1 year | |||
Leasehold improvements | Maximum | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Useful life | 7 years | |||
ASU 2016-02 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
ROU asset | $ 30,000 | $ 6,000 | ||
Lease liability | $ 6,800 |
Description of Business and S_5
Description of Business and Summary of Significant Accounting Policies - Concentration Risk (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Customer A | Revenue | |||
Entity Wide Revenue Major Customer [Line Items] | |||
Percentage representation of significant customers (percent) | 14.00% | ||
Customer A | Accounts Receivable | |||
Entity Wide Revenue Major Customer [Line Items] | |||
Percentage representation of significant customers (percent) | 17.00% | 17.00% | |
Customer B | Revenue | |||
Entity Wide Revenue Major Customer [Line Items] | |||
Percentage representation of significant customers (percent) | 12.00% | 10.00% | |
Customer B | Accounts Receivable | |||
Entity Wide Revenue Major Customer [Line Items] | |||
Percentage representation of significant customers (percent) | 10.00% | 12.00% | |
Customer C | Revenue | |||
Entity Wide Revenue Major Customer [Line Items] | |||
Percentage representation of significant customers (percent) | 14.00% | ||
Customer D | Revenue | |||
Entity Wide Revenue Major Customer [Line Items] | |||
Percentage representation of significant customers (percent) | 10.00% |
Marketable Securities and Fai_3
Marketable Securities and Fair Value Measurements - Estimate of Fair Value of Marketable Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 74,753 | $ 83,929 |
Gross Unrealized Gains | 106 | 252 |
Gross Unrealized Losses | (8) | (1) |
Fair Value | 74,851 | 84,180 |
Certificates of deposit | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 2,150 | 10,548 |
Gross Unrealized Gains | 0 | 10 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 2,150 | 10,558 |
Corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 45,070 | 51,745 |
Gross Unrealized Gains | 83 | 207 |
Gross Unrealized Losses | (8) | (1) |
Fair Value | 45,145 | 51,951 |
U.S. Treasury and agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 9,493 | 9,222 |
Gross Unrealized Gains | 12 | 3 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 9,505 | 9,225 |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 12,136 | 500 |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 12,136 | 500 |
Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 5,904 | 11,914 |
Gross Unrealized Gains | 11 | 32 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | $ 5,915 | $ 11,946 |
Marketable Securities and Fai_4
Marketable Securities and Fair Value Measurements - Contractual Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Amortized Cost | ||
Less than 1 year | $ 58,717 | |
Mature in 1 - 3 years | 16,036 | |
Amortized Cost | 74,753 | $ 83,929 |
Fair Value | ||
Less than 1 year | 58,754 | |
Mature in 1 - 3 years | 16,097 | |
Fair Value | $ 74,851 | $ 84,180 |
Marketable Securities and Fai_5
Marketable Securities and Fair Value Measurements - Securities in Unrealized Loss Position (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value | ||
Less Than 12 Months | $ 20,355 | $ 2,996 |
12 Months or More | 0 | 0 |
Total | 20,355 | 2,996 |
Gross Unrealized Losses | ||
Less Than 12 Months | (8) | (1) |
12 Months or More | 0 | 0 |
Total | (8) | (1) |
Certificates of deposit | ||
Fair Value | ||
Less Than 12 Months | 0 | 0 |
12 Months or More | 0 | 0 |
Total | 0 | 0 |
Gross Unrealized Losses | ||
Less Than 12 Months | 0 | 0 |
12 Months or More | 0 | 0 |
Total | 0 | 0 |
Corporate securities | ||
Fair Value | ||
Less Than 12 Months | 20,355 | 2,996 |
12 Months or More | 0 | 0 |
Total | 20,355 | 2,996 |
Gross Unrealized Losses | ||
Less Than 12 Months | (8) | (1) |
12 Months or More | 0 | 0 |
Total | (8) | (1) |
U.S. Treasury and agency securities | ||
Fair Value | ||
Less Than 12 Months | 0 | 0 |
12 Months or More | 0 | 0 |
Total | 0 | 0 |
Gross Unrealized Losses | ||
Less Than 12 Months | 0 | 0 |
12 Months or More | 0 | 0 |
Total | 0 | 0 |
Commercial paper | ||
Fair Value | ||
Less Than 12 Months | 0 | 0 |
12 Months or More | 0 | 0 |
Total | 0 | 0 |
Gross Unrealized Losses | ||
Less Than 12 Months | 0 | 0 |
12 Months or More | 0 | 0 |
Total | 0 | 0 |
Asset-backed securities | ||
Fair Value | ||
Less Than 12 Months | 0 | 0 |
12 Months or More | 0 | 0 |
Total | 0 | 0 |
Gross Unrealized Losses | ||
Less Than 12 Months | 0 | 0 |
12 Months or More | 0 | 0 |
Total | $ 0 | $ 0 |
Marketable Securities and Fai_6
Marketable Securities and Fair Value Measurements - Schedule of Fair Value of Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Financial Assets | ||
Marketable Securities | $ 74,851 | $ 84,180 |
Total | 158,132 | 129,922 |
Level 1 | ||
Financial Assets | ||
Total | 83,281 | 45,742 |
Level 2 | ||
Financial Assets | ||
Total | 74,851 | 84,180 |
Cash | ||
Financial Assets | ||
Cash and Cash Equivalents | 62,388 | 35,546 |
Cash | Level 1 | ||
Financial Assets | ||
Cash and Cash Equivalents | 62,388 | 35,546 |
Cash equivalents | ||
Financial Assets | ||
Cash and Cash Equivalents | 20,893 | 10,196 |
Cash equivalents | Level 1 | ||
Financial Assets | ||
Cash and Cash Equivalents | 20,893 | 10,196 |
Certificates of deposit | ||
Financial Assets | ||
Marketable Securities | 2,150 | 10,558 |
Certificates of deposit | Level 2 | ||
Financial Assets | ||
Marketable Securities | 2,150 | 10,558 |
Corporate securities | ||
Financial Assets | ||
Marketable Securities | 45,145 | 51,951 |
Corporate securities | Level 2 | ||
Financial Assets | ||
Marketable Securities | 45,145 | 51,951 |
U.S. Treasury and agency securities | ||
Financial Assets | ||
Marketable Securities | 9,505 | 9,225 |
U.S. Treasury and agency securities | Level 2 | ||
Financial Assets | ||
Marketable Securities | 9,505 | 9,225 |
Commercial paper | ||
Financial Assets | ||
Marketable Securities | 12,136 | 500 |
Commercial paper | Level 2 | ||
Financial Assets | ||
Marketable Securities | 12,136 | 500 |
Asset-backed securities | ||
Financial Assets | ||
Marketable Securities | 5,915 | 11,946 |
Asset-backed securities | Level 2 | ||
Financial Assets | ||
Marketable Securities | $ 5,915 | $ 11,946 |
Revenue - Additional Informatio
Revenue - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2018 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Accumulated deficit | $ 272,249,000 | $ 290,065,000 | |
Deferred revenue | 108,699,000 | 101,164,000 | |
Revenue recognized that was included in deferred revenue balance at January 1, 2018 | 61,800,000 | 63,200,000 | |
Deferred contract acquisition costs, current | 5,345,000 | 6,231,000 | |
Deferred contract acquisition costs, noncurrent | 3,714,000 | 3,297,000 | |
Asset impairment charges for contract assets | 0 | ||
ASU 2014-09 | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Accumulated deficit | $ 12,400,000 | ||
Deferred revenue | 4,000,000 | ||
Deferred commissions asset | $ 8,400,000 | ||
Deferred Sales Commissions | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Deferred contract acquisition costs, current | 5,300,000 | 6,200,000 | |
Deferred contract acquisition costs, noncurrent | 3,700,000 | 3,300,000 | |
Amortization | 6,500,000 | $ 7,400,000 | |
Impairment loss of contract acquisition costs | $ 0 |
Revenue - ASC 606 Adjustments (
Revenue - ASC 606 Adjustments (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2018 | |
Assets | ||||||||||||
Prepaid expenses and other current assets | $ 12,390 | $ 15,067 | $ 12,390 | $ 15,067 | ||||||||
Other non-current assets | 38,451 | 41,846 | 38,451 | 41,846 | ||||||||
Liabilities | ||||||||||||
Deferred revenue, current | 65,999 | 62,233 | 65,999 | 62,233 | ||||||||
Deferred revenue, non-current | 42,700 | 38,931 | 42,700 | 38,931 | ||||||||
Stockholders' Equity | ||||||||||||
Accumulated deficit | (272,249) | (290,065) | (272,249) | (290,065) | ||||||||
Income Statement | ||||||||||||
Total revenue | 62,655 | $ 56,608 | $ 52,500 | $ 53,764 | 60,316 | $ 52,833 | $ 49,189 | $ 50,290 | 225,527 | 212,628 | $ 232,223 | |
Gross profit | 49,194 | 43,485 | 41,078 | 41,622 | 46,876 | 40,913 | 37,918 | 38,040 | 175,379 | 163,747 | 180,327 | |
Sales and marketing | 77,732 | 92,783 | 103,214 | |||||||||
Total operating expenses | 157,646 | 180,841 | 208,006 | |||||||||
Income (loss) from operations | 17,733 | (17,094) | (27,679) | |||||||||
Net income (loss) | $ 7,841 | $ 6,464 | $ 3,808 | $ (297) | $ 51 | $ 173 | $ (5,771) | $ (12,272) | 17,816 | (17,819) | $ (27,617) | |
Basic and diluted (in dollars per share) | $ (0.38) | |||||||||||
Adjustments Increase (Decrease) | ||||||||||||
Stockholders' Equity | ||||||||||||
Accumulated deficit | $ (12,400) | |||||||||||
Income Statement | ||||||||||||
Total revenue | $ (2,594) | |||||||||||
Gross profit | (2,594) | |||||||||||
Sales and marketing | 1,345 | |||||||||||
Total operating expenses | 1,345 | |||||||||||
Income (loss) from operations | (3,939) | |||||||||||
Net income (loss) | (3,939) | |||||||||||
Balance Without Adopting the New Standard | ||||||||||||
Income Statement | ||||||||||||
Total revenue | 229,629 | |||||||||||
Gross profit | 177,733 | |||||||||||
Sales and marketing | 104,559 | |||||||||||
Total operating expenses | 209,351 | |||||||||||
Income (loss) from operations | (31,618) | |||||||||||
Net income (loss) | $ (31,556) | |||||||||||
Basic and diluted (in dollars per share) | $ (0.43) | |||||||||||
Products | ||||||||||||
Income Statement | ||||||||||||
Total revenue | 129,876 | 121,920 | $ 144,682 | |||||||||
Products | Adjustments Increase (Decrease) | ||||||||||||
Income Statement | ||||||||||||
Total revenue | (2,594) | |||||||||||
Products | Balance Without Adopting the New Standard | ||||||||||||
Income Statement | ||||||||||||
Total revenue | 142,088 | |||||||||||
Services | ||||||||||||
Income Statement | ||||||||||||
Total revenue | $ 95,651 | $ 90,708 | 87,541 | |||||||||
Services | Adjustments Increase (Decrease) | ||||||||||||
Income Statement | ||||||||||||
Total revenue | 0 | |||||||||||
Services | Balance Without Adopting the New Standard | ||||||||||||
Income Statement | ||||||||||||
Total revenue | $ 87,541 |
Revenue - Contract Balances (De
Revenue - Contract Balances (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Revenue from Contract with Customer [Abstract] | ||
Accounts receivable, net | $ 51,051 | $ 53,566 |
Deferred revenue, current | 65,999 | 62,233 |
Deferred revenue, non-current | 42,700 | 38,931 |
Deferred contract acquisition costs | $ 5,345 | $ 6,231 |
Revenue - Deferred Revenue (Det
Revenue - Deferred Revenue (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred Revenue Arrangement [Line Items] | ||
Total deferred revenue | $ 108,699 | $ 101,164 |
Less: current portion | (65,999) | (62,233) |
Non-current portion | 42,700 | 38,931 |
Products | ||
Deferred Revenue Arrangement [Line Items] | ||
Total deferred revenue | 7,358 | 6,593 |
Services | ||
Deferred Revenue Arrangement [Line Items] | ||
Total deferred revenue | $ 101,341 | $ 94,571 |
Revenue - Remaining Performance
Revenue - Remaining Performance Obligations (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligation | $ 108,699 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligation | $ 65,999 |
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]: 2022-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligation | $ 32,824 |
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]: 2024-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligation | $ 9,876 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation period |
Leases - Assets and Liabilities
Leases - Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Total right-of-use assets | $ 28,240 | $ 33,014 |
Accrued liabilities | 5,260 | 5,109 |
Other non-current liabilities | 23,498 | $ 28,046 |
Total operating lease liabilities | $ 28,758 | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssetsNoncurrent | |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesNoncurrent | us-gaap:OtherLiabilitiesNoncurrent |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:AccruedLiabilitiesCurrent | us-gaap:AccruedLiabilitiesCurrent |
Leases - Lease Liabilities (Det
Leases - Lease Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | May 02, 2019 |
Leases [Abstract] | ||
2021 | $ 6,064 | |
2022 | 4,840 | |
2023 | 4,414 | |
2024 | 4,518 | |
2025 | 4,625 | |
Thereafter | 7,148 | |
Total lease payments | 31,609 | $ 33,800 |
Less: imputed interest | (2,851) | |
Present value of lease liabilities | $ 28,758 |
Leases - Lease Costs (Details)
Leases - Lease Costs (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Leases [Abstract] | |
Operating lease costs | $ 6,548 |
Short-term lease costs | 254 |
Total lease costs | $ 6,802 |
Weighted-average remaining term (years) | 6 years 2 months 12 days |
Weighted-average discount rate | 3.14% |
Operating cash flows from operating leases | $ 6,291 |
Right-of-use assets obtained in exchange for new lease liabilities | $ 868 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Thousands | May 02, 2019 | Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | May 06, 2019 | Jan. 01, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Rent expense | $ 262 | $ 4,500 | ||||
Lease payments | $ 33,800 | $ 31,609 | ||||
ROU asset | 28,240 | $ 33,014 | ||||
Lease liabilities | 5,260 | 5,109 | ||||
Lease liabilities | 23,498 | $ 28,046 | ||||
Term of contract | 7 years 8 months | |||||
ASU 2016-02 | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
ROU asset | 30,000 | $ 6,000 | ||||
Lease liabilities | 3,300 | |||||
Lease liabilities | $ 26,700 |
Restructuring (Details)
Restructuring (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Oct. 31, 2019 | |
Restructuring Cost and Reserve [Line Items] | |||||
Percentage of workforce reduction | 5.00% | ||||
Restructuring expense | $ 2,530 | $ 0 | $ 2,530 | $ 0 | |
Cost of revenue | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expense | 28 | ||||
Sales and marketing | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expense | 1,790 | ||||
Research and development | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expense | 429 | ||||
General and administrative | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expense | 283 | ||||
Employee severance and related payroll taxes | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expense | 1,917 | ||||
Employee severance and related payroll taxes | Cost of revenue | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expense | 28 | ||||
Employee severance and related payroll taxes | Sales and marketing | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expense | 1,355 | ||||
Employee severance and related payroll taxes | Research and development | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expense | 340 | ||||
Employee severance and related payroll taxes | General and administrative | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expense | 194 | ||||
Facilities closure expenses | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expense | 524 | ||||
Facilities closure expenses | Sales and marketing | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expense | 435 | ||||
Facilities closure expenses | Research and development | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expense | 89 | ||||
Legal fees | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expense | 89 | ||||
Legal fees | General and administrative | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expense | $ 89 |
Other Balance Sheet Accounts _3
Other Balance Sheet Accounts Details - Schedule of Allowance for Doubtful Accounts (Details) - Allowance for Doubtful Accounts - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Allowance for Doubtful Accounts [Roll Forward] | ||
Allowance for doubtful accounts, beginning balance | $ 52 | $ 319 |
Increase (decrease) of provision | 78 | (72) |
Write-offs | (89) | (195) |
Allowance for doubtful accounts, ending balance | $ 41 | $ 52 |
Other Balance Sheet Accounts _4
Other Balance Sheet Accounts Details - Schedule of Inventory (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 8,395 | $ 9,495 |
Finished goods | 12,335 | 12,889 |
Total inventory | $ 20,730 | $ 22,384 |
Other Balance Sheet Accounts _5
Other Balance Sheet Accounts Details - Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Abstract] | ||
Prepaid expenses | $ 3,818 | $ 6,163 |
Deferred contract acquisition costs | 5,345 | 6,231 |
Other | 3,227 | 2,673 |
Prepaid expenses and other current assets | $ 12,390 | $ 15,067 |
Other Balance Sheet Accounts _6
Other Balance Sheet Accounts Details - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property Plant And Equipment [Line Items] | |||
Depreciation | $ 4,200 | $ 5,000 | $ 6,400 |
Property and equipment, gross | 31,996 | 29,327 | |
Less: accumulated depreciation | (24,108) | (21,671) | |
Property and equipment, net | 7,888 | 7,656 | |
Equipment | |||
Property Plant And Equipment [Line Items] | |||
Property and equipment, gross | 25,286 | 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 progress | |||
Property Plant And Equipment [Line Items] | |||
Property and equipment, gross | $ 1,677 | $ 0 | |
Minimum | |||
Property Plant And Equipment [Line Items] | |||
Useful life | 1 year | ||
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 | 1 year | ||
Maximum | |||
Property Plant And Equipment [Line Items] | |||
Useful life | 3 years | ||
Maximum | Equipment | |||
Property Plant And Equipment [Line Items] | |||
Useful life | 3 years | ||
Maximum | Software | |||
Property Plant And Equipment [Line Items] | |||
Useful life | 3 years | ||
Maximum | Furniture and fixtures | |||
Property Plant And Equipment [Line Items] | |||
Useful life | 3 years | ||
Maximum | Leasehold improvements | |||
Property Plant And Equipment [Line Items] | |||
Useful life | 7 years |
Other Balance Sheet Accounts _7
Other Balance Sheet Accounts Details - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 4.2 | $ 5 | $ 6.4 |
Amortization expense related to intangible assets | $ 1.4 | $ 1.4 | |
Weighted average useful life of purchased intangible assets (in years) | 7 months 6 days |
Other Balance Sheet Accounts _8
Other Balance Sheet Accounts Details - Purchased Intangible Assets, net (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Cost | $ 7,986 | $ 7,986 |
Accumulated Amortization | (7,124) | (5,681) |
Net | 862 | 2,305 |
Developed technology | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Cost | 5,050 | 5,050 |
Accumulated Amortization | (4,545) | (3,535) |
Net | 505 | 1,515 |
Patents | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Cost | 2,936 | 2,936 |
Accumulated Amortization | (2,579) | (2,146) |
Net | $ 357 | $ 790 |
Other Balance Sheet Accounts _9
Other Balance Sheet Accounts Details - Future Amortization Expense of Acquired Intangibles (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Abstract] | ||
2020 | $ 862 | |
Net | $ 862 | $ 2,305 |
Other Balance Sheet Accounts_10
Other Balance Sheet Accounts Details - Other Noncurrent Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Abstract] | ||
Right-of-use assets | $ 28,240 | $ 33,014 |
Deferred contract acquisition costs | 3,714 | 3,297 |
Deposits | 2,746 | 2,338 |
Other | 2,807 | 2,026 |
Total other non-current assets | 38,451 | 41,846 |
Deferred Tax Assets, Net | $ 944 | $ 1,171 |
Other Balance Sheet Accounts_11
Other Balance Sheet Accounts Details - Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Accrued Liabilities, Current [Abstract] | ||
Accrued compensation and benefits | $ 19,725 | $ 12,227 |
Accrued tax liabilities | 3,748 | 4,354 |
Lease liabilities | 5,260 | 5,109 |
Other | 8,197 | 6,066 |
Total accrued liabilities | $ 36,930 | $ 27,756 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:AccruedLiabilitiesCurrent | us-gaap:AccruedLiabilitiesCurrent |
Other Balance Sheet Accounts_12
Other Balance Sheet Accounts Details - Other Noncurrent Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Abstract] | ||
Lease liabilities | $ 23,498 | $ 28,046 |
Other | 859 | 708 |
Total other non-current liabilities | $ 24,357 | $ 28,754 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesNoncurrent | us-gaap:OtherLiabilitiesNoncurrent |
Credit Facility (Details)
Credit Facility (Details) - Line of credit | 1 Months Ended | |
Sep. 30, 2018 | Nov. 30, 2016USD ($) | |
Revolving Credit Facility | ||
Line of Credit Facility [Line Items] | ||
Debt instrument term (in years) | 3 years | |
Maximum borrowing capacity | $ 25,000,000 | |
Debt covenant, net cash equals or exceeds, amount | 50,000,000 | |
Debt covenant, net cash falls below, amount | $ 50,000,000 | |
Unused capacity commitment fee | 0.40% | |
Minimum adjusted quick ratio under debt compliance | 1.50 | |
Amended Revolving Credit Facility | ||
Line of Credit Facility [Line Items] | ||
Unused capacity commitment fee | 0.30% | |
Letter of Credit | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | $ 25,000,000 | |
Prime Rate | Revolving Credit Facility | ||
Line of Credit Facility [Line Items] | ||
Variable rate basis spread | 0.50% | |
LIBOR | Revolving Credit Facility | ||
Line of Credit Facility [Line Items] | ||
Variable rate basis spread | 2.50% |
Commitments and Contingencies -
Commitments and Contingencies - Operating Leases and Purchase Commitments (Details) - USD ($) $ in Thousands | May 02, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Operating Leased Assets [Line Items] | ||||
Operating Lease, Expense | $ 6,700 | $ 4,800 | ||
Rent expense | $ 262 | $ 4,500 | ||
Operating Leases and Other Contractual Obligation | ||||
Operating Leased Assets [Line Items] | ||||
2020 | 6,064 | |||
2021 | 4,840 | |||
2022 | 4,414 | |||
2023 | 4,518 | |||
2024 | 4,625 | |||
Thereafter | 7,148 | |||
Total | $ 31,609 |
Commitments and Contingencies_2
Commitments and Contingencies - Purchase Commitments (Details) - USD ($) $ in Thousands | May 02, 2019 | Dec. 31, 2018 |
Commitments and Contingencies Disclosure [Abstract] | ||
Rent expense | $ 262 | $ 4,500 |
Equity Incentive Plans and St_2
Equity Incentive Plans and Stock-Based Compensation - 2014 Equity Incentive Plan/ESPP (Details) - USD ($) $ / shares in Units, $ in Thousands | Sep. 30, 2018 | Jun. 10, 2015 | Oct. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Intrinsic value of options exercised | $ 2,778 | $ 1,930 | $ 2,629 | |||
2014 Stock Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares available for future grant (in shares) | 10,725,127 | |||||
Expiration period | 5 years | |||||
2014 Stock Incentive Plan | Stock options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Expiration period | 10 years | |||||
Vesting period | 4 years | |||||
2014 Stock Incentive Plan | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Percentage of exercise price of fair value per share on grant date | 110.00% | |||||
2014 Stock Incentive Plan | Minimum | Non-Statutory Stock Options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Percentage of exercise price of fair value per share on grant date | 100.00% | |||||
2014 Stock Incentive Plan | Minimum | Restricted Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 1 year | |||||
2014 Stock Incentive Plan | Minimum | Performance Stock Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 1 year | |||||
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% | |||||
Combined voting power of all classes of stock | 10.00% | |||||
2014 Stock Incentive Plan | Maximum | Restricted Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 4 years | |||||
2014 Stock Incentive Plan | Maximum | Performance Stock Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 4 years | |||||
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 | ESPP | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares available for future grant (in shares) | 1,821,186 | |||||
Percentage of eligible compensation | 10.00% | |||||
Offering period | 6 months | |||||
Percentage of market value | 85.00% | |||||
Maximum number of shares per employee (in shares) | 1,500 | |||||
ESPP | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares purchased (in shares) | 581,634 | 662,362 | ||||
Price per share (in dollars per share) | $ 5.67 | $ 5.14 | ||||
Intrinsic value of options exercised | $ 1,000 | $ 800 |
Equity Incentive Plans and St_3
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 | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | $ 12,310 | $ 16,529 | $ 17,038 |
Cost of revenue | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | 1,357 | 1,500 | 1,602 |
Sales and marketing | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | 3,018 | 5,765 | 5,667 |
Research and development | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | 4,241 | 6,039 | 6,631 |
General and administrative | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | 3,694 | 3,225 | 3,138 |
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | 209 | 648 | 1,353 |
Stock awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | 10,938 | 14,882 | 10,445 |
Employee stock purchase rights | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | 1,163 | $ 999 | $ 5,240 |
Accelerated stock-based compensation | $ 4,100 |
Equity Incentive Plans and St_4
Equity Incentive Plans and Stock-Based Compensation - Stock-based Compensation/Stock Repurchase Program (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Share-based Payment Arrangement [Abstract] | |
Total compensation expense related to unvested awards granted, not yet recognized | $ 24.4 |
Total compensation expense related to unvested awards granted, not yet recognized weighted-average period for recognition (in years) | 2 years 8 months 12 days |
Equity Incentive Plans and St_5
Equity Incentive Plans and Stock-Based Compensation - Fair Value Determination (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 0 years | 4 years 9 months 18 days | |
Risk-free interest rate | 3.10% | ||
Expected volatility | 37.00% | ||
Dividend rate | 0.00% | ||
Employee Stock Purchase Rights | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 6 months | 6 months | 6 months |
Risk-free interest rate | 0.10% | 2.30% | 2.60% |
Expected volatility | 59.00% | 34.00% | 28.00% |
Dividend rate | 0.00% | 0.00% | 0.00% |
Equity Incentive Plans and St_6
Equity Incentive Plans and Stock-Based Compensation - Summary of Activity under Stock Option Plans (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($)$ / sharesshares | |
Number of Shares (thousands) | |
Outstanding options, Beginning balance (in shares) | shares | 3,702 |
Granted (in shares) | shares | 0 |
Exercised (in shares) | shares | (1,298) |
Canceled (in shares) | shares | (731) |
Outstanding options, Ending balance (in shares) | shares | 1,673 |
Vested and exercisable (in shares) | shares | 1,673 |
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) | 4.85 |
Canceled (in dollars per share) | 7.15 |
Ending balance (in dollars per share) | 5.44 |
Vested and exercisable at end of period (in dollars per share) | $ 5.44 |
Weighted-average remaining contractual term (in years) | 2 years 8 months 1 day |
Weighted average remaining contractual term, Vested and exercisable at end of period (in years) | 2 years 8 months 1 day |
Aggregate Intrinsic Value | $ | $ 7,520 |
Aggregate Intrinsic Value, Vested and exercisable at end of period | $ | $ 7,520 |
Closing price (in dollars per share) | $ 9.86 |
Document Period End Date | Dec. 31, 2020 |
Equity Incentive Plans and St_7
Equity Incentive Plans and Stock-Based Compensation - Information about Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Payment Arrangement [Abstract] | |||
Weighted-average grant date fair value per share of options granted (in dollars per share) | $ 0 | $ 0 | $ 2.19 |
Intrinsic value of options exercised | $ 2,778 | $ 1,930 | $ 2,629 |
Equity Incentive Plans and St_8
Equity Incentive Plans and Stock-Based Compensation - Information About Stock Options (Details) - PSUs, December 2019 | 1 Months Ended |
Dec. 31, 2019 | |
Tranche One | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting percentage | 33.00% |
Tranche Two | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting percentage | 33.00% |
Tranche Three | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting percentage | 33.00% |
Equity Incentive Plans and St_9
Equity Incentive Plans and Stock-Based Compensation - Summary of RSU and PSU activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restricted Stock Units (RSUs) and Performance Stock Units (PSUs) | |||
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) | 2,018,000 | ||
Released (in shares) | (1,786,000) | ||
Canceled (in shares) | (1,492,000) | ||
Unvested at end of period (in shares) | 4,888,000 | 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) | 6.74 | $ 6.74 | $ 5.95 |
Released (in dollars per share) | 6.79 | ||
Canceled (in dollars per share) | 6.56 | ||
Unvested at ending of period (in dollars per share) | $ 6.59 | $ 6.59 | |
Weighted-Average Remaining Vesting Term (years) | 2 years 1 month 17 days | ||
Total fair value of stock awards released (vested) during the period | $ 12,129 | $ 12,183 | $ 9,714 |
Performance Stock Units | |||
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) | 1,134,103 | ||
Restricted Stock Units (RSUs) | |||
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) | 3,753,620 |
Equity Incentive Plans and S_10
Equity Incentive Plans and Stock-Based Compensation - Repurchase Agreement - USD ($) shares in Millions, $ in Millions | May 17, 2020 | Dec. 31, 2020 |
Share-based Payment Arrangement [Abstract] | ||
Treasury Stock, Shares, Acquired | 2.2 | 2.7 |
Treasury Stock, Value, Acquired, Cost Method | $ 13.3 | $ 19.2 |
Equity Incentive Plans and S_11
Equity Incentive Plans and Stock-Based Compensation - Stock Repurchase Plan - USD ($) shares in Millions, $ in Millions | May 17, 2020 | Dec. 31, 2020 | Sep. 17, 2020 |
Share-based Payment Arrangement [Abstract] | |||
Stock Repurchase Program, Authorized Amount | $ 50 | ||
Treasury Stock, Value, Acquired, Cost Method | $ 13.3 | $ 19.2 | |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 30.8 | ||
Treasury Stock, Shares, Acquired | 2.2 | 2.7 |
Net Loss Per Share - Summary of
Net Loss Per Share - Summary of Outstanding Shares of Common Stock Equivalents (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Stock options, RSUs, PSUs and employee stock purchase rights | |||
Earnings Per Share Diluted [Line Items] | |||
Anti-dilutive securities excluded from computation of diluted net income per share | 822 | 9,199 | 9,621 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income before Income Tax, by Geographic Region (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Domestic loss | $ 15,455 | $ (20,345) | $ (29,658) |
Foreign income | 3,684 | 3,933 | 3,123 |
Income (loss) before income taxes | $ 19,139 | $ (16,412) | $ (26,535) |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current provision for income taxes: | |||
State | $ 40 | $ 49 | $ 44 |
Foreign | 1,057 | 1,716 | 953 |
Total current | 1,097 | 1,765 | 997 |
Deferred tax expense (benefit): | |||
Federal | 2 | 3 | (13) |
Foreign | 224 | (361) | 98 |
Total deferred | 226 | (358) | 85 |
Provision for income taxes | $ 1,323 | $ 1,407 | $ 1,082 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Tax at statutory rate | $ 4,019 | $ (3,447) | $ (5,572) |
Tax at statutory rate (percent) | 21.00% | 21.00% | 21.00% |
State tax - net of federal benefits | $ 31 | $ 42 | $ 39 |
State tax - net of federal benefits (percent) | 0.20% | (0.30%) | (0.10%) |
Foreign rate differential | $ 507 | $ 363 | $ 258 |
Foreign rate differential (percent) | 2.60% | (2.20%) | (1.00%) |
Changes in federal valuation allowance | $ (3,281) | $ 4,695 | $ 6,430 |
Changes in valuation allowance (percent) | (17.10%) | (28.60%) | (24.20%) |
Change in federal tax rate due to Tax Cuts and Jobs Act | $ 0 | $ 0 | $ 0 |
Change in federal tax rate due to Tax Cuts and Jobs Act (Percent) | 0.00% | 0.00% | 0.00% |
Stock-based compensation | $ 781 | $ 578 | $ 1,950 |
Stock-based compensation (percent) | 4.10% | (3.50%) | (7.30%) |
Non-deductible meals and entertainment expenses | $ 219 | $ 287 | $ 342 |
Non-deductible meals and entertainment expenses (percent) | 1.20% | (1.80%) | (1.30%) |
Other permanent items | $ 364 | $ 257 | $ 351 |
Other permanent items (percent) | 1.90% | (1.60%) | (1.30%) |
Federal Tax credits - net of uncertain tax position | $ (1,035) | $ (1,809) | $ (2,634) |
Federal Tax credits - net of uncertain tax position (percent) | (5.40%) | 11.00% | 9.90% |
Expenses for uncertain tax positions | $ 0 | $ 166 | $ 137 |
Expenses for uncertain tax positions (percent) | 0.00% | (1.00%) | (0.50%) |
Other | $ (282) | $ 275 | $ (219) |
Other (percent) | (1.50%) | (1.60%) | 0.70% |
Provision for income taxes | $ 1,323 | $ 1,407 | $ 1,082 |
Provision for income taxes (percent) | 7.00% | (8.60%) | (4.10%) |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 42,251 | $ 46,273 |
Research and development credits, net of uncertain tax positions | 27,743 | 25,386 |
Accruals, reserves, and other | 12,026 | 12,021 |
Stock-based compensation | 2,362 | 3,306 |
Depreciation and amortization | 1,537 | 2,219 |
Operating lease liability | 6,049 | 7,061 |
Gross deferred tax assets | 91,968 | 96,266 |
Valuation allowance | (82,938) | (85,743) |
Total deferred tax assets | 9,030 | 10,523 |
Deferred tax liabilities: | ||
Deferred contract acquisition costs | (2,068) | (2,245) |
Operating lease right of use asset | (5,996) | (7,088) |
Other | (22) | (19) |
Total deferred tax liabilities | (8,086) | (9,352) |
Net deferred tax assets | $ 944 | $ 1,171 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2016 | |
Operating Loss Carryforwards [Line Items] | ||||
Valuation allowance | $ 82,938 | $ 85,743 | ||
Increase (decrease) in valuation allowance | (2,800) | 7,100 | ||
Undistributed earnings of foreign subsidiaries | 16,000 | 13,600 | ||
Unrecognized tax benefits | 4,585 | 4,441 | $ 4,191 | $ 3,782 |
Unrecognized tax benefits that would affect the effective tax rate | 800 | |||
U.S. Federal | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating loss carryforwards | 177,000 | 193,800 | ||
State | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating loss carryforwards | 78,000 | 84,600 | ||
Research and Development Credit Carryforward | U.S. Federal | ||||
Operating Loss Carryforwards [Line Items] | ||||
Tax credit carryforward | 16,400 | 15,300 | ||
Research and Development Credit Carryforward | State | ||||
Operating Loss Carryforwards [Line Items] | ||||
Tax credit carryforward | $ 18,200 | $ 16,400 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Gross unrecognized tax benefits—beginning balance | $ 4,441 | $ 4,191 | |
Increases (decrease) related to tax positions from prior years | (268) | (280) | $ (266) |
Increases related to tax positions taken during current year | 412 | 530 | 675 |
Decreases related to tax positions taken during the current year | 0 | 0 | 0 |
Gross unrecognized tax benefits—ending balance | $ 4,585 | $ 4,441 | $ 4,191 |
Geographic Information - Schedu
Geographic Information - Schedule of Total Revenue Based on Customer's Location (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | $ 62,655 | $ 56,608 | $ 52,500 | $ 53,764 | $ 60,316 | $ 52,833 | $ 49,189 | $ 50,290 | $ 225,527 | $ 212,628 | $ 232,223 |
Americas | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 98,150 | 89,944 | 112,506 | ||||||||
Japan | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 67,050 | 59,454 | 55,205 | ||||||||
Asia Pacific, excluding Japan | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 29,760 | 35,689 | 36,897 | ||||||||
EMEA | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | $ 30,567 | $ 27,541 | $ 27,615 |
Geographic Information - Long L
Geographic Information - Long Lived Assets By Geographic Area (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 36,128 | $ 40,670 |
Americas | ||
Long-Lived Assets [Line Items] | ||
Long-lived assets | 32,558 | 35,964 |
Japan | ||
Long-Lived Assets [Line Items] | ||
Long-lived assets | 1,566 | 2,689 |
Other | ||
Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 2,004 | $ 2,017 |
Employee Benefit Plan (Details)
Employee Benefit Plan (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |||
Maximum contribution | $ 19,500 | ||
Additional contribution, Age 50 and above | $ 6,500 | ||
Percent match | 50.00% | ||
Percent of employee's compensation | 6.00% | ||
Maximum employer contribution | $ 2,500 | ||
Employer contribution amount | $ 400,000 | $ 700,000 | $ 1,000,000 |
Selected Quarterly Financial _3
Selected Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenue | $ 62,655 | $ 56,608 | $ 52,500 | $ 53,764 | $ 60,316 | $ 52,833 | $ 49,189 | $ 50,290 | $ 225,527 | $ 212,628 | $ 232,223 |
Gross profit | 49,194 | 43,485 | 41,078 | 41,622 | 46,876 | 40,913 | 37,918 | 38,040 | 175,379 | 163,747 | 180,327 |
Net income (loss) | $ 7,841 | $ 6,464 | $ 3,808 | $ (297) | $ 51 | $ 173 | $ (5,771) | $ (12,272) | $ 17,816 | $ (17,819) | $ (27,617) |
Net income (loss) per share - diluted (in dollars per share) | $ 0.10 | $ 0.08 | $ 0.05 | $ 0 | $ 0 | $ 0 | $ (0.08) | $ (0.16) | $ 0.22 | $ (0.23) | $ (0.38) |
Net income (loss) per share - basic (in dollars per share) | $ 0.10 | $ 0.08 | $ 0.05 | $ 0 | $ 0 | $ 0 | $ (0.08) | $ (0.16) | $ 0.23 | $ (0.23) | $ (0.38) |