Stockholders' Equity | 3 Months Ended |
Mar. 31, 2015 |
Equity [Abstract] | |
Stockholders' Equity | 4. STOCKHOLDERS’ EQUITY |
Common Stock |
Each share of common stock is entitled to one vote for matters to be voted on by the stockholders of the Company. The holders of common stock are also entitled to receive dividends whenever declared by the Board of Directors from legally available funds, subject to the priority rights of all classes of preferred stock. |
2014 Stock Option and Incentive Plan |
The Company’s 2014 Stock Option and Incentive Plan (the “2014 Plan”) was adopted by the Company’s board of directors in September 2014. The 2014 Plan was approved by the Company’s stockholders in November 2014 and became effective immediately prior to the closing of the Company’s initial public offering. All remaining shares available in the 2011 Stock Option and Grant Plan (the “2011 Plan”) rolled into the 2014 Plan following the consummation of the initial public offering. The 2014 Plan allows the compensation committee to make equity-based incentive awards to the Company’s officers, employees, directors and other key persons (including consultants). |
The Company has initially reserved 6,000,000 shares of the Company’s common stock for the issuance of awards under the 2014 Plan, plus 923,732 shares of the Company’s common stock remaining available for issuance under the Company’s 2011 Plan. The 2014 Plan provides that the number of shares reserved and available for issuance under the plan will automatically increase each January 1, beginning on January 1, 2015, by 5% of the outstanding number of shares of the Company’s common stock on the immediately preceding December 31 or such lesser number of shares as determined by the Company’s compensation committee. This number is subject to adjustment in the event of a stock split, stock dividend or other change in the Company’s capitalization. On January 1, 2015, the shares reserved for issuance increased by 2,136,240 for total shares reserved for issuance under the 2014 Plan of 9,059,972 as of March 31, 2015, of which 8,417,803 remained available for issuance. |
2014 Employee Stock Purchase Plan |
In September 2014, the Company’s board of directors adopted and approved, and in November 2014 the Company’s stockholders adopted and approved, the Employee Stock Purchase Plan, or the ESPP. The ESPP initially reserved and authorized the issuance of up to a total of 2,500,000 shares of common stock to participating employees. The ESPP provides that the number of shares reserved and available for issuance will automatically increase each January 1, beginning on January 1, 2015, by the lesser of (i) 1,000,000 shares of common stock, (ii) 1% of the outstanding number of shares of the Company’s common stock on the immediately preceding December 31, or (iii) such lesser number of shares as determined by the ESPP administrator. This number is subject to adjustment in the event of a stock split, stock dividend or other change in the Company’s capitalization. On January 1, 2015, the shares reserved for issuance increased by 427,248 for total shares reserved for issuance under the ESPP of 2,927,248 as of March 31, 2015. |
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Each employee who is a participant in the ESPP may purchase shares by authorizing payroll deductions of up to 10% of his or her base compensation during an offering period. Unless the participating employee has previously withdrawn from the offering, his or her accumulated payroll deductions will be used to purchase shares on the last business day of the offering period at a price equal to 85% of the fair market value of the shares on the first business day or the last business day of the offering period, whichever is lower. Under applicable tax rules, an employee may purchase no more than $25,000 worth of shares of common stock, valued at the start of the purchase period, under the ESPP in any calendar year. Administrative amendments were made to the ESPP in March 2015 in connection with the launch of the first offering period, commenced in March 2015. |
Stock Options |
A summary of activity under the stock option plan and related information for the three months ended March 31, 2015 is presented below: |
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| | Number of | | | Weighted- | | | Weighted- | | | Aggregate | |
Shares | Average | Average | Intrinsic |
Underlying | Exercise | Remaining | Value |
Outstanding | Price Per | Contractual Life | |
Options | Share | (Years) | |
| | | | | | | | | | | (In thousands) | |
Outstanding—December 31, 2014 | | | 13,953,894 | | | $ | 8.04 | | | | 8.8 | | | $ | 264,531 | |
Options granted | | | 268,370 | | | $ | 22.12 | | | | | | | | | |
Options exercised | | | (395,676 | ) | | $ | 0.99 | | | | | | | | | |
Options cancelled/forfeited | | | (332,669 | ) | | $ | 9.39 | | | | | | | | | |
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Outstanding—March 31, 2015 | | | 13,493,919 | | | $ | 7.87 | | | | 8.58 | | | $ | 215,478 | |
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Vested and expected to vest—March 31, 2015 | | | 12,580,885 | | | $ | 7.67 | | | | 8.54 | | | $ | 203,385 | |
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Exercisable—March 31, 2015 | | | 3,554,035 | | | $ | 2.49 | | | | 7.53 | | | $ | 75,891 | |
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Aggregate intrinsic value represents the difference between the exercise price of the options to purchase common stock and the fair market value of the Company’s common stock. The aggregate intrinsic value of options exercised for the three months ended March 31, 2015 and 2014 was $8.6 million and $0.4 million, respectively. |
Restricted Stock |
A summary of information related to restricted stock for the three months ended March 31, 2015 is presented below: |
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| | Number of | | | Number of | | | Weighted- | | | Aggregate | |
Shares issued | Shares issued | Average | Intrinsic |
under the Stock Plans | outside the Stock | Exercise | Value |
| Plans | Price Per | |
| | Share | |
| | | | | | | | | | | (In thousands) | |
Unvested balance—December 31, 2014 | | | 672,865 | | | | 761,601 | | | $ | 0.62 | | | $ | 37,845 | |
Vested | | | (210,518 | ) | | | (304,400 | ) | | $ | 0.57 | | | | | |
Canceled/forfeited | | | — | | | | — | | | | — | | | | | |
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Unvested balance—March 31, 2015 | | | 462,347 | | | | 457,201 | | | $ | 0.65 | | | $ | 24,478 | |
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Restricted Stock Units |
A summary of information related to restricted stock units (“RSUs”) for the three months ended March 31, 2015 is presented below: |
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| | Number of | | | Weighted- | | | | | | | | | |
Shares issued | Average | | | | | | | | |
under the 2014 Plan | Grant-Date Fair | | | | | | | | |
| Value Per | | | | | | | | |
| Share | | | | | | | | |
Unvested balance—December 31, 2014 | | | 56,250 | | | $ | 16 | | | | | | | | | |
Granted | | | — | | | | — | | | | | | | | | |
Vested | | | — | | | | — | | | | | | | | | |
Canceled/forfeited | | | — | | | | — | | | | | | | | | |
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Unvested balance—March 31, 2015 | | | 56,250 | | | $ | 16 | | | | | | | | | |
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Early Exercise of Stock Options |
The 2011 Plan allowed for the granting of options that may be exercised before the options have vested. Shares issued as a result of early exercise and shares that had not vested are deemed to be restricted stock and are subject to a vesting schedule identical to the vesting schedule of the related restricted stock and options, as well as certain other restrictions. Shares issued as a result of early exercise that have not vested are subject to repurchase by the Company upon termination of the purchaser’s employment or services, at the price paid by the purchaser, and are not deemed to be issued for accounting purposes until those related shares vest. The amounts received in exchange for these shares have been recorded as a liability on the accompanying balance sheets and will be reclassified into common stock and additional paid-in-capital as the shares vest. The Company’s right to repurchase these shares generally lapses 1/48 of the original grant date per month over four years. |
The number of shares of restricted stock and early exercised options to purchase common stock outstanding subject to the Company’s right of repurchase at prices ranging from $0.18 to $14.22 per share as of March 31, 2015 was 1,062,129. The liability for shares subject to repurchase as of March 31, 2015 was $1.8 million, of which $1.0 million is included in accrued liabilities and $0.8 million is included in other long-term liabilities. |
Stock-based Compensation Expense |
Total stock-based compensation expense, including stock-based compensation expense to non-employees, by category was as follows (in thousands): |
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| | Three Months Ended | | | | | | | | | |
March 31, | | | | | | | | |
| | 2015 | | | 2014 | | | | | | | | | |
Cost of revenue | | $ | 270 | | | $ | 73 | | | | | | | | | |
Sales and marketing | | | 1,417 | | | | 178 | | | | | | | | | |
Research and development | | | 2,123 | | | | 274 | | | | | | | | | |
General and administrative | | | 1,384 | | | | 1,623 | | | | | | | | | |
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Total stock-based compensation expense | | $ | 5,194 | | | $ | 2,148 | | | | | | | | | |
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