Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 28, 2019 | Jun. 29, 2018 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | ATEN | ||
Entity Registrant Name | A10 Networks, Inc. | ||
Entity Central Index Key | 0001580808 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Shell Company | false | ||
Entity Public Float | $ 254.7 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Emerging Growth Company | true | ||
Entity Small Business | false | ||
Entity Ex Transition Period | true | ||
Entity Common Stock, Shares Outstanding | 75,050,848 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 40,621 | $ 46,567 |
Marketable securities | 87,754 | 84,567 |
Accounts receivable, net of allowances of $319 and $983, respectively | 53,972 | 48,266 |
Inventory | 17,930 | 17,577 |
Prepaid expenses and other current assets | 14,662 | 6,825 |
Total current assets | 214,939 | 203,802 |
Property and equipment, net | 7,262 | 9,913 |
Goodwill | 1,307 | 1,307 |
Intangible assets | 3,748 | 5,190 |
Other non-current assets | 8,620 | 4,646 |
Total assets | 235,876 | 224,858 |
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
Accounts payable | 8,202 | 9,033 |
Accrued liabilities | 25,291 | 21,835 |
Deferred revenue, current | 63,874 | 61,858 |
Total current liabilities | 97,367 | 92,726 |
Deferred revenue, non-current | 34,092 | 32,779 |
Other non-current liabilities | 534 | 967 |
Total liabilities | 131,993 | 126,472 |
Commitments and contingencies (Note 6) | ||
Stockholders' equity: | ||
Common stock, $0.00001 par value: 500,000 shares authorized; 74,301 and 71,692 shares issued and outstanding, respectively | 1 | 1 |
Additional paid-in-capital | 376,272 | 355,533 |
Accumulated other comprehensive loss | (144) | (123) |
Accumulated deficit | (272,246) | (257,025) |
Total stockholders' equity | 103,883 | 98,386 |
Total liabilities and stockholders' equity | $ 235,876 | $ 224,858 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable | $ 319 | $ 983 |
Common Stock, par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 74,301,000 | 71,692,000 |
Common stock, shares outstanding (in shares) | 74,301,000 | 71,692,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenue: | |||
Total revenue | $ 232,223 | $ 235,429 | $ 227,297 |
Cost of revenue: | |||
Total cost of revenue | 51,896 | 53,318 | 54,413 |
Gross profit | 180,327 | 182,111 | 172,884 |
Operating expenses: | |||
Sales and marketing | 103,214 | 101,360 | 104,360 |
Research and development | 65,157 | 62,991 | 60,700 |
General and administrative | 39,635 | 28,132 | 26,305 |
Litigation settlement expense | 0 | 0 | 2,089 |
Total operating expenses | 208,006 | 192,483 | 193,454 |
Loss from operations | (27,679) | (10,372) | (20,570) |
Non-operating income (expense): | |||
Interest expense | (129) | (162) | (424) |
Interest and other income (expense), net | 1,273 | 989 | (640) |
Total non-operating income (expense), net | 1,144 | 827 | (1,064) |
Loss before income taxes | (26,535) | (9,545) | (21,634) |
Provision for income taxes | 1,082 | 1,206 | 757 |
Net loss | $ (27,617) | $ (10,751) | $ (22,391) |
Net loss per share: | |||
Basic and diluted (in dollars per share) | $ (0.38) | $ (0.15) | $ (0.34) |
Weighted-average shares used in computing net loss per share: | |||
Basic and diluted (in shares) | 72,882 | 70,053 | 65,701 |
Products | |||
Revenue: | |||
Total revenue | $ 144,682 | $ 149,903 | $ 152,308 |
Cost of revenue: | |||
Total cost of revenue | 34,066 | 36,269 | 37,520 |
Services | |||
Revenue: | |||
Total revenue | 87,541 | 85,526 | 74,989 |
Cost of revenue: | |||
Total cost of revenue | $ 17,830 | $ 17,049 | $ 16,893 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (27,617) | $ (10,751) | $ (22,391) |
Other comprehensive loss, net of tax: | |||
Unrealized loss on marketable securities | (21) | (78) | (45) |
Comprehensive loss | $ (27,638) | $ (10,829) | $ (22,436) |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss |
Beginning balance at Dec. 31, 2015 | $ 78,205 | $ 1 | $ 301,886 | $ (223,682) | $ 0 |
Beginning balance (in shares) at Dec. 31, 2015 | 64,172 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation expense | 16,922 | 16,922 | |||
Common stock issued under employee equity incentive plans (in shares) | 3,664 | ||||
Common stock issued under employee equity incentive plans | 10,336 | 10,336 | |||
Common stock issued under asset purchase agreement (in shares) | 227 | ||||
Common stock issued under asset purchase agreement | 1,313 | 1,313 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares | 37 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | 211 | 211 | |||
Repurchase and retirement of common stock (in shares) | (227) | ||||
Repurchase and retirement of common stock | (1,799) | (1,799) | |||
Unrealized loss on marketable securities, net of tax | (45) | (45) | |||
Net loss | (22,391) | (22,391) | |||
Ending balance (in shares) at Dec. 31, 2016 | 67,873 | ||||
Ending balance at Dec. 31, 2016 | 82,752 | $ 1 | 328,869 | (246,073) | (45) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Cumulative effect adjustment | 201 | (201) | |||
Stock-based compensation expense | 17,203 | 17,203 | |||
Common stock issued under employee equity incentive plans (in shares) | 4,256 | ||||
Common stock issued under employee equity incentive plans | 12,244 | 12,244 | |||
Common stock issued under asset purchase agreement | 0 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares | 14 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | 87 | 87 | |||
Repurchase and retirement of common stock (in shares) | (451) | ||||
Repurchase and retirement of common stock | (3,071) | (3,071) | |||
Unrealized loss on marketable securities, net of tax | (78) | (78) | |||
Net loss | (10,751) | (10,751) | |||
Ending balance (in shares) at Dec. 31, 2017 | 71,692 | ||||
Ending balance at Dec. 31, 2017 | 98,386 | $ 1 | 355,533 | (257,025) | (123) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Cumulative effect adjustment | 12,396 | 12,396 | |||
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 | |||
Common stock issued under asset purchase agreement | 0 | ||||
Unrealized loss on marketable securities, net of tax | (21) | (21) | |||
Net loss | (27,617) | ||||
Ending balance (in shares) at Dec. 31, 2018 | 74,301 | ||||
Ending balance at Dec. 31, 2018 | $ 103,883 | $ 1 | $ 376,272 | $ (272,246) | $ (144) |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | |||
Net loss | $ (27,617) | $ (10,751) | $ (22,391) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | |||
Depreciation and amortization | 7,880 | 8,511 | 8,267 |
Stock-based compensation | 17,038 | 17,203 | 16,922 |
Provision for doubtful accounts and sales returns | 212 | 1,147 | 1,579 |
Other non-cash items | (68) | (422) | 875 |
Changes in operating assets and liabilities: | |||
Accounts receivable | (6,119) | 12,362 | (8,724) |
Inventory | (1,529) | (4,669) | 479 |
Prepaid expenses and other assets | (2,434) | (2,399) | (180) |
Accounts payable | (603) | (942) | (334) |
Accrued and other liabilities | 3,116 | (8,868) | 3,140 |
Deferred revenue | 7,331 | 3,018 | 19,609 |
Other | 99 | 124 | (464) |
Net cash (used in) provided by operating activities | (2,694) | 14,314 | 18,778 |
Cash flows from investing activities: | |||
Proceeds from sales of marketable securities | 32,720 | 27,901 | 9,878 |
Proceeds from maturities of marketable securities | 51,024 | 60,138 | 30,750 |
Purchases of marketable securities | (86,823) | (87,447) | (126,231) |
Purchase of investment | (1,000) | 0 | 0 |
Purchases of property and equipment | (2,797) | (5,734) | (4,872) |
Purchase of intangible asset | 0 | 0 | (1,500) |
Payment for acquisition | 0 | 0 | (4,380) |
Net cash used in investing activities | (6,876) | (5,142) | (96,355) |
Cash flows from financing activities: | |||
Proceeds from issuance of common stock under employee equity incentive plans | 3,701 | 12,244 | 10,336 |
Repurchases and retirement of common stock | 0 | (3,071) | (1,799) |
Payment of contingent consideration | 0 | (650) | 0 |
Other | (77) | (103) | (102) |
Net cash provided by financing activities | 3,624 | 8,420 | 8,435 |
Net (decrease) increase in cash and cash equivalents | (5,946) | 17,592 | (69,142) |
Cash and cash equivalents - beginning of period | 46,567 | 28,975 | 98,117 |
Cash and cash equivalents - end of period | 40,621 | 46,567 | 28,975 |
Supplemental Disclosures: | |||
Cash paid for income taxes, net of refunds | 517 | 1,108 | 581 |
Cash paid for interest | 100 | 111 | 194 |
Non-cash investing and financing activities: | |||
Inventory transfers to property and equipment | 1,176 | 2,946 | 2,360 |
Purchases of property and equipment included in accounts payable | 58 | 286 | 162 |
Common stock issued under asset purchase agreement | 0 | 0 | 1,313 |
Vesting of early exercised stock options | $ 0 | $ 87 | $ 211 |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
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 aforementioned challenges and solution requirements. The portfolio consists of six secure application solutions; Thunder Application Delivery Controller (“ADC”), Lightning Application Delivery Controller (“Lightning ADC”), Thunder Carrier Grade Networking (“CGN”), Thunder Threat Protection System (“TPS”), Thunder SSL Insight (“SSLi”) and Thunder Convergent Firewall (“CFW”), and 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 statements of cash flows. We have combined the line item “Accrued litigation expenses” into “Other” within net cash (used in) provided by operating activities. 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 on the consolidated balance sheets. Unrealized gains and losses are reported in accumulated other comprehensive loss, net of taxes, in 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 (expense), 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 collectibility 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 1 to 3 years. 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 2 to 8 years. 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. We did not identify impairment of goodwill for any periods presented. 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 10 years. We did not have impairment of intangible assets during the years ended December 31, 2018 , 2017 and 2016 . 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 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. See Note 2 for further discussion on revenue. 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. 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”) and performance-based restricted stock units (“PSUs”) 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 (“MSUs”) 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, 2018 , 2017 and 2016 . 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 (expense), 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 includes 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 $0.7 million , $0.6 million , and $0.9 million for the years ended December 31, 2018 , 2017 and 2016 , 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 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 outsourced 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, 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, 2018 2017 2016 Customer A (a distribution channel partner) 14% * * Customer B (a distribution channel partner) 10% * 14% * represents less than 10% of total revenue As of December 31, 2018 , two customers accounted for 16% and 12% of our total gross accounts receivable. As of December 31, 2017 , no customer accounted for 10% or more of our total gross accounts receivable. Recently Adopted Accounting Guidance In May 2017, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2017-09, Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting, to provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. This standard is effective for annual periods beginning after December 15, 2017 and interim periods within that reporting period. The amendments will be applied prospectively to an award modified on or after the adoption date. The adoption of ASU 2017-09 on January 1, 2018 did not impact our consolidated financial statements or disclosures. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), as subsequently amended, which supersedes the revenue recognition requirements in Accounting Standards Codification (“ASC”) Topic 605, Revenue Recognition. This ASU requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This ASU also includes Subtopic 340-40, Other Assets and Deferred Costs - Contracts with Customers, which requires the capitalization of incremental customer acquisition costs and amortization of these costs over the contract period or estimated customer life which resulted in the recognition of a deferred commission asset on our consolidated balance sheet. We adopted ASU 2014-09 and its related amendments (collectively “ASC 606”) on January 1, 2018 using the modified retrospective method. See Note 2 for disclosure on the impact of adopting this standard. 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. See Note 9 in this report for disclosures related to the effect of the Tax Cuts and Jobs Act and our utilization of SAB 118. Recent Accounting Pronouncements Not Yet Effective In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), as amended, to supersede existing guidance on accounting for leases in Topic 840, Leases. Topic 842 generally requires lessees to recognize operating and financing lease liabilities and corresponding right-of-use assets on the balance sheet and to provide enhanced disclosures surrounding the amount, timing and uncertainty of cash flows arising from leasing arrangements. We will adopt the new standard effective January 1, 2019 on a modified retrospective basis, under which we will recognize the cumulative effects of initially applying the standard as an adjustment to the opening balance of accumulated deficit on the adoption date and will not restate comparative periods. We will elect the package of practical expedients permitted under the transition guidance, which allows us to carry-forward our historical lease classification and our assessment on whether a contract is or contains a lease. We will also elect to apply the hindsight practical expedient which allows us to use hindsight in determining the lease term. Additionally, we will elect to not apply the new standard’s recognition requirements to leases with an initial term of 12 months or less and instead to recognize lease payments in the consolidated statements of operations on a straight-line basis over the lease term. On the adoption date, we estimate we will recognize on our consolidated balance sheet approximately $5.9 million of right-of-use assets, $6.6 million of lease liabilities, and derecognize existing deferred rent of approximately $0.7 million . These are preliminary estimates that are subject to change as we finalize our adoption. Other than described above, we do not expect the new standard to have any other material impacts on our consolidated financial statements. There are several other new accounting pronouncements issued by the FASB, which we will adopt. However, we do not believe any of those accounting pronouncements will have a material impact on our consolidated financial position, operating results or statements of cash flows. |
Revenue Revenue
Revenue Revenue | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue ASC 606 Adoption Impact On January 1, 2018, we adopted ASC 606 applying the modified retrospective method. We 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. We 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, we also adopted ASC 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, we refer to ASC 606 and ASC 340-40 as the “new standard.” Adoption of the new standard resulted in changes to our accounting policies for revenue recognition, commissions expense and deferred commissions as discussed below. We 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 tables summarize the impact of the new standard on our consolidated balance sheet and consolidated statement of operations for the period presented: Selected Consolidated Balance Sheet Line Items December 31, 2018 (in thousands) As Reported Adjustments Balance Without Adopting the New Standard Assets Prepaid expenses and other current assets $ 14,662 $ (6,557 ) $ 8,105 Other non-current assets 8,620 (3,184 ) 5,436 Liabilities Deferred revenue, current 63,874 3,390 67,264 Deferred revenue, non-current 34,092 3,204 37,296 Stockholders' Equity Accumulated deficit (272,246 ) (16,335 ) (288,581 ) Selected Consolidated Statement of Operations Line Items Year Ended December 31, 2018 (in thousands, except per share amounts) As Reported Adjustments 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 ) Changes in Accounting Policies Revenue Recognition 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. Revenue is recognized, net of applicable taxes, upon transfer of control of promised products or services to customers in an amount that reflects the consideration we expect to be entitled to receive in exchange for those products or services. 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 discernable 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. Contract Balances The following table reflects contract balances with customers (in thousands): As of As of Adoption Balance Sheet Line Reference December 31, 2018 January 1, 2018 Accounts receivables, net $ 53,972 $ 48,266 Deferred revenue, current 63,874 59,360 Deferred revenue, non-current 34,092 31,276 We receive payments from customers based upon billing cycles. Invoice payment terms are usually ranging from 30 to 90 days. Accounts receivable are recorded when the right to consideration becomes unconditional. Contract assets include amounts related to our contractual right to consideration for performance obligations not yet billed and are included in prepaid and other current assets in the consolidated balance sheets. The contract assets amount is immaterial as of December 31, 2018 and as of the adoption date. Deferred revenue primarily consists of amounts that have been invoiced but not yet been recognized as revenue and consists of performance obligations pertaining to support and subscription services. During the year ended December 31, 2018 , we recognized revenue of $60.2 million related to deferred revenues at the beginning of the period. Deferred revenue consisted of the following (in thousands): December 31, December 31, Deferred revenue: Products $ 5,216 $ 6,161 Services 92,750 88,476 Total deferred revenue 97,966 94,637 Less: current portion (63,874 ) (61,858 ) Non-current portion $ 34,092 $ 32,779 Deferred Contract Acquisition Costs In connection with the adoption of ASC 340-40, we capitalize certain contract acquisition costs consisting of incremental sales commissions incurred to obtain customer contracts. Deferred commissions related to product revenues are recognized upon transfer of control to customers. Deferred commissions related to services revenue are recognized as the related performance obligations are met. Deferred commissions that will be recognized during the succeeding 12-month period are recorded as prepaid expenses and other current assets, and the remaining portion is recorded as other non-current assets. Amortization of deferred commissions is included in sales and marketing expense. As of December 31, 2018 , current and non-current portions of deferred contract acquisition costs were $6.6 million and $3.2 million , respectively, and the related amortization amount was $4.9 million for 2018. We had no impairment loss in relation to the costs capitalized and no asset impairment charges related to contract assets. Remaining Performance Obligations Remaining performance obligations represent contracted revenues that are non-cancellable and have not yet been recognized due to unsatisfied or partially satisfied performance obligations, which includes deferred revenues and amounts that will be invoiced and recognized as revenues in future periods. We expect to recognize revenue on the remaining performance obligations as follows (in thousands): December 31, 2018 Within 1 year $ 63,874 Next 2 to 3 years 27,678 Thereafter 6,414 Total $ 97,966 |
Marketable Securities and Fair
Marketable Securities and Fair Value Measurements | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 December 31, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Certificates of deposit $ 11,000 $ 7 $ (3 ) $ 11,004 $ 17,000 $ 6 $ (1 ) $ 17,005 Corporate securities 46,442 11 (116 ) 46,337 39,154 1 (76 ) 39,079 U.S. Treasury and agency securities 1,748 — (12 ) 1,736 5,744 — (19 ) 5,725 Commercial paper 12,327 1 (5 ) 12,323 9,225 1 (2 ) 9,224 Asset-backed securities 16,381 5 (32 ) 16,354 13,567 — (33 ) 13,534 Total $ 87,898 $ 24 $ (168 ) $ 87,754 $ 84,690 $ 8 $ (131 ) $ 84,567 During the years ended December 31, 2018 and 2017 , we did not reclassify any amount to earnings from accumulated other comprehensive loss related to unrealized gains or losses. The following table summarizes the cost and estimated fair value of marketable securities based on stated effective maturities as of December 31, 2018 (in thousands): Amortized Cost Fair Value Less than 1 year $ 61,153 $ 61,042 Mature in 1 - 3 years 26,745 26,712 Total $ 87,898 $ 87,754 All available-for-sale securities have been classified as current because they are available for use in current operations. Marketable securities in an unrealized loss position consisted of the following (in thousands): Less Than 12 Months 12 Months or More Total As of December 31, 2018 Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Certificates of deposit $ 2,997 $ (3 ) $ — $ — $ 2,997 $ (3 ) Corporate securities 29,435 (68 ) 7,601 (48 ) 37,036 (116 ) U.S. Treasury and agency securities 992 (7 ) 744 (5 ) 1,736 (12 ) Commercial paper 9,888 (5 ) — — 9,888 (5 ) Asset-backed securities 8,499 (15 ) 4,758 (17 ) 13,257 (32 ) Total $ 51,811 $ (98 ) $ 13,103 $ (70 ) $ 64,914 $ (168 ) Less Than 12 Months 12 Months or More Total As of December 31, 2017 Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Certificates of deposit $ 2,999 $ (1 ) $ — $ — $ 2,999 $ (1 ) Corporate securities 36,079 (74 ) 1,499 (2 ) 37,578 (76 ) U.S. Treasury and agency securities 2,246 (2 ) 3,479 (17 ) 5,725 (19 ) Commercial paper 4,232 (2 ) — — 4,232 (2 ) Asset-backed securities 11,415 (32 ) 728 (1 ) 12,143 (33 ) Total $ 56,971 $ (111 ) $ 5,706 $ (20 ) $ 62,677 $ (131 ) Based on evaluation of securities that have been in a continuous loss position, we determined the gross unrealized losses on our marketable securities as of December 31, 2018 were temporary in nature and related primarily to interest rate shifts rather than changes in the underlying credit quality of the securities we hold. As we have the ability to hold these investments until maturity, or for the foreseeable future, no decline was deemed to be other-than-temporary. Fair Value Measurements The following is a summary of our cash, cash equivalents and marketable securities measured at fair value on a recurring basis (in thousands): December 31, 2018 December 31, 2017 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash $ 39,113 $ — $ — $ 39,113 $ 34,453 $ — $ — $ 34,453 Cash equivalents 1,508 — — 1,508 12,114 — — 12,114 Certificates of deposit — 11,004 — 11,004 — 17,005 — 17,005 Corporate securities — 46,337 — 46,337 — 39,079 — 39,079 U.S. Treasury and agency securities — 1,736 — 1,736 — 5,725 — 5,725 Commercial paper — 12,323 — 12,323 — 9,224 — 9,224 Asset-backed securities — 16,354 — 16,354 — 13,534 — 13,534 Total $ 40,621 $ 87,754 $ — $ 128,375 $ 46,567 $ 84,567 $ — $ 131,134 There were no transfers between Level 1 and Level 2 fair value measurement categories during the years ended December 31, 2018 and 2017 . |
Other Balance Sheet Accounts De
Other Balance Sheet Accounts Details | 12 Months Ended |
Dec. 31, 2018 | |
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 allowance for doubtful accounts (in thousands): December 31, December 31, Allowance for doubtful accounts, beginning balance $ 983 $ 1,920 Increase (decrease) of provision (26 ) 364 Write-offs (638 ) (1,301 ) Allowance for doubtful accounts, ending balance $ 319 $ 983 Inventory Inventory consisted of the following (in thousands): December 31, December 31, Raw materials $ 7,979 $ 6,643 Finished goods 9,951 10,934 Total inventory $ 17,930 $ 17,577 Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following (in thousands): December 31, December 31, Prepaid expenses $ 6,679 $ 5,768 Deferred contract acquisition costs 6,564 — Other 1,419 1,057 Prepaid expenses and other current assets $ 14,662 $ 6,825 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 $ 49,804 $ 47,817 Software 1-3 4,088 3,988 Furniture and fixtures 1-3 967 950 Leasehold improvements 2-8 3,832 3,824 Construction in progress 160 — Property and equipment, gross 58,851 56,579 Less: accumulated depreciation (51,589 ) (46,666 ) Property and equipment, net $ 7,262 $ 9,913 Depreciation expense on property and equipment was $6.4 million , $7.1 million and $7.6 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. Intangible Assets Purchased intangible assets, net, consisted of the following (in thousands): December 31, 2018 December 31, 2017 Cost Accumulated Amortization Net Cost Accumulated Amortization Net Developed technology $ 5,050 $ (2,525 ) $ 2,525 $ 5,050 $ (1,515 ) $ 3,535 Patents 2,936 (1,713 ) 1,223 2,936 (1,281 ) 1,655 Total $ 7,986 $ (4,238 ) $ 3,748 $ 7,986 $ (2,796 ) $ 5,190 Amortization expense related to purchased intangible assets was $1.4 million , $1.4 million and $0.7 million for the years ended December 31, 2018 , 2017 and 2016 . Purchased intangible assets will be amortized over a remaining weighted average useful life of 2.6 years. Future amortization expense for purchased intangible assets as of December 31, 2018 is as follows (in thousands): Fiscal Year 2019 $ 1,443 2020 1,442 2021 863 Total $ 3,748 Accrued Liabilities Accrued liabilities consisted of the following (in thousands): December 31, December 31, Accrued compensation and benefits $ 15,283 $ 13,828 Accrued tax liabilities 4,455 2,985 Other 5,553 5,022 Total accrued liabilities $ 25,291 $ 21,835 |
Credit Facility
Credit Facility | 12 Months Ended |
Dec. 31, 2018 | |
Line of Credit Facility [Abstract] | |
Credit Facility | Credit Facility In November 2016, we entered into a loan and security agreement (the “2016 Credit Facility”) with Silicon Valley Bank (“SVB”) as the lender. The 2016 Credit Facility provides a three -year, $25.0 million revolving credit facility, which includes a maximum of $25.0 million letter of credit subfacility. When the balance of our cash, cash equivalents and marketable securities minus outstanding revolving loans and letters of credit equals or exceeds $50.0 million , loans may be advanced under the 2016 Credit Facility up to the full $25.0 million . When our net cash falls below $50.0 million , loans may be advanced under the 2016 Credit Facility based on a borrowing base equal to a specified percentage of the value of our eligible accounts receivable. The loans bear interest, at our option, at (i) the prime rate reported in The Wall Street Journal, minus 0.50% or (ii) a LIBOR rate determined in accordance with the 2016 Credit Facility, plus 2.50% . We are required to pay customary closing fees, commitment fees and letter of credit fees for a facility of this size and type. In September 2018, we entered into an amendment with SVB to reduce the unused revolving credit facility fee on the 2016 Credit Facility from 0.4% to 0.3% . Our obligations under the 2016 Credit Facility are secured by substantially all of our assets, excluding our intellectual property. The 2016 Credit Facility contains customary affirmative and negative covenants. In addition, the 2016 Credit Facility requires us to maintain compliance with an adjusted quick ratio of not less than 1.50 :1.00, as determined in accordance with the 2016 Credit Facility. The 2016 Credit Facility also restricts our ability to pay cash dividends or make other distributions on our capital stock. As of December 31, 2018 , we had no outstanding balance under the 2016 Credit Facility and were in compliance with all facility covenants. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Proceedings Litigation From time to time, we may be party or subject to various legal proceedings and claims, either asserted or unasserted, which arise in the ordinary course of business. Some of these proceedings involve claims that are subject to substantial uncertainties and unascertainable damages. We make a provision for a liability when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Unless otherwise specifically disclosed in this note, we have determined that no provision for liability nor disclosure is required related to any claim against us because: (a) there is not a reasonable possibility that a loss exceeding amounts already recognized (if any) may be incurred with respect to such claim; (b) a reasonably possible loss or range of loss cannot be estimated; or (c) such estimate is immaterial. On March 22, 2018, the Company, our Chief Executive Officer, our Chief Financial Officer, and certain former officers, were named as defendants in a putative class action lawsuit filed in the United States District Court for the Northern District of California, captioned Shah v. A10 Networks, Inc. et al., 3:18-cv-01772-VC (the “Securities Action”). On August 31, 2018, the court appointed a lead plaintiff. On October 5, 2018, the lead plaintiff filed an amended complaint which asserted claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. The amended complaint named the same defendants as the initial complaint, in addition to one of the Company’s former executive vice presidents. The Company and individual defendants filed motions to dismiss the amended complaint. On February 21, 2019, the court granted the motions to dismiss with leave to amend within 21 days . The lead plaintiff did not file an amended complaint by the Court-ordered deadline. On May 30, 2018, certain of our current and former directors and officers were named as defendants in a putative shareholder derivative lawsuit filed in the United States District Court for the Northern District of California, captioned Moulton v. Chen et al., 3:18-cv-03223-VC (the “Derivative Action”). We were also named as a nominal defendant. The complaint in the Derivative Action alleges breaches of fiduciary duties and other related claims in connection with purported misrepresentations related to internal controls and revenues and failures to ensure that financial statements were made in accordance with generally accepted accounting principles. Plaintiff seeks unspecified damages allegedly sustained by the Company, restitution, and other relief. On July 11, 2018 the Derivative Action was stayed until a motion to dismiss in the Securities Action is granted with prejudice or denied in whole or in part. Defendants are not required to move or otherwise respond to the current complaint. On October 24, 2018, the Company was sued in the Federal District Court for the Northern District of California by FireNet Technologies, LLC, which we believe is a non-practicing patent holding company. The complaint alleged infringement of certain patents purportedly owned by the plaintiff. In January 2019, we entered into a settlement agreement whereby we obtained a fully-paid up license and the case was dismissed with prejudice on February 4, 2019. Investigations The U.S. Securities and Exchange Commission (“SEC”) is conducting a private investigation into possible violations of Section 17(a) of the Securities Act of 1933 and Sections 10(b), 13(a), and 13(b) of the Securities Exchange Act of 1934 (“Exchange Act”) and Rules 10b-5, 12b-20, 13a-1, 13a-11, 13a-13, 13a-14, 13a-15, and 13b2-1 thereunder. The Company is cooperating with the SEC regarding this investigation. The Company is unable to predict the duration, scope or outcome of the investigation, but an adverse outcome is reasonably possible. In such an event, the Company could be required to pay fines and sanctions and/or implement additional remedial measures. However, the Company is not able to estimate the likelihood or a reasonable range of possible loss. Lease and Other Commitments We lease various operating spaces in the United States, Asia and Europe under non-cancelable operating lease arrangements that expire on various dates through April 2022 . These arrangements require us to pay certain operating expenses, such as taxes, repairs and insurance, and contain renewal and escalation clauses. We recognize rent expense under these arrangements on a straight-line basis over the term of the lease. We have open purchase commitments with third-party contract manufacturers with facilities in Taiwan to supply nearly all of our finished goods inventories, spare parts, and accessories. These purchase orders are expected to be paid within one year of the issuance date. The following table summarizes our non-cancelable operating leases and unconditional purchase obligations as of December 31, 2018 (in thousands): Years Ending December 31, Operating Leases and Other Contractual Obligation (1) Purchase Commitments Total 2019 $ 3,907 $ 19,296 $ 23,203 2020 1,921 — 1,921 2021 1,194 — 1,194 2022 313 — 313 2023 — — — Total $ 7,335 $ 19,296 $ 26,631 (1) Other contractual obligation represents the technology licensing arrangement we entered into in 2008 over the life of the associated patents. The last annual payment of $140 thousand is due in January 2019. Rent expense was $4.5 million , $4.1 million and $3.5 million for the years ended December 31, 2018 , 2017 and 2016 , 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 indemnification and guarantee provisions and our guarantees and indemnification arrangements have not had any significant impact on our consolidated financial statements to date. |
Equity Incentive Plans and Stoc
Equity Incentive Plans and Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Equity Incentive Plans and Stock-Based Compensation | Equity Incentive Plans and Stock-Based Compensation Equity Incentive Plans 2014 Equity Incentive Plan The 2014 Equity Incentive Plan (the “2014 Plan”) provides for the granting of stock options, restricted stock awards, restricted stock units (“RSUs”), performance-based RSUs (“PSUs”), stock appreciation rights, performance units and performance shares to our employees, consultants and members of our board of directors. In June 2015, our board of directors adopted and our stockholders approved an amendment and restatement of the 2014 Plan, which increased the number of shares available for issuance under the 2014 Plan by the number of shares granted under the 2008 Stock Plan (the “2008 Plan”) that were or may in the future be canceled or otherwise forfeited or repurchased after March 20, 2014. As of December 31, 2018 , we had a total of 8,841,016 shares available for future grant. The shares authorized for the 2014 Plan increase annually by the least of (i) 8,000,000 shares, (ii) 5% of the outstanding shares of common stock on the last day of our immediately preceding fiscal year, or (iii) such other amount as determined by our Board of Directors. Accordingly, on January 1, 2019 , the number of shares in the 2014 Plan increased by 3,715,060 shares, representing 5% of the prior year end’s common stock outstanding. To date, we have granted stock options, RSUs and PSUs under the 2014 Plan. Stock options expire no more than 10 years from the grant date and generally vest over four years. In the case of an incentive stock option granted to an employee, who at the time of grant, owns stock representing more than 10% of the total combined voting power of all classes of stock, the per share exercise price will be no less than 110% of the fair market value per share on the date of grant, and the incentive stock option will expire no later than five years from the date of grant. For incentive stock options granted to any other employees and nonstatutory stock options granted to employees, consultants, or members of our board of directors, the per share exercise price will be no less than 100% of the fair market value per share on the date of grant. RSUs and PSUs generally vest from one to four years. 2014 Employee Stock Purchase Plan The 2014 Employee Stock Purchase Plan (the “2014 Purchase Plan”) was suspended effective March 16, 2018 due to the delay of the Form 10-K filing for the year ended December 31, 2017. In October 2018, the Board approved amending the 2014 Purchase Plan (the “Amended 2014 Purchase Plan”) in order to, among other things, reduce the maximum contribution participants can make under the plan from 15% to 10% of eligible compensation. The Amended 2014 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 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. As of December 31, 2018 , we had 3,065,182 shares available for future issuance under the Amended 2014 Purchase Plan. During 2018, there was no stock purchased by employees under the Amended 2014 Purchase Plan or the 2014 Purchase Plan. Stock-Based Compensation A summary of our stock-based compensation expense is as follows (in thousands): Years Ended December 31, 2018 2017 2016 Stock-based compensation by type of award: Stock options $ 1,353 $ 2,705 $ 4,153 Stock awards 10,445 11,421 12,567 Employee stock purchase rights (1) 5,240 3,077 202 Total $ 17,038 $ 17,203 $ 16,922 Stock-based compensation by category of expense: Cost of revenue $ 1,602 $ 1,362 $ 1,105 Sales and marketing 5,667 6,075 7,006 Research and development 6,631 6,343 5,732 General and administrative 3,138 3,423 3,079 Total $ 17,038 $ 17,203 $ 16,922 (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, 2018 , we had $33.0 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 2.5 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 Employee Stock Purchase Rights Years Ended December 31, Years Ended December 31, 2018 2017 2016 2018 2017 2016 Expected term (in years) 4.8 4.7 4.9 0.5 1.3 1.3 Risk-free interest rate 3.1% 2.0% 1.4% 2.6% 1.4% 0.8% Expected volatility 37% 43% 49% 28% 39% 42% Dividend rate —% —% —% —% —% —% • 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 (thousands) Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (years) Aggregate Intrinsic Value (1) (thousands) Outstanding as of December 31, 2017 6,018 $ 5.18 Granted 317 $ 5.93 Exercised (1,029 ) $ 3.60 Canceled (632 ) $ 8.05 Outstanding as of December 31, 2018 4,674 $ 5.19 5.0 $ 7,395 Vested and exercisable as of December 31, 2018 4,062 $ 5.01 4.4 $ 7,188 (1) The aggregate intrinsic value represents the excess of the closing price of our common stock of $6.24 as of December 31, 2018 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, 2018 2017 2016 Weighted-average grant date fair value of options granted (per share) $ 2.19 $ 3.14 $ 2.38 Intrinsic value of options exercised (1) $ 2,629 $ 8,013 $ 5,990 (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 We have granted RSUs to our employees, consultants and members of our board of directors, and PSUs and market performance-based restricted stock units (“MSUs”) to certain executives. In 2014 and 2015, we granted 540,000 MSUs and 40,000 MSUs, respectively, to certain executives. These MSUs will vest if the closing price of our common stock remains above certain predetermined target prices for 20 consecutive trading days within a 4 -year period following the grant date, subject to continued service by the award holder. As of December 31, 2018 , none of these MSUs were vested and all MSUs granted in 2014 expired. In February 2016, we granted 547,000 PSUs with certain financial and operational targets. Actual performance, as measured at the time and prior to the restatement of the 2016 financial statements, resulted in participants achieving 80% of target. Given the PSUs did not contain explicit or implicit claw back rights, there was no change to stock-based compensation expense for the impact of the previously disclosed restatement of the 2016 consolidated financial statements. As of December 31, 2018 , 178,402 shares had vested, 181,598 shares had been forfeited, and the remaining shares will vest (as to 80% ) in annual tranches through February 2020 subject to continued service vesting requirements. In October 2016, we granted 60,641 PSUs with certain financial and operational targets. To the extent they become eligible to vest upon achievement of the performance targets, these PSUs additionally are subject to service condition vesting requirements with scheduled vesting dates of March 2017 through June 2018. As of December 31, 2018 , 30,320 shares were vested and 30,321 shares were forfeited. In October 2018, we granted 464,888 PSUs with certain financial targets. These PSUs will become eligible to vest at 75% upon the achievement of the performance targets by December 31, 2020, and are subject to service condition vesting requirements. The remaining 25% of these PSUs will become eligible to vest on the first anniversary of the initial vesting date. None of these PSUs were vested as of December 31, 2018. The following table summarizes our stock award activities and related information: Number of Shares (thousands) Weighted-Average Grant Date Fair Value Weighted-Average Remaining Vesting Term (years) Nonvested as of December 31, 2017 5,568 $ 6.88 Granted 3,568 $ 5.95 Released (1,580 ) $ 7.04 Canceled (1,582 ) $ 6.03 Nonvested as of December 31, 2018 5,974 $ 6.51 1.6 Following is additional information pertaining to our RSU activities (in thousands, except per share data): Years Ended December 31, 2018 2017 2016 Weighted-average grant date fair value of stock awards granted (per share) $ 5.95 $ 8.55 $ 6.50 Total fair value of stock awards released (vested) during the period $ 9,714 $ 13,961 $ 9,687 Stock Repurchase Program On October 23, 2017, our board of directors authorized a share repurchase program for up to $20.0 million of our common stock over 12 months. No shares were repurchased under this program through its expiration in October 2018. |
Net Loss Per Share
Net Loss Per Share | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | Net Loss Per Share Basic net loss per share is computed using the weighted average number of common shares outstanding for the period. Diluted net loss per share is computed using the weighted average number of common shares outstanding for the period plus potential dilutive common shares, including stock options, RSUs and employee stock purchase rights, unless the potential common shares are anti-dilutive. Since we had net losses in the years ended December 31, 2018 , 2017 and 2016 , none of the potential dilutive common shares were included in the computation of diluted shares for these periods, as inclusion of such shares would have been anti-dilutive. The following table presents common shares related to potentially dilutive shares excluded from the calculation of diluted net loss per share as their effect would have been anti-dilutive (in thousands): Years Ended December 31, 2018 2017 2016 Stock options, RSUs and employee stock purchase rights 9,621 12,184 13,631 Common stock subject to repurchase — — 14 Total 9,621 12,184 13,645 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The geographical breakdown of loss before income taxes is as follows (in thousands): Years Ended December 31, 2018 2017 2016 Domestic loss $ (29,658 ) $ (13,752 ) $ (24,429 ) Foreign income 3,123 4,207 2,795 Loss before income taxes $ (26,535 ) $ (9,545 ) $ (21,634 ) The provision for income taxes consists of the following (in thousands): Years Ended December 31, 2018 2017 2016 Current provision for income taxes: State $ 44 $ 48 $ 41 Foreign 953 1,023 1,009 Total current 997 1,071 1,050 Deferred tax expense (benefit): Federal (13 ) 26 17 Foreign 98 109 (310 ) Total deferred 85 135 (293 ) Provision for income taxes $ 1,082 $ 1,206 $ 757 The reconciliation of the statutory federal income tax and the provision for income tax is as follows (in thousands, except percentages). The amounts disclosed as “Federal tax credits - net of uncertain tax positions” and “Non-deductible meals and entertainment expenses” for 2017 and 2016 were included in “Changes in federal valuation allowance” and “Other permanent items,” respectively, as previously reported. Such line items have been separately presented to correct errors in the above disclosures and to conform to the current year presentation. We assessed the significance of the misclassifications and concluded that they were not material to any prior periods. These corrections had no effect on our Consolidated Statements of Operations. Years Ended December 31, 2018 2017 2016 Amount Percentage Amount Percentage Amount Percentage Tax at statutory rate $ (5,572 ) 21.0 % $ (3,245 ) 34.0 % $ (7,356 ) 34.0 % State tax - net of federal benefits 39 (0.1 ) 32 (0.3 ) 27 (0.1 ) Foreign rate differential 258 (1.0 ) (655 ) 6.9 (666 ) 3.1 Changes in federal valuation allowance 6,430 (24.2 ) (21,038 ) 220.4 9,501 (44.0 ) Change in federal tax rate due to Tax Cuts and Jobs Act — — 28,185 (295.3 ) — — Stock-based compensation 1,950 (7.3 ) (1,169 ) 12.2 88 (0.4 ) Non-deductible meals and entertainment expenses 342 (1.3 ) 243 (2.5 ) 266 (1.2 ) Other permanent items 351 (1.3 ) 104 (1.1 ) 317 (1.5 ) Federal tax credits - net of uncertain tax position (2,634 ) 9.9 (1,634 ) 17.1 (1,875 ) 8.7 Expenses for uncertain tax positions 137 (0.5 ) 311 (3.3 ) 358 (1.7 ) Other (219 ) 0.7 72 (0.7 ) 97 (0.4 ) Provision for income taxes $ 1,082 (4.1 )% $ 1,206 (12.6 )% $ 757 (3.5 )% The tax effects of temporary differences that give rise to significant portions of deferred tax assets (liabilities) are as follows (in thousands): December 31, December 31, Deferred tax assets: Net operating loss carryforwards $ 43,869 $ 37,326 Research and development credits, net of uncertain tax positions 22,051 17,119 Accruals, reserves, and other 11,264 13,992 Stock-based compensation 2,628 2,994 Depreciation and amortization 1,952 1,954 Gross deferred tax assets 81,764 73,385 Valuation allowance (78,681 ) (72,458 ) Total deferred tax assets 3,083 927 Deferred tax liabilities: Deferred contract acquisition costs (2,256 ) — Other (13 ) (28 ) Total deferred tax liabilities (2,269 ) (28 ) Net deferred tax assets $ 814 $ 899 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 $78.7 million and $72.5 million against the U.S. net deferred tax assets as of December 31, 2018 and 2017 , respectively. For the years ended December 31, 2018 and 2017 , the valuation allowance increased by $6.2 million and decreased by $15.6 million , respectively. As of December 31, 2018 and 2017 , we had U.S. federal net operating loss carryforwards of $185.0 million and $152.3 million , respectively, and state net operating loss carryforwards of $75.3 million and $73.6 million , respectively. The federal net operating loss carryforwards will expire at various dates beginning in the year ending December 31, 2025 , if not utilized. The state net operating losses expire in various years ending between 2019 and 2038 , if not utilized. Additionally, as of December 31, 2018 and 2017 , we had U.S. federal research and development credit carryforwards of $13.3 million and $10.3 million , and state research and development credit carryforwards of $14.2 million and $10.9 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 net operating losses and credit carryforwards may be subject to an annual limitation provided for in the Internal Revenue Code Section 382 and similar state codes. Any annual limitation could result in the expiration of net operating loss 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, 2018 and 2017 , the undistributed earnings approximated $10.8 million and $8.4 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, 2018 , 2017 and 2016 , we had gross unrecognized tax benefits of $4.2 million , $3.8 million and $3.4 million , respectively. Accrued interest expense related to unrecognized tax benefits is recognized as part of our income tax provision in our consolidated statements of operations and is immaterial for the year ended December 31, 2018. Our policy for classifying interest and penalties associated with unrecognized income tax benefits is to include such items in income tax expense. The activity related to the unrecognized tax benefits is as follows (in thousands): Years Ended December 31, 2018 2017 2016 Gross unrecognized tax benefits—beginning balance $ 3,782 $ 3,360 $ 2,552 Increases (decrease) related to tax positions from prior years (266 ) (151 ) 66 Increases related to tax positions taken during current year 675 573 742 Decreases related to tax positions taken during the current year — — — Gross unrecognized tax benefits—ending balance $ 4,191 $ 3,782 $ 3,360 These amounts are related to certain deferred tax assets with a corresponding valuation allowance. As of December 31, 2018 , the total amount of unrecognized tax benefits, if recognized, that would affect the effective tax rate is $1.1 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. We are subject to taxation in the United States, various states, and several foreign jurisdictions. Because we have net operating loss and credit carryforwards, there are open statutes of limitations in which federal, state and foreign taxing authorities may examine our tax returns for all years from 2005 through the current period. We are not currently under examination by any taxing authorities. The Tax Cuts and Jobs Act On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act makes broad and complex changes to the U.S. tax code including, but not limited to: (1) reducing the U.S. federal corporate tax rate from 35 percent to 21 percent; (2) generally eliminating U.S. federal income taxes on dividends from foreign subsidiaries; (3) requiring a current inclusion in U.S. federal taxable income of certain earnings of controlled foreign corporations; (4) eliminating the corporate alternative minimum tax (“AMT”) and changing how existing AMT credits can be realized; (5) creating the base erosion anti-abuse tax, a new minimum tax; (6) creating a new limitation on deductible interest expense; and (7) changing rules related to uses and limitations of net operating loss carryforwards created in tax years beginning after December 31, 2017. On December 22, 2017, the SEC issued SAB 118, which provides guidance on accounting for the income tax effects of the Tax Act. SAB 118 provides a measurement period that should not extend beyond one year from the Tax Act enactment date for companies to complete the accounting relating to the Tax Act under Accounting Standards Codification Topic 740, “Income Taxes” (“ASC 740”). In accordance with SAB 118, a company must reflect the income tax effects of those aspects of the Tax Act for which the accounting under ASC 740 is complete. To the extent that a company’s accounting for Tax Act-related income tax effects is incomplete, but the company is able to determine a reasonable estimate, it must record a provisional estimate in its financial statements. If a company cannot determine a provisional estimate to be included in its financial statements, it should continue to apply ASC 740 on the basis of the provisions of the tax laws that were in effect immediately before the enactment of the Tax Act. We have completed our analysis of the Tax Act’s income tax effects. In accordance with SAB 118, the Tax Act-related income tax effects that we initially reported as provisional estimates were refined as additional analysis was performed. We have elected to account for Global Intangible Low-Taxed Income under the Tax Act as period costs when incurred. There was no material impact to our consolidated financial statements when our analysis was completed in the fourth quarter of 2018. |
Geographic Information
Geographic Information | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 2017 2016 United States $ 103,791 $ 115,536 $ 115,706 Japan 55,205 51,488 52,951 Asia Pacific, excluding Japan 36,897 33,189 29,829 EMEA 27,615 27,859 23,669 Latin America 8,715 7,357 5,142 Total $ 232,223 $ 235,429 $ 227,297 The following table is a summary of our long-lived assets which include property and equipment, net based on the physical location of the assets (in thousands): December 31, December 31, United States $ 5,525 $ 7,733 Japan 1,108 1,510 Other 629 670 Total $ 7,262 $ 9,913 |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plan We adopted a profit sharing plan qualified under Section 401(k) of the Internal Revenue Code which is offered to all of our United States employees. Participants in the plan may elect to contribute up to $18,500 of their annual compensation to the plan for the 2018 calendar year. Individuals who are 50 or older may contribute an additional $6,000 of their annual income. In 2018 , we matched 50% of the first 6% of the employee’s eligible compensation for a maximum employer contribution of $2,500 per participant. We contributed $1.0 million , $1.0 million and $0.9 million during the years ended December 31, 2018 , 2017 and 2016 , respectively. |
Appcito Acquisition
Appcito Acquisition | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Appcito Acquisition | Appcito Acquisition On June 23, 2016, we entered into an asset purchase agreement with Appcito, Inc. (“Appcito”), a privately held company engaged in providing a unified set of services for applications deployed on cloud infrastructure with facilities located in Santa Clara, California and Bangalore, India. Under the terms of the purchase agreement, we acquired substantially all of the assets of Appcito. This acquisition enhances our position as a comprehensive secure application services leader. The total purchase consideration was $6.5 million . The fair value of the total purchase consideration was $6.3 million , which consisted of $5.0 million in cash consideration, less a holdback of $0.7 million , which was fully paid during the second quarter of 2017, and 227,404 unregistered shares of our common stock with an aggregated fair value of $1.3 million . The total purchase consideration was allocated to Appcito’s net tangible and intangible assets based on their estimated fair values at the acquisition date as follows (in thousands): Developed technology $ 5,050 Goodwill 1,235 Other tangible assets 58 Total assets acquired $ 6,343 |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data (Unaudited) | Selected Quarterly Financial Data (Unaudited) Selected quarterly financial data for 2018 and 2017 is as follows (in thousands, except per share amounts): Quarter Ended March 31, 2018 June 30, 2018 September 30, 2018 December 31, 2018 Revenue $ 49,183 $ 60,713 $ 60,502 $ 61,825 Gross profit $ 37,299 $ 47,526 $ 47,488 $ 48,014 Net loss $ (19,670 ) $ (4,532 ) $ (1,807 ) $ (1,608 ) Net loss per share - basic $ (0.27 ) $ (0.06 ) $ (0.02 ) $ (0.02 ) Net loss per share - diluted $ (0.27 ) $ (0.06 ) $ (0.02 ) $ (0.02 ) Quarter Ended March 31, 2017 June 30, 2017 September 30, 2017 December 31, 2017 Revenue $ 63,934 $ 53,973 $ 62,005 $ 55,517 Gross profit $ 49,191 $ 41,173 $ 48,138 $ 43,609 Net income (loss) $ (1,337 ) $ (7,955 ) $ (2,245 ) $ 786 Net income (loss) per share - basic $ (0.02 ) $ (0.11 ) $ (0.03 ) $ 0.01 Net income (loss) per share - diluted $ (0.02 ) $ (0.11 ) $ (0.03 ) $ 0.01 |
Description of Business and S_2
Description of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | 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 | Reclassifications Certain prior year amounts have been reclassified to conform to current year presentation in the consolidated statements of cash flows. We have combined the line item “Accrued litigation expenses” into “Other” within net cash (used in) provided by operating activities. |
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 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 | 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 on the consolidated balance sheets. Unrealized gains and losses are reported in accumulated other comprehensive loss, net of taxes, in 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 (expense), 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 | 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 Accounts Accounts receivable are recorded at invoice amounts, net of allowances for doubtful accounts. We evaluate the collectibility 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 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, 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 1 to 3 years. 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 2 to 8 years. |
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. We did not identify impairment of goodwill for any periods presented. |
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 10 years. We did not have impairment of intangible assets during the years ended December 31, 2018 , 2017 and 2016 . |
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 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. See Note 2 for further discussion on revenue. |
Research and Development Costs | 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. |
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”) and performance-based restricted stock units (“PSUs”) 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 (“MSUs”) 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, 2018 , 2017 and 2016 . |
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 (expense), 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 includes 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 Advertising 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 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 outsourced 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. Significant customers, including distribution channel partners and direct customers, are those which represent 10% or more of our total revenue for each period presented or our gross accounts receivable balance as of each respective balance sheet date. |
Recently Adopted Accounting Guidance/Recent Accounting Pronouncements Not Yet Effective | Recently Adopted Accounting Guidance In May 2017, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2017-09, Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting, to provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. This standard is effective for annual periods beginning after December 15, 2017 and interim periods within that reporting period. The amendments will be applied prospectively to an award modified on or after the adoption date. The adoption of ASU 2017-09 on January 1, 2018 did not impact our consolidated financial statements or disclosures. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), as subsequently amended, which supersedes the revenue recognition requirements in Accounting Standards Codification (“ASC”) Topic 605, Revenue Recognition. This ASU requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This ASU also includes Subtopic 340-40, Other Assets and Deferred Costs - Contracts with Customers, which requires the capitalization of incremental customer acquisition costs and amortization of these costs over the contract period or estimated customer life which resulted in the recognition of a deferred commission asset on our consolidated balance sheet. We adopted ASU 2014-09 and its related amendments (collectively “ASC 606”) on January 1, 2018 using the modified retrospective method. See Note 2 for disclosure on the impact of adopting this standard. 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. See Note 9 in this report for disclosures related to the effect of the Tax Cuts and Jobs Act and our utilization of SAB 118. Recent Accounting Pronouncements Not Yet Effective In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), as amended, to supersede existing guidance on accounting for leases in Topic 840, Leases. Topic 842 generally requires lessees to recognize operating and financing lease liabilities and corresponding right-of-use assets on the balance sheet and to provide enhanced disclosures surrounding the amount, timing and uncertainty of cash flows arising from leasing arrangements. We will adopt the new standard effective January 1, 2019 on a modified retrospective basis, under which we will recognize the cumulative effects of initially applying the standard as an adjustment to the opening balance of accumulated deficit on the adoption date and will not restate comparative periods. We will elect the package of practical expedients permitted under the transition guidance, which allows us to carry-forward our historical lease classification and our assessment on whether a contract is or contains a lease. We will also elect to apply the hindsight practical expedient which allows us to use hindsight in determining the lease term. Additionally, we will elect to not apply the new standard’s recognition requirements to leases with an initial term of 12 months or less and instead to recognize lease payments in the consolidated statements of operations on a straight-line basis over the lease term. On the adoption date, we estimate we will recognize on our consolidated balance sheet approximately $5.9 million of right-of-use assets, $6.6 million of lease liabilities, and derecognize existing deferred rent of approximately $0.7 million . These are preliminary estimates that are subject to change as we finalize our adoption. Other than described above, we do not expect the new standard to have any other material impacts on our consolidated financial statements. There are several other new accounting pronouncements issued by the FASB, which we will adopt. However, we do not believe any of those accounting pronouncements will have a material impact on our consolidated financial position, operating results or statements of cash flows. |
Revenue Recognition | Revenue Recognition 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. Revenue is recognized, net of applicable taxes, upon transfer of control of promised products or services to customers in an amount that reflects the consideration we expect to be entitled to receive in exchange for those products or services. 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 discernable 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 | In connection with the adoption of ASC 340-40, we capitalize certain contract acquisition costs consisting of incremental sales commissions incurred to obtain customer contracts. Deferred commissions related to product revenues are recognized upon transfer of control to customers. Deferred commissions related to services revenue are recognized as the related performance obligations are met. Deferred commissions that will be recognized during the succeeding 12-month period are recorded as prepaid expenses and other current assets, and the remaining portion is recorded as other non-current assets. Amortization of deferred commissions is included in sales and marketing expense. |
Description of Business and S_3
Description of Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 2017 2016 Customer A (a distribution channel partner) 14% * * Customer B (a distribution channel partner) 10% * 14% * represents less than 10% of total revenue |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | Selected Consolidated Balance Sheet Line Items December 31, 2018 (in thousands) As Reported Adjustments Balance Without Adopting the New Standard Assets Prepaid expenses and other current assets $ 14,662 $ (6,557 ) $ 8,105 Other non-current assets 8,620 (3,184 ) 5,436 Liabilities Deferred revenue, current 63,874 3,390 67,264 Deferred revenue, non-current 34,092 3,204 37,296 Stockholders' Equity Accumulated deficit (272,246 ) (16,335 ) (288,581 ) Selected Consolidated Statement of Operations Line Items Year Ended December 31, 2018 (in thousands, except per share amounts) As Reported Adjustments 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 Adoption Balance Sheet Line Reference December 31, 2018 January 1, 2018 Accounts receivables, net $ 53,972 $ 48,266 Deferred revenue, current 63,874 59,360 Deferred revenue, non-current 34,092 31,276 |
Schedule of Deferred Revenue | Deferred revenue consisted of the following (in thousands): December 31, December 31, Deferred revenue: Products $ 5,216 $ 6,161 Services 92,750 88,476 Total deferred revenue 97,966 94,637 Less: current portion (63,874 ) (61,858 ) Non-current portion $ 34,092 $ 32,779 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | We expect to recognize revenue on the remaining performance obligations as follows (in thousands): December 31, 2018 Within 1 year $ 63,874 Next 2 to 3 years 27,678 Thereafter 6,414 Total $ 97,966 |
Marketable Securities and Fai_2
Marketable Securities and Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Available-for-sale Securities | Marketable securities, classified as available-for-sale, consisted of the following (in thousands): December 31, 2018 December 31, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Certificates of deposit $ 11,000 $ 7 $ (3 ) $ 11,004 $ 17,000 $ 6 $ (1 ) $ 17,005 Corporate securities 46,442 11 (116 ) 46,337 39,154 1 (76 ) 39,079 U.S. Treasury and agency securities 1,748 — (12 ) 1,736 5,744 — (19 ) 5,725 Commercial paper 12,327 1 (5 ) 12,323 9,225 1 (2 ) 9,224 Asset-backed securities 16,381 5 (32 ) 16,354 13,567 — (33 ) 13,534 Total $ 87,898 $ 24 $ (168 ) $ 87,754 $ 84,690 $ 8 $ (131 ) $ 84,567 |
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, 2018 (in thousands): Amortized Cost Fair Value Less than 1 year $ 61,153 $ 61,042 Mature in 1 - 3 years 26,745 26,712 Total $ 87,898 $ 87,754 |
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, 2018 Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Certificates of deposit $ 2,997 $ (3 ) $ — $ — $ 2,997 $ (3 ) Corporate securities 29,435 (68 ) 7,601 (48 ) 37,036 (116 ) U.S. Treasury and agency securities 992 (7 ) 744 (5 ) 1,736 (12 ) Commercial paper 9,888 (5 ) — — 9,888 (5 ) Asset-backed securities 8,499 (15 ) 4,758 (17 ) 13,257 (32 ) Total $ 51,811 $ (98 ) $ 13,103 $ (70 ) $ 64,914 $ (168 ) Less Than 12 Months 12 Months or More Total As of December 31, 2017 Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Certificates of deposit $ 2,999 $ (1 ) $ — $ — $ 2,999 $ (1 ) Corporate securities 36,079 (74 ) 1,499 (2 ) 37,578 (76 ) U.S. Treasury and agency securities 2,246 (2 ) 3,479 (17 ) 5,725 (19 ) Commercial paper 4,232 (2 ) — — 4,232 (2 ) Asset-backed securities 11,415 (32 ) 728 (1 ) 12,143 (33 ) Total $ 56,971 $ (111 ) $ 5,706 $ (20 ) $ 62,677 $ (131 ) |
Schedule of Cash, Cash Equivalents and Available-for-sale Investments Measured at Fair Value on Recurring Basis | The following is a summary of our cash, cash equivalents and marketable securities measured at fair value on a recurring basis (in thousands): December 31, 2018 December 31, 2017 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash $ 39,113 $ — $ — $ 39,113 $ 34,453 $ — $ — $ 34,453 Cash equivalents 1,508 — — 1,508 12,114 — — 12,114 Certificates of deposit — 11,004 — 11,004 — 17,005 — 17,005 Corporate securities — 46,337 — 46,337 — 39,079 — 39,079 U.S. Treasury and agency securities — 1,736 — 1,736 — 5,725 — 5,725 Commercial paper — 12,323 — 12,323 — 9,224 — 9,224 Asset-backed securities — 16,354 — 16,354 — 13,534 — 13,534 Total $ 40,621 $ 87,754 $ — $ 128,375 $ 46,567 $ 84,567 $ — $ 131,134 |
Other Balance Sheet Accounts _2
Other Balance Sheet Accounts Details (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Allowance for Doubtful Accounts | The following table presents the changes in the allowance for doubtful accounts (in thousands): December 31, December 31, Allowance for doubtful accounts, beginning balance $ 983 $ 1,920 Increase (decrease) of provision (26 ) 364 Write-offs (638 ) (1,301 ) Allowance for doubtful accounts, ending balance $ 319 $ 983 |
Schedule of Inventory | Inventory consisted of the following (in thousands): December 31, December 31, Raw materials $ 7,979 $ 6,643 Finished goods 9,951 10,934 Total inventory $ 17,930 $ 17,577 |
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 $ 6,679 $ 5,768 Deferred contract acquisition costs 6,564 — Other 1,419 1,057 Prepaid expenses and other current assets $ 14,662 $ 6,825 |
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 $ 49,804 $ 47,817 Software 1-3 4,088 3,988 Furniture and fixtures 1-3 967 950 Leasehold improvements 2-8 3,832 3,824 Construction in progress 160 — Property and equipment, gross 58,851 56,579 Less: accumulated depreciation (51,589 ) (46,666 ) Property and equipment, net $ 7,262 $ 9,913 |
Schedule of Acquired Intangible Assets | Purchased intangible assets, net, consisted of the following (in thousands): December 31, 2018 December 31, 2017 Cost Accumulated Amortization Net Cost Accumulated Amortization Net Developed technology $ 5,050 $ (2,525 ) $ 2,525 $ 5,050 $ (1,515 ) $ 3,535 Patents 2,936 (1,713 ) 1,223 2,936 (1,281 ) 1,655 Total $ 7,986 $ (4,238 ) $ 3,748 $ 7,986 $ (2,796 ) $ 5,190 |
Schedule of Future Amortization Expense for Purchased Finite-lived Intangible Assets | Future amortization expense for purchased intangible assets as of December 31, 2018 is as follows (in thousands): Fiscal Year 2019 $ 1,443 2020 1,442 2021 863 Total $ 3,748 |
Schedule of Accrued Liabilities | Accrued liabilities consisted of the following (in thousands): December 31, December 31, Accrued compensation and benefits $ 15,283 $ 13,828 Accrued tax liabilities 4,455 2,985 Other 5,553 5,022 Total accrued liabilities $ 25,291 $ 21,835 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Operating Leases and Purchase Commitments | The following table summarizes our non-cancelable operating leases and unconditional purchase obligations as of December 31, 2018 (in thousands): Years Ending December 31, Operating Leases and Other Contractual Obligation (1) Purchase Commitments Total 2019 $ 3,907 $ 19,296 $ 23,203 2020 1,921 — 1,921 2021 1,194 — 1,194 2022 313 — 313 2023 — — — Total $ 7,335 $ 19,296 $ 26,631 (1) Other contractual obligation represents the technology licensing arrangement we entered into in 2008 over the life of the associated patents. The last annual payment of $140 thousand is due in January 2019. |
Equity Incentive Plans and St_2
Equity Incentive Plans and Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Stock-based Compensation | A summary of our stock-based compensation expense is as follows (in thousands): Years Ended December 31, 2018 2017 2016 Stock-based compensation by type of award: Stock options $ 1,353 $ 2,705 $ 4,153 Stock awards 10,445 11,421 12,567 Employee stock purchase rights (1) 5,240 3,077 202 Total $ 17,038 $ 17,203 $ 16,922 Stock-based compensation by category of expense: Cost of revenue $ 1,602 $ 1,362 $ 1,105 Sales and marketing 5,667 6,075 7,006 Research and development 6,631 6,343 5,732 General and administrative 3,138 3,423 3,079 Total $ 17,038 $ 17,203 $ 16,922 (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 Employee Stock Purchase Rights Years Ended December 31, Years Ended December 31, 2018 2017 2016 2018 2017 2016 Expected term (in years) 4.8 4.7 4.9 0.5 1.3 1.3 Risk-free interest rate 3.1% 2.0% 1.4% 2.6% 1.4% 0.8% Expected volatility 37% 43% 49% 28% 39% 42% 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 Employee Stock Purchase Rights Years Ended December 31, Years Ended December 31, 2018 2017 2016 2018 2017 2016 Expected term (in years) 4.8 4.7 4.9 0.5 1.3 1.3 Risk-free interest rate 3.1% 2.0% 1.4% 2.6% 1.4% 0.8% Expected volatility 37% 43% 49% 28% 39% 42% Dividend rate —% —% —% —% —% —% |
Summary of Activity under Stock Option Plans | The following tables summarize our stock option activities and related information: Number of Shares (thousands) Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (years) Aggregate Intrinsic Value (1) (thousands) Outstanding as of December 31, 2017 6,018 $ 5.18 Granted 317 $ 5.93 Exercised (1,029 ) $ 3.60 Canceled (632 ) $ 8.05 Outstanding as of December 31, 2018 4,674 $ 5.19 5.0 $ 7,395 Vested and exercisable as of December 31, 2018 4,062 $ 5.01 4.4 $ 7,188 (1) The aggregate intrinsic value represents the excess of the closing price of our common stock of $6.24 as of December 31, 2018 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, 2018 2017 2016 Weighted-average grant date fair value of options granted (per share) $ 2.19 $ 3.14 $ 2.38 Intrinsic value of options exercised (1) $ 2,629 $ 8,013 $ 5,990 (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 (thousands) Weighted-Average Grant Date Fair Value Weighted-Average Remaining Vesting Term (years) Nonvested as of December 31, 2017 5,568 $ 6.88 Granted 3,568 $ 5.95 Released (1,580 ) $ 7.04 Canceled (1,582 ) $ 6.03 Nonvested as of December 31, 2018 5,974 $ 6.51 1.6 Following is additional information pertaining to our RSU activities (in thousands, except per share data): Years Ended December 31, 2018 2017 2016 Weighted-average grant date fair value of stock awards granted (per share) $ 5.95 $ 8.55 $ 6.50 Total fair value of stock awards released (vested) during the period $ 9,714 $ 13,961 $ 9,687 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Summary of Anti-dilutive Shares | The following table presents common shares related to potentially dilutive shares excluded from the calculation of diluted net loss per share as their effect would have been anti-dilutive (in thousands): Years Ended December 31, 2018 2017 2016 Stock options, RSUs and employee stock purchase rights 9,621 12,184 13,631 Common stock subject to repurchase — — 14 Total 9,621 12,184 13,645 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | The geographical breakdown of loss before income taxes is as follows (in thousands): Years Ended December 31, 2018 2017 2016 Domestic loss $ (29,658 ) $ (13,752 ) $ (24,429 ) Foreign income 3,123 4,207 2,795 Loss before income taxes $ (26,535 ) $ (9,545 ) $ (21,634 ) |
Schedule of Components of Income Tax Expense (Benefit) | The provision for income taxes consists of the following (in thousands): Years Ended December 31, 2018 2017 2016 Current provision for income taxes: State $ 44 $ 48 $ 41 Foreign 953 1,023 1,009 Total current 997 1,071 1,050 Deferred tax expense (benefit): Federal (13 ) 26 17 Foreign 98 109 (310 ) Total deferred 85 135 (293 ) Provision for income taxes $ 1,082 $ 1,206 $ 757 |
Schedule of Effective Income Tax Rate Reconciliation | The reconciliation of the statutory federal income tax and the provision for income tax is as follows (in thousands, except percentages). The amounts disclosed as “Federal tax credits - net of uncertain tax positions” and “Non-deductible meals and entertainment expenses” for 2017 and 2016 were included in “Changes in federal valuation allowance” and “Other permanent items,” respectively, as previously reported. Such line items have been separately presented to correct errors in the above disclosures and to conform to the current year presentation. We assessed the significance of the misclassifications and concluded that they were not material to any prior periods. These corrections had no effect on our Consolidated Statements of Operations. Years Ended December 31, 2018 2017 2016 Amount Percentage Amount Percentage Amount Percentage Tax at statutory rate $ (5,572 ) 21.0 % $ (3,245 ) 34.0 % $ (7,356 ) 34.0 % State tax - net of federal benefits 39 (0.1 ) 32 (0.3 ) 27 (0.1 ) Foreign rate differential 258 (1.0 ) (655 ) 6.9 (666 ) 3.1 Changes in federal valuation allowance 6,430 (24.2 ) (21,038 ) 220.4 9,501 (44.0 ) Change in federal tax rate due to Tax Cuts and Jobs Act — — 28,185 (295.3 ) — — Stock-based compensation 1,950 (7.3 ) (1,169 ) 12.2 88 (0.4 ) Non-deductible meals and entertainment expenses 342 (1.3 ) 243 (2.5 ) 266 (1.2 ) Other permanent items 351 (1.3 ) 104 (1.1 ) 317 (1.5 ) Federal tax credits - net of uncertain tax position (2,634 ) 9.9 (1,634 ) 17.1 (1,875 ) 8.7 Expenses for uncertain tax positions 137 (0.5 ) 311 (3.3 ) 358 (1.7 ) Other (219 ) 0.7 72 (0.7 ) 97 (0.4 ) Provision for income taxes $ 1,082 (4.1 )% $ 1,206 (12.6 )% $ 757 (3.5 )% |
Schedule of Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to significant portions of deferred tax assets (liabilities) are as follows (in thousands): December 31, December 31, Deferred tax assets: Net operating loss carryforwards $ 43,869 $ 37,326 Research and development credits, net of uncertain tax positions 22,051 17,119 Accruals, reserves, and other 11,264 13,992 Stock-based compensation 2,628 2,994 Depreciation and amortization 1,952 1,954 Gross deferred tax assets 81,764 73,385 Valuation allowance (78,681 ) (72,458 ) Total deferred tax assets 3,083 927 Deferred tax liabilities: Deferred contract acquisition costs (2,256 ) — Other (13 ) (28 ) Total deferred tax liabilities (2,269 ) (28 ) Net deferred tax assets $ 814 $ 899 |
Summary of Income Tax Contingencies | The activity related to the unrecognized tax benefits is as follows (in thousands): Years Ended December 31, 2018 2017 2016 Gross unrecognized tax benefits—beginning balance $ 3,782 $ 3,360 $ 2,552 Increases (decrease) related to tax positions from prior years (266 ) (151 ) 66 Increases related to tax positions taken during current year 675 573 742 Decreases related to tax positions taken during the current year — — — Gross unrecognized tax benefits—ending balance $ 4,191 $ 3,782 $ 3,360 |
Geographic Information (Tables)
Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 2017 2016 United States $ 103,791 $ 115,536 $ 115,706 Japan 55,205 51,488 52,951 Asia Pacific, excluding Japan 36,897 33,189 29,829 EMEA 27,615 27,859 23,669 Latin America 8,715 7,357 5,142 Total $ 232,223 $ 235,429 $ 227,297 |
Long-lived Assets by Geographic Areas | The following table is a summary of our long-lived assets which include property and equipment, net based on the physical location of the assets (in thousands): December 31, December 31, United States $ 5,525 $ 7,733 Japan 1,108 1,510 Other 629 670 Total $ 7,262 $ 9,913 |
Appcito Acquisition (Tables)
Appcito Acquisition (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Schedule of Purchase Price Allocation | The total purchase consideration was allocated to Appcito’s net tangible and intangible assets based on their estimated fair values at the acquisition date as follows (in thousands): Developed technology $ 5,050 Goodwill 1,235 Other tangible assets 58 Total assets acquired $ 6,343 |
Selected Quarterly Financial _2
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information | Selected quarterly financial data for 2018 and 2017 is as follows (in thousands, except per share amounts): Quarter Ended March 31, 2018 June 30, 2018 September 30, 2018 December 31, 2018 Revenue $ 49,183 $ 60,713 $ 60,502 $ 61,825 Gross profit $ 37,299 $ 47,526 $ 47,488 $ 48,014 Net loss $ (19,670 ) $ (4,532 ) $ (1,807 ) $ (1,608 ) Net loss per share - basic $ (0.27 ) $ (0.06 ) $ (0.02 ) $ (0.02 ) Net loss per share - diluted $ (0.27 ) $ (0.06 ) $ (0.02 ) $ (0.02 ) Quarter Ended March 31, 2017 June 30, 2017 September 30, 2017 December 31, 2017 Revenue $ 63,934 $ 53,973 $ 62,005 $ 55,517 Gross profit $ 49,191 $ 41,173 $ 48,138 $ 43,609 Net income (loss) $ (1,337 ) $ (7,955 ) $ (2,245 ) $ 786 Net income (loss) per share - basic $ (0.02 ) $ (0.11 ) $ (0.03 ) $ 0.01 Net income (loss) per share - diluted $ (0.02 ) $ (0.11 ) $ (0.03 ) $ 0.01 |
Description of Business and S_4
Description of Business and Summary of Significant Accounting Policies - Additional Information (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018USD ($)toolsegmentsolution | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Jan. 01, 2019USD ($) | |
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 | $ 0.7 | $ 0.6 | $ 0.9 | |
Number of reportable segments | segment | 1 | |||
Number of operating segments | segment | 1 | |||
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 | 10 years | |||
Leasehold improvements | Minimum | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Useful life | 2 years | |||
Leasehold improvements | Maximum | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Useful life | 8 years | |||
Subsequent event | ASU 2016-02 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
ROU asset | $ 5.9 | |||
Lease liability | 6.6 | |||
Deferred rent liability | $ 0.7 |
Description of Business and S_5
Description of Business and Summary of Significant Accounting Policies - Concentration Risk (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accounts Receivable | |||
Entity Wide Revenue Major Customer [Line Items] | |||
Percentage representation of significant customers (percent) | 0.00% | ||
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) | 16.00% | ||
Customer B | Revenue | |||
Entity Wide Revenue Major Customer [Line Items] | |||
Percentage representation of significant customers (percent) | 10.00% | 14.00% | |
Customer B | Accounts Receivable | |||
Entity Wide Revenue Major Customer [Line Items] | |||
Percentage representation of significant customers (percent) | 12.00% |
Revenue - Additional Informatio
Revenue - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2018 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Accumulated deficit | $ 272,246,000 | $ 257,025,000 | |
Deferred revenue | 97,966,000 | 94,637,000 | |
Revenue recognized that was included in deferred revenue balance at January 1, 2018 | 60,200,000 | 49,900,000 | |
Deferred contract acquisition costs, current | 6,564,000 | $ 0 | |
Asset impairment charges for contract assets | 0 | ||
ASU 2014-09 | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Accumulated deficit | 16,335,000 | $ 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 | 6,600,000 | ||
Deferred contract acquisition costs, noncurrent | 3,200,000 | ||
Amortization | 4,900,000 | ||
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, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2018 | |
Assets | ||||||||||||
Prepaid expenses and other current assets | $ 14,662 | $ 6,825 | $ 14,662 | $ 6,825 | ||||||||
Other non-current assets | 8,620 | 4,646 | 8,620 | 4,646 | ||||||||
Liabilities | ||||||||||||
Deferred revenue, current | 63,874 | 61,858 | 63,874 | 61,858 | $ 59,360 | |||||||
Deferred revenue, non-current | 34,092 | 32,779 | 34,092 | 32,779 | 31,276 | |||||||
Stockholders' Equity | ||||||||||||
Accumulated deficit | (272,246) | (257,025) | (272,246) | (257,025) | ||||||||
Income Statement | ||||||||||||
Total revenue | 61,825 | $ 60,502 | $ 60,713 | $ 49,183 | 55,517 | $ 62,005 | $ 53,973 | $ 63,934 | 232,223 | 235,429 | $ 227,297 | |
Gross profit | 48,014 | 47,488 | 47,526 | 37,299 | 43,609 | 48,138 | 41,173 | 49,191 | 180,327 | 182,111 | 172,884 | |
Sales and marketing | 103,214 | 101,360 | 104,360 | |||||||||
Total operating expenses | 208,006 | 192,483 | 193,454 | |||||||||
Loss from operations | (27,679) | (10,372) | (20,570) | |||||||||
Net loss | (1,608) | $ (1,807) | $ (4,532) | $ (19,670) | $ 786 | $ (2,245) | $ (7,955) | $ (1,337) | $ (27,617) | $ (10,751) | $ (22,391) | |
Basic and diluted (in dollars per share) | $ (0.38) | $ (0.15) | $ (0.34) | |||||||||
Adjustments Increase (Decrease) | ||||||||||||
Assets | ||||||||||||
Prepaid expenses and other current assets | (6,557) | $ (6,557) | ||||||||||
Other non-current assets | (3,184) | (3,184) | ||||||||||
Liabilities | ||||||||||||
Deferred revenue, current | 3,390 | 3,390 | ||||||||||
Deferred revenue, non-current | 3,204 | 3,204 | ||||||||||
Stockholders' Equity | ||||||||||||
Accumulated deficit | (16,335) | (16,335) | $ (12,400) | |||||||||
Income Statement | ||||||||||||
Total revenue | (2,594) | |||||||||||
Gross profit | (2,594) | |||||||||||
Sales and marketing | 1,345 | |||||||||||
Total operating expenses | 1,345 | |||||||||||
Loss from operations | (3,939) | |||||||||||
Net loss | (3,939) | |||||||||||
Balance Without Adopting the New Standard | ||||||||||||
Assets | ||||||||||||
Prepaid expenses and other current assets | 8,105 | 8,105 | ||||||||||
Other non-current assets | 5,436 | 5,436 | ||||||||||
Liabilities | ||||||||||||
Deferred revenue, current | 67,264 | 67,264 | ||||||||||
Deferred revenue, non-current | 37,296 | 37,296 | ||||||||||
Stockholders' Equity | ||||||||||||
Accumulated deficit | $ (288,581) | (288,581) | ||||||||||
Income Statement | ||||||||||||
Total revenue | 229,629 | |||||||||||
Gross profit | 177,733 | |||||||||||
Sales and marketing | 104,559 | |||||||||||
Total operating expenses | 209,351 | |||||||||||
Loss from operations | (31,618) | |||||||||||
Net loss | $ (31,556) | |||||||||||
Basic and diluted (in dollars per share) | $ (0.43) | |||||||||||
Products | ||||||||||||
Income Statement | ||||||||||||
Total revenue | $ 144,682 | $ 149,903 | $ 152,308 | |||||||||
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 | 87,541 | $ 85,526 | $ 74,989 | |||||||||
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, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Revenue from Contract with Customer [Abstract] | |||
Accounts receivable, net | $ 53,972 | $ 48,266 | $ 48,266 |
Deferred revenue, current | 63,874 | 59,360 | 61,858 |
Deferred revenue, non-current | $ 34,092 | $ 31,276 | $ 32,779 |
Revenue - Deferred Revenue (Det
Revenue - Deferred Revenue (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Deferred Revenue Arrangement [Line Items] | |||
Total deferred revenue | $ 97,966 | $ 94,637 | |
Less: current portion | (63,874) | $ (59,360) | (61,858) |
Non-current portion | 34,092 | $ 31,276 | 32,779 |
Products | |||
Deferred Revenue Arrangement [Line Items] | |||
Total deferred revenue | 5,216 | 6,161 | |
Services | |||
Deferred Revenue Arrangement [Line Items] | |||
Total deferred revenue | $ 92,750 | $ 88,476 |
Revenue - Remaining Performance
Revenue - Remaining Performance Obligations (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligation | $ 97,966 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligation | $ 63,874 |
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]: 2020-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligation | $ 27,678 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation period | 2 years |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligation | $ 6,414 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation period |
Marketable Securities and Fai_3
Marketable Securities and Fair Value Measurements - Estimate of Fair Value of Marketable Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 87,898 | $ 84,690 |
Gross Unrealized Gains | 24 | 8 |
Gross Unrealized Losses | (168) | (131) |
Fair Value | 87,754 | 84,567 |
Certificates of deposit | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 11,000 | 17,000 |
Gross Unrealized Gains | 7 | 6 |
Gross Unrealized Losses | (3) | (1) |
Fair Value | 11,004 | 17,005 |
Corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 46,442 | 39,154 |
Gross Unrealized Gains | 11 | 1 |
Gross Unrealized Losses | (116) | (76) |
Fair Value | 46,337 | 39,079 |
U.S. Treasury and agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,748 | 5,744 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (12) | (19) |
Fair Value | 1,736 | 5,725 |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 12,327 | 9,225 |
Gross Unrealized Gains | 1 | 1 |
Gross Unrealized Losses | (5) | (2) |
Fair Value | 12,323 | 9,224 |
Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 16,381 | 13,567 |
Gross Unrealized Gains | 5 | 0 |
Gross Unrealized Losses | (32) | (33) |
Fair Value | $ 16,354 | $ 13,534 |
Marketable Securities and Fai_4
Marketable Securities and Fair Value Measurements - Contractual Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Amortized Cost | ||
Less than 1 year | $ 61,153 | |
Mature in 1 - 3 years | 26,745 | |
Amortized Cost | 87,898 | $ 84,690 |
Fair Value | ||
Less than 1 year | 61,042 | |
Mature in 1 - 3 years | 26,712 | |
Fair Value | $ 87,754 | $ 84,567 |
Marketable Securities and Fai_5
Marketable Securities and Fair Value Measurements - Securities in Unrealized Loss Position (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value | ||
Less Than 12 Months | $ 51,811 | $ 56,971 |
12 Months or More | 13,103 | 5,706 |
Total | 64,914 | 62,677 |
Gross Unrealized Losses | ||
Less Than 12 Months | (98) | (111) |
12 Months or More | (70) | (20) |
Total | (168) | (131) |
Certificates of deposit | ||
Fair Value | ||
Less Than 12 Months | 2,997 | 2,999 |
12 Months or More | 0 | 0 |
Total | 2,997 | 2,999 |
Gross Unrealized Losses | ||
Less Than 12 Months | (3) | (1) |
12 Months or More | 0 | 0 |
Total | (3) | (1) |
Corporate securities | ||
Fair Value | ||
Less Than 12 Months | 29,435 | 36,079 |
12 Months or More | 7,601 | 1,499 |
Total | 37,036 | 37,578 |
Gross Unrealized Losses | ||
Less Than 12 Months | (68) | (74) |
12 Months or More | (48) | (2) |
Total | (116) | (76) |
U.S. Treasury and agency securities | ||
Fair Value | ||
Less Than 12 Months | 992 | 2,246 |
12 Months or More | 744 | 3,479 |
Total | 1,736 | 5,725 |
Gross Unrealized Losses | ||
Less Than 12 Months | (7) | (2) |
12 Months or More | (5) | (17) |
Total | (12) | (19) |
Commercial paper | ||
Fair Value | ||
Less Than 12 Months | 9,888 | 4,232 |
12 Months or More | 0 | 0 |
Total | 9,888 | 4,232 |
Gross Unrealized Losses | ||
Less Than 12 Months | (5) | (2) |
12 Months or More | 0 | 0 |
Total | (5) | (2) |
Asset-backed securities | ||
Fair Value | ||
Less Than 12 Months | 8,499 | 11,415 |
12 Months or More | 4,758 | 728 |
Total | 13,257 | 12,143 |
Gross Unrealized Losses | ||
Less Than 12 Months | (15) | (32) |
12 Months or More | (17) | (1) |
Total | $ (32) | $ (33) |
Marketable Securities and Fai_6
Marketable Securities and Fair Value Measurements - Schedule of Fair Value of Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Financial Assets | ||
Marketable Securities | $ 87,754 | $ 84,567 |
Total | 128,375 | 131,134 |
Level 1 | ||
Financial Assets | ||
Total | 40,621 | 46,567 |
Level 2 | ||
Financial Assets | ||
Total | 87,754 | 84,567 |
Cash | ||
Financial Assets | ||
Cash and Cash Equivalents | 39,113 | 34,453 |
Cash | Level 1 | ||
Financial Assets | ||
Cash and Cash Equivalents | 39,113 | 34,453 |
Cash equivalents | ||
Financial Assets | ||
Cash and Cash Equivalents | 1,508 | 12,114 |
Cash equivalents | Level 1 | ||
Financial Assets | ||
Cash and Cash Equivalents | 1,508 | 12,114 |
Certificates of deposit | ||
Financial Assets | ||
Marketable Securities | 11,004 | 17,005 |
Certificates of deposit | Level 2 | ||
Financial Assets | ||
Marketable Securities | 11,004 | 17,005 |
Corporate securities | ||
Financial Assets | ||
Marketable Securities | 46,337 | 39,079 |
Corporate securities | Level 2 | ||
Financial Assets | ||
Marketable Securities | 46,337 | 39,079 |
U.S. Treasury and agency securities | ||
Financial Assets | ||
Marketable Securities | 1,736 | 5,725 |
U.S. Treasury and agency securities | Level 2 | ||
Financial Assets | ||
Marketable Securities | 1,736 | 5,725 |
Commercial paper | ||
Financial Assets | ||
Marketable Securities | 12,323 | 9,224 |
Commercial paper | Level 2 | ||
Financial Assets | ||
Marketable Securities | 12,323 | 9,224 |
Asset-backed securities | ||
Financial Assets | ||
Marketable Securities | 16,354 | 13,534 |
Asset-backed securities | Level 2 | ||
Financial Assets | ||
Marketable Securities | $ 16,354 | $ 13,534 |
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, 2018 | Dec. 31, 2017 | |
Allowance for Doubtful Accounts [Roll Forward] | ||
Allowance for doubtful accounts, beginning balance | $ 983 | $ 1,920 |
Increase (decrease) of provision | (26) | 364 |
Write-offs | (638) | (1,301) |
Allowance for doubtful accounts, ending balance | $ 319 | $ 983 |
Other Balance Sheet Accounts _4
Other Balance Sheet Accounts Details - Schedule of Inventory (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 7,979 | $ 6,643 |
Finished goods | 9,951 | 10,934 |
Total inventory | $ 17,930 | $ 17,577 |
Other Balance Sheet Accounts _5
Other Balance Sheet Accounts Details - Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Abstract] | ||
Prepaid expenses | $ 6,679 | $ 5,768 |
Deferred contract acquisition costs | 6,564 | 0 |
Other | 1,419 | 1,057 |
Prepaid expenses and other current assets | $ 14,662 | $ 6,825 |
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property Plant And Equipment [Line Items] | |||
Depreciation | $ 6,400 | $ 7,100 | $ 7,600 |
Property and equipment, gross | 58,851 | 56,579 | |
Less: accumulated depreciation | (51,589) | (46,666) | |
Property and equipment, net | 7,262 | 9,913 | |
Equipment | |||
Property Plant And Equipment [Line Items] | |||
Property and equipment, gross | 49,804 | 47,817 | |
Software | |||
Property Plant And Equipment [Line Items] | |||
Property and equipment, gross | 4,088 | 3,988 | |
Furniture and fixtures | |||
Property Plant And Equipment [Line Items] | |||
Property and equipment, gross | 967 | 950 | |
Leasehold improvements | |||
Property Plant And Equipment [Line Items] | |||
Property and equipment, gross | 3,832 | 3,824 | |
Construction in progress | |||
Property Plant And Equipment [Line Items] | |||
Property and equipment, gross | $ 160 | $ 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 | 2 years | ||
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 | 8 years |
Other Balance Sheet Accounts _7
Other Balance Sheet Accounts Details - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 6.4 | $ 7.1 | $ 7.6 |
Amortization expense related to intangible assets | $ 1.4 | $ 1.4 | $ 0.7 |
Weighted average useful life of purchased intangible assets (in years) | 2 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, 2018 | Dec. 31, 2017 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Cost | $ 7,986 | $ 7,986 |
Accumulated Amortization | (4,238) | (2,796) |
Total | 3,748 | 5,190 |
Developed technology | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Cost | 5,050 | 5,050 |
Accumulated Amortization | (2,525) | (1,515) |
Total | 2,525 | 3,535 |
Patents | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Cost | 2,936 | 2,936 |
Accumulated Amortization | (1,713) | (1,281) |
Total | $ 1,223 | $ 1,655 |
Other Balance Sheet Accounts _9
Other Balance Sheet Accounts Details - Future Amortization Expense of Acquired Intangibles (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Abstract] | ||
2019 | $ 1,443 | |
2020 | 1,442 | |
2021 | 863 | |
Total | $ 3,748 | $ 5,190 |
Other Balance Sheet Accounts_10
Other Balance Sheet Accounts Details - Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Accrued Liabilities, Current [Abstract] | ||
Accrued compensation and benefits | $ 15,283 | $ 13,828 |
Accrued tax liabilities | 4,455 | 2,985 |
Other | 5,553 | 5,022 |
Total accrued liabilities | $ 25,291 | $ 21,835 |
Credit Facility (Details)
Credit Facility (Details) - Line of credit | 1 Months Ended | ||
Sep. 30, 2018 | Nov. 30, 2016USD ($) | Dec. 31, 2018USD ($) | |
Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Debt instrument term (in years) | 3 years | ||
Maximum borrowing capacity | $ 25,000,000 | ||
Debt covenant, net cash equals or exceeds, amount | 50,000,000 | ||
Debt covenant, net cash falls below, amount | $ 50,000,000 | ||
Unused capacity commitment fee | 0.40% | ||
Minimum adjusted quick ratio under debt compliance | 1.50 | ||
Amount outstanding | $ 0 | ||
Amended Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Unused capacity commitment fee | 0.30% | ||
Letter of Credit | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | $ 25,000,000 | ||
Prime Rate | Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Variable rate basis spread | 0.50% | ||
LIBOR | Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Variable rate basis spread | 2.50% |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) | 1 Months Ended |
Mar. 14, 2019 | |
Subsequent event | |
Loss Contingencies [Line Items] | |
Period to amend motion dismissal | 21 days |
Commitments and Contingencies_2
Commitments and Contingencies - Operating Leases and Purchase Commitments (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Operating Leased Assets [Line Items] | |
2019 | $ 23,203 |
2020 | 1,921 |
2021 | 1,194 |
2022 | 313 |
2023 | 0 |
Total | 26,631 |
Operating Leases and Other Contractual Obligation | |
Operating Leased Assets [Line Items] | |
2019 | 3,907 |
2020 | 1,921 |
2021 | 1,194 |
2022 | 313 |
2023 | 0 |
Total | 7,335 |
Inventories | |
Purchase Commitments | |
2019 | 19,296 |
2020 | 0 |
2021 | 0 |
2022 | 0 |
2023 | 0 |
Total | $ 19,296 |
Commitments and Contingencies_3
Commitments and Contingencies - Purchase Commitments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Long-term Purchase Commitment [Line Items] | |||
Rent expense | $ 4,500 | $ 4,100 | $ 3,500 |
Technology Licensing Arrangement | |||
Long-term Purchase Commitment [Line Items] | |||
Last annual payment due in January 2019 | $ 140 |
Equity Incentive Plans and St_3
Equity Incentive Plans and Stock-Based Compensation - 2014 Equity Incentive Plan/ESPP (Details) - USD ($) | Sep. 30, 2018 | Jan. 01, 2018 | Jun. 10, 2015 | Oct. 31, 2018 | Dec. 31, 2018 | Oct. 23, 2017 |
2014 Stock Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares available for future grant (in shares) | 8,841,016 | |||||
Expiration period | 5 years | |||||
2014 Stock Incentive Plan | Prior Common Stock Outstanding | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Percentage of outstanding shares of common stock | 5.00% | |||||
Additional shares authorized for future issuance (in shares) | 3,715,060 | |||||
2014 Stock Incentive Plan | Stock options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Expiration period | 10 years | |||||
Vesting period | 4 years | |||||
2014 Stock Incentive Plan | 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) | 3,065,182 | |||||
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 | |||||
Common stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Authorized amount under stock repurchase program | $ 20,000,000 | |||||
Shares repurchased during period (in shares) | 0 |
Equity Incentive Plans and St_4
Equity Incentive Plans and Stock-Based Compensation - Schedule of Stock-based Compensation Awards Granted under Stock Option Plan in Consolidated Statements of Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | $ 17,038 | $ 17,203 | $ 16,922 |
Cost of revenue | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | 1,602 | 1,362 | 1,105 |
Sales and marketing | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | 5,667 | 6,075 | 7,006 |
Research and development | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | 6,631 | 6,343 | 5,732 |
General and administrative | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | 3,138 | 3,423 | 3,079 |
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | 1,353 | 2,705 | 4,153 |
Stock awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | 10,445 | 11,421 | 12,567 |
Employee stock purchase rights | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | 5,240 | $ 3,077 | $ 202 |
Accelerated stock-based compensation | $ 4,100 |
Equity Incentive Plans and St_5
Equity Incentive Plans and Stock-Based Compensation - Stock-based Compensation/Stock Repurchase Program (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Total compensation expense related to unvested awards granted, not yet recognized | $ 33 |
Total compensation expense related to unvested awards granted, not yet recognized weighted-average period for recognition (in years) | 2 years 6 months |
Equity Incentive Plans and St_6
Equity Incentive Plans and Stock-Based Compensation - Fair Value Determination (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 4 years 9 months 18 days | 4 years 8 months 25 days | 4 years 10 months 25 days |
Risk-free interest rate | 3.10% | 2.00% | 1.40% |
Expected volatility | 37.00% | 43.00% | 49.00% |
Dividend rate | 0.00% | 0.00% | 0.00% |
Employee Stock Purchase Rights | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 5 months 27 days | 1 year 3 months 20 days | 1 year 3 months 20 days |
Risk-free interest rate | 2.60% | 1.40% | 0.80% |
Expected volatility | 28.00% | 39.00% | 42.00% |
Dividend rate | 0.00% | 0.00% | 0.00% |
Equity Incentive Plans and St_7
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, 2018USD ($)$ / sharesshares | |
Number of Shares (thousands) | |
Outstanding options, Beginning balance (in shares) | shares | 6,018 |
Granted (in shares) | shares | 317 |
Exercised (in shares) | shares | (1,029) |
Canceled (in shares) | shares | (632) |
Outstanding options, Ending balance (in shares) | shares | 4,674 |
Vested and exercisable (in shares) | shares | 4,062 |
Weighted-Average Exercise Price | |
Beginning balance (in dollars per share) | $ 5.18 |
Granted (in dollars per share) | 5.93 |
Exercised (in dollars per share) | 3.60 |
Canceled (in dollars per share) | 8.05 |
Ending balance (in dollars per share) | 5.19 |
Vested and exercisable at end of period (in dollars per share) | $ 5.01 |
Weighted-average remaining contractual term (in years) | 5 years |
Weighted average remaining contractual term, Vested and exercisable at end of period (in years) | 4 years 4 months 24 days |
Aggregate Intrinsic Value | $ | $ 7,395 |
Aggregate Intrinsic Value, Vested and exercisable at end of period | $ | $ 7,188 |
Closing price (in dollars per share) | $ 6.24 |
Equity Incentive Plans and St_8
Equity Incentive Plans and Stock-Based Compensation - Information about Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Weighted-average grant date fair value per share of options granted (in dollars per share) | $ 2.19 | $ 3.14 | $ 2.38 |
Intrinsic value of options exercised | $ 2,629 | $ 8,013 | $ 5,990 |
Equity Incentive Plans and St_9
Equity Incentive Plans and Stock-Based Compensation - Information About Stock Options (Details) - shares | 1 Months Ended | 12 Months Ended | ||||
Oct. 31, 2018 | Oct. 31, 2016 | Feb. 29, 2016 | Dec. 31, 2018 | Dec. 31, 2015 | Dec. 31, 2014 | |
MSUs | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Granted (in shares) | 40,000 | 540,000 | ||||
Number of consecutive trading days | 20 days | |||||
Measurement period | 4 years | |||||
Vested in period (in shares) | 0 | |||||
PSUs, February 2016 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Granted (in shares) | 547,000 | |||||
Vested in period (in shares) | 178,402 | |||||
Actual performance vesting percentage | 80.00% | |||||
Forfeited in period (in shares) | 181,598 | |||||
PSUs, October 2016 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Granted (in shares) | 60,641 | |||||
Vested in period (in shares) | 30,320 | |||||
Forfeited in period (in shares) | 30,321 | |||||
PSUs, October 2018 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Granted (in shares) | 464,888 | |||||
Vested in period (in shares) | 0 | |||||
Tranche One | PSUs, February 2016 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting percentage | 80.00% | |||||
Tranche One | PSUs, October 2018 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting percentage | 75.00% | |||||
Tranche Two | PSUs, October 2018 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting percentage | 25.00% |
Equity Incentive Plans and S_10
Equity Incentive Plans and Stock-Based Compensation - Summary of RSU activity (Details) - Restricted Stock - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Unvested at beginning of period (in shares) | 5,568 | ||
Granted (in shares) | 3,568 | ||
Released (in shares) | (1,580) | ||
Canceled (in shares) | (1,582) | ||
Unvested at end of period (in shares) | 5,974 | 5,568 | |
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) | $ 6.88 | ||
Granted (in dollars per share) | 5.95 | $ 8.55 | $ 6.50 |
Released (in dollars per share) | 7.04 | ||
Canceled (in dollars per share) | 6.03 | ||
Unvested at ending of period (in dollars per share) | $ 6.51 | $ 6.88 | |
Weighted-Average Remaining Vesting Term (years) | 1 year 7 months 6 days | ||
Total fair value of stock awards released (vested) during the period | $ 9,714 | $ 13,961 | $ 9,687 |
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings Per Share Diluted [Line Items] | |||
Anti-dilutive securities excluded from computation of diluted net income per share | 9,621 | 12,184 | 13,645 |
Stock options, RSUs and employee stock purchase rights | |||
Earnings Per Share Diluted [Line Items] | |||
Anti-dilutive securities excluded from computation of diluted net income per share | 9,621 | 12,184 | 13,631 |
Common stock subject to repurchase | |||
Earnings Per Share Diluted [Line Items] | |||
Anti-dilutive securities excluded from computation of diluted net income per share | 0 | 0 | 14 |
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Domestic loss | $ (29,658) | $ (13,752) | $ (24,429) |
Foreign income | 3,123 | 4,207 | 2,795 |
Loss before income taxes | $ (26,535) | $ (9,545) | $ (21,634) |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current provision for income taxes: | |||
State | $ 44 | $ 48 | $ 41 |
Foreign | 953 | 1,023 | 1,009 |
Total current | 997 | 1,071 | 1,050 |
Deferred tax expense (benefit): | |||
Federal | (13) | 26 | 17 |
Foreign | 98 | 109 | (310) |
Total deferred | 85 | 135 | (293) |
Provision for income taxes | $ 1,082 | $ 1,206 | $ 757 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Tax at statutory rate | $ (5,572) | $ (3,245) | $ (7,356) |
Tax at statutory rate (percent) | 21.00% | 34.00% | 34.00% |
State tax - net of federal benefits | $ 39 | $ 32 | $ 27 |
State tax - net of federal benefits (percent) | (0.10%) | (0.30%) | (0.10%) |
Foreign rate differential | $ 258 | $ (655) | $ (666) |
Foreign rate differential (percent) | (1.00%) | 6.90% | 3.10% |
Changes in federal valuation allowance | $ 6,430 | $ (21,038) | $ 9,501 |
Changes in valuation allowance (percent) | (24.20%) | 220.40% | (44.00%) |
Change in federal tax rate due to Tax Cuts and Jobs Act | $ 0 | $ 28,185 | $ 0 |
Change in federal tax rate due to Tax Cuts and Jobs Act (Percent) | 0.00% | (295.30%) | 0.00% |
Stock-based compensation | $ 1,950 | $ (1,169) | $ 88 |
Stock-based compensation (percent) | (7.30%) | 12.20% | (0.40%) |
Non-deductible meals and entertainment expenses | $ 342 | $ 243 | $ 266 |
Non-deductible meals and entertainment expenses (percent) | (1.30%) | (2.50%) | (1.20%) |
Other permanent items | $ 351 | $ 104 | $ 317 |
Other permanent items (percent) | (1.30%) | (1.10%) | (1.50%) |
Federal Tax credits - net of uncertain tax position | $ (2,634) | $ (1,634) | $ (1,875) |
Federal Tax credits - net of uncertain tax position (percent) | 9.90% | 17.10% | 8.70% |
Expenses for uncertain tax positions | $ 137 | $ 311 | $ 358 |
Expenses for uncertain tax positions (percent) | (0.50%) | (3.30%) | (1.70%) |
Other | $ (219) | $ 72 | $ 97 |
Other (percent) | 0.70% | (0.70%) | (0.40%) |
Provision for income taxes | $ 1,082 | $ 1,206 | $ 757 |
Provision for income taxes (percent) | (4.10%) | (12.60%) | (3.50%) |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 43,869 | $ 37,326 |
Research and development credits, net of uncertain tax positions | 22,051 | 17,119 |
Accruals, reserves, and other | 11,264 | 13,992 |
Stock-based compensation | 2,628 | 2,994 |
Depreciation and amortization | 1,952 | 1,954 |
Gross deferred tax assets | 81,764 | 73,385 |
Valuation allowance | (78,681) | (72,458) |
Total deferred tax assets | 3,083 | 927 |
Deferred tax liabilities: | ||
Deferred contract acquisition costs | 2,256 | 0 |
Other | (13) | (28) |
Total deferred tax liabilities | (2,269) | (28) |
Net deferred tax assets | $ 814 | $ 899 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating Loss Carryforwards [Line Items] | ||||
Valuation allowance | $ 78,681 | $ 72,458 | ||
Increase (decrease) in valuation allowance | 6,200 | (15,600) | ||
Undistributed earnings of foreign subsidiaries | 10,800 | 8,400 | ||
Unrecognized tax benefits | 4,191 | 3,782 | $ 3,360 | $ 2,552 |
Unrecognized tax benefits that would affect the effective tax rate | 1,100 | |||
U.S. Federal | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating loss carryforwards | 185,000 | 152,300 | ||
State | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating loss carryforwards | 75,300 | 73,600 | ||
Research and Development Credit Carryforward | U.S. Federal | ||||
Operating Loss Carryforwards [Line Items] | ||||
Tax credit carryforward | 13,300 | 10,300 | ||
Research and Development Credit Carryforward | State | ||||
Operating Loss Carryforwards [Line Items] | ||||
Tax credit carryforward | $ 14,200 | $ 10,900 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Gross unrecognized tax benefits—beginning balance | $ 3,782 | $ 3,360 | $ 2,552 |
Increases (decrease) related to tax positions from prior years | (266) | (151) | 66 |
Increases related to tax positions taken during current year | 675 | 573 | 742 |
Decreases related to tax positions taken during the current year | 0 | 0 | 0 |
Gross unrecognized tax benefits—ending balance | $ 4,191 | $ 3,782 | $ 3,360 |
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, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | $ 61,825 | $ 60,502 | $ 60,713 | $ 49,183 | $ 55,517 | $ 62,005 | $ 53,973 | $ 63,934 | $ 232,223 | $ 235,429 | $ 227,297 |
United States | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 103,791 | 115,536 | 115,706 | ||||||||
Japan | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 55,205 | 51,488 | 52,951 | ||||||||
Asia Pacific, excluding Japan | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 36,897 | 33,189 | 29,829 | ||||||||
EMEA | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 27,615 | 27,859 | 23,669 | ||||||||
Latin America | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | $ 8,715 | $ 7,357 | $ 5,142 |
Geographic Information - Long L
Geographic Information - Long Lived Assets By Geographic Area (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 7,262 | $ 9,913 |
United States | ||
Long-Lived Assets [Line Items] | ||
Long-lived assets | 5,525 | 7,733 |
Japan | ||
Long-Lived Assets [Line Items] | ||
Long-lived assets | 1,108 | 1,510 |
Other | ||
Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 629 | $ 670 |
Employee Benefit Plan (Details)
Employee Benefit Plan (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Retirement Benefits [Abstract] | |||
Maximum contribution | $ 18,500 | ||
Additional contribution, Age 50 and above | $ 6,000 | ||
Percent match | 50.00% | ||
Percent of employee's compensation | 6.00% | ||
Maximum employer contribution | $ 2,500 | ||
Employer contribution amount | $ 1,000,000 | $ 1,000,000 | $ 900,000 |
Appcito Acquisition (Details)
Appcito Acquisition (Details) - USD ($) $ in Thousands | Jun. 23, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | ||||
Cash consideration | $ 0 | $ 0 | $ 4,380 | |
Appcito, Inc. | ||||
Business Acquisition [Line Items] | ||||
Total purchase price consideration | $ 6,500 | |||
Fair value of purchase price allocation | 6,300 | |||
Cash consideration | 5,000 | |||
Holdback held to cover indemnification claims | $ 700 | |||
Unregistered shares of common stock issued (shares) | 227,404 | |||
Fair value of common stock issued | $ 1,300 |
Appcito Acquisition - Purchase
Appcito Acquisition - Purchase Price Allocation (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Jun. 23, 2016 |
Business Acquisition [Line Items] | |||
Goodwill | $ 1,307 | $ 1,307 | |
Appcito, Inc. | |||
Business Acquisition [Line Items] | |||
Developed technology | $ 5,050 | ||
Goodwill | 1,235 | ||
Other tangible assets | 58 | ||
Total assets acquired | $ 6,343 |
Selected Quarterly Financial _3
Selected Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenue | $ 61,825 | $ 60,502 | $ 60,713 | $ 49,183 | $ 55,517 | $ 62,005 | $ 53,973 | $ 63,934 | $ 232,223 | $ 235,429 | $ 227,297 |
Gross profit | 48,014 | 47,488 | 47,526 | 37,299 | 43,609 | 48,138 | 41,173 | 49,191 | 180,327 | 182,111 | 172,884 |
Net income (loss) | $ (1,608) | $ (1,807) | $ (4,532) | $ (19,670) | $ 786 | $ (2,245) | $ (7,955) | $ (1,337) | $ (27,617) | $ (10,751) | $ (22,391) |
Net income (loss) per share - basic (in dollars per share) | $ (0.02) | $ (0.02) | $ (0.06) | $ (0.27) | $ 0.01 | $ (0.03) | $ (0.11) | $ (0.02) | |||
Net income (loss) per share - diluted (in dollars per share) | $ (0.02) | $ (0.02) | $ (0.06) | $ (0.27) | $ 0.01 | $ (0.03) | $ (0.11) | $ (0.02) |