Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2015 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation |
The Company's equity incentive plans provide for the grant of equity awards, including 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 based upon continued service at varying rates, but generally over four years from issuance with 25% vesting after 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 therein. An aggregate of 3,812,398 shares remained available for issuance at March 31, 2015 under the plans. |
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Stock Options |
A summary of stock option activity for the three months ended March 31, 2015 is as follows: |
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| Shares Under Option | | Weighted- Average Exercise Price | | Weighted- Average Contractual Life | | Aggregate Intrinsic Value |
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| (in thousands) | | | | | | (in thousands) |
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Outstanding at December 31, 2014 | 8,113 | | | $ | 8.05 | | | | | |
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Granted | 130 | | | $ | 17.32 | | | | | |
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Exercised | (773 | ) | | $ | 5.43 | | | | | |
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Canceled | (122 | ) | | $ | 9.61 | | | | | |
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Outstanding at March 31, 2015 | 7,348 | | | $ | 8.47 | | | 7.73 years | | $ | 69,454 | |
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Vested and expected to vest March 31, 2015 | 6,818 | | | $ | 8.27 | | | 7.66 years | | $ | 65,803 | |
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Exercisable at March 31, 2015 | 3,676 | | | $ | 6.31 | | | 6.91 years | | $ | 42,665 | |
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The weighted-average grant date per share fair value of stock options granted in the three months ended March 31, 2015 was $7.89. |
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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: |
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| Three Months Ended | | | | | | | |
| March 31, 2015 | | March 31, 2014 | | | | | | | |
Expected term (in years) | 6 | | | 6 | | | | | | | | |
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Risk-free interest rate | 1.74 | % | | 1.75 | % | | | | | | | |
Expected volatility | 46 | % | | 54 | % | | | | | | | |
Dividend yield | — | % | | — | % | | | | | | | |
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Restricted Stock |
A summary of restricted stock activity for the three months ended March 31, 2015 is as follows: |
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| Number of Shares | | | | | | | | | | |
| (in thousands) | | | | | | | | | | |
Nonvested shares of restricted stock outstanding at December 31, 2014 | 1,750 | | | | | | | | | | | |
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Granted | — | | | | | | | | | | | |
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Canceled | (31 | ) | | | | | | | | | | |
Vested | (28 | ) | | | | | | | | | | |
Nonvested shares of restricted stock outstanding at March 31, 2015 | 1,691 | | | | | | | | | | | |
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Restricted Stock Units |
A summary of restricted stock unit activity for the three months ended March 31, 2015 is as follows: |
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| Number of Shares | | | | | | | | | | |
| (in thousands) | | | | | | | | | | |
Nonvested shares of restricted stock units outstanding at December 31, 2014 | 845 | | | | | | | | | | | |
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Granted | 120 | | | | | | | | | | | |
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Canceled | (15 | ) | | | | | | | | | | |
Vested | — | | | | | | | | | | | |
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Nonvested shares of restricted stock units outstanding at March 31, 2015 | 950 | | | | | | | | | | | |
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The weighted-average grant date value per share of restricted stock units granted in the three months ended March 31, 2015 was $17.17. |
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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 a price per share equal to 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. |
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The Company has reserved 896,927 shares of its common stock for issuance under the ESPP and shares reserved for issuance will increase on 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 the December 31st immediately prior to the date of increase or (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. |
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Stock-Based Compensation Expense |
Total stock-based compensation expense recorded in the consolidated statements of operations was as follows: |
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| Three Months Ended | | | | | |
| March 31, 2015 | | March 31, 2014 | | | | | |
| (in thousands) | | | | | |
Cost of revenue | $ | 42 | | | $ | 31 | | | | | | |
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Sales and marketing | 1,125 | | | 577 | | | | | | |
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Technology and development | 790 | | | 303 | | | | | | |
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General and administrative | 3,541 | | | 1,567 | | | | | | |
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Total stock-based compensation | $ | 5,498 | | | $ | 2,478 | | | | | | |
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