Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2019 | Nov. 08, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 001-38600 | |
Entity Registrant Name | TENABLE HOLDINGS, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 47-5580846 | |
Entity Address, Address Line One | 7021 Columbia Gateway Drive | |
Entity Address, Address Line Two | Suite 500 | |
Entity Address, City or Town | Columbia | |
Entity Address, State or Province | MD | |
Entity Address, Postal Zip Code | 21046 | |
City Area Code | 410 | |
Local Phone Number | 872-0555 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | TENB | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Emerging Growth Company | true | |
Entity Small Business | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 98,187,608 | |
Entity Central Index Key | 0001660280 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Ex Transition Period | true |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 171,303 | $ 165,116 |
Short-term investments | 125,333 | 118,119 |
Accounts receivable (net of allowance for doubtful accounts of $557 and $188 at September 30, 2019 and December 31, 2018, respectively) | 81,201 | 68,261 |
Deferred commissions | 26,030 | 23,272 |
Prepaid expenses and other current assets | 21,126 | 22,020 |
Total current assets | 424,993 | 396,788 |
Property and equipment, net | 18,525 | 11,348 |
Deferred commissions (net of current portion) | 38,493 | 36,162 |
Operating lease right-of-use assets | 40,346 | 8,504 |
Other assets | 9,855 | 7,810 |
Total assets | 532,212 | 460,612 |
Current liabilities: | ||
Accounts payable | 795 | 171 |
Accrued expenses | 9,474 | 5,554 |
Accrued compensation | 24,244 | 29,594 |
Deferred revenue | 245,985 | 213,644 |
Operating lease liabilities | 3,970 | 4,262 |
Other current liabilities | 701 | 1,079 |
Total current liabilities | 285,169 | 254,304 |
Deferred revenue (net of current portion) | 83,390 | 76,259 |
Operating lease liabilities (net of current portion) | 37,788 | 6,055 |
Other liabilities | 2,677 | 2,231 |
Total liabilities | 409,024 | 338,849 |
Stockholders’ equity: | ||
Common stock (par value: $0.01; 500,000 shares authorized; 97,960 and 93,126 shares issued and outstanding at September 30, 2019 and December 31, 2018, respectively) | 980 | 931 |
Additional paid-in capital | 648,964 | 586,940 |
Accumulated other comprehensive income | 60 | 0 |
Accumulated deficit | (526,816) | (466,108) |
Total stockholders’ equity | 123,188 | 121,763 |
Total liabilities and stockholders’ equity | $ 532,212 | $ 460,612 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 557 | $ 188 |
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 97,960,000 | 93,126,000 |
Common stock, shares outstanding (in shares) | 97,960,000 | 93,126,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Statement [Abstract] | ||||
Revenue | $ 91,852 | $ 69,440 | $ 257,537 | $ 192,139 |
Cost of revenue | 15,245 | 12,161 | 42,389 | 30,768 |
Gross profit | 76,607 | 57,279 | 215,148 | 161,371 |
Operating expenses: | ||||
Sales and marketing | 56,699 | 44,550 | 165,403 | 125,964 |
Research and development | 20,763 | 20,553 | 64,396 | 55,529 |
General and administrative | 17,472 | 13,272 | 48,595 | 32,868 |
Total operating expenses | 94,934 | 78,375 | 278,394 | 214,361 |
Loss from operations | (18,327) | (21,096) | (63,246) | (52,990) |
Interest income, net | 1,527 | 894 | 4,677 | 845 |
Other expense, net | (240) | (185) | (576) | (605) |
Loss before income taxes | (17,040) | (20,387) | (59,145) | (52,750) |
Provision for income taxes | 600 | 482 | 1,563 | 1,157 |
Net loss | (17,640) | (20,869) | (60,708) | (53,907) |
Accretion of Series A and B redeemable convertible preferred stock | 0 | (55) | 0 | (434) |
Net loss attributable to common stockholders | $ (17,640) | $ (20,924) | $ (60,708) | $ (54,341) |
Net loss per share attributable to common stockholders, basic and diluted (in usd per share) | $ (0.18) | $ (0.28) | $ (0.64) | $ (1.34) |
Weighted-average shares used to compute net loss per share attributable to common stockholders, basic and diluted (in shares) | 96,709 | 74,261 | 95,433 | 40,688 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (17,640) | $ (20,869) | $ (60,708) | $ (53,907) |
Other comprehensive (loss) income, net of tax: | ||||
Unrealized (losses) gains on available-for-sale securities | (20) | 0 | 60 | 0 |
Other comprehensive (loss) income | (20) | 0 | 60 | 0 |
Comprehensive loss | $ (17,660) | $ (20,869) | $ (60,648) | $ (53,907) |
CONSOLIDATED STATEMENTS OF REDE
CONSOLIDATED STATEMENTS OF REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (DEFICIT) - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income | Accumulated Deficit | Series A Redeemable Convertible Preferred Stock | Series B Redeemable Convertible Preferred Stock |
Balance (in shares) at Dec. 31, 2017 | 15,848 | 39,538 | |||||
Balance at Dec. 31, 2017 | $ 49,935 | $ 227,800 | |||||
Redeemable Convertible Preferred Stock [Roll Forward] | |||||||
Accretion of Series A and B redeemable convertible preferred stock | $ 13 | $ 421 | |||||
Conversion of redeemable convertible preferred stock to common stock upon initial public offering (in shares) | (15,848) | (39,538) | |||||
Conversion of redeemable convertible preferred stock to common stock upon initial public offering | $ (49,948) | $ (228,221) | |||||
Balance (in shares) at Sep. 30, 2018 | 0 | 0 | |||||
Balance at Sep. 30, 2018 | $ 0 | $ 0 | |||||
Balance (in shares) at Dec. 31, 2017 | 24,472 | ||||||
Balance at Dec. 31, 2017 | $ (371,665) | $ 246 | $ 20,676 | $ 0 | $ (392,587) | ||
Increase (Decrease) in Stockholders' Deficit [Roll Forward] | |||||||
Accretion of Series A and B redeemable convertible preferred stock | (434) | (434) | |||||
Exercise of stock options (in shares) | 654 | ||||||
Exercise of stock options | 1,415 | $ 6 | 1,409 | ||||
Repurchase of common stock (in shares) | (7) | ||||||
Repurchase of common stock | (75) | $ (1) | (74) | ||||
Stock-based compensation | 14,259 | 14,259 | |||||
Issuance of common stock in connection with initial public offering, net of underwriting discounts and commissions and other offering expenses (in shares) | 12,535 | ||||||
Issuance of common stock in connection with initial public offering, net of underwriting discounts and commissions and other offering expenses | 264,799 | $ 125 | 264,674 | ||||
Conversion of redeemable convertible preferred stock to common stock upon initial public offering (in shares) | 55,386 | ||||||
Conversion of redeemable convertible preferred stock to common stock upon initial public offering | 278,169 | $ 554 | 277,615 | ||||
Other comprehensive income | 0 | ||||||
Net loss | (53,907) | (53,907) | |||||
Balance (in shares) at Sep. 30, 2018 | 93,040 | ||||||
Balance at Sep. 30, 2018 | 132,561 | $ 930 | 578,125 | 0 | (446,494) | ||
Balance (in shares) at Jun. 30, 2018 | 15,848 | 39,538 | |||||
Balance at Jun. 30, 2018 | $ 49,946 | $ 228,168 | |||||
Redeemable Convertible Preferred Stock [Roll Forward] | |||||||
Accretion of Series A and B redeemable convertible preferred stock | $ 2 | $ 53 | |||||
Conversion of redeemable convertible preferred stock to common stock upon initial public offering (in shares) | (15,848) | (39,538) | |||||
Conversion of redeemable convertible preferred stock to common stock upon initial public offering | $ (49,948) | $ (228,221) | |||||
Balance (in shares) at Sep. 30, 2018 | 0 | 0 | |||||
Balance at Sep. 30, 2018 | $ 0 | $ 0 | |||||
Balance (in shares) at Jun. 30, 2018 | 24,951 | ||||||
Balance at Jun. 30, 2018 | (398,724) | $ 250 | 26,651 | 0 | (425,625) | ||
Increase (Decrease) in Stockholders' Deficit [Roll Forward] | |||||||
Accretion of Series A and B redeemable convertible preferred stock | (55) | (55) | |||||
Exercise of stock options (in shares) | 168 | ||||||
Exercise of stock options | 405 | $ 1 | 404 | ||||
Stock-based compensation | 8,836 | 8,836 | |||||
Issuance of common stock in connection with initial public offering, net of underwriting discounts and commissions and other offering expenses (in shares) | 12,535 | ||||||
Issuance of common stock in connection with initial public offering, net of underwriting discounts and commissions and other offering expenses | 264,799 | $ 125 | 264,674 | ||||
Conversion of redeemable convertible preferred stock to common stock upon initial public offering (in shares) | 55,386 | ||||||
Conversion of redeemable convertible preferred stock to common stock upon initial public offering | 278,169 | $ 554 | 277,615 | ||||
Other comprehensive income | 0 | ||||||
Net loss | (20,869) | (20,869) | |||||
Balance (in shares) at Sep. 30, 2018 | 93,040 | ||||||
Balance at Sep. 30, 2018 | $ 132,561 | $ 930 | 578,125 | 0 | (446,494) | ||
Balance (in shares) at Dec. 31, 2018 | 0 | 0 | |||||
Balance at Dec. 31, 2018 | $ 0 | $ 0 | |||||
Balance (in shares) at Sep. 30, 2019 | 0 | 0 | |||||
Balance at Sep. 30, 2019 | $ 0 | $ 0 | |||||
Balance (in shares) at Dec. 31, 2018 | 93,126 | 93,126 | |||||
Balance at Dec. 31, 2018 | $ 121,763 | $ 931 | 586,940 | 0 | (466,108) | ||
Increase (Decrease) in Stockholders' Deficit [Roll Forward] | |||||||
Exercise of stock options (in shares) | 3,625 | 3,625 | |||||
Exercise of stock options | $ 15,448 | $ 36 | 15,412 | ||||
Vesting of restricted stock units (in shares) | 432 | ||||||
Vesting of restricted stock units | 0 | $ 5 | (5) | ||||
Issuance of common stock under employee stock purchase plan (in shares) | 777 | ||||||
Issuance of common stock under employee stock purchase plan | 15,129 | $ 8 | 15,121 | ||||
Stock-based compensation | 31,496 | 31,496 | |||||
Other comprehensive income | 60 | 60 | |||||
Net loss | $ (60,708) | (60,708) | |||||
Balance (in shares) at Sep. 30, 2019 | 97,960 | 97,960 | |||||
Balance at Sep. 30, 2019 | $ 123,188 | $ 980 | 648,964 | 60 | (526,816) | ||
Balance (in shares) at Jun. 30, 2019 | 0 | 0 | |||||
Balance at Jun. 30, 2019 | $ 0 | $ 0 | |||||
Balance (in shares) at Sep. 30, 2019 | 0 | 0 | |||||
Balance at Sep. 30, 2019 | $ 0 | $ 0 | |||||
Balance (in shares) at Jun. 30, 2019 | 96,808 | ||||||
Balance at Jun. 30, 2019 | 120,959 | $ 968 | 629,087 | 80 | (509,176) | ||
Increase (Decrease) in Stockholders' Deficit [Roll Forward] | |||||||
Exercise of stock options (in shares) | 383 | ||||||
Exercise of stock options | 2,721 | $ 4 | 2,717 | ||||
Vesting of restricted stock units (in shares) | 431 | ||||||
Vesting of restricted stock units | 0 | $ 5 | (5) | ||||
Issuance of common stock under employee stock purchase plan (in shares) | 338 | ||||||
Issuance of common stock under employee stock purchase plan | 6,550 | $ 3 | 6,547 | ||||
Stock-based compensation | 10,618 | 10,618 | |||||
Other comprehensive income | (20) | (20) | |||||
Net loss | $ (17,640) | (17,640) | |||||
Balance (in shares) at Sep. 30, 2019 | 97,960 | 97,960 | |||||
Balance at Sep. 30, 2019 | $ 123,188 | $ 980 | $ 648,964 | $ 60 | $ (526,816) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash flows from operating activities: | ||
Net loss | $ (60,708) | $ (53,907) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 4,604 | 4,580 |
Stock-based compensation | 31,191 | 14,206 |
Other | (787) | 771 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (13,309) | (8,190) |
Prepaid expenses and other current assets | 820 | 941 |
Deferred commissions | (5,089) | (2,708) |
Other assets | (2,386) | 315 |
Accounts payable and accrued expenses | 3,892 | 1,930 |
Accrued compensation | (5,350) | 1,252 |
Deferred revenue | 39,472 | 39,880 |
Other current liabilities | (195) | (4) |
Other liabilities | 173 | (71) |
Net cash used in operating activities | (7,672) | (1,005) |
Cash flows from investing activities: | ||
Purchases of property and equipment | (10,262) | (4,140) |
Purchases of short-term investments | (179,703) | (34,114) |
Sales and maturities of short-term investments | 174,485 | 0 |
Net cash used in investing activities | (15,480) | (38,254) |
Cash flows from financing activities: | ||
Proceeds from initial public offering, net of underwriting discounts and commissions | 0 | 268,531 |
Payments of costs related to initial public offering | 0 | (3,732) |
Principal payments under finance lease obligations | (12) | (389) |
Proceeds from stock issued in connection with the employee stock purchase plan | 15,129 | 0 |
Proceeds from the exercise of stock options | 15,448 | 1,415 |
Repurchases of common stock | 0 | (75) |
Net cash provided by financing activities | 30,565 | 265,750 |
Effect of exchange rate changes on cash and cash equivalents and restricted cash | (1,226) | (675) |
Net increase in cash and cash equivalents and restricted cash | 6,187 | 225,816 |
Cash and cash equivalents and restricted cash at beginning of period | 165,378 | 27,472 |
Cash and cash equivalents and restricted cash at end of period | 171,565 | 253,288 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 73 | 85 |
Cash paid for income taxes | 1,507 | 920 |
Supplemental cash flow information related to leases: | ||
Operating cash payments for operating leases | 3,297 | 3,098 |
Operating cash payments for finance leases | 5 | 29 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Asset retirement obligations | $ 121 | $ 67 |
Business and Summary of Signifi
Business and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and Summary of Significant Accounting Policies | Business and Summary of Significant Accounting Policies Business Description Tenable Holdings, Inc. (the “Company,” “we,” "us," or “our”) is a provider of Cyber Exposure solutions, which is a discipline for managing, measuring and comparing cybersecurity risk in the digital era. Our enterprise software platform enables broad visibility into an organization’s cyber exposure across the modern attack surface and deep insights that help organizations translate technical data into business insights to understand and reduce their cybersecurity risk. Basis of Presentation The accompanying consolidated financial statements include the accounts of Tenable Holdings, Inc. and our wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The consolidated financial statements have been prepared in conformity with United States generally accepted accounting principles (“GAAP”) for interim financial information. The consolidated statements are unaudited and should be read in conjunction with the consolidated financial statements and related notes included in our 2018 Annual Report on Form 10-K ("10-K") filed with the Securities and Exchange Commission on March 1, 2019. The consolidated financial statements have been prepared on a basis consistent with the audited annual consolidated financial statements included in the 10-K and, in the opinion of management, include all adjustments of a normal recurring nature necessary to fairly state our financial position, our results of operations, and cash flows. The results for the nine months ended September 30, 2019 are not necessarily indicative of the operating results expected for the year ending December 31, 2019 or any other future period. Initial Public Offering On July 30, 2018, we completed our initial public offering ("IPO"), in which we issued and sold 12,535,000 shares of common stock at a price to the public of $23.00 per share, including 1,635,000 shares of common stock purchased by our underwriters from the full exercise of their over-allotment option. All of the shares sold in the IPO were sold by the Company. We received net proceeds of $264.6 million after deducting underwriting discounts and commissions and other offering expenses. Upon the completion of our IPO, all 15,847,500 shares of our Series A Redeemable Convertible Preferred Stock ("Series A") and 39,538,354 shares of our Series B Redeemable Convertible Preferred Stock ("Series B") automatically converted into an aggregate of 55,385,854 shares of our common stock. Our Amended and Restated Certificate of Incorporation adopted in connection with the IPO authorizes a total of 500,000,000 shares of common stock and 10,000,000 shares of preferred stock. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. These estimates include, but are not limited to, the determination of the estimated economic life of perpetual licenses for revenue recognition, the estimated period of benefit for deferred commissions, useful lives of long-lived assets, the valuation of stock-based compensation, including the estimated underlying fair value of our common stock prior to our IPO, the incremental borrowing rate for operating leases, and the valuation of deferred tax assets. We base these estimates on historical experience and on various other assumptions that we believe to be reasonable. Actual results could differ significantly from these estimates. Revenue Recognition We recognize revenue in order to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which we expect to be entitled in exchange for those goods or services. To achieve this, we apply the following steps: • Identify the contract with a customer • Identify the performance obligations in the contract • Determine the transaction price • Allocate the transaction price to the performance obligations in the contract • Recognize revenue when or as performance obligations are satisfied We generate revenue from subscription arrangements for software and cloud-based solutions, perpetual licenses, maintenance associated with perpetual licenses, and professional services and other revenue. We begin to recognize revenue when control of our software or services is transferred to the customer, which for sales made through distributors is concurrent with the transfer to the end user. The following table presents a summary of revenue: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2019 2018 2019 2018 Subscription revenue $ 75,503 $ 53,511 $ 209,610 $ 146,568 Perpetual license and maintenance revenue 13,797 13,864 40,877 40,753 Professional services and other revenue 2,552 2,065 7,050 4,818 Revenue $ 91,852 $ 69,440 $ 257,537 $ 192,139 Subscription Revenue Subscription arrangements generally have annual or multi-year contractual terms for the use of our software or cloud solutions, including ongoing software updates and the ability to identify the latest cybersecurity vulnerabilities. Revenue is recognized ratably over the subscription term given the critical utility provided by the ongoing updates that are released throughout the contract period. Perpetual License and Maintenance Revenue Our perpetual licenses are generally sold with one or more years of maintenance, which include ongoing software updates and the ongoing ability to identify the latest cybersecurity vulnerabilities. Given the critical utility provided by the ongoing software updates and updated ability to identify network vulnerabilities included in maintenance, we combine the perpetual license and the maintenance into a single performance obligation. Perpetual license arrangements generally contain a material right related to the customer’s ability to renew maintenance at a price that is less than the initial license fee. We apply a practical alternative to allocating a portion of the transaction price to the material right performance obligation and estimate a hypothetical transaction price which includes fees for expected maintenance renewals based on the estimated economic life of the perpetual license contracts. We allocate the transaction price between the cybersecurity subscription provided in the initial contract and the material right related to expected contract renewals based on the hypothetical transaction price. We recognize the amount allocated to the combined license and maintenance performance obligation over the initial contractual period, which is generally one year . We recognize the amount allocated to the material right over the expected maintenance renewal period, which begins at the end of the initial contractual term and is generally four years . We have estimated the five -year economic life of perpetual license contracts based on historical contract attrition, expected renewal periods, the lifecycle of the our technology and other factors. While we believe that the estimates we have made are reasonable and appropriate, different assumptions and estimates could materially impact our reported financial results. Professional Services and Other Revenue Professional services and other revenue is primarily comprised of advisory services and training related to the deployment and optimization of our products. These services do not result in significant customization of our products. Professional services and other revenue is recognized as the services are performed. Contracts with Multiple Performance Obligations In cases where our contracts with customers contain multiple performance obligations, the contract transaction price is allocated on a relative standalone selling price basis. We typically determine standalone selling price based on observable selling prices of our products and services. Variable Consideration We record revenue from sales at the net sales price, which is the transaction price, including estimates of variable consideration when applicable. Certain of our customers may be entitled to receive credits and in certain circumstances, refunds, if service level commitments are not met. We have not historically experienced significant incidents affecting the ability to meet these service level commitments and any estimated refunds related to these agreements have not been material. Sales through our channel network of distributors and resellers are generally discounted as compared to the price that we would sell to an end user. Revenue for sales through our channel network is recorded net of any distributor or reseller margin. Concentrations We sell and market our products and services through our field sales force that works closely with our channel partners, which includes a network of distributors and resellers, in developing sales opportunities. We use a two-tiered channel model whereby we sell our products and services to our distributors, which in turn sell to resellers, which then sell to end-users. We derived 91% , 88% , 90% , and 87% of revenue through our channel network in the three months ended September 30, 2019 and 2018 and the nine months ended September 30, 2019 and 2018 , respectively. One of our distributors accounted for 43% of revenue in the three and nine months ended September 30, 2019 and 46% of revenue in the three and nine months ended September 30, 2018 . That same distributor accounted for 40% and 46% of accounts receivable at September 30, 2019 and December 31, 2018 , respectively. Contract Balances We generally bill our customers in advance and accounts receivable are recorded when we have the right to invoice the customer. Contract liabilities consist of deferred revenue and include customer billings and payments received in advance of performance under the contract. In the three months ended September 30, 2019 and 2018 and the nine months ended September 30, 2019 and 2018 , we recognized revenue of $84.6 million , $62.5 million , $184.3 million and $133.3 million , respectively, that was included in the deferred revenue balance at the beginning of each of the respective periods. Remaining Performance Obligations At September 30, 2019 , the future estimated revenue related to unsatisfied performance obligations was $333.4 million , with 74% expected to be recognized as revenue over the succeeding twelve months , and the remainder expected to be recognized over the four years thereafter. Investments We currently invest in commercial paper, corporate bonds and U.S. treasury and agency obligations. Our investments are classified as available-for-sale and recorded at fair value, with unrealized gains and losses reported in accumulated other comprehensive income within stockholders’ equity (deficit). We periodically review our investment portfolio to determine whether investments have indicators of possible impairment. Deferred Commissions Sales commissions, including related incremental fringe benefit costs, are considered to be incremental costs of obtaining a contract. Sales commissions on initial sales are not commensurate with sales commissions on contract renewals and therefore are recognized over an estimated period of benefit, which ranges between three and four years for subscription arrangements and five years for perpetual license arrangements. We estimate the period of benefit based on the expected contract term including renewal periods, the lifecycle of our technology, and other factors. Sales commissions on contract renewals are capitalized and amortized ratably over the contract term, with the exception of contracts with renewal periods that are one year or less, in which case the incremental costs are expensed as incurred. The following summarizes the activity of deferred incremental costs of obtaining a contract in the periods presented: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2019 2018 2019 2018 Beginning balance $ 61,866 $ 50,805 $ 59,434 $ 50,176 Capitalization of contract acquisition costs 9,612 7,138 24,846 16,985 Amortization of deferred contract acquisition costs (6,955 ) (5,059 ) (19,757 ) (14,277 ) Ending balance $ 64,523 $ 52,884 $ 64,523 $ 52,884 Amortization of deferred contract acquisition costs is included in sales and marketing expense in the consolidated statements of operations. Leases We early adopted Accounting Standards Codification Topic 842, Leases ("ASC 842"), as of January 1, 2018 using the modified retrospective method. We determine if an arrangement contains a lease and the classification of that lease, if applicable, at inception. We have elected to not recognize a lease liability or right-of-use ("ROU") asset for short-term leases (leases with a term of twelve months or less). For contracts with lease and non-lease components, we have elected to not allocate the contract consideration, and account for the lease and non-lease components as a single lease component. Additionally, we enter into arrangements to use shared office spaces and other facilities, and have determined that these arrangements do not contain leases as we do not have the right to use an identified asset. Operating leases are included in operating lease ROU assets, operating lease liabilities and operating lease liabilities (net of current portion) in our consolidated balance sheets. Finance leases are included in property and equipment, other current liabilities and other liabilities in our consolidated balance sheets. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments under the lease. Operating lease ROU assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. The implicit rate within our operating leases is generally not determinable and we use our incremental borrowing rate at the lease commencement date to determine the present value of lease payments. The determination of our incremental borrowing rate requires judgment and is estimated for each lease based on the rate we would have to pay for a collateralized loan with the same term and payments as the lease. We consider various factors, including our current borrowing rate, level of collateralization, estimated credit rating and currency of the lease. The operating lease ROU asset also includes any lease prepayments, offset by lease incentives. Certain of our leases include options to extend or terminate the lease. Options to extend or terminate a lease are considered in connection with calculating the ROU asset and related lease liability when it is reasonably certain that we will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the term of the lease. Recent Accounting Pronouncements Not Yet Adopted In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-13 — Financial Instruments-Credit Losses (Topic 326) : Measurement of Credit Losses on Financial Instruments . This ASU amends guidance on reporting credit losses for assets held at amortized cost basis and available-for-sale debt securities to require that credit losses on available-for-sale debt securities be presented as an allowance rather than as a write-down. The measurement of credit losses for newly recognized financial assets and subsequent changes in the allowance for credit losses are recorded in the statements of operations. This guidance is effective for us beginning January 1, 2020, and will be adopted using the modified-retrospective method. We are currently evaluating the potential impact of this standard on our consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-15 — Intangibles — Goodwill and Other — Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract . Under this ASU, implementation costs related to a cloud computing arrangement that is a service contract will be capitalized consistent with the requirements for capitalizing internal-use software development costs. The capitalized implementation costs are subsequently expensed over the term of the hosting arrangement. This guidance is effective for us beginning January 1, 2020, and will be adopted on a prospective basis. We are currently evaluating the potential impact of this standard. |
Cash and Cash Equivalents and S
Cash and Cash Equivalents and Short-Term Investments | 9 Months Ended |
Sep. 30, 2019 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents and Short-Term Investments | Cash and Cash Equivalents and Short-Term Investments At September 30, 2019 and December 31, 2018 , cash and cash equivalents excluded $0.3 million of restricted cash, which is related to an account established as collateral for a lease arrangement and was included in other assets on the consolidated balance sheets. The following tables summarize the amortized cost, unrealized gain and loss and estimated fair value of cash equivalents and short-term investments: September 30, 2019 (in thousands) Amortized Cost Unrealized Gain Unrealized Loss Estimated Fair Value Cash equivalents: Money market funds $ 28,043 $ — $ — $ 28,043 Commercial paper 4,496 — — 4,496 Total cash equivalents $ 32,539 $ — $ — $ 32,539 Short-term investments: Commercial paper $ 56,754 $ — $ — $ 56,754 Corporate bonds 15,993 32 — 16,025 U.S. Treasury and agency obligations 52,526 35 (7 ) 52,554 Total short-term investments $ 125,273 $ 67 $ (7 ) $ 125,333 December 31, 2018 (in thousands) Amortized Cost Unrealized Gain Unrealized Loss Estimated Fair Value Cash equivalents: Money market funds $ 38,022 $ — $ — $ 38,022 Total cash equivalents $ 38,022 $ — $ — $ 38,022 Short-term investments: Commercial paper $ 79,634 $ — $ — $ 79,634 Corporate bonds 16,119 — — 16,119 U.S. Treasury and agency obligations 22,366 — — 22,366 Total short-term investments $ 118,119 $ — $ — $ 118,119 For any investments that were in an unrealized loss position, we considered if we intended on selling the investments before maturity and if it is more-likely-than-not that we would have to sell the security before the recovery of the amortized cost basis. We concluded that there were no other-than-temporary impairments at September 30, 2019 . At September 30, 2019 and December 31, 2018 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements We measure certain financial instruments at fair value using a fair value hierarchy. In the hierarchy, assets are classified based on the lowest level inputs used in valuation into the following categories: • Level 1 — Quoted prices in active markets for identical assets and liabilities; • Level 2 — Observable inputs including quoted market prices for similar assets and liabilities in active markets, quoted prices for identical assets and liabilities in inactive markets, or inputs that are corroborated by observable market data; and • Level 3 — Unobservable inputs. The following tables summarize assets that are measured at fair value on a recurring basis: September 30, 2019 (in thousands) Level 1 Level 2 Level 3 Total Cash and cash equivalents Money market funds $ 28,043 $ — $ — $ 28,043 Commercial paper — 4,496 — 4,496 $ 28,043 $ 4,496 $ — $ 32,539 Short-term investments Commercial paper $ — $ 56,754 $ — $ 56,754 Corporate bonds — 16,025 — 16,025 U.S. Treasury and agency obligations — 52,554 — 52,554 $ — $ 125,333 $ — $ 125,333 December 31, 2018 (in thousands) Level 1 Level 2 Level 3 Total Cash and cash equivalents Money market funds $ 38,022 $ — $ — $ 38,022 $ 38,022 $ — $ — $ 38,022 Short-term investments Commercial paper $ — $ 79,634 $ — $ 79,634 Corporate bonds — 16,119 — 16,119 U.S. Treasury and agency obligations — 22,366 — 22,366 $ — $ 118,119 $ — $ 118,119 We did not have any liabilities measured and recorded at fair value at September 30, 2019 or December 31, 2018 . |
Property and Equipment, Net
Property and Equipment, Net | 9 Months Ended |
Sep. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Property and Equipment, Net Property and equipment, net consisted of the following: (in thousands) September 30, 2019 December 31, 2018 Computer software and equipment $ 20,221 $ 13,038 Furniture and fixtures 3,738 2,376 Leasehold improvements 9,230 7,266 Right-of-use assets under finance leases 1,866 1,854 Total 35,055 24,534 Less: accumulated depreciation and amortization (16,530 ) (13,186 ) Property and equipment, net $ 18,525 $ 11,348 Depreciation and amortization related to property and equipment was $1.4 million , $1.4 million , $4.2 million and $4.1 million in the three months ended September 30, 2019 and 2018 and the nine months ended September 30, 2019 and 2018 , respectively. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | Leases We have operating leases for office facilities and finance leases for computer and office equipment. Our leases have remaining terms of less than one year to just over twelve years , some of which include one or more options to renew, with renewal terms up to five years and some of which include options to terminate the leases within the next three to six years . The ROU assets and liabilities at September 30, 2019 assume the option to early terminate one of our leases in 2021 and one of our leases in 2025. During the three months ended September 30, 2019 we took possession of the leased office space for our future headquarters in Columbia, Maryland. We recorded an initial ROU asset of $32.3 million and a lease liability of $32.0 million, with a lease term of 147 months . Future lease payments related to this lease are $67.7 million and the lease payments are expected to commence in the first quarter of 2021. The components of lease expense were as follows: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2019 2018 2019 2018 Operating lease cost $ 1,763 $ 960 $ 3,844 $ 2,730 Finance lease cost Amortization of ROU assets $ 157 $ 155 $ 465 $ 459 Interest on lease liabilities 2 10 5 29 Total finance lease cost $ 159 $ 165 $ 470 $ 488 Rent expense for short-term leases in the three and nine months ended September 30, 2019 and 2018 was not material. Supplemental information related to leases was as follows: September 30, 2019 December 31, 2018 Operating leases Weighted average remaining lease term 10.2 years 3.1 years Weighted average discount rate 5.9% 7.1% Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2019 2018 2019 2018 ROU assets obtained in exchange for lease obligations Operating leases $ 32,292 $ 263 $ 34,490 $ 1,525 Finance leases — 4 11 4 Maturities of operating lease liabilities at September 30, 2019 were as follows: (in thousands) Year ending December 31, 2019 (1) $ 994 2020 4,088 2021 7,348 2022 6,673 2023 6,658 Thereafter 52,599 Total lease payments 78,360 Less: Imputed interest (22,589 ) Less: Tenant incentives (14,013 ) Total $ 41,758 _______________ (1) Represents the three months ending December 31, 2019. |
Leases | Leases We have operating leases for office facilities and finance leases for computer and office equipment. Our leases have remaining terms of less than one year to just over twelve years , some of which include one or more options to renew, with renewal terms up to five years and some of which include options to terminate the leases within the next three to six years . The ROU assets and liabilities at September 30, 2019 assume the option to early terminate one of our leases in 2021 and one of our leases in 2025. During the three months ended September 30, 2019 we took possession of the leased office space for our future headquarters in Columbia, Maryland. We recorded an initial ROU asset of $32.3 million and a lease liability of $32.0 million, with a lease term of 147 months . Future lease payments related to this lease are $67.7 million and the lease payments are expected to commence in the first quarter of 2021. The components of lease expense were as follows: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2019 2018 2019 2018 Operating lease cost $ 1,763 $ 960 $ 3,844 $ 2,730 Finance lease cost Amortization of ROU assets $ 157 $ 155 $ 465 $ 459 Interest on lease liabilities 2 10 5 29 Total finance lease cost $ 159 $ 165 $ 470 $ 488 Rent expense for short-term leases in the three and nine months ended September 30, 2019 and 2018 was not material. Supplemental information related to leases was as follows: September 30, 2019 December 31, 2018 Operating leases Weighted average remaining lease term 10.2 years 3.1 years Weighted average discount rate 5.9% 7.1% Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2019 2018 2019 2018 ROU assets obtained in exchange for lease obligations Operating leases $ 32,292 $ 263 $ 34,490 $ 1,525 Finance leases — 4 11 4 Maturities of operating lease liabilities at September 30, 2019 were as follows: (in thousands) Year ending December 31, 2019 (1) $ 994 2020 4,088 2021 7,348 2022 6,673 2023 6,658 Thereafter 52,599 Total lease payments 78,360 Less: Imputed interest (22,589 ) Less: Tenant incentives (14,013 ) Total $ 41,758 _______________ (1) Represents the three months ending December 31, 2019. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt On May 4, 2017, we entered into a $25.0 million revolving credit facility (“Credit Facility”) with Silicon Valley Bank, which is available for use until May 4, 2020. There were no borrowings under the Credit Facility during the nine months ended September 30, 2019 or in 2018 . |
Redeemable Convertible Preferre
Redeemable Convertible Preferred Stock and Common Stock | 9 Months Ended |
Sep. 30, 2019 | |
Stockholders' Equity Note [Abstract] | |
Redeemable Convertible Preferred Stock and Common Stock | Redeemable Convertible Preferred Stock and Common Stock Redeemable Convertible Preferred Stock In October 2012, Tenable, Inc. (now a wholly owned subsidiary of Tenable Holdings, Inc.) issued 15,847,500 shares of Series A redeemable convertible preferred stock. In December 2015, we issued 15,847,500 shares, par value of $0.01 , of Series A redeemable convertible preferred stock ("Series A") in exchange for Series A redeemable convertible preferred stock of Tenable, Inc. in connection with a recapitalization. This exchange was made on a one for one basis. In addition, we authorized 42,000,000 shares and issued 39,538,354 shares, par value of $0.01 , of Series B redeemable convertible preferred stock ("Series B"). Upon completion of our IPO, Series A and Series B (together, the “Redeemable Convertible Preferred Stock”) automatically converted into an aggregate of 55,385,854 shares of our common stock. We accreted the Redeemable Convertible Preferred Stock to the redemption price at the redemption date using the effective interest method. Upon completion of our IPO, the accretion rights of the Redeemable Convertible Preferred Stock were terminated. Upon the completion of our IPO, we filed an Amended and Restated Certificate of Incorporation, authorizing a total of 500,000,000 shares of common stock and 10,000,000 shares of preferred stock. There were no shares of preferred stock issued or outstanding at September 30, 2019 or December 31, 2018 . Common Stock The voting, dividend, and liquidation rights of common stockholders are subject to, and qualified by, the rights of preferred stockholders. The common stockholders are entitled to receive dividends when, as and if, declared by the Board of Directors, subject to preferential dividend rights of preferred stockholders. Upon dissolution or liquidation, our common stockholders will be entitled to receive all assets available for distribution to stockholders, subject to any preferential rights of preferred stockholders. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation In 2018, our Board of Directors adopted, and our stockholders approved, our 2018 Equity Incentive Plan ("2018 Plan"), which became effective upon the execution of the underwriting agreement related to our IPO, and no further grants were made under our 2016 Stock Incentive Plan ("2016 Plan"). Any shares subject to stock options or other stock awards granted under our 2016 Plan, 2012 Stock Incentive Plan or 2002 Stock Incentive Plan that would have otherwise returned to such plan (such as upon the expiration or termination of a stock award prior to vesting) were added to, and are available for issuance under, our 2018 Plan. In addition, the number of shares of our common stock reserved for issuance under our 2018 Plan automatically increases on January 1 of each year, beginning on January 1, 2019 and continuing through and including January 1, 2028, by 5% of the total number of shares of our capital stock outstanding on December 31 of the preceding calendar year, or a lesser number of shares determined by our Board of Directors. At September 30, 2019 , there were 15,052,780 shares available for grant under the 2018 Plan. Stock options granted under our stock incentive plans have a maximum term of ten years , generally vest over a period of three to four years , and the exercise price cannot be less than the fair market value on the date of grant. Restricted stock units ("RSUs") granted under our stock incentive plans generally vest over a period of two to four years. Stock-based compensation expense included in the consolidated statements of operations was as follows: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2019 2018 2019 2018 Cost of revenue $ 694 $ 692 $ 2,088 $ 883 Sales and marketing 3,521 2,707 11,102 3,984 Research and development 2,124 2,427 6,595 3,594 General and administrative 4,160 2,957 11,406 5,745 Total stock-based compensation expense $ 10,499 $ 8,783 $ 31,191 $ 14,206 At September 30, 2019 , the total unrecognized stock-based compensation expense related to outstanding stock options was $29.8 million , which is expected to be recognized over an estimated remaining weighted average period of 2.4 years . At September 30, 2019 , the unrecognized stock-based compensation expense related to unvested awards of restricted stock was $2.1 million , which is expected to be recognized over an estimated remaining period of 1.3 years . At September 30, 2019 , the unrecognized stock-based compensation expense related to unvested restricted stock units was $62.4 million , which is expected to be recognized over an estimated remaining weighted average period of 3.2 years . Stock Options A summary of our stock option activity is presented below: (in thousands, except for per share data and years) Number of Shares Weighted Average Exercise Price Weighted-Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding at December 31, 2018 19,219 $ 7.78 8.0 $ 277,114 Granted — — Exercised (3,625) 4.26 Forfeited/canceled (1,652) 10.03 Outstanding at September 30, 2019 13,942 8.43 7.5 194,654 Exercisable at September 30, 2019 6,470 5.80 6.7 107,297 At September 30, 2019 , there were 13.9 million stock options that were vested and expected to vest. Restricted Stock and Restricted Stock Units A summary of our restricted stock and restricted stock units activity is presented below: Restricted Stock Restricted Stock Units (in thousands, except for per share data) Number of Shares Weighted Average Grant Date Fair Value Number Weighted Unvested balance at December 31, 2018 890 $ 4.25 1,129 $ 18.90 Granted — — 2,454 28.10 Vested (296 ) 4.25 (432 ) 17.20 Forfeited — — (291 ) 23.96 Unvested balance at September 30, 2019 594 4.25 2,860 26.54 The grant date fair value was based on the estimated fair value of our common stock on the date of grant. RSUs granted before July 30, 2018 vest upon the satisfaction of both service-based and performance-based vesting conditions. The performance-based condition was satisfied upon the completion of our IPO. RSUs granted after July 30, 2018 vest upon the satisfaction of a service-based vesting condition. Compensation expense for restricted stock and RSUs is recognized on a straight-line basis over the requisite service period, with the exception of RSUs that include performance-based vesting conditions, which are expensed using the accelerated attribution method. 2018 Employee Stock Purchase Plan In 2018, our Board of Directors adopted, and our stockholders approved, our 2018 Employee Stock Purchase Plan ("2018 ESPP"). Our 2018 ESPP became effective upon the execution of the underwriting agreement related to our IPO. The number of shares of our common stock reserved for issuance under our 2018 ESPP automatically increases on January 1 of each year, beginning on January 1, 2019 and continuing through and including January 1, 2028, by the lesser of (1) 1.5% of the total number of shares of our common stock outstanding on December 31 of the preceding calendar year, (2) 8,000,000 shares of our common stock or (3) such lesser number of shares of common stock as determined by our Board of Directors. At September 30, 2019 , there were 4,620,087 shares reserved for issuance under the 2018 ESPP. Under our 2018 ESPP, employees may set aside up to 15% of their gross earnings, on an after-tax basis, to purchase our common stock at a discounted price, which is calculated at 85% of the lower of the fair market value of our common stock on the first day of an offering or on the date of purchase. The 2018 ESPP permits offerings up to 27 months in duration, with one or more purchase periods in each offering. Additionally, in cases where the fair market value of a share of our common stock on the first day of a new purchase period within an offering is less than or equal to the fair market value of a share of our common stock at the beginning of the offering, that offering will be terminated and participants will be automatically enrolled in a new offering with a new 24 month duration, with purchase periods every six months. In the nine months ended September 30, 2019 , employees purchased 776,809 shares of our common stock at a weighted average price of $19.48 per share , resulting in cash proceeds to us of $15.1 million . At September 30, 2019 , there was $1.5 million of employee contributions to the 2018 ESPP included in accrued compensation. The unrecognized stock-based compensation expense related to our 2018 ESPP was $11.3 million , which is expected to be recognized over the remaining offering period of 1.9 years . The fair value of the 2018 ESPP purchase rights was estimated on the grant date using a Black-Scholes option-pricing model and the following assumptions: Expected term (in years) 0.5 — 2.1 Expected volatility 31.9% — 44.6% Risk-free interest rate 1.5% — 2.7% Expected dividend yield — |
Net Loss Per Share Attributable
Net Loss Per Share Attributable to Common Stockholders | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share Attributable to Common Stockholders | Net Loss Per Share Attributable to Common Stockholders The following table sets forth the computation of basic and diluted net loss per share attributable to common stockholders: Three Months Ended September 30, Nine Months Ended September 30, (in thousands, except per share data) 2019 2018 2019 2018 Net loss attributable to common stockholders $ (17,640 ) $ (20,924 ) $ (60,708 ) $ (54,341 ) Weighted-average shares used to compute net loss per share attributable to common stockholders, basic and diluted 96,709 74,261 95,433 40,688 Net loss per share attributable to common stockholders, basic and diluted $ (0.18 ) $ (0.28 ) $ (0.64 ) $ (1.34 ) The following potentially dilutive securities have been excluded from the diluted per share calculations because they would have been antidilutive: Three and Nine Months Ended September 30, (in thousands) 2019 2018 Stock options 13,942 19,387 Restricted stock units 2,860 1,050 Restricted shares 594 989 Shares to be issued under the 2018 ESPP 64 118 Total 17,460 21,544 |
Geographic Information
Geographic Information | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Geographic Information | Geographic Information We operate as one operating segment. Our Chief Executive Officer, who is our chief operating decision maker, reviews financial information on a consolidated basis for purposes of making operating decisions, allocating resources, and evaluating financial performance. Revenue by region, based on the address of the end user as specified in our subscription, license or service agreements, was as follows: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2019 2018 2019 2018 Americas $ 62,413 $ 49,391 $ 177,392 $ 137,868 Europe, Middle East and Africa 19,968 14,002 56,123 38,218 Asia Pacific 9,471 6,047 24,022 16,053 Revenue $ 91,852 $ 69,440 $ 257,537 $ 192,139 Customers located in the United States accounted for 63% , 66% , 64% , and 67% of revenue in the three months ended September 30, 2019 and 2018 and the nine months ended September 30, 2019 and 2018 , respectively. No other country accounted for 10% or more of revenue in the periods presented. Our property and equipment, net by geographic area is summarized as follows: (in thousands) September 30, 2019 December 31, 2018 United States $ 13,612 $ 6,487 International 4,913 4,861 Property and equipment, net $ 18,525 $ 11,348 |
Business and Summary of Signi_2
Business and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Consolidations | The accompanying consolidated financial statements include the accounts of Tenable Holdings, Inc. and our wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. |
Basis of Accounting | The consolidated financial statements have been prepared in conformity with United States generally accepted accounting principles (“GAAP”) for interim financial information. The consolidated statements are unaudited and should be read in conjunction with the consolidated financial statements and related notes included in our 2018 Annual Report on Form 10-K ("10-K") filed with the Securities and Exchange Commission on March 1, 2019. The consolidated financial statements have been prepared on a basis consistent with the audited annual consolidated financial statements included in the 10-K and, in the opinion of management, include all adjustments of a normal recurring nature necessary to fairly state our financial position, our results of operations, and cash flows. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. These estimates include, but are not limited to, the determination of the estimated economic life of perpetual licenses for revenue recognition, the estimated period of benefit for deferred commissions, useful lives of long-lived assets, the valuation of stock-based compensation, including the estimated underlying fair value of our common stock prior to our IPO, the incremental borrowing rate for operating leases, and the valuation of deferred tax assets. We base these estimates on historical experience and on various other assumptions that we believe to be reasonable. Actual results could differ significantly from these estimates. |
Revenue Recognition | Revenue Recognition We recognize revenue in order to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which we expect to be entitled in exchange for those goods or services. To achieve this, we apply the following steps: • Identify the contract with a customer • Identify the performance obligations in the contract • Determine the transaction price • Allocate the transaction price to the performance obligations in the contract • Recognize revenue when or as performance obligations are satisfied We generate revenue from subscription arrangements for software and cloud-based solutions, perpetual licenses, maintenance associated with perpetual licenses, and professional services and other revenue. We begin to recognize revenue when control of our software or services is transferred to the customer, which for sales made through distributors is concurrent with the transfer to the end user. The following table presents a summary of revenue: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2019 2018 2019 2018 Subscription revenue $ 75,503 $ 53,511 $ 209,610 $ 146,568 Perpetual license and maintenance revenue 13,797 13,864 40,877 40,753 Professional services and other revenue 2,552 2,065 7,050 4,818 Revenue $ 91,852 $ 69,440 $ 257,537 $ 192,139 Subscription Revenue Subscription arrangements generally have annual or multi-year contractual terms for the use of our software or cloud solutions, including ongoing software updates and the ability to identify the latest cybersecurity vulnerabilities. Revenue is recognized ratably over the subscription term given the critical utility provided by the ongoing updates that are released throughout the contract period. Perpetual License and Maintenance Revenue Our perpetual licenses are generally sold with one or more years of maintenance, which include ongoing software updates and the ongoing ability to identify the latest cybersecurity vulnerabilities. Given the critical utility provided by the ongoing software updates and updated ability to identify network vulnerabilities included in maintenance, we combine the perpetual license and the maintenance into a single performance obligation. Perpetual license arrangements generally contain a material right related to the customer’s ability to renew maintenance at a price that is less than the initial license fee. We apply a practical alternative to allocating a portion of the transaction price to the material right performance obligation and estimate a hypothetical transaction price which includes fees for expected maintenance renewals based on the estimated economic life of the perpetual license contracts. We allocate the transaction price between the cybersecurity subscription provided in the initial contract and the material right related to expected contract renewals based on the hypothetical transaction price. We recognize the amount allocated to the combined license and maintenance performance obligation over the initial contractual period, which is generally one year . We recognize the amount allocated to the material right over the expected maintenance renewal period, which begins at the end of the initial contractual term and is generally four years . We have estimated the five -year economic life of perpetual license contracts based on historical contract attrition, expected renewal periods, the lifecycle of the our technology and other factors. While we believe that the estimates we have made are reasonable and appropriate, different assumptions and estimates could materially impact our reported financial results. Professional Services and Other Revenue Professional services and other revenue is primarily comprised of advisory services and training related to the deployment and optimization of our products. These services do not result in significant customization of our products. Professional services and other revenue is recognized as the services are performed. Contracts with Multiple Performance Obligations In cases where our contracts with customers contain multiple performance obligations, the contract transaction price is allocated on a relative standalone selling price basis. We typically determine standalone selling price based on observable selling prices of our products and services. Variable Consideration We record revenue from sales at the net sales price, which is the transaction price, including estimates of variable consideration when applicable. Certain of our customers may be entitled to receive credits and in certain circumstances, refunds, if service level commitments are not met. We have not historically experienced significant incidents affecting the ability to meet these service level commitments and any estimated refunds related to these agreements have not been material. Sales through our channel network of distributors and resellers are generally discounted as compared to the price that we would sell to an end user. Revenue for sales through our channel network is recorded net of any distributor or reseller margin. Concentrations We sell and market our products and services through our field sales force that works closely with our channel partners, which includes a network of distributors and resellers, in developing sales opportunities. We use a two-tiered channel model whereby we sell our products and services to our distributors, which in turn sell to resellers, which then sell to end-users. We derived 91% , 88% , 90% , and 87% of revenue through our channel network in the three months ended September 30, 2019 and 2018 and the nine months ended September 30, 2019 and 2018 , respectively. One of our distributors accounted for 43% of revenue in the three and nine months ended September 30, 2019 and 46% of revenue in the three and nine months ended September 30, 2018 . That same distributor accounted for 40% and 46% of accounts receivable at September 30, 2019 and December 31, 2018 , respectively. Contract Balances |
Investments | Investments We currently invest in commercial paper, corporate bonds and U.S. treasury and agency obligations. Our investments are classified as available-for-sale and recorded at fair value, with unrealized gains and losses reported in accumulated other comprehensive income within stockholders’ equity (deficit). We periodically review our investment portfolio to determine whether investments have indicators of possible impairment. |
Leases | Leases We early adopted Accounting Standards Codification Topic 842, Leases ("ASC 842"), as of January 1, 2018 using the modified retrospective method. We determine if an arrangement contains a lease and the classification of that lease, if applicable, at inception. We have elected to not recognize a lease liability or right-of-use ("ROU") asset for short-term leases (leases with a term of twelve months or less). For contracts with lease and non-lease components, we have elected to not allocate the contract consideration, and account for the lease and non-lease components as a single lease component. Additionally, we enter into arrangements to use shared office spaces and other facilities, and have determined that these arrangements do not contain leases as we do not have the right to use an identified asset. Operating leases are included in operating lease ROU assets, operating lease liabilities and operating lease liabilities (net of current portion) in our consolidated balance sheets. Finance leases are included in property and equipment, other current liabilities and other liabilities in our consolidated balance sheets. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments under the lease. Operating lease ROU assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. The implicit rate within our operating leases is generally not determinable and we use our incremental borrowing rate at the lease commencement date to determine the present value of lease payments. The determination of our incremental borrowing rate requires judgment and is estimated for each lease based on the rate we would have to pay for a collateralized loan with the same term and payments as the lease. We consider various factors, including our current borrowing rate, level of collateralization, estimated credit rating and currency of the lease. The operating lease ROU asset also includes any lease prepayments, offset by lease incentives. Certain of our leases include options to extend or terminate the lease. Options to extend or terminate a lease are considered in connection with calculating the ROU asset and related lease liability when it is reasonably certain that we will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the term of the lease. |
Recent Accounting Pronouncements Not Yet Adopted | Recent Accounting Pronouncements Not Yet Adopted In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-13 — Financial Instruments-Credit Losses (Topic 326) : Measurement of Credit Losses on Financial Instruments . This ASU amends guidance on reporting credit losses for assets held at amortized cost basis and available-for-sale debt securities to require that credit losses on available-for-sale debt securities be presented as an allowance rather than as a write-down. The measurement of credit losses for newly recognized financial assets and subsequent changes in the allowance for credit losses are recorded in the statements of operations. This guidance is effective for us beginning January 1, 2020, and will be adopted using the modified-retrospective method. We are currently evaluating the potential impact of this standard on our consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-15 — Intangibles — Goodwill and Other — Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract . Under this ASU, implementation costs related to a cloud computing arrangement that is a service contract will be capitalized consistent with the requirements for capitalizing internal-use software development costs. The capitalized implementation costs are subsequently expensed over the term of the hosting arrangement. This guidance is effective for us beginning January 1, 2020, and will be adopted on a prospective basis. We are currently evaluating the potential impact of this standard. |
Business and Summary of Signi_3
Business and Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of revenue | The following table presents a summary of revenue: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2019 2018 2019 2018 Subscription revenue $ 75,503 $ 53,511 $ 209,610 $ 146,568 Perpetual license and maintenance revenue 13,797 13,864 40,877 40,753 Professional services and other revenue 2,552 2,065 7,050 4,818 Revenue $ 91,852 $ 69,440 $ 257,537 $ 192,139 |
Activity of deferred contract costs | The following summarizes the activity of deferred incremental costs of obtaining a contract in the periods presented: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2019 2018 2019 2018 Beginning balance $ 61,866 $ 50,805 $ 59,434 $ 50,176 Capitalization of contract acquisition costs 9,612 7,138 24,846 16,985 Amortization of deferred contract acquisition costs (6,955 ) (5,059 ) (19,757 ) (14,277 ) Ending balance $ 64,523 $ 52,884 $ 64,523 $ 52,884 |
Cash and Cash Equivalents and_2
Cash and Cash Equivalents and Short-Term Investments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Cash and Cash Equivalents [Abstract] | |
Summary of amortized cost, unrealized gain and loss and estimated fair value | The following tables summarize the amortized cost, unrealized gain and loss and estimated fair value of cash equivalents and short-term investments: September 30, 2019 (in thousands) Amortized Cost Unrealized Gain Unrealized Loss Estimated Fair Value Cash equivalents: Money market funds $ 28,043 $ — $ — $ 28,043 Commercial paper 4,496 — — 4,496 Total cash equivalents $ 32,539 $ — $ — $ 32,539 Short-term investments: Commercial paper $ 56,754 $ — $ — $ 56,754 Corporate bonds 15,993 32 — 16,025 U.S. Treasury and agency obligations 52,526 35 (7 ) 52,554 Total short-term investments $ 125,273 $ 67 $ (7 ) $ 125,333 December 31, 2018 (in thousands) Amortized Cost Unrealized Gain Unrealized Loss Estimated Fair Value Cash equivalents: Money market funds $ 38,022 $ — $ — $ 38,022 Total cash equivalents $ 38,022 $ — $ — $ 38,022 Short-term investments: Commercial paper $ 79,634 $ — $ — $ 79,634 Corporate bonds 16,119 — — 16,119 U.S. Treasury and agency obligations 22,366 — — 22,366 Total short-term investments $ 118,119 $ — $ — $ 118,119 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets measured at fair value on recurring basis | The following tables summarize assets that are measured at fair value on a recurring basis: September 30, 2019 (in thousands) Level 1 Level 2 Level 3 Total Cash and cash equivalents Money market funds $ 28,043 $ — $ — $ 28,043 Commercial paper — 4,496 — 4,496 $ 28,043 $ 4,496 $ — $ 32,539 Short-term investments Commercial paper $ — $ 56,754 $ — $ 56,754 Corporate bonds — 16,025 — 16,025 U.S. Treasury and agency obligations — 52,554 — 52,554 $ — $ 125,333 $ — $ 125,333 December 31, 2018 (in thousands) Level 1 Level 2 Level 3 Total Cash and cash equivalents Money market funds $ 38,022 $ — $ — $ 38,022 $ 38,022 $ — $ — $ 38,022 Short-term investments Commercial paper $ — $ 79,634 $ — $ 79,634 Corporate bonds — 16,119 — 16,119 U.S. Treasury and agency obligations — 22,366 — 22,366 $ — $ 118,119 $ — $ 118,119 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment, net | Property and equipment, net consisted of the following: (in thousands) September 30, 2019 December 31, 2018 Computer software and equipment $ 20,221 $ 13,038 Furniture and fixtures 3,738 2,376 Leasehold improvements 9,230 7,266 Right-of-use assets under finance leases 1,866 1,854 Total 35,055 24,534 Less: accumulated depreciation and amortization (16,530 ) (13,186 ) Property and equipment, net $ 18,525 $ 11,348 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Components of leases | Supplemental information related to leases was as follows: September 30, 2019 December 31, 2018 Operating leases Weighted average remaining lease term 10.2 years 3.1 years Weighted average discount rate 5.9% 7.1% Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2019 2018 2019 2018 ROU assets obtained in exchange for lease obligations Operating leases $ 32,292 $ 263 $ 34,490 $ 1,525 Finance leases — 4 11 4 The components of lease expense were as follows: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2019 2018 2019 2018 Operating lease cost $ 1,763 $ 960 $ 3,844 $ 2,730 Finance lease cost Amortization of ROU assets $ 157 $ 155 $ 465 $ 459 Interest on lease liabilities 2 10 5 29 Total finance lease cost $ 159 $ 165 $ 470 $ 488 |
Schedule of maturities of operating lease liabilities | Maturities of operating lease liabilities at September 30, 2019 were as follows: (in thousands) Year ending December 31, 2019 (1) $ 994 2020 4,088 2021 7,348 2022 6,673 2023 6,658 Thereafter 52,599 Total lease payments 78,360 Less: Imputed interest (22,589 ) Less: Tenant incentives (14,013 ) Total $ 41,758 _______________ (1) Represents the three months ending December 31, 2019. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock-based compensation expense | Stock-based compensation expense included in the consolidated statements of operations was as follows: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2019 2018 2019 2018 Cost of revenue $ 694 $ 692 $ 2,088 $ 883 Sales and marketing 3,521 2,707 11,102 3,984 Research and development 2,124 2,427 6,595 3,594 General and administrative 4,160 2,957 11,406 5,745 Total stock-based compensation expense $ 10,499 $ 8,783 $ 31,191 $ 14,206 |
Stock option activity | A summary of our stock option activity is presented below: (in thousands, except for per share data and years) Number of Shares Weighted Average Exercise Price Weighted-Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding at December 31, 2018 19,219 $ 7.78 8.0 $ 277,114 Granted — — Exercised (3,625) 4.26 Forfeited/canceled (1,652) 10.03 Outstanding at September 30, 2019 13,942 8.43 7.5 194,654 Exercisable at September 30, 2019 6,470 5.80 6.7 107,297 |
Summary of restricted stock and restricted stock units | A summary of our restricted stock and restricted stock units activity is presented below: Restricted Stock Restricted Stock Units (in thousands, except for per share data) Number of Shares Weighted Average Grant Date Fair Value Number Weighted Unvested balance at December 31, 2018 890 $ 4.25 1,129 $ 18.90 Granted — — 2,454 28.10 Vested (296 ) 4.25 (432 ) 17.20 Forfeited — — (291 ) 23.96 Unvested balance at September 30, 2019 594 4.25 2,860 26.54 |
ESPP valuation assumptions | The fair value of the 2018 ESPP purchase rights was estimated on the grant date using a Black-Scholes option-pricing model and the following assumptions: Expected term (in years) 0.5 — 2.1 Expected volatility 31.9% — 44.6% Risk-free interest rate 1.5% — 2.7% Expected dividend yield — |
Net Loss Per Share Attributab_2
Net Loss Per Share Attributable to Common Stockholders (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Computation of basic and diluted net loss per share | The following table sets forth the computation of basic and diluted net loss per share attributable to common stockholders: Three Months Ended September 30, Nine Months Ended September 30, (in thousands, except per share data) 2019 2018 2019 2018 Net loss attributable to common stockholders $ (17,640 ) $ (20,924 ) $ (60,708 ) $ (54,341 ) Weighted-average shares used to compute net loss per share attributable to common stockholders, basic and diluted 96,709 74,261 95,433 40,688 Net loss per share attributable to common stockholders, basic and diluted $ (0.18 ) $ (0.28 ) $ (0.64 ) $ (1.34 ) |
Potentially dilutive securities | The following potentially dilutive securities have been excluded from the diluted per share calculations because they would have been antidilutive: Three and Nine Months Ended September 30, (in thousands) 2019 2018 Stock options 13,942 19,387 Restricted stock units 2,860 1,050 Restricted shares 594 989 Shares to be issued under the 2018 ESPP 64 118 Total 17,460 21,544 |
Geographic Information (Tables)
Geographic Information (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Revenue by region | Revenue by region, based on the address of the end user as specified in our subscription, license or service agreements, was as follows: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2019 2018 2019 2018 Americas $ 62,413 $ 49,391 $ 177,392 $ 137,868 Europe, Middle East and Africa 19,968 14,002 56,123 38,218 Asia Pacific 9,471 6,047 24,022 16,053 Revenue $ 91,852 $ 69,440 $ 257,537 $ 192,139 |
Property and equipment, net by geographic area | Our property and equipment, net by geographic area is summarized as follows: (in thousands) September 30, 2019 December 31, 2018 United States $ 13,612 $ 6,487 International 4,913 4,861 Property and equipment, net $ 18,525 $ 11,348 |
Business and Summary of Signi_4
Business and Summary of Significant Accounting Policies - Initial Public Offering (Details) - USD ($) $ / shares in Units, $ in Millions | Jul. 30, 2018 | Sep. 30, 2018 | Sep. 30, 2018 | Sep. 30, 2019 | Dec. 31, 2018 |
Class of Stock [Line Items] | |||||
Common stock, authorized (in shares) | 500,000,000 | 500,000,000 | 500,000,000 | ||
Preferred stock, authorized (in shares) | 10,000,000 | ||||
IPO | |||||
Class of Stock [Line Items] | |||||
Stock sold, price per share (in usd per share) | $ 23 | ||||
Net proceeds from sale of stock | $ 264.6 | ||||
Common Stock | |||||
Class of Stock [Line Items] | |||||
Issuance of common stock upon conversion of redeemable convertible preferred stock (in shares) | 55,386,000 | 55,386,000 | |||
Common Stock | IPO | |||||
Class of Stock [Line Items] | |||||
Stock sold (in shares) | 12,535,000 | ||||
Issuance of common stock upon conversion of redeemable convertible preferred stock (in shares) | 55,385,854 | ||||
Common Stock | Over-allotment option | |||||
Class of Stock [Line Items] | |||||
Stock sold (in shares) | 1,635,000 | ||||
Redeemable convertible Series A preferred stock | IPO | |||||
Class of Stock [Line Items] | |||||
Issuance of common stock upon conversion of redeemable convertible preferred stock (in shares) | 15,847,500 | ||||
Redeemable convertible Series B preferred stock | IPO | |||||
Class of Stock [Line Items] | |||||
Issuance of common stock upon conversion of redeemable convertible preferred stock (in shares) | 39,538,354 |
Business and Summary of Signi_5
Business and Summary of Significant Accounting Policies - Summary of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 91,852 | $ 69,440 | $ 257,537 | $ 192,139 |
Subscription revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 75,503 | 53,511 | 209,610 | 146,568 |
Perpetual license and maintenance revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 13,797 | 13,864 | 40,877 | 40,753 |
Professional services and other revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 2,552 | $ 2,065 | $ 7,050 | $ 4,818 |
Business and Summary of Signi_6
Business and Summary of Significant Accounting Policies - Perpetual License and Maintenance Revenue (Details) - Perpetual license and maintenance revenue | 9 Months Ended |
Sep. 30, 2019 | |
Disaggregation of Revenue [Line Items] | |
License and maintenance period | 1 year |
Estimated maintenance renewal period | 4 years |
Economic life of perpetual license contracts | 5 years |
Business and Summary of Signi_7
Business and Summary of Significant Accounting Policies - Concentrations (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
One distributor | Revenue | Customer concentration risk | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 43.00% | 46.00% | 43.00% | 46.00% | |
One distributor | Accounts receivable | Customer concentration risk | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 40.00% | 46.00% | |||
Channel network | Revenue | Sales method risk | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 91.00% | 88.00% | 90.00% | 87.00% |
Business and Summary of Signi_8
Business and Summary of Significant Accounting Policies - Contract Balances (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Revenue recognized that was included in deferred revenue | $ 84.6 | $ 62.5 | $ 184.3 | $ 133.3 |
Business and Summary of Signi_9
Business and Summary of Significant Accounting Policies - Remaining Performance Obligations (Details) $ in Millions | Sep. 30, 2019USD ($) |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Future estimated revenue | $ 333.4 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected recognized percentage over succeeding 12 months | 74.00% |
Expected timing of satisfaction | 4 years |
Business and Summary of Sign_10
Business and Summary of Significant Accounting Policies - Deferred Commissions (Details) | Sep. 30, 2019 |
Perpetual license and maintenance revenue | |
Capitalized Contract Cost [Line Items] | |
Estimated period of benefit | 5 years |
Minimum | Subscription revenue | |
Capitalized Contract Cost [Line Items] | |
Estimated period of benefit | 3 years |
Maximum | Subscription revenue | |
Capitalized Contract Cost [Line Items] | |
Estimated period of benefit | 4 years |
Business and Summary of Sign_11
Business and Summary of Significant Accounting Policies - Activity of Deferred Contract Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Capitalized Contract Cost [Roll Forward] | ||||
Beginning balance | $ 61,866 | $ 50,805 | $ 59,434 | $ 50,176 |
Capitalization of contract acquisition costs | 9,612 | 7,138 | 24,846 | 16,985 |
Amortization of deferred contract acquisition costs | (6,955) | (5,059) | (19,757) | (14,277) |
Ending balance | $ 64,523 | $ 52,884 | $ 64,523 | $ 52,884 |
Cash and Cash Equivalents and_3
Cash and Cash Equivalents and Short-Term Investments (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Cash and Cash Equivalents [Abstract] | ||
Restricted cash | $ 300 | $ 300 |
Cash and Cash Equivalents [Line Items] | ||
Amortized Cost | 125,273 | 118,119 |
Unrealized Gain | 67 | 0 |
Unrealized Loss | (7) | 0 |
Estimated fair value | 125,333 | 118,119 |
Commercial paper | ||
Cash and Cash Equivalents [Line Items] | ||
Amortized Cost | 56,754 | 79,634 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | 0 | 0 |
Estimated fair value | 56,754 | 79,634 |
Corporate bonds | ||
Cash and Cash Equivalents [Line Items] | ||
Amortized Cost | 15,993 | 16,119 |
Unrealized Gain | 32 | 0 |
Unrealized Loss | 0 | 0 |
Estimated fair value | 16,025 | 16,119 |
U.S. Treasury and agency obligations | ||
Cash and Cash Equivalents [Line Items] | ||
Amortized Cost | 52,526 | 22,366 |
Unrealized Gain | 35 | 0 |
Unrealized Loss | (7) | 0 |
Estimated fair value | 52,554 | 22,366 |
Money market funds | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | 28,043 | 38,022 |
Commercial paper | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | 4,496 | |
Cash equivalents | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | $ 32,539 | $ 38,022 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | $ 125,333 | $ 118,119 |
Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 56,754 | 79,634 |
Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 16,025 | 16,119 |
U.S. Treasury and agency obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 52,554 | 22,366 |
Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 28,043 | 38,022 |
Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 4,496 | |
Cash equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 32,539 | 38,022 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
Level 1 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
Level 1 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
Level 1 | U.S. Treasury and agency obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
Level 1 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 28,043 | 38,022 |
Level 1 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | |
Level 1 | Cash equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 28,043 | 38,022 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 125,333 | 118,119 |
Level 2 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 56,754 | 79,634 |
Level 2 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 16,025 | 16,119 |
Level 2 | U.S. Treasury and agency obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 52,554 | 22,366 |
Level 2 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Level 2 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 4,496 | |
Level 2 | Cash equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 4,496 | 0 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
Level 3 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
Level 3 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
Level 3 | U.S. Treasury and agency obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
Level 3 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Level 3 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | |
Level 3 | Cash equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | $ 0 | $ 0 |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | |||||
Total | $ 35,055 | $ 35,055 | $ 24,534 | ||
Less: accumulated depreciation and amortization | (16,530) | (16,530) | (13,186) | ||
Property and equipment, net | 18,525 | 18,525 | 11,348 | ||
Depreciation and amortization | 1,400 | $ 1,400 | 4,200 | $ 4,100 | |
Computer software and equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Total | 20,221 | 20,221 | 13,038 | ||
Furniture and fixtures | |||||
Property, Plant and Equipment [Line Items] | |||||
Total | 3,738 | 3,738 | 2,376 | ||
Leasehold improvements | |||||
Property, Plant and Equipment [Line Items] | |||||
Total | 9,230 | 9,230 | 7,266 | ||
Right-of-use assets under finance leases | |||||
Property, Plant and Equipment [Line Items] | |||||
Total | $ 1,866 | $ 1,866 | $ 1,854 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Lessee, Lease, Description [Line Items] | ||
Renewal term | 5 years | |
Operating lease right-of-use assets | $ 40,346 | $ 8,504 |
Lease liability | 41,758 | |
Lease payments expected to commence | $ 78,360 | |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Remaining term of leases | 1 year | |
Options to terminate lease | 3 years | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Remaining term of leases | 12 years | |
Options to terminate lease | 6 years | |
Columbia, Maryland | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease right-of-use assets | $ 32,300 | |
Lease liability | $ 32,000 | |
Initial term of contract | 147 months | |
Lease payments expected to commence | $ 67,700 |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Leases [Abstract] | ||||
Operating lease cost | $ 1,763 | $ 960 | $ 3,844 | $ 2,730 |
Amortization of ROU assets | 157 | 155 | 465 | 459 |
Interest on lease liabilities | 2 | 10 | 5 | 29 |
Total finance lease cost | $ 159 | $ 165 | $ 470 | $ 488 |
Leases - Supplemental Informati
Leases - Supplemental Information Related to Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Operating leases | |||||
Weighted average remaining lease term | 10 years 2 months 12 days | 10 years 2 months 12 days | 3 years 1 month 6 days | ||
Weighted average discount rate | 5.90% | 5.90% | 7.10% | ||
ROU assets obtained in exchange for lease obligations | |||||
Operating leases | $ 32,292 | $ 263 | $ 34,490 | $ 1,525 | |
Finance leases | $ 0 | $ 4 | $ 11 | $ 4 |
Leases - Operating Lease Liabil
Leases - Operating Lease Liability Maturities (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Leases [Abstract] | |
2019 | $ 994 |
2020 | 4,088 |
2021 | 7,348 |
2022 | 6,673 |
2023 | 6,658 |
Thereafter | 52,599 |
Total lease payments | 78,360 |
Less: Imputed interest | (22,589) |
Less: Tenant incentives | (14,013) |
Total | $ 41,758 |
Debt (Details)
Debt (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | May 04, 2017 | |
Line of Credit Facility [Line Items] | |||
Borrowings outstanding | $ 0 | ||
Silicon Valley Bank | |||
Line of Credit Facility [Line Items] | |||
Revolving credit facility, maximum borrowing capacity | $ 25,000,000 | ||
Borrowings outstanding | $ 0 |
Redeemable Convertible Prefer_2
Redeemable Convertible Preferred Stock and Common Stock (Details) | Jul. 30, 2018shares | Dec. 31, 2015$ / sharesshares | Oct. 31, 2012shares | Sep. 30, 2018shares | Sep. 30, 2018shares | Sep. 30, 2019shares | Dec. 31, 2018shares |
Class of Stock [Line Items] | |||||||
Conversion ratio | 1 | ||||||
Common stock, authorized (in shares) | 500,000,000 | 500,000,000 | 500,000,000 | ||||
Preferred stock, authorized (in shares) | 10,000,000 | ||||||
Preferred stock, shares issued and outstanding (in shares) | 0 | 0 | |||||
Series A Redeemable Convertible Preferred Stock | |||||||
Class of Stock [Line Items] | |||||||
Stock sold (in shares) | 15,847,500 | 15,847,500 | |||||
Redeemable convertible preferred stock, par value (in usd per share) | $ / shares | $ 0.01 | ||||||
Series B Redeemable Convertible Preferred Stock | |||||||
Class of Stock [Line Items] | |||||||
Stock sold (in shares) | 39,538,354 | ||||||
Redeemable convertible preferred stock, par value (in usd per share) | $ / shares | $ 0.01 | ||||||
Redeemable convertible preferred stock, shares authorized (in shares) | 42,000,000 | ||||||
Common Stock | |||||||
Class of Stock [Line Items] | |||||||
Issuance of common stock upon conversion of redeemable convertible preferred stock (in shares) | 55,386,000 | 55,386,000 | |||||
Common Stock | IPO | |||||||
Class of Stock [Line Items] | |||||||
Stock sold (in shares) | 12,535,000 | ||||||
Issuance of common stock upon conversion of redeemable convertible preferred stock (in shares) | 55,385,854 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($)shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized stock-based compensation expense, outstanding stock options | $ 29.8 |
2018 Equity Incentive Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percentage of shares reserved for issuance | 5.00% |
Shares available for grant (in shares) | shares | 15,052,780 |
Stock options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock options, stock incentive plans, maximum term | 10 years |
Estimated remaining weighted average period | 2 years 4 months 24 days |
Stock options | Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock incentive plan, vesting period | 3 years |
Stock options | Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock incentive plan, vesting period | 4 years |
Restricted shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Estimated remaining weighted average period | 1 year 3 months 18 days |
Unrecognized stock-based compensation expense, unvested restricted stock or RSUs | $ 2.1 |
Restricted stock units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Estimated remaining weighted average period | 3 years 2 months 12 days |
Unrecognized stock-based compensation expense, unvested restricted stock or RSUs | $ 62.4 |
Restricted stock units | Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock incentive plan, vesting period | 2 years |
Restricted stock units | Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock incentive plan, vesting period | 4 years |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation | $ 10,499 | $ 8,783 | $ 31,191 | $ 14,206 |
Cost of revenue | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation | 694 | 692 | 2,088 | 883 |
Sales and marketing | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation | 3,521 | 2,707 | 11,102 | 3,984 |
Research and development | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation | 2,124 | 2,427 | 6,595 | 3,594 |
General and administrative | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation | $ 4,160 | $ 2,957 | $ 11,406 | $ 5,745 |
Stock-Based Compensation - St_2
Stock-Based Compensation - Stock Option Activity (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019USD ($)$ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | |
Number of Shares | ||
Number of shares outstanding, beginning of period (in shares) | shares | 19,219 | |
Number of shares, granted (in shares) | shares | 0 | |
Number of shares, exercised (in shares) | shares | (3,625) | |
Number of shares, forfeited/canceled (in shares) | shares | (1,652) | |
Number of shares outstanding, end of period (in shares) | shares | 13,942 | 19,219 |
Number of shares exercisable (in shares) | shares | 6,470 | |
Weighted Average Exercise Price | ||
Weighted average exercise price, outstanding, beginning of period (in USD per share) | $ / shares | $ 7.78 | |
Weighted average exercise price, granted (in USD per share) | $ / shares | 0 | |
Weighted average exercise price, exercised (in USD per share) | $ / shares | 4.26 | |
Weighted average exercise price, forfeited/canceled (in USD per share) | $ / shares | 10.03 | |
Weighted average exercise price, outstanding, end of period (in USD per share) | $ / shares | 8.43 | $ 7.78 |
Weighted average exercise price, exercisable (in USD per share) | $ / shares | $ 5.80 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||
Weighted average remaining contractual term (in years), outstanding | 7 years 6 months | 8 years |
Weighted average remaining contractual term (in years), exercisable | 6 years 8 months 12 days | |
Aggregate intrinsic value, outstanding | $ | $ 194,654 | $ 277,114 |
Aggregate intrinsic value, exercisable | $ | $ 107,297 |
Stock-Based Compensation - St_3
Stock-Based Compensation - Stock Option Activity (Narrative) (Details) shares in Millions | Sep. 30, 2019shares |
Share-based Payment Arrangement [Abstract] | |
Stock options vested and expected to vest (in shares) | 13.9 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock and Restricted Stock Units (Details) shares in Thousands | 9 Months Ended |
Sep. 30, 2019$ / sharesshares | |
Restricted shares | |
Number of Shares | |
Number of shares unvested, beginning of period (in shares) | shares | 890 |
Number of shares, granted (in shares) | shares | 0 |
Number of shares, vested (in shares) | shares | (296) |
Number of shares, forfeited (in shares) | shares | 0 |
Number of shares unvested, end of period (in shares) | shares | 594 |
Weighted Average Grant Date Fair Value | |
Weighted average grant date fair value, beginning of period (in USD per share) | $ / shares | $ 4.25 |
Weighted average grant date fair value, granted (in USD per share) | $ / shares | 0 |
Weighted average grant date fair value, vested (in USD per share) | $ / shares | 4.25 |
Weighted average grant date fair value, forfeited (in USD per share) | $ / shares | 0 |
Weighted average grant date fair value, end of period (in USD per share) | $ / shares | $ 4.25 |
Restricted stock units | |
Number of Shares | |
Number of shares unvested, beginning of period (in shares) | shares | 1,129 |
Number of shares, granted (in shares) | shares | 2,454 |
Number of shares, vested (in shares) | shares | (432) |
Number of shares, forfeited (in shares) | shares | (291) |
Number of shares unvested, end of period (in shares) | shares | 2,860 |
Weighted Average Grant Date Fair Value | |
Weighted average grant date fair value, beginning of period (in USD per share) | $ / shares | $ 18.90 |
Weighted average grant date fair value, granted (in USD per share) | $ / shares | 28.10 |
Weighted average grant date fair value, vested (in USD per share) | $ / shares | 17.20 |
Weighted average grant date fair value, forfeited (in USD per share) | $ / shares | 23.96 |
Weighted average grant date fair value, end of period (in USD per share) | $ / shares | $ 26.54 |
Stock-Based Compensation - Empl
Stock-Based Compensation - Employee Stock Purchase Plan (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Proceeds from stock issued in connection with the employee stock purchase plan | $ 15,129 | $ 0 |
Employee stock purchase plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage of shares reserved for issuance | 1.50% | |
Common stock, annual increase (in shares) | 8,000,000 | |
Common stock reserved for issuance (in shares) | 4,620,087 | |
Percentage of employee earnings allowed | 15.00% | |
Discount price percentage | 85.00% | |
Offering period (up to) | 27 months | |
Common stock purchased (in shares) | 776,809 | |
Share price (in USD per share) | $ 19.48 | |
Employee contributions | $ 1,500 | |
Unrecognized stock-based compensation expense | $ 11,300 | |
Remaining offering period | 1 year 10 months 24 days |
Stock-Based Compensation - Fair
Stock-Based Compensation - Fair Value Assumptions (Details) - Employee stock purchase plan | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected volatility, minimum | 31.90% |
Expected volatility, maximum | 44.60% |
Risk - free interest rate, minimum | 1.50% |
Risk - free interest rate, maximum | 2.70% |
Expected dividend yield | 0.00% |
Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected term (in years) | 6 months |
Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected term (in years) | 2 years 1 month 6 days |
Net Loss Per Share Attributab_3
Net Loss Per Share Attributable to Common Stockholders - Computation of Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings Per Share [Abstract] | ||||
Net loss attributable to common stockholders | $ (17,640) | $ (20,924) | $ (60,708) | $ (54,341) |
Weighted-average shares used to compute net loss per share attributable to common stockholders, basic and diluted (in shares) | 96,709 | 74,261 | 95,433 | 40,688 |
Net loss per share attributable to common stockholders, basic and diluted (in usd per share) | $ (0.18) | $ (0.28) | $ (0.64) | $ (1.34) |
Net Loss Per Share Attributab_4
Net Loss Per Share Attributable to Common Stockholders - Schedule of Potentially Dilutive Securities (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 17,460 | 21,544 | 17,460 | 21,544 |
Stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 13,942 | 19,387 | 13,942 | 19,387 |
Restricted stock units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 2,860 | 1,050 | 2,860 | 1,050 |
Restricted shares | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 594 | 989 | 594 | 989 |
ESPP | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 64 | 118 | 64 | 118 |
Geographic Information - Narrat
Geographic Information - Narrative (Details) - segment | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Concentration Risk [Line Items] | ||||
Number of operating segments | 1 | |||
United States | Revenue | Geographic concentration risk | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 63.00% | 66.00% | 64.00% | 67.00% |
Geographic Information - Revenu
Geographic Information - Revenue by Geographic Region (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | $ 91,852 | $ 69,440 | $ 257,537 | $ 192,139 |
Americas | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | 62,413 | 49,391 | 177,392 | 137,868 |
Europe, Middle East and Africa | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | 19,968 | 14,002 | 56,123 | 38,218 |
Asia Pacific | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | $ 9,471 | $ 6,047 | $ 24,022 | $ 16,053 |
Geographic Information - Proper
Geographic Information - Property And Equipment, Net By Geographic Area (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | $ 18,525 | $ 11,348 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | 13,612 | 6,487 |
International | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | $ 4,913 | $ 4,861 |