Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Feb. 27, 2015 | Jun. 30, 2014 |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | RUBICON PROJECT, INC. | ||
Entity Central Index Key | 1595974 | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Amendment Flag | FALSE | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 37,750,998 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Public Float | $211.70 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $97,196 | $29,956 |
Accounts receivable, net | 133,267 | 94,722 |
Prepaid expenses and other current assets | 7,514 | 4,141 |
TOTAL CURRENT ASSETS | 237,977 | 128,819 |
Property and equipment, net | 15,196 | 8,712 |
Internal use software development costs, net | 11,501 | 7,204 |
Goodwill | 16,290 | 1,491 |
Intangible assets, net | 14,090 | 510 |
Other assets, non-current | 1,427 | 3,151 |
TOTAL ASSETS | 296,481 | 149,887 |
Current liabilities: | ||
Accounts payable and accrued expenses | 151,021 | 120,198 |
Debt and capital lease obligations, current portion | 105 | 288 |
Other current liabilities | 3,276 | 2,901 |
TOTAL CURRENT LIABILITIES | 154,402 | 123,387 |
Debt and capital leases, net of current portion | 0 | 3,893 |
Convertible preferred stock warrant liabilities | 0 | 5,451 |
Other liabilities, non-current | 1,879 | 996 |
Contingent consideration liability | 11,448 | 0 |
TOTAL LIABILITIES | 167,729 | 133,727 |
Commitments and contingencies (Note 16) | ||
Series A, B, C, and D convertible preferred stock, $0.00001 par value, 29,691 shares authorized at December 31, 2013; 28,820 shares issued and outstanding at December 31, 2013 | 0 | 52,571 |
STOCKHOLDERS’ EQUITY (DEFICIT) | ||
Preferred stock, $0.00001 par value, 10,000 shares authorized at December 31, 2014; 0 shares issued and outstanding at December 31, 2014 | 0 | 0 |
Common stock, $0.00001 par value; 500,000 and 73,380 shares authorized at December 31, 2014 and December 31, 2013, respectively; 37,192 and 11,855 shares issued and outstanding at December 31, 2014 and December 31, 2013, respectively | 0 | 0 |
Additional paid-in capital | 209,472 | 25,532 |
Accumulated other comprehensive (loss) income | -8 | 96 |
Accumulated deficit | -80,712 | -62,039 |
TOTAL STOCKHOLDERS’ EQUITY (DEFICIT) | 128,752 | -36,411 |
TOTAL LIABILITIES, CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY (DEFICIT) | $296,481 | $149,887 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Common stock, par or stated value per share | $0.00 | $0.00 |
Common stock, shares authorized | 500,000,000 | 73,380,126 |
Common stock, shares, issued | 37,192,000 | 11,855,000 |
Common stock, shares, outstanding | 37,192,000 | 11,855,000 |
Preferred Stock | ||
Preferred stock, par or stated value per share | $0.00 | |
Preferred stock, shares authorized | 10,000,000 | |
Convertible Preferred Stock | ||
Temporary equity, par or stated value per share | $0.00 | |
Temporary equity, shares authorized | 29,691,524 | |
Temporary equity, shares issued | 28,820,000 | |
Temporary equity, shares outstanding | 28,820,481 |
Consolidated_Statement_of_Oper
Consolidated Statement of Operations (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Statement [Abstract] | |||
Revenue | $125,295 | $83,830 | $57,072 |
Expenses: | |||
Cost of revenue | 20,754 | 15,358 | 12,367 |
Sales and marketing | 43,203 | 25,811 | 20,458 |
Technology and development | 22,718 | 18,615 | 13,115 |
General and administrative | 57,398 | 27,926 | 12,331 |
Total expenses | 144,073 | 87,710 | 58,271 |
Loss from operations | -18,778 | -3,880 | -1,199 |
Other (income) expense: | |||
Interest expense, net | 110 | 273 | 343 |
Change in fair value of preferred stock warrant liabilities | 732 | 4,121 | 515 |
Foreign exchange (gain) loss, net | -1,119 | 728 | 171 |
Total other (income) expense, net | -277 | 5,122 | 1,029 |
Loss before income taxes | -18,501 | -9,002 | -2,228 |
Provision for income taxes | 172 | 247 | 134 |
Net loss | -18,673 | -9,249 | -2,362 |
Cumulative preferred stock dividends | -1,116 | -4,244 | -4,255 |
Net loss attributable to common stockholders | ($19,789) | ($13,493) | ($6,617) |
Basic and diluted net loss per share attributable to common stockholders (in dollars per share) | ($0.70) | ($1.17) | ($0.60) |
Basic and diluted weighted-average shares used to compute net loss per share attributable to common stockholders (in shares) | 28,217 | 11,488 | 11,096 |
Consolidated_Statement_of_Comp
Consolidated Statement of Comprehensive Loss (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Net loss | ($18,673) | ($9,249) | ($2,362) |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments | -104 | 1 | 2 |
Comprehensive loss | ($18,777) | ($9,248) | ($2,360) |
Consolidated_Statement_of_Conv
Consolidated Statement of Convertible Preferred Stock and Stockholders' Equity (Deficit) (USD $) | Total | Preferred Stock | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income | Accumulated Deficit |
In Thousands, except Share data, unless otherwise specified | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | |
Beginning Balance at Dec. 31, 2011 | ($36,770) | $13,565 | $93 | ($50,428) | ||
Beginning Balance at Dec. 31, 2011 | 52,571 | |||||
Beginning Balance (in shares) at Dec. 31, 2011 | 28,820,000 | |||||
Beginning Balance (in shares) at Dec. 31, 2011 | 10,839,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Exercise of common stock options (in shares) | 163,000 | |||||
Exercise of common stock options | 125 | 125 | ||||
Equity issued for acquisitions (in shares) | 245,000 | |||||
Equity issued for acquisitions | 1,237 | 1,237 | ||||
Stock-based compensation (in shares) | 154,000 | |||||
Stock-based compensation | 3,206 | 3,206 | ||||
Foreign exchange translation adjustment | 2 | 2 | ||||
Net loss | -2,362 | -2,362 | ||||
Ending Balance at Dec. 31, 2012 | -34,562 | 18,133 | 95 | -52,790 | ||
Ending Balance at Dec. 31, 2012 | 52,571 | |||||
Ending Balance (in shares) at Dec. 31, 2012 | 28,820,000 | |||||
Ending Balance (in shares) at Dec. 31, 2012 | 11,401,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Exercise of common stock options (in shares) | 454,000 | |||||
Exercise of common stock options | 866 | 866 | ||||
Stock-based compensation | 6,533 | 6,533 | ||||
Foreign exchange translation adjustment | 1 | 1 | ||||
Net loss | -9,249 | -9,249 | ||||
Ending Balance at Dec. 31, 2013 | -36,411 | 25,532 | 96 | -62,039 | ||
Ending Balance at Dec. 31, 2013 | 52,571 | 52,571 | ||||
Ending Balance (in shares) at Dec. 31, 2013 | 11,855,000 | 11,855,000 | ||||
Beginning Balance (in shares) at Dec. 31, 2013 | 28,820,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Exercise of common stock options (in shares) | 1,360,000 | |||||
Exercise of common stock options | 3,498 | 3,498 | ||||
Equity issued for acquisitions (in shares) | 841,000 | |||||
Equity issued for acquisitions | 13,342 | 13,342 | ||||
Restricted stock awards (in shares) | 2,168,000 | |||||
Shares withheld related to net share settlement (in shares) | -174,000 | |||||
Shares withheld related to net share settlement | -2,324 | -2,324 | ||||
Issuance of common stock related to RSU vesting (in shares) | 4,000 | |||||
Net exercise of warrant for convertible preferred stock (in shares) | 572,000 | |||||
Net exercise of warrant for convertible preferred stock | 5,983 | 5,983 | ||||
Conversion of convertible preferred stock to common stock (in shares) | -29,392,000 | 14,696,000 | ||||
Conversion of convertible preferred stock to common stock | 52,571 | -52,571 | 52,571 | |||
Conversion of warrant for convertible preferred stock to a warrant for common stock | 200 | 200 | ||||
Issuance of common stock from initial public offering, net of issuance costs (in shares) | 6,432,000 | |||||
Issuance of common stock from initial public offering, net of issuance costs | 86,200 | 86,200 | ||||
Net exercise of warrant for common stock (in shares) | 10,000 | |||||
Stock-based compensation | 24,470 | 24,470 | ||||
Foreign exchange translation adjustment | -104 | -104 | ||||
Net loss | -18,673 | -18,673 | ||||
Ending Balance at Dec. 31, 2014 | 128,752 | 209,472 | -8 | -80,712 | ||
Ending Balance at Dec. 31, 2014 | $0 | |||||
Ending Balance (in shares) at Dec. 31, 2014 | 37,192,000 | 37,192,000 |
Consolidated_Statement_of_Cash
Consolidated Statement of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
OPERATING ACTIVITIES: | |||
Net loss | ($18,673) | ($9,249) | ($2,362) |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||
Depreciation and amortization | 12,517 | 8,438 | 6,857 |
Stock-based compensation | 23,846 | 6,352 | 3,044 |
Loss (gain) on disposal of property and equipment, net | 202 | -7 | 6 |
Change in fair value of preferred stock warrant liabilities | 732 | 4,121 | 515 |
Contingent consideration accretion | 66 | 0 | 0 |
Deferred income taxes | -145 | 0 | -20 |
Unrealized foreign currency (gain) loss | -763 | 68 | -231 |
Changes in operating assets and liabilities, net of effect of business acquisitions: | |||
Accounts receivable | -38,023 | -27,102 | -26,339 |
Prepaid expenses and other assets | -2,152 | -1,966 | 84 |
Accounts payable and accrued expenses | 29,861 | 39,168 | 32,348 |
Other liabilities | -823 | 1,269 | 1,696 |
Net cash provided by operating activities | 6,645 | 21,092 | 15,598 |
INVESTING ACTIVITIES: | |||
Purchases of property and equipment | -10,706 | -6,785 | -3,040 |
Capitalized internal use software development costs | -8,779 | -3,926 | -3,699 |
Acquisitions, net of cash acquired | -3,983 | 0 | -1,741 |
Change in restricted cash | 345 | -1,151 | -550 |
Net cash used in investing activities | -23,123 | -11,862 | -9,030 |
FINANCING ACTIVITIES: | |||
Proceeds from the issuance of common stock in initial public offering, net of underwriting discounts and commissions | 89,733 | 0 | 0 |
Payments of initial public offering costs | -3,037 | -496 | 0 |
Proceeds from exercise of stock options | 3,498 | 866 | 125 |
Taxes paid related to net share settlement | -2,324 | 0 | 0 |
Repayment of debt and capital lease obligations | -4,076 | -1,166 | -1,524 |
Net cash provided by (used in) financing activities | 83,794 | -796 | -1,399 |
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | -76 | -94 | 195 |
INCREASE IN CASH AND CASH EQUIVALENTS | 67,240 | 8,340 | 5,364 |
CASH--Beginning of period | 29,956 | 21,616 | 16,252 |
CASH AND CASH EQUIVALENTS--End of period | 97,196 | 29,956 | 21,616 |
SUPPLEMENTAL DISCLOSURES OF OTHER CASH FLOW INFORMATION: | |||
Cash paid for income taxes | 403 | 307 | 13 |
Cash paid for interest | 122 | 241 | 303 |
Capitalized assets financed by accounts payable and accrued expenses | 1,872 | 194 | 340 |
Assets acquired under capital leases | 0 | 0 | 1,235 |
Leasehold improvements paid by landlord | 803 | 0 | 0 |
Capitalized stock-based compensation | 624 | 181 | 162 |
Conversion of preferred stock to common stock | 52,571 | 0 | 0 |
Reclassification of preferred stock warrant liabilities to additional-paid-in-capital | 6,183 | 0 | 0 |
Reclassification of deferred offering costs to additional-paid-in-capital | 3,533 | 0 | 0 |
Deferred offering costs included in accounts payable and accrued expenses | 0 | 865 | 0 |
Common stock and exchange of stock options for business acquisitions | $13,342 | $0 | $1,237 |
Nature_of_Operations
Nature of Operations | 12 Months Ended |
Dec. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | Nature of Operations |
Company Overview | |
The Rubicon Project, Inc., or Rubicon Project or the Company, was formed on April 20, 2007 in Delaware and began operations in April 2007. The Company is headquartered in Los Angeles, California. | |
The Company is a technology company with a mission to automate the buying and selling of advertising. The Company offers a highly scalable platform that creates and powers a marketplace for trading digital advertising between buyers and sellers. | |
The Company delivers value to buyers and sellers of digital advertising through the Company’s proprietary advertising automation solution, which provides critical functionality to both buyers and sellers. The advertising automation solution consists of applications for sellers, including providers of websites, applications and other digital media properties, to sell their advertising inventory; applications for buyers, including advertisers, agencies, agency trading desks, demand side platforms, and ad networks, to buy advertising inventory; and a marketplace over which such transactions are executed. This solution incorporates proprietary machine-learning algorithms, sophisticated data processing, high-volume storage, detailed analytics capabilities, and a distributed infrastructure. Together, these features form the basis for the Company’s advertising marketplace that brings buyers and sellers together and facilitates intelligent decision-making and automated transaction execution for the advertising inventory managed on the Company’s platform. | |
Initial Public Offering | |
In April 2014, the Company completed an initial public offering, or IPO, whereby 6,432,445 shares of common stock were issued and sold by the Company, and 1,354,199 shares of common stock were sold by selling stockholders. Upon the closing of the IPO, all outstanding shares of preferred stock of the Company converted into common stock. See Note 11. | |
Risks | |
The Company is subject to certain business risks, including dependence on key employees, competition, market acceptance of its platform solution, ability to source demand from buyers of advertising inventory and source supply from sellers of advertising inventory, and dependence on growth to achieve its business plan. |
Basis_of_Presentation_and_Summ
Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended | |
Dec. 31, 2014 | ||
Accounting Policies [Abstract] | ||
Basis of Presentation and Summary of Significant Accounting Policies | Basis of Presentation and Summary of Significant Accounting Policies | |
Basis of Consolidation | ||
The accompanying consolidated financial statements are presented in accordance with accounting principles generally accepted in the United States of America, or GAAP, and include the operations of the Company and its wholly owned subsidiaries. All significant inter-company transactions and balances have been eliminated in consolidation. | ||
Segments | ||
Management has determined that it operates in one segment. The Company’s chief operating decision maker reviews financial information on an aggregated and consolidated basis, together with certain operating and performance measures principally to make decisions about how to allocate resources and to measure the Company’s performance. | ||
Stock Split | ||
On March 18, 2014, the Company effected a 1-for-2 reverse stock split of its common stock. The convertible preferred stock was not split at March 18, 2014; instead the convertible preferred stock conversion ratio was adjusted to effect the stock split at the time of conversion of the preferred stock to common stock. All share, per share and related information presented in the consolidated financial statements and accompanying notes has been retroactively adjusted, where applicable, to reflect the reverse stock split. | ||
Use of Estimates | ||
The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported and disclosed financial statements and accompanying footnotes. Actual results could differ materially from these estimates. | ||
On an ongoing basis, management evaluates its estimates, primarily those related to: (i) revenue recognition criteria, including the determination of revenue reporting as net versus gross in the Company’s revenue arrangements, (ii) accounts receivable and allowances for doubtful accounts, (iii) the useful lives of intangible assets and property and equipment, (iv) valuation of long-lived assets and their recoverability, including goodwill, (v) the realization of tax assets and estimates of tax liabilities, (vi) the valuation of common and preferred stock and preferred stock warrants prior to the Company’s IPO, (vii) assumptions used in valuation models to determine the fair value of stock-based awards, (viii) fair value of financial instruments, (ix) the recognition and disclosure of contingent liabilities, and (x) the assumptions used in valuing acquired assets and assumed liabilities in business combinations. These estimates are based on historical data and experience, as well as various other factors that management believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Estimates relating to the valuation of stock and business combinations require the selection of appropriate valuation methodologies and models, and significant judgment in evaluating ranges of assumptions and financial inputs. Actual results may differ materially from those estimates under different assumptions or circumstances. | ||
Revenue Recognition | ||
The Company generates revenue from buyers and sellers who use the Company’s solution for the buying and selling of advertising inventory. The Company recognizes revenue when four basic criteria are met: (i) persuasive evidence of an arrangement exists, (ii) delivery has occurred or services have been rendered, (iii) the fees are fixed or determinable, and (iv) collectibility is reasonably assured. The Company maintains separate arrangements with each buyer and seller either in the form of a master agreement, which specifies the terms of the relationship and access to the Company’s solution, or by insertion orders which specify price and volume requests. The Company also generates revenue directly from sellers who maintain the primary relationship with buyers and utilize the Company’s solution. The Company recognizes revenue upon the completion of a transaction, that is, when an impression has been delivered to the consumer viewing a website or application. The Company assesses whether fees are fixed or determinable based on impressions delivered and the contractual terms of the arrangements. Subsequent to the delivery of an impression, the fees are generally not subject to adjustment or refund. Historically, any refunds and adjustments have not been material. The Company assesses collectibility based on a number of factors, including the creditworthiness of a buyer and seller and payment and transaction history. The Company’s revenue arrangements do not include multiple deliverables. The Company generally bills buyers for the gross amount of advertising inventory they purchase plus fees, if any, and the Company remits to a seller the amount spent by the buyer for the advertising inventory purchased less the Company’s fees. | ||
The Company also reports revenue in conformity with Revenue Recognition-Principal Agent Considerations. The determination of whether the Company is the principal or agent, and hence whether to report revenue on a gross basis for the amount of the advertising inventory buyers purchase using the Company’s platform, plus fees, if any, or on a net basis for the amount of fees charged to the buyer, if any, and retained fees from or charged to the seller, requires the Company to evaluate a number of indicators, none of which is presumptive or determinative. The Company’s solution enables buyers and sellers to purchase and sell advertising inventory, and matches buyers and sellers and establishes rules and parameters for advertising inventory transactions. Pricing is generally determined through the Company’s auction process. The Company does not purchase advertising inventory. As a result of these and other factors, the Company has determined it is not the principal in the purchase and sale of advertising inventory in all of its arrangements and the Company therefore reports revenue on a net basis. | ||
Expenses | ||
The Company classifies its expenses into four categories: | ||
Cost of Revenue | ||
The Company’s cost of revenue consists primarily of data center costs, bandwidth costs, depreciation and maintenance expense of hardware supporting the Company’s revenue-producing platform, amortization of software costs for the development of the Company’s revenue-producing platform, amortization expense associated with acquired developed technologies, personnel costs, and facilities-related costs. Personnel costs included in cost of revenue include salaries, bonuses, stock-based compensation, and employee benefit costs, and are primarily attributable to personnel in our network operations group, who support the Company’s platform. The Company capitalizes costs associated with software that is developed or obtained for internal use and amortizes the costs associated with the Company’s revenue-producing platform in cost of revenue over their estimated useful lives. Many of these expenses are generally fixed and do not increase or decrease proportionately with increases or decreases in our revenue. | ||
Sales and Marketing | ||
The Company’s sales and marketing expenses consist primarily of personnel costs, including stock-based compensation and the sales bonuses paid to the Company’s sales organization, and marketing expenses such as brand marketing, travel expenses, trade shows and marketing materials, professional services, and to a lesser extent, facilities-related costs and depreciation and amortization. The Company's sales organization focuses on marketing the Company's solution to increase the adoption of the solution by existing and new buyers and sellers. | ||
Technology and Development | ||
The Company’s technology and development expenses consist primarily of personnel costs, including stock-based compensation, and professional services associated with the ongoing development and maintenance of the Company’s solution, and to a lesser extent, facilities-related costs and depreciation and amortization. These expenses include costs incurred in the development, implementation, and maintenance of internal use software, including platform and related infrastructure. Technology and development costs are expensed as incurred, except to the extent that such costs are associated with internal use software development that qualifies for capitalization, which are then recorded as Internal use software development costs, net on the Company’s consolidated balance sheet. The Company amortizes internal use software development costs that relate to its revenue-producing activities on its platform to cost of revenue and amortizes other internal use software development costs to technology and development costs or general and administrative expenses, depending on the nature of the related project. | ||
General and Administrative | ||
The Company’s general and administrative expenses consist primarily of personnel costs, including stock-based compensation, associated with the Company’s executive, finance, legal, human resources, compliance, and other administrative personnel, as well as accounting and legal professional services fees, facilities-related costs and depreciation, and other corporate related expenses. General and administrative expenses also include amortization of internal use software development costs that relate to general and administrative functions. | ||
Stock-Based Compensation | ||
Compensation expense related to employee stock-based awards is measured and recognized in the consolidated financial statements based on the fair value of the awards granted. The Company has granted awards to employees that vest based solely on continued service, or service conditions, awards that vest based on the achievement of performance targets, or performance conditions, and awards that vest based on the Company's stock price exceeding a peer index, or market conditions. The fair value of each option award containing service and/or performance conditions is estimated on the grant date using the Black-Scholes option-pricing model. The fair value of awards containing market conditions is estimated using a Monte-Carlo lattice model. For service condition awards, stock-based compensation expense is recognized on a straight-line basis, net of forfeitures, over the requisite service periods of the awards, which is generally four years. For performance condition and market condition awards, stock-based compensation expense is recognized using a graded vesting model, over the requisite service period of the awards. For market condition awards, expense recognized is not subsequently reversed if the market conditions are not achieved. | ||
Stock-based awards issued to non-employees are accounted for at fair value determined by using the Black-Scholes option-pricing model. The Company believes that the fair value of the stock options is more reliably measured than the fair value of the services received. The fair value of each non-employee stock-based compensation award is re-measured each period until a commitment date is reached, which is generally the vesting date. | ||
Determining the fair value of stock-based awards at the grant date requires judgment. The Company’s use of the Black-Scholes option-pricing model and Monte-Carlo lattice model requires the input of subjective assumptions such as the expected term of the option, the expected volatility of the price of the Company’s common stock, risk-free interest rates, the expected dividend yield of the Company’s common stock, and for periods prior to the Company's IPO, the fair value of the Company's common stock. The assumptions used in the Company’s valuation models represent management’s best estimates. These estimates involve inherent uncertainties and the application of management’s judgment. If factors change and different assumptions are used, the Company’s stock-based compensation expense could be materially different in the future. | ||
These assumptions and estimates are as follows: | ||
Fair Value of Common Stock. For stock options granted subsequent to the Company's IPO, the fair value of common stock is based on the closing price of the Company's common stock as reported on the New York Stock Exchange, or the NYSE, on the date of grant. Prior to the IPO, the board of directors determined the fair value of the common stock at the time of the grant of options and restricted stock awards by considering a number of objective and subjective factors. The fair value was determined in accordance with applicable elements of the practice aid issued by the American Institute of Certified Public Accountants titled Valuation of Privately Held Company Equity Securities Issued as Compensation. | ||
Risk-Free Interest Rate. The Company bases the risk-free interest rate used in the Black-Scholes option-pricing model on the yields of U.S. Treasury securities with maturities appropriate for the term of employee stock option awards. | ||
Expected Term. For employee options that contain service conditions, the Company applies the simplified approach, in which the expected term of an award is presumed to be the mid-point between the vesting date and the expiration date of the award. The expected term of employee stock options that contain performance conditions represents the weighted-average period that the stock options are estimated to remain outstanding. | ||
Volatility. Because the Company does not have significant trading history for the Company’s common stock, the Company determines the price volatility based on the historical volatilities of a publicly traded peer group based on daily price observations over a period equivalent to the expected term of the stock option grants. | ||
Dividend Yield. The dividend yield assumption is based on the Company’s history and current expectations of dividend payouts. The Company has never declared or paid any cash dividends on its common stock and does not anticipate paying any cash dividends in the foreseeable future, so the Company used an expected dividend yield of zero. | ||
In addition to the above assumptions, the Company also estimates a forfeiture rate to calculate the stock-based compensation expense for stock based awards. The Company’s forfeiture rate is based on an analysis of the Company’s historical forfeitures and estimated future forfeitures. Changes in the estimated forfeiture rate may have a significant impact on the Company’s stock-based compensation expense as the cumulative effect of adjusting the rate is recognized in the period the forfeiture estimate is changed. | ||
The Company will continue to use judgment in evaluating the assumptions related to the Company’s stock-based compensation. Future expense amounts for any particular period could be affected by changes in the Company’s assumptions or market conditions. | ||
Due to the full valuation allowance provided on its net deferred tax assets, the Company has not recorded any tax benefit attributable to stock-based awards for the years ended December 31, 2014, 2013, and 2012. | ||
Income Taxes | ||
Deferred income tax assets and liabilities are determined based upon the net tax effects of the differences between the Company’s consolidated financial statements carrying amounts and the tax basis of assets and liabilities and are measured using the enacted tax rate expected to apply to taxable income in the years in which the differences are expected to be reversed. | ||
A valuation allowance is used to reduce some or all of the deferred tax assets if, based upon the weight of available evidence, it is more likely than not that those deferred tax assets will not be realized. The Company has established a full valuation allowance to offset its domestic net deferred tax assets due to the uncertainty of realizing future tax benefits from the net operating loss carryforwards and other deferred tax assets. | ||
The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the consolidated financial statements from such positions are then measured based on the largest benefit that has a greater than 50% likelihood of being realized. The Company recognizes interest and penalties accrued related to its uncertain tax positions in its income tax provision in the accompanying consolidated statements of operations. | ||
The Company recognizes excess tax benefits associated with stock-based compensation to stockholders’ equity only when realized based on applying a with-and-without approach. | ||
Net Loss Per Share Attributable to Common Stockholders | ||
Basic net loss per share of common stock is calculated by dividing the net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding. Net loss attributable to common stockholders is equal to net loss adjusted for declared or cumulative preferred stock dividends for the period. Prior to the IPO, because the holders of the Company’s convertible preferred stock were entitled to participate in dividends, the Company applied the two-class method in calculating earnings per share for periods when the Company generated net income. The two-class method requires net income to be allocated between the common and preferred stockholders based on their respective rights to receive dividends, whether or not declared. However, because the convertible preferred stock was not contractually obligated to share in the Company’s losses, no such allocation was made for any period presented given the Company’s net losses. | ||
Diluted loss per share attributable to common stockholders adjusts the basic weighted-average number of shares of common stock outstanding for the effect of potentially dilutive securities during the period. Potentially dilutive securities consist of stock options, restricted stock awards, restricted stock units, potential shares issued under the Company's Employee Stock Purchase Plan, shares held in escrow and potential shares issuable as part of contingent consideration as a result of business combinations, warrants and convertible preferred stock. For purposes of this calculation, potentially dilutive securities are excluded from the calculation of diluted net loss per share attributable to common stockholders if their effect is anti-dilutive. | ||
Prior to the Company's IPO, the Company had two classes of stock, Class A and Class B. Basic and diluted net loss per share attributable to common stockholders were the same for Class A and Class B common stock because they were entitled to the same liquidation and dividend rights. In connection with the IPO, the outstanding shares of Class A common stock and Class B common stock were converted into shares of a single class of common stock on a one-for-one basis. See Note 11. | ||
Comprehensive Loss | ||
Comprehensive loss encompasses all changes in equity other than those arising from transactions with stockholders, and consists of net loss and foreign currency translation adjustments. | ||
Cash and Cash Equivalents | ||
The Company considers cash and cash equivalents to include short-term, highly liquid investments that are readily convertible to known amounts of cash and so near their maturity that they present insignificant risk of changes in their value, including investments with original or remaining maturities from the date of purchase of three months or less. At December 31, 2014 and 2013, cash and cash equivalents consisted of cash balances and money market funds of $97.2 million and $30.0 million, respectively. | ||
Restricted Cash | ||
The Company holds restricted cash required to fulfill its payment obligations if the Company should default under a software license agreement and the building lease for its headquarters in Los Angeles, California. At December 31, 2014 and 2013, restricted cash included in prepaid expenses and other current assets was $0.4 million and $0.4 million, respectively. At December 31, 2014 and 2013, restricted cash included in other assets, non-current was $1.0 million and $1.3 million, respectively. | ||
Accounts Receivable Allowance for Doubtful Accounts | ||
Accounts receivable are recorded at the invoiced amount, are unsecured, and do not bear interest. The allowance for doubtful accounts is based on the best estimate of the amount of probable credit losses in existing accounts receivable. The allowance for doubtful accounts is determined based on historical collection experience and the review in each period of the status of the then-outstanding accounts receivable, while taking into consideration current customer information, subsequent collection history and other relevant data. The Company reviews the allowance for doubtful accounts on a quarterly basis. Account balances are charged off against the allowance when the Company believes it is probable the receivable will not be recovered. The Company’s allowance for doubtful accounts was approximately $0.3 million and $0.7 million at December 31, 2014 and 2013, respectively. During the years ended December 31, 2014, and 2013, the Company reserved an additional $0.2 million and $1.0 million, respectively, for doubtful accounts and wrote-off $0.6 million and $0.4 million, respectively, of accounts receivable. Activity for the year ended December 31, 2012 was not significant. | ||
Property and Equipment, Net | ||
Property and equipment are recorded at historical cost, less accumulated depreciation and amortization. Depreciation is computed using the straight-line method based upon the estimated useful lives of the assets. The estimated useful lives of the Company’s property and equipment are as follows: | ||
Years | ||
Purchased and internally developed software | 3 | |
Computer equipment and network hardware | 3 | |
Furniture, fixtures and office equipment | 5 to 7 | |
Leasehold improvements | Shorter of useful | |
life or life of lease | ||
Computer equipment under capital leases | Shorter of useful | |
life or life of lease | ||
Repair and maintenance costs are charged to expense as incurred, while renewals and improvements are capitalized. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss is reflected in the Company’s results of operations. | ||
Internal Use Software Development Costs | ||
The Company capitalizes certain internal use software development costs associated with creating and enhancing internally developed software related to the Company’s technology infrastructure. These costs include personnel and related employee benefits expenses for employees who are directly associated with and who devote time to software projects, and external direct costs of materials and services consumed in developing or obtaining the software. Software development costs that do not meet the qualification for capitalization, as further discussed below, are expensed as incurred and recorded in technology and development expenses in the results of operations. | ||
Software development activities generally consist of three stages, (i) the planning stage, (ii) the application and infrastructure development stage, and (iii) the post implementation stage. Costs incurred in the planning and post implementation stages of software development, including costs associated with the post-configuration training and repairs and maintenance of the developed technologies, are expensed as incurred. The Company capitalizes costs associated with software developed for internal use when both the preliminary project stage is completed, management has authorized further funding for the completion of the project, and it is probable that the project will be completed and perform as intended. Costs incurred in the application and infrastructure development stages, including significant enhancements and upgrades, are capitalized. Capitalization ends once a project is substantially complete and the software and technologies are ready for their intended purpose. Internal use software development costs are amortized using a straight-line method over the estimated useful life of three years, commencing when the software is ready for its intended use. The straight-line recognition method approximates the manner in which the expected benefit will be derived. | ||
The Company does not transfer ownership of its software, or lease its software, to third parties. | ||
Intangible Assets | ||
Intangible assets primarily consist of acquired developed technology, customer relationships and non-compete agreements resulting from business combinations, which are recorded at cost, less accumulated amortization. The Company determines the appropriate useful life of its intangible assets by performing an analysis of expected cash flows of the acquired assets. Intangible assets are amortized over their estimated useful lives using a straight-line method, which approximates the pattern in which the economic benefits are consumed. | ||
The estimated useful lives of the Company’s intangible assets are as follows: | ||
Years | ||
Developed technology | 3 to 5 | |
Non-compete agreements | 2 to 3 | |
Customer relationships | 2.5 | |
Other intangible assets | 0.5 to 1.5 | |
Impairment of Long-Lived Assets including Internal Use Capitalized Software Costs | ||
The Company assesses the recoverability of its long-lived assets when events or changes in circumstances indicate their carrying value may not be recoverable. Such events or changes in circumstances may include: a significant adverse change in the extent or manner in which a long-lived asset is being used, significant adverse change in legal factors or in the business climate that could affect the value of a long-lived asset, an accumulation of costs significantly in excess of the amount originally expected for the acquisition or development of a long-lived asset, current or future operating or cash flow losses that demonstrate continuing losses associated with the use of a long-lived asset, or a current expectation that, more likely than not, a long-lived asset will be sold or otherwise disposed of significantly before the end of its previously estimated useful life. The Company performs impairment testing at the asset group level that represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. The Company assesses recoverability of a long-lived asset by determining whether the carrying value of the asset group can be recovered through projected undiscounted cash flows over their remaining lives. If the carrying value of the asset group exceeds the forecasted undiscounted cash flows, an impairment loss is recognized, measured as the amount by which the carrying amount exceeds estimated fair value. An impairment loss is charged to operations in the period in which management determines such impairment. | ||
Business Combinations | ||
The results of businesses acquired in a business combination are included in the Company’s consolidated financial statements from the date of acquisition. The Company allocates the purchase price, which is the sum of the consideration provided which may consist of cash, equity or a combination of the two, in a business combination to the identifiable assets and liabilities of the acquired business at their acquisition date fair values. The excess of the purchase price over the amount allocated to the identifiable assets and liabilities, if any, is recorded as goodwill. Determining the fair value of assets acquired and liabilities assumed requires management to use significant judgment and estimates including the selection of valuation methodologies, estimates of future revenues and cash flows, discount rates and selection of comparable companies. | ||
When the Company issues stock-based or cash awards to an acquired company’s stockholders, the Company evaluates whether the awards are contingent consideration or compensation for post-business combination services. The evaluation includes, among other things, whether the vesting of the awards is contingent on the continued employment of the selling stockholder beyond the acquisition date. If continued employment is required for vesting, the awards are treated as compensation for post-acquisition services and recognized as expense over the requisite service period. | ||
The Company estimates the fair value of intangible assets acquired generally using a discounted cash flow approach, which includes an analysis of the future cash flows expected to be generated by the asset and the risk associated with achieving these cash flows. The key assumptions used in the discounted cash flow model include the discount rate that is applied to the forecasted future cash flows to calculate the present value of those cash flows and the estimate of future cash flows attributable to the acquired intangible asset, which include revenue, expenses and taxes. The carrying value of acquired working capital assets and liabilities approximates its fair value, given the short-term nature of these assets and liabilities. | ||
Acquisition-related transaction costs are not included as a component of consideration transferred, but are accounted for as an expense in the period in which the costs are incurred. | ||
Goodwill | ||
Goodwill represents the excess of the aggregate fair value of the consideration transferred in a business combination over the fair value of the assets acquired, net of liabilities assumed. Goodwill is not amortized, but is subject to an annual impairment test. The Company tests for impairment of goodwill annually during the fourth quarter or more frequently if events or changes in circumstances indicate that the goodwill may be impaired. | ||
Events or changes in circumstances which could trigger an impairment review include a significant adverse change in legal factors or in the business climate, an adverse action or assessment by a regulator, unanticipated competition, a loss of key personnel, significant changes in the manner of the Company’s use of the acquired assets or the strategy for the Company’s overall business, significant negative industry or economic trends, or significant underperformance relative to expected historical or projected future results of operations. | ||
The Company has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing the totality of events or circumstances, an entity determines it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then additional impairment testing is not required. However, if an entity concludes otherwise, then it is required to perform the first of a two-step impairment test. | ||
The first step involves comparing the estimated fair value of a reporting unit with its respective book value, including goodwill. If the estimated fair value exceeds book value, goodwill is considered not to be impaired and no additional steps are necessary. If, however, the fair value of the reporting unit is less than book value, then a second step is required which requires the carrying amount of the goodwill be compared with its implied fair value. The estimate of implied fair value of goodwill may require valuations of certain internally generated and unrecognized intangible and tangible net assets. If the carrying amount of goodwill exceeds the implied fair value of the goodwill, an impairment loss is recognized in an amount equal to the excess. | ||
Operating and Capital Leases | ||
The Company records rent expense for operating leases, some of which have escalating rent payments, over the term of the lease, on a straight-line basis over the lease term. The Company begins recognition of rent expense on the date of initial possession, which is generally when the Company enters the leased premises and begins to make improvements in preparation for its intended use. Some of the Company’s lease arrangements provide for concessions by the landlords, including payments for leasehold improvements and rent-free periods. The Company accounts for the difference between the straight-line rent expense and rent paid as a deferred rent liability. | ||
The Company leases equipment under capital lease arrangements. The assets and liabilities under capital lease are recorded at the lesser of present value of aggregate future minimum lease payments, including estimated bargain purchase options, or the fair value of the asset under lease. Assets under capital lease are amortized using the straight-line method over the estimated useful lives of the assets. | ||
Preferred Stock Warrant Liabilities | ||
The Company issued warrants to purchase preferred stock in connection with professional services and financing arrangements and accounted for these warrants as liabilities at fair value because the underlying shares of convertible preferred stock were contingently redeemable, including in the case of a deemed liquidation, which may have obligated the Company to transfer assets to the warrant holders. The preferred stock warrants were recorded at fair value at the time of issuance and changes in the fair value of the preferred stock warrants each reporting period were recorded as part of other expense, net in the Company’s consolidated statements of operations until the earlier of the exercise or expiration of the warrants or the warrants’ conversion to warrants to purchase common stock, at which time any remaining liability was reclassified to additional paid-in capital. Following the closing of the Company's IPO, the Company was no longer required to re-measure the warrants to fair value and record any changes in the fair value of these liabilities in the statement of operations, and accordingly, the Company did not record any related expenses subsequent to the closing of the IPO. | ||
Fair Value of Financial Instruments | ||
Fair value represents the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value hierarchy is based on the following three levels of inputs, of which the first two are considered observable and the last one is considered unobservable: | ||
• | Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. | |
• | Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. | |
• | Level 3 – Unobservable inputs. | |
Observable inputs are based on market data obtained from independent sources. | ||
At, December 31, 2014, the Company's contingent consideration liability was measured using unobservable inputs that required a high level of judgment to determine fair value, and thus classified as Level 3. At December 31, 2013 the Company’s warrants to purchase preferred stock were measured using unobservable inputs that required a high level of judgment to determine fair value, and thus classified as Level 3. The Company's warrants to purchase preferred stock were re-measured to fair value through closing of the IPO. See Note 8. | ||
The carrying amounts of cash equivalents, accounts receivable, accounts payable, accrued expenses, and seller payables approximate fair value due to the short-term nature of these instruments. The carrying value of the line of credit approximates fair value based on borrowing rates currently available to the Company for financing with similar terms and were determined to be Level 2. | ||
Certain assets, including goodwill and intangible assets are also subject to measurement at fair value on a non-recurring basis if they are deemed to be impaired as a result of an impairment review. | ||
Concentration of Risk | ||
Financial instruments that potentially subject the Company to concentration of credit risk consist principally of cash, cash equivalents, restricted cash and accounts receivable. The Company maintains its cash and cash equivalents with financial institutions which exceed the Federal Deposit Insurance Corporation, or FDIC, federally insured limits. | ||
Accounts receivable include amounts due from buyers with principal operations primarily in the United States. The Company performs ongoing credit evaluations of its buyers. | ||
At December 31, 2014, two buyers accounted for 15% and 11%, respectively, of consolidated accounts receivable. At December 31, 2013, two buyers accounted for 13% and 10%, respectively, of consolidated accounts receivable. | ||
For the years ended December 31, 2014, 2013, and 2012, no buyer or seller of advertising inventory comprised 10% or more of consolidated revenue. | ||
At December 31, 2014, one seller of advertising inventory comprised 14% of consolidated accounts payable. At December 31, 2013, no seller of advertising inventory comprised 10% or more of consolidated accounts payable. | ||
Foreign Currency Transactions and Translation | ||
Transactions in foreign currencies are translated into the functional currency of the applicable entity at the rates of exchange in effect at the date of the transaction. Foreign exchange gains, net was approximately $1.1 million for the year ended December 31, 2014 and foreign exchange losses, net were approximately $0.7 million and $0.2 million for the years ended December 31, 2013 and 2012, respectively, and are included in other expense, net in the accompanying consolidated statements of operations. To the extent that the functional currency is different than the U.S Dollar, the financial statements have then been translated into U.S. Dollars using period-end exchanges rates for assets and liabilities and average exchanges rates for the results of operations. Foreign currency translation gains and losses are included as a component of accumulated other comprehensive loss on the consolidated balance sheet. | ||
Recent Accounting Pronouncements | ||
Under the Jumpstart Our Business Startups Act, or the JOBS Act, the Company meets the definition of an emerging growth company. The Company has irrevocably elected to opt out of the extended transition period for complying with new or revised accounting standards pursuant to Section 107(b) of the JOBS Act. | ||
In April 2014, the Financial Accounting Standards Board, or FASB, issued new accounting guidance that raises the threshold for a disposal to qualify as a discontinued operation and requires new disclosures of both discontinued operations and certain other disposals that do not meet the definition of a discontinued operation. The new guidance is effective for fiscal years beginning on or after December 15, 2014. Early adoption is permitted but only for disposals that have not been reported in financial statements previously issued. As of December 31, 2014, the adoption of this guidance is not expected to have a material impact on the Company's consolidated financial statements. | ||
In May 2014, the FASB issued new accounting guidance that requires an entity to recognize the amount of revenue it expects to earn from the transfer of promised goods or services to customers. The new accounting guidance will replace most existing GAAP revenue recognition guidance when it becomes effective. The new guidance is effective for annual reporting periods (including interim periods within those periods) beginning after December 15, 2016. Early adoption is not permitted. The guidance permits the use of either the retrospective or cumulative effect transition method. The Company will evaluate the effect, if any, the guidance will have on the Company's consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the guidance on its ongoing financial reporting. | ||
In August 2014, the FASB issued an amendment to the accounting guidance related to the evaluation of an entity to continue as a going concern. The amendment establishes management’s responsibility to evaluate whether there is a substantial doubt about an entity's ability to continue as a going concern in connection with preparing financial statements for each annual and interim reporting period. The amendment also gives guidance to determine whether to disclose information about relevant conditions and events when there is substantial doubt about an entity's ability to continue as a going concern. The new guidance is effective as of December 15, 2016. The adoption of this guidance is not expected to have a material impact on the Company's consolidated financial statements. |
Net_Loss_Per_Share_Attributabl
Net Loss Per Share Attributable to Common Stockholders | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||
Net Loss Per Share Attributable to Common Stockholders | Net Loss Per Share Attributable to Common Stockholders | ||||||||||||
The following table presents the basic and diluted net loss per share attributable to common stockholders: | |||||||||||||
Year Ended | |||||||||||||
31-Dec-14 | 31-Dec-13 | 31-Dec-12 | |||||||||||
(In thousands, except per share data) | |||||||||||||
Net loss attributable to common stockholders | $ | (19,789 | ) | $ | (13,493 | ) | $ | (6,617 | ) | ||||
Weighted-average common shares outstanding | 29,921 | 11,540 | 11,179 | ||||||||||
Weighted-average unvested restricted shares | (1,704 | ) | (52 | ) | (83 | ) | |||||||
Weighted-average common shares outstanding used to compute net loss per share attributable to common stockholders | 28,217 | 11,488 | 11,096 | ||||||||||
Basic and diluted net loss per share attributable to common stockholders | $ | (0.70 | ) | $ | (1.17 | ) | $ | (0.60 | ) | ||||
The following shares have been excluded from the calculation of diluted net loss per share attributable to common stockholders for each period presented because they are anti-dilutive: | |||||||||||||
31-Dec-14 | 31-Dec-13 | 31-Dec-12 | |||||||||||
(in thousands) | |||||||||||||
Options to purchase common stock | 8,113 | 8,360 | 5,771 | ||||||||||
Unvested restricted stock awards | 1,750 | — | 135 | ||||||||||
Unvested restricted stock units | 845 | — | — | ||||||||||
Shares held in escrow | 125 | — | — | ||||||||||
Conversion of convertible preferred stock | — | 14,410 | 14,410 | ||||||||||
Conversion of preferred stock warrants | — | 436 | 436 | ||||||||||
Total shares excluded from net loss per share attributable to common stockholders | 10,833 | 23,206 | 20,752 | ||||||||||
In addition to the above anti-dilutive shares, shares contingently issuable if certain milestones are achieved on December 31, 2015 related to a business combination that occurred during the year December 31, 2014 have been excluded from the calculation of diluted net loss per share attributable to common stockholders for the year ended December 31, 2014. See Note 6. | |||||||||||||
For the years ended December 31, 2014, 2013, and 2012 the Company increased its net loss by $1.1 million, $4.2 million, and $4.3 million, respectively, for cumulative preferred stock dividends in determining its net loss attributable to common stockholders. Upon the completion of the Company’s IPO in April 2014, all of the preferred stock converted to common stock and accordingly, after the IPO the Company was no longer required to increase its net loss for preferred stock dividends in determining its net loss attributable to common stockholders. |
Property_and_Equipment
Property and Equipment | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Property and Equipment | Property and Equipment | ||||||||
Major classes of property and equipment were as follows: | |||||||||
31-Dec-14 | 31-Dec-13 | ||||||||
(in thousands) | |||||||||
Purchased software | $ | 1,651 | $ | 1,534 | |||||
Computer equipment and network hardware | 24,673 | 16,189 | |||||||
Furniture, fixtures and office equipment | 1,491 | 1,047 | |||||||
Leasehold improvements | 2,994 | 830 | |||||||
30,809 | 19,600 | ||||||||
Accumulated depreciation | (15,613 | ) | (10,888 | ) | |||||
$ | 15,196 | $ | 8,712 | ||||||
Depreciation expense on property and equipment totaled $6.5 million, $4.9 million and $3.9 million for the years ended December 31, 2014, 2013, and 2012, respectively. | |||||||||
At December 31, 2014 and 2013, property and equipment includes property and equipment under capital leases with a cost basis of $0.6 million and $1.3 million, respectively. Accumulated depreciation on property and equipment under capital leases at December 31, 2014 and 2013 was $0.5 million and $0.9 million, respectively. | |||||||||
Depreciation expense on property and equipment under capital leases was $0.3 million, $0.5 million and $0.4 million for the years ended December 31, 2014, 2013, and 2012, respectively. | |||||||||
There were no impairment charges to property and equipment for the years ended December 31, 2014, 2013, and 2012. |
Internal_Use_Software_Developm
Internal Use Software Development Costs | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Research and Development [Abstract] | |||||||||
Internal Use Software Development Costs | Internal Use Software Development Costs | ||||||||
Internal use software development costs were as follows: | |||||||||
31-Dec-14 | 31-Dec-13 | ||||||||
(in thousands) | |||||||||
Internal use software development costs, gross | $ | 20,926 | $ | 12,656 | |||||
Accumulated amortization | (9,425 | ) | (5,452 | ) | |||||
Internal use software development costs, net | $ | 11,501 | $ | 7,204 | |||||
During the years ended December 31, 2014, 2013, and 2012, the Company capitalized $9.4 million, $4.1 million and $3.9 million of internal use software development costs. Amortization expense was $5.1 million, $2.7 million and $2.0 million for the years ended December 31, 2014, 2013, and 2012. In the years ended December 31, 2014 and 2013, amortization expense included the write-off of software development costs, net, of $0.7 million and $0.2 million, respectively. Based on the Company’s internal use software development costs at December 31, 2014, estimated amortization expense of $5.2 million, $4.0 million, $2.2 million and $0.1 million is expected to be recognized in 2015, 2016, 2017, and 2018, respectively. | |||||||||
There were no impairment charges to internal use software development costs for the years ended December 31, 2014, 2013, and 2012. |
Business_Combinations
Business Combinations | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Business Combinations [Abstract] | |||||||||
Business Combinations | Business Combinations | ||||||||
2014 Acquisitions | |||||||||
iSocket, Inc. | |||||||||
On November 17, 2014, the Company completed the acquisition of all the issued and outstanding shares of iSocket, Inc., or iSocket, a San Francisco, California based technology company focused on automating the direct buying and selling of premium, guaranteed ad inventory. iSocket provided automated applications for advertisers to plan, negotiate and purchase guaranteed inventory and for publishers to manage and streamline the direct sales process. | |||||||||
Purchase consideration for the acquisition was 840,885 shares of the Company’s common stock, with a fair value of approximately $11.2 million, based on the Company’s common stock price as reported on the NYSE on the acquisition date. 125,116 of the 840,885 shares were placed in escrow to secure post-closing indemnification obligations of the sellers and any shares remaining in escrow after satisfaction of any resolved indemnity claims, less any shares withheld to satisfy pending claims, will be released from escrow on February 17, 2016. | |||||||||
The purchase consideration also included contingent consideration of up to $12.0 million worth of common stock if certain performance milestones are achieved on December 31, 2015. The number of shares to be issued is based on the average closing price of the Company's common stock for the ten consecutive trading days ending on (and including) the last trading day of 2015. The Company determined it was probable that the performance milestones would be achieved and accordingly, the full amount of the contingent consideration of $12.0 million was discounted to fair value at a discount rate of 4.8%, based on an estimate of the Company's incremental borrowing rate. In accordance with ASC 480, Distinguishing Liabilities from Equity, the contingent consideration has been recorded as a non-current liability in the consolidated balance sheet as the contingent consideration is payable in a variable number of shares. | |||||||||
As part of the acquisition, existing stock options to purchase common stock of iSocket, were exchanged for options to purchase the Company's common stock. The fair value of stock options exchanged, measured on the acquisition date, of $3.1 million was attributed to pre-acquisition and post-acquisition services. The fair value attributed to pre-acquisition services of $2.1 million was recorded as purchase consideration and the fair value attributed to post-acquisition services of $1.0 million is expected to be recognized as compensation expense on the Company's consolidated statements of operations over their remaining vesting periods. | |||||||||
The total purchase consideration and the allocation of the total purchase consideration to assets acquired and liabilities assumed is summarized below (in thousands): | |||||||||
Fair value of common stock | $ | 11,200 | |||||||
Fair value of contingent consideration | 11,382 | ||||||||
Fair value attributed to pre-acquisition stock options exchanged | 2,142 | ||||||||
Total purchase consideration, including contingent consideration | 24,724 | ||||||||
Other assets, including cash acquired of $0.6 million | 1,521 | ||||||||
Intangible assets | 12,193 | ||||||||
Goodwill | 11,778 | ||||||||
Other liabilities | (768 | ) | |||||||
Net assets acquired | $ | 24,724 | |||||||
The following table summarizes the components of the acquired intangible assets and estimated useful lives (in thousands, except for estimated useful life): | |||||||||
Estimated Useful Life | |||||||||
Technology | $ | 9,310 | 5.0 years | ||||||
Customer relationships | 2,880 | 2.5 years | |||||||
Trademarks | 3 | 0.5 years | |||||||
Total intangible assets acquired | $ | 12,193 | |||||||
Goodwill is primarily attributable to expected synergies from assembled workforce, an increase in development capabilities, increased offerings to customers, and enhanced opportunities for growth and innovation. Goodwill generated in the iSocket acquisition is not deductible for tax purposes. | |||||||||
The Company recognized approximately $0.4 million of acquisition related costs during the year ended December 31, 2014, that are recorded within general and administrative expenses in the Company’s consolidated statements of operations. The operations of iSocket were fully integrated into the operations of the Company upon acquisition. The results of operations of iSocket were insignificant to the Company’s consolidated statements of operations from the acquisition date of November 17, 2014 through the period ended December 31, 2014. | |||||||||
As part of the acquisition, the Company recorded deferred tax assets of $6.4 million, primarily related to net operating loss carry forwards, which were offset by deferred tax liabilities of $4.8 million, related to acquired intangible assets, and a valuation allowance of $1.6 million. See Note 13 for additional information related to net operating loss carryforwards associated with this acquisition. | |||||||||
Shiny Inc. | |||||||||
On October 20, 2014, the Company completed the acquisition of all the issued and outstanding shares of Shiny Inc., or Shiny, a Toronto, Canada based technology company focused on providing an end-to-end automated direct advertising platform for digital buyers of all sizes. Shiny also offered an open application programming interface to support real-time buying of guaranteed advertising as well as a self-serve automated guaranteed platform for digital buyers and sellers. | |||||||||
The purchase consideration of Shiny was paid in cash by the Company at the acquisition date; $0.7 million of which was held in escrow subject to the continued employment of certain employees post-acquisition. The $0.7 million has been excluded from the purchase consideration; rather, the Company will record it as compensation expense post acquisition. | |||||||||
The Company’s allocation of the total purchase considerations is summarized below (in thousands): | |||||||||
Cash purchase consideration (excluding $0.7 million tied to continued employment) | $ | 4,651 | |||||||
Other assets, including cash acquired of $0.1 million | 737 | ||||||||
Intangible assets | 2,300 | ||||||||
Goodwill | 3,021 | ||||||||
Other liabilities | (1,407 | ) | |||||||
Net assets acquired | $ | 4,651 | |||||||
The following table summarizes the components of the acquired intangible assets and estimated useful lives (in thousands, except for estimated useful life): | |||||||||
Estimated Useful Life | |||||||||
Technology | $ | 1,360 | 3.0 years | ||||||
Customer relationships | 450 | 2.5 years | |||||||
Non-compete agreements | 490 | 3.0 years | |||||||
Total intangible assets acquired | $ | 2,300 | |||||||
Goodwill is primarily attributable to expected synergies from assembled workforce, an increase in development capabilities, increased offerings to customers, and enhanced opportunities for growth and innovation. A portion, $0.2 million, of the goodwill generated in the Shiny acquisition is not tax deductible while the remaining $2.8 million is deductible. | |||||||||
Unaudited Pro Forma Information - 2014 Acquisitions | |||||||||
The following table provides unaudited pro forma information for the years ended December 31, 2014 and 2013, as if iSocket and Shiny had been acquired as of January 1, 2013. The unaudited pro forma results reflect certain adjustments such as the fair values of the assets acquired and liabilities assumed and additional depreciation and amortization resulting from the fair value adjustments. The unaudited pro forma results do not include any anticipated synergies or other effects of the integration of iSocket or Shiny or recognition relating to the contingent consideration accretion or compensation expense related to the earn-out. Accordingly, such unaudited pro forma amounts are not necessarily indicative of the results that actually would have occurred had the acquisition been completed on the dates indicated, nor is it indicative of the future operating results of the combined company. | |||||||||
Year Ended | Year Ended | ||||||||
December 31, 2014 | December 31, 2013 | ||||||||
(in thousands) | |||||||||
Pro forma revenues | $ | 125,834 | $ | 84,249 | |||||
Pro forma net loss | $ | (27,659 | ) | $ | (23,419 | ) | |||
2012 Acquisition | |||||||||
MobSmith, Inc. | |||||||||
On May 22, 2012, the Company completed the acquisition of all the issued and outstanding shares of MobSmith, Inc., or MobSmith, a San Francisco, California based technology company focused on ad-delivery to mobile devices. MobSmith provided a mobile platform for sellers to directly sell their mobile web and in-app advertising inventory on leading mobile devices. Purchase consideration for the acquisition was approximately $1.8 million in cash and 244,738 shares of the Company’s Class A common stock, with a fair value of approximately $1.2 million, valued on the acquisition date. The fair value of the Class A common stock was determined by the board of directors based on a valuation of common stock using the market comparable approach. The market comparable approach estimates value based on multiples of metrics of comparable public companies in a similar line of business. Goodwill is attributable to expected synergies of combining MobSmith’s mobile solution with the platform providing buyers and sellers access to a single platform solution and marketplace for buying and selling of both display and mobile advertising inventory, and the acquired workforce. | |||||||||
The Company’s allocation of the total purchase considerations is summarized below (in thousands): | |||||||||
Cash paid | $ | 1,750 | |||||||
Common shares | 1,237 | ||||||||
Total purchase consideration | $ | 2,987 | |||||||
Other assets, including cash acquired of $9 | $ | 52 | |||||||
Intangible assets | 1,550 | ||||||||
Goodwill | 1,391 | ||||||||
Other liabilities | (6 | ) | |||||||
Net assets acquired | $ | 2,987 | |||||||
The acquired intangible assets consisted of developed technology with a fair value of $0.8 million, non-compete agreements with a fair value of $0.6 million, customer relationships with a fair value of $0.1 million, and a trademark with a fair value of $10,000. The developed technology, non-compete agreements, customer relationships, and trademark are being amortized over a weighted-average useful life of 2.5 years. | |||||||||
The Company recognized approximately $0.1 million of acquisition related costs during the year ended December 31, 2012, that are reflected within general and administrative expenses in the Company’s consolidated statements of operations. | |||||||||
In addition, upon acquisition, the Company issued 135,000 restricted shares of Class A common stock, with a fair value of approximately $0.6 million and agreed to pay $0.8 million in cash upon the one year anniversary of the acquisition, subject to the continued employment of certain employees of MobSmith with the Company. The restricted shares and cash payout were recognized as a post-acquisition compensation expense over the one year period. At December 31, 2012, the 135,000 shares remained restricted and $0.3 million of the cash compensation was unearned. In May 2013, upon the one-year anniversary of the acquisition, the share restrictions were satisfied and the cash was paid. | |||||||||
The operations of MobSmith were fully integrated into the operations of the Company upon acquisition. The results of operations of MobSmith were insignificant to the Company’s consolidated statements of operations from the acquisition date of May 22, 2012 through the period ended December 31, 2012. | |||||||||
Unaudited Pro Forma Information - 2012 Acquisition | |||||||||
The following table provides unaudited pro forma information for the year ended December 31, 2012, as if MobSmith had been acquired as of January 1, 2011. The unaudited pro forma results reflect certain adjustments such as the fair values of the assets acquired and liabilities assumed and additional depreciation and amortization resulting from the fair value adjustments. The unaudited pro forma results do not include any anticipated synergies or other effects of the integration of MobSmith or recognition of compensation expense relating to the earn-out. Accordingly, such unaudited pro forma amounts are not necessarily indicative of the results that actually would have occurred had the acquisition been completed on the dates indicated, nor is it indicative of the future operating results of the combined company. | |||||||||
Year Ended | |||||||||
December 31, 2012 | |||||||||
(in thousands) | |||||||||
Pro forma revenues | $ | 57,165 | |||||||
Pro forma net loss | $ | (2,919 | ) |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||
Goodwill and Intangible Assets | Goodwill and Intangible Assets | |||||||||||
Details of the Company’s goodwill were as follows: | ||||||||||||
Year Ended | ||||||||||||
December 31, 2014 | December 31, 2013 | December 31, 2012 | ||||||||||
(in thousands) | ||||||||||||
Beginning balance | $ | 1,491 | $ | 1,491 | $ | 100 | ||||||
Additions from the acquisition of iSocket | 11,778 | — | — | |||||||||
Additions from the acquisition of Shiny | 3,021 | — | — | |||||||||
Additions from the acquisition of MobSmith | — | — | 1,391 | |||||||||
Ending balance | $ | 16,290 | $ | 1,491 | $ | 1,491 | ||||||
Details of the Company’s intangible assets were as follows: | ||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||
(in thousands) | ||||||||||||
Amortizable intangible assets: | ||||||||||||
Developed technology | $ | 13,176 | $ | 2,560 | ||||||||
Non-compete agreements | 490 | 610 | ||||||||||
Customer relationships and other intangible assets | 3,333 | 130 | ||||||||||
16,999 | 3,300 | |||||||||||
Accumulated amortization—developed technology | (2,704 | ) | (2,177 | ) | ||||||||
Accumulated amortization—non-compete agreements | (32 | ) | (483 | ) | ||||||||
Accumulated amortization—customer relationships and other intangible assets | (173 | ) | (130 | ) | ||||||||
Total accumulated amortization—intangible assets | (2,909 | ) | (2,790 | ) | ||||||||
Total identifiable intangible assets, net | $ | 14,090 | $ | 510 | ||||||||
Amortization expense of intangible assets for the years ended December 31, 2014, 2013, and 2012, were $0.9 million, $0.9 million, and $1.0 million, respectively. | ||||||||||||
As of December 31, 2014, the estimated remaining amortization expense associated with the Company’s intangible assets for each of the next five fiscal years was as follows: | ||||||||||||
Fiscal Year | Amount | |||||||||||
(in thousands) | ||||||||||||
2015 | $ | 3,925 | ||||||||||
2016 | 3,811 | |||||||||||
2017 | 2,852 | |||||||||||
2018 | 1,862 | |||||||||||
2019 | 1,640 | |||||||||||
Total | $ | 14,090 | ||||||||||
No impairment of goodwill or intangible assets was identified for the years ended December 31, 2014, 2013, and 2012. |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Fair Value Measurements | Fair Value Measurements | ||||||||||||||||
Observable inputs are based on market data obtained from independent sources. As of December 31, 2013, the Company had two outstanding warrants to purchase shares of the Company's preferred stock; one for 845,867 shares of convertible preferred stock and the other for 25,174 shares of convertible stock. At December 31, 2013, the Company’s warrants to purchase preferred stock were measured using unobservable inputs that required a high level of judgment to determine fair value, and thus were classified as Level 3 inputs. The Company's warrants to purchase preferred stock were measured through the closing of the IPO on April 7, 2014 using the closing price of the Company’s stock due to the proximity of their conversion to common stock. See Note 11 regarding the exercise of a preferred stock warrant and the conversion of each outstanding share of preferred stock into one half of a share of common stock in connection with the Company's IPO. | |||||||||||||||||
The table below sets forth a summary of financial instruments that are measured at fair value on a recurring basis at December 31, 2014: | |||||||||||||||||
31-Dec-14 | Fair Value Measurements at Reporting Date Using | ||||||||||||||||
Quoted Prices in | Significant Other | Significant | |||||||||||||||
Active Markets for | Observable | Unobservable | |||||||||||||||
Identical Assets | Inputs (Level 2) | Inputs (Level 3) | |||||||||||||||
(Level 1) | |||||||||||||||||
(in thousands) | |||||||||||||||||
Cash equivalents | $ | 55,963 | $ | 55,963 | $ | — | $ | — | |||||||||
Contingent consideration liability | $ | 11,448 | $ | — | $ | — | $ | 11,448 | |||||||||
At December 31, 2014, cash equivalents of $56.0 million consisted of money market funds with original maturities of three months or less. | |||||||||||||||||
The Company classifies the contingent consideration liability in connection with the acquisition of iSocket, Inc. within Level 3 as factors used to develop the estimated fair value are unobservable inputs that are not supported by market activity. The Company estimates the fair value of the contingent consideration liability by discounting the present value of probability-weighted future payout related to the contingent earn-out criteria using an estimate of the Company's incremental borrowing rate. At the acquisition date and at December 31, 2014, the Company considered it highly likely that the earn-out criteria would be met. For the period from acquisition of iSocket to December 31, 2014, the Company recognized $0.1 million in the fair value of the contingent consideration liability relating to the change in the Company’s consolidated statements of operations. | |||||||||||||||||
The table below sets forth a summary of financial instruments that are measured at fair value on a recurring basis at December 31, 2013: | |||||||||||||||||
31-Dec-13 | Fair Value Measurements at Reporting Date Using | ||||||||||||||||
Quoted Prices in | Significant Other | Significant | |||||||||||||||
Active Markets for | Observable | Unobservable | |||||||||||||||
Identical Assets | Inputs (Level 2) | Inputs (Level 3) | |||||||||||||||
(Level 1) | |||||||||||||||||
(in thousands) | |||||||||||||||||
Convertible preferred stock warrant liability | $ | 5,451 | $ | — | $ | — | $ | 5,451 | |||||||||
The Company’s preferred stock warrants are recorded at fair value and were determined to be Level 3 fair value items. The changes in the fair value of preferred stock warrants are summarized below: | |||||||||||||||||
Year Ended | |||||||||||||||||
31-Dec-14 | 31-Dec-13 | 31-Dec-12 | |||||||||||||||
(in thousands) | |||||||||||||||||
Beginning balance | $ | 5,451 | $ | 1,330 | $ | 815 | |||||||||||
Change in value of preferred stock warrants recorded in other expense, net | 732 | 4,121 | 515 | ||||||||||||||
Net exercise of preferred stock warrant and conversion of preferred stock warrant to common stock warrant | (6,183 | ) | — | — | |||||||||||||
Ending balance | $ | — | $ | 5,451 | $ | 1,330 | |||||||||||
The Company determined the fair value of the convertible preferred stock warrants utilizing the Black-Scholes model with the following weighted-average assumptions: | |||||||||||||||||
Series B December 31, | Series B December 31, | Series C | Series C | ||||||||||||||
2013 | 2012 | December 31, | December 31, | ||||||||||||||
2013 | 2012 | ||||||||||||||||
Risk-free interest rate | 0.18 | % | 0.97 | % | 0.13 | % | 0.16 | % | |||||||||
Expected term (in years) | 0.69 | 6.17 | 0.5 | 1 | |||||||||||||
Estimated dividend yield | 2 | % | 8 | % | 2 | % | 4.8 | % | |||||||||
Weighted-average estimated volatility | 64 | % | 60 | % | 63 | % | 46 | % | |||||||||
Fair value (in thousands) | $ | 173 | $ | 34 | $ | 5,278 | $ | 1,296 | |||||||||
In connection with the Company’s IPO in April 2014, the outstanding warrant for 845,867 shares of the Company’s convertible preferred stock was net exercised, resulting in the issuance of 286,055 shares of common stock based on the IPO price of $15.00 per share and taking into account the 1-for-2 reverse stock split. In connection with the IPO, the remaining warrant for 25,174 shares of convertible preferred stock was automatically converted into a warrant exercisable for 12,587 shares of common stock. Following the closing of the Company’s IPO on April 7, 2014, the Company was no longer required to re-measure the converted common stock warrants to fair value and record any changes in the fair value of these liabilities in the Company's statement of operations. During the year ended December 31, 2014 and 2013, the Company recognized expense of $0.7 million and $4.1 million, respectively, from the re-measurement of the warrants to fair value. The warrant exercisable for 12,587 shares of common stock was net exercised in June 2014. | |||||||||||||||||
For the years ended December 31, 2014, 2013, and 2012, no impairments were recorded on those assets required to be measured at fair value on a non-recurring basis. |
Accounts_Payable_and_Accrued_E
Accounts Payable and Accrued Expenses | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Payables and Accruals [Abstract] | ||||||||
Accounts Payable and Accrued Expenses | Accounts Payable and Accrued Expenses | |||||||
Accounts payable and accrued expenses included the following: | ||||||||
31-Dec-14 | 31-Dec-13 | |||||||
(in thousands) | ||||||||
Accounts payable—seller | $ | 138,366 | $ | 111,078 | ||||
Accounts payable—trade | 5,350 | 4,136 | ||||||
Accrued employee-related payables | 7,305 | 4,984 | ||||||
$ | 151,021 | $ | 120,198 | |||||
At December 31, 2014 and 2013, accounts payable—seller are recorded net of $0.7 million and $0.9 million, respectively, due from sellers for services provided by the Company to sellers, where the Company has the right of offset. |
Debt_and_Capital_Lease_Arrange
Debt and Capital Lease Arrangements | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Debt and Capital Lease Arrangements | Debt and Capital Lease Arrangements | |||||||
Debt and capital lease arrangements consisted of the following: | ||||||||
31-Dec-14 | 31-Dec-13 | |||||||
(in thousands) | ||||||||
Secured debt: | ||||||||
Line of credit | $ | — | $ | 3,788 | ||||
Capital lease obligations | 105 | 393 | ||||||
$ | 105 | $ | 4,181 | |||||
The Company has a loan and security agreement with Silicon Valley Bank, or the Loan Agreement, that provides a senior secured revolving credit facility up to $40.0 million with a maturity date of September 27, 2018. An unused revolver fee in the amount of 0.15% per annum of the average unused portion of the revolver line will be charged and be payable monthly in arrears. Amounts outstanding under the amended credit facility bear interest, at a rate per annum equal to LIBOR plus 2.0% if the Company maintains a net cash balance exceeding $1. At the option of the bank, advances may bear interest at a rate of prime plus 0% if the Company maintains a net cash balance exceeding $1 or 1.50% if the Company does not maintain a net cash balance of $1. | ||||||||
The Loan Agreement is collateralized by security interests in substantially all of the Company’s assets. The Loan Agreement restricts the Company’s ability to pay dividends, sell assets, make changes to the nature of the business, engage in mergers or acquisition, incur, assume or permit to exist, additional indebtedness and guarantees, create or permit to exist, liens, pay dividends, make distributions or redeem or repurchase capital stock, or make other investments, engage in transactions with affiliates, and make payments in respect to subordinated debt, and enter into certain transactions without the consent of the financial institution. The Company is required to maintain a lockbox arrangement where customer payments received in the lockbox will reduce the amounts outstanding on the credit facility only if the Company does not maintain a net cash balance of $1 or in the event of a default, as defined in the arrangement. | ||||||||
The Loan Agreement requires the Company to comply with financial covenants including minimum levels of adjusted tangible net worth and a fixed charge coverage ratio, as well as certain affirmative covenants. In the event the amount available to be drawn is less than 20% of the maximum line amount of the credit facility, or in the event that a default exists, the Company is required to satisfy a minimum fixed charge coverage ratio of no less than 1.10 to 1.00 calculated on a twelve month trailing basis as of the last day of each month on a consolidated basis. The Company does not currently satisfy this minimum fixed charge coverage ratio test defined as a ratio of Adjusted EBITDA to the sum of interest accrual and principal payments required to be paid during the relevant measurement period. However, the Company is not currently required to satisfy this test as it meets the specified excess availability threshold. The Company was in compliance with the covenants as of December 31, 2014 and 2013. | ||||||||
The Loan Agreement includes customary events of defaults, including a change of control default and an event of default in the event a material adverse change occurs. In case of such an event of default, Silicon Valley Bank would be entitled to, among other things, accelerate payment of amounts due under the credit facility and exercise all rights of a secured creditor. | ||||||||
On April 14, 2014, the Company repaid all of the outstanding debt under the line of credit with Silicon Valley Bank in the amount of $3.8 million. At December 31, 2014, $40.0 million was available for borrowing under the credit facility and had no amounts were outstanding under this loan. |
Capitalization
Capitalization | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Equity [Abstract] | |||||||||||||||
Capitalization | Capitalization | ||||||||||||||
At December 31, 2013, the authorized capital stock of the Company consisted of 73,380,126 shares of common stock, of which 32,500,000 shares were designated Class A common stock and 4,190,063 shares were designated Class B common stock, and 29,691,524 shares of preferred stock. On March 14, 2014 the authorized capital stock of the Company was increased to 80,608,856 shares of common stock. In connection with the IPO, the outstanding shares of Class A common stock and Class B common stock were converted into shares of a single class of common stock on a one-for-one basis. Class A common stock and Class B common stock are collectively referred to herein as common stock. | |||||||||||||||
Initial Public Offering | |||||||||||||||
On April 7, 2014, the Company closed its IPO whereby 6,432,445 shares of common stock were issued and sold by the Company (including 1,015,649 shares sold pursuant to the underwriters’ exercise of their over-allotment option), and 1,354,199 shares of common stock were sold by selling stockholders at an IPO price of $15.00 per share. The Company received proceeds from the offering of approximately $86.2 million after deducting underwriting discounts and commissions and offering expenses. The Company did not receive any proceeds from the sales of shares by the selling stockholders. | |||||||||||||||
In connection with the Company’s IPO: (i) all shares of the Company’s outstanding convertible Series A, B, C and D preferred stock automatically converted into an aggregate of 14,410,238 shares of Class A common stock on a one for one-half basis; (ii) each outstanding share of Class B common stock automatically converted into one share of Class A common stock; (iii) all shares of Class A common stock (including all shares of Class A common stock issued upon conversion of convertible preferred stock and Class B common stock) converted into a single class of common stock; (iv) a warrant for 845,867 shares of convertible preferred stock was net exercised, resulting in the issuance of 286,055 shares of common stock based on the IPO price of $15.00 per share and taking into account the 1-for-2 reverse stock split; (v) a warrant exercisable for 25,174 shares of convertible preferred stock automatically converted into a warrant exercisable for 12,587 shares of common stock; and (vi) the Company’s certificate of incorporation was amended in various respects, including to provide for authorized capital stock of 500,000,000 shares of common stock and 10,000,000 shares of preferred stock. The terms of the preferred stock have not been set. The board of directors is authorized to establish, from time to time, the number of shares to be included in each series of preferred stock, and to fix the designation, powers, privileges, preferences, and relative participating, optional or other rights, if any, of the shares of each series of preferred stock, and any of its qualifications, limitations or restrictions. | |||||||||||||||
In addition, upon completion of the IPO, costs associated with the IPO of $3.5 million were reclassified from other assets, non-current to additional paid-in capital. | |||||||||||||||
Convertible Preferred Stock | |||||||||||||||
At December 31, 2013, the Company’s outstanding convertible preferred stock consisted of the following: | |||||||||||||||
31-Dec-13 | |||||||||||||||
Shares | Shares | Carrying | Liquidation | ||||||||||||
Authorized | Outstanding | Values | Preference | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Series A | 6,154,000 | 6,154,000 | $ | 4,000 | $ | 6,118 | |||||||||
Series B | 13,588,160 | 13,562,986 | 21,087 | 30,754 | |||||||||||
Series C | 4,765,173 | 3,919,306 | 9,484 | 12,779 | |||||||||||
Series D | 5,184,191 | 5,184,189 | 18,000 | 23,121 | |||||||||||
Total | 29,691,524 | 28,820,481 | $ | 52,571 | $ | 72,772 | |||||||||
Prior to the conversion of the preferred stock into common stock in April 2014, the rights and preferences of the convertible preferred stock were as follows: | |||||||||||||||
Voting Rights: On any matters presented to the Company’s stockholders for their action or consideration, each holder of convertible preferred stock was entitled to one vote for each share of Class A common stock into which such holder’s shares of convertible preferred stock were then convertible. Except as provided by law or the Certificate of Incorporation, the holders of the convertible preferred stock and Class A common stock vote together as a single class. | |||||||||||||||
Dividends: The holders of the convertible preferred stock were entitled, when, as, and if declared by the board of directors, and prior and in preference to common stock, to cumulative dividends at the following per annum rates (pro-rated for partial years elapsed): $0.052 per share for Series A, $0.1244480 per share for Series B, $0.1941832 per share for Series C, and $0.2844824 per share for Series D. Cumulative preferred stock dividends at December 31, 2013 were $19.7 million. Unless declared, dividends were not payable except in the event of a liquidation, dissolution or winding up of the Company. No dividends had been declared or paid to date. | |||||||||||||||
Liquidation: In the event of any voluntary or involuntary liquidation, dissolution or winding-up of the Company or a sale of the Company, the holders of the convertible preferred stock were entitled to receive out of the assets available for distribution to the Company’s stockholders, on a pari passu basis prior to distribution of any assets of the Company to the holders of common stock, an amount equal to the greater of (a) the original issuance price plus accrued but unpaid dividends, or (b) such amount as would have been payable had the convertible preferred stock converted into common stock immediately prior to the liquidation, dissolution or winding up. If amounts available to be distributed were insufficient to pay the liquidation preferences of the preferred stock in full, then the entire assets and funds of the Company legally available for distribution would be distributed to the holders of convertible preferred stock ratably in proportion to the preferential amount each holder would have otherwise been entitled to receive. After payment of the liquidation preferences to the convertible preferred stock, all remaining assets were to be distributed to the common stock. | |||||||||||||||
The liquidation preference provisions of the convertible preferred stock were considered contingent redemption provisions because there were certain elements that were not solely within the control of the Company, such as a change in control of the Company. Accordingly, the Company presented the convertible preferred stock within the mezzanine portion of the accompanying consolidated balance sheets. | |||||||||||||||
Conversion: Each outstanding share of convertible preferred stock was convertible, at the holder’s option, into shares of Class A common stock at a conversion rate determined by dividing the original issue price for such share by the then Conversion Price for such share. The original issue price and conversion price of the each series of preferred stock were as follows: | |||||||||||||||
Original Issue | Conversion Price | ||||||||||||||
Price per share | per share | ||||||||||||||
Series A | $ | 0.65 | $ | 1.3 | |||||||||||
Series B | $ | 1.55556 | $ | 3.11112 | |||||||||||
Series C | $ | 2.42729 | $ | 4.85458 | |||||||||||
Series D | $ | 3.55603 | $ | 7.11206 | |||||||||||
The conversion price was subject to adjustment in the event of certain anti-dilutive issuances of shares of common stock. The conversion price per share in the table above reflects the adjustment for the 1-for-2 reverse stock split of the Company’s common stock effected on March 18, 2014. | |||||||||||||||
Each share of convertible preferred stock would automatically convert into shares of common stock at its then effective conversion rate immediately upon the earlier of (i) the closing of a firm commitment underwritten initial public offering pursuant to an effective registration statement under the Securities Act of 1933, as amended, with proceeds to the Company of not less than $20 million (net of underwriting discounts and commissions) based on a pre-offering enterprise value of at least $250 million, (ii) or upon the consent of the holders on the date specified by a vote of at least 75% of all then-outstanding shares of convertible preferred stock voting together as a single class on an as-converted to Class A common stock basis, provided that the Series C preferred stock shall not be converted as a result of such a vote without the consent of the holders of a majority of the shares of Series C preferred stock then outstanding, and the Series D preferred stock shall not be converted as a result of such a vote without the consent of the holders of a majority of the shares of Series D preferred stock then outstanding. | |||||||||||||||
Redemption: The convertible preferred stock was not redeemable at the option of the holder. | |||||||||||||||
Convertible Preferred Stock Warrants | |||||||||||||||
On March 1, 2009, the Company issued a fully vested, non-forfeitable warrant to purchase 25,174 shares of the Company’s Series B preferred stock at an exercise price of $1.55556 per share. The warrant was issued to the Company’s bank, Silicon Valley Bank, in connection with securing an equipment term loan. The warrant was fully vested upon issuance and expires on March 1, 2019. The holder of the warrant has the right to include shares issued upon exercise of the warrant in certain registered offerings by the Company of its common stock. The fair value of the warrants at issuance was recorded as a deferred financing cost and was amortized over the term of the loan. In connection with the Company's IPO, this warrant was automatically converted into a warrant exercisable for 12,587 shares of common stock, and was net exercised in June 2014. | |||||||||||||||
On January 12, 2010, the Company issued a warrant to an investment bank to purchase 845,867 shares of the Company’s Series C preferred stock at an exercise price of $2.42729 per share. The warrant was issued for banking and financial advisory services provided to the Company. The warrant was fully vested upon issuance and expired on the earliest of January 12, 2015, a firm commitment underwritten initial public offering if the lead underwriter requests termination, or, under certain circumstances, a liquidation, dissolution, winding up or change in control as defined in the Certificate of Incorporation. The holder of the warrant had the right to exercise the warrant for cash or on a net issuance basis. In December 2013, the lead underwriter of the Company's initial public offering requested the termination of the warrant in connection with the offering, and in March 2014, the warrant holder agreed to net exercise the warrant upon the consummation of the offering. In April 2014, the warrant was net exercised, resulting in the issuance of 286,055 shares of common stock based on the IPO price of $15.00 per share and taking into account the 1-for-2 reverse stock split. | |||||||||||||||
Common Shares Reserved For Issuance | |||||||||||||||
The Company is required to reserve and keep available out of its authorized but unissued shares of common stock such number of shares sufficient to effect the contingent consideration and the conversion of all shares granted and available for grant under the Company’s stock award plans. The number of shares of the Company's stock reserved for these purposes at December 31, 2014 consisted of 15,577,350 shares under the Company's stock award plans and for the contingent consideration up to $12.0 million worth of common stock if certain performance milestones are achieved on December 31, 2015. See Note 6. The number of shares to be issued is based on the average closing price of the Company's common stock for the ten consecutive trading days ending on (and including) the last trading day of 2015. |
StockBased_Compensation
Stock-Based Compensation | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||
Stock-Based Compensation | Stock-Based Compensation | ||||||||||||
In connection with its IPO, the Company implemented its 2014 Equity Incentive Plan, or the 2014 Plan. The Company assumed the iSocket 2009 Equity Incentive Plan, or the 2009 Plan, in connection with the acquisition. In November 2014, the Company approved the 2014 Inducement Grant Equity Incentive Plan , or the 2014 Inducement Plan. All compensatory equity awards outstanding at December 31, 2014 were issued pursuant to the Company’s 2014 Equity Incentive Plan, the 2009 Equity Incentive Plan, the 2014 Inducement Grant Equity Incentive Plan, or the 2007 Stock Incentive Plan, or the 2007 Plan and together with the 2014 Plan, the 2009 Plan, and the 2014 Inducement Plan, or the Plans, all of which provide for the grant of non-statutory or incentive stock options, restricted stock, and restricted stock units to the Company’s employees, officers, directors and consultants. The Company’s board of directors administers the Plans. Options outstanding vest at varying rates, but generally over four years with 25% vesting upon completion of one year of service and the remainder vesting monthly thereafter. Restricted stock and restricted stock units vest at varying rates. Options, restricted stock, and restricted stock units granted under the Plans accelerate under certain circumstances on a change in control, as defined. An aggregate of 15,577,350 shares were reserved under the Plans, of which 2,023,690 shares remained available for issuance at December 31, 2014. The 2014 Plan has an evergreen provision pursuant to which the share reserve will automatically increase on January 1st of each year in an amount equal to five percent (5%) of the total number of shares of capital stock outstanding on December 31st of the preceding calendar year, although the Company’s board of directors may provide for a lesser increase, or no increase, in any year. The 2014 Inducement Plan has a provision pursuant to which the share reserve may be increased at the discretion of the Company's board of directors. No new equity awards will be granted under the 2007 Plan. | |||||||||||||
Stock Options | |||||||||||||
A summary of stock option activity for the year ended December 31, 2014 is as follows: | |||||||||||||
Shares Under Option | Weighted- Average Exercise Price | Weighted- Average Contractual Life | Aggregate Intrinsic Value | ||||||||||
(in thousands) | (in thousands) | ||||||||||||
Outstanding at December 31, 2013 | 8,360 | $ | 6.13 | ||||||||||
Granted | 1,979 | $ | 12.47 | ||||||||||
Exercised | (1,433 | ) | $ | 3.26 | |||||||||
Canceled | (793 | ) | $ | 7.49 | |||||||||
Outstanding at December 31, 2014 | 8,113 | $ | 8.05 | 8.06 years | $ | 65,628 | |||||||
Vested and expected to vest December 31, 2014 | 7,339 | $ | 7.96 | 8.03 years | $ | 60,057 | |||||||
Exercisable at December 31, 2014 | 4,042 | $ | 5.9 | 7.42 years | $ | 41,397 | |||||||
The total intrinsic value of options exercised during the years ended December 31, 2014, 2013, and 2012 were $18.5 million, $4.6 million, and $0.6 million, respectively. | |||||||||||||
At December 31, 2014, the Company had unrecognized employee stock-based compensation relating to stock options of approximately $17.8 million which is expected to be recognized over a weighted-average period of 2.1 years. | |||||||||||||
The weighted average grant date per share fair value of stock options granted for the years ended December 31, 2014, 2013, and 2012 were $7.41, $5.12, and $2.58, respectively. | |||||||||||||
The Company estimates the fair value of stock options that contain service and/or performance conditions using the Black-Scholes option pricing model. The weighted-average input assumptions used by the Company were as follows: | |||||||||||||
Year Ended | |||||||||||||
December 31, 2014 | December 31, 2013 | December 31, 2012 | |||||||||||
Expected term (in years) | 5.7 | 6 | 5.8 | ||||||||||
Risk-free interest rate | 1.75 | % | 1.28 | % | 0.94 | % | |||||||
Expected volatility | 51 | % | 58 | % | 59 | % | |||||||
Dividend yield | — | % | — | % | — | % | |||||||
At December 31, 2014 and 2013, there were options to purchase 346,986 and 110,024 shares of common stock outstanding, respectively, awarded to non-employees at a weighted-average exercise price of $4.42 and $1.86 per share, respectively. These awards generally vest over 4 years and expire through 2024. The Company recorded stock-based compensation of $0.8 million for the year ended December 31, 2014 and $0.1 million for each of the years ended December 31, 2013 and 2012, relating to these awards. | |||||||||||||
During the years ended December 31, 2014, 2013, and 2012, the Company modified the terms of existing stock options granted to certain employees and non-employees, to among other things, extend the exercise period and/or accelerate the vesting of options upon termination of employment. In connection with these modifications, the Company recorded stock-based compensation of $0.2 million, $0.6 million and $0.1 million, in the years ended December 31, 2014, 2013, and 2012, respectively. | |||||||||||||
Restricted Stock | |||||||||||||
A summary of restricted stock activity for the year ended December 31, 2014 is as follows: | |||||||||||||
Number of Shares | |||||||||||||
(in thousands) | |||||||||||||
Nonvested shares of restricted stock outstanding at December 31, 2013 | — | ||||||||||||
Granted | 2,200 | ||||||||||||
Canceled | (32 | ) | |||||||||||
Vested | (418 | ) | |||||||||||
Nonvested shares of restricted stock outstanding at December 31, 2014 | 1,750 | ||||||||||||
In March 2014, the Company granted to employees, certain executives, and non-employees 2,200,357 shares of restricted stock, which was comprised of 1,287,857 shares of restricted stock that vest over a weighted-average period of 3.3 years, 632,500 shares of restricted stock granted to certain executives vesting over a weighted-average period of 4.0 years beginning from the completion of the IPO, and 280,000 shares of restricted stock granted to certain executives that vest based on certain stock price performance metrics, beginning on the completion of the Company’s IPO in April 2014 over an estimated weighted-average period of 1.7 years. | |||||||||||||
The grant date fair value per share of the 1,287,857 and 632,500 shares of restricted stock was $16.22, which was determined using the Company’s stock price on the date of grant. | |||||||||||||
The grant date fair value per share of the 280,000 shares of restricted stock was $13.15, which was estimated using a Monte-Carlo lattice model. The Monte-Carlo lattice model used the following assumptions: expected term ranging from 0.7 to 7.2 years; volatility ranging from 50% to 65%; no dividend yield; and risk-free interest rates based on the yields of U.S. Treasury securities with maturities appropriate for the term. The compensation expense will not be reversed if performance metrics are not obtained. | |||||||||||||
At December 31, 2014, the Company had unrecognized employee stock-based compensation relating to restricted stock of approximately $16.5 million. | |||||||||||||
At December 31, 2014, there were 50,000 shares of restricted stock outstanding for non-employees. The Company recorded stock-based compensation of $0.4 million for the year ended December 31, 2014 relating to these awards. | |||||||||||||
Restricted Stock Units | |||||||||||||
A summary of restricted stock unit activity for the year ended December 31, 2014 is as follows: | |||||||||||||
Number of Shares | |||||||||||||
(in thousands) | |||||||||||||
Nonvested shares of restricted stock units outstanding at December 31, 2013 | — | ||||||||||||
Granted | 852 | ||||||||||||
Canceled | (3 | ) | |||||||||||
Vested | (4 | ) | |||||||||||
Nonvested shares of restricted stock units outstanding at December 31, 2014 | 845 | ||||||||||||
At December 31, 2014, the Company had unrecognized employee stock-based compensation relating to restricted stock units of approximately $8.3 million which is expected to be recognized over a weighted-average period of 3.6 years. | |||||||||||||
The restricted stock units had a weighted-average grant date value per share of $13.22. | |||||||||||||
Employee Stock Purchase Plan | |||||||||||||
In November 2013, the Company's board of directors adopted the Company's 2014 Employee Stock Purchase Plan (the "ESPP"). The ESPP is designed to enable eligible employees to periodically purchase shares of the Company's common stock at a discount through payroll deductions of up to 10% of their eligible compensation, subject to any plan limitations. At the end of each six month offering period, employees are able to purchase shares at 85% of the lower of the fair market value of the Company's common stock on the first trading day of the offering period or on the last day of the offering period. The first offering period commenced in November 2014 and ends in May 2015. | |||||||||||||
The Company has reserved 525,000 shares of its common stock for issuance under the ESPP and shares reserved for issuance will increase January 1st of each year by the lesser of (i) a number of shares equal to 1% of the total number of outstanding shares of common stock on December 31st immediately prior to the date of increase of (ii) such number of shares as may be determined by the board of directors. The Company estimated the total grant date fair value of the ESPP awards for the first offering period ending in May 2015 of $0.3 million, using a Black-Scholes model with the following assumptions: term of 6 months corresponding with the offering period; volatility of 54% based on the Company's historical volatility for a six month period; no dividend yield; and risk-free interest rate of 0.07%. Compensation costs are recognized on a straight-line basis over the offering period. | |||||||||||||
Stock-Based Compensation Expense | |||||||||||||
Total stock-based compensation expense recorded in the consolidated statements of operations was as follows: | |||||||||||||
Year Ended | |||||||||||||
December 31, 2014 | December 31, 2013 | December 31, 2012 | |||||||||||
(in thousands) | |||||||||||||
Cost of revenue | $ | 166 | $ | 87 | $ | 78 | |||||||
Selling and marketing | 3,217 | 1,105 | 1,039 | ||||||||||
Technology and development | 2,228 | 1,645 | 828 | ||||||||||
General and administrative | 18,235 | 3,515 | 1,099 | ||||||||||
Total stock-based compensation | $ | 23,846 | $ | 6,352 | $ | 3,044 | |||||||
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Income Taxes | Income Taxes | ||||||||||||
The following are the domestic and foreign components of the Company’s loss before income taxes for the years ended December 31, 2014, 2013, and 2012: | |||||||||||||
Year Ended | Year Ended | Year Ended | |||||||||||
December 31, 2014 | December 31, 2013 | December 31, 2012 | |||||||||||
(in thousands) | |||||||||||||
Domestic | $ | (19,081 | ) | $ | (9,535 | ) | $ | (2,486 | ) | ||||
International | 580 | 533 | 258 | ||||||||||
Loss before income taxes | $ | (18,501 | ) | $ | (9,002 | ) | $ | (2,228 | ) | ||||
The following are the components of the provision for income taxes for the years ended December 31, 2014, 2013 and 2012: | |||||||||||||
Year Ended | Year Ended | Year Ended | |||||||||||
December 31, 2014 | December 31, 2013 | December 31, 2012 | |||||||||||
(in thousands) | |||||||||||||
Current: | |||||||||||||
Federal | $ | — | $ | — | $ | — | |||||||
State | 16 | 58 | 19 | ||||||||||
Foreign | 308 | 189 | 135 | ||||||||||
Total current provision | 324 | 247 | 154 | ||||||||||
Deferred: | |||||||||||||
Federal | (10 | ) | 9 | 1 | |||||||||
State | (1 | ) | 1 | — | |||||||||
Foreign | (141 | ) | (10 | ) | (21 | ) | |||||||
Total deferred benefit | (152 | ) | — | (20 | ) | ||||||||
Total provision for income taxes | $ | 172 | $ | 247 | $ | 134 | |||||||
Set forth below is a reconciliation of the components that caused the Company’s provision for income taxes to differ from amounts computed by applying the U.S. Federal statutory rate of 34% for the years ended December 31, 2014, 2013, and 2012: | |||||||||||||
Year Ended December 31, 2014 | Year Ended December 31, 2013 | Year Ended December 31, 2012 | |||||||||||
U.S. federal statutory income tax rate | 34 | % | 34 | % | 34 | % | |||||||
State income taxes, net of federal benefit | (0.1 | )% | (0.4 | )% | (0.6 | )% | |||||||
Foreign income at other than U.S. rates | 0.8 | % | — | % | (1.2 | )% | |||||||
Stock-based compensation expense | (4.4 | )% | (10.0 | )% | (29.7 | )% | |||||||
Meals and entertainment | (1.7 | )% | (1.3 | )% | (3.4 | )% | |||||||
Acquisition and related items | (0.1 | )% | — | % | (1.0 | )% | |||||||
Non-deductible gifts | (0.1 | )% | (0.2 | )% | (2.0 | )% | |||||||
Research and development tax credits | 4.7 | % | 5.6 | % | 15.6 | % | |||||||
Other permanent items | (1.8 | )% | (0.5 | )% | (0.7 | )% | |||||||
Change in valuation allowance | (32.2 | )% | (29.9 | )% | (17.0 | )% | |||||||
Effective income tax rate | (0.9 | )% | (2.7 | )% | (6.0 | )% | |||||||
Set forth below are the tax effects of temporary differences that give rise to a significant portion of the deferred tax assets and deferred tax liabilities as of December 31, 2014 and 2013: | |||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||
(in thousands) | |||||||||||||
Deferred Tax Assets: | |||||||||||||
Accrued liabilities | $ | 649 | $ | 577 | |||||||||
Intangible assets | — | 1,416 | |||||||||||
Stock-based compensation | 6,401 | 1,762 | |||||||||||
Net operating loss carryovers | 23,241 | 15,018 | |||||||||||
Research tax credit carryovers | 4,596 | 3,176 | |||||||||||
Other | 1,357 | 2,760 | |||||||||||
Total deferred tax assets | 36,244 | 24,709 | |||||||||||
Less valuation allowance | (32,481 | ) | (23,963 | ) | |||||||||
Deferred tax assets, net of valuation allowance | 3,763 | 746 | |||||||||||
Deferred Tax Liabilities: | |||||||||||||
Fixed assets | (777 | ) | (689 | ) | |||||||||
Intangible assets | (3,036 | ) | — | ||||||||||
Other | — | (11 | ) | ||||||||||
Total deferred tax liabilities | (3,813 | ) | (700 | ) | |||||||||
Net deferred tax assets | $ | (50 | ) | $ | 46 | ||||||||
The change in valuation allowance for the year ended December 31, 2014, 2013, and 2012 was $8.5 million, $1.1 million and $1.1 million, respectively. | |||||||||||||
At December 31, 2014, the Company had U.S. federal net operating loss carryforwards, or NOLs, of approximately $65.4 million, which will begin to expire in 2027. At December 31, 2014, the Company had state NOLs of approximately $61.5 million, which will begin to expire in 2027. At December 31, 2014, the Company had federal research and development tax credit carryforwards, or credit carryforwards, of approximately $4.3 million, which will begin to expire in 2027. At December 31, 2014, the Company had state research and development tax credits of approximately $3.4 million, which carry forward indefinitely. Utilization of certain NOLs and credit carryforwards may be subject to an annual limitation due to ownership change limitations set forth in the Internal Revenue Code of 1986, as amended, or the Code, and comparable state income tax laws. Any future annual limitation may result in the expiration of NOLs and credit carryforwards before utilization. As part of the acquisitions, the Company assumed NOL carry forwards of iSocket of $14.6 million. Utilization of these NOLs are subject to annual limitations due to ownership changes set forth in the Code, and comparable state income tax laws, however, such limitations are not expected to impact the Company's ability to utilize these net operating losses. | |||||||||||||
The Company recognizes excess tax benefits associated with stock-based compensation to stockholders’ deficit only when realized based upon applying a with-and-without approach. At December 31, 2014, the Company had approximately $3.5 million of unrealized excess tax benefits associated with stock-based compensation. | |||||||||||||
At December 31, 2014, unremitted earnings of the subsidiaries outside of the United States were approximately $1.2 million, on which no U.S. taxes had been paid. The Company’s intention is to indefinitely reinvest these earnings outside the United States. Upon distribution of those earnings in the form of a dividend or otherwise, the Company would be subject to both U.S. income taxes (subject to an adjustment for foreign tax credits) and withholding taxes payable to various foreign countries. The amounts of such tax liabilities that might be payable upon repatriation of foreign earnings, after consideration of corresponding foreign tax credits, are not material. | |||||||||||||
The following table summarizes the activity related to the unrecognized tax benefits (in thousands): | |||||||||||||
Amount | |||||||||||||
(in thousands) | |||||||||||||
Balance at January 1, 2012 | $ | 788 | |||||||||||
Increases related to current year tax positions | 279 | ||||||||||||
Balance at December 31, 2012 | 1,067 | ||||||||||||
Increases related to current year tax positions | 408 | ||||||||||||
Decreases related to prior year tax positions | (21 | ) | |||||||||||
Balance as of December 31, 2013 | 1,454 | ||||||||||||
Increases related to current year tax positions | 679 | ||||||||||||
Decreases related to prior year tax positions | (2 | ) | |||||||||||
Balance as of December 31, 2014 | $ | 2,131 | |||||||||||
Interest and penalties related to the Company’s unrecognized tax benefits accrued at December 31, 2014, 2013, and 2012 were not material. | |||||||||||||
Due to the net operating loss carryforwards, the Company’s U.S. federal and state returns are open to examination by the Internal Revenue Service and state jurisdictions for all years since inception. For Australia, Germany, and the United Kingdom, all tax years remain open for examination by the local country tax authorities. | |||||||||||||
The Company does not expect its uncertain income tax positions to have a material impact on its consolidated financial statements within the next twelve months. |
Geographic_Information
Geographic Information | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Segment Reporting [Abstract] | |||||||||
Geographic Information | Geographic Information | ||||||||
Substantially all of the Company’s revenue is U.S. revenue, determined based on the location of the Company’s legal entity that is a party to the relevant transaction. Revenue originated in foreign countries was not material during the years ended December 31, 2014, 2013, and 2012. | |||||||||
The Company’s property and equipment, net by geographical region were as follows: | |||||||||
31-Dec-14 | 31-Dec-13 | ||||||||
(in thousands) | |||||||||
United States | $ | 12,680 | $ | 7,388 | |||||
Germany | 1,449 | — | |||||||
Netherlands | 712 | 864 | |||||||
Other international | 355 | 460 | |||||||
$ | 15,196 | $ | 8,712 | ||||||
401K_Savings_Plan
401(K) Savings Plan | 12 Months Ended |
Dec. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | |
401(K) Savings Plan | 401(K) Savings Plan |
The Company has a defined contribution savings plan under Section 401(k) of the Code. This plan covers substantially all employees who meet minimum age and service requirements and allows participants to defer a portion of their annual compensation on a pre-tax basis. Company contributions to the plan may be made at the discretion of the board of directors. To date, there have been no contributions made to the plan by the Company. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
Commitments and Contingencies | Commitments and Contingencies | |||
Operating Leases | ||||
The Company has commitments under non-cancelable operating leases for facilities and certain equipment, and its managed data center facilities. Total rental expenses were $7.6 million, $4.7 million and $3.6 million for the years ended December 31, 2014, 2013, and 2012, respectively. | ||||
As of December 31, 2014 the Company’s non-cancelable minimum operating lease commitments were as follows: | ||||
Fiscal Year | Amount | |||
(in thousands) | ||||
2015 | $ | 6,197 | ||
2016 | 3,135 | |||
2017 | 1,847 | |||
2018 | 1,052 | |||
2019 | 497 | |||
Thereafter | 608 | |||
Total | $ | 13,336 | ||
Guarantees and Indemnification | ||||
The Company’s agreements with sellers, buyers, and other third parties typically obligate it to provide indemnity and defense for losses resulting from claims of intellectual property infringement, damages to property or persons, business losses, or other liabilities. Generally these indemnity and defense obligations relate to the Company’s own business operations, obligations, and acts or omissions. However, under some circumstances, the Company agrees to indemnify and defend contract counterparties against losses resulting from their own business operations, obligations, and acts or omissions, or the business operations, obligations, and acts or omissions of third parties. For example, because the Company’s business interposes the Company between buyers and sellers in various ways, buyers often require the Company to indemnify them against acts and omissions of sellers, and sellers often require the Company to indemnify them against acts and omissions of buyers. In addition, the Company’s agreements with sellers, buyers, and other third parties typically include provisions limiting the Company’s liability to the counterparty, and the counterparty’s liability to the Company. These limits sometimes do not apply to certain liabilities, including indemnity obligations. These indemnity and limitation of liability provisions generally survive termination or expiration of the agreements in which they appear. The Company has also entered into indemnification agreements with its directors, executive officers and certain other officers that will require the Company, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors, officers or employees. No demands have been made upon the Company to provide indemnification under such agreements and there are no claims that the Company is aware of that could have a material effect on the Company’s consolidated financial statements. | ||||
Litigation | ||||
The Company and its subsidiaries may from time to time be parties to legal or regulatory proceedings, lawsuits and other claims incident to their business activities and to the Company’s status as a public company. Such matters may include, among other things, assertions of contract breach or intellectual property infringement, claims for indemnity arising in the course of the Company’s business, regulatory investigations or enforcement proceedings, and claims by persons whose employment has been terminated. Such matters are subject to many uncertainties, and outcomes are not predictable with assurance. Consequently, management is unable to ascertain the ultimate aggregate amount of monetary liability, amounts which may be covered by insurance or recoverable from third parties, or the financial impact with respect to such matters as of December 31, 2014. However, based on management’s knowledge as of December 31, 2014, management believes that the final resolution of these matters, individually and in the aggregate, will not have a material adverse effect upon the Company’s consolidated financial position, results of operations or cash flows. | ||||
Employment Contracts | ||||
The Company has entered into severance agreements with certain employees and officers, all of whom are employed at-will. The Company may be required to pay severance and accelerate the vesting of certain equity awards in the event of involuntary terminations. | ||||
Other Contracts | ||||
The Company is party to an engagement letter with an investment bank entered into in 2009 and amended in 2012. Pursuant to the engagement letter, the investment bank provided and may continue to provide strategic and consulting advice to the Company, in exchange for which the Company issued to the investment bank a warrant to purchase 845,867 shares of Series C preferred stock. The warrant was exercised on a net issuance basis for 286,055 shares of the Company’s common stock in connection with the Company’s IPO, after giving effect to the conversion of preferred stock to common stock and the 1-for-2 reverse split of the Company’s common stock effected in connection with the IPO. The engagement letter also provides that, in case of a merger, tender offer, stock purchase, or other transaction resulting in the acquisition of the Company by another entity or the transfer of ownership or control of the Company or substantially all of its assets to another entity (a “Change in Control Transaction”) that is consummated before December 7, 2016 or pursuant to a definitive agreement entered into before that date, (i) the investment bank will provide investment banking services in connection with a Change in Control Transaction, if requested by the Company, and (ii) the Company will pay to the investment bank a fee equal to 2.5% of the total consideration paid or payable to the Company or its stockholders in the Change in Control Transaction, whether or not the Company requests such investment banking services. The investment bank was not entitled to participate in and did not receive any fee in connection with the Company's IPO. |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2014 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions |
For the years ended December 31, 2014, 2013, and 2012, the Company recognized revenue of approximately $1.9 million, $1.1 million and $0.8 million, respectively, from entities affiliated with a holder of more than 10% of the Company’s outstanding common stock. At December 31, 2014 and December 31, 2013, accounts payable and accrued expenses included $3.2 million and $2.9 million, respectively, related to these revenue transactions. | |
During January 2013, the Company entered into a sublease for its headquarters in Los Angeles, California with an entity affiliated with a holder of more than 10% of the Company’s outstanding common stock. The sublease term began during June 2013 and terminates in April 2021; however, the Company has the option to terminate the sublease on its third anniversary date if the Company notifies the sublessor one year in advance of its intended departure and pays a termination fee of $1.2 million. In addition, the early termination fee escalates dollar-per-dollar for any tenant improvement allowance that exceeds $1.0 million. The Company expects to utilize its early termination option and has considered the estimated early termination fee in estimating its straight-line rent expense. |
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events |
On January 1, 2015, shares issuable under the Company’s 2014 Equity Incentive Plan increased by 1,859,636 shares and shares issuable under the Company’s 2014 Employee Stock Purchase Plan increased by 371,927 shares in accordance with the automatic annual increase provisions of such plans. |
Basis_of_Presentation_and_Summ1
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |
Dec. 31, 2014 | ||
Accounting Policies [Abstract] | ||
Basis of Accounting | Basis of Consolidation | |
The accompanying consolidated financial statements are presented in accordance with accounting principles generally accepted in the United States of America, or GAAP, and include the operations of the Company and its wholly owned subsidiaries. All significant inter-company transactions and balances have been eliminated in consolidation. | ||
Consolidation | Basis of Consolidation | |
The accompanying consolidated financial statements are presented in accordance with accounting principles generally accepted in the United States of America, or GAAP, and include the operations of the Company and its wholly owned subsidiaries. All significant inter-company transactions and balances have been eliminated in consolidation. | ||
Segments | Segments | |
Management has determined that it operates in one segment. The Company’s chief operating decision maker reviews financial information on an aggregated and consolidated basis, together with certain operating and performance measures principally to make decisions about how to allocate resources and to measure the Company’s performance. | ||
Use of Estimates | Use of Estimates | |
The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported and disclosed financial statements and accompanying footnotes. Actual results could differ materially from these estimates. | ||
On an ongoing basis, management evaluates its estimates, primarily those related to: (i) revenue recognition criteria, including the determination of revenue reporting as net versus gross in the Company’s revenue arrangements, (ii) accounts receivable and allowances for doubtful accounts, (iii) the useful lives of intangible assets and property and equipment, (iv) valuation of long-lived assets and their recoverability, including goodwill, (v) the realization of tax assets and estimates of tax liabilities, (vi) the valuation of common and preferred stock and preferred stock warrants prior to the Company’s IPO, (vii) assumptions used in valuation models to determine the fair value of stock-based awards, (viii) fair value of financial instruments, (ix) the recognition and disclosure of contingent liabilities, and (x) the assumptions used in valuing acquired assets and assumed liabilities in business combinations. These estimates are based on historical data and experience, as well as various other factors that management believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Estimates relating to the valuation of stock and business combinations require the selection of appropriate valuation methodologies and models, and significant judgment in evaluating ranges of assumptions and financial inputs. Actual results may differ materially from those estimates under different assumptions or circumstances. | ||
Revenue Recognition | Revenue Recognition | |
The Company generates revenue from buyers and sellers who use the Company’s solution for the buying and selling of advertising inventory. The Company recognizes revenue when four basic criteria are met: (i) persuasive evidence of an arrangement exists, (ii) delivery has occurred or services have been rendered, (iii) the fees are fixed or determinable, and (iv) collectibility is reasonably assured. The Company maintains separate arrangements with each buyer and seller either in the form of a master agreement, which specifies the terms of the relationship and access to the Company’s solution, or by insertion orders which specify price and volume requests. The Company also generates revenue directly from sellers who maintain the primary relationship with buyers and utilize the Company’s solution. The Company recognizes revenue upon the completion of a transaction, that is, when an impression has been delivered to the consumer viewing a website or application. The Company assesses whether fees are fixed or determinable based on impressions delivered and the contractual terms of the arrangements. Subsequent to the delivery of an impression, the fees are generally not subject to adjustment or refund. Historically, any refunds and adjustments have not been material. The Company assesses collectibility based on a number of factors, including the creditworthiness of a buyer and seller and payment and transaction history. The Company’s revenue arrangements do not include multiple deliverables. The Company generally bills buyers for the gross amount of advertising inventory they purchase plus fees, if any, and the Company remits to a seller the amount spent by the buyer for the advertising inventory purchased less the Company’s fees. | ||
The Company also reports revenue in conformity with Revenue Recognition-Principal Agent Considerations. The determination of whether the Company is the principal or agent, and hence whether to report revenue on a gross basis for the amount of the advertising inventory buyers purchase using the Company’s platform, plus fees, if any, or on a net basis for the amount of fees charged to the buyer, if any, and retained fees from or charged to the seller, requires the Company to evaluate a number of indicators, none of which is presumptive or determinative. The Company’s solution enables buyers and sellers to purchase and sell advertising inventory, and matches buyers and sellers and establishes rules and parameters for advertising inventory transactions. Pricing is generally determined through the Company’s auction process. The Company does not purchase advertising inventory. As a result of these and other factors, the Company has determined it is not the principal in the purchase and sale of advertising inventory in all of its arrangements and the Company therefore reports revenue on a net basis. | ||
Cost of Revenue | Cost of Revenue | |
The Company’s cost of revenue consists primarily of data center costs, bandwidth costs, depreciation and maintenance expense of hardware supporting the Company’s revenue-producing platform, amortization of software costs for the development of the Company’s revenue-producing platform, amortization expense associated with acquired developed technologies, personnel costs, and facilities-related costs. Personnel costs included in cost of revenue include salaries, bonuses, stock-based compensation, and employee benefit costs, and are primarily attributable to personnel in our network operations group, who support the Company’s platform. The Company capitalizes costs associated with software that is developed or obtained for internal use and amortizes the costs associated with the Company’s revenue-producing platform in cost of revenue over their estimated useful lives. Many of these expenses are generally fixed and do not increase or decrease proportionately with increases or decreases in our revenue. | ||
Sales, Marketing, General, and Administrative | Sales and Marketing | |
The Company’s sales and marketing expenses consist primarily of personnel costs, including stock-based compensation and the sales bonuses paid to the Company’s sales organization, and marketing expenses such as brand marketing, travel expenses, trade shows and marketing materials, professional services, and to a lesser extent, facilities-related costs and depreciation and amortization. The Company's sales organization focuses on marketing the Company's solution to increase the adoption of the solution by existing and new buyers and sellers. | ||
General and Administrative | ||
The Company’s general and administrative expenses consist primarily of personnel costs, including stock-based compensation, associated with the Company’s executive, finance, legal, human resources, compliance, and other administrative personnel, as well as accounting and legal professional services fees, facilities-related costs and depreciation, and other corporate related expenses. General and administrative expenses also include amortization of internal use software development costs that relate to general and administrative functions. | ||
Technology and Development | Technology and Development | |
The Company’s technology and development expenses consist primarily of personnel costs, including stock-based compensation, and professional services associated with the ongoing development and maintenance of the Company’s solution, and to a lesser extent, facilities-related costs and depreciation and amortization. These expenses include costs incurred in the development, implementation, and maintenance of internal use software, including platform and related infrastructure. Technology and development costs are expensed as incurred, except to the extent that such costs are associated with internal use software development that qualifies for capitalization, which are then recorded as Internal use software development costs, net on the Company’s consolidated balance sheet. The Company amortizes internal use software development costs that relate to its revenue-producing activities on its platform to cost of revenue and amortizes other internal use software development costs to technology and development costs or general and administrative expenses, depending on the nature of the related project. | ||
Stock-Based Compensation | Stock-Based Compensation | |
Compensation expense related to employee stock-based awards is measured and recognized in the consolidated financial statements based on the fair value of the awards granted. The Company has granted awards to employees that vest based solely on continued service, or service conditions, awards that vest based on the achievement of performance targets, or performance conditions, and awards that vest based on the Company's stock price exceeding a peer index, or market conditions. The fair value of each option award containing service and/or performance conditions is estimated on the grant date using the Black-Scholes option-pricing model. The fair value of awards containing market conditions is estimated using a Monte-Carlo lattice model. For service condition awards, stock-based compensation expense is recognized on a straight-line basis, net of forfeitures, over the requisite service periods of the awards, which is generally four years. For performance condition and market condition awards, stock-based compensation expense is recognized using a graded vesting model, over the requisite service period of the awards. For market condition awards, expense recognized is not subsequently reversed if the market conditions are not achieved. | ||
Stock-based awards issued to non-employees are accounted for at fair value determined by using the Black-Scholes option-pricing model. The Company believes that the fair value of the stock options is more reliably measured than the fair value of the services received. The fair value of each non-employee stock-based compensation award is re-measured each period until a commitment date is reached, which is generally the vesting date. | ||
Determining the fair value of stock-based awards at the grant date requires judgment. The Company’s use of the Black-Scholes option-pricing model and Monte-Carlo lattice model requires the input of subjective assumptions such as the expected term of the option, the expected volatility of the price of the Company’s common stock, risk-free interest rates, the expected dividend yield of the Company’s common stock, and for periods prior to the Company's IPO, the fair value of the Company's common stock. The assumptions used in the Company’s valuation models represent management’s best estimates. These estimates involve inherent uncertainties and the application of management’s judgment. If factors change and different assumptions are used, the Company’s stock-based compensation expense could be materially different in the future. | ||
These assumptions and estimates are as follows: | ||
Fair Value of Common Stock. For stock options granted subsequent to the Company's IPO, the fair value of common stock is based on the closing price of the Company's common stock as reported on the New York Stock Exchange, or the NYSE, on the date of grant. Prior to the IPO, the board of directors determined the fair value of the common stock at the time of the grant of options and restricted stock awards by considering a number of objective and subjective factors. The fair value was determined in accordance with applicable elements of the practice aid issued by the American Institute of Certified Public Accountants titled Valuation of Privately Held Company Equity Securities Issued as Compensation. | ||
Risk-Free Interest Rate. The Company bases the risk-free interest rate used in the Black-Scholes option-pricing model on the yields of U.S. Treasury securities with maturities appropriate for the term of employee stock option awards. | ||
Expected Term. For employee options that contain service conditions, the Company applies the simplified approach, in which the expected term of an award is presumed to be the mid-point between the vesting date and the expiration date of the award. The expected term of employee stock options that contain performance conditions represents the weighted-average period that the stock options are estimated to remain outstanding. | ||
Volatility. Because the Company does not have significant trading history for the Company’s common stock, the Company determines the price volatility based on the historical volatilities of a publicly traded peer group based on daily price observations over a period equivalent to the expected term of the stock option grants. | ||
Dividend Yield. The dividend yield assumption is based on the Company’s history and current expectations of dividend payouts. The Company has never declared or paid any cash dividends on its common stock and does not anticipate paying any cash dividends in the foreseeable future, so the Company used an expected dividend yield of zero. | ||
In addition to the above assumptions, the Company also estimates a forfeiture rate to calculate the stock-based compensation expense for stock based awards. The Company’s forfeiture rate is based on an analysis of the Company’s historical forfeitures and estimated future forfeitures. Changes in the estimated forfeiture rate may have a significant impact on the Company’s stock-based compensation expense as the cumulative effect of adjusting the rate is recognized in the period the forfeiture estimate is changed. | ||
The Company will continue to use judgment in evaluating the assumptions related to the Company’s stock-based compensation. Future expense amounts for any particular period could be affected by changes in the Company’s assumptions or market conditions. | ||
Due to the full valuation allowance provided on its net deferred tax assets, the Company has not recorded any tax benefit attributable to stock-based awards for the years ended December 31, 2014, 2013, and 2012. | ||
Income Taxes | Income Taxes | |
Deferred income tax assets and liabilities are determined based upon the net tax effects of the differences between the Company’s consolidated financial statements carrying amounts and the tax basis of assets and liabilities and are measured using the enacted tax rate expected to apply to taxable income in the years in which the differences are expected to be reversed. | ||
A valuation allowance is used to reduce some or all of the deferred tax assets if, based upon the weight of available evidence, it is more likely than not that those deferred tax assets will not be realized. The Company has established a full valuation allowance to offset its domestic net deferred tax assets due to the uncertainty of realizing future tax benefits from the net operating loss carryforwards and other deferred tax assets. | ||
The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the consolidated financial statements from such positions are then measured based on the largest benefit that has a greater than 50% likelihood of being realized. The Company recognizes interest and penalties accrued related to its uncertain tax positions in its income tax provision in the accompanying consolidated statements of operations. | ||
The Company recognizes excess tax benefits associated with stock-based compensation to stockholders’ equity only when realized based on applying a with-and-without approach. | ||
Net Loss Per Share Attributable to Common Stockholders | Net Loss Per Share Attributable to Common Stockholders | |
Basic net loss per share of common stock is calculated by dividing the net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding. Net loss attributable to common stockholders is equal to net loss adjusted for declared or cumulative preferred stock dividends for the period. Prior to the IPO, because the holders of the Company’s convertible preferred stock were entitled to participate in dividends, the Company applied the two-class method in calculating earnings per share for periods when the Company generated net income. The two-class method requires net income to be allocated between the common and preferred stockholders based on their respective rights to receive dividends, whether or not declared. However, because the convertible preferred stock was not contractually obligated to share in the Company’s losses, no such allocation was made for any period presented given the Company’s net losses. | ||
Diluted loss per share attributable to common stockholders adjusts the basic weighted-average number of shares of common stock outstanding for the effect of potentially dilutive securities during the period. Potentially dilutive securities consist of stock options, restricted stock awards, restricted stock units, potential shares issued under the Company's Employee Stock Purchase Plan, shares held in escrow and potential shares issuable as part of contingent consideration as a result of business combinations, warrants and convertible preferred stock. For purposes of this calculation, potentially dilutive securities are excluded from the calculation of diluted net loss per share attributable to common stockholders if their effect is anti-dilutive. | ||
Prior to the Company's IPO, the Company had two classes of stock, Class A and Class B. Basic and diluted net loss per share attributable to common stockholders were the same for Class A and Class B common stock because they were entitled to the same liquidation and dividend rights. In connection with the IPO, the outstanding shares of Class A common stock and Class B common stock were converted into shares of a single class of common stock on a one-for-one basis. See Note 11. | ||
Comprehensive Loss | Comprehensive Loss | |
Comprehensive loss encompasses all changes in equity other than those arising from transactions with stockholders, and consists of net loss and foreign currency translation adjustments. | ||
Cash and Cash Equivalents | Cash and Cash Equivalents | |
The Company considers cash and cash equivalents to include short-term, highly liquid investments that are readily convertible to known amounts of cash and so near their maturity that they present insignificant risk of changes in their value, including investments with original or remaining maturities from the date of purchase of three months or less. At December 31, 2014 and 2013, cash and cash equivalents consisted of cash balances and money market funds of $97.2 million and $30.0 million, respectively. | ||
Restricted Cash | Restricted Cash | |
The Company holds restricted cash required to fulfill its payment obligations if the Company should default under a software license agreement and the building lease for its headquarters in Los Angeles, California. At December 31, 2014 and 2013, restricted cash included in prepaid expenses and other current assets was $0.4 million and $0.4 million, respectively. At December 31, 2014 and 2013, restricted cash included in other assets, non-current was $1.0 million and $1.3 million, respectively | ||
Accounts Receivable Allowance for Doubtful Accounts | Accounts Receivable Allowance for Doubtful Accounts | |
Accounts receivable are recorded at the invoiced amount, are unsecured, and do not bear interest. The allowance for doubtful accounts is based on the best estimate of the amount of probable credit losses in existing accounts receivable. The allowance for doubtful accounts is determined based on historical collection experience and the review in each period of the status of the then-outstanding accounts receivable, while taking into consideration current customer information, subsequent collection history and other relevant data. The Company reviews the allowance for doubtful accounts on a quarterly basis. Account balances are charged off against the allowance when the Company believes it is probable the receivable will not be recovered. The Company’s allowance for doubtful accounts was approximately $0.3 million and $0.7 million at December 31, 2014 and 2013, respectively. During the years ended December 31, 2014, and 2013, the Company reserved an additional $0.2 million and $1.0 million, respectively, for doubtful accounts and wrote-off $0.6 million and $0.4 million, respectively, of accounts receivable. Activity for the year ended December 31, 2012 was not significant. | ||
Property and Equipment, Net | Property and Equipment, Net | |
Property and equipment are recorded at historical cost, less accumulated depreciation and amortization. Depreciation is computed using the straight-line method based upon the estimated useful lives of the assets. The estimated useful lives of the Company’s property and equipment are as follows: | ||
Years | ||
Purchased and internally developed software | 3 | |
Computer equipment and network hardware | 3 | |
Furniture, fixtures and office equipment | 5 to 7 | |
Leasehold improvements | Shorter of useful | |
life or life of lease | ||
Computer equipment under capital leases | Shorter of useful | |
life or life of lease | ||
Repair and maintenance costs are charged to expense as incurred, while renewals and improvements are capitalized. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss is reflected in the Company’s results of operations. | ||
Internal Use Software Development Costs | Internal Use Software Development Costs | |
The Company capitalizes certain internal use software development costs associated with creating and enhancing internally developed software related to the Company’s technology infrastructure. These costs include personnel and related employee benefits expenses for employees who are directly associated with and who devote time to software projects, and external direct costs of materials and services consumed in developing or obtaining the software. Software development costs that do not meet the qualification for capitalization, as further discussed below, are expensed as incurred and recorded in technology and development expenses in the results of operations. | ||
Software development activities generally consist of three stages, (i) the planning stage, (ii) the application and infrastructure development stage, and (iii) the post implementation stage. Costs incurred in the planning and post implementation stages of software development, including costs associated with the post-configuration training and repairs and maintenance of the developed technologies, are expensed as incurred. The Company capitalizes costs associated with software developed for internal use when both the preliminary project stage is completed, management has authorized further funding for the completion of the project, and it is probable that the project will be completed and perform as intended. Costs incurred in the application and infrastructure development stages, including significant enhancements and upgrades, are capitalized. Capitalization ends once a project is substantially complete and the software and technologies are ready for their intended purpose. Internal use software development costs are amortized using a straight-line method over the estimated useful life of three years, commencing when the software is ready for its intended use. The straight-line recognition method approximates the manner in which the expected benefit will be derived. | ||
The Company does not transfer ownership of its software, or lease its software, to third parties. | ||
Intangible Assets | Intangible Assets | |
Intangible assets primarily consist of acquired developed technology, customer relationships and non-compete agreements resulting from business combinations, which are recorded at cost, less accumulated amortization. The Company determines the appropriate useful life of its intangible assets by performing an analysis of expected cash flows of the acquired assets. Intangible assets are amortized over their estimated useful lives using a straight-line method, which approximates the pattern in which the economic benefits are consumed. | ||
The estimated useful lives of the Company’s intangible assets are as follows: | ||
Years | ||
Developed technology | 3 to 5 | |
Non-compete agreements | 2 to 3 | |
Customer relationships | 2.5 | |
Other intangible assets | 0.5 to 1.5 | |
Impairment of Long Lived Assets including Internal Use Capitalized Software Costs | Impairment of Long-Lived Assets including Internal Use Capitalized Software Costs | |
The Company assesses the recoverability of its long-lived assets when events or changes in circumstances indicate their carrying value may not be recoverable. Such events or changes in circumstances may include: a significant adverse change in the extent or manner in which a long-lived asset is being used, significant adverse change in legal factors or in the business climate that could affect the value of a long-lived asset, an accumulation of costs significantly in excess of the amount originally expected for the acquisition or development of a long-lived asset, current or future operating or cash flow losses that demonstrate continuing losses associated with the use of a long-lived asset, or a current expectation that, more likely than not, a long-lived asset will be sold or otherwise disposed of significantly before the end of its previously estimated useful life. The Company performs impairment testing at the asset group level that represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. The Company assesses recoverability of a long-lived asset by determining whether the carrying value of the asset group can be recovered through projected undiscounted cash flows over their remaining lives. If the carrying value of the asset group exceeds the forecasted undiscounted cash flows, an impairment loss is recognized, measured as the amount by which the carrying amount exceeds estimated fair value. An impairment loss is charged to operations in the period in which management determines such impairment. | ||
Business Combinations | Business Combinations | |
The results of businesses acquired in a business combination are included in the Company’s consolidated financial statements from the date of acquisition. The Company allocates the purchase price, which is the sum of the consideration provided which may consist of cash, equity or a combination of the two, in a business combination to the identifiable assets and liabilities of the acquired business at their acquisition date fair values. The excess of the purchase price over the amount allocated to the identifiable assets and liabilities, if any, is recorded as goodwill. Determining the fair value of assets acquired and liabilities assumed requires management to use significant judgment and estimates including the selection of valuation methodologies, estimates of future revenues and cash flows, discount rates and selection of comparable companies. | ||
When the Company issues stock-based or cash awards to an acquired company’s stockholders, the Company evaluates whether the awards are contingent consideration or compensation for post-business combination services. The evaluation includes, among other things, whether the vesting of the awards is contingent on the continued employment of the selling stockholder beyond the acquisition date. If continued employment is required for vesting, the awards are treated as compensation for post-acquisition services and recognized as expense over the requisite service period. | ||
The Company estimates the fair value of intangible assets acquired generally using a discounted cash flow approach, which includes an analysis of the future cash flows expected to be generated by the asset and the risk associated with achieving these cash flows. The key assumptions used in the discounted cash flow model include the discount rate that is applied to the forecasted future cash flows to calculate the present value of those cash flows and the estimate of future cash flows attributable to the acquired intangible asset, which include revenue, expenses and taxes. The carrying value of acquired working capital assets and liabilities approximates its fair value, given the short-term nature of these assets and liabilities. | ||
Acquisition-related transaction costs are not included as a component of consideration transferred, but are accounted for as an expense in the period in which the costs are incurred. | ||
Goodwill | Goodwill | |
Goodwill represents the excess of the aggregate fair value of the consideration transferred in a business combination over the fair value of the assets acquired, net of liabilities assumed. Goodwill is not amortized, but is subject to an annual impairment test. The Company tests for impairment of goodwill annually during the fourth quarter or more frequently if events or changes in circumstances indicate that the goodwill may be impaired. | ||
Events or changes in circumstances which could trigger an impairment review include a significant adverse change in legal factors or in the business climate, an adverse action or assessment by a regulator, unanticipated competition, a loss of key personnel, significant changes in the manner of the Company’s use of the acquired assets or the strategy for the Company’s overall business, significant negative industry or economic trends, or significant underperformance relative to expected historical or projected future results of operations. | ||
The Company has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing the totality of events or circumstances, an entity determines it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then additional impairment testing is not required. However, if an entity concludes otherwise, then it is required to perform the first of a two-step impairment test. | ||
The first step involves comparing the estimated fair value of a reporting unit with its respective book value, including goodwill. If the estimated fair value exceeds book value, goodwill is considered not to be impaired and no additional steps are necessary. If, however, the fair value of the reporting unit is less than book value, then a second step is required which requires the carrying amount of the goodwill be compared with its implied fair value. The estimate of implied fair value of goodwill may require valuations of certain internally generated and unrecognized intangible and tangible net assets. If the carrying amount of goodwill exceeds the implied fair value of the goodwill, an impairment loss is recognized in an amount equal to the excess. | ||
Operating and Capital Leases | Operating and Capital Leases | |
The Company records rent expense for operating leases, some of which have escalating rent payments, over the term of the lease, on a straight-line basis over the lease term. The Company begins recognition of rent expense on the date of initial possession, which is generally when the Company enters the leased premises and begins to make improvements in preparation for its intended use. Some of the Company’s lease arrangements provide for concessions by the landlords, including payments for leasehold improvements and rent-free periods. The Company accounts for the difference between the straight-line rent expense and rent paid as a deferred rent liability. | ||
The Company leases equipment under capital lease arrangements. The assets and liabilities under capital lease are recorded at the lesser of present value of aggregate future minimum lease payments, including estimated bargain purchase options, or the fair value of the asset under lease. Assets under capital lease are amortized using the straight-line method over the estimated useful lives of the assets. | ||
Preferred Stock Warrant Liabilities | Preferred Stock Warrant Liabilities | |
The Company issued warrants to purchase preferred stock in connection with professional services and financing arrangements and accounted for these warrants as liabilities at fair value because the underlying shares of convertible preferred stock were contingently redeemable, including in the case of a deemed liquidation, which may have obligated the Company to transfer assets to the warrant holders. The preferred stock warrants were recorded at fair value at the time of issuance and changes in the fair value of the preferred stock warrants each reporting period were recorded as part of other expense, net in the Company’s consolidated statements of operations until the earlier of the exercise or expiration of the warrants or the warrants’ conversion to warrants to purchase common stock, at which time any remaining liability was reclassified to additional paid-in capital. Following the closing of the Company's IPO, the Company was no longer required to re-measure the warrants to fair value and record any changes in the fair value of these liabilities in the statement of operations, and accordingly, the Company did not record any related expenses subsequent to the closing of the IPO. | ||
Fair Value Measurements | Fair Value of Financial Instruments | |
Fair value represents the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value hierarchy is based on the following three levels of inputs, of which the first two are considered observable and the last one is considered unobservable: | ||
• | Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. | |
• | Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. | |
• | Level 3 – Unobservable inputs. | |
Observable inputs are based on market data obtained from independent sources. | ||
At, December 31, 2014, the Company's contingent consideration liability was measured using unobservable inputs that required a high level of judgment to determine fair value, and thus classified as Level 3. At December 31, 2013 the Company’s warrants to purchase preferred stock were measured using unobservable inputs that required a high level of judgment to determine fair value, and thus classified as Level 3. The Company's warrants to purchase preferred stock were re-measured to fair value through closing of the IPO. See Note 8. | ||
The carrying amounts of cash equivalents, accounts receivable, accounts payable, accrued expenses, and seller payables approximate fair value due to the short-term nature of these instruments. The carrying value of the line of credit approximates fair value based on borrowing rates currently available to the Company for financing with similar terms and were determined to be Level 2. | ||
Certain assets, including goodwill and intangible assets are also subject to measurement at fair value on a non-recurring basis if they are deemed to be impaired as a result of an impairment review. | ||
Concentration of Risk | Concentration of Risk | |
Financial instruments that potentially subject the Company to concentration of credit risk consist principally of cash, cash equivalents, restricted cash and accounts receivable. The Company maintains its cash and cash equivalents with financial institutions which exceed the Federal Deposit Insurance Corporation, or FDIC, federally insured limits. | ||
Accounts receivable include amounts due from buyers with principal operations primarily in the United States. The Company performs ongoing credit evaluations of its buyers. | ||
At December 31, 2014, two buyers accounted for 15% and 11%, respectively, of consolidated accounts receivable. At December 31, 2013, two buyers accounted for 13% and 10%, respectively, of consolidated accounts receivable. | ||
For the years ended December 31, 2014, 2013, and 2012, no buyer or seller of advertising inventory comprised 10% or more of consolidated revenue. | ||
At December 31, 2014, one seller of advertising inventory comprised 14% of consolidated accounts payable. At December 31, 2013, no seller of advertising inventory comprised 10% or more of consolidated accounts payable. | ||
Foreign Currency Transactions and Translation | Foreign Currency Transactions and Translation | |
Transactions in foreign currencies are translated into the functional currency of the applicable entity at the rates of exchange in effect at the date of the transaction. Foreign exchange gains, net was approximately $1.1 million for the year ended December 31, 2014 and foreign exchange losses, net were approximately $0.7 million and $0.2 million for the years ended December 31, 2013 and 2012, respectively, and are included in other expense, net in the accompanying consolidated statements of operations. To the extent that the functional currency is different than the U.S Dollar, the financial statements have then been translated into U.S. Dollars using period-end exchanges rates for assets and liabilities and average exchanges rates for the results of operations. Foreign currency translation gains and losses are included as a component of accumulated other comprehensive loss on the consolidated balance sheet. | ||
Recent Accounting Pronouncements | Recent Accounting Pronouncements | |
Under the Jumpstart Our Business Startups Act, or the JOBS Act, the Company meets the definition of an emerging growth company. The Company has irrevocably elected to opt out of the extended transition period for complying with new or revised accounting standards pursuant to Section 107(b) of the JOBS Act. | ||
In April 2014, the Financial Accounting Standards Board, or FASB, issued new accounting guidance that raises the threshold for a disposal to qualify as a discontinued operation and requires new disclosures of both discontinued operations and certain other disposals that do not meet the definition of a discontinued operation. The new guidance is effective for fiscal years beginning on or after December 15, 2014. Early adoption is permitted but only for disposals that have not been reported in financial statements previously issued. As of December 31, 2014, the adoption of this guidance is not expected to have a material impact on the Company's consolidated financial statements. | ||
In May 2014, the FASB issued new accounting guidance that requires an entity to recognize the amount of revenue it expects to earn from the transfer of promised goods or services to customers. The new accounting guidance will replace most existing GAAP revenue recognition guidance when it becomes effective. The new guidance is effective for annual reporting periods (including interim periods within those periods) beginning after December 15, 2016. Early adoption is not permitted. The guidance permits the use of either the retrospective or cumulative effect transition method. The Company will evaluate the effect, if any, the guidance will have on the Company's consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the guidance on its ongoing financial reporting. | ||
In August 2014, the FASB issued an amendment to the accounting guidance related to the evaluation of an entity to continue as a going concern. The amendment establishes management’s responsibility to evaluate whether there is a substantial doubt about an entity's ability to continue as a going concern in connection with preparing financial statements for each annual and interim reporting period. The amendment also gives guidance to determine whether to disclose information about relevant conditions and events when there is substantial doubt about an entity's ability to continue as a going concern. The new guidance is effective as of December 15, 2016. The adoption of this guidance is not expected to have a material impact on the Company's consolidated financial statements. |
Basis_of_Presentation_and_Summ2
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Accounting Policies [Abstract] | |||||||||
Property, Plant and Equipment | The estimated useful lives of the Company’s property and equipment are as follows: | ||||||||
Years | |||||||||
Purchased and internally developed software | 3 | ||||||||
Computer equipment and network hardware | 3 | ||||||||
Furniture, fixtures and office equipment | 5 to 7 | ||||||||
Leasehold improvements | Shorter of useful | ||||||||
life or life of lease | |||||||||
Computer equipment under capital leases | Shorter of useful | ||||||||
life or life of lease | |||||||||
Major classes of property and equipment were as follows: | |||||||||
31-Dec-14 | 31-Dec-13 | ||||||||
(in thousands) | |||||||||
Purchased software | $ | 1,651 | $ | 1,534 | |||||
Computer equipment and network hardware | 24,673 | 16,189 | |||||||
Furniture, fixtures and office equipment | 1,491 | 1,047 | |||||||
Leasehold improvements | 2,994 | 830 | |||||||
30,809 | 19,600 | ||||||||
Accumulated depreciation | (15,613 | ) | (10,888 | ) | |||||
$ | 15,196 | $ | 8,712 | ||||||
Schedule of Finite-Lived Intangible Assets | The estimated useful lives of the Company’s intangible assets are as follows: | ||||||||
Years | |||||||||
Developed technology | 3 to 5 | ||||||||
Non-compete agreements | 2 to 3 | ||||||||
Customer relationships | 2.5 | ||||||||
Other intangible assets | 0.5 to 1.5 | ||||||||
Details of the Company’s intangible assets were as follows: | |||||||||
31-Dec-14 | 31-Dec-13 | ||||||||
(in thousands) | |||||||||
Amortizable intangible assets: | |||||||||
Developed technology | $ | 13,176 | $ | 2,560 | |||||
Non-compete agreements | 490 | 610 | |||||||
Customer relationships and other intangible assets | 3,333 | 130 | |||||||
16,999 | 3,300 | ||||||||
Accumulated amortization—developed technology | (2,704 | ) | (2,177 | ) | |||||
Accumulated amortization—non-compete agreements | (32 | ) | (483 | ) | |||||
Accumulated amortization—customer relationships and other intangible assets | (173 | ) | (130 | ) | |||||
Total accumulated amortization—intangible assets | (2,909 | ) | (2,790 | ) | |||||
Total identifiable intangible assets, net | $ | 14,090 | $ | 510 | |||||
Net_Loss_Per_Share_Attributabl1
Net Loss Per Share Attributable to Common Stockholders (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||
Schedule of Earnings Per Share, Basic and Diluted | The following table presents the basic and diluted net loss per share attributable to common stockholders: | ||||||||||||
Year Ended | |||||||||||||
31-Dec-14 | 31-Dec-13 | 31-Dec-12 | |||||||||||
(In thousands, except per share data) | |||||||||||||
Net loss attributable to common stockholders | $ | (19,789 | ) | $ | (13,493 | ) | $ | (6,617 | ) | ||||
Weighted-average common shares outstanding | 29,921 | 11,540 | 11,179 | ||||||||||
Weighted-average unvested restricted shares | (1,704 | ) | (52 | ) | (83 | ) | |||||||
Weighted-average common shares outstanding used to compute net loss per share attributable to common stockholders | 28,217 | 11,488 | 11,096 | ||||||||||
Basic and diluted net loss per share attributable to common stockholders | $ | (0.70 | ) | $ | (1.17 | ) | $ | (0.60 | ) | ||||
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following shares have been excluded from the calculation of diluted net loss per share attributable to common stockholders for each period presented because they are anti-dilutive: | ||||||||||||
31-Dec-14 | 31-Dec-13 | 31-Dec-12 | |||||||||||
(in thousands) | |||||||||||||
Options to purchase common stock | 8,113 | 8,360 | 5,771 | ||||||||||
Unvested restricted stock awards | 1,750 | — | 135 | ||||||||||
Unvested restricted stock units | 845 | — | — | ||||||||||
Shares held in escrow | 125 | — | — | ||||||||||
Conversion of convertible preferred stock | — | 14,410 | 14,410 | ||||||||||
Conversion of preferred stock warrants | — | 436 | 436 | ||||||||||
Total shares excluded from net loss per share attributable to common stockholders | 10,833 | 23,206 | 20,752 | ||||||||||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Property, Plant and Equipment | The estimated useful lives of the Company’s property and equipment are as follows: | ||||||||
Years | |||||||||
Purchased and internally developed software | 3 | ||||||||
Computer equipment and network hardware | 3 | ||||||||
Furniture, fixtures and office equipment | 5 to 7 | ||||||||
Leasehold improvements | Shorter of useful | ||||||||
life or life of lease | |||||||||
Computer equipment under capital leases | Shorter of useful | ||||||||
life or life of lease | |||||||||
Major classes of property and equipment were as follows: | |||||||||
31-Dec-14 | 31-Dec-13 | ||||||||
(in thousands) | |||||||||
Purchased software | $ | 1,651 | $ | 1,534 | |||||
Computer equipment and network hardware | 24,673 | 16,189 | |||||||
Furniture, fixtures and office equipment | 1,491 | 1,047 | |||||||
Leasehold improvements | 2,994 | 830 | |||||||
30,809 | 19,600 | ||||||||
Accumulated depreciation | (15,613 | ) | (10,888 | ) | |||||
$ | 15,196 | $ | 8,712 | ||||||
Internal_Use_Software_Developm1
Internal Use Software Development Costs (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Research and Development [Abstract] | |||||||||
Schedule Of Internal Use Software Costs | Internal use software development costs were as follows: | ||||||||
31-Dec-14 | 31-Dec-13 | ||||||||
(in thousands) | |||||||||
Internal use software development costs, gross | $ | 20,926 | $ | 12,656 | |||||
Accumulated amortization | (9,425 | ) | (5,452 | ) | |||||
Internal use software development costs, net | $ | 11,501 | $ | 7,204 | |||||
Business_Combinations_Tables
Business Combinations (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Business Combinations [Abstract] | |||||||||
Schedule of Business Acquisitions, by Acquisition | The Company’s allocation of the total purchase considerations is summarized below (in thousands): | ||||||||
Cash paid | $ | 1,750 | |||||||
Common shares | 1,237 | ||||||||
Total purchase consideration | $ | 2,987 | |||||||
Other assets, including cash acquired of $9 | $ | 52 | |||||||
Intangible assets | 1,550 | ||||||||
Goodwill | 1,391 | ||||||||
Other liabilities | (6 | ) | |||||||
Net assets acquired | $ | 2,987 | |||||||
The Company’s allocation of the total purchase considerations is summarized below (in thousands): | |||||||||
Cash purchase consideration (excluding $0.7 million tied to continued employment) | $ | 4,651 | |||||||
Other assets, including cash acquired of $0.1 million | 737 | ||||||||
Intangible assets | 2,300 | ||||||||
Goodwill | 3,021 | ||||||||
Other liabilities | (1,407 | ) | |||||||
Net assets acquired | $ | 4,651 | |||||||
The total purchase consideration and the allocation of the total purchase consideration to assets acquired and liabilities assumed is summarized below (in thousands): | |||||||||
Fair value of common stock | $ | 11,200 | |||||||
Fair value of contingent consideration | 11,382 | ||||||||
Fair value attributed to pre-acquisition stock options exchanged | 2,142 | ||||||||
Total purchase consideration, including contingent consideration | 24,724 | ||||||||
Other assets, including cash acquired of $0.6 million | 1,521 | ||||||||
Intangible assets | 12,193 | ||||||||
Goodwill | 11,778 | ||||||||
Other liabilities | (768 | ) | |||||||
Net assets acquired | $ | 24,724 | |||||||
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination | The following table summarizes the components of the acquired intangible assets and estimated useful lives (in thousands, except for estimated useful life): | ||||||||
Estimated Useful Life | |||||||||
Technology | $ | 1,360 | 3.0 years | ||||||
Customer relationships | 450 | 2.5 years | |||||||
Non-compete agreements | 490 | 3.0 years | |||||||
Total intangible assets acquired | $ | 2,300 | |||||||
The following table summarizes the components of the acquired intangible assets and estimated useful lives (in thousands, except for estimated useful life): | |||||||||
Estimated Useful Life | |||||||||
Technology | $ | 9,310 | 5.0 years | ||||||
Customer relationships | 2,880 | 2.5 years | |||||||
Trademarks | 3 | 0.5 years | |||||||
Total intangible assets acquired | $ | 12,193 | |||||||
Business Acquisition, Pro Forma Information | |||||||||
Year Ended | Year Ended | ||||||||
December 31, 2014 | December 31, 2013 | ||||||||
(in thousands) | |||||||||
Pro forma revenues | $ | 125,834 | $ | 84,249 | |||||
Pro forma net loss | $ | (27,659 | ) | $ | (23,419 | ) | |||
Year Ended | |||||||||
December 31, 2012 | |||||||||
(in thousands) | |||||||||
Pro forma revenues | $ | 57,165 | |||||||
Pro forma net loss | $ | (2,919 | ) |
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||
Schedule of Goodwill | Details of the Company’s goodwill were as follows: | |||||||||||
Year Ended | ||||||||||||
December 31, 2014 | December 31, 2013 | December 31, 2012 | ||||||||||
(in thousands) | ||||||||||||
Beginning balance | $ | 1,491 | $ | 1,491 | $ | 100 | ||||||
Additions from the acquisition of iSocket | 11,778 | — | — | |||||||||
Additions from the acquisition of Shiny | 3,021 | — | — | |||||||||
Additions from the acquisition of MobSmith | — | — | 1,391 | |||||||||
Ending balance | $ | 16,290 | $ | 1,491 | $ | 1,491 | ||||||
Schedule of Finite-Lived Intangible Assets | The estimated useful lives of the Company’s intangible assets are as follows: | |||||||||||
Years | ||||||||||||
Developed technology | 3 to 5 | |||||||||||
Non-compete agreements | 2 to 3 | |||||||||||
Customer relationships | 2.5 | |||||||||||
Other intangible assets | 0.5 to 1.5 | |||||||||||
Details of the Company’s intangible assets were as follows: | ||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||
(in thousands) | ||||||||||||
Amortizable intangible assets: | ||||||||||||
Developed technology | $ | 13,176 | $ | 2,560 | ||||||||
Non-compete agreements | 490 | 610 | ||||||||||
Customer relationships and other intangible assets | 3,333 | 130 | ||||||||||
16,999 | 3,300 | |||||||||||
Accumulated amortization—developed technology | (2,704 | ) | (2,177 | ) | ||||||||
Accumulated amortization—non-compete agreements | (32 | ) | (483 | ) | ||||||||
Accumulated amortization—customer relationships and other intangible assets | (173 | ) | (130 | ) | ||||||||
Total accumulated amortization—intangible assets | (2,909 | ) | (2,790 | ) | ||||||||
Total identifiable intangible assets, net | $ | 14,090 | $ | 510 | ||||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | As of December 31, 2014, the estimated remaining amortization expense associated with the Company’s intangible assets for each of the next five fiscal years was as follows: | |||||||||||
Fiscal Year | Amount | |||||||||||
(in thousands) | ||||||||||||
2015 | $ | 3,925 | ||||||||||
2016 | 3,811 | |||||||||||
2017 | 2,852 | |||||||||||
2018 | 1,862 | |||||||||||
2019 | 1,640 | |||||||||||
Total | $ | 14,090 | ||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Fair Value, Assets Measured on Recurring Basis | The table below sets forth a summary of financial instruments that are measured at fair value on a recurring basis at December 31, 2014: | ||||||||||||||||
31-Dec-14 | Fair Value Measurements at Reporting Date Using | ||||||||||||||||
Quoted Prices in | Significant Other | Significant | |||||||||||||||
Active Markets for | Observable | Unobservable | |||||||||||||||
Identical Assets | Inputs (Level 2) | Inputs (Level 3) | |||||||||||||||
(Level 1) | |||||||||||||||||
(in thousands) | |||||||||||||||||
Cash equivalents | $ | 55,963 | $ | 55,963 | $ | — | $ | — | |||||||||
Contingent consideration liability | $ | 11,448 | $ | — | $ | — | $ | 11,448 | |||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The table below sets forth a summary of financial instruments that are measured at fair value on a recurring basis at December 31, 2013: | ||||||||||||||||
31-Dec-13 | Fair Value Measurements at Reporting Date Using | ||||||||||||||||
Quoted Prices in | Significant Other | Significant | |||||||||||||||
Active Markets for | Observable | Unobservable | |||||||||||||||
Identical Assets | Inputs (Level 2) | Inputs (Level 3) | |||||||||||||||
(Level 1) | |||||||||||||||||
(in thousands) | |||||||||||||||||
Convertible preferred stock warrant liability | $ | 5,451 | $ | — | $ | — | $ | 5,451 | |||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The Company’s preferred stock warrants are recorded at fair value and were determined to be Level 3 fair value items. The changes in the fair value of preferred stock warrants are summarized below: | ||||||||||||||||
Year Ended | |||||||||||||||||
31-Dec-14 | 31-Dec-13 | 31-Dec-12 | |||||||||||||||
(in thousands) | |||||||||||||||||
Beginning balance | $ | 5,451 | $ | 1,330 | $ | 815 | |||||||||||
Change in value of preferred stock warrants recorded in other expense, net | 732 | 4,121 | 515 | ||||||||||||||
Net exercise of preferred stock warrant and conversion of preferred stock warrant to common stock warrant | (6,183 | ) | — | — | |||||||||||||
Ending balance | $ | — | $ | 5,451 | $ | 1,330 | |||||||||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques | The Company determined the fair value of the convertible preferred stock warrants utilizing the Black-Scholes model with the following weighted-average assumptions: | ||||||||||||||||
Series B December 31, | Series B December 31, | Series C | Series C | ||||||||||||||
2013 | 2012 | December 31, | December 31, | ||||||||||||||
2013 | 2012 | ||||||||||||||||
Risk-free interest rate | 0.18 | % | 0.97 | % | 0.13 | % | 0.16 | % | |||||||||
Expected term (in years) | 0.69 | 6.17 | 0.5 | 1 | |||||||||||||
Estimated dividend yield | 2 | % | 8 | % | 2 | % | 4.8 | % | |||||||||
Weighted-average estimated volatility | 64 | % | 60 | % | 63 | % | 46 | % | |||||||||
Fair value (in thousands) | $ | 173 | $ | 34 | $ | 5,278 | $ | 1,296 | |||||||||
Accounts_Payable_and_Accrued_E1
Accounts Payable and Accrued Expenses (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Payables and Accruals [Abstract] | ||||||||
Schedule of Accounts Payable and Accrued Liabilities | Accounts payable and accrued expenses included the following: | |||||||
31-Dec-14 | 31-Dec-13 | |||||||
(in thousands) | ||||||||
Accounts payable—seller | $ | 138,366 | $ | 111,078 | ||||
Accounts payable—trade | 5,350 | 4,136 | ||||||
Accrued employee-related payables | 7,305 | 4,984 | ||||||
$ | 151,021 | $ | 120,198 | |||||
Debt_and_Capital_Lease_Arrange1
Debt and Capital Lease Arrangements (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Schedule of Debt | Debt and capital lease arrangements consisted of the following: | |||||||
31-Dec-14 | 31-Dec-13 | |||||||
(in thousands) | ||||||||
Secured debt: | ||||||||
Line of credit | $ | — | $ | 3,788 | ||||
Capital lease obligations | 105 | 393 | ||||||
$ | 105 | $ | 4,181 | |||||
Capitalization_Tables
Capitalization (Tables) | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Equity [Abstract] | |||||||||||||||
Temporary Equity | At December 31, 2013, the Company’s outstanding convertible preferred stock consisted of the following: | ||||||||||||||
31-Dec-13 | |||||||||||||||
Shares | Shares | Carrying | Liquidation | ||||||||||||
Authorized | Outstanding | Values | Preference | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Series A | 6,154,000 | 6,154,000 | $ | 4,000 | $ | 6,118 | |||||||||
Series B | 13,588,160 | 13,562,986 | 21,087 | 30,754 | |||||||||||
Series C | 4,765,173 | 3,919,306 | 9,484 | 12,779 | |||||||||||
Series D | 5,184,191 | 5,184,189 | 18,000 | 23,121 | |||||||||||
Total | 29,691,524 | 28,820,481 | $ | 52,571 | $ | 72,772 | |||||||||
The original issue price and conversion price of the each series of preferred stock were as follows: | |||||||||||||||
Original Issue | Conversion Price | ||||||||||||||
Price per share | per share | ||||||||||||||
Series A | $ | 0.65 | $ | 1.3 | |||||||||||
Series B | $ | 1.55556 | $ | 3.11112 | |||||||||||
Series C | $ | 2.42729 | $ | 4.85458 | |||||||||||
Series D | $ | 3.55603 | $ | 7.11206 | |||||||||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity | A summary of stock option activity for the year ended December 31, 2014 is as follows: | ||||||||||||
Shares Under Option | Weighted- Average Exercise Price | Weighted- Average Contractual Life | Aggregate Intrinsic Value | ||||||||||
(in thousands) | (in thousands) | ||||||||||||
Outstanding at December 31, 2013 | 8,360 | $ | 6.13 | ||||||||||
Granted | 1,979 | $ | 12.47 | ||||||||||
Exercised | (1,433 | ) | $ | 3.26 | |||||||||
Canceled | (793 | ) | $ | 7.49 | |||||||||
Outstanding at December 31, 2014 | 8,113 | $ | 8.05 | 8.06 years | $ | 65,628 | |||||||
Vested and expected to vest December 31, 2014 | 7,339 | $ | 7.96 | 8.03 years | $ | 60,057 | |||||||
Exercisable at December 31, 2014 | 4,042 | $ | 5.9 | 7.42 years | $ | 41,397 | |||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The Company estimates the fair value of stock options that contain service and/or performance conditions using the Black-Scholes option pricing model. The weighted-average input assumptions used by the Company were as follows: | ||||||||||||
Year Ended | |||||||||||||
December 31, 2014 | December 31, 2013 | December 31, 2012 | |||||||||||
Expected term (in years) | 5.7 | 6 | 5.8 | ||||||||||
Risk-free interest rate | 1.75 | % | 1.28 | % | 0.94 | % | |||||||
Expected volatility | 51 | % | 58 | % | 59 | % | |||||||
Dividend yield | — | % | — | % | — | % | |||||||
Nonvested Restricted Stock Shares Activity | A summary of restricted stock activity for the year ended December 31, 2014 is as follows: | ||||||||||||
Number of Shares | |||||||||||||
(in thousands) | |||||||||||||
Nonvested shares of restricted stock outstanding at December 31, 2013 | — | ||||||||||||
Granted | 2,200 | ||||||||||||
Canceled | (32 | ) | |||||||||||
Vested | (418 | ) | |||||||||||
Nonvested shares of restricted stock outstanding at December 31, 2014 | 1,750 | ||||||||||||
Schedule of Nonvested Restricted Stock Units Activity | A summary of restricted stock unit activity for the year ended December 31, 2014 is as follows: | ||||||||||||
Number of Shares | |||||||||||||
(in thousands) | |||||||||||||
Nonvested shares of restricted stock units outstanding at December 31, 2013 | — | ||||||||||||
Granted | 852 | ||||||||||||
Canceled | (3 | ) | |||||||||||
Vested | (4 | ) | |||||||||||
Nonvested shares of restricted stock units outstanding at December 31, 2014 | 845 | ||||||||||||
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan | Total stock-based compensation expense recorded in the consolidated statements of operations was as follows: | ||||||||||||
Year Ended | |||||||||||||
December 31, 2014 | December 31, 2013 | December 31, 2012 | |||||||||||
(in thousands) | |||||||||||||
Cost of revenue | $ | 166 | $ | 87 | $ | 78 | |||||||
Selling and marketing | 3,217 | 1,105 | 1,039 | ||||||||||
Technology and development | 2,228 | 1,645 | 828 | ||||||||||
General and administrative | 18,235 | 3,515 | 1,099 | ||||||||||
Total stock-based compensation | $ | 23,846 | $ | 6,352 | $ | 3,044 | |||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Schedule of Income before Income Tax, Domestic and Foreign | The following are the domestic and foreign components of the Company’s loss before income taxes for the years ended December 31, 2014, 2013, and 2012: | ||||||||||||
Year Ended | Year Ended | Year Ended | |||||||||||
December 31, 2014 | December 31, 2013 | December 31, 2012 | |||||||||||
(in thousands) | |||||||||||||
Domestic | $ | (19,081 | ) | $ | (9,535 | ) | $ | (2,486 | ) | ||||
International | 580 | 533 | 258 | ||||||||||
Loss before income taxes | $ | (18,501 | ) | $ | (9,002 | ) | $ | (2,228 | ) | ||||
Schedule of Components of Income Tax Expense (Benefit) | The following are the components of the provision for income taxes for the years ended December 31, 2014, 2013 and 2012: | ||||||||||||
Year Ended | Year Ended | Year Ended | |||||||||||
December 31, 2014 | December 31, 2013 | December 31, 2012 | |||||||||||
(in thousands) | |||||||||||||
Current: | |||||||||||||
Federal | $ | — | $ | — | $ | — | |||||||
State | 16 | 58 | 19 | ||||||||||
Foreign | 308 | 189 | 135 | ||||||||||
Total current provision | 324 | 247 | 154 | ||||||||||
Deferred: | |||||||||||||
Federal | (10 | ) | 9 | 1 | |||||||||
State | (1 | ) | 1 | — | |||||||||
Foreign | (141 | ) | (10 | ) | (21 | ) | |||||||
Total deferred benefit | (152 | ) | — | (20 | ) | ||||||||
Total provision for income taxes | $ | 172 | $ | 247 | $ | 134 | |||||||
Schedule of Effective Income Tax Rate Reconciliation | Set forth below is a reconciliation of the components that caused the Company’s provision for income taxes to differ from amounts computed by applying the U.S. Federal statutory rate of 34% for the years ended December 31, 2014, 2013, and 2012: | ||||||||||||
Year Ended December 31, 2014 | Year Ended December 31, 2013 | Year Ended December 31, 2012 | |||||||||||
U.S. federal statutory income tax rate | 34 | % | 34 | % | 34 | % | |||||||
State income taxes, net of federal benefit | (0.1 | )% | (0.4 | )% | (0.6 | )% | |||||||
Foreign income at other than U.S. rates | 0.8 | % | — | % | (1.2 | )% | |||||||
Stock-based compensation expense | (4.4 | )% | (10.0 | )% | (29.7 | )% | |||||||
Meals and entertainment | (1.7 | )% | (1.3 | )% | (3.4 | )% | |||||||
Acquisition and related items | (0.1 | )% | — | % | (1.0 | )% | |||||||
Non-deductible gifts | (0.1 | )% | (0.2 | )% | (2.0 | )% | |||||||
Research and development tax credits | 4.7 | % | 5.6 | % | 15.6 | % | |||||||
Other permanent items | (1.8 | )% | (0.5 | )% | (0.7 | )% | |||||||
Change in valuation allowance | (32.2 | )% | (29.9 | )% | (17.0 | )% | |||||||
Effective income tax rate | (0.9 | )% | (2.7 | )% | (6.0 | )% | |||||||
Schedule of Deferred Tax Assets and Liabilities | Set forth below are the tax effects of temporary differences that give rise to a significant portion of the deferred tax assets and deferred tax liabilities as of December 31, 2014 and 2013: | ||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||
(in thousands) | |||||||||||||
Deferred Tax Assets: | |||||||||||||
Accrued liabilities | $ | 649 | $ | 577 | |||||||||
Intangible assets | — | 1,416 | |||||||||||
Stock-based compensation | 6,401 | 1,762 | |||||||||||
Net operating loss carryovers | 23,241 | 15,018 | |||||||||||
Research tax credit carryovers | 4,596 | 3,176 | |||||||||||
Other | 1,357 | 2,760 | |||||||||||
Total deferred tax assets | 36,244 | 24,709 | |||||||||||
Less valuation allowance | (32,481 | ) | (23,963 | ) | |||||||||
Deferred tax assets, net of valuation allowance | 3,763 | 746 | |||||||||||
Deferred Tax Liabilities: | |||||||||||||
Fixed assets | (777 | ) | (689 | ) | |||||||||
Intangible assets | (3,036 | ) | — | ||||||||||
Other | — | (11 | ) | ||||||||||
Total deferred tax liabilities | (3,813 | ) | (700 | ) | |||||||||
Net deferred tax assets | $ | (50 | ) | $ | 46 | ||||||||
Schedule of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns Roll Forward | The following table summarizes the activity related to the unrecognized tax benefits (in thousands): | ||||||||||||
Amount | |||||||||||||
(in thousands) | |||||||||||||
Balance at January 1, 2012 | $ | 788 | |||||||||||
Increases related to current year tax positions | 279 | ||||||||||||
Balance at December 31, 2012 | 1,067 | ||||||||||||
Increases related to current year tax positions | 408 | ||||||||||||
Decreases related to prior year tax positions | (21 | ) | |||||||||||
Balance as of December 31, 2013 | 1,454 | ||||||||||||
Increases related to current year tax positions | 679 | ||||||||||||
Decreases related to prior year tax positions | (2 | ) | |||||||||||
Balance as of December 31, 2014 | $ | 2,131 | |||||||||||
Geographic_Information_Tables
Geographic Information (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Segment Reporting [Abstract] | |||||||||
Long-lived Assets by Geographic Areas | The Company’s property and equipment, net by geographical region were as follows: | ||||||||
31-Dec-14 | 31-Dec-13 | ||||||||
(in thousands) | |||||||||
United States | $ | 12,680 | $ | 7,388 | |||||
Germany | 1,449 | — | |||||||
Netherlands | 712 | 864 | |||||||
Other international | 355 | 460 | |||||||
$ | 15,196 | $ | 8,712 | ||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
Schedule of Future Minimum Rental Payments for Operating Leases | As of December 31, 2014 the Company’s non-cancelable minimum operating lease commitments were as follows: | |||
Fiscal Year | Amount | |||
(in thousands) | ||||
2015 | $ | 6,197 | ||
2016 | 3,135 | |||
2017 | 1,847 | |||
2018 | 1,052 | |||
2019 | 497 | |||
Thereafter | 608 | |||
Total | $ | 13,336 | ||
Nature_of_Operations_Details
Nature of Operations (Details) (Common Stock) | 0 Months Ended | 12 Months Ended |
Apr. 07, 2014 | Dec. 31, 2014 | |
Common Stock | ||
Class of Stock [Line Items] | ||
Initial public offering, shares sold during IPO | 6,432,445 | 6,432,000 |
Initial public offering, shares sold by existing stockholders | 1,354,199 |
Basis_of_Presentation_and_Summ3
Basis of Presentation and Summary of Significant Accounting Policies (Narrative) (Details) (USD $) | 12 Months Ended | 0 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 18, 2014 | Apr. 07, 2014 | Dec. 31, 2011 | |
segment | ||||||
Accounting Policies [Abstract] | ||||||
Number of operating segments | 1 | |||||
Stock-based compensation award requisite service period | 4 years | |||||
Tax benefit from compensation expense | $0 | $0 | $0 | |||
Dividend yield | 0.00% | |||||
Cash and cash equivalents | 97,196,000 | 29,956,000 | 21,616,000 | 16,252,000 | ||
Restricted cash included in prepaid expenses and other current assets | 400,000 | 400,000 | ||||
Restricted cash included in other assets, non-current | 1,000,000 | 1,300,000 | ||||
Allowance for doubtful accounts | 300,000 | 700,000 | ||||
Provision for doubtful accounts | 200,000 | 1,000,000 | ||||
Allowance for doubtful accounts, write-offs | 600,000 | 400,000 | ||||
Class of Stock [Line Items] | ||||||
Foreign currency transaction gain (loss) | $1,119,000 | ($728,000) | ($171,000) | |||
Common Stock | ||||||
Class of Stock [Line Items] | ||||||
Reverse stock split, conversion ratio | 0.5 | |||||
Common Class A | ||||||
Class of Stock [Line Items] | ||||||
Reverse stock split, conversion ratio | 0.5 | |||||
Conversion of stock, shares converted | 1 | |||||
Credit Concentration Risk | Accounts Receivable | ||||||
Concentration Risk [Line Items] | ||||||
Concentration risk, number of buyers | 2 | 2 | ||||
Credit Concentration Risk | Accounts Receivable | Customer 1 | ||||||
Concentration Risk [Line Items] | ||||||
Concentration risk, percentage | 15.00% | 13.00% | ||||
Credit Concentration Risk | Accounts Receivable | Customer 2 | ||||||
Concentration Risk [Line Items] | ||||||
Concentration risk, percentage | 11.00% | 10.00% | ||||
Supplier Concentration Risk | Accounts Payable | ||||||
Concentration Risk [Line Items] | ||||||
Concentration risk, percentage | 14.00% |
Basis_of_Presentation_and_Summ4
Basis of Presentation and Summary of Significant Accounting Policies (Property and Equipment, net) (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Purchased and internally developed software | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Computer equipment and network hardware | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Furniture, fixtures and office equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Furniture, fixtures and office equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 7 years |
Basis_of_Presentation_and_Summ5
Basis of Presentation and Summary of Significant Accounting Policies (Intangible Assets) (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Developed technology | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 3 years |
Developed technology | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 5 years |
Non-compete agreements | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 2 years |
Non-compete agreements | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 3 years |
Customer relationships | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 2 years 6 months |
Other intangible assets | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 6 months |
Other intangible assets | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 1 year 6 months |
Net_Loss_Per_Share_Attributabl2
Net Loss Per Share Attributable to Common Stockholders (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Earnings Per Share [Abstract] | |||
Net loss attributable to common stockholders | ($19,789) | ($13,493) | ($6,617) |
Weighted-average common shares outstanding (in shares) | 29,921 | 11,540 | 11,179 |
Weighted-average unvested restricted shares (in shares) | -1,704 | -52 | -83 |
Weighted-average common shares outstanding attributable to common stockholders (in shares) | 28,217 | 11,488 | 11,096 |
Basic and diluted net loss per share attributable to common stockholders (in dollars per share) | ($0.70) | ($1.17) | ($0.60) |
Net_Loss_Per_Share_Attributabl3
Net Loss Per Share Attributable to Common Stockholders (Anti-Dilutive) (Details) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total shares excluded from net loss per share attributable to common stockholders | 10,833 | 23,206 | 20,752 |
Options to purchase common stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total shares excluded from net loss per share attributable to common stockholders | 8,113 | 8,360 | 5,771 |
Unvested restricted stock awards | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total shares excluded from net loss per share attributable to common stockholders | 1,750 | 0 | 135 |
Unvested restricted stock units | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total shares excluded from net loss per share attributable to common stockholders | 845 | 0 | 0 |
Shares held in escrow | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total shares excluded from net loss per share attributable to common stockholders | 125 | 0 | 0 |
Conversion of convertible preferred stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total shares excluded from net loss per share attributable to common stockholders | 0 | 14,410 | 14,410 |
Conversion of preferred stock warrants | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total shares excluded from net loss per share attributable to common stockholders | 0 | 436 | 436 |
Net_Loss_Per_Share_Attributabl4
Net Loss Per Share Attributable to Common Stockholders (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Earnings Per Share [Abstract] | |||
Cumulative preferred stock dividends | ($1,116) | ($4,244) | ($4,255) |
Property_and_Equipment_Details
Property and Equipment (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $30,809 | $19,600 |
Accumulated depreciation | -15,613 | -10,888 |
Property and equipment, net | 15,196 | 8,712 |
Purchased software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 1,651 | 1,534 |
Computer equipment and network hardware | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 24,673 | 16,189 |
Furniture, fixtures and office equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 1,491 | 1,047 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $2,994 | $830 |
Property_and_Equipment_Narrati
Property and Equipment (Narrative) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Property, Plant and Equipment [Line Items] | |||
Impairment of long-lived assets | $0 | $0 | $0 |
Depreciation expense on property and equipment | 6,500,000 | 4,900,000 | 3,900,000 |
Property and equipment under capital leases | 600,000 | 1,300,000 | |
Accumulated depreciation on property and equipment under capital leases | 500,000 | 900,000 | |
Assets Held under Capital Leases | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation expense on property and equipment | $300,000 | $500,000 | $400,000 |
Internal_Use_Software_Developm2
Internal Use Software Development Costs (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Research and Development [Abstract] | ||
Internal use software development costs, gross | $20,926 | $12,656 |
Accumulated amortization | -9,425 | -5,452 |
Internal use software development costs, net | $11,501 | $7,204 |
Internal_Use_Software_Developm3
Internal Use Software Development Costs (Narrative) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Research and Development [Abstract] | |||
Capitalized computer software, additions | $9,400,000 | $4,100,000 | $3,900,000 |
Capitalized computer software, amortization | 5,100,000 | 2,700,000 | 2,000,000 |
Internal use software development costs, write-offs | 700,000 | 200,000 | |
Estimated amortization expense, 2015 | 5,200,000 | ||
Estimated amortization expense, 2016 | 4,000,000 | ||
Estimated amortization expense, 2017 | 2,200,000 | ||
Estimated amortization expense, 2018 | 100,000 | ||
Capitalized computer software, impairments | $0 | $0 | $0 |
Business_Combinations_Narrativ
Business Combinations (Narrative) (Details) (USD $) | 12 Months Ended | 0 Months Ended | 12 Months Ended | |||
Dec. 31, 2014 | Nov. 17, 2014 | Oct. 20, 2014 | 22-May-12 | Dec. 31, 2012 | Dec. 31, 2013 | |
Business Acquisition [Line Items] | ||||||
Threshold trading days | 10 days | |||||
Unrecognized employee stock-based compensation | $17,800,000 | |||||
Total deferred tax assets | 36,244,000 | 24,709,000 | ||||
Deferred tax liabilities, intangible assets | 3,036,000 | 0 | ||||
iSocket | ||||||
Business Acquisition [Line Items] | ||||||
Fair value of common stock | 11,200,000 | |||||
Indemnification assets, shares held in escrow | 125,116 | |||||
Contingent consideration arrangements, range of outcomes, value, high | 12,000,000 | |||||
Discount rate | 4.80% | |||||
Fair value of stock options exchanged | 3,100,000 | |||||
Fair value attributed to pre-acquisition stock options exchanged | 2,142,000 | |||||
Unrecognized employee stock-based compensation | 1,000,000 | |||||
Total deferred tax assets | 6,400,000 | |||||
Deferred tax liabilities, intangible assets | 4,800,000 | |||||
Valuation allowance, available to reduce income tax expense | 1,600,000 | |||||
Contingent consideration liability | 11,382,000 | |||||
iSocket | General and Administrative Expense | ||||||
Business Acquisition [Line Items] | ||||||
Acquisition related costs | 400,000 | |||||
iSocket | Common Stock | ||||||
Business Acquisition [Line Items] | ||||||
Equity interest issued, number of shares | 840,885 | |||||
Shiny | ||||||
Business Acquisition [Line Items] | ||||||
Goodwill expected to be nondeductible for tax purposes | 200,000 | |||||
Goodwill expected to be deductible for tax purposes | 2,800,000 | |||||
Cash paid | 4,651,000 | |||||
Contingent consideration liability | 700,000 | |||||
MobSmith | ||||||
Business Acquisition [Line Items] | ||||||
Fair value of common stock | 1,237,000 | |||||
Cash paid | 1,750,000 | |||||
Contingent consideration, fair value of shares issued | 600,000 | |||||
Contingent consideration liability | 800,000 | 300,000 | ||||
MobSmith | General and Administrative Expense | ||||||
Business Acquisition [Line Items] | ||||||
Acquisition related costs | $100,000 | |||||
MobSmith | Common Class A | ||||||
Business Acquisition [Line Items] | ||||||
Equity interest issued, number of shares | 244,738 | |||||
MobSmith | Common Class A | Restricted Stock | ||||||
Business Acquisition [Line Items] | ||||||
Contingent consideration, shares issued | 135,000 |
Business_Combinations_Allocati
Business Combinations (Allocation of Total Purchase Considerations) (Details) (USD $) | 0 Months Ended | ||||||
In Thousands, unless otherwise specified | Nov. 17, 2014 | Oct. 20, 2014 | 22-May-12 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Business Acquisition [Line Items] | |||||||
Goodwill | $16,290 | $1,491 | $1,491 | $100 | |||
iSocket | |||||||
Business Acquisition [Line Items] | |||||||
Fair value of common stock | 11,200 | ||||||
Fair value of contingent consideration | 11,382 | ||||||
Fair value attributed to pre-acquisition stock options exchanged | 2,142 | ||||||
Total purchase consideration, including contingent consideration | 24,724 | ||||||
Other assets, including cash acquired | 1,521 | ||||||
Intangible assets | 12,193 | ||||||
Goodwill | 11,778 | ||||||
Other liabilities | -768 | ||||||
Net assets acquired | 24,724 | ||||||
Cash acquired | 600 | ||||||
Shiny | |||||||
Business Acquisition [Line Items] | |||||||
Cash paid | 4,651 | ||||||
Fair value of contingent consideration | 700 | ||||||
Other assets, including cash acquired | 737 | ||||||
Intangible assets | 2,300 | ||||||
Goodwill | 3,021 | ||||||
Other liabilities | -1,407 | ||||||
Net assets acquired | 4,651 | ||||||
Cash acquired | 100 | ||||||
MobSmith | |||||||
Business Acquisition [Line Items] | |||||||
Cash paid | 1,750 | ||||||
Fair value of common stock | 1,237 | ||||||
Fair value of contingent consideration | 800 | 300 | |||||
Total purchase consideration | 2,987 | ||||||
Other assets, including cash acquired | 52 | ||||||
Intangible assets | 1,550 | ||||||
Goodwill | 1,391 | ||||||
Other liabilities | -6 | ||||||
Net assets acquired | 2,987 | ||||||
Cash acquired | $9 |
Business_Combinations_Acquired
Business Combinations (Acquired Intangible Assets and Estimated Useful Lives) (Details) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | |
In Thousands, unless otherwise specified | Nov. 17, 2014 | Oct. 20, 2014 | Dec. 31, 2014 | 22-May-12 |
iSocket | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Finite-lived intangible assets acquired | $12,193 | |||
iSocket | Developed technology | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Finite-lived intangible assets acquired | 9,310 | |||
Acquired finite-lived intangible assets, weighted average useful life | 5 years | |||
iSocket | Customer relationships | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Finite-lived intangible assets acquired | 2,880 | |||
Acquired finite-lived intangible assets, weighted average useful life | 2 years 6 months | |||
iSocket | Trademarks | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Finite-lived intangible assets acquired | 3 | |||
Acquired finite-lived intangible assets, weighted average useful life | 6 months | |||
Shiny | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Finite-lived intangible assets acquired | 2,300 | |||
Shiny | Developed technology | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Finite-lived intangible assets acquired | 1,360 | |||
Acquired finite-lived intangible assets, weighted average useful life | 3 years | |||
Shiny | Customer relationships | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Finite-lived intangible assets acquired | 450 | |||
Acquired finite-lived intangible assets, weighted average useful life | 2 years 6 months | |||
Shiny | Non-compete agreements | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Finite-lived intangible assets acquired | 490 | |||
Acquired finite-lived intangible assets, weighted average useful life | 3 years | |||
MobSmith | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Acquired finite-lived intangible assets, weighted average useful life | 2 years 6 months | |||
MobSmith | Developed technology | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Finite-lived intangible assets acquired | 800 | |||
MobSmith | Customer relationships | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Finite-lived intangible assets acquired | 100 | |||
MobSmith | Non-compete agreements | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Finite-lived intangible assets acquired | 600 | |||
MobSmith | Trademarks | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Finite-lived intangible assets acquired | $10 |
Business_Combinations_Pro_Form
Business Combinations (Pro Forma Information) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
iSocket, Inc and Shiny Inc | |||
Business Acquisition [Line Items] | |||
Pro forma revenues | $125,834 | $84,249 | |
Pro forma net loss | -27,659 | -23,419 | |
MobSmith | |||
Business Acquisition [Line Items] | |||
Pro forma revenues | 57,165 | ||
Pro forma net loss | ($2,919) |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets (Goodwill) (Details) (USD $) | 12 Months Ended | ||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Nov. 17, 2014 | Oct. 20, 2014 | 22-May-12 |
Goodwill [Roll Forward] | |||||||
Beginning balance | $100 | ||||||
Ending balance | 16,290 | 1,491 | 1,491 | 100 | |||
iSocket | |||||||
Goodwill [Roll Forward] | |||||||
Beginning balance | 11,778 | ||||||
Additions from acquisitions | 11,778 | 0 | 0 | ||||
Ending balance | 11,778 | ||||||
Shiny | |||||||
Goodwill [Roll Forward] | |||||||
Beginning balance | 3,021 | ||||||
Additions from acquisitions | 3,021 | 0 | 0 | ||||
Ending balance | 3,021 | ||||||
MobSmith | |||||||
Goodwill [Roll Forward] | |||||||
Beginning balance | 1,391 | ||||||
Additions from acquisitions | 0 | 0 | 1,391 | ||||
Ending balance | $1,391 |
Goodwill_and_Intangible_Assets3
Goodwill and Intangible Assets (Finite-Lived Intangible Assets) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortizable intangible assets, gross | $16,999 | $3,300 |
Accumulated amortization | -2,909 | -2,790 |
Total | 14,090 | 510 |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortizable intangible assets, gross | 13,176 | 2,560 |
Accumulated amortization | -2,704 | -2,177 |
Non-compete agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortizable intangible assets, gross | 490 | 610 |
Accumulated amortization | -32 | -483 |
Customer relationships and other intangible assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortizable intangible assets, gross | 3,333 | 130 |
Accumulated amortization | ($173) | ($130) |
Goodwill_and_Intangible_Assets4
Goodwill and Intangible Assets (Narrative) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill and Intangible Asset Impairment | $0 | $0 | $0 |
Amortization expense of intangible assets | $900,000 | $900,000 | $1,000,000 |
Goodwill_and_Intangible_Assets5
Goodwill and Intangible Assets (Finite-Lived Intangible Assets, Future Amortization Expense) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2015 | $3,925 | |
2016 | 3,811 | |
2017 | 2,852 | |
2018 | 1,862 | |
2019 | 1,640 | |
Total | $14,090 | $510 |
Fair_Value_Measurements_Financ
Fair Value Measurements (Financial Instruments) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration liability | $11,448 | $0 |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 55,963 | |
Contingent consideration liability | 11,448 | |
Convertible preferred stock warrant liability | 5,451 | |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 55,963 | |
Contingent consideration liability | 0 | |
Convertible preferred stock warrant liability | 0 | |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | |
Contingent consideration liability | 0 | |
Convertible preferred stock warrant liability | 0 | |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | |
Contingent consideration liability | 11,448 | |
Convertible preferred stock warrant liability | $5,451 |
Fair_Value_Measurements_Change
Fair Value Measurements (Change in Fair Value) (Details) (Conversion of preferred stock warrants, USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Conversion of preferred stock warrants | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning balance | $5,451 | $1,330 | $815 |
Change in value of preferred stock warrants recorded in other expense, net | 732 | 4,121 | 515 |
Net exercise of preferred stock warrant and conversion of preferred stock warrant to common stock warrant | -6,183 | 0 | 0 |
Ending balance | $0 | $5,451 | $1,330 |
Fair_Value_Measurements_Weight
Fair Value Measurements (Weighted-Average Assumptions) (Details) (USD $) | 12 Months Ended | 0 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||
Dividend yield | 0.00% | ||
Series B | |||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||
Risk-free interest rate | 0.18% | 0.97% | |
Expected term | 0 years 8 months 9 days | 6 years 2 months | |
Dividend yield | 2.00% | 8.00% | |
Expected volatility | 64.00% | 60.00% | |
Fair value | $173 | $34 | |
Series C | |||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||
Risk-free interest rate | 0.13% | 0.16% | |
Expected term | 0 years 6 months | 1 year | |
Dividend yield | 2.00% | 4.80% | |
Expected volatility | 63.00% | 46.00% | |
Fair value | $5,278 | $1,296 |
Fair_Value_Measurements_Narrat
Fair Value Measurements (Narrative) (Details) (USD $) | 12 Months Ended | 0 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Apr. 07, 2014 | Mar. 18, 2014 | Apr. 01, 2014 | Jun. 23, 2014 | |
Class of Stock [Line Items] | |||||||
Contingent consideration liability | $11,448,000 | $0 | |||||
Contingent consideration accretion | 66,000 | 0 | 0 | ||||
Share price | $15 | ||||||
Change in fair value of preferred stock warrant liabilities | 732,000 | 4,121,000 | 515,000 | ||||
Series C | |||||||
Class of Stock [Line Items] | |||||||
Class of warrant or right, outstanding | 845,867 | 845,867 | |||||
Conversion of convertible preferred stock | |||||||
Class of Stock [Line Items] | |||||||
Class of warrant or right, number of securities called by warrants or rights | 25,174 | 25,174 | |||||
Common Stock | |||||||
Class of Stock [Line Items] | |||||||
Class of warrant or right, number of securities called by warrants or rights | 12,587 | ||||||
Conversion of convertible preferred stock to common stock (in shares) | 286,055 | ||||||
Fair Value, Measurements, Recurring | |||||||
Class of Stock [Line Items] | |||||||
Cash equivalents | 55,963,000 | ||||||
Contingent consideration liability | 11,448,000 | ||||||
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||||||
Class of Stock [Line Items] | |||||||
Cash equivalents | 55,963,000 | ||||||
Contingent consideration liability | 0 | ||||||
Fair Value, Measurements, Nonrecurring | |||||||
Class of Stock [Line Items] | |||||||
Asset impairment charges | $0 | $0 | $0 | ||||
Common Stock | |||||||
Class of Stock [Line Items] | |||||||
Conversion of convertible preferred stock to common stock (in shares) | 14,696,000 | ||||||
Share price | 15 | ||||||
Reverse stock split, conversion ratio | 0.5 |
Accounts_Payable_and_Accrued_E2
(Accounts Payable and Accrued Expenses) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Payables and Accruals [Abstract] | ||
Accounts payable—seller | $138,366 | $111,078 |
Accounts payable—trade | 5,350 | 4,136 |
Accrued employee-related payables | 7,305 | 4,984 |
Accounts payable and accrued expenses | $151,021 | $120,198 |
Accounts_Payable_and_Accrued_E3
Accounts Payable and Accrued Expenses (Narrative) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Payables and Accruals [Abstract] | ||
Accounts Payable, Right to Offset, Current | $0.70 | $0.90 |
Debt_and_Capital_Lease_Arrange2
Debt and Capital Lease Arrangements (Debt and Capital Lease Arrangements) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt Disclosure [Abstract] | ||
Line of credit | $0 | $3,788 |
Capital lease obligations | 105 | 393 |
Debt and Capital Lease Obligations | $105 | $4,181 |
Debt_and_Capital_Lease_Arrange3
Debt and Capital Lease Arrangements (Narrative) (Details) (USD $) | 0 Months Ended | 12 Months Ended | |
Apr. 14, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Line of Credit Facility [Line Items] | |||
Line of credit | $0 | $3,788,000 | |
Silicon Valley Bank | Line of Credit | Revolving Credit Facility | 2011 Loan Agreement | |||
Line of Credit Facility [Line Items] | |||
Line of credit facility, maximum borrowing capacity | 40,000,000 | ||
Debt instrument, minimum net cash balance before increase in variable rate | 1 | ||
Line of credit facility, unused capacity, commitment fee percentage | 0.15% | ||
Debt instrument, covenant, fixed charge coverage ratio, minimum allowed | 1.1 | ||
Debt instrument, covenant, fixed charge coverage ratio, calculation period | 12 months | ||
Line of credit facility, remaining borrowing capacity | 40,000,000 | ||
Line of credit | 0 | ||
Debt instrument, covenant, minimum remaining borrowing capacity threshold, percent | 20.00% | ||
Repayments of lines of credit | $3,800,000 | ||
Debt Instrument, Maturity Date | 27-Sep-18 | ||
Silicon Valley Bank | Line of Credit | Revolving Credit Facility | 2011 Loan Agreement | Prime Rate | Net Cash Balance Exceeding One Dollar, Maintained | |||
Line of Credit Facility [Line Items] | |||
Debt instrument, basis spread on variable rate | 0.00% | ||
Silicon Valley Bank | Line of Credit | Revolving Credit Facility | 2011 Loan Agreement | Prime Rate | Net Cash Balance Exceeding One Dollar, Not Maintained | |||
Line of Credit Facility [Line Items] | |||
Debt instrument, basis spread on variable rate | 1.50% | ||
Silicon Valley Bank | Line of Credit | Revolving Credit Facility | 2011 Loan Agreement | London Interbank Offered Rate (LIBOR) | Net Cash Balance Exceeding One Dollar, Maintained | |||
Line of Credit Facility [Line Items] | |||
Debt instrument, basis spread on variable rate | 2.00% |
Capitalization_Narrative_Detai
Capitalization (Narrative) (Details) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | ||||||
Apr. 07, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Mar. 18, 2014 | Apr. 01, 2014 | Mar. 14, 2014 | Mar. 01, 2009 | Jan. 12, 2010 | Jun. 23, 2014 | |
Class of Stock [Line Items] | |||||||||
Common stock, shares authorized | 500,000,000 | 73,380,126 | 80,608,856 | ||||||
Share price | $15 | ||||||||
Proceeds from Issuance Initial Public Offering | $86,200,000 | ||||||||
Deferred offering costs included in accounts payable and accrued expenses | 3,500,000 | ||||||||
Convertible preferred stock, terms of conversion, proceeds from issuance initial public offering, net of offering costs, minimum | 20,000,000 | ||||||||
Convertible preferred stock, terms of conversion, pre-offering enterprise value, minimum | 250,000,000 | ||||||||
Convertible preferred stock, terms of conversion, holder consent vote, percent, minimum | 75.00% | ||||||||
Number of shares authorized | 15,577,350 | ||||||||
Threshold trading days | 10 days | ||||||||
Common Stock | |||||||||
Class of Stock [Line Items] | |||||||||
Initial public offering, shares sold during IPO | 6,432,445 | 6,432,000 | |||||||
Initial public offering, shares sold during IPO, over-allotment option | 1,015,649 | ||||||||
Initial public offering, shares sold by existing stockholders | 1,354,199 | ||||||||
Share price | $15 | ||||||||
Conversion of convertible preferred stock to common stock (in shares) | 14,696,000 | ||||||||
Reverse stock split, conversion ratio | 0.5 | ||||||||
Contingent consideration liability | 12,000,000 | ||||||||
Conversion of convertible preferred stock | |||||||||
Class of Stock [Line Items] | |||||||||
Class of warrant or right, number of securities called by warrants or rights | 25,174 | 25,174 | |||||||
Number of securities called by each warrant | 25,174 | ||||||||
Series B | |||||||||
Class of Stock [Line Items] | |||||||||
Number of securities called by each warrant | 25,174 | ||||||||
Exercise price of warrants | $1.56 | ||||||||
Series C | |||||||||
Class of Stock [Line Items] | |||||||||
Class of warrant or right, outstanding | 845,867 | 845,867 | |||||||
Number of securities called by each warrant | 845,867 | ||||||||
Exercise price of warrants | $2.43 | ||||||||
Common Stock | |||||||||
Class of Stock [Line Items] | |||||||||
Conversion of convertible preferred stock to common stock (in shares) | 286,055 | ||||||||
Class of warrant or right, number of securities called by warrants or rights | 12,587 | ||||||||
Number of securities called by each warrant | 12,587 | ||||||||
Common Class A | |||||||||
Class of Stock [Line Items] | |||||||||
Common stock, shares authorized | 32,500,000 | ||||||||
Conversion of convertible preferred stock to common stock (in shares) | 14,410,238 | ||||||||
Reverse stock split, conversion ratio | 0.5 | ||||||||
Conversion of stock, shares converted | 1 | ||||||||
Common Class B | |||||||||
Class of Stock [Line Items] | |||||||||
Common stock, shares authorized | 4,190,063 | ||||||||
Common Stock | |||||||||
Class of Stock [Line Items] | |||||||||
Common stock, shares authorized | 500,000,000 | ||||||||
Convertible Preferred Stock | |||||||||
Class of Stock [Line Items] | |||||||||
Temporary equity, shares authorized | 29,691,524 | ||||||||
Temporary equity, amount of preferred dividends in arrears | $19,700,000 | ||||||||
Series A | |||||||||
Class of Stock [Line Items] | |||||||||
Temporary equity, shares authorized | 6,154,000 | ||||||||
Temporary equity, dividend rate, per-dollar-amount | $0.05 | ||||||||
Series B | |||||||||
Class of Stock [Line Items] | |||||||||
Temporary equity, shares authorized | 13,588,160 | ||||||||
Temporary equity, dividend rate, per-dollar-amount | $0.12 | ||||||||
Series C | |||||||||
Class of Stock [Line Items] | |||||||||
Temporary equity, shares authorized | 4,765,173 | ||||||||
Temporary equity, dividend rate, per-dollar-amount | $0.19 | ||||||||
Series D | |||||||||
Class of Stock [Line Items] | |||||||||
Temporary equity, shares authorized | 5,184,191 | ||||||||
Temporary equity, dividend rate, per-dollar-amount | $0.28 | ||||||||
Preferred Stock | |||||||||
Class of Stock [Line Items] | |||||||||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Capitalization_Convertible_Pre
Capitalization (Convertible Preferred Stock) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Apr. 07, 2014 |
In Thousands, except Share data, unless otherwise specified | |||
Temporary Equity [Line Items] | |||
Carrying Values | $0 | $52,571 | |
Conversion of convertible preferred stock | |||
Temporary Equity [Line Items] | |||
Shares Authorized | 29,691,524 | ||
Shares Outstanding | 28,820,481 | ||
Carrying Values | 52,571 | ||
Liquidation Preference | 72,772 | ||
Series A | |||
Temporary Equity [Line Items] | |||
Shares Authorized | 6,154,000 | ||
Shares Outstanding | 6,154,000 | ||
Carrying Values | 4,000 | ||
Liquidation Preference | 6,118 | ||
Original Issue Price per share | $0.65 | ||
Conversion Price per share | $1.30 | ||
Series B | |||
Temporary Equity [Line Items] | |||
Shares Authorized | 13,588,160 | ||
Shares Outstanding | 13,562,986 | ||
Carrying Values | 21,087 | ||
Liquidation Preference | 30,754 | ||
Original Issue Price per share | $1.56 | ||
Conversion Price per share | $3.11 | ||
Series C | |||
Temporary Equity [Line Items] | |||
Shares Authorized | 4,765,173 | ||
Shares Outstanding | 3,919,306 | ||
Carrying Values | 9,484 | ||
Liquidation Preference | 12,779 | ||
Original Issue Price per share | $2.43 | ||
Conversion Price per share | $4.85 | ||
Series D | |||
Temporary Equity [Line Items] | |||
Shares Authorized | 5,184,191 | ||
Shares Outstanding | 5,184,189 | ||
Carrying Values | 18,000 | ||
Liquidation Preference | $23,121 | ||
Original Issue Price per share | $3.56 | ||
Conversion Price per share | $7.11 |
StockBased_Compensation_Detail
Stock-Based Compensation (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting Period | 4 years |
Award Vesting Rights, Percentage | 25.00% |
Number of Shares Authorized | 15,577,350 |
Number of Shares Available for Grant | 2,023,690 |
2014 Stock Incentive Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Evergreen Annual % Increase | 5.00% |
StockBased_Compensation_Stock_
Stock-Based Compensation (Stock Options Outstanding) (Details) (USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Beginning balance | 8,360 |
Granted | 1,979 |
Exercised | -1,433 |
Canceled | -793 |
Ending balance | 8,113 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |
Beginning balance | $6.13 |
Granted | $12.47 |
Exercised | $3.26 |
Canceled | $7.49 |
Ending balance | $8.05 |
Outstanding | 8 years 0 months 22 days |
Outstanding, aggregate intrinsic value | $65,628 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest [Abstract] | |
Vested and expected to vest (in shares) | 7,339 |
Vested and expected to vest (in dollars per share) | $7.96 |
Vested and expected to vest | 8 years 0 months 10 days |
Vested and expected to vest, aggregate intrinsic value | 60,057 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |
Exercisable (in shares) | 4,042 |
Exercisable (in dollars per share) | $5.90 |
Exercisable | 7 years 5 months 3 days |
Exercisable, aggregate intrinsic value | $41,397 |
StockBased_Compensation_Stock_1
Stock-Based Compensation (Stock Options Narrative) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Intrinsic value of options exercised | $18,500,000 | $4,600,000 | $600,000 |
Unrecognized employee stock-based compensation | 17,800,000 | ||
Weighted average grant date fair value | $7.41 | $5.12 | $2.58 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options outstanding | 8,113,000 | 8,360,000 | |
Weighted average exercise price | $8.05 | $6.13 | |
Vesting Period | 4 years | ||
Stock-based compensation expense | 23,846,000 | 6,352,000 | 3,044,000 |
Non-Employee | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options outstanding | 346,986 | 110,024 | |
Weighted average exercise price | $4.42 | $1.86 | |
Vesting Period | 4 years | ||
Stock-based compensation expense | 800,000 | 100,000 | 100,000 |
Certain Employees | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $200,000 | $600,000 | $100,000 |
Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized employee stock-based compensation, period for recognition | 2 years 1 month |
StockBased_Compensation_Valuat
Stock-Based Compensation (Valuation Assumptions) (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 5 years 8 months 5 days | 6 years 0 months 5 days | 5 years 10 months |
Risk-free interest rate | 1.75% | 1.28% | 0.94% |
Expected volatility | 51.00% | 58.00% | 59.00% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Employee Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 0 years 6 months 0 days | ||
Risk-free interest rate | 0.07% | ||
Expected volatility | 54.00% | ||
Dividend yield | 0.00% |
StockBased_Compensation_Restri
Stock-Based Compensation (Restricted Stock Activity) (Details) (Restricted Stock) | 12 Months Ended |
Dec. 31, 2014 | |
Restricted Stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Beginning balance | 0 |
Granted | 2,200,000 |
Canceled | -32,000 |
Vested | -418,000 |
Ending balance | 1,750,000 |
StockBased_Compensation_Restri1
Stock-Based Compensation (Restricted Stock Narrative) (Details) (USD $) | 12 Months Ended | 1 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting Period | 4 years | |||
Stock-based compensation expense | $23,846,000 | $6,352,000 | $3,044,000 | |
Non-Employee | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting Period | 4 years | |||
Stock-based compensation expense | 800,000 | 100,000 | 100,000 | |
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted | 2,200,000 | |||
Grant date fair value | $16.22 | |||
Expected volatility rate, minimum | 50.00% | |||
Expected volatility rate, maximum | 65.00% | |||
Dividend yield | 0.00% | |||
Unrecognized employee stock-based compensation | 16,500,000 | |||
Shares outstanding | 1,750,000 | 0 | ||
Restricted Stock | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected term (in years) | 0 years 8 months 10 days | |||
Restricted Stock | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected term (in years) | 7 years 2 months 15 days | |||
Restricted Stock | Contingent Upon Completion of IPO | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting Period | 1 year 8 months 12 days | |||
Grant date fair value | $13.15 | |||
Restricted Stock | Employee and Certain Executives | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted | 2,200,357 | |||
Restricted Stock | Employee and Certain Executives | Vested over 3.3 years | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted | 1,287,857 | |||
Vesting Period | 3 years 3 months 20 days | |||
Restricted Stock | Certain Executives | Vested over 4.0 years | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted | 632,500 | |||
Vesting Period | 4 years | |||
Restricted Stock | Certain Executives | Contingent Upon Completion of IPO | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted | 280,000 | |||
Restricted Stock | Non-Employee | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares outstanding | 50,000 | |||
Stock-based compensation expense | $400,000 |
StockBased_Compensation_Restri2
Stock-Based Compensation (Restricted Stock Units Activity) (Details) (Restricted Stock Units (RSUs)) | 12 Months Ended |
Dec. 31, 2014 | |
Restricted Stock Units (RSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Beginning balance | 0 |
Granted | 852,000 |
Canceled | -3,000 |
Vested | -4,000 |
Ending balance | 845,000 |
StockBased_Compensation_Restri3
Stock-Based Compensation (Restricted Stock Units Narrative) (Details) (Restricted Stock Units (RSUs), USD $) | 12 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized employee stock-based compensation | $8.30 |
Unrecognized employee stock-based compensation, period for recognition | 3 years 7 months |
Contingent Upon Completion of IPO | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Grant date fair value | $13.22 |
StockBased_Compensation_Employ
Stock-Based Compensation (Employee Stock Purchase Plan) (Details) (USD $) | 12 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Nov. 30, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of Shares Authorized | 15,577,350 | |||
Stock-based compensation expense | $23,846 | $6,352 | $3,044 | |
2014 Employee Stock Purchase Plan | Employee Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Maximum employee subscription rate | 10.00% | |||
Purchase price of common stock, percent | 85.00% | |||
Number of Shares Authorized | 525,000 | |||
Increase in shares authorized, percent of outstanding stock | 1.00% | |||
Stock-based compensation expense | $300 |
StockBased_Compensation_Expens
Stock-Based Compensation (Expense) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $23,846 | $6,352 | $3,044 |
Cost of revenue | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 166 | 87 | 78 |
Selling and marketing | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 3,217 | 1,105 | 1,039 |
Technology and development | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 2,228 | 1,645 | 828 |
General and administrative | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $18,235 | $3,515 | $1,099 |
Income_Taxes_Income_before_Inc
Income Taxes (Income before Income Tax, Domestic and Foreign) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Domestic | ($19,081) | ($9,535) | ($2,486) |
International | 580 | 533 | 258 |
Loss before income taxes | ($18,501) | ($9,002) | ($2,228) |
Income_Taxes_Components_of_Inc
Income Taxes (Components of Income Tax Expense (Benefit)) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current: | |||
Federal | $0 | $0 | $0 |
State | 16 | 58 | 19 |
Foreign | 308 | 189 | 135 |
Total current provision | 324 | 247 | 154 |
Deferred: | |||
Federal | -10 | 9 | 1 |
State | -1 | 1 | 0 |
Foreign | -141 | -10 | -21 |
Total deferred benefit | -152 | 0 | -20 |
Total provision for income taxes | $172 | $247 | $134 |
Income_Taxes_Effective_Income_
Income Taxes (Effective Income Tax Rate Reconciliation) (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal statutory income tax rate | 34.00% | 34.00% | 34.00% |
State income taxes, net of federal benefit | -0.10% | -0.40% | -0.60% |
Foreign income at other than U.S. rates | 0.80% | 0.00% | -1.20% |
Stock-based compensation expense | -4.40% | -10.00% | -29.70% |
Meals and entertainment | -1.70% | -1.30% | -3.40% |
Acquisition and related items | -0.10% | 0.00% | -1.00% |
Non-deductible gifts | -0.10% | -0.20% | -2.00% |
Research and development tax credits | 4.70% | 5.60% | 15.60% |
Other permanent items | -1.80% | -0.50% | -0.70% |
Change in valuation allowance | -32.20% | -29.90% | -17.00% |
Effective income tax rate | -0.90% | -2.70% | -6.00% |
Income_Taxes_Deferred_Tax_Asse
Income Taxes (Deferred Tax Assets and Liabilities) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred Tax Assets: | ||
Accrued liabilities | $649 | $577 |
Intangible assets | 0 | 1,416 |
Stock-based compensation | 6,401 | 1,762 |
Net operating loss carryovers | 23,241 | 15,018 |
Research tax credit carryovers | 4,596 | 3,176 |
Other | 1,357 | 2,760 |
Total deferred tax assets | 36,244 | 24,709 |
Less valuation allowance | -32,481 | -23,963 |
Deferred tax assets, net of valuation allowance | 3,763 | 746 |
Deferred Tax Liabilities: | ||
Fixed assets | -777 | -689 |
Intangible assets | -3,036 | 0 |
Other | 0 | -11 |
Total deferred tax liabilities | -3,813 | -700 |
Net deferred tax assets | ($50) | $46 |
Income_Taxes_Unrecognized_Tax_
Income Taxes (Unrecognized Tax Benefits) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning Balance | $1,454 | $1,067 | $788 |
Increases related to current year tax positions | 679 | 408 | 279 |
Decreases related to prior year tax positions | -2 | -21 | |
Ending Balance | $2,131 | $1,454 | $1,067 |
Income_Taxes_Narrative_Details
Income Taxes (Narrative) (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Nov. 17, 2014 | |
Income Tax Disclosure [Abstract] | ||||
Provision for income taxes | $172,000 | $247,000 | $134,000 | |
Change in valuation allowance | 8,500,000 | 1,100,000 | 1,100,000 | |
Tax Credit Carryforward [Line Items] | ||||
U.S. federal statutory income tax rate | 34.00% | 34.00% | 34.00% | |
Operating Loss Carryforwards [Line Items] | ||||
Unrealized excess tax benefits associated with stock-based compensation | 3,500,000 | |||
Unremitted earnings of the subsidiaries outside of the United States | 1,200,000 | |||
iSocket | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating loss carryforwards | 14,600,000 | |||
Domestic Tax Authority | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating loss carryforwards | 65,400,000 | |||
State and Local Jurisdiction | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating loss carryforwards | 61,500,000 | |||
Research Tax Credit Carryforward | Domestic Tax Authority | ||||
Tax Credit Carryforward [Line Items] | ||||
Tax credit carryforwards | 4,300,000 | |||
Research Tax Credit Carryforward | State and Local Jurisdiction | ||||
Tax Credit Carryforward [Line Items] | ||||
Tax credit carryforwards | $3,400,000 |
Geographic_Information_Details
Geographic Information (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | $15,196 | $8,712 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | 12,680 | 7,388 |
Germany | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | 1,449 | 0 |
Netherlands | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | 712 | 864 |
Other international | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | $355 | $460 |
401K_Savings_Plan_Details
401(K) Savings Plan (Details) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | |
Employer discretionary contribution amount | $0 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Commitments and Contingencies Disclosure [Abstract] | |||
Operating Leases, Rent Expense | $7.60 | $4.70 | $3.60 |
Commitments_and_Contingencies_2
Commitments and Contingencies (Operating Leases, Future Minimum Payments Due) (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | |
2015 | $6,197 |
2016 | 3,135 |
2017 | 1,847 |
2018 | 1,052 |
2019 | 497 |
Thereafter | 608 |
Total | $13,336 |
Commitments_and_Contingencies_3
Commitments and Contingencies (Other Contracts) (Details) | 12 Months Ended | 0 Months Ended | |||
Dec. 31, 2014 | Mar. 18, 2014 | Apr. 07, 2014 | Apr. 01, 2014 | Dec. 31, 2013 | |
Class of Stock [Line Items] | |||||
Acquisition Fee, Percentage of Consideration Due | 2.50% | ||||
Common Stock | |||||
Class of Stock [Line Items] | |||||
Conversion of convertible preferred stock to common stock (in shares) | 14,696,000 | ||||
Reverse stock split, conversion ratio | 0.5 | ||||
Series C | |||||
Class of Stock [Line Items] | |||||
Class of warrant or right, outstanding | 845,867 | 845,867 | |||
Common Stock | |||||
Class of Stock [Line Items] | |||||
Conversion of convertible preferred stock to common stock (in shares) | 286,055 |
Related_Party_Transactions_Det
Related Party Transactions (Details) (Affiliated Entity, USD $) | 12 Months Ended | 1 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 31, 2013 |
Related Party Transaction [Line Items] | ||||
Revenue from related parties | $1.90 | $1.10 | $0.80 | |
Accounts payable and accrued expenses, related parties | 3.2 | 2.9 | ||
Sublease With Related Party | ||||
Related Party Transaction [Line Items] | ||||
Termination notice, term | 1 year | |||
Early termination fee | 1.2 | |||
Tenant improvement allowance | $1 |
Subsequent_Events_Details
Subsequent Events (Details) (Subsequent Event) | 0 Months Ended |
Jan. 01, 2015 | |
2014 Stock Incentive Plan | |
Subsequent Event [Line Items] | |
Increase in shares issuable for share-based compensation plans | 1,859,636 |
2014 Employee Stock Purchase Plan | Employee Stock | |
Subsequent Event [Line Items] | |
Increase in shares issuable for share-based compensation plans | 371,927 |