Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Aug. 06, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | SAIL | |
Entity Registrant Name | SailPoint Technologies Holdings, Inc. | |
Entity Central Index Key | 1,627,857 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding (in shares) | 87,638,578 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Current assets | ||
Cash and cash equivalents | $ 81,809 | $ 116,049 |
Restricted cash | 120 | 78 |
Accounts receivable | 55,196 | 72,907 |
Prepayments and other current assets | 9,784 | 10,013 |
Total current assets | 146,909 | 199,047 |
Property and equipment, net | 3,595 | 3,018 |
Deferred tax asset - non-current | 264 | 264 |
Other non-current assets | 3,328 | 3,542 |
Goodwill | 219,377 | 219,377 |
Intangible assets, net | 76,773 | 81,185 |
Total assets | 450,246 | 506,433 |
Current liabilities | ||
Accounts payable | 2,894 | 2,231 |
Accrued expenses and other liabilities | 14,106 | 22,636 |
Income taxes payable | 1,423 | 1,688 |
Deferred revenue | 81,322 | 73,671 |
Total current liabilities | 99,745 | 100,226 |
Long-term debt | 9,640 | 68,329 |
Other long-term liabilities | 51 | 27 |
Deferred revenue non-current | 13,817 | 9,454 |
Total liabilities | 123,253 | 178,036 |
Commitments and contingencies (Note 4) | ||
Stockholders’ equity | ||
Common stock, $0.0001 par value, authorized 300,000,000 shares, issued and outstanding 86,596,023 shares at June 30, 2018 and 84,948,126 shares at December 31, 2017 | 9 | 8 |
Preferred stock, $0.0001 par value, authorized 10,000,000 shares, no shares issued and outstanding at June 30, 2018 and December 31, 2017 | ||
Additional paid in capital | 363,818 | 353,609 |
Accumulated deficit | (36,834) | (25,220) |
Total stockholders' equity | 326,993 | 328,397 |
Total liabilities and stockholders’ equity | $ 450,246 | $ 506,433 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2018 | Dec. 31, 2017 |
Statement Of Financial Position [Abstract] | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 86,596,023 | 84,948,126 |
Common stock, shares outstanding | 86,596,023 | 84,948,126 |
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenue | ||||
Total revenue | $ 54,560 | $ 39,260 | $ 104,274 | $ 74,726 |
Cost of revenue | ||||
Total cost of revenue | 13,376 | 10,695 | 26,146 | 20,830 |
Gross profit | 41,184 | 28,565 | 78,128 | 53,896 |
Operating expenses | ||||
Research and development | 10,115 | 7,966 | 19,877 | 14,893 |
General and administrative | 7,743 | 3,442 | 15,400 | 6,474 |
Sales and marketing | 25,163 | 18,340 | 48,978 | 33,513 |
Total operating expenses | 43,021 | 29,748 | 84,255 | 54,880 |
Loss from operations | (1,837) | (1,183) | (6,127) | (984) |
Other expense, net: | ||||
Interest expense, net | (2,800) | (2,696) | (3,978) | (5,353) |
Other, net | (569) | (30) | (716) | (94) |
Total other expense, net | (3,369) | (2,726) | (4,694) | (5,447) |
Loss before income taxes | (5,206) | (3,909) | (10,821) | (6,431) |
Income tax expense | (441) | (395) | (793) | (156) |
Net loss | (5,647) | (4,304) | (11,614) | (6,587) |
Net loss available to common shareholders | $ (5,647) | $ (10,724) | $ (11,614) | $ (19,177) |
Net loss per share | ||||
Basic | $ (0.07) | $ (0.22) | $ (0.14) | $ (0.40) |
Diluted | $ (0.07) | $ (0.22) | $ (0.14) | $ (0.40) |
Weighted average shares outstanding | ||||
Basic | 86,246,056 | 47,930,190 | 85,984,103 | 47,567,048 |
Diluted | 86,246,056 | 47,930,190 | 85,984,103 | 47,567,048 |
Licenses | ||||
Revenue | ||||
Total revenue | $ 19,128 | $ 13,341 | $ 36,115 | $ 25,577 |
Cost of revenue | ||||
Total cost of revenue | 1,260 | 1,110 | 2,398 | 2,197 |
Subscription | ||||
Revenue | ||||
Total revenue | 25,051 | 16,324 | 48,056 | 31,276 |
Cost of revenue | ||||
Total cost of revenue | 4,919 | 3,938 | 9,577 | 7,513 |
Service and other | ||||
Revenue | ||||
Total revenue | 10,381 | 9,595 | 20,103 | 17,873 |
Cost of revenue | ||||
Total cost of revenue | $ 7,197 | $ 5,647 | $ 14,171 | $ 11,120 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Operating activities | |||||
Net loss | $ (5,647) | $ (4,304) | $ (11,614) | $ (6,587) | |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||
Depreciation and amortization expense | 5,278 | 4,978 | |||
Amortization of loan origination fees | 191 | 307 | |||
Loss on modification and partial extinguishment of debt | 1,500 | 1,536 | $ 1,700 | ||
Gain on disposal of fixed assets | (48) | (5) | |||
Stock-based compensation expense | 4,116 | 185 | 9,255 | 343 | |
Changes in operating assets and liabilities: | |||||
Accounts receivable | 17,711 | 1,283 | |||
Prepayments and other current assets | 229 | 1,743 | |||
Other non-current assets | 214 | (1,570) | |||
Accounts payable | 663 | 835 | |||
Accrued expenses and other liabilities | (8,557) | (2,731) | |||
Income taxes payable | (264) | (229) | |||
Deferred revenue | 12,013 | 7,662 | |||
Net cash provided by operating activities | 26,607 | 6,029 | |||
Investing activities | |||||
Purchase of property and equipment | (1,405) | (1,263) | |||
Proceeds from sale of property and equipment | 8 | 109 | |||
Net cash used in investing activities | (1,397) | (1,154) | |||
Financing activities | |||||
Repayment of debt | (60,000) | ||||
Prepayment penalty and fees | (300) | ||||
Proceeds from borrowing | 50,000 | ||||
Dividend payments | (50,387) | ||||
Debt issuance costs | (1,494) | ||||
Repurchase of equity shares | (1) | (442) | |||
Exercise of stock options | 893 | 136 | |||
Net cash used in financing activities | (59,408) | (2,187) | |||
(Decrease) increase in cash | (34,198) | 2,688 | |||
Cash, cash equivalents and restricted cash, beginning of period | 116,127 | 18,272 | 18,272 | ||
Cash, cash equivalents and restricted cash, end of period | $ 81,929 | $ 20,960 | 81,929 | 20,960 | $ 116,127 |
Supplemental disclosure of cash flow information: | |||||
Cash paid for interest | 2,401 | 5,882 | |||
Cash paid for income taxes | 723 | 374 | |||
Conversion of prepaid incentive units to common stock (Note 7) | $ 65 | $ 21 |
Organization and Description of
Organization and Description of Business | 6 Months Ended |
Jun. 30, 2018 | |
Organization And Description Of Business [Abstract] | |
Organization and Description of Business | 1. Organization and Description of Business SailPoint Technologies Holdings, Inc. (“we,” “our,” “the Company” or “SailPoint”) was incorporated in the state of Delaware on August 8, 2014, in preparation for the purchase of SailPoint Technologies, Inc. The purchase (the “Acquisition”) occurred on September 8, 2014. SailPoint Technologies, Inc. was formed July 14, 2004 as a Delaware corporation. The Company designs, develops, and markets identity governance software that helps organizations govern user access to critical systems and data. The Company currently markets its products and services throughout North America, Europe and the Asia Pacific regions. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated interim financial statements have been prepared in accordance with Article 10 of Regulation S-X, “Interim Financial Statements” and the rules and regulations for Form 10-Q of the Securities and Exchange Commission (the “SEC”). Pursuant to those rules and regulations, the Company has condensed or omitted certain information and footnote disclosure it normally includes in its annual consolidated financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). The unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the balance sheet, statements of operations and the statements of cash flows for the interim periods but are not necessarily indicative of the results of operations to be anticipated for the full year ending December 31, 2018 or any future period. Our unaudited consolidated financial statements have been prepared in a manner consistent with the accounting principles described in our Company’s Annual Report on Form 10-K for the year ended December 31, 2017, which was filed with the SEC on March 19, 2018 (the “Annual Report”). These financial statements and accompanying notes should be read in conjunction with the consolidated financial statements and notes thereto in the Company’s Annual Report. All intercompany accounts and transactions have been eliminated in consolidation. Cash, Cash Equivalents and Restricted Cash We consider all highly liquid investments with an original maturity of three months or less from date of purchase to be cash equivalents. The Company is required to maintain a small amount of restricted cash to guarantee rent payments in a foreign subsidiary. Segment Information and Concentration of Credit and Other Risks Segment Information The Company operates as one operating segment. The Company’s chief operating decision maker is its chief executive officer, who reviews financial information presented on a consolidated basis for purposes of making operating decisions, assessing financial performance and allocating resources. ASC 280, Segment Reporting Three months ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (In thousands) United States $ 34,497 $ 27,105 $ 67,195 $ 53,020 EMEA (1) 13,281 8,039 24,952 13,853 Rest of the World (1) 6,782 4,116 12,127 7,853 Total revenue $ 54,560 $ 39,260 $ 104,274 $ 74,726 (1) No single country represented more than 10% of our consolidated revenue. Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash and cash equivalents and accounts receivable. The Company maintains its cash in bank deposit accounts that, at times, may exceed federally insured limits. There is no concentration of credit risk for customers as no individual entity represented more than 10% of the balance in accounts receivable as of June 30, 2018 and December 31, 2017 or 10% of revenue for three and six months ended June 30, 2018 and 2017. The Company does not experience concentration of credit risk in foreign countries as no foreign country represents more than 10% of the Company’s condensed consolidated revenues or net assets. Significant Accounting Policies There have been no significant changes to the Company’s significant accounting policies, which are discussed in Note 2 of “Notes to Consolidated Financial Statements” in the Annual Report. Recently Issued Accounting Standards Not Yet Adopted Under the Jumpstart Our Business Startups Act (the “JOBS Act”), emerging growth companies can delay adopting new or revised accounting standards until such time as those standards apply to private companies. We have elected to take advantage of the longer phase-in periods for the adoption of new or revised financial accounting standards under the JOBS Act until we are no longer an emerging growth company. In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No . , Revenue from Contracts with Customers (Topic 606) Revenue Recognition December 15, 2017 as the company will be designated a large accelerated filer on December 31, 2018, at which time the company will no longer be an emerging growth company. With the evaluation of ASC 606 adoption, the Com pany plans to . The Company’s determination was made upon a number of factors such as the significance of the impact of the new standard on the Company’s financial results, system readiness, including that of software procured from third-party providers, and the Company’s ability to accumulate and analyze the information necessary to assess the impact on prior period financial statements, as necessary and earlier than expected . The Company will continue to The Company will adopt the new revenue standard for the annual reporting period ending December 31, 2018, using the modified retrospective transition method. Under this method, the Company elects to apply the cumulative effect method to contracts that are not complete as of the adoption date. The Company is continuing to finalize the impact of adopting the new revenue standard on its condensed consolidated financial statements and related disclosures, changes to its accounting policies and practices and controls to support the new revenue recognition standard. The Company has developed a project plan for this transition, which includes necessary changes to accounting policies, processes, internal controls, and system requirements and is progressing as planned. The Company expects to implement the plan in time to report in accordance with ASC 606 for the annual reporting period for the year ended December 31, 2018. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory In July 2017, the FASB issued ASU No. 2017-11, Earnings Per Share (Topic 260). Recently Adopted Accounting Standards In May 2017, the FASB issued ASU No. 2017-09, Compensation—Stock Compensation (Topic 718). |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Jun. 30, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 3. Goodwill and Intangible Assets Goodwill Goodwill represents the excess of the purchase price over the identifiable tangible and intangible assets acquired plus liabilities assumed arising from business combinations. The carrying amount of goodwill was $ . million for the periods ended and 2017 as there has been no acquisition activity in these periods. occurs Intangible Assets Total cost and accumulated amortization of intangible assets is comprised of the following: As of Weighted Average Useful Life June 30, 2018 December 31, 2017 Intangible assets, net (In years) (In thousands) Customer lists 15 $ 42,500 $ 42,500 Developed technology 9.6 42,000 42,000 Trade names and trademarks 17 24,500 24,500 Order backlog 1.5 1,100 1,100 Non-competition agreements and related items 4.4 810 810 Total intangible assets 110,910 110,910 Less: Accumulated amortization (34,137 ) (29,725 ) Total intangible assets, net $ 76,773 $ 81,185 Amortization expense of intangible assets was $2.2 million and $4.4 million for the three and six months ended June 30, 2018 respectively; Three months ended Six months ended June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017 (In thousands) Cost of revenue – license $ 1,008 $ 1,008 $ 2,016 $ 2,016 Cost of revenue – subscription 96 96 192 192 Research and development 34 81 68 81 Sales and marketing 1,068 1,022 2,136 2,139 Total amortization of acquired intangibles $ 2,206 $ 2,207 $ 4,412 $ 4,428 Periodically, the Company evaluates intangible assets for possible impairment. There were no impairments for intangible assets during the three and six months ended June 30, 2018 and 2017. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 4. Commitments and Contingencies Operating Leases The Company leases its facilities under non-cancelable operating lease agreements. The majority of these agreements include a renewal option, and/or require the Company to pay taxes, insurance, and maintenance costs. Certain of these facility leases contain predetermined fixed escalations of the minimum rentals, and the Company recognizes expense for these leases on a straight-line basis. The difference between the recognized rental expense and amounts payable under the lease is recorded as deferred rent, which is included in accrued expenses and other liabilities on the accompanying condensed consolidated balance sheets. Rent expense under all operating leases was approximately $1.0 million and $1.9 million for the three and six months ended June 30, 2018, respectively, and $0.7 million and $1.2 million for the three months and six months ended June 30, 2017, respectively. Indemnification Arrangements In the ordinary course of business, the Company enters into contractual arrangements under which it agrees to provide indemnification of varying scope and terms to customers, business partners and other parties with respect to certain matters, including, losses arising out of the breach of such agreements, intellectual property infringement claims made by third parties, and other liabilities with respect to our products and services and business. In these circumstances, payment may be conditional on the other party making a claim pursuant to the procedures specified in a particular contract. The Company includes service level commitments to its cloud customers warranting certain levels of uptime reliability and performance and permitting those customers to receive credits in the event that it fails to meet those levels. To date, the Company has not incurred any material costs as a result of these commitments and we expect the time between any potential claims and issuance of the credits to be short. As a result, the Company has not accrued any liabilities related to these commitments in our condensed consolidated financial statements. Litigation Claims and Assessments The Company is subject to claims and suits that may arise from time to time in the ordinary course of business. In addition, some legal actions, claims and governmental inquiries may be instituted or asserted in the future against us and our subsidiaries. Although the outcome of our legal proceedings cannot be predicted with certainty and no assurances can be provided, based upon current information, we do not believe the liabilities, if any, which may ultimately result from the outcome of such matters, individually or in the aggregate, will have a material adverse impact on our financial statements. |
Line of Credit and Long-Term De
Line of Credit and Long-Term Debt | 6 Months Ended |
Jun. 30, 2018 | |
Line Of Credit Facility [Abstract] | |
Line of Credit and Long-Term Debt | 5. Line of Credit and Long-Term Debt The outstanding balance of the term loan at June 30, 2018 and December 31, 2017 was $10.0 million and $70.0 million, respectively. There was no outstanding balance of the revolving line of credit at June 30, 2018 and December 31, 2017. The Company was in compliance with all applicable covenants as of June 30, 2018 and December 31, 2017. In 2017, the Company amended its existing credit facility in connection with the consummation of its initial public offering. Such amendment required that the Company use a portion of its net proceeds to repay $90.0 million of borrowings outstanding under its term loan facility to reduce the aggregate outstanding principal amount thereof to $70.0 million. This repayment was subject to a prepayment premium of 1.50% approximately $1.4 million, which is recorded as interest expense. As a result of this paydown, the Company incurred a $1.7 million loss on the modification and partial extinguishment of debt which was also recorded as interest expense in the consolidated statements of operations for the years ended December 31, 2017. n connection with its new corporate headquarters lease, the Company executed a standby letter of credit in the amount of $6.0 million. The term loan and the credit facility both The Company has incurred total debt issuance costs of $4.5 million in connection with these loan and security agreements of which $1.4 million relates to the modified agreement as of December 31, 2017. These costs are being amortized to interest expense over the life of the debt on a straight-line basis, which approximates the interest method. On June 29, 2018, the Company voluntarily prepaid $60.0 million of the borrowings outstanding under its remaining term loan to reduce the aggregate outstanding principal balance to $10.0 million. This repayment was subject to a prepayment premium of 0.50%, approximately $0.3 million, which is recorded as interest expense. In connection with the debt paydown, the Company incurred a $1.5 million loss on the modification and partial extinguishment of debt which was also recorded as interest expense in the consolidated statements of operations for the three and six months ended June 30, 2018. Amortization of debt issuance costs for the existing loan and security agreement as of June 30, 2018 and June 30, 2017, was approximately $0.2 million and $0.3 million, respectively, and was recorded in interest expense in the accompanying condensed consolidated statements of operations. As of June 30, 2018, the balance of long-term debt is $9.6 million, which is presented net of $0.4 million of unamortized debt issuance costs. The maturity date on the term loan is August 16, 2021, with principal payment due in full on the maturity date, and interest payments due quarterly. The rate prevalent at June 30, 2018 was 6.8% consisting of the 2.3 |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 6. Related Party Transactions During the three and six months ended June 30, 2018, the Company engaged in ordinary sales transactions of $46,000 and $194,000 and purchase transactions of $208,000 and $310,000, respectively, with entities affiliated with its controlling entity. During the three and six months ended June 30, 2017, the Company engaged in ordinary sales transactions of $93,000 and $93,000 and purchase transactions of $177,000 and $559,000, respectively, with entities affiliated with its controlling entity. At June 30, 2018 and December 31, 2017, the accompanying condensed consolidated balance sheets included accounts receivable balance of $0 and $516,000, respectively, and immaterial accounts payable balances. In September 2014, the Company entered into an advisory services agreement (the “Consulting Agreement”) with its controlling entity. The Consulting Agreement requires quarterly payments from September 8, 2014 through December 31, 2018 for business consulting services provided by the controlling entity to the Company. Consulting fees from the Consulting Agreement totaled $312,000 and $625,000 in the three and six months ended June 30, 2017, respectively, and were included in general and administrative expenses in the accompanying condensed consolidated statements of operations. Upon completion of the Company’s initial public offering, the Consulting Agreement ceased, and the Company was no longer required to make future payments. |
Stock Option Plans and Stock-Ba
Stock Option Plans and Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Option Plans and Stock-Based Compensation | 7. Stock Option Plans and Stock-Based Compensation 2015 Stock Option Plans In 2015, the Company adopted (i) the Amended and Restated 2015 Stock Option and Grant Plan and (ii) the 2015 Stock Incentive Plan (together the “2015 Stock Option Plans”) under which it may grant incentive stock options (“ISOs”), nonqualified stock options (“NSOs”), and restricted stock to purchase shares of common stock. The 2015 Stock Option Plans reserve 5,000,000 shares of common stock for issuance as ISOs, 500,000 shares of restricted stock and 250,000 shares for issuance under the 2015 Stock Incentive Plan. Under the 2015 Stock Option Plans ISOs may not be granted at less than fair market value on the date of the grant and generally vest over a four-year period based on continued service. Certain options are subject to vesting based on certain future performance targets. Options generally expire ten years after the grant date. At June 30, 2018, 497,868 shares were available for issuance under the Amended and Restated 2015 Stock Option and Grant Plan. At June 30, 2018, 132,202 shares were available for issuance under the 2015 Stock Incentive Plan. The Company currently uses authorized and unissued shares to satisfy share award exercises. 2017 Long Term Incentive Plan In November 2017, the Company’s board of directors adopted the 2017 Long Term Incentive Plan (the “2017 Plan”). As of December 31, 2017, the Company had reserved 8,856,876 shares of common stock available for issuance under the 2017 Plan to employees, directors, officers and consultants of the Company and its subsidiaries. The number of shares of common stock available for issuance under the 2017 Plan will be increased on each January 1 hereafter by 4,428,438 shares of common stock. Options granted under the 2017 Plan generally vest over four years. Common stock subject to an award that expires or is canceled, forfeited, exchanged, settled in cash or otherwise terminated without delivery of shares, and shares withheld or surrendered to pay the exercise price of, or to satisfy the withholding obligations with respect to an award, will become available for future grants under the 2017 Plan. At June 30, 2018, 6,441,482 shares were available for issuance under the 2017 Plan. The Company currently uses authorized and unissued shares to satisfy share award exercises. In November 2017, the Company’s board of directors adopted the Employee Stock Purchase Plan (the "ESPP"). The ESPP became effective on in November of 2017, after the date our registration statement was declared effective by the SEC. articipation in the ESPP is not effective and Options Activity The fair value for the Company’s stock options granted during the year ended June 30, 2018 and 2017 was estimated at the date of grant using a Black Scholes option-pricing model using the following weighted average assumptions: June 30, 2018 June 30, 2017 Expected dividend rate 0% 0% Expected volatility 40.0% - 41.1% 49.0% Risk-free interest rate 2.63% - 2.91% 2.11% - 2.11% Expected term (in years) 6.25 6.25 The following table summarizes option activity under the 2017 Plan and related information: Number of Options Weighted Average Exercise Price (per share) Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value Balances at December 31, 2017 3,500,075 $ 5.43 8.8 31,784,488 Granted 50,879 $ 20.81 Exercised (365,111 ) $ 2.45 Forfeited (82,907 ) $ 2.78 Balances at June 30, 2018 3,102,936 $ 6.11 8.3 57,188,986 Options vested and expected to vest at June 30, 2018 3,102,936 $ 6.11 8.3 57,188,986 Options vested and exercisable at June 30, 2018 830,912 $ 2.33 7.3 18,455,289 The Company expects all outstanding stock options at June 30, 2018 to fully vest. The weighted average grant date fair value per share for the period ended June 30, 2018 and 2017 was $9.19 and $1.64, respectively. Compensation expense relating to stock options was approximately $0.7 million and $2.5 million for the three and six months ended June 30, 2018, respectively, and approximately $0.2 million and $0.3 million for the three and six months ended June 30, 2017, respectively. The total fair value of shares vested during the three and six months ended June 30, 2018 was approximately $0.2 million and $0.6 million, respectively; and during the three and six months ended June 30, 2017 was approximately $0.1 million and $0.2 million, respectively. As of June 30, 2018, the total unrecognized compensation expense related to non-vested stock options granted is $9.2 million and is expected to be recognized over a weighted average period of 2.51 years. As of June 30, 2017, the total unrecognized compensation expense related to non-vested stock options granted was $1.4 million and was expected to be recognized over a weighted average period of 2.78 years. Incentive Unit Plan In 2014 and 2015, the Company granted shares of the Company’s common stock (the “incentive units”) to certain members of management pursuant to restricted stock agreements (the “RSAs”). The incentive units were granted with an exercise price equal to the fair market value on the date of grant, are subject to vesting, and are subject to the Company’s right to repurchase until vested. Upon vesting, the incentive units automatically convert to unrestricted common stock. Prior to modification, 50% of incentive units granted to executives vested based on performance meeting or exceeding EBITDA targets, as defined in the RSAs. Incentive units granted to non-executives and the remaining 50% of incentive units granted to executives vest 25% on the first anniversary date of the grant, and ratably over the remaining three years. The graded-vesting attribution method is used by the Company to determine the monthly stock-based compensation expense over the applicable vesting periods. In 2017, the Board of Directors waived the EBITDA criteria associated with the annual tranche of performance vesting stock options resulting in a modification. The Company did not grant any incentive units during the first half of 2018. As of June 30, 2018, the aggregate intrinsic value of 994,173 non-vested incentive units was $24.4 million, and the Restricted Stock Units The Company granted 423,413 restricted stock units during the six months ended June 30, 2018. As of June 30, 2018, 1,245,609 units of restricted stock are expected to vest over a weighted average remaining contractual period of 2.0 years with an aggregate intrinsic value of approximately $30.6 million. The total unrecognized compensation related to restricted stock units was $14.9 million as of June 30, 2018 and is expected to be recognized over a weighted average period of 3.47 years. Stock based compensation expense relating to restricted stock units was approximately $1.3 million and $2.5 million for the three and six months ended June 30, 2018 and $0.0 million for the three and six months ended June 30, 2017, respectively. Stock-based compensation expense, includes stock options, restricted stock units and incentive units, was recognized as follows: Three months ended Six months ended June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017 (In thousands) Cost of revenue - subscription $ 253 $ 9 $ 374 $ 18 Cost of revenue - services and other 347 20 722 38 Research and development 652 35 1,293 65 General and administrative 1,695 45 4,035 75 Sales and marketing 1,169 76 2,831 147 Total stock-based compensation expense $ 4,116 $ 185 $ 9,255 $ 343 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 8. Income Taxes Impacts of the U.S. 2017 Tax Cuts and Jobs Act The U.S. 2017 Tax Cuts and Jobs Act (the “Act”), which was signed into law on December 22, 2017 and effective January 1, 2018, reduces the U.S. federal corporate tax rate from 35% to 21%. There was no net impact to the Company’s provision for income taxes due to the Company’s valuation allowance. The decrease in future tax assets via the reduced rate was offset by the decrease in our valuation allowance. The Act subjects a U.S. shareholder to tax on global intangible low-taxed income (“GILTI”) earned by certain foreign subsidiaries. The FASB Staff Q&A, Topic 740, No. 5, Accounting for GILTI . The provision for income taxes for 2018 and 2017 is generated from activity in certain foreign jurisdictions by our consolidated subsidiaries and certain state and local jurisdictions. The Company’s practice is to recognize interest and/or penalties related to income tax matters in income tax expense. During the three and six months ended June 30, 2018 and 2017 the Company did not record any material interest or penalties. The effective tax rate for the three and six months ended June 30, 2018 is 8.5% and 7.3 % compared to 10.1% and 2.4% respectively, for the prior period. The Company files income tax returns in the U.S. federal, states, and foreign jurisdictions. The Company is no longer subject to U.S. federal income tax examinations for years before 2014 and is no longer subject to state, local and foreign income tax examinations by tax authorities for years before 2012. The Company is currently under audit for sales and use tax in a single domestic jurisdiction and income tax audit in a single foreign jurisdiction. Both audits are in their initial stages and are immaterial. |
Net Loss Per Share Attributable
Net Loss Per Share Attributable to Common Shareholders | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share Attributable to Common Shareholders | 9. Net Loss Per Share Attributable to Common Shareholders Basic and diluted net loss per share is computed by dividing net loss attributable to common shareholders by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is calculated using our weighted-average outstanding common shares including the dilutive effect of stock awards. In periods when the Company recognizes a net loss, the Company excludes the impact of outstanding stock awards from the diluted loss per share calculation as their inclusion would have an antidilutive effect. The following table sets forth the calculation of basic and diluted net loss per share during the periods presented: Three months ended Six months ended June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017 (In thousands, except share data) Numerator: Net loss $ (5,647 ) $ (4,304 ) $ (11,614 ) $ (6,587 ) Deemed dividends to preferred stockholders — (6,420 ) — (12,590 ) Net loss attributable to common shareholders $ (5,647 ) $ (10,724 ) $ (11,614 ) $ (19,177 ) Denominator Weighted average shares outstanding Basic and diluted 86,246,056 47,930,190 85,984,103 47,567,048 Net loss attributable to common shareholders Basic and diluted $ (0.07 ) $ (0.22 ) $ (0.14 ) $ (0.40 ) The following weighted average outstanding shares of common stock equivalents were excluded from the computation of the diluted net loss per share attributable to common shareholders for the periods presented because their effect would have been anti-dilutive. For the period prior to our initial public offering, convertible preferred stock is not included in this computation as it was contingently convertible based upon a future event. Three months ended Six months ended June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017 Stock options to purchase common stock 3,316,027 2,329,588 3,391,821 2,194,152 RSUs issued and outstanding 1,281,497 — 1,189,385 — Non-vested incentive units 1,097,852 2,969,480 1,288,022 3,309,772 Total 5,695,376 5,299,068 5,869,228 5,503,924 |
Summary of Significant Accoun15
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated interim financial statements have been prepared in accordance with Article 10 of Regulation S-X, “Interim Financial Statements” and the rules and regulations for Form 10-Q of the Securities and Exchange Commission (the “SEC”). Pursuant to those rules and regulations, the Company has condensed or omitted certain information and footnote disclosure it normally includes in its annual consolidated financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). The unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the balance sheet, statements of operations and the statements of cash flows for the interim periods but are not necessarily indicative of the results of operations to be anticipated for the full year ending December 31, 2018 or any future period. Our unaudited consolidated financial statements have been prepared in a manner consistent with the accounting principles described in our Company’s Annual Report on Form 10-K for the year ended December 31, 2017, which was filed with the SEC on March 19, 2018 (the “Annual Report”). These financial statements and accompanying notes should be read in conjunction with the consolidated financial statements and notes thereto in the Company’s Annual Report. All intercompany accounts and transactions have been eliminated in consolidation. |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash We consider all highly liquid investments with an original maturity of three months or less from date of purchase to be cash equivalents. The Company is required to maintain a small amount of restricted cash to guarantee rent payments in a foreign subsidiary. |
Segment Information and Concentration of Credit and Other Risks | Segment Information and Concentration of Credit and Other Risks Segment Information The Company operates as one operating segment. The Company’s chief operating decision maker is its chief executive officer, who reviews financial information presented on a consolidated basis for purposes of making operating decisions, assessing financial performance and allocating resources. ASC 280, Segment Reporting Three months ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (In thousands) United States $ 34,497 $ 27,105 $ 67,195 $ 53,020 EMEA (1) 13,281 8,039 24,952 13,853 Rest of the World (1) 6,782 4,116 12,127 7,853 Total revenue $ 54,560 $ 39,260 $ 104,274 $ 74,726 (1) No single country represented more than 10% of our consolidated revenue. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash and cash equivalents and accounts receivable. The Company maintains its cash in bank deposit accounts that, at times, may exceed federally insured limits. There is no concentration of credit risk for customers as no individual entity represented more than 10% of the balance in accounts receivable as of June 30, 2018 and December 31, 2017 or 10% of revenue for three and six months ended June 30, 2018 and 2017. The Company does not experience concentration of credit risk in foreign countries as no foreign country represents more than 10% of the Company’s condensed consolidated revenues or net assets. |
Significant Accounting Policies | Significant Accounting Policies There have been no significant changes to the Company’s significant accounting policies, which are discussed in Note 2 of “Notes to Consolidated Financial Statements” in the Annual Report. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards Not Yet Adopted Under the Jumpstart Our Business Startups Act (the “JOBS Act”), emerging growth companies can delay adopting new or revised accounting standards until such time as those standards apply to private companies. We have elected to take advantage of the longer phase-in periods for the adoption of new or revised financial accounting standards under the JOBS Act until we are no longer an emerging growth company. In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No . , Revenue from Contracts with Customers (Topic 606) Revenue Recognition December 15, 2017 as the company will be designated a large accelerated filer on December 31, 2018, at which time the company will no longer be an emerging growth company. With the evaluation of ASC 606 adoption, the Com pany plans to . The Company’s determination was made upon a number of factors such as the significance of the impact of the new standard on the Company’s financial results, system readiness, including that of software procured from third-party providers, and the Company’s ability to accumulate and analyze the information necessary to assess the impact on prior period financial statements, as necessary and earlier than expected . The Company will continue to The Company will adopt the new revenue standard for the annual reporting period ending December 31, 2018, using the modified retrospective transition method. Under this method, the Company elects to apply the cumulative effect method to contracts that are not complete as of the adoption date. The Company is continuing to finalize the impact of adopting the new revenue standard on its condensed consolidated financial statements and related disclosures, changes to its accounting policies and practices and controls to support the new revenue recognition standard. The Company has developed a project plan for this transition, which includes necessary changes to accounting policies, processes, internal controls, and system requirements and is progressing as planned. The Company expects to implement the plan in time to report in accordance with ASC 606 for the annual reporting period for the year ended December 31, 2018. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory In July 2017, the FASB issued ASU No. 2017-11, Earnings Per Share (Topic 260). Recently Adopted Accounting Standards In May 2017, the FASB issued ASU No. 2017-09, Compensation—Stock Compensation (Topic 718). |
Summary of Significant Accoun16
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Summary of Consolidated Total Revenue by Geography | The following tables sets forth the Company’s consolidated total revenue by geography: Three months ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (In thousands) United States $ 34,497 $ 27,105 $ 67,195 $ 53,020 EMEA (1) 13,281 8,039 24,952 13,853 Rest of the World (1) 6,782 4,116 12,127 7,853 Total revenue $ 54,560 $ 39,260 $ 104,274 $ 74,726 (1) No single country represented more than 10% of our consolidated revenue. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Cost and Accumulated Amortization of Intangible Assets | Total cost and accumulated amortization of intangible assets is comprised of the following: As of Weighted Average Useful Life June 30, 2018 December 31, 2017 Intangible assets, net (In years) (In thousands) Customer lists 15 $ 42,500 $ 42,500 Developed technology 9.6 42,000 42,000 Trade names and trademarks 17 24,500 24,500 Order backlog 1.5 1,100 1,100 Non-competition agreements and related items 4.4 810 810 Total intangible assets 110,910 110,910 Less: Accumulated amortization (34,137 ) (29,725 ) Total intangible assets, net $ 76,773 $ 81,185 |
Summary of Amortization Expense Included in Condensed Consolidated Statements of Operations | Amortization expense is included in the condensed consolidated statements of operations for the three and six months ended June 30, 2018 and 2017, respectively, as follows: Three months ended Six months ended June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017 (In thousands) Cost of revenue – license $ 1,008 $ 1,008 $ 2,016 $ 2,016 Cost of revenue – subscription 96 96 192 192 Research and development 34 81 68 81 Sales and marketing 1,068 1,022 2,136 2,139 Total amortization of acquired intangibles $ 2,206 $ 2,207 $ 4,412 $ 4,428 |
Stock Option Plans and Stock-18
Stock Option Plans and Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Fair Value of Stock Options Estimated by Using Weighted Average Assumptions | The fair value for the Company’s stock options granted during the year ended June 30, 2018 and 2017 was estimated at the date of grant using a Black Scholes option-pricing model using the following weighted average assumptions: June 30, 2018 June 30, 2017 Expected dividend rate 0% 0% Expected volatility 40.0% - 41.1% 49.0% Risk-free interest rate 2.63% - 2.91% 2.11% - 2.11% Expected term (in years) 6.25 6.25 |
Summary of Stock Option Activity | The following table summarizes option activity under the 2017 Plan and related information: Number of Options Weighted Average Exercise Price (per share) Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value Balances at December 31, 2017 3,500,075 $ 5.43 8.8 31,784,488 Granted 50,879 $ 20.81 Exercised (365,111 ) $ 2.45 Forfeited (82,907 ) $ 2.78 Balances at June 30, 2018 3,102,936 $ 6.11 8.3 57,188,986 Options vested and expected to vest at June 30, 2018 3,102,936 $ 6.11 8.3 57,188,986 Options vested and exercisable at June 30, 2018 830,912 $ 2.33 7.3 18,455,289 |
Summary of Stock-Based Compensation Expense | Stock-based compensation expense, includes stock options, restricted stock units and incentive units, was recognized as follows: Three months ended Six months ended June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017 (In thousands) Cost of revenue - subscription $ 253 $ 9 $ 374 $ 18 Cost of revenue - services and other 347 20 722 38 Research and development 652 35 1,293 65 General and administrative 1,695 45 4,035 75 Sales and marketing 1,169 76 2,831 147 Total stock-based compensation expense $ 4,116 $ 185 $ 9,255 $ 343 |
Net Loss Per Share Attributab19
Net Loss Per Share Attributable to Common Shareholders (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Calculation of Basic and Diluted Net Loss Per Share | The following table sets forth the calculation of basic and diluted net loss per share during the periods presented: Three months ended Six months ended June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017 (In thousands, except share data) Numerator: Net loss $ (5,647 ) $ (4,304 ) $ (11,614 ) $ (6,587 ) Deemed dividends to preferred stockholders — (6,420 ) — (12,590 ) Net loss attributable to common shareholders $ (5,647 ) $ (10,724 ) $ (11,614 ) $ (19,177 ) Denominator Weighted average shares outstanding Basic and diluted 86,246,056 47,930,190 85,984,103 47,567,048 Net loss attributable to common shareholders Basic and diluted $ (0.07 ) $ (0.22 ) $ (0.14 ) $ (0.40 ) |
Weighted Average Outstanding Shares of Common Stock Equivalents Excluded from the Computation of the Diluted Net Loss per Share | The following weighted average outstanding shares of common stock equivalents were excluded from the computation of the diluted net loss per share attributable to common shareholders for the periods presented because their effect would have been anti-dilutive. For the period prior to our initial public offering, convertible preferred stock is not included in this computation as it was contingently convertible based upon a future event. Three months ended Six months ended June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017 Stock options to purchase common stock 3,316,027 2,329,588 3,391,821 2,194,152 RSUs issued and outstanding 1,281,497 — 1,189,385 — Non-vested incentive units 1,097,852 2,969,480 1,288,022 3,309,772 Total 5,695,376 5,299,068 5,869,228 5,503,924 |
Organization and Description 20
Organization and Description of Business - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Date of incorporation | Aug. 8, 2014 |
State of incorporation | Delaware |
Summary of Significant Accoun21
Summary of Significant Accounting Policies - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2018Segment | |
Accounting Policies [Abstract] | |
Number of operating segments | 1 |
Summary of Significant Accoun22
Summary of Significant Accounting Policies - Summary of Consolidated Total Revenue by Geography (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Summary of Significant Accounting Policies [Line Items] | ||||
Total revenue | $ 54,560 | $ 39,260 | $ 104,274 | $ 74,726 |
United States | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Total revenue | 34,497 | 27,105 | 67,195 | 53,020 |
EMEA | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Total revenue | 13,281 | 8,039 | 24,952 | 13,853 |
Rest of the World | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Total revenue | $ 6,782 | $ 4,116 | $ 12,127 | $ 7,853 |
Goodwill and Intangible Asset23
Goodwill and Intangible Assets - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |||||
Goodwill | $ 219,377,000 | $ 219,400,000 | $ 219,377,000 | $ 219,400,000 | $ 219,377,000 |
Goodwill, acquired during period | 0 | 0 | |||
Goodwill, impairment loss | 0 | 0 | 0 | 0 | |
Amortization expense of intangible assets | 2,206,000 | 2,207,000 | 4,412,000 | 4,428,000 | |
Impairment of intangible assets | $ 0 | $ 0 | $ 0 | $ 0 |
Goodwill and Intangible Asset24
Goodwill and Intangible Assets - Schedule of Cost and Accumulated Amortization of Intangible Assets (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
Finite Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 110,910 | $ 110,910 |
Less: Accumulated amortization | (34,137) | (29,725) |
Total intangible assets, net | $ 76,773 | 81,185 |
Customer Lists | ||
Finite Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Life | 15 years | |
Intangible assets, gross | $ 42,500 | 42,500 |
Developed Technology | ||
Finite Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Life | 9 years 7 months 6 days | |
Intangible assets, gross | $ 42,000 | 42,000 |
Trade Names and Trademarks | ||
Finite Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Life | 17 years | |
Intangible assets, gross | $ 24,500 | 24,500 |
Order Backlog | ||
Finite Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Life | 1 year 6 months | |
Intangible assets, gross | $ 1,100 | 1,100 |
Non-competition Agreements and Related Items | ||
Finite Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Life | 4 years 4 months 24 days | |
Intangible assets, gross | $ 810 | $ 810 |
Goodwill and Intangible Asset25
Goodwill and Intangible Assets - Summary of Amortization Expense Included in Condensed Consolidated Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Finite Lived Intangible Assets [Line Items] | ||||
Total amortization of acquired intangibles | $ 2,206 | $ 2,207 | $ 4,412 | $ 4,428 |
Cost of Revenue – License | ||||
Finite Lived Intangible Assets [Line Items] | ||||
Total amortization of acquired intangibles | 1,008 | 1,008 | 2,016 | 2,016 |
Cost of Revenue – Subscription | ||||
Finite Lived Intangible Assets [Line Items] | ||||
Total amortization of acquired intangibles | 96 | 96 | 192 | 192 |
Research and Development | ||||
Finite Lived Intangible Assets [Line Items] | ||||
Total amortization of acquired intangibles | 34 | 81 | 68 | 81 |
Sales and Marketing | ||||
Finite Lived Intangible Assets [Line Items] | ||||
Total amortization of acquired intangibles | $ 1,068 | $ 1,022 | $ 2,136 | $ 2,139 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | ||||
Rent expense under all operating leases | $ 1 | $ 0.7 | $ 1.9 | $ 1.2 |
Line of Credit and Long-Term 27
Line of Credit and Long-Term Debt - Additional Information (Details) - USD ($) $ in Thousands | Jun. 29, 2018 | Jun. 30, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 |
Line Of Credit Facility [Line Items] | |||||
Repayment/prepaid of borrowings outstanding | $ 60,000 | ||||
Prepayment premium percentage | 0.50% | 1.50% | |||
Prepayment premium amount | $ 300 | $ 1,400 | |||
Loss on extinguishment of debt | $ 1,500 | 1,536 | 1,700 | ||
Amortization of debt issuance costs | 200 | $ 300 | 4,500 | ||
Long-term debt balance | 9,640 | 9,640 | 68,329 | ||
Unamortized debt issuance costs | 400 | 400 | |||
Term Loan | |||||
Line Of Credit Facility [Line Items] | |||||
Line of credit outstanding balance | 10,000 | $ 10,000 | $ 10,000 | 70,000 | |
Repayment/prepaid of borrowings outstanding | $ 60,000 | $ 90,000 | |||
Debt instrument, maturity date | Aug. 16, 2021 | ||||
Debt Instrument, interest payments | quarterly | ||||
Debt Instrument, interest percentage | 6.80% | ||||
Term Loan | London Interbank Offered Rate (LIBOR) | |||||
Line Of Credit Facility [Line Items] | |||||
Percentage of LIBOR floor rate | 2.30% | 2.30% | 1.00% | ||
Applicable margin rate | 4.50% | 4.50% | |||
Revolving Line of Credit | |||||
Line Of Credit Facility [Line Items] | |||||
Line of credit outstanding balance | $ 0 | $ 0 | $ 0 | ||
Debt Instrument, interest percentage | 6.80% | ||||
Revolving Line of Credit | London Interbank Offered Rate (LIBOR) | |||||
Line Of Credit Facility [Line Items] | |||||
Percentage of LIBOR floor rate | 2.30% | 2.30% | 1.00% | ||
Applicable margin rate | 4.50% | 4.50% | |||
Standby Letters of Credit | |||||
Line Of Credit Facility [Line Items] | |||||
Standby letters of credit | $ 6,000 | ||||
Modified Loan and Security Agreements | |||||
Line Of Credit Facility [Line Items] | |||||
Amortization of debt issuance costs | $ 1,400 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
General and Administrative Expenses | |||||
Related Party Transaction [Line Items] | |||||
Consulting fees | $ 312,000 | $ 625,000 | |||
Affiliated Entity | |||||
Related Party Transaction [Line Items] | |||||
Ordinary sales transactions with affiliate | $ 46,000 | 93,000 | $ 194,000 | 93,000 | |
Purchase transactions with affiliate | 208,000 | $ 177,000 | 310,000 | $ 559,000 | |
Accounts receivable | $ 0 | $ 0 | $ 516,000 |
Stock Option Plans and Stock-29
Stock Option Plans and Stock-Based Compensation - Additional Information (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Nov. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2015 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Purchase of common stock under ESPP | 0 | |||||
Weighted average grant date fair value per share | $ 9.19 | $ 1.64 | ||||
Compensation expense relating to stock options | $ 4,116,000 | $ 185,000 | $ 9,255,000 | $ 343,000 | ||
Total fair value of shares vested | 200,000 | 100,000 | 600,000 | 200,000 | ||
Total unrecognized compensation expense related to non-vested stock options granted | $ 9,200,000 | 1,400,000 | $ 9,200,000 | $ 1,400,000 | ||
Unrecognized compensation expense, weighted-average period of recognition | 2 years 6 months 3 days | 2 years 9 months 10 days | ||||
2015 Stock Incentive Plan | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Shares of common stock reserve for issuance | 250,000 | |||||
Shares available for issuance | 132,202 | 132,202 | ||||
2015 Stock Option and Grant Plan | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Shares available for issuance | 497,868 | 497,868 | ||||
2017 Long Term Incentive Plan | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Shares of common stock reserve for issuance | 8,856,876 | |||||
Vesting period | 4 years | |||||
Shares available for issuance | 6,441,482 | 6,441,482 | ||||
Shares of common stock options granted | 4,428,438 | |||||
Incentive Unit Plan | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Total unrecognized compensation expense related to non-vested stock options granted | $ 4,700,000 | $ 4,700,000 | ||||
Unrecognized compensation expense, weighted-average period of recognition | 6 months | |||||
Number of shares, granted | 0 | |||||
Aggregate intrinsic value, non-vested | $ 994,173,000 | $ 994,173,000 | ||||
Share-based compensation intrinsic value of options exercise | $ 24,400,000 | |||||
Number of shares, vested | 253,000 | 1,200,000 | ||||
Stock based compensation expense | $ 2,100,000 | 11,000 | $ 4,300,000 | $ 21,000 | ||
Incentive Unit Plan | Executive | Vest Based On Performance Meeting Or Exceeding EBITDA Targets | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Vesting percentage | 50.00% | |||||
Incentive Unit Plan | Executive | Vest 25% On First Anniversary Date of Grant, and Ratably Over Remaining Three Years | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Vesting percentage | 50.00% | |||||
Incentive Unit Plan | Executive | First Anniversary Date Of Grant | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Vesting percentage | 25.00% | |||||
Incentive Stock Options | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Shares of common stock reserve for issuance | 5,000,000 | |||||
Incentive Stock Options | Maximum | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Vesting period | 4 years | |||||
Restricted Stock | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Shares of common stock reserve for issuance | 500,000 | |||||
Total unrecognized compensation expense related to non-vested stock options granted | 14,900,000 | $ 14,900,000 | ||||
Unrecognized compensation expense, weighted-average period of recognition | 3 years 5 months 19 days | |||||
Number of shares, granted | 423,413 | |||||
Share-based compensation intrinsic value of options exercise | $ 30,600,000 | |||||
Stock based compensation expense | $ 1,300,000 | 0 | $ 2,500,000 | 0 | ||
Number of shares, expected to vest | 1,245,609 | 1,245,609 | ||||
Weighted average remaining contractual period | 2 years | |||||
Incentive Stock Options and Nonqualified Stock Options | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Options granted expire period | 10 years | |||||
Stock Options | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Compensation expense relating to stock options | $ 700,000 | $ 200,000 | $ 2,500,000 | $ 300,000 |
Stock Option Plans and Stock-30
Stock Option Plans and Stock-Based Compensation - Summary of Fair Value of Stock Options Estimated by Using Weighted Average Assumptions (Details) | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Expected dividend rate | 0.00% | 0.00% |
Expected volatility | 49.00% | |
Expected volatility, Minimum | 40.00% | |
Expected volatility, Maximum | 41.00% | |
Risk-free interest rate, Minimum | 2.63% | 2.11% |
Risk-free interest rate, Maximum | 2.91% | 2.11% |
Expected term (in years) | 6 years 3 months | 6 years 3 months |
Stock Option Plans and Stock-31
Stock Option Plans and Stock-Based Compensation - Summary of Stock Option Activity (Details) - 2017 Long Term Incentive Plan - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of Options, Beginning balances | 3,500,075 | |
Number of Options, Granted | 50,879 | |
Number of Options, Exercised | (365,111) | |
Number of Options, Forfeited | (82,907) | |
Number of Options, Ending balances | 3,102,936 | 3,500,075 |
Number of Options, Options vested and expected to vest | 3,102,936 | |
Number of Options, Options vested and exercisable | 830,912 | |
Weighted Average Exercise Price Per share, Beginning balances | $ 5.43 | |
Weighted Average Exercise Price (per share), Granted | 20.81 | |
Weighted Average Exercise Price (per share), Exercised | 2.45 | |
Weighted Average Exercise Price (per share), Forfeited | 2.78 | |
Weighted Average Exercise Price (per share), Ending balances | 6.11 | $ 5.43 |
Weighted Average Exercise Price (per share), Options vested and expected to vest | 6.11 | |
Weighted Average Exercise Price (Per share), Options vested and exercisable | $ 2.33 | |
Weighted Average Remaining Contractual Term (years) | 8 years 3 months 18 days | 8 years 9 months 18 days |
Weighted Average Remaining Contractual Term (years), Options vested and expected to vest | 8 years 3 months 18 days | |
Weighted Average Remaining Contractual Term (years), Options vested and exercisable | 7 years 3 months 18 days | |
Aggregate Intrinsic Value, Balances | $ 57,188,986 | $ 31,784,488 |
Aggregate Intrinsic Value, Options vested and expected to vest | 57,188,986 | |
Aggregate Intrinsic Value, Options vested and exercisable | $ 18,455,289 |
Stock Option Plans and Stock-32
Stock Option Plans and Stock-Based Compensation - Summary of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 4,116 | $ 185 | $ 9,255 | $ 343 |
Cost of Revenue - Subscription | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation expense | 253 | 9 | 374 | 18 |
Cost of Revenue - Services and Other | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation expense | 347 | 20 | 722 | 38 |
Research and Development | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation expense | 652 | 35 | 1,293 | 65 |
General and Administrative Expenses | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation expense | 1,695 | 45 | 4,035 | 75 |
Sales and Marketing | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 1,169 | $ 76 | $ 2,831 | $ 147 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Income Tax Examination [Line Items] | |||||
U.S. federal corporate tax rate | 21.00% | 35.00% | |||
Interest or penalties expense | $ 0 | $ 0 | $ 0 | $ 0 | |
Effective income tax rate | 8.50% | 10.10% | 7.30% | 2.40% | |
U.S. Federal | |||||
Income Tax Examination [Line Items] | |||||
Income tax examination description | no longer subject to U.S. federal income tax examinations for years before 2014 | ||||
State, Local and Foreign | |||||
Income Tax Examination [Line Items] | |||||
Income tax examination description | no longer subject to state, local and foreign income tax examinations by tax authorities for years before 2012 |
Net Loss Per Share Attributab34
Net Loss Per Share Attributable to Common Shareholders - Schedule of Calculation of Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Numerator: | ||||
Net loss | $ (5,647) | $ (4,304) | $ (11,614) | $ (6,587) |
Deemed dividends to preferred stockholders | (6,420) | (12,590) | ||
Net loss attributable to common shareholders | $ (5,647) | $ (10,724) | $ (11,614) | $ (19,177) |
Denominator | ||||
Weighted average shares outstanding Basic and diluted | 86,246,056 | 47,930,190 | 85,984,103 | 47,567,048 |
Net loss attributable to common shareholders | ||||
Basic and diluted | $ (0.07) | $ (0.22) | $ (0.14) | $ (0.40) |
Net Loss Per Share Attributab35
Net Loss Per Share Attributable to Common Shareholders - Weighted Average Outstanding Shares of Common Stock Equivalents Excluded from the Computation of the Diluted Net Loss per Share (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Weighted average outstanding shares of common stock equivalents excluded from the computation of diluted net loss per share | 5,695,376 | 5,299,068 | 5,869,228 | 5,503,924 |
Stock Options | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Weighted average outstanding shares of common stock equivalents excluded from the computation of diluted net loss per share | 3,316,027 | 2,329,588 | 3,391,821 | 2,194,152 |
RSUs Issued and Outstanding | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Weighted average outstanding shares of common stock equivalents excluded from the computation of diluted net loss per share | 1,281,497 | 1,189,385 | ||
Non-Vested Incentive Units | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Weighted average outstanding shares of common stock equivalents excluded from the computation of diluted net loss per share | 1,097,852 | 2,969,480 | 1,288,022 | 3,309,772 |