Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 24, 2020 | Jun. 28, 2019 | |
Cover page. | |||
Document Annual Report | true | ||
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, 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 Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1.2 | ||
Entity Common Stock, Shares Outstanding (in shares) | 99,404,819 | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Portions of the registrant's definitive Proxy Statement relating to the 2020 Annual Meeting of Stockholders are incorporated herein by reference in Part III of this Annual Report on Form 10-K. The Proxy Statement will be filed with the Securities and Exchange Commission within 120 days after the year ended December 31, 2019 . | ||
Entity Central Index Key | 0001660280 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 74,363 | $ 165,116 |
Short-term investments | 137,904 | 118,119 |
Accounts receivable (net of allowance for doubtful accounts of $764 and $188 at December 31, 2019 and 2018, respectively) | 94,827 | 68,261 |
Deferred commissions | 28,499 | 23,272 |
Prepaid expenses and other current assets | 27,369 | 22,020 |
Total current assets | 362,962 | 396,788 |
Property and equipment, net | 26,847 | 11,348 |
Deferred commissions (net of current portion) | 43,766 | 36,162 |
Operating lease right-of-use assets | 42,847 | 8,504 |
Intangible assets, net | 15,508 | 427 |
Goodwill | 54,138 | 265 |
Other assets | 12,544 | 7,118 |
Total assets | 558,612 | 460,612 |
Current liabilities: | ||
Accounts payable | 1,732 | 171 |
Accrued expenses | 8,436 | 5,554 |
Accrued compensation | 36,634 | 29,594 |
Deferred revenue | 274,348 | 213,644 |
Operating lease liabilities | 5,209 | 4,262 |
Other current liabilities | 1,284 | 1,079 |
Total current liabilities | 327,643 | 254,304 |
Deferred revenue (net of current portion) | 88,779 | 76,259 |
Operating lease liabilities (net of current portion) | 40,663 | 6,055 |
Other liabilities | 2,622 | 2,231 |
Total liabilities | 459,707 | 338,849 |
Stockholders’ equity: | ||
Common stock (par value: $0.01; 500,000 shares authorized, 98,587 and 93,126 shares issued and outstanding at December 31, 2019 and 2018, respectively) | 986 | 931 |
Additional paid-in capital | 662,990 | 586,940 |
Accumulated other comprehensive income | 50 | 0 |
Accumulated deficit | (565,121) | (466,108) |
Total stockholders’ equity | 98,905 | 121,763 |
Total liabilities and stockholders’ equity | $ 558,612 | $ 460,612 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 764 | $ 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) | 98,587,000 | 93,126,000 |
Common stock, shares outstanding (in shares) | 98,587,000 | 93,126,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | |||||||||||
Revenue | $ 97,049 | $ 91,852 | $ 85,384 | $ 80,301 | $ 75,221 | $ 69,440 | $ 63,592 | $ 59,107 | $ 354,586 | $ 267,360 | $ 187,727 |
Cost of revenue | 18,429 | 15,245 | 13,918 | 13,226 | 12,399 | 12,161 | 9,879 | 8,728 | 60,818 | 43,167 | 25,588 |
Gross profit | 78,620 | 76,607 | 71,466 | 67,075 | 62,822 | 57,279 | 53,713 | 50,379 | 293,768 | 224,193 | 162,139 |
Operating expenses: | |||||||||||
Sales and marketing | 62,632 | 56,699 | 56,015 | 52,689 | 47,380 | 44,550 | 41,826 | 39,588 | 228,035 | 173,344 | 116,299 |
Research and development | 22,668 | 20,763 | 21,698 | 21,935 | 21,169 | 20,553 | 17,791 | 17,185 | 87,064 | 76,698 | 57,673 |
General and administrative | 20,873 | 17,472 | 15,987 | 15,136 | 13,864 | 13,272 | 10,541 | 9,055 | 69,468 | 46,732 | 28,927 |
Total operating expenses | 106,173 | 94,934 | 93,700 | 89,760 | 82,413 | 78,375 | 70,158 | 65,828 | 384,567 | 296,774 | 202,899 |
Loss from operations | (27,553) | (18,327) | (22,234) | (22,685) | (19,591) | (21,096) | (16,445) | (15,449) | (90,799) | (72,581) | (40,760) |
Interest income (expense), net | 1,153 | 1,527 | 1,594 | 1,556 | 1,510 | 894 | (23) | (26) | 5,830 | 2,355 | (75) |
Other expense, net | (104) | (240) | (122) | (214) | (326) | (185) | (438) | 18 | (680) | (931) | (16) |
Total loss before income taxes | (26,504) | (17,040) | (20,762) | (21,343) | (18,407) | (20,387) | (16,906) | (15,457) | (85,649) | (71,157) | (40,851) |
Provision for income taxes | 11,801 | 600 | 866 | 97 | 1,207 | 482 | 244 | 431 | 13,364 | 2,364 | 171 |
Net loss | (38,305) | (17,640) | (21,628) | (21,440) | (19,614) | (20,869) | (17,150) | (15,888) | (99,013) | (73,521) | (41,022) |
Accretion of Series A and B redeemable convertible preferred stock | 0 | 0 | 0 | 0 | 0 | (55) | (191) | (188) | 0 | (434) | (763) |
Net loss attributable to common stockholders | $ (38,305) | $ (17,640) | $ (21,628) | $ (21,440) | $ (19,614) | $ (20,924) | $ (17,341) | $ (16,076) | $ (99,013) | $ (73,955) | $ (41,785) |
Net loss per share attributable to common stockholders, basic and diluted (in usd per share) | $ (0.39) | $ (0.18) | $ (0.23) | $ (0.23) | $ (0.21) | $ (0.28) | $ (0.73) | $ (0.68) | $ (1.03) | $ (1.38) | $ (1.88) |
Weighted-average shares used to compute net loss per share attributable to common stockholders, basic and diluted (in shares) | 96,014 | 53,669 | 22,211 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (99,013) | $ (73,521) | $ (41,022) |
Other comprehensive income, net of tax: | |||
Unrealized gains on available-for-sale securities | 50 | 0 | 0 |
Other comprehensive income | 50 | 0 | 0 |
Comprehensive loss | $ (98,963) | $ (73,521) | $ (41,022) |
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 |
Beginning balance (in shares) at Dec. 31, 2016 | 15,848 | 39,538 | |||||
Beginning balance at Dec. 31, 2016 | $ 49,913 | $ 227,059 | |||||
Redeemable Convertible Preferred Stock [Roll Forward] | |||||||
Accretion of Series A and B redeemable convertible preferred stock | $ 22 | $ 741 | |||||
Ending balance (in shares) at Dec. 31, 2017 | 15,848 | 39,538 | |||||
Ending balance at Dec. 31, 2017 | $ 49,935 | $ 227,800 | |||||
Beginning balance (in shares) at Dec. 31, 2016 | 21,165 | ||||||
Beginning balance at Dec. 31, 2016 | $ (301,918) | $ 212 | $ 11,017 | $ 0 | $ (313,147) | ||
Increase (Decrease) in Stockholders' Deficit [Roll Forward] | |||||||
Accretion of Series A and B redeemable convertible preferred stock | $ (763) | (763) | |||||
Issuance of restricted stock award (in shares) | 1,583 | ||||||
Issuance of restricted stock award | $ 0 | $ 16 | (16) | ||||
Exercise of stock options (in shares) | 1,870 | 1,870 | |||||
Exercise of stock options | $ 3,020 | $ 19 | 3,001 | ||||
Repurchase of common stock (in shares) | (146) | ||||||
Repurchase of common stock | (385) | $ (1) | (384) | ||||
Stock-based compensation | 7,760 | 7,760 | |||||
Other comprehensive income | 0 | ||||||
Net loss | (41,022) | (41,022) | |||||
Ending balance (in shares) at Dec. 31, 2017 | 24,472 | ||||||
Ending balance at Dec. 31, 2017 | (371,665) | $ 246 | 20,676 | 0 | (392,587) | ||
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) | |||||
Ending balance (in shares) at Dec. 31, 2018 | 0 | 0 | |||||
Ending balance at Dec. 31, 2018 | $ 0 | $ 0 | |||||
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) | 740 | 740 | |||||
Exercise of stock options | $ 1,668 | $ 7 | 1,661 | ||||
Repurchase of common stock (in shares) | (7) | ||||||
Repurchase of common stock | (75) | $ (1) | (74) | ||||
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 | 264,599 | $ 125 | 264,474 | ||||
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 | ||||
Stock-based compensation | 23,022 | 23,022 | |||||
Other comprehensive income | 0 | ||||||
Net loss | $ (73,521) | (73,521) | |||||
Ending balance (in shares) at Dec. 31, 2018 | 93,126 | 93,126 | |||||
Ending balance at Dec. 31, 2018 | $ 121,763 | $ 931 | 586,940 | 0 | (466,108) | ||
Ending balance (in shares) at Dec. 31, 2019 | 0 | 0 | |||||
Ending balance at Dec. 31, 2019 | $ 0 | $ 0 | |||||
Increase (Decrease) in Stockholders' Deficit [Roll Forward] | |||||||
Exercise of stock options (in shares) | 4,205 | 4,205 | |||||
Exercise of stock options | $ 19,048 | $ 42 | 19,006 | ||||
Vesting of restricted stock units (in shares) | 479 | ||||||
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 | 41,928 | 41,928 | |||||
Other comprehensive income | 50 | 50 | |||||
Net loss | $ (99,013) | (99,013) | |||||
Ending balance (in shares) at Dec. 31, 2019 | 98,587 | 98,587 | |||||
Ending balance at Dec. 31, 2019 | $ 98,905 | $ 986 | $ 662,990 | $ 50 | $ (565,121) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | |||
Net loss | $ (99,013) | $ (73,521) | $ (41,022) |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Deferred income taxes | 4,243 | 0 | (873) |
Depreciation and amortization | 6,880 | 6,192 | 4,692 |
Stock-based compensation | 41,610 | 22,875 | 7,760 |
Other | (784) | 533 | 125 |
Changes in operating assets and liabilities: | |||
Accounts receivable | (25,941) | (17,408) | (14,769) |
Prepaid expenses and other current assets | (5,188) | (6,105) | (8,345) |
Deferred commissions | (12,831) | (9,258) | (20,058) |
Other assets | (3,336) | (1,876) | (3,267) |
Accounts payable and accrued expenses | 4,244 | 294 | 1,922 |
Accrued compensation | 6,269 | 11,112 | 4,298 |
Deferred revenue | 72,799 | 64,085 | 63,404 |
Other current liabilities | 255 | 408 | 421 |
Other liabilities | 49 | 110 | (554) |
Net cash used in operating activities | (10,744) | (2,559) | (6,266) |
Cash flows from investing activities: | |||
Purchases of property and equipment | (20,674) | (5,733) | (2,755) |
Purchases of investments | (242,059) | (117,488) | 0 |
Sales and maturities of investments | 224,594 | 0 | 0 |
Business combination, net of cash acquired | (74,911) | 0 | 0 |
Net cash used in investing activities | (113,050) | (123,221) | (2,755) |
Cash flows from financing activities: | |||
Proceeds from initial public offering, net of underwriting discounts and commissions | 0 | 268,531 | 0 |
Payments of costs related to initial public offering | 0 | (3,932) | 0 |
Principal payments under finance lease obligations | (16) | (1,443) | (306) |
Credit facility issuance costs | 0 | 0 | (238) |
Proceeds from stock issued in connection with the employee stock purchase plan | 15,129 | 0 | 0 |
Proceeds from the exercise of stock options | 19,048 | 1,668 | 3,020 |
Repurchases of common stock | 0 | (75) | (385) |
Net cash provided by financing activities | 34,161 | 264,749 | 2,091 |
Effect of exchange rate changes on cash and cash equivalents and restricted cash | (1,080) | (1,063) | (68) |
Net (decrease) increase in cash and cash equivalents and restricted cash | (90,713) | 137,906 | (6,998) |
Cash and cash equivalents and restricted cash at beginning of year | 165,378 | 27,472 | 34,470 |
Cash and cash equivalents and restricted cash at end of year | 74,665 | 165,378 | 27,472 |
Supplemental disclosure of cash flow information: | |||
Cash paid for interest | 96 | 111 | 79 |
Cash paid for income taxes | $ 8,530 | $ 1,207 | $ 642 |
Business and Summary of Signifi
Business and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 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 and measuring 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 and have been prepared in conformity with United States generally accepted accounting principles (“GAAP”). All intercompany accounts and transactions have been eliminated in consolidation. 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 fair value of acquired intangible 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. Foreign Currency The functional currency for all of our foreign subsidiaries is the U.S. dollar. Assets and liabilities denominated in other currencies are remeasured into U.S. dollars at current exchange rates for monetary assets and liabilities and at historical exchange rates for non-monetary assets and liabilities. We bill our customers in U.S. dollars. Expenses incurred in non U.S. dollar currencies are remeasured into U.S. dollars when incurred. Remeasurement losses in currencies other than the functional currency were $1.1 million , $1.0 million and $0.1 million in 2019 , 2018 and 2017 , respectively, and are included as a component of other expense, net in the consolidated statements of operations. 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 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 In situations where we enter into a contractual arrangement that includes non-standard terms and conditions, such as acceptance provisions or options to purchase additional products and services, as well as contract modifications, we apply judgment in identifying and assessing the impact on revenue recognition. 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: Year Ended December 31, (in thousands) 2019 2018 2017 Subscription revenue $ 290,549 $ 205,827 $ 132,873 Perpetual license and maintenance revenue 54,173 54,622 50,337 Professional services and other revenue 9,864 6,911 4,517 Revenue $ 354,586 $ 267,360 $ 187,727 Subscription Revenue Subscription arrangements generally have annual or multi-year contractual terms and allow customers to use 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 our products and services through a channel network of distributors and resellers, along with our own sales teams. We derived 90% , 88% and 83% of revenue through our channel network in 2019 , 2018 and 2017 , respectively. One of our distributors accounted for 43% , 46% and 45% of revenue in 2019 , 2018 and 2017 , respectively. That same distributor accounted for 40% and 46% of accounts receivable at December 31, 2019 and 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 2019 and 2018 , we recognized revenue of $214.0 million and $154.9 million , respectively, that was included in the deferred revenue balance at the beginning of each of the respective periods. Remaining Performance Obligations At December 31, 2019 , the future estimated revenue related to unsatisfied performance obligations was $367.3 million , with approximately 75% expected to be recognized as revenue over the succeeding twelve months , and the remainder expected to be recognized over the four years thereafter. Cash and Cash Equivalents We consider all highly liquid financial instruments with an original maturity of three months or less when purchased to be cash equivalents. At December 31, 2019 , cash and cash equivalents included $0.4 million of restricted cash, which is related to collateral for a lease and credit card deposits. Cash and cash equivalents did not include any restricted cash at December 31, 2018 . At December 31, 2019 and 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. Fair Value of Financial Instruments Fair value is defined as the price that would be received from selling an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. We apply fair value accounting for all financial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis. We measure cash and cash equivalents and short-term investments at fair value using a fair value hierarchy of inputs. We approximate fair value by using the carrying amounts for accounts receivable, accounts payable and accrued expenses due to their short-term nature. 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 loss within stockholders’ equity (deficit). We review our investment portfolio to determine whether investments have indicators of possible impairment. Accounts Receivable Accounts receivable are recorded at the invoiced amount, less an allowance for doubtful accounts, and do not bear interest. We maintain an allowance for doubtful accounts at an amount estimated to be sufficient to cover the risk of collecting less than full payment of the receivables. At each balance sheet date, we evaluate our receivables and assess the allowance for doubtful accounts based on specific customer collection issues and historical write-off trends. 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 estimated 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: Year Ended December 31, (in thousands) 2019 2018 Beginning balance $ 59,434 $ 50,176 Capitalization of contract acquisition costs 40,172 29,075 Amortization of deferred contract acquisition costs (27,341 ) (19,817 ) Ending balance $ 72,265 $ 59,434 Amortization of deferred contract acquisition costs is included in sales and marketing expense in the consolidated statements of operations. Property and Equipment, net Property and equipment, net is stated at historical cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets: three years for computer software and equipment and five years for furniture and fixtures. Leasehold improvements are amortized using the straight-line method over the shorter of the estimated useful lives of the assets or the terms of the respective leases. Property and equipment, net includes right-of-use assets acquired under finance leases. Amortization of assets acquired under finance leases is included in depreciation expense. Repairs and maintenance costs are expensed as incurred. Leases In December 2018, we early adopted ASC Topic 842, Leases ("ASC 842") as of January 1, 2018 using the modified retrospective method applying the transition provisions at the beginning of the period of adoption, rather than at the beginning of the earliest comparative period presented in these financial statements. We elected the package of practical expedients as permitted under the transition guidance, which allowed us to not reassess whether arrangements contain leases, not reassess lease classification, and not reassess initial direct costs. The most significant impact of adopting ASC 842 was the recognition of right-of-use ("ROU") assets and lease liabilities for operating leases of $10.1 million and $12.3 million , respectively on January 1, 2018, which included reclassifying prepaid rent and deferred rent as a component of the ROU asset. Additionally, we concluded that we did not control the building under construction for our new corporate headquarters, and upon adoption, derecognized $2.3 million of construction-in-progress and a $1.8 million construction financing obligation on January 1, 2018 and recognized a $0.5 million deposit. Our accounting for finance leases (formerly referred to as capital leases prior to the adoption of ASC 842) remained substantially unchanged. 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 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 are 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. We determine our incremental borrowing rate for each lease using our current borrowing rate, adjusted for various factors including level of collateralization, term and currency to align with the terms 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. An option to extend the lease is considered in connection with determining the ROU asset and lease liability when it is reasonably certain we will exercise that option. An option to terminate is considered unless it is reasonably certain we will not exercise the option. Lease expense for lease payments is recognized on a straight-line basis over the term of the lease. Impairment of Long-Lived Assets We evaluate our long-lived assets for impairment whenever events or changes in circumstance indicate that the carrying amount may not be fully recoverable. Recoverability of the long-lived assets is measured by a comparison of the carrying amount of the assets to future undiscounted net cash flows expected to be generated by the assets. If such assets are considered to be impaired, the impairment to be recognized is measured as the excess of the carrying amount over the fair value. There was no impairment of long-lived assets in 2019 , 2018 and 2017 . Business Combinations We account for business combinations by recognizing the fair value of acquired assets and liabilities. The excess purchase consideration over the fair value of acquired assets and liabilities is recorded as goodwill. When determining the fair value of assets acquired and liabilities assumed, we make estimates and assumptions, especially with respect to intangible assets. Estimates in valuing certain identifiable intangible assets include, but are not limited to, projected revenue growth rates, future expected operating expenses, the obsolescence factor and appropriate discount rate. Our estimate of fair value is based upon assumptions we believe to be reasonable, but which are inherently uncertain and, as a result, actual results may differ from estimates. During the measurement period, we may make adjustments to the fair value of assets acquired and liabilities assumed, with offsetting adjustments to goodwill. Any adjustments made after the measurement period will be reflected in the consolidated statements of operations. Acquisition-related transaction costs are expensed as incurred. Goodwill The excess purchase consideration over the fair value of acquired assets and liabilities is recorded as goodwill. Goodwill is assessed for impairment annually, or more often if there are indications of impairment. During the periods presented, there were no indications of impairment. Advertising Advertising costs are expensed as they are incurred. We incurred advertising costs of $5.3 million , $3.3 million and $3.2 million in 2019 , 2018 and 2017 , respectively, which was included in sales and marketing expense in the consolidated statements of operations. Software Development Costs Research and development costs to develop software to be sold, leased or marketed are expensed as incurred up to the point of technological feasibility for the related software product. We have not capitalized development costs for software to be sold, leased or marketed to date, as the software development process is essentially completed concurrent with the establishment of technological feasibility. As such, these costs are expensed as incurred and recognized in research and development costs in the consolidated statements of operations. Software developed for internal use, with no substantive plans to market such software at the time of development, are capitalized and included in property and equipment, net in the consolidated balance sheets. Costs incurred during the preliminary planning and evaluation and post implementation stages of the project are expensed as incurred. Costs incurred during the application development stage of the project are capitalized. In 2019 and 2018 , we capitalized $4.2 million and $2.4 million , respectively, of development costs related to internal use software. In 2017 , capitalized costs related to software developed for internal use were immaterial. Stock-Based Compensation Stock-based compensation expense related to our stock options, restricted stock, restricted stock units ("RSUs") and purchase rights issued under our 2018 Employee Stock Purchase Plan ("2018 ESPP") is calculated based on the fair value of the awards granted and is recognized on a straight-line basis over the requisite service period, which is generally two to four years , with the exception of RSUs that include performance-based vesting conditions and are expensed using the accelerated attribution method. We account for forfeitures as they occur. The fair value of stock options and 2018 ESPP purchase rights is estimated on the grant date using the Black-Scholes option pricing model, which requires us to make assumptions and judgments, including the expected term, expected volatility, and risk-free interest rates. Prior to our IPO, we estimated the fair value of our common stock at the date of grant. Following our IPO, we use the market price of our common stock at the date of grant. Net Loss per Share We calculate basic and diluted net loss per share attributable to common stockholders in conformity with the two-class method required for participating securities. Under the two-class method, the net loss attributable to common stockholders is not allocated to the redeemable convertible preferred stock as the holders of our redeemable convertible preferred stock do not have a contractual obligation to share in losses. Under the two-class method, basic net loss per share attributable to common stockholders is computed by dividing the net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. Net loss attributable to common stockholders is calculated by adjusting net loss by the current period accretion of redeemable convertible preferred stock. Upon the completion of our IPO, all of our Series A and Series B redeemable convertible preferred stock automatically converted into shares of our common stock. Diluted earnings per share attributable to common stockholders is computed by giving effect to all potentially dilutive common stock equivalents in the period, including stock options, unvested restricted shares, redeemable convertible preferred stock and shares to be issued under our 2018 ESPP. As we have reported losses for all periods presented, all potentially dilutive securities have been excluded from the calculation of diluted net loss per share attributable to common stockholders as their effect would be antidilutive. Segment Information We operate as one operating segment as 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. Income Taxes Income taxes are accounted for under the asset and liability method. This method requires recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial statement carrying amounts and the tax basis of existing assets and liabilities, net operating loss carryforwards, and tax credit carryforwards. A valuation allowance is provided if it is more likely than not that some or all of the deferred tax assets will not be realized. We recognize tax benefits from an uncertain tax position if it is more likely than not to be sustained upon audit by the relevant taxing authority. Interest and penalties associated with such uncertain tax positions are classified as a component of income tax expense. Recently Issued Accounting Pronouncements In June 2016, the Financial Accounting Standards Board ("FASB") issued ASU No. 2016-13 - Financial Instruments-Credit Losses (Topic 326) : Measurement of Credit Losses on Financial Instruments . This ASU amended 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 was effective for us beginning January 1, 2020, and will be adopted using the modified-retrospective method. We do not expect the impact of adopting this standard to be material for 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 was effective for us beginning January 1, 2020, and will be adopted on a prospective basis. We do not expect the impact of adopting this standard to be material for our consolidated financial statements. |
Cash and Cash Equivalents and S
Cash and Cash Equivalents and Short-Term Investments | 12 Months Ended |
Dec. 31, 2019 | |
Cash and Cash Equivalents [Abstract] | |
Cash, Cash Equivalents, and Marketable Securities | Cash and Cash Equivalents and Short-Term Investments The following tables summarize the amortized cost, unrealized gain and loss and estimated fair value of cash equivalents and short-term investments: December 31, 2019 (in thousands) Amortized Cost Unrealized Gain Unrealized Loss Estimated Fair Value Cash equivalents: Money market funds $ 13,588 $ — $ — $ 13,588 Commercial paper 8,987 — — 8,987 Total cash equivalents $ 22,575 $ — $ — $ 22,575 Short-term investments: Commercial paper $ 61,371 $ — $ — $ 61,371 Corporate bonds 23,856 14 (1 ) 23,869 U.S. Treasury and agency obligations 52,627 38 (1 ) 52,664 Total short-term investments $ 137,854 $ 52 $ (2 ) $ 137,904 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 December 31, 2019 . At December 31, 2019 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 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: December 31, 2019 (in thousands) Level 1 Level 2 Level 3 Total Cash and cash equivalents Money market funds $ 13,588 $ — $ — $ 13,588 Commercial paper — 8,987 — 8,987 $ 13,588 $ 8,987 $ — $ 22,575 Short-term investments Commercial paper $ — $ 61,371 $ — $ 61,371 Corporate bonds — 23,869 — 23,869 U.S. Treasury and agency obligations — 52,664 — 52,664 $ — $ 137,904 $ — $ 137,904 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 December 31, 2019 or December 31, 2018 . |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Property and Equipment, Net Property and equipment, net consisted of the following: December 31, (in thousands) 2019 2018 Computer software and equipment $ 21,234 $ 13,038 Furniture and fixtures 4,504 2,376 Leasehold improvements 16,953 7,266 Right-of-use assets under finance leases 1,866 1,854 Total 44,557 24,534 Less: accumulated depreciation and amortization (17,710 ) (13,186 ) Property and equipment, net $ 26,847 $ 11,348 Depreciation and amortization related to property and equipment was $6.3 million , $5.6 million and $4.1 million in 2019 , 2018 and 2017 , respectively. |
Acquisition, Goodwill and Intan
Acquisition, Goodwill and Intangible Assets (Notes) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Acquisition, Goodwill and Intangible Assets | Acquisition, Goodwill and Intangible Assets Business Combination On December 2, 2019, we acquired Indegy Ltd. (“Indegy”) to expand our OT-specific capabilities. Through a share purchase agreement, we acquired 100% of Indegy's equity in exchange for cash consideration of $80.1 million , including cash acquired of $5.5 million . As part of the acquisition, all unvested options to acquire ordinary shares of Indegy vested immediately, and all options to acquire ordinary shares of Indegy were canceled in exchange for a right to receive a portion of the cash consideration. We paid $1.8 million for unvested options, which is included in post-acquisition stock-based compensation expense in our consolidated statements of operations. The cash consideration was allocated as follows: (in thousands) Cash acquired $ 5,500 Other net tangible assets acquired 735 Deferred tax assets, net 4,243 Intangible assets 15,700 Goodwill 53,873 Total purchase price allocation $ 80,051 We are still finalizing the allocation of the purchase price, which may change as additional information becomes available related to any working capital adjustment and income taxes. Acquired intangible assets and their estimated useful lives at the date of acquisition are as follows: Intangible Assets (dollars in thousands) Cost Weighted Average Useful Life Acquired technology $ 15,500 7 years Trade name 200 2 years Acquired intangible assets $ 15,700 The results of operations of Indegy are included in our consolidated statements of operations from the acquisition date and were not material. Pro forma results of operations are not presented as they are not material to the consolidated statements of operations. In 2019, we recognized $4.0 million of acquisition-related transaction costs in general and administrative expense, which included $2.1 million of expense related to the intercompany transfer of intellectual property. Goodwill and Acquired Intangible Assets The changes in the carrying amount of goodwill are as follows: (in thousands) Balance at December 31, 2018 $ 265 Acquired goodwill 53,873 Balance at December 31, 2019 $ 54,138 The excess purchase consideration over the fair value of acquired assets and liabilities is recorded as goodwill. The acquired goodwill reflects the synergies we expect from integrating Indegy's capabilities into our enterprise platform offerings and from marketing and selling these new capabilities to our customers. None of the acquired goodwill is tax deductible. Acquired intangible assets subject to amortization are as follows: December 31, 2019 December 31, 2018 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Acquired technology $ 17,325 $ (2,009 ) $ 15,316 $ 1,824 $ (1,397 ) $ 427 Trade name 200 (8 ) 192 — — — $ 17,525 $ (2,017 ) $ 15,508 $ 1,824 $ (1,397 ) $ 427 Amortization of acquired intangible assets was $0.6 million in each of 2019 , 2018 and 2017 , respectively. At December 31, 2019 , estimated future amortization of intangible assets is as follows: (in thousands) Year ending December 31, 2020 $ 2,314 2021 2,306 2022 2,214 2023 2,214 2024 2,214 Thereafter 4,246 Total $ 15,508 |
Leases
Leases | 12 Months Ended |
Dec. 31, 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 two to five years . The ROU assets and liabilities at December 31, 2019 assume the option to early terminate one of our leases in 2021 and one of our leases in 2025. In August 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 . In November 2019, we amended this lease to increase square footage and modify the timing of future payments. Future lease payments related to this lease are $72.2 million and the lease payments are expected to commence in the second quarter of 2021. The components of lease expense were as follows: Year Ended December 31, (in thousands) 2019 2018 Operating lease cost $ 6,045 $ 3,694 Finance lease cost Amortization of ROU assets $ 607 $ 614 Interest on lease liabilities 7 35 Total finance lease cost $ 614 $ 649 Rent expense for short-term leases in 2019 and 2018 was not material. Supplemental information related to leases was as follows: December 31, 2019 December 31, 2018 Operating leases Weighted average remaining lease term 10.0 years 3.1 years Weighted average discount rate 5.8% 7.1% Year Ended December 31, (in thousands) 2019 2018 Supplemental cash flow information related to leases: Operating cash payments for operating leases $ 4,452 $ 4,313 Operating cash payments for finance leases 7 35 ROU assets obtained in exchange for lease obligations Operating leases $ 39,170 $ 1,525 Finance leases 11 15 Maturities of operating lease liabilities at December 31, 2019 were as follows: (in thousands) Year ending December 31, 2020 $ 5,308 2021 6,940 2022 7,048 2023 7,036 2024 7,171 Thereafter 50,951 Total lease payments 84,454 Less: Imputed interest (24,077 ) Less: Tenant incentives (14,505 ) Total $ 45,872 |
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 two to five years . The ROU assets and liabilities at December 31, 2019 assume the option to early terminate one of our leases in 2021 and one of our leases in 2025. In August 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 . In November 2019, we amended this lease to increase square footage and modify the timing of future payments. Future lease payments related to this lease are $72.2 million and the lease payments are expected to commence in the second quarter of 2021. The components of lease expense were as follows: Year Ended December 31, (in thousands) 2019 2018 Operating lease cost $ 6,045 $ 3,694 Finance lease cost Amortization of ROU assets $ 607 $ 614 Interest on lease liabilities 7 35 Total finance lease cost $ 614 $ 649 Rent expense for short-term leases in 2019 and 2018 was not material. Supplemental information related to leases was as follows: December 31, 2019 December 31, 2018 Operating leases Weighted average remaining lease term 10.0 years 3.1 years Weighted average discount rate 5.8% 7.1% Year Ended December 31, (in thousands) 2019 2018 Supplemental cash flow information related to leases: Operating cash payments for operating leases $ 4,452 $ 4,313 Operating cash payments for finance leases 7 35 ROU assets obtained in exchange for lease obligations Operating leases $ 39,170 $ 1,525 Finance leases 11 15 Maturities of operating lease liabilities at December 31, 2019 were as follows: (in thousands) Year ending December 31, 2020 $ 5,308 2021 6,940 2022 7,048 2023 7,036 2024 7,171 Thereafter 50,951 Total lease payments 84,454 Less: Imputed interest (24,077 ) Less: Tenant incentives (14,505 ) Total $ 45,872 |
Debt
Debt | 12 Months Ended |
Dec. 31, 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. The Credit Facility is intended to be used to fund working capital and to provide increased liquidity and financial flexibility and bears interest at either LIBOR plus 2% , or the lender's prime rate plus 1% . In addition, we pay quarterly in arrears 0.25% of the average unused portion. The Credit Facility is secured by a first priority security interest in all of our assets, with a negative pledge on our Intellectual Property, as defined in the credit agreement. The Credit Facility contains certain restrictive covenants customary for facilities of this type including restrictions on indebtedness, liens, acquisitions and investments, restricted payments and dispositions. If, as of the last day of any quarter, the outstanding balance of the Credit Facility exceeds $5.0 million , there are financial covenants that require us to maintain a minimum level of earnings before income taxes, interest, depreciation and amortization (“EBITDA”) adjusted to add changes in deferred revenue in the period, and a minimum current ratio level. There were no borrowings or letters of credit issued under the Credit Facility in 2019 or 2018 . On January 9, 2020, we entered into a $2.5 million standby letter of credit ("Letter of Credit") for the security deposit on our new headquarters lease. The Letter of Credit bears interest at 2% per annum and expires one year from the issue date, with automatic renewals for additional one year terms until the final expiration date of February 2032. |
Redeemable Convertible Preferre
Redeemable Convertible Preferred Stock and Common Stock | 12 Months Ended |
Dec. 31, 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 December 31, 2019 or 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 | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation We have various stock incentive plans under which we have issued stock-based awards. 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. RSUs granted under our stock incentive plans generally vest over a period of two to four years . In 2018, our Board of Directors adopted, and our stockholders approved, our 2018 Equity Incentive Plan ("2018 Plan"). No additional grants were made under our other stock incentive plans, and any shares subject to stock options or other stock awards granted under our other plans that would have 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 through 2028, according to an evergreen provision. Due to this provision, we reserved an additional 4,656,320 shares of our common stock in January 2019. At December 31, 2019 , there were 15,395,809 shares available for grant. Stock-based compensation expense included in the consolidated statements of operations was as follows: Year Ended December 31, (in thousands) 2019 2018 2017 Cost of revenue $ 2,817 $ 1,707 $ 281 Sales and marketing 16,032 6,911 1,579 Research and development 8,911 5,804 1,782 General and administrative 15,683 8,453 4,118 Total stock-based compensation expense $ 43,443 $ 22,875 $ 7,760 At December 31, 2019 , the total unrecognized stock-based compensation expense related to outstanding stock options was $24.3 million , which is expected to be recognized over an estimated remaining weighted average period of 2.1 years . At December 31, 2019 , the unrecognized stock-based compensation expense related to unvested awards of restricted stock was $1.7 million , which is expected to be recognized over an estimated remaining period of 1.0 year . At December 31, 2019 , the unrecognized stock-based compensation expense related to unvested RSUs was $59.4 million , which is expected to be recognized over an estimated remaining period of 3.1 years . Stock Options A summary of our stock option activity for the periods presented is 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, 2016 9,336 $ 2.77 7.2 $ 15,374 Granted 9,022 5.22 Exercised (1,870) 1.62 7,667 Forfeited/canceled (1,915) 3.21 Outstanding at December 31, 2017 14,573 4.38 8.2 77,020 Granted 6,108 15.17 Exercised (740) 2.26 9,902 Forfeited/canceled (722) 7.23 Outstanding at December 31, 2018 19,219 7.78 8.0 277,114 Granted — — Exercised (4,205) 4.53 98,378 Forfeited/canceled (2,075) 10.63 Outstanding at December 31, 2019 12,939 8.38 7.1 201,608 Exercisable at December 31, 2019 6,473 6.04 6.4 116,016 At December 31, 2019 , there were 12.9 million stock options outstanding that were vested and expected to vest. In 2018 and 2017 , we granted stock options to employees that vest over three to four years and had a per share weighted average grant date fair value of $6.84 and $2.48 , respectively. Estimating the fair value of stock options using the Black-Scholes option-pricing model requires assumptions as to the estimated term of the option, the risk-free interest rate, the expected volatility of the price of our common stock, the expected dividend yield, and the fair value of our underlying common stock prior to our IPO. Fair Value of Common Stock. Following our IPO, we use the market price of our common stock at the date of grant. Prior to our IPO, the lack of an active public market for our common stock required an estimate of the fair value of the common stock for granting stock options and restricted shares, and for determining stock-based compensation expense. Contemporaneous third-party valuations were obtained to assist in determining the fair value of our common stock. The contemporaneous valuations were performed in accordance with applicable methodologies, approaches and assumptions of the technical practice-aid issued by the American Institute of Certified Public Accountants Practice Aid entitled Valuation of Privately-Held Company Equity Securities Issued as Compensation. Expected Term. This is the period of time that the options granted are expected to remain unexercised. We employ the simplified method to calculate the average expected term. Expected Volatility. Volatility is a measure of the amount by which a financial variable, such as a share price, has fluctuated (historical volatility) or is expected to fluctuate (expected volatility) during a period. As we do not yet have sufficient history of our own volatility, we have identified several public entities of similar size, complexity, and stage of development and estimate volatility based on the volatility of these companies. Risk-Free Interest Rate. This is the U.S. Treasury rate, having a term that most closely resembles the expected life of the stock option. Expected Dividend Yield. We have never declared or paid dividends and have no plans to do so in the foreseeable future. The fair value of each stock option was estimated on the grant date based on the following assumptions: Year Ended December 31, 2018 2017 Expected term (in years) 6.3 6.3 Expected volatility 41.3% — 43.3% 45.2% — 47.0% Risk-free interest rate 2.7% — 2.9% 1.9% — 2.4% Expected dividend yield — — Expected forfeiture rate — — Restricted Stock and Restricted Stock Units A summary of our restricted stock and RSU activity is presented below: Restricted Stock Restricted Stock Units (in thousands, except for per share data and years) Number of Shares Weighted Average Grant Date Fair Value Number Weighted Unvested balance at December 31, 2016 — $ — — $ — Granted 1,583 4.25 — — Vested — — — — Forfeited — — — — Unvested balance at December 31, 2017 1,583 4.25 — — Granted — — 1,200 18.75 Vested (693 ) 4.25 — — Forfeited — — (71 ) 16.27 Unvested balance at December 31, 2018 890 4.25 1,129 18.90 Granted — — 2,715 27.81 Vested (395 ) 4.25 (479 ) 18.28 Forfeited — — (471 ) 25.21 Unvested balance at December 31, 2019 495 4.25 2,894 26.34 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 ESPP. The number of shares of common stock reserved for issuance under our 2018 ESPP automatically increases on January 1 of each year through 2028 according to an evergreen provision. Due to this provision, we reserved an additional 1,396,896 shares of our common stock in January 2019. At December 31, 2019 , there were 4,620,087 shares available for grant. 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 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 December 31, 2019 , there was $5.4 million of employee contributions to the 2018 ESPP included in accrued compensation. The unrecognized stock-based compensation expense related to our 2018 ESPP was $8.5 million , which is expected to be recognized over the remaining offering period of 1.7 years . The fair value of the 2018 ESPP purchase rights was estimated on the offering or modification dates using a Black-Scholes option-pricing model and the following assumptions: Year Ended December 31, 2019 2018 Expected term (in years) 0.5 — 2.0 0.6 — 2.1 Expected volatility 34.4% — 44.6% 31.9% — 33.5% Risk-free interest rate 1.5% — 2.5% 2.3% — 2.7% Expected dividend yield — — |
Net Loss Per Share Attributable
Net Loss Per Share Attributable to Common Stockholders | 12 Months Ended |
Dec. 31, 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: Year Ended December 31, (in thousands, except per share data) 2019 2018 2017 Net loss attributable to common stockholders $ (99,013 ) $ (73,955 ) $ (41,785 ) Weighted-average shares used to compute net loss per share attributable to common stockholders, basic and diluted 96,014 53,669 22,211 Net loss per share attributable to common stockholders, basic and diluted $ (1.03 ) $ (1.38 ) $ (1.88 ) The following potentially dilutive securities have been excluded from the diluted per share calculations because they would have been antidilutive: Year Ended December 31, (in thousands) 2019 2018 2017 Stock options 12,939 19,219 14,573 Restricted stock units 2,894 1,129 — Restricted shares 495 890 1,583 Shares to be issued under the 2018 ESPP 278 320 — Redeemable convertible preferred stock — — 55,386 Total 16,606 21,558 71,542 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes U.S. and international components of loss before income taxes were as follows: Year Ended December 31, (in thousands) 2019 2018 2017 U.S. (loss) income $ (21,644 ) $ 1,429 $ (29,357 ) Foreign loss (64,005 ) (72,586 ) (11,494 ) Total loss before income taxes $ (85,649 ) $ (71,157 ) $ (40,851 ) The components of the provision for income taxes were as follows: Year Ended December 31, (in thousands) 2019 2018 2017 Current Federal $ (224 ) $ — $ 140 State 100 58 6 Foreign 9,245 2,306 898 Total current tax expense 9,121 2,364 1,044 Deferred Foreign 4,243 — (873 ) Total deferred tax expense (benefit) 4,243 — (873 ) Total provision for income taxes $ 13,364 $ 2,364 $ 171 The items accounting for the difference between income taxes computed at the federal statutory rate and our effective tax rate were as follows: Year Ended December 31, 2019 2018 2017 U.S. federal statutory tax rate 21.0 % 21.0 % 34.0 % State and local taxes 4.8 (1.5 ) 2.4 Research and development tax credit 3.1 1.9 3.0 Stock-based compensation 19.0 0.5 — Uncertain tax positions (0.5 ) (1.0 ) (0.2 ) Foreign tax rate differential (7.9 ) (9.4 ) (4.0 ) Change in valuation allowance (40.8 ) (12.6 ) 2.7 Gain on sale of intellectual property (12.3 ) — — Transition tax — — (2.7 ) Revaluation of U.S. deferred income taxes — — (34.5 ) Other (2.0 ) (2.2 ) (1.1 ) Effective tax rate (15.6 )% (3.3 )% (0.4 )% We maintain a valuation allowance on U.S. federal, state and foreign net deferred tax assets as the realization of our deferred tax assets is dependent upon future earnings, if any, the timing and amount of which are uncertain. The components of the deferred tax assets and liabilities were as follows: December 31, (in thousands) 2019 2018 Deferred tax assets: Net operating losses $ 65,494 $ 32,745 Deferred revenue 13,891 16,488 Stock-based compensation 10,032 5,581 Tax credits 7,585 5,320 Leases 10,451 2,436 Accrued compensation 918 697 Other 263 68 Total deferred tax assets 108,634 63,335 Valuation allowance (82,237 ) (47,266 ) Net deferred tax assets 26,397 16,069 Deferred tax liabilities: Deferred commissions (15,003 ) (13,273 ) Property and equipment (10,086 ) (2,166 ) Intangible assets (919 ) (353 ) Other (389 ) (277 ) Total deferred tax liabilities (26,397 ) (16,069 ) Net deferred tax liabilities $ — $ — At December 31, 2019 , we had net operating loss (“NOL”) carryforwards for federal, state and foreign tax purposes of $186.0 million , $132.0 million , and $163.6 million , respectively, which will begin to expire in 2030, as well as $10.1 million of federal, state and foreign research and development tax credits, foreign tax credits, minimum tax credits and certain states’ job creation tax credits. The federal research and development and foreign tax credits will begin to expire in 2032 and the state job creation tax credits will begin to expire in 2020. In December 2019, we sold acquired intellectual property through an intercompany transaction, which resulted in $6.3 million of current tax expense and $4.2 million of deferred tax expense in Israel. In 2018 , we recorded a deferred tax asset of $1.7 million related to our operating lease liability and recorded a deferred tax liability of $1.7 million related to our operating lease right-of-use asset due to the adoption of ASU 842. In connection with our IPO, we recorded a $1.9 million increase in our valuation allowance related to certain transaction costs. We are currently subject to the annual limitation under Sections 382 and 383 of the Internal Revenue Code. We will not be precluded from realizing the NOL carryforward and tax credits but may be limited in the amount we could utilize in any given tax year in the event that the federal and state taxable income will exceed the limitation imposed by Section 382. The amount of the annual limitation is determined based on our value immediately prior to the ownership change. Subsequent ownership changes may further affect the limitation in future years. At December 31, 2019 and 2018 , the total amount of gross unrecognized tax benefits was $7.2 million and $4.8 million , respectively, which, if recognized, would impact our effective tax rate by less than $0.1 million in each year. Interest and penalties associated with uncertain tax positions recognized as a component of income tax expense were immaterial in 2019 , 2018 and 2017 . The change in gross unrecognized tax benefits, excluding accrued interest, were as follows: Year Ended December 31, (in thousands) 2019 2018 2017 Unrecognized tax benefits at the beginning of the period $ 4,814 $ 1,199 $ 736 Additions for tax positions in the current year 2,306 3,571 446 Increase in prior year positions 90 102 30 Decrease in prior year positions (89 ) (58 ) (13 ) Acquisitions 42 — — Unrecognized tax benefits at the end of the period $ 7,163 $ 4,814 $ 1,199 We file income tax returns in the United States, including various state jurisdictions. Our subsidiaries file income tax returns in various foreign jurisdictions. Tax years after 2014 remain open to examination by the major taxing jurisdictions in which we are subject to tax. At December 31, 2019 , we were not under examination by the Internal Revenue Service or any state or foreign tax jurisdiction. Depending on the jurisdiction, distributions of earnings could be subject to withholding taxes at rates applicable to the distributing jurisdiction. As we intend to continue to reinvest the earnings of foreign subsidiaries indefinitely, we have not provided for a U.S. income tax liability and foreign withholding taxes on undistributed foreign earnings of foreign subsidiaries. It is not practicable for us to determine the amount of unrecognized tax expense on these reinvested international earnings. |
Geographic Information
Geographic Information | 12 Months Ended |
Dec. 31, 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: Year Ended December 31, (in thousands) 2019 2018 2017 Americas $ 243,616 $ 191,204 $ 138,876 Europe, Middle East and Africa 77,676 53,839 34,121 Asia Pacific 33,294 22,317 14,730 Revenue $ 354,586 $ 267,360 $ 187,727 Customers located in the United States accounted for 63% , 67% and 69% of revenue in 2019 , 2018 and 2017 , 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: December 31, (in thousands) 2019 2018 United States $ 21,464 $ 6,487 International 5,383 4,861 Property and equipment, net $ 26,847 $ 11,348 |
Benefit Plans
Benefit Plans | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Benefit Plans | Benefit Plans We maintain a contributory defined contribution 401(k) plan for our U.S. employees. We adopted a Safe Harbor Plan effective January 1, 2016, and as a result, company-matched contributions are fully vested. Additional contributory plans are in effect internationally. Our contribution expense for such plans was $6.2 million , $4.8 million and $3.3 million in 2019 , 2018 and 2017 , respectively. |
Quarterly Results (unaudited)
Quarterly Results (unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results (unaudited) | Quarterly Results (unaudited) The following tables summarize our unaudited quarterly consolidated statements of operations data for each of the eight quarters through the period ended December 31, 2019 . The information for each of these quarters has been prepared on the same basis as our audited annual consolidated financial statements and reflect, in the opinion of management, all adjustments of a normal, recurring nature that are necessary for the fair presentation of the results of operations for these periods. This data should be read in conjunction with our consolidated financial statements included elsewhere in this Annual Report on Form 10-K. Historical results are not necessarily indicative of the results that may be expected in the future, and the quarterly results are not necessarily indicative of the results that may be expected for the full year or any other period. Three Months Ended (in thousands, except per share amounts) March 31, June 30, September 30, December 31, Revenue $ 80,301 $ 85,384 $ 91,852 $ 97,049 Cost of revenue 13,226 13,918 15,245 18,429 Gross profit 67,075 71,466 76,607 78,620 Operating expenses: Sales and marketing 52,689 56,015 56,699 62,632 Research and development 21,935 21,698 20,763 22,668 General and administrative 15,136 15,987 17,472 20,873 Total operating expenses 89,760 93,700 94,934 106,173 Loss from operations (22,685 ) (22,234 ) (18,327 ) (27,553 ) Interest income, net 1,556 1,594 1,527 1,153 Other expense, net (214 ) (122 ) (240 ) (104 ) Loss before income taxes (21,343 ) (20,762 ) (17,040 ) (26,504 ) Provision for income taxes 97 866 600 11,801 Net loss (21,440 ) (21,628 ) (17,640 ) (38,305 ) Accretion of Series A and B redeemable convertible preferred stock — — — — Net loss attributable to common stockholders $ (21,440 ) $ (21,628 ) $ (17,640 ) $ (38,305 ) Net loss per share attributable to common stockholders, basic and diluted $ (0.23 ) $ (0.23 ) $ (0.18 ) $ (0.39 ) Three Months Ended (in thousands, except per share amounts) March 31, June 30, September 30, December 31, Revenue $ 59,107 $ 63,592 $ 69,440 $ 75,221 Cost of revenue 8,728 9,879 12,161 12,399 Gross profit 50,379 53,713 57,279 62,822 Operating expenses: Sales and marketing 39,588 41,826 44,550 47,380 Research and development 17,185 17,791 20,553 21,169 General and administrative 9,055 10,541 13,272 13,864 Total operating expenses 65,828 70,158 78,375 82,413 Loss from operations (15,449 ) (16,445 ) (21,096 ) (19,591 ) Interest (expense) income, net (26 ) (23 ) 894 1,510 Other income (expense), net 18 (438 ) (185 ) (326 ) Loss before income taxes (15,457 ) (16,906 ) (20,387 ) (18,407 ) Provision for income taxes 431 244 482 1,207 Net loss (15,888 ) (17,150 ) (20,869 ) (19,614 ) Accretion of Series A and B redeemable convertible preferred stock (188 ) (191 ) (55 ) — Net loss attributable to common stockholders $ (16,076 ) $ (17,341 ) $ (20,924 ) $ (19,614 ) Net loss per share attributable to common stockholders, basic and diluted $ (0.68 ) $ (0.73 ) $ (0.28 ) $ (0.21 ) |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | SCHEDULE II SUPPLEMENTARY CONSOLIDATED FINANCIAL STATEMENT SCHEDULE VALUATION AND QUALIFYING ACCOUNTS (in thousands) Balance at Beginning of Year Additions Charged to Costs and Expenses Deductions (1) Balance at End of Year Allowance for Doubtful Accounts Year Ended December 31, 2019 $ 188 $ 967 $ (391 ) $ 764 Year Ended December 31, 2018 160 149 (121 ) 188 Year Ended December 31, 2017 200 327 (367 ) 160 _______________ (1) Consists of write-offs of uncollectible accounts, net of recoveries. |
Business and Summary of Signi_2
Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements include the accounts of Tenable Holdings, Inc. and our wholly owned subsidiaries and have been prepared in conformity with United States generally accepted accounting principles (“GAAP”). All intercompany accounts and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the 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 fair value of acquired intangible 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. |
Foreign Currency | Foreign Currency The functional currency for all of our foreign subsidiaries is the U.S. dollar. Assets and liabilities denominated in other currencies are remeasured into U.S. dollars at current exchange rates for monetary assets and liabilities and at historical exchange rates for non-monetary assets and liabilities. We bill our customers in U.S. dollars. Expenses incurred in non U.S. dollar currencies are remeasured into U.S. dollars when incurred. Remeasurement losses in currencies other than the functional currency were $1.1 million , $1.0 million and $0.1 million in 2019 , 2018 and 2017 , respectively, and are included as a component of other expense, net in the consolidated statements of operations. |
Revenue Recognition | Subscription Revenue Subscription arrangements generally have annual or multi-year contractual terms and allow customers to use 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 our products and services through a channel network of distributors and resellers, along with our own sales teams. We derived 90% , 88% and 83% of revenue through our channel network in 2019 , 2018 and 2017 , respectively. One of our distributors accounted for 43% , 46% and 45% of revenue in 2019 , 2018 and 2017 , respectively. That same distributor accounted for 40% and 46% of accounts receivable at December 31, 2019 and 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 2019 and 2018 , we recognized revenue of $214.0 million and $154.9 million , respectively, that was included in the deferred revenue balance at the beginning of each of the respective periods. Remaining Performance Obligations At December 31, 2019 , the future estimated revenue related to unsatisfied performance obligations was $367.3 million , with approximately 75% expected to be recognized as revenue over the succeeding twelve months , and the remainder expected to be recognized over the four years thereafter. 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 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 In situations where we enter into a contractual arrangement that includes non-standard terms and conditions, such as acceptance provisions or options to purchase additional products and services, as well as contract modifications, we apply judgment in identifying and assessing the impact on revenue recognition. 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. 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 estimated 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. |
Cash and Cash Equivalents | Cash and Cash Equivalents We consider all highly liquid financial instruments with an original maturity of three months or less when purchased to be cash equivalents. At December 31, 2019 , cash and cash equivalents included $0.4 million of restricted cash, which is related to collateral for a lease and credit card deposits. Cash and cash equivalents did not include any restricted cash at December 31, 2018 . At December 31, 2019 and 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. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair value is defined as the price that would be received from selling an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. We apply fair value accounting for all financial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis. We measure cash and cash equivalents and short-term investments at fair value using a fair value hierarchy of inputs. We approximate fair value by using the carrying amounts for accounts receivable, accounts payable and accrued expenses due to their short-term nature. |
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 loss within stockholders’ equity (deficit). We review our investment portfolio to determine whether investments have indicators of possible impairment. |
Accounts Receivable | Accounts Receivable Accounts receivable are recorded at the invoiced amount, less an allowance for doubtful accounts, and do not bear interest. We maintain an allowance for doubtful accounts at an amount estimated to be sufficient to cover the risk of collecting less than full payment of the receivables. At each balance sheet date, we evaluate our receivables and assess the allowance for doubtful accounts based on specific customer collection issues and historical write-off trends. |
Property and Equipment, net | Property and Equipment, net Property and equipment, net is stated at historical cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets: three years for computer software and equipment and five years for furniture and fixtures. Leasehold improvements are amortized using the straight-line method over the shorter of the estimated useful lives of the assets or the terms of the respective leases. Property and equipment, net includes right-of-use assets acquired under finance leases. Amortization of assets acquired under finance leases is included in depreciation expense. Repairs and maintenance costs are expensed as incurred. |
Leases | Leases In December 2018, we early adopted ASC Topic 842, Leases ("ASC 842") as of January 1, 2018 using the modified retrospective method applying the transition provisions at the beginning of the period of adoption, rather than at the beginning of the earliest comparative period presented in these financial statements. We elected the package of practical expedients as permitted under the transition guidance, which allowed us to not reassess whether arrangements contain leases, not reassess lease classification, and not reassess initial direct costs. The most significant impact of adopting ASC 842 was the recognition of right-of-use ("ROU") assets and lease liabilities for operating leases of $10.1 million and $12.3 million , respectively on January 1, 2018, which included reclassifying prepaid rent and deferred rent as a component of the ROU asset. Additionally, we concluded that we did not control the building under construction for our new corporate headquarters, and upon adoption, derecognized $2.3 million of construction-in-progress and a $1.8 million construction financing obligation on January 1, 2018 and recognized a $0.5 million deposit. Our accounting for finance leases (formerly referred to as capital leases prior to the adoption of ASC 842) remained substantially unchanged. 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 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 are 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. We determine our incremental borrowing rate for each lease using our current borrowing rate, adjusted for various factors including level of collateralization, term and currency to align with the terms 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. An option to extend the lease is considered in connection with determining the ROU asset and lease liability when it is reasonably certain we will exercise that option. An option to terminate is considered unless it is reasonably certain we will not exercise the option. Lease expense for lease payments is recognized on a straight-line basis over the term of the lease. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets We evaluate our long-lived assets for impairment whenever events or changes in circumstance indicate that the carrying amount may not be fully recoverable. Recoverability of the long-lived assets is measured by a comparison of the carrying amount of the assets to future undiscounted net cash flows expected to be generated by the assets. If such assets are considered to be impaired, the impairment to be recognized is measured as the excess of the carrying amount over the fair value. There was no impairment of long-lived assets in 2019 , 2018 and 2017 . |
Business Combinations | Business Combinations We account for business combinations by recognizing the fair value of acquired assets and liabilities. The excess purchase consideration over the fair value of acquired assets and liabilities is recorded as goodwill. When determining the fair value of assets acquired and liabilities assumed, we make estimates and assumptions, especially with respect to intangible assets. Estimates in valuing certain identifiable intangible assets include, but are not limited to, projected revenue growth rates, future expected operating expenses, the obsolescence factor and appropriate discount rate. Our estimate of fair value is based upon assumptions we believe to be reasonable, but which are inherently uncertain and, as a result, actual results may differ from estimates. During the measurement period, we may make adjustments to the fair value of assets acquired and liabilities assumed, with offsetting adjustments to goodwill. Any adjustments made after the measurement period will be reflected in the consolidated statements of operations. Acquisition-related transaction costs are expensed as incurred. |
Goodwill | Goodwill The excess purchase consideration over the fair value of acquired assets and liabilities is recorded as goodwill. Goodwill is assessed for impairment annually, or more often if there are indications of impairment. During the periods presented, there were no indications of impairment. |
Advertising | Advertising Advertising costs are expensed as they are incurred. We incurred advertising costs of $5.3 million , $3.3 million and $3.2 million in 2019 , 2018 and 2017 , respectively, which was included in sales and marketing expense in the consolidated statements of operations. |
Software Development Costs | Software Development Costs Research and development costs to develop software to be sold, leased or marketed are expensed as incurred up to the point of technological feasibility for the related software product. We have not capitalized development costs for software to be sold, leased or marketed to date, as the software development process is essentially completed concurrent with the establishment of technological feasibility. As such, these costs are expensed as incurred and recognized in research and development costs in the consolidated statements of operations. Software developed for internal use, with no substantive plans to market such software at the time of development, are capitalized and included in property and equipment, net in the consolidated balance sheets. Costs incurred during the preliminary planning and evaluation and post implementation stages of the project are expensed as incurred. Costs incurred during the application development stage of the project are capitalized. In 2019 and 2018 , we capitalized $4.2 million and $2.4 million , respectively, of development costs related to internal use software. In 2017 , capitalized costs related to software developed for internal use were immaterial. |
Stock-Based Compensation | Stock-Based Compensation Stock-based compensation expense related to our stock options, restricted stock, restricted stock units ("RSUs") and purchase rights issued under our 2018 Employee Stock Purchase Plan ("2018 ESPP") is calculated based on the fair value of the awards granted and is recognized on a straight-line basis over the requisite service period, which is generally two to four years , with the exception of RSUs that include performance-based vesting conditions and are expensed using the accelerated attribution method. We account for forfeitures as they occur. The fair value of stock options and 2018 ESPP purchase rights is estimated on the grant date using the Black-Scholes option pricing model, which requires us to make assumptions and judgments, including the expected term, expected volatility, and risk-free interest rates. Prior to our IPO, we estimated the fair value of our common stock at the date of grant. Following our IPO, we use the market price of our common stock at the date of grant. |
Net Loss per Share | Net Loss per Share We calculate basic and diluted net loss per share attributable to common stockholders in conformity with the two-class method required for participating securities. Under the two-class method, the net loss attributable to common stockholders is not allocated to the redeemable convertible preferred stock as the holders of our redeemable convertible preferred stock do not have a contractual obligation to share in losses. Under the two-class method, basic net loss per share attributable to common stockholders is computed by dividing the net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. Net loss attributable to common stockholders is calculated by adjusting net loss by the current period accretion of redeemable convertible preferred stock. Upon the completion of our IPO, all of our Series A and Series B redeemable convertible preferred stock automatically converted into shares of our common stock. Diluted earnings per share attributable to common stockholders is computed by giving effect to all potentially dilutive common stock equivalents in the period, including stock options, unvested restricted shares, redeemable convertible preferred stock and shares to be issued under our 2018 ESPP. As we have reported losses for all periods presented, all potentially dilutive securities have been excluded from the calculation of diluted net loss per share attributable to common stockholders as their effect would be antidilutive. |
Segment Information | Segment Information We operate as one operating segment as 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. |
Income Taxes | Income Taxes Income taxes are accounted for under the asset and liability method. This method requires recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial statement carrying amounts and the tax basis of existing assets and liabilities, net operating loss carryforwards, and tax credit carryforwards. A valuation allowance is provided if it is more likely than not that some or all of the deferred tax assets will not be realized. We recognize tax benefits from an uncertain tax position if it is more likely than not to be sustained upon audit by the relevant taxing authority. Interest and penalties associated with such uncertain tax positions are classified as a component of income tax expense. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In June 2016, the Financial Accounting Standards Board ("FASB") issued ASU No. 2016-13 - Financial Instruments-Credit Losses (Topic 326) : Measurement of Credit Losses on Financial Instruments . This ASU amended 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 was effective for us beginning January 1, 2020, and will be adopted using the modified-retrospective method. We do not expect the impact of adopting this standard to be material for 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 was effective for us beginning January 1, 2020, and will be adopted on a prospective basis. We do not expect the impact of adopting this standard to be material for our consolidated financial statements. |
Business and Summary of Signi_3
Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of revenue | The following table presents a summary of revenue: Year Ended December 31, (in thousands) 2019 2018 2017 Subscription revenue $ 290,549 $ 205,827 $ 132,873 Perpetual license and maintenance revenue 54,173 54,622 50,337 Professional services and other revenue 9,864 6,911 4,517 Revenue $ 354,586 $ 267,360 $ 187,727 |
Activity of deferred contract costs | The following summarizes the activity of deferred incremental costs of obtaining a contract: Year Ended December 31, (in thousands) 2019 2018 Beginning balance $ 59,434 $ 50,176 Capitalization of contract acquisition costs 40,172 29,075 Amortization of deferred contract acquisition costs (27,341 ) (19,817 ) Ending balance $ 72,265 $ 59,434 |
Cash and Cash Equivalents and_2
Cash and Cash Equivalents and Short-Term Investments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Cash and Cash Equivalents [Abstract] | |
Debt Securities, Available-for-sale | The following tables summarize the amortized cost, unrealized gain and loss and estimated fair value of cash equivalents and short-term investments: December 31, 2019 (in thousands) Amortized Cost Unrealized Gain Unrealized Loss Estimated Fair Value Cash equivalents: Money market funds $ 13,588 $ — $ — $ 13,588 Commercial paper 8,987 — — 8,987 Total cash equivalents $ 22,575 $ — $ — $ 22,575 Short-term investments: Commercial paper $ 61,371 $ — $ — $ 61,371 Corporate bonds 23,856 14 (1 ) 23,869 U.S. Treasury and agency obligations 52,627 38 (1 ) 52,664 Total short-term investments $ 137,854 $ 52 $ (2 ) $ 137,904 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) | 12 Months Ended |
Dec. 31, 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: December 31, 2019 (in thousands) Level 1 Level 2 Level 3 Total Cash and cash equivalents Money market funds $ 13,588 $ — $ — $ 13,588 Commercial paper — 8,987 — 8,987 $ 13,588 $ 8,987 $ — $ 22,575 Short-term investments Commercial paper $ — $ 61,371 $ — $ 61,371 Corporate bonds — 23,869 — 23,869 U.S. Treasury and agency obligations — 52,664 — 52,664 $ — $ 137,904 $ — $ 137,904 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) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment, net | Property and equipment, net consisted of the following: December 31, (in thousands) 2019 2018 Computer software and equipment $ 21,234 $ 13,038 Furniture and fixtures 4,504 2,376 Leasehold improvements 16,953 7,266 Right-of-use assets under finance leases 1,866 1,854 Total 44,557 24,534 Less: accumulated depreciation and amortization (17,710 ) (13,186 ) Property and equipment, net $ 26,847 $ 11,348 |
Acquisition, Goodwill and Int_2
Acquisition, Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Assets Acquired and Liabilities Assumed as Part of Business Combination | The cash consideration was allocated as follows: (in thousands) Cash acquired $ 5,500 Other net tangible assets acquired 735 Deferred tax assets, net 4,243 Intangible assets 15,700 Goodwill 53,873 Total purchase price allocation $ 80,051 |
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination | Acquired intangible assets and their estimated useful lives at the date of acquisition are as follows: Intangible Assets (dollars in thousands) Cost Weighted Average Useful Life Acquired technology $ 15,500 7 years Trade name 200 2 years Acquired intangible assets $ 15,700 |
Schedule of Goodwill | The changes in the carrying amount of goodwill are as follows: (in thousands) Balance at December 31, 2018 $ 265 Acquired goodwill 53,873 Balance at December 31, 2019 $ 54,138 |
Schedule of Finite-Lived Intangible Assets | Acquired intangible assets subject to amortization are as follows: December 31, 2019 December 31, 2018 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Acquired technology $ 17,325 $ (2,009 ) $ 15,316 $ 1,824 $ (1,397 ) $ 427 Trade name 200 (8 ) 192 — — — $ 17,525 $ (2,017 ) $ 15,508 $ 1,824 $ (1,397 ) $ 427 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | At December 31, 2019 , estimated future amortization of intangible assets is as follows: (in thousands) Year ending December 31, 2020 $ 2,314 2021 2,306 2022 2,214 2023 2,214 2024 2,214 Thereafter 4,246 Total $ 15,508 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Components of leases | The components of lease expense were as follows: Year Ended December 31, (in thousands) 2019 2018 Operating lease cost $ 6,045 $ 3,694 Finance lease cost Amortization of ROU assets $ 607 $ 614 Interest on lease liabilities 7 35 Total finance lease cost $ 614 $ 649 Supplemental information related to leases was as follows: December 31, 2019 December 31, 2018 Operating leases Weighted average remaining lease term 10.0 years 3.1 years Weighted average discount rate 5.8% 7.1% Year Ended December 31, (in thousands) 2019 2018 Supplemental cash flow information related to leases: Operating cash payments for operating leases $ 4,452 $ 4,313 Operating cash payments for finance leases 7 35 ROU assets obtained in exchange for lease obligations Operating leases $ 39,170 $ 1,525 Finance leases 11 15 |
Schedule of maturities of operating lease liabilities | Maturities of operating lease liabilities at December 31, 2019 were as follows: (in thousands) Year ending December 31, 2020 $ 5,308 2021 6,940 2022 7,048 2023 7,036 2024 7,171 Thereafter 50,951 Total lease payments 84,454 Less: Imputed interest (24,077 ) Less: Tenant incentives (14,505 ) Total $ 45,872 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock-based compensation expense | Stock-based compensation expense included in the consolidated statements of operations was as follows: Year Ended December 31, (in thousands) 2019 2018 2017 Cost of revenue $ 2,817 $ 1,707 $ 281 Sales and marketing 16,032 6,911 1,579 Research and development 8,911 5,804 1,782 General and administrative 15,683 8,453 4,118 Total stock-based compensation expense $ 43,443 $ 22,875 $ 7,760 |
Stock option activity | A summary of our stock option activity for the periods presented is 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, 2016 9,336 $ 2.77 7.2 $ 15,374 Granted 9,022 5.22 Exercised (1,870) 1.62 7,667 Forfeited/canceled (1,915) 3.21 Outstanding at December 31, 2017 14,573 4.38 8.2 77,020 Granted 6,108 15.17 Exercised (740) 2.26 9,902 Forfeited/canceled (722) 7.23 Outstanding at December 31, 2018 19,219 7.78 8.0 277,114 Granted — — Exercised (4,205) 4.53 98,378 Forfeited/canceled (2,075) 10.63 Outstanding at December 31, 2019 12,939 8.38 7.1 201,608 Exercisable at December 31, 2019 6,473 6.04 6.4 116,016 |
Valuation assumptions | The fair value of the 2018 ESPP purchase rights was estimated on the offering or modification dates using a Black-Scholes option-pricing model and the following assumptions: Year Ended December 31, 2019 2018 Expected term (in years) 0.5 — 2.0 0.6 — 2.1 Expected volatility 34.4% — 44.6% 31.9% — 33.5% Risk-free interest rate 1.5% — 2.5% 2.3% — 2.7% Expected dividend yield — — The fair value of each stock option was estimated on the grant date based on the following assumptions: Year Ended December 31, 2018 2017 Expected term (in years) 6.3 6.3 Expected volatility 41.3% — 43.3% 45.2% — 47.0% Risk-free interest rate 2.7% — 2.9% 1.9% — 2.4% Expected dividend yield — — Expected forfeiture rate — — |
Summary of restricted stock and restricted stock units | A summary of our restricted stock and RSU activity is presented below: Restricted Stock Restricted Stock Units (in thousands, except for per share data and years) Number of Shares Weighted Average Grant Date Fair Value Number Weighted Unvested balance at December 31, 2016 — $ — — $ — Granted 1,583 4.25 — — Vested — — — — Forfeited — — — — Unvested balance at December 31, 2017 1,583 4.25 — — Granted — — 1,200 18.75 Vested (693 ) 4.25 — — Forfeited — — (71 ) 16.27 Unvested balance at December 31, 2018 890 4.25 1,129 18.90 Granted — — 2,715 27.81 Vested (395 ) 4.25 (479 ) 18.28 Forfeited — — (471 ) 25.21 Unvested balance at December 31, 2019 495 4.25 2,894 26.34 |
Net Loss Per Share Attributab_2
Net Loss Per Share Attributable to Common Stockholders (Tables) | 12 Months Ended |
Dec. 31, 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: Year Ended December 31, (in thousands, except per share data) 2019 2018 2017 Net loss attributable to common stockholders $ (99,013 ) $ (73,955 ) $ (41,785 ) Weighted-average shares used to compute net loss per share attributable to common stockholders, basic and diluted 96,014 53,669 22,211 Net loss per share attributable to common stockholders, basic and diluted $ (1.03 ) $ (1.38 ) $ (1.88 ) |
Potentially dilutive securities | The following potentially dilutive securities have been excluded from the diluted per share calculations because they would have been antidilutive: Year Ended December 31, (in thousands) 2019 2018 2017 Stock options 12,939 19,219 14,573 Restricted stock units 2,894 1,129 — Restricted shares 495 890 1,583 Shares to be issued under the 2018 ESPP 278 320 — Redeemable convertible preferred stock — — 55,386 Total 16,606 21,558 71,542 |
Income Taxes Income Taxes (Tabl
Income Taxes Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Loss Before Income Taxes | U.S. and international components of loss before income taxes were as follows: Year Ended December 31, (in thousands) 2019 2018 2017 U.S. (loss) income $ (21,644 ) $ 1,429 $ (29,357 ) Foreign loss (64,005 ) (72,586 ) (11,494 ) Total loss before income taxes $ (85,649 ) $ (71,157 ) $ (40,851 ) |
Schedule of Components of the Provision for Income Taxes | The components of the provision for income taxes were as follows: Year Ended December 31, (in thousands) 2019 2018 2017 Current Federal $ (224 ) $ — $ 140 State 100 58 6 Foreign 9,245 2,306 898 Total current tax expense 9,121 2,364 1,044 Deferred Foreign 4,243 — (873 ) Total deferred tax expense (benefit) 4,243 — (873 ) Total provision for income taxes $ 13,364 $ 2,364 $ 171 |
Schedule of Effective Income Tax Rate Reconciliation | The items accounting for the difference between income taxes computed at the federal statutory rate and our effective tax rate were as follows: Year Ended December 31, 2019 2018 2017 U.S. federal statutory tax rate 21.0 % 21.0 % 34.0 % State and local taxes 4.8 (1.5 ) 2.4 Research and development tax credit 3.1 1.9 3.0 Stock-based compensation 19.0 0.5 — Uncertain tax positions (0.5 ) (1.0 ) (0.2 ) Foreign tax rate differential (7.9 ) (9.4 ) (4.0 ) Change in valuation allowance (40.8 ) (12.6 ) 2.7 Gain on sale of intellectual property (12.3 ) — — Transition tax — — (2.7 ) Revaluation of U.S. deferred income taxes — — (34.5 ) Other (2.0 ) (2.2 ) (1.1 ) Effective tax rate (15.6 )% (3.3 )% (0.4 )% |
Components of Deferred Tax Assets and Liabilities | The components of the deferred tax assets and liabilities were as follows: December 31, (in thousands) 2019 2018 Deferred tax assets: Net operating losses $ 65,494 $ 32,745 Deferred revenue 13,891 16,488 Stock-based compensation 10,032 5,581 Tax credits 7,585 5,320 Leases 10,451 2,436 Accrued compensation 918 697 Other 263 68 Total deferred tax assets 108,634 63,335 Valuation allowance (82,237 ) (47,266 ) Net deferred tax assets 26,397 16,069 Deferred tax liabilities: Deferred commissions (15,003 ) (13,273 ) Property and equipment (10,086 ) (2,166 ) Intangible assets (919 ) (353 ) Other (389 ) (277 ) Total deferred tax liabilities (26,397 ) (16,069 ) Net deferred tax liabilities $ — $ — |
Schedule Change of Gross Unrealized Tax Benefits | The change in gross unrecognized tax benefits, excluding accrued interest, were as follows: Year Ended December 31, (in thousands) 2019 2018 2017 Unrecognized tax benefits at the beginning of the period $ 4,814 $ 1,199 $ 736 Additions for tax positions in the current year 2,306 3,571 446 Increase in prior year positions 90 102 30 Decrease in prior year positions (89 ) (58 ) (13 ) Acquisitions 42 — — Unrecognized tax benefits at the end of the period $ 7,163 $ 4,814 $ 1,199 |
Geographic Information (Tables)
Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 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: Year Ended December 31, (in thousands) 2019 2018 2017 Americas $ 243,616 $ 191,204 $ 138,876 Europe, Middle East and Africa 77,676 53,839 34,121 Asia Pacific 33,294 22,317 14,730 Revenue $ 354,586 $ 267,360 $ 187,727 |
Property and equipment, net by geographic area | Our property and equipment, net by geographic area is summarized as follows: December 31, (in thousands) 2019 2018 United States $ 21,464 $ 6,487 International 5,383 4,861 Property and equipment, net $ 26,847 $ 11,348 |
Quarterly Results (unaudited) (
Quarterly Results (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results (unaudited) | Three Months Ended (in thousands, except per share amounts) March 31, June 30, September 30, December 31, Revenue $ 80,301 $ 85,384 $ 91,852 $ 97,049 Cost of revenue 13,226 13,918 15,245 18,429 Gross profit 67,075 71,466 76,607 78,620 Operating expenses: Sales and marketing 52,689 56,015 56,699 62,632 Research and development 21,935 21,698 20,763 22,668 General and administrative 15,136 15,987 17,472 20,873 Total operating expenses 89,760 93,700 94,934 106,173 Loss from operations (22,685 ) (22,234 ) (18,327 ) (27,553 ) Interest income, net 1,556 1,594 1,527 1,153 Other expense, net (214 ) (122 ) (240 ) (104 ) Loss before income taxes (21,343 ) (20,762 ) (17,040 ) (26,504 ) Provision for income taxes 97 866 600 11,801 Net loss (21,440 ) (21,628 ) (17,640 ) (38,305 ) Accretion of Series A and B redeemable convertible preferred stock — — — — Net loss attributable to common stockholders $ (21,440 ) $ (21,628 ) $ (17,640 ) $ (38,305 ) Net loss per share attributable to common stockholders, basic and diluted $ (0.23 ) $ (0.23 ) $ (0.18 ) $ (0.39 ) Three Months Ended (in thousands, except per share amounts) March 31, June 30, September 30, December 31, Revenue $ 59,107 $ 63,592 $ 69,440 $ 75,221 Cost of revenue 8,728 9,879 12,161 12,399 Gross profit 50,379 53,713 57,279 62,822 Operating expenses: Sales and marketing 39,588 41,826 44,550 47,380 Research and development 17,185 17,791 20,553 21,169 General and administrative 9,055 10,541 13,272 13,864 Total operating expenses 65,828 70,158 78,375 82,413 Loss from operations (15,449 ) (16,445 ) (21,096 ) (19,591 ) Interest (expense) income, net (26 ) (23 ) 894 1,510 Other income (expense), net 18 (438 ) (185 ) (326 ) Loss before income taxes (15,457 ) (16,906 ) (20,387 ) (18,407 ) Provision for income taxes 431 244 482 1,207 Net loss (15,888 ) (17,150 ) (20,869 ) (19,614 ) Accretion of Series A and B redeemable convertible preferred stock (188 ) (191 ) (55 ) — Net loss attributable to common stockholders $ (16,076 ) $ (17,341 ) $ (20,924 ) $ (19,614 ) Net loss per share attributable to common stockholders, basic and diluted $ (0.68 ) $ (0.73 ) $ (0.28 ) $ (0.21 ) |
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 | Dec. 31, 2018 | Dec. 31, 2019 |
Subsidiary, Sale of Stock [Line Items] | |||
Issuance of common stock upon conversion of redeemable convertible preferred stock (in shares) | 55,385,854 | ||
Common stock, authorized (in shares) | 500,000,000 | 500,000,000 | 500,000,000 |
Preferred stock, authorized (in shares) | 10,000,000 | ||
IPO | |||
Subsidiary, Sale of Stock [Line Items] | |||
Stock sold, price per share (in usd per share) | $ 23 | ||
Net proceeds from sale of stock | $ 264.6 | ||
Common Stock | |||
Subsidiary, Sale of Stock [Line Items] | |||
Issuance of common stock upon conversion of redeemable convertible preferred stock (in shares) | 55,386,000 | ||
Common Stock | IPO | |||
Subsidiary, Sale 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 | |||
Subsidiary, Sale of Stock [Line Items] | |||
Stock sold (in shares) | 1,635,000 | ||
Redeemable convertible Series A preferred stock | IPO | |||
Subsidiary, Sale 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 | |||
Subsidiary, Sale 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 - Foreign Currency (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Foreign currency transaction loss | $ (1.1) | $ (1) | $ (0.1) |
Business and Summary of Signi_6
Business and Summary of Significant Accounting Policies - Summary of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 97,049 | $ 91,852 | $ 85,384 | $ 80,301 | $ 75,221 | $ 69,440 | $ 63,592 | $ 59,107 | $ 354,586 | $ 267,360 | $ 187,727 |
Subscription revenue | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 290,549 | 205,827 | 132,873 | ||||||||
Perpetual license and maintenance revenue | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 54,173 | 54,622 | 50,337 | ||||||||
Professional services and other revenue | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 9,864 | $ 6,911 | $ 4,517 |
Business and Summary of Signi_7
Business and Summary of Significant Accounting Policies - Perpetual License and Maintenance Revenue (Details) - Perpetual license and maintenance revenue | 12 Months Ended |
Dec. 31, 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_8
Business and Summary of Significant Accounting Policies - Concentrations (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue | Sales method risk | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 90.00% | 88.00% | 83.00% |
One distributor | Revenue | Customer concentration risk | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 43.00% | 46.00% | 45.00% |
One distributor | Accounts receivable | Customer concentration risk | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 40.00% | 46.00% |
Business and Summary of Signi_9
Business and Summary of Significant Accounting Policies - Contract Balances (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Revenue recognized that was included in deferred revenue | $ 214 | $ 154.9 |
Business and Summary of Sign_10
Business and Summary of Significant Accounting Policies - Remaining Performance Obligations (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 $ in Millions | Dec. 31, 2019USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Future estimated revenue | $ 367.3 |
Expected recognized percentage over succeeding 12 months | 75.00% |
Expected timing of satisfaction | 4 years |
Business and Summary of Sign_11
Business and Summary of Significant Accounting Policies - Cash and Cash Equivalents (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Cash and Cash Equivalents | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | $ 0.4 | |
Other Assets | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | $ 0.3 | $ 0.3 |
Business and Summary of Sign_12
Business and Summary of Significant Accounting Policies - Deferred Commissions (Details) | Dec. 31, 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_13
Business and Summary of Significant Accounting Policies - Property and Equipment, net (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Computer software and equipment | |
Property, Plant and Equipment [Line Items] | |
Useful life (in years) | 3 years |
Furniture and fixtures | |
Property, Plant and Equipment [Line Items] | |
Useful life (in years) | 5 years |
Business and Summary of Sign_14
Business and Summary of Significant Accounting Policies - Activity of Deferred Contract Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Capitalized Contract Cost [Roll Forward] | ||
Beginning balance | $ 59,434 | $ 50,176 |
Capitalization of contract acquisition costs | 40,172 | 29,075 |
Amortization of deferred contract acquisition costs | (27,341) | (19,817) |
Ending balance | $ 72,265 | $ 59,434 |
Business and Summary of Sign_15
Business and Summary of Significant Accounting Policies - Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease right-of-use assets | $ 42,847 | $ 8,504 | $ 10,100 |
Operating lease liabilities | $ 45,872 | 12,300 | |
Deposit | 500 | ||
Accounting Standards Update 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Construction in progress | 2,300 | ||
Financing obligation | $ 1,800 |
Business and Summary of Sign_16
Business and Summary of Significant Accounting Policies - Advertising (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Advertising costs incurred | $ 5.3 | $ 3.3 | $ 3.2 |
Business and Summary of Sign_17
Business and Summary of Significant Accounting Policies - Software Development Costs (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Capitalized development costs of internal use software | $ 4.2 | $ 2.4 |
Business and Summary of Sign_18
Business and Summary of Significant Accounting Policies - Stock-Based Compensation (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Requisite period | 2 years |
Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Requisite period | 4 years |
Business and Summary of Sign_19
Business and Summary of Significant Accounting Policies - Segment Information (Details) | 12 Months Ended |
Dec. 31, 2019segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of operating segments | 1 |
Cash and Cash Equivalents and_3
Cash and Cash Equivalents and Short-Term Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | $ 22,575 | $ 38,022 |
Debt securities, available-for-sale, amortized cost | 137,854 | 118,119 |
Debt Securities, available-for-sale, accumulated gross unrealized gain, before tax | 52 | 0 |
Debt securities, available-for-sale, accumulated gross unrealized loss, before tax | (2) | 0 |
Short-term investments | 137,904 | 118,119 |
Money market funds | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | 13,588 | 38,022 |
Commercial paper | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | 8,987 | |
Cash Equivalents | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | 22,575 | 38,022 |
Commercial paper | ||
Cash and Cash Equivalents [Line Items] | ||
Debt securities, available-for-sale, amortized cost | 61,371 | 79,634 |
Debt Securities, available-for-sale, accumulated gross unrealized gain, before tax | 0 | 0 |
Debt securities, available-for-sale, accumulated gross unrealized loss, before tax | 0 | 0 |
Short-term investments | 61,371 | 79,634 |
Corporate Bond Securities | ||
Cash and Cash Equivalents [Line Items] | ||
Debt securities, available-for-sale, amortized cost | 23,856 | 16,119 |
Debt Securities, available-for-sale, accumulated gross unrealized gain, before tax | 14 | 0 |
Debt securities, available-for-sale, accumulated gross unrealized loss, before tax | (1) | 0 |
Short-term investments | 23,869 | 16,119 |
US Treasury and Government | ||
Cash and Cash Equivalents [Line Items] | ||
Debt securities, available-for-sale, amortized cost | 52,627 | 22,366 |
Debt Securities, available-for-sale, accumulated gross unrealized gain, before tax | 38 | 0 |
Debt securities, available-for-sale, accumulated gross unrealized loss, before tax | (1) | 0 |
Short-term investments | $ 52,664 | $ 22,366 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | $ 22,575 | $ 38,022 |
Short-term investments | 137,904 | 118,119 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 13,588 | 38,022 |
Short-term investments | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 8,987 | 0 |
Short-term investments | 137,904 | 118,119 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Short-term investments | 0 | 0 |
Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 61,371 | 79,634 |
Commercial paper | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
Commercial paper | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 61,371 | 79,634 |
Commercial paper | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 23,869 | 16,119 |
Corporate bonds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
Corporate bonds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 23,869 | 16,119 |
Corporate bonds | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
U.S. Treasury and agency obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 52,664 | 22,366 |
U.S. Treasury and agency obligations | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
U.S. Treasury and agency obligations | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 52,664 | 22,366 |
U.S. Treasury and agency obligations | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 13,588 | 38,022 |
Money market funds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 13,588 | 38,022 |
Money market funds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Money market funds | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | $ 0 |
Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 8,987 | |
Commercial paper | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | |
Commercial paper | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 8,987 | |
Commercial paper | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | $ 0 |
Property and Equipment, Net - P
Property and Equipment, Net - Property and Equipment, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Right-of-use assets under finance leases | $ 1,866 | $ 1,854 |
Total | 44,557 | 24,534 |
Less: accumulated depreciation and amortization | (17,710) | (13,186) |
Property and equipment, net | 26,847 | 11,348 |
Computer software and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 21,234 | 13,038 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 4,504 | 2,376 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 16,953 | $ 7,266 |
Property and Equipment, Net - N
Property and Equipment, Net - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation and amortization | $ 6.3 | $ 5.6 | $ 4.1 |
Acquisition, Goodwill and Int_3
Acquisition, Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Millions | Dec. 02, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | ||||
Acquisition-related transaction costs | $ 4 | |||
Expense related to the intercompany transfer of intellectual property | 2.1 | |||
Amortization of intangible assets | $ 0.6 | $ 0.6 | $ 0.6 | |
INDEGY LTD. | ||||
Business Acquisition [Line Items] | ||||
Cash consideration | $ 80.1 | |||
Cash acquired | 5.5 | |||
Stock-based compensation expense for unvested options | $ 1.8 |
Acquisition, Goodwill and Int_4
Acquisition, Goodwill and Intangible Assets - Schedule of Assets Acquired (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 02, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | |||
Goodwill | $ 54,138 | $ 265 | |
INDEGY LTD. | |||
Business Acquisition [Line Items] | |||
Cash acquired | $ 5,500 | ||
Other net tangible assets acquired | 735 | ||
Deferred tax assets, net | 4,243 | ||
Intangible assets | 15,700 | ||
Goodwill | 53,873 | ||
Total purchase price allocation | $ 80,051 |
Acquisition, Goodwill and Int_5
Acquisition, Goodwill and Intangible Assets - Schedule of Finite-lived Intangible Assets Acquired (Details) - INDEGY LTD. $ in Thousands | Dec. 02, 2019USD ($) |
Business Acquisition [Line Items] | |
Finite-lived intangible assets acquired | $ 15,700 |
Purchased technology | |
Business Acquisition [Line Items] | |
Finite-lived intangible assets acquired | $ 15,500 |
Weighted Average Useful Life | 7 years |
Trade name | |
Business Acquisition [Line Items] | |
Finite-lived intangible assets acquired | $ 200 |
Weighted Average Useful Life | 2 years |
Acquisition, Goodwill and Int_6
Acquisition, Goodwill and Intangible Assets - Schedule of Goodwill (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Business Combinations [Abstract] | |
Balance at December 31, 2018 | $ 265 |
Acquired goodwill | 53,873 |
Balance at December 31, 2019 | $ 54,138 |
Acquisition, Goodwill and Int_7
Acquisition, Goodwill and Intangible Assets - Schedule of Finite-lived Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 17,525 | $ 1,824 |
Accumulated amortization | (2,017) | (1,397) |
Net carrying amount | 15,508 | 427 |
Purchased technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 17,325 | 1,824 |
Accumulated amortization | (2,009) | (1,397) |
Net carrying amount | 15,316 | 427 |
Trade name | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 200 | 0 |
Accumulated amortization | (8) | 0 |
Net carrying amount | $ 192 | $ 0 |
Acquisition, Goodwill and Int_8
Acquisition, Goodwill and Intangible Assets - Schedule of Future Amortization of Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Business Combinations [Abstract] | |||
Amortization of intangible assets | $ 600 | $ 600 | $ 600 |
2020 | 2,314 | ||
2021 | 2,306 | ||
2022 | 2,214 | ||
2023 | 2,214 | ||
2024 | 2,214 | ||
Thereafter | 4,246 | ||
Net carrying amount | $ 15,508 | $ 427 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2018 | Jan. 01, 2018 | |
Operating Leased Assets [Line Items] | ||||
ROU asset | $ 42,847 | $ 8,504 | $ 10,100 | |
Lease liability | $ 45,872 | $ 12,300 | ||
Renewal term on lease | 5 years | |||
Columbia, Maryland | ||||
Operating Leased Assets [Line Items] | ||||
ROU asset | $ 32,300 | |||
Lease liability | $ 32,000 | |||
Remaining terms of leases | 147 months | |||
Obligations for operating lease | $ 72,200 | |||
Minimum | ||||
Operating Leased Assets [Line Items] | ||||
Remaining terms of leases | 1 year | |||
Option to terminate lease | 2 years | |||
Maximum | ||||
Operating Leased Assets [Line Items] | ||||
Remaining terms of leases | 12 years | |||
Option to terminate lease | 5 years |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Leases [Abstract] | ||
Operating lease cost | $ 6,045 | $ 3,694 |
Finance leases | ||
Amortization of ROU assets | 607 | 614 |
Interest on lease liabilities | 7 | 35 |
Total finance lease cost | $ 614 | $ 649 |
Leases - Supplemental Informati
Leases - Supplemental Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Leases [Abstract] | ||
Weighted average remaining lease term | 10 years | 3 years 1 month 6 days |
Weighted average discount rate | 5.80% | 7.10% |
Supplemental cash flow information related to leases: | ||
Operating cash payments for operating leases | $ 4,452 | $ 4,313 |
Operating cash payments for finance leases | 7 | 35 |
ROU assets obtained in exchange for lease obligations: | ||
Operating leases | 39,170 | 1,525 |
Finance leases | $ 11 | $ 15 |
Leases - Operating Lease Liabil
Leases - Operating Lease Liability Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2018 |
Leases [Abstract] | ||
2020 | $ 5,308 | |
2021 | 6,940 | |
2022 | 7,048 | |
2023 | 7,036 | |
2024 | 7,171 | |
Thereafter | 50,951 | |
Total lease payments | 84,454 | |
Less imputed interest | (24,077) | |
Less: Tenant incentives | (14,505) | |
Operating lease liabilities | $ 45,872 | $ 12,300 |
Debt (Details)
Debt (Details) - USD ($) | Jan. 09, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | May 04, 2017 |
Line of Credit Facility [Line Items] | ||||
Revolving credit facility, maximum borrowing capacity | $ 25,000,000 | |||
Arrears paid on average unused portion | 0.25% | |||
Outstanding balance of credit facility, amount requiring covenant compliance | $ 5,000,000 | |||
Borrowings against debt instrument | $ 0 | $ 0 | ||
Line of Credit | LIBOR | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 2.00% | |||
Line of Credit | Prime Rate | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 1.00% | |||
Subsequent event | ||||
Line of Credit Facility [Line Items] | ||||
Revolving credit facility, maximum borrowing capacity | $ 2,500,000 | |||
Letter of credit interest rate | 2.00% |
Redeemable Convertible Prefer_2
Redeemable Convertible Preferred Stock and Common Stock (Details) | Jul. 30, 2018shares | Dec. 31, 2015$ / sharesshares | Oct. 31, 2012shares | Dec. 31, 2018shares | Dec. 31, 2019shares |
Class of Stock [Line Items] | |||||
Redeemable convertible preferred stock, conversion ratio | 1 | ||||
Issuance of common stock upon conversion of redeemable convertible preferred stock (in shares) | 55,385,854 | ||||
Common stock, authorized (in shares) | 500,000,000 | 500,000,000 | 500,000,000 | ||
Preferred stock, authorized (in shares) | 10,000,000 | ||||
Preferred stock, issued (in shares) | 0 | 0 | |||
Preferred stock, 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 | ||||
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) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized stock-based compensation expense, outstanding stock options | $ 24.3 | |||
Stock options vested and expected to vest (in shares) | 12,900,000 | |||
2018 Equity Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares available for grant (in shares) | 15,395,809 | |||
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 1 month 6 days | |||
Weighted average grant date fair value (in USD per share) | $ 6.84 | $ 2.48 | ||
Stock options | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock options, stock incentive plan, vesting period | 3 years | |||
Stock options | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock options, stock incentive plan, vesting period | 4 years | |||
Stock-based awards | 2018 Equity Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common stock reserved for issuance (in shares) | 4,656,320 | |||
Restricted shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Estimated remaining weighted average period | 1 year | |||
Unrecognized stock-based compensation expense, unvested restricted stock or RSUs | $ 1.7 | |||
Restricted stock units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Estimated remaining weighted average period | 3 years 1 month 6 days | |||
Unrecognized stock-based compensation expense, unvested restricted stock or RSUs | $ 59.4 | |||
Restricted stock units | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock options, stock incentive plan, vesting period | 2 years | |||
Restricted stock units | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock options, stock incentive plan, vesting period | 4 years | |||
Employee stock purchase plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common stock reserved for issuance (in shares) | 1,396,896 | |||
Shares available for grant (in shares) | 4,620,087 | |||
Estimated remaining weighted average period | 1 year 8 months 12 days |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation expense | $ 43,443 | $ 22,875 | $ 7,760 |
Cost of revenue | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation expense | 2,817 | 1,707 | 281 |
Sales and marketing | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation expense | 16,032 | 6,911 | 1,579 |
Research and development | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation expense | 8,911 | 5,804 | 1,782 |
General and administrative | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation expense | $ 15,683 | $ 8,453 | $ 4,118 |
Stock-Based Compensation - St_2
Stock-Based Compensation - Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Number of Shares | ||||
Number of shares outstanding, beginning of period (in shares) | 19,219 | 14,573 | 9,336 | |
Number of shares, granted (in shares) | 0 | 6,108 | 9,022 | |
Number of shares, exercised (in shares) | (4,205) | (740) | (1,870) | |
Number of shares, forfeited/canceled (in shares) | (2,075) | (722) | (1,915) | |
Number of shares outstanding, end of period (in shares) | 12,939 | 19,219 | 14,573 | 9,336 |
Number of shares exercisable (in shares) | 6,473 | |||
Weighted Average Exercise Price | ||||
Weighted average exercise price, outstanding, beginning of period (in USD per share) | $ 7.78 | $ 4.38 | $ 2.77 | |
Weighted average exercise price, granted (in USD per share) | 0 | 15.17 | 5.22 | |
Weighted average exercise price, exercised (in USD per share) | 4.53 | 2.26 | 1.62 | |
Weighted average exercise price, forfeited/canceled (in USD per share) | 10.63 | 7.23 | 3.21 | |
Weighted average exercise price, outstanding, end of period (in USD per share) | 8.38 | $ 7.78 | $ 4.38 | $ 2.77 |
Weighted average exercise price, exercisable (in USD per share) | $ 6.04 | |||
Weighted average remaining contractual term (in years), outstanding | 7 years 1 month 6 days | 8 years | 8 years 2 months 12 days | 7 years 2 months 12 days |
Weighted average remaining contractual term (in years), exercisable | 6 years 4 months 24 days | |||
Aggregate intrinsic value, outstanding, beginning of period | $ 277,114 | $ 77,020 | $ 15,374 | |
Aggregate intrinsic value, exercised | 98,378 | 9,902 | 7,667 | |
Aggregate intrinsic value, outstanding, end of period | 201,608 | $ 277,114 | $ 77,020 | $ 15,374 |
Aggregate intrinsic value, exercisable | $ 116,016 |
Stock-Based Compensation - Fair
Stock-Based Compensation - Fair Value of Stock Options Assumptions (Details) - Stock options | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term (in years) | 6 years 3 months 18 days | 6 years 3 months 18 days |
Expected volatility, minimum | 41.30% | 45.20% |
Expected volatility, maximum | 43.30% | 47.00% |
Risk - free interest rate, minimum | 2.70% | 1.90% |
Risk - free interest rate, maximum | 2.90% | 2.40% |
Expected dividend yield | 0.00% | 0.00% |
Expected forfeiture rate | 0.00% | 0.00% |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock and Restricted Stock Units (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restricted shares | |||
Number of Shares | |||
Number of shares unvested, beginning of period (in shares) | 890 | 1,583 | 0 |
Number of shares, granted (in shares) | 0 | 0 | 1,583 |
Number of shares, vested (in shares) | (395) | (693) | 0 |
Number of shares, forfeited (in shares) | 0 | 0 | 0 |
Number of shares unvested, end of period (in shares) | 495 | 890 | 1,583 |
Weighted Average Grant Date Fair Value | |||
Weighted average grant date fair value, beginning of period (in USD per share) | $ 4.25 | $ 4.25 | $ 0 |
Weighted average grant date fair value, granted (in USD per share) | 0 | 0 | 4.25 |
Weighted average grant date fair value, vested (in USD per share) | 4.25 | 4.25 | 0 |
Weighted average grant date fair value, forfeited (in USD per share) | 0 | 0 | 0 |
Weighted average grant date fair value, end of period (in USD per share) | $ 4.25 | $ 4.25 | $ 4.25 |
Restricted stock units | |||
Number of Shares | |||
Number of shares unvested, beginning of period (in shares) | 1,129 | 0 | 0 |
Number of shares, granted (in shares) | 2,715 | 1,200 | 0 |
Number of shares, vested (in shares) | (479) | 0 | 0 |
Number of shares, forfeited (in shares) | (471) | (71) | 0 |
Number of shares unvested, end of period (in shares) | 2,894 | 1,129 | 0 |
Weighted Average Grant Date Fair Value | |||
Weighted average grant date fair value, beginning of period (in USD per share) | $ 18.90 | $ 0 | $ 0 |
Weighted average grant date fair value, granted (in USD per share) | 27.81 | 18.75 | 0 |
Weighted average grant date fair value, vested (in USD per share) | 18.28 | 0 | 0 |
Weighted average grant date fair value, forfeited (in USD per share) | 25.21 | 16.27 | 0 |
Weighted average grant date fair value, end of period (in USD per share) | $ 26.34 | $ 18.90 | $ 0 |
Stock-Based Compensation - 2018
Stock-Based Compensation - 2018 Employee Stock Purchase Plan (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2019 | |
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 | $ 0 | |
Employee stock purchase plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common stock reserved for issuance (in shares) | 1,396,896 | |||
Shares available for grant (in shares) | 4,620,087 | |||
Percentage of employee earnings allowed | 15.00% | |||
Discount price percentage | 85.00% | |||
Offering period (up to) | 27 months | |||
Employee contributions | $ 5,400 | |||
Common stock purchased (in shares) | 776,809 | |||
Weighted-average purchase price per share (in USD per share) | $ 19.48 | |||
Unrecognized stock-based compensation expense | $ 8,500 | |||
Remaining offering period | 1 year 8 months 12 days |
Stock-Based Compensation - Fa_2
Stock-Based Compensation - Fair Value of ESPP Purchase Rights (Details) - Employee stock purchase plan | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility, minimum | 34.40% | 31.90% |
Expected volatility, maximum | 44.60% | 33.50% |
Risk - free interest rate, minimum | 1.50% | 2.30% |
Risk - free interest rate, maximum | 2.50% | 2.70% |
Expected dividend yield | 0.00% | 0.00% |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term (in years) | 6 months | 7 months 6 days |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term (in years) | 2 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 | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |||||||||||
Net loss attributable to common stockholders | $ (38,305) | $ (17,640) | $ (21,628) | $ (21,440) | $ (19,614) | $ (20,924) | $ (17,341) | $ (16,076) | $ (99,013) | $ (73,955) | $ (41,785) |
Weighted-average shares used to compute net loss per share attributable to common stockholders, basic and diluted (in shares) | 96,014 | 53,669 | 22,211 | ||||||||
Net loss per share attributable to common stockholders, basic and diluted (in usd per share) | $ (0.39) | $ (0.18) | $ (0.23) | $ (0.23) | $ (0.21) | $ (0.28) | $ (0.73) | $ (0.68) | $ (1.03) | $ (1.38) | $ (1.88) |
Net Loss Per Share Attributab_4
Net Loss Per Share Attributable to Common Stockholders - Schedule of Potentially Dilutive Securities (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 16,606 | 21,558 | 71,542 |
Stock options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 12,939 | 19,219 | 14,573 |
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) | 2,894 | 1,129 | 0 |
Restricted shares | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 495 | 890 | 1,583 |
ESPP | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 278 | 320 | 0 |
Redeemable convertible preferred stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 0 | 0 | 55,386 |
Income Taxes - Components of Lo
Income Taxes - Components of Loss Before Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||||||||||
U.S. (loss) income | $ (21,644) | $ 1,429 | $ (29,357) | ||||||||
Foreign loss | (64,005) | (72,586) | (11,494) | ||||||||
Total loss before income taxes | $ (26,504) | $ (17,040) | $ (20,762) | $ (21,343) | $ (18,407) | $ (20,387) | $ (16,906) | $ (15,457) | $ (85,649) | $ (71,157) | $ (40,851) |
Income Taxes - Components of th
Income Taxes - Components of the Provision for Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current | |||||||||||
Federal | $ (224) | $ 0 | $ 140 | ||||||||
State | 100 | 58 | 6 | ||||||||
Foreign | 9,245 | 2,306 | 898 | ||||||||
Total current tax expense | 9,121 | 2,364 | 1,044 | ||||||||
Deferred | |||||||||||
Foreign | 4,243 | 0 | (873) | ||||||||
Total deferred tax expense (benefit) | 4,243 | 0 | (873) | ||||||||
Total provision for income taxes | $ 11,801 | $ 600 | $ 866 | $ 97 | $ 1,207 | $ 482 | $ 244 | $ 431 | $ 13,364 | $ 2,364 | $ 171 |
Income Taxes - Differences Betw
Income Taxes - Differences Between Federal and Effective Tax Rate (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal statutory tax rate | 21.00% | 21.00% | 34.00% |
State and local taxes | 4.80% | (1.50%) | 2.40% |
Research and development tax credit | 3.10% | 1.90% | 3.00% |
Stock-based compensation | 19.00% | 0.50% | 0.00% |
Uncertain tax positions | (0.50%) | (1.00%) | (0.20%) |
Foreign tax rate differential | (7.90%) | (9.40%) | (4.00%) |
Change in valuation allowance | (40.80%) | (12.60%) | 2.70% |
Gain on sale of intellectual property | (12.30%) | 0.00% | 0.00% |
Transition tax | 0.00% | 0.00% | (2.70%) |
Revaluation of U.S. deferred income taxes | 0.00% | 0.00% | (34.50%) |
Other | (2.00%) | (2.20%) | (1.10%) |
Effective tax rate | (15.60%) | (3.30%) | (0.40%) |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Net operating losses | $ 65,494 | $ 32,745 |
Deferred revenue | 13,891 | 16,488 |
Stock-based compensation | 10,032 | 5,581 |
Tax credits | 7,585 | 5,320 |
Leases | 10,451 | 2,436 |
Accrued compensation | 918 | 697 |
Other | 263 | 68 |
Total deferred tax assets | 108,634 | 63,335 |
Valuation allowance | (82,237) | (47,266) |
Net deferred tax assets | 26,397 | 16,069 |
Deferred tax liabilities: | ||
Deferred commissions | (15,003) | (13,273) |
Property and equipment | (10,086) | (2,166) |
Intangible assets | (919) | (353) |
Other | (389) | (277) |
Total deferred tax liabilities | (26,397) | (16,069) |
Net deferred tax liabilities | $ 0 | $ 0 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating Loss Carryforwards [Line Items] | ||||
Tax credits carryforwards | $ 10,100 | |||
Tax expense from intercompany transfer | 9,245 | $ 2,306 | $ 898 | |
Deferred taxes from intercompany transfer | 4,243 | 0 | (873) | |
Deferred tax assets, deferred revenue | 13,891 | 16,488 | ||
Deferred tax liabilities, capitalizing commission and fringe benefits | 15,003 | 13,273 | ||
Unrecognized tax benefits | 7,163 | 4,814 | $ 1,199 | $ 736 |
Effective tax rate impact | 100 | 100 | ||
Federal | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating loss carryforwards | 186,000 | |||
State | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating loss carryforwards | 132,000 | |||
Foreign | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating loss carryforwards | 163,600 | |||
Accounting Standards Update 2016-02 | ||||
Operating Loss Carryforwards [Line Items] | ||||
Deferred tax asset, operating lease liability | 1,700 | |||
Deferred tax liability, operating lease right-of-use asset | 1,700 | |||
IPO | ||||
Operating Loss Carryforwards [Line Items] | ||||
Valuation allowance | $ 1,900 | |||
ISRAEL | ||||
Operating Loss Carryforwards [Line Items] | ||||
Tax expense from intercompany transfer | 6,300 | |||
Deferred taxes from intercompany transfer | $ 4,200 |
Income Taxes - Changes in Unrec
Income Taxes - Changes in Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits at the beginning of the period | $ 4,814 | $ 1,199 | $ 736 |
Additions for tax positions in the current year | 2,306 | 3,571 | 446 |
Increase in prior year positions | 90 | 102 | 30 |
Decrease in prior year positions | (89) | (58) | (13) |
Acquisitions | 42 | 0 | 0 |
Unrecognized tax benefits at the end of the period | $ 7,163 | $ 4,814 | $ 1,199 |
Geographic Information - Narrat
Geographic Information - Narrative (Details) - segment | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting [Abstract] | |||
Number of operating segments | 1 | ||
United States | Revenue | Geographic concentration risk | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 63.00% | 67.00% | 69.00% |
Geographic Information - Revenu
Geographic Information - Revenue by Geographic Region (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | $ 97,049 | $ 91,852 | $ 85,384 | $ 80,301 | $ 75,221 | $ 69,440 | $ 63,592 | $ 59,107 | $ 354,586 | $ 267,360 | $ 187,727 |
Americas | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 243,616 | 191,204 | 138,876 | ||||||||
Europe, Middle East and Africa | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 77,676 | 53,839 | 34,121 | ||||||||
Asia Pacific | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | $ 33,294 | $ 22,317 | $ 14,730 |
Geographic Information - Proper
Geographic Information - Property And Equipment, Net By Geographic Area (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | $ 26,847 | $ 11,348 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | 21,464 | 6,487 |
International | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | $ 5,383 | $ 4,861 |
Benefit Plans (Details)
Benefit Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |||
Contribution expense | $ 6.2 | $ 4.8 | $ 3.3 |
Quarterly Results (unaudited)_2
Quarterly Results (unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenue | $ 97,049 | $ 91,852 | $ 85,384 | $ 80,301 | $ 75,221 | $ 69,440 | $ 63,592 | $ 59,107 | $ 354,586 | $ 267,360 | $ 187,727 |
Cost of revenue | 18,429 | 15,245 | 13,918 | 13,226 | 12,399 | 12,161 | 9,879 | 8,728 | 60,818 | 43,167 | 25,588 |
Gross profit | 78,620 | 76,607 | 71,466 | 67,075 | 62,822 | 57,279 | 53,713 | 50,379 | 293,768 | 224,193 | 162,139 |
Operating expenses: | |||||||||||
Sales and marketing | 62,632 | 56,699 | 56,015 | 52,689 | 47,380 | 44,550 | 41,826 | 39,588 | 228,035 | 173,344 | 116,299 |
Research and development | 22,668 | 20,763 | 21,698 | 21,935 | 21,169 | 20,553 | 17,791 | 17,185 | 87,064 | 76,698 | 57,673 |
General and administrative | 20,873 | 17,472 | 15,987 | 15,136 | 13,864 | 13,272 | 10,541 | 9,055 | 69,468 | 46,732 | 28,927 |
Total operating expenses | 106,173 | 94,934 | 93,700 | 89,760 | 82,413 | 78,375 | 70,158 | 65,828 | 384,567 | 296,774 | 202,899 |
Loss from operations | (27,553) | (18,327) | (22,234) | (22,685) | (19,591) | (21,096) | (16,445) | (15,449) | (90,799) | (72,581) | (40,760) |
Interest income (expense), net | 1,153 | 1,527 | 1,594 | 1,556 | 1,510 | 894 | (23) | (26) | 5,830 | 2,355 | (75) |
Other expense, net | (104) | (240) | (122) | (214) | (326) | (185) | (438) | 18 | (680) | (931) | (16) |
Total loss before income taxes | (26,504) | (17,040) | (20,762) | (21,343) | (18,407) | (20,387) | (16,906) | (15,457) | (85,649) | (71,157) | (40,851) |
Provision for income taxes | 11,801 | 600 | 866 | 97 | 1,207 | 482 | 244 | 431 | 13,364 | 2,364 | 171 |
Net loss | (38,305) | (17,640) | (21,628) | (21,440) | (19,614) | (20,869) | (17,150) | (15,888) | (99,013) | (73,521) | (41,022) |
Accretion of Series A and B redeemable convertible preferred stock | 0 | 0 | 0 | 0 | 0 | (55) | (191) | (188) | 0 | (434) | (763) |
Net loss attributable to common stockholders | $ (38,305) | $ (17,640) | $ (21,628) | $ (21,440) | $ (19,614) | $ (20,924) | $ (17,341) | $ (16,076) | $ (99,013) | $ (73,955) | $ (41,785) |
Net loss per share attributable to common stockholders, basic and diluted (in usd per share) | $ (0.39) | $ (0.18) | $ (0.23) | $ (0.23) | $ (0.21) | $ (0.28) | $ (0.73) | $ (0.68) | $ (1.03) | $ (1.38) | $ (1.88) |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - Allowance for Doubtful Accounts - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Year | $ 188 | $ 160 | $ 200 |
Additions Charged to Costs and Expenses | 967 | 149 | 327 |
Deductions | (391) | (121) | (367) |
Balance at End of Year | $ 764 | $ 188 | $ 160 |
Uncategorized Items - q42019ten
Label | Element | Value |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (38,357,000) |
Additional Paid-in Capital [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 61,000 |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (38,418,000) |