Sailpoint Technologies 10-Q 6 Nov 19 2019 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2019	Oct. 31, 2019
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
Trading Symbol	SAIL
Entity Registrant Name	SailPoint Technologies Holdings, Inc.
Entity Central Index Key	0001627857
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Current Reporting Status	Yes
Entity Emerging Growth Company	false
Entity Small Business	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		89,211,098
Entity File Number	001-38297
Entity Tax Identification Number	47-1628077
Entity Address, Address Line One	11120 Four Points Drive
Entity Address, Address Line Two	Suite 100
Entity Address, City or Town	Austin
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	78726
City Area Code	512
Local Phone Number	346-2000
Entity Incorporation, State or Country Code	DE
Title of 12(b) Security	Common stock, par value $0.0001 per share
Security Exchange Name	NYSE
Document Quarterly Report	true
Document Transition Report	false
Entity Interactive Data Current	Yes

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Current assets
Cash and cash equivalents	$ 464,332	$ 70,964
Restricted cash	6,317	6,272
Accounts receivable	73,671	101,469
Prepayments and other current assets	25,932	21,850
Income tax receivable	2,465
Total current assets	572,717	200,555
Property and equipment, net	21,616	19,268
Right-of-use assets	30,321
Other non-current assets	23,389	20,374
Goodwill	219,377	219,377
Intangible assets, net	67,867	74,860
Total assets	935,287	534,434
Current liabilities
Accounts payable	2,632	4,636
Accrued expenses and other liabilities	28,937	21,731
Income taxes payable		2,143
Deferred revenue	103,317	95,919
Total current liabilities	134,886	124,429
Deferred tax liability - non-current	16,073	4,142
Convertible senior notes, net	304,777
Long-term operating lease liabilities	37,889	9,788
Deferred revenue - non-current	20,521	18,382
Total liabilities	514,146	156,741
Commitments and contingencies (Note 5)
Stockholders’ equity
Common stock, $0.0001 par value, authorized 300,000 shares, issued and outstanding 89,196 shares at September 30, 2019 and 87,512 shares at December 31, 2018	9	9
Preferred stock, $0.0001 par value, authorized 10,000 shares, no shares issued and outstanding at September 30, 2019 and December 31, 2018
Additional paid in capital	434,840	377,473
(Accumulated deficit) retained earnings	(13,708)	211
Total stockholders' equity	421,141	377,693
Total liabilities and stockholders’ equity	$ 935,287	$ 534,434

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2019	Dec. 31, 2018
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	89,196,000	87,512,000
Common stock, shares outstanding	89,196,000	87,512,000
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 ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Revenue
Total revenue	$ 75,879	$ 65,735	$ 199,516	$ 168,332
Cost of revenue
Total cost of revenue	16,930	14,014	47,508	40,160
Gross profit	58,949	51,721	152,008	128,172
Operating expenses
Research and development	14,148	11,474	40,318	31,351
General and administrative	10,192	8,763	27,819	24,163
Sales and marketing	33,274	26,701	99,298	72,934
Total operating expenses	57,614	46,938	167,435	128,448
Income (loss) from operations	1,335	4,783	(15,427)	(276)
Other expense, net:
Interest income (expense), net	10	(202)	282	(4,180)
Other, net	(295)	(388)	(1,018)	(1,104)
Total other expense, net	(285)	(590)	(736)	(5,284)
Income (loss) before income taxes	1,050	4,193	(16,163)	(5,560)
Income tax (expense) benefit	2,618	(2,385)	2,244	4,087
Net income (loss)	3,668	1,808	(13,919)	(1,473)
Net income (loss) available to common stockholders	$ 3,668	$ 1,793	$ (13,919)	$ (1,473)
Net income (loss) per share
Basic	$ 0.04	$ 0.02	$ (0.16)	$ (0.02)
Diluted	$ 0.04	$ 0.02	$ (0.16)	$ (0.02)
Weighted average shares outstanding
Basic	89,143	86,825	88,739	86,268
Diluted	90,808	90,355	88,739	86,268
Licenses
Revenue
Total revenue	$ 26,825	$ 28,023	$ 64,827	$ 64,451
Cost of revenue
Total cost of revenue	1,083	1,145	3,157	3,543
Subscription
Revenue
Total revenue	37,383	27,916	102,929	74,531
Cost of revenue
Total cost of revenue	6,862	5,252	18,990	14,829
Service and other
Revenue
Total revenue	11,671	9,796	31,760	29,350
Cost of revenue
Total cost of revenue	$ 8,985	$ 7,617	$ 25,361	$ 21,788

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Retained Earnings (Accumulated Deficit)
Stockholders' Equity Balance at Dec. 31, 2017	$ 328,397	$ 8	$ 353,609	$ (25,220)
Stockholders' Equity Balance, shares at Dec. 31, 2017		84,948
Exercise of stock options	1,257		1,257
Exercise of stock options, shares		517
Restricted stock units vested, net of tax settlement, shares		54
Stock-based compensation expense	14,138		14,138
Incentive units vested	76	$ 1	75
Incentive units vested, shares		1,486
Net Income (loss)	(1,473)			(1,473)
Stockholders' Equity Balance at Sep. 30, 2018	364,156	$ 9	369,079	(4,932)
Stockholders' Equity Balance, shares at Sep. 30, 2018		87,005
Stockholders' Equity Balance at Jun. 30, 2018	357,086	$ 9	363,817	(6,740)
Stockholders' Equity Balance, shares at Jun. 30, 2018		86,596
Exercise of stock options	364		364
Exercise of stock options, shares		152
Restricted stock units vested, net of tax settlement, shares		3
Stock-based compensation expense	4,883		4,883
Incentive units vested	15		15
Incentive units vested, shares		254
Net Income (loss)	1,808			1,808
Stockholders' Equity Balance at Sep. 30, 2018	364,156	$ 9	369,079	(4,932)
Stockholders' Equity Balance, shares at Sep. 30, 2018		87,005
Cumulative effect adjustment from the adoption of ASC 606 | Accounting Standards Update 2014-09	21,761			21,761
Stockholders' Equity Balance at Dec. 31, 2018	377,693	$ 9	377,473	211
Stockholders' Equity Balance, shares at Dec. 31, 2018		87,512
Exercise of stock options	2,560		2,560
Exercise of stock options, shares		618
Restricted stock units vested, net of tax settlement, shares		140
Stock-based compensation expense	14,098		14,098
Incentive units vested	37		37
Incentive units vested, shares		724
Common stock issued under employee stock plan	2,926		2,926
Common stock issued under employee stock plan, net, shares		202
Equity component of convertible senior notes, net of issuance costs	86,764		86,764
Purchase of capped calls	(37,080)		(37,080)
Deferred tax liability related to issuance of convertible senior notes and capped calls	(11,938)		(11,938)
Net Income (loss)	(13,919)			(13,919)
Stockholders' Equity Balance at Sep. 30, 2019	421,141	$ 9	434,840	(13,708)
Stockholders' Equity Balance, shares at Sep. 30, 2019		89,196
Stockholders' Equity Balance at Jun. 30, 2019	374,474	$ 9	391,841	(17,376)
Stockholders' Equity Balance, shares at Jun. 30, 2019		89,050
Exercise of stock options	764		764
Exercise of stock options, shares		130
Restricted stock units vested, net of tax settlement, shares		16
Stock-based compensation expense	4,489		4,489
Equity component of convertible senior notes, net of issuance costs	86,764		86,764
Purchase of capped calls	(37,080)		(37,080)
Deferred tax liability related to issuance of convertible senior notes and capped calls	(11,938)		(11,938)
Net Income (loss)	3,668			3,668
Stockholders' Equity Balance at Sep. 30, 2019	$ 421,141	$ 9	$ 434,840	$ (13,708)
Stockholders' Equity Balance, shares at Sep. 30, 2019		89,196

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Operating activities
Net Income (loss)	$ (13,919)	$ (1,473)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization expense	10,562	7,977
Amortization of debt discount and issuance costs	376	220
Amortization of contract acquisition costs	7,346	5,556
Loss on modification and partial extinguishment of debt		1,536
Loss (gain) on disposal of fixed assets	17	(36)
Bad debt expense	183	299
Stock-based compensation expense	14,098	14,138
Operating leases, net	301
Deferred taxes	(7)
Net changes in operating assets and liabilities
Accounts receivable	27,615	1,487
Prepayments and other current assets	(11,430)	(8,140)
Other non-current assets	(2,279)	(1,567)
Accounts payable	(2,004)	805
Accrued expenses and other liabilities	3,866	(5,155)
Income taxes	(4,608)	(5,087)
Deferred revenue	9,537	19,798
Net cash provided by operating activities	39,654	30,358
Investing activities
Purchase of property and equipment	(5,096)	(4,030)
Proceeds from sale of property and equipment	21	25
Net cash used in investing activities	(5,075)	(4,005)
Financing activities
Payment of debt issuance costs	(9,572)
Proceeds from issuance of convertible senior notes	400,000
Purchases of capped calls	(37,080)
Repayment of debt		(60,000)
Prepayment penalty and fees		(300)
Repurchase of equity shares		(1)
Proceeds from employee stock purchase plan contributions	2,926
Exercise of stock options	2,560	1,257
Net cash provided by (used in) financing activities	358,834	(59,044)
Net increase (decrease) in cash, cash equivalents and restricted cash	393,413	(32,691)
Cash, cash equivalents and restricted cash, beginning of period	77,236	116,127
Cash, cash equivalents and restricted cash, end of period	$ 470,649	$ 83,436

Organization and Description of

Organization and Description of Business	9 Months Ended
	Sep. 30, 2019
Organization Consolidation And Presentation Of Financial Statements [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 occurred on September 8, 2014

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2019
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 disclosures 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 sheets, statements of operations, statements of stockholders’ equity 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, 2019 or any future period. Our unaudited condensed 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, 2018, which was filed with the SEC on March 18, 2019 (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. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Management periodically evaluates such estimates and assumptions for continued reasonableness. In particular, we make estimates with respect to the fair value allocation of multiple performance obligation in revenue recognition, the collectability of accounts receivable, valuation of long-lived assets, fair value of the liability and equity components of the Notes (as defined below), stock-based compensation expense and income taxes. Appropriate adjustments, if any, to the estimates used are made prospectively based upon periodic evaluation. Actual results could differ from those estimates. 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 as well as $6.0 million of cash collateral for an unconditional standby letter of credit related to the Company’s corporate headquarters lease. As of September 30, 2019 December 31, 2018 (In thousands) Cash and cash equivalents per balance sheet $ 464,332 $ 70,964 Restricted cash per balance sheet 6,317 6,272 Cash, cash equivalents and restricted cash per cash flow $ 470,649 $ 77,236 Segment Information and Concentration of Credit and Other Risks Segment Information The Company operates as one operating segment. The Company’s chief operating decision makers review financial information presented on a consolidated basis for purposes of making operating decisions, assessing financial performance and allocating resources. ASC 280, “Segment Reporting,” establishes standards for reporting information about operating segments. Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision makers in deciding how to allocate resources and in assessing performance. The Company manages its business on the basis of one reportable segment, and derives revenues from licensing of software, subscription and renewals, sale of professional services, maintenance and technical support. The following table sets forth the Company’s consolidated revenue by geography: Three Months Ended Nine Months Ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 (In thousands) United States $ 56,071 $ 45,693 $ 142,030 $ 112,008 EMEA (1) 12,499 11,754 38,768 36,305 Rest of the World (1) 7,309 8,288 18,718 20,019 Total revenue $ 75,879 $ 65,735 $ 199,516 $ 168,332 (1) No single country represented more than 10% Concentration of Credit Risk and Other Risks 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. As of September 30, 2019, no single entity represented more than 10% of the balance in accounts receivable. As of December 31, 2018, 11%, of the Company’s accounts receivable was from one customer. Management considers concentration of credit risk to be minimal with respect to accounts receivable due to the positive historical collection experience of the Company despite the geographic concentrations related to the Company’s customers. No single customer represented more than 10% of revenue for the three and nine months ended September 30, 2019 and 2018. The Company does not experience concentration of credit risk in foreign countries as no single foreign country represents more than 10% of the Company’s consolidated revenues or net assets. Significant Accounting Policies The condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes in the Annual Report, most notably Note 2 “Summary of Significant Accounting Policies”. In 2019, the Company adopted Accounting Standards Update 2016-02, “ Leases Note 5 “Commitments and Contingencies” below. Services and Other Revenues As previously disclosed in the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2019, which was filed with the SEC on August 6, 2019 (the “Second Quarter Quarterly Report”), while there are no changes to the accounting policy the Company provides the following additional clarification regarding the revenue for fixed price services and prepaids that are recognized over time using input methods to estimate progress to completion. For services that are contracted for at a fixed price, progress is generally measured based on hours incurred as a percentage of the total estimated hours required for complete satisfaction of the related performance obligations. For services that are contracted on a time and materials or prepaid basis, progress is generally based on actual hours expended. These input methods (e.g. hours incurred or expended) are considered a faithful depiction of our efforts to satisfy services contracts as they represent the performance obligation consumed by the customer and performed by the entity and therefore reflect the transfer of services to a customer under such contracts. Deferred Contract Acquisition Costs As previously disclosed in the Second Quarter Quarterly Report, while there are no changes to the accounting policy the Company provides the following additional clarification regarding the incremental costs of obtaining a contract, such as deferred sales commission costs, in particular upon contract renewals. The Company typically pays sales commissions for both initial and follow-on sales of perpetual licenses, inclusive of initial maintenance, term licenses and subscription offerings. Initial commissions are allocated to each performance obligation within the contract. The portion allocated to the perpetual license element is expensed at the time the license is delivered. Commissions allocated to the remaining elements are capitalized and amortized over an expected period of benefit. The Company has determined the expected period of benefit to be approximately five years. In addition, the Company pays sales commissions for renewals of term licenses and subscription offerings at a lower rate, which is therefore not commensurate with commissions paid on an initial sale. These renewal commissions are amortized over each renewal’s contractual term. The Company does not pay sales commissions on renewals of maintenance agreements related to perpetual licenses. Recently Issued Accounting Standards Not Yet Adopted In August 2018, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update (ASU) 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40) In June 2016, the FASB issued ASU 2016-13, “ Financial Instruments—Credit Losses (Topic 326). Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02 and subsequent updates thereafter in ASU 2017-13, ASU 2018-10 and ASU 2018-11, Leases On January 1, 2019, we adopted ASC 842 using the modified retrospective transition method The adoption of the new standard represents a change in accounting principle with the intent to increase transparency and comparability among organizations by requiring the recognition of ROU assets and lease liabilities on the balance sheet. Most prominent among the changes in the standard is the recognition of ROU assets and lease liabilities by lessees for those leases classified as operating leases. Under the standard, disclosures are required to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. We ha ve made an accounting policy election not to recognize ROU assets and lease liabilities that arise from short-term leases for any class of underlying asset. The standard did not have a material impact on our condensed consolidated statements of operations or statements of cash flows. However, upon adoption of ASC 842 the opening impact on our condensed consolidated balance sheets was not material, but it resulted in recording ROU assets and an increase in total lease liabilities of $3.5 million In June 2018, the FASB issued ASU 2018-07, Compensation—Stock Compensation (ASC 718): Improvements to Nonemployee Share-Based Payment Accounting (ASU 2018-07)

Revenue Recognition

Revenue Recognition	9 Months Ended
	Sep. 30, 2019
Revenue Recognition [Abstract]
Revenue Recognition	3. Revenue Recognition ASC 606 Adoption and Impact to Previously Reported Results During the year ended December 31, 2018, we adopted ASU 2014-09, Revenue from Contracts with Customers (ASC 606) Disaggregation of Revenue The Company’s revenue by geographic region based on the customer’s location is presented in Note 2 “Summary of Significant Accounting Policies” above. The following table presents the Company’s revenue by timing of revenue recognition to understand the risks of timing of transfer of control: Three Months Ended September 30, 2019 Three Months Ended September 30, 2018 Services Services License Subscription and other License Subscription and other (in thousands) Timing of revenue recognition Revenue recognized at a point in time $ 26,825 $ — $ — $ 28,023 $ — $ — Revenue recognized over time — 37,383 11,671 — 27,916 9,796 Total revenue $ 26,825 $ 37,383 $ 11,671 $ 28,023 $ 27,916 $ 9,796 Nine Months Ended September 30, 2019 Nine Months Ended September 30, 2018 Services Services License Subscription and other License Subscription and other (in thousands) Timing of revenue recognition Revenue recognized at a point in time $ 64,827 $ — $ — $ 64,451 $ — $ — Revenue recognized over time — 102,929 31,760 — 74,531 29,350 Total revenue $ 64,827 $ 102,929 $ 31,760 $ 64,451 $ 74,531 $ 29,350 Contract Balances A summary of the activity impacting our contract balances during the nine months ended September 30, 2019 is presented below (in thousands): Contract acquisition costs Balances at December 31, 2018 $ 28,043 Additional deferred contract acquisition costs 9,700 Amortization of deferred contract acquisition costs (7,346 ) Balances at September 30, 2019 $ 30,397 Deferred revenue (current) Deferred revenue (non-current) Balances at December 31, 2018 $ 95,919 $ 18,382 Increase, net 7,398 2,139 Balances at September 30, 2019 $ 103,317 $ 20,521 Deferred revenue, which is a contract liability, consists primarily of payments received in advance of revenue recognition under the Company’s contracts with customers and is recognized as the revenue recognition criteria are met. During the three and nine months ended September 30, 2019, revenue recognized that was previously deferred was approximately $47.2 million and $94.4 million, respectively, compared to revenue recognized that was previously deferred of approximately $29.8 million and $62.6 million during the three months ended September 30, 2018 and the period from January 1, 2018, the date of ASC 606 adoption, to September 30, 2018, respectively. The difference between the opening and closing balances of the Company’s contract assets and deferred revenue primarily results from the timing difference between the Company’s performance and the customer billings. Contract assets primarily relate to unbilled amounts, which are netted with deferred revenue at contract level, and typically result from sales contracts when revenue recognized exceeds the amount billed to the customer, and the right to payment is subject to more than the passage of time. Contract assets are transferred to accounts receivable when the rights become unconditional and the customer is billed. Contract assets are included in prepayments and other current assets and other non-current assets in the condensed consolidated balance sheets. Remaining Performance Obligations Our contracts with customers include amounts allocated to performance obligations that will be satisfied at a later date. These remaining performance obligations represent contract revenue that has not yet been recognized and is included in deferred revenue, the balance of which includes both invoices that have been issued to customers but have not been recognized as revenue and amounts that will be invoiced and recognized as revenue in future periods. As of September 30, 2019, amounts allocated to these additional performance obligations are $181.5 million, of which we expect to recognize $122.8 million as revenue over the next 12 months with the remaining balance recognized thereafter. Assets Recognized from the Costs to Obtain our Contracts with Customers As of September 30, 2019, and December 31, 2018, $9.7 million and $8.4 million, respectively, of our deferred contract acquisition costs are included in prepayments and other current assets as they are expected to be amortized within the next 12 months. The remaining amount of our deferred contract acquisition costs are included in other non-current assets. The balance of deferred contract acquisition costs, which primarily consists of cumulative capitalized costs to obtain contracts was $30.4 million and $28.0 million at September 30, 2019 and December 31, 2018, respectively. For the three and nine months ended September 30, 2019, amortization of deferred contract acquisition costs of $2.6 million and $7.3 million was recorded for the respective periods. For the three and nine months ended September 30, 2018, amortization of deferred contract acquisition costs of $2.2 million and $5.6 million was recorded for the respective periods. There were no material impairments of assets related to deferred contract acquisition costs during the periods ended September 30, 2019 and 2018.

Intangible Assets

Intangible Assets	9 Months Ended
	Sep. 30, 2019
Goodwill And Intangible Assets Disclosure [Abstract]
Intangible Assets	4. Intangible Assets Total cost and amortization of intangible assets are comprised of the following: As of Weighted Average Useful Life September 30, 2019 December 31, 2018 Intangible assets (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 Other intangible assets 4.9 3,310 3,310 Total intangible assets 112,310 113,410 Less: Accumulated amortization (44,443 ) (38,550 ) Total intangible assets, net $ 67,867 $ 74,860 Amortization expense included in the condensed consolidated statements of operations for the periods ended September 30, 2019 and 2018 is as follows: Three Months Ended Nine Months Ended Amortization expense (in thousands) September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 Cost of revenue - licenses $ 1,008 $ 1,008 $ 3,024 $ 3,024 Cost of revenue - subscription 96 96 288 288 Research and development 159 34 477 102 Sales and marketing 1,068 1,068 3,204 3,204 Total amortization of acquired intangibles $ 2,331 $ 2,206 $ 6,993 $ 6,618 Periodically, the Company evaluates intangible assets for possible impairment. There were no impairments of intangible assets during the periods ended September 30, 2019 and 2018.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2019
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	5. Commitments and Contingencies Operating Leases Right-of-use (“ROU”) assets and lease liabilities are recognized at the present value of future lease payments over the lease term. As of September 30, 2019, our leases have remaining lease terms of less than one year to ten years. Certain leases include early termination and/or extension options; however, exercises of these options are at the Company’s sole discretion. As of September 30, 2019, the Company determined it is not reasonably certain it will exercise the options to extend its leases or terminate them early. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants and as of September 30, 2019, the Company is not subleasing to any third parties. The rates implicit in the Company’s leases are not readily determinable. Therefore, in order to value the Company’s lease liabilities, the Company uses an incremental borrowing rate which reflects the fixed rate at which the Company could borrow a similar amount in the same currency, for the same term, and with similar collateral as in the lease at the commencement date. The result of adoption of ASC 842 was an increase in ROU assets and total lease liabilities of $3.5 million on the Company’s condensed consolidated balance sheet. ASC 842 did not have a material impact on our condensed consolidated statements of operations and statements of cash flows. As of September 30, 2019, the Company measures its lease liabilities at the net present value of the remaining lease payments discounted at the weighted average discount rate of 4.12%. The Company's incremental borrowing rate is estimated to approximate the interest rate on similar terms and payments and in economic environments where the leased asset is located. The weighted average remaining term of the Company’s operating leases is 9.0 years. As of September 30, 2019, the total lease liabilities are $41.3 million, $3.4 million of which is included in accrued expenses and other current liabilities and $37.9 million is included as long-term operating lease liabilities on the condensed consolidated balance sheet. As of September 30, 2019, the ROU asset balance is $30.3 million. Operating lease costs during the periods presented were as follows: Three Months Ended Nine Months Ended September 30, 2019 September 30, 2019 (in thousands) Lease cost Operating lease cost $ 790 $ 3,577 Short-term lease cost 884 1,746 Total lease cost $ 1,674 $ 5,323 Facilities costs (including rent and utilities) are considered shared costs and are allocated to departments based on headcount. As such, allocated shared costs are reflected in each cost of revenue and operating expense category. Total rent expense recognized prior to our adoption of ASC 842 was approximately $1.0 million and $2.9 million for the three and nine months ended September 30, 2018, respectively. Other supplemental cash flow information related to operating leases is as follows: Three Months Ended Nine Months Ended September 30, 2019 September 30, 2019 (in millions) Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 1.2 $ 3.4 Right-of-use assets obtained in exchange for lease liabilities Operating leases $ — $ 30.4 At September 30, 2019, we have no financing leases and we have non-cancelable operating lease commitments, excluding variable consideration. The undiscounted annual future minimum lease payments are summarized by year in the table below: Year Ending December 31, (in thousands) 2019 (except the nine months ended September 30) $ 1,191 2020 4,975 2021 5,511 2022 5,478 2023 4,978 Thereafter 27,030 Total minimum lease payments 49,163 Less: interest (7,868 ) Total present value of operating lease liabilities $ 41,295 Less: operating lease liabilities - current $ (3,406 ) Long-term operating lease liabilities $ 37,889

Line of Credit and Long-Term De

Line of Credit and Long-Term Debt	9 Months Ended
	Sep. 30, 2019
Debt Disclosure [Abstract]
Line of Credit and Long-Term Debt	6. Line of Credit and Long-Term Debt On March 11, 2019, SailPoint Technologies, Inc., as borrower, and certain of our other wholly owned subsidiaries entered into a credit agreement (as amended, restated, amended and restated, supplemented or otherwise modified from time to time through the date hereof, the “Credit Agreement”). The Credit Agreement is guaranteed by SailPoint Technologies Intermediate Holdings, LLC, a wholly owned subsidiary, and the Borrower’s material domestic subsidiaries (the “Guarantors” and, together with the Borrower, the “Loan Parties”) and is supported by a security interest in substantially all of the Loan Parties’ personal property and assets. In September 2019, the Company amended the Credit Agreement in connection with the issuance and sale of the Notes (as defined below). Such amendment included a decrease in the commitments for revolving credit loans from $150.0 million to $75.0 million with a $15.0 million letter of credit sublimit, which amount can be increased or decreased under certain circumstances and is subject to certain financial covenants. In addition, the Credit Agreement provides for the ability to incur uncommitted term loan facilities if, among other things, the Total Net Leverage Ratio (as defined in the Credit Agreement), calculated giving pro forma effect to the requested term loan facility, is no greater than 6.00 to 1.00 (amended from 3.50 to 1.00). Borrowings pursuant to the Credit Agreement may be used for working capital and other general corporate purposes, including acquisitions permitted under the Credit Agreement. The Credit Agreement contains certain customary representations and warranties and affirmative and negative covenants, including certain restrictions on the ability to create liens on properties or assets; merge, consolidate, or dissolve; make certain loans or investments, except under certain circumstances; sell or dispose of assets; enter into sale and leaseback transactions; pay dividends and other restricted payments; or enter into transactions with affiliates. The agreement has established priority for the lenders party over all assets of the Company. Borrowings under the Credit Agreement are scheduled to mature in March 2024. Any borrowing under the Credit Agreement may be repaid, in whole or in part, at any time and from time to time without premium or penalty other than customary breakage costs, and any amounts repaid may be reborrowed. No mandatory prepayments will be required other than when borrowings and letter of credit usage exceed the aggregate commitments of all lenders. Payment of the borrowings may be accelerated upon the occurrence of certain customary events of default specified in the Credit Agreement, which includes failure to make payments relating to the borrowings under the Credit Agreement when due, the material inaccuracy of representations or warranties, failures to perform certain affirmative covenants, failures to refrain from actions or omissions prohibited by negative covenants, cross-defaults, bankruptcy and insolvency-related events, certain judgments, certain ERISA-related events and a Change in Control (as defined in the Credit Agreement). The interest rates applicable to revolving credit loans under the Credit Agreement are, at the borrower’s option, either (i) a base rate, which is equal to the greatest of (a) the Prime Rate (as defined in the Credit Agreement), (b) the Federal Funds Effective Rate (as defined in the Credit Agreement) plus 1/2 of 1%, and (c) the one-month Adjusted LIBO Rate (as defined in the Credit Agreement) plus 1%, in each case, plus an interest margin ranging from 0.25% to 0.75% based on the Senior Secured Net Leverage Ratio, or (ii) the Adjusted LIBO Rate plus an interest margin ranging from 1.25% to 1.75% based on the Senior Secured Net Leverage Ratio. The Adjusted LIBO Rate cannot be less than zero. The borrower will pay an unused commitment fee during the term of the Credit Agreement ranging from 0.20% to 0.30% per annum based on the Senior Secured Net Leverage Ratio. The Company had no outstanding revolving credit loan balance under the Credit Agreement as of September 30, 2019 and December 31, 2018. The Company was in compliance with all applicable covenants as of September 30, 2019. The Company incurred total debt issuance costs of approximately $0.8 million in connection with the Credit Agreement, which is included in other non-current assets on the accompanying condensed consolidated balance sheet. These costs are being amortized to interest expense over the life of the Credit Agreement on a straight-line basis. Amortization of debt issuance costs during the nine months ended September 30, 2019 and 2018 was approximately $0.1 million and $0.2 million and was recorded in interest expense in the accompanying condensed consolidated statements of operations. Under the terms of the previous credit facility, the Company voluntarily prepaid on its term loan during the nine months ended September 30, 2018. The debt paydown was subject to a prepayment premium of approximately $0.3 million and a loss on the modification and partial extinguishment of debt of $1.5 million, both of which were recorded as interest expense in the consolidated statements of operations for the nine months ended September 30, 2018.

Convertible Senior Notes and Ca

Convertible Senior Notes and Capped Call Transactions	9 Months Ended
	Sep. 30, 2019
Convertible Senior Notes and Capped Call Transactions
Debt Instrument [Line Items]
Convertible Senior Notes and Capped Call Transactions	7. Convertible Senior Notes and Capped Call Transactions In September 2019, the Company issued and sold $400.0 million aggregate principal amount of 0.125% Convertible Senior Notes due 2024 (the “Notes”) in a private offering (the “Offering”) to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), including the exercise in full by the initial purchasers of their option to purchase up to an additional $50.0 million aggregate principal amount of the Notes on the same terms and conditions. The net proceeds from the Offering were approximately $391.2 million, after deducting discounts and commissions and other fees and expenses payable by the Company in connection with the Offering. The Company used approximately $37.1 million of the net proceeds from the Offering to pay the cost of the Capped Call Transactions (as defined below). The Notes were issued pursuant to an indenture (the “Indenture”), by and between the Company and U.S. Bank National Association, as trustee. The Notes are senior unsecured obligations of the Company and will mature on September 15, 2024, unless earlier redeemed, repurchased or converted. The Notes will bear interest at a fixed rate of 0.125% per year payable semiannually in arrears on March 15 and September 15 of each year, beginning on March 15, 2020. The Notes will be convertible at the option of the holders at any time prior to the close of business on the business day immediately preceding March 15, 2024, only under the following circumstances: • during any calendar quarter commencing after the calendar quarter ending on December 31, 2019 (and only during such calendar quarter), if the last reported sale price of the Company’s common stock, for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; • during the five business day period after any five consecutive trading day period (the “measurement period”) in which the trading price (as defined in the Indenture) per $1,000 principal amount of the Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of common stock and the conversion rate for the Notes on each such trading day; • if the Company calls any or all of the Notes for redemption, at any time prior to the close of business on the scheduled trading day immediately preceding the redemption date; and • upon the occurrence of specified corporate events as set forth in the Indenture. On or after March 15, 2024 until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert all or any portion of their Notes, in multiples of $1,000 principal amount, at the option of the holder regardless of the foregoing circumstances. Upon conversion, the Company may satisfy its conversion obligation by paying and/or delivering, as the case may be, cash, shares of common stock or a combination of cash and shares of common stock, at the Company’s election, in the manner and subject to the terms and conditions provided in the Indenture. It is the Company’s current intent to settle the principal amount of the Notes with cash. The Notes are convertible at an initial conversion rate of approximately 35.1849 shares of common stock per $1,000 principal amount of the Notes, which is equivalent to an initial conversion price of approximately $28.42 per share of common stock, subject to adjustment upon the occurrence of specified events. The conversion rate is subject to adjustment under certain circumstances in accordance with the terms of the Indenture. In addition, following certain corporate events that occur prior to the maturity date or if the Company delivers a notice of redemption, the Company will, in certain circumstances, increase the conversion rate for a holder who elects to convert its Notes in connection with such a corporate event or notice of redemption, as the case may be. For example, upon the occurrence of a make-whole fundamental change, as defined in the purchase agreement, the Company will, in certain circumstances, increase the conversion rate by a number of additional shares for a holder that elects to convert its Notes in connection with such make-whole fundamental change or during the relevant redemption period. The Company may not redeem the Notes prior to September 20, 2022. The Company may redeem for cash all or any portion of the Notes, at its option, on or after September 20, 2022, if the last reported sale price of common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day preceding the date on which the Company provides notice of redemption at a redemption price equal to 100% of the principal amount of the Notes to be redeemed, plus any accrued and unpaid interest to, but excluding, the redemption date. No sinking fund is provided for the Notes, which means that the Company is not required to redeem or retire the Notes periodically. If the Company undergoes a fundamental change (as defined in the Indenture), holders may require the Company to repurchase for cash all or any portion of their Notes at a fundamental change repurchase price equal to 100% of the principal amount of the Notes to be repurchased, plus any accrued and unpaid interest to, but excluding, the fundamental change repurchase date. The Indenture includes customary covenants and sets forth certain events of default after which the Notes may be declared immediately due and payable and sets forth certain types of bankruptcy or insolvency events of default involving the Company after which the Notes become automatically due and payable. The Company was in compliance with all applicable covenants as of September 30, 2019. As of September 30, 2019, the conditions allowing holders of the Notes to convert have not been met, and therefore, the Notes were classified as long-term debt on our condensed consolidated balance sheet. In accounting for the issuance of the Notes, we separated the Notes into liability and equity components. The carrying amounts of the liability components of the Notes were calculated by measuring the fair value of similar debt instruments that do not have an associated convertible feature. The carrying amounts of the equity components, representing the conversion option, were determined by deducting the fair value of the liability components from the par value of the Notes. This difference represents the debt discount that is amortized to interest expense over the terms of the Notes using the effective interest rate method. The carrying amount of the equity components representing the conversion options was approximately $88.8 million for the Notes and is recorded in additional paid in capital and are not remeasured as long as they continue to meet the conditions for equity classification. The Company allocates transaction costs related to the issuance of the Notes to the liability and equity components using the same proportions as the initial carrying value of the Notes. Transaction costs attributable to the liability component were approximately $6.8 million and are being amortized to interest expense at an effective interest method rate of 5.25% over the term of the Notes. Transaction costs attributable to the equity component were approximately $2.0 million and are netted with the equity component of the Notes in additional paid in capital. For tax purposes, the capped call hedge is treated as integrated with the Offering, resulting in tax deductible original issuance discount (“OID”). Thus, a deferred tax asset of $8.9 million has been established that will accrete through additional paid in capital over the life of the Notes. The OID for GAAP purposes resulted in a deferred tax liability of $21.3 million for tax purposes and will accrete through additional paid in capital over the life of the Notes. The transaction costs are deductible for tax purposes over the life of the Notes; thus, a deferred tax asset of $0.5 million has been established for these costs, which is net of the amount allocated to equity for GAAP. As of September 30, 2019, the Notes have a remaining life of approximately 60 months. The net carrying amount of the liability and equity components of the Notes as of September 30, 2019 was as follows: As of September 30, 2019 (in thousands) Liability component Principal $ 400,000 Unamortized discount (88,480 ) Unamortized issuance costs (6,743 ) Net carrying amount $ 304,777 Equity component, net of issuance costs $ 86,764 The interest expense recognized related to the Notes for the periods presented was as follows: Three Months Ended Nine Months Ended September 30, 2019 September 30, 2019 (in thousands) Contractual interest expense $ 8 $ 8 Amortization of debt discount 261 261 Amortization of debt issuance costs 22 22 Total $ 291 $ 291 As of September 30, 2019, the total estimated fair value of the Notes was approximately $380.9 million. The fair value was determined based on the closing trading price per $100 of the Notes as of the last day of trading for the period. The fair value of the Notes is primarily affected by the trading price of our common stock and market interest rates. The fair value of the Notes is considered a Level 2 within the fair value hierarchy and was determined based on inputs that are observable in the market or that could be derived from, or corroborated with, observable market data, quoted price of the Notes in an over-the-counter market. Capped Call Transactions In September 2019, in connection with the pricing of the Notes and in connection with the initial purchasers’ exercise in full of their option to purchase additional Notes, the Company entered into privately negotiated capped call transactions (the “Capped Call Transactions”) with the initial purchasers or their respective affiliates and another financial institution. The Capped Call Transactions cover, subject to anti-dilution adjustments substantially similar to those applicable to the Notes, approximately 14.1 million shares of common stock. The Capped Call Transactions are generally expected to reduce potential dilution to common stock upon any conversion of the Notes and/or offset any potential cash payments the Company is required to make in excess of the principal amount of converted Notes, as the case may be, with such reduction and/or offset subject to a cap. The Capped Call Transactions have an initial strike price of approximately $28.42 per share, which corresponds to the initial conversion price of the Notes and is subject to certain adjustments. The cap price of the Capped Call Transactions is initially $41.34 per share, which is subject to certain adjustments. For accounting purposes, the Capped Calls Transactions are separate transactions and not part of the terms of the Notes. As the Capped Call Transactions are considered indexed to our own stock and are considered equity classified, they are recorded in stockholders’ equity and are not accounted for as derivatives. The cost of approximately $37.1 million incurred in connection with the Capped Call Transactions was recorded as a reduction to additional paid in capital.

Stock Option Plans and Stock-Ba

Stock Option Plans and Stock-Based Compensation	9 Months Ended
	Sep. 30, 2019
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Stock Option Plans and Stock-Based Compensation	8. 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”) for the right to purchase shares of common stock and grant restricted stock units. The 2015 Stock Option Plans reserve 5.0 million shares of common stock for issuance as ISOs, 0.5 million shares of restricted stock and 0.25 million 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. Options generally expire ten years after the grant date. At September 30, 2019, approximately 592,000 shares were available for issuance under the Amended and Restated 2015 Stock Option and Grant Plan and includes approximately 90,000 shares which 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”) under which it may grant stock options, nonqualified stock options to purchase shares of common stock and restricted stock units (“RSUs”). As of September 30, 2019, the Company had reserved approximately 13.3 million 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 approximately 4.4 million shares of common stock. Options and RSUs granted to employees under the 2017 Plan generally vest over four years. Common stock subject to an award that expires or is canceled, forfeited, exchanged 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 September 30, 2019, approximately 8.9 million shares were available for issuance under the 2017 Plan. The Company currently uses authorized and unissued shares to satisfy share award exercises. The fair value for the Company’s stock options granted and Employee Stock Purchase Plan (the "ESPP") purchase rights, as discussed further below, during the nine months ended September 30, 2019 and 2018 was estimated at grant date using a Black Scholes option-pricing model using the following weighted average assumptions: Stock Options ESPP September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 Expected dividend rate 0% 0% 0% 0% Expected volatility 38.8% - 39.8% 40.0% - 41.1% 39.8% - 46.0% 40.0% Risk-free interest rate 1.39% - 2.59% 2.63% - 2.91% 2.29 - 2.44% 2.0% Expected term (in years) 6.25 6.25 0.42 - 0.50 0.50 The following table summarizes stock option activity for the nine months ended September 30, 2019: Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (in thousands) (per share) (years) (in thousands) Balances at December 31, 2018 2,817 $ 6.64 8.0 $ 47,589 Granted 993 $ 27.05 Exercised (618 ) $ 4.13 Forfeited (200 ) $ 14.57 Balances at September 30, 2019 2,992 $ 13.40 8.0 $ 23,981 Options vested and expected to vest at September 30, 2019 2,992 $ 13.40 8.0 $ 23,981 Options vested and exercisable at September 30, 2019 1,149 $ 5.74 6.9 $ 14,986 The Company expects all outstanding stock options to fully vest. During the three and nine months ended September 30, 2019, approximately $0.2 million of vested stock options were forfeited related to the resignation of our former Chief Revenue Officer. The weighted average grant date fair value per share for the nine months ended September 30, 2019 and 2018 was $11.48 and $9.92, respectively. Stock-based compensation expense relating to stock options was approximately $1.2 million and $3.9 million for the three and nine months ended September 30, 2019, respectively, compared to approximately $0.7 million and $3.2 million for the three and nine months ended September 30, 2018, respectively. The total fair value of shares vested during the three and nine months ended September 30, 2019 was approximately $0.8 million and $3.7 million, respectively, compared to approximately $0.2 million and $0.7 million for the three and nine months ended September 30, 2018, respectively. The total unrecognized compensation expense related to non-vested stock options granted is approximately $13.6 million and is expected to be recognized over a weighted average period of approximately 2.6 years as of September 30, 2019. During the three and nine months ended September 30, 2019, approximately $0.9 million of unrecognized compensation expense related to non-vested stock options was forfeited due to the resignation of our former Chief Revenue Officer. 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 if exercised in advance of vesting were subject to the Company’s right to repurchase until vested. During the first quarter of 2019, all of the remaining 0.7 million incentive units were vested with a weighted average grant date fair value of $0.05 per share. The Company did not grant any additional incentive units during the nine months ended September 30, 2019 and 2018. As of March 31, 2019, all incentive units were vested. Therefore, subsequent to the first quarter of 2019, we incurred no additional stock-based compensation expense. Stock-based compensation expense was approximately $0.4 million for the nine months ended September 30, 2019. Stock-based compensation expense was approximately $2.2 million and $6.4 million for the three and nine months ended September 30, 2018, respectively. Restricted Stock Units Restricted stock units (“RSUs”) are generally subject to forfeiture if employment terminates prior to the vesting date. We expense the cost of the RSUs, which is determined to be the fair market value of the shares of common stock underlying the RSUs on the date of grant, ratably over the period during which the vesting restrictions lapse. The following table summarizes the RSU activity for employees and non-employees for the nine months ended September 30, 2019: Number of Shares Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (in thousands) (per share) (years) (in thousands) Balances at December 31, 2018 1,148 $ 15.40 1.8 26,967 Granted 1,197 $ 28.19 Vested (140 ) $ 20.00 Forfeited (183 ) $ 20.32 Balances at September 30, 2019 2,022 $ 22.21 1.7 37,783 Units expected to vest at September 30, 2019 2,022 $ 22.21 1.7 37,783 The Company expects all outstanding RSUs to fully vest. During the three and nine months ended September 30, 2019, The total unrecognized compensation related to RSUs for employee and non-employees was Employee Stock Purchase Plan In November 2017, the Company’s Board of Directors adopted the Employee Stock Purchase Plan (the "ESPP"). The ESPP became effective November of 2017, after the date our registration statement was declared effective by the SEC. The ESPP permits eligible employees to purchase shares by authorizing payroll deductions from 1% to 15% of employee’s eligible compensation during the offering period, which is generally six months, with an annual cap of $25,000 in fair market value, determined at the grant date. Unless an employee has previously withdrawn from the offering, his or her accumulated payroll deductions will be used to purchase shares after the closing of the offering period at a price equal to 85% of the closing price of the shares at the opening or closing of the offering period, whichever is lower. During the three months ended September 30, 2019, there was no ESPP activity as the current offering period is June 4, 2019 through December 2, 2019. During the nine months ended September 30, 2019, the Company issued and distributed approximately 0.2 million shares of common stock pursuant to the ESPP offering spanning January 2, 2019 to June 3, 2019. The Company initially reserved 1.8 million shares of common stock for issuance under the ESPP. The number of shares available for issuance under the ESPP will increase each January 1 beginning in 2019 by 0.9 million shares of common stock. The ESPP will continue in effect until October 30, 2020; unless terminated prior thereto by the Company’s Board of Directors or compensation committee, each of which has the right to terminate the ESPP at any time. At September 30, 2019, approximately 2.5 million shares were available for issuance under the ESPP Plan. Stock-based compensation expense relating to the ESPP was approximately $0.4 million and $1.7 million for the three and nine months ended September 30, 2019, respectively, compared to approximately $0.5 million for the three and nine months ended September 30, 2018, respectively. Stock-based compensation expense associated with ESPP purchase rights are recognized on a straight-line basis over the offering period. A Three Months Ended Nine Months Ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 (In thousands) Stock options $ 1,232 $ 723 $ 3,868 $ 3,210 Incentive units — 2,160 351 6,429 RSUs 2,819 1,457 8,176 3,956 ESPP 438 543 1,703 543 Total stock-based compensation expense $ 4,489 $ 4,883 $ 14,098 $ 14,138 A summary of the Company’s stock-based compensation expense as recognized on the condensed consolidated statements of operations is as follows: Three Months Ended Nine Months Ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 (In thousands) Cost of revenue - subscription $ 286 $ 284 $ 830 $ 658 Cost of revenue - services and other 337 394 1,066 1,116 Research and development 820 852 2,653 2,145 General and administrative 1,710 1,953 4,725 5,988 Sales and marketing 1,336 1,400 4,824 4,231 Total stock-based compensation expense $ 4,489 $ 4,883 $ 14,098 $ 14,138

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2019
Income Tax Disclosure [Abstract]
Income Taxes	9. 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, reduced the U.S. federal corporate tax rate from 35% to 21%. Upon adoption, there was no net impact to the Company’s provision for income taxes or net deferred 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. Under GAAP, the Company is permitted to make an accounting policy election to either treat taxes due on future inclusions in U.S. taxable income related to GILTI as a current-period expense when incurred (the “period cost method”) or to factor such amounts into the Company’s measurement of its deferred taxes (the “deferred method”). The Company elected the "period cost method" as its accounting policy with respect to the new GILTI tax rules. For the periods ended September 30, 2019 and 2018, the Company determined it was in an aggregated net loss position with respect to its controlled foreign corporations. Thus, there is no GILTI tax liability as of September 30, 2019 and 2018. The provision for income taxes for 2019 and 2018 is generated from activity related to stock options and certain foreign jurisdictions by our consolidated subsidiaries. The effective tax rate for the three and nine months ended September 30, 2019 is (249.3)% and 13.9%, respectively, compared to 56.9% and 73.5% for the three and nine months ended September 30, 2018, respectively. The primary drivers for the differences in the rates from the prior-year periods to the current-year periods are related to differences in forecasted pre-tax book income, the impact of stock compensation and an increase in foreign tax liabilities. Provision for income taxes consists of U.S. and state income taxes and income taxes in certain foreign jurisdictions in which the Company conducts business. With the previous adoption of ASC 606 in 2018, the Company is in a deferred tax liability position and no longer requires a valuation allowance. The Company still maintains a full valuation allowance for our Israel tax position due to the lack of taxable earnings for the foreseeable future. The Company’s practice is to recognize interest and/or penalties related to income tax matters in income tax expense. During the three and nine months ended September 30, 2019 and 2018, the Company did not record any material interest or penalties. The Company files tax returns in the U.S. federal jurisdiction, in several state jurisdictions, and in several foreign jurisdictions. The Company is no longer subject to U.S. federal income tax examinations for years before 2015 and is no longer subject to state, local and foreign income tax examinations by tax authorities for years before 2014. The Company is currently under audit for income tax in a single foreign jurisdiction. The audit is ongoing and is not expected to materially impact the consolidated financial statements. The Company has an Uncertain Tax Position reserve related to this foreign jurisdiction filing that should sufficiently cover any related assessment.

Net Income (Loss) Per Share Att

Net Income (Loss) Per Share Attributable to Common Stockholders	9 Months Ended
	Sep. 30, 2019
Earnings Per Share [Abstract]
Net Income (Loss) Per Share Attributable to Common Stockholders	10. Net Income (Loss) Per Share Attributable to Common Stockholders Basic and diluted net income (loss) per share is computed by dividing net income (loss) attributable to common stockholders 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 anti-dilutive effect. The following table sets forth the calculation of basic and diluted net income (loss) per share during the periods presented: Three Months Ended Nine Months Ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 (In thousands, except per share data) Numerator Net income (loss) $ 3,668 $ 1,808 $ (13,919 ) $ (1,473 ) Earnings allocated to unvested incentive units — (15 ) — — Net income (loss) attributable to common stockholders $ 3,668 $ 1,793 $ (13,919 ) $ (1,473 ) Denominator Weighted average shares outstanding Basic 89,143 86,825 88,739 86,268 Diluted 90,808 90,355 88,739 86,268 Net income (loss) attributable to common stockholders per share Basic $ 0.04 $ 0.02 $ (0.16 ) $ (0.02 ) Diluted $ 0.04 $ 0.02 $ (0.16 ) $ (0.02 ) The following weighted average outstanding shares of common stock equivalents were excluded from the computation of the diluted net income (loss) per share attributable to common stockholders for the periods presented because their effect would have been anti-dilutive. Three Months Ended Nine Months Ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 (in thousands) Stock options to purchase common stock 907 33 3,062 3,264 Non-vested incentive units — — — 1,139 RSUs issued and outstanding 969 4 1,855 1,224 ESPP — — 67 57 Total 1,876 37 4,984 5,684 As we expect to settle the principal amount of the Notes in cash and any excess in shares of the Company’s common stock, the Company uses the treasury stock method for calculating any potential dilutive effect of the conversion spread on diluted net income per share, if applicable. The conversion spread of approximately 14.1 million shares will have a dilutive impact on diluted net income per share of common stock when the average market price of our common stock for a given period exceeds the conversion price of $28.42 per share.

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2019
Subsequent Events [Abstract]
Subsequent Events	11. Subsequent Events On October 15, 2019, SailPoint Technologies, Inc., a Delaware corporation and wholly owned subsidiary of the Company, completed its acquisition of (i) Orkus, Inc., a Delaware corporation (“Orkus”) and (ii) Overwatch.ID, Inc., a Delaware corporation (“Overwatch.ID”) (collectively, the “Acquisitions”). The consummation of each Acquisition was not conditioned on the consummation of the other Acquisition. Orkus Orkus is engaged in the development and license of software products to assist customers in monitoring and controlling access and authorization across hybrid cloud assets. Pursuant to the terms of that certain Agreement and Plan of Merger (the “Orkus Merger Agreement”), Whaler Merger Sub merged with and into Orkus with Orkus continuing as the surviving corporation. The aggregate consideration paid for Orkus was approximately $16.5 million, subject to certain adjustments with respect to Orkus’ debt, cash and net working capital balances at the closing and the deduction of a portion of the consideration as partial security for the indemnification obligations of the equity holders of Orkus under the Orkus Merger Agreement. Overwatch.ID Overwatch.ID is engaged in the development and license of software products focused on access controls security for cloud applications, cloud computing, hybrid IT environments, and on-premises infrastructure. Pursuant to the terms of that certain Agreement and Plan of Merger (the “Overwatch Merger Agreement”), Osprey Merger Sub merged with and into Overwatch.ID with Overwatch.ID continuing as the surviving corporation. The aggregate consideration paid for Overwatch.ID was approximately $21.0 million, subject to certain adjustments with respect to Overwatch.ID’s debt, cash and net working capital balances at the closing and the deduction of a portion of the consideration as partial security for the indemnification obligations of the equity holders of Overwatch.ID under the Overwatch Merger Agreement. The transactions were funded with cash on hand. The Company is in the process of completing our initial accounting for these Acquisitions.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2019
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 disclosures 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 sheets, statements of operations, statements of stockholders’ equity 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, 2019 or any future period. Our unaudited condensed 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, 2018, which was filed with the SEC on March 18, 2019 (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.
Use of Estimates	Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Management periodically evaluates such estimates and assumptions for continued reasonableness. In particular, we make estimates with respect to the fair value allocation of multiple performance obligation in revenue recognition, the collectability of accounts receivable, valuation of long-lived assets, fair value of the liability and equity components of the Notes (as defined below), stock-based compensation expense and income taxes. Appropriate adjustments, if any, to the estimates used are made prospectively based upon periodic evaluation. Actual results could differ from those estimates.
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 as well as $6.0 million of cash collateral for an unconditional standby letter of credit related to the Company’s corporate headquarters lease. As of September 30, 2019 December 31, 2018 (In thousands) Cash and cash equivalents per balance sheet $ 464,332 $ 70,964 Restricted cash per balance sheet 6,317 6,272 Cash, cash equivalents and restricted cash per cash flow $ 470,649 $ 77,236
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 makers review financial information presented on a consolidated basis for purposes of making operating decisions, assessing financial performance and allocating resources. ASC 280, “Segment Reporting,” establishes standards for reporting information about operating segments. Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision makers in deciding how to allocate resources and in assessing performance. The Company manages its business on the basis of one reportable segment, and derives revenues from licensing of software, subscription and renewals, sale of professional services, maintenance and technical support. The following table sets forth the Company’s consolidated revenue by geography: Three Months Ended Nine Months Ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 (In thousands) United States $ 56,071 $ 45,693 $ 142,030 $ 112,008 EMEA (1) 12,499 11,754 38,768 36,305 Rest of the World (1) 7,309 8,288 18,718 20,019 Total revenue $ 75,879 $ 65,735 $ 199,516 $ 168,332 (1) No single country represented more than 10%
Concentration of Credit Risk and Other Risks	Concentration of Credit Risk and Other Risks 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. As of September 30, 2019, no single entity represented more than 10% of the balance in accounts receivable. As of December 31, 2018, 11%, of the Company’s accounts receivable was from one customer. Management considers concentration of credit risk to be minimal with respect to accounts receivable due to the positive historical collection experience of the Company despite the geographic concentrations related to the Company’s customers. No single customer represented more than 10% of revenue for the three and nine months ended September 30, 2019 and 2018. The Company does not experience concentration of credit risk in foreign countries as no single foreign country represents more than 10% of the Company’s consolidated revenues or net assets.
Significant Accounting Policies	Significant Accounting Policies The condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes in the Annual Report, most notably Note 2 “Summary of Significant Accounting Policies”. In 2019, the Company adopted Accounting Standards Update 2016-02, “ Leases Note 5 “Commitments and Contingencies” below.
Services and Other Revenues	Services and Other Revenues As previously disclosed in the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2019, which was filed with the SEC on August 6, 2019 (the “Second Quarter Quarterly Report”), while there are no changes to the accounting policy the Company provides the following additional clarification regarding the revenue for fixed price services and prepaids that are recognized over time using input methods to estimate progress to completion. For services that are contracted for at a fixed price, progress is generally measured based on hours incurred as a percentage of the total estimated hours required for complete satisfaction of the related performance obligations. For services that are contracted on a time and materials or prepaid basis, progress is generally based on actual hours expended. These input methods (e.g. hours incurred or expended) are considered a faithful depiction of our efforts to satisfy services contracts as they represent the performance obligation consumed by the customer and performed by the entity and therefore reflect the transfer of services to a customer under such contracts.
Deferred Contract Acquisition Costs	Deferred Contract Acquisition Costs As previously disclosed in the Second Quarter Quarterly Report, while there are no changes to the accounting policy the Company provides the following additional clarification regarding the incremental costs of obtaining a contract, such as deferred sales commission costs, in particular upon contract renewals. The Company typically pays sales commissions for both initial and follow-on sales of perpetual licenses, inclusive of initial maintenance, term licenses and subscription offerings. Initial commissions are allocated to each performance obligation within the contract. The portion allocated to the perpetual license element is expensed at the time the license is delivered. Commissions allocated to the remaining elements are capitalized and amortized over an expected period of benefit. The Company has determined the expected period of benefit to be approximately five years. In addition, the Company pays sales commissions for renewals of term licenses and subscription offerings at a lower rate, which is therefore not commensurate with commissions paid on an initial sale. These renewal commissions are amortized over each renewal’s contractual term. The Company does not pay sales commissions on renewals of maintenance agreements related to perpetual licenses.
Recently Issued Accounting Standards Not Yet Adopted and Adopted	Recently Issued Accounting Standards Not Yet Adopted In August 2018, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update (ASU) 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40) In June 2016, the FASB issued ASU 2016-13, “ Financial Instruments—Credit Losses (Topic 326). Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02 and subsequent updates thereafter in ASU 2017-13, ASU 2018-10 and ASU 2018-11, Leases On January 1, 2019, we adopted ASC 842 using the modified retrospective transition method The adoption of the new standard represents a change in accounting principle with the intent to increase transparency and comparability among organizations by requiring the recognition of ROU assets and lease liabilities on the balance sheet. Most prominent among the changes in the standard is the recognition of ROU assets and lease liabilities by lessees for those leases classified as operating leases. Under the standard, disclosures are required to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. We ha ve made an accounting policy election not to recognize ROU assets and lease liabilities that arise from short-term leases for any class of underlying asset. The standard did not have a material impact on our condensed consolidated statements of operations or statements of cash flows. However, upon adoption of ASC 842 the opening impact on our condensed consolidated balance sheets was not material, but it resulted in recording ROU assets and an increase in total lease liabilities of $3.5 million In June 2018, the FASB issued ASU 2018-07, Compensation—Stock Compensation (ASC 718): Improvements to Nonemployee Share-Based Payment Accounting (ASU 2018-07)

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2019
Accounting Policies [Abstract]
Summary of 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 as well as $6.0 million of cash collateral for an unconditional standby letter of credit related to the Company’s corporate headquarters lease. As of September 30, 2019 December 31, 2018 (In thousands) Cash and cash equivalents per balance sheet $ 464,332 $ 70,964 Restricted cash per balance sheet 6,317 6,272 Cash, cash equivalents and restricted cash per cash flow $ 470,649 $ 77,236
Summary of Consolidated Total Revenue by Geography	The following table sets forth the Company’s consolidated revenue by geography: Three Months Ended Nine Months Ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 (In thousands) United States $ 56,071 $ 45,693 $ 142,030 $ 112,008 EMEA (1) 12,499 11,754 38,768 36,305 Rest of the World (1) 7,309 8,288 18,718 20,019 Total revenue $ 75,879 $ 65,735 $ 199,516 $ 168,332 (1) No single country represented more than 10%

Revenue Recognition (Tables)

Revenue Recognition (Tables)	9 Months Ended
	Sep. 30, 2019
Revenue Recognition [Abstract]
Schedule of Timing of Transfer of Control	The following table presents the Company’s revenue by timing of revenue recognition to understand the risks of timing of transfer of control: Three Months Ended September 30, 2019 Three Months Ended September 30, 2018 Services Services License Subscription and other License Subscription and other (in thousands) Timing of revenue recognition Revenue recognized at a point in time $ 26,825 $ — $ — $ 28,023 $ — $ — Revenue recognized over time — 37,383 11,671 — 27,916 9,796 Total revenue $ 26,825 $ 37,383 $ 11,671 $ 28,023 $ 27,916 $ 9,796 Nine Months Ended September 30, 2019 Nine Months Ended September 30, 2018 Services Services License Subscription and other License Subscription and other (in thousands) Timing of revenue recognition Revenue recognized at a point in time $ 64,827 $ — $ — $ 64,451 $ — $ — Revenue recognized over time — 102,929 31,760 — 74,531 29,350 Total revenue $ 64,827 $ 102,929 $ 31,760 $ 64,451 $ 74,531 $ 29,350
Summary of Contract Balances	A summary of the activity impacting our contract balances during the nine months ended September 30, 2019 is presented below (in thousands): Contract acquisition costs Balances at December 31, 2018 $ 28,043 Additional deferred contract acquisition costs 9,700 Amortization of deferred contract acquisition costs (7,346 ) Balances at September 30, 2019 $ 30,397 Deferred revenue (current) Deferred revenue (non-current) Balances at December 31, 2018 $ 95,919 $ 18,382 Increase, net 7,398 2,139 Balances at September 30, 2019 $ 103,317 $ 20,521

Intangible Assets (Tables)

Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2019
Goodwill And Intangible Assets Disclosure [Abstract]
Schedule of Cost and Amortization of Intangible Assets	Total cost and amortization of intangible assets are comprised of the following: As of Weighted Average Useful Life September 30, 2019 December 31, 2018 Intangible assets (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 Other intangible assets 4.9 3,310 3,310 Total intangible assets 112,310 113,410 Less: Accumulated amortization (44,443 ) (38,550 ) Total intangible assets, net $ 67,867 $ 74,860
Summary of Amortization Expense Included in Condensed Consolidated Statements of Operations	Amortization expense included in the condensed consolidated statements of operations for the periods ended September 30, 2019 and 2018 is as follows: Three Months Ended Nine Months Ended Amortization expense (in thousands) September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 Cost of revenue - licenses $ 1,008 $ 1,008 $ 3,024 $ 3,024 Cost of revenue - subscription 96 96 288 288 Research and development 159 34 477 102 Sales and marketing 1,068 1,068 3,204 3,204 Total amortization of acquired intangibles $ 2,331 $ 2,206 $ 6,993 $ 6,618

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 30, 2019
Commitments And Contingencies Disclosure [Abstract]
Summary of Operating Lease Costs and Other Supplemental Cash Flow Information Related to Operating Leases	Operating lease costs during the periods presented were as follows: Three Months Ended Nine Months Ended September 30, 2019 September 30, 2019 (in thousands) Lease cost Operating lease cost $ 790 $ 3,577 Short-term lease cost 884 1,746 Total lease cost $ 1,674 $ 5,323 Other supplemental cash flow information related to operating leases is as follows: Three Months Ended Nine Months Ended September 30, 2019 September 30, 2019 (in millions) Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 1.2 $ 3.4 Right-of-use assets obtained in exchange for lease liabilities Operating leases $ — $ 30.4
Summary of Undiscounted Annual Future Minimum Lease Payments	At September 30, 2019, we have no financing leases and we have non-cancelable operating lease commitments, excluding variable consideration. The undiscounted annual future minimum lease payments are summarized by year in the table below: Year Ending December 31, (in thousands) 2019 (except the nine months ended September 30) $ 1,191 2020 4,975 2021 5,511 2022 5,478 2023 4,978 Thereafter 27,030 Total minimum lease payments 49,163 Less: interest (7,868 ) Total present value of operating lease liabilities $ 41,295 Less: operating lease liabilities - current $ (3,406 ) Long-term operating lease liabilities $ 37,889

Convertible Senior Notes and _2

Convertible Senior Notes and Capped Call Transactions (Tables)	9 Months Ended
	Sep. 30, 2019
Debt Disclosure [Abstract]
Summary of Net Carrying Amount of Liability and Equity Components of Notes	The net carrying amount of the liability and equity components of the Notes as of September 30, 2019 was as follows: As of September 30, 2019 (in thousands) Liability component Principal $ 400,000 Unamortized discount (88,480 ) Unamortized issuance costs (6,743 ) Net carrying amount $ 304,777 Equity component, net of issuance costs $ 86,764
Summary of Interest Expense Recognized Related to Notes for Periods Presented	The interest expense recognized related to the Notes for the periods presented was as follows: Three Months Ended Nine Months Ended September 30, 2019 September 30, 2019 (in thousands) Contractual interest expense $ 8 $ 8 Amortization of debt discount 261 261 Amortization of debt issuance costs 22 22 Total $ 291 $ 291

Stock Option Plans and Stock-_2

Stock Option Plans and Stock-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2019
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 and Employee Stock Purchase Plan (the "ESPP") purchase rights, as discussed further below, during the nine months ended September 30, 2019 and 2018 was estimated at grant date using a Black Scholes option-pricing model using the following weighted average assumptions: Stock Options ESPP September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 Expected dividend rate 0% 0% 0% 0% Expected volatility 38.8% - 39.8% 40.0% - 41.1% 39.8% - 46.0% 40.0% Risk-free interest rate 1.39% - 2.59% 2.63% - 2.91% 2.29 - 2.44% 2.0% Expected term (in years) 6.25 6.25 0.42 - 0.50 0.50
Summary of Stock Option Activity	The following table summarizes stock option activity for the nine months ended September 30, 2019: Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (in thousands) (per share) (years) (in thousands) Balances at December 31, 2018 2,817 $ 6.64 8.0 $ 47,589 Granted 993 $ 27.05 Exercised (618 ) $ 4.13 Forfeited (200 ) $ 14.57 Balances at September 30, 2019 2,992 $ 13.40 8.0 $ 23,981 Options vested and expected to vest at September 30, 2019 2,992 $ 13.40 8.0 $ 23,981 Options vested and exercisable at September 30, 2019 1,149 $ 5.74 6.9 $ 14,986
Summary of RSU Activity for Employees and Non-employees	The following table summarizes the RSU activity for employees and non-employees for the nine months ended September 30, 2019: Number of Shares Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (in thousands) (per share) (years) (in thousands) Balances at December 31, 2018 1,148 $ 15.40 1.8 26,967 Granted 1,197 $ 28.19 Vested (140 ) $ 20.00 Forfeited (183 ) $ 20.32 Balances at September 30, 2019 2,022 $ 22.21 1.7 37,783 Units expected to vest at September 30, 2019 2,022 $ 22.21 1.7 37,783
Summary of Stock-Based Compensation Expense By Underlying Equity Instrument	A Three Months Ended Nine Months Ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 (In thousands) Stock options $ 1,232 $ 723 $ 3,868 $ 3,210 Incentive units — 2,160 351 6,429 RSUs 2,819 1,457 8,176 3,956 ESPP 438 543 1,703 543 Total stock-based compensation expense $ 4,489 $ 4,883 $ 14,098 $ 14,138
Summary of Stock-Based Compensation Expense	A summary of the Company’s stock-based compensation expense as recognized on the condensed consolidated statements of operations is as follows: Three Months Ended Nine Months Ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 (In thousands) Cost of revenue - subscription $ 286 $ 284 $ 830 $ 658 Cost of revenue - services and other 337 394 1,066 1,116 Research and development 820 852 2,653 2,145 General and administrative 1,710 1,953 4,725 5,988 Sales and marketing 1,336 1,400 4,824 4,231 Total stock-based compensation expense $ 4,489 $ 4,883 $ 14,098 $ 14,138

Net Income (Loss) Per Share A_2

Net Income (Loss) Per Share Attributable to Common Stockholders (Tables)	9 Months Ended
	Sep. 30, 2019
Earnings Per Share [Abstract]
Schedule of Calculation of Basic and Diluted Net Income (Loss) Per Share	The following table sets forth the calculation of basic and diluted net income (loss) per share during the periods presented: Three Months Ended Nine Months Ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 (In thousands, except per share data) Numerator Net income (loss) $ 3,668 $ 1,808 $ (13,919 ) $ (1,473 ) Earnings allocated to unvested incentive units — (15 ) — — Net income (loss) attributable to common stockholders $ 3,668 $ 1,793 $ (13,919 ) $ (1,473 ) Denominator Weighted average shares outstanding Basic 89,143 86,825 88,739 86,268 Diluted 90,808 90,355 88,739 86,268 Net income (loss) attributable to common stockholders per share Basic $ 0.04 $ 0.02 $ (0.16 ) $ (0.02 ) Diluted $ 0.04 $ 0.02 $ (0.16 ) $ (0.02 )
Weighted Average Outstanding Shares of Common Stock Equivalents Excluded from the Computation of the Diluted Net Income (Loss) per Share	The following weighted average outstanding shares of common stock equivalents were excluded from the computation of the diluted net income (loss) per share attributable to common stockholders for the periods presented because their effect would have been anti-dilutive. Three Months Ended Nine Months Ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 (in thousands) Stock options to purchase common stock 907 33 3,062 3,264 Non-vested incentive units — — — 1,139 RSUs issued and outstanding 969 4 1,855 1,224 ESPP — — 67 57 Total 1,876 37 4,984 5,684

Organization and Description _2

Organization and Description of Business - Additional Information (Details)	9 Months Ended
	Sep. 30, 2019
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Date of incorporation	Aug. 8, 2014
Entity Incorporation, State or Country Code	DE

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Additional Information (Details) $ in Millions	Jan. 01, 2019USD ($)	Sep. 30, 2019USD ($)	Sep. 30, 2018	Sep. 30, 2019USD ($)Segment	Sep. 30, 2018	Dec. 31, 2018
Summary Of Significant Accounting Policies [Line Items]
Number of operating segments | Segment				1
ASC 842
Summary Of Significant Accounting Policies [Line Items]
Recording of ROU assets and increase in total lease liabilities	$ 3.5
Credit Concentration Risk | Accounts Receivable
Summary Of Significant Accounting Policies [Line Items]
Concentration risk, percentage				10.00%		11.00%
Credit Concentration Risk | Revenue
Summary Of Significant Accounting Policies [Line Items]
Concentration risk, percentage		10.00%	10.00%	10.00%	10.00%
Credit Concentration Risk | Net Assets
Summary Of Significant Accounting Policies [Line Items]
Concentration risk, percentage		10.00%	10.00%	10.00%	10.00%
Standby Letter of Credit
Summary Of Significant Accounting Policies [Line Items]
Cash collateral		$ 6		$ 6

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Summary of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018	Sep. 30, 2018	Dec. 31, 2017
Accounting Policies [Abstract]
Cash and cash equivalents per balance sheet	$ 464,332	$ 70,964
Restricted cash per balance sheet	6,317	6,272
Cash, cash equivalents and restricted cash per cash flow	$ 470,649	$ 77,236	$ 83,436	$ 116,127

Summary of Significant Accoun_6

Summary of Significant Accounting Policies - Summary of Consolidated Total Revenue by Geography (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Summary of Significant Accounting Policies [Line Items]
Total revenue	$ 75,879	$ 65,735	$ 199,516	$ 168,332
United States
Summary of Significant Accounting Policies [Line Items]
Total revenue	56,071	45,693	142,030	112,008
EMEA
Summary of Significant Accounting Policies [Line Items]
Total revenue	12,499	11,754	38,768	36,305
Rest of the World
Summary of Significant Accounting Policies [Line Items]
Total revenue	$ 7,309	$ 8,288	$ 18,718	$ 20,019

Summary of Significant Accoun_7

Summary of Significant Accounting Policies - Summary of Consolidated Total Revenue by Geography (Parenthetical) (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Credit Concentration Risk | Revenue
Summary of Significant Accounting Policies [Line Items]
Concentration risk, percentage	10.00%	10.00%	10.00%	10.00%

Revenue Recognition - Schedule

Revenue Recognition - Schedule of Timing of Transfer of Control (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Disaggregation Of Revenue [Line Items]
Total revenue	$ 75,879	$ 65,735	$ 199,516	$ 168,332
Licenses
Disaggregation Of Revenue [Line Items]
Total revenue	26,825	28,023	64,827	64,451
Licenses | Revenue Recognized At a Point in Time
Disaggregation Of Revenue [Line Items]
Total revenue	26,825	28,023	64,827	64,451
Subscription
Disaggregation Of Revenue [Line Items]
Total revenue	37,383	27,916	102,929	74,531
Subscription | Revenue Recognized Over Time
Disaggregation Of Revenue [Line Items]
Total revenue	37,383	27,916	102,929	74,531
Services and other
Disaggregation Of Revenue [Line Items]
Total revenue	11,671	9,796	31,760	29,350
Services and other | Revenue Recognized Over Time
Disaggregation Of Revenue [Line Items]
Total revenue	$ 11,671	$ 9,796	$ 31,760	$ 29,350

Revenue Recognition - Summary o

Revenue Recognition - Summary of Activity Impacting Contract Balances (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Revenue From Contract With Customer [Abstract]
Contract Acquisition Costs, Balances			$ 28,043
Additional deferred contract acquisition costs			9,700
Amortization of deferred contract acquisition costs	$ (2,600)	$ (2,200)	(7,346)	$ (5,600)
Contract Acquisition Costs, Balances	$ 30,397		$ 30,397

Revenue Recognition - Summary_2

Revenue Recognition - Summary of Contract Balances With Deferred Revenue Current and NonCurrent (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2019USD ($)
Revenue From Contract With Customer [Abstract]
Deferred revenue current, Balances	$ 95,919
Increase, net	7,398
Deferred revenue current, Balances	103,317
Deferred revenue non-current, Balances	18,382
Increase, net	2,139
Deferred revenue non-current, Balances	$ 20,521

Revenue Recognition - Additiona

Revenue Recognition - Additional Information (Details) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Disaggregation Of Revenue [Line Items]
Revenue recognized that was previously deferred	$ 47,200,000	$ 29,800,000	$ 94,400,000	$ 62,600,000
Contract asset, reclassified to receivable			2,500,000	4,800,000
Impairment losses recognized on contract assets			0	0	$ 0
Remaining performance obligation	181,500,000		181,500,000
Deferred contract or customer acquisition cost	30,397,000		30,397,000		28,043,000
Amortization of contract acquisition costs	2,600,000	$ 2,200,000	7,346,000	$ 5,600,000
Deferred Contract Costs Expected To Be Amortized Within Next 12 Months
Disaggregation Of Revenue [Line Items]
Deferred contract or customer acquisition costs	$ 9,700,000		$ 9,700,000		$ 8,400,000

Revenue Recognition - Additio_2

Revenue Recognition - Additional Information (Details1) $ in Millions	Sep. 30, 2019USD ($)
Disaggregation Of Revenue [Line Items]
Revenue expected to recognize	$ 181.5
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2019-10-01
Disaggregation Of Revenue [Line Items]
Revenue expected to recognize	$ 122.8
Remaining performance obligation, expected timing of Satisfaction, period	12 months

Intangible Assets - Schedule of

Intangible Assets - Schedule of Cost and Amortization of Intangible Assets (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Finite Lived Intangible Assets [Line Items]
Intangible assets, gross	$ 112,310	$ 113,410
Less: Accumulated amortization	(44,443)	(38,550)
Total intangible assets, net	$ 67,867	74,860
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
Other Intangible Assets
Finite Lived Intangible Assets [Line Items]
Weighted Average Useful Life	4 years 10 months 24 days
Intangible assets, gross	$ 3,310	$ 3,310

Intangible Assets - Summary of

Intangible Assets - Summary of Amortization Expense Included in Condensed Consolidated Statements of Operations (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Finite Lived Intangible Assets [Line Items]
Total amortization of acquired intangibles	$ 2,331	$ 2,206	$ 6,993	$ 6,618
Cost of Revenue - Licenses
Finite Lived Intangible Assets [Line Items]
Total amortization of acquired intangibles	1,008	1,008	3,024	3,024
Cost of Revenue - Subscription
Finite Lived Intangible Assets [Line Items]
Total amortization of acquired intangibles	96	96	288	288
Research and Development
Finite Lived Intangible Assets [Line Items]
Total amortization of acquired intangibles	159	34	477	102
Sales and Marketing
Finite Lived Intangible Assets [Line Items]
Total amortization of acquired intangibles	$ 1,068	$ 1,068	$ 3,204	$ 3,204

Intangible Assets - Additional

Intangible Assets - Additional Information (Details) - USD ($)	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Goodwill And Intangible Assets Disclosure [Abstract]
Impairment of intangible assets	$ 0	$ 0

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Details) - USD ($)	Jan. 01, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Commitments and Contingencies Disclosure [Line Items]
Operating lease, residual value guarantee description			Our lease agreements do not contain any material residual value guarantees or material restrictive covenants and as of September 30, 2019, the Company is not subleasing to any third parties.
Weighted-average discount rate - operating leases			4.12%
Operating lease, weighted average remaining lease term			9 years
Operating lease liabilities			$ 41,295,000
Operating lease liabilities, current			3,406,000
Long-term operating lease liabilities			37,889,000		$ 9,788,000
Right-of-use assets			30,321,000
Operating leases, rent expense		$ 1,000,000		$ 2,900,000
Financing leases			$ 0
ASC 842
Commitments and Contingencies Disclosure [Line Items]
Operating lease liabilities	$ 3,500,000
Minimum
Commitments and Contingencies Disclosure [Line Items]
Remaining lease terms			1 year
Maximum
Commitments and Contingencies Disclosure [Line Items]
Remaining lease terms			10 years

Commitments and Contingencies_2

Commitments and Contingencies - Summary of Operating Lease Costs (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2019
Lease cost
Operating lease cost	$ 790	$ 3,577
Short-term lease cost	884	1,746
Total lease cost	$ 1,674	$ 5,323

Commitments and Contingencies_3

Commitments and Contingencies - Summary of Supplemental Cash Flow Information Related to Operating Leases (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2019
Leases [Abstract]
Operating cash flows from operating leases	$ 1.2	$ 3.4
Right-of-use assets obtained in exchange for lease liabilities
Operating leases		$ 30.4

Commitments and Contingencies_4

Commitments and Contingencies - Summary of Undiscounted Annual Future Minimum Lease Payments (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Leases [Abstract]
2019 (except the nine months ended September 30)	$ 1,191
2020	4,975
2021	5,511
2022	5,478
2023	4,978
Thereafter	27,030
Total minimum lease payments	49,163
Less: interest	(7,868)
Total present value of operating lease liabilities	41,295
Less: operating lease liabilities - current	(3,406)
Long-term operating lease liabilities	$ 37,889	$ 9,788

Line of Credit and Long-Term _2

Line of Credit and Long-Term Debt - Additional Information (Details) - USD ($)	Mar. 11, 2019	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Line Of Credit Facility [Line Items]
Credit agreement mature date		Mar. 31, 2024
Debt instrument, description of variable rate basis	one-month Adjusted LIBO Rate
Amortization of debt issuance costs		$ 100,000	$ 200,000
Prepayment premium amount			300,000
Loss on modification and partial extinguishment of debt			$ 1,536,000
New Credit Agreement
Line Of Credit Facility [Line Items]
Total debt issuance costs		$ 800,000
Federal Funds Effective Rate
Line Of Credit Facility [Line Items]
Debt instrument, interest rate plus	0.50%
London Interbank Offered Rate (LIBOR)
Line Of Credit Facility [Line Items]
Debt instrument, interest rate plus	1.00%
Maximum
Line Of Credit Facility [Line Items]
Senior secured net leverage ratio	3.50%	6.00%
Applicable interest margin rate based on senior secured net leverage ratio	0.75%
Payment of unused commitment fee under credit agreement based on senior secured net leverage ratio	0.30%
Maximum | London Interbank Offered Rate (LIBOR)
Line Of Credit Facility [Line Items]
Applicable interest margin rate based on senior secured net leverage ratio	1.75%
Minimum
Line Of Credit Facility [Line Items]
Applicable interest margin rate based on senior secured net leverage ratio	0.25%
Payment of unused commitment fee under credit agreement based on senior secured net leverage ratio	0.20%
Minimum | London Interbank Offered Rate (LIBOR)
Line Of Credit Facility [Line Items]
Applicable interest margin rate based on senior secured net leverage ratio	1.25%
Letter of Credit
Line Of Credit Facility [Line Items]
Initial commitments for credit loans under credit agreement	$ 150,000,000	$ 75,000,000
Letter of credit sublimit		15,000,000
Revolving Credit Facility
Line Of Credit Facility [Line Items]
Line of credit outstanding balance		$ 0		$ 0

Convertible Senior Notes and _3

Convertible Senior Notes and Capped Call Transactions - Additional Information (Details) $ / shares in Units, shares in Millions	1 Months Ended	9 Months Ended
	Sep. 30, 2019USD ($)$ / sharesshares	Sep. 30, 2019USD ($)Day$ / sharesshares
Debt Instrument [Line Items]
Proceeds from offering after deducting the Initial Purchaser's discounts and commissions and other fees and expenses		$ 400,000,000
Payments for purchase of capped calls		$ 37,080,000
Debt Instrument, conversion price per share | $ / shares	$ 28.42	$ 28.42
Capped Call Transactions
Debt Instrument [Line Items]
Payments for purchase of capped calls	$ 37,100,000
Debt Instrument, conversion price per share | $ / shares	$ 28.42	$ 28.42
Estimated fair values of debt instrument | shares	14.1	14.1
Cap price per share | $ / shares	$ 41.34
Convertible Senior Notes due 2024
Debt Instrument [Line Items]
Debt instrument principal amount	$ 400,000,000	$ 400,000,000
Debt instrument interest rate	0.125%	0.125%
Debt instrument initial purchasers option to purchase additional principal amount	$ 50,000,000	$ 50,000,000
Proceeds from offering after deducting the Initial Purchaser's discounts and commissions and other fees and expenses	391,200,000
Payments for purchase of capped calls	37,100,000
Debt instrument maturity date		Sep. 15, 2024
Number of trading days for convertible debt | Day		20
Number of consecutive trading days for convertible debt | Day		30
Percentage of stock price trigger for convertible debt		130.00%
Number of business days for convertible debt | Day		5
Measurement period for convertible debt | Day		5
Percentage of stock price trigger in measurement period		98.00%
Debt instrument, redemption price, percentage		100.00%
Carrying amount of equity components in debt conversion		$ 88,800,000
Debt instrument remaining life		60 months
Estimated fair values of debt instrument	380,900,000	$ 380,900,000
Convertible Senior Notes due 2024 | Liability Component
Debt Instrument [Line Items]
Debt issuance costs	$ 6,800,000	$ 6,800,000
Effective interest rate percentage	5.25%	5.25%
Convertible Senior Notes due 2024 | Equity Component
Debt Instrument [Line Items]
Debt issuance costs	$ 2,000,000	$ 2,000,000
Convertible Senior Notes due 2024 | Common Stock
Debt Instrument [Line Items]
Debt Conversion, converted instrument, shares issued		35.1849
Debt Instrument, conversion price per share | $ / shares	$ 28.42	$ 28.42
Convertible Senior Notes due 2024 | Additional Paid-in Capital | Capped Call Hedge
Debt Instrument [Line Items]
Deferred tax assets from original issuance discount from capped call for tax purposes	$ 8,900,000	$ 8,900,000
Deferred tax liabilities from original issuance discount from capped call for GAAP purposes	21,300,000	21,300,000
Deferred tax assets on transaction costs	$ 500,000	$ 500,000

Convertible Senior Notes and _4

Convertible Senior Notes and Capped Call Transactions - Summary of Net Carrying Amount of Liability and Equity Components of Notes (Details)	Sep. 30, 2019USD ($)
Debt Instrument [Line Items]
Net carrying amount	$ 304,777,000
Convertible Senior Notes due 2024
Debt Instrument [Line Items]
Debt instrument principal amount	400,000,000
Unamortized discount	(88,480,000)
Unamortized issuance costs	(6,743,000)
Net carrying amount	304,777,000
Equity component, net of issuance costs	$ 86,764,000

Convertible Senior Notes and _5

Convertible Senior Notes and Capped Call Transactions - Summary of Interest Expense Recognized Related to Notes for Periods Presented (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2019	Sep. 30, 2018
Interest Expense Debt [Line Items]
Amortization of debt issuance costs		$ 100	$ 200
Convertible Senior Notes due 2024
Interest Expense Debt [Line Items]
Contractual interest expense	$ 8	8
Amortization of debt discount	261	261
Amortization of debt issuance costs	22	22
Total	$ 291	$ 291

Stock Option Plans and Stock-_3

Stock Option Plans and Stock-Based Compensation - Additional Information (Details) - USD ($)	1 Months Ended	3 Months Ended			9 Months Ended		12 Months Ended
	Nov. 30, 2017	Sep. 30, 2019	Mar. 31, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2015
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense, vested stock options forfeited		$ 200,000			$ 200,000
Weighted average grant date fair value per share					$ 11.48	$ 9.92
Stock-based compensation expense		4,489,000		$ 4,883,000	$ 14,098,000	$ 14,138,000
Total fair value of shares vested		800,000		200,000	3,700,000	700,000
Total unrecognized compensation expense related to non-vested stock options granted		13,600,000			$ 13,600,000
Unrecognized compensation expense, weighted-average period of recognition					2 years 7 months 6 days
Unrecognized compensation expense related to non-vested stock option due to resignation of former chief revenue officer		900,000			$ 900,000
Employee Stock Purchase Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares of common stock reserve for issuance	1,800,000
Stock-based compensation expense		$ 438,000		543,000	$ 1,703,000	543,000
Minimum percentage of employee compensation for employee payroll deduction	1.00%
Maximum percentage of employee compensation for employee payroll deduction	15.00%
Employee Stock Purchase Plan offering period	6 months
Maximum stock value of shares purchased by employees in fair market value, determined at grant date	$ 25,000
Percentage of closing price of shares used to purchase shares	85.00%
Shares of common stock issued and distributed		200,000			200,000
Increase in common stock reserved	900,000
Share-based compensation award, expiration date	Oct. 30, 2020
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		90,000			90,000
2015 Stock Option and Grant Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares available for issuance		592,000			592,000
2017 Long Term Incentive Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares of common stock reserve for issuance		13,300,000			13,300,000
Vesting period					4 years
Shares available for issuance		8,900,000			8,900,000
Shares of common stock options granted					4,400,000
Incentive Unit Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense		$ 0		2,160,000	$ 351,000	$ 6,429,000
Number of Shares, Vested			700,000
Weighted average grant date fair value, Vested			$ 0.05
Number of Shares, Granted					0	0
Incentive Stock Options and Nonqualified Stock Options
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares of common stock reserve for issuance							5,000,000
Expiration period							10 years
Incentive Stock Options and Nonqualified 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
Stock-based compensation expense		2,819,000		1,457,000	$ 8,176,000	$ 3,956,000
Restricted Stock Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of Shares, Vested					140,000
Weighted average grant date fair value, Vested					$ 20
Number of Shares, Granted					1,197,000
Restricted Stock Units | Chief Revenue Officer
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vested RSUs forfeited		100,000
Unrecognized compensation expense related to non-vested RSUs forfeited		1,000,000			$ 1,000,000
Restricted Stock Units | Employee and Non-employees
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total unrecognized compensation expense related to non-vested stock options granted		37,200,000			$ 37,200,000
Unrecognized compensation expense, weighted-average period of recognition					2 years 10 months 24 days
Stock Options
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense		$ 1,232,000		$ 723,000	$ 3,868,000	$ 3,210,000

Stock Option Plans and Stock-_4

Stock Option Plans and Stock-Based Compensation - Summary of Fair Value of Stock Options Estimated by Using Weighted Average Assumptions (Details)	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Employee Stock Purchase Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected dividend rate	0.00%	0.00%
Expected volatility		40.00%
Expected volatility, Minimum	39.80%
Expected volatility, Maximum	46.00%
Risk-free interest rate, Minimum	2.29%
Risk-free interest rate, Maximum	2.44%
Expected term (in years)		6 months
Risk-free interest rate		2.00%
Minimum | Employee Stock Purchase Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected term (in years)	5 months 1 day
Maximum | Employee Stock Purchase Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected term (in years)	6 months
Stock Options
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected dividend rate	0.00%	0.00%
Expected volatility, Minimum	38.80%	40.00%
Expected volatility, Maximum	39.80%	41.10%
Risk-free interest rate, Minimum	1.39%	2.63%
Risk-free interest rate, Maximum	2.59%	2.91%
Expected term (in years)	6 years 3 months	6 years 3 months

Stock Option Plans and Stock-_5

Stock Option Plans and Stock-Based Compensation - Summary of Stock Options Activity (Details) - Stock Options $ / shares in Units, shares in Thousands, $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2019USD ($)$ / sharesshares	Dec. 31, 2018USD ($)$ / sharesshares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of Options, Beginning balances | shares	2,817
Number of Options, Granted | shares	993
Number of Options, Exercised | shares	(618)
Number of Options, Forfeited | shares	(200)
Number of Options, Ending balances | shares	2,992	2,817
Number of Options, Options vested and expected to vest | shares	2,992
Number of Options, Options vested and exercisable | shares	1,149
Weighted Average Exercise Price (per share), Beginning balances | $ / shares	$ 6.64
Weighted Average Exercise Price (per share), Granted | $ / shares	27.05
Weighted Average Exercise Price (per share), Exercised | $ / shares	4.13
Weighted Average Exercise Price (per share), Forfeited | $ / shares	14.57
Weighted Average Exercise Price (per share), Ending balances | $ / shares	13.40	$ 6.64
Weighted Average Exercise Price (per share), Options vested and expected to vest | $ / shares	13.40
Weighted Average Exercise Price (Per share), Options vested and exercisable | $ / shares	$ 5.74
Weighted Average Remaining Contractual Term (years)	8 years	8 years
Weighted Average Remaining Contractual Term (years), Options vested and expected to vest	8 years
Weighted Average Remaining Contractual Term (years), Options vested and exercisable	6 years 10 months 24 days
Aggregate Intrinsic Value, Balances | $	$ 23,981	$ 47,589
Aggregate Intrinsic Value, Options vested and expected to vest | $	23,981
Aggregate Intrinsic Value, Options vested and exercisable | $	$ 14,986

Stock Option Plans and Stock-_6

Stock Option Plans and Stock-Based Compensation - Summary of RSU Activity for Employees and Non-employees (Detail) - Restricted Stock Units - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Number of Shares
Number of Shares, Beginning Balance	1,148
Number of Shares, Granted	1,197
Number of Shares, Vested	(140)
Number of Shares, Forfeited	(183)
Non-vested number of shares, Ending Balance	2,022	1,148
Units expected to vest at September 30, 2019	2,022
Weighted-Average Remaining Contractual Term (In years)
Weighted-Average Remaining Contractual Term, Balances	1 year 8 months 12 days	1 year 9 months 18 days
Weighted-Average Remaining Contractual Term, Units expected to vest	1 year 8 months 12 days
Aggregate intrinsic value
Aggregate intrinsic value, Balances	$ 37,783	$ 26,967
Aggregate intrinsic value, Units expected to vest	$ 37,783
Weighted average grant date Fair Value
Weighted average grant date fair value, Beginning balance	$ 15.40
Weighted average grant date fair value, Granted	28.19
Weighted average grant date fair value, Vested	20
Weighted average grant date fair value, Forfeited	20.32
Weighted average grant date fair value, Ending balance	22.21	$ 15.40
Weighted average grant date fair value, Units expected to vest	$ 22.21

Stock Option Plans and Stock-_7

Stock Option Plans and Stock-Based Compensation - Summary of Stock-Based Compensation Expense By Underlying Equity Instrument (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total stock-based compensation expense	$ 4,489,000	$ 4,883,000	$ 14,098,000	$ 14,138,000
Employee Stock Purchase Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total stock-based compensation expense	438,000	543,000	1,703,000	543,000
Incentive Unit Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total stock-based compensation expense	0	2,160,000	351,000	6,429,000
Stock Options
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total stock-based compensation expense	1,232,000	723,000	3,868,000	3,210,000
Restricted Stock
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total stock-based compensation expense	$ 2,819,000	$ 1,457,000	$ 8,176,000	$ 3,956,000

Stock Option Plans and Stock-_8

Stock Option Plans and Stock-Based Compensation - Summary of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total stock-based compensation expense	$ 4,489	$ 4,883	$ 14,098	$ 14,138
Subscription
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total stock-based compensation expense	286	284	830	658
Services and other
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total stock-based compensation expense	337	394	1,066	1,116
Research and Development
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total stock-based compensation expense	820	852	2,653	2,145
General and Administrative
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total stock-based compensation expense	1,710	1,953	4,725	5,988
Sales and Marketing
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total stock-based compensation expense	$ 1,336	$ 1,400	$ 4,824	$ 4,231

Income Taxes - Additional Infor

Income Taxes - Additional Information (Details) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2017
Income Tax Examination [Line Items]
U.S. federal corporate tax rate			21.00%
GILTI tax liability			$ 0	$ 0
Effective income tax rate	(249.30%)	56.90%	13.90%	73.50%
Maximum
Income Tax Examination [Line Items]
U.S. federal corporate tax rate					35.00%

Net Income (Loss) Per Share A_3

Net Income (Loss) Per Share Attributable to Common Stockholders - Schedule of Calculation of Basic and Diluted Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Numerator
Net Income (loss)	$ 3,668	$ 1,808	$ (13,919)	$ (1,473)
Earnings allocated to unvested incentive units		(15)
Net income (loss) attributable to common stockholders	$ 3,668	$ 1,793	$ (13,919)	$ (1,473)
Denominator
Basic	89,143	86,825	88,739	86,268
Diluted	90,808	90,355	88,739	86,268
Net income (loss) attributable to common stockholders per share
Basic	$ 0.04	$ 0.02	$ (0.16)	$ (0.02)
Diluted	$ 0.04	$ 0.02	$ (0.16)	$ (0.02)

Net Income (Loss) Per Share A_4

Net Income (Loss) Per Share Attributable to Common Stockholders - Weighted Average Outstanding Shares of Common Stock Equivalents Excluded from the Computation of the Diluted Net Income (Loss) per Share (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
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	1,876	37	4,984	5,684
Stock Options to Purchase Common Stock
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	907	33	3,062	3,264
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				1,139
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	969	4	1,855	1,224
ESPP
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			67	57

Net Income (Loss) Per Share A_5

Net Income (Loss) Per Share Attributable to Common Stockholders - Additional Information (Details) shares in Millions	9 Months Ended
	Sep. 30, 2019$ / sharesshares
Earnings Per Share [Abstract]
Conversion spread | shares	14.1
Debt Instrument, conversion price per share | $ / shares	$ 28.42

Subsequent Events - Additional

Subsequent Events - Additional Information (Details) - Subsequent Event $ in Millions	Oct. 15, 2019USD ($)
Orkus and Overwatch.ID
Subsequent Event [Line Items]
Acquisition date	Oct. 15, 2019
Orkus
Subsequent Event [Line Items]
Aggregate consideration paid	$ 16.5
Overwatch.ID
Subsequent Event [Line Items]
Aggregate consideration paid	$ 21