Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2016 | |
Document And Entity Information [Abstract] | |
Document Type | S1 |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2016 |
Trading Symbol | ttd |
Entity Registrant Name | TRADE DESK, INC. |
Entity Central Index Key | 1,671,933 |
Entity Filer Category | Non-accelerated Filer |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash | $ 133,400 | $ 4,047 |
Accounts receivable, net | 377,240 | 191,943 |
Prepaid expenses and other current assets | 5,763 | 3,812 |
TOTAL CURRENT ASSETS | 516,403 | 199,802 |
Property and equipment, net | 14,779 | 6,625 |
Deferred taxes, net | 1,778 | 1,171 |
Other assets, non-current | 4,636 | 2,633 |
TOTAL ASSETS | 537,596 | 210,231 |
Current liabilities: | ||
Accounts payable | 321,163 | 108,461 |
Accrued expenses and other current liabilities | 22,973 | 10,439 |
TOTAL CURRENT LIABILITIES | 344,136 | 118,900 |
Debt, net | 25,847 | 44,888 |
Convertible preferred stock warrant liabilities | 6,927 | |
Other liabilities, non-current | 3,233 | 1,170 |
TOTAL LIABILITIES | 373,216 | 171,885 |
Commitments and contingencies (Note 13) | ||
Convertible preferred stock, par value $0.000001; 68,521 shares authorized, 66,330 shares issued and outstanding as of December 31, 2015; liquidation preference of $27,997 as of December 31, 2015; zero shares authorized, issued and outstanding as of December 31, 2016 | 24,204 | |
STOCKHOLDERS' EQUITY | ||
Preferred stock, par value $0.000001; zero shares authorized, issued and outstanding as of December 31, 2015; 100,000 shares authorized, zero shares issued and outstanding as of December 31, 2016 | ||
Common stock, par value $0.000001; zero and 1,000,000 Class A shares authorized, zero and 10,071 shares issued and outstanding as of December 31, 2015 and 2016, respectively; 130,000 and 95,000 Class B shares authorized, 10,884 and 29,060 shares issued and outstanding as of December 31, 2015 and 2016, respectively | 0 | 0 |
Additional paid in capital | 179,198 | 1,039 |
Retained earnings (accumulated deficit) | (14,818) | 13,103 |
TOTAL STOCKHOLDERS' EQUITY | 164,380 | 14,142 |
TOTAL LIABILITIES, CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY | $ 537,596 | $ 210,231 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Convertible preferred stock | ||
Convertible preferred stock, par value (in dollars per share) | $ 0.000001 | $ 0.000001 |
Convertible preferred stock, authorized shares | 0 | 68,521,000 |
Convertible preferred stock, shares issued | 0 | 66,330,000 |
Convertible preferred stock, shares outstanding | 0 | 66,330,000 |
Convertible preferred stock, liquidation preference | $ 27,997 | |
Preferred stock | ||
Preferred stock, par value (in dollars per share) | $ 0.000001 | $ 0.000010 |
Preferred stock, authorized shares | 100,000,000 | 0 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock | ||
Common stock, par value (in dollars per share) | $ 0.000001 | $ 0.000001 |
Common stock, authorized shares | 1,095,000,000 | |
Class A common stock | ||
Common stock | ||
Common stock, authorized shares | 1,000,000,000 | 0 |
Common stock, shares issued | 10,071,000 | 0 |
Common stock, shares outstanding | 10,071,000 | 0 |
Class B common stock | ||
Common stock | ||
Common stock, authorized shares | 95,000,000 | 130,000,000 |
Common stock, shares issued | 29,060,000 | 10,884,000 |
Common stock, shares outstanding | 29,060,000 | 10,884,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Statement [Abstract] | |||
Revenue | $ 202,926 | $ 113,836 | $ 44,548 |
Operating expenses: | |||
Platform operations | 39,876 | 22,967 | 12,559 |
Sales and marketing | 46,056 | 26,794 | 14,590 |
Technology and development | 27,313 | 12,819 | 7,250 |
General and administrative | 32,163 | 13,276 | 9,385 |
Total operating expenses | 145,408 | 75,856 | 43,784 |
Income from operations | 57,518 | 37,980 | 764 |
Interest expense | 3,075 | 1,141 | 843 |
Change in fair value of preferred stock warrant liabilities | 9,458 | 5,961 | 558 |
Foreign currency exchange loss, net | 1,151 | 1,023 | 306 |
Total other expense, net | 13,684 | 8,125 | 1,707 |
Income (loss) before income taxes | 43,834 | 29,855 | (943) |
Provision for (benefit from) income taxes | 23,352 | 13,926 | (948) |
Net income | 20,482 | 15,929 | $ 5 |
Net income (loss) attributable to common stockholders | $ (26,727) | $ 8,764 | |
Net income (loss) per share attributable to common stockholders: | |||
Basic (in dollars per share) | $ (1.46) | $ 0.85 | |
Diluted (in dollars per share) | $ (1.46) | $ 0.39 | |
Weighted-average shares used to compute net income (loss) per share attributable to common stockholders: | |||
Basic (in shares) | 18,280 | 10,290 | 10,233 |
Diluted (in shares) | 18,280 | 16,779 | 13,134 |
CONSOLIDATED STATEMENT OF CONVE
CONSOLIDATED STATEMENT OF CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Convertible Preferred Stock | Common Stock | Common StockIPO | Additional Paid-In Capital | Retained Earnings (Accumulated Deficit) | ||
Balance at beginning of period (in shares) at Dec. 31, 2013 | 57,959 | 10,848 | [1] | |||||
Increase (Decrease) in Shares | ||||||||
Issuance of stock (in shares) | 8,371 | 2 | [1] | |||||
Repurchase and retirement of common stock (in shares) | [1] | (686) | ||||||
Exercise of common stock options (in shares) | [1] | 2 | ||||||
Balance at end of period (in shares) at Dec. 31, 2014 | 66,330 | 10,166 | [1] | |||||
Balance at beginning of period at Dec. 31, 2013 | $ 7,647 | |||||||
Increase (Decrease) in Convertible Preferred Stock | ||||||||
Issuance of Series B convertible preferred stock | 20,350 | |||||||
Balance at end of period at Dec. 31, 2014 | $ 27,997 | |||||||
Balance at beginning of period at Dec. 31, 2013 | $ (5,687) | $ 396 | $ (6,083) | |||||
Increase (Decrease) in Stockholders' Equity (Deficit) | ||||||||
Repurchase and retirement of common stock | (561) | (20) | (541) | |||||
Exercise of common stock options | 1 | 1 | ||||||
Stock-based compensation | 111 | 111 | ||||||
Net income | 5 | 5 | ||||||
Balance at end of period at Dec. 31, 2014 | (6,131) | 488 | (6,619) | |||||
Increase (Decrease) in Shares | ||||||||
Issuance of stock (in shares) | [1] | 7 | ||||||
Exercise of common stock options (in shares) | [1] | 711 | ||||||
Balance at end of period (in shares) at Dec. 31, 2015 | 66,330 | 10,884 | [1] | |||||
Increase (Decrease) in Convertible Preferred Stock | ||||||||
Modification to Series B participation rights | $ (3,793) | |||||||
Balance at end of period at Dec. 31, 2015 | 24,204 | $ 24,204 | ||||||
Increase (Decrease) in Stockholders' Equity (Deficit) | ||||||||
Modification to Series B participation rights | 3,793 | 3,793 | ||||||
Exercise of common stock options | 166 | 166 | ||||||
Stock-based compensation | 385 | 385 | ||||||
Net income | 15,929 | 15,929 | ||||||
Balance at end of period at Dec. 31, 2015 | 14,142 | 1,039 | 13,103 | |||||
Increase (Decrease) in Shares | ||||||||
Issuance of stock (in shares) | [1] | 4,667 | ||||||
Repurchase and retirement of common stock (in shares) | [1] | (189) | ||||||
Exercise of common stock options (in shares) | [1] | 785 | ||||||
Conversion of convertible preferred stock to Class B common stock in connection with IPO (in shares) | (66,236) | 22,079 | [1] | |||||
Net exercise of warrant to purchase Class B common stock (in shares) | [1] | 449 | ||||||
Issuance of common stock under employee stock purchase plan (in shares) | [1] | 276 | ||||||
Grants of restricted stock awards(in shares) | [1] | 180 | ||||||
Balance at end of period (in shares) at Dec. 31, 2016 | [1] | 39,131 | ||||||
Increase (Decrease) in Convertible Preferred Stock | ||||||||
Issuance of Series B convertible preferred stock | $ 59,871 | |||||||
Reclassification of preferred stock warrant liability upon net exercise of warrant | 3,789 | |||||||
Repurchase of convertible preferred stock | (4,623) | |||||||
Conversion of convertible preferred stock to Class B common stock in connection with IPO | $ (83,241) | |||||||
Increase (Decrease) in Stockholders' Equity (Deficit) | ||||||||
Repurchase and retirement of common stock | (2,362) | (2,362) | ||||||
Exercise of common stock options | 488 | 488 | ||||||
Issuance of Class A common stock upon IPO, net of underwriters' commissions and offering costs of $10,366 | 73,634 | 73,634 | ||||||
Stock-based compensation | 5,144 | 5,144 | ||||||
Repurchase of convertible preferred stock | (47,209) | (1,168) | (46,041) | |||||
Conversion of convertible preferred stock to Class B common stock in connection with IPO | 83,241 | 83,241 | ||||||
Conversion of warrant for convertible preferred stock to a warrant for Class B common stock in connection with IPO | 12,596 | 12,596 | ||||||
Net exercise of warrant to purchase Class B common stock | 0 | $ 0 | [1] | 0 | 0 | |||
Issuance of common stock under employee stock purchase plan | 4,224 | 4,224 | ||||||
Grants of restricted stock awards | 0 | $ 0 | [1] | 0 | 0 | |||
Net income | 20,482 | 20,482 | ||||||
Balance at end of period at Dec. 31, 2016 | $ 164,380 | $ 179,198 | $ (14,818) | |||||
[1] | See Note 9-Capitalization for discussion of the establishment of the Company's two classes of common stock and the reclassification of its common stock into Class B common stock prior to the Company's IPO in September 2016. |
CONSOLIDATED STATEMENT OF CONV6
CONSOLIDATED STATEMENT OF CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (Parenthetical) $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($)Class | |
Number of classes of common stock | Class | 2 |
Common Stock | |
Underwriters' commissions and offering costs | $ | $ 10,366 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
OPERATING ACTIVITIES: | |||
Net income | $ 20,482 | $ 15,929 | $ 5 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 3,798 | 1,828 | 680 |
Stock based compensation | 5,056 | 374 | 107 |
Change in fair value of preferred stock warrant liabilities | 9,458 | 5,961 | 558 |
Deferred income taxes | (607) | 338 | (1,509) |
Other | 3,050 | 718 | 289 |
Changes in operating assets and liabilities: | |||
Accounts receivable | (187,736) | (114,170) | (53,315) |
Prepaid expenses and other assets | (2,675) | (3,040) | (527) |
Accounts payable | 209,483 | 50,021 | 35,706 |
Accrued expenses and other liabilities | 14,722 | 5,481 | 3,161 |
Net cash provided by (used in) operating activities | 75,031 | (36,560) | (14,845) |
INVESTING ACTIVITIES: | |||
Purchase of property and equipment | (6,884) | (5,128) | (832) |
Capitalized software development costs | (2,337) | (1,799) | (825) |
Purchase of short-term investment | (551) | ||
Redemption of short-term investment | 551 | ||
Net cash used in investing activities | (9,221) | (6,376) | (2,208) |
FINANCING ACTIVITIES: | |||
Proceeds from line of credit | 75,847 | 30,000 | 1,000 |
Repayment on line of credit | (65,000) | (15,000) | (4,000) |
Proceeds from term debt | 15,000 | 15,000 | |
Repayment of term debt | (30,000) | (3,500) | |
Payment of debt financing costs | (976) | (190) | (178) |
Payment of financing obligations | (550) | (109) | (109) |
Repurchase of preferred stock and common stock | (54,000) | (561) | |
Proceeds from exercise of stock options | 488 | 166 | 1 |
Proceeds from employee stock purchase plan | 4,224 | ||
Payment of stock repurchase costs | (155) | (39) | |
Payment of Series C convertible preferred stock offering cost | (129) | ||
Proceeds from the issuance of Class A common stock in IPO, net of underwriting commissions | 78,120 | ||
Payment of offering costs-IPO | (4,326) | (160) | |
Net cash provided by financing activities | 63,543 | 29,668 | 28,003 |
Increase (decrease) in cash | 129,353 | (13,268) | 10,950 |
Cash-Beginning of year | 4,047 | 17,315 | 6,365 |
Cash-End of year | 133,400 | 4,047 | 17,315 |
SUPPLEMENTAL CASH FLOW INFORMATION: | |||
Cash paid for income taxes | 16,740 | 12,931 | 150 |
Cash paid for interest | 1,696 | 895 | 487 |
Capitalized assets financed by accounts payable | 3,490 | 88 | 27 |
Asset retirement obligation | 354 | ||
Stock-based compensation included in capitalized development costs | 88 | 11 | 4 |
Conversion of convertible preferred stock to Class B common stock | 83,241 | ||
Conversion of warrant for convertible preferred stock to a warrant for Class B common stock and net exercise of warrant to purchase Class B common stock | 12,596 | ||
Deferred IPO offering costs and stock repurchase costs included in accounts payable | $ 58 | ||
Net exercise of warrants to purchase Series Seed convertible preferred stock | 3,789 | ||
Series B convertible preferred stock | |||
FINANCING ACTIVITIES: | |||
Proceeds from issuance of convertible preferred stock | $ 20,350 | ||
Series C convertible preferred stock | |||
FINANCING ACTIVITIES: | |||
Proceeds from issuance of convertible preferred stock | $ 60,000 |
Nature of Operations
Nature of Operations | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | Note 1—Nature of Operations The Trade Desk, Inc. (the “Company”) was formed in November 2009 as a Delaware corporation. The Company is headquartered in Ventura, California and has offices in various cities in the United States, Europe, Asia and Australia. The Company is a technology company that empowers advertising agencies and other buyers by providing a self-service platform that enables clients to purchase and manage data-driven digital advertising campaigns across various advertising formats. Initial Public Offering In September 2016, the Company completed an initial public offering (“IPO”). See Note 9—Capitalization. Risks The Company is subject to certain business risks, including dependence on key employees, competition, market acceptance of the Company’s platform, ability to source demand from buyers of advertising inventory and dependence on growth to achieve its business plan. |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | Note 2—Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation and Principles of Consolidation The accompanying consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and include the operations of the Company and its wholly owned subsidiaries. All intercompany transactions have been eliminated in consolidation. Reverse Stock Split On September 2, 2016, the Company effected a 1-for-3 Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ materially from these estimates. On an on-going Black-Scholes Revenue Recognition The Company generates revenue from clients who enter into agreements to use the Company’s platform to purchase advertising inventory, data and other add-on add-on The Company recognizes revenue when four basic criteria are met: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred or services have been rendered; (3) the fees are fixed or determinable, and (4) collectability is reasonably assured. In applying the foregoing criteria, the Company recognizes revenue upon the completion of a transaction, that is, when a bid is won, subject to satisfying these criteria. Subsequent to a bid being won through the Company’s platform, the associated fees are generally not subject to adjustment or refund. Historically, any refunds and adjustments have not been material. The Company assesses collectability based on a number of factors, including the creditworthiness of a client or advertiser and related payment history. The Company generally bills clients for the gross amount of advertising inventory, data or other add-on The Company reports revenue net of amounts it pays suppliers for the cost of advertising inventory, data and add-on (“ASC”) 605-45, Revenue Recognition -Principal third-party add-on third-party add-on add-on third-party add-on third-party add-on Based on these and other factors, the Company has determined it is not the principal in the purchase and sale of advertising inventory, data and other add-on The Company’s accounts receivable are recorded at the amount of gross billings to clients, net of allowances (“Gross Billings”), for the amounts it is responsible to collect, and accounts payable are recorded at the net amount payable to suppliers. Accordingly, both accounts receivable and accounts payable appear large in relation to revenue reported on a net basis. Operating Expenses The Company classifies its operating expenses into four categories: Platform Operations. stock-based Sales and Marketing. stock-based Technology and Development. stock-based non-current General and Administrative. stock-based Stock-Based Compensation expense related to stock options, restricted stock awards and units, which are referred to collectively as restricted stock, and awards granted under the Company’s employee stock purchase plan, or ESPP, is measured and recognized in the consolidated financial statements based on the fair value of the awards granted. The fair value of each option award is estimated on the grant date using the Black-Scholes option-pricing Stock-based straight-line Stock options granted to non-employees Black-Scholes option-pricing non-employee re-measured Determining the fair value of stock options and ESPP awards requires judgment. The Company’s use of the Black-Scholes risk-free option-pricing These assumptions and estimates are as follows: Fair Value of Common Stock. Valuation of Privately Held Company Equity Securities Issued as Compensation Risk -Free risk-free Expected Term. mid-point Volatility. Dividend Yield. During the year ended December 31, 2016, the Company early adopted Accounting Standards Update, or ASU, No. 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share -Based The Company will continue to use judgment in evaluating the assumptions related to the Company’s stock-based Income Taxes Deferred income tax assets and liabilities are determined based upon the net tax effects of the differences between the Company’s consolidated financial statements carrying amounts and the tax basis of assets and liabilities and are measured using the enacted tax rate expected to apply to taxable income in the years in which the differences are expected to be reversed. A valuation allowance is used to reduce some or all of the deferred tax assets if, based upon the weight of available evidence, it is more likely than not that those deferred tax assets will not be realized. During 2014, the Company released the valuation allowance of $2.2 million previously established against its U.S. net deferred tax assets. Management’s conclusion to release such valuation allowance was due to, among other reasons, three years of cumulative pre-tax pre-tax The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the consolidated financial statements from such positions are then measured based on the largest benefit that has a greater than 50% likelihood of being realized. The Company recognizes interest and penalties accrued related to its uncertain tax positions in its income tax provision in the accompanying consolidated statements of operations. Net Income (Loss) Per Share Attributable to Common Stockholders Basic net income (loss) per share attributable to common stockholders is calculated by dividing the net income (loss) attributable to common stockholders by the weighted-average two-class Diluted net income (loss) per share attributable to common stockholders adjusts the basic net income (loss) per share attributable to common stockholders and the weighted-average treasury-stock as-if-converted Cash As of December 31, 2015 and 2016, cash consisted of cash held in checking accounts. Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are recorded at the invoiced amount, are unsecured and do not bear interest. The Company performs ongoing credit evaluations of its clients and certain advertisers when the Company’s agreements with its clients contain sequential liability terms that provide that the client payments are not due to the Company until the client has received payment from its customers who are advertisers. The allowance for doubtful accounts is based on the best estimate of the amount of probable credit losses in existing accounts receivable. The allowance for doubtful accounts is determined based on historical collection experience and the review in each period of the status of the then-outstanding The following table presents changes in the allowance for doubtful accounts (in thousands): Year Ended December 31, 2014 2015 2016 Beginning balance $ 524 $ 172 $ 686 Add: bad debt expense 144 542 1,890 Less: write-offs, net of recoveries (496 ) (28 ) (2 ) Ending balance $ 172 $ 686 $ 2,574 Property and Equipment, Net Property and equipment are recorded at historical cost, less accumulated depreciation and amortization. Depreciation is computed using the straight-line Years Computer equipment 2 Purchased software 5 Furniture, fixtures and office equipment 5 Leasehold improvements * * Leasehold improvements are amortized on a straight-line Repair and maintenance costs are charged to expense as incurred, while renewals and improvements are capitalized. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss is reflected in the Company’s operating results. Capitalized Software Development Costs The Company capitalizes certain costs associated with creating and enhancing internally developed software related to the Company’s technology infrastructure. These costs include personnel and related employee benefits expenses for employees who are directly associated with and who devote time to software development projects, and external direct costs of materials and services consumed in developing or obtaining the software. Software development costs that do not qualify for capitalization, as further discussed below, are expensed as incurred and recorded in technology and development expenses in the consolidated statements of operations. Software development activities typically consist of three stages: (1) the planning phase; (2) the application and infrastructure development stage; and (3) the post implementation stage. Costs incurred in the planning and post implementation phases, including costs associated with the post-configuration straight-line straight-line The Company does not transfer ownership of its internally developed software, or lease its software, to third parties. Operating Leases The Company records rent expense for operating leases, some of which have escalating rent payments, on a straight-line rent-free straight-line Debt Issuance Costs Debt issuance costs related to the term loans have been recorded as a reduction of the carrying amount of the debt and are amortized to interest expense using the effective interest method. Debt financing costs associated with credit facilities have been deferred and recorded in other assets and are amortized to interest expense on a straight-line Preferred Stock Warrant Liabilities Prior to the completion of the Company’s IPO, warrants to purchase preferred stock of the Company were accounted for as liabilities at fair value because the underlying shares of convertible preferred stock were contingently redeemable, including in the case of a deemed liquidation, which could have obligated the Company to transfer assets to the preferred stockholders. The preferred stock warrants were recorded at fair value at each balance sheet date and changes in the fair value of the preferred stock warrants during each reporting period were recorded in the Company’s consolidated statements of operations until the earlier of the exercise or expiration of the warrants or the warrants’ conversion to warrants to purchase common stock, at which time any remaining liability was reclassified to additional paid-in Fair Value of Financial Instruments Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. Fair value measurements are based on a fair value hierarchy, based on three levels of inputs, of which the first two are considered observable and the last unobservable, which are the following: Level 1—Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Level 2—Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, such as quoted market prices for similar assets and liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability. Level 3—Unobservable inputs. Observable inputs are based on market data obtained from independent sources. The carrying amounts of accounts receivable, accounts payable, accrued expenses and other current liabilities approximate fair value due to the short-term The Company’s convertible preferred stock warrants were measured using unobservable inputs that required a high level of judgment to determine fair value, and were thus classified as Level 3. Certain long lived assets including capitalized software development costs are also subject to measurement at fair value on a non-recurring Concentration of Risk Financial instruments that potentially subject the Company to concentration of credit risk consist principally of cash and accounts receivable. The Company maintains its cash with financial institutions and its cash levels exceed the Federal Deposit Insurance Corporation (FDIC) federally insured limits. For 2014, one client accounted for 11% of Gross Billings. For 2015, two clients each accounted for 12% of Gross Billings. For 2016, three clients accounted for 15%, 13% and 11%, respectively, of Gross Billings. As of December 31, 2015, three clients accounted for 18%, 13% and 10%, respectively, of consolidated accounts receivable. As of December 31, 2016, three clients accounted for 27%, 13% and 12%, respectively, of consolidated accounts receivable. As of December 31, 2015, one supplier accounted for 11% of consolidated accounts payable. As of December 31, 2016, one supplier accounted for 10% of consolidated accounts payable. Foreign Currency Transactions and Translation The Company has entities operating in various countries. Each of these entities’ functional currency is the U.S. Dollar. Transactions in foreign currencies are translated into U.S. Dollars at the rates of exchange in effect at the date of the transaction. Net transaction losses were approximately $0.3 million, $1.0 million, and $1.2 million for the years ended December 31, 2014, 2015 and 2016, respectively, and are included in foreign currency exchange loss, net in the accompanying consolidated statements of operations. Commencing in 2015 the Company entered into forward contracts to hedge foreign currency exposures related primarily to the Company’s foreign currency denominated accounts receivable. The Company does not designate the foreign exchange forward contracts as hedges for accounting purposes and changes in the fair value of the foreign exchange forward contracts are recorded in foreign exchange loss, net in the accompanying consolidated statements of operations. As of December 31, 2015 and 2016, the Company had open forward contracts with aggregate notional amounts of $5.9 million and $27.1 million, respectively. The fair value of the open forward contracts was not material. The Company’s forward contracts generally have terms of 30-210 days. Recent Accounting Pronouncements Under the Jumpstart Our Business Startups Act (“JOBS Act”), the Company meets the definition of an emerging growth company. The Company has irrevocably elected to opt out of the extended transition period for complying with new or revised accounting standards pursuant to Section 107(b) of the JOBS Act. In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update, or ASU, No. 2014-09, Revenue from Contracts with Customers (Topic 606) 2014-09, No. 2015-14, ASU 2014-09 In February 2016, the FASB issued ASU No. 2016-02, Leases right-of-use right-of-use In March 2016, the FASB issued ASU No. 2016-09, Compensation—Stock Compensation (Topic 718) Improvements to Employee Share -Based share-based 2016-09 cumulative-effect stock-based cumulative-effect In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments 2016-13 In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments 2016-15 2016-15 2016-15 |
Net Income (Loss) Per Share Att
Net Income (Loss) Per Share Attributable to Common Stockholders | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share Attributable to Common Stockholders | Note 3—Net Income (Loss) Per Share Attributable to Common Stockholders The Company has two classes of common stock, Class A and Class B. Basic and diluted net income (loss) per share attributable to common stockholders for Class A and Class B common stock were the same because they were entitled to the same liquidation and dividend rights. The computations of the numerators and denominators of the basic and diluted net income (loss) per share attributable to common stockholders are as follows (in thousands, except per share amounts): Year Ended December 31, 2014 2015 2016 Net income (loss) per share attributable to common stockholders—basic: Numerator: Net income $ 5 $ 15,929 $ 20,482 Less: Income attributable to convertible preferred stock (5 ) (10,958 ) — Add: Preferred stock modification — 3,793 — Less: Premium on repurchase of convertible preferred stock — — (47,209 ) Net income (loss) attributable to common stockholders $ — $ 8,764 $ (26,727 ) Denominator: Weighted-average shares outstanding 10,233 10,290 18,280 Net income (loss) per share attributable to common stockholders—basic $ — $ 0.85 $ (1.46 ) Net income (loss) per share attributable to common stockholders—diluted: Numerator: Net income (loss) attributable to common stockholders—basic $ — $ 8,764 $ (26,727 ) Add: Income attributable to dilutive convertible preferred stock — 1,624 — Less: Preferred stock modification — (3,793 ) — Net income (loss) attributable to common stockholders—diluted $ — $ 6,595 $ (26,727 ) Denominator: Weighted-average shares outstanding 10,233 10,290 18,280 Dilutive convertible preferred stock — 2,790 — Options to purchase common stock 2,901 3,699 — Weighted-average shares outstanding—diluted 13,134 16,779 18,280 Net income (loss) per share attributable to common stockholders—diluted $ — $ 0.39 $ (1.46 ) The following table presents the anti-dilutive shares excluded from the calculation of diluted net income (loss) per share attributable to common stockholders (in thousands): Year Ended December 31, 2014 2015 2016 Anti-dilutive equity awards under stock-based award plans 307 248 6,069 Common shares issuable upon conversion of convertible preferred stock 21,761 19,320 — Common shares issuable upon conversion of preferred stock warrants 361 547 — Total shares excluded from net income (loss) per share attributable to common stockholders—diluted 22,429 20,115 6,069 |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Note 4—Property and Equipment, Net Major classes of property and equipment were as follows (in thousands): As of December 31, 2015 2016 Computer equipment $ 1,164 $ 2,542 Purchased software 5,306 6,686 Furniture and fixtures 755 2,563 Construction in progress — 2,319 Leasehold improvements 665 4,374 7,890 18,484 Less: Accumulated depreciation (1,265 ) (3,705 ) $ 6,625 $ 14,779 Depreciation expense for 2014, 2015 and 2016 was $0.3 million, $1.0 million and $2.4 million respectively. The Company has purchased software under a financing arrangement where the Company makes installment payments over a four-year To date, there have been no impairment charges to property and equipment. |
Capitalized Software Developmen
Capitalized Software Development Costs | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Capitalized Software Development Costs | Note 5—Capitalized Software Development Costs Capitalized software development costs, included in other assets, non-current, As of December 31, 2015 2016 Capitalized software development costs, gross $ 2,964 $ 4,280 Less: Accumulated amortization (1,273 ) (1,520 ) Capitalized software development costs, net $ 1,691 $ 2,760 The Company capitalized $0.8 million, $1.8 million and $2.4 million of software development costs in 2014, 2015 and 2016, respectively. Amortization expense was $0.4 million, $0.9 million and $1.4 million for 2014, 2015 and 2016, respectively. Based on the Company’s capitalized software development costs ready for intended use as of December 31, 2016, estimated amortization expense of $1.2 million and $0.5 million is expected to be recognized in 2017 and 2018, respectively. Amortization has not started on $1.1 million of capitalized software development costs that are not yet ready for intended use as of December 31, 2016. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 6—Fair Value Measurements The Company had no material financial instruments that are measured at fair value at December 31, 2016. The table below sets forth a summary of financial instruments that are measured at fair value on a recurring basis at December 31, 2015 (in thousands): Fair Value Measurements at Reporting Date Using As of Quoted Prices in Significant Other (Level 2) Significant Other (Level 3) Convertible preferred stock warrant liabilities $ 6,927 $ — $ — $ 6,927 The Company’s preferred stock warrants are recorded at fair value and were determined to be Level 3 fair value items. The changes in the fair value of preferred stock warrants are summarized below (in thousands): Year Ended December 31, 2014 2015 2016 Beginning balance $ 408 $ 966 $ 6,927 Change in value of preferred stock warrants recorded in other expense, net 558 5,961 9,458 Reclassification to convertible preferred stock upon net exercise of Series Seed warrant in February 2016 — — (3,789 ) Conversion of preferred stock warrants to common stock warrants upon the closing of the Company’s IPO on September 26, 2016 — — (12,596 ) Ending balance $ 966 $ 6,927 $ — In connection with the IPO during September 2016, outstanding warrants exercisable for 1,382,505 shares of convertible preferred stock were automatically converted into warrants exercisable for 460,834 shares of Class B common stock and net exercised resulting in the issuance of 448,545 shares of Class B common stock based on the IPO price of $18.00 per share and taking into account the 1-for-3 paid-in The Company determined the fair value of the preferred stock warrants utilizing the Black-Scholes Series Seed Series A-3 As of Dec 31, As of As of Dec 31, As of 2014 2015 Sept 26, 2016 2014 2015 Sept 26, 2016 Contractual term (years) 6.7 5.7 4.9 8.2 7.2 6.5 Expected volatility 53.9 % 60.3 % 59.1 % 54.1 % 61.3 % 59.1 % Risk-free interest rate 1.97 % 1.84 % 1.12 % 2.07 % 2.09 % 1.34 % Estimated dividend yield — % — % — % — % — % — % |
Accounts Payable
Accounts Payable | 12 Months Ended |
Dec. 31, 2016 | |
Payables and Accruals [Abstract] | |
Accounts Payable | Note 7—Accounts Payable Accounts payable included the following (in thousands): As of December 31, 2015 2016 Accounts payable–media and data $ 105,085 $ 307,018 Accounts payable–other 3,376 14,145 Total $ 108,461 $ 321,163 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Debt | Note 8—Debt Revolving Credit Facility On March 30, 2016, the Company entered into a credit agreement (the “Revolving Credit Agreement”) with a syndicate of banks, led by Citibank, N.A. The Revolving Credit Agreement provides for a senior secured asset-based Borrowed funds bear interest, dependent on the Company’s time and method of borrowing, at an annual rate of either a Base Rate or a LIBOR rate, plus an applicable margin (“Base Rate Borrowings” and “LIBOR Rate Borrowings”). The Base Rate is defined as a fluctuating interest rate equal to the greatest of (1) the Federal Funds rate plus 0.5%, (2) the Prime Rate, and (3) one month LIBOR rate plus 2.0%. The applicable margin is defined as a rate between 0.5% to 1.0% for Base Rate advances and between 1.5% and 2.0% for LIBOR advances, depending on the amount of monthly average excess availability on the facility. The fee for undrawn amounts ranges from 0.25% to 0.30%. Interest is payable either (a) monthly for Base Rate Borrowings or (b) the last day of the Interest Period applicable for LIBOR Rate Borrowings. At December 31, 2016, all borrowings were designated LIBOR Rate Borrowings that bore interest at a weighted average rate of 2.19%. The Credit Facility matures and all outstanding amounts become due and payable on March 30, 2018. The Credit Facility contains customary conditions to borrowings, events of default and covenants, including covenants that restrict our ability to sell assets, make changes to the nature of our business, engage in mergers or acquisitions, incur, assume or permit to exist additional indebtedness and guarantees, create or permit to exist liens, pay dividends, issue equity instruments, make distributions or redeem or repurchase capital stock or make other investments, engage in transactions with affiliates and make payments in respect of subordinated debt. The Credit Facility also requires the Company to maintain compliance with a consolidated fixed charge coverage ratio covenant of at least 1.15 to 1.00. As of December 31, 2016, the Company was in compliance with all covenants. On March 30, 2016, the Company borrowed $50.8 million under the Revolving Credit Agreement to repay all then outstanding borrowings under, and terminate, the Company’s prior debt facility, as well as pay fees and expenses associated with the Revolving Credit Agreement. As of December 31, 2016, $25.8 million was outstanding under the Revolving Credit Agreement. In connection with the Company’s prior debt facility, the Company was required to pay a fee of $0.8 million upon the occurrence of the IPO. This liquidation fee was paid upon the completion of the IPO and recorded as a component of interest expense in the consolidated statements of operations for the year ended December 31, 2016. |
Capitalization
Capitalization | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Capitalization | Note 9—Capitalization In September 2016, and in preparation of the IPO and the establishment of two classes of common stock, each share of the then outstanding common stock was reclassified to Class B common stock. The Company sold Class A common stock in the IPO. The Class A and Class B have the same rights and preferences including rights to dividends, except the Class B is entitled to ten votes per share and the Class A is entitled to one vote per share. Each share of Class B common stock is convertible at any time at the option of the holder into one share of Class A common stock. In addition, each share of Class B common stock will convert automatically into one share of Class A common stock upon any transfer, except for certain transfers described in the Company’s restated certificate of incorporation, including, without limitation, certain transfers for tax and estate planning purposes. During the period from September 2016 through December 2016, 4.2 million shares of Class B common stock were converted to Class A common stock. In addition, upon the earlier of (1) the date on which the outstanding shares of Class B common stock represent less than 10% of the aggregate number of the then outstanding shares of Class A common stock and Class B common stock and (2) the affirmative vote or written consent of the holders of at least 66 2 3 As of December 31, 2016, the Company is authorized to issue 1,095,000,000 shares of common stock, par value $0.000001 per share, and 100,000,000 shares of preferred stock, par value, $0.000001 per share. The authorized common stock consists of 1,000,000,000 shares of Class A common stock and 95,000,000 shares of Class B common stock. No shares of the newly authorized preferred stock are outstanding as of December 31, 2016. The Company’s board of directors has the discretion to determine the rights, preferences, privileges and restrictions, including voting rights, dividend rights, conversion rights, redemption privileges and liquidation preferences, of each series of preferred stock. Initial Public Offering On September 26, 2016, the Company completed its IPO whereby 4,666,667 shares of Class A common stock were issued and sold by the Company and 700,000 shares of Class A common stock were sold by selling stockholders, pursuant to the underwriters’ exercise of their over-allotment option, at the IPO price of $18.00 per share. The Company received net proceeds from the offering of approximately $78.1 million after deducting underwriting discounts and commissions of $5.9 million, but before deducting offering costs of $4.5 million. The Company did not receive any proceeds from the sales of shares by the selling stockholders. In connection with the Company’s IPO: (1) all shares of the Company’s outstanding Series Seed, A-1, A-2, A-3, one-third 1-for-3 In addition, upon completion of the IPO, costs associated with the IPO of $4.5 million were reclassified from other assets, non-current paid-in Convertible Preferred Stock At December 31, 2015, the Company’s outstanding convertible preferred stock consisted of the following (in thousands, except original issue price per share): Shares Shares Original Carrying Liquidation Seed 23,450 22,250 $ 0.100000 $ 2,225 $ 2,225 Series A-1 15,292 15,292 0.126084 1,928 1,928 Series A-2 6,987 6,987 0.146976 1,027 1,027 Series A-3 14,421 13,430 0.183720 2,467 2,467 Series B 8,371 8,371 2.431000 16,557 20,350 Total 68,521 66,330 $ 24,204 $ 27,997 In February 2016, the Company issued 11,500,587 shares of Series C convertible preferred stock for $60.0 million and used $54.0 million of the proceeds to repurchase 3,897,928 and 8,485,350 shares of Series Seed preferred stock (including shares issued upon exercise of warrant described below) and Series A preferred stock (comprising shares of Series A-1, A-2 A-3), The repurchase price of the convertible preferred stock, including legal costs, of $51.8 million exceeded the carrying value of $4.6 million at the date of repurchase. The repurchase price in excess of the then carrying value of the preferred stock of $47.2 million was recorded as a reduction to additional paid-in All shares of the Company’s outstanding Series Seed, A-1, A-2, A-3, one-third Modification of Series B Preferred Stock In 2015, the Series B preferred stockholders agreed to modify the liquidation rights and preferences of the Series B preferred stock. Prior to the modification, the Series B preferred stockholders were entitled to receive upon a liquidation event and prior to amounts payable to the other holders of convertible preferred stock or common stock an amount per share equal to the Series B preferred stock original issue price (“Series B Preferred Initial Liquidation Amount”), plus any dividends declared but unpaid thereon. Thereafter, after payment of the liquidation preference to the other holders of convertible preferred stock, the remaining assets of the Company available for distribution to its stockholders were to be distributed among the holders of shares of common stock and Series B preferred stock, pro rata based on the number of shares held by each holder on an as-converted After the modification, the Series B are entitled to receive upon a liquidation event the liquidation preference as described below under “— Rights and Preferences of Convertible Preferred Stock—Liquidation Preferences.” The Company recorded the modification as an extinguishment as the fair value of the Series B preferred stock immediately before and immediately after the modification were substantially different (i.e., more than 10%). The Company recorded the difference between the carrying value of the Series B preferred stock and the fair value after the modification, of $3.8 million, as a reduction to the carrying value of the Series B preferred stock and a reduction to accumulated deficit. The $3.8 million has been recorded as an adjustment to the net income attributable to common stockholders in accordance with ASC 260, Earnings per Share Rights and Preferences of Convertible Preferred Stock Prior to the Company’s IPO, the rights and preferences of convertible preferred stock were as follows: Voting Rights: Dividends Rights: Series A-1 Series A-2 Series A-3 as-converted Liquidation Preferences: The liquidation preference provisions of the convertible preferred stock were considered contingent redemption provisions because there were certain elements that were not solely within the control of the Company, such as a change in control of the Company. Accordingly, prior to the conversion to common stock, the Company presented the convertible preferred stock within the mezzanine portion of the accompanying consolidated balance sheets. Conversion Features: non-assessable A-1 A-2 A-3 A-1 A-2 A-3 Each share of convertible preferred stock would automatically convert into shares of common stock at its then effective conversion rate immediately upon the earlier of (1) a Qualified IPO, and (2) the date specified by a vote of the holders of at least a majority of all then-outstanding as-converted Upon the conversion of the convertible preferred stock to common stock in connection with the Company’s IPO, the carrying value of the convertible preferred stock was reclassified to additional paid-in |
Stock-BasedCompensation
Stock-BasedCompensation | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-BasedCompensation | Note 10—Stock-Based Total stock-based Year Ended December 31, 2014 2015 2016 Platform operations $ 14 $ 71 $ 756 Sales and marketing 50 127 1,707 Technology and development 909 85 1,513 General and administrative 3,572 91 1,080 Total $ 4,545 $ 374 $ 5,056 In February 2014, concurrent with the Series B financing, the Company repurchased 685,586 shares of common stock from its founders for total consideration of $5.0 million. The Company recorded $0.6 million in additional paid-in Stock Compensation stock-based Stock-Based Award Plans The Company is authorized to issue stock options, restricted stock, restricted stock units, stock appreciation rights and other stock-based and cash-based awards under its 2016 Incentive Award Plan. As of December 31, 2016, 3.4 million shares remained available for grant under the Company’s 2016 Incentive Award Plan. The number of shares authorized for grant is subject to increase each year on January 1, equal to the lesser of (a) 4% of the Class A common stock outstanding (on an as-converted Stock options granted under the Company’s stock incentive plans generally vest over four years, subject to the holder’s continued service through the vesting date, and expire no later than 10 years from the date of grant. Restricted stock units and restricted stock awards generally vest over one-year Stock Option Information A summary of stock option activity for the year ended December 31, 2016 is as follows: Shares Weighted- Weighted-Average Life (years) Aggregate Outstanding as of December 31, 2015 5,177 $ 0.74 7.4 Granted 1,110 21.35 Exercised (785 ) 0.63 Cancelled (73 ) 3.21 Outstanding as of December 31, 2016 (1) 5,429 $ 4.94 7.1 $ 124,243 Exercisable as of December 31, 2016 3,148 $ 0.58 5.8 $ 85,266 (1) Includes options to purchase 389 and 5,040 shares of Class A and Class B common stock, respectively. The fair value of options on the date of grant is estimated based on the Black-Scholes Year Ended December 31, 2014 2015 2016 Expected term (years) 6.0 6.0 6.0 Expected volatility 62.5 % 64.5 % 58.1 % Risk-free interest rate 2.02 % 1.62 % 1.62 % Estimated dividend yield — % — % — % The weighted average grant date fair value per share of stock options granted for the years ended December 31, 2014, 2015 and 2016 and were $0.48, $1.12 and $11.61, respectively. The total intrinsic value of options exercised during the years ended December 31, 2014, 2015 and 2016 were $1,000, $1.9 million and $13.7 million, respectively. Stock-based compensation expense related to stock options totaled, $0.1 million, $0.4 million and $1.7 million for the years ended December 31, 2014, 2015 and 2016, respectively. At December 31, 2016, the Company had unrecognized employee stock-based weighted-average Restricted Stock and Restricted Stock Units The Company granted 193,000 restricted stock awards and units in 2016, with a weighted average grant date fair value of $29.65. No restricted stock or restricted stock unit award has vested or been forfeited as of December 31, 2016. Stock compensation expense on restricted stock was $0.1 million for the year ended December 31, 2016. At December 31, 2016, the Company had unrecognized employee stock-based compensation relating to restricted stock of approximately $5.6 million, which is expected to be recognized over a weighted-average period of 3.8 years. Employee Stock Purchase Plan In September 2016, the Company established an ESPP with 800,000 shares of Class A common stock available for issuance. In addition, on the first day of each calendar year beginning on January 1, 2017 and ending on (and including) January 1, 2026, the number of shares available for issuance under the ESPP will be increased by a number of shares equal to the least of (1) 800,000 shares, (2) 1% of the shares outstanding (on an as-converted Under the ESPP, all eligible employees were auto-enrolled upon the IPO and each eligible employee was then permitted to authorize payroll deductions of up to 100% of their compensation to purchase shares of Class A common stock, subject to applicable ESPP and statutory limits. The ESPP provides for offering periods generally up to two years, with purchases occurring and new offering periods commencing generally every six months. The first ESPP purchase (pursuant to a truncated purchase period starting on the Company’s IPO) occurred on December 29, 2016, and subsequent purchases will generally occur on May 15th and November 15th each year. At each purchase date, employees are able to purchase shares at 85% of the lower of (1) the closing market price per share of Class A common stock on the employee’s enrollment into the applicable offering period and (2) the closing market price per share of Class A common stock on the purchase date. The ESPP has an automatic reset feature, whereby the offering period resets if the fair value of the Company’s common stock on a purchase date is less than that on the original offering date. The fair value of ESPP shares was estimated using the Black-Scholes option pricing model with the following weighted-average assumptions: Expected term (years) 0.8 Expected volatility 48.9 % Risk-free interest rate 0.69 % Estimated dividend yield — % The first offering period allowed for cash contributions in addition to payroll deductions, and as a result, stock-based compensation expense for this offering period was marked-to-market. mark-to-market non-transferability |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 11—Income Taxes The following are the domestic and foreign components of the Company’s income (loss) before income taxes (in thousands): Year Ended December 31, 2014 2015 2016 Domestic $ (1,226 ) $ 29,224 $ 45,904 International 283 631 (2,070 ) Income (loss) before income taxes $ (943 ) $ 29,855 $ 43,834 The following are the components of the provision for (benefit from) income taxes (in thousands): Year Ended December 31, 2014 2015 2016 Current: Federal $ 321 $ 11,123 $ 18,300 State and local 167 2,325 5,595 Foreign 73 140 64 Total current provision 561 13,588 23,959 Deferred: Federal (827 ) 197 (68 ) State and local (682 ) 141 (539 ) Total deferred (benefit) provision (1,509 ) 338 (607 ) Total provision for (benefit from) income taxes $ (948 ) $ 13,926 $ 23,352 A reconciliation of the statutory tax rate to the effective tax rate for the periods presented is as follows: Year Ended December 31, 2014 2015 2016 U.S. federal statutory income tax rate 34.0 % 35.0 % 35.0 % State and local income taxes, net of federal benefit 8.5 5.4 7.5 Foreign income at other than U.S. rates 2.0 (0.3 ) 1.1 Stock-based compensation expense (163.8 ) 0.4 3.8 Meals and entertainment (5.5 ) 0.2 0.3 Change in preferred stock warrant liabilities (20.1 ) 7.0 7.6 Research and development credit 20.6 (1.0 ) (3.1 ) Other permanent items (3.4 ) (0.1 ) 0.4 Change in valuation allowance 228.2 — 0.7 Effective income tax rate 100.5 % 46.6 % 53.3 % Set forth below are the tax effects of temporary differences that give rise to a significant portion of the deferred tax assets and deferred tax liabilities (in thousands). As of December 31, 2015 2016 Deferred tax assets (liabilities): Reserves and allowances $ 919 $ 1,774 Accrued expenses 2,093 2,651 Net operating losses 55 326 Other 238 1,166 Prepaid expenses (244 ) (484 ) Property and equipment (1,226 ) (2,254 ) Capitalized software development costs (664 ) (1,075 ) Valuation allowance — (326 ) Total deferred tax assets, net $ 1,171 $ 1,778 As of each reporting date, the Company’s management considers new evidence, both positive and negative, that could impact management’s view with regard to future realization of deferred tax assets. During 2016, management recorded a valuation allowance of $0.3 million against its United Kingdom (“U.K.”) net deferred tax assets, based on the previous history of cumulative losses and the conclusion that future taxable profit may not be available for the utilization of the deferred tax assets for U.K. income tax purposes. As of December 31, 2016, the Company had net operating loss carryforwards (“NOLs”) in the U.K. of approximately $0.3 million, which carry forward indefinitely. As of December 31, 2016, the Company had state research and development tax credits of approximately $0.5 million, which carry forward indefinitely. As of December 31, 2016, unremitted earnings of the subsidiaries outside of the United States were approximately $0.8 million, on which no U.S. taxes have been paid. The Company’s intention is to indefinitely reinvest these earnings outside the United States. Upon distribution of those earnings in the form of a dividend or otherwise, the Company would be subject to both U.S. income taxes (subject to an adjustment for foreign tax credits) and withholding taxes payable to various foreign countries. The amounts of such tax liabilities that might be payable upon repatriation of foreign earnings, after consideration of corresponding foreign tax credits, are not material. As of December 31, 2015, the Company did not have any unrecognized tax benefits. As of December 31, 2016, the Company had gross unrecognized tax benefits of approximately $1.0 million which would affect the Company’s effective tax rate if recognized. The Company classifies liabilities for unrecognized tax benefits for which it does not anticipate payment or receipt of cash within one year in other liabilities, non-current. A reconciliation of the beginning and ending amounts of gross unrecognized tax benefits is as follows (in thousands): Year Ended Beginning balance $ — Increases related to current year tax positions 605 Increases related to prior year tax positions 402 Ending balance $ 1,007 Interest and penalties related to the Company’s unrecognized tax benefits accrued as of December 31, 2016 were not material. The Company does not expect significant changes to the unrecognized tax benefits during the next twelve months. The Company is subject to examination by taxing authorities in the U.S. federal, state and various foreign jurisdictions. For federal and state income taxes, the Company remains subject to examination for 2010 and subsequent years. The majority of our foreign subsidiaries remain subject to examination by the local taxing authorities for 2013 and subsequent periods. |
Segment and Geographic Informat
Segment and Geographic Information | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information | Note 12—Segment and Geographic Information Management has determined that the Company operates as one operating segment. The Company’s chief operating decision maker reviews financial information on an aggregated and consolidated basis, together with certain operating and performance measures principally to make decisions about how to allocate resources and to measure the Company’s performance. Gross Billings, based on the billing address of the clients or client affiliates, were as follows (in thousands): Year Ended December 31, 2014 2015 2016 US $ 172,877 $ 477,585 $ 868,877 International 28,927 52,390 121,684 Total $ 201,804 $ 529,975 $ 990,561 No single international country accounted for more than 10% of Gross Billings for the years ended December 31, 2014, 2015 and 2016, respectively. The Company’s property and equipment, net located outside the United States was $0.1 million and $2.5 million as of December 31, 2015 and 2016, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 13—Commitments and Contingencies As of December 31, 2016, the Company has various non-cancelable non-cancelable Year Amount 2017 $ 6,594 2018 8,216 2019 7,647 2020 7,258 2021 5,353 Thereafter 1,703 $ 36,771 Rent expense for non-cancelable As of December 31, 2016, the Company has non-cancelable Year Amount 2017 $ 2,920 2018 1,217 2019 358 $ 4,495 As of December 31, 2016, future principal payments for the financing obligation related to the purchase of software total $1.0 million and are scheduled to be paid in 2017. Guarantees and Indemnification In the ordinary course of business, the Company may provide indemnifications of varying scope and terms to clients, vendors, lessors, business partners, and other parties with respect to certain matters, including, but not limited to, losses arising out of breach of such agreements, services to be provided by the Company or from intellectual property infringement claims made by third parties. In addition, the Company has entered into indemnification agreements with directors and certain officers and employees that will require the Company, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors, officers or employees. No demands have been made upon the Company to provide indemnification under such agreements, and thus there are no claims that the Company is aware of that could have a material effect on the Company’s balance sheet, statement of operations or statement of cash flows. Accordingly, no amounts for any obligation have been recorded as of December 31, 2015 and 2016. Litigation From time to time, the Company is subject to various legal proceedings and claims, either asserted or unasserted, that arise in the ordinary course of business. Although the outcome of the various legal proceedings and claims cannot be predicted with certainty, management does not believe that any of these proceedings or other claims will have a material adverse effect on the Company’s business, financial condition, results of operations or cash flows. Employment Contracts The Company has entered into agreements with severance terms with certain employees and officers, all of whom are employed on an at-will |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 14—Related Party Transactions From January to May 2015, the Company processed $0.2 million of spend through its platform with Falk Technologies GmbH. Thomas Falk, one of the Company’s directors, was previously the chief executive officer of Falk Technologies GmbH during such period. |
Basis of Presentation and Sum22
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The accompanying consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and include the operations of the Company and its wholly owned subsidiaries. All intercompany transactions have been eliminated in consolidation. |
Reverse Stock Split | Reverse Stock Split On September 2, 2016, the Company effected a 1-for-3 |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ materially from these estimates. On an on-going Black-Scholes |
Revenue Recognition | Revenue Recognition The Company generates revenue from clients who enter into agreements to use the Company’s platform to purchase advertising inventory, data and other add-on add-on The Company recognizes revenue when four basic criteria are met: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred or services have been rendered; (3) the fees are fixed or determinable, and (4) collectability is reasonably assured. In applying the foregoing criteria, the Company recognizes revenue upon the completion of a transaction, that is, when a bid is won, subject to satisfying these criteria. Subsequent to a bid being won through the Company’s platform, the associated fees are generally not subject to adjustment or refund. Historically, any refunds and adjustments have not been material. The Company assesses collectability based on a number of factors, including the creditworthiness of a client or advertiser and related payment history. The Company generally bills clients for the gross amount of advertising inventory, data or other add-on The Company reports revenue net of amounts it pays suppliers for the cost of advertising inventory, data and add-on (“ASC”) 605-45, Revenue Recognition -Principal third-party add-on third-party add-on add-on third-party add-on third-party add-on Based on these and other factors, the Company has determined it is not the principal in the purchase and sale of advertising inventory, data and other add-on The Company’s accounts receivable are recorded at the amount of gross billings to clients, net of allowances (“Gross Billings”), for the amounts it is responsible to collect, and accounts payable are recorded at the net amount payable to suppliers. Accordingly, both accounts receivable and accounts payable appear large in relation to revenue reported on a net basis. |
Operating Expenses | Operating Expenses The Company classifies its operating expenses into four categories: Platform Operations. stock-based Sales and Marketing. stock-based Technology and Development. stock-based non-current General and Administrative. stock-based |
Stock-Based Compensation | Stock-Based Compensation expense related to stock options, restricted stock awards and units, which are referred to collectively as restricted stock, and awards granted under the Company’s employee stock purchase plan, or ESPP, is measured and recognized in the consolidated financial statements based on the fair value of the awards granted. The fair value of each option award is estimated on the grant date using the Black-Scholes option-pricing Stock-based straight-line Stock options granted to non-employees Black-Scholes option-pricing non-employee re-measured Determining the fair value of stock options and ESPP awards requires judgment. The Company’s use of the Black-Scholes risk-free option-pricing These assumptions and estimates are as follows: Fair Value of Common Stock. Valuation of Privately Held Company Equity Securities Issued as Compensation Risk -Free risk-free Expected Term. mid-point Volatility. Dividend Yield. During the year ended December 31, 2016, the Company early adopted Accounting Standards Update, or ASU, No. 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share -Based The Company will continue to use judgment in evaluating the assumptions related to the Company’s stock-based |
Income Taxes | Income Taxes Deferred income tax assets and liabilities are determined based upon the net tax effects of the differences between the Company’s consolidated financial statements carrying amounts and the tax basis of assets and liabilities and are measured using the enacted tax rate expected to apply to taxable income in the years in which the differences are expected to be reversed. A valuation allowance is used to reduce some or all of the deferred tax assets if, based upon the weight of available evidence, it is more likely than not that those deferred tax assets will not be realized. During 2014, the Company released the valuation allowance of $2.2 million previously established against its U.S. net deferred tax assets. Management’s conclusion to release such valuation allowance was due to, among other reasons, three years of cumulative pre-tax pre-tax The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the consolidated financial statements from such positions are then measured based on the largest benefit that has a greater than 50% likelihood of being realized. The Company recognizes interest and penalties accrued related to its uncertain tax positions in its income tax provision in the accompanying consolidated statements of operations. |
Net Income (Loss) Per Share Attributable to Common Stockholders | Net Income (Loss) Per Share Attributable to Common Stockholders Basic net income (loss) per share attributable to common stockholders is calculated by dividing the net income (loss) attributable to common stockholders by the weighted-average two-class Diluted net income (loss) per share attributable to common stockholders adjusts the basic net income (loss) per share attributable to common stockholders and the weighted-average treasury-stock as-if-converted |
Cash | Cash As of December 31, 2015 and 2016, cash consisted of cash held in checking accounts. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are recorded at the invoiced amount, are unsecured and do not bear interest. The Company performs ongoing credit evaluations of its clients and certain advertisers when the Company’s agreements with its clients contain sequential liability terms that provide that the client payments are not due to the Company until the client has received payment from its customers who are advertisers. The allowance for doubtful accounts is based on the best estimate of the amount of probable credit losses in existing accounts receivable. The allowance for doubtful accounts is determined based on historical collection experience and the review in each period of the status of the then-outstanding The following table presents changes in the allowance for doubtful accounts (in thousands): Year Ended December 31, 2014 2015 2016 Beginning balance $ 524 $ 172 $ 686 Add: bad debt expense 144 542 1,890 Less: write-offs, net of recoveries (496 ) (28 ) (2 ) Ending balance $ 172 $ 686 $ 2,574 |
Property and Equipment, Net | Property and Equipment, Net Property and equipment are recorded at historical cost, less accumulated depreciation and amortization. Depreciation is computed using the straight-line Years Computer equipment 2 Purchased software 5 Furniture, fixtures and office equipment 5 Leasehold improvements * * Leasehold improvements are amortized on a straight-line Repair and maintenance costs are charged to expense as incurred, while renewals and improvements are capitalized. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss is reflected in the Company’s operating results. |
Capitalized Software Development Costs | Capitalized Software Development Costs The Company capitalizes certain costs associated with creating and enhancing internally developed software related to the Company’s technology infrastructure. These costs include personnel and related employee benefits expenses for employees who are directly associated with and who devote time to software development projects, and external direct costs of materials and services consumed in developing or obtaining the software. Software development costs that do not qualify for capitalization, as further discussed below, are expensed as incurred and recorded in technology and development expenses in the consolidated statements of operations. Software development activities typically consist of three stages: (1) the planning phase; (2) the application and infrastructure development stage; and (3) the post implementation stage. Costs incurred in the planning and post implementation phases, including costs associated with the post-configuration straight-line straight-line The Company does not transfer ownership of its internally developed software, or lease its software, to third parties. |
Operating Leases | Operating Leases The Company records rent expense for operating leases, some of which have escalating rent payments, on a straight-line rent-free straight-line |
Debt Issuance Costs | Debt Issuance Costs Debt issuance costs related to the term loans have been recorded as a reduction of the carrying amount of the debt and are amortized to interest expense using the effective interest method. Debt financing costs associated with credit facilities have been deferred and recorded in other assets and are amortized to interest expense on a straight-line |
Preferred Stock Warrant Liabilities | Preferred Stock Warrant Liabilities Prior to the completion of the Company’s IPO, warrants to purchase preferred stock of the Company were accounted for as liabilities at fair value because the underlying shares of convertible preferred stock were contingently redeemable, including in the case of a deemed liquidation, which could have obligated the Company to transfer assets to the preferred stockholders. The preferred stock warrants were recorded at fair value at each balance sheet date and changes in the fair value of the preferred stock warrants during each reporting period were recorded in the Company’s consolidated statements of operations until the earlier of the exercise or expiration of the warrants or the warrants’ conversion to warrants to purchase common stock, at which time any remaining liability was reclassified to additional paid-in |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. Fair value measurements are based on a fair value hierarchy, based on three levels of inputs, of which the first two are considered observable and the last unobservable, which are the following: Level 1—Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Level 2—Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, such as quoted market prices for similar assets and liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability. Level 3—Unobservable inputs. Observable inputs are based on market data obtained from independent sources. The carrying amounts of accounts receivable, accounts payable, accrued expenses and other current liabilities approximate fair value due to the short-term The Company’s convertible preferred stock warrants were measured using unobservable inputs that required a high level of judgment to determine fair value, and were thus classified as Level 3. Certain long lived assets including capitalized software development costs are also subject to measurement at fair value on a non-recurring |
Concentration of Risk | Concentration of Risk Financial instruments that potentially subject the Company to concentration of credit risk consist principally of cash and accounts receivable. The Company maintains its cash with financial institutions and its cash levels exceed the Federal Deposit Insurance Corporation (FDIC) federally insured limits. For 2014, one client accounted for 11% of Gross Billings. For 2015, two clients each accounted for 12% of Gross Billings. For 2016, three clients accounted for 15%, 13% and 11%, respectively, of Gross Billings. As of December 31, 2015, three clients accounted for 18%, 13% and 10%, respectively, of consolidated accounts receivable. As of December 31, 2016, three clients accounted for 27%, 13% and 12%, respectively, of consolidated accounts receivable. As of December 31, 2015, one supplier accounted for 11% of consolidated accounts payable. As of December 31, 2016, one supplier accounted for 10% of consolidated accounts payable. |
Foreign Currency Transactions and Translation | Foreign Currency Transactions and Translation The Company has entities operating in various countries. Each of these entities’ functional currency is the U.S. Dollar. Transactions in foreign currencies are translated into U.S. Dollars at the rates of exchange in effect at the date of the transaction. Net transaction losses were approximately $0.3 million, $1.0 million, and $1.2 million for the years ended December 31, 2014, 2015 and 2016, respectively, and are included in foreign currency exchange loss, net in the accompanying consolidated statements of operations. Commencing in 2015 the Company entered into forward contracts to hedge foreign currency exposures related primarily to the Company’s foreign currency denominated accounts receivable. The Company does not designate the foreign exchange forward contracts as hedges for accounting purposes and changes in the fair value of the foreign exchange forward contracts are recorded in foreign exchange loss, net in the accompanying consolidated statements of operations. As of December 31, 2015 and 2016, the Company had open forward contracts with aggregate notional amounts of $5.9 million and $27.1 million, respectively. The fair value of the open forward contracts was not material. The Company’s forward contracts generally have terms of 30-210 days. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Under the Jumpstart Our Business Startups Act (“JOBS Act”), the Company meets the definition of an emerging growth company. The Company has irrevocably elected to opt out of the extended transition period for complying with new or revised accounting standards pursuant to Section 107(b) of the JOBS Act. In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update, or ASU, No. 2014-09, Revenue from Contracts with Customers (Topic 606) 2014-09, No. 2015-14, ASU 2014-09 In February 2016, the FASB issued ASU No. 2016-02, Leases right-of-use right-of-use In March 2016, the FASB issued ASU No. 2016-09, Compensation—Stock Compensation (Topic 718) Improvements to Employee Share -Based share-based 2016-09 cumulative-effect stock-based cumulative-effect In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments 2016-13 In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments 2016-15 2016-15 2016-15 |
Basis of Presentation and Sum23
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Schedule of Changes in Allowance for Doubtful Accounts | The following table presents changes in the allowance for doubtful accounts (in thousands): Year Ended December 31, 2014 2015 2016 Beginning balance $ 524 $ 172 $ 686 Add: bad debt expense 144 542 1,890 Less: write-offs, net of recoveries (496 ) (28 ) (2 ) Ending balance $ 172 $ 686 $ 2,574 |
Schedule of Useful lives of PPE | Depreciation is computed using the straight-line Years Computer equipment 2 Purchased software 5 Furniture, fixtures and office equipment 5 Leasehold improvements * * Leasehold improvements are amortized on a straight-line |
Net Income (Loss) Per Share A24
Net Income (Loss) Per Share Attributable to Common Stockholders (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Computation of numerators and denominators of basic and diluted net income (loss) per share attributable to common stockholders | The computations of the numerators and denominators of the basic and diluted net income (loss) per share attributable to common stockholders are as follows (in thousands, except per share amounts): Year Ended December 31, 2014 2015 2016 Net income (loss) per share attributable to common stockholders—basic: Numerator: Net income $ 5 $ 15,929 $ 20,482 Less: Income attributable to convertible preferred stock (5 ) (10,958 ) — Add: Preferred stock modification — 3,793 — Less: Premium on repurchase of convertible preferred stock — — (47,209 ) Net income (loss) attributable to common stockholders $ — $ 8,764 $ (26,727 ) Denominator: Weighted-average shares outstanding 10,233 10,290 18,280 Net income (loss) per share attributable to common stockholders—basic $ — $ 0.85 $ (1.46 ) Net income (loss) per share attributable to common stockholders—diluted: Numerator: Net income (loss) attributable to common stockholders—basic $ — $ 8,764 $ (26,727 ) Add: Income attributable to dilutive convertible preferred stock — 1,624 — Less: Preferred stock modification — (3,793 ) — Net income (loss) attributable to common stockholders—diluted $ — $ 6,595 $ (26,727 ) Denominator: Weighted-average shares outstanding 10,233 10,290 18,280 Dilutive convertible preferred stock — 2,790 — Options to purchase common stock 2,901 3,699 — Weighted-average shares outstanding—diluted 13,134 16,779 18,280 Net income (loss) per share attributable to common stockholders—diluted $ — $ 0.39 $ (1.46 ) |
Schedule of anti-dilutive shares excluded from the calculation of diluted earnings (loss) per share | The following table presents the anti-dilutive shares excluded from the calculation of diluted net income (loss) per share attributable to common stockholders (in thousands): Year Ended December 31, 2014 2015 2016 Anti-dilutive equity awards under stock-based award plans 307 248 6,069 Common shares issuable upon conversion of convertible preferred stock 21,761 19,320 — Common shares issuable upon conversion of preferred stock warrants 361 547 — Total shares excluded from net income (loss) per share attributable to common stockholders—diluted 22,429 20,115 6,069 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Schedule of major classes of property and equipment | Major classes of property and equipment were as follows (in thousands): As of December 31, 2015 2016 Computer equipment $ 1,164 $ 2,542 Purchased software 5,306 6,686 Furniture and fixtures 755 2,563 Construction in progress — 2,319 Leasehold improvements 665 4,374 7,890 18,484 Less: Accumulated depreciation (1,265 ) (3,705 ) $ 6,625 $ 14,779 |
Capitalized Software Developm26
Capitalized Software Development Costs (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Capitalized Software Development Costs | Capitalized software development costs, included in other assets, non-current, As of December 31, 2015 2016 Capitalized software development costs, gross $ 2,964 $ 4,280 Less: Accumulated amortization (1,273 ) (1,520 ) Capitalized software development costs, net $ 1,691 $ 2,760 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Summary of financial instruments measured at fair value on a recurring basis | The table below sets forth a summary of financial instruments that are measured at fair value on a recurring basis at December 31, 2015 (in thousands): Fair Value Measurements at Reporting Date Using As of Quoted Prices in Significant Other (Level 2) Significant Other (Level 3) Convertible preferred stock warrant liabilities $ 6,927 $ — $ — $ 6,927 |
Summary of changes in the fair value of preferred stock warrants | The changes in the fair value of preferred stock warrants are summarized below (in thousands): Year Ended December 31, 2014 2015 2016 Beginning balance $ 408 $ 966 $ 6,927 Change in value of preferred stock warrants recorded in other expense, net 558 5,961 9,458 Reclassification to convertible preferred stock upon net exercise of Series Seed warrant in February 2016 — — (3,789 ) Conversion of preferred stock warrants to common stock warrants upon the closing of the Company’s IPO on September 26, 2016 — — (12,596 ) Ending balance $ 966 $ 6,927 $ — |
Schedule of assumptions utilized to determine the fair value of preferred stock warrants | The Company determined the fair value of the preferred stock warrants utilizing the Black-Scholes Series Seed Series A-3 As of Dec 31, As of As of Dec 31, As of 2014 2015 Sept 26, 2016 2014 2015 Sept 26, 2016 Contractual term (years) 6.7 5.7 4.9 8.2 7.2 6.5 Expected volatility 53.9 % 60.3 % 59.1 % 54.1 % 61.3 % 59.1 % Risk-free interest rate 1.97 % 1.84 % 1.12 % 2.07 % 2.09 % 1.34 % Estimated dividend yield — % — % — % — % — % — % |
Accounts Payable (Tables)
Accounts Payable (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable | Accounts payable included the following (in thousands): As of December 31, 2015 2016 Accounts payable–media and data $ 105,085 $ 307,018 Accounts payable–other 3,376 14,145 Total $ 108,461 $ 321,163 |
Capitalization (Tables)
Capitalization (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Schedule of Convertible Preferred Stock | At December 31, 2015, the Company’s outstanding convertible preferred stock consisted of the following (in thousands, except original issue price per share): Shares Shares Original Carrying Liquidation Seed 23,450 22,250 $ 0.100000 $ 2,225 $ 2,225 Series A-1 15,292 15,292 0.126084 1,928 1,928 Series A-2 6,987 6,987 0.146976 1,027 1,027 Series A-3 14,421 13,430 0.183720 2,467 2,467 Series B 8,371 8,371 2.431000 16,557 20,350 Total 68,521 66,330 $ 24,204 $ 27,997 |
Stock-BasedCompensation (Tables
Stock-BasedCompensation (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of stock-based compensation expense by operating expense category | Total stock-based Year Ended December 31, 2014 2015 2016 Platform operations $ 14 $ 71 $ 756 Sales and marketing 50 127 1,707 Technology and development 909 85 1,513 General and administrative 3,572 91 1,080 Total $ 4,545 $ 374 $ 5,056 |
Summary of stock option activity | A summary of stock option activity for the year ended December 31, 2016 is as follows: Shares Weighted- Weighted-Average Life (years) Aggregate Outstanding as of December 31, 2015 5,177 $ 0.74 7.4 Granted 1,110 21.35 Exercised (785 ) 0.63 Cancelled (73 ) 3.21 Outstanding as of December 31, 2016 (1) 5,429 $ 4.94 7.1 $ 124,243 Exercisable as of December 31, 2016 3,148 $ 0.58 5.8 $ 85,266 (1) Includes options to purchase 389 and 5,040 shares of Class A and Class B common stock, respectively. |
Schedule of weighted-average assumptions used to value options granted to employees | The fair value of options on the date of grant is estimated based on the Black-Scholes Year Ended December 31, 2014 2015 2016 Expected term (years) 6.0 6.0 6.0 Expected volatility 62.5 % 64.5 % 58.1 % Risk-free interest rate 2.02 % 1.62 % 1.62 % Estimated dividend yield — % — % — % |
Schedule of weighted-average assumptions used to estimate the fair value of ESPP shares | The fair value of ESPP shares was estimated using the Black-Scholes option pricing model with the following weighted-average assumptions: Expected term (years) 0.8 Expected volatility 48.9 % Risk-free interest rate 0.69 % Estimated dividend yield — % |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Domestic and Foreign Components of Income (Loss) Before Income Taxes | The following are the domestic and foreign components of the Company’s income (loss) before income taxes (in thousands): Year Ended December 31, 2014 2015 2016 Domestic $ (1,226 ) $ 29,224 $ 45,904 International 283 631 (2,070 ) Income (loss) before income taxes $ (943 ) $ 29,855 $ 43,834 |
Components of Provision for (Benefit from) Income Taxes | The following are the components of the provision for (benefit from) income taxes (in thousands): Year Ended December 31, 2014 2015 2016 Current: Federal $ 321 $ 11,123 $ 18,300 State and local 167 2,325 5,595 Foreign 73 140 64 Total current provision 561 13,588 23,959 Deferred: Federal (827 ) 197 (68 ) State and local (682 ) 141 (539 ) Total deferred (benefit) provision (1,509 ) 338 (607 ) Total provision for (benefit from) income taxes $ (948 ) $ 13,926 $ 23,352 |
Reconciliation of Statutory Tax Rate to Effective Tax Rate | A reconciliation of the statutory tax rate to the effective tax rate for the periods presented is as follows: Year Ended December 31, 2014 2015 2016 U.S. federal statutory income tax rate 34.0 % 35.0 % 35.0 % State and local income taxes, net of federal benefit 8.5 5.4 7.5 Foreign income at other than U.S. rates 2.0 (0.3 ) 1.1 Stock-based compensation expense (163.8 ) 0.4 3.8 Meals and entertainment (5.5 ) 0.2 0.3 Change in preferred stock warrant liabilities (20.1 ) 7.0 7.6 Research and development credit 20.6 (1.0 ) (3.1 ) Other permanent items (3.4 ) (0.1 ) 0.4 Change in valuation allowance 228.2 — 0.7 Effective income tax rate 100.5 % 46.6 % 53.3 % |
Tax Effects of Temporary Differences that Give Rise to a Significant Portion of Deferred Tax Assets and Deferred Tax Liabilities | Set forth below are the tax effects of temporary differences that give rise to a significant portion of the deferred tax assets and deferred tax liabilities (in thousands). As of December 31, 2015 2016 Deferred tax assets (liabilities): Reserves and allowances $ 919 $ 1,774 Accrued expenses 2,093 2,651 Net operating losses 55 326 Other 238 1,166 Prepaid expenses (244 ) (484 ) Property and equipment (1,226 ) (2,254 ) Capitalized software development costs (664 ) (1,075 ) Valuation allowance — (326 ) Total deferred tax assets, net $ 1,171 $ 1,778 |
Reconciliation of Beginning and Ending Amounts of Gross Unrecognized Tax Benefits | A reconciliation of the beginning and ending amounts of gross unrecognized tax benefits is as follows (in thousands): Year Ended December 31, 2016 Beginning balance $ — Increases related to current year tax positions 605 Increases related to prior year tax positions 402 Ending balance $ 1,007 |
Segment and Geographic Inform32
Segment and Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Gross Billings, Based on Billing Address of Clients or Client Affiliates | Gross Billings, based on the billing address of the clients or client affiliates, were as follows (in thousands): Year Ended December 31, 2014 2015 2016 US $ 172,877 $ 477,585 $ 868,877 International 28,927 52,390 121,684 Total $ 201,804 $ 529,975 $ 990,561 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of minimum lease commitments under non-cancelable operating leases | The Company’s non-cancelable Year Amount 2017 $ 6,594 2018 8,216 2019 7,647 2020 7,258 2021 5,353 Thereafter 1,703 $ 36,771 |
Schedule of purchase obligations | As of December 31, 2016, the Company’s purchase obligations were as follows (in thousands): Year Amount 2017 $ 2,920 2018 1,217 2019 358 $ 4,495 |
Basis of Presentation and Sum34
Basis of Presentation and Summary of Significant Accounting Policies - Reverse Stock Split (Detail) | Sep. 02, 2016 |
Basis of Presentation and Summary of Significant Accounting Policies | |
Reverse stock split ratio | 0.3333 |
Basis of Presentation and Sum35
Basis of Presentation and Summary of Significant Accounting Policies - Stock-Based Compensation (Detail) | 12 Months Ended |
Dec. 31, 2016 | |
Basis of Presentation and Summary of Significant Accounting Policies | |
Requisite service period | 4 years |
Dividend yield | 0.00% |
Basis of Presentation and Sum36
Basis of Presentation and Summary of Significant Accounting Policies - Income Taxes (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2014USD ($) | |
Basis of Presentation and Summary of Significant Accounting Policies | |
Deferred tax assets, valuation allowance | $ 2.2 |
Basis of Presentation and Sum37
Basis of Presentation and Summary of Significant Accounting Policies - Allowance for Doubtful Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Allowance for doubtful accounts receivable [Rollforward] | |||
Beginning balance | $ 686 | $ 172 | $ 524 |
Add: bad debt expense | 1,890 | 542 | 144 |
Less: write-offs, net of recoveries | (2) | (28) | (496) |
Ending balance | $ 2,574 | $ 686 | $ 172 |
Basis of Presentation and Sum38
Basis of Presentation and Summary of Significant Accounting Policies - Property and Equipment, Net (Detail) | 12 Months Ended | |
Dec. 31, 2016 | ||
Computer Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, useful life | 2 years | |
Purchased Software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, useful life | 5 years | |
Furniture, fixtures and office equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, useful life | 5 years | |
Leasehold Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, useful life | [1] | |
[1] | Leasehold improvements are amortized on a straight-line basis over the term of the lease, or the useful life of the assets, whichever is shorter. |
Basis of Presentation and Sum39
Basis of Presentation and Summary of Significant Accounting Policies - Capitalized Software Development Costs (Detail) | 12 Months Ended |
Dec. 31, 2016 | |
Basis of Presentation and Summary of Significant Accounting Policies | |
Software development cost, amortization period | 2 years |
Basis of Presentation and Sum40
Basis of Presentation and Summary of Significant Accounting Policies - Fair Value of Financial Instruments (Detail) | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Basis of Presentation and Summary of Significant Accounting Policies | |
Impairments of long-lived assets | $ 0 |
Basis of Presentation and Sum41
Basis of Presentation and Summary of Significant Accounting Policies - Concentration of Risk (Detail) - Supplier | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Gross Billings | Customer One | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 15.00% | 13.00% | 11.00% |
Gross Billings | Customer Two | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 12.00% | 12.00% | |
Gross Billings | Customer Three | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 11.00% | ||
Consolidated Accounts Receivable | Customer One | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 27.00% | 18.00% | |
Consolidated Accounts Receivable | Customer Two | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 13.00% | 13.00% | |
Consolidated Accounts Receivable | Customer Three | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 12.00% | 10.00% | |
Trade Accounts Payables | Supplier Concentration Risk | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 10.00% | 11.00% | |
Number of supplier | 1 | 1 |
Basis of Presentation and Sum42
Basis of Presentation and Summary of Significant Accounting Policies - Foreign Currency Transactions and Translation (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Foreign Currency Translation [Line Items] | |||
Foreign currency exchange loss, net | $ (1,151,000) | $ (1,023,000) | $ (306,000) |
Minimum | |||
Foreign Currency Translation [Line Items] | |||
Forward contracts terms | 30 days | ||
Maximum | |||
Foreign Currency Translation [Line Items] | |||
Forward contracts terms | 210 days | ||
Forward Contracts | |||
Foreign Currency Translation [Line Items] | |||
Notional amounts of pen forward contracts | $ 27,100,000 | $ 5,900,000 |
Basis of Presentation and Sum43
Basis of Presentation and Summary of Significant Accounting Policies - Recent Accounting Pronouncements (Detail) - USD ($) | 3 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2015 | |
New Accounting Pronouncement, Early Adoption | ||
Excess tax benefits | $ 0 | |
Accounting Standards Update 2016-09 | New Accounting Pronouncement, Early Adoption, Effect | ||
New Accounting Pronouncement, Early Adoption | ||
Cumulative-effect adjustment recorded in the statement of operations | $ 5,000 |
Net Income (Loss) per Share A44
Net Income (Loss) per Share Attributable to Common Stockholders - Computation of Numerators and Denominators of Basic and Diluted Net Income (Loss) per Share Attributable to Common Stockholders (Detail) $ / shares in Units, shares in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Feb. 29, 2016USD ($) | Dec. 31, 2016USD ($)Class$ / sharesshares | Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2014USD ($)shares | Sep. 30, 2016Class | |
Earnings Per Share | |||||
Number of classes of common stock | Class | 2 | 2 | |||
Numerator: | |||||
Net income | $ 20,482 | $ 15,929 | $ 5 | ||
Less: Income attributable to convertible preferred stock | (10,958) | $ (5) | |||
Add: Preferred stock modification | 3,793 | ||||
Less: Premium on repurchase of convertible preferred stock | $ (47,200) | (47,209) | |||
Net income (loss) attributable to common stockholders | $ (26,727) | $ 8,764 | |||
Denominator: | |||||
Weighted-average shares outstanding | shares | 18,280 | 10,290 | 10,233 | ||
Net income (loss) per share attributable to common stockholders-basic | $ / shares | $ (1.46) | $ 0.85 | |||
Numerator: | |||||
Net income (loss) attributable to common stockholders-basic | $ (26,727) | $ 8,764 | |||
Add: Income attributable to dilutive convertible preferred stock | 1,624 | ||||
Less: Preferred stock modification | (3,793) | ||||
Net income (loss) attributable to common stockholders-diluted | $ (26,727) | $ 6,595 | |||
Denominator: | |||||
Weighted-average shares outstanding | shares | 18,280 | 10,290 | 10,233 | ||
Dilutive convertible preferred stock | shares | 2,790 | ||||
Options to purchase common stock | shares | 3,699 | 2,901 | |||
Weighted-average shares outstanding-diluted | shares | 18,280 | 16,779 | 13,134 | ||
Net income (loss) per share attributable to common stockholders-diluted | $ / shares | $ (1.46) | $ 0.39 |
Net Income (Loss) per Share A45
Net Income (Loss) per Share Attributable to Common Stockholders - Anti-Dilutive Shares (Detail) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Anti-dilutive shares excluded from calculation of diluted earnings (loss) per share: | |||
Total shares excluded from earnings (loss) per share - diluted | 6,069 | 20,115 | 22,429 |
Equity Awards | |||
Anti-dilutive shares excluded from calculation of diluted earnings (loss) per share: | |||
Total shares excluded from earnings (loss) per share - diluted | 6,069 | 248 | 307 |
Convertible Preferred Stock | |||
Anti-dilutive shares excluded from calculation of diluted earnings (loss) per share: | |||
Total shares excluded from earnings (loss) per share - diluted | 19,320 | 21,761 | |
Convertible Preferred Stock Warrants | |||
Anti-dilutive shares excluded from calculation of diluted earnings (loss) per share: | |||
Total shares excluded from earnings (loss) per share - diluted | 547 | 361 |
Property and Equipment, Net - S
Property and Equipment, Net - Schedule of Classes of Property and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | $ 18,484 | $ 7,890 |
Less: Accumulated depreciation | (3,705) | (1,265) |
Property and equipment, Net | 14,779 | 6,625 |
Computer Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | 2,542 | 1,164 |
Purchased Software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | 6,686 | 5,306 |
Furniture and Fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | 2,563 | 755 |
Construction in Progress | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | 2,319 | |
Leasehold Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | $ 4,374 | $ 665 |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | $ 2,400 | $ 1,000 | $ 300 |
Property and equipment | 14,779 | 6,625 | |
Accumulated depreciation | 3,705 | 1,265 | |
Capitalized Software Development | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | $ 400 | 400 | $ 100 |
Installment payment period | 4 years | ||
Property and equipment | $ 1,800 | 1,800 | |
Accumulated depreciation | $ 900 | $ 500 |
Capitalized Software Developm48
Capitalized Software Development Costs (Detail) - Capitalized Software Development - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Capitalized Computer Software Net [Line Items] | ||
Capitalized software development costs, gross | $ 4,280 | $ 2,964 |
Less: Accumulated amortization | (1,520) | (1,273) |
Capitalized software development costs, net | $ 2,760 | $ 1,691 |
Capitalized Software Developm49
Capitalized Software Development Costs - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Capitalized Computer Software Net [Line Items] | |||
Software not yet placed into service, included in other assets, non-current | $ 4,636 | $ 2,633 | |
Capitalized Software Development | |||
Capitalized Computer Software Net [Line Items] | |||
Software development costs | 2,400 | 1,800 | $ 800 |
Amortization expenses | 1,400 | $ 900 | $ 400 |
Estimated amortization in 2017 | 1,200 | ||
Estimated amortization in 2018 | 500 | ||
Software not yet placed into service, included in other assets, non-current | $ 1,100 |
Fair Value Measurements - Recur
Fair Value Measurements - Recurring Basis (Detail) - USD ($) $ in Thousands | Sep. 26, 2016 | Dec. 31, 2015 |
Financial instruments measured at fair value on a recurring basis | ||
Warrant liabilities | $ 6,927 | |
Convertible Preferred Stock Warrants | ||
Financial instruments measured at fair value on a recurring basis | ||
Warrant liabilities | $ 12,600 | |
Recurring | Convertible Preferred Stock Warrants | ||
Financial instruments measured at fair value on a recurring basis | ||
Warrant liabilities | 6,927 | |
Recurring | Level 3 | Convertible Preferred Stock Warrants | ||
Financial instruments measured at fair value on a recurring basis | ||
Warrant liabilities | $ 6,927 |
Fair Value Measurements - Prefe
Fair Value Measurements - Preferred Stock Warrants (Detail) $ / shares in Units, $ in Thousands | Sep. 26, 2016USD ($)$ / sharesshares | Sep. 02, 2016 | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Changes in fair value of preferred stock warrants | |||||
Reverse stock split ratio | 0.3333 | ||||
Aggregate fair value of warrants | $ 6,927 | ||||
IPO | |||||
Changes in fair value of preferred stock warrants | |||||
IPO price (in dollars per share) | $ / shares | $ 18 | ||||
Class B common stock | |||||
Changes in fair value of preferred stock warrants | |||||
Stock issued in net exercise of warrants (in shares) | shares | 448,545 | ||||
Convertible Preferred Stock Warrants | |||||
Changes in fair value of preferred stock warrants | |||||
Beginning balance | $ 6,927 | 966 | $ 408 | ||
Changes in value of preferred stock warrants recorded in other expense, net | 9,458 | 5,961 | 558 | ||
Reclassification to convertible preferred stock upon net exercise of Series Seed warrant in February 2016 | (3,789) | ||||
Conversion of preferred stock warrants to common stock warrants upon the closing of the Company's IPO on September 26, 2016 | $ (12,596) | ||||
Ending balance | $ 6,927 | $ 966 | |||
Outstanding warrants converted during the period (in shares) | shares | 1,382,505 | ||||
Aggregate fair value of warrants | $ 12,600 | ||||
Class B Common Stock Warrants | |||||
Changes in fair value of preferred stock warrants | |||||
Warrants issued in conversion (in shares) | shares | 460,834 | ||||
Stock issued in net exercise of warrants (in shares) | shares | 448,545 |
Fair Value Measurements - Assum
Fair Value Measurements - Assumptions (Detail) | Sep. 26, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Series Seed preferred stock warrants | |||
Fair Value of preferred stock warrants | |||
Expected term (years) | 4 years 10 months 24 days | 5 years 8 months 12 days | 6 years 8 months 12 days |
Expected volatility | 59.10% | 60.30% | 53.90% |
Risk-free interest rate | 1.12% | 1.84% | 1.97% |
Estimated dividend yield | 0.00% | 0.00% | 0.00% |
Series A-3 preferred stock warrants | |||
Fair Value of preferred stock warrants | |||
Expected term (years) | 6 years 6 months | 7 years 2 months 12 days | 8 years 2 months 12 days |
Expected volatility | 59.10% | 61.30% | 54.10% |
Risk-free interest rate | 1.34% | 2.09% | 2.07% |
Estimated dividend yield | 0.00% | 0.00% | 0.00% |
Accounts Payable (Detail)
Accounts Payable (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Accounts Payable | ||
Accounts payable-media and data | $ 307,018 | $ 105,085 |
Accounts payable-other | 14,145 | 3,376 |
Total | $ 321,163 | $ 108,461 |
Debt (Detail)
Debt (Detail) - USD ($) | Mar. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Long-term debt: | ||||
Amount borrowed | $ 75,847,000 | $ 30,000,000 | $ 1,000,000 | |
Outstanding amount | 25,847,000 | $ 44,888,000 | ||
Revolving Credit Agreement | Revolving credit facility | ||||
Long-term debt: | ||||
Borrowing capacity | 125,000,000 | |||
Additional borrowing capacity under certain circumstances | $ 50,000,000 | |||
Minimum consolidated fixed charge coverage ratio | 1.15% | |||
Amount borrowed | $ 50,800,000 | |||
Outstanding amount | $ 25,800,000 | |||
Revolving Credit Agreement | Revolving credit facility | Minimum | ||||
Long-term debt: | ||||
Fee for undrawn amounts (as a percent) | 0.25% | |||
Revolving Credit Agreement | Revolving credit facility | Maximum | ||||
Long-term debt: | ||||
Fee for undrawn amounts (as a percent) | 0.30% | |||
Revolving Credit Agreement | Revolving credit facility | Base Rate | Minimum | ||||
Long-term debt: | ||||
Interest rate, margin added to reference rate (as a percent) | 0.50% | |||
Revolving Credit Agreement | Revolving credit facility | Base Rate | Maximum | ||||
Long-term debt: | ||||
Interest rate, margin added to reference rate (as a percent) | 1.00% | |||
Revolving Credit Agreement | Revolving credit facility | Federal Funds rate | ||||
Long-term debt: | ||||
Interest rate, margin added to reference rate (as a percent) | 0.50% | |||
Revolving Credit Agreement | Revolving credit facility | One month LIBOR rate | ||||
Long-term debt: | ||||
Interest rate, margin added to reference rate (as a percent) | 2.00% | |||
Revolving Credit Agreement | Revolving credit facility | LIBOR | ||||
Long-term debt: | ||||
Weighted average interest rate | 2.19% | |||
Revolving Credit Agreement | Revolving credit facility | LIBOR | Minimum | ||||
Long-term debt: | ||||
Interest rate, margin added to reference rate (as a percent) | 1.50% | |||
Revolving Credit Agreement | Revolving credit facility | LIBOR | Maximum | ||||
Long-term debt: | ||||
Interest rate, margin added to reference rate (as a percent) | 2.00% | |||
Prior Debt Facility | ||||
Long-term debt: | ||||
Liquidation fee upon completion of IPO | $ 800,000 |
Capitalization - Common and Pre
Capitalization - Common and Preferred Stock (Detail) | 1 Months Ended | 4 Months Ended | ||
Sep. 30, 2016VoteClass | Dec. 31, 2016Class$ / sharesshares | Aug. 31, 2016Vote | Dec. 31, 2015$ / sharesshares | |
Class of Stock [Line Items] | ||||
Number of classes of common stock | Class | 2 | 2 | ||
Number of votes per share of common stock | Vote | 1 | |||
Conversion of convertible Class B common stock to Class A common stock | 4,200,000 | |||
Common stock, authorized shares | 1,095,000,000 | |||
Common stock, par value (in dollars per share) | $ / shares | $ 0.000001 | $ 0.000001 | ||
Preferred stock, authorized shares | 100,000,000 | 0 | ||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.000001 | $ 0.000010 | ||
Preferred stock, shares outstanding | 0 | 0 | ||
Class A common stock | ||||
Class of Stock [Line Items] | ||||
Number of votes per share of common stock | Vote | 1 | |||
Common stock, authorized shares | 1,000,000,000 | 0 | ||
Class B common stock | ||||
Class of Stock [Line Items] | ||||
Number of votes per share of common stock | Vote | 10 | |||
Ratio for conversion into Class A common stock | 1 | |||
Threshold percentage of aggregate outstanding common shares to trigger conversion | 10.00% | |||
Threshold percentage vote or written consent of holders to trigger conversion | 66.67% | |||
Common stock, authorized shares | 95,000,000 | 130,000,000 |
Capitalization - Initial Public
Capitalization - Initial Public Offering (Detail) $ / shares in Units, $ in Thousands | Sep. 26, 2016USD ($)$ / sharesshares | Sep. 02, 2016 | Dec. 31, 2016USD ($) |
Class of Stock [Line Items] | |||
Net proceeds from the offering | $ | $ 78,120 | ||
Reverse stock split ratio | 0.3333 | ||
Convertible Preferred Stock Warrants | |||
Class of Stock [Line Items] | |||
Outstanding warrants converted during the period (in shares) | 1,382,505 | ||
Class B Common Stock Warrants | |||
Class of Stock [Line Items] | |||
Warrants issued in conversion (in shares) | 460,834 | ||
Stock issued in net exercise of warrants (in shares) | 448,545 | ||
IPO | |||
Class of Stock [Line Items] | |||
IPO price (in dollars per share) | $ / shares | $ 18 | ||
Net proceeds from the offering | $ | $ 78,100 | ||
Underwriting commissions and discounts | $ | 5,900 | ||
Offering costs reclassified from other assets to additional paid-in capital | $ | $ 4,500 | ||
Class A common stock | IPO | |||
Class of Stock [Line Items] | |||
Number of shares issued and sold by the Company | 4,666,667 | ||
Number of shares sold by selling shareholders | 700,000 | ||
Class B common stock | |||
Class of Stock [Line Items] | |||
Stock issued in net exercise of warrants (in shares) | 448,545 | ||
Number of shares issued for automatic conversion of convertible preferred stock | 22,078,637 | ||
Number of common stock shares issued for each share of convertible preferred stock | 0.3333 |
Capitalization - Convertible Pr
Capitalization - Convertible Preferred Stock Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | Sep. 26, 2016 | Feb. 29, 2016 | Feb. 28, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||
Convertible Preferred Stock | |||||||||
Proceeds from stock issuance used to repurchase other shares | $ 54,000 | $ 54,000 | $ 561 | ||||||
Number of preferred stock shares repurchased | 685,586 | ||||||||
Preferred stock repurchase price per share, as a percentage of the Series C offering price | 80.00% | ||||||||
Repurchase price of convertible preferred stock in excess of carrying value | $ 47,200 | $ 47,209 | |||||||
Common Stock | |||||||||
Convertible Preferred Stock | |||||||||
Issuance of stock (in shares) | [1] | 7,000 | 2,000 | ||||||
Stock issued in net exercise of warrants (in shares) | [1] | 449,000 | |||||||
Share price (in dollars per share) | $ 12.51 | ||||||||
Number of common stock shares repurchased | 188,786 | 189,000 | [1] | 686,000 | [1] | ||||
Additional Paid-In Capital | |||||||||
Convertible Preferred Stock | |||||||||
Repurchase price of convertible preferred stock in excess of carrying value | $ 1,200 | $ 1,168 | |||||||
Retained Earnings (Accumulated Deficit) | |||||||||
Convertible Preferred Stock | |||||||||
Repurchase price of convertible preferred stock in excess of carrying value | $ 46,000 | 46,041 | |||||||
Series Seed preferred stock warrants | |||||||||
Convertible Preferred Stock | |||||||||
Stock issued in net exercise of warrants (in shares) | 788,755 | ||||||||
Repurchase of stock that was issued in net exercise of warrants (in shares) | 614,052 | ||||||||
Warrants net exercised (in shares) | 808,135 | ||||||||
Series C convertible preferred stock | |||||||||
Convertible Preferred Stock | |||||||||
Issuance of stock (in shares) | 11,500,587 | ||||||||
Proceeds from issuance of shares | $ 60,000 | 60,000 | |||||||
Share price (in dollars per share) | $ 5.22 | ||||||||
Series Seed convertible preferred stock | |||||||||
Convertible Preferred Stock | |||||||||
Number of preferred stock shares repurchased | 3,897,928 | ||||||||
Stock issued in net exercise of warrants (in shares) | 788,755 | ||||||||
Repurchase of stock that was issued in net exercise of warrants (in shares) | 614,052 | ||||||||
Series A convertible preferred stock | |||||||||
Convertible Preferred Stock | |||||||||
Number of preferred stock shares repurchased | 8,485,350 | ||||||||
Convertible Preferred Stock | |||||||||
Convertible Preferred Stock | |||||||||
Issuance of stock (in shares) | 8,371,000 | ||||||||
Repurchase price including legal costs | $ 51,800 | ||||||||
Carrying value of stock at the date of repurchase | $ 4,600 | $ 4,623 | |||||||
Class B common stock | |||||||||
Convertible Preferred Stock | |||||||||
Stock issued in net exercise of warrants (in shares) | 448,545 | ||||||||
Number of shares issued for automatic conversion of convertible preferred stock | 22,078,637 | ||||||||
Number of common stock shares issued for each share of convertible preferred stock | 0.3333 | ||||||||
[1] | See Note 9-Capitalization for discussion of the establishment of the Company's two classes of common stock and the reclassification of its common stock into Class B common stock prior to the Company's IPO in September 2016. |
Capitalization - Company's Outs
Capitalization - Company's Outstanding Convertible Preferred Stock (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Convertible preferred stock, authorized shares | 0 | 68,521 |
Shares Outstanding | 0 | 66,330 |
Carrying Values | $ 24,204 | |
Liquidation Preference | $ 27,997 | |
Series Seed convertible preferred stock | ||
Convertible preferred stock, authorized shares | 23,450 | |
Shares Outstanding | 22,250 | |
Original issue price (in dollars per share) | $ 0.10 | $ 0.100000 |
Carrying Values | $ 2,225 | |
Liquidation Preference | $ 2,225 | |
Series A-1 convertible preferred stock | ||
Convertible preferred stock, authorized shares | 15,292 | |
Shares Outstanding | 15,292 | |
Original issue price (in dollars per share) | 0.126084 | $ 0.126084 |
Carrying Values | $ 1,928 | |
Liquidation Preference | $ 1,928 | |
Series A-2 convertible preferred stock | ||
Convertible preferred stock, authorized shares | 6,987 | |
Shares Outstanding | 6,987 | |
Original issue price (in dollars per share) | 0.146976 | $ 0.146976 |
Carrying Values | $ 1,027 | |
Liquidation Preference | $ 1,027 | |
Series A-3 convertible preferred stock | ||
Convertible preferred stock, authorized shares | 14,421 | |
Shares Outstanding | 13,430 | |
Original issue price (in dollars per share) | 0.183720 | $ 0.183720 |
Carrying Values | $ 2,467 | |
Liquidation Preference | $ 2,467 | |
Series B convertible preferred stock | ||
Convertible preferred stock, authorized shares | 8,371 | |
Shares Outstanding | 8,371 | |
Original issue price (in dollars per share) | $ 2.431 | $ 2.431000 |
Carrying Values | $ 16,557 | |
Liquidation Preference | $ 20,350 |
Capitalization - Modification o
Capitalization - Modification of Series B Preferred Stock (Detail) - Series B convertible preferred stock $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Convertible Preferred Stock | |
Adjustment to net income attributable to common stockholders due to modification | $ 3.8 |
Fair value adjustment | $ 3.8 |
Capitalization - Convertible 60
Capitalization - Convertible Preferred Stock Terms and Warrants (Detail) - $ / shares | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Series Seed convertible preferred stock | ||
Convertible Preferred Stock | ||
Dividend rate (in dollars per share) | $ 0.008 | |
Original issue price (in dollars per share) | 0.10 | $ 0.100000 |
Conversion price (in dollars per share) | 0.30 | |
Series A-1 convertible preferred stock | ||
Convertible Preferred Stock | ||
Dividend rate (in dollars per share) | 0.010087 | |
Original issue price (in dollars per share) | 0.126084 | 0.126084 |
Conversion price (in dollars per share) | 0.378252 | |
Series A-2 convertible preferred stock | ||
Convertible Preferred Stock | ||
Dividend rate (in dollars per share) | 0.011758 | |
Original issue price (in dollars per share) | 0.146976 | 0.146976 |
Conversion price (in dollars per share) | 0.440928 | |
Series A-3 convertible preferred stock | ||
Convertible Preferred Stock | ||
Dividend rate (in dollars per share) | 0.014698 | |
Original issue price (in dollars per share) | 0.183720 | 0.183720 |
Conversion price (in dollars per share) | 0.55116 | |
Series B convertible preferred stock | ||
Convertible Preferred Stock | ||
Dividend rate (in dollars per share) | 0.194 | |
Original issue price (in dollars per share) | 2.431 | $ 2.431000 |
Conversion price (in dollars per share) | 7.293 | |
Series C convertible preferred stock | ||
Convertible Preferred Stock | ||
Dividend rate (in dollars per share) | 0.417 | |
Original issue price (in dollars per share) | 5.217125 | |
Conversion price (in dollars per share) | $ 15.651375 |
Stock-Based Compensation - Expe
Stock-Based Compensation - Expense (Detail) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Feb. 28, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Stock-based compensation expense, by operating expense category | ||||
Stock-based compensation expense | $ 4,400 | $ 5,056 | $ 374 | $ 4,545 |
Platform operations | ||||
Stock-based compensation expense, by operating expense category | ||||
Stock-based compensation expense | 756 | 71 | 14 | |
Sales and marketing | ||||
Stock-based compensation expense, by operating expense category | ||||
Stock-based compensation expense | 1,707 | 127 | 50 | |
Technology and development | ||||
Stock-based compensation expense, by operating expense category | ||||
Stock-based compensation expense | 1,513 | 85 | 909 | |
General and administrative | ||||
Stock-based compensation expense, by operating expense category | ||||
Stock-based compensation expense | $ 3,500 | $ 1,080 | $ 91 | $ 3,572 |
Stock-Based Compensation - Ex62
Stock-Based Compensation - Expense - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Feb. 28, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Stock-Based Compensation | ||||
Common stock repurchased, shares | 685,586 | |||
Common stock repurchased, value | $ 5,000 | |||
Stock-based compensation expense | 4,400 | $ 5,056 | $ 374 | $ 4,545 |
Technology And Development | ||||
Stock-Based Compensation | ||||
Stock-based compensation expense | 900 | |||
General and administrative | ||||
Stock-Based Compensation | ||||
Stock-based compensation expense | 3,500 | $ 1,080 | $ 91 | $ 3,572 |
Additional Paid In Capital And Retained Earnings | ||||
Stock-Based Compensation | ||||
Common stock repurchased, value | $ 600 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock-Based Award Plans - Additional Information (Detail) - 2016 Incentive Award Plan shares in Millions | 12 Months Ended |
Dec. 31, 2016shares | |
Stock-Based Compensation | |
Shares remained available for grant | 3.4 |
Maximum annual increase in shares available for issuance, percentage of outstanding shares | 4.00% |
Stock incentive plans, vesting period | 4 years |
Stock incentive plans, expiration period | 10 years |
Restricted Stock Units (RSUs) | |
Stock-Based Compensation | |
Stock incentive plans, vesting period | 1 year |
Restricted Stock | |
Stock-Based Compensation | |
Stock incentive plans, vesting period | 4 years |
Stock-Based Compensation - St64
Stock-Based Compensation - Stock Options (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Feb. 28, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Stock Options, additional disclosures | |||||
Stock-based compensation expense | $ 4,400 | $ 5,056 | $ 374 | $ 4,545 | |
Weighted average assumptions used to value options granted to employees | |||||
Estimated dividend yield | 0.00% | ||||
Stock Options | |||||
Shares Under Option | |||||
Outstanding at the beginning of the period (in shares) | 5,177 | ||||
Granted (in shares) | 1,110 | ||||
Exercised (in shares) | (785) | ||||
Cancelled (in shares) | (73) | ||||
Outstanding at the end of the period (in shares) | 5,429 | [1] | 5,177 | ||
Exercisable as of December 31, 2016 | 3,148 | ||||
Weighted-Average Exercise Price | |||||
Outstanding at the beginning of the period (in dollars per share) | $ 0.74 | ||||
Granted (in dollars per share) | 21.35 | ||||
Exercised (in dollars per share) | 0.63 | ||||
Cancelled (in dollars per share) | 3.21 | ||||
Outstanding at the end of the period (in dollars per share) | 4.94 | $ 0.74 | |||
Exercisable as of December 31, 2016 | $ 0.58 | ||||
Stock Options, additional disclosures | |||||
Weighted-Average Contractual Life, outstanding | 7 years 1 month 6 days | 7 years 4 months 24 days | |||
Weighted-Average Contractual Life, exercisable | 5 years 9 months 18 days | ||||
Aggregate Intrinsic Value, Outstanding | $ 124,243 | ||||
Aggregate Intrinsic Value, Exercisable | 85,266 | ||||
Stock-based compensation expense | 1,700 | $ 400 | $ 100 | ||
Unrecognized employee stock-based compensation | $ 13,000 | ||||
Unrecognized employee stock-based compensation, recognition period | 3 years 7 months 6 days | ||||
Weighted average assumptions used to value options granted to employees | |||||
Expected term (years) | 6 years | 6 years | 6 years | ||
Volatility (as a percent) | 58.10% | 64.50% | 62.50% | ||
Risk-free interest rate (as a percent) | 1.62% | 1.62% | 2.02% | ||
Estimated dividend yield | 0.00% | 0.00% | 0.00% | ||
Weighted average grant date fair value per share | $ 11.61 | $ 1.12 | $ 0.48 | ||
[1] | Includes options to purchase 389 and 5,040 shares of Class A and Class B common stock, respectively. |
Stock-Based Compensation - St65
Stock-Based Compensation - Stock Options (Parenthetical) (Detail) shares in Thousands | Dec. 31, 2016shares |
Class A common stock | |
Stock-Based Compensation | |
Options to purchase stock | 389 |
Class B common stock | |
Stock-Based Compensation | |
Options to purchase stock | 5,040 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock and Restricted Stock Units - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Feb. 28, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Stock-Based Compensation | ||||
Stock compensation expense | $ 4,400 | $ 5,056 | $ 374 | $ 4,545 |
Restricted Stock and Restricted Stock Units | ||||
Stock-Based Compensation | ||||
Restricted stock awards granted, shares | 193,000 | |||
Weighted average grant date fair value per share | $ 29.65 | |||
Number of restricted stock awards and units vested | 0 | |||
Number of restricted stock awards and units forefeited | 0 | |||
Stock compensation expense | $ 100 | |||
Unrecognized employee stock-based compensation | $ 5,600 | |||
Weighted-average recognition period employee stock based compensation | 3 years 9 months 18 days |
Stock-Based Compensation - ESPP
Stock-Based Compensation - ESPP (Detail) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Feb. 28, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2016 | |
Stock-Based Compensation | |||||
Stock-based compensation expense | $ 4,400 | $ 5,056 | $ 374 | $ 4,545 | |
Weighted-average assumptions used to estimate the fair value of ESPP shares | |||||
Estimated dividend yield | 0.00% | ||||
ESPP | |||||
Stock-Based Compensation | |||||
Maximum annual increase in shares available for issuance (in shares) | 800,000 | ||||
Maximum annual increase in shares available for issuance, percentage of outstanding shares | 1.00% | ||||
Maximum employee payroll deduction (as a percent) | 100.00% | ||||
Maximum offering period | 2 years | ||||
Period between purchases | 6 months | ||||
Price of ESPP shares as percentage of market price | 85.00% | ||||
Holding period for purchases after the first offering period | 6 months | ||||
Holding period for purchases during the first offering period | 12 months | ||||
Stock-based compensation expense | $ 3,300 | ||||
Unrecognized employee stock-based compensation | $ 3,500 | ||||
Unrecognized employee stock-based compensation, recognition period | 1 year 3 months 18 days | ||||
Weighted-average assumptions used to estimate the fair value of ESPP shares | |||||
Expected term (years) | 9 months 18 days | ||||
Volatility (as a percent) | 48.90% | ||||
Risk-free interest rate (as a percent) | 0.69% | ||||
Estimated dividend yield | 0.00% | ||||
ESPP | Class A common stock | |||||
Stock-Based Compensation | |||||
Stock available for issuance (in shares) | 800,000 |
Income Taxes - Domestic and For
Income Taxes - Domestic and Foreign Components of Income (Loss) before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income (loss) before income taxes | $ 43,834 | $ 29,855 | $ (943) |
UNITED STATES | |||
Income (loss) before income taxes | 45,904 | 29,224 | (1,226) |
International | |||
Income (loss) before income taxes | $ (2,070) | $ 631 | $ 283 |
Income Taxes - Components of Pr
Income Taxes - Components of Provision for (Benefit from) Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Current: | |||
Federal | $ 18,300 | $ 11,123 | $ 321 |
State and local | 5,595 | 2,325 | 167 |
Foreign | 64 | 140 | 73 |
Total current provision | 23,959 | 13,588 | 561 |
Deferred: | |||
Federal | (68) | 197 | (827) |
State and local | (539) | 141 | (682) |
Total deferred (benefit) provision | (607) | 338 | (1,509) |
Total provision for (benefit from) income taxes | $ 23,352 | $ 13,926 | $ (948) |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Statutory Tax Rate to Effective Tax Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal statutory income tax rate | 35.00% | 35.00% | 34.00% |
State and local income taxes, net of federal benefit | 7.50% | 5.40% | 8.50% |
Foreign income at other than U.S. rates | 1.10% | (0.30%) | 2.00% |
Stock-based compensation expense | 3.80% | 0.40% | (163.80%) |
Meals and entertainment | 0.30% | 0.20% | (5.50%) |
Change in preferred stock warrant liabilities | 7.60% | 7.00% | (20.10%) |
Research and development credit | (3.10%) | (1.00%) | 20.60% |
Other permanent items | 0.40% | (0.10%) | (3.40%) |
Change in valuation allowance | 0.70% | 228.20% | |
Effective income tax rate | 53.30% | 46.60% | 100.50% |
Income Taxes - Tax Effects of T
Income Taxes - Tax Effects of Temporary Differences that Give Rise to Significant Portion of Deferred Tax Assets and Deferred Tax Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred tax assets (liabilities): | ||
Reserves and allowances | $ 1,774 | $ 919 |
Accrued expenses | 2,651 | 2,093 |
Net operating losses | 326 | 55 |
Other | 1,166 | 238 |
Prepaid expenses | (484) | (244) |
Property and equipment | (2,254) | (1,226) |
Capitalized software development costs | (1,075) | (664) |
Valuation allowance | (326) | |
Total deferred tax assets, net | $ 1,778 | $ 1,171 |
Income Tax - Additional Informa
Income Tax - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Valuation allowance | $ 326 | ||
Cash paid for income taxes | 16,740 | $ 12,931 | $ 150 |
Gross unrecognized tax benefits | 1,007 | 0 | |
UNITED KINGDOM | |||
Valuation allowance | 326 | ||
Net operating loss carryforwards | 300 | ||
Research and development tax credits | 500 | ||
International | |||
Unremitted earnings of subsidiaries, foreign | 800 | ||
Cash paid for income taxes | 0 | ||
Other Liabilities, Non current | |||
Gross unrecognized tax benefits | $ 1,007 | $ 0 |
Income Taxes - Reconciliation73
Income Taxes - Reconciliation of Beginning and Ending Amounts of Unrecognized Tax Benefits (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Income Tax Disclosure [Abstract] | |
Beginning balance | $ 0 |
Increases related to current year tax positions | 605 |
Increases related to prior year tax positions | 402 |
Ending balance | $ 1,007 |
Segment and Geographical Inform
Segment and Geographical Information - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2016Segment | |
Segment Reporting [Abstract] | |
Operating segment | 1 |
Gross Billings, Based on Billin
Gross Billings, Based on Billing Address of Clients or Client Affiliates (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||
Gross Billings | $ 990,561 | $ 529,975 | $ 201,804 |
UNITED STATES | |||
Segment Reporting Information [Line Items] | |||
Gross Billings | 868,877 | 477,585 | 172,877 |
International | |||
Segment Reporting Information [Line Items] | |||
Gross Billings | $ 121,684 | $ 52,390 | $ 28,927 |
Segment Reporting and Geographi
Segment Reporting and Geographic Information (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016USD ($)Country | Dec. 31, 2015USD ($)Country | Dec. 31, 2014Country | |
Segment Reporting Information [Line Items] | |||
Property and equipment, net | $ 14,779 | $ 6,625 | |
International | |||
Segment Reporting Information [Line Items] | |||
Number of country accounted for more than 10% of gross billings | Country | 0 | 0 | 0 |
Property and equipment, net | $ 2,500 | $ 100 |
Commitments and Contingencies -
Commitments and Contingencies - Commitments (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Commitments and Contingencies | |||
Rent expense | $ 4,800 | $ 2,200 | $ 1,200 |
Non-cancelable minimum lease commitments | |||
2,017 | 6,594 | ||
2,018 | 8,216 | ||
2,019 | 7,647 | ||
2,020 | 7,258 | ||
2,021 | 5,353 | ||
Thereafter | 1,703 | ||
Total | 36,771 | ||
Purchase obligations | |||
2,017 | 2,920 | ||
2,018 | 1,217 | ||
2,019 | 358 | ||
Total | 4,495 | ||
Future principal payments for financing obligation related to purchase of software | $ 1,000 |
Commitments and Contingencies78
Commitments and Contingencies - Guarantees and Indemnifications (Detail) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Indemnifications | ||
Guarantees and Indemnifications | ||
Recorded obligation | $ 0 | $ 0 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) $ in Millions | 5 Months Ended |
May 31, 2015USD ($) | |
Falk Technolgies GmbH [Member] | |
Schedule of Other Related Party Transactions [Line Items] | |
Related party transaction, amounts processed as spend through platform with Falk Technologies GmbH | $ 0.2 |