Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | May. 10, 2016 | |
Document And Entity Information | ||
Entity Registrant Name | MAXPOINT INTERACTIVE, INC. | |
Entity Central Index Key | 1,611,231 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 6,598,834 | |
Entity Current Reporting Status | Yes |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 33,429 | $ 41,143 |
Accounts receivable, net | 32,021 | 43,336 |
Prepaid expenses and other current assets | 2,436 | 1,246 |
Restricted cash, short-term | 0 | 1,861 |
Total current assets | 67,886 | 87,586 |
Property, equipment and software, net | 20,283 | 19,385 |
Other long-term assets | 111 | 315 |
Total assets | 88,280 | 107,286 |
Current liabilities: | ||
Accounts payable | 10,161 | 14,987 |
Accrued expenses and other current liabilities | 9,464 | 8,386 |
Short-term debt | 25,325 | 31,225 |
Total current liabilities | 44,950 | 54,598 |
Other long-term liabilities | 1,262 | 955 |
Total liabilities | $ 46,212 | $ 55,553 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Common stock, $0.00005 par value; 500,000,000 shares authorized, 6,560,987 and 6,569,237 shares issued and outstanding as of December 31, 2015 and March 31, 2016, respectively | $ 1 | $ 1 |
Additional paid-in capital | 104,205 | 103,114 |
Accumulated other comprehensive loss | (104) | (82) |
Accumulated deficit | (62,034) | (51,300) |
Total stockholders’ equity | 42,068 | 51,733 |
Total liabilities and stockholders’ equity | $ 88,280 | $ 107,286 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2016 | Dec. 31, 2015 |
Common stock | ||
Common shares par value (in usd per share) | $ 0.00005 | $ 0.00005 |
Common shares authorized | 500,000,000 | 500,000,000 |
Common shares issued | 6,569,237 | 6,560,987 |
Common shares outstanding | 6,569,237 | 6,560,987 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Income Statement [Abstract] | ||
Revenue | $ 29,450 | $ 28,716 |
Traffic acquisition costs | 10,088 | 11,929 |
Other cost of revenue | 4,643 | 2,951 |
Gross profit | 14,719 | 13,836 |
Operating expenses: | ||
Sales and marketing | 13,349 | 12,803 |
Research and development | 6,507 | 4,642 |
General and administrative | 5,318 | 3,379 |
Total operating expenses | 25,174 | 20,824 |
Loss from operations | (10,455) | (6,988) |
Other expense (income): | ||
Interest expense | 264 | 694 |
Interest income | (3) | 0 |
Amortization and write-off of debt discount | 0 | 792 |
Amortization and write-off of deferred financing costs | 18 | 129 |
Derivative fair value adjustment related to common stock warrants | 0 | (482) |
Total other expense | 279 | 1,133 |
Loss before income taxes | (10,734) | (8,121) |
Provision for income taxes | 0 | 0 |
Net loss | $ (10,734) | $ (8,121) |
Net loss per basic and diluted share of common stock (in usd per share) | $ (1.63) | $ (3.59) |
Weighted-average shares used to compute net loss per basic and diluted share of common stock | 6,565,212 | 2,260,850 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (10,734) | $ (8,121) |
Other comprehensive loss: | ||
Foreign currency translation adjustments | (22) | (19) |
Comprehensive loss | $ (10,756) | $ (8,140) |
Condensed Consolidated Stateme6
Condensed Consolidated Statement of Changes in Stockholders' Equity (Unaudited) - 3 months ended Mar. 31, 2016 - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit |
Balance - beginning of period ( in shares) at Dec. 31, 2015 | 6,560,987 | 6,560,987 | |||
Balance - beginning of period at Dec. 31, 2015 | $ 51,733 | $ 1 | $ 103,114 | $ (82) | $ (51,300) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Exercise of stock options ( in shares) | 8,250 | 8,250 | |||
Exercise of stock options | $ 52 | 52 | |||
Stock-based compensation | 1,039 | 1,039 | |||
Foreign currency translation adjustments | (22) | (22) | |||
Net loss | $ (10,734) | (10,734) | |||
Balance - end of period ( in shares) at Mar. 31, 2016 | 6,569,237 | 6,569,237 | |||
Balance - end of period at Mar. 31, 2016 | $ 42,068 | $ 1 | $ 104,205 | $ (104) | $ (62,034) |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cash flows from operating activities: | ||
Net loss | $ (10,734) | $ (8,121) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 2,232 | 1,206 |
Stock-based compensation expense | 930 | 572 |
Change in fair value of warrants | 0 | (482) |
Bad debt expense | 332 | 0 |
Loss on disposal of asset | (4) | 0 |
Amortization and write-off of debt discount | 0 | 792 |
Amortization and write-off of deferred financing costs | 18 | 129 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 10,968 | 9,655 |
Prepaid expenses and other current assets | (1,136) | (289) |
Security deposits | (30) | (8) |
Accounts payable | (4,888) | (4,955) |
Accrued expenses and other current liabilities | 1,097 | 2,877 |
Other long-term liabilities | 308 | 380 |
Net cash provided by (used in) operating activities | (899) | 1,756 |
Cash flows from investing activities: | ||
Purchases of property, equipment and software | (927) | (1,561) |
Capitalized internal-use software costs | (1,838) | (1,510) |
Changes to restricted cash | 1,861 | 249 |
Net cash used in investing activities | (904) | (2,822) |
Cash flows from financing activities: | ||
Proceeds from the issuance of common stock in initial public offering, net of underwriting discounts and commissions | 0 | 69,518 |
Payments of costs related to initial public offering | 0 | (249) |
Proceeds from debt | 0 | 6,250 |
Repayment of debt | (5,900) | (22,500) |
Proceeds from stock option exercises | 52 | 490 |
Payments of issuance costs related to debt | (54) | (57) |
Net cash provided by (used in) financing activities | (5,902) | 53,452 |
Effect of exchange rate changes on cash and cash equivalents | (9) | (2) |
Net increase (decrease) in cash and cash equivalents | (7,714) | 52,384 |
Cash and cash equivalents at beginning of period | 41,143 | 12,949 |
Cash and cash equivalents at end of period | 33,429 | 65,333 |
Supplemental disclosures of other cash flow information: | ||
Cash paid for interest | 277 | 673 |
Supplemental disclosures of non-cash investing and financing activities: | ||
Purchases of property, equipment and software included in accounts payable and accruals | 113 | 1,697 |
Vesting of restricted stock subject to repurchase | 0 | 57 |
Issuance of lender warrants allocated to debt discount | 0 | 335 |
Conversion of convertible preferred stock to common stock | 0 | 25,476 |
Warrant derivative liability reclassified to additional paid-in capital | 0 | 1,132 |
Liability-based option awards reclassified to additional paid-in capital | 0 | 288 |
Deferred offering costs included in accounts payable and accruals | 0 | 2,055 |
Deferred offering costs reclassified to additional paid-in capital | 0 | 3,782 |
Stock-based compensation capitalized in internal-use software costs | $ 109 | $ 0 |
Description of Business
Description of Business | 3 Months Ended |
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Description of Business Organization MaxPoint Interactive, Inc. (the “Company”) was incorporated in September 2006 under the state laws of Delaware. The Company is a provider of a business intelligence and marketing automation solution. The Company’s customers are located in the United States and Europe and consist primarily of enterprises with national brands in the consumer products, retail, automotive, financial services, healthcare, telecommunications and entertainment industries. The Company’s MaxPoint Intelligence Platform predicts the most likely local buyers of a specific product at a particular retail location and then executes cross-channel digital marketing campaigns to reach these buyers on behalf of the Company’s customers. The Company is headquartered in Morrisville, North Carolina and has offices across the United States and one in the United Kingdom. Reverse Stock Split As described in Note 9, on April 25, 2016, the Company amended its amended and restated certificate of incorporation effecting a 1-for-4 reverse stock split of its outstanding shares of capital stock. The reverse stock split did not change the number of authorized shares of capital stock of the Company or cause an adjustment to the par value of the Company's capital stock. As a result of the reverse stock split, the Company was required to adjust the share amounts under its equity incentive plans and common stock warrant agreements with third parties. All disclosures of shares and per share data in the condensed consolidated financial statements and related notes have been retroactively adjusted to reflect the reverse stock split for all periods presented. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Principles of Consolidation The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary and have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). All intercompany accounts and transactions have been eliminated in consolidation. Basis of Presentation The condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company believes that its existing cash balances, together with its revolving line of credit, will be sufficient to meet its anticipated cash requirements through at least the next 12 months. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts in the condensed consolidated financial statements and accompanying notes. The Company evaluates its estimates, including those related to its allowance for doubtful accounts, stock-based compensation, income taxes and related valuation allowances and the fair value of common stock warrants. The Company bases its estimates on its historical experience and on various other assumptions that it believes to be reasonable, the results of which form the basis for making judgments about the carrying value of assets and liabilities. Actual results could differ from those estimates. Unaudited Interim Condensed Consolidated Financial Information The condensed consolidated financial statements and footnotes have been prepared in accordance with GAAP as contained in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) and applicable rules and regulations of the Securities and Exchange Commission’s (“SEC”) Rule 10-01 of Regulation S-X for interim financial information. In the opinion of management, the interim financial information includes all adjustments of a normal recurring nature necessary for a fair presentation of financial position, the results of operations, comprehensive loss, changes in stockholders’ equity and cash flows. The results of operations for the three months ended March 31, 2016 are not necessarily indicative of the results for the full year or the results for any future periods. The accompanying condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2015 ("Form 10-K"). The significant accounting policies and recent accounting pronouncements were described in Note 2 to the consolidated financial statements included in the Form 10-K. There have been no significant changes in or updates to the accounting policies since December 31, 2015. Restricted Cash Restricted cash represents cash that is subject to contractual withdrawal restrictions and penalties. Restricted cash is classified within the condensed consolidated balance sheets based on the timing of when the restrictions are expected to lapse. The Company presents restricted cash related to its debt agreements in the condensed consolidated balance sheets based on timing of maturity. On March 8, 2016, the Company amended its Amended New Loan and Security Agreement, as described in Note 4. The second amendment to the Amended New Loan and Security Agreement (the "Second Amended New Loan and Security Agreement") changed certain terms and conditions to the Amended New Loan and Security Agreement and Amended New Revolving Line of Credit (the "Second Amended New Revolving Line of Credit"). This amendment, among other things, removed the $5.0 million minimum cash and availability requirement (defined as cash held at the lender plus the unused credit line availability amount). As such, no amounts were reflected as restricted cash within the condensed consolidated statement of financial position as of March 31, 2016. Prior to this amendment, the Company was required to maintain, at all times, at least $5.0 million , consisting of the sum of: (i) cash held at the lender (determined in accordance with the Amended New Loan and Security Agreement); plus (ii) the unused availability amount on its revolving line of credit; plus (iii) the undrawn portion of an advance related to a term loan and security agreement (the “Amended Mezzanine Loan and Security Agreement"). The Company had recorded $1.9 million of restricted cash as of December 31, 2015 based on its availability under the Amended New Loan and Security Agreement of $3.1 million as of that date. Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash, cash equivalents and accounts receivable. All of the Company’s cash and cash equivalents are held at financial institutions that management believes to be of high credit quality. The Company’s cash and cash equivalent accounts exceed federally insured limits. The Company has not experienced any losses on cash and cash equivalents to date. To manage accounts receivable risk, the Company evaluates and monitors the creditworthiness of its customers. As of December 31, 2015 and March 31, 2016 , the Company did not have any customers or advertising agencies that individually comprised a significant concentration of its accounts receivable. For the three months ended March 31, 2015 and 2016 , the Company did not have any customers that individually comprised a significant concentration of its revenue. Allowance for Doubtful Accounts The Company extends credit to its customers without requiring collateral. Accounts receivable are stated at net realizable value. The Company utilizes the allowance method to provide for doubtful accounts based on management’s evaluation of the collectability of amounts due. The Company’s estimate is based on historical collection experience and the current status of accounts receivable. Historically, actual write-offs for uncollectible accounts have not significantly differed from the Company’s estimates. At December 31, 2015 and March 31, 2016 , the Company had reserved for $0.1 million and $0.3 million of its accounts receivable balance, respectively. The following table presents the changes in the allowance for doubtful accounts for the three months ended March 31 (in thousands): Three Months 2015 2016 Allowance for doubtful accounts: Balance, beginning of period $ 179 $ 102 Add: adjustment for bad debts — 332 Less: write-offs, net of recoveries (6 ) (104 ) Balance, end of period $ 173 $ 330 Internal-Use Software Development Costs The Company capitalizes certain costs associated with software developed for internal use, primarily consisting of direct labor costs associated with creating the software. Software development projects generally include three stages: the preliminary project stage (all costs are expensed as incurred); the application development stage (certain costs are capitalized and certain costs are expensed as incurred); and the post-implementation/operation stage (all costs are expensed as incurred). Costs capitalized in the application development stage primarily include costs of designing, coding and testing the software. Capitalization of costs requires judgment in determining when a project has reached the application development stage and the period over which the Company expects to benefit from the use of that software. Once the software is placed in service, these capitalized costs are amortized using the straight-line method over the estimated useful life of the software. Internal-use software development costs of $1.5 million and $1.9 million were capitalized during the three months ended March 31, 2015 and 2016 , respectively. Capitalized internal-use software development costs are included in property, equipment and software, net in the condensed consolidated balance sheets. Amortization expense related to the capitalized internal-use software was $0.6 million and $1.0 million for the three months ended March 31, 2015 and 2016 , respectively, and is primarily included in other cost of revenue and research and development expense in the condensed consolidated statements of operations. The net book value of capitalized internal-use software was $9.8 million and $10.7 million at December 31, 2015 and March 31, 2016 , respectively. Recently Adopted Accounting Pronouncements In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs . This accounting standards update is to simplify the presentation of debt issuance cost. This new guidance requires that debt issuance cost related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with the treatment of debt discounts. The accounting standards update does not affect the recognition and measurement guidance for debt issuance costs. In August 2015, the FASB issued ASU 2015-15, Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements . This accounting standards update states that given the absence of authoritative guidance within ASU 2015-03 for debt issuance costs related to line of credit arrangements, the SEC would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the debt issuance costs ratably over the term of the line of credit arrangement, regardless of whether there are any outstanding borrowings on the line of credit arrangement. The Company adopted ASU 2015-03, effective January 1, 2016, on a retrospective basis. The adoption of these pronouncements did not have a material impact on the Company's consolidated results of operations, financial position or cash flows. Recent Accounting Pronouncements Not Yet Adopted In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers . The new standard provides a single principles-based, five-step model to be applied to all contracts with customers, which steps are to (1) identify the contract(s) with the customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when each performance obligation is satisfied. More specifically, revenue will be recognized when promised goods or services are transferred to the customer in an amount that reflects the consideration expected in exchange for those goods or services. This guidance states that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In August 2015, the FASB issued ASU 2015-14, which defers the effective date of ASU 2014-09 for all entities by one year. In March 2016, the FASB issued ASU 2016-08, which clarified the implementation guidance on principal versus agent considerations. ASU 2014-09, as amended by ASU 2015-14, is effective for interim or annual periods beginning after December 15, 2017. Early adoption of the standard is permitted, but not before the original effective date. Companies can transition to the standard either retrospectively or as a cumulative-effect adjustment as of the date of adoption. The Company plans to adopt ASU 2014-09 as of January 1, 2018. The Company is currently in the process of evaluating the impact that the adoption of ASU 2014-09 will have on its consolidated results of operations, financial position and cash flows, and selecting the method of transition to the new standard. In August 2014, the FASB issued ASU 2014-15, Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern . This guidance addresses management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. Management’s evaluation should be based on relevant conditions and events that are known and reasonably knowable at the date that the financial statements are issued. ASU 2014-15 is effective for interim or annual periods beginning after December 15, 2016. Early adoption is permitted. The Company does not expect to early adopt this guidance and is currently evaluating the impact of the adoption of this guidance on its consolidated results of operations, financial position and cash flows. In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes. This accounting standards update simplifies the presentation of deferred income taxes by eliminating the current requirement for an entity to separate deferred income tax liabilities and assets into current and noncurrent amounts in a classified statement of financial position. ASU 2015-17 requires an entity to classify deferred income tax liabilities and assets, as well as any related valuation allowance, as noncurrent within a classified balance sheet. This accounting standards update becomes effective for interim or annual periods beginning after December 15, 2016, and can be applied retrospectively or prospectively. Early adoption is permitted. The Company is currently evaluating the impact of the adoption of this guidance on its consolidated results of operations, financial position and cash flows. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . The purpose of this guidance is to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. This guidance supersedes previous accounting guidance under Topic 840. Under ASU 2016-02, a lessee will be required to recognize assets and liabilities for the rights and obligations created by leases for leases with lease terms of more than 12 months. Lessor accounting remains substantially similar to current GAAP. In addition, disclosures of leasing activities are to be expanded to include qualitative along with specific quantitative information. ASU 2016-02 is effective for interim or annual periods beginning after December 15, 2018 and early adoption is permitted. This standard requires lessees and lessors to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The Company does not expect to early adopt this guidance and is currently evaluating the impact of the adoption of this guidance on its consolidated results of operations, financial position and cash flows. In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting . ASU 2016-09 simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. ASU 2016-09 is effective for interim or annual periods beginning after December 15, 2016 and early adoption is permitted. The Company is currently evaluating the impact of the adoption of this guidance on its consolidated results of operations, financial position and cash flows. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The Company uses a three-tier fair value hierarchy to classify and disclose all assets and liabilities measured at fair value on a recurring basis, as well as assets and liabilities measured at fair value on a non-recurring basis, in periods subsequent to their initial measurement. The hierarchy requires the Company to use observable inputs when available, and to minimize the use of unobservable inputs when determining fair value. The carrying amounts of certain of the Company’s financial instruments, including cash and cash equivalents, accounts receivable, other current assets, accounts payable and accrued expenses and other current liabilities and its variable rate short-term debt, approximate their respective fair values due to their short term nature. The fair value of the money market fund measured using level 1 inputs in the fair value hierarchy reflected in cash and cash equivalents in the condensed consolidated balance sheets was $18.6 million and $5.5 million as of December 31, 2015 and March 31, 2016 , respectively. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Debt | Debt On March 8, 2016, the Company entered into a second amendment to its Amended New Loan and Security Agreement. The Second Amended New Loan and Security Agreement changed the following terms and conditions to the Amended New Loan and Security Agreement and Amended New Revolving Line of Credit (the Second Amended New Revolving Line of Credit) by: (1) extending the maturity date to June 11, 2017; (2) removing the $5.0 million minimum cash and availability requirement (defined as cash held at the lender plus the unused credit line availability amount); and (3) changing the applicable interest rate on outstanding amounts under the Second Amended New Revolving Line of Credit to a floating rate per annum equal to the prime referenced rate plus a potential applicable margin ranging from 0.00% to 1.50% . The Second Amended New Revolving Line of Credit allows for potential maximum aggregate advances of $35.0 million . The amount available is: (a) the lesser of (i) the Second Amended New Revolving Line of Credit or (ii) the amount available under the borrowing base (defined as 85% of eligible accounts receivable); minus (b) the outstanding principal balance of any advances. As of March 31, 2016 , the Company had utilized its entire availability under the line of credit. The effective interest rate for the Second Amended New Revolving Line of Credit was 4.00% as of March 31, 2016. The loan is secured by substantially all of the Company's assets. Under the terms of the Second Amended New Loan and Security Agreement, the Company is required to meet and maintain certain customary financial and nonfinancial covenants, one of which restricts the Company’s ability to pay any dividends or make any distribution or payment to redeem, retire or purchase any capital stock, subject to certain specified exceptions. The Company must also maintain with the lender all of its primary domestic operating and other deposit and investment accounts consisting of at least 95% of the Company’s total cash and cash equivalents. This agreement also includes customary subjective acceleration clauses, in addition, with this amendment to the Second Amended New Loan and Security Agreement, the Company is required to comply with certain financial covenants, including the following: Adjusted EBITDA . The Company is required to maintain specified quarterly Adjusted EBITDA, which is defined for this purpose, with respect to any trailing twelve-month period, as an amount equal to the sum of net income, plus (a) interest expense, plus (b) to the extent deducted in the calculation of net income, depreciation expense and amortization expense, plus (c) income tax expense, plus or minus (d) change in deferred revenue, less, (e) capitalized software development expenses, plus (f) any non-cash items such as stock-compensation expense (and other mutually agreed upon non-cash items), plus one-time non-recurring charges subject to the lenders approval. This covenant is to be tested on a quarterly basis beginning June 30, 2016. Adjusted Quick Ratio . The Company is required to maintain at all times a 1.10 monthly minimum Adjusted Quick Ratio, which is defined as the ratio of cash held at the lender and cash equivalents plus net accounts receivables to current liabilities (including all debt outstanding under the Second Amended New Revolving Line of Credit) minus the current portion of deferred revenue. This covenant is to be tested on a monthly basis. There were no modifications to any other significant terms with the Second Amended New Loan and Security Agreement. As of March 31, 2016, the Company was in compliance with all financial and nonfinancial covenants. |
Common Stock Reserved for Issua
Common Stock Reserved for Issuance | 3 Months Ended |
Mar. 31, 2016 | |
Stockholders' Equity, Number of Shares, Par Value and Other Disclosures [Abstract] | |
Common Stock Reserved for Issuance | Common Stock Reserved for Issuance The Company’s shares of common stock reserved for issuance as of December 31, 2015 and March 31, 2016 were as follows: 2015 2016 Lender warrants to purchase common stock 50,000 50,000 Stock options outstanding 1,074,473 1,084,476 Possible future issuance under equity incentive plan 380,460 690,256 Possible future issuance under employee stock purchase plan 60,318 122,818 Total shares reserved 1,565,251 1,947,550 |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Company accounts for stock options granted to employees based on their estimated fair values on the date of grant. The fair value of each stock option granted is estimated using the Black-Scholes option pricing model. The stock-based compensation expense is recognized on a straight-line basis over the requisite service period, net of estimated forfeitures. The Company accounts for shares to be issued under its employee stock purchase plan based on the fair value of the shares determined using the Black-Scholes option pricing model on the first day of the offering period. Stock-based compensation expense related to the employee stock purchase plan is recognized on a straight-line basis over the offering period, net of estimated forfeitures. Equity Incentive Plans Prior to the closing of the Company's initial public offering on March 11, 2015 ("IPO"), the Company had a stock-based compensation plan, the 2010 Equity Incentive Plan (the “2010 Plan”) under which the Company granted options to purchase shares of common stock to employees, directors and consultants. In January 2015, the Company’s board of directors adopted the 2015 Equity Incentive Plan (the “2015 Plan”), which was subsequently ratified by its stockholders in February 2015. The 2015 Plan is the successor to and continuation of the 2010 Plan. No additional awards are to be granted under the 2010 Plan, but all stock awards granted under the 2010 Plan remain subject to their existing terms. As of March 31, 2016, 690,256 shares are available for future grants to employees, non-employee directors, consultants and advisors under the 2015 Plan. The terms of the stock options, including the exercise price per share and vesting provisions, are determined by the board of directors. Historically, stock options were granted at exercise prices not less than the estimated fair market value of the Company’s common stock at the date of grant based upon numerous objective and subjective factors including: third-party valuations, preferred stock transactions with third-parties, current operating and financial performance, management estimates and future expectations. Subsequent to the completion of the IPO, the fair value of the Company's common stock on the grant date has been equal to the most recent New York Stock Exchange closing price of the Company's stock. Stock option grants typically vest upon the expiration of an initial one year cliff and vest monthly thereafter over the remaining thirty-six months assuming continuing service, and expire ten years from the grant date. Stock-based compensation expense related to stock options is included in the following line items in the condensed consolidated statements of operations for the three months ended March 31 (in thousands): Three Months 2015 (1) 2016 Other cost of revenue $ 13 $ 18 Sales and marketing 150 194 Research and development 175 335 General and administrative 234 394 $ 572 $ 941 (1) Stock-based compensation expense included a favorable $0.2 million fair value adjustment related to stock option liability awards prior to reclassification to additional paid-in capital during the three months ended March 31, 2015. The Company values stock options using the Black-Scholes option-pricing model, which requires the input of subjective assumptions, including the risk-free interest rate, expected life, expected stock price volatility and dividend yield. The risk-free interest rate assumption is based upon observed interest rates for constant maturity U.S. Treasury securities consistent with the expected term of the Company’s employee stock options. The expected life represents the period of time the stock options are expected to be outstanding and is based on the simplified method. The Company uses the simplified method due to the lack of sufficient historical exercise data to provide a reasonable basis upon which to otherwise estimate the expected life of the stock options. Expected volatility is based on historical volatilities for publicly traded stock of comparable companies over the estimated expected life of the stock options. The Company assumes no dividend yield, which is consistent with the Company’s history of not paying dividends. The following table summarizes the assumptions used for estimating the fair value of stock options granted to employees for the three months ended March 31 : Three Months 2015 2016 Risk-free interest rate 1.67% 1.38% - 1.51% Expected term (years) 6.03 6.08 Expected volatility 53% 46% - 47% Dividend yield —% —% The following table summarizes the Company’s stock option activity for the three months ended March 31, 2016 : Number of Options Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term Aggregate Intrinsic Value (in years) (in thousands) Outstanding balance at January 1, 2016 1,074,473 $ 30.69 8.39 $ 500 Granted 43,501 6.71 Exercised (8,250 ) 6.25 Cancelled (25,248 ) 27.92 Outstanding balance at March 31, 2016 1,084,476 $ 29.97 8.21 $ 535 Exercisable at March 31, 2016 434,323 $ 29.06 7.04 $ 512 Vested and expected to vest at March 31, 2016 1,007,222 $ 30.37 8.13 $ 528 The weighted-average grant date fair value for the Company’s stock options granted was $31.12 and $3.06 per share during the three months ended March 31, 2015 and 2016 , respectively. The total compensation cost related to unvested stock options not yet recognized as of March 31, 2016 was $9.1 million and will be recognized over a weighted-average period of approximately 1.33 years . The aggregate intrinsic value of stock options exercised during the three months ended March 31, 2015 was $2.4 million . The aggregate intrinsic value of stock options exercised during the three months ended March 31, 2016 was insignificant. There was no associated income tax benefit recognized for the three months ended March 31, 2015 and 2016 based on the Company’s valuation allowance that is recorded against its net deferred tax assets. Employee Stock Purchase Plan In January 2015, the Company’s board of directors adopted the 2015 Employee Stock Purchase Plan (the “2015 ESPP”), which was subsequently ratified by its stockholders in February 2015. The 2015 ESPP allows eligible employees to purchase shares of common stock at a discount through payroll deductions of up to 15% of their eligible compensation, subject to limitations set forth in the 2015 ESPP. Unless otherwise determined by the compensation committee, two offering periods of six months’ duration will begin each year on May 1 and November 1. Due to the timing of the Company's IPO, the first offering period started on March 5, 2015 and ended on October 30, 2015. At the end of each offering period, employees are able to purchase shares at the lower of 85% of the fair market value of the common stock on the first day of an offering period or on the purchase date. The Company has accumulated employee withholdings of $0.5 million as of March 31, 2016 associated with the next purchase date. Stock-based compensation expense related to the 2015 ESPP is included in the following line items in the condensed consolidated statements of operations for the three months ended March 31 (in thousands): Three Months 2015 2016 Other cost of revenue $ — $ 3 Sales and marketing — 28 Research and development — 54 General and administrative — 13 $ — $ 98 The fair value of the "look back" option for 2015 ESPP shares issued during the offering period is estimated using: (1) a 15% discount on the purchase of the stock; (2) 85% of the fair value of the call option; and (3) 15% of the fair value of the put option. The following table summarizes the assumptions used in the Black-Scholes option pricing model for estimating the fair value of employee stock purchase rights under the 2015 ESPP for the three months ended March 31 , 2016: 2016 Risk-free interest rate 0.27% Expected term (years) 0.50 Expected volatility 55% Dividend yield —% |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Litigation The Company is subject to various legal matters and claims in the ordinary course of business. Although the results of legal proceedings and claims cannot be predicted with certainty, including the matters noted below, in the opinion of management, there are currently no such known matters that will have a material effect on the financial condition, results of operations or cash flows of the Company. The Company, certain of its officers and directors, and certain investment banking firms who acted as underwriters in connection with the Company’s IPO, have been named as defendants in a putative class action lawsuit filed August 31, 2015 in the United States District Court for the Southern District of New York. The complaint alleges that the defendants violated Sections 11, 12 and 15 of the Securities Act by not including information regarding customer concentration, which the complaint characterizes as a known trend and/or significant factor required to be disclosed under federal securities regulations. The complaint seeks unspecified damages, interest and other costs. The Court appointed a Lead Plaintiff on November 18, 2015, and on January 19, 2016 the Lead Plaintiff filed a First Amended Complaint that repeats the same substantive allegations included in the initial complaint and continues to seek unspecified damages. On March 24, 2016, the Company filed a motion to dismiss the First Amended Complaint, which Plaintiffs have opposed. A hearing date for the Company’s motion to dismiss has not yet been set. The Company disputes these claims and intends to defend this matter vigorously. The Company cannot currently estimate a reasonably possible range of loss for this action. Legal fees are expensed in the period in which they are incurred. Purchase Commitments The Company has $5.4 million of non-cancelable contractual commitments as of March 31, 2016 , primarily related to purchases of data, third-party data centers and other support services. Of these commitments, $4.5 million and $0.9 million are due within the next year and within the next two years, respectively. Indemnification Agreements In the ordinary course of business, the Company may provide indemnifications of varying scope and terms to customers, vendors, lessors, business partners and other parties with respect to certain matters, including, but not limited to, losses arising out of breach of such agreements, services to be provided by the Company or from intellectual property infringement claims made by third parties. In addition, the Company has entered into indemnification agreements with directors and certain officers and employees that will require the Company, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors, officers or employees. Under certain circumstances, the Company’s indemnification obligations may include the cost of advancing legal expenses and indemnifying its officers, directors and underwriters for costs arising out of the litigation described above under “Commitments and Contingencies — Litigation,” to the extent such costs are not covered by the Company’s directors’ and officers’ liability insurance. There are no claims that the Company is aware of that could have a material effect on the Company’s financial position, results of operations or cash flows. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The Company calculates net loss per basic share by dividing net loss by the weighted-average number of shares outstanding during the reporting period. The Company calculates net loss per diluted share by dividing net loss by the weighted-average number of shares outstanding during the reporting period plus the effects of any dilutive common stock-based instruments. Due to the net losses for the three months ended March 31, 2015 and 2016 , basic and diluted loss per share were the same, as the effect of potentially dilutive securities would have been anti-dilutive. The following securities have been excluded from the calculation of weighted-average common shares outstanding because the effect is anti-dilutive for the three months ended March 31 : Three Months 2015 2016 Lender warrants to purchase common stock 50,000 50,000 2015 ESPP — 45,432 Stock options 838,549 1,084,476 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Reverse Stock Split On April 25, 2016, the Company filed a Certificate of Amendment to the Company’s Amended and Restated Certificate of Incorporation with the Secretary of State of the State of Delaware to effect a 1-for-4 reverse stock split of the Company's issued and outstanding capital stock. As a result of the reverse stock split, every 4 shares of the Company’s issued and outstanding common stock were automatically combined and reclassified into one share of the Company’s common stock. The reverse stock split affected all issued and outstanding shares of common stock, as well as common stock underlying stock options and warrants outstanding. No fractional shares will be issued in connection with the reverse stock split. Stockholders who would otherwise hold a fractional share of capital stock will receive a cash payment for any fractional share resulting from the split in an amount equal to such fraction multiplied by the closing sales price of the common stock as reported on the New York Stock Exchange on April 25, 2016, the last trading day immediately prior to the split. All disclosures of shares and per share data in the condensed consolidated financial statements and related notes have been retroactively adjusted to reflect the reverse stock split for all periods presented. Stock Exchange Listing Transfer On May 2, 2016, the Company provided written notice to the New York Stock Exchange of its intention to voluntarily delist its common stock on the New York Stock Exchange and to list its common stock on the Nasdaq Global Market. The common stock has been approved for listing on Nasdaq, with its continued trading under the symbol "MXPT." Trading of the Company’s common stock commenced on Nasdaq on May 13, 2016. |
Summary of Significant Accoun17
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary and have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). All intercompany accounts and transactions have been eliminated in consolidation. |
Basis of Presentation and Unaudited Interim Condensed Consolidated Financial Information | Basis of Presentation The condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company believes that its existing cash balances, together with its revolving line of credit, will be sufficient to meet its anticipated cash requirements through at least the next 12 months. Unaudited Interim Condensed Consolidated Financial Information The condensed consolidated financial statements and footnotes have been prepared in accordance with GAAP as contained in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) and applicable rules and regulations of the Securities and Exchange Commission’s (“SEC”) Rule 10-01 of Regulation S-X for interim financial information. In the opinion of management, the interim financial information includes all adjustments of a normal recurring nature necessary for a fair presentation of financial position, the results of operations, comprehensive loss, changes in stockholders’ equity and cash flows. The results of operations for the three months ended March 31, 2016 are not necessarily indicative of the results for the full year or the results for any future periods. The accompanying condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2015 ("Form 10-K"). The significant accounting policies and recent accounting pronouncements were described in Note 2 to the consolidated financial statements included in the Form 10-K. There have been no significant changes in or updates to the accounting policies since December 31, 2015 |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts in the condensed consolidated financial statements and accompanying notes. The Company evaluates its estimates, including those related to its allowance for doubtful accounts, stock-based compensation, income taxes and related valuation allowances and the fair value of common stock warrants. The Company bases its estimates on its historical experience and on various other assumptions that it believes to be reasonable, the results of which form the basis for making judgments about the carrying value of assets and liabilities. Actual results could differ from those estimates. |
Restricted Cash | Restricted Cash Restricted cash represents cash that is subject to contractual withdrawal restrictions and penalties. Restricted cash is classified within the condensed consolidated balance sheets based on the timing of when the restrictions are expected to lapse. The Company presents restricted cash related to its debt agreements in the condensed consolidated balance sheets based on timing of maturity. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash, cash equivalents and accounts receivable. All of the Company’s cash and cash equivalents are held at financial institutions that management believes to be of high credit quality. The Company’s cash and cash equivalent accounts exceed federally insured limits. The Company has not experienced any losses on cash and cash equivalents to date. To manage accounts receivable risk, the Company evaluates and monitors the creditworthiness of its customers. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts The Company extends credit to its customers without requiring collateral. Accounts receivable are stated at net realizable value. The Company utilizes the allowance method to provide for doubtful accounts based on management’s evaluation of the collectability of amounts due. The Company’s estimate is based on historical collection experience and the current status of accounts receivable. Historically, actual write-offs for uncollectible accounts have not significantly differed from the Company’s estimates. |
Internal-Use Software Development Costs | Internal-Use Software Development Costs The Company capitalizes certain costs associated with software developed for internal use, primarily consisting of direct labor costs associated with creating the software. Software development projects generally include three stages: the preliminary project stage (all costs are expensed as incurred); the application development stage (certain costs are capitalized and certain costs are expensed as incurred); and the post-implementation/operation stage (all costs are expensed as incurred). Costs capitalized in the application development stage primarily include costs of designing, coding and testing the software. Capitalization of costs requires judgment in determining when a project has reached the application development stage and the period over which the Company expects to benefit from the use of that software. Once the software is placed in service, these capitalized costs are amortized using the straight-line method over the estimated useful life of the software. |
Recently Adopted Accounting Pronouncements and Recent Accounting Pronouncements Not Yet Adopted | Recently Adopted Accounting Pronouncements In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs . This accounting standards update is to simplify the presentation of debt issuance cost. This new guidance requires that debt issuance cost related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with the treatment of debt discounts. The accounting standards update does not affect the recognition and measurement guidance for debt issuance costs. In August 2015, the FASB issued ASU 2015-15, Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements . This accounting standards update states that given the absence of authoritative guidance within ASU 2015-03 for debt issuance costs related to line of credit arrangements, the SEC would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the debt issuance costs ratably over the term of the line of credit arrangement, regardless of whether there are any outstanding borrowings on the line of credit arrangement. The Company adopted ASU 2015-03, effective January 1, 2016, on a retrospective basis. The adoption of these pronouncements did not have a material impact on the Company's consolidated results of operations, financial position or cash flows. Recent Accounting Pronouncements Not Yet Adopted In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers . The new standard provides a single principles-based, five-step model to be applied to all contracts with customers, which steps are to (1) identify the contract(s) with the customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when each performance obligation is satisfied. More specifically, revenue will be recognized when promised goods or services are transferred to the customer in an amount that reflects the consideration expected in exchange for those goods or services. This guidance states that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In August 2015, the FASB issued ASU 2015-14, which defers the effective date of ASU 2014-09 for all entities by one year. In March 2016, the FASB issued ASU 2016-08, which clarified the implementation guidance on principal versus agent considerations. ASU 2014-09, as amended by ASU 2015-14, is effective for interim or annual periods beginning after December 15, 2017. Early adoption of the standard is permitted, but not before the original effective date. Companies can transition to the standard either retrospectively or as a cumulative-effect adjustment as of the date of adoption. The Company plans to adopt ASU 2014-09 as of January 1, 2018. The Company is currently in the process of evaluating the impact that the adoption of ASU 2014-09 will have on its consolidated results of operations, financial position and cash flows, and selecting the method of transition to the new standard. In August 2014, the FASB issued ASU 2014-15, Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern . This guidance addresses management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. Management’s evaluation should be based on relevant conditions and events that are known and reasonably knowable at the date that the financial statements are issued. ASU 2014-15 is effective for interim or annual periods beginning after December 15, 2016. Early adoption is permitted. The Company does not expect to early adopt this guidance and is currently evaluating the impact of the adoption of this guidance on its consolidated results of operations, financial position and cash flows. In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes. This accounting standards update simplifies the presentation of deferred income taxes by eliminating the current requirement for an entity to separate deferred income tax liabilities and assets into current and noncurrent amounts in a classified statement of financial position. ASU 2015-17 requires an entity to classify deferred income tax liabilities and assets, as well as any related valuation allowance, as noncurrent within a classified balance sheet. This accounting standards update becomes effective for interim or annual periods beginning after December 15, 2016, and can be applied retrospectively or prospectively. Early adoption is permitted. The Company is currently evaluating the impact of the adoption of this guidance on its consolidated results of operations, financial position and cash flows. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . The purpose of this guidance is to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. This guidance supersedes previous accounting guidance under Topic 840. Under ASU 2016-02, a lessee will be required to recognize assets and liabilities for the rights and obligations created by leases for leases with lease terms of more than 12 months. Lessor accounting remains substantially similar to current GAAP. In addition, disclosures of leasing activities are to be expanded to include qualitative along with specific quantitative information. ASU 2016-02 is effective for interim or annual periods beginning after December 15, 2018 and early adoption is permitted. This standard requires lessees and lessors to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The Company does not expect to early adopt this guidance and is currently evaluating the impact of the adoption of this guidance on its consolidated results of operations, financial position and cash flows. In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting . ASU 2016-09 simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. ASU 2016-09 is effective for interim or annual periods beginning after December 15, 2016 and early adoption is permitted. The Company is currently evaluating the impact of the adoption of this guidance on its consolidated results of operations, financial position and cash flows. |
Fair Value Measurements | The Company uses a three-tier fair value hierarchy to classify and disclose all assets and liabilities measured at fair value on a recurring basis, as well as assets and liabilities measured at fair value on a non-recurring basis, in periods subsequent to their initial measurement. The hierarchy requires the Company to use observable inputs when available, and to minimize the use of unobservable inputs when determining fair value. The carrying amounts of certain of the Company’s financial instruments, including cash and cash equivalents, accounts receivable, other current assets, accounts payable and accrued expenses and other current liabilities and its variable rate short-term debt, approximate their respective fair values due to their short term nature. |
Stock-Based Compensation | The Company accounts for stock options granted to employees based on their estimated fair values on the date of grant. The fair value of each stock option granted is estimated using the Black-Scholes option pricing model. The stock-based compensation expense is recognized on a straight-line basis over the requisite service period, net of estimated forfeitures. The Company accounts for shares to be issued under its employee stock purchase plan based on the fair value of the shares determined using the Black-Scholes option pricing model on the first day of the offering period. Stock-based compensation expense related to the employee stock purchase plan is recognized on a straight-line basis over the offering period, net of estimated forfeitures. |
Earnings Per Share | The Company calculates net loss per basic share by dividing net loss by the weighted-average number of shares outstanding during the reporting period. The Company calculates net loss per diluted share by dividing net loss by the weighted-average number of shares outstanding during the reporting period plus the effects of any dilutive common stock-based instruments. |
Summary of Significant Accoun18
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Schedule of changes in the allowance for doubtful accounts | The following table presents the changes in the allowance for doubtful accounts for the three months ended March 31 (in thousands): Three Months 2015 2016 Allowance for doubtful accounts: Balance, beginning of period $ 179 $ 102 Add: adjustment for bad debts — 332 Less: write-offs, net of recoveries (6 ) (104 ) Balance, end of period $ 173 $ 330 |
Common Stock Reserved for Iss19
Common Stock Reserved for Issuance (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Stockholders' Equity, Number of Shares, Par Value and Other Disclosures [Abstract] | |
Schedule of common stock reserved for issuance | The Company’s shares of common stock reserved for issuance as of December 31, 2015 and March 31, 2016 were as follows: 2015 2016 Lender warrants to purchase common stock 50,000 50,000 Stock options outstanding 1,074,473 1,084,476 Possible future issuance under equity incentive plan 380,460 690,256 Possible future issuance under employee stock purchase plan 60,318 122,818 Total shares reserved 1,565,251 1,947,550 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of stock-based compensation expense | Stock-based compensation expense related to the 2015 ESPP is included in the following line items in the condensed consolidated statements of operations for the three months ended March 31 (in thousands): Three Months 2015 2016 Other cost of revenue $ — $ 3 Sales and marketing — 28 Research and development — 54 General and administrative — 13 $ — $ 98 Stock-based compensation expense related to stock options is included in the following line items in the condensed consolidated statements of operations for the three months ended March 31 (in thousands): Three Months 2015 (1) 2016 Other cost of revenue $ 13 $ 18 Sales and marketing 150 194 Research and development 175 335 General and administrative 234 394 $ 572 $ 941 (1) Stock-based compensation expense included a favorable $0.2 million fair value adjustment related to stock option liability awards prior to reclassification to additional paid-in capital during the three months ended March 31, 2015. |
Summary of the assumptions used for estimating the fair value of stock options granted to employees | The following table summarizes the assumptions used for estimating the fair value of stock options granted to employees for the three months ended March 31 : Three Months 2015 2016 Risk-free interest rate 1.67% 1.38% - 1.51% Expected term (years) 6.03 6.08 Expected volatility 53% 46% - 47% Dividend yield —% —% |
Summary of stock option activity | The following table summarizes the Company’s stock option activity for the three months ended March 31, 2016 : Number of Options Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term Aggregate Intrinsic Value (in years) (in thousands) Outstanding balance at January 1, 2016 1,074,473 $ 30.69 8.39 $ 500 Granted 43,501 6.71 Exercised (8,250 ) 6.25 Cancelled (25,248 ) 27.92 Outstanding balance at March 31, 2016 1,084,476 $ 29.97 8.21 $ 535 Exercisable at March 31, 2016 434,323 $ 29.06 7.04 $ 512 Vested and expected to vest at March 31, 2016 1,007,222 $ 30.37 8.13 $ 528 |
Summary of the assumptions used for estimating the fair value of shares to be granted under the 2015 ESPP | The following table summarizes the assumptions used in the Black-Scholes option pricing model for estimating the fair value of employee stock purchase rights under the 2015 ESPP for the three months ended March 31 , 2016: 2016 Risk-free interest rate 0.27% Expected term (years) 0.50 Expected volatility 55% Dividend yield —% |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Summary of anti-dilutive securities which are excluded from the calculation of weighted average common shares outstanding | The following securities have been excluded from the calculation of weighted-average common shares outstanding because the effect is anti-dilutive for the three months ended March 31 : Three Months 2015 2016 Lender warrants to purchase common stock 50,000 50,000 2015 ESPP — 45,432 Stock options 838,549 1,084,476 |
Description of Business - Organ
Description of Business - Organization (Details) | Mar. 31, 2016office |
United Kingdom | |
Entity Location [Line Items] | |
Number of offices | 1 |
Description of Business - Rever
Description of Business - Reverse Stock Split (Details) | Apr. 25, 2016 |
Subsequent Event | |
Subsequent Event [Line Items] | |
Stock split conversion ratio | 0.25 |
Summary of Significant Accoun24
Summary of Significant Accounting Policies - Restricted Cash (Details) - USD ($) | Mar. 31, 2016 | Mar. 07, 2016 | Dec. 31, 2015 |
Compensating Balances [Line Items] | |||
Restricted cash, short-term | $ 0 | $ 1,861,000 | |
Amended New Loan and Security Agreement | |||
Compensating Balances [Line Items] | |||
Restricted cash, short-term | 1,900,000 | ||
Available borrowing capacity | 3,100,000 | ||
Amended New Loan and Security Agreement | Minimum | |||
Compensating Balances [Line Items] | |||
Minimum amount required to be maintained by the company at all times | $ 5,000,000 | $ 5,000,000 |
Summary of Significant Accoun25
Summary of Significant Accounting Policies - Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Allowance for doubtful accounts: | ||
Balance, beginning of period | $ 102 | $ 179 |
Add: adjustment for bad debts | 332 | 0 |
Less: write-offs, net of recoveries | (104) | (6) |
Balance, end of period | $ 330 | $ 173 |
Summary of Significant Accoun26
Summary of Significant Accounting Policies - Internal-Use Software Development Costs (Details) - Capitalized internal-use software costs - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Internal-Use Software Development Costs | |||
Capitalized development costs | $ 1.9 | $ 1.5 | |
Amortization expense | 1 | $ 0.6 | |
Net book value | $ 10.7 | $ 9.8 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Level 1 | Money Market Fund | ||
Assets: | ||
Cash and cash equivalents - Money Market Fund | $ 5.5 | $ 18.6 |
Debt - Agreement Terms (Details
Debt - Agreement Terms (Details) - Amended New Loan and Security Agreement | Mar. 08, 2016 | Mar. 31, 2016USD ($) | Mar. 07, 2016USD ($) | Dec. 31, 2015USD ($) |
Debt | ||||
Maximum borrowing capacity | $ 35,000,000 | |||
Percentage of accounts receivable used in calculation of amount available under the borrowing base | 85.00% | |||
Effective interest rate | 4.00% | |||
Minimum percentage of the Company’s total cash and cash equivalents balance required to be maintained with lender | 95.00% | |||
Minimum | ||||
Debt | ||||
Minimum amount required to be maintained by the company at all times | $ 5,000,000 | $ 5,000,000 | ||
Revolving Line of Credit | Minimum | ||||
Debt | ||||
Debt covenant, required minimum adjusted quick ratio | 1.10 | |||
Revolving Line of Credit | Minimum | Prime | ||||
Debt | ||||
Potential interest rate margin (as a percent) | 0.00% | |||
Revolving Line of Credit | Maximum | Prime | ||||
Debt | ||||
Potential interest rate margin (as a percent) | 1.50% |
Common Stock Reserved for Iss29
Common Stock Reserved for Issuance - Common Stock Reserved for Future Issuance (Details) - shares | Mar. 31, 2016 | Dec. 31, 2015 |
Common Stock Reserved for Issuance | ||
Total shares reserved | 1,947,550 | 1,565,251 |
Equity Incentive Plans | ||
Common Stock Reserved for Issuance | ||
Total shares reserved | 690,256 | 380,460 |
2015 Employee Stock Purchase Plan | ||
Common Stock Reserved for Issuance | ||
Total shares reserved | 122,818 | 60,318 |
Stock Options | ||
Common Stock Reserved for Issuance | ||
Total shares reserved | 1,084,476 | 1,074,473 |
Lender warrants to purchase common stock | ||
Common Stock Reserved for Issuance | ||
Total shares reserved | 50,000 | 50,000 |
Stock-Based Compensation - Equi
Stock-Based Compensation - Equity Incentive Plan Terms (Details) | 3 Months Ended |
Mar. 31, 2016shares | |
Equity Incentive Plans | Stock options | |
Award terms | |
Term of grant (in years) | 10 years |
Equity Incentive Plans | One Year Cliff | Stock options | |
Award terms | |
Vesting period | 1 year |
Equity Incentive Plans | Monthly | Stock options | |
Award terms | |
Vesting period | 36 months |
2015 Equity Incentive Plan | |
Stock-Based compensation | |
Shares available for future grants | 690,256 |
Stock-Based Compensation - Allo
Stock-Based Compensation - Allocation of Stock-Based Compensation Expense, Stock Options (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Equity Incentive Plans | ||
Share-based compensation expense by statement of operations line item | ||
Change in fair value included in total share based compensation | $ (200) | |
Stock options | ||
Share-based compensation expense by statement of operations line item | ||
Stock-based compensation expense | 941 | $ 572 |
Stock options | Other cost of revenue | ||
Share-based compensation expense by statement of operations line item | ||
Stock-based compensation expense | 18 | 13 |
Stock options | Sales and marketing | ||
Share-based compensation expense by statement of operations line item | ||
Stock-based compensation expense | 194 | 150 |
Stock options | Research and development | ||
Share-based compensation expense by statement of operations line item | ||
Stock-based compensation expense | 335 | 175 |
Stock options | General and administrative | ||
Share-based compensation expense by statement of operations line item | ||
Stock-based compensation expense | $ 394 | $ 234 |
Stock-Based Compensation - Fair
Stock-Based Compensation - Fair Value Assumptions, Stock Options (Details) - Employee Stock Options | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Fair Value Assumptions using Black-Scholes option pricing model | ||
Risk-free interest rate | 1.67% | |
Risk free interest rate, minimum | 1.38% | |
Risk free interest rate, maximum | 1.51% | |
Expected term (years) | 6 years 29 days | 6 years 11 days |
Expected volatility, minimum | 46.00% | |
Expected volatility, maximum | 47.00% | |
Expected volatility | 53.00% | |
Dividend yield | 0.00% | 0.00% |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Number of Options | ||
Outstanding balance at beginning of period (in shares) | 1,074,473 | |
Granted (in shares) | 43,501 | |
Exercised (in shares) | (8,250) | |
Cancelled (in shares) | (25,248) | |
Outstanding balance at end of period (in shares) | 1,084,476 | 1,074,473 |
Exercisable at end of period (in shares) | 434,323 | |
Vested and expected to vest at end of period (in shares) | 1,007,222 | |
Weighted Average Exercise Price | ||
Outstanding balance at beginning of period (in usd per share) | $ 30.69 | |
Granted (in usd per share) | 6.71 | |
Exercised (in usd per share) | 6.25 | |
Cancelled (in usd per share) | 27.92 | |
Outstanding balance at end of period (in usd per share) | 29.97 | $ 30.69 |
Exercisable at end of period (in usd per share) | 29.06 | |
Vested and expected to vest at end of period (in usd per share) | $ 30.37 | |
Weighted Average Remaining Contractual Term | ||
Outstanding balance at end of period (in years) | 8 years 2 months 16 days | 8 years 4 months 21 days |
Exercisable at end of period (in years) | 7 years 15 days | |
Vested and expected to vest at end of period (in years) | 8 years 1 month 17 days | |
Aggregate Intrinsic Value | ||
Outstanding balance at end of period | $ 535 | $ 500 |
Exercisable at end of period | 512 | |
Vested and expected to vest at end of period | $ 528 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Disclosures (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Stock-Based compensation | ||
Weighted-average grant date fair value (in usd per share) | $ 3.06 | $ 31.12 |
Unrecognized compensation cost related to nonvested share-based compensation arrangements | $ 9.1 | |
Intrinsic value of options exercised | $ 2.4 | |
Stock options | ||
Stock-Based compensation | ||
Expected weighted-average period for recognition of unrecognized stock-based compensation costs (in years) | 1 year 3 months 29 days |
Stock-Based Compensation - Empl
Stock-Based Compensation - Employee Stock Purchase Plan (Details) - 2015 Employee Stock Purchase Plan $ in Millions | 1 Months Ended | 3 Months Ended |
Jan. 31, 2015offering_period | Mar. 31, 2016USD ($) | |
Stock-Based compensation | ||
Maximum percentage of eligible compensation per employee to purchase shares of common stock | 15.00% | |
Number of offering periods under terms of plan | offering_period | 2 | |
Offering periods beginning on May 1 and November 1 | 6 months | |
Employee purchase price, percentage of fair market value of common stock | 85.00% | |
Accumulated employee withholdings | $ | $ 0.5 | |
Discount on purchase of stock (as a percent) | 15.00% | |
Call Option | ||
Stock-Based compensation | ||
Fair value of option (as a percent) | 85.00% | |
Put Option | ||
Stock-Based compensation | ||
Fair value of option (as a percent) | 15.00% |
Stock-Based Compensation - Al36
Stock-Based Compensation - Allocation of Stock-Based Compensation Expense, ESPP (Details) - 2015 Employee Stock Purchase Plan - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
ESPP stock-based compensation expense by statement of operations line item | ||
Stock-based compensation expense | $ 98 | $ 0 |
Other cost of revenue | ||
ESPP stock-based compensation expense by statement of operations line item | ||
Stock-based compensation expense | 3 | 0 |
Sales and marketing | ||
ESPP stock-based compensation expense by statement of operations line item | ||
Stock-based compensation expense | 28 | 0 |
Research and development | ||
ESPP stock-based compensation expense by statement of operations line item | ||
Stock-based compensation expense | 54 | 0 |
General and administrative | ||
ESPP stock-based compensation expense by statement of operations line item | ||
Stock-based compensation expense | $ 13 | $ 0 |
Stock-Based Compensation - Fa37
Stock-Based Compensation - Fair Value Assumptions, ESPP (Details) - 2015 Employee Stock Purchase Plan | 3 Months Ended |
Mar. 31, 2016 | |
Stock-Based compensation | |
Risk-free interest rate | 0.27% |
Expected term (years) | 6 months |
Expected volatility | 55.00% |
Dividend yield | 0.00% |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Mar. 31, 2016USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Total contractual commitments | $ 5.4 |
Commitments due within next year | 4.5 |
Commitments due within one to two years | $ 0.9 |
Earnings Per Share (Details)
Earnings Per Share (Details) - shares | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Lender warrants to purchase common stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from the calculation of weighted average common shares outstanding | 50,000 | 50,000 |
2015 ESPP | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from the calculation of weighted average common shares outstanding | 45,432 | 0 |
Stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from the calculation of weighted average common shares outstanding | 1,084,476 | 838,549 |
Subsequent Events - Subsequent
Subsequent Events - Subsequent Events (Details) | Apr. 25, 2016 |
Subsequent Event | |
Subsequent Event [Line Items] | |
Stock split conversion ratio | 0.25 |