Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2014 | Apr. 30, 2014 | |
Document Document And Entity Information [Line Items] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 31-Mar-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Entity Registrant Name | 'SCIQUEST INC | ' |
Entity Central Index Key | '0001082526 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 27,433,246 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $16,067 | $19,117 |
Short-term investments | 15,105 | 15,105 |
Accounts receivable, net | 9,918 | 12,987 |
Prepaid expenses and other current assets | 2,450 | 3,268 |
Deferred tax asset | 306 | 290 |
Total current assets | 43,846 | 50,767 |
Property and equipment, net | 10,292 | 10,028 |
Goodwill | 64,732 | 65,280 |
Intangible assets, net | 27,962 | 29,490 |
Deferred commissions | 6,245 | 6,701 |
Deferred tax asset, less current portion | 10,955 | 10,885 |
Other | 334 | 294 |
Total assets | 164,366 | 173,445 |
Current liabilities: | ' | ' |
Accounts payable | 348 | 741 |
Accrued liabilities | 7,220 | 13,765 |
Deferred revenues | 55,023 | 57,417 |
Total current liabilities | 62,591 | 71,923 |
Deferred revenues, less current portion | 12,532 | 13,343 |
Commitments and contingencies | ' | ' |
Stockholders’ equity: | ' | ' |
Common stock, $0.001 par value; 50,000 shares authorized; 23,983 and 23,811 shares issued and outstanding as of March 31, 2014 and December 31, 2013, respectively | 24 | 24 |
Additional paid-in capital | 110,619 | 108,864 |
Accumulated other comprehensive loss | -2,158 | -1,401 |
Accumulated deficit | -19,242 | -19,308 |
Total stockholders’ equity | 89,243 | 88,179 |
Total liabilities and stockholders’ equity | $164,366 | $173,445 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Per Share data, unless otherwise specified | ||
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 50,000 | 50,000 |
Common stock, shares issued | 23,983 | 23,811 |
Common stock, shares outstanding | 23,983 | 23,811 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations and Comprehensive Loss (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Revenues | $25,407 | $20,665 |
Cost of revenues | 7,670 | 6,614 |
Gross profit | 17,737 | 14,051 |
Operating expenses: | ' | ' |
Research and development | 6,927 | 6,542 |
Sales and marketing | 6,960 | 5,471 |
General and administrative | 3,110 | 2,895 |
Amortization of intangible assets | 797 | 454 |
Total operating expenses | 17,794 | 15,362 |
Loss from operations | -57 | -1,311 |
Other (expense) income: | ' | ' |
Interest income | 6 | 20 |
Other (expense) income, net | -9 | -26 |
Total other (expense) income, net | -3 | -6 |
Loss before income taxes | -60 | -1,317 |
Income tax benefit | 126 | 705 |
Net income (loss) | 66 | -612 |
Other comprehensive loss: | ' | ' |
Foreign currency translation adjustments | -757 | -324 |
Comprehensive loss | ($691) | ($936) |
Net income (loss) per share: | ' | ' |
Basic | $0 | ($0.03) |
Diluted | $0 | ($0.03) |
Weighted average shares outstanding used in computing per share amounts: | ' | ' |
Basic | 23,908 | 22,564 |
Diluted | 24,499 | 22,564 |
Consolidated_Statement_of_Stoc
Consolidated Statement of Stockholders' Equity (USD $) | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit |
In Thousands | |||||
Balance at Dec. 31, 2013 | $88,179 | $24 | $108,864 | ($1,401) | ($19,308) |
Balance, shares at Dec. 31, 2013 | ' | 23,811 | ' | ' | ' |
Issuance of stock in connection with stock option exercises | 292 | ' | 292 | ' | ' |
Issuance of stock in connection with stock option exercises, shares | 40 | 40 | ' | ' | ' |
Issuance of stock in connection with business acquisition | ' | ' | ' | ' | ' |
Issuance of stock in connection with business acquisitions, shares | ' | 132 | ' | ' | ' |
Stock-based compensation | 1,463 | ' | 1,463 | ' | ' |
Foreign currency translation adjustments | -757 | ' | ' | -757 | ' |
Net income | 66 | ' | ' | ' | 66 |
Balance at Mar. 31, 2014 | $89,243 | $24 | $110,619 | ($2,158) | ($19,242) |
Balance, shares at Mar. 31, 2014 | ' | 23,983 | ' | ' | ' |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Cash flows from operating activities | ' | ' |
Net income (loss) | $66 | ($612) |
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities: | ' | ' |
Depreciation and amortization | 2,485 | 1,620 |
Stock-based compensation expense | 1,463 | 1,562 |
Deferred taxes | -86 | -636 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | 3,017 | 4,334 |
Prepaid expenses and other current assets | 805 | -665 |
Deferred commissions and other assets | 418 | 211 |
Accounts payable | -392 | -719 |
Accrued liabilities | -6,521 | -844 |
Deferred revenues | -3,101 | -1,835 |
Net cash (used in) provided by operating activities | -1,846 | 2,416 |
Cash flows from investing activities | ' | ' |
Addition of capitalized software development costs | -1,308 | -1,079 |
Purchase of property and equipment | -174 | -887 |
Purchase of available-for-sale short-term investments | ' | -12,425 |
Maturities of available-for-sale short-term investments | ' | 6,560 |
Net cash used in investing activities | -1,482 | -7,831 |
Cash flows from financing activities | ' | ' |
Proceeds from exercise of common stock options | 292 | 340 |
Net cash provided by financing activities | 292 | 340 |
Effect of exchange rate changes on cash and cash equivalents | -14 | -10 |
Net decrease in cash and cash equivalents | -3,050 | -5,085 |
Cash and cash equivalents at beginning of period | 19,117 | 15,606 |
Cash and cash equivalents at end of period | $16,067 | $10,521 |
Description_of_Business
Description of Business | 3 Months Ended |
Mar. 31, 2014 | |
Description of Business | ' |
1. Description of Business | |
SciQuest, Inc. (the Company) provides leading cloud-based business automation solutions for spend management. The Company’s solutions include procurement solutions that automate the source-to-settle process, spend analysis solutions that cleanse and classify spend data to drive and measure cost savings, supplier management solutions that facilitate our customers’ interactions with their suppliers, contract lifecycle management solutions that automate the complete contract lifecycle from contract creation through maintenance and accounts payable solutions that automate the invoice processing and vendor payment processes. The Company’s solutions are designed to meet customer needs to reduce costs, simplify and improve visibility into key business processes, further strategic initiatives, enhance control over spending decisions and improve compliance and risk management. By simplifying and streamlining cumbersome, and often manual, processes and creating a comprehensive view of spending and compliance across the organization, organizations can identify and capitalize on opportunities to reduce costs by gaining control over suppliers, contracts, purchases and payments. The Company is headquartered in Cary, North Carolina. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Summary of Significant Accounting Policies | ' | |||||||
2. Summary of Significant Accounting Policies | ||||||||
Basis of Presentation | ||||||||
The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by accounting principles generally accepted in the United States for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2014 are not necessarily indicative of the results to be expected for the fiscal year or any future period. The balance sheet at December 31, 2013 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by GAAP for complete financial statements. For further information, refer to the financial statements and footnotes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, 2013, which was filed with the Securities and Exchange Commission on February 21, 2014. | ||||||||
Principles of Consolidation | ||||||||
The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. | ||||||||
Use of Estimates | ||||||||
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates. | ||||||||
Revenue Recognition | ||||||||
The Company primarily derives its revenues from subscription fees and related services, permitting customers to access and utilize the Company’s cloud-based business automation solutions for spend management. Customers may also purchase a perpetual license for certain software products. Revenue is recognized when there is persuasive evidence of an arrangement, the service has been provided or delivered to the customer, the collection of the fee is probable and the amount of the fee to be paid by the customer is fixed or determinable. The Company’s arrangements do not contain general rights of return. | ||||||||
Because customers do not have the right to take possession of the Software-as-a-Service (“SaaS”) based software, these arrangements are considered service contracts and are not within the scope of Industry Topic 985, Software. The Company’s contractual agreements generally contain multiple service elements and deliverables, for which we follow the guidance provided in Accounting Standards Codification (“ASC”) 605-25, Revenue Recognition for Multiple-Element Arrangements. These elements include access to the hosted software, implementation or data classification services and, on a limited basis, perpetual licenses for certain software products and related maintenance and support. The Company evaluates each element in a multiple-element arrangement to determine whether it represents a separate unit of accounting. An element constitutes a separate unit of accounting when the delivered item has standalone value and delivery of the undelivered element is probable and within the Company’s control. | ||||||||
For arrangements in which elements do have stand-alone value, the Company allocates revenue to each element in the arrangement based on a selling price hierarchy. The selling price for a deliverable is based on vendor-specific objective evidence of selling price (“VSOE”), if available, third-party evidence of selling price (“TPE”), if VSOE is not available, or estimated selling price (“ESP”) if neither VSOE nor TPE is available. Because the Company has neither VSOE nor TPE for its deliverables, the allocation of revenue is based on ESP. | ||||||||
The Company’s process for determining ESP for its deliverables considers multiple factors that may vary depending upon the facts and circumstances related to each deliverable. Key factors considered in developing ESP related to deliverables include established pricing and approval policies, type and size of customer, number of products purchased, and historical transactions. The Company regularly reviews ESP and maintains internal controls over the establishment and updates of these estimates. | ||||||||
The Company evaluates its SaaS subscription agreements and considers whether the associated services have standalone value to its customers. For arrangements when implementation services do not have standalone value to the customer, licenses and related implementation services are considered a single unit of accounting. Accordingly, the consideration allocated to licenses and services is recognized ratably over the term of the subscription agreement, beginning with the later of the start date specified in the subscription agreement, or the date access to the software is provided to the customer, provided all other revenue recognition criteria have been met. Fees for professional services that are contingent upon future performance are recognized ratably over the remaining subscription term once the performance milestones have been met. Alternatively, when services have standalone value to the customer, licenses and related services are considered separate units of accounting. For separate units of accounting, services are recognized as the services are performed and delivered to the customer and licenses are recognized over the term of the subscription arrangement, beginning with the later of the start date specified in the subscription agreement, or the date access to the software is provided to the customer, provided all other revenue recognition criteria have been met. | ||||||||
Revenue from sales of certain of the Company’s perpetual software products and related implementation services and maintenance is recognized as a single unit of accounting since VSOE of fair value does not exist for the contractual elements. Accordingly, revenue for all elements in these arrangements is recognized over the contractual maintenance term, which is typically one year. | ||||||||
The Company recognizes revenue from any professional services that are sold separately as the services are performed. | ||||||||
Deferred revenue primarily consists of billings or payments received in advance of revenue recognition from the Company’s software and services described above. For multi-year subscription agreements, the Company generally invoices its customers in annual installments. Accordingly, the deferred revenue balance does not represent the total contract value of these multi-year subscription agreements. The Company’s services, such as implementation, are generally sold in conjunction with subscription agreements. These services are recognized ratably over the remaining term of the subscription agreement once any contingent performance milestones have been satisfied. The portion of deferred revenue that the Company anticipates will be recognized after the succeeding 12-month period is recorded as non-current deferred revenue and the remaining portion is recorded as current deferred revenue. | ||||||||
Cost of Revenues | ||||||||
Cost of revenues primarily consists of costs related to hosting the Company’s subscription software services, compensation and related expenses for implementation services, supplier enablement services, customer support staff and client partners, amortization of capitalized software development costs and allocated fixed asset depreciation and facilities costs. Cost of revenues is expensed as incurred. | ||||||||
Deferred Commissions | ||||||||
The Company capitalizes sales commission costs that are directly related to the execution of its subscription agreements. The commissions are deferred and amortized over the contractual term of the related non-cancelable subscription agreement. The Company believes this is the appropriate method of accounting, as the commission costs are so closely related to the revenues from the subscription agreements that they should be recorded as an asset and charged to expense over the same period that the subscription revenues are recognized. Amortization of deferred commissions is included in sales and marketing expense in the accompanying consolidated statements of operations and comprehensive (loss) income. The deferred commissions are reflected in the accompanying consolidated balance sheets. | ||||||||
Cash and Cash Equivalents | ||||||||
The Company considers all highly liquid debt investments with an original maturity of three months or less at the date of purchase to be cash equivalents. The Company maintains cash balances at financial institutions that may at times exceed federally insured limits. The Company maintains this cash at reputable financial institutions and, as a result, believes credit risk related to its cash is minimal. | ||||||||
Short-Term Investments | ||||||||
Management determines the appropriate classification of investments at the time of purchase and evaluates such determination as of each balance sheet date. The Company’s investments were classified as available-for-sale securities and are stated at fair value at March 31, 2014 and December 31, 2013. Realized gains and losses are included in other (expense) income based on the specific identification method. There were no realized gains or losses for the three months ended March 31, 2014 or 2013. Net unrealized gains and losses on available-for-sale securities are reported as a component of other comprehensive (loss) income, net of tax. As of March 31, 2014 and December 31, 2013, there were no unrealized gains or losses on available-for-sale securities. The Company regularly monitors and evaluates the fair value of its investments to identify other-than-temporary declines in value. Management believes no such declines in value existed at March 31, 2014 or December 31, 2013. | ||||||||
Accounts Receivable | ||||||||
The Company assesses the need for an allowance for doubtful accounts based on estimates of probable credit losses. This assessment is based on several factors including aging of customer accounts, known customer specific risks, historical experience and existing economic conditions. The Company generally does not require collateral for receivable balances. Accounts would be charged against the allowance after all means of collection were exhausted and recovery was considered remote. Based on management’s analysis of its outstanding accounts receivable, the Company recorded an allowance of $421 and $556 at March 31, 2014 and December 31, 2013, respectively. | ||||||||
Property and Equipment | ||||||||
Property and equipment are recorded at cost and depreciated using the straight-line method over their estimated useful lives, which are usually seven years for furniture and three to five years for computer software and equipment. Leasehold improvements are amortized over the shorter of the estimated useful lives of the assets or the remainder of the lease term. Costs for repairs and maintenance are expensed as incurred. Upon retirement or sale, the cost of the disposed assets and the related accumulated depreciation are removed from the accounts, and any resulting gain or loss is credited or charged to operations. | ||||||||
Software Development Costs | ||||||||
The Company incurs certain costs associated with the development of its cloud-based solution, which are accounted for as internal-use software. Certain qualifying costs incurred during the application development phase are capitalized and amortized to expense over the estimated useful life of the related applications, which is generally three years. | ||||||||
Although the Company’s development efforts are primarily focused on its hosted, cloud-based solution, the Company also incurs costs in connection with the development of certain of its software products licensed to customers on a perpetual basis, which are accounted for as costs of software to be sold, leased or otherwise marketed. Under this guidance, capitalization of software development costs begins upon the establishment of technological feasibility (based on a working model approach), subject to net realizable value considerations. To date, the dates between achieving technological feasibility and the general availability of such software have substantially coincided; therefore, software development costs for these products that would qualify for capitalization have been immaterial. Accordingly, the Company has not capitalized any software development costs related to these software products and has charged all such costs to research and development expense. | ||||||||
Goodwill | ||||||||
Goodwill represents the excess of the cost of an acquired entity over the net fair value of the identifiable assets acquired and liabilities assumed. Goodwill is not amortized, but rather is assessed for impairment at least annually. Additionally, the Company would also review the carrying value of goodwill whenever events or changes in circumstances indicated that its carrying amount may not be recoverable. The Company has concluded that it has one reporting unit for purposes of its annual goodwill impairment testing. To assess goodwill impairment, the first step is to identify if a potential impairment exists by comparing the fair value of a reporting unit with its carrying amount, including goodwill. If the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is not considered to have a potential impairment and the second step of the impairment test is not necessary. The results of our most recent annual assessment did not indicate any impairment of goodwill, and as such the second step of the impairment test was not required. Additionally, we do not believe there have been any triggering events that would result in potential impairment of goodwill as of March 31, 2014. | ||||||||
Stock-Based Compensation | ||||||||
Stock-based payments to employees, including grants of employee stock options, are recognized in the consolidated statement of operations and comprehensive (loss) income based on their fair values. Stock-based compensation costs are measured at the grant date based on the fair value of the award and are recognized as expense on a straight-line basis over the requisite service period, which is the vesting period. | ||||||||
Stock-based compensation costs are based on the fair value of the underlying option calculated using the Black-Scholes option-pricing model on the date of grant for stock options. Determining the appropriate fair value model and related assumptions requires judgment, including estimating stock price volatility, forfeiture rates and expected term. The Company uses the historical volatility of its stock price to calculate the expected volatility. Prior to the second half of 2013, the expected volatility rates were estimated based on the actual volatility of comparable public companies over the expected term. The expected term for the three months ended March 31, 2014 and 2013, represents the average time that options that vest are expected to be outstanding based on the mid-point between the vesting date and the end of the contractual term of the award. The Company has not paid dividends and does not anticipate paying a cash dividend in the foreseeable future and, accordingly, uses an expected dividend yield of zero. The risk-free interest rate is based on the rate of U.S. Treasury securities with maturities consistent with the estimated expected term of the awards. | ||||||||
Foreign Currency and Operations | ||||||||
The reporting currency for all periods presented is the U.S. dollar. The functional currency for the Company’s foreign subsidiaries is generally their local currency. The translation of each subsidiary’s financial statements into U.S. dollars is performed for assets and liabilities using exchange rates in effect at the balance sheet date and for revenue and expense accounts using an average exchange rate during the period. The resulting translation adjustments are recognized in accumulated other comprehensive loss, a separate component of stockholders’ equity. Also included in accumulated other comprehensive loss is the foreign translation loss adjustment of $2,763 and $1,729 at March 31, 2014 and December 31, 2013, respectively, related to the intercompany balance with the Company’s Canadian subsidiary not expected to be settled in the foreseeable future. Realized foreign currency transaction gains and losses are included in other income (expense) in the consolidated statements of operations and comprehensive (loss) income. | ||||||||
Segment Data | ||||||||
The Company manages its operations on a consolidated basis for purposes of assessing performance and making operating decisions. Accordingly, the Company has determined that it has a single reportable segment. | ||||||||
Income (Loss) Per Share | ||||||||
Basic net income (loss) per share is computed by dividing net income (loss) by the weighted-average number of shares of common stock outstanding for the period. Outstanding unvested restricted stock purchased by employees is subject to repurchase by the Company and therefore is not included in the calculation of the weighted-average shares outstanding until vested. Diluted net income per share is computed giving effect to all potentially dilutive common stock, including options and restricted stock. The dilutive effect of outstanding awards is reflected in diluted earnings per share by application of the treasury stock method. | ||||||||
The following summarizes the calculation of basic and diluted net income (loss) per share: | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
Basic: | ||||||||
Net income (loss) | $ | 66 | $ | (612 | ) | |||
Weighted average common shares, basic | 23,908 | 22,564 | ||||||
Basic net income (loss) per share | $ | 0 | $ | (0.03 | ) | |||
Diluted: | ||||||||
Net income (loss) | $ | 66 | $ | (612 | ) | |||
Weighted average common shares, basic | 23,908 | 22,564 | ||||||
Dilutive effect of: | ||||||||
Options to purchase common stock | 569 | — | ||||||
Nonvested shares of restricted stock | 22 | — | ||||||
Weighted average common shares, diluted | 24,499 | 22,564 | ||||||
Diluted net income (loss) per share | $ | 0 | $ | (0.03 | ) | |||
The following equity instruments have been excluded from diluted net income (loss) per common share as they would be anti-dilutive. | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
Common stock options | 92 | 84 | ||||||
For the three months ended March 31, 2013, the Company incurred net losses and, therefore, the effect of the Company’s outstanding stock options, nonvested restricted stock and common stock issuable pursuant to the employee stock purchase plan was not included in the calculation of diluted net loss per share as the effect would be anti-dilutive. For the three months ended March 31, 2013, diluted net loss per share excluded the impact of 335 outstanding stock options, 37 nonvested shares of restricted stock, and 3 shares of common stock issuable pursuant to the employee stock purchase plan. | ||||||||
Income Taxes | ||||||||
Deferred income taxes are provided using tax rates enacted for periods of expected reversal on all temporary differences. Temporary differences relate to differences between the book and tax basis of assets and liabilities, principally intangible assets, property and equipment, deferred subscription revenues, accruals and stock-based compensation. Valuation allowances are established to reduce deferred tax assets to the amount that will more likely than not be realized. To the extent that a determination is made to establish or adjust a valuation allowance, the expense or benefit is recorded in the period in which the determination is made. | ||||||||
Judgment is required in determining the provision for income taxes. Additionally, the income tax provision is based on calculations and assumptions that are subject to examination by many different tax authorities and to changes in tax law and rates in many jurisdictions. The Company would adjust its income tax provision in the period in which it becomes probable that actual results differ from management estimates. | ||||||||
The Company accounts for uncertain tax positions by recognizing and measuring tax benefits taken or expected to be taken on a tax return. A tax benefit from an uncertain position may be recognized only if it is more likely than not that the position is sustainable, based solely on its technical merits and consideration of the relevant taxing authority’s widely understood administrative practices and precedents. If the recognition threshold is met, only the portion of the tax benefit that is more likely than not to be realized upon settlement with a taxing authority is recorded. The tax benefit that is not recorded is considered an unrecognized tax benefit. Interest and penalties related to uncertain tax positions are recognized as a component of income tax expense. | ||||||||
Recent Accounting Pronouncements | ||||||||
In July 2013, the FASB issued a revised accounting standard, which clarifies that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward if such settlement is required or expected in the event the uncertain tax position is disallowed. In situations where a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction or the tax law of the jurisdiction does not require, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. This standard is effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2013. Retrospective application is permitted. The Company adopted this guidance on January 1, 2014. The adoption of this guidance did not have a material impact on the Company’s financial position, results of operations, or cash flows. |
Business_Combinations
Business Combinations | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Business Combinations | ' | |||||||
3. Business Combinations | ||||||||
CombineNet | ||||||||
On August 30, 2013, the Company acquired all of the outstanding capital stock of CombineNet, Inc. (“CombineNet”), a leading provider of advanced sourcing software. The acquisition of CombineNet expands the Company’s strategic sourcing footprint with an advanced, cloud-based tool that improves procurement decisions for spend categories that are typically beyond the capabilities of traditional eSourcing software. | ||||||||
The purchase price consisted of approximately $26,575 in cash and 820 shares of the Company’s common stock at a fair value of $17,055. The purchase price was subject to an adjustment based on the closing amount of working capital of CombineNet and accordingly as a result of this adjustment, the Company paid an additional $59 in cash and issued approximately 1 shares of common stock at a fair value of $38. The purchase price included $2,465 in cash and 76 shares of common stock that were deposited in escrow to satisfy potential indemnification claims. The acquisition was accounted for under the purchase method of accounting. The operating results of CombineNet are included in the accompanying consolidated financial statements from the date of acquisition. | ||||||||
The purchase consideration consisted of the following: | ||||||||
Cash | $ | 26,634 | ||||||
Fair value of common stock | 17,093 | |||||||
Total purchase consideration | 43,727 | |||||||
Cash acquired | 1,042 | |||||||
Net purchase consideration | $ | 42,685 | ||||||
The purchase price was allocated to the tangible and identifiable intangible assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date. Acquired technology, trademarks and the covenant not to compete are amortized on a straight-line basis over their respective estimated useful lives. Acquired customer relationships are amortized over a fifteen-year estimated life in a pattern consistent with which the economic benefit is expected to be realized. The excess of the purchase price over the net tangible and identifiable intangible assets acquired was recorded as goodwill, which is not deductible for tax purposes. This asset is attributed to a trained workforce and buyer-specific value resulting from synergies that are not included in the fair values of assets. | ||||||||
The allocation of the purchase price as of the acquisition date was as follows: | ||||||||
Estimated | Estimated | |||||||
Useful Life | Fair Value | |||||||
Accounts receivable | $ | 2,679 | ||||||
Prepaid expenses and other current assets | 334 | |||||||
Property and equipment | 464 | |||||||
Deferred project costs | 121 | |||||||
Deferred tax assets | 5,323 | |||||||
Other assets | 30 | |||||||
Covenant not to compete | 2 years | 100 | ||||||
Trademarks | 3 years | 300 | ||||||
Acquired technology | 7 years | 4,100 | ||||||
Customer relationships | 15 years | 13,000 | ||||||
Goodwill | 28,908 | |||||||
Accounts payable | (98 | ) | ||||||
Accrued expenses | (786 | ) | ||||||
Deferred tax liability | (7,350 | ) | ||||||
Deferred revenues | (4,440 | ) | ||||||
Total purchase consideration | $ | 42,685 | ||||||
The measurement period for the acquisition purchase accounting was closed December 31, 2013. | ||||||||
The following unaudited pro forma consolidated results of operations for the three months ended March 31, 2013 assume that the CombineNet acquisition occurred at the beginning of 2012. The unaudited pro forma information combines the historical results for the Company with the historical results for CombineNet for the same period. The unaudited pro forma financial information includes amortization of acquired intangible assets of $569 and includes the fair value adjustment for deferred revenue of $16 for the three months ended March 31, 2013. | ||||||||
The following unaudited pro forma information is not intended to be indicative of future operating results. | ||||||||
Three Months | ||||||||
Ended | ||||||||
March 31, | ||||||||
2013 | ||||||||
Pro forma revenue | $ | 24,053 | ||||||
Pro forma net loss | $ | (750 | ) | |||||
Pro forma net loss per share, basic | $ | (0.03 | ) | |||||
Pro forma net loss per share, diluted | $ | (0.03 | ) | |||||
Spend Radar | ||||||||
On October 1, 2012, the Company completed the acquisition of substantially all of the assets of Spend Radar LLC (“Spend Radar”), a leading provider of spend analysis solutions. The acquisition of Spend Radar added cloud-based software for cleansing and classifying spend data to drive and measure cost savings to the Company’s existing business automation solutions for spend management. | ||||||||
The purchase price consisted of $8,000 in cash and 113 shares of the Company’s common stock at a fair value of $2,087. The purchase agreement also contained an earnout provision for up to $6,000 in cash and 85 shares of the Company’s common stock based on the successful achievement of certain performance targets and continued employment with the Company from the closing date to December 31, 2013. The performance conditions for Q4 2012 and Q1 2013 were met and the Company paid $2,400 and issued 34 shares of common stock on April 29, 2013. Additionally, the performance conditions for Q2, Q3 and Q4 2013 were met and the Company paid $3,600 on January 31, 2014 and issued 51 shares of common stock on February 3, 2014. The cash earn-out was recognized as compensation expense in the consolidated statement of operations and comprehensive (loss) income in the period in which it was earned. The fair value of the shares under the stock earn-out was recognized as stock-based compensation expense in the consolidated statement of operations and comprehensive (loss) income over the requisite service period of the award. During the three months ended March 31, 2013, the Company recognized compensation expense of $1,200 and stock-based compensation expense of $313 related to this earn-out arrangement. | ||||||||
The acquisition was accounted for under the purchase method of accounting. The operating results of Spend Radar are included in the accompanying consolidated financial statements from the date of acquisition. | ||||||||
The purchase consideration consisted of the following: | ||||||||
Cash | $ | 8,000 | ||||||
Fair value of common stock | 2,087 | |||||||
Total purchase consideration | 10,087 | |||||||
Cash acquired | 259 | |||||||
Net purchase consideration | $ | 9,828 | ||||||
The purchase price was allocated to the tangible and identifiable intangible assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date. Acquired technology, trademarks and the covenant not to compete are amortized on a straight-line basis over their respective estimated useful lives. Acquired customer relationships are amortized over a five-year estimated life in a pattern consistent with which the economic benefit is expected to be realized. The excess of the purchase price over the net tangible and identifiable intangible assets acquired was recorded as goodwill, which is deductible for tax purposes. This asset is attributed to a trained workforce and buyer-specific value resulting from synergies that are not included in the fair values of assets. | ||||||||
The allocation of the purchase price as of the acquisition date was as follows: | ||||||||
Estimated | Estimated | |||||||
Useful Life | Fair Value | |||||||
Accounts receivable | $ | 634 | ||||||
Prepaid expenses and other current assets | 100 | |||||||
Property and equipment | 147 | |||||||
Covenant not to compete | 5 years | 203 | ||||||
Trademarks | 5 years | 566 | ||||||
Acquired technology | 7 years | 2,693 | ||||||
Customer relationships | 5 years | 1,338 | ||||||
Goodwill | 5,682 | |||||||
Accrued expenses | (305 | ) | ||||||
Deferred revenues | (1,230 | ) | ||||||
Total purchase consideration | $ | 9,828 | ||||||
The measurement period for the acquisition purchase accounting was closed December 31, 2012. | ||||||||
Upside Software | ||||||||
On August 1, 2012, the Company completed the acquisition of substantially all of the assets of Upside Software, Inc. (“Upside”), a privately-owned Canadian corporation that provides contract lifecycle management solutions. The acquisition of Upside added a contract lifecycle management solution, which includes collaborative contract creation and maintenance technology, to the Company’s existing business automation solutions for spend management. | ||||||||
The purchase price consisted of $22,447 in cash. The acquisition was accounted for under the purchase method of accounting. The operating results of Upside are included in the accompanying consolidated financial statements from the date of acquisition. | ||||||||
The purchase price was allocated to the tangible and identifiable intangible assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date. Acquired technology, trademarks and the covenant not to compete are amortized on a straight-line basis over their respective estimated useful lives. Acquired customer relationships are amortized over a ten-year estimated life in a pattern consistent with which the economic benefit is expected to be realized. The excess of the purchase price over the net tangible and identifiable intangible assets acquired was recorded as goodwill which is deductible for tax purposes. This asset is attributed to a trained workforce and buyer-specific value resulting from synergies that are not included in the fair values of assets. | ||||||||
The allocation of the purchase price as of the acquisition date was as follows: | ||||||||
Estimated | Estimated | |||||||
Useful Life | Fair Value | |||||||
Accounts receivable | $ | 2,096 | ||||||
Prepaid expenses and other current assets | 230 | |||||||
Property and equipment | 478 | |||||||
Covenant not to compete | 5 years | 30 | ||||||
Trademarks | 5 years | 263 | ||||||
Acquired technology | 7 years | 4,064 | ||||||
Customer relationships | 10 years | 3,594 | ||||||
Goodwill | 15,927 | |||||||
Accrued expenses | (530 | ) | ||||||
Deferred revenues | (3,705 | ) | ||||||
Total purchase consideration | $ | 22,447 | ||||||
The measurement period for the acquisition purchase accounting was closed December 31, 2012. | ||||||||
AECsoft | ||||||||
On December 21, 2010, the Company entered into a Stock Purchase Agreement to acquire all of the issued and outstanding shares of capital stock of AECsoft USA, Inc., a Texas corporation, and AEC Global (Shanghai) Co., Ltd., a Chinese corporation (collectively, “AECsoft”), which together are a leading provider of supplier management and sourcing technology. | ||||||||
The Company completed the acquisition of AECsoft, USA, Inc. on January 1, 2011 and the acquisition of AEC Global (Shanghai) Co., Ltd. on March 31, 2011. The acquisition of AECsoft added comprehensive supplier management, sourcing and compliance reporting to the Company’s existing business automation solutions for spend management. | ||||||||
The total purchase price of $13,795 consisted of $9,256 in cash and 351 shares of the Company’s common stock at a fair value of $4,539. The issuance of 25 of these shares, with an estimated fair value of $300, was subject to successful completion of certain performance targets under an earn-out arrangement with a former shareholder of AECsoft. Additionally, 300 shares of the Company’s common stock were issuable under an earn-out arrangement with the other former shareholders of AECsoft, upon the successful achievement of performance conditions over three fiscal years, including continued employment with the Company. The performance conditions for 2012 and 2011 were met in full, and the Company issued 122 shares of common stock on March 20, 2013 and April 14, 2012, respectively. The performance conditions for 2013 were met in full, and the Company issued 81 shares of common stock on February 5, 2014. The fair value of these shares was recognized as stock-based compensation expense in the consolidated statement of operations and comprehensive (loss) income over the requisite service period of the award. During the three months ended March 31, 2013, the Company recognized stock-based compensation expense of $244 related to this earn-out arrangement. |
Cash_Equivalents_and_ShortTerm
Cash Equivalents and Short-Term Investments | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Cash Equivalents and Short-Term Investments | ' | |||||||||||||||
4. Cash Equivalents and Short-Term Investments | ||||||||||||||||
The components of cash equivalents and short-term investments at March 31, 2014 and December 31, 2013 are as follows: | ||||||||||||||||
March 31, 2014 | December 31, 2013 | |||||||||||||||
Cost | Fair Market | Cost | Fair Market | |||||||||||||
Value | Value | |||||||||||||||
Cash equivalents: | ||||||||||||||||
Money market accounts | $ | 8,354 | $ | 8,354 | $ | 5,349 | $ | 5,349 | ||||||||
Short-term investments: | ||||||||||||||||
Variable rate demand notes | 15,105 | 15,105 | 15,105 | 15,105 | ||||||||||||
Total | $ | 23,459 | $ | 23,459 | $ | 20,454 | $ | 20,454 | ||||||||
There were no unrealized gains or losses as of March 31, 2014 or December 31, 2013. |
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Fair Value Measurements | ' | |||||||||||||||
5. Fair Value Measurements | ||||||||||||||||
Under GAAP, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., “the exit price”) in an orderly transaction between market participants at the measurement date. GAAP also establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are obtained from independent sources and can be validated by a third party, whereas unobservable inputs reflect assumptions regarding what a third party would use in pricing an asset or liability. The fair value hierarchy is broken down into three levels based on the reliability of inputs as follows: | ||||||||||||||||
— | Level 1 – Valuations based on quoted prices in active markets for identical instruments that the Company is able to access. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these products does not entail a significant degree of judgment. | |||||||||||||||
— | Level 2 – Valuations based on quoted prices in active markets for instruments that are similar, or quoted prices in markets that are not active for identical or similar instruments, and model-derived valuations in which all significant input and significant value drivers are observable in active markets. | |||||||||||||||
— | Level 3 – Valuations based on inputs that are unobservable and significant to the overall fair value measurement. | |||||||||||||||
The financial assets for which the Company performs recurring fair value remeasurements are cash equivalents and short-term investments. | ||||||||||||||||
As of March 31, 2014 and December 31, 2013, the Company had cash equivalents of $8,354 and $5,349, respectively, which consist of money market accounts. As of March 31, 2014 and December 31, 2013, the Company had short-term investments of $15,105 and $15,105, respectively, which consist of variable rate demand notes that are invested in corporate and municipal bonds. These variable rate demand notes have final maturities between 2017 and 2042, but are puttable by the Company at any time with seven days notice. These cash equivalents and short-term investments are classified within Level 1 of the fair value hierarchy since they are valued using quoted market prices. As of March 31, 2014 and December 31, 2013, the Company did not have any financial assets or liabilities with observable inputs not quoted on active markets (Level 2), or without observable market values that would require a high level of judgment to determine fair value (Level 3). | ||||||||||||||||
The fair value measurements of the Company’s financial assets at March 31, 2014 are as follows: | ||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||
Cash equivalents | $ | 8,354 | $ | 8,354 | $ | — | $ | — | ||||||||
Short-term investments | 15,105 | 15,105 | — | — | ||||||||||||
Total | $ | 23,459 | $ | 23,459 | $ | — | $ | — | ||||||||
The fair value measurements of the Company’s financial assets at December 31, 2013 are as follows: | ||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||
Cash equivalents | $ | 5,349 | $ | 5,349 | $ | — | $ | — | ||||||||
Short-term investments | 15,105 | 15,105 | — | — | ||||||||||||
Total | $ | 20,454 | $ | 20,454 | $ | — | $ | — | ||||||||
Property_and_Equipment
Property and Equipment | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Property and Equipment | ' | |||||||
6. Property and Equipment | ||||||||
Property and equipment consist of the following as of March 31, 2014 and December 31, 2013: | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
Furniture and fixtures | $ | 1,281 | $ | 1,284 | ||||
Computer software and equipment | 18,455 | 17,036 | ||||||
Leasehold improvements | 714 | 715 | ||||||
Total costs | 20,450 | 19,035 | ||||||
Less accumulated depreciation and amortization | (10,158 | ) | (9,007 | ) | ||||
Property and equipment, net | $ | 10,292 | $ | 10,028 | ||||
Depreciation expense related to property and equipment (excluding capitalized internal-use software) was $610 and $474 for the three months ended March 31, 2014 and 2013, respectively. | ||||||||
Computer software and equipment includes capitalized software development costs incurred during development of the Company’s cloud-based solution. The Company capitalized software development costs of $1,271 and $1,079 during the three months ended March 31, 2014 and 2013, respectively. Net capitalized software development costs totaled $6,066 and $5,349 at March 31, 2014 and December 31, 2013, respectively. Amortization expense for the three months ended March 31, 2014 and 2013 related to capitalized software development costs was $558 and $367, respectively, which is classified within cost of revenues in the accompanying consolidated statements of operations and comprehensive (loss) income. |
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Goodwill and Other Intangible Assets | ' | |||||||||||||||
7. Goodwill and Other Intangible Assets | ||||||||||||||||
The Company acquired goodwill and certain identifiable intangible assets as part of the acquisitions in August 2013, October 2012, August 2012 and January 2011 and the going private transaction in July 2004. | ||||||||||||||||
The changes in the carrying amount of goodwill for the three months ended March 31, 2014 were as follows: | ||||||||||||||||
Balance at December 31, 2013 | $ | 65,280 | ||||||||||||||
Foreign currency translation | (548 | ) | ||||||||||||||
Balance at March 31, 2014 | $ | 64,732 | ||||||||||||||
As the functional currency of the Company’s Canadian subsidiary, where certain of the Company’s goodwill is recorded, is its local currency, there are related foreign currency translation adjustments. The foreign currency is translated into U.S. dollars using the exchange rate in effect at period end, with any adjustment included in other comprehensive (loss) income. | ||||||||||||||||
A summary of intangible assets at March 31, 2014 and December 31, 2013 follows: | ||||||||||||||||
March 31, 2014 | ||||||||||||||||
Weighted Average | Gross Carrying | Accumulated | Net Carrying | |||||||||||||
Amortization | Amount | Amortization | Amount | |||||||||||||
Period | ||||||||||||||||
Acquired technology | 7.0 years | $ | 19,749 | $ | (10,471 | ) | $ | 9,278 | ||||||||
Customer relationships | 12.1 years | 26,993 | (9,781 | ) | 17,212 | |||||||||||
Covenant not to compete | 4.2 years | 381 | (133 | ) | 248 | |||||||||||
Acquired trademarks | 4.5 years | 1,104 | (310 | ) | 794 | |||||||||||
Trademarks | indefinite | 430 | — | 430 | ||||||||||||
Total | $ | 48,657 | $ | (20,695 | ) | $ | 27,962 | |||||||||
December 31, 2013 | ||||||||||||||||
Weighted Average | Gross Carrying | Accumulated | Net Carrying | |||||||||||||
Amortization | Amount | Amortization | Amount | |||||||||||||
Period | ||||||||||||||||
Acquired technology | 7.0 years | $ | 19,889 | $ | (10,070 | ) | $ | 9,819 | ||||||||
Customer relationships | 12.1 years | 27,117 | (9,013 | ) | 18,104 | |||||||||||
Covenant not to compete | 4.2 years | 382 | (112 | ) | 270 | |||||||||||
Acquired trademarks | 4.5 years | 1,113 | (246 | ) | 867 | |||||||||||
Trademarks | indefinite | 430 | — | 430 | ||||||||||||
Total | $ | 48,931 | $ | (19,441 | ) | $ | 29,490 | |||||||||
As the functional currency of the Company’s Canadian subsidiary, where certain intangible assets are recorded, is its local currency, there are related foreign currency translation adjustments. The foreign currency is translated into U.S. dollars using the exchange rate in effect at period end, with any adjustment included in other comprehensive (loss) income. | ||||||||||||||||
Amortization expense of intangible assets was $1,317 and $779 for the three months ended March 31, 2014 and 2013, respectively, of which $520 and $325 is recorded in cost of revenues in the accompanying consolidated statements of operations and comprehensive (loss) income for the three months ended March 31, 2014 and 2013, respectively. | ||||||||||||||||
The Company estimates the following amortization expense related to its intangible assets for the years ended December 31: | ||||||||||||||||
2014 (remaining nine months) | $ | 3,802 | ||||||||||||||
2015 | 4,633 | |||||||||||||||
2016 | 4,211 | |||||||||||||||
2017 | 3,756 | |||||||||||||||
2018 | 3,147 | |||||||||||||||
Thereafter | 7,983 | |||||||||||||||
$ | 27,532 | |||||||||||||||
Debt
Debt | 3 Months Ended |
Mar. 31, 2014 | |
Debt | ' |
8. Debt | |
On November 2, 2012, the Company established a $30,000 revolving credit facility which will be available for use until November 2, 2015. The revolving credit facility will be used for general corporate purposes. The facility consists of a $20,000 securities secured revolving credit facility and a $10,000 receivables secured revolving credit facility. The securities secured revolving credit facility and the receivables secured revolving credit facility bear interest equal to the BBA LIBOR Daily Floating Rate plus 0.75% and the BBA LIBOR Daily Floating Rate plus 1.50%, respectively. In addition, the Company pays a quarterly fee equal to 0.10% on any unused funds under the facility. As collateral for extension of credit under the facility, the Company and a domestic subsidiary granted security interests in substantially all of their assets, and the Company pledged the stock of a domestic subsidiary and 66% of the shares of one of its foreign subsidiaries. As of March 31, 2014 and December 31, 2013, the Company had $0 outstanding under the revolving credit facility. |
Stockholders_Equity
Stockholders' Equity | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||
Stockholders' Equity | ' | ||||||||||||||||||||
9. Stockholders’ Equity | |||||||||||||||||||||
Preferred Stock | |||||||||||||||||||||
The Company is authorized to issue up to 5,000 shares of $0.001 par value preferred stock, of which 222 shares are designated as Series A redeemable preferred stock. The Company’s Board of Directors has the authority to issue up to 4,778 shares of preferred stock in one or more series and to fix the designations, rights, preferences and privileges and any qualifications, limitations or restrictions of the shares of each such series of preferred stock, including dividend rights and rates, conversion rights, voting rights, terms of redemption including price and sinking fund provisions, liquidation preferences and number of shares constituting any series or the designation of that series. As of March 31, 2014 and December 31, 2013, no shares of preferred stock were issued or outstanding. | |||||||||||||||||||||
Stock Incentive Plan | |||||||||||||||||||||
The Company’s 2013 Stock Incentive Plan (the “Plan”) allows the Company to grant common stock options, stock appreciation rights, restricted stock units and restricted stock awards to employees, board members and others who contribute materially to the success of the Company. The Company reserved 3,500 shares of its common stock for issuance under the Plan. Additionally, per the terms of the Plan, shares of common stock previously reserved for issuance under the 2004 Stock Incentive Plan (the “Prior Plan”) as well as shares reserved for outstanding awards under the Prior Plan for which the awards are canceled, forfeited, repurchased or otherwise result in common stock not being issued will be added to the number of shares available for issuance under the Plan. Restricted stock units and restricted stock awards that are granted shall count towards the total number of shares reserved for issuance under the Plan as 1.65 shares. As of March 31, 2014, 3,496 shares of common stock were available for issuance under the Plan. | |||||||||||||||||||||
The following table summarizes the number of shares outstanding and the number of shares available for future grant under the stock incentive plan at March 31, 2014: | |||||||||||||||||||||
March 31, 2014 | |||||||||||||||||||||
Number of shares reserved under the 2013 Plan | 3,500 | ||||||||||||||||||||
Number of shares remaining for future grants transferred from Prior Plan | 844 | ||||||||||||||||||||
Number of stock options outstanding under the 2013 Plan | (780 | ) | |||||||||||||||||||
Weighted average exercise price | $ | 25.05 | |||||||||||||||||||
Weighted average term (in years) | 9.8 | ||||||||||||||||||||
Number of restricted stock units issued under the 2013 Plan | (68 | ) | |||||||||||||||||||
Number of shares remaining for future grants | |||||||||||||||||||||
SciQuest, Inc. 2013 Stock Incentive Plan | 3,496 | ||||||||||||||||||||
The Company’s Board of Directors approves the terms of stock options granted. Individual option grants generally become exercisable ratably over a period of four years from the grant date. The contractual term of the options is approximately ten years from the date of grant. | |||||||||||||||||||||
The Company recognizes compensation expense associated with restricted stock and common stock options based on the grant-date fair value of the award on a straight-line basis over the requisite service period of the individual grantees, which generally equals the vesting period. | |||||||||||||||||||||
Restricted Stock | |||||||||||||||||||||
The Company issues restricted stock units to certain employees and non-employee directors. Restricted stock units differ from restricted stock awards in that restricted stock units represent the right to receive shares of common stock once such shares are vested and issuable in accordance with the terms of the restricted stock units. Once issued, such shares are not subject to further restrictions. Stock-based compensation expense related to these restricted stock units is recognized in the consolidated statements of operations and comprehensive (loss) income based on the fair value of these awards, which is the grant date market value of the Company’s common stock. Stock-based compensation expense of $144 and $128 was recorded during the three months ended March 31, 2014 and 2013, respectively, in connection with these restricted stock units. The total unrecognized compensation cost related to these awards is approximately $1,436 at March 31, 2014. This amount is expected to be recognized over a weighted-average period of 3.5 years. | |||||||||||||||||||||
The following summarizes the activity of restricted stock units for the three months ended March 31, 2014: | |||||||||||||||||||||
Number of | Weighted- | ||||||||||||||||||||
Shares | Average Grant | ||||||||||||||||||||
Date Fair Value | |||||||||||||||||||||
Nonvested as of December 31, 2013 | 49 | $ | 18.02 | ||||||||||||||||||
Issued | 41 | 25.01 | |||||||||||||||||||
Vested | (9 | ) | 16.3 | ||||||||||||||||||
Nonvested as of March 31, 2014 | 81 | $ | 21.78 | ||||||||||||||||||
Additionally, the Company previously issued restricted shares of its common stock to certain employees under the Prior Plan. These awards are recognized in the consolidated statements of operations and comprehensive (loss) income based on their fair values. Stock-based compensation expense of $11 was recorded during the three months ended March 31, 2013 in connection with these restricted stock awards. | |||||||||||||||||||||
Stock Options | |||||||||||||||||||||
The Company also issues common stock options. The following summarizes stock option activity for the three months ended March 31, 2014: | |||||||||||||||||||||
Number of Options | Weighted- | Weighted- | Aggregate | ||||||||||||||||||
Average | Average | Intrinsic Value | |||||||||||||||||||
Exercise Price | Remaining | as of | |||||||||||||||||||
Contractual | March 31, | ||||||||||||||||||||
Term (In Years) | 2014 | ||||||||||||||||||||
Balance outstanding as of December 31, 2013 | 1,967 | $ | 15.22 | 8 | $ | 26,168 | |||||||||||||||
Options granted | 431 | 26.05 | |||||||||||||||||||
Options exercised | (40 | ) | 7.56 | ||||||||||||||||||
Options canceled | (24 | ) | 16.35 | ||||||||||||||||||
Balance outstanding as of March 31, 2014 | 2,334 | $ | 17.33 | 8.2 | $ | 22,918 | |||||||||||||||
Vested and expected to vest at March 31, 2014 | 2,054 | $ | 16.82 | 8.1 | $ | 22,132 | |||||||||||||||
Exercisable as of March 31, 2014 | 930 | $ | 11.72 | 6.9 | $ | 14,235 | |||||||||||||||
The aggregate intrinsic value in the table above represents the difference between the exercise price of the underlying awards and the estimated fair value of the Company’s common stock at March 31, 2014 multiplied by the number of shares that would have been received by the option holders had all option holders exercised their options on March 31, 2014. The aggregate intrinsic value of options exercised during the three months ended March 31, 2014 and 2013 was $831 and $1,098, respectively. | |||||||||||||||||||||
The total unrecognized compensation cost related to outstanding stock options is $14,373 at March 31, 2014. This amount is expected to be recognized over a weighted-average period of 3.1 years. | |||||||||||||||||||||
The following table summarizes information about stock options outstanding and exercisable at March 31, 2014: | |||||||||||||||||||||
Options Outstanding at March 31, 2014 | Options Exercisable at March 31, 2014 | ||||||||||||||||||||
Range of Exercise Price | Number | Weighted- | Weighted- | Number | Weighted- | ||||||||||||||||
Average | Average | Average | |||||||||||||||||||
Remaining | Exercise Price | Exercise Price | |||||||||||||||||||
Contractual Term | |||||||||||||||||||||
(In Years) | |||||||||||||||||||||
$0.08 –$0.14 | 29 | 1.1 | $ | 0.09 | 29 | $ | 0.09 | ||||||||||||||
$0.14 –$1.90 | 3 | 4.5 | 1.34 | 3 | 1.34 | ||||||||||||||||
$2.04 –$8.18 | 224 | 5.7 | 3.66 | 224 | 3.65 | ||||||||||||||||
$11.45 –$17.41 | 1,194 | 7.8 | 14.87 | 642 | 14.53 | ||||||||||||||||
$17.50 –$27.64 | 709 | 9.5 | 23.76 | 28 | 22.66 | ||||||||||||||||
$27.91 –$29.14 | 175 | 9.9 | 28.71 | 4 | 28.68 | ||||||||||||||||
Total | 2,334 | 8.2 | $ | 17.33 | 930 | $ | 11.72 | ||||||||||||||
The fair value of common stock options for employees and non-employees is estimated on the date of grant using the Black-Scholes option-pricing model with the following assumptions used: | |||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Estimated dividend yield | 0 | % | 0 | % | |||||||||||||||||
Expected stock price volatility | 46.11 - 46.33 | % | 55 | % | |||||||||||||||||
Weighted-average risk-free interest rate | 1.75 - 1.84 | % | 1.1 | % | |||||||||||||||||
Expected life of options (in years) | 6.25 | 6.25 | |||||||||||||||||||
Stock-based compensation expense of $1,238 and $789 was recorded during the three months ended March 31, 2014 and 2013, respectively, related to the Company’s outstanding stock options. The weighted average grant date fair value per share for stock options granted in the three months ended March 31, 2014 and 2013 was $12.20 and $8.62, respectively. The aggregate fair value of stock options that vested during the three months ended March 31, 2014 and 2013 was $971 and $796, respectively. | |||||||||||||||||||||
As discussed in Note 3, the Company recognized stock-based compensation expense of $313 in the accompanying consolidated statement of operations and comprehensive (loss) income during the three months ended March 31, 2013 related to the earn-out arrangement associated with the Spend Radar acquisition. In addition, the Company recognized stock-based compensation of $244 in the accompanying consolidated statement of operations and comprehensive (loss) income during the three months ended March 31, 2013 related to the earn-out arrangement with certain former shareholders of AECsoft. | |||||||||||||||||||||
Employee Stock Purchase Plan | |||||||||||||||||||||
The Company adopted an Employee Stock Purchase Plan (the “Purchase Plan”) effective June 1, 2012. Eligible employees can contribute up to 10% of their gross earnings for each pay period, up to a maximum of $25 for any calendar year. The initial offering period that commenced on June 1, 2012 was a period of 12 months, and thereafter six month offering periods begin on December 1 and June 1 of each year. During the offering period eligible employees may elect to purchase shares of the Company’s common stock according to the terms of the offering. The per share purchase price is equal to the lesser of 85% of the fair market value of the Company’s common stock on the offering date or 85% of the fair market value of the Company’s common stock on the purchase date. The fair value of stock purchase rights granted under the Purchase Plan is estimated on the date of grant using the Black-Scholes option-pricing model. As of March 31, 2014, 943 shares of common stock were available for issuance to participating employees under the Purchase Plan. During the three months ended March 31, 2014 and 2013, the Company recognized stock-based compensation expense of $81 and $77 related to the Purchase Plan. |
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2014 | |
Income Taxes | ' |
10. Income Taxes | |
The Company computes its provision for income taxes by applying the estimated annual effective tax rate, adjusted for any material items. The Company’s effective tax rate for the three months ended March 31, 2014 was (210.0)%, which was lower than the federal statutory rate of 34% primarily due to research and development credits generated, non-deductible expenses, including stock-based compensation and stock-based compensation associated with the earn-out arrangement. The Company’s effective tax rate for the three months ended March 31, 2013 was (53.5)%, which was lower than the federal statutory rate of 34% primarily due to research and development credits generated, non-deductible expenses, including stock-based compensation and stock-based compensation associated with the earn-out arrangement. |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2014 | |
Commitments and Contingencies | ' |
11. Commitments and Contingencies | |
Legal Contingencies | |
From time to time, the Company is subject to legal proceedings and claims that arise in the ordinary course of business. The Company records an accrual for a contingency when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. The Company is not currently subject to any material legal proceedings. | |
Warranties and Indemnification | |
The Company’s hosting service is typically warranted to perform in a manner consistent with general industry standards that are reasonably applicable under normal use and circumstances. The Company’s arrangements also include certain provisions for indemnifying customers against liabilities if its products or services infringe a third party’s intellectual property rights. The Company to date has not incurred costs to settle claims or pay awards under these indemnification obligations. The Company accounts for these indemnity obligations as contingencies and records a liability for these obligations when a loss is probable and reasonably estimable. To date, the Company has not incurred any material costs as a result of these indemnifications and has not accrued any liabilities related to the obligations in the accompanying consolidated financial statements. | |
The Company enters into service level agreements with its on-demand solution customers warranting certain levels of uptime reliability. To date, the Company has not incurred any material costs and has not accrued any liabilities related to such obligations. | |
Subsequent_Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2014 | |
Subsequent Events | ' |
12. Subsequent Event | |
Public Offering | |
On April 1, 2014 the Company completed a public offering of 3,000 shares of common stock at an offering price of $26.75 per share. An additional 450 shares of common stock were sold at an offering price of $26.75 per share pursuant to the underwriters’ over-allotment option. The Company received aggregate net proceeds of approximately $87,433, after payment of underwriting discounts and commissions and estimated legal, accounting, and other fees incurred in connection with the offering and the over-allotment option. | |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Basis of Presentation | ' | |||||||
Basis of Presentation | ||||||||
The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by accounting principles generally accepted in the United States for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2014 are not necessarily indicative of the results to be expected for the fiscal year or any future period. The balance sheet at December 31, 2013 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by GAAP for complete financial statements. For further information, refer to the financial statements and footnotes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, 2013, which was filed with the Securities and Exchange Commission on February 21, 2014. | ||||||||
Principles of Consolidation | ' | |||||||
Principles of Consolidation | ||||||||
The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. | ||||||||
Use of Estimates | ' | |||||||
Use of Estimates | ||||||||
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates. | ||||||||
Revenue Recognition | ' | |||||||
Revenue Recognition | ||||||||
The Company primarily derives its revenues from subscription fees and related services, permitting customers to access and utilize the Company’s cloud-based business automation solutions for spend management. Customers may also purchase a perpetual license for certain software products. Revenue is recognized when there is persuasive evidence of an arrangement, the service has been provided or delivered to the customer, the collection of the fee is probable and the amount of the fee to be paid by the customer is fixed or determinable. The Company’s arrangements do not contain general rights of return. | ||||||||
Because customers do not have the right to take possession of the Software-as-a-Service (“SaaS”) based software, these arrangements are considered service contracts and are not within the scope of Industry Topic 985, Software. The Company’s contractual agreements generally contain multiple service elements and deliverables, for which we follow the guidance provided in Accounting Standards Codification (“ASC”) 605-25, Revenue Recognition for Multiple-Element Arrangements. These elements include access to the hosted software, implementation or data classification services and, on a limited basis, perpetual licenses for certain software products and related maintenance and support. The Company evaluates each element in a multiple-element arrangement to determine whether it represents a separate unit of accounting. An element constitutes a separate unit of accounting when the delivered item has standalone value and delivery of the undelivered element is probable and within the Company’s control. | ||||||||
For arrangements in which elements do have stand-alone value, the Company allocates revenue to each element in the arrangement based on a selling price hierarchy. The selling price for a deliverable is based on vendor-specific objective evidence of selling price (“VSOE”), if available, third-party evidence of selling price (“TPE”), if VSOE is not available, or estimated selling price (“ESP”) if neither VSOE nor TPE is available. Because the Company has neither VSOE nor TPE for its deliverables, the allocation of revenue is based on ESP. | ||||||||
The Company’s process for determining ESP for its deliverables considers multiple factors that may vary depending upon the facts and circumstances related to each deliverable. Key factors considered in developing ESP related to deliverables include established pricing and approval policies, type and size of customer, number of products purchased, and historical transactions. The Company regularly reviews ESP and maintains internal controls over the establishment and updates of these estimates. | ||||||||
The Company evaluates its SaaS subscription agreements and considers whether the associated services have standalone value to its customers. For arrangements when implementation services do not have standalone value to the customer, licenses and related implementation services are considered a single unit of accounting. Accordingly, the consideration allocated to licenses and services is recognized ratably over the term of the subscription agreement, beginning with the later of the start date specified in the subscription agreement, or the date access to the software is provided to the customer, provided all other revenue recognition criteria have been met. Fees for professional services that are contingent upon future performance are recognized ratably over the remaining subscription term once the performance milestones have been met. Alternatively, when services have standalone value to the customer, licenses and related services are considered separate units of accounting. For separate units of accounting, services are recognized as the services are performed and delivered to the customer and licenses are recognized over the term of the subscription arrangement, beginning with the later of the start date specified in the subscription agreement, or the date access to the software is provided to the customer, provided all other revenue recognition criteria have been met. | ||||||||
Revenue from sales of certain of the Company’s perpetual software products and related implementation services and maintenance is recognized as a single unit of accounting since VSOE of fair value does not exist for the contractual elements. Accordingly, revenue for all elements in these arrangements is recognized over the contractual maintenance term, which is typically one year. | ||||||||
The Company recognizes revenue from any professional services that are sold separately as the services are performed. | ||||||||
Deferred revenue primarily consists of billings or payments received in advance of revenue recognition from the Company’s software and services described above. For multi-year subscription agreements, the Company generally invoices its customers in annual installments. Accordingly, the deferred revenue balance does not represent the total contract value of these multi-year subscription agreements. The Company’s services, such as implementation, are generally sold in conjunction with subscription agreements. These services are recognized ratably over the remaining term of the subscription agreement once any contingent performance milestones have been satisfied. The portion of deferred revenue that the Company anticipates will be recognized after the succeeding 12-month period is recorded as non-current deferred revenue and the remaining portion is recorded as current deferred revenue. | ||||||||
Cost of Revenues | ' | |||||||
Cost of Revenues | ||||||||
Cost of revenues primarily consists of costs related to hosting the Company’s subscription software services, compensation and related expenses for implementation services, supplier enablement services, customer support staff and client partners, amortization of capitalized software development costs and allocated fixed asset depreciation and facilities costs. Cost of revenues is expensed as incurred. | ||||||||
Deferred Commissions | ' | |||||||
Deferred Commissions | ||||||||
The Company capitalizes sales commission costs that are directly related to the execution of its subscription agreements. The commissions are deferred and amortized over the contractual term of the related non-cancelable subscription agreement. The Company believes this is the appropriate method of accounting, as the commission costs are so closely related to the revenues from the subscription agreements that they should be recorded as an asset and charged to expense over the same period that the subscription revenues are recognized. Amortization of deferred commissions is included in sales and marketing expense in the accompanying consolidated statements of operations and comprehensive (loss) income. The deferred commissions are reflected in the accompanying consolidated balance sheets. | ||||||||
Cash and Cash Equivalents | ' | |||||||
Cash and Cash Equivalents | ||||||||
The Company considers all highly liquid debt investments with an original maturity of three months or less at the date of purchase to be cash equivalents. The Company maintains cash balances at financial institutions that may at times exceed federally insured limits. The Company maintains this cash at reputable financial institutions and, as a result, believes credit risk related to its cash is minimal. | ||||||||
Short-Term Investments | ' | |||||||
Short-Term Investments | ||||||||
Management determines the appropriate classification of investments at the time of purchase and evaluates such determination as of each balance sheet date. The Company’s investments were classified as available-for-sale securities and are stated at fair value at March 31, 2014 and December 31, 2013. Realized gains and losses are included in other (expense) income based on the specific identification method. There were no realized gains or losses for the three months ended March 31, 2014 or 2013. Net unrealized gains and losses on available-for-sale securities are reported as a component of other comprehensive (loss) income, net of tax. As of March 31, 2014 and December 31, 2013, there were no unrealized gains or losses on available-for-sale securities. The Company regularly monitors and evaluates the fair value of its investments to identify other-than-temporary declines in value. Management believes no such declines in value existed at March 31, 2014 or December 31, 2013. | ||||||||
Accounts Receivable | ' | |||||||
Accounts Receivable | ||||||||
The Company assesses the need for an allowance for doubtful accounts based on estimates of probable credit losses. This assessment is based on several factors including aging of customer accounts, known customer specific risks, historical experience and existing economic conditions. The Company generally does not require collateral for receivable balances. Accounts would be charged against the allowance after all means of collection were exhausted and recovery was considered remote. Based on management’s analysis of its outstanding accounts receivable, the Company recorded an allowance of $421 and $556 at March 31, 2014 and December 31, 2013, respectively. | ||||||||
Property and Equipment | ' | |||||||
Property and Equipment | ||||||||
Property and equipment are recorded at cost and depreciated using the straight-line method over their estimated useful lives, which are usually seven years for furniture and three to five years for computer software and equipment. Leasehold improvements are amortized over the shorter of the estimated useful lives of the assets or the remainder of the lease term. Costs for repairs and maintenance are expensed as incurred. Upon retirement or sale, the cost of the disposed assets and the related accumulated depreciation are removed from the accounts, and any resulting gain or loss is credited or charged to operations. | ||||||||
Software Development Costs | ' | |||||||
Software Development Costs | ||||||||
The Company incurs certain costs associated with the development of its cloud-based solution, which are accounted for as internal-use software. Certain qualifying costs incurred during the application development phase are capitalized and amortized to expense over the estimated useful life of the related applications, which is generally three years. | ||||||||
Although the Company’s development efforts are primarily focused on its hosted, cloud-based solution, the Company also incurs costs in connection with the development of certain of its software products licensed to customers on a perpetual basis, which are accounted for as costs of software to be sold, leased or otherwise marketed. Under this guidance, capitalization of software development costs begins upon the establishment of technological feasibility (based on a working model approach), subject to net realizable value considerations. To date, the dates between achieving technological feasibility and the general availability of such software have substantially coincided; therefore, software development costs for these products that would qualify for capitalization have been immaterial. Accordingly, the Company has not capitalized any software development costs related to these software products and has charged all such costs to research and development expense. | ||||||||
Goodwill | ' | |||||||
Goodwill | ||||||||
Goodwill represents the excess of the cost of an acquired entity over the net fair value of the identifiable assets acquired and liabilities assumed. Goodwill is not amortized, but rather is assessed for impairment at least annually. Additionally, the Company would also review the carrying value of goodwill whenever events or changes in circumstances indicated that its carrying amount may not be recoverable. The Company has concluded that it has one reporting unit for purposes of its annual goodwill impairment testing. To assess goodwill impairment, the first step is to identify if a potential impairment exists by comparing the fair value of a reporting unit with its carrying amount, including goodwill. If the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is not considered to have a potential impairment and the second step of the impairment test is not necessary. The results of our most recent annual assessment did not indicate any impairment of goodwill, and as such the second step of the impairment test was not required. Additionally, we do not believe there have been any triggering events that would result in potential impairment of goodwill as of March 31, 2014. | ||||||||
Stock-Based Compensation | ' | |||||||
Stock-Based Compensation | ||||||||
Stock-based payments to employees, including grants of employee stock options, are recognized in the consolidated statement of operations and comprehensive (loss) income based on their fair values. Stock-based compensation costs are measured at the grant date based on the fair value of the award and are recognized as expense on a straight-line basis over the requisite service period, which is the vesting period. | ||||||||
Stock-based compensation costs are based on the fair value of the underlying option calculated using the Black-Scholes option-pricing model on the date of grant for stock options. Determining the appropriate fair value model and related assumptions requires judgment, including estimating stock price volatility, forfeiture rates and expected term. The Company uses the historical volatility of its stock price to calculate the expected volatility. Prior to the second half of 2013, the expected volatility rates were estimated based on the actual volatility of comparable public companies over the expected term. The expected term for the three months ended March 31, 2014 and 2013, represents the average time that options that vest are expected to be outstanding based on the mid-point between the vesting date and the end of the contractual term of the award. The Company has not paid dividends and does not anticipate paying a cash dividend in the foreseeable future and, accordingly, uses an expected dividend yield of zero. The risk-free interest rate is based on the rate of U.S. Treasury securities with maturities consistent with the estimated expected term of the awards. | ||||||||
Foreign Currency and Operations | ' | |||||||
Foreign Currency and Operations | ||||||||
The reporting currency for all periods presented is the U.S. dollar. The functional currency for the Company’s foreign subsidiaries is generally their local currency. The translation of each subsidiary’s financial statements into U.S. dollars is performed for assets and liabilities using exchange rates in effect at the balance sheet date and for revenue and expense accounts using an average exchange rate during the period. The resulting translation adjustments are recognized in accumulated other comprehensive loss, a separate component of stockholders’ equity. Also included in accumulated other comprehensive loss is the foreign translation loss adjustment of $2,763 and $1,729 at March 31, 2014 and December 31, 2013, respectively, related to the intercompany balance with the Company’s Canadian subsidiary not expected to be settled in the foreseeable future. Realized foreign currency transaction gains and losses are included in other income (expense) in the consolidated statements of operations and comprehensive (loss) income. | ||||||||
Segment Data | ' | |||||||
Segment Data | ||||||||
The Company manages its operations on a consolidated basis for purposes of assessing performance and making operating decisions. Accordingly, the Company has determined that it has a single reportable segment. | ||||||||
Income (Loss) Per Share | ' | |||||||
Income (Loss) Per Share | ||||||||
Basic net income (loss) per share is computed by dividing net income (loss) by the weighted-average number of shares of common stock outstanding for the period. Outstanding unvested restricted stock purchased by employees is subject to repurchase by the Company and therefore is not included in the calculation of the weighted-average shares outstanding until vested. Diluted net income per share is computed giving effect to all potentially dilutive common stock, including options and restricted stock. The dilutive effect of outstanding awards is reflected in diluted earnings per share by application of the treasury stock method. | ||||||||
The following summarizes the calculation of basic and diluted net income (loss) per share: | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
Basic: | ||||||||
Net income (loss) | $ | 66 | $ | (612 | ) | |||
Weighted average common shares, basic | 23,908 | 22,564 | ||||||
Basic net income (loss) per share | $ | 0 | $ | (0.03 | ) | |||
Diluted: | ||||||||
Net income (loss) | $ | 66 | $ | (612 | ) | |||
Weighted average common shares, basic | 23,908 | 22,564 | ||||||
Dilutive effect of: | ||||||||
Options to purchase common stock | 569 | — | ||||||
Nonvested shares of restricted stock | 22 | — | ||||||
Weighted average common shares, diluted | 24,499 | 22,564 | ||||||
Diluted net income (loss) per share | $ | 0 | $ | (0.03 | ) | |||
The following equity instruments have been excluded from diluted net income (loss) per common share as they would be anti-dilutive. | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
Common stock options | 92 | 84 | ||||||
For the three months ended March 31, 2013, the Company incurred net losses and, therefore, the effect of the Company’s outstanding stock options, nonvested restricted stock and common stock issuable pursuant to the employee stock purchase plan was not included in the calculation of diluted net loss per share as the effect would be anti-dilutive. For the three months ended March 31, 2013, diluted net loss per share excluded the impact of 335 outstanding stock options, 37 nonvested shares of restricted stock, and 3 shares of common stock issuable pursuant to the employee stock purchase plan. | ||||||||
Income Taxes | ' | |||||||
Income Taxes | ||||||||
Deferred income taxes are provided using tax rates enacted for periods of expected reversal on all temporary differences. Temporary differences relate to differences between the book and tax basis of assets and liabilities, principally intangible assets, property and equipment, deferred subscription revenues, accruals and stock-based compensation. Valuation allowances are established to reduce deferred tax assets to the amount that will more likely than not be realized. To the extent that a determination is made to establish or adjust a valuation allowance, the expense or benefit is recorded in the period in which the determination is made. | ||||||||
Judgment is required in determining the provision for income taxes. Additionally, the income tax provision is based on calculations and assumptions that are subject to examination by many different tax authorities and to changes in tax law and rates in many jurisdictions. The Company would adjust its income tax provision in the period in which it becomes probable that actual results differ from management estimates. | ||||||||
The Company accounts for uncertain tax positions by recognizing and measuring tax benefits taken or expected to be taken on a tax return. A tax benefit from an uncertain position may be recognized only if it is more likely than not that the position is sustainable, based solely on its technical merits and consideration of the relevant taxing authority’s widely understood administrative practices and precedents. If the recognition threshold is met, only the portion of the tax benefit that is more likely than not to be realized upon settlement with a taxing authority is recorded. The tax benefit that is not recorded is considered an unrecognized tax benefit. Interest and penalties related to uncertain tax positions are recognized as a component of income tax expense. | ||||||||
Recent Accounting Pronouncements | ' | |||||||
Recent Accounting Pronouncements | ||||||||
In July 2013, the FASB issued a revised accounting standard, which clarifies that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward if such settlement is required or expected in the event the uncertain tax position is disallowed. In situations where a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction or the tax law of the jurisdiction does not require, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. This standard is effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2013. Retrospective application is permitted. The Company adopted this guidance on January 1, 2014. The adoption of this guidance did not have a material impact on the Company’s financial position, results of operations, or cash flows. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Calculation of Basic and Diluted Net Income (Loss) Per Share | ' | |||||||
The following summarizes the calculation of basic and diluted net income (loss) per share: | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
Basic: | ||||||||
Net income (loss) | $ | 66 | $ | (612 | ) | |||
Weighted average common shares, basic | 23,908 | 22,564 | ||||||
Basic net income (loss) per share | $ | 0 | $ | (0.03 | ) | |||
Diluted: | ||||||||
Net income (loss) | $ | 66 | $ | (612 | ) | |||
Weighted average common shares, basic | 23,908 | 22,564 | ||||||
Dilutive effect of: | ||||||||
Options to purchase common stock | 569 | — | ||||||
Nonvested shares of restricted stock | 22 | — | ||||||
Weighted average common shares, diluted | 24,499 | 22,564 | ||||||
Diluted net income (loss) per share | $ | 0 | $ | (0.03 | ) | |||
Anti-Dilutive Equity Instruments Excluded from Diluted Net Income (Loss) Per Share | ' | |||||||
The following equity instruments have been excluded from diluted net income (loss) per common share as they would be anti-dilutive. | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
Common stock options | 92 | 84 | ||||||
Business_Combinations_Tables
Business Combinations (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
CombineNet | ' | |||||||
Schedule of Purchase Price Consideration | ' | |||||||
The purchase consideration consisted of the following: | ||||||||
Cash | $ | 26,634 | ||||||
Fair value of common stock | 17,093 | |||||||
Total purchase consideration | 43,727 | |||||||
Cash acquired | 1,042 | |||||||
Net purchase consideration | $ | 42,685 | ||||||
Schedule of Purchase Price Allocation | ' | |||||||
The allocation of the purchase price as of the acquisition date was as follows: | ||||||||
Estimated | Estimated | |||||||
Useful Life | Fair Value | |||||||
Accounts receivable | $ | 2,679 | ||||||
Prepaid expenses and other current assets | 334 | |||||||
Property and equipment | 464 | |||||||
Deferred project costs | 121 | |||||||
Deferred tax assets | 5,323 | |||||||
Other assets | 30 | |||||||
Covenant not to compete | 2 years | 100 | ||||||
Trademarks | 3 years | 300 | ||||||
Acquired technology | 7 years | 4,100 | ||||||
Customer relationships | 15 years | 13,000 | ||||||
Goodwill | 28,908 | |||||||
Accounts payable | (98 | ) | ||||||
Accrued expenses | (786 | ) | ||||||
Deferred tax liability | (7,350 | ) | ||||||
Deferred revenues | (4,440 | ) | ||||||
Total purchase consideration | $ | 42,685 | ||||||
Schedule of Unaudited Pro Forma Information | ' | |||||||
The following unaudited pro forma information is not intended to be indicative of future operating results. | ||||||||
Three Months | ||||||||
Ended | ||||||||
March 31, | ||||||||
2013 | ||||||||
Pro forma revenue | $ | 24,053 | ||||||
Pro forma net loss | $ | (750 | ) | |||||
Pro forma net loss per share, basic | $ | (0.03 | ) | |||||
Pro forma net loss per share, diluted | $ | (0.03 | ) | |||||
Spend Radar | ' | |||||||
Schedule of Purchase Price Consideration | ' | |||||||
The purchase consideration consisted of the following: | ||||||||
Cash | $ | 8,000 | ||||||
Fair value of common stock | 2,087 | |||||||
Total purchase consideration | 10,087 | |||||||
Cash acquired | 259 | |||||||
Net purchase consideration | $ | 9,828 | ||||||
Schedule of Purchase Price Allocation | ' | |||||||
The allocation of the purchase price as of the acquisition date was as follows: | ||||||||
Estimated | Estimated | |||||||
Useful Life | Fair Value | |||||||
Accounts receivable | $ | 634 | ||||||
Prepaid expenses and other current assets | 100 | |||||||
Property and equipment | 147 | |||||||
Covenant not to compete | 5 years | 203 | ||||||
Trademarks | 5 years | 566 | ||||||
Acquired technology | 7 years | 2,693 | ||||||
Customer relationships | 5 years | 1,338 | ||||||
Goodwill | 5,682 | |||||||
Accrued expenses | (305 | ) | ||||||
Deferred revenues | (1,230 | ) | ||||||
Total purchase consideration | $ | 9,828 | ||||||
Upside Software | ' | |||||||
Schedule of Purchase Price Allocation | ' | |||||||
The allocation of the purchase price as of the acquisition date was as follows: | ||||||||
Estimated | Estimated | |||||||
Useful Life | Fair Value | |||||||
Accounts receivable | $ | 2,096 | ||||||
Prepaid expenses and other current assets | 230 | |||||||
Property and equipment | 478 | |||||||
Covenant not to compete | 5 years | 30 | ||||||
Trademarks | 5 years | 263 | ||||||
Acquired technology | 7 years | 4,064 | ||||||
Customer relationships | 10 years | 3,594 | ||||||
Goodwill | 15,927 | |||||||
Accrued expenses | (530 | ) | ||||||
Deferred revenues | (3,705 | ) | ||||||
Total purchase consideration | $ | 22,447 | ||||||
Cash_Equivalents_and_ShortTerm1
Cash Equivalents and Short-Term Investments (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Cash Equivalents and Short-Term Investments | ' | |||||||||||||||
The components of cash equivalents and short-term investments at March 31, 2014 and December 31, 2013 are as follows: | ||||||||||||||||
March 31, 2014 | December 31, 2013 | |||||||||||||||
Cost | Fair Market | Cost | Fair Market | |||||||||||||
Value | Value | |||||||||||||||
Cash equivalents: | ||||||||||||||||
Money market accounts | $ | 8,354 | $ | 8,354 | $ | 5,349 | $ | 5,349 | ||||||||
Short-term investments: | ||||||||||||||||
Variable rate demand notes | 15,105 | 15,105 | 15,105 | 15,105 | ||||||||||||
Total | $ | 23,459 | $ | 23,459 | $ | 20,454 | $ | 20,454 | ||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Fair Value Measurements | ' | |||||||||||||||
The fair value measurements of the Company’s financial assets at March 31, 2014 are as follows: | ||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||
Cash equivalents | $ | 8,354 | $ | 8,354 | $ | — | $ | — | ||||||||
Short-term investments | 15,105 | 15,105 | — | — | ||||||||||||
Total | $ | 23,459 | $ | 23,459 | $ | — | $ | — | ||||||||
The fair value measurements of the Company’s financial assets at December 31, 2013 are as follows: | ||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||
Cash equivalents | $ | 5,349 | $ | 5,349 | $ | — | $ | — | ||||||||
Short-term investments | 15,105 | 15,105 | — | — | ||||||||||||
Total | $ | 20,454 | $ | 20,454 | $ | — | $ | — | ||||||||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Property and Equipment | ' | |||||||
Property and equipment consist of the following as of March 31, 2014 and December 31, 2013: | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
Furniture and fixtures | $ | 1,281 | $ | 1,284 | ||||
Computer software and equipment | 18,455 | 17,036 | ||||||
Leasehold improvements | 714 | 715 | ||||||
Total costs | 20,450 | 19,035 | ||||||
Less accumulated depreciation and amortization | (10,158 | ) | (9,007 | ) | ||||
Property and equipment, net | $ | 10,292 | $ | 10,028 | ||||
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Carrying Amount of Goodwill | ' | |||||||||||||||
The changes in the carrying amount of goodwill for the three months ended March 31, 2014 were as follows: | ||||||||||||||||
Balance at December 31, 2013 | $ | 65,280 | ||||||||||||||
Foreign currency translation | (548 | ) | ||||||||||||||
Balance at March 31, 2014 | $ | 64,732 | ||||||||||||||
Summary of Intangible Assets | ' | |||||||||||||||
A summary of intangible assets at March 31, 2014 and December 31, 2013 follows: | ||||||||||||||||
March 31, 2014 | ||||||||||||||||
Weighted Average | Gross Carrying | Accumulated | Net Carrying | |||||||||||||
Amortization | Amount | Amortization | Amount | |||||||||||||
Period | ||||||||||||||||
Acquired technology | 7.0 years | $ | 19,749 | $ | (10,471 | ) | $ | 9,278 | ||||||||
Customer relationships | 12.1 years | 26,993 | (9,781 | ) | 17,212 | |||||||||||
Covenant not to compete | 4.2 years | 381 | (133 | ) | 248 | |||||||||||
Acquired trademarks | 4.5 years | 1,104 | (310 | ) | 794 | |||||||||||
Trademarks | indefinite | 430 | — | 430 | ||||||||||||
Total | $ | 48,657 | $ | (20,695 | ) | $ | 27,962 | |||||||||
December 31, 2013 | ||||||||||||||||
Weighted Average | Gross Carrying | Accumulated | Net Carrying | |||||||||||||
Amortization | Amount | Amortization | Amount | |||||||||||||
Period | ||||||||||||||||
Acquired technology | 7.0 years | $ | 19,889 | $ | (10,070 | ) | $ | 9,819 | ||||||||
Customer relationships | 12.1 years | 27,117 | (9,013 | ) | 18,104 | |||||||||||
Covenant not to compete | 4.2 years | 382 | (112 | ) | 270 | |||||||||||
Acquired trademarks | 4.5 years | 1,113 | (246 | ) | 867 | |||||||||||
Trademarks | indefinite | 430 | — | 430 | ||||||||||||
Total | $ | 48,931 | $ | (19,441 | ) | $ | 29,490 | |||||||||
Future Amortization Expense Related to Intangible Assets | ' | |||||||||||||||
The Company estimates the following amortization expense related to its intangible assets for the years ended December 31: | ||||||||||||||||
2014 (remaining nine months) | $ | 3,802 | ||||||||||||||
2015 | 4,633 | |||||||||||||||
2016 | 4,211 | |||||||||||||||
2017 | 3,756 | |||||||||||||||
2018 | 3,147 | |||||||||||||||
Thereafter | 7,983 | |||||||||||||||
$ | 27,532 | |||||||||||||||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||
Schedule of Number of Shares Outstanding and Number of Shares Available for Future Grant | ' | ||||||||||||||||||||
The following table summarizes the number of shares outstanding and the number of shares available for future grant under the stock incentive plan at March 31, 2014: | |||||||||||||||||||||
March 31, 2014 | |||||||||||||||||||||
Number of shares reserved under the 2013 Plan | 3,500 | ||||||||||||||||||||
Number of shares remaining for future grants transferred from Prior Plan | 844 | ||||||||||||||||||||
Number of stock options outstanding under the 2013 Plan | (780 | ) | |||||||||||||||||||
Weighted average exercise price | $ | 25.05 | |||||||||||||||||||
Weighted average term (in years) | 9.8 | ||||||||||||||||||||
Number of restricted stock units issued under the 2013 Plan | (68 | ) | |||||||||||||||||||
Number of shares remaining for future grants | |||||||||||||||||||||
SciQuest, Inc. 2013 Stock Incentive Plan | 3,496 | ||||||||||||||||||||
Schedule of Restricted Stock Unit Activity | ' | ||||||||||||||||||||
The following summarizes the activity of restricted stock units for the three months ended March 31, 2014: | |||||||||||||||||||||
Number of | Weighted- | ||||||||||||||||||||
Shares | Average Grant | ||||||||||||||||||||
Date Fair Value | |||||||||||||||||||||
Nonvested as of December 31, 2013 | 49 | $ | 18.02 | ||||||||||||||||||
Issued | 41 | 25.01 | |||||||||||||||||||
Vested | (9 | ) | 16.3 | ||||||||||||||||||
Nonvested as of March 31, 2014 | 81 | $ | 21.78 | ||||||||||||||||||
Schedule of Stock Option Activity | ' | ||||||||||||||||||||
The Company also issues common stock options. The following summarizes stock option activity for the three months ended March 31, 2014: | |||||||||||||||||||||
Number of Options | Weighted- | Weighted- | Aggregate | ||||||||||||||||||
Average | Average | Intrinsic Value | |||||||||||||||||||
Exercise Price | Remaining | as of | |||||||||||||||||||
Contractual | March 31, | ||||||||||||||||||||
Term (In Years) | 2014 | ||||||||||||||||||||
Balance outstanding as of December 31, 2013 | 1,967 | $ | 15.22 | 8 | $ | 26,168 | |||||||||||||||
Options granted | 431 | 26.05 | |||||||||||||||||||
Options exercised | (40 | ) | 7.56 | ||||||||||||||||||
Options canceled | (24 | ) | 16.35 | ||||||||||||||||||
Balance outstanding as of March 31, 2014 | 2,334 | $ | 17.33 | 8.2 | $ | 22,918 | |||||||||||||||
Vested and expected to vest at March 31, 2014 | 2,054 | $ | 16.82 | 8.1 | $ | 22,132 | |||||||||||||||
Exercisable as of March 31, 2014 | 930 | $ | 11.72 | 6.9 | $ | 14,235 | |||||||||||||||
Schedule of Stock Options Outstanding and Exercisable | ' | ||||||||||||||||||||
The following table summarizes information about stock options outstanding and exercisable at March 31, 2014: | |||||||||||||||||||||
Options Outstanding at March 31, 2014 | Options Exercisable at March 31, 2014 | ||||||||||||||||||||
Range of Exercise Price | Number | Weighted- | Weighted- | Number | Weighted- | ||||||||||||||||
Average | Average | Average | |||||||||||||||||||
Remaining | Exercise Price | Exercise Price | |||||||||||||||||||
Contractual Term | |||||||||||||||||||||
(In Years) | |||||||||||||||||||||
$0.08 –$0.14 | 29 | 1.1 | $ | 0.09 | 29 | $ | 0.09 | ||||||||||||||
$0.14 –$1.90 | 3 | 4.5 | 1.34 | 3 | 1.34 | ||||||||||||||||
$2.04 –$8.18 | 224 | 5.7 | 3.66 | 224 | 3.65 | ||||||||||||||||
$11.45 –$17.41 | 1,194 | 7.8 | 14.87 | 642 | 14.53 | ||||||||||||||||
$17.50 –$27.64 | 709 | 9.5 | 23.76 | 28 | 22.66 | ||||||||||||||||
$27.91 –$29.14 | 175 | 9.9 | 28.71 | 4 | 28.68 | ||||||||||||||||
Total | 2,334 | 8.2 | $ | 17.33 | 930 | $ | 11.72 | ||||||||||||||
Schedule of Assumptions used to Calculate Fair Value of Common Stock Options | ' | ||||||||||||||||||||
The fair value of common stock options for employees and non-employees is estimated on the date of grant using the Black-Scholes option-pricing model with the following assumptions used: | |||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Estimated dividend yield | 0 | % | 0 | % | |||||||||||||||||
Expected stock price volatility | 46.11 - 46.33 | % | 55 | % | |||||||||||||||||
Weighted-average risk-free interest rate | 1.75 - 1.84 | % | 1.1 | % | |||||||||||||||||
Expected life of options (in years) | 6.25 | 6.25 | |||||||||||||||||||
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - (Narrative) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 |
Segment | |||
Accounting Policies [Line Items] | ' | ' | ' |
Realized gains or losses on available-for-sale securities | $0 | $0 | ' |
Unrealized gains or losses | 0 | ' | 0 |
Other than temporary declines in investment value | 0 | ' | 0 |
Allowance for outstanding accounts receivable | 421 | ' | 556 |
Impairment of goodwill | 0 | ' | ' |
Dividend yield | 0.00% | 0.00% | ' |
Foreign translation adjustment | $2,763 | ' | $1,729 |
Number of reporting segments | 1 | ' | ' |
Stock Purchase Plan | ' | ' | ' |
Accounting Policies [Line Items] | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share | ' | 3 | ' |
Stock Options | ' | ' | ' |
Accounting Policies [Line Items] | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share | ' | 335 | ' |
Restricted Stock | ' | ' | ' |
Accounting Policies [Line Items] | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share | ' | 37 | ' |
Furniture | ' | ' | ' |
Accounting Policies [Line Items] | ' | ' | ' |
Estimated useful life | '7 years | ' | ' |
Computer Software and Equipment | Minimum | ' | ' | ' |
Accounting Policies [Line Items] | ' | ' | ' |
Estimated useful life | '3 years | ' | ' |
Computer Software and Equipment | Maximum | ' | ' | ' |
Accounting Policies [Line Items] | ' | ' | ' |
Estimated useful life | '5 years | ' | ' |
Software Development Costs | ' | ' | ' |
Accounting Policies [Line Items] | ' | ' | ' |
Estimated useful life | '3 years | ' | ' |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies - Calculation of Basic and Diluted Net Income (Loss) Per Share (Detail) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Basic: | ' | ' |
Net income (loss) | $66 | ($612) |
Weighted average common shares, basic | 23,908 | 22,564 |
Basic net income (loss) per share | $0 | ($0.03) |
Diluted: | ' | ' |
Net income (loss) | $66 | ($612) |
Weighted average common shares, basic | 23,908 | 22,564 |
Dilutive effect of: | ' | ' |
Options to purchase common stock | 569 | ' |
Nonvested shares of restricted stock | 22 | ' |
Weighted average common shares, diluted | 24,499 | 22,564 |
Diluted net income (loss) per share | $0 | ($0.03) |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies - Anti-Dilutive Equity Instruments Excluded from Diluted Net Income (Loss) Per Share (Detail) (Common stock options) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Common stock options | ' | ' |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share | 92 | 84 |
Business_Combinations_CombineN
Business Combinations - CombineNet - (Narrative) (Detail) (CombineNet, USD $) | 1 Months Ended | 3 Months Ended | |
In Thousands, unless otherwise specified | Aug. 31, 2013 | Mar. 31, 2013 | Aug. 30, 2013 |
Business Acquisition [Line Items] | ' | ' | ' |
Cash | $26,575 | ' | ' |
Fair value of common stock, shares | 820 | ' | ' |
Fair value of common stock | 17,055 | ' | ' |
Cash balance in escrow | ' | ' | 2,465 |
Common stock in escrow | ' | ' | 76 |
Acquisition working capital cash adjustment | 59 | ' | ' |
Acquisition working capital stock adjustment | 1 | ' | ' |
Fair value of acquisition working capital stock adjustment | 38 | ' | ' |
Business acquisition, pro forma amortization of acquired intangible assets | ' | 569 | ' |
Business acquisition, pro forma fair value adjustment for deferred revenue | ' | $16 | ' |
Customer Relationships | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' |
Estimated useful life | '15 years | ' | ' |
Business_Combinations_CombineN1
Business Combinations - CombineNet (Schedule of Purchase Price Consideration) (Detail) (CombineNet, USD $) | 1 Months Ended |
In Thousands, unless otherwise specified | Aug. 31, 2013 |
CombineNet | ' |
Business Acquisition [Line Items] | ' |
Cash | $26,634 |
Fair value of common stock | 17,093 |
Total purchase consideration | 43,727 |
Cash acquired | 1,042 |
Net purchase consideration | $42,685 |
Business_Combinations_CombineN2
Business Combinations - CombineNet (Schedule of Purchase Price Allocation) (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Aug. 31, 2013 | Aug. 30, 2013 | Aug. 31, 2013 | Aug. 30, 2013 | Aug. 31, 2013 | Aug. 30, 2013 | Aug. 31, 2013 | Aug. 30, 2013 | Aug. 31, 2013 | Aug. 30, 2013 |
In Thousands, unless otherwise specified | CombineNet | CombineNet | CombineNet | CombineNet | CombineNet | CombineNet | CombineNet | CombineNet | CombineNet | CombineNet | ||
Covenant Not to Compete | Covenant Not to Compete | Trademarks | Trademarks | Acquired Technology | Acquired Technology | Customer Relationships | Customer Relationships | |||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accounts receivable | ' | ' | ' | $2,679 | ' | ' | ' | ' | ' | ' | ' | ' |
Prepaid expenses and other current assets | ' | ' | ' | 334 | ' | ' | ' | ' | ' | ' | ' | ' |
Property and equipment | ' | ' | ' | 464 | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred project costs | ' | ' | ' | 121 | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred tax assets | ' | ' | ' | 5,323 | ' | ' | ' | ' | ' | ' | ' | ' |
Other assets | ' | ' | ' | 30 | ' | ' | ' | ' | ' | ' | ' | ' |
Amortizable intangible assets | ' | ' | ' | ' | ' | 100 | ' | 300 | ' | 4,100 | ' | 13,000 |
Goodwill | 64,732 | 65,280 | ' | 28,908 | ' | ' | ' | ' | ' | ' | ' | ' |
Accounts payable | ' | ' | ' | -98 | ' | ' | ' | ' | ' | ' | ' | ' |
Accrued expenses | ' | ' | ' | -786 | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred tax liability | ' | ' | ' | -7,350 | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred revenues | ' | ' | ' | -4,440 | ' | ' | ' | ' | ' | ' | ' | ' |
Total purchase consideration | ' | ' | $42,685 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated useful life | ' | ' | ' | ' | '2 years | ' | '3 years | ' | '7 years | ' | '15 years | ' |
Business_Combinations_CombineN3
Business Combinations - CombineNet (Schedule of Pro Forma Operating Results) (Detail) (CombineNet, USD $) | 3 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2013 |
CombineNet | ' |
Business Acquisition [Line Items] | ' |
Pro forma revenue | $24,053 |
Pro forma net loss | ($750) |
Pro forma net loss per share, basic | ($0.03) |
Pro forma net loss per share, diluted | ($0.03) |
Business_Combinations_Spend_Ra
Business Combinations - Spend Radar - (Narrative) (Detail) (Spend Radar, USD $) | 1 Months Ended | 3 Months Ended | |||||
In Thousands, unless otherwise specified | Feb. 28, 2014 | Apr. 30, 2013 | Oct. 31, 2012 | Mar. 31, 2013 | Jan. 31, 2014 | Apr. 29, 2013 | Oct. 01, 2012 |
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Cash | ' | ' | $8,000 | ' | ' | ' | ' |
Fair value of common stock, shares | ' | ' | 113 | ' | ' | ' | ' |
Fair value of common stock | ' | ' | 2,087 | ' | ' | ' | ' |
Cash potentially payable under earn-out arrangement | ' | ' | ' | ' | ' | ' | 6,000 |
Common stock shares potentially issuable under earn-out arrangement | ' | ' | ' | ' | ' | ' | 85 |
Earn-out compensation paid | ' | ' | ' | ' | 3,600 | 2,400 | ' |
Common stock shares issued under earn-out arrangement | 51 | 34 | ' | ' | ' | ' | ' |
Compensation expense recognized related to earn-out arrangement | ' | ' | ' | 1,200 | ' | ' | ' |
Stock-based compensation expense related to earn-out arrangement | ' | ' | ' | $313 | ' | ' | ' |
Customer Relationships | ' | ' | ' | ' | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Estimated useful life | ' | ' | '5 years | ' | ' | ' | ' |
Business_Combinations_Spend_Ra1
Business Combinations - Spend Radar (Schedule of Purchase Price Consideration) (Detail) (Spend Radar, USD $) | 1 Months Ended |
In Thousands, unless otherwise specified | Oct. 31, 2012 |
Spend Radar | ' |
Business Acquisition [Line Items] | ' |
Cash | $8,000 |
Fair value of common stock | 2,087 |
Total purchase consideration | 10,087 |
Cash acquired | 259 |
Net purchase consideration | $9,828 |
Business_Combinations_Spend_Ra2
Business Combinations - Spend Radar (Schedule of Purchase Price Allocation) (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Oct. 31, 2012 | Oct. 01, 2012 | Oct. 31, 2012 | Oct. 01, 2012 | Oct. 31, 2012 | Oct. 01, 2012 | Oct. 31, 2012 | Oct. 01, 2012 | Oct. 31, 2012 | Oct. 01, 2012 |
In Thousands, unless otherwise specified | Spend Radar | Spend Radar | Spend Radar | Spend Radar | Spend Radar | Spend Radar | Spend Radar | Spend Radar | Spend Radar | Spend Radar | ||
Covenant Not to Compete | Covenant Not to Compete | Trademarks | Trademarks | Acquired Technology | Acquired Technology | Customer Relationships | Customer Relationships | |||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accounts receivable | ' | ' | ' | $634 | ' | ' | ' | ' | ' | ' | ' | ' |
Prepaid expenses and other current assets | ' | ' | ' | 100 | ' | ' | ' | ' | ' | ' | ' | ' |
Property and equipment | ' | ' | ' | 147 | ' | ' | ' | ' | ' | ' | ' | ' |
Amortizable intangible assets | ' | ' | ' | ' | ' | 203 | ' | 566 | ' | 2,693 | ' | 1,338 |
Goodwill | 64,732 | 65,280 | ' | 5,682 | ' | ' | ' | ' | ' | ' | ' | ' |
Accrued expenses | ' | ' | ' | -305 | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred revenues | ' | ' | ' | -1,230 | ' | ' | ' | ' | ' | ' | ' | ' |
Total purchase consideration | ' | ' | $9,828 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated useful life | ' | ' | ' | ' | '5 years | ' | '5 years | ' | '7 years | ' | '5 years | ' |
Business_Combinations_Upside_S
Business Combinations - Upside Software - (Narrative) (Detail) (Upside Software, USD $) | 1 Months Ended |
In Thousands, unless otherwise specified | Aug. 31, 2012 |
Business Acquisition [Line Items] | ' |
Cash | $22,447 |
Customer Relationships | ' |
Business Acquisition [Line Items] | ' |
Estimated useful life | '10 years |
Business_Combinations_Upside_S1
Business Combinations - Upside Software (Schedule of Purchase Price Allocation) (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Aug. 31, 2012 | Aug. 01, 2012 | Aug. 31, 2012 | Aug. 01, 2012 | Aug. 31, 2012 | Aug. 01, 2012 | Aug. 31, 2012 | Aug. 01, 2012 | Aug. 31, 2012 | Aug. 01, 2012 |
In Thousands, unless otherwise specified | Upside Software | Upside Software | Upside Software | Upside Software | Upside Software | Upside Software | Upside Software | Upside Software | Upside Software | Upside Software | ||
Covenant Not to Compete | Covenant Not to Compete | Trademarks | Trademarks | Acquired Technology | Acquired Technology | Customer Relationships | Customer Relationships | |||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accounts receivable | ' | ' | ' | $2,096 | ' | ' | ' | ' | ' | ' | ' | ' |
Prepaid expenses and other current assets | ' | ' | ' | 230 | ' | ' | ' | ' | ' | ' | ' | ' |
Property and equipment | ' | ' | ' | 478 | ' | ' | ' | ' | ' | ' | ' | ' |
Amortizable intangible assets | ' | ' | ' | ' | ' | 30 | ' | 263 | ' | 4,064 | ' | 3,594 |
Goodwill | 64,732 | 65,280 | ' | 15,927 | ' | ' | ' | ' | ' | ' | ' | ' |
Accrued expenses | ' | ' | ' | -530 | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred revenues | ' | ' | ' | -3,705 | ' | ' | ' | ' | ' | ' | ' | ' |
Total purchase consideration | ' | ' | $22,447 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated useful life | ' | ' | ' | ' | '5 years | ' | '5 years | ' | '7 years | ' | '10 years | ' |
Business_Combinations_AECsoft_
Business Combinations - AECsoft - (Narrative) (Detail) (Aecsoft, USD $) | 1 Months Ended | 3 Months Ended | ||||
In Thousands, unless otherwise specified | Feb. 28, 2014 | Mar. 31, 2013 | Apr. 30, 2012 | Jan. 31, 2011 | Mar. 31, 2013 | Jan. 02, 2011 |
Aecsoft | ' | ' | ' | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' |
Cash | ' | ' | ' | $9,256 | ' | ' |
Fair value of common stock, shares | ' | ' | ' | 351 | ' | ' |
Common stock shares issued under earn-out arrangement | 81 | 122 | 122 | ' | ' | ' |
Common stock shares potentially issuable under earn-out arrangement | ' | ' | ' | ' | ' | 300 |
Total purchase consideration | ' | ' | ' | 13,795 | ' | ' |
Contingent consideration, common stock shares | ' | ' | ' | ' | ' | 25 |
Contingent consideration, fair value of common stock | ' | ' | ' | ' | ' | 300 |
Fair value of common stock | ' | ' | ' | 4,539 | ' | ' |
Stock-based compensation expense related to earn-out arrangement | ' | ' | ' | ' | $244 | ' |
Cash_Equivalents_and_ShortTerm2
Cash Equivalents and Short-Term Investments - Cash Equivalents and Short-Term Investments (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Cash equivalents: | ' | ' |
Money market accounts, Cost | $8,354 | $5,349 |
Short-term investments: | ' | ' |
Variable rate demand notes, Cost | 15,105 | 15,105 |
Total, Cost | 23,459 | 20,454 |
Cash equivalents: | ' | ' |
Money market accounts, Fair Market Value | 8,354 | 5,349 |
Short-term investments: | ' | ' |
Variable rate demand notes, Fair Market Value | 15,105 | 15,105 |
Total, Fair Market Value | $23,459 | $20,454 |
Cash_Equivalents_and_ShortTerm3
Cash Equivalents and Short-Term Investments - (Narrative) (Detail) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 |
Cash And Cash Equivalents [Line Items] | ' | ' |
Unrealized gains or losses | $0 | $0 |
Fair_Value_Measurements_Narrat
Fair Value Measurements - (Narrative) (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Cash equivalents | $8,354 | $5,349 |
Short-term investments | 15,105 | 15,105 |
Investment maturity date range, start | '2017 | ' |
Investment maturity date range, end | '2042 | ' |
Variable rate demand notes puttable notice period | '7 days | ' |
Financial assets, fair value disclosure | 23,459 | 20,454 |
Level 2 | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Financial assets, fair value disclosure | 0 | 0 |
Financial liabilities, fair value disclosure | 0 | 0 |
Level 3 | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Financial assets, fair value disclosure | 0 | 0 |
Financial liabilities, fair value disclosure | $0 | $0 |
Fair_Value_Measurements_Fair_V
Fair Value Measurements - Fair Value Measurements (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Total assets measured at fair value | $23,459 | $20,454 |
Level 1 | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Total assets measured at fair value | 23,459 | 20,454 |
Level 2 | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Total assets measured at fair value | ' | ' |
Level 3 | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Total assets measured at fair value | ' | ' |
Cash Equivalents | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Total assets measured at fair value | 8,354 | 5,349 |
Cash Equivalents | Level 1 | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Total assets measured at fair value | 8,354 | 5,349 |
Cash Equivalents | Level 2 | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Total assets measured at fair value | ' | ' |
Cash Equivalents | Level 3 | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Total assets measured at fair value | ' | ' |
Short-term Investments | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Total assets measured at fair value | 15,105 | 15,105 |
Short-term Investments | Level 1 | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Total assets measured at fair value | 15,105 | 15,105 |
Short-term Investments | Level 2 | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Total assets measured at fair value | ' | ' |
Short-term Investments | Level 3 | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Total assets measured at fair value | ' | ' |
Property_and_Equipment_Propert
Property and Equipment - Property and Equipment (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property Plant And Equipment [Line Items] | ' | ' |
Total costs | $20,450 | $19,035 |
Less accumulated depreciation and amortization | -10,158 | -9,007 |
Property and equipment, net | 10,292 | 10,028 |
Furniture and Fixtures | ' | ' |
Property Plant And Equipment [Line Items] | ' | ' |
Total costs | 1,281 | 1,284 |
Computer Software and Equipment | ' | ' |
Property Plant And Equipment [Line Items] | ' | ' |
Total costs | 18,455 | 17,036 |
Leasehold Improvements | ' | ' |
Property Plant And Equipment [Line Items] | ' | ' |
Total costs | $714 | $715 |
Property_and_Equipment_Narrati
Property and Equipment - (Narrative) (Detail) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 |
Property Plant And Equipment [Abstract] | ' | ' | ' |
Property and equipment, depreciation | $610 | $474 | ' |
Capitalized software development costs | 1,271 | 1,079 | ' |
Net capitalized software development costs | 6,066 | ' | 5,349 |
Amortization expense related to capitalized software development costs | $558 | $367 | ' |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets - Carrying Amount of Goodwill (Detail) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 |
Carrying amount of goodwill | ' |
Goodwill, beginning balance | $65,280 |
Foreign currency translation | -548 |
Goodwill, ending balance | $64,732 |
Goodwill_and_Other_Intangible_3
Goodwill and Other Intangible Assets - Summary of Intangible Assets (Detail) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 |
Indefinite And Finite Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | $48,657 | $48,931 |
Finite Lived Intangible Accumulated Amortization | -20,695 | -19,441 |
Net Carrying Amount | 27,962 | 29,490 |
Trademarks | ' | ' |
Indefinite And Finite Lived Intangible Assets [Line Items] | ' | ' |
Indefinite Intangible Assets | 430 | 430 |
Acquired Technology | ' | ' |
Indefinite And Finite Lived Intangible Assets [Line Items] | ' | ' |
Weighted Average Amortization Period | '7 years | '7 years |
Finite Lived Intangible Gross Carrying Amount | 19,749 | 19,889 |
Finite Lived Intangible Accumulated Amortization | -10,471 | -10,070 |
Net Carrying Amount | 9,278 | 9,819 |
Customer Relationships | ' | ' |
Indefinite And Finite Lived Intangible Assets [Line Items] | ' | ' |
Weighted Average Amortization Period | '12 years 1 month 6 days | '12 years 1 month 6 days |
Finite Lived Intangible Gross Carrying Amount | 26,993 | 27,117 |
Finite Lived Intangible Accumulated Amortization | -9,781 | -9,013 |
Net Carrying Amount | 17,212 | 18,104 |
Covenant Not to Compete | ' | ' |
Indefinite And Finite Lived Intangible Assets [Line Items] | ' | ' |
Weighted Average Amortization Period | '4 years 2 months 12 days | '4 years 2 months 12 days |
Finite Lived Intangible Gross Carrying Amount | 381 | 382 |
Finite Lived Intangible Accumulated Amortization | -133 | -112 |
Net Carrying Amount | 248 | 270 |
Acquired Trademarks | ' | ' |
Indefinite And Finite Lived Intangible Assets [Line Items] | ' | ' |
Weighted Average Amortization Period | '4 years 6 months | '4 years 6 months |
Finite Lived Intangible Gross Carrying Amount | 1,104 | 1,113 |
Finite Lived Intangible Accumulated Amortization | -310 | -246 |
Net Carrying Amount | $794 | $867 |
Goodwill_and_Other_Intangible_4
Goodwill and Other Intangible Assets - (Narrative) (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Goodwill [Line Items] | ' | ' |
Amortization of intangible assets | $1,317 | $779 |
Amortization of intangible assets recorded in cost of revenues | $520 | $325 |
Goodwill_and_Other_Intangible_5
Goodwill and Other Intangible Assets - Future Amortization Expense Related to Intangible Assets (Detail) (USD $) | Mar. 31, 2014 |
In Thousands, unless otherwise specified | |
Finite Lived Intangible Assets Future Amortization Expense [Abstract] | ' |
2014 (remaining nine months) | $3,802 |
2015 | 4,633 |
2016 | 4,211 |
2017 | 3,756 |
2018 | 3,147 |
Thereafter | 7,983 |
Total | $27,532 |
Debt_Narrative_Detail
Debt - (Narrative) (Detail) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 | Nov. 02, 2012 |
Revolving Credit Facility | ' | ' | ' |
Line Of Credit Facility [Line Items] | ' | ' | ' |
Maximum available borrowing capacity | ' | ' | $30,000 |
Unused fee | 0.10% | ' | ' |
Percentage of stock pledged of foreign subsidiary | 66.00% | ' | ' |
Revolving credit facility, balance outstanding | 0 | 0 | ' |
Revolving credit facility initiation date | 2-Nov-12 | ' | ' |
Revolving credit facility maturity date | 2-Nov-15 | ' | ' |
Securities Secured Revolving Credit Facility | ' | ' | ' |
Line Of Credit Facility [Line Items] | ' | ' | ' |
Maximum available borrowing capacity | ' | ' | 20,000 |
Interest rate | 'BBA LIBOR Daily Floating Rate plus 0.75% | ' | ' |
Debt instrument, basis spread on variable rate | 0.75% | ' | ' |
Receivables Secured Revolving Credit Facility | ' | ' | ' |
Line Of Credit Facility [Line Items] | ' | ' | ' |
Maximum available borrowing capacity | ' | ' | $10,000 |
Interest rate | 'BBA LIBOR Daily Floating Rate plus 1.50%, | ' | ' |
Debt instrument, basis spread on variable rate | 1.50% | ' | ' |
Stockholders_Equity_Preferred_
Stockholders' Equity - Preferred Stock (Narrative) (Detail) (USD $) | Mar. 31, 2014 | Mar. 31, 2013 |
In Thousands, except Per Share data, unless otherwise specified | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' |
Preferred stock, shares authorized | 5,000 | ' |
Preferred stock, par value | $0.00 | ' |
Preferred stock shares outstanding | 0 | 0 |
Preferred stock shares issued | 0 | 0 |
Series A Redeemable Preferred Stock | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' |
Preferred stock, shares authorized | 222 | ' |
Preferred Stock | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' |
Preferred stock, shares authorized | 4,778 | ' |
Stockholders_Equity_Stock_Ince
Stockholders' Equity - Stock Incentive Plan (Narrative) (Detail) | 3 Months Ended |
Mar. 31, 2014 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' |
Stock incentive plan, shares authorized for grant | 3,500,000 |
Restricted stock awards, rate against shares available for issuance | 1.65 |
Shares available for issuance | 3,496,000 |
Common stock options | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' |
Vesting period | '4 years |
Contractual term of options | '10 years |
Stockholders_Equity_Stock_Ince1
Stockholders' Equity - Stock Incentive Plan (Schedule of Shares Outstanding and Available for Grant Under Plan) (Detail) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' |
Stock incentive plan, shares authorized for grant | 3,500 | ' |
Number of stock options outstanding under the 2013 Plan | -2,334 | -1,967 |
Weighted average exercise price | $17.33 | $15.22 |
Weighted average term (in years) | '8 years 2 months 12 days | '8 years |
Number of shares remaining for future grants | ' | ' |
Shares available for issuance | 3,496 | ' |
Stock Incentive Plans | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' |
Stock incentive plan, shares authorized for grant | 3,500 | ' |
Number of shares remaining for future grants transferred from Prior Plan | 844 | ' |
Number of stock options outstanding under the 2013 Plan | -780 | ' |
Weighted average exercise price | $25.05 | ' |
Weighted average term (in years) | '9 years 9 months 18 days | ' |
Number of restricted stock units issued under the 2013 Plan | -68 | ' |
Number of shares remaining for future grants | ' | ' |
Shares available for issuance | 3,496 | ' |
Stockholders_Equity_Restricted
Stockholders' Equity - Restricted Stock (Narrative) (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Restricted Stock Units (RSUs) | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' |
Unrecognized compensation cost | $1,436 | ' |
Weighted average period over which unrecognized compensation cost is expected to be recognized | '3 years 6 months | ' |
Stock-based compensation expense | 144 | 128 |
Restricted Stock | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' |
Stock-based compensation expense | ' | $11 |
Stockholders_Equity_Schedule_o
Stockholders' Equity - Schedule of Restricted Stock Unit Activity (Detail) (Restricted Stock Units (RSUs), USD $) | 3 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 |
Restricted Stock Units (RSUs) | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' |
Nonvested, Number of Shares, Beginning balance | 49 |
Issued, Number of Shares | 41 |
Vested, Number of Shares | -9 |
Nonvested, Number of Shares, Ending balance | 81 |
Nonvested, Weighted-Average Grant Date Fair Value, Beginning balance | $18.02 |
Issued, Weighted-Average Grant Date Fair Value | $25.01 |
Vested, Weighted-Average Grant Date Fair Value | $16.30 |
Nonvested, Weighted-Average Grant Date Fair Value, Ending balance | $21.78 |
Stockholders_Equity_Schedule_o1
Stockholders' Equity - Schedule of Stock Option Activity (Detail) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ' | ' |
Number of Options Outstanding, Beginning | 1,967 | ' |
Options granted | 431 | ' |
Options exercised | -40 | ' |
Options canceled | -24 | ' |
Number of Options Outstanding, Ending | 2,334 | 1,967 |
Number of Options Outstanding, Vested and expected to vest | 2,054 | ' |
Number of Options Outstanding, Exercisable | 930 | ' |
Weighted-Average Exercise Price, Beginning | $15.22 | ' |
Weighted-Average Exercise Price, Options granted | $26.05 | ' |
Weighted-Average Exercise Price, Options exercised | $7.56 | ' |
Weighted-Average Exercise Price, Options canceled | $16.35 | ' |
Weighted-Average Exercise Price, Ending | $17.33 | $15.22 |
Weighted-Average Exercise Price, Vested and expected to vest | $16.82 | ' |
Weighted-Average Exercise Price, Exercisable | $11.72 | ' |
Weighted-Average Remaining Contractual Term (In Years) | '8 years 2 months 12 days | '8 years |
Weighted-Average Remaining Contractual Term (In Years), Vested and expected to vest | '8 years 1 month 6 days | ' |
Weighted-Average Remaining Contractual Term (In Years), Exercisable | '6 years 10 months 24 days | ' |
Aggregate Intrinsic Value | $22,918 | $26,168 |
Aggregate Intrinsic Value, Vested and expected to vest | 22,132 | ' |
Aggregate Intrinsic Value, Exercisable | $14,235 | ' |
Stockholders_Equity_Stock_Opti
Stockholders' Equity - Stock Options (Narrative) (Detail) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Aecsoft | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' |
Stock-based compensation expense related to earn-out arrangement | ' | $244 |
Spend Radar | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' |
Stock-based compensation expense related to earn-out arrangement | ' | 313 |
Common stock options | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' |
Aggregate intrinsic value of options exercised | 831 | 1,098 |
Unrecognized compensation cost | 14,373 | ' |
Weighted average period over which unrecognized compensation cost is expected to be recognized | '3 years 1 month 6 days | ' |
Stock-based compensation expense | 1,238 | 789 |
Weighted average grant date fair value per share for stock options granted | $12.20 | $8.62 |
Aggregate fair value of stock options vested | $971 | $796 |
Stockholders_Equity_Schedule_o2
Stockholders' Equity - Schedule of Stock Options Outstanding and Exercisable (Detail) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | ' | ' |
Options Outstanding, Number | 2,334 | ' |
Weighted-Average Remaining Contractual Term (In Years) | '8 years 2 months 12 days | '8 years |
Options Outstanding, Weighted-Average Exercise Price | $17.33 | ' |
Options Exercisable, Number | 930 | ' |
Options Exercisable, Weighted-Average Exercise Price | $11.72 | ' |
$0.08 - $0.14 | ' | ' |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | ' | ' |
Exercise Price Range Lower Limit | $0.08 | ' |
Exercise Price Range Upper Limit | $0.14 | ' |
Options Outstanding, Number | 29 | ' |
Weighted-Average Remaining Contractual Term (In Years) | '1 year 1 month 6 days | ' |
Options Outstanding, Weighted-Average Exercise Price | $0.09 | ' |
Options Exercisable, Number | 29 | ' |
Options Exercisable, Weighted-Average Exercise Price | $0.09 | ' |
$0.14 - $1.90 | ' | ' |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | ' | ' |
Exercise Price Range Lower Limit | $0.14 | ' |
Exercise Price Range Upper Limit | $1.90 | ' |
Options Outstanding, Number | 3 | ' |
Weighted-Average Remaining Contractual Term (In Years) | '4 years 6 months | ' |
Options Outstanding, Weighted-Average Exercise Price | $1.34 | ' |
Options Exercisable, Number | 3 | ' |
Options Exercisable, Weighted-Average Exercise Price | $1.34 | ' |
$2.04 - $8.18 | ' | ' |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | ' | ' |
Exercise Price Range Lower Limit | $2.04 | ' |
Exercise Price Range Upper Limit | $8.18 | ' |
Options Outstanding, Number | 224 | ' |
Weighted-Average Remaining Contractual Term (In Years) | '5 years 8 months 12 days | ' |
Options Outstanding, Weighted-Average Exercise Price | $3.66 | ' |
Options Exercisable, Number | 224 | ' |
Options Exercisable, Weighted-Average Exercise Price | $3.65 | ' |
$11.45 - $17.41 | ' | ' |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | ' | ' |
Exercise Price Range Lower Limit | $11.45 | ' |
Exercise Price Range Upper Limit | $17.41 | ' |
Options Outstanding, Number | 1,194 | ' |
Weighted-Average Remaining Contractual Term (In Years) | '7 years 9 months 18 days | ' |
Options Outstanding, Weighted-Average Exercise Price | $14.87 | ' |
Options Exercisable, Number | 642 | ' |
Options Exercisable, Weighted-Average Exercise Price | $14.53 | ' |
$17.50 - $27.64 | ' | ' |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | ' | ' |
Exercise Price Range Lower Limit | $17.50 | ' |
Exercise Price Range Upper Limit | $27.64 | ' |
Options Outstanding, Number | 709 | ' |
Weighted-Average Remaining Contractual Term (In Years) | '9 years 6 months | ' |
Options Outstanding, Weighted-Average Exercise Price | $23.76 | ' |
Options Exercisable, Number | 28 | ' |
Options Exercisable, Weighted-Average Exercise Price | $22.66 | ' |
$27.91 - $29.14 | ' | ' |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | ' | ' |
Exercise Price Range Lower Limit | $27.91 | ' |
Exercise Price Range Upper Limit | $29.14 | ' |
Options Outstanding, Number | 175 | ' |
Weighted-Average Remaining Contractual Term (In Years) | '9 years 10 months 24 days | ' |
Options Outstanding, Weighted-Average Exercise Price | $28.71 | ' |
Options Exercisable, Number | 4 | ' |
Options Exercisable, Weighted-Average Exercise Price | $28.68 | ' |
Stockholders_Equity_Schedule_o3
Stockholders' Equity - Schedule of Assumptions used to Calculate Fair Value of Common Stock Options (Detail) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Schedule of assumptions used to calculate fair value | ' | ' |
Dividend yield | 0.00% | 0.00% |
Expected stock price volatility, minimum | 46.11% | ' |
Expected stock price volatility, maximum | 46.33% | ' |
Expected stock price volatility | ' | 55.00% |
Weighted-average risk-free interest rate, minimum | 1.75% | ' |
Weighted-average risk-free interest rate, maximum | 1.84% | ' |
Weighted-average risk-free interest rate | ' | 1.10% |
Expected life of options (in years) | '6 years 3 months | '6 years 3 months |
Stockholders_Equity_Employee_S
Stockholders' Equity - Employee Stock Purchase Plan (Narrative) (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' |
Shares available for issuance | 3,496 | ' |
Employee Stock | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' |
Stock-based compensation expense | $81 | $77 |
Employee stock purchase plan, maximum contribution rate | 10.00% | 10.00% |
Employee stock purchase plan, percentage of per share purchase price, lesser of fair market value on offering date or purchase date | 'Lesser of 85% | 'Lesser of 85% |
Shares available for issuance | 943 | ' |
Employee stock purchase plan, maximum annual contribution | 25 | 25 |
Income_Taxes_Narrative_Detail
Income Taxes - (Narrative) (Detail) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Income Tax Disclosure [Abstract] | ' | ' |
Effective tax rate | -210.00% | -53.50% |
Federal statutory rate | 34.00% | 34.00% |
Subsequent_Events_Narrative_De
Subsequent Events - (Narrative) (Detail) (Subsequent Event, USD $) | 1 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Apr. 01, 2014 |
Subsequent Event | ' |
Subsequent Event [Line Items] | ' |
Public offering, shares sold | 3,000 |
Offering price, per share | $26.75 |
Public offering, over-allotment shares sold | 450 |
Net proceeds | $87,433 |