Tabula Rasa HealthCare (TRHC) 10-Q 8 Aug 18 2018 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2018	Jul. 31, 2018
Document and Entity Information
Entity Registrant Name	Tabula Rasa HealthCare, Inc.
Entity Central Index Key	1,651,561
Document Type	10-Q
Document Period End Date	Jun. 30, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		20,242,892
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q2

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Current assets:
Cash	$ 7,273	$ 10,430
Accounts receivable, net	21,282	17,087
Inventories	3,388	2,795
Rebates receivable	496	342
Prepaid expenses	2,744	2,253
Other current assets	3,791	2,544
Total current assets	38,974	35,451
Property and equipment, net	10,866	9,243
Software development costs, net	5,921	5,001
Goodwill	78,153	74,613
Intangible assets, net	63,159	62,736
Deferred income tax assets	2,078
Other assets	551	788
Total assets	199,702	187,832
Current liabilities:
Current portion of long-term debt	1,083	921
Acquisition-related contingent consideration	82,207	1,640
Accounts payable	13,718	16,218
Accrued expenses and other liabilities	11,403	8,988
Total current liabilities	108,411	27,767
Line of credit	8,000
Long-term debt	560	784
Long-term acquisition-related contingent consideration		31,789
Deferred income tax liability		989
Other long-term liabilities	2,551	2,615
Total liabilities	119,522	63,944
Commitments and contingencies (Note 17)
Stockholders' equity:
Preferred stock, $0.0001 par value; 10,000,000 shares authorized; no shares issued and outstanding at June 30, 2018 and December 31, 2017
Common stock, $0.0001 par value; 100,000,000 shares authorized, 20,381,517 and 19,371,005 shares issued and 20,225,577 and 19,297,539 shares outstanding at June 30, 2018 and December 31, 2017, respectively	2	2
Additional paid-in capital	150,352	144,074
Treasury stock, at cost; 155,940 and 73,466 at June 30, 2018 and December 31, 2017, respectively	(3,825)	(959)
Accumulated deficit	(66,349)	(19,229)
Total stockholders' equity	80,180	123,888
Total liabilities and stockholders' equity	$ 199,702	$ 187,832

CONSOLIDATED BALANCE SHEETS (pa

CONSOLIDATED BALANCE SHEETS (parenthetical) - $ / shares	Jun. 30, 2018	Dec. 31, 2017
CONSOLIDATED BALANCE SHEETS
Preferred stock, par value (in dollars per share)	$ 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
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	20,381,517	19,371,005
Common stock, shares outstanding	20,225,577	19,297,539
Treasury stock (in shares)	155,940	73,466

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Revenue:
Revenue	$ 48,598	$ 29,437	$ 92,542	$ 57,414
Cost of revenue, exclusive of depreciation and amortization shown below:
Cost of revenue, exclusive of depreciation and amortization	32,410	20,968	64,074	40,623
Operating expenses:
Research and development	2,922	1,291	5,135	2,510
Sales and marketing	2,314	1,314	4,316	2,544
General and administrative	6,528	5,490	12,405	11,999
Change in fair value of acquisition-related contingent consideration expense	35,283	16	48,804	37
Depreciation and amortization	3,966	1,799	8,014	3,564
Total operating expenses	51,013	9,910	78,674	20,654
Loss from operations	(34,825)	(1,441)	(50,206)	(3,863)
Other expense:
Interest expense	120	77	183	153
Total other expense	120	77	183	153
Loss before income taxes	(34,945)	(1,518)	(50,389)	(4,016)
Income tax (benefit) expense	(5,919)	165	(3,269)	260
Net loss	(29,026)	(1,683)	(47,120)	(4,276)
Net loss attributable to common stockholders, basic	(29,026)	(1,683)	(47,120)	(4,276)
Net loss attributable to common stockholders, diluted	$ (29,026)	$ (1,683)	$ (47,120)	$ (4,276)
Net loss per share attributable to common stock holders, basic and diluted (in dollars per share)	$ (1.53)	$ (0.10)	$ (2.50)	$ (0.26)
Weighted average common shares outstanding basic and diluted (in shares)	18,956,445	16,506,585	18,873,297	16,373,413
Product
Revenue:
Revenue	$ 27,378	$ 23,274	$ 54,558	$ 45,215
Cost of revenue, exclusive of depreciation and amortization shown below:
Cost of revenue, exclusive of depreciation and amortization	20,075	17,841	40,907	34,733
Service
Revenue:
Revenue	21,220	6,163	37,984	12,199
Cost of revenue, exclusive of depreciation and amortization shown below:
Cost of revenue, exclusive of depreciation and amortization	$ 12,335	$ 3,127	$ 23,167	$ 5,890

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - 6 months ended Jun. 30, 2018 - USD ($) $ in Thousands	Common Stock	Treasury Stock	Additional Paid-in Capital	Accumulated Deficit	Total
Balance at beginning of period at Dec. 31, 2017	$ 2	$ (959)	$ 144,074	$ (19,229)	$ 123,888
Balance at beginning of period (in shares) at Dec. 31, 2017	19,371,005	(73,466)
Increase (Decrease) in Stockholders' Equity
Common stock offering issuance costs			(2)		(2)
Issuance of restricted stock (in shares)	418,619
Shares surrendered by stockholder		(2,474)
Shares repurchased		$ (2,866)			(2,866)
Shares repurchased (in shares)		(80,000)
Net exercise of stock options			(18)		(18)
Net exercise of stock options (in shares)	252,588
Exercise of stock options			2,173		2,173
Exercise of stock options (in shares)	339,305
Stock based compensation expense			4,125		4,125
Net loss				(47,120)	(47,120)
Balance at end of period at Jun. 30, 2018	$ 2	$ (3,825)	$ 150,352	$ (66,349)	$ 80,180
Balance at end of period (in shares) at Jun. 30, 2018	20,381,517	(155,940)

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Cash flows from operating activities:
Net loss	$ (47,120)	$ (4,276)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	8,014	3,564
Amortization of deferred financing costs and debt discount	41	46
Deferred taxes	(3,067)	238
Stock-based compensation	4,125	6,837
Change in fair value of acquisition-related contingent consideration	48,804	37
Other noncash items	29	12
Changes in operating assets and liabilities, net of effect from acquisition:
Accounts receivable, net	(4,195)	(2,089)
Inventories	(593)	(291)
Rebates receivable	(154)	(13)
Prepaid expenses and other current assets	(1,998)	224
Other assets	196
Accounts payable	(2,057)	91
Accrued expenses and other liabilities	1,800	1,970
Other long-term liabilities	(64)	466
Net cash provided by operating activities	3,761	6,816
Cash flows from investing activities:
Purchases of property and equipment	(2,564)	(1,950)
Software development costs	(2,155)	(1,514)
Purchases of intangible assets	(30)
Acquisition of business, net of cash acquired	(6,957)
Net cash used in investing activities	(11,706)	(3,464)
Cash flows from financing activities:
Payments for repurchase of common stock	(2,866)	(959)
Proceeds from exercise of stock options	2,173	179
Payments for employee taxes for shares withheld		(2,123)
Payments for debt financing costs	(2)	(18)
Borrowings on line of credit	8,000
Payments of equity offering costs	(357)	(132)
Payments of contingent consideration	(1,646)	(1,498)
Repayments of long-term debt	(514)	(335)
Net cash provided by (used in) financing activities	4,788	(4,886)
Net decrease in cash	(3,157)	(1,534)
Cash, beginning of period	10,430	4,345
Cash, end of period	7,273	2,811
Supplemental disclosure of cash flow information:
Acquisition of equipment under capital leases	442	50
Additions to property, equipment, and software development purchases included in accounts payable and accrued expenses	452	553
Cash paid for interest	121	$ 106
Employee payroll taxes on net exercise of stock options included in accrued expenses	$ 291

Nature of Business

Nature of Business	6 Months Ended
	Jun. 30, 2018
Nature of Business
Nature of Business	1. Nature of Business Tabula Rasa HealthCare, Inc. (the “Company”) provides patient-specific, data-driven technology and solutions that enable healthcare organizations to optimize medication regimens to improve patient outcomes, reduce hospitalizations, lower healthcare costs and manage risk. The Company delivers its solutions through a comprehensive suite of technology-enabled products and services for medication risk management (“MRM”) and health plan management. The Company serves healthcare organizations that focus on populations with complex healthcare needs and extensive medication requirements. The Company's suite of cloud-based software solutions provides prescribers, pharmacists and healthcare organizations with sophisticated and innovative tools to better manage the medication-related needs of patients.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2018
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies The Company's significant accounting policies are disclosed in the Company’s audited consolidated financial statements for the year ended December 31, 2017, which are included in the Company’s annual report filed on Form 10-K on March 14, 2018 . Since the date of those audited consolidated financial statements, there have been no changes to the Company's significant accounting policies, including the status of recent accounting pronouncements, other than those detailed below. (a) Basis of Presentation The accompanying unaudited consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (the “SEC”) regarding interim financial reporting. The unaudited interim consolidated financial statements have been prepared on the same basis as the annual audited consolidated financial statements and, in the opinion of management, reflect all adjustments ( consisting of normal recurring accruals and adjustments) , necessary for the fair statement of the Company's interim consolidated financial position for the periods indicated. The interim results for the three and six months ended June 30, 2018 are not necessarily indicative of results to be expected for the year ending December 31, 2018, any other interim periods, or any future year or period. As such, the information included in this quarterly report on Form 10-Q should be read in conjunction with the consolidated financial statements and accompanying notes included in the Company’s annual report as filed on Form 10-K. (b) Liquidity The Company's unaudited consolidated financial statements have been prepared on the basis of continuity of operations, realization of assets and the satisfaction of liabilities in the ordinary course of business. Management believes that the Company's cash on hand of $7,273 as of June 30, 2018, cash flows from operations and borrowing availability under the Amended and Restated Loan and Security Agreement (as amended, the “Amended and Restated 2015 Revolving Line”) are sufficient to fund the Company's planned operations through at least September 30, 2019. See Note 11 for additional information. (c) 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, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates or assumptions. (d) Revenue Recognition The Company evaluates its contractual arrangements to determine the performance obligations and transaction prices. Revenue is allocated to each performance obligation and recognized when the related performance obligations are satisfied. Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as a fulfillment cost and are in included in cost of revenue. See Note 3 for additional information about the adoption of Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers . See Note 4 for additional detail about the Company’s products and service lines. (e) Cost of Product Revenue Cost of product revenue includes all costs directly related to the fulfillment and distribution of prescription drugs as part of the Company’s MRM offerings. Costs consist primarily of the purchase price of the prescription drugs the Company dispenses, expenses to package, dispense and distribute prescription drugs, and expenses associated with the Company's prescription fulfillment centers, including employment costs and stock-based compensation. Such costs also include direct overhead expenses, as well as allocated miscellaneous overhead costs. The Company allocates miscellaneous overhead costs among functions based on employee headcount. (f) Cost of Service Revenue Cost of service revenue includes all costs directly related to servicing the Company’s MRM service contracts, which primarily consist of labor costs, outside contractors, technology services, hosting fees and overhead costs. In addition, service costs include all labor costs, including stock-based compensation expense, directly related to the health plan management and pharmacy cost management services and expenses for claims processing, technology services and overhead costs. (g) R ecent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-09 and has subsequently issued a number of amendments to ASU 2014-09. ASU 2014-09, as amended, represents a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of promised goods or services to clients in an amount that reflects the consideration to which the Company expects to be entitled to receive in exchange for those goods or services. ASU 2014-09 sets forth a new five-step revenue recognition model which replaces the prior revenue recognition guidance in its entirety and is intended to eliminate numerous industry-specific pieces of revenue recognition guidance that have historically existed. For public companies, ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2017 and interim reporting periods within that reporting period. Companies may use either a full retrospective or a modified retrospective approach to adopt ASU 2014-09. The Company adopted ASU-2014-09 as of January 1, 2018 using the full retrospective method. As a result, the Company revised the consolidated balance sheets as of December 31, 2017, and the consolidated statements of operations and cash flows for the three and six months ended June 30, 2017, and related notes to the unaudited consolidated financial statements for the effects of adoption. See Note 3 for additional information. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) ("ASU 2016-02"). The new standard establishes a right-of-use ("ROU") model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. ASU 2016-02 is effective for annual periods beginning after December 15, 2018, including interim periods within those annual periods, with early adoption permitted. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company is currently analyzing its leasing arrangements and evaluating the practical expedients and accounting policy elections to determine the potential impact of the adoption of this standard. The Company is also in the process of assessing any potential impacts on its internal controls, business processes, and accounting policies related to both the implementation and ongoing compliance of the new standard. The Company anticipates that this standard will have a material impact on the Company’s consolidated financial statements, as all long-term leases will be capitalized on the consolidated balance sheet. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments ("ASU 2016-15"). ASU 2016-15 provides guidance to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. ASU 2016-15 is effective for financial statements issued for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The Company has adopted ASU 2016-15 effective January 1, 2018. The adoption of this standard did not have a material impact on the Company's consolidated financial statements. In January 2017, the FASB issued Accounting Standards Update No. 2017-01, Business Combinations (“ASU 2017-01”). ASU 2017-01 provides guidance for evaluating whether a set of transferred assets and activities (the “set”) should be accounted for as an acquisition of a business or group of assets. The guidance provides a screen to determine when a set does not qualify to be a business. When substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in an identifiable asset or a group of similar assets, the set is not a business. Also to be considered a business, the set would have to include an input and a substantive process that together significantly contribute to the ability to create outputs. ASU 2017-01 is effective for financial statements issued for fiscal years beginning after December 15, 2017. The Company has adopted ASU 2017-01 effective January 1, 2018. The adoption of this standard did not have a material impact on the Company's consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment ("ASU 2017-04"). ASU 2017-04 simplifies the accounting for goodwill impairment by eliminating the requirement to calculate the implied fair value of goodwill to measure an impairment charge. Instead, entities will be required to record an impairment charge based on the excess of a reporting unit’s carrying value over its fair value. ASU 2017-04 is effective for financial statements issued for fiscal years beginning after December 15, 2019. The Company believes the adoption of ASU 2017-04 will not have a material effect on the Company's consolidated financial statements. In May 2017, the FASB issued ASU No. 2017-09, Compensation – Stock Compensation (Topic 718): Scope of Modification Accounting (“ASU 2017-09”). ASU 2017-09 amends the scope of modification accounting for share-based payment arrangements. The guidance requires modification accounting only if the fair value, vesting conditions, or the classification of the award (as equity or liability) changes as a result of a change in terms or conditions. ASU 2017-09 is effective for financial statements issued for fiscal years beginning after December 15, 2017. The Company has adopted ASU 2017-09 effective January 1, 2018. The adoption of this standard did not have a material impact on the Company's consolidated financial statements. In June 2018, the FASB issued ASU No. 2018-07, Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounts (“ASU 2018-07”). ASU 2018-07 simplifies the accounting for share-based payments granted to nonemployees for goods and services and aligns such payments to nonemployees with the current accounting requirements for share-based payments to employees. ASU 2018-07 is effective for financial statements issued for fiscal years beginning after December 15, 2019. The Company is currently evaluating the potential impact of the adoption of this standard on the Company’s consolidated financial statements.

Adoption of New Accounting Poli

Adoption of New Accounting Policy	6 Months Ended
	Jun. 30, 2018
Adoption of New Accounting Policy
Adoption of New Accounting Policy	3. Adoption of New Accounting Policy As described in Note 2, t he Company adopted ASU 2014-09 on January 1, 2018 using the full retrospective method and applying the practical expedient in paragraph 606-10-65-1(f)(2) of the FASB Accounting Standards Codification (“ASC”), under which the Company used the transaction price at the date the contract was completed rather than estimating variable consideration amounts in the comparative reporting periods for those completed contracts with variable consideration . The following is a summary of the changes in accounting policies and presentation resulting from the adoption of ASU 2014-09 on the Company’s consolidated unaudited financial statements. MRM services Per member per month fees bundled with prescription fulfillment services fees in the Company’s MRM contracts were previously classified as product revenues. Under ASU 2014-09, the per member per month fees are classified as service revenue and based on relative stand-alone selling prices. The Company continues to recognize the per member per month fees as the services are provided. Health plan management services Certain contracts for the Company’s health plan management services include fees based on the gains recognized by customers as a result of services provided. Revenue for these contracts was historically recognized when billed because the price was not fixed or determinable. Under ASU 2014-09, revenue from these contracts is recognized monthly as the health plan management services are provided. The revenue includes the contractual per member per month rate and an estimated gain earned during each reporting period. Pharmacy cost management services Data and statistics fees from drug manufacturers were previously recognized as revenue when received due to the unpredictable nature of the payment amounts and because fees were not fixed and determinable until received. Under ASU 2014-09, these fees are recognized when the data is submitted to the drug manufacturers. The fees recognized are estimated using historical data, and adjusted as necessary to reflect new information. The estimated fees are recorded as data analytics related contract assets and are included in other current assets on the consolidated balance sheets. As of June 30, 2018 and December 31, 2017, the balance of the data analytics contract asset was $1,873 and $1,842, respectively. Impact on financial statements The following tables summarize the impact of the adoption of ASU 2014-09 on the previously reported consolidated balance sheets as of December 31, 2017 and consolidated statements of operations for the three and six months ended June 30, 2017. Financial statement line items that were not materially affected by the adoption of ASU 2014-09 are excluded. The adoption of ASU 2014-09 had no impact on cash provided by or used in operating, investing or financing activities in the consolidated statements of cash flows for the six months ended June 30, 2017. For the year ended December 31, 2017 As Previously Reported Adjustment for ASU on Revenue Recognition As Adjusted Assets Current assets: Other current assets $ 702 $ 1,842 $ 2,544 Total current assets 33,609 1,842 35,451 Total assets $ 185,990 $ 1,842 $ 187,832 Liabilities and stockholders’ equity Deferred income tax liability $ 545 $ 444 $ 989 Total liabilities 63,500 444 63,944 Stockholders' equity: Accumulated deficit (20,627) 1,398 (19,229) Total stockholders’ equity 122,490 1,398 123,888 Total liabilities and stockholders’ equity $ 185,990 $ 1,842 $ 187,832 Three Months Ended Six Months Ended June 30, June 30, 2017 2017 As Previously Reported Adjustment for ASU on Revenue Recognition As Adjusted As Previously Reported Adjustment for ASU on Revenue Recognition As Adjusted Revenue: Product revenue $ 24,074 $ (800) $ 23,274 $ 46,770 $ (1,555) $ 45,215 Service revenue 5,582 581 6,163 10,575 1,624 12,199 Total revenue 29,656 (219) 29,437 57,345 69 57,414 Cost of revenue, exclusive of depreciation and amortization shown below: Product cost 18,463 (622) 17,841 35,868 (1,135) 34,733 Service cost 2,505 622 3,127 4,755 1,135 5,890 Total cost of revenue, exclusive of depreciation and amortization 20,968 — 20,968 40,623 — 40,623 Loss from operations (1,222) (219) (1,441) (3,932) 69 (3,863) Net loss $ (1,464) $ (219) $ (1,683) $ (4,345) $ 69 $ (4,276) Net loss attributable to common stockholders, basic and diluted $ (1,464) $ (219) $ (1,683) $ (4,345) $ 69 $ (4,276) Net loss per share attributable to common stockholders, basic and diluted $ (0.09) $ (0.01) $ (0.10) $ (0.27) $ 0.01 $ (0.26)

Revenue

Revenue	6 Months Ended
	Jun. 30, 2018
Revenue
Revenue	4. Revenue The Company provides a comprehensive suite of technology-enabled solutions tailored toward the specific needs of the healthcare organizations and health plans it serves. These solutions can be integrated or provided on a standalone basis. Contracts generally have a term of one to five years and in some cases automatically renew at the end of the initial term. In most cases, clients may terminate their contracts with a notice period ranging from 0 to 180 days without cause, thereby limiting the term in which the Company has enforceable rights and obligations. Revenue is recognized in an amount that reflects the consideration that is expected in exchange for the goods or services. The Company uses the practical expedient not to account for significant financing components because the period between recognition and collection does not exceed one year in any contract. Product Revenue MRM prescription fulfillment services. The Company has a stand ready obligation to provide prescription fulfillment pharmacy services, including dispensing and delivery of an unknown mix and quantity of medications, directly to healthcare organizations. Revenue from MRM prescription fulfillment services is recognized when medications are shipped and control has generally passed to the customer and are generally billed monthly. At the time of shipment, the Company has performed substantially all of its performance obligations under its client contracts and does not experience a significant level of returns or reshipments. Service Revenue MRM services . The Company provides an array of MRM services. These services include enrollment, medication regimen reviews, and software to identify high risk members as well as provide medication risk alerts and intervention tracking that enable pharmacists to optimize medication therapy. R evenue related to these performance obligations primarily consist of per member per month fees, monthly subscription fees, and per comprehensive medication review fees. MRM p er member per month fees and monthly subscription fees are recognized based on their relative stand-alone selling prices as the services are provided. Additionally, certain of the Company’s MRM service contracts include a performance guarantee based on the number of comprehensive medication reviews to be completed and guarantees by the Company for specific service level performance. For these contracts, revenue is recognized as comprehensive medication reviews are completed at their relative stand-alone selling price which is estimated based on the Company’s assessment of the total transaction price under each contract. The stand-alone selling price and amount of variable consideration recognized are adjusted as necessary at the end of each reporting period. If client performance guarantees are not being realized, the Company records, as a reduction to revenue, an estimate of the amount that will be due at the end of the respective client’s contractual period. Fees for these services are generally billed monthly. Health plan management services. The Company has a stand ready obligation to provide risk adjustment services and third party administration services, which the Company collectively refers to as health plan management services. The performance obligations are a series of distinct services that are substantially the same and have the same pattern of transfer. Revenue related to these performance obligations primarily consist of setup fees, per member per month fees, and in certain contracts a gain-share component. Revenue from these contracts is recognized monthly as the health plan management services are provided. The revenue includes the contractual per member per month rate and an estimated gain earned during each reporting period. Set-up fees related to health plan management contracts represent an upfront fee from the client to compensate the Company for its efforts to prepare the client and configure its system for the data collection process. The set-up activities do not have value apart from the broader health plan management services provided to the client and do not represent a separate performance obligation and as such, setup fees are recognized over the contract term as services are provided. Fees for these services are generally billed monthly . Pharmacy cost management services. The Company has a stand ready obligation to provide monthly pharmacy cost management services which includes adjudication, pricing validation, utilization analysis and pharmacy transaction review services. The performance obligation is a series of distinct services that are substantially the same and have the same pattern of transfer. Revenue related to this performance obligation primarily consists of subscription fees based on a monthly flat fee or as a percentage of monthly transactions incurred and revenue generated from drug manufacturers for the sale of drug utilization data. Revenue from these services is recognized monthly as the pharmacy cost management services are provided at the contractual subscription fee rate and when the data is submitted to the drug manufacturers based on the fair value of the data. The drug utilization fees recognized are estimated using historical data, and adjusted as necessary to reflect new information. Drug utilization data is generally submitted monthly and collected 180 days after submission. Disaggregation of revenue In the following table, revenue is disaggregated by major service line. The Company manages its operations and allocates it resources as a single reportable segment. All of the Company’s revenue is recognized in the United States and all of the Company’s assets are located in the United States. The Company's MRM and health plan management clients consist primarily of healthcare organizations, commercial health plans, and pharmacies. The Company’s pharmacy cost management clients consist primarily of post-acute care facilities. Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Major service lines MRM prescription fulfillment services $ 27,378 $ 23,274 $ 54,558 $ 45,215 MRM services 16,659 3,229 30,354 6,388 Health plan management services 3,132 1,285 4,837 2,738 Pharmacy cost management services 1,366 1,604 2,661 2,975 Other services 63 45 132 98 $ 48,598 $ 29,437 $ 92,542 $ 57,414 Contract balances Assets and liabilities related to the Company’s contracts are reported on a contract-by-contract basis at the end of each reporting period. The following table provides information about the Company’s contract assets and contract liabilities from contracts with customers as of June 30, 2018 and December 31, 2017. June 30, December 31, 2018 2017 (unaudited) (as adjusted)* Contract assets $ 3,427 $ 1,842 Contract liabilities 2,212 1,350 *See Note 3. Contract assets as of June 30, 2018 consisted of $1,873 related to data analytics contract assets and $1,554 related to consideration for performance obligations completed related to MRM service contracts but which the Company does not have an unconditional right to the consideration. Contract assets as of December 31, 2017 consisted of $1,842 related to the data analytics contract asset. Contract assets are included in other current assets on the consolidated balance sheets. The contract assets are transferred to receivables when the rights to the additional consideration becomes unconditional. The contract liabilities primarily relate to advance billings for prescription medications not yet fulfilled or dispensed, advance payments received for service obligations on MRM performance guaranteed contracts and unamortized setup fees on health plan management contracts. Contract liabilities are included in accrued expenses and other current liabilities on the consolidated balance sheets. The Company anticipates that it will satisfy most of its performance obligations associated with its contract liabilities within the prospective fiscal year. Significant changes in the contract assets and the contract liabilities balances during the period are as follows. June 30, 2018 (unaudited) Contract asset: Contract asset, beginning of period $ 1,842 Decreases due to cash received (1,949) Increases, excluding amounts transferred to receivables during the period 3,534 Contract asset, end of period $ 3,427 Contract liability Contract liability, beginning of period $ 1,350 Revenue recognized that was included in the contract liability balance at the beginning of the period (1,257) Increases due to cash received, excluding amounts recognized as revenue during the period 2,119 Contract liability, end of period $ 2,212

Net Loss per Share

Net Loss per Share	6 Months Ended
	Jun. 30, 2018
Net Loss per Share
Net Loss per Share	5. Net Loss per Share Basic net loss per share is computed by dividing net loss attributable to common stockholders by the weighted average number of shares of common stock of the Company outstanding during the period. The Company computed net loss per share of common stock using the treasury stock method for the three and six months ended June 30, 2018 and 2017. Diluted net loss per share is computed by dividing net loss attributable to common stockholders by the weighted average number of shares of common stock during the period plus the impact of dilutive securities, to the extent that they are not anti-dilutive. The following table presents the calculation of basic and diluted net loss per share for the Company’s common stock : Three Months Ended Six Months Ended June 30, June 30, 2018 2017* 2018 2017* Numerator: Net loss attributable to common stockholders, basic and diluted $ (29,026) $ (1,683) $ (47,120) $ (4,276) Denominator: Weighted average shares of common stock outstanding, basic 18,956,445 16,506,585 18,873,297 16,373,413 Net loss per share attributable to common stockholders, basic and diluted $ (1.53) $ (0.10) $ (2.50) $ (0.26) *As adjusted. See Note 3. The following potential common shares, presented based on amounts outstanding or shares contingently issuable for the three and six months ended June 30, 2018 and 2017, were excluded from the calculation of diluted net loss per share attributable to common stockholders for the periods indicated because including them would have had an anti-dilutive effect: June 30, 2018 2017 Stock options to purchase common stock 2,602,641 2,957,302 Unvested restricted stock 1,061,879 730,822 Contingently issuable shares 154,150 — 3,818,670 3,688,124

Acquisitions

Acquisitions	6 Months Ended
	Jun. 30, 2018
Acquisitions
Acquisitions	6. Acquisitions Peak PACE Solutions On May 1, 2018, the Company entered into an asset purchase agreement with Peak PACE Solutions, LLC (“Peak PACE”) and certain other parties thereto pursuant to which the Company acquired substantially all of the assets, and assumed certain enumerated liabilities, of Peak PACE, an organization that helps PACE organizations manage the business functions that drive the major sources of reimbursement revenue and utilization costs. The acquisition consideration was comprised of cash consideration consisting of (i) $7,719 payable upon the closing of the acquisition, subject to certain customary post-closing adjustments, upon the terms and subject to the conditions contained in the asset purchase agreement, and (ii) contingent purchase price with a preliminary estimated acquisition-date fair value of $1,620 to be paid in cash based on the achievement of certain performance goals for the twelve-month period ended December 31, 2018. In no event is the Company obligated to pay more than $10,000 in cash purchase price for the entire transaction and a portion of the cash consideration paid at closing is being held in escrow to secure potential claims by the Company for indemnification under the agreement. In connection with the acquisition of Peak PACE, the Company incurred direct acquisition and integration costs of $262 during the three and six months ended June 30, 2018, which were recorded in general and administrative expenses in the consolidated statements of operations. The Company, with the assistance of a third-party appraiser, utilized a Monte Carlo simulation to determine the estimated acquisition-date fair value of the acquisition-related contingent consideration of $1,620. The fair value measurement was based on significant inputs not observable in the market and thus represents a Level 3 measurement within the fair value hierarchy. See Note 16 for additional information. The following table summarizes the purchase price consideration based on the estimated acquisition-date fair value of the acquisition consideration: Cash consideration at closing, net of post-closing adjustments $ 7,563 Estimated fair value of contingent consideration 1,620 Total fair value of acquisition consideration $ 9,183 The following table summarizes the preliminary allocation of the purchase price based on the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition: Cash $ 606 Property and equipment 84 Trade name 290 Client relationships 5,220 Non-competition agreement 50 Goodwill 3,569 Total assets acquired $ 9,819 Accrued expenses and other liabilities (626) Debt assumed (10) Total purchase price, including contingent consideration of $1,620 $ 9,183 The purchase price was allocated to the tangible assets and identifiable intangible assets acquired and liabilities assumed based on their acquisition-date estimated fair values. The identifiable intangible assets principally included a trade name, client relationships, and non-competition agreements, each of which are subject to amortization on a straight-line basis and are being amortized over a weighted average of 1.5, 10, and 5 years, respectively. The weighted average amortization period for acquired intangible assets as of the date of acquisition is 9.51 years. The Company, with the assistance of a third-party appraiser, assessed the fair value of the assets of Peak PACE. The fair value of the trade name was estimated using the relief from royalty method. The Company, with the assistance of a third party appraiser, derived the hypothetical royalty income from the projected revenues of Peak PACE. The fair value of client relationships was estimated using a multi period excess earnings method. To calculate fair value, the Company, with the assistance of a third party appraiser, used cash flows discounted at a rate considered appropriate given the inherent risks associated with each client grouping. The fair value of the non-competition agreements were estimated using the differential approach which involves valuing the business under two different scenarios. The first valuation assumes the non-compete agreements are in place and the second valuation assumes that they are not. The difference in the value of the business under each approach is attributed to the non-compete agreements. The useful lives of the intangible assets were estimated based on the expected future economic benefit of the assets and is being amortized over the estimated useful life in proportion to the economic benefits consumed using the straight-line method. The amortization of intangible assets is deductible for income tax purposes. The Company believes the goodwill related to the acquisition was a result of providing the Company a complementary customer base and service offering that will enable the Company to leverage its services with existing and new customers. The goodwill is deductible for income tax purposes. Revenue from Peak PACE is primarily comprised of per member per month fees for third party administration services. Revenue for these services and the related costs are recognized each month as performance obligations are satisfied and costs are incurred, and are included in service revenue and cost of revenue – service cost, respectively, in the consolidated statements of operations. For the three and six months ended June 30, 2018, service revenue of $1,349 and net loss of $224 from Peak PACE were included in the Company’s consolidated statements of operations. The Company continues to evaluate the fair value of certain assets acquired and liabilities assumed related to the acquisition. Additional information, which existed as of the acquisition date but was at that time unknown to the Company, may become known during the remainder of the measurement period. Changes to amounts recorded as a result of the final determination may result in a corresponding adjustment to these assets and liabilities, including goodwill. The determination of the estimated fair values of all assets acquired is expected to be completed within one year from the date of acquisition. Sinfon í aRx On September 6, 2017, the Company, TRCRD, Inc., a Delaware corporation and wholly-owned subsidiary of the Company (“Merger Sub I”), and TRSHC Holdings, LLC, a Delaware limited liability company and a wholly-owned subsidiary of the Company (“Merger Sub II,” and together with Merger Sub I, the “Merger Subs”), entered into, and consummated the transactions contemplated by, an Agreement and Plan of Merger (the “Merger Agreement”), by and among the Company, the Merger Subs, Sinfonía HealthCare Corporation, a Delaware corporation (“Sinfonía”), Michael Deitch, Fletcher McCusker and Mr. Deitch in his capacity as the Stockholders’ Representative. Under the terms of the Merger Agreement, the Company acquired the SinfoníaRx business (“SRx”) as a result of Merger Sub I merging with and into Sinfonía, with Sinfonía surviving as a wholly-owned subsidiary of the Company (the “First Merger”), and, immediately following the First Merger, Sinfonía merging with and into Merger Sub II, with Merger Sub II surviving as a wholly-owned subsidiary of the Company. The SRx business provides medication therapy management technology and services for Medicare, Medicaid, commercial health plans and pharmacies. These service offerings fall under the Company’s MRM services. The consideration for the acquisition of SRx was comprised of (i) cash consideration of $35,000 paid upon closing, subject to certain customary post-closing adjustments, in each case upon the terms and subject to the conditions contained in the Merger Agreement; (ii) common stock consideration issued upon closing valued at $11,541; and (iii) contingent purchase price consideration with an acquisition-date estimated fair value of $38,092 to be paid 50% in cash and 50% in the Company’s common stock, subject to adjustments as set forth in the Merger Agreement, based on the achievement of certain performance goals for each of the twelve-month periods ended December 31, 2017 and December 31, 2018. In addition, the Company is not obligated to pay more than $35,000 in cash and the Company’s common stock for the first contingent payment, or more than $130,000 for the aggregate overall closing consideration (not taking into account certain adjustments set forth in the Merger Agreement) and contingent payments. No contingent purchase price consideration was earned or paid with respect to the twelve-month period ended December 31, 2017 as a result of the applicable performance goals not being achieved. A portion of the cash merger consideration is being held in escrow to secure potential claims by the Company for indemnification under the Merger Agreement and in respect of adjustments to the acquisition consideration. The Company issued 520,821 shares of the Company’s common stock valued at $19.20 per share in satisfaction of the stock consideration issued at closing. The value for the stock consideration issued was calculated based on the arithmetic average of the daily volume-weighted average trading price per share of the Company’s common stock for the 20 trading days ended on and including the trading day prior to the date of the Merger Agreement, using trading prices reported on the NASDAQ Global Market. The stock consideration issued at the closing of the acquisition had an acquisition-date fair value of $11,541. In connection with the acquisition of SRx, the Company incurred direct acquisition and integration costs of $1,015 during the 2017 fiscal year, which were recorded in general and administrative expenses in the consolidated statements of operations. During the three and six months ended June 30, 2018, the Company incurred an additional $30 and $61, respectively, of acquisition and integration costs related to the SRx acquisition, which were recorded in general and administrative expenses in the consolidated statements of operations. The Company, with the assistance of a third-party appraiser, utilized a Monte Carlo simulation to determine the estimated acquisition-date fair value of the acquisition-related contingent consideration of $38,092. The fair value measurement was based on significant inputs not observable in the market and thus represents a Level 3 measurement within the fair value hierarchy. See Note 16 for additional information. The following table summarizes the purchase price consideration based on the estimated acquisition-date fair value of the acquisition consideration: Cash consideration at closing, net of post-closing adjustments $ 34,492 Stock consideration at closing 11,541 Estimated fair value of contingent consideration 38,092 Total fair value of acquisition consideration $ 84,125 The following table summarizes the allocation of the purchase price based on the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition: Cash $ 218 Accounts receivable 8,309 Prepaid expenses and other current assets 1,056 Property and equipment 1,419 Other assets 127 Trade name 4,776 Developed technology 13,291 Client relationships 20,265 Non-competition agreement 4,752 Goodwill 52,898 Total assets acquired $ 107,111 Accrued expenses and other liabilities (3,819) Trade accounts payable (8,868) Debt assumed (675) Deferred income tax liability, net (9,624) Total purchase price, including contingent consideration of $38,092 $ 84,125 The purchase price was allocated to the tangible assets and identifiable intangible assets acquired and liabilities assumed based on their acquisition-date estimated fair values. The identifiable intangible assets principally included a trade name, developed technology, client relationships, and non-competition agreements, each of which are subject to amortization on a straight-line basis and are being amortized over a weighted average of 10, 7, 7.46 and 5 years, respectively. The weighted average amortization period for acquired intangible assets as of the date of acquisition is 7.33 years. The Company, with the assistance of a third-party appraiser, assessed the fair value of the assets of SRx. The fair values of the trade name and technology were estimated using the relief from royalty method. The Company, with the assistance of a third party appraiser, derived the hypothetical royalty income from the projected revenues of SRx. The fair value of client relationships was estimated using a multi period excess earnings method. To calculate fair value, the Company, with the assistance of a third party appraiser, used cash flows discounted at a rate considered appropriate given the inherent risks associated with each client grouping. The fair value of the non-competition agreements were estimated using the differential approach which involves valuing the business under two different scenarios. The first valuation assumes the non-compete agreements are in place and the second valuation assumes that they are not. The difference in the value of the business under each approach is attributed to the non-compete agreements. The useful lives of the intangible assets were estimated based on the expected future economic benefit of the assets and is being amortized over the estimated useful life in proportion to the economic benefits consumed using the straight-line method. The amortization of intangible assets is not deductible for income tax purposes. The Company believes the goodwill related to the acquisition was a result of providing the Company exposure to a larger customer base that will enable the Company to leverage its technology in the broader market, as well as offering cross-selling market exposure opportunities. The goodwill is not deductible for income tax purposes. Revenue from SRx is primarily comprised of per member per month fees, monthly subscription fees, and per comprehensive medication review fees. Revenue for these services and the related costs are recognized each month as performance obligations are satisfied and costs are incurred, and are included in service revenue and cost of revenue – service cost, respectively, in the consolidated statements of operations. For the three and six months ended June 30, 2018, service revenue of $12,672 and $21,934, respectively, and a net income of $1,498 and $435, respectively, from SRx were included in the Company’s consolidated statements of operations. The Company continues to evaluate the fair value of certain assets and liabilities related to the acquisition, including the fair value of deferred tax assets acquired and income tax liabilities assumed. Additional information, which existed as of the acquisition date but was at that time unknown to the Company, may become known during the remainder of the measurement period. Changes to amounts recorded as a result of the final determination may result in a corresponding adjustment to these assets and liabilities, including goodwill. The determination of the estimated fair values of all assets acquired is expected to be completed within one year from the date of acquisition. Pro forma The unaudited pro forma results presented below include the results of the SRx and Peak PACE acquisitions as if they had been consummated as of January 1, 2017. The unaudited pro forma results include the amortization associated with acquired intangible assets, interest expense on the debt incurred to fund these acquisitions, insurance expense for additional required business insurance coverage, stock compensation expense related to equity awards granted to certain employees of SRx and Peak PACE at the closing of the acquisition, and the estimated tax effect of adjustments to income before income taxes. Material nonrecurring charges, including direct acquisition costs, directly attributable to the transactions are excluded. In addition, the unaudited pro forma results do not include any expected benefits of the acquisitions. Accordingly, the unaudited pro forma results are not necessarily indicative of either future results of operations or results that might have been achieved had the acquisitions been consummated as of January 1, 2017. Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Revenue $ 49,291 $ 39,975 $ 95,139 $ 75,695 Net loss (28,906) (1,111) (46,891) (4,511) Net loss per share attributable to common stockholders, basic and diluted (1.52) (0.07) (2.48) (0.27)

Property and Equipment

Property and Equipment	6 Months Ended
	Jun. 30, 2018
Property and Equipment
Property and Equipment	7. Property and Equipment Depreciation expense on property and equipment for the three months ended June 30, 2018 and 2017 was $881 and $439, respectively. Depreciation expense on property and equipment for the six months ended June 30, 2018 and 2017 was $1,715 and $854, respectively.

Software Development Costs

Software Development Costs	6 Months Ended
	Jun. 30, 2018
Software Development Costs
Software Development Costs	8. Software Development Costs The Company capitalizes certain costs incurred in connection with obtaining or developing internal-use software, including external direct costs of material and services and payroll costs for employees directly involved with the software development. As of June 30, 2018 and December 31, 2017, capitalized software costs consisted of the following: June 30, 2018 December 31, 2017 Software development costs $ 11,924 $ 9,873 Less: accumulated amortization (6,003) (4,872) Software development costs, net $ 5,921 $ 5,001 Capitalized software costs not yet subject to amortization $ 1,708 $ 1,021 Amortization expense for the three months ended June 30, 2018 and 2017 was $445 and $411, respectively. Amortization expense for the six months ended June 30, 2018 and 2017 was $1,131 and $811, respectively.

Goodwill and Intangible Assets

Goodwill and Intangible Assets	6 Months Ended
	Jun. 30, 2018
Goodwill and Intangible Assets
Goodwill and Intangible Assets	9. Goodwill and Intangible Assets The Company’s goodwill and related changes during the six months ended June 30, 2018 are as follows: Balance at December 31, 2017 $ 74,613 Goodwill from 2018 acquisition 3,569 Adjustments to Goodwill (29) Balance at June 30, 2018 $ 78,153 During the six months ended June 30, 2018, the Company recorded a decrease of $29 in the acquisition date fair value of accrued expenses and other liabilities with respect to the acquisition of SRx, with a corresponding reduction in goodwill, as a result of additional information that became known during the period. Goodwill is not amortized, but instead tested for impairment annually. The Company conducted its annual impairment test as of October 1, 2017 and determined that there were no indicators of impairment during 2017. The next annual impairment test will be conducted as of October 1, 2018, unless the Company identifies a triggering event in the interim. Management has not identified any triggering events during the six months ended June 30, 2018. Intangible assets consisted of the following as of June 30, 2018 and December 31, 2017: Weighted Average Amortization Period Accumulated Intangible (in years) Gross Value Amortization Assets, net June 30, 2018 Trade names 8.26 $ 7,006 $ (1,785) $ 5,221 Client relationships 8.68 40,169 (7,977) 32,192 Non-competition agreements 4.99 5,454 (1,274) 4,180 Developed technology 7.38 26,791 (5,278) 21,513 Domain name 10.00 59 (6) 53 Total intangible assets $ 79,479 $ (16,320) $ 63,159 Weighted Average Amortization Period Accumulated Intangible (in years) Gross Value Amortization Assets, net December 31, 2017 Trade names 8.56 $ 6,716 $ (1,320) $ 5,396 Client relationships 8.48 34,949 (5,652) 29,297 Non-competition agreements 4.96 5,404 (739) 4,665 Developed technology 7.38 26,791 (3,438) 23,353 Domain name 10.00 29 (4) 25 Total intangible assets $ 73,889 $ (11,153) $ 62,736 Amortization expense for intangible assets for the three months ended June 30, 2018 and 2017 was $2,639 and $947, respectively. Amortization expense for intangible assets for the six months ended June 30, 2018 and 2017 was $5,167 and $1,897, respectively. The estimated amortization expense for each of the next five years and thereafter is as follows: Years Ending December 31, 2018 (July 1 - December 31) $ 5,396 2019 10,332 2020 9,831 2021 9,818 2022 9,510 Thereafter 18,272 Total estimated amortization expense $ 63,159

Accrued Expenses and Other Liab

Accrued Expenses and Other Liabilities	6 Months Ended
	Jun. 30, 2018
Accrued Expenses and Other Liabilities
Accrued Expenses and Other Liabilities	10. Accrued Expenses and Other Liabilities At June 30, 2018 and December 31, 2017, accrued expenses and other liabilities consisted of the following: June 30, 2018 December 31, 2017 Employee related expenses $ 5,373 $ 4,572 Contract liability 2,212 1,350 Accrued payables due to customers 1,200 1,200 Client funds obligations 867 — Contract labor 153 463 Interest 34 13 Deferred rent 194 163 Professional fees 225 288 Income taxes payable — 20 Other expenses 1,145 919 Total accrued expenses and other liabilities $ 11,403 $ 8,988

Lines of Credit and Long-Term D

Lines of Credit and Long-Term Debt	6 Months Ended
	Jun. 30, 2018
Lines of Credit and Long-Term Debt
Lines of Credit and Long-Term Debt	11. Lines of Credit and Long-Term Debt (a) Lines of Credit On September 6, 2017, in connection with the acquisition of SRx, the Company entered into the Amended and Restated 2015 Revolving Line whereby the Company’s revolving line of credit, entered into with Bridge Bank (now Western Alliance Bank) in 2015 and subsequently amended in July 2016, was amended to extend the maturity date to September 6, 2020, and increase the Company's borrowing availability to up to $40,000 with a $1,000 sublimit for cash management services, letters of credit and foreign exchange transactions. The Company may also request an increase in the Amended and Restated 2015 Revolving Line of up to $10,000 upon the successful syndication of such additional amounts. In May 2018, the Amended and Restated 2015 Revolving Line was further amended in connection with the acquisition of Peak PACE. Interest on the Amended and Restated 2015 Revolving Line was also amended to be calculated at a variable rate based upon Western Alliance Bank's prime rate plus an applicable margin which will range from (0.25%) to 0.25% depending on the Company’s leverage ratio, with Western Alliance Bank's prime rate having a floor of 3.5%. Financial covenants under the Amended and Restated 2015 Revolving Line require that the Company (i) maintain an unrestricted cash and unused availability balance under the Amended and Restated 2015 Revolving Line of at least $3,000 at all times (the liquidity covenant), (ii) maintain a leverage ratio of less than 2.50:1.00, on a trailing twelve-month basis starting with the twelve-month period ended December 31, 2017, measured quarterly, and (iii) maintain a minimum quarterly EBITDA starting with the quarter ended December 31, 2017 and each quarter thereafter, of at least 75% of the plan approved by the Company’s Board of Directors (the “Board”). In addition, the Company may not contract to make capital expenditures, excluding capitalized software development costs and tenant leasehold improvements, greater than $5,000 in any fiscal year without the consent of Western Alliance Bank. As of June 30, 2018, the Company was in compliance with all covenants related to the Amended and Restated 2015 Revolving Line, and management expects that the Company will be able to maintain compliance with its covenants. In September 2015, the Company arranged for Bridge Bank to issue a $500 letter of credit on its behalf in connection with the Company’s lease agreement for the office space in Moorestown, NJ. The letter of credit was issued under the Amended and Restated 2015 Revolving Line. During the fourth quarter of 2017, the letter of credit was amended and reduced to $400. The letter of credit renews annually and expires in September 2027 and reduces amounts available on the line of credit. As of June 30, 2018, there was $8,000 outstanding under the Amended and Restated 2015 Revolving Line. As of December 31, 2017 there were no aggregate borrowings outstanding under the Amended and Restated 2015 Revolving Line. Amounts available for borrowings under the Amended and Restated 2015 Revolving Line were $31,600 as of June 30, 2018. As of June 30, 2018, the interest rate on the Amended and Restated 2015 Revolving Line was 5.07% and interest expense was $67 for the three and six months ended June 30, 2018. As of June 30, 2017, the interest rate on the Amended and Restated 2015 Revolving Line was 4.82%. No interest expense was incurred for the three and six months ended June 30, 2017 related to the Amended and Restated 2015 Revolving Line as there were no aggregate borrowings outstanding during the three and six months ended June 30, 2017. In connection with the Amended and Restated 2015 Revolving Line ( and all predecessor agreements prior to the amendment or the amendment and restatement thereof), the Company recorded deferred financing costs of $363. The Company is amortizing the deferred financing costs to interest expense using the effective-interest method over the term of the Amended and Restated 2015 Revolving Line and amortized $20 and $13 to interest expense for the three months ended June 30, 2018 and 2017, respectively, and $41 and $24 to interest expense for the six months ended June 30, 2018 and 2017, respectively. (b) Capital Lease Obligations The following table represents the total capital lease obligations of the Company at June 30, 2018 and December 31, 2017: June 30, 2018 December 31, 2017 Capital leases $ 1,643 $ 1,705 Less current portion, net (1,083) (921) Total capital leases, less current portion, net $ 560 $ 784 The Company has entered into leases for certain equipment and software, which are recorded as capital lease obligations. These leases have annual interest rates ranging from 4% to 14%. Interest expense related to the capital leases was $27 and $52 for the three months ended June 30, 2018 and 2017, respectively. Interest expense related to the capital leases was $70 and $109 for the six months ended June 30, 2018 and 2017, respectively. Amortization of assets held under capital leases is included in depreciation and amortization expense. The net book value of equipment and software acquired under capital leases was $1,636 and $1,918 as of June 30, 2018 and December 31, 2017, respectively, and is reflected in property and equipment on the consolidated balance sheets. (c) Long-Term Debt Maturities As of June 30, 2018, the Company's long-term debt consisted of capital lease obligations and is payable as follows: Total long-term debt Remainder of 2018 $ 591 2019 992 2020 152 2021 4 1,739 Less amount representing interest (96) Present value of payments 1,643 Less current portion (1,083) Total long-term debt, net of current portion $ 560 (d) Other Financing In May 2016, the Company signed a prime vendor agreement with AmerisourceBergen Drug Corporation, which was effective March 2016 and requires a monthly minimum purchase obligation of approximately $1,750. The Company fully expects to meet this requirement. This agreement was subsequently amended and restated effective May 1, 2016 with a three-year term expiring April 2019. As of June 30, 2018 and December 31, 2017, the Company had $4,347 and $4,055, respectively, due to AmerisourceBergen Drug Corporation as a result of prescription drug purchases. Pursuant to the terms of a security agreement entered into in connection with the prime vendor agreement, AmerisourceBergen also holds a subordinated security interest in all of the Company’s assets.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2018
Income Taxes
Income Taxes	12. Income Taxes For the six months ended June 30, 2018, the Company recorded an income tax benefit of $3,269 , which resulted in an effective tax rate of 6.5%. The tax benefit consists of $3,741 of windfall tax benefits generated from the vesting of restricted stock, disqualifying dispositions and exercising of nonqualified stock options during the period. This benefit was offset by tax expense of $472 based on the estimated effective tax rate for the full year. For the six months ended June 30, 2017, the Company recognized tax expense of $260 related to indefinite-lived deferred tax liabilities for goodwill amortization, which resulted in an effective tax rate of (6.5)% for the period. The Company had recorded a full valuation allowance against its deferred tax assets as of June 30, 2017. Accordingly, the year to date tax benefit was limited to the amount of the benefit that could be recognized for the full year, and the Company used the actual effective tax rate for the year to date as its best estimate to determine the Company’s tax expense for the six months ended June 30, 2017. During the third quarter of 2017, the Company determined that deferred tax liabilities related to the SRx acquisition provided sufficient sources of recoverability to realize the Company’s deferred tax assets associated with those jurisdictions that file consolidated returns. As a result, the Company released $6,590 of its deferred tax asset valuation allowance during the third quarter of 2017.

Other Long-term Liabilities

Other Long-term Liabilities	6 Months Ended
	Jun. 30, 2018
Other Long-term Liabilities
Other Long-term Liabilities	13. Other Long-term Liabilities Other long term liabilities as of June 30, 2018 and December 31, 2017 consisted of $2,551 and $2,615, respectively, which represents the long-term portion of deferred rent primarily related to the Company's operating leases for office space in Moorestown, NJ and office space in South Carolina dedicated to software development.

Stockholders' Equity

Stockholders' Equity	6 Months Ended
	Jun. 30, 2018
Stockholders' Equity
Stockholders' Equity	14. Stockholders' Equity (a) Capitalization and Initial Public Offering On October 4, 2016, the Company closed its initial public offering (“IPO”) in which the Company issued and sold 4,300,000 shares of common stock, plus the exercise of the underwriters’ option to purchase an additional 645,000 shares of common stock, at an issuance price of $12.00 per share. The Company received net proceeds of $55,186 after deducting underwriting discounts and commissions of $4,154 but before deducting other offering expenses. In addition, upon the closing of the IPO, all of the Company’s then outstanding Class A Non-Voting common stock and Class B Voting common stock, totaling 5,583,405 shares, were automatically redesignated into shares of common stock, and all of the Company’s then outstanding convertible preferred stock converted into an aggregate of 5,089,436 shares of common stock. Upon completion of the IPO on October 4, 2016, the Company filed an amended and restated certificate of incorporation to, among other things, state that the aggregate number of shares of stock that the Company is authorized to issue is 100,000,000 shares of common stock, par value $0.0001 per share, and 10,000,000 shares of undesignated preferred stock, par value $0.0001 per share. On December 8, 2017, the Company completed a follow-on underwritten public offering (the “Offering”) in which the Company issued 1,350,000 shares of common stock, at an issuance price of $27.50 per share. The Company received net proceeds of $34,897 after deducting underwriting discounts and commissions of $2,228 but before deducting other offering expenses. Proceeds from the Offering were used to repay outstanding indebtedness under the Company’s Amended and Restated 2015 Revolving Line during 2017. (b) Common Stock Repurchase On April 25, 2017 the Board authorized the Company to repurchase up to $5,000 of its common stock at prevailing market prices, from time to time, through open market, block and privately-negotiated transactions, at such times and in such amounts as management deems appropriate. The Company funds repurchases of its common stock through a combination of cash on hand, cash generated by operations or borrowings under the Amended and Restated 2015 Revolving Line. During the three months ended June 30, 2018, the Company did not repurchase any shares of its common stock. During the six months ended June 30, 2018, the Company repurchased 80,000 shares at an average price of $35.82 per share for a total of $2,866. As of June 30, 2018, $1,175 of common stock remained available for repurchase.

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Jun. 30, 2018
Stock-Based Compensation
Stock-Based Compensation	15. Stock-Based Compensation In September 2016, the Company adopted the 2016 Equity Compensation Plan (the “2016 Plan”) and merged the 2014 Equity Compensation Plan (the “2014 Plan”) into the 2016 Plan on September 28, 2016. No additional grants were made thereafter under the 2014 Plan. Outstanding grants under the 2014 Plan will continue in effect according to their terms as in effect before the merger with the 2016 Plan, and the shares with respect to outstanding grants under the 2014 Equity Plan will be issued or transferred under the 2016 Plan. The 2016 Plan authorizes the issuance or transfer of up to the sum of the following: (1) 800,000 new shares, plus (2) the number of shares of common stock subject to outstanding grants under the 2014 Equity Plan as of the effective date of the 2016 Plan; provided, however, that the aggregate number of shares of the Company’s common stock that may be issued or transferred under the 2016 Plan pursuant to incentive stock options may not exceed 800,000. During the term of the 2016 Plan, the share reserve will automatically increase on the first trading day in January of each calendar year, beginning in calendar year 2017, by an amount equal to the lesser of 5% of the total number of outstanding shares of common stock on the last trading day in December of the prior calendar year or such other number set by the Board. During 2018, in accordance with the terms of the 2016 Plan, the share reserve increased by 964,876 shares. As of June 30, 2018, 697,813 shares were available for future grants under the 2016 Plan. The option price per share cannot be less than the fair market value of a share on the date the option was granted, and in the case of incentive stock options granted to an employee owning more than 10% of the total combined voting power of all classes of stock of the Company, the option price shall not be less than 110% of the fair market value of Company stock on the date of grant. Stock option grants under the Plan generally expire 10 years from the date of grant, other than incentive stock option grants to 10% shareholders, which expire the earlier of 5 years from the date of grant, 90 days after termination, or one year after the date of death or termination due to disability. Stock options generally vest over a period of four years, with 25% of the options becoming exercisable on the one year anniversary of the commencement date and the remaining shares vesting monthly thereafter for 36 months in equal installments of 2.08% per month. Employee Restricted Common Stock On September 28, 2016, the Board granted 700,386 shares of restricted common stock to certain Company employees, including executive officers, under the 2014 Plan, prior to merging it with the 2016 Plan, pursuant to a special equity award pool previously approved by the Board which was made immediately prior to the effectiveness of the Company's registration statement filed in connection with the Company's IPO. The value of the grants is based on the IPO price of $12.00 per share and the related non-cash compensation expense was recognized ratably over the vesting period from the date of grant through May 31, 2017, when the shares underlying the grant were scheduled to fully vest. For the three and six months ended June 30, 2017, $2,084 and $5,159 of expense was recognized related to these grants, respectively. No expense was recognized for the three and six months ended June 30, 2018. On June 12, 2017, the Company entered into an amendment with each recipient of these grants to amend the vesting date from May 31, 2017 to May 31, 2018. On May 20, 2018, the Company entered into an additional amendment with certain recipients of these grants, which represent 604,575 shares of restricted common stock, to further amend the vesting date such that 50% of the shares will vest on May 31, 2019 and the remaining 50% of the shares will vest on January 31, 2020. As of June 30, 2018, there was no unrecognized compensation expense related to these grants. On August 3, 2017, the Board granted 20,000 shares of restricted common stock to a non-executive employee of the Company, pursuant to the 2016 Plan, which will vest in four substantially equal annual installments over the four years following the grant date. The value of the grant is based on the grant date fair value of the Company’s common stock of $14.56 per share. On January 2, 2018, the Board granted 390,500 shares of restricted common stock to executive and certain non-executive employees of the Company, pursuant to the 2016 Plan, which will vest in four substantially equal annual installments over the four years following the grant date. The value of the grant is based on the grant date fair value of the Company’s common stock of $29.25 per share. On February 26, 2018, the Board granted 4,754 shares of restricted common stock to executive employees of the Company, pursuant to the 2016 Plan, which will vest one year following the grant date. The value of the grant is based on the grant date fair value of the Company’s common stock of $32.64 per share. On May 1, 2018, the Board granted 5,000 shares of restricted common stock to a certain non-executive employee of the Company, pursuant to the 2016 Plan, which will vest in four substantially equal annual installments over the four years following the grant date. The value of the grant is based on the grant date fair value of the Company’s common stock of $42.16 per share. On May 7, 2018, the Board granted 10,000 shares of restricted common stock to certain non-executive employees of the Company, pursuant to the 2016 Plan, which will vest in four substantially equal annual installments over the four years following the grant date. The value of the grant is based on the grant date fair value of the Company’s common stock of $42.92 per share. For the three and six months ended June 30, 2018, $792 and $1,520 of expense was recognized related to these employee grants, respectively. As of June 30, 2018, there was unrecognized compensation expense of $10,958 related to these employee grants. Non-Employee Director Restricted Common Stock On September 28, 2016, the Company granted 22,260 shares of restricted common stock under the 2016 Plan to its non-employee directors, which represents both the initial and annual grants to such directors. The initial grant (“Initial Grant”) vests in three substantially equal annual installments over three years following the grant date and the annual grant of 7,420 shares vested in full on June 16, 2017, which was the date of the Company’s annual shareholder meeting. In addition, on September 28, 2017, 4,944 shares of the Initial Grant vested and were no longer subject to forfeiture. The value of the grants is based on the IPO price of $12.00 per share. On March 8, 2017, the Company granted 5,212 shares of restricted common stock under the 2016 Plan to a newly appointed non-employee director, which represents such director’s initial grant and will vest in three substantially equal annual installments over three years following the grant date. The value of the grant is based on the grant date fair value of the Company’s common stock of $13.68 per share. On June 16, 2017, the Company granted 10,384 shares of restricted common stock to its non-employee directors, which represents the annual grants to such directors, which vested in full on June 15, 2018. The value of the grant is based on the grant date fair value of the Company’s common stock of $13.54 per share. On October 30, 2017, the Company granted 7,788 shares of restricted common stock to a non-employee director, which represents both the initial and annual grants to such director. The initial grant will vest in three substantially equal annual installments over three years following the grant date and the annual grant vested in full on August 3, 2018. The value of the grant is based on the grant date fair value of the Company’s common stock of $26.39 per share. On June 15, 2018, the Company granted 8,365 shares of restricted common stock to its non-employee directors, which represents the annual grants to such directors, which will vest in full on the one year anniversary of the grant date. The value of the grant is based on the grant date fair value of the Company’s common stock of $59.77 per share. For the three months ended June 30, 2018 and 2017, $103 and $53 of expense was recognized related to these non-employee director grants, respectively. For the six months ended June 30, 2018 and 2017, $185 and $109 of expense was recognized related to these non-employee director grants, respectively. As of June 30, 2018, there was unrecognized compensation expense of $686 related to these grants. Stock Options The Company recorded $1,284 and $879 of stock-based compensation expense related to the vesting of employee and non-employee stock options for the three months ended June 30, 2018 and 2017, respectively. The Company recorded $2,420 and $1,569 of stock-based compensation expense related to the vesting of employee and non-employee stock options for the six months ended June 30, 2018 and 2017, respectively. The Company records forfeitures as they occur. The estimated fair value of options granted was calculated using a Black-Scholes option-pricing model. The computation of expected life for employees was determined based on the simplified method. The risk-free rate is based on the U.S. Treasury security with terms equal to the expected time of exercise as of the grant date. The Company's common stock had not been publicly traded until the IPO commenced on September 29, 2016; therefore, expected volatility is based on the historical volatilities of selected public companies whose services are comparable to that of the Company. The table below sets forth the weighted average assumptions for employee grants during the six months ended June 30, 2018 and 2017: Six Months Ended June 30, Valuation assumptions: 2018 2017 Expected volatility 58.40 % 61.00 % Expected term (years) 6.08 6.02 Risk-free interest rate 2.37 % 2.24 % Dividend yield — — The weighted average grant date fair value of employee options granted during the six months ended June 30, 2018 and 2017 was $17.12 and $7.88 per share, respectively. The following table summarizes stock option activity under the 2016 Plan for the six months ended June 30, 2018: Weighted Weighted average average remaining Aggregate Number exercise contractual intrinsic of shares price term value Outstanding at December 31, 2017 2,883,175 $ 9.26 Granted 420,250 Exercised (623,571) Forfeited (77,213) Outstanding at June 30, 2018 2,602,641 $ $ 131,534 Options vested and expected to vest at June 30, 2018 2,602,641 $ $ 131,534 Exercisable at June 30, 2018 1,272,469 $ $ 72,135 The aggregate intrinsic value of stock options is calculated as the difference between the exercise price of the stock options and the Company’s closing stock price or estimated fair value on the last trading day of the fiscal quarter for those stock options that had exercise prices lower than the fair value of the Company's common stock. This amount changes based on the fair market value of the Company’s stock. The total intrinsic value of options exercised during the six months ended June 30, 2018 and 2017 was $27,946 and $11,590, respectively. As of June 30, 2018, there was $13,139 of total unrecognized compensation cost related to nonvested stock options granted under the 2016 Plan, which is expected to be recognized over a weighted average period of 1.50 years. Cash received from option exercises for the six months ended June 30, 2018 and 2017 was $2,173 and $179, respectively. During the six months ended June 30, 2018, 31,678 shares of common stock were delivered by option holders as payment for the exercise price and employee payroll taxes owed for the exercise of 284,266 stock options with a gross exercise value of $1,227. During the six months ended June 30, 2017, 362,403 shares of common stock were delivered by option holders as payment for the exercise price and employee payroll taxes owed for the exercise of 955,812 stock options with a gross exercise value of $3,186. The Company recorded total stock-based compensation expense for the three and six months ended June 30, 2018 and 2017 in the following expense categories of its consolidated statement of operations: Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Cost of revenue - product $ 171 $ 126 $ 421 $ 221 Cost of revenue - service 373 69 643 112 Research and development 323 216 519 320 Sales and marketing 392 165 771 282 General and administrative 921 2,440 1,771 5,902 Total stock-based compensation expense $ 2,180 $ 3,016 $ 4,125 $ 6,837

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2018
Fair Value Measurements
Fair Value Measurements	16. Fair Value Measurements The Company’s financial instruments consist of accounts receivable, contract assets, accounts payable, contract liabilities, accrued expenses, acquisition-related contingent consideration, and long-term debt. The carrying values of accounts receivable, accounts payable and accrued expenses are representative of their fair value due to the relatively short-term nature of those instruments. The carrying value of the Company’s long-term debt approximates fair value based on the terms of the debt. The Company has classified liabilities measured at fair value on a recurring basis at June 30, 2018 and December 31, 2017 as follows: Fair Value Measurement at Reporting Date Using Balance as of Level 1 Level 2 Level 3 June 30, 2018 Liabilities Acquisition-related contingent consideration - short-term $ — $ — $ $ 82,207 Fair Value Measurement at Reporting Date Using Balance as of Level 1 Level 2 Level 3 December 31, 2017 Liabilities Acquisition-related contingent consideration - short-term $ — $ — $ 1,640 $ 1,640 Acquisition-related contingent consideration - long-term — — 31,789 $ — $ — $ $ Acquisition-related contingent consideration is measured at fair value on a recurring basis using unobservable inputs, hence these instruments represent Level 3 measurements within the fair value hierarchy. The acquisition-related contingent consideration liability represents the estimated fair value of the additional cash and equity consideration payable that is contingent upon the achievement of certain financial and performance milestones. During 2018, the Company recorded a $6 adjustment to the fair value of the acquisition-related contingent consideration associated with the acquisition of Medliance LLC (“Medliance”) in 2014 and made the final $1,646 cash payment toward the Medliance acquisition-related contingent consideration. As of June 30, 2018, the Medliance contingent consideration was paid in full and no amounts are outstanding. The SRx acquisition-related contingent consideration, which is liability-classified, was recorded at the estimated fair value at the acquisition date of September 6, 2017. In accordance with ASC 802, Business Combinations, all changes in liability-classified contingent consideration subsequent to the initial acquisition-date measurement are recorded in net income or loss. The contingent consideration payable is based on SRx’s EBITDA, as defined in the Merger Agreement, multiplied by a variable EBITDA multiple, which is based on a formula as set forth in the Merger Agreement. As a result, relatively small changes in SRx’s forecasted results and/or the EBITDA multiple can result in a significant change to the contingent consideration liability, with such changes recorded as adjustments to net income . The Company, with the assistance of a third-party appraiser, utilizes a Monte Carlo simulation to derive estimates of the contingent consideration payments as of the acquisition date and at each subsequent period. During the three and six months ended June 30, 2018, the Company recorded a $34,872 and $48,388 adjustment, respectively, to the fair value of the SRx acquisition-related contingent consideration primarily based on an increase in the projected EBITDA multiple used in the contingent consideration payment calculation as a result of an increase in the Company’s market capitalization and an increase in SRx’s projected EBITDA for the year. The fair value of the SRx acquisition-related contingent consideration was calculated to be $80,177 as of June 30, 2018 and the final amount of the contingent consideration liability will be fixed as of December 31, 2018. The Peak PACE acquisition-related contingent consideration, which is liability-classified, was recorded at the estimated fair value at the acquisition date of May 1, 2018. In accordance with ASC 802, Business Combinations, all changes in liability-classified contingent consideration subsequent to the initial acquisition-date measurement are recorded in net income or loss. The contingent consideration payable is based on Peak PACE’s EBITDA, as defined in the asset purchase agreement, multiplied by an EBITDA multiple . The Company, with the assistance of a third-party appraiser, utilizes a Monte Carlo simulation to derive estimates of the contingent consideration payments as of the acquisition date and at each subsequent period. During the three and six months ended June 30, 2018, the Company recorded a $410 adjustment to the fair value of the Peak PACE acquisition-related contingent consideration primarily based on an increase in the projected EBITDA used in the contingent consideration payment calculation. The fair value of the Peak PACE acquisition-related contingent consideration was calculated to be $2,030 as of June 30, 2018 and the final amount of the contingent consideration liability will be fixed as of December 31, 2018. The changes in fair value of the Company’s acquisition-related contingent consideration for the six months ended June 30, 2018 was as follows: Balance at December 31, 2017 $ 33,429 Acquisition date fair value of Peak PACE contingent consideration 1,620 Fair value of cash consideration paid (1,646) Adjustments to fair value measurement 48,804 Balance at June 30, 2018 $ 82,207

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2018
Commitments and Contingencies
Commitments and Contingencies	17. Commitments and Contingencies (a) Legal Proceedings The Company is not currently involved in any significant claims or legal actions that, in the opinion of management, will have a material adverse impact on the Company. (b) Letter of Credit As of June 30, 2018 and December 31, 2017, the Company was contingently liable for $400 under an outstanding letter of credit related to the Company’s lease agreement for the office space in Moorestown, NJ. See Note 11 for additional information. (c) Employment Agreements and Annual Incentive Plan On April 25, 2017, the Company entered into employment agreements with each of the Company’s named executive officers, which were effective as of April 1, 2017, and on February 26, 2018, the Company entered into new employment agreements that replaced and superseded the previous agreements between the named executive officers and the Company entered into in April 2017. The employment agreements provide for, among other things, salary, incentive compensation, payments in the event of termination of the executives upon the occurrence of a change in control, and restrictive covenants pursuant to which the executives have agreed to refrain from competing with the Company or soliciting the Company’s employees or customers for a period following the executive’s termination of employment. The agreements have an initial term of three years and will automatically renew annually. On April 25, 2017, the Board also adopted the Annual Incentive Plan, effective as of January 1, 2017, which formalizes the Company’s annual short-term incentive program and does not represent a new compensation program for the named executive officers. The Annual Incentive Plan provides pay for performance incentive compensation to the Company’s employees, including its named executive officers, rewarding them for their contributions to the Company with cash incentive compensation based on attainment of pre-determined corporate and individual performance goals, as applicable. On February 26, 2018, the Board approved an amendment to the Annual Incentive Plan, effective January 1, 2018, to allow the payments of awards under the Annual Incentive Plan to be made in the form of cash, equity, or other consideration determined in the discretion of the Compensation Committee of the Board.

Retirement Plan

Retirement Plan	6 Months Ended
	Jun. 30, 2018
Retirement Plan
Retirement Plan	18. Retirement Plan The Company has established a 401(k) plan that qualifies as a defined contribution plan under Section 401 of the Internal Revenue Code. The Company’s contributions to this plan are based on a percentage of eligible employees’ plan year earnings, as defined. The Company made contributions to participants’ accounts totaling $321 and $148 during the three months ended June 30, 2018 and 2017, respectively. The Company made contributions to participants’ accounts totaling $877 and $284 during the six months ended June 30, 2018 and 2017, respectively.

Summary of Significant Accoun25

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2018
Summary of Significant Accounting Policies
Basis of Presentation	(a) Basis of Presentation The accompanying unaudited consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (the “SEC”) regarding interim financial reporting. The unaudited interim consolidated financial statements have been prepared on the same basis as the annual audited consolidated financial statements and, in the opinion of management, reflect all adjustments ( consisting of normal recurring accruals and adjustments) , necessary for the fair statement of the Company's interim consolidated financial position for the periods indicated. The interim results for the three and six months ended June 30, 2018 are not necessarily indicative of results to be expected for the year ending December 31, 2018, any other interim periods, or any future year or period. As such, the information included in this quarterly report on Form 10-Q should be read in conjunction with the consolidated financial statements and accompanying notes included in the Company’s annual report as filed on Form 10-K.
Liquidity	(b) Liquidity The Company's unaudited consolidated financial statements have been prepared on the basis of continuity of operations, realization of assets and the satisfaction of liabilities in the ordinary course of business. Management believes that the Company's cash on hand of $7,273 as of June 30, 2018, cash flows from operations and borrowing availability under the Amended and Restated Loan and Security Agreement (as amended, the “Amended and Restated 2015 Revolving Line”) are sufficient to fund the Company's planned operations through at least September 30, 2019. See Note 11 for additional information.
Use of Estimates	(c) 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, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates or assumptions.
Revenue Recognition	(d) Revenue Recognition The Company evaluates its contractual arrangements to determine the performance obligations and transaction prices. Revenue is allocated to each performance obligation and recognized when the related performance obligations are satisfied. Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as a fulfillment cost and are in included in cost of revenue. See Note 3 for additional information about the adoption of Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers . See Note 4 for additional detail about the Company’s products and service lines.
Cost of Product and Service Revenue	(e) Cost of Product Revenue Cost of product revenue includes all costs directly related to the fulfillment and distribution of prescription drugs as part of the Company’s MRM offerings. Costs consist primarily of the purchase price of the prescription drugs the Company dispenses, expenses to package, dispense and distribute prescription drugs, and expenses associated with the Company's prescription fulfillment centers, including employment costs and stock-based compensation. Such costs also include direct overhead expenses, as well as allocated miscellaneous overhead costs. The Company allocates miscellaneous overhead costs among functions based on employee headcount. (f) Cost of Service Revenue Cost of service revenue includes all costs directly related to servicing the Company’s MRM service contracts, which primarily consist of labor costs, outside contractors, technology services, hosting fees and overhead costs. In addition, service costs include all labor costs, including stock-based compensation expense, directly related to the health plan management and pharmacy cost management services and expenses for claims processing, technology services and overhead costs.
Recent Accounting Pronouncements	(g) R ecent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-09 and has subsequently issued a number of amendments to ASU 2014-09. ASU 2014-09, as amended, represents a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of promised goods or services to clients in an amount that reflects the consideration to which the Company expects to be entitled to receive in exchange for those goods or services. ASU 2014-09 sets forth a new five-step revenue recognition model which replaces the prior revenue recognition guidance in its entirety and is intended to eliminate numerous industry-specific pieces of revenue recognition guidance that have historically existed. For public companies, ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2017 and interim reporting periods within that reporting period. Companies may use either a full retrospective or a modified retrospective approach to adopt ASU 2014-09. The Company adopted ASU-2014-09 as of January 1, 2018 using the full retrospective method. As a result, the Company revised the consolidated balance sheets as of December 31, 2017, and the consolidated statements of operations and cash flows for the three and six months ended June 30, 2017, and related notes to the unaudited consolidated financial statements for the effects of adoption. See Note 3 for additional information. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) ("ASU 2016-02"). The new standard establishes a right-of-use ("ROU") model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. ASU 2016-02 is effective for annual periods beginning after December 15, 2018, including interim periods within those annual periods, with early adoption permitted. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company is currently analyzing its leasing arrangements and evaluating the practical expedients and accounting policy elections to determine the potential impact of the adoption of this standard. The Company is also in the process of assessing any potential impacts on its internal controls, business processes, and accounting policies related to both the implementation and ongoing compliance of the new standard. The Company anticipates that this standard will have a material impact on the Company’s consolidated financial statements, as all long-term leases will be capitalized on the consolidated balance sheet. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments ("ASU 2016-15"). ASU 2016-15 provides guidance to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. ASU 2016-15 is effective for financial statements issued for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The Company has adopted ASU 2016-15 effective January 1, 2018. The adoption of this standard did not have a material impact on the Company's consolidated financial statements. In January 2017, the FASB issued Accounting Standards Update No. 2017-01, Business Combinations (“ASU 2017-01”). ASU 2017-01 provides guidance for evaluating whether a set of transferred assets and activities (the “set”) should be accounted for as an acquisition of a business or group of assets. The guidance provides a screen to determine when a set does not qualify to be a business. When substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in an identifiable asset or a group of similar assets, the set is not a business. Also to be considered a business, the set would have to include an input and a substantive process that together significantly contribute to the ability to create outputs. ASU 2017-01 is effective for financial statements issued for fiscal years beginning after December 15, 2017. The Company has adopted ASU 2017-01 effective January 1, 2018. The adoption of this standard did not have a material impact on the Company's consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment ("ASU 2017-04"). ASU 2017-04 simplifies the accounting for goodwill impairment by eliminating the requirement to calculate the implied fair value of goodwill to measure an impairment charge. Instead, entities will be required to record an impairment charge based on the excess of a reporting unit’s carrying value over its fair value. ASU 2017-04 is effective for financial statements issued for fiscal years beginning after December 15, 2019. The Company believes the adoption of ASU 2017-04 will not have a material effect on the Company's consolidated financial statements. In May 2017, the FASB issued ASU No. 2017-09, Compensation – Stock Compensation (Topic 718): Scope of Modification Accounting (“ASU 2017-09”). ASU 2017-09 amends the scope of modification accounting for share-based payment arrangements. The guidance requires modification accounting only if the fair value, vesting conditions, or the classification of the award (as equity or liability) changes as a result of a change in terms or conditions. ASU 2017-09 is effective for financial statements issued for fiscal years beginning after December 15, 2017. The Company has adopted ASU 2017-09 effective January 1, 2018. The adoption of this standard did not have a material impact on the Company's consolidated financial statements. In June 2018, the FASB issued ASU No. 2018-07, Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounts (“ASU 2018-07”). ASU 2018-07 simplifies the accounting for share-based payments granted to nonemployees for goods and services and aligns such payments to nonemployees with the current accounting requirements for share-based payments to employees. ASU 2018-07 is effective for financial statements issued for fiscal years beginning after December 15, 2019. The Company is currently evaluating the potential impact of the adoption of this standard on the Company’s consolidated financial statements.

Adoption of New Accounting Po26

Adoption of New Accounting Policy (Tables)	6 Months Ended
	Jun. 30, 2018
Adoption of New Accounting Policy
Schedule of impact on financial statements	For the year ended December 31, 2017 As Previously Reported Adjustment for ASU on Revenue Recognition As Adjusted Assets Current assets: Other current assets $ 702 $ 1,842 $ 2,544 Total current assets 33,609 1,842 35,451 Total assets $ 185,990 $ 1,842 $ 187,832 Liabilities and stockholders’ equity Deferred income tax liability $ 545 $ 444 $ 989 Total liabilities 63,500 444 63,944 Stockholders' equity: Accumulated deficit (20,627) 1,398 (19,229) Total stockholders’ equity 122,490 1,398 123,888 Total liabilities and stockholders’ equity $ 185,990 $ 1,842 $ 187,832 Three Months Ended Six Months Ended June 30, June 30, 2017 2017 As Previously Reported Adjustment for ASU on Revenue Recognition As Adjusted As Previously Reported Adjustment for ASU on Revenue Recognition As Adjusted Revenue: Product revenue $ 24,074 $ (800) $ 23,274 $ 46,770 $ (1,555) $ 45,215 Service revenue 5,582 581 6,163 10,575 1,624 12,199 Total revenue 29,656 (219) 29,437 57,345 69 57,414 Cost of revenue, exclusive of depreciation and amortization shown below: Product cost 18,463 (622) 17,841 35,868 (1,135) 34,733 Service cost 2,505 622 3,127 4,755 1,135 5,890 Total cost of revenue, exclusive of depreciation and amortization 20,968 — 20,968 40,623 — 40,623 Loss from operations (1,222) (219) (1,441) (3,932) 69 (3,863) Net loss $ (1,464) $ (219) $ (1,683) $ (4,345) $ 69 $ (4,276) Net loss attributable to common stockholders, basic and diluted $ (1,464) $ (219) $ (1,683) $ (4,345) $ 69 $ (4,276) Net loss per share attributable to common stockholders, basic and diluted $ (0.09) $ (0.01) $ (0.10) $ (0.27) $ 0.01 $ (0.26)

Revenue (Tables)

Revenue (Tables)	6 Months Ended
	Jun. 30, 2018
Revenue
Schedule of disaggregation of revenue	Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Major service lines MRM prescription fulfillment services $ 27,378 $ 23,274 $ 54,558 $ 45,215 MRM services 16,659 3,229 30,354 6,388 Health plan management services 3,132 1,285 4,837 2,738 Pharmacy cost management services 1,366 1,604 2,661 2,975 Other services 63 45 132 98 $ 48,598 $ 29,437 $ 92,542 $ 57,414
Schedule of receivables, contract assets, and contract liabilities from contracts with customers	June 30, December 31, 2018 2017 (unaudited) (as adjusted)* Contract assets $ 3,427 $ 1,842 Contract liabilities 2,212 1,350
Schedule of significant changes in the contract assets and the contract liabilities balances	June 30, 2018 (unaudited) Contract asset: Contract asset, beginning of period $ 1,842 Decreases due to cash received (1,949) Increases, excluding amounts transferred to receivables during the period 3,534 Contract asset, end of period $ 3,427 Contract liability Contract liability, beginning of period $ 1,350 Revenue recognized that was included in the contract liability balance at the beginning of the period (1,257) Increases due to cash received, excluding amounts recognized as revenue during the period 2,119 Contract liability, end of period $ 2,212

Net Loss per Share (Tables)

Net Loss per Share (Tables)	6 Months Ended
	Jun. 30, 2018
Net Loss per Share
Schedule of calculation of basic and diluted net loss per share	Three Months Ended Six Months Ended June 30, June 30, 2018 2017* 2018 2017* Numerator: Net loss attributable to common stockholders, basic and diluted $ (29,026) $ (1,683) $ (47,120) $ (4,276) Denominator: Weighted average shares of common stock outstanding, basic 18,956,445 16,506,585 18,873,297 16,373,413 Net loss per share attributable to common stockholders, basic and diluted $ (1.53) $ (0.10) $ (2.50) $ (0.26) *As adjusted. See Note 3.
Schedule of shares excluded from the calculation of diluted net loss per share attributable to common stockholders	June 30, 2018 2017 Stock options to purchase common stock 2,602,641 2,957,302 Unvested restricted stock 1,061,879 730,822 Contingently issuable shares 154,150 — 3,818,670 3,688,124

Acquisitions (Tables)

Acquisitions (Tables)	6 Months Ended
	Jun. 30, 2018
Schedule of proforma results	Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Revenue $ 49,291 $ 39,975 $ 95,139 $ 75,695 Net loss (28,906) (1,111) (46,891) (4,511) Net loss per share attributable to common stockholders, basic and diluted (1.52) (0.07) (2.48) (0.27)
Peak PACE Solutions
Schedule of purchase price consideration	Cash consideration at closing, net of post-closing adjustments $ 7,563 Estimated fair value of contingent consideration 1,620 Total fair value of acquisition consideration $ 9,183
Schedule of allocation of the purchase price based on the estimated fair values of the assets acquired and liabilities	Cash $ 606 Property and equipment 84 Trade name 290 Client relationships 5,220 Non-competition agreement 50 Goodwill 3,569 Total assets acquired $ 9,819 Accrued expenses and other liabilities (626) Debt assumed (10) Total purchase price, including contingent consideration of $1,620 $ 9,183
SinfoniaRx
Schedule of purchase price consideration	Cash consideration at closing, net of post-closing adjustments $ 34,492 Stock consideration at closing 11,541 Estimated fair value of contingent consideration 38,092 Total fair value of acquisition consideration $ 84,125
Schedule of allocation of the purchase price based on the estimated fair values of the assets acquired and liabilities	Cash $ 218 Accounts receivable 8,309 Prepaid expenses and other current assets 1,056 Property and equipment 1,419 Other assets 127 Trade name 4,776 Developed technology 13,291 Client relationships 20,265 Non-competition agreement 4,752 Goodwill 52,898 Total assets acquired $ 107,111 Accrued expenses and other liabilities (3,819) Trade accounts payable (8,868) Debt assumed (675) Deferred income tax liability, net (9,624) Total purchase price, including contingent consideration of $38,092 $ 84,125

Software Development Costs (Tab

Software Development Costs (Tables)	6 Months Ended
	Jun. 30, 2018
Software Development Costs
Schedule of capitalized software costs	June 30, 2018 December 31, 2017 Software development costs $ 11,924 $ 9,873 Less: accumulated amortization (6,003) (4,872) Software development costs, net $ 5,921 $ 5,001 Capitalized software costs not yet subject to amortization $ 1,708 $ 1,021

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	6 Months Ended
	Jun. 30, 2018
Goodwill and Intangible Assets
Schedule of goodwill	Balance at December 31, 2017 $ 74,613 Goodwill from 2018 acquisition 3,569 Adjustments to Goodwill (29) Balance at June 30, 2018 $ 78,153
Schedule of intangible assets	Weighted Average Amortization Period Accumulated Intangible (in years) Gross Value Amortization Assets, net June 30, 2018 Trade names 8.26 $ 7,006 $ (1,785) $ 5,221 Client relationships 8.68 40,169 (7,977) 32,192 Non-competition agreements 4.99 5,454 (1,274) 4,180 Developed technology 7.38 26,791 (5,278) 21,513 Domain name 10.00 59 (6) 53 Total intangible assets $ 79,479 $ (16,320) $ 63,159 Weighted Average Amortization Period Accumulated Intangible (in years) Gross Value Amortization Assets, net December 31, 2017 Trade names 8.56 $ 6,716 $ (1,320) $ 5,396 Client relationships 8.48 34,949 (5,652) 29,297 Non-competition agreements 4.96 5,404 (739) 4,665 Developed technology 7.38 26,791 (3,438) 23,353 Domain name 10.00 29 (4) 25 Total intangible assets $ 73,889 $ (11,153) $ 62,736
Schedule of estimated amortization expense	Years Ending December 31, 2018 (July 1 - December 31) $ 5,396 2019 10,332 2020 9,831 2021 9,818 2022 9,510 Thereafter 18,272 Total estimated amortization expense $ 63,159

Accrued Expenses and Other Li32

Accrued Expenses and Other Liabilities (Tables)	6 Months Ended
	Jun. 30, 2018
Accrued Expenses and Other Liabilities
Schedule of accrued expenses and other liabilities	June 30, 2018 December 31, 2017 Employee related expenses $ 5,373 $ 4,572 Contract liability 2,212 1,350 Accrued payables due to customers 1,200 1,200 Client funds obligations 867 — Contract labor 153 463 Interest 34 13 Deferred rent 194 163 Professional fees 225 288 Income taxes payable — 20 Other expenses 1,145 919 Total accrued expenses and other liabilities $ 11,403 $ 8,988

Lines of Credit and Long-Term33

Lines of Credit and Long-Term Debt (Tables)	6 Months Ended
	Jun. 30, 2018
Lines of Credit and Long-Term Debt
Schedule of capital lease obligations	June 30, 2018 December 31, 2017 Capital leases $ 1,643 $ 1,705 Less current portion, net (1,083) (921) Total capital leases, less current portion, net $ 560 $ 784
Schedule of long-term debt maturities	Total long-term debt Remainder of 2018 $ 591 2019 992 2020 152 2021 4 1,739 Less amount representing interest (96) Present value of payments 1,643 Less current portion (1,083) Total long-term debt, net of current portion $ 560

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2018
Stock-Based Compensation
Schedule of weighted average assumptions for employee grants	Six Months Ended June 30, Valuation assumptions: 2018 2017 Expected volatility 58.40 % 61.00 % Expected term (years) 6.08 6.02 Risk-free interest rate 2.37 % 2.24 % Dividend yield — —
Summary of stock option activity	Weighted Weighted average average remaining Aggregate Number exercise contractual intrinsic of shares price term value Outstanding at December 31, 2017 2,883,175 $ 9.26 Granted 420,250 Exercised (623,571) Forfeited (77,213) Outstanding at June 30, 2018 2,602,641 $ $ 131,534 Options vested and expected to vest at June 30, 2018 2,602,641 $ $ 131,534 Exercisable at June 30, 2018 1,272,469 $ $ 72,135
Schedule of recorded stock-based compensation expense related to stock options	Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Cost of revenue - product $ 171 $ 126 $ 421 $ 221 Cost of revenue - service 373 69 643 112 Research and development 323 216 519 320 Sales and marketing 392 165 771 282 General and administrative 921 2,440 1,771 5,902 Total stock-based compensation expense $ 2,180 $ 3,016 $ 4,125 $ 6,837

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2018
Change in fair value
Schedule of classified liabilities measured at fair value on recurring basis	Fair Value Measurement at Reporting Date Using Balance as of Level 1 Level 2 Level 3 June 30, 2018 Liabilities Acquisition-related contingent consideration - short-term $ — $ — $ $ 82,207 Fair Value Measurement at Reporting Date Using Balance as of Level 1 Level 2 Level 3 December 31, 2017 Liabilities Acquisition-related contingent consideration - short-term $ — $ — $ 1,640 $ 1,640 Acquisition-related contingent consideration - long-term — — 31,789 $ — $ — $ $
Acquisition related contingent consideration
Change in fair value
Schedule of reconciliation of liability measured at fair value on recurring basis using significant unobservable inputs (Level 3)	Balance at December 31, 2017 $ 33,429 Acquisition date fair value of Peak PACE contingent consideration 1,620 Fair value of cash consideration paid (1,646) Adjustments to fair value measurement 48,804 Balance at June 30, 2018 $ 82,207

Summary of Significant Accoun36

Summary of Significant Accounting Policies - Liquidity (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Summary of Significant Accounting Policies
Cash on hand	$ 7,273	$ 10,430

Adoption of New Accounting Po37

Adoption of New Accounting Policy - ASU-2014-09 (Details) - USD ($) $ in Thousands	Jan. 01, 2018	Jun. 30, 2018	Dec. 31, 2017
Revenue contracts
Revenue, Practical Expedient, Initial Application and Transition, Completed Contract, Use of Transaction Price at Contract Completion Date	true
Contract assets		$ 3,427	$ 1,842
Data analysis
Revenue contracts
Contract assets		$ 1,873	$ 1,842

Adoption of New Accounting Po38

Adoption of New Accounting Policy - Impact on Balance Sheets (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Cash flow
Cash provided by or used in operating, investing or financing activities	$ (3,157)	$ (1,534)
Current assets:
Other current assets	3,791		$ 2,544
Total current assets	38,974		35,451
Total assets	199,702		187,832
Liabilities and stockholders' equity
Deferred income tax liability			989
Total liabilities	119,522		63,944
Stockholders' equity:
Accumulated deficit	(66,349)		(19,229)
Total stockholders' equity	80,180		123,888
Total liabilities and stockholders' equity	$ 199,702		187,832
As Previously Reported | ASU 2014-09
Current assets:
Other current assets			702
Total current assets			33,609
Total assets			185,990
Liabilities and stockholders' equity
Deferred income tax liability			545
Total liabilities			63,500
Stockholders' equity:
Accumulated deficit			(20,627)
Total stockholders' equity			122,490
Total liabilities and stockholders' equity			185,990
Adjustment for ASU on Revenue Recognition | ASU 2014-09
Cash flow
Cash provided by or used in operating, investing or financing activities		$ 0
Current assets:
Other current assets			1,842
Total current assets			1,842
Total assets			1,842
Liabilities and stockholders' equity
Deferred income tax liability			444
Total liabilities			444
Stockholders' equity:
Accumulated deficit			1,398
Total stockholders' equity			1,398
Total liabilities and stockholders' equity			$ 1,842

Adoption of New Accounting Po39

Adoption of New Accounting Policy - Impact on Statements of Operations (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Revenue:
Revenue	$ 48,598	$ 29,437	$ 92,542	$ 57,414
Cost of revenue, exclusive of depreciation and amortization shown below:
Cost of revenue, exclusive of depreciation and amortization	32,410	20,968	64,074	40,623
Loss from operations	(34,825)	(1,441)	(50,206)	(3,863)
Net loss	(29,026)	(1,683)	(47,120)	(4,276)
Net income (loss) attributable to common stockholders, basic and diluted
Net loss attributable to common stockholders, basic	(29,026)	(1,683)	(47,120)	(4,276)
Net loss attributable to common stockholders, diluted	$ (29,026)	$ (1,683)	$ (47,120)	$ (4,276)
Net loss per share attributable to common stock holders, basic and diluted (in dollars per share)	$ (1.53)	$ (0.10)	$ (2.50)	$ (0.26)
As Previously Reported | ASU 2014-09
Revenue:
Revenue		$ 29,656		$ 57,345
Cost of revenue, exclusive of depreciation and amortization shown below:
Cost of revenue, exclusive of depreciation and amortization		20,968		40,623
Loss from operations		(1,222)		(3,932)
Net loss		(1,464)		(4,345)
Net income (loss) attributable to common stockholders, basic and diluted
Net loss attributable to common stockholders, basic		(1,464)		(4,345)
Net loss attributable to common stockholders, diluted		$ (1,464)		$ (4,345)
Net loss per share attributable to common stock holders, basic and diluted (in dollars per share)		$ (0.09)		$ (0.27)
Adjustment for ASU on Revenue Recognition | ASU 2014-09
Revenue:
Revenue		$ (219)		$ 69
Cost of revenue, exclusive of depreciation and amortization shown below:
Loss from operations		(219)		69
Net loss		(219)		69
Net income (loss) attributable to common stockholders, basic and diluted
Net loss attributable to common stockholders, basic		(219)		69
Net loss attributable to common stockholders, diluted		$ (219)		$ 69
Net loss per share attributable to common stock holders, basic and diluted (in dollars per share)		$ (0.01)		$ 0.01
Product
Revenue:
Revenue	$ 27,378	$ 23,274	$ 54,558	$ 45,215
Cost of revenue, exclusive of depreciation and amortization shown below:
Cost of revenue, exclusive of depreciation and amortization	20,075	17,841	40,907	34,733
Product | As Previously Reported | ASU 2014-09
Revenue:
Revenue		24,074		46,770
Cost of revenue, exclusive of depreciation and amortization shown below:
Cost of revenue, exclusive of depreciation and amortization		18,463		35,868
Product | Adjustment for ASU on Revenue Recognition | ASU 2014-09
Revenue:
Revenue		(800)		(1,555)
Cost of revenue, exclusive of depreciation and amortization shown below:
Cost of revenue, exclusive of depreciation and amortization		(622)		(1,135)
Service
Revenue:
Revenue	21,220	6,163	37,984	12,199
Cost of revenue, exclusive of depreciation and amortization shown below:
Cost of revenue, exclusive of depreciation and amortization	$ 12,335	3,127	$ 23,167	5,890
Service | As Previously Reported | ASU 2014-09
Revenue:
Revenue		5,582		10,575
Cost of revenue, exclusive of depreciation and amortization shown below:
Cost of revenue, exclusive of depreciation and amortization		2,505		4,755
Service | Adjustment for ASU on Revenue Recognition | ASU 2014-09
Revenue:
Revenue		581		1,624
Cost of revenue, exclusive of depreciation and amortization shown below:
Cost of revenue, exclusive of depreciation and amortization		$ 622		$ 1,135

Revenue - General (Details)

Revenue - General (Details)	6 Months Ended
	Jun. 30, 2018
Contract with customer
Revenue, Practical Expedient, Financing Component	true
Minimum
Contract with customer
Contract term	1 year
Termination notice period	0 days
Maximum
Contract with customer
Contract term	5 years
Termination notice period	180 days
Pharmacy cost management services
Contract with customer
Collection period after data submission	180 days

Revenue - Disaggregation (Detai

Revenue - Disaggregation (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Disaggregation of revenue
Revenue	$ 48,598	$ 29,437	$ 92,542	$ 57,414
MRM prescription fulfillment services
Disaggregation of revenue
Revenue	27,378	23,274	54,558	45,215
MRM services
Disaggregation of revenue
Revenue	16,659	3,229	30,354	6,388
Health plan management services
Disaggregation of revenue
Revenue	3,132	1,285	4,837	2,738
Pharmacy cost management services
Disaggregation of revenue
Revenue	1,366	1,604	2,661	2,975
Other services
Disaggregation of revenue
Revenue	$ 63	$ 45	$ 132	$ 98

Revenue - Contract balances (De

Revenue - Contract balances (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Contract balances
Contract assets	$ 3,427	$ 1,842
Contract liabilities	2,212	1,350
Data analysis
Contract balances
Contract assets	1,873	$ 1,842
MRM services
Contract balances
Contract assets	$ 1,554

Revenue - Change in contract ba

Revenue - Change in contract balances (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2018USD ($)
Contract asset:
Contract asset, beginning of period	$ 1,842
Decreases due to cash received	(1,949)
Increases, excluding amounts transferred to receivables during the period	3,534
Contract asset, end of period	3,427
Contract liability
Contract liability, beginning of period	1,350
Revenue recognized that was included in the contract liability balance at the beginning of the period	(1,257)
Increases due to cash received, excluding amounts recognized as revenue during the period	2,119
Contract liability end of period	$ 2,212

Net Loss per Share - EPS (Detai

Net Loss per Share - EPS (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Numerator
Net loss attributable to common stockholders, basic	$ (29,026)	$ (1,683)	$ (47,120)	$ (4,276)
Net loss attributable to common stockholders, diluted	$ (29,026)	$ (1,683)	$ (47,120)	$ (4,276)
Denominator
Weighted average common shares outstanding basic and diluted (in shares)	18,956,445	16,506,585	18,873,297	16,373,413
Net loss per share attributable to common stock holders, basic and diluted (in dollars per share)	$ (1.53)	$ (0.10)	$ (2.50)	$ (0.26)

Net Income (Loss) per Share - A

Net Income (Loss) per Share - Anti-dilutive Securities (Details) - shares	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Securities excluded from the calculation of diluted net loss per share attributable to common stockholders
Amount of antidilutive securities excluded from computation of earnings per share	3,818,670	3,688,124
Employee stock options
Securities excluded from the calculation of diluted net loss per share attributable to common stockholders
Amount of antidilutive securities excluded from computation of earnings per share	2,602,641	2,957,302
Restricted stock
Securities excluded from the calculation of diluted net loss per share attributable to common stockholders
Amount of antidilutive securities excluded from computation of earnings per share	1,061,879	730,822
Contingently issuable shares
Securities excluded from the calculation of diluted net loss per share attributable to common stockholders
Amount of antidilutive securities excluded from computation of earnings per share	154,150

Acquisitions - Peak PACE Soluti

Acquisitions - Peak PACE Solutions (Details) - USD ($) $ in Thousands	May 01, 2018	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Allocation of the purchase price based on the estimated fair values of the assets acquired and liabilities assumed
Goodwill		$ 78,153		$ 78,153		$ 74,613
Revenue		48,598	$ 29,437	92,542	$ 57,414
Net income		(29,026)	(1,683)	$ (47,120)	(4,276)
Trade name
Allocation of the purchase price based on the estimated fair values of the assets acquired and liabilities assumed
Weighted average amortization period				8 years 3 months 4 days		8 years 6 months 22 days
Developed technology
Allocation of the purchase price based on the estimated fair values of the assets acquired and liabilities assumed
Weighted average amortization period				7 years 4 months 17 days		7 years 4 months 17 days
Non-competition agreement
Allocation of the purchase price based on the estimated fair values of the assets acquired and liabilities assumed
Weighted average amortization period				4 years 11 months 27 days		4 years 11 months 16 days
Service
Allocation of the purchase price based on the estimated fair values of the assets acquired and liabilities assumed
Revenue		21,220	$ 6,163	$ 37,984	$ 12,199
Peak PACE Solutions
Acquisition
Cash consideration	$ 7,719
Acquisition and integration costs		262		262
Purchase price consideration
Cash consideration at closing, net of post-closing adjustments	7,563
Estimated fair value of contingent consideration	1,620
Total fair value of acquisition consideration	$ 9,183
Allocation of the purchase price based on the estimated fair values of the assets acquired and liabilities assumed
Cash		606		606
Property and equipment		84		84
Goodwill		3,569		3,569
Total assets acquired		9,819		9,819
Accrued expenses and other liabilities		(626)		(626)
Debt assumed		(10)		(10)
Total purchase price, including contingent consideration		9,183		9,183
Contingent consideration		1,620		1,620
Weighted average amortization period	9 years 6 months 4 days
Net income		224		224
Peak PACE Solutions | Maximum
Purchase price consideration
Total fair value of acquisition consideration	$ 10,000
Peak PACE Solutions | Trade name
Allocation of the purchase price based on the estimated fair values of the assets acquired and liabilities assumed
Intangible assets		290		290
Weighted average amortization period	1 year 6 months
Peak PACE Solutions | Client relationships intangible asset
Allocation of the purchase price based on the estimated fair values of the assets acquired and liabilities assumed
Intangible assets		5,220		5,220
Weighted average amortization period	10 years
Peak PACE Solutions | Non-competition agreement
Allocation of the purchase price based on the estimated fair values of the assets acquired and liabilities assumed
Intangible assets		50		50
Weighted average amortization period	5 years
Peak PACE Solutions | Service
Allocation of the purchase price based on the estimated fair values of the assets acquired and liabilities assumed
Revenue		$ 1,349		$ 1,349

Acquisitions - SinfoniaRx (Deta

Acquisitions - SinfoniaRx (Details) $ / shares in Units, $ in Thousands	Sep. 06, 2017USD ($)D$ / sharesshares	Jun. 30, 2018USD ($)	Jun. 30, 2017USD ($)	Jun. 30, 2018USD ($)	Jun. 30, 2017USD ($)	Dec. 31, 2017USD ($)
Allocation of the purchase price based on the estimated fair values of the assets acquired and liabilities assumed
Goodwill		$ 78,153		$ 78,153		$ 74,613
Revenue		48,598	$ 29,437	92,542	$ 57,414
Net loss		(29,026)	(1,683)	$ (47,120)	(4,276)
Trade name
Allocation of the purchase price based on the estimated fair values of the assets acquired and liabilities assumed
Weighted average amortization period				8 years 3 months 4 days		8 years 6 months 22 days
Developed technology
Allocation of the purchase price based on the estimated fair values of the assets acquired and liabilities assumed
Weighted average amortization period				7 years 4 months 17 days		7 years 4 months 17 days
Non-competition agreement
Allocation of the purchase price based on the estimated fair values of the assets acquired and liabilities assumed
Weighted average amortization period				4 years 11 months 27 days		4 years 11 months 16 days
SinfoniaRx
Acquisition
Cash consideration	$ 35,000
Percentage of contingent consideration payable in cash	50.00%
Percentage of contingent consideration payable in stock	50.00%
Aggregate value of contingent consideration	$ 130,000
Contingent purchase price consideration earned or paid						$ 0
Issuance of common stock (in shares) | shares	520,821
Issuance price (in dollars per share) | $ / shares	$ 19.20
Number of trading days | D	20
Acquisition and integration costs		30		$ 61		$ 1,015
Purchase price consideration
Cash consideration at closing, net of post-closing adjustments	$ 34,492
Stock consideration at closing	11,541
Estimated fair value of contingent consideration	38,092
Total fair value of acquisition consideration	$ 84,125
Allocation of the purchase price based on the estimated fair values of the assets acquired and liabilities assumed
Cash		218		218
Accounts receivable		8,309		8,309
Prepaid expenses and other current assets		1,056		1,056
Property and equipment		1,419		1,419
Other assets		127		127
Goodwill		52,898		52,898
Total assets acquired		107,111		107,111
Accrued expenses and other liabilities		(3,819)		(3,819)
Trade accounts payable		(8,868)		(8,868)
Debt assumed		(675)		(675)
Deferred income tax liability, net		(9,624)		(9,624)
Total purchase price, including contingent consideration		84,125		84,125
Contingent consideration		38,092		38,092
Weighted average amortization period	7 years 3 months 29 days
Net loss		1,498		435
SinfoniaRx | Maximum
Acquisition
Cash consideration	$ 35,000
SinfoniaRx | Trade name
Allocation of the purchase price based on the estimated fair values of the assets acquired and liabilities assumed
Intangible assets		4,776		4,776
Weighted average amortization period	10 years
SinfoniaRx | Developed technology
Allocation of the purchase price based on the estimated fair values of the assets acquired and liabilities assumed
Intangible assets		13,291		13,291
Weighted average amortization period	7 years
SinfoniaRx | Client relationships intangible asset
Allocation of the purchase price based on the estimated fair values of the assets acquired and liabilities assumed
Intangible assets		20,265		20,265
Weighted average amortization period	7 years 5 months 16 days
SinfoniaRx | Non-competition agreement
Allocation of the purchase price based on the estimated fair values of the assets acquired and liabilities assumed
Intangible assets		4,752		4,752
Weighted average amortization period	5 years
Service
Allocation of the purchase price based on the estimated fair values of the assets acquired and liabilities assumed
Revenue		21,220	$ 6,163	37,984	$ 12,199
Service | SinfoniaRx
Allocation of the purchase price based on the estimated fair values of the assets acquired and liabilities assumed
Revenue		$ 12,672		$ 21,934

Acquisitions - Pro forma (unaud

Acquisitions - Pro forma (unaudited) (Details) - Peak Pace Solutions and Sinfoniarx - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Acquisition
Revenue	$ 49,291	$ 39,975	$ 95,139	$ 75,695
Net loss	$ (28,906)	$ (1,111)	$ (46,891)	$ (4,511)
Net loss per share attributable to common stockholders, basic (in dollars per share)	$ (1.52)	$ (0.07)	$ (2.48)	$ (0.27)
Net loss per share attributable to common stockholders, diluted (in dollars per share)	$ (1.52)	$ (0.07)	$ (2.48)	$ (0.27)

Property and Equipment (Details

Property and Equipment (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Property and Equipment
Depreciation	$ 881	$ 439	$ 1,715	$ 854

Software Development Costs (Det

Software Development Costs (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Software Development Costs
Software development costs	$ 11,924		$ 11,924		$ 9,873
Less: accumulated amortization	(6,003)		(6,003)		(4,872)
Software development costs, net	5,921		5,921		5,001
Capitalized software costs not yet subject to amortization	1,708		1,708		$ 1,021
Amortization expense	$ 445	$ 411	$ 1,131	$ 811

Goodwill and Intangible Asset51

Goodwill and Intangible Assets - Goodwill (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2018USD ($)
Goodwill and related changes
Goodwill at beginning of period	$ 74,613
Goodwill from acquisition	3,569
Adjustments to Goodwill	(29)
Goodwill at end of period	78,153
SinfoniaRx
Goodwill and related changes
Goodwill at end of period	52,898
Accrued expenses and other liabilities	3,819
SinfoniaRx | Purchase Price Allocation | Adjustment
Goodwill and related changes
Accrued expenses and other liabilities	$ (29)

Goodwill and Intangible Asset52

Goodwill and Intangible Assets - Intangible assets (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Intangible Assets
Gross Value	$ 79,479		$ 79,479		$ 73,889
Accumulated Amortization	(16,320)		(16,320)		(11,153)
Intangible Assets, net	63,159		63,159		$ 62,736
Amortization expense	2,639	$ 947	$ 5,167	$ 1,897
Trade name
Intangible Assets
Weighted Average Amortization Period			8 years 3 months 4 days		8 years 6 months 22 days
Gross Value	7,006		$ 7,006		$ 6,716
Accumulated Amortization	(1,785)		(1,785)		(1,320)
Intangible Assets, net	5,221		$ 5,221		$ 5,396
Client relationships
Intangible Assets
Weighted Average Amortization Period			8 years 8 months 5 days		8 years 5 months 23 days
Gross Value	40,169		$ 40,169		$ 34,949
Accumulated Amortization	(7,977)		(7,977)		(5,652)
Intangible Assets, net	32,192		$ 32,192		$ 29,297
Non-competition agreement
Intangible Assets
Weighted Average Amortization Period			4 years 11 months 27 days		4 years 11 months 16 days
Gross Value	5,454		$ 5,454		$ 5,404
Accumulated Amortization	(1,274)		(1,274)		(739)
Intangible Assets, net	4,180		$ 4,180		$ 4,665
Developed technology
Intangible Assets
Weighted Average Amortization Period			7 years 4 months 17 days		7 years 4 months 17 days
Gross Value	26,791		$ 26,791		$ 26,791
Accumulated Amortization	(5,278)		(5,278)		(3,438)
Intangible Assets, net	21,513		$ 21,513		$ 23,353
Domain name
Intangible Assets
Weighted Average Amortization Period			10 years		10 years
Gross Value	59		$ 59		$ 29
Accumulated Amortization	(6)		(6)		(4)
Intangible Assets, net	$ 53		$ 53		$ 25

Goodwill and Intangible Asset53

Goodwill and Intangible Assets - Amortization (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Estimated amortization expense
2018 (Remainder of year)	$ 5,396
2,019	10,332
2,020	9,831
2,021	9,818
2,022	9,510
Thereafter	18,272
Total estimated amortization expense	$ 63,159	$ 62,736

Accrued Expenses and Other Li54

Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Accrued Expenses and Other Liabilities
Employee related expenses	$ 5,373	$ 4,572
Contract liability	2,212	1,350
Accrued payables due to customers	1,200	1,200
Client funds obligations	867
Contract labor	153	463
Interest	34	13
Deferred rent	194	163
Professional fees	225	288
Income taxes payable		20
Other expenses	1,145	919
Total accrued expenses and other liabilities	$ 11,403	$ 8,988

Lines of Credit and Long-Term55

Lines of Credit and Long-Term Debt - Lines of Credit (Details) - 2015 Revolving Line $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2018USD ($)	Jun. 30, 2017USD ($)	Jun. 30, 2018USD ($)item	Jun. 30, 2017USD ($)	Dec. 31, 2017USD ($)	Sep. 06, 2017USD ($)	Sep. 30, 2015USD ($)
Lines of Credit
Maximum borrowing capacity						$ 40,000
Sublimit of loan						1,000
Additional borrowing capacity						$ 10,000
Unrestricted cash and unused availability balance	$ 3,000		$ 3,000
Number of trailing months | item			12
Trailing period					12 months
Letter of credit outstanding	400		$ 400		$ 400		$ 500
Aggregate borrowings outstanding	8,000	$ 0	8,000	$ 0	$ 0
Amounts available for borrowings	$ 31,600		$ 31,600
Interest rate (as a percent)	5.07%	4.82%	5.07%	4.82%
Interest expense	$ 67	$ 0	$ 67	$ 0
Deferred financing costs	363		363
Amortization of deferred financing costs to interest expense	$ 20	$ 13	$ 41	$ 24
Prime Rate
Lines of Credit
Floor rate (as a percent)			3.50%
Minimum
Lines of Credit
Minimum EBITDA (as a percent)			75.00%
Minimum | Prime Rate
Lines of Credit
Spread on variable rate (as a percent)			(0.25%)
Maximum
Lines of Credit
Leverage ratio			2.50
Maximum capital expenditure			$ 5,000
Maximum | Prime Rate
Lines of Credit
Spread on variable rate (as a percent)			0.25%

Lines of Credit and Long-Term56

Lines of Credit and Long-Term Debt - Capital Lease Obligations (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Capital Lease Obligations
Capital leases	$ 1,643	$ 1,705
Less current portion	(1,083)	(921)
Total long-term debt, net of current portion	$ 560	$ 784

Lines of Credit and Long-Term57

Lines of Credit and Long-Term Debt - Capital Leases (Details) - Capital Lease Obligation - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Capital Lease Obligations
Interest expense, capital lease	$ 27	$ 52	$ 70	$ 109
Net book value of assets under capital leases	$ 1,636		$ 1,636		$ 1,918
Minimum
Capital Lease Obligations
Lease interest rates (as a percent)	4.00%		4.00%
Maximum
Capital Lease Obligations
Lease interest rates (as a percent)	14.00%		14.00%

Lines of Credit and Long-Term58

Lines of Credit and Long-Term Debt - Long-Term Debt Maturities (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Capital lease obligations
Remainder of 2018	$ 591
2,019	992
2,020	152
2,021	4
Total	1,739
Less amount representing interest	(96)
Present value of payments	1,643
Less current portion	(1,083)	$ (921)
Total long-term debt, net of current portion	$ 560	$ 784

Lines of Credit and Long-Term59

Lines of Credit and Long-Term Debt - Other Financing (Details) - AmerisourceBergen Drug Corporation - USD ($) $ in Thousands	1 Months Ended
	May 31, 2016	Jun. 30, 2018	Dec. 31, 2017
Other Financing
Monthly minimum purchase obligation	$ 1,750
Purchase obligation, period	3 years
Amount due as a result of prescription drug purchases		$ 4,347	$ 4,055

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2018	Sep. 30, 2017	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Income Taxes
Income tax (benefit) expense	$ (5,919)		$ 165	$ (3,269)	$ 260
Effective tax rate (as a percent)				6.50%	(6.50%)
Income tax benefit, Tax windfall				$ (3,741)
Release of deferred tax asset valuation allowance		$ 6,590
Tax expense based on estimated annual effective tax rate expected				$ 472

Other Long-term Liabilities (De

Other Long-term Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Other Long-term Liabilities.
Other Long-term Liabilities
Long-term portion of deferred rent	$ 2,551	$ 2,615

Stockholders' Equity - Capitali

Stockholders' Equity - Capitalization and IPO (Details) - USD ($) $ / shares in Units, $ in Thousands	Dec. 08, 2017	Oct. 04, 2016	Jun. 30, 2018	Dec. 31, 2017
Capitalization and Initial Public Offering
Common stock authorized shares		100,000,000	100,000,000	100,000,000
Shares of common stock, par value (in dollars per share)		$ 0.0001	$ 0.0001	$ 0.0001
Shares of undesignated preferred stock, authorized		10,000,000	10,000,000	10,000,000
Shares of undesignated preferred stock, par value (in dollars per share)		$ 0.0001	$ 0.0001	$ 0.0001
Proceeds from issuance of common stock, net of underwriting costs	$ 34,897
Underwriting discounts and commission	$ 2,228
IPO
Capitalization and Initial Public Offering
Issuance of common stock upon public offering, net of issuance costs (in shares)		4,300,000
Issuance price (in dollars per share)		$ 12
Proceeds from issuance of common stock under initial public offering, net of underwriting costs		$ 55,186
Underwriting discounts and commissions		$ 4,154
Underwriter option
Capitalization and Initial Public Offering
Issuance of common stock upon public offering, net of issuance costs (in shares)		645,000
Common Stock
Capitalization and Initial Public Offering
Redesignation of Class A and Class B common stock upon initial public offering (in shares)		5,583,405
Conversion of redeemable convertible preferred stock upon initial public offering (in shares)		5,089,436
Underwritten public offering (n shares)	1,350,000
Share price (in dollars per share)	$ 27.50

Stockholders' Equity - Common S

Stockholders' Equity - Common Stock Repurchase (Details) - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2018	Apr. 25, 2017
Common Stock Repurchase
Shares repurchased (in dollars)	$ 2,866
Treasury Stock
Common Stock Repurchase
Shares repurchased (in shares)	80,000
Average price per share (in dollars per share)	$ 35.82
Shares repurchased (in dollars)	$ 2,866
Common Stock
Common Stock Repurchase
Number of shares authorized to be repurchased		$ 5,000
Common stock available for repurchase	$ 1,175

Stock-Based Compensation - Plan

Stock-Based Compensation - Plans (Details) - shares	1 Months Ended	6 Months Ended
	Sep. 30, 2016	Jun. 30, 2018
Stock options
Stock-Based Compensation
Expiration term		10 years
Vesting period		4 years
Stock options | Vesting, Tranche 1
Stock-Based Compensation
Vesting period		1 year
Vesting (as a percent)		25.00%
Stock options | Vesting, Tranche 2
Stock-Based Compensation
Period of monthly vesting		36 months
Monthly vesting (as a percent)		2.08%
Stock options | Employee owning more than 10% of voting power
Stock-Based Compensation
Expiration term		5 years
Expiration term after termination		90 days
Expiration term after death or termination due to disability		1 year
Stock options | Minimum | Employee owning more than 10% of voting power
Stock-Based Compensation
Ownership (as a percent)		10.00%
Option price as percentage of fair market value of common stock on the date of grant		110.00%
2016 Plan
Stock-Based Compensation
Threshold limit to issue or transfer authorized shares (in shares)	800,000
Automatic increase on share reserve (as a percent)	5.00%
Additional shares authorized		964,876
Available for future grant (in shares)		697,813

Stock-Based Compensation - Empl

Stock-Based Compensation - Employee Restricted Common Stock (Details) - USD ($) $ / shares in Units, $ in Thousands

Jan. 31, 2020

May 31, 2019

May 07, 2018

May 01, 2018

Feb. 26, 2018

Jan. 02, 2018

Aug. 03, 2017

Sep. 28, 2016

Jun. 30, 2018

Jun. 30, 2017

Jun. 30, 2018

Jun. 30, 2017

May 20, 2018

Stock-Based Compensation

Total Stock-based compensation expense (in dollars)

$ 2,180

$ 3,016

$ 4,125

$ 6,837

Restricted stock | Employees

Stock-Based Compensation

Total Stock-based compensation expense (in dollars)

792

1,520

Unrecognized compensation expense (in dollars)

10,958

10,958

Restricted stock | Employees | Award Date of September 28, 2016

Stock-Based Compensation

Awards, other than options, granted (in shares)

700,386

Share price (in dollars per share)

$ 12

Total Stock-based compensation expense (in dollars)

0

$ 2,084

0

$ 5,159

Unrecognized compensation expense (in dollars)

$ 0

$ 0

Restricted stock | Employees | Award Date August 3, 2017

Stock-Based Compensation

Awards, other than options, granted (in shares)

20,000

Share price (in dollars per share)

$ 14.56

Annual vesting (as a percent)

25.00%

Vesting period

4 years

Restricted stock | Employees | Award Date January 2, 2018

Stock-Based Compensation

Awards, other than options, granted (in shares)

390,500

Share price (in dollars per share)

$ 29.25

Annual vesting (as a percent)

25.00%

Vesting period

4 years

Restricted stock | Employees | Award Date February 25, 2018

Stock-Based Compensation

Awards, other than options, granted (in shares)

4,754

Share price (in dollars per share)

$ 32.64

Vesting period

1 year

Restricted stock | Employees | Award date May 1, 2018

Stock-Based Compensation

Awards, other than options, granted (in shares)

5,000

Share price (in dollars per share)

$ 42.16

Annual vesting (as a percent)

25.00%

Vesting period

4 years

Restricted stock | Employees | Award date May 7, 2018

Stock-Based Compensation

Awards, other than options, granted (in shares)

10,000

Share price (in dollars per share)

$ 42.92

Annual vesting (as a percent)

25.00%

Vesting period

4 years

Restricted Stock, Amended grant award | Employees | Award Date of September 28, 2016

Stock-Based Compensation

Unvested shares outstanding

604,575

Restricted Stock, Amended grant award | Employees | Award Date of September 28, 2016 | Forecast

Stock-Based Compensation

Vesting (as a percent)

50.00%

50.00%

Stock-Based Compensation - Non-

Stock-Based Compensation - Non-Employee Director Restricted Stock (Details) - USD ($) $ / shares in Units, $ in Thousands	Jun. 15, 2018	Oct. 30, 2017	Sep. 28, 2017	Jun. 16, 2017	Mar. 08, 2017	Sep. 28, 2016	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Stock-Based Compensation
Total Stock-based compensation expense (in dollars)							$ 2,180	$ 3,016	$ 4,125	$ 6,837
Restricted stock | Non-employee directors
Stock-Based Compensation
Total Stock-based compensation expense (in dollars)							103	$ 53	185	$ 109
Unrecognized compensation expense (in dollars)							$ 686		$ 686
Restricted stock | Non-employee directors | Award Date of September 28, 2016
Stock-Based Compensation
Awards, other than options, granted (in shares)						22,260
Share price (in dollars per share)						$ 12
Restricted stock | Non-employee directors | Award Date of March 8, 2017
Stock-Based Compensation
Awards, other than options, granted (in shares)					5,212
Annual vesting (as a percent)					33.33%
Vesting period					3 years
Share price (in dollars per share)					$ 13.68
Restricted stock | Non-employee directors | Award Date October 30, 2017
Stock-Based Compensation
Awards, other than options, granted (in shares)		7,788
Share price (in dollars per share)		$ 26.39
Restricted stock | Non-employee directors | Award Date of June 15, 2018
Stock-Based Compensation
Awards, other than options, granted (in shares)	8,365
Vesting period	1 year
Share price (in dollars per share)	$ 59.77
Restricted Stock, Annual grant | Non-employee directors | Award Date of September 28, 2016
Stock-Based Compensation
Vested (in shares)				7,420
Restricted Stock, Annual grant | Non-employee directors | Award Date June 16, 2017
Stock-Based Compensation
Awards, other than options, granted (in shares)				10,384
Share price (in dollars per share)				$ 13.54
Restricted Stock, Initial grant | Non-employee directors | Award Date of September 28, 2016
Stock-Based Compensation
Annual vesting (as a percent)						33.33%
Vesting period						3 years
Vested (in shares)			4,944
Restricted Stock, Initial grant | Non-employee directors | Award Date October 30, 2017
Stock-Based Compensation
Annual vesting (as a percent)		33.33%
Vesting period		3 years

Stock-Based Compensation - Opti

Stock-Based Compensation - Options Valuation (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Stock-Based Compensation
Total Stock-based compensation expense (in dollars)	$ 2,180	$ 3,016	$ 4,125	$ 6,837
Stock options
Stock-Based Compensation
Total Stock-based compensation expense (in dollars)	$ 1,284	$ 879	$ 2,420	$ 1,569
Employee stock options
Valuation assumptions:
Expected volatility (as a percent)			58.40%	61.00%
Expected life			6 years 29 days	6 years 7 days
Risk-free interest rate (as a percent)			2.37%	2.24%
Weighted average grant-date fair value (in dollars per share)			$ 17.12	$ 7.88

Stock-Based Compensation - Op68

Stock-Based Compensation - Options Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Number of shares
Outstanding at beginning of period (in shares)	2,883,175
Granted (in shares)	420,250
Exercised (in shares)	(623,571)
Forfeited (in shares)	(77,213)
Outstanding at end of the period (in shares)	2,602,641
Options vested and expected to vest at end of the period (in shares)	2,602,641
Exercisable at end of period (in shares)	1,272,469
Weighted average exercise price
Outstanding at beginning of period (in dollars per share)	$ 9.26
Granted (in dollars per share)	30.44
Exercised (in dollars per share)	5.45
Forfeited (in dollars per share)	19.34
Outstanding at end of period (in dollars per share)	13.29
Options vested and expected to vest at end of period (in dollars per share)	13.29
Exercisable at end of period (in dollars per share)	$ 7.14
Weighted average remaining contractual term
Outstanding	7 years 4 months 24 days
Options vested and expected to vest at of the period	7 years 4 months 24 days
Exercisable	6 years
Aggregate intrinsic value
Outstanding (in dollars)	$ 131,534
Options vested and expected to vest at end of period (in dollars)	131,534
Exercisable (in dollars)	72,135
Additional disclosures
Intrinsic value of options exercised (in dollars)	27,946	$ 11,590
Proceeds from stock options exercised (in dollars)	$ 2,173	$ 179
Shares delivered as payment for exercise	31,678	362,403
Stock options exercised in cashless transaction	284,266	955,812
Gross cashless exercise value	$ 1,227	$ 3,186
Stock options
Additional disclosures
Total unrecognized compensation cost (in dollars)	$ 13,139
Weighted average period expected to be recognized	1 year 6 months

Stock-Based Compensation - Expe

Stock-Based Compensation - Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Stock-based compensation expense
Total Stock-based compensation expense (in dollars)	$ 2,180	$ 3,016	$ 4,125	$ 6,837
Cost of revenue - product
Stock-based compensation expense
Total Stock-based compensation expense (in dollars)	171	126	421	221
Cost of revenue - service
Stock-based compensation expense
Total Stock-based compensation expense (in dollars)	373	69	643	112
Research and development
Stock-based compensation expense
Total Stock-based compensation expense (in dollars)	323	216	519	320
Sales and marketing
Stock-based compensation expense
Total Stock-based compensation expense (in dollars)	392	165	771	282
General and administrative
Stock-based compensation expense
Total Stock-based compensation expense (in dollars)	$ 921	$ 2,440	$ 1,771	$ 5,902

Fair Value Measurements - Liabi

Fair Value Measurements - Liabilities (Details) - Recurring - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Fair Value Measurements
Acquisition-related contingent consideration - short-term	$ 82,207	$ 1,640
Acquisition-related contingent consideration - long-term		31,789
Liabilities		33,429
Level 3
Fair Value Measurements
Acquisition-related contingent consideration - short-term	$ 82,207	1,640
Acquisition-related contingent consideration - long-term		31,789
Liabilities		$ 33,429

Fair Value Measurements - Conti

Fair Value Measurements - Contingent consideration rollforward (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Change in fair value
Change in fair value of acquisition-related contingent consideration expense	$ 35,283	$ 16	$ 48,804	$ 37
Acquisition related contingent consideration
Change in fair value using significant unobservable inputs (Level 3):
Balance at beginning of period			33,429
Acquisition date fair value of Peak PACE contingent consideration			1,620
Fair value of cash consideration paid			(1,646)
Adjustments to fair value measurement			48,804
Balance at end of period	82,207		82,207
Medliance
Change in fair value
Change in fair value of acquisition-related contingent consideration expense			6
Payments of acquisition-related consideration			1,646
Fair value of contingent consideration	0		0
SinfoniaRx
Change in fair value
Change in fair value of acquisition-related contingent consideration expense	34,872		48,388
Fair value of contingent consideration	80,177		80,177
Peak PACE Solutions
Change in fair value
Change in fair value of acquisition-related contingent consideration expense	410		410
Fair value of contingent consideration	$ 2,030		$ 2,030

Commitments and Contingencies -

Commitments and Contingencies - Letter of Credit (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017	Sep. 30, 2015
2015 Revolving Line
Letter of Credit
Letter of credit outstanding	$ 400	$ 400	$ 500

Commitments and Contingencies73

Commitments and Contingencies - Employment Agreements and Annual Incentive Plan (Details)	Feb. 26, 2018
Employment agreements, Named executive officers, April 25, 2017
Employment Agreements and Annual Incentive Plan
Term of agreement	3 years

Retirement Plan (Details)

Retirement Plan (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Retirement Plan
Contributions by employer	$ 321	$ 148	$ 877	$ 284