Natera (NTRA) 10-Q 11 Aug 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Jul. 31, 2016
Document and Entity Information
Entity Registrant Name	Natera, Inc.
Entity Central Index Key	1,604,821
Document Type	10-Q
Document Period End Date	Jun. 30, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		51,781,811
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 16,557	$ 28,947
Restricted cash, current portion	1,274	901
Short-term investments	198,647	201,586
Accounts receivable, net of allowance of $1,213 in 2016 and $971 in 2015	6,171	5,862
Inventory	8,893	8,093
Prepaid expenses and other current assets	5,633	5,337
Total current assets	237,175	250,726
Property and equipment, net	19,096	12,710
Restricted cash, long term portion	342	683
Other assets	4,654	1,121
Total assets	261,267	265,240
Current liabilities:
Accounts payable	9,194	7,332
Accrued compensation	9,095	8,552
Other accrued liabilities	23,586	18,708
Deferred revenue	331	144
Short-term debt financing	49,327	42,090
Warrants	3,955	3,649
Total current liabilities	95,488	80,475
Deferred rent	1,964
Total liabilities	97,452	80,475
Commitments and contingencies (Note 6)
Stockholders’ equity:
Common stock	6	5
Additional paid in capital	444,790	436,259
Accumulated deficit	(281,924)	(250,083)
Accumulated other comprehensive income (loss)	943	(1,416)
Total stockholders’ equity	163,815	184,765
Total liabilities and stockholders’ equity	$ 261,267	$ 265,240

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Condensed Consolidated Balance Sheets
Allowances on accounts receivable	$ 1,213	$ 971

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Revenues
Product revenues	$ 51,231	$ 44,519	$ 112,367	$ 91,418
Other revenues	753	568	1,519	1,104
Total revenues	51,984	45,087	113,886	92,522
Cost and expenses
Cost of product revenues	30,973	25,732	63,313	50,575
Research and development	10,299	6,741	19,058	12,371
Selling, general and administrative	33,227	28,086	63,635	51,325
Total cost and expenses	74,499	60,559	146,006	114,271
Loss from operations	(22,515)	(15,472)	(32,120)	(21,749)
Interest Expense	(122)	(1,203)	(237)	(2,213)
Interest expense from changes in the fair value of long-term debt		(322)		(2,122)
Interest and other (expense) income, net	(519)	(2,684)	516	(3,601)
Net loss	(23,156)	(19,681)	(31,841)	(29,685)
Unrealized gain on available-for-sale securities, net of tax	548		2,359
Comprehensive loss	$ (22,608)	$ (19,681)	$ (29,482)	$ (29,685)
Basic and diluted net loss per share (in dollars per share)	$ (0.46)	$ (3.58)	$ (0.63)	$ (5.50)
Weighted-average number of shares used in computing basic and diluted net loss per share	51,445	5,494	50,942	5,393

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Operating Activities
Net loss	$ (31,841)	$ (29,685)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	2,428	2,974
Amortization of premium on investment securities	761
Gain on sales of property and equipment		(5)
Impairment of assets	20
Non-cash interest accrual	237
Gain on investments	(112)
Stock based compensation	5,292	2,740
Loss from changes in fair value of warrants	306	3,925
Loss from change in fair value of long term debt		2,122
Provision for doubtful accounts	479	119
Changes in operating assets and liabilities
Accounts receivable	(789)	549
Inventory	(800)	(3,091)
Prepaid expenses and other current assets	(296)	(2,223)
Restricted cash	(32)	(262)
Other assets	(532)	(337)
Accounts payable	2,150	2,678
Accrued compensation	543	1,031
Other accrued liabilities	(156)	3,683
Deferred revenue	188	(78)
Deferred rent	1,964
Net cash used in operating activities	(20,190)	(15,860)
Investing Activities
Purchases of investments	(30,118)
Proceeds from sale of investments	16,766
Proceeds from maturity of investments	18,000
Proceeds from sale of property and equipment	225
Purchases of property and equipment, net	(7,311)	(6,037)
Net cash used in investing activities	(2,438)	(6,037)
Financing Activities
Proceeds from issuance of common stock, net of issuance costs	970	315
Proceeds from exercise of stock options	2,268
Borrowings under credit facility	8,000
Repayment under credit facility	(1,000)
Proceeds from issuance of preferred stock, net		(27)
Costs paid for loan		(6)
Repayments of equipment financing		(1,170)
Proceeds from collection of officer receivable		192
Deferred offering costs		(2,340)
Net cash provided by (used in) financing activities	10,238	(3,036)
Net decrease in cash	(12,390)	(24,933)
Cash at beginning of period	28,947	87,176
Cash at end of period	$ 16,557	$ 62,243

Description of Business

Description of Business	6 Months Ended
	Jun. 30, 2016
Description of Business
Description of Business	1. Description of Business Natera, Inc. (the "Company") was formed in the state of California as Gene Security Network, LLC in November 2003 and incorporated in the state of Delaware in January 2007 . The Company’s mission is to change the management of genetic disease worldwide . The Company operates a laboratory certified under the Clinical Laboratory Improvement Amendments ("CLIA") providing a host of preconception and prenatal genetic testing services. The Company operates in one segment and has a subsidiary that operates in the state of Texas. The Company's product offerings include its Panorama Non-Invasive Prenatal Test ("NIPT") that screens for chromosomal abnormalities of a fetus typically with a blood draw from the mother ; Horizon Carrier Screening (" Horizon ") to determine carrier status for a large number of severe genetic diseases that could be passed on to the carrier’s children; Spectrum Pre-implantation Genetic Screening ("PGS") and Spectrum Pre-implantation Genetic Diagnosis ("PGD") to analyze chromosomal anomalies or inherited genetic conditions during an in vitro fertilization ("IVF") cycle to select embryos with the highest probability of becoming healthy children; Anora Products of Conception ("POC") test to rapidly and extensively analyze fetal chromosomes to understand the cause of miscarriage; Non-Invasive Paternity Testing ("PAT"), to determine paternity by analyzing the fragments of fetal deoxyribonucleic acid ("DNA " ) in a pregnant mother's blood and a blood sa mple from the alleged father(s), which is marketed and sold exclusively by a partner from whom the Company receives a royalty. All testing is available principally in the United States and Europe . The Company also offers Constellation , a cloud-based software product that allows laboratory customers to gain access through the cloud to the Company’s algorithms and bioinformatics in order to validate and launch tests based on the Company’s technology.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2016
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited interim condensed consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information. In the opinion of management, the unaudited interim condensed consolidated financial information includes only adjustments of a normal recurring nature necessary for a fair presentation of the results of operations, financial position, changes in stockholders’ equity, and cash flows. The results of operations for the three and six months ended June 30, 2016, are not necessarily indicative of the results for the full year or the results for any future periods. The condensed consolidated balance sheet as of December 31, 2015 has been derived from audited financial statements at that date, these financial statements should be read in conjunction with the audited financial statements, and related notes for the year ended December 31, 2015 included in the Company’s Annual Report on Form 10-K filed with the SEC on March 24, 2016. Certain prior year amounts included in computer equipment and capitalized software held for internal use have been reclassified between these accounts in order to conform to the current year presentation. Net income and s tock holders' equity were not affected by these reclassifications. Principles of Consolidation The accompanying condensed consolidated financial statements include all the accounts of the Company and its subsidiary. The Company established a subsidiary that operates in the state of Texas in December 2014 to support the Company’s laboratory and operational functions, which became active in the second quarter of 2015. All intercompany balances and transactions have been eliminated. Use of Estimates The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions about future events that affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities, and reported amounts of revenues and expenses. Significant items subject to such estimates include the allowance for doubtful accounts, accrued liability for potential refund requests, stock-based compensation, the fair value of common stock and fair value of debt accounted for under ASC 815, as well as income tax uncertainties. These estimates and assumptions are based on management's best estimates and judgment. Management regularly evaluates its estimates and assumptions using historical experience and other factors; however, actual results could differ from these estimates and could have an adverse effect on the Company's financial statements. Fair Value The Company discloses the fair value of financial instruments for financial assets and liabilities for which the value is practicable to estimate. Fair value is defined as the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). Prior to repayment, t he Company carried its senior secured term loan and currently carries its warrants at fair value according to the fair value measurement guidance. Cash and Cash Equivalents Cash and cash equivalents consist of cash and money market deposits with financial institutions. Restricted Cash The Company discloses both short-term and long-term restricted cash. Short-term restricted cash consists of $1.1 million, securing the Company’s letter of credit for its corporate headquarters operating lease s which expire in October 2016 and January 2017 and $0.2 million in payments received by certain customers. Long-term restricted cash consists of $0.3 million deposit per credit card terms . Investments Management determines the appropriate classification of securities at the time of purchase and reevaluates such determination at each balance sheet date. The Company generally classifies its entire investment portfolio as available-for-sale. The Company views its available-for-sale portfolio as available for use in current operations. Accordingly, the Company classifies all investments as short-term, even though the stated maturity may be more than one year from the current balance sheet date. Available-for-sale securities are carried at fair value, with unrealized gains and losses reported in accumulated other comprehensive income (loss), which is a separate component of stockholders’ equity. Risk and Uncertainties Financial instruments that potentially subject the Company to credit risk consist of cash, accounts receivable and investments. The Company limits its exposure to credit loss by placing its cash in financial institutions with high credit ratings. The Company's cash may consist of deposits held with banks that may at times exceed federally insured limits. The Company performs evaluations of the relative credit standing of these financial institutions and limits the amount of credit exposure with any one institution. The Company bills third-party payers for certain tests performed. The amount that is ultimately received from the payer for our claim and the timing of such payments are subject to the determination of the payer based on the nature of the test performed and their view of our business practices with respect to collections of plan deductibles and co-payments from patients and other activities. This determination can impact both the amount and timing of when our invoices are collected. Payers may also withhold payments and request refunds of prior payments if we do not perform in accordance with the policies of these payers. The Company performs evaluations of financial conditions for clinics and laboratory partners and generally does not require collateral to support credit sales. For the three and six months ended June 30, 2016 and 2015, there were no customers exceeding 10% of total revenues on an individual basis. As of June 30, 2016, one customer had a receivable balance of approximately 10% of net accounts receivable and as of December 31, 2015 there were no customers who had a balance greater than 10% . Revenue Recognition The Company generally bills an insurance carrier, a clinic or a patient for tests it sells upon delivery of the test result. The Company also bills patients directly for out-of-pocket costs not covered by their insurance carriers representing co-pays and deductibles in accordance with their insurance carrier and health plans. The Company may not get reimbursed for tests completed if the tests are not covered under the insurance carrier’s reimbursement policies or the Company is not a qualified provider to the insurance carrier. For tests performed, where an agreed upon reimbursement rate or fixed fee and a predictable history or likelihood of collections exists, the Company recognizes revenues upon delivery of the test report to the prescribing physician based on the established billing rate less contractual and other adjustments, such as an allowance for doubtful accounts, to arrive at the amount that the Company expects to collect. In all other situations, as the Company does not have a sufficient history of collection and is not able to determine collectability, the Company recognizes revenues when cash is received. From time to time, we receive requests for refunds of payments previously made by insurance carriers. The Company has established an accrued liability for potential refund requests based on its experience. In cases where the Company sells its tests through its laboratory partners, the majority of the laboratory partners bill the patient, clinic, or insurance carrier for the performance of the Company's tests. For tests sold through a limited number of its laboratory partners, the Company bills directly to a patient, clinic or insurance carrier, or a combination of the insurance carrier and patient for the fees. The Company considers its services rendered when it delivers reports of its test results to the laboratory partner, clinic or patient. When the Company has contracted fixed rates for its services and collectability of its revenues is reasonably assured, it recognizes revenues upon delivery of test reports. The fixed fees identified in contracts with laboratory partners change only if a pricing amendment is agreed upon between both parties. For cases in which there is no fixed price established with a laboratory partner, the Company then recognizes revenues from partner distributed tests on a cash basis. Certain of the Company's arrangements include multiple deliverables. For revenue arrangements with multiple deliverables, the Company evaluates each deliverable to determine whether it qualifies as a separate unit of accounting. This determination is based on whether the deliverable has "stand-alone value" to the customer and whether a general right of return exists. The consideration that is fixed or determinable is then allocated to each separate unit of accounting based on the relative selling price of each deliverable. The consideration allocated to each unit of accounting is recognized as the related goods or services are delivered, limited to the consideration that is not contingent upon future deliverables. The Company uses judgment in identifying the deliverables in its arrangements, assessing whether each deliverable is a separate unit of accounting, and in determining the best estimate of selling price for certain deliverables. The Company also uses judgment in determining the period over which the deliverables are recognized in certain of its arrangements. Any amounts received that do not meet the criteria for revenue recognition are recorded as deferred revenue until such criteria are met. The Company receives royalty revenue through the licensing and the provisioning of services to support the use of the Company's proprietary technology with its customer. Royalty revenues are recognized when earned under the terms of the related agreements and are included in Other Revenues in the statements of operations. The Company recognizes revenue from its cloud-based distribution service offering. The Company grants its customers licenses to use the Company’s proprietary intellectual properties and the cloud-based Company software and provides other services to support the use of the Company's proprietary technology with its customers. The Company’s proprietary software is used in connection with the analysis of DNA sequence data in a manner yielding a result indicating the likely presence or absence of full or partial chromosomal abnormalities. The licensees do not have the right to possess the Company’s software, but rather receive the software as a service. The revenues are recognized on an accrual basis (assuming all revenue recognition criteria are met) under the terms of the related agreements and are included in other revenues in the statements of operation. Stock ‑Based Compensation Stock ‑based compensation is related to stock options and restricted stock units (“RSUs”) granted to the Company’s employees and is measured at the grant date based on the fair value of the award. The fair value is recognized as expense over the requisite service period, which is generally the vesting period of the respective awards. No compensation cost is recognized when the requisite service has not been met and the awards are therefore forfeit ed . The Company uses the Black ‑Scholes option ‑pricing model t o estimate the fair value of stock options issued to employees and non-employees. T he measurement of stock-based compensation is subject to periodic adjustments as the underlying equity instruments vest, and the resulting change in value, if any, is recognized in the Company's statements of operations during the period that the related services are rendered. The Black-Scholes option-pricing model requires the input of the Company's expected stock price volatility, the expected life of the awards, a risk-free interest rate, and expected dividends. Determining these assumptions requires significant judgment. The expected term was based on the simplified method and the volatility rate was based on that of publicly traded companies in the DNA sequencing, diagnostics, or personalized medicine industries. When selecting the public companies in these industries to be used in the volatility calculation, companies were selected with comparable characteristics to the Company, including enterprise value and financial leverage. Companies were also selected with historical share price volatility sufficient to meet the expected life of the Company's stock options. The historical volatility data was computed using the daily closing prices for the selected companies' shares during the equivalent period of the calculated expected term of the Company's stock options. The expected life of the non-employee option grants was based on their remaining contractual life at the measurement date. The risk-free interest rate assumption was based on U.S. Treasury instruments with maturities that were consistent with the option's expected life. The expected dividend assumption was based on the Company's history and expectation of dividend payouts. Warrants The Company accounts for warrants to purchase shares of its common stock as a liability at fair value on the balance sheet date because the Company may be obligated to redeem these warrants at some point in the future. The warrants are subject to re - measurement at each balance sheet date, with changes in fair value recognized as a gain or loss from the changes in fair value of the warrants in the statements of operations. The Company will continue to adjust the liability for changes in fair value until such time that the warrants are converted or expire. Capitalized S oftware Held for Internal Use The Company capitalizes costs of software purchased for internal use during the application development stage of a project and amortizes those costs over their estimated useful lives of three years. The net book value of capitalized software held for internal use was $1. 3 million and $0.8 million as of June 30, 2016 and December 31, 2015, respectively. Amortized expense for the three months ended June 30, 2016 and 2015 was $0.2 million and $0.1 million, respectively. Amortized expense for the six months ended June 30, 2016 and 2015 was $0.3 million and $0.1 million, respectively. Accumulated Other Comprehensive Loss Comprehensive loss and its components encompass all changes in equity other than those with stockholders, and include net loss, unrealized gains and losses on available-for-sale marketable securities. Balance at Balance at December 31, Reclassification June 30, 2015 Increase Adjustment 2016 (in thousands) Unrealized (loss) gain on available-for-sale securities, net of tax $ $ $ $ Total accumulated other comprehensive (loss) income, net of tax Net Loss per Share Basic net loss per share is calculated by dividing net loss by the weighted-average shares outstanding during the period, without consideration for potential dilutive shares. Diluted net loss per share is calculated by adjusting the weighted-average shares outstanding for the dilutive effect of potential dilutive shares outstanding for the period, determined using the if-converted method. For purposes of the diluted net loss per share calculation, convertible preferred stock, stock options, convertible notes, unvested shares subject to repurchase, and warrants are considered potential dilutive shares but are excluded from the calculation of diluted net loss per share because their effect would be anti-dilutive. Therefore, basic and diluted net loss per share was the same for all periods presented. Property and Equipment Property and equipment, including purchased and internally developed software, are stated at cost. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets, which are generally three years. Leasehold improvements are amortized using the straight-line method over the estimated useful lives of the assets or the remaining term of the lease, whichever is shorter. The Company periodically reviews the depreciable lives assigned to property and equipment placed in service and change the estimates of useful lives to reflect the results of such reviews. During the second quarter of 2015, the Company increased the depreciable lives of certain sequencing and automation machinery equipment from three years to five years. The effect of this change in estimate for the three and six months ended June 30, 2016 was a decrease in loss from operations and net loss of $0.4 million and $0.8 million, respectively. The effect of this change in estimate was a decrease in net basic and diluted loss per share of $0.01 and $0.02 for the three and six months ended June 30, 2016 , respectively. Recent Accounting Pronouncements From time to time, new accounting pronouncements are issued by the FASB or other standard setting bodies and adopted by the Company as of the specified effective date. Unless otherwise discussed below, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on its financial position or results of operations upon adoption. In August 2014, the Financial Accounting Standards Board issued Accounting Standards Update No. 2014 ‑15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (ASU 2014 ‑15). ASU 2014 ‑15 requires management to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. In doing so, companies will have reduced diversity in the timing and content of footnote disclosures compared to footnote disclosures under today’s guidance. ASU 2014 ‑15 is effective for the Company in the first quarter of 2016 with early adoption permitted. The Company does not believe the impact of adopting ASU 2014 ‑15 on its financial statements will be significant. In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update No. 2014 ‑09, Revenue from Contracts with Customers (ASU 2014 ‑09) to provide guidance on revenue recognition. ASU 2014 ‑09 requires a company to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than under today’s guidance. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. In August 2015, FASB issued ASU 2015-14, which defers the effective date of ASU 2014-09 for all entities by one year. The guidance is effective for the Company in the first quarter of 2018. ASU 2014-09, as amended by ASU 2015-14, is effective for interim or annual periods beginning after December 15, 2017. Early adoption up to the first quarter of 2017 is permitted. Upon adoption, ASU 2014 ‑09 can be applied retrospectively to all periods presented or only to the most current period presented with the cumulative effect of changes reflected in the opening balance of retained earnings in the most current period presented. The Company is currently evaluating the impact of adopting ASU 2014 ‑09 on its financial statements. In July 2015, the Financial Accounting Standards Board issued Accounting Standards Update No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory (ASU 2015-11). ASU 2015-11 simplifies the subsequent measurement of inventory by replacing today’s lower of cost or market test with a lower of cost and net realizable value test. The guidance applies only to inventories for which cost is determined by methods other than last-in first-out (LIFO) and the retail inventory method (RIM). Entities that use LIFO or RIM will continue to use existing impairment models (e.g., entities using LIFO would apply the lower of cost or market test). The guidance is effective for public business entities for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. For all other entities, it is effective for fiscal years beginning after December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017. The Company is currently evaluating the impact of adopting ASU 2015 ‑11 on its financial statements. In November 2015, the Financial Accounting Standards Board issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes, which simplifies the presentation of deferred taxes by requiring that deferred tax assets and liabilities be presented as noncurrent on the balance sheet. ASU 2015-17 is effective for the Company in the fiscal year beginning after December 15, 2016, and interim periods within those fiscal years. The Company is currently evaluating the impact of adopting ASU 2015 ‑ 17 on its financial statements. In February 2016, the Financial Accounting Standards Board issued ASU No. 2016-02, Leases. ASU 2016-02 is aimed at making leasing activities more transparent and comparable, and requires substantially all leases be recognized by lessees on their balance sheet as a right-of-use asset and corresponding lease liability, including leases currently accounted for as operating leases. ASU 2016-2 is effective for the Company in the fiscal year beginning after December 15, 2018, and interim periods within those fiscal years with early adoption permitted. The Company is currently evaluating the impact of adopting ASU 2016-02 on its financial statements. In March 2016, the Financial Accounting Standards Board issued ASU 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The ASU includes provisions intended to simplify various aspects related to how share-based payments are accounted for and presented in the financial statements, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. Specifically, the ASU allows entities to withhold an amount up to the employees’ maximum individual tax rate in the relevant jurisdiction without resulting in liability classification of the award and allowing forfeitures to be either estimated, as required today, or recognized when they occur. The new guidance will be effective for public entities in fiscal years beginning after December 15, 2016, with early adoption permitted. The Company is currently evaluating the impact of adopting ASU 2016-09 on its financial statements .

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2016
Fair Value Measurements
Fair Value Measurements	3. Fair Value Measurements The Company's financial assets and liabilities carried at fair value are comprised of investment assets tha t include money market and investments, and a liability for common stock warrant s . The fair value accounting guidance requires that assets and liabilities be carried at fair value and classified in one of the following three categories: Level I: Quoted prices in active markets for identical assets and liabilities that the Company has the ability to access Level II: Observable market ‑based inputs or unobservable inputs that are corroborated by market data, such as quoted prices, interest rates, and yield curves Level III: Inputs that are unobservable data points that are not corroborated by market data. This hierarchy requires the Company to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. Assets and Liabilities That Are Measured at Fair Value on a Recurring Basis The following table represents the fair value hierarchy for the Company’s financial assets and financial liabilities measured at fair value on a recurring basis: June 30, 2016 December 31, 2015 Level I Level II Level III Total Level I Level II Level III Total (in thousands) Financial Assets: Money market deposits $ $ — $ — $ $ $ — $ — $ U.S. Treasury securities — — — — U.S. agency securities — — — — Municipal securities — — — — Total financial assets $ $ $ — $ $ $ $ — $ Current Liabilities: Warrants $ — $ — $ $ $ — $ — $ $ Total financial liabilities $ — $ — $ $ $ — $ — $ $ The Company's warrants to purchase common stock are valued using Level III inputs; the Company used inputs from a Black-Scholes model with market volatility that is determined for comparable companies in the same business sector. The carrying amounts of cash, accounts receivable, and accounts payable approximate their fair value and are excluded from the table above . In April 2013, the Company entered into a senior secured term loan with a th ird ‑party lender, which consisted of a credit agreement, royalty agreement, warrants, and loan commitment. The Company considered the guidance under ASC 825 ‑10, Financial Instruments , which provides a measurement basis election for most financial instruments (i.e., either historical cost or fair value), allowing reporting entities to mitigate potential mismatches that arise under the current mixed measurement attribute model and ASC 820, Fair Value Measurements and Disclosures that provides for the fair value measurement of assets and liabilities, except for derivatives, for which the fair value was determined by ASC 815, Derivatives and Hedging . The Company evaluated the components of the senior secured term loan and determined that they were derivatives to be evaluated under ASC 815 ‑ 15 ‑ 25 ‑ 1. The fair value accounting for derivatives was not an option, as derivatives must be fair valued under ASC 815 following the measurement guidance under ASC 820. Therefore, the Company engaged a third party to determine the fair value of the derivatives using the guidance of ASC 820 and recorded the Senior Secured Term Loan at fair value. ASC 815 requires the terms and features of an instrument that are not a derivative itself to be evaluated for embedded derivatives that must be bifurcated and separately accounted for as freestanding derivatives. In general, under ASC 815 ‑15 ‑25 ‑1, an embedded derivative is separated from the host contract and accounted for as a derivative instrument if certain criteria were met . Based upon the Company's evaluation, the senior secured term loan constituted a liability with embedded derivative features that must be accounted for separately as mark-to-market instruments. In addition, adjustments to the embedded royalty feature were recorded as interest expense as they occurred, offset to the carrying amount of the debt (with the eventual cash outlay to settle such amounts recorded against the carrying amount of the debt). Based on the Company's evaluation, it was determined that the warrants granted are detachable and therefore are a stand-alone component of the senior secured term loan to be fair valued using Level III inputs as a separate derivative. In October 2015, the Company paid off the entire borrowings under the senior secured term loan. The following table provides a roll forward of the fair value, as determined by Level III inputs, of the warrants for the six months ended June 30, 2016 : Warrants (in thousands) Balance at December 31, 2015 $ Change in fair value Balance at June 30, 2016 $ Warrants The significant unobservable inputs used in the fair value of warrants are derived from the Company's common stock valuation that is based upon a model with inputs from a Black-Scholes model and market volatility of 66.0% that wa s determined for comparable companies in the same business sector. The inherent risk in the market volatility is the selection of companies with similar business attributes to the Company.

Financial Instruments

Financial Instruments	6 Months Ended
	Jun. 30, 2016
Financial Instruments
Financial Instruments	4. Financial Instruments The Company elected to invest a portion of its cash assets in conservative, income earning, liquid investments effective September 2015. Cash equivalents and investments, all of which are classified as available-for-sale securities, consisted of the following: June 30, 2016 December 31, 2015 Amortized Cost Gross Unrealized Gain Gross Unrealized (Loss) Estimated Fair Value Amortized Cost Gross Unrealized Gain Gross Unrealized (Loss) Estimated Fair Value (in thousands) Money market deposits $ $ — $ — $ $ $ — $ — $ U.S. Treasury securities — U.S. agency securities — Municipal securities — Total $ $ $ $ $ $ $ $ Classified as: Cash equivalents $ $ Short-term investments Total $ $ The Company invests in U.S. Treasuries, U.S. agency and high quality municipal bonds which mature at par value and are all paying their coupons on schedule. T he Company has therefore concluded there is currently no other than temporary impairment of its investments and will continue to recogni ze unrealized gains and losses in other comprehensive income (loss). During the three months ended June 30, 2016, the Company had $0.1 million in realized gains and immaterial losses for a total net realized gain of $0.1 million. During the six months ended June 30, 2016, the Company had $0.1 million in realized gains and immaterial losses for a total net realized gain of $0.1 million. The Company uses the specific investment identification method to calculate realized gains and losses and amount s reclassified out of other comprehensive income to net income. As of June 30, 2016, the Company has nine investments in an unrealized loss position in its portfolio. The Company earned interest income of $0.4 million and $0.8 million , respectively, during the three and six months ended June 30, 2016. The following table summarizes the Company’s port folio of available-for-sale securities by contractual maturity as of June 30 , 2016: June 30, 2016 Amortized Cost Fair Value (in thousands) Less than one year $ $ Greater than one year but less than five years Total $ $

Balance Sheet Components

Balance Sheet Components	6 Months Ended
	Jun. 30, 2016
Balance Sheet Components
Balance Sheet Components	5. Balance Sheet Components Property and Equipment, net The Company’s property and equipment consisted of the following: June 30, December 31, Useful Life 2016 2015 (in thousands) Machinery and equipment 3 -5 years $ $ Furniture and fixtures 3 years Computer equipment 3 years Capitalized software held for internal use 3 years Leasehold improvements Life of lease Construction-in-process Less: Accumulated depreciation and amortization Total Property and equipment, net $ $ The Company periodically evaluates the carrying value of long-lived assets when events or circumstances warrant such a review. The carrying value of a long-lived asset is considered impaired when the estimated realizable value of the asset is less than the carrying value of the asset. In that event, a loss is recognized based on the amount by which the carrying value exceeds the fair value of the long-lived asset. Fair value is determined based on the estimated realizable value of the long-lived asset. Accrued Compensation The Company’s accrued compensation consisted of the following: June 30, December 31, 2016 2015 (in thousands) Accrued paid time off $ $ Accrued commissions Accrued bonuses Other accrued compensation Total Accrued compensation $ $ Other Accrued Liabilities The Company’s other accrued liabilities consisted of the following: June 30, December 31, 2016 2015 (in thousands) Accrued expenses $ $ Accrued rent Deferred lease obligation Sales and use tax payable Total Other accrued liabilities $ $ In April 2016, the Company entered into a four -year agreement with an insurance carrier whereby in return for partial exclusivity and the right to pricing benefits the Company agreed to pay total consideration of $3.2 million. As of June 30, 2016, the total obligation of $3.2 million was included in short-term accrued liabilities and $3.0 million in deferred cost was included in other long-term assets. The deferred costs are being amortized ratably over the four-year term of the agreement and for the three months ended June 30, 2016, the Company amortized $0.2 million which was recorded as a reduction of product revenue .

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2016
Commitments and Contingencies
Commitments and Contingencies	6. Commitments and Contingencies Operating Leases As of June 30, 2016 , the Company sub ‑lease s office facilities under non ‑cancelable operating lease agreements. The Company occupies approximately 88,000 square feet of laboratory and office space at its corporate headquarters in San Carlos , California pur suant to two separate subleases. One sublease covers approximately 61,000 square feet (the “First Space”) and expires in October 2016 , and the other sublease covers approximately 27,000 square feet (the “Second Space”) and expires in January 2017. In connection with an amendment to the sublease agreement for the First Space in January 2013 , th e Company executed a letter of credit in favor of the lessors for $0.8 million, which is secured with a restricted cash account. In connection with its entry into the sublease for the Second Space in March 2014, the Company executed a letter of credit in April 2015 in favor of the lessors for $0.3 million, which is secured with a restricted cash account. I n October 2015, the Company entered into a lease agreement directly with the landlord of the First Space and the Second Space, the term of which (i) will begin in October 2016 with respect to the First Space and (ii) is expected to begin in January 2017 with respect to the Second Space, subject to the existing primary lessee of the Second Space not exercising its right to renew its existing lease for that space. The initial term of the lease will expire in October 2023, and may be extend ed for an additional five years . Upon the expir y of the current subleases , the lease agreement commences in October 2016 at a monthly rent of $0.2 million per month , increasing each year thereafter to a maximum of $0.4 million in the final year of the initial term of the lease. The Company is entitled to a tenant improvement allowance of $0.4 million, to be expended prior to April 1, 2018, for the costs related to the design and construction of improvements to the facilities. The terms of the lease include a $0.5 million security deposit. As of June 30, 2016, the Company has a total of 86,504 square feet under lease at its San Carlos, California location. In April 2015, the Company entered into a sub-lease agreement for additional office space in Redwood City, California. The additional space carries a base rent of $62,700 per month. The lease period beg an in June 2015 and will terminate in August 2016 with no option to extend the lease . In addition, the Company has paid a security deposit of $125,500 . As of June 30, 2016, the Company has a total of 23,245 square feet under sublease at its Redwood City, California location. In September 2015, the Company’s subsidiary entered into a long-term lease agreement for la boratory and office space totaling approximately 94,000 square feet in Austin, Texas . The lease term is 132 months beginning in December 2015 with monthly payments beginning in December 2016, increasing from $133,000 to $207,500 . Per the terms of the lease, the subsidiary has paid a security deposit of $375,000 , and the landlord has allotted the subsidiary a n allowance for leasehold improvements of up to $7.8 million. In October 2015, the Company’s subsidiary entered into a one -y ear lease agreement for additional temporary office space in Austin, Texas. The property carries a monthly rent of $12,900 per month for the 12 months of the lease and $12,900 per month on a month to month basis following the 12th month. The terms of the lease include a $12,900 security deposit . As of June 30, 2016, the Company has a total of 101,912 square feet under lease at its Austin, Texas location. The future annual minimum lease payments under all non-cancelable operating leases as of June 30, 2016 are as follows: Operating Leases (in thousands) Year ended December 31: 2016 (six months) $ 2017 2018 2019 2020 2021 and thereafter Total future minimum lease payments $ Rent expense for the three months ended June 30, 2016 and 2015 was $1.3 million and $0.5 million, respectively. Rent expense for the six months ended June 30, 2016 and 2015 was $2.6 million an d $ 1.1 million, respectively. The Company is also required to pay its share of facility operating expenses with respect to the facilities in which it operates. Legal Proceedings From time to time, the Company is involved in disputes, litigation, and other legal actions. The Company is aggressively defending its current litigation matters, and while there can be no assurances and the outcome of these matters is currently not determinable, the Company currently believes that there are no existing claims or proceedings that are likely to have a material adverse effect on its financial position. There are many uncertainties associated with any litigation and these actions or other third-party claims against the Company may cause the Company to incur costly litigation and/or substantial settlement charges. In addition, the resolution of any intellectual property litigation may require the Company to make royalty payments, which could adversely affect gross margins in future periods. If this were to occur, the Company's business, financial condition, results of operations, and cash flows could be adversely affected. The actual liability in any such matters may be materially different from the Company's estimates, if any, which could result in the need to record or adjust a liability and record additional expenses. During the periods presented, the Company has not recorded any accrual for loss contingencies associated with such legal proceedings, determined that an unfavorable outcome is probable or reasonably possible, or determined that the amount or range of any possible loss is reasonably estimable. On March 4, 2016, a lawsuit was filed against the Company in the Superior Court of the State of California for the County of San Diego seeking compensatory damages , patient alleging that the Company failed to perform a carrier screen test that was ordered for a patient who subsequently gave birth to a child with an inherited condition . The Company has notified its insurer, who is providing a defense under a reservation of rights. The Company intends to vigorously defend against the claims in this lawsuit, but it cannot be certain of the outcome . On February 17, 2016 , March 10, 2016, March 28, 2016 and April 4, 2016, four purported class action lawsuits were filed in the Superior Court of the State of California for the County of San Mateo (the “San Mateo Superior Court”) , against the Company , its directors and certain of its officers and 5% stockholders and their affiliates, and each of the underwriters of its July 1, 2015 initial public offering (the "IPO"). The complaints assert claims under Sections 11, 12(a)(2) and 15 of the Securities Act of 1933, as amended. The complaints allege, among other things, that the Registration Statement and Prospectus for the Company’s IPO contained materially false or misleading statements, and/or omitted material information that was required to be disclosed, about the Company’s business and prospects. Among other relief, the complaints seek class certification, unspecified compensatory damages, rescission, attorneys' fees, and costs. The Company has removed these actions to the United States District Court for the Northern District of California; a motion to remand the actions to the San Mateo Superior Court is pending . The Company intends to defend the matter vigorously , but it cannot be certain of the outcome . On January 6, 2012, the Company filed a declaratory judgment action in the U.S. District Court for the Northern District of California, alleging that U.S. Patent No. 6,258,540 licensed by Sequenom, Inc. ("Sequenom") from Isis Innovation Limited, Inc. ("Isis") (the '540 patent), is invalid, unenforceable and not infringed by the Company. The '540 patent relates to non-invasive prenatal diagnosis methods. This case was consolidated in the Northern District of California with a case that Sequenom, an affiliate of Sequenom, and Isis brought on January 24, 2012 in the Southern District of California alleging infringement by the Company and DNA Diagnostics Center, Inc., the Company's licensee, and at the time, the distributor of its non-invasive paternity test, of certain claims of the '540 patent. Ariosa Diagnostics, Inc. ("Ariosa") and Verinata Health, Inc. ("Verinata"), now a division of Illumina, Inc., also filed declaratory judgment actions regarding the '540 patent against Sequenom in the Northern District. Sequenom asserted counterclaims of infringement of the '540 patent against both Ariosa and Verinata in those respective cases. All of these cases were designated related cases. On October 30, 2013, the District Court issued an order granting Ariosa's motion for summary judgment in its case against Sequenom, finding that the claims asserted against Ariosa are invalid under 35 U.S.C. §101 for reciting non-patentable subject matter. Many of the claims of the '540 patent asserted against the Company were invalidated by this order. Subsequently, Sequenom entered into stipulations with Verinata and the Company conditionally agreeing that the remaining asserted claims of the '540 Patent should be deemed invalid under 35 U.S.C. §101. The Court then entered judgment in favor of Verinata and the Company in their respective cases in November 2013. Sequenom has appealed all three judgments to the Court of Appeals for the Federal Circuit ("CAFC"). The CAFC has consolidated the Ariosa, Verinata and the Company's cases for purposes of appeal, such that the CAFC can make a single ruling on the '540 patent claims that apply to all parties involved. The appellate arguments were heard on November 7, 2014. On December 2, 2014, Sequenom and Verinata settled the pending claims between them. On June 12, 2015, the CAFC affirmed the district court's finding of invalidity with respect to the Company and Ariosa. On August 13, 2015, Sequenom requested a rehearing en banc by the full panel of the CAFC, and on October 19, 2015, the Company and Ariosa each filed a response to Sequenom’s request. On December 2, 2015, Sequenom’s petition for a rehearing en banc was denied. On March 21, 2016, Sequenom filed a petition for writ of certiorari with the Supreme Court. Sequenom’s petition was denied on June 27, 2016, ending the litigation. Third-Party Payer Reimbursement Audits In November 2014, a third-party payer sought information as part of an investigative audit of claims that it had paid for certain genetic testing. The Company complied with the request and provided responsive information. In a letter dated June 2, 2015, the third-party payer alleged that it had overpaid $1.9 million to the Company , which it claimed was an overpayment reflecting the difference between what it paid to the Company and what it contended it should have paid based on its fee schedule and coverage determinations . In August 2015, the Company reached an agreement for a settlement payment of $1.2 million as part of a complete settlement of this matter. This charge was recorded against “revenue” in the second qua rter of 2015 . Contractual Commitment As of Ju n e 30, 2016, the Company has contractual commitments with a supplier for approximately $ 8.7 million and other material supplier commitments for approximately $3.2 million for inventory material used in the laboratory testing process. In January 2015, the Company entered into a laboratory services agreement. As of June 30, 2016, there was a total remaining minimum payment owed under the agreement of approximately $2.2 m illion through October 2016 .

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Jun. 30, 2016
Stock-Based Compensation
Stock-Based Compensation	7. Stock ‑Based Compensation 2007 and 2015 Stock Plans In January 2007, the Board of Directors (the Board) adopted, and the Company’s stockholders approved, the Company’s 2007 Stock Plan (the 2007 Plan), which was amended and restated on March 25, 2010 and amended on April 16, 2015. Pursuant to the 2007 Plan, stock options may be granted to employees, consultants, and outside directors of the Company. Options granted may be either incentive stock options or non-statutory stock options. Under the amended and restated 2007 Plan, the Company had reserved 15,999,289 shares of its common stock for issuance through March 31, 2016 . The 2007 Plan was terminated in July 2015; however, the terms of the 2007 Plan will continue to govern any outstanding awards thereunder. In June 2015, the Board adopted, and the Company’s stockholders approved, the Company’s 2015 Equity Incentive Plan (the 2015 Plan), which, by its terms, took effect as of the Company’s IPO. The Company reserved 3,451,495 shares of its common stock for issuance under the 2015 Plan; in addition, the Board and stockholders authorized the reservation of up to 9,890,310 shares of common stock to cover shares reserved but unissued under the 2007 Plan and shares subject to outstanding awards under the 2007 Plan that expire or lapse unexercised or shares issued under the 2007 Plan that are subsequently reacquired by the Company. Employee Stock Purchase Plan In the second quarter of 2015, shareholders approved the 2015 Natera, Inc. Employee Stock Purchase Plan (the “ ESPP ” ) , which became effective upon the Company’s initial public offering . Under the ESPP employees may purchase Natera, Inc. common stock through payroll deductions at a price equal to 85% of the lower of the fair market values of the stock as of the beginning or the end of six-month offering periods. An employee ’ s payroll deductions under the ESPP are limited to 1 5 % of the employee ’ s compensation and employees may not purchase more than 5,000 shares of stock during any offering period. A participant shall not be granted an option under the ESPP if such option would permit the participant ’ s rights to purchase stock to accrue at a rate that exceeds $25,000 fair market value of stock for each calendar year in which such option is outstanding at any time. The Company has made 893,548 s hares available for issuance under the Plan, a number that is automatically increased by the least of (i) 1% of the total number of shares of common s tock actually issued and outstanding on the last business day of the prior fiscal year, (ii) 880,000 shares of common s tock (subject to certain adjustment s pursuant to Subsection (c) below), or (iii) a number of shares of common s tock determined by the Board. As of June 30 , 2016, a total of 116,215 shares of common stock was issued under the ESPP and 1,280,981 s hares are available for issuance. Stock Options The following table summarizes option activity for the six months ended June 30, 2016 : Outstanding Options Weighted- Weighted- Average Shares Average Remaining Aggregate Available for Number of Exercise Contractual Intrinsic (in thousands, except for contractual life and exercise price) Grant Shares Price Life Value (In years) Balance at December 31, 2015 $ Additional shares authorized — Options granted $ Options exercised — $ Options forfeited/cancelled $ Balance at June 30, 2016 $ 7.85 $ Exercisable at June 30, 2016 $ 6.74 $ Vested and expected to vest at June 30, 2016 $ 7.77 $ Restricted Stock Awards In February 2016, the Company granted 24,540 fully vested shares to a non-employee service provider. Restricted Stock Units In the six months ended June 30, 2016, the Company issued restricted stock units to employee s . The following table summarizes restricted stock unit activity for the six months ended June 30, 2016: Weighted- Average Grant Date (in thousands, except for contractual life) Shares Fair Value Balance at December 31, 2015 - — Granted $ Vested Canceled/forfeited $ Balance at June 30, 2016 $ Exercisable at June 30, 2016 - $ — Vested and expected to vest at June 30, 2016 $ Weighted average remaining contractual life (years) Stock ‑Based Compensation Expense Employee and non ‑employee stock ‑based compensation expense was calculated based on awards ultimately expected to vest and have been reduced for estimated forfeitures. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods, if actual forfeitures differ from those estimates. The following table s present the effect of employee and non ‑employee stock ‑based compensation expense on selected statements of operations line items for the three and six months ended June 30, 2016 and 2015 . Three months ended June 30, 2016 2015 Employee Non-Employee Total Employee Non-Employee Total (in thousands) Cost of revenues $ $ $ $ $ $ Research and development Selling, general and administrative Total $ $ $ $ $ $ Six months ended June 30, 2016 2015 Employee Non-Employee Total Employee Non-Employee Total (in thousands) Cost of revenues $ $ $ $ $ $ Research and development — Selling, general and administrative Total $ $ $ $ $ $ As of June 30, 2016 , approxi mately $25.7 million of unrecognized compensation expense, adjusted for estimated forfeitures, related to unvested awards will be recognized over a weighted ‑average period of approximately 3.0 years. Valuation of Stock Option Grants to Employees The Company estimates the fair value of its stock options granted to employees on the grant date using the Black ‑Scholes option ‑pricing model. The fair value of employee stock options is amortized on a straight ‑line basis over the requisite service period of the awards, generally the vesting period. The fair value of employee stock options was estimated using the following assumptions: Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 Expected term — 5.9 — 6.1 5.1 — 5.2 5.6 — 6.1 Expected volatility % — % % — % 68.5 % — 71.0 % 72.0 % — 73.0 % Expected dividend rate % % % % Risk-free interest rate % — % % — % 1.18 % — 1.24 % 1.56 % — 1.88 % Expected Term : The expected term of options represents the period of time that options are expected to be outstanding. The Company's historical stock option exercise experience does not provide a reasonable basis upon which to estimate an expected term due to a lack of sufficient data. T he Company estimates the expected term by using the simplified method permitted by the Securities and Exchange Commission. The simplified method calculates the expected term as the average of the time-to-vesting and the contractual life of the options. Expected Volatility : The Company derived the expected volatility from the average historical volatilities of comparable publicly traded companies within its peer group over a period approximately equal to the expected term. Expected Dividend Rate : The Company has not paid and does not anticipate paying any dividends in the near future. Risk-Free Interest Rate : The risk-free interest rate assumption is based on U.S. Treasury yield in effect at the time of grant for zero coupon U. S. Treasury notes with maturities approximately equal to the expected term.

Debt

Debt	6 Months Ended
	Jun. 30, 2016
Debt
Debt	8 . Debt Credit Line Agreement In September 2015, the Company entered into the Credit Line with UBS providing for a $50.0 million revolving line of credit that can be drawn down in increments at any time. In October 2015, the Company borrowed $32.0 million against the Credit Line, primarily to prepay all outstanding amounts under the Secured Loan Arrangement with ROS Acquisition Offshore, LP. The Credit Line bears interest at 30-day LIBOR plus 0.65% per annum which resulted in an effective rate of interest of 1.1% for the each of the three and six months ended June 30, 2016. In November 2015, the Company borrowed an additional $10.0 million which increased the principal balance to $42.0 million . In June 2016, the Company repaid $1.0 million on the Credit Line and borrowed $8.0 million resulting in a remaining $0.7 million available under the Credit Line net of accrued interest of $0.3 million. The Credit Line is secured by a first priority lien and security interest in the Company’s money market and marketable securities held in its managed investment account with UBS. UBS has the right to demand full or part ial payment of the Credit Line o bligations and terminate the Credit Line, in its discretion and without cause, at any time.

Warrants

Warrants	6 Months Ended
	Jun. 30, 2016
Warrants.
Warrants	9 . Warrants Under the terms of the Senior Secured Term Loan, the Company granted approximately 376,691 warrants to purchase common stock with an exercise price of $2.3229 per common share, which expire on April 18, 2023. In connection with the IPO in July 2015, these warrants remai n exercisable for common stock.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2016
Income Taxes
Income Taxes	10 . Income Taxes Due to the current operating losses, the Company recorded zero income tax expense for the three and six months ended June 30, 2016 and 2015 , respectively. During these periods, the Company’s activities were limited to U.S. federal and state tax jurisdictions, as it does not have any foreign operations. The federal and state effective tax rate is approximately 37% before research and development cr edits and permanent adjustments related to stock - based compensation and mark to market adjustments on warrants . Due to the Company’s history of cumulative operating losses, management concluded that, after considering all the available objective evidence, it is not more likely than not that all the Company’s net deferred tax assets will be realized. Accordingly, all of the Company’s deferred tax assets, which includes net operating loss or NOL carryforwards and tax credits related primarily to research and development continue to be subject to a valuation allowance as of June 30, 2016 . The Company will continue to maintain a full valuation allowance until there is sufficient evidence to support recoverability of its deferred tax assets. The Company ha d $ 2.9 milli on and $2.4 million in unrecognized tax benefits at June 30, 2016 and December 31, 2015 , respectively. The reversal of the uncertain tax benefits would not affect the effective tax rate to the extent that the Company continues to maintain a full valuation allowance against its deferred tax assets. Unrecognized tax benefits may change during the next twelve months for items that arise in the ordinary course of business. Interest and/or penalties related to income tax matters are recognized as a component of income tax expense. As of June 30, 2016 , there were no accrued interest and penalties related to uncertain tax positions.

Net Loss per Share

Net Loss per Share	6 Months Ended
	Jun. 30, 2016
Net Loss per Share
Net Loss Per Share	11. Net Loss per Share Basic and diluted net loss per share is computed by dividing the net loss attributable to common stockholders by the weighted-average number of common shares outstanding for the period, excludi ng shares subject to repurchase and without consideration of potentially dilutive securities. The Company's potential dilutive shares, which include outstanding common stock options, unvested common shares subject to repurchase, convertibl e preferred stock and warrants, have not been included in the computation of diluted net loss per share for all periods as the result would be anti-dilutive. Such potentially dilutive shares are excluded when the effect would be to reduce the net loss per share. The following table provides the basic and diluted net loss per share computations for the three and six months ended June 30, 2016 and 2015. Three months ended Six months ended June 30, June 30, (in thousands, except per share data) 2016 2015 2016 2015 Basic and diluted loss per share: Net loss $ $ $ $ Weighted-average common shares outstanding Less: weighted-average unvested common shares subject to repurchase — Weighted-average number of shares used in computing net loss per share, basic and diluted Basic and diluted net loss per share $ $ $ $ Potentially dilutive shares that were not included in the diluted per share calculations because they would be anti ‑dilutive as of the three and six months ended June 30, 2016 and 2015 were as follows: June 30, 2016 2015 (in thousands) Options to purchase common stock Warrants to purchase common stock Common stock subject to repurchase — Convertible preferred stock —

Geographic Information

Geographic Information	6 Months Ended
	Jun. 30, 2016
Geographic Information
Geographic Information	1 2 . Geographic Information The following table presents total revenue s by geographic area based on the location of the Company’s customers: Three months ended Six months ended June 30, June 30, (in thousands) 2016 2015 2016 2015 United States $ $ $ $ Americas, excluding U.S. Europe, Middle East, India, Africa Other Total $ $ $ $

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2016
Subsequent Events
Subsequent Events	1 3 . Subsequent Events The Company evaluated subsequent events from June 30, 2016 through August 11, 2016, the date the consolidated financial statements were issued and concluded that no subsequent events have occurred that would require recognition or disclosure in the consolidated financial statements.

Summary of Significant Accoun19

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2016
Summary of Significant Accounting Policies
Basis of Presentation	Basis of Presentation The accompanying unaudited interim condensed consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information. In the opinion of management, the unaudited interim condensed consolidated financial information includes only adjustments of a normal recurring nature necessary for a fair presentation of the results of operations, financial position, changes in stockholders’ equity, and cash flows. The results of operations for the three and six months ended June 30, 2016, are not necessarily indicative of the results for the full year or the results for any future periods. The condensed consolidated balance sheet as of December 31, 2015 has been derived from audited financial statements at that date, these financial statements should be read in conjunction with the audited financial statements, and related notes for the year ended December 31, 2015 included in the Company’s Annual Report on Form 10-K filed with the SEC on March 24, 2016. Certain prior year amounts included in computer equipment and capitalized software held for internal use have been reclassified between these accounts in order to conform to the current year presentation. Net income and s tock holders' equity were not affected by these reclassifications.
Principles of Consolidation	Principles of Consolidation The accompanying condensed consolidated financial statements include all the accounts of the Company and its subsidiary. The Company established a subsidiary that operates in the state of Texas in December 2014 to support the Company’s laboratory and operational functions, which became active in the second quarter of 2015. All intercompany balances and transactions have been eliminated.
Use of Estimates	Use of Estimates The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions about future events that affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities, and reported amounts of revenues and expenses. Significant items subject to such estimates include the allowance for doubtful accounts, accrued liability for potential refund requests, stock-based compensation, the fair value of common stock and fair value of debt accounted for under ASC 815, as well as income tax uncertainties. These estimates and assumptions are based on management's best estimates and judgment. Management regularly evaluates its estimates and assumptions using historical experience and other factors; however, actual results could differ from these estimates and could have an adverse effect on the Company's financial statements.
Fair Value	Fair Value The Company discloses the fair value of financial instruments for financial assets and liabilities for which the value is practicable to estimate. Fair value is defined as the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). Prior to repayment, t he Company carried its senior secured term loan and currently carries its warrants at fair value according to the fair value measurement guidance.
Cash and Cash Equivalents	Cash and Cash Equivalents Cash and cash equivalents consist of cash and money market deposits with financial institutions.
Restricted Cash	Restricted Cash The Company discloses both short-term and long-term restricted cash. Short-term restricted cash consists of $1.1 million, securing the Company’s letter of credit for its corporate headquarters operating lease s which expire in October 2016 and January 2017 and $0.2 million in payments received by certain customers. Long-term restricted cash consists of $0.3 million deposit per credit card terms.
Investments	Investments Management determines the appropriate classification of securities at the time of purchase and reevaluates such determination at each balance sheet date. The Company generally classifies its entire investment portfolio as available-for-sale. The Company views its available-for-sale portfolio as available for use in current operations. Accordingly, the Company classifies all investments as short-term, even though the stated maturity may be more than one year from the current balance sheet date. Available-for-sale securities are carried at fair value, with unrealized gains and losses reported in accumulated other comprehensive income (loss), which is a separate component of stockholders’ equity.
Risk and Uncertainties	Risk and Uncertainties Financial instruments that potentially subject the Company to credit risk consist of cash, accounts receivable and investments. The Company limits its exposure to credit loss by placing its cash in financial institutions with high credit ratings. The Company's cash may consist of deposits held with banks that may at times exceed federally insured limits. The Company performs evaluations of the relative credit standing of these financial institutions and limits the amount of credit exposure with any one institution. The Company bills third-party payers for certain tests performed. The amount that is ultimately received from the payer for our claim and the timing of such payments are subject to the determination of the payer based on the nature of the test performed and their view of our business practices with respect to collections of plan deductibles and co-payments from patients and other activities. This determination can impact both the amount and timing of when our invoices are collected. Payers may also withhold payments and request refunds of prior payments if we do not perform in accordance with the policies of these payers. The Company performs evaluations of financial conditions for clinics and laboratory partners and generally does not require collateral to support credit sales. For the three and six months ended June 30, 2016 and 2015, there were no customers exceeding 10% of total revenues on an individual basis. As of June 30, 2016, one customer had a receivable balance of approximately 10% of net accounts receivable and as of December 31, 2015 there were no customers who had a balance greater than 10% .
Revenue Recognition	Revenue Recognition The Company generally bills an insurance carrier, a clinic or a patient for tests it sells upon delivery of the test result. The Company also bills patients directly for out-of-pocket costs not covered by their insurance carriers representing co-pays and deductibles in accordance with their insurance carrier and health plans. The Company may not get reimbursed for tests completed if the tests are not covered under the insurance carrier’s reimbursement policies or the Company is not a qualified provider to the insurance carrier. For tests performed, where an agreed upon reimbursement rate or fixed fee and a predictable history or likelihood of collections exists, the Company recognizes revenues upon delivery of the test report to the prescribing physician based on the established billing rate less contractual and other adjustments, such as an allowance for doubtful accounts, to arrive at the amount that the Company expects to collect. In all other situations, as the Company does not have a sufficient history of collection and is not able to determine collectability, the Company recognizes revenues when cash is received. From time to time, we receive requests for refunds of payments previously made by insurance carriers. The Company has established an accrued liability for potential refund requests based on its experience. In cases where the Company sells its tests through its laboratory partners, the majority of the laboratory partners bill the patient, clinic, or insurance carrier for the performance of the Company's tests. For tests sold through a limited number of its laboratory partners, the Company bills directly to a patient, clinic or insurance carrier, or a combination of the insurance carrier and patient for the fees. The Company considers its services rendered when it delivers reports of its test results to the laboratory partner, clinic or patient. When the Company has contracted fixed rates for its services and collectability of its revenues is reasonably assured, it recognizes revenues upon delivery of test reports. The fixed fees identified in contracts with laboratory partners change only if a pricing amendment is agreed upon between both parties. For cases in which there is no fixed price established with a laboratory partner, the Company then recognizes revenues from partner distributed tests on a cash basis. Certain of the Company's arrangements include multiple deliverables. For revenue arrangements with multiple deliverables, the Company evaluates each deliverable to determine whether it qualifies as a separate unit of accounting. This determination is based on whether the deliverable has "stand-alone value" to the customer and whether a general right of return exists. The consideration that is fixed or determinable is then allocated to each separate unit of accounting based on the relative selling price of each deliverable. The consideration allocated to each unit of accounting is recognized as the related goods or services are delivered, limited to the consideration that is not contingent upon future deliverables. The Company uses judgment in identifying the deliverables in its arrangements, assessing whether each deliverable is a separate unit of accounting, and in determining the best estimate of selling price for certain deliverables. The Company also uses judgment in determining the period over which the deliverables are recognized in certain of its arrangements. Any amounts received that do not meet the criteria for revenue recognition are recorded as deferred revenue until such criteria are met. The Company receives royalty revenue through the licensing and the provisioning of services to support the use of the Company's proprietary technology with its customer. Royalty revenues are recognized when earned under the terms of the related agreements and are included in Other Revenues in the statements of operations. The Company recognizes revenue from its cloud-based distribution service offering. The Company grants its customers licenses to use the Company’s proprietary intellectual properties and the cloud-based Company software and provides other services to support the use of the Company's proprietary technology with its customers. The Company’s proprietary software is used in connection with the analysis of DNA sequence data in a manner yielding a result indicating the likely presence or absence of full or partial chromosomal abnormalities. The licensees do not have the right to possess the Company’s software, but rather receive the software as a service. The revenues are recognized on an accrual basis (assuming all revenue recognition criteria are met) under the terms of the related agreements and are included in other revenues in the statements of operation.
Stock-Based Compensation	Stock ‑Based Compensation Stock ‑based compensation is related to stock options and restricted stock units (“RSUs”) granted to the Company’s employees and is measured at the grant date based on the fair value of the award. The fair value is recognized as expense over the requisite service period, which is generally the vesting period of the respective awards. No compensation cost is recognized when the requisite service has not been met and the awards are therefore forfeit ed . The Company uses the Black ‑Scholes option ‑pricing model t o estimate the fair value of stock options issued to employees and non-employees. T he measurement of stock-based compensation is subject to periodic adjustments as the underlying equity instruments vest, and the resulting change in value, if any, is recognized in the Company's statements of operations during the period that the related services are rendered. The Black-Scholes option-pricing model requires the input of the Company's expected stock price volatility, the expected life of the awards, a risk-free interest rate, and expected dividends. Determining these assumptions requires significant judgment. The expected term was based on the simplified method and the volatility rate was based on that of publicly traded companies in the DNA sequencing, diagnostics, or personalized medicine industries. When selecting the public companies in these industries to be used in the volatility calculation, companies were selected with comparable characteristics to the Company, including enterprise value and financial leverage. Companies were also selected with historical share price volatility sufficient to meet the expected life of the Company's stock options. The historical volatility data was computed using the daily closing prices for the selected companies' shares during the equivalent period of the calculated expected term of the Company's stock options. The expected life of the non-employee option grants was based on their remaining contractual life at the measurement date. The risk-free interest rate assumption was based on U.S. Treasury instruments with maturities that were consistent with the option's expected life. The expected dividend assumption was based on the Company's history and expectation of dividend payouts.
Warrants	Warrants The Company accounts for warrants to purchase shares of its common stock as a liability at fair value on the balance sheet date because the Company may be obligated to redeem these warrants at some point in the future. The warrants are subject to re - measurement at each balance sheet date, with changes in fair value recognized as a gain or loss from the changes in fair value of the warrants in the statements of operations. The Company will continue to adjust the liability for changes in fair value until such time that the warrants are converted or expire.
Capitalized Software Held for Internal Use	Capitalized S oftware Held for Internal Use The Company capitalizes costs of software purchased for internal use during the application development stage of a project and amortizes those costs over their estimated useful lives of three years. The net book value of capitalized software held for internal use was $1. 3 million and $0.8 million as of June 30, 2016 and December 31, 2015, respectively. Amortized expense for the three months ended June 30, 2016 and 2015 was $0.2 million and $0.1 million, respectively. Amortized expense for the six months ended June 30, 2016 and 2015 was $0.3 million and $0.1 million, respectively.
Accumulated Other Comprehensive Loss	Accumulated Other Comprehensive Loss Comprehensive loss and its components encompass all changes in equity other than those with stockholders, and include net loss, unrealized gains and losses on available-for-sale marketable securities. Balance at Balance at December 31, Reclassification June 30, 2015 Increase Adjustment 2016 (in thousands) Unrealized (loss) gain on available-for-sale securities, net of tax $ $ $ $ Total accumulated other comprehensive (loss) income, net of tax
Net Loss per Share	Net Loss per Share Basic net loss per share is calculated by dividing net loss by the weighted-average shares outstanding during the period, without consideration for potential dilutive shares. Diluted net loss per share is calculated by adjusting the weighted-average shares outstanding for the dilutive effect of potential dilutive shares outstanding for the period, determined using the if-converted method. For purposes of the diluted net loss per share calculation, convertible preferred stock, stock options, convertible notes, unvested shares subject to repurchase, and warrants are considered potential dilutive shares but are excluded from the calculation of diluted net loss per share because their effect would be anti-dilutive. Therefore, basic and diluted net loss per share was the same for all periods presented.
Property and Equipment	Property and Equipment Property and equipment, including purchased and internally developed software, are stated at cost. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets, which are generally three years. Leasehold improvements are amortized using the straight-line method over the estimated useful lives of the assets or the remaining term of the lease, whichever is shorter. The Company periodically reviews the depreciable lives assigned to property and equipment placed in service and change the estimates of useful lives to reflect the results of such reviews. During the second quarter of 2015, the Company increased the depreciable lives of certain sequencing and automation machinery equipment from three years to five years. The effect of this change in estimate for the three and six months ended June 30, 2016 was a decrease in loss from operations and net loss of $0.4 million and $0.8 million, respectively. The effect of this change in estimate was a decrease in net basic and diluted loss per share of $0.01 and $0.02 for the three and six months ended June 30, 2016 , respectively.
Recent Accounting Pronouncements	Recent Accounting Pronouncements From time to time, new accounting pronouncements are issued by the FASB or other standard setting bodies and adopted by the Company as of the specified effective date. Unless otherwise discussed below, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on its financial position or results of operations upon adoption. In August 2014, the Financial Accounting Standards Board issued Accounting Standards Update No. 2014 ‑15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (ASU 2014 ‑15). ASU 2014 ‑15 requires management to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. In doing so, companies will have reduced diversity in the timing and content of footnote disclosures compared to footnote disclosures under today’s guidance. ASU 2014 ‑15 is effective for the Company in the first quarter of 2016 with early adoption permitted. The Company does not believe the impact of adopting ASU 2014 ‑15 on its financial statements will be significant. In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update No. 2014 ‑09, Revenue from Contracts with Customers (ASU 2014 ‑09) to provide guidance on revenue recognition. ASU 2014 ‑09 requires a company to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than under today’s guidance. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. In August 2015, FASB issued ASU 2015-14, which defers the effective date of ASU 2014-09 for all entities by one year. The guidance is effective for the Company in the first quarter of 2018. ASU 2014-09, as amended by ASU 2015-14, is effective for interim or annual periods beginning after December 15, 2017. Early adoption up to the first quarter of 2017 is permitted. Upon adoption, ASU 2014 ‑09 can be applied retrospectively to all periods presented or only to the most current period presented with the cumulative effect of changes reflected in the opening balance of retained earnings in the most current period presented. The Company is currently evaluating the impact of adopting ASU 2014 ‑09 on its financial statements. In July 2015, the Financial Accounting Standards Board issued Accounting Standards Update No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory (ASU 2015-11). ASU 2015-11 simplifies the subsequent measurement of inventory by replacing today’s lower of cost or market test with a lower of cost and net realizable value test. The guidance applies only to inventories for which cost is determined by methods other than last-in first-out (LIFO) and the retail inventory method (RIM). Entities that use LIFO or RIM will continue to use existing impairment models (e.g., entities using LIFO would apply the lower of cost or market test). The guidance is effective for public business entities for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. For all other entities, it is effective for fiscal years beginning after December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017. The Company is currently evaluating the impact of adopting ASU 2015 ‑11 on its financial statements. In November 2015, the Financial Accounting Standards Board issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes, which simplifies the presentation of deferred taxes by requiring that deferred tax assets and liabilities be presented as noncurrent on the balance sheet. ASU 2015-17 is effective for the Company in the fiscal year beginning after December 15, 2016, and interim periods within those fiscal years. The Company is currently evaluating the impact of adopting ASU 2015 ‑ 17 on its financial statements. In February 2016, the Financial Accounting Standards Board issued ASU No. 2016-02, Leases. ASU 2016-02 is aimed at making leasing activities more transparent and comparable, and requires substantially all leases be recognized by lessees on their balance sheet as a right-of-use asset and corresponding lease liability, including leases currently accounted for as operating leases. ASU 2016-2 is effective for the Company in the fiscal year beginning after December 15, 2018, and interim periods within those fiscal years with early adoption permitted. The Company is currently evaluating the impact of adopting ASU 2016-02 on its financial statements. In March 2016, the Financial Accounting Standards Board issued ASU 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The ASU includes provisions intended to simplify various aspects related to how share-based payments are accounted for and presented in the financial statements, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. Specifically, the ASU allows entities to withhold an amount up to the employees’ maximum individual tax rate in the relevant jurisdiction without resulting in liability classification of the award and allowing forfeitures to be either estimated, as required today, or recognized when they occur. The new guidance will be effective for public entities in fiscal years beginning after December 15, 2016, with early adoption permitted. The Company is currently evaluating the impact of adopting ASU 2016-09 on its financial statements

Summary of Significant Accoun20

Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2016
Summary of Significant Accounting Policies
Schedule of Accumulated Other Comprehensive Loss	Balance at Balance at December 31, Reclassification June 30, 2015 Increase Adjustment 2016 (in thousands) Unrealized (loss) gain on available-for-sale securities, net of tax $ $ $ $ Total accumulated other comprehensive (loss) income, net of tax

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2016
Summary of financial assets and liabilities measured on recurring basis	June 30, 2016 December 31, 2015 Level I Level II Level III Total Level I Level II Level III Total (in thousands) Financial Assets: Money market deposits $ $ — $ — $ $ $ — $ — $ U.S. Treasury securities — — — — U.S. agency securities — — — — Municipal securities — — — — Total financial assets $ $ $ — $ $ $ $ — $ Current Liabilities: Warrants $ — $ — $ $ $ — $ — $ $ Total financial liabilities $ — $ — $ $ $ — $ — $ $
Warrants
Rollforward of fair value determined by Level 3 inputs	Warrants (in thousands) Balance at December 31, 2015 $ Change in fair value Balance at June 30, 2016 $

Financial Instruments (Tables)

Financial Instruments (Tables)	6 Months Ended
	Jun. 30, 2016
Financial Instruments
Schedule of available-for-sale securities	June 30, 2016 December 31, 2015 Amortized Cost Gross Unrealized Gain Gross Unrealized (Loss) Estimated Fair Value Amortized Cost Gross Unrealized Gain Gross Unrealized (Loss) Estimated Fair Value (in thousands) Money market deposits $ $ — $ — $ $ $ — $ — $ U.S. Treasury securities — U.S. agency securities — Municipal securities — Total $ $ $ $ $ $ $ $ Classified as: Cash equivalents $ $ Short-term investments Total $ $
Summarized portfolio of available-for-sale securities by contractual maturity	June 30, 2016 Amortized Cost Fair Value (in thousands) Less than one year $ $ Greater than one year but less than five years Total $ $

Balance Sheet Components (Table

Balance Sheet Components (Tables)	6 Months Ended
	Jun. 30, 2016
Balance Sheet Components
Schedule of property and equipment	June 30, December 31, Useful Life 2016 2015 (in thousands) Machinery and equipment 3 -5 years $ $ Furniture and fixtures 3 years Computer equipment 3 years Capitalized software held for internal use 3 years Leasehold improvements Life of lease Construction-in-process Less: Accumulated depreciation and amortization Total Property and equipment, net $ $
Schedule of accrued compensation	June 30, December 31, 2016 2015 (in thousands) Accrued paid time off $ $ Accrued commissions Accrued bonuses Other accrued compensation Total Accrued compensation $ $
Schedule of other accrued liabilities	June 30, December 31, 2016 2015 (in thousands) Accrued expenses $ $ Accrued rent Deferred lease obligation Sales and use tax payable Total Other accrued liabilities $ $

Commitments and Contingencies (

Commitments and Contingencies (Tables)	6 Months Ended
	Jun. 30, 2016
Commitments and Contingencies
Schedule of future minimum lease payments	Operating Leases (in thousands) Year ended December 31: 2016 (six months) $ 2017 2018 2019 2020 2021 and thereafter Total future minimum lease payments $

Stock_Based Compensation (Table

Stock‑Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2016
Stock-Based Compensation
Summary of stock option activity	Outstanding Options Weighted- Weighted- Average Shares Average Remaining Aggregate Available for Number of Exercise Contractual Intrinsic (in thousands, except for contractual life and exercise price) Grant Shares Price Life Value (In years) Balance at December 31, 2015 $ Additional shares authorized — Options granted $ Options exercised — $ Options forfeited/cancelled $ Balance at June 30, 2016 $ 7.85 $ Exercisable at June 30, 2016 $ 6.74 $ Vested and expected to vest at June 30, 2016 $ 7.77 $
Restricted stock units	Weighted- Average Grant Date (in thousands, except for contractual life) Shares Fair Value Balance at December 31, 2015 - — Granted $ Vested Canceled/forfeited $ Balance at June 30, 2016 $ Exercisable at June 30, 2016 - $ — Vested and expected to vest at June 30, 2016 $ Weighted average remaining contractual life (years)
Summary of stock-based compensation expenses	Three months ended June 30, 2016 2015 Employee Non-Employee Total Employee Non-Employee Total (in thousands) Cost of revenues $ $ $ $ $ $ Research and development Selling, general and administrative Total $ $ $ $ $ $ Six months ended June 30, 2016 2015 Employee Non-Employee Total Employee Non-Employee Total (in thousands) Cost of revenues $ $ $ $ $ $ Research and development — Selling, general and administrative Total $ $ $ $ $ $
Schedule of assumptions used in valuation of fair value of employee stock options	Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 Expected term — 5.9 — 6.1 5.1 — 5.2 5.6 — 6.1 Expected volatility % — % % — % 68.5 % — 71.0 % 72.0 % — 73.0 % Expected dividend rate % % % % Risk-free interest rate % — % % — % 1.18 % — 1.24 % 1.56 % — 1.88 %

Net Loss per Share (Tables)

Net Loss per Share (Tables)	6 Months Ended
	Jun. 30, 2016
Net Loss per Share
Basic and diluted net loss per common share	Three months ended Six months ended June 30, June 30, (in thousands, except per share data) 2016 2015 2016 2015 Basic and diluted loss per share: Net loss $ $ $ $ Weighted-average common shares outstanding Less: weighted-average unvested common shares subject to repurchase — Weighted-average number of shares used in computing net loss per share, basic and diluted Basic and diluted net loss per share $ $ $ $
Potentially dilutive shares not included in the calculation of dilutive EPS	June 30, 2016 2015 (in thousands) Options to purchase common stock Warrants to purchase common stock Common stock subject to repurchase — Convertible preferred stock —

Geographic Information (Tables)

Geographic Information (Tables)	6 Months Ended
	Jun. 30, 2016
Geographic Information
Schedule of total revenue by geographic area	Three months ended Six months ended June 30, June 30, (in thousands) 2016 2015 2016 2015 United States $ $ $ $ Americas, excluding U.S. Europe, Middle East, India, Africa Other Total $ $ $ $

Description of Business (Detail

Description of Business (Details)	6 Months Ended
	Jun. 30, 2016segment
Description of Business
Number of operating segments	1

Summary of Significant Accoun29

Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Restricted cash
Restricted cash, current portion	$ 1,274	$ 901
Restricted cash, long term portion	342	$ 683
Corporate Headquarters Lease
Restricted cash
Restricted cash, current portion	1,100
Payments Received By Certain Customers
Restricted cash
Restricted cash, current portion	200
Credit Card
Restricted cash
Restricted cash, long term portion	$ 300

Summary of Significant Accoun30

Summary of Significant Accounting Policies - Concentration (Details) - item	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Sales | Customer
Risk and Uncertainties
Number of customers	0	0	0	0
Accounts Receivable | Credit
Risk and Uncertainties
Number of customers			1		0
Concentration risk (as a percent)			10.00%

Summary of Significant Accoun31

Summary of Significant Accounting Policies - Costs (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Capitalized software	$ 1.3		$ 1.3		$ 0.8
Capitalized Software Held for Internal Use
Amortized expense	$ 0.2	$ 0.1	$ 0.3	$ 0.1

Summary of Significant Accoun32

Summary of Significant Accounting Policies - AOCL (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2016
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance		$ (1,416)
Increase	$ 548	2,359
Balance	943	943
Unrealized (loss) gain on available-for-sale securities
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance		(1,416)
Increase		2,417
Reclassification Adjustment		(58)
Balance	943	943
Accumulated other comprehensive (loss)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance		(1,416)
Increase		2,417
Reclassification Adjustment		(58)
Balance	$ 943	$ 943

Summary of Significant Accoun33

Summary of Significant Accounting Policies - Property (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Property and Equipment
Estimated useful life			P3Y
Gain (loss) from operations	$ (22,515)	$ (15,472)	$ (32,120)	$ (21,749)
Net loss	$ (23,156)	$ (19,681)	$ (31,841)	$ (29,685)
Decrease in net basic and diluted loss per share (in dollars per share)	$ (0.46)	$ (3.58)	$ (0.63)	$ (5.50)
Machinery and equipment | Change to estimated useful life
Property and Equipment
Estimated useful life			P5Y	P3Y
Gain (loss) from operations	$ 400		$ 800
Decrease in net basic and diluted loss per share (in dollars per share)	$ 0.01		$ 0.02

Fair Value Measurements - Hiera

Fair Value Measurements - Hierarchy (Details) - Recurring - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Financial Assets:
Total financial assets	$ 207,485	$ 207,552
Current Liabilities:
Warrants	3,955	3,649
Total financial liabilities	3,955	3,649
Money market deposits
Financial Assets:
Total financial assets	8,838	5,966
U.S. Treasury securities
Financial Assets:
Total financial assets	102,820	103,813
U.S. agency securities
Financial Assets:
Total financial assets	77,903	78,853
Municipal securities
Financial Assets:
Total financial assets	17,924	18,920
Level 1
Financial Assets:
Total financial assets	111,658	109,779
Level 1 | Money market deposits
Financial Assets:
Total financial assets	8,838	5,966
Level 1 | U.S. Treasury securities
Financial Assets:
Total financial assets	102,820	103,813
Level 2
Financial Assets:
Total financial assets	95,827	97,773
Level 2 | U.S. agency securities
Financial Assets:
Total financial assets	77,903	78,853
Level 2 | Municipal securities
Financial Assets:
Total financial assets	17,924	18,920
Level 3
Current Liabilities:
Warrants	3,955	3,649
Total financial liabilities	$ 3,955	$ 3,649

Fair Value Measurements - Level

Fair Value Measurements - Level III (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2016USD ($)
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	$ 3,649
Change in fair value	306
Ending balance	$ 3,955
Warrants
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Volatility (as a percent)	66.00%

Financial Instruments (Details)

Financial Instruments (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2016	Dec. 31, 2015
Available-for-sale Securities, Fair Value to Amortized Cost Basis [Abstract]
Estimated Fair Value	$ 198,647	$ 198,647	$ 201,586
Realized gain	100	100
Interest income	400	800
Amortized Cost
Less than one year	60,621	60,621
Greater than one year but less than five years	145,922	145,922
Total	206,543	206,543
Fair Value
Less than one year	60,623	60,623
Greater than one year but less than five years	146,862	146,862
Total	207,485	207,485
Available-for-sale securities
Available-for-sale Securities, Fair Value to Amortized Cost Basis [Abstract]
Cost	206,543	206,543	208,968
Unrealized Gain	951	951	3
Unrealized Loss	(9)	(9)	(1,419)
Estimated Fair Value	207,485	207,485	207,552
Money market deposits
Available-for-sale Securities, Fair Value to Amortized Cost Basis [Abstract]
Cost	8,838	8,838	5,966
Estimated Fair Value	8,838	8,838	5,966
U.S. Treasury securities
Available-for-sale Securities, Fair Value to Amortized Cost Basis [Abstract]
Cost	102,426	102,426	104,537
Unrealized Gain	394	394	1
Unrealized Loss			(725)
Estimated Fair Value	102,820	102,820	103,813
U.S. agency securities
Available-for-sale Securities, Fair Value to Amortized Cost Basis [Abstract]
Cost	77,502	77,502	79,491
Unrealized Gain	410	410
Unrealized Loss	(9)	(9)	(638)
Estimated Fair Value	77,903	77,903	78,853
Municipal securities
Available-for-sale Securities, Fair Value to Amortized Cost Basis [Abstract]
Cost	17,777	17,777	18,974
Unrealized Gain	147	147	2
Unrealized Loss			(56)
Estimated Fair Value	17,924	17,924	18,920
Cash equivalents | Available-for-sale securities
Available-for-sale Securities, Fair Value to Amortized Cost Basis [Abstract]
Estimated Fair Value	8,838	8,838	5,966
Short-term investments | Available-for-sale securities
Available-for-sale Securities, Fair Value to Amortized Cost Basis [Abstract]
Estimated Fair Value	$ 198,647	$ 198,647	$ 201,586

Balance Sheet Components - Prop

Balance Sheet Components - Property (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Property and Equipment, net
Property and equipment, gross	$ 35,202	$ 26,500
Less: Accumulated depreciation and amortization	(16,106)	(13,790)
Total Property and Equipment, net	19,096	12,710
Impairment of assets	20
Proceeds from sale of impaired machinery and equipment	225
Machinery and equipment
Property and Equipment, net
Property and equipment, gross	20,949	20,670
Furniture and fixtures
Property and Equipment, net
Property and equipment, gross	$ 450	217
Useful Life	3 years
Computer equipment
Property and Equipment, net
Property and equipment, gross	$ 789	789
Useful Life	3 years
Capitalized Software Held for Internal Use
Property and Equipment, net
Property and equipment, gross	$ 1,871	1,159
Useful Life	3 years
Leasehold improvements
Property and Equipment, net
Property and equipment, gross	$ 1,687	1,686
Construction-in-process
Property and Equipment, net
Property and equipment, gross	$ 9,456	$ 1,979
Minimum | Machinery and equipment
Property and Equipment, net
Useful Life	3 years
Maximum | Machinery and equipment
Property and Equipment, net
Useful Life	5 years

Balance Sheet Components - Accr

Balance Sheet Components - Accrued Compensation (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Balance Sheet Components
Accrued paid time off	$ 1,952	$ 2,024
Accrued commissions	3,170	3,691
Accrued bonuses	1,695	1,348
Other accrued compensation	2,278	1,489
Total accrued compensation	$ 9,095	$ 8,552

Balance Sheet Components - Othe

Balance Sheet Components - Other Accured Liabilities (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended
	Jun. 30, 2016	Jun. 30, 2016	Dec. 31, 2015
Balance Sheet Components
Accrued expenses	$ 23,242	$ 23,242	$ 17,870
Accrued rent	116	116	450
Deferred lease obligation	14	14	42
Sales and use tax payable	214	214	346
Total other accrued liabilities	$ 23,586	23,586	$ 18,708
Agreement term	4 years
Accrued insurance liability	$ 3,200	3,200
Deferred cost	$ 3,000	3,000
Deferred cost amortization		$ 200

Commitments and Contingencies40

Commitments and Contingencies (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2016USD ($)ft²	Jun. 30, 2015USD ($)	Jun. 30, 2016USD ($)ft²lease	Jun. 30, 2015USD ($)
Future minimum lease payments
2016 (six months)	$ 1,600,000		$ 1,600,000
2,017	5,441,000		5,441,000
2,018	5,976,000		5,976,000
2,019	6,140,000		6,140,000
2,020	6,304,000		6,304,000
2021 and thereafter	25,923,000		25,923,000
Total future minimum lease payment	51,384,000		51,384,000
Rent expense	1,300,000	$ 500,000	2,600,000	$ 1,100,000
Corporate Headquarters Lease
Operating Leases
Monthly base rent			200,000
Security deposit	500,000		500,000
Maximum monthly base rent after escalation			400,000
Allowance for leasehold improvements	$ 400,000		$ 400,000
Office space | ft²	86,504		86,504
Number of subleases | lease			2
Renewal term of lease			5 years
"First Space" Sublease
Operating Leases
Restricted cash	$ 800,000		$ 800,000
Office space | ft²	61,000		61,000
"Second Space" Sublease
Operating Leases
Restricted cash	$ 300,000		$ 300,000
Office space | ft²	27,000		27,000
Redwood City Lease
Operating Leases
Monthly base rent			$ 62,700
Security deposit	$ 125,500		$ 125,500
Office space | ft²	23,245		23,245
Austin TX, Long-term Lease
Operating Leases
Term of lease			132 months
Monthly base rent			$ 133,000
Security deposit	$ 375,000		375,000
Maximum monthly base rent after escalation			207,500
Allowance for leasehold improvements	$ 7,800,000		$ 7,800,000
Office space | ft²	94,000		94,000
Austin TX, Short-term Lease
Operating Leases
Term of lease			1 year
Monthly base rent			$ 12,900
Security deposit	$ 12,900		$ 12,900
Office space | ft²	101,912		101,912

Commitments and Contingencies -

Commitments and Contingencies - Legal (Details) $ in Millions	1 Months Ended		6 Months Ended
	Aug. 31, 2015USD ($)	Nov. 30, 2014USD ($)	Jun. 30, 2016USD ($)lawsuit
Other commitments
Shareholders (as a percent)			5.00%
Number of purported class action lawsuits filed | lawsuit			4
Inventory Material
Other commitments
Purchase commitment			$ 8.7
Tests
Other commitments
Purchase commitment			2.2
Supplier One | Inventory Material
Other commitments
Purchase commitment			8.7
Supplier, Aggregate of Other | Inventory Material
Other commitments
Purchase commitment			$ 3.2
Third-party payer
Other commitments
Amount sought		$ 1.9
Settlement amount	$ 1.2

Stock_Based Compensation (Detai

Stock‑Based Compensation (Details) - USD ($)	1 Months Ended	3 Months Ended		6 Months Ended
	Feb. 29, 2016	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Stock Based Compensation
Stock based compensation expense		$ 2,897,000	$ 1,591,000	$ 5,292,000	$ 2,740,000
2015 Plan
Stock Based Compensation
Shares reserved for issuance			3,451,495		3,451,495
Additional shares reserved for issuance			9,890,310		9,890,310
2007 Plan
Stock Based Compensation
Shares reserved for issuance		15,999,289		15,999,289
Employee and non-employee stock options
Stock Based Compensation
Shares available for issuance		4,382,000		4,382,000		3,734,000
Restricted Shares
Stock Based Compensation
Shares granted	24,540
Restricted stock units
Stock Based Compensation
Shares granted				201,000
2015 Employee Stock Purchase Plan
Stock Based Compensation
Shares reserved for issuance		893,548		893,548
Shares granted				116,215
Shares available for issuance		1,280,981		1,280,981
Shares reserved for issuance as a proportion common stock outstanding (as a percent)				1.00%
Price in relation to fair market value of common stock on the date of grant, lower range limit (as a percent)				85.00%
Maximum number of shares a participant may receive during the period (in shares)				5,000
Maximum amount of award or purchase during a calendar year				$ 25,000
Maximum employee contribution of employee's cash compensation (as a percent)		15.00%		15.00%
2015 Employee Stock Purchase Plan | Minimum
Stock Based Compensation
Shares reserved for issuance		880,000		880,000

Stock_Based Compensation - Stoc

Stock‑Based Compensation - Stock Options (Details) - Employee and non-employee stock options $ / shares in Units, shares in Thousands, $ in Thousands	6 Months Ended
	Jun. 30, 2016USD ($)$ / sharesshares
Stock Based Compensation
Shares available for grant, beginning balance	3,734
Additional shares authorized	2,014
Options granted (in shares)	(1,900)
Options forfeited (in shares)	534
Shares available for grant, end balance	4,382
Number of shares
Outstanding, beginning balance (in shares)	9,324
Options granted (in shares)	1,900
Options exercised (in shares)	(1,279)
Options forfeited (in shares)	(534)
Outstanding, end balance (in shares)	9,411
Exercisable (in shares)	4,888
Vested and expected to vest (in shares)	8,867
Weighted-Average Exercise Price
Outstanding, beginning balance (in dollars per share) | $ / shares	$ 3.96
Granted (in dollars per share) | $ / shares	9.74
Exercised (in dollars per share) | $ / shares	1.77
Forfeited (in dollars per share) | $ / shares	6.81
Outstanding, end balance (in dollars per share) | $ / shares	5.26
Exercisable (in dollars per share) | $ / shares	2.42
Vested and expected to vest (in dollars per share) | $ / shares	$ 5.04
Additional disclosures
Weighted average contractual term, options outstanding	7 years 10 months 6 days
Exercisable (in years)	6 years 8 months 27 days
Vested and expected to vest (in years)	7 years 9 months 7 days
Aggregate intrinsic value, options outstanding | $	$ 65,247
Aggregate intrinsic value, options exercisable | $	47,348
Aggregate intrinsic value, vested and expected to vest | $	$ 63,382

Stock_Based Compensation - Rest

Stock‑Based Compensation - Restricted Stock Units (Details) - Restricted stock units shares in Thousands	6 Months Ended
	Jun. 30, 2016$ / sharesshares
Shares
Beginning Balance (in shares) | shares
Granted (in shares) | shares	201
Vested (in shares) | shares	(10)
Canceled/forfeited (in shares) | shares	(4)
Ending Balance (in shares) | shares	187
Vested and expected to vest (in shares) | shares	164
Weighted average remaining contractual life (years)
Weighted average remaining contractual life (years)	3 years
Weighted Average Grant Date Fair Value
Beginning Balance (in dollars per share) | $ / shares
Granted (in dollars per share) | $ / shares	9.63
Vested (in dollars per share) | $ / shares	9.59
Canceled/forfeited (in dollars per share) | $ / shares	9.59
Ending Balance (in dollars per share) | $ / shares	9.64
Vested and expected to vest (in dollars per share) | $ / shares	$ 9.63

Stock_Based Compensation - Comp

Stock‑Based Compensation - Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Stock based compensation expense
Stock based compensation expense	$ 2,897	$ 1,591	$ 5,292	$ 2,740
Cost of revenues
Stock based compensation expense
Stock based compensation expense	189	271	322	355
Research and development
Stock based compensation expense
Stock based compensation expense	717	320	1,321	581
Selling, general and administrative
Stock based compensation expense
Stock based compensation expense	1,991	1,000	3,649	1,804
Employee and non-employee stock options
Stock based compensation expense
Unrecognized compensation expense	25,700		$ 25,700
Unrecognized compensation expense recognized over weighted average period			3 years
Employee stock options
Stock based compensation expense
Stock based compensation expense	2,813	1,323	$ 5,037	2,418
Employee stock options | Cost of revenues
Stock based compensation expense
Stock based compensation expense	157	88	315	149
Employee stock options | Research and development
Stock based compensation expense
Stock based compensation expense	716	309	1,321	558
Employee stock options | Selling, general and administrative
Stock based compensation expense
Stock based compensation expense	1,940	926	3,401	1,711
Non-employee stock options
Stock based compensation expense
Stock based compensation expense	84	268	255	322
Non-employee stock options | Cost of revenues
Stock based compensation expense
Stock based compensation expense		184	7	206
Stock based compensation benefit	32
Non-employee stock options | Research and development
Stock based compensation expense
Stock based compensation expense		11		23
Stock based compensation benefit	1
Non-employee stock options | Selling, general and administrative
Stock based compensation expense
Stock based compensation expense	$ 51	$ 74	$ 248	$ 93

Stock_Based Compensation - Assu

Stock‑Based Compensation - Assumptions (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Valuation of Stock Option Grants to Employees
Expected volatility, minimum	68.50%	72.00%	68.50%	72.00%
Expected volatility, maximum	69.20%	73.00%	71.00%	73.00%
Expected dividend rate	0.00%	0.00%	0.00%	0.00%
Risk‑free interest rate, minimum	1.18%	1.84%	1.18%	1.56%
Risk‑free interest rate, maximum	1.24%	1.88%	1.24%	1.88%
Minimum
Valuation of Stock Option Grants to Employees
Expected term	5 years 1 month 6 days	5 years 10 months 24 days	5 years 1 month 6 days	5 years 7 months 6 days
Maximum
Valuation of Stock Option Grants to Employees
Expected term	5 years 2 months 12 days	6 years 1 month 6 days	5 years 2 months 12 days	6 years 1 month 6 days

Debt (Details)

Debt (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended			3 Months Ended		6 Months Ended
	Jun. 30, 2016	Nov. 30, 2015	Oct. 31, 2015	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Sep. 30, 2015
Debt Instrument [Line Items]
Borrowings						$ 8,000
Repayments						1,000
Interest expense				$ 122	$ 1,203	237	$ 2,213
Amount paid to extinguish debt						$ 1,000
Repayments of equipment financing							$ 1,170
Secured Loan Arrangement
Debt Instrument [Line Items]
Exercise price of warrants (in dollars per share)	$ 2.3229			$ 2.3229		$ 2.3229
Line Of Credit-UBS
Debt Instrument [Line Items]
Borrowing capacity								$ 50,000
Borrowings	$ 8,000		$ 32,000
Repayments	1,000
Remaining borrowing capacity	$ 700			$ 700		$ 700
Effective interest rate (as a percent)	1.10%			1.10%		1.10%
Accrued interest	$ 300
Amount paid to extinguish debt	$ 1,000
Line Of Credit-UBS | 30-day LIBOR
Debt Instrument [Line Items]
Borrowings		$ 10,000
Spread on variable rate (as a percent)						0.65%
Principal balance		$ 42,000

Warrants (Details)

Warrants (Details) - Secured Loan Arrangement	Jun. 30, 2016$ / sharesshares
Class of Stock [Line Items]
Warrants outstanding (in shares) | shares	376,691
Warrants exercise price (in dollars per share) | $ / shares	$ 2.3229

Income taxes (Details)

Income taxes (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Income Taxes
Income tax expense	$ 0	$ 0	$ 0	$ 0
Effective income tax rate before adjustments (as a percent)			37.00%
Unrecognized tax benefits	2.9		$ 2.9		$ 2.4
Interest and penalties accrued	$ 0		$ 0

Net Loss per Share - Loss per S

Net Loss per Share - Loss per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Basic and diluted loss per share:
Net loss	$ (23,156)	$ (19,681)	$ (31,841)	$ (29,685)
Weighted-average common shares outstanding	51,445	7,026	51,124	6,971
Less: weighted-average unvested common shares subject to repurchase		(1,532)	(182)	(1,578)
Weighted-average number of shares used in computing net loss per share, basic and diluted	51,445	5,494	50,942	5,393
Basic and diluted net loss per share (in dollars per share)	$ (0.46)	$ (3.58)	$ (0.63)	$ (5.50)

Net Loss per Share - Potentiall

Net Loss per Share - Potentially Dilutive Shares (Details) - shares shares in Thousands	3 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive shares not included in the calculation of diluted EPS	9,788	43,138
Employee and non-employee stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive shares not included in the calculation of diluted EPS	9,411	9,402
Warrants to purchase common stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive shares not included in the calculation of diluted EPS	377	840
Common stock subject to repurchase
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive shares not included in the calculation of diluted EPS		1,499
Redeemable convertible preferred stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive shares not included in the calculation of diluted EPS		31,397

Geographic Information (Details

Geographic Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	$ 51,984	$ 45,087	$ 113,886	$ 92,522
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	45,290	38,510	101,311	79,382
Americas, excluding U.S.
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	724	1,210	1,303	2,506
Europe, Middle East, India, Africa
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	4,256	4,088	7,899	7,982
Other
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	$ 1,714	$ 1,279	$ 3,373	$ 2,652