Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 28, 2019 | |
Document and Entity Information [Abstract] | ||
Title of 12(b) Security | Common stock, $0.001 par value per share | |
Entity Incorporation, State or Country Code | DE | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Registrant Name | QUALYS, INC. | |
Entity Address, Address Line One | 919 E. Hillsdale Boulevard, 4th Floor | |
City Area Code | 650 | |
Local Phone Number | 801-6100 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Entity Central Index Key | 0001107843 | |
Document Type | 10-Q | |
Entity File Number | 001-35662 | |
Document Period End Date | Sep. 30, 2019 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 38,762,280 | |
Entity Tax Identification Number | 77-0534145 | |
Trading Symbol | QLYS | |
Security Exchange Name | NASDAQ | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Address, City or Town | Foster City | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94404 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 75,615,000 | $ 41,026,000 |
Short-term marketable securities | 222,421,000 | 248,140,000 |
Accounts receivable, net of allowance of $558 and $683 as of September 30, 2019 and December 31, 2018, respectively | 61,314,000 | 75,825,000 |
Prepaid expenses and other current assets | 20,459,000 | 13,974,000 |
Total current assets | 379,809,000 | 378,965,000 |
Long-term marketable securities | 100,951,000 | 76,710,000 |
Property and equipment, net | 58,705,000 | 61,442,000 |
Operating Lease, Right-of-Use Asset | 27,043,000 | |
Deferred tax assets, net | 18,302,000 | 26,387,000 |
Intangible assets, net | 18,316,000 | 21,976,000 |
Goodwill | 7,447,000 | 7,225,000 |
Restricted cash | 1,200,000 | 1,200,000 |
Other noncurrent assets | 14,151,000 | 11,775,000 |
Total assets | 625,924,000 | 585,680,000 |
Current liabilities: | ||
Accounts payable | 909,000 | 5,588,000 |
Accrued liabilities | 25,595,000 | 26,695,000 |
Deferred revenues, current | 180,304,000 | 164,624,000 |
Finance Lease, Liability, Current | 6,937,000 | 0 |
Operating Lease, Liability, Noncurrent | 30,696,000 | |
Total current liabilities | 213,745,000 | 196,907,000 |
Deferred revenues, noncurrent | 20,156,000 | 20,423,000 |
Other noncurrent liabilities | 304,000 | 10,361,000 |
Total liabilities | 264,901,000 | 227,691,000 |
Commitments and contingencies (Note 8) | ||
Stockholders’ equity: | ||
Preferred stock, $0.001 par value; 20,000,000 shares authorized, no shares issued and outstanding at September 30, 2019 and December 31, 2018 | 0 | 0 |
Common stock, $0.001 par value; 1,000,000,000 shares authorized; 38,750,803 and 39,015,034 shares issued and outstanding at September 30, 2019 and December 31, 2018, respectively | 39,000 | 39,000 |
Additional paid-in capital | 345,378,000 | 330,572,000 |
Accumulated other comprehensive income (loss) | 2,271,000 | (586,000) |
Retained earnings | 13,335,000 | 27,964,000 |
Total stockholders’ equity | 361,023,000 | 357,989,000 |
Total liabilities and stockholders’ equity | $ 625,924,000 | $ 585,680,000 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit |
Beginning balance at Dec. 31, 2017 | $ 343,544 | $ 39 | $ 304,155 | $ (574) | $ 39,924 |
Balance (in shares) at Dec. 31, 2017 | 38,598,117 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 9,142 | 9,142 | |||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (391) | (391) | |||
Issuance of common stock upon exercise of stock options | 7,933 | 7,933 | |||
Issuance of common stock upon exercise of stock options (shares) | 285,997 | ||||
Stock Repurchased During Period, Shares | (21,288) | ||||
Treasury Stock, Value, Acquired, Cost Method | (1,481) | (255) | (1,226) | ||
Adjustment To Additional Paid In Capital, Share-Based Compensation, Taxes Related To Net Share Settlements Of Equity Awards | (63,695) | ||||
Issuance of common stock upon vesting of restricted stock units (in shares) | 158,561 | ||||
Taxes from release of the restricted share units | (4,030) | (4,030) | |||
Stock-based compensation | 8,891 | 8,891 | |||
Ending balance at Mar. 31, 2018 | 366,319 | $ 39 | 316,694 | (965) | 50,551 |
Balance (in shares) at Mar. 31, 2018 | 38,957,692 | ||||
Beginning balance at Dec. 31, 2017 | 343,544 | $ 39 | 304,155 | (574) | 39,924 |
Balance (in shares) at Dec. 31, 2017 | 38,598,117 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 42,904 | ||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (178) | ||||
Change in unrealized loss on investments | 0 | ||||
Ending balance at Sep. 30, 2018 | 374,140 | $ 39 | 329,045 | (752) | 45,808 |
Balance (in shares) at Sep. 30, 2018 | 39,341,489 | ||||
Beginning balance at Mar. 31, 2018 | 366,319 | $ 39 | 316,694 | (965) | 50,551 |
Balance (in shares) at Mar. 31, 2018 | 38,957,692 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 10,293 | 10,293 | |||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 144 | 144 | |||
Issuance of common stock upon exercise of stock options | 4,239 | 4,239 | |||
Issuance of common stock upon exercise of stock options (shares) | 144,851 | ||||
Stock Repurchased During Period, Shares | (235,539) | ||||
Treasury Stock, Value, Acquired, Cost Method | (17,875) | (2,826) | (15,049) | ||
Adjustment To Additional Paid In Capital, Share-Based Compensation, Taxes Related To Net Share Settlements Of Equity Awards | (65,214) | ||||
Issuance of common stock upon vesting of restricted stock units (in shares) | 184,008 | ||||
Taxes from release of the restricted share units | (4,904) | (4,904) | |||
Stock-based compensation | 7,023 | 7,023 | |||
Ending balance at Jun. 30, 2018 | 365,239 | $ 39 | 320,226 | (821) | 45,795 |
Balance (in shares) at Jun. 30, 2018 | 38,985,798 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 23,469 | 23,469 | |||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 69 | 69 | |||
Change in unrealized loss on investments | 0 | ||||
Issuance of common stock upon exercise of stock options | 8,721 | 8,721 | |||
Issuance of common stock upon exercise of stock options (shares) | 611,431 | ||||
Stock Repurchased During Period, Shares | (310,815) | ||||
Treasury Stock, Value, Acquired, Cost Method | (27,185) | (3,729) | (23,456) | ||
Adjustment To Additional Paid In Capital, Share-Based Compensation, Taxes Related To Net Share Settlements Of Equity Awards | (35,881) | ||||
Issuance of common stock upon vesting of restricted stock units (in shares) | 90,956 | ||||
Taxes from release of the restricted share units | (3,075) | (3,075) | |||
Stock-based compensation | 6,902 | 6,902 | |||
Ending balance at Sep. 30, 2018 | 374,140 | $ 39 | 329,045 | (752) | 45,808 |
Balance (in shares) at Sep. 30, 2018 | 39,341,489 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Retained Earnings (Accumulated Deficit) | 27,964 | ||||
Beginning balance at Dec. 31, 2018 | 357,989 | $ 39 | 330,572 | (586) | 27,964 |
Balance (in shares) at Dec. 31, 2018 | 39,015,034 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 13,266 | 13,266 | |||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 896 | 896 | |||
Issuance of common stock upon exercise of stock options | 4,047 | 4,047 | |||
Issuance of common stock upon exercise of stock options (shares) | 152,164 | ||||
Stock Repurchased During Period, Shares | (94,090) | ||||
Treasury Stock, Value, Acquired, Cost Method | (7,871) | (1,129) | (6,742) | ||
Adjustment To Additional Paid In Capital, Share-Based Compensation, Taxes Related To Net Share Settlements Of Equity Awards | (38,877) | ||||
Issuance of common stock upon vesting of restricted stock units (in shares) | 99,601 | ||||
Taxes from release of the restricted share units | (3,367) | (3,367) | |||
Stock-based compensation | 8,443 | 8,443 | |||
Ending balance at Mar. 31, 2019 | 373,403 | $ 39 | 338,566 | 310 | 34,488 |
Balance (in shares) at Mar. 31, 2019 | 39,133,832 | ||||
Beginning balance at Dec. 31, 2018 | 357,989 | $ 39 | 330,572 | (586) | 27,964 |
Balance (in shares) at Dec. 31, 2018 | 39,015,034 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 48,672 | ||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 2,857 | ||||
Change in unrealized loss on investments | $ 1,413 | ||||
Issuance of common stock upon exercise of stock options (shares) | 412,910 | ||||
Ending balance at Sep. 30, 2019 | $ 361,023 | $ 39 | 345,378 | 2,271 | 13,335 |
Balance (in shares) at Sep. 30, 2019 | 38,750,803 | ||||
Beginning balance at Mar. 31, 2019 | 373,403 | $ 39 | 338,566 | 310 | 34,488 |
Balance (in shares) at Mar. 31, 2019 | 39,133,832 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 16,232 | 16,232 | |||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 930 | 930 | |||
Issuance of common stock upon exercise of stock options | 4,944 | 4,944 | |||
Issuance of common stock upon exercise of stock options (shares) | 192,687 | ||||
Stock Repurchased During Period, Shares | (183,948) | ||||
Treasury Stock, Value, Acquired, Cost Method | (16,245) | (2,207) | (14,038) | ||
Adjustment To Additional Paid In Capital, Share-Based Compensation, Taxes Related To Net Share Settlements Of Equity Awards | (45,250) | ||||
Issuance of common stock upon vesting of restricted stock units (in shares) | 126,754 | ||||
Taxes from release of the restricted share units | (4,044) | (4,044) | |||
Stock-based compensation | 8,378 | 8,378 | |||
Ending balance at Jun. 30, 2019 | 383,598 | $ 39 | 345,637 | 1,240 | 36,682 |
Balance (in shares) at Jun. 30, 2019 | 39,224,075 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 19,174 | 19,174 | |||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 1,031 | 1,031 | |||
Change in unrealized loss on investments | 1,009 | ||||
Issuance of common stock upon exercise of stock options | 2,023 | 2,023 | |||
Issuance of common stock upon exercise of stock options (shares) | 68,059 | ||||
Stock Repurchased During Period, Shares | (603,417) | ||||
Treasury Stock, Value, Acquired, Cost Method | (49,761) | (7,240) | (42,521) | ||
Adjustment To Additional Paid In Capital, Share-Based Compensation, Taxes Related To Net Share Settlements Of Equity Awards | (41,120) | ||||
Issuance of common stock upon vesting of restricted stock units (in shares) | 103,206 | ||||
Taxes from release of the restricted share units | (3,453) | (3,453) | |||
Stock-based compensation | 8,411 | 8,411 | |||
Ending balance at Sep. 30, 2019 | 361,023 | $ 39 | $ 345,378 | $ 2,271 | $ 13,335 |
Balance (in shares) at Sep. 30, 2019 | 38,750,803 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Retained Earnings (Accumulated Deficit) | $ 13,335 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable | $ 558 | $ 683 |
Preferred stock, par or stated value per share (USD per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 20,000,000 | 20,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par or stated value per share (USD per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 38,750,803 | 39,015,034 |
Common stock, shares outstanding | 38,750,803 | 39,015,034 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenues | ||||
Revenues | $ 82,671 | $ 71,658 | $ 236,943 | $ 204,689 |
Cost of revenues | 17,108 | 16,511 | 52,354 | 48,660 |
Gross profit | 65,563 | 55,147 | 184,589 | 156,029 |
Operating expenses: | ||||
Research and development | 16,899 | 12,501 | 50,431 | 38,182 |
Sales and marketing | 17,009 | 15,489 | 51,489 | 50,698 |
General and administrative | 9,106 | 9,040 | 29,961 | 29,731 |
Total operating expenses | 43,014 | 37,030 | 131,881 | 118,611 |
Income from operations | 22,549 | 18,117 | 52,708 | 37,418 |
Other income (expense), net: | ||||
Interest expense | (28) | (35) | (98) | (112) |
Interest income | 2,142 | 1,651 | 6,391 | 4,193 |
Other income (expense), net | (328) | (500) | (320) | (836) |
Total other income, net | 1,786 | 1,116 | 5,973 | 3,245 |
Income before income taxes | 24,335 | 19,233 | 58,681 | 40,663 |
Provision (benefit) for income taxes | 5,161 | (4,236) | 10,009 | (2,241) |
Net income | $ 19,174 | $ 23,469 | $ 48,672 | $ 42,904 |
Net income per share: | ||||
Basic (USD per share) | $ 0.49 | $ 0.60 | $ 1.24 | $ 1.10 |
Diluted (USD per share) | $ 0.47 | $ 0.56 | $ 1.17 | $ 1.02 |
Weighted average shares used in computing net income per share: | ||||
Basic (shares) | 39,014 | 39,170 | 39,099 | 38,907 |
Diluted (shares) | 41,162 | 42,197 | 41,447 | 42,113 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Net income | $ 19,174 | $ 23,469 | $ 48,672 | $ 42,904 |
Available-for-sale marketable securities: | ||||
Other Comprehensive Income (Loss), Securities, Available-for-sale, Adjustment, before Reclassification Adjustments, after Tax | 40 | (85) | 1,419 | (427) |
Reclassification adjustment for net realized gain (loss) included in net income | (18) | 154 | 25 | 249 |
Change in net unrealized gain (loss) on marketable securities, net of tax | 22 | 69 | 1,444 | (178) |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, after Tax | 27 | 0 | (10) | 0 |
Total change in unrealized gain (loss) on cash flow hedges, net of tax | 1,009 | 0 | 1,413 | 0 |
Other comprehensive income (loss), net of tax | 1,031 | 69 | 2,857 | (178) |
Comprehensive income | 20,205 | 23,538 | 51,529 | 42,726 |
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | ||||
Available-for-sale marketable securities: | ||||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification, after Tax | $ 982 | $ 0 | $ 1,423 | $ 0 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 48,672 | $ 42,904 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization expense | 23,486 | 21,224 |
Provision for Doubtful Accounts | 156 | 0 |
Loss on disposal of property and equipment | 196 | 31 |
Stock-based compensation | 25,163 | 22,672 |
Amortization of premiums and (accretion) of discounts on marketable securities | (1,402) | (586) |
Deferred income taxes | 7,296 | (4,024) |
Changes in operating assets and liabilities: | ||
Accounts receivable | 14,355 | 5,800 |
Prepaid expenses and other assets | (6,485) | (5,733) |
Accounts payable | (1,336) | 182 |
Accrued liabilities | 1,275 | 5,803 |
Deferred revenues | 15,413 | 12,351 |
Other non-current liabilities | 160 | (1,804) |
Net cash provided by operating activities | 126,949 | 98,820 |
Cash flows from investing activities: | ||
Purchases of marketable securities | (259,286) | (242,056) |
Sales and maturities of marketable securities | 263,874 | 218,865 |
Purchases of property and equipment | (19,473) | (19,496) |
Business combinations | (1,850) | (3,359) |
Payments to Acquire Investments | (625) | (2,500) |
Net cash used in investing activities | (17,360) | (48,546) |
Cash flows from financing activities: | ||
Proceeds from exercise of stock options | 11,014 | 20,896 |
Payments for taxes related to net share settlement of equity awards | (10,864) | (12,010) |
Principal payments under finance lease obligations | (1,273) | (1,203) |
Repurchase of common stock | (73,877) | (46,542) |
Net cash used in financing activities | (75,000) | (38,859) |
Effect of Exchange Rate on Cash and Cash Equivalents, Continuing Operations | 0 | (42) |
Net increase in cash, cash equivalents and restricted cash | 34,589 | 11,373 |
Cash, cash equivalents and restricted cash at beginning of period | 42,226 | 87,791 |
Cash, cash equivalents and restricted cash at end of period | $ 76,815 | $ 99,164 |
The Company and Summary of Sign
The Company and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
The Company and Summary of Significant Accounting Policies | The Company and Summary of Significant Accounting Policies Description of Business Qualys, Inc. (the “Company”, "we", "us", "our") was incorporated in the state of Delaware on December 30, 1999. The Company is headquartered in Foster City, California and has wholly-owned subsidiaries throughout the world. The Company is a pioneer and leading provider of cloud-based security and compliance solutions that enable organizations to identify security risks to their IT infrastructures, help protect their IT systems and applications from ever-evolving cyber-attacks and achieve compliance with internal policies and external regulations. The Company’s cloud solutions address the growing security and compliance complexities and risks that are amplified by the dissolving boundaries between internal and external IT infrastructures and web environments, the rapid adoption of cloud computing and the proliferation of geographically dispersed IT assets. Organizations can use the Company’s integrated suite of solutions delivered on its Qualys cloud platform to cost-effectively obtain a unified view of their security and compliance posture across globally-distributed IT infrastructures. Basis of Presentation The accompanying unaudited condensed consolidated financial statements and condensed footnotes have been prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") for interim financial information as well as the instructions to Form 10-Q and the rules and regulations of the U.S. Securities and Exchange Commission ("SEC"). Certain information and disclosures normally included in the financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. The condensed consolidated balance sheet as of December 31, 2018 , included herein, was derived from the audited financial statements as of that date but does not include all disclosures, including notes required by U.S. GAAP. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, which include only normal recurring adjustments, necessary for the fair presentation of the financial position, results of operations and cash flows for the interim periods. The results of operations for the three and nine months ended September 30, 2019 are not necessarily indicative of the results of operations expected for the entire year ending December 31, 2019 or for any other future annual or interim periods. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 , filed with the SEC on February 27, 2019. Certain corrections have been made to the prior year disclosures of revenue by sales channel (Note 4) and property and equipment, net by geographic area (Note 13) to conform to current year presentation. These corrections have no effect on net income, total assets or stockholders’ equity as previously reported. Use of Estimates The preparation of the unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of assets and liabilities at the date of the condensed consolidated financial statements and the reported results of operations during the reporting period. The Company’s management regularly assesses these estimates, which primarily affect revenue recognition, the valuation of accounts receivable, goodwill and intangible assets, capitalization of internally developed software, stock-based compensation and the provision for income taxes. Actual results could differ from those estimates and such differences may be material to the accompanying unaudited condensed consolidated financial statements. Derivative Financial Instruments Derivative financial instruments are utilized by the Company to reduce foreign currency exchange risks. The Company uses foreign currency forward contracts to mitigate the impact of foreign currency fluctuations of certain non-U.S. Dollar denominated asset positions, to date primarily cash and accounts receivable (non-designated forward contracts), as well as to manage foreign currency fluctuation risk related to forecasted transactions (designated cash flow hedges). Open contracts are recorded within prepaid expenses and other current assets or accrued liabilities in the condensed consolidated balance sheets. Gains and losses resulting from currency exchange rate movements on non-designated forward contracts are recognized in other income (expense), net. Any gains or losses from designated cash flow hedges are first accumulated in other comprehensive income ("AOCI") and then reclassified to revenue when the hedged item impacts the condensed consolidated statements of operations. The cash flow effects of the Company's derivative contracts for the nine months ended September 30, 2019 were included within net cash provided by operating activities on its condensed consolidated statements of cash flows. As of September 30, 2019 , the Company had €19.9 million and £9.8 million of notional amounts outstanding on designated cash flow hedges. The Company had no designated cash flow hedges as of September 30, 2018 . Stock-Based Compensation The Company recognizes the fair value of its employee stock options and restricted stock units over the requisite service period for those awards ultimately expected to vest. The fair value of each option is estimated on date of grant using the Black-Scholes-Merton option pricing model and the fair value of each restricted stock unit is based on the fair value of the Company's stock on the date of grant. Forfeitures are estimated on the date of grant and revised if actual or expected forfeiture activity differs materially from original estimates. The Company has issued performance-based awards and accounts for these awards as stock-based compensation with multiple performance conditions. For these performance-based awards, the Company records compensation expense for only the performance milestones that are probable of being achieved, with such expense recorded on a straight-line basis over the expected vesting period. The Company reassesses performance-based estimates each reporting period and, if the estimated service period changes, the Company recognizes all remaining compensation expense over the remaining service period and, if the probability of achievement changes to or from “probable,” the Company recognizes the cumulative effect. For the three and nine months ended September 30, 2019 , the Company recorded approximately $0.2 million and $0.7 million of stock-based compensation cost for these awards, respectively. Internally Developed Software Costs The Company capitalizes certain costs incurred to develop new internal-use software. Capitalized costs include salaries, benefits, and stock-based compensation charges for employees that are directly involved in developing its cloud security platform during the application development stage. These capitalized costs are included in other noncurrent assets on the accompanying condensed consolidated balance sheets. Upon general release, such costs are amortized on a straight-line basis over an estimated useful life of three years. Amortization of internally developed software is recorded to cost of revenues. Capitalization of internally developed software cost was $0.1 million and $0.5 million for the three and nine months ended September 30, 2019 , respectively. Unamortized cost for capitalized internally developed software was $1.6 million at September 30, 2019 and $1.2 million at December 31, 2018 . Amortization expense for capitalized internally developed software was insignificant for the three and nine months ended September 30, 2019 . Management evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. Cost Method Investments In the second quarter of fiscal 2018, the Company invested $2.5 million in preferred stock of a privately-held company. The investment has been accounted for using the cost method and included in other noncurrent assets on the accompanying condensed consolidated balance sheets. The Company's cost method investment is assessed for impairment when events or changes in circumstances indicate that the carrying amount may not be recoverable. The Company has not recorded any dividends or other-than-temporary impairment charges related to its cost method investment. The fair value of the investment is not readily available, and there are no quoted market prices for the investment. During the three months ended June 30, 2019, the Company made an advance payment of $0.6 million to the investee for certain development work, which is recorded in other noncurrent assets on the condensed consolidated balance sheet. During the three months ended September 30, 2019 , the Company made an additional investment of $0.6 million in a convertible security issued by this investee and recorded it in other current assets on the condensed consolidated balance sheet. Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-02, Leases (Topic 842), which requires lessees to recognize all leases, including operating leases, on the balance sheet as a lease asset and lease liability, unless the lease is a short-term lease. ASU 2016-02 also requires additional disclosures regarding leasing arrangements. ASU 2016-02 is effective for the Company beginning in the first quarter of fiscal 2019 and early adoption is permitted. In July 2018, the FASB issued ASU 2018-11, Targeted Improvements - Leases (Topic 842). This update provides an optional transition method that allows entities to elect to apply the standard prospectively at its effective date, versus recasting the prior periods presented. If elected, an entity would recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Pursuant to the leasing criteria, most of the Company's leased space and equipment leases will be required to be accounted for as right-of-use assets ("ROU") on the balance sheet with offsetting financing obligations. In the statement of operations, what was formerly rent expense for operating leases will be lease expense; and finance leases will be bifurcated into amortization of right-of-use assets and interest on lease liabilities. The Company adopted the ASU utilizing the current period adjustment method on January 1, 2019, and recognized an ROU asset of $30.8 million and a lease liability of $41.6 million on its condensed consolidated financial statements. As of January 1, 2019, $3.9 million of deferred rent and $6.9 million related to tenant improvement allowance was removed upon adoption. As part of this adoption, the Company elected the package of transitional practical expedients to not reassess (1) whether any contracts that existed prior to adoption have or contain leases, (2) the classification of existing leases or (3) initial direct costs for existing leases. The Company also elected to make the accounting policy election for short-term leases, permitting the Company to not apply the recognition requirements of this standard to short-term leases with terms of 12 months or less. In June 2018, the FASB issued ASU 2018-07, Compensation - Stock Compensation (Topic 718) : Improvements to Nonemployee Share-Based Payment Accounting. This ASU expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. The Company adopted this guidance as of January 1, 2019. The adoption of this ASU did not have a material impact on the Company's condensed consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment (Topic 350). This standard eliminates Step 2 from the goodwill impairment test, instead requiring an entity to recognize a goodwill impairment charge for the amount by which the goodwill carrying amount exceeds the reporting unit’s fair value. This ASU is effective for interim and annual goodwill impairment tests in fiscal years beginning after December 15, 2019 with early adoption permitted. This ASU must be applied on a prospective basis. The Company adopted this ASU during the first quarter of fiscal 2019 and the adoption did not have a material impact on the Company's condensed consolidated financial statements. Recently Issued Accounting Pronouncements Not Yet Adopted In August 2018, the FASB issued ASU 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40) : Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract . This ASU aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs related to internal-use softw are. ASU 2018-15 is effective for the Company beginning in the first quarter of fiscal 2020 and early adoption is permitted. The adoption of this ASU is not expected to have a material impact on the Company's consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments–Credit Losses (Topic 326) as modified by subsequently issued ASU No. 2018-19, 2019-04 and 2019-05, which introduces a new accounting model, Current Expected Credit Losses ("CECL"). CECL requires earlier recognition of credit losses, while also providing additional transparency about credit risk. CECL utilizes a lifetime expected credit loss measurement objective for the recognition of credit losses at the time the financial asset is originated or acquired. The expected credit losses are adjusted each period for changes in expected lifetime credit losses. The ASUs are effective for the Company beginning in the first quarter of fiscal 2020. The adoption of the ASUs is not expected to have a material impact on the Company's consolidated financial statements. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. For certain of the Company’s financial instruments, including certain cash equivalents, accounts receivable, accounts payable, and other current liabilities, the carrying amounts approximate their fair values due to the relatively short maturity of these balances. The Company measures and reports certain cash equivalents, marketable securities, derivative foreign currency forward contracts and commitments associated with prior business combinations at fair value in accordance with the provisions of the authoritative accounting guidance that addresses fair value measurements. This guidance 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. The 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 assets or liabilities. Level 2 —Valuations based on other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3— Valuations based on inputs that are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The Company's financial instruments consist of assets and liabilities measured using Level 1 and 2 inputs. Level 1 assets include a highly liquid money market fund, which is valued using unadjusted quoted prices that are available in an active market for an identical asset. Level 2 assets include fixed-income U.S. government agency securities, commercial paper, corporate bonds, asset-backed securities and derivative financial instruments consisting of foreign currency forward contracts. The securities, bonds and commercial paper are valued using prices from independent pricing services based on quoted prices in active markets for similar instruments or on industry models using data inputs such as interest rates and prices that can be directly observed or corroborated in active markets. The foreign currency forward contracts are valued usi ng observable inputs, such as quotations on forward foreign exchange points and foreign interest rates. The estimated fair value of commitments from prior acquisitions are determined based on management’s estimate of fair value using a Monte Carlo simulation model, which uses Level 3 inputs for fair value measurements. As of September 30, 2019 , management estimated the fair value of such commitments to be zero. During the three months ended September 30, 2019 , the Company made an investment of $0.6 million in a convertible security issued by its cost method investee. The estimated fair value of the investment was determined based on Level 3 inputs. As of September 30, 2019, management estimated that the fair value of the investment equaled its carrying value. The Company's cash and cash equivalents, and marketable securities consist of the following: September 30, 2019 Amortized Cost Unrealized Gains Unrealized (Losses) Fair Value (in thousands) Cash and cash equivalents: Cash $ 66,453 $ — $ — $ 66,453 Money market funds 249 — — 249 Commercial paper 8,913 — — 8,913 Total 75,615 — — 75,615 Short-term marketable securities : Commercial paper 3,386 — — 3,386 Corporate bonds 30,038 70 (9 ) 30,099 Asset-backed securities 1,051 1 — 1,052 U.S. government agencies 187,654 235 (5 ) 187,884 Total 222,129 306 (14 ) 222,421 Long-term marketable securities : Asset-backed securities 39,831 252 — 40,083 U.S. government agencies 27,874 382 — 28,256 Corporate bonds 32,376 242 (6 ) 32,612 Total 100,081 876 (6 ) 100,951 Total $ 397,825 $ 1,182 $ (20 ) $ 398,987 December 31, 2018 Amortized Cost Unrealized Gains Unrealized (Losses) Fair Value (in thousands) Cash and cash equivalents: Cash $ 40,913 $ — $ — $ 40,913 Money market funds 113 — — 113 Total 41,026 — — 41,026 Short-term marketable securities : Commercial paper 3,237 — — 3,237 Corporate bonds 30,906 — (84 ) 30,822 Asset-backed securities 10,447 — (15 ) 10,432 U.S. government agencies 203,734 9 (94 ) 203,649 Total 248,324 9 (193 ) 248,140 Long-term marketable securities : Asset-backed securities 22,945 10 (28 ) 22,927 U.S. government agencies 18,804 — (53 ) 18,751 Corporate bonds 35,322 3 (293 ) 35,032 Total 77,071 13 (374 ) 76,710 Total $ 366,421 $ 22 $ (567 ) $ 365,876 The following table shows the changes to AOCI related to available-for-sale marketable securities for the nine months ended September 30, 2019 (in thousands): Unrealized Gain (Loss), net AOCI for available-for sale marketable securities balance at December 31, 2018 $ (545 ) Change in net unrealized gain, net of tax 1,419 Amounts reclassified for net realized gain included in net income 25 Total change in unrealized gain (loss), net of tax 1,444 AOCI for available-for sale marketable securities balance at September 30, 2019 $ 899 The following table sets forth by level within the fair value hierarchy, the fair value of the Company's available-for-sale marketable securities measured on a recurring basis, excluding cash and money market funds: September 30, 2019 Level 1 Level 2 Level 3 Fair Value (in thousands) Commercial paper $ — $ 12,299 $ — $ 12,299 U.S. government agencies — 216,140 — 216,140 Corporate bonds — 62,711 — 62,711 Asset-backed securities — 41,135 — 41,135 Total $ — $ 332,285 $ — $ 332,285 December 31, 2018 Level 1 Level 2 Level 3 Fair Value (in thousands) Commercial paper $ — $ 3,237 $ — $ 3,237 U.S. government agencies — 222,400 — 222,400 Corporate bonds — 65,854 — 65,854 Asset-backed securities — 33,359 — 33,359 Total $ — $ 324,850 $ — $ 324,850 There were no transfers between Level 1, Level 2 or Level 3 of the fair value hierarchy, as determined at the end of each reporting period. The following summarizes the fair value of marketable securities classified as available-for-sale by contractual, or effective, maturity: September 30, 2019 Mature within One Year Mature after One Year through Two Years Mature over Two Years Fair Value (in thousands) Commercial paper $ 12,299 $ — $ — $ 12,299 U.S. government agencies 187,883 13,527 14,730 216,140 Corporate bonds 30,100 21,330 11,281 62,711 Asset-backed securities 1,052 14,824 25,259 41,135 Total $ 231,334 $ 49,681 $ 51,270 $ 332,285 Derivative Financial Instruments Non-designated forward contracts At September 30, 2019 , the Company had four outstanding forward contracts with notional amounts of €9.0 million and £4.0 million . At December 31, 2018, the Company had two outstanding forward contracts with notional amounts of €16.0 million and £6.3 million . Designated cash flow hedges At September 30, 2019 , the Company had 26 open designated cash flow hedge contracts with notional amounts of €19.9 million and £9.8 million . During the three and nine months ended September 30, 2019 , the Company recorded unrealized FX gains related to these contracts in AOCI of $1.0 million and $1.4 million , respectively, net of tax. The Company did not have any unrealized FX gains or losses during the three and nine months ended September 30, 2018 , respectively. At December 31, 2018, the Company had two open designated cash flow hedge contracts with notional amounts of €12.9 million and £4.1 million . The unrealized foreign currency losses on these contracts were recorded in AOCI and were insignificant. The following summarizes the gains (losses) recognized in other income (expense), net on the condensed consolidated statement of operations, from forward contracts and other foreign currency transactions: Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 (in thousands) Net gain (loss) from non-designated forward contracts $ 642 $ (61 ) $ 720 $ 253 Other foreign currency transactions gain (loss) (906 ) (378 ) (851 ) (927 ) Total foreign exchange gain (loss), net $ (264 ) $ (439 ) $ (131 ) $ (674 ) |
Property and Equipment, Net
Property and Equipment, Net | 9 Months Ended |
Sep. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Property and Equipment, Net Property and equipment, net, which includes assets under finance lease, consists of the following: September 30, December 31, 2019 2018 (in thousands) Computer equipment $ 108,639 $ 93,530 Computer software 26,114 26,030 Furniture, fixtures and equipment 5,966 5,814 Finance leases - right of use asset 3,503 3,503 Scanner appliances 15,564 15,356 Leasehold improvements 16,579 16,439 Total property and equipment 176,365 160,672 Less: accumulated depreciation and amortization (117,660 ) (99,230 ) Property and equipment, net $ 58,705 $ 61,442 Physical scanner appliances and other computer equipment had a net carrying value of $5.0 million and $7.9 million at September 30, 2019 and December 31, 2018 , respectively, including assets that had not been placed in service of $0.6 million and $1.8 million , respectively. Depreciation and amortization expense relating to property and equipment, including capitalized leases, was $6.2 million and $6.1 million for the three months ended September 30, 2019 and 2018 , respectively, and $18.9 million for each of the nine months ended September 30, 2019 and 2018, respectively. Accumulated depreciation under finance leases was $1.9 million at September 30, 2019 . |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers The Company's subscription contracts are typically satisfied ratably over the subscription term as its cloud-based offerings are delivered to customers electronically and over time. In addition, the Company recognizes revenues for certain limited scan arrangements on an as-used basis. The Company recognizes revenue related to professional services based on time and materials or completion of milestones stated in the contracts. As the vast majority of the Company’s offerings are subscription based, the Company rarely needs to allocate the transaction price to separate performance obligations. In the rare case that allocation of the transaction price is needed, the Company recognizes revenue in proportion to the standalone selling prices ("SSP") of the underlying services at contract inception. If an SSP is not directly observable, the Company determines the SSP using information that may include market conditions and other observable inputs. The Company's transaction prices typically do not include variable consideration and are a fixed amount for a specific period of time, and the majority of contracts are twelve months with certain customers signing longer term deals. In general, the Company does not offer rights of return, performance bonuses, customer loyalty programs, payments via non-cash methods, refunds, volume rebates, incentive payments, penalties, price concessions or payments or discounts contingent on future events and the Company does not grant its customers any material rights. For contracts that include leased scanners and PCPs, we apply the lease and non-lease component practical expedient under ASC 842 to account for non-lease components and lease components as combined components under the revenue recognition guidance in ASU 2014-09, "Revenue from Contracts with Customers" (Topic 606) as the subscriptions are the predominant components in the arrangements. Costs of shipping and handling charges associated with physical scanner appliances and other computer equipment are included in cost of revenues. Sales taxes and other taxes collected from customers to be remitted to government authorities are excluded from revenues. Incremental direct costs of obtaining a contract, which consist of sales commissions primarily for new business and upsells, are deferred and amortized over the estimated life of the customer relationship if renewals are expected and the renewal commission is not commensurate with the initial commission. The Company elected the practical expedient to expense commissions on renewals where the specific anticipated contract term amortization period is one year or less. The Company amortizes the capitalized commission cost as a selling expense on a straight-line basis over a period of five years. The Company classifies deferred commissions as current or noncurrent based on the timing of when it expects to recognize the expense. The current and noncurrent portions of deferred commissions are included in prepaid expenses and other current assets and other noncurrent assets, respectively, in its condensed consolidated balance sheets. Commission asset balances are as follows (in thousands): September 30, 2019 December 31, 2018 Commission asset, current $ 1,975 $ 1,480 Commission asset, noncurrent $ 6,090 $ 4,692 For the three months ended September 30, 2019 and 2018 , the Company recognized $0.5 million and $0.3 million , respectively, of commission expense from amortization of its commission assets. For the nine months ended September 30, 2019 and 2018 , the Company recognized $1.4 million and $0.8 million , respectively, of commission expense from amortization of its commission assets. During the same periods, there was no impairment loss related to capitalized costs. The Company records deferred revenue when cash payments are received or due in advance of its performance offset by revenue recognized in the period. Revenue of $31.3 million and $28.4 million was recognized during the three months ended September 30, 2019 and 2018 , respectively, which amounts were included in the deferred revenue balances as of December 31, 2018 and 2017, respectively. Revenue of $144.6 million and $126.6 million was recognized during the nine months ended September 30, 2019 and 2018 , respectively, which amounts were included in the deferred revenue balances as of December 31, 2018 and 2017, respectively. The Company's payment terms vary by the type and location of its customer and the products or services offered. For certain products or services and customer types, the Company requires payment before the products or services are delivered to the customer. The following table sets forth the expected revenue from all remaining performance obligations as of September 30, 2019 (in thousands): Total Expected Revenue 2019 (remaining three months) $ 20,017 2020 55,826 2021 27,277 2022 7,180 2023 1,439 2024 and thereafter 402 Total $ 112,141 |
Business Combination Business C
Business Combination Business Combination | 9 Months Ended |
Sep. 30, 2019 | |
Business Combinations [Abstract] | |
Business Combination | Business Combination On January 10, 2019, the Company acquired the assets of Adya, Inc. ("Adya"), an India-based company. The acquisition included a cloud application management platform, which enables security and compliance audits of SaaS applications. Total purchase consideration was $1.0 million , including $0.2 million of deferred consideration due eighteen months from the closing date of the acquisition, subject to potential adjustment from possible indemnity claims. Pro forma financial information for this acquisition has not been presented because it is not material to the Company's condensed consolidated financial statements. The Company accounted for this transaction as a business combination and allocated $0.9 million of the purchase price to technology-based intangible assets and $0.1 million to goodwill. The acquired intangible assets relating to Adya's developed technology are being amortized over the estimated useful lives of approximately four years. Goodwill arising from the Adya acquisition is deductible for tax purposes over 15 years . |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, Net | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets, Net | ngible Assets, Net Intangible assets consist primarily of developed technology and patent licenses from business combinations. Acquired intangibles are amortized on a straight-line basis over the respective estimated useful lives of the assets. The carrying values of intangible assets are as follows (in thousands, except for years): September 30, 2019 Weighted Average Life (Years) Weighted Average Remaining Life (Years) Cost Accumulated Amortization Net Book Value Developed technology 5 3.0 $ 26,356 $ (8,570 ) $ 17,786 Patent licenses 14 4.9 1,387 (897 ) 490 Total intangibles subject to amortization $ 27,743 $ (9,467 ) 18,276 Intangible assets not subject to amortization 40 Total intangible assets, net $ 18,316 December 31, 2018 Weighted Average Life (Years) Weighted Average Remaining Life (Years) Cost Accumulated Amortization Net Book Value Developed technology 5 3.8 $ 25,456 $ (4,085 ) $ 21,371 Patent Licenses 14 5.9 1,387 (822 ) 565 Total intangibles subject to amortization $ 26,843 $ (4,907 ) 21,936 Intangible assets not subject to amortization 40 Total intangible assets, net $ 21,976 Intangible asset amortization expense was $1.5 million and $0.9 million for the three months ended September 30, 2019 and 2018 , respectively, and $4.6 million and $2.4 million for the nine months ended September 30, 2019 and 2018, respectively. As of September 30, 2019 , the Company expects amortization expense in future periods to be as follows (in thousands): Amortization Expense 2019 (remaining three months) $ 1,521 2020 6,081 2021 6,081 2022 4,427 2023 100 2024 and thereafter 66 Total expected future amortization expense $ 18,276 |
Leases (Notes)
Leases (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | Leases On January 1, 2019, the Company adopted ASU No. 2016-02, “Leases (Topic 842),” which requires leases with durations greater than twelve months to be recognized on the balance sheet. We adopted the standard using the current period adjustment method with an effective date of January 1, 2019. Prior year financial statements were not restated under the new standard and, therefore, those amounts are not presented below. For both operating and finance leases, we recognize a right-of-use asset, which represents our right to use the underlying asset for the lease term, and a lease liability, which represents the present value of our obligation to make payments arising over the lease term. The present value of the lease payments is calculated using the incremental borrowing rate for operating and finance leases. The incremental borrowing rate is determined using a portfolio approach based on the rate of interest that the Company would have to pay to borrow an amount equal to the lease payments on a collateralized basis over a similar term. Where the Company is the lessee, we have elected to account for non-lease components associated with our leases (e.g., common area maintenance costs) and lease components separately for substantially all of our asset classes. In arrangements where we are the lessor, we apply the lease and non-lease component practical expedient and we account for lease components (e.g., customer premise equipment) and non-lease components (e.g., service revenue) as combined components and account for the combined components under the revenue recognition guidance in Topic 606 as the service revenues are the predominant components in the arrangements. We lease property and equipment under finance and operating leases. For leases with terms greater than 12 months, we record the related asset and obligation at the present value of lease payments over the term. Many of our leases include rental escalation clauses, renewal options and/or termination options that are factored into our determination of lease payments when appropriate. When available, we use the rate implicit in the lease to discount lease payments to present value; however, most of our leases do not provide a readily determinable implicit rate. Therefore, we must estimate our incremental borrowing rate to discount the lease payments based on information available at lease commencement. The table below presents the lease-related assets and liabilities recorded on the balance sheet. September 30, (in thousands) Classification on the Balance Sheet 2019 Assets Operating lease assets Operating lease - right of use asset $ 27,043 Finance lease assets Property and equipment, net 1,591 Total lease assets $ 28,634 Liabilities Current Operating Operating lease liabilities, current $ 6,937 Finance Accrued liabilities 528 Noncurrent Operating Operating lease liabilities, noncurrent 30,696 Finance Other noncurrent liabilities 85 Total lease liabilities $ 38,246 The Company leases certain computer equipment and its corporate office and data center facilities under non-cancelable operating leases for varying periods through 2028. In January 2018, the Company entered into a $3.5 million financing arrangement for data center storage equipment, accounted for as a finance lease, with an implied interest rate of 5% . The following are the minimum annual lease payments due under these leases at September 30, 2019 (in thousands): Operating Leases Finance Leases (in thousands) 2019 (remaining three months) $ 2,292 $ 443 2020 8,037 130 2021 6,530 54 2022 4,657 — 2023 4,298 — 2024 and thereafter 19,299 — Total minimum lease payments 45,113 627 Less: amount representing interest (7,480 ) (14 ) Present value of minimum payments 37,633 613 Less: current portion (6,937 ) (528 ) Lease obligations, noncurrent $ 30,696 $ 85 Lease expense was $1.8 million and $1.4 million for the three months ended September 30, 2019 and 2018 , respectively, and $5.3 million and $3.9 million for the nine months ended September 30, 2019 and 2018 , respectively. The weighted average remaining lease term and the weighted average discount rate of our leases were as follows: September 30, 2019 Weighted average remaining lease term (years) Operating leases 7.1 Finance leases 0.8 Weighted average discount rates Operating leases 4.6 % Finance leases 5.0 % |
Leases | Leases On January 1, 2019, the Company adopted ASU No. 2016-02, “Leases (Topic 842),” which requires leases with durations greater than twelve months to be recognized on the balance sheet. We adopted the standard using the current period adjustment method with an effective date of January 1, 2019. Prior year financial statements were not restated under the new standard and, therefore, those amounts are not presented below. For both operating and finance leases, we recognize a right-of-use asset, which represents our right to use the underlying asset for the lease term, and a lease liability, which represents the present value of our obligation to make payments arising over the lease term. The present value of the lease payments is calculated using the incremental borrowing rate for operating and finance leases. The incremental borrowing rate is determined using a portfolio approach based on the rate of interest that the Company would have to pay to borrow an amount equal to the lease payments on a collateralized basis over a similar term. Where the Company is the lessee, we have elected to account for non-lease components associated with our leases (e.g., common area maintenance costs) and lease components separately for substantially all of our asset classes. In arrangements where we are the lessor, we apply the lease and non-lease component practical expedient and we account for lease components (e.g., customer premise equipment) and non-lease components (e.g., service revenue) as combined components and account for the combined components under the revenue recognition guidance in Topic 606 as the service revenues are the predominant components in the arrangements. We lease property and equipment under finance and operating leases. For leases with terms greater than 12 months, we record the related asset and obligation at the present value of lease payments over the term. Many of our leases include rental escalation clauses, renewal options and/or termination options that are factored into our determination of lease payments when appropriate. When available, we use the rate implicit in the lease to discount lease payments to present value; however, most of our leases do not provide a readily determinable implicit rate. Therefore, we must estimate our incremental borrowing rate to discount the lease payments based on information available at lease commencement. The table below presents the lease-related assets and liabilities recorded on the balance sheet. September 30, (in thousands) Classification on the Balance Sheet 2019 Assets Operating lease assets Operating lease - right of use asset $ 27,043 Finance lease assets Property and equipment, net 1,591 Total lease assets $ 28,634 Liabilities Current Operating Operating lease liabilities, current $ 6,937 Finance Accrued liabilities 528 Noncurrent Operating Operating lease liabilities, noncurrent 30,696 Finance Other noncurrent liabilities 85 Total lease liabilities $ 38,246 The Company leases certain computer equipment and its corporate office and data center facilities under non-cancelable operating leases for varying periods through 2028. In January 2018, the Company entered into a $3.5 million financing arrangement for data center storage equipment, accounted for as a finance lease, with an implied interest rate of 5% . The following are the minimum annual lease payments due under these leases at September 30, 2019 (in thousands): Operating Leases Finance Leases (in thousands) 2019 (remaining three months) $ 2,292 $ 443 2020 8,037 130 2021 6,530 54 2022 4,657 — 2023 4,298 — 2024 and thereafter 19,299 — Total minimum lease payments 45,113 627 Less: amount representing interest (7,480 ) (14 ) Present value of minimum payments 37,633 613 Less: current portion (6,937 ) (528 ) Lease obligations, noncurrent $ 30,696 $ 85 Lease expense was $1.8 million and $1.4 million for the three months ended September 30, 2019 and 2018 , respectively, and $5.3 million and $3.9 million for the nine months ended September 30, 2019 and 2018 , respectively. The weighted average remaining lease term and the weighted average discount rate of our leases were as follows: September 30, 2019 Weighted average remaining lease term (years) Operating leases 7.1 Finance leases 0.8 Weighted average discount rates Operating leases 4.6 % Finance leases 5.0 % |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Indemnifications The Company from time to time enters into certain types of contracts that contingently require it to indemnify various parties against claims from third parties. These contracts primarily relate to (i) the Company's by-laws, under which it must indemnify directors and executive officers, and may indemnify other officers and employees, for liabilities arising out of their relationship, (ii) contracts under which the Company must indemnify directors and certain officers for liabilities arising out of their relationship, and (iii) contracts under which the Company may be required to indemnify customers or resellers from certain liabilities arising from potential infringement of intellectual property rights, as well as potential damages caused by limited product defects. To date, the Company has not incurred and has not recorded any liability in connection with such indemnifications. The Company maintains director and officer insurance, which may cover certain liabilities arising from its obligation to indemnify its directors. |
Stock-based Compensation
Stock-based Compensation | 9 Months Ended |
Sep. 30, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-based Compensation | Stock-based Compensation Equity Incentive Plans 2012 Equity Incentive Plan Under the 2012 Equity Incentive Plan (the "2012 Plan"), the Company is authorized to grant to eligible participants incentive stock options (“ISOs”), non-statutory stock options (“NSOs”), stock appreciation rights ("SARs"), restricted stock awards ("RSAs"), restricted stock units ("RSUs"), performance units and performance shares equivalent to up to 11.8 million shares of common stock as of September 30, 2019 . Options may be granted with an exercise price that is at least equal to the fair market value of the Company's stock at the date of grant and are exercisable when vested. As of September 30, 2019 , 5.5 million shares were available for grant under the 2012 Plan. 2000 Equity Incentive Plan Under the 2000 Equity Incentive Plan (the "2000 Plan"), the Company was authorized to grant to eligible participants either ISOs or NSOs. The 2000 Plan was terminated in connection with the closing of the Company's initial public offering, and accordingly, no shares are currently available for grant under the 2000 Plan. The 2000 Plan continues to govern outstanding awards granted thereunder. Stock-based Compensation The following table shows a summary of the stock-based compensation expense included in the condensed consolidated statements of operations for the three and nine months ended September 30, 2019 and 2018 : Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 (in thousands) Cost of revenues $ 577 $ 625 $ 1,674 $ 1,888 Research and development 2,831 1,937 7,875 5,754 Sales and marketing 1,459 1,163 3,590 3,669 General and administrative 3,516 3,033 12,024 11,361 Total stock-based compensation $ 8,383 $ 6,758 $ 25,163 $ 22,672 As of September 30, 2019 , the Company had $12.6 million of total unrecognized stock-based compensation cost related to unvested options that it expects to recognize over a weighted-average period of 2.2 years , and $46.3 million of unrecognized stock-based compensation cost related to unvested RSUs that it expects to recognize over a weighted-average period of 2.3 years . Compensation cost is recognized over the service period. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Stock Option Plan Activity A summary of the Company’s stock option activity is as follows: Outstanding Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value (in thousands) Balance as of December 31, 2018 3,429,309 $ 31.79 6.4 $ 149,935 Granted 260,175 $ 90.72 Exercised (412,910 ) $ 26.67 Canceled (120,799 ) $ 67.98 Balance as of September 30, 2019 3,155,775 $ 35.93 6.0 $ 130,529 Vested and expected to vest - September 30, 2019 3,010,578 $ 33.96 5.9 $ 129,358 Exercisable - September 30, 2019 2,464,112 $ 27.60 5.4 $ 118,835 Restricted Stock A summary of the Company’s RSU activity is as follows: Outstanding RSUs Weighted Average Grant Date Fair Value Per Share Balance as of December 31, 2018 1,226,883 $ 55.71 Granted 233,088 $ 83.41 Vested (329,561 ) $ 52.92 Canceled (128,132 ) $ 63.04 Balance as of September 30, 2019 1,002,278 $ 62.16 Outstanding and expected to vest - September 30, 2019 763,526 $ 60.77 |
Net Income Per Share
Net Income Per Share | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | Net Income Per Share The computations for basic and diluted net income per share are as follows: Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 (in thousands, except per share data) Numerator: Net income $ 19,174 $ 23,469 $ 48,672 $ 42,904 Denominator: Weighted-average shares used in computing net income per share: Basic 39,014 39,170 39,099 38,907 Effect of potentially dilutive securities: Common stock options 1,783 2,463 1,882 2,555 Restricted stock units 365 564 466 651 Diluted 41,162 42,197 41,447 42,113 Net income per share: Basic $ 0.49 $ 0.60 $ 1.24 $ 1.10 Diluted $ 0.47 $ 0.56 $ 1.17 $ 1.02 Potentially dilutive securities not included in the calculation of diluted net income per share because doing so would be anti-dilutive are as follows: Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 (in thousands) Common stock options 462 167 408 129 Restricted stock units 51 39 53 18 513 206 461 147 |
Stockholder's Equity
Stockholder's Equity | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Stockholder's Equity | Stockholder's Equity Share Repurchase Program On February 5, 2018, the Company's board of directors authorized a $100.0 million share repurchase program, which was announced on February 12, 2018. On October 30, 2018, the Company announced that the board of directors had authorized an increase of $100.0 million to the original share repurchase program authorization. On October 24, 2019, the Company's Board of Directors authorized an additional $100.0 million to the original share repurchase program authorization. Share repurchases may be effected from time to time through open market purchases or pursuant to a Rule 10b5-1 plan until October 30, 2020. Repurchased shares are retired and reclassified as authorized and unissued shares of common stock. On retirement of the repurchased shares, common stock is reduced by an amount equal to the number of shares being retired multiplied by the par value. The excess of the cost of treasury stock that is retired over its par value is first allocated as a reduction to additional paid-in capital based on the initial public offering price of the stock, with the remaining excess to retained earnings. During the nine months ended September 30, 2019 , the Company repurchased 881,455 shares of its common stock for approximately $73.9 million . All share repurchases were made using cash resources. As of September 30, 2019 , approximately $41.1 million |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company's provision for income taxes for interim periods is determined using an estimate of its annual effective tax rate, adjusted for discrete items, if any, that arise during the period. Each quarter, the Company updates its estimate of the annual effective tax rate, and if the estimated annual effective tax rate changes, the Company makes a cumulative adjustment in such period. The Company's quarterly tax provision, and estimate of its annual effective tax rate, is subject to variation due to several factors, including variability in pre-tax income (or loss), the mix of jurisdictions to which such income relates, changes in how the Company does business, and tax law developments. The Company's estimated effective tax rate for the year differs from the U.S. statutory rate of 21% primarily due to non-deductible stock-based compensation expense, state taxes, foreign income subject to different tax rates than the U.S., and the benefit of U.S. federal income tax credits. The Company recorded an income tax provision of $5.2 million and income tax benefit of $4.2 million for the three months ended September 30, 2019 and 2018 , respectively, resulting in an effective tax rate of 21.2% and (22.1)% , respectively. The tax provision for the three months ended September 30, 2019 as compared to the tax benefit for the three months ended September 30, 2018 changed primarily due to an increase in pre-tax income and decrease in excess tax benefits from stock-based compensation in the current period. The Company recorded an income tax provision of $10.0 million and income tax benefit of $2.2 million for the nine months ended September 30, 2019 and 2018, respectively, resulting in an effective tax rate of 17.1% and (5.5)% , respectively. The tax provision for the nine months ended September 30, 2019 as compared to the tax benefit for the nine months ended September 30, 2018 changed primarily due to an increase in pre-tax income and decrease in excess tax benefits from stock-based compensation in the current period. As of September 30, 2019 , the Company had unrecognized tax benefits of $8.0 million , of which $4.4 million , if recognized, would favorably impact the Company's effective tax rate. As of December 31, 2018, the Company had unrecognized tax benefits of $6.4 million , of which $3.5 million , if recognized, would favorably impact the Company's effective tax rate. The Company does not anticipate a material change in its unrecognized tax benefits in the next 12 months. |
Segment Information and Informa
Segment Information and Information about Geographic Area | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Information and Information about Geographic Area | he Company operates in one segment. The Company determines its reportable operating segments in accordance with the provisions in the FASB guidance on segment reporting, which establishes standards for, and requires disclosure of, certain financial information related to reportable operating segments and geographic regions. The Company’s chief operating decision maker is the Chairman, President and Chief Executive Officer, who makes operating decisions, assesses performance and allocates resources on a consolidated basis. All of the Company’s principal operations and decision-making functions are located in the United States. Revenues by geographic area, based on the location of the customer, are as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 United States $ 53,132 $ 47,336 $ 152,457 $ 137,449 Foreign 29,539 24,322 84,486 67,240 Total $ 82,671 $ 71,658 $ 236,943 $ 204,689 Property and equipment, net, by geographic area, are as follows: September 30, December 31, 2019 2018 (in thousands) United States $ 47,201 $ 51,587 Foreign 11,504 9,855 Total property and equipment, net $ 58,705 $ 61,442 |
The Company and Summary of Si_2
The Company and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Description Of Business | Description of Business Qualys, Inc. (the “Company”, "we", "us", "our") was incorporated in the state of Delaware on December 30, 1999. The Company is headquartered in Foster City, California and has wholly-owned subsidiaries throughout the world. The Company is a pioneer and leading provider of cloud-based security and compliance solutions that enable organizations to identify security risks to their IT infrastructures, help protect their IT systems and applications from ever-evolving cyber-attacks and achieve compliance with internal policies and external regulations. The Company’s cloud solutions address the growing security and compliance complexities and risks that are amplified by the dissolving boundaries between internal and external IT infrastructures and web environments, the rapid adoption of cloud computing and the proliferation of geographically dispersed IT assets. Organizations can use the Company’s integrated suite of solutions delivered on its Qualys cloud platform to cost-effectively obtain a unified view of their security and compliance posture across globally-distributed IT infrastructures. |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements and condensed footnotes have been prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") for interim financial information as well as the instructions to Form 10-Q and the rules and regulations of the U.S. Securities and Exchange Commission ("SEC"). Certain information and disclosures normally included in the financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. The condensed consolidated balance sheet as of December 31, 2018 , included herein, was derived from the audited financial statements as of that date but does not include all disclosures, including notes required by U.S. GAAP. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, which include only normal recurring adjustments, necessary for the fair presentation of the financial position, results of operations and cash flows for the interim periods. The results of operations for the three and nine months ended September 30, 2019 are not necessarily indicative of the results of operations expected for the entire year ending December 31, 2019 or for any other future annual or interim periods. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 , filed with the SEC on February 27, 2019. Certain corrections have been made to the prior year disclosures of revenue by sales channel (Note 4) and property and equipment, net by geographic area (Note 13) to conform to current year presentation. These corrections have no effect on net income, total assets or stockholders’ equity as previously reported. Use of Estimates The preparation of the unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of assets and liabilities at the date of the condensed consolidated financial statements and the reported results of operations during the reporting period. The Company’s management regularly assesses these estimates, which primarily affect revenue recognition, the valuation of accounts receivable, goodwill and intangible assets, capitalization of internally developed software, stock-based compensation and the provision for income taxes. Actual results could differ from those estimates and such differences may be material to the accompanying unaudited condensed consolidated financial statements. Derivative Financial Instruments Derivative financial instruments are utilized by the Company to reduce foreign currency exchange risks. The Company uses foreign currency forward contracts to mitigate the impact of foreign currency fluctuations of certain non-U.S. Dollar denominated asset positions, to date primarily cash and accounts receivable (non-designated forward contracts), as well as to manage foreign currency fluctuation risk related to forecasted transactions (designated cash flow hedges). Open contracts are recorded within prepaid expenses and other current assets or accrued liabilities in the condensed consolidated balance sheets. Gains and losses resulting from currency exchange rate movements on non-designated forward contracts are recognized in other income (expense), net. Any gains or losses from designated cash flow hedges are first accumulated in other comprehensive income ("AOCI") and then reclassified to revenue when the hedged item impacts the condensed consolidated statements of operations. The cash flow effects of the Company's derivative contracts for the nine months ended September 30, 2019 were included within net cash provided by operating activities on its condensed consolidated statements of cash flows. As of September 30, 2019 , the Company had €19.9 million and £9.8 million of notional amounts outstanding on designated cash flow hedges. The Company had no designated cash flow hedges as of September 30, 2018 . Stock-Based Compensation The Company recognizes the fair value of its employee stock options and restricted stock units over the requisite service period for those awards ultimately expected to vest. The fair value of each option is estimated on date of grant using the Black-Scholes-Merton option pricing model and the fair value of each restricted stock unit is based on the fair value of the Company's stock on the date of grant. Forfeitures are estimated on the date of grant and revised if actual or expected forfeiture activity differs materially from original estimates. The Company has issued performance-based awards and accounts for these awards as stock-based compensation with multiple performance conditions. For these performance-based awards, the Company records compensation expense for only the performance milestones that are probable of being achieved, with such expense recorded on a straight-line basis over the expected vesting period. The Company reassesses performance-based estimates each reporting period and, if the estimated service period changes, the Company recognizes all remaining compensation expense over the remaining service period and, if the probability of achievement changes to or from “probable,” the Company recognizes the cumulative effect. For the three and nine months ended September 30, 2019 , the Company recorded approximately $0.2 million and $0.7 million of stock-based compensation cost for these awards, respectively. Internally Developed Software Costs The Company capitalizes certain costs incurred to develop new internal-use software. Capitalized costs include salaries, benefits, and stock-based compensation charges for employees that are directly involved in developing its cloud security platform during the application development stage. These capitalized costs are included in other noncurrent assets on the accompanying condensed consolidated balance sheets. Upon general release, such costs are amortized on a straight-line basis over an estimated useful life of three years. Amortization of internally developed software is recorded to cost of revenues. Capitalization of internally developed software cost was $0.1 million and $0.5 million for the three and nine months ended September 30, 2019 , respectively. Unamortized cost for capitalized internally developed software was $1.6 million at September 30, 2019 and $1.2 million at December 31, 2018 . Amortization expense for capitalized internally developed software was insignificant for the three and nine months ended September 30, 2019 . Management evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. Cost Method Investments In the second quarter of fiscal 2018, the Company invested $2.5 million in preferred stock of a privately-held company. The investment has been accounted for using the cost method and included in other noncurrent assets on the accompanying condensed consolidated balance sheets. The Company's cost method investment is assessed for impairment when events or changes in circumstances indicate that the carrying amount may not be recoverable. The Company has not recorded any dividends or other-than-temporary impairment charges related to its cost method investment. The fair value of the investment is not readily available, and there are no quoted market prices for the investment. During the three months ended June 30, 2019, the Company made an advance payment of $0.6 million to the investee for certain development work, which is recorded in other noncurrent assets on the condensed consolidated balance sheet. During the three months ended September 30, 2019 , the Company made an additional investment of $0.6 million in a convertible security issued by this investee and recorded it in other current assets on the condensed consolidated balance sheet. Recently Adopted Accounting Pronouncements |
Recently adopted Accounting Pronouncements and Recent Accounting Pronouncements | In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-02, Leases (Topic 842), which requires lessees to recognize all leases, including operating leases, on the balance sheet as a lease asset and lease liability, unless the lease is a short-term lease. ASU 2016-02 also requires additional disclosures regarding leasing arrangements. ASU 2016-02 is effective for the Company beginning in the first quarter of fiscal 2019 and early adoption is permitted. In July 2018, the FASB issued ASU 2018-11, Targeted Improvements - Leases (Topic 842). This update provides an optional transition method that allows entities to elect to apply the standard prospectively at its effective date, versus recasting the prior periods presented. If elected, an entity would recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Pursuant to the leasing criteria, most of the Company's leased space and equipment leases will be required to be accounted for as right-of-use assets ("ROU") on the balance sheet with offsetting financing obligations. In the statement of operations, what was formerly rent expense for operating leases will be lease expense; and finance leases will be bifurcated into amortization of right-of-use assets and interest on lease liabilities. The Company adopted the ASU utilizing the current period adjustment method on January 1, 2019, and recognized an ROU asset of $30.8 million and a lease liability of $41.6 million on its condensed consolidated financial statements. As of January 1, 2019, $3.9 million of deferred rent and $6.9 million related to tenant improvement allowance was removed upon adoption. As part of this adoption, the Company elected the package of transitional practical expedients to not reassess (1) whether any contracts that existed prior to adoption have or contain leases, (2) the classification of existing leases or (3) initial direct costs for existing leases. The Company also elected to make the accounting policy election for short-term leases, permitting the Company to not apply the recognition requirements of this standard to short-term leases with terms of 12 months or less. In June 2018, the FASB issued ASU 2018-07, Compensation - Stock Compensation (Topic 718) : Improvements to Nonemployee Share-Based Payment Accounting. This ASU expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. The Company adopted this guidance as of January 1, 2019. The adoption of this ASU did not have a material impact on the Company's condensed consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment (Topic 350). This standard eliminates Step 2 from the goodwill impairment test, instead requiring an entity to recognize a goodwill impairment charge for the amount by which the goodwill carrying amount exceeds the reporting unit’s fair value. This ASU is effective for interim and annual goodwill impairment tests in fiscal years beginning after December 15, 2019 with early adoption permitted. This ASU must be applied on a prospective basis. The Company adopted this ASU during the first quarter of fiscal 2019 and the adoption did not have a material impact on the Company's condensed consolidated financial statements. Recently Issued Accounting Pronouncements Not Yet Adopted |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. For certain of the Company’s financial instruments, including certain cash equivalents, accounts receivable, accounts payable, and other current liabilities, the carrying amounts approximate their fair values due to the relatively short maturity of these balances. The Company measures and reports certain cash equivalents, marketable securities, derivative foreign currency forward contracts and commitments associated with prior business combinations at fair value in accordance with the provisions of the authoritative accounting guidance that addresses fair value measurements. This guidance 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. The 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 assets or liabilities. Level 2 —Valuations based on other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3— Valuations based on inputs that are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The Company's financial instruments consist of assets and liabilities measured using Level 1 and 2 inputs. Level 1 assets include a highly liquid money market fund, which is valued using unadjusted quoted prices that are available in an active market for an identical asset. Level 2 assets include fixed-income U.S. government agency securities, commercial paper, corporate bonds, asset-backed securities and derivative financial instruments consisting of foreign currency forward contracts. The securities, bonds and commercial paper are valued using prices from independent pricing services based on quoted prices in active markets for similar instruments or on industry models using data inputs such as interest rates and prices that can be directly observed or corroborated in active markets. The foreign currency forward contracts are valued usi ng observable inputs, such as quotations on forward foreign exchange points and foreign interest rates. The estimated fair value of commitments from prior acquisitions are determined based on management’s estimate of fair value using a Monte Carlo simulation model, which uses Level 3 inputs for fair value measurements. As of September 30, 2019 , management estimated the fair value of such commitments to be zero. During the three months ended September 30, 2019 , the Company made an investment of $0.6 million in a convertible security issued by its cost method investee. The estimated fair value of the investment was determined based on Level 3 inputs. As of September 30, 2019, management estimated that the fair value of the investment equaled its carrying value. |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Cash and Cash Equivalents, Available-for-sale Securities Reconciliation | The Company's cash and cash equivalents, and marketable securities consist of the following: September 30, 2019 Amortized Cost Unrealized Gains Unrealized (Losses) Fair Value (in thousands) Cash and cash equivalents: Cash $ 66,453 $ — $ — $ 66,453 Money market funds 249 — — 249 Commercial paper 8,913 — — 8,913 Total 75,615 — — 75,615 Short-term marketable securities : Commercial paper 3,386 — — 3,386 Corporate bonds 30,038 70 (9 ) 30,099 Asset-backed securities 1,051 1 — 1,052 U.S. government agencies 187,654 235 (5 ) 187,884 Total 222,129 306 (14 ) 222,421 Long-term marketable securities : Asset-backed securities 39,831 252 — 40,083 U.S. government agencies 27,874 382 — 28,256 Corporate bonds 32,376 242 (6 ) 32,612 Total 100,081 876 (6 ) 100,951 Total $ 397,825 $ 1,182 $ (20 ) $ 398,987 December 31, 2018 Amortized Cost Unrealized Gains Unrealized (Losses) Fair Value (in thousands) Cash and cash equivalents: Cash $ 40,913 $ — $ — $ 40,913 Money market funds 113 — — 113 Total 41,026 — — 41,026 Short-term marketable securities : Commercial paper 3,237 — — 3,237 Corporate bonds 30,906 — (84 ) 30,822 Asset-backed securities 10,447 — (15 ) 10,432 U.S. government agencies 203,734 9 (94 ) 203,649 Total 248,324 9 (193 ) 248,140 Long-term marketable securities : Asset-backed securities 22,945 10 (28 ) 22,927 U.S. government agencies 18,804 — (53 ) 18,751 Corporate bonds 35,322 3 (293 ) 35,032 Total 77,071 13 (374 ) 76,710 Total $ 366,421 $ 22 $ (567 ) $ 365,876 |
Schedule of changes to accumulated other comprehensive income | The following table shows the changes to AOCI related to available-for-sale marketable securities for the nine months ended September 30, 2019 (in thousands): Unrealized Gain (Loss), net AOCI for available-for sale marketable securities balance at December 31, 2018 $ (545 ) Change in net unrealized gain, net of tax 1,419 Amounts reclassified for net realized gain included in net income 25 Total change in unrealized gain (loss), net of tax 1,444 AOCI for available-for sale marketable securities balance at September 30, 2019 $ 899 |
Schedule of Assets Measured on Recurring Basis | The following table sets forth by level within the fair value hierarchy, the fair value of the Company's available-for-sale marketable securities measured on a recurring basis, excluding cash and money market funds: September 30, 2019 Level 1 Level 2 Level 3 Fair Value (in thousands) Commercial paper $ — $ 12,299 $ — $ 12,299 U.S. government agencies — 216,140 — 216,140 Corporate bonds — 62,711 — 62,711 Asset-backed securities — 41,135 — 41,135 Total $ — $ 332,285 $ — $ 332,285 December 31, 2018 Level 1 Level 2 Level 3 Fair Value (in thousands) Commercial paper $ — $ 3,237 $ — $ 3,237 U.S. government agencies — 222,400 — 222,400 Corporate bonds — 65,854 — 65,854 Asset-backed securities — 33,359 — 33,359 Total $ — $ 324,850 $ — $ 324,850 |
Schedule of Available-for-Sale Securities by Contractual Maturity | The following summarizes the fair value of marketable securities classified as available-for-sale by contractual, or effective, maturity: September 30, 2019 Mature within One Year Mature after One Year through Two Years Mature over Two Years Fair Value (in thousands) Commercial paper $ 12,299 $ — $ — $ 12,299 U.S. government agencies 187,883 13,527 14,730 216,140 Corporate bonds 30,100 21,330 11,281 62,711 Asset-backed securities 1,052 14,824 25,259 41,135 Total $ 231,334 $ 49,681 $ 51,270 $ 332,285 |
Summary of Gains (Losses) Recognized From Forward Contracts and Other Foreign Currency Transactions | The following summarizes the gains (losses) recognized in other income (expense), net on the condensed consolidated statement of operations, from forward contracts and other foreign currency transactions: Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 (in thousands) Net gain (loss) from non-designated forward contracts $ 642 $ (61 ) $ 720 $ 253 Other foreign currency transactions gain (loss) (906 ) (378 ) (851 ) (927 ) Total foreign exchange gain (loss), net $ (264 ) $ (439 ) $ (131 ) $ (674 ) |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment, net | Property and equipment, net, which includes assets under finance lease, consists of the following: September 30, December 31, 2019 2018 (in thousands) Computer equipment $ 108,639 $ 93,530 Computer software 26,114 26,030 Furniture, fixtures and equipment 5,966 5,814 Finance leases - right of use asset 3,503 3,503 Scanner appliances 15,564 15,356 Leasehold improvements 16,579 16,439 Total property and equipment 176,365 160,672 Less: accumulated depreciation and amortization (117,660 ) (99,230 ) Property and equipment, net $ 58,705 $ 61,442 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Commission asset balances | Commission asset balances are as follows (in thousands): September 30, 2019 December 31, 2018 Commission asset, current $ 1,975 $ 1,480 Commission asset, noncurrent $ 6,090 $ 4,692 |
Contract liabilities | |
Accounts receivable, net | |
Expected revenue from contracts | The following table sets forth the expected revenue from all remaining performance obligations as of September 30, 2019 (in thousands): Total Expected Revenue 2019 (remaining three months) $ 20,017 2020 55,826 2021 27,277 2022 7,180 2023 1,439 2024 and thereafter 402 Total $ 112,141 |
Revenue by sales channel | Revenues by sales channel are as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Direct $ 47,997 $ 41,950 $ 136,708 $ 121,274 Partner 34,674 29,708 100,235 83,415 Total $ 82,671 $ 71,658 $ 236,943 $ 204,689 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets, Net (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Carrying value of intangible assets | The carrying values of intangible assets are as follows (in thousands, except for years): September 30, 2019 Weighted Average Life (Years) Weighted Average Remaining Life (Years) Cost Accumulated Amortization Net Book Value Developed technology 5 3.0 $ 26,356 $ (8,570 ) $ 17,786 Patent licenses 14 4.9 1,387 (897 ) 490 Total intangibles subject to amortization $ 27,743 $ (9,467 ) 18,276 Intangible assets not subject to amortization 40 Total intangible assets, net $ 18,316 December 31, 2018 Weighted Average Life (Years) Weighted Average Remaining Life (Years) Cost Accumulated Amortization Net Book Value Developed technology 5 3.8 $ 25,456 $ (4,085 ) $ 21,371 Patent Licenses 14 5.9 1,387 (822 ) 565 Total intangibles subject to amortization $ 26,843 $ (4,907 ) 21,936 Intangible assets not subject to amortization 40 Total intangible assets, net $ 21,976 |
Intangible assets future periods amortization expense | As of September 30, 2019 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Assets And Liabilities, Lease [Table Text Block] | The table below presents the lease-related assets and liabilities recorded on the balance sheet. September 30, (in thousands) Classification on the Balance Sheet 2019 Assets Operating lease assets Operating lease - right of use asset $ 27,043 Finance lease assets Property and equipment, net 1,591 Total lease assets $ 28,634 Liabilities Current Operating Operating lease liabilities, current $ 6,937 Finance Accrued liabilities 528 Noncurrent Operating Operating lease liabilities, noncurrent 30,696 Finance Other noncurrent liabilities 85 Total lease liabilities $ 38,246 |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | The following are the minimum annual lease payments due under these leases at September 30, 2019 (in thousands): Operating Leases Finance Leases (in thousands) 2019 (remaining three months) $ 2,292 $ 443 2020 8,037 130 2021 6,530 54 2022 4,657 — 2023 4,298 — 2024 and thereafter 19,299 — Total minimum lease payments 45,113 627 Less: amount representing interest (7,480 ) (14 ) Present value of minimum payments 37,633 613 Less: current portion (6,937 ) (528 ) Lease obligations, noncurrent $ 30,696 $ 85 |
Finance Lease, Liability, Maturity [Table Text Block] | The following are the minimum annual lease payments due under these leases at September 30, 2019 (in thousands): Operating Leases Finance Leases (in thousands) 2019 (remaining three months) $ 2,292 $ 443 2020 8,037 130 2021 6,530 54 2022 4,657 — 2023 4,298 — 2024 and thereafter 19,299 — Total minimum lease payments 45,113 627 Less: amount representing interest (7,480 ) (14 ) Present value of minimum payments 37,633 613 Less: current portion (6,937 ) (528 ) Lease obligations, noncurrent $ 30,696 $ 85 |
Lease, Cost [Table Text Block] | The weighted average remaining lease term and the weighted average discount rate of our leases were as follows: September 30, 2019 Weighted average remaining lease term (years) Operating leases 7.1 Finance leases 0.8 Weighted average discount rates Operating leases 4.6 % Finance leases 5.0 % |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Employee stock-based compensation | The following table shows a summary of the stock-based compensation expense included in the condensed consolidated statements of operations for the three and nine months ended September 30, 2019 and 2018 : Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 (in thousands) Cost of revenues $ 577 $ 625 $ 1,674 $ 1,888 Research and development 2,831 1,937 7,875 5,754 Sales and marketing 1,459 1,163 3,590 3,669 General and administrative 3,516 3,033 12,024 11,361 Total stock-based compensation $ 8,383 $ 6,758 $ 25,163 $ 22,672 |
Stock option activity | A summary of the Company’s stock option activity is as follows: Outstanding Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value (in thousands) Balance as of December 31, 2018 3,429,309 $ 31.79 6.4 $ 149,935 Granted 260,175 $ 90.72 Exercised (412,910 ) $ 26.67 Canceled (120,799 ) $ 67.98 Balance as of September 30, 2019 3,155,775 $ 35.93 6.0 $ 130,529 Vested and expected to vest - September 30, 2019 3,010,578 $ 33.96 5.9 $ 129,358 Exercisable - September 30, 2019 2,464,112 $ 27.60 5.4 $ 118,835 |
Restricted stock units activity | A summary of the Company’s RSU activity is as follows: Outstanding RSUs Weighted Average Grant Date Fair Value Per Share Balance as of December 31, 2018 1,226,883 $ 55.71 Granted 233,088 $ 83.41 Vested (329,561 ) $ 52.92 Canceled (128,132 ) $ 63.04 Balance as of September 30, 2019 1,002,278 $ 62.16 Outstanding and expected to vest - September 30, 2019 763,526 $ 60.77 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The computations for basic and diluted net income per share are as follows: Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 (in thousands, except per share data) Numerator: Net income $ 19,174 $ 23,469 $ 48,672 $ 42,904 Denominator: Weighted-average shares used in computing net income per share: Basic 39,014 39,170 39,099 38,907 Effect of potentially dilutive securities: Common stock options 1,783 2,463 1,882 2,555 Restricted stock units 365 564 466 651 Diluted 41,162 42,197 41,447 42,113 Net income per share: Basic $ 0.49 $ 0.60 $ 1.24 $ 1.10 Diluted $ 0.47 $ 0.56 $ 1.17 $ 1.02 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | Potentially dilutive securities not included in the calculation of diluted net income per share because doing so would be anti-dilutive are as follows: Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 (in thousands) Common stock options 462 167 408 129 Restricted stock units 51 39 53 18 513 206 461 147 |
Segment Information and Infor_2
Segment Information and Information about Geographic Area (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Revenues be geographic area | Revenues by sales channel are as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Direct $ 47,997 $ 41,950 $ 136,708 $ 121,274 Partner 34,674 29,708 100,235 83,415 Total $ 82,671 $ 71,658 $ 236,943 $ 204,689 |
Revenues and property and equipment, net, by geographic area | ds): Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 United States $ 53,132 $ 47,336 $ 152,457 $ 137,449 Foreign 29,539 24,322 84,486 67,240 Total $ 82,671 $ 71,658 $ 236,943 $ 204,689 |
The Company and Summary of Si_3
The Company and Summary of Significant Accounting Policies (Details) $ in Thousands, £ in Millions | Jan. 01, 2019USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019GBP (£) | Sep. 30, 2019USD ($) | Dec. 31, 2018USD ($) |
Reclassification | ||||||||
Operating Lease, Right-of-Use Asset | $ 27,043 | |||||||
Share-based Compensation | $ 25,163 | $ 22,672 | ||||||
Capitalization of internally developed software costs | $ 100 | $ 500 | ||||||
Capitalized Computer Software, Unamortized | 1,600 | $ 1,200 | ||||||
Amortization expense for capitalized internally developed software | $ 100 | |||||||
Investment in privately held company | 2,500 | 2,500 | ||||||
Retained earnings | 13,335 | 27,964 | ||||||
Restricted cash | $ 1,200 | $ 1,200 | 1,200 | $ 1,200 | ||||
Operating Lease, Liability | 37,633 | |||||||
Capitalized Computer Software, Amortization Period | 3 years | |||||||
Advance Royalties | $ 600 | |||||||
Operating Leases | ||||||||
Reclassification | ||||||||
Operating Lease, Right-of-Use Asset | $ 30,800 | |||||||
Operating Lease, Liability | 41,600 | |||||||
Deferred Rent Receivables, Net | (3,900) | |||||||
Tenant Improvement Allowance | $ 6,900 | |||||||
Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | Foreign Currency Contract, Euro [Member] | ||||||||
Reclassification | ||||||||
Derivative, notional amount | £ | £ 19.9 | |||||||
Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | Foreign Currency Contract, Pound [Member] | ||||||||
Reclassification | ||||||||
Derivative, notional amount | £ | £ 9.8 | |||||||
Performance Shares [Member] | ||||||||
Reclassification | ||||||||
Share-based Compensation | $ 200 | $ 700 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Cash and Cash Equivalents, Available-for-sale Securities Reconciliation (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Cash and Cash Equivalents, Fair Value Disclosure | $ 75,615 | |
Unrealized Gains | 1,182 | $ 22 |
Unrealized (Losses) | (20) | (567) |
Fair Value | 398,987 | 365,876 |
Debt Securities, Available-for-sale, Amortized Cost | 397,825 | 366,421 |
Cash and cash equivalents: | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 41,026 | |
Current Assets [Member] | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Unrealized Gains | 306 | 9 |
Unrealized (Losses) | (14) | (193) |
Fair Value | 222,421 | 248,140 |
Debt Securities, Available-for-sale, Amortized Cost | 222,129 | 248,324 |
Long-term investments | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Unrealized Gains | 876 | 13 |
Unrealized (Losses) | (6) | (374) |
Fair Value | 100,951 | 76,710 |
Debt Securities, Available-for-sale, Amortized Cost | 100,081 | 77,071 |
Asset backed securities | Current Assets [Member] | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Unrealized Gains | 1 | 0 |
Unrealized (Losses) | 0 | (15) |
Fair Value | 1,052 | 10,432 |
Debt Securities, Available-for-sale, Amortized Cost | 1,051 | 10,447 |
Asset backed securities | Long-term investments | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Unrealized Gains | 252 | 10 |
Unrealized (Losses) | 0 | (28) |
Fair Value | 40,083 | 22,927 |
Debt Securities, Available-for-sale, Amortized Cost | 39,831 | 22,945 |
Commercial paper | Cash and cash equivalents: | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Fair Value | 8,913 | |
Available-for-sale Securities, Amortized Cost Basis | 8,913 | |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 0 | |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | |
Commercial paper | Short-term investments | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Fair Value | 3,386 | |
Available-for-sale Securities, Amortized Cost Basis | 3,386 | |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 0 | |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | |
Commercial paper | Current Assets [Member] | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Unrealized Gains | 0 | |
Unrealized (Losses) | 0 | |
Fair Value | 3,237 | |
Debt Securities, Available-for-sale, Amortized Cost | 3,237 | |
Corporate bonds | Current Assets [Member] | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Unrealized Gains | 70 | 0 |
Unrealized (Losses) | (9) | (84) |
Fair Value | 30,099 | 30,822 |
Debt Securities, Available-for-sale, Amortized Cost | 30,038 | 30,906 |
Corporate bonds | Long-term investments | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Unrealized Gains | 242 | 3 |
Unrealized (Losses) | (6) | (293) |
Fair Value | 32,612 | 35,032 |
Debt Securities, Available-for-sale, Amortized Cost | 32,376 | 35,322 |
US government agencies | Current Assets [Member] | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Unrealized Gains | 235 | 9 |
Unrealized (Losses) | (5) | (94) |
Fair Value | 187,884 | 203,649 |
Debt Securities, Available-for-sale, Amortized Cost | 187,654 | 203,734 |
US government agencies | Long-term investments | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Unrealized Gains | 382 | 0 |
Unrealized (Losses) | 0 | (53) |
Fair Value | 28,256 | 18,751 |
Debt Securities, Available-for-sale, Amortized Cost | 27,874 | 18,804 |
Cash Equivalents [Member] | Money market funds | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 249 | 113 |
Cash [Member] | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Cash and Cash Equivalents, Fair Value Disclosure | $ 66,453 | $ 40,913 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Changes in Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Convertible Debt, Fair Value Disclosures | $ 600 | |||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||
Beginning balance | 383,598 | $ 373,403 | $ 357,989 | $ 365,239 | $ 366,319 | $ 343,544 | $ 357,989 | $ 343,544 |
Change in net unrealized gain, net of tax | 22 | 69 | 1,444 | (178) | ||||
Amounts reclassified for net realized gain included in net income | (18) | 154 | 25 | 249 | ||||
Other comprehensive income (loss), net of tax | 1,031 | 930 | 896 | 69 | 144 | (391) | 2,857 | (178) |
Ending balance | 361,023 | $ 383,598 | 373,403 | $ 374,140 | $ 365,239 | $ 366,319 | 361,023 | $ 374,140 |
Unrealized Gain (Loss) on Investments | ||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||
Beginning balance | $ (545) | (545) | ||||||
Change in net unrealized gain, net of tax | 1,419 | |||||||
Amounts reclassified for net realized gain included in net income | 25 | |||||||
Other comprehensive income (loss), net of tax | 1,444 | |||||||
Ending balance | $ 899 | $ 899 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Fair Value Hierarchy (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | $ 332,285 | |
Level 1 | Recurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 0 | $ 0 |
Level 2 | Recurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 332,285 | 324,850 |
Level 3 | Recurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 0 | 0 |
Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 12,299 | |
Commercial paper | Level 1 | Recurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | |
Debt Securities, Available-for-sale | 0 | |
Commercial paper | Level 2 | Recurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 12,299 | |
Debt Securities, Available-for-sale | 3,237 | |
Commercial paper | Level 3 | Recurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | |
Debt Securities, Available-for-sale | 0 | |
US government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 216,140 | |
US government agencies | Level 1 | Recurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 0 | 0 |
US government agencies | Level 2 | Recurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 216,140 | 222,400 |
US government agencies | Level 3 | Recurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 0 | 0 |
Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 62,711 | |
Corporate bonds | Level 1 | Recurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 0 | 0 |
Corporate bonds | Level 2 | Recurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 62,711 | 65,854 |
Corporate bonds | Level 3 | Recurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 0 | 0 |
Asset backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 41,135 | |
Asset backed securities | Level 1 | Recurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 0 | 0 |
Asset backed securities | Level 2 | Recurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 41,135 | 33,359 |
Asset backed securities | Level 3 | Recurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 0 | 0 |
Fair Value | Recurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 332,285 | 324,850 |
Fair Value | Commercial paper | Recurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 12,299 | |
Debt Securities, Available-for-sale | 3,237 | |
Fair Value | US government agencies | Recurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 216,140 | 222,400 |
Fair Value | Corporate bonds | Recurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 62,711 | 65,854 |
Fair Value | Asset backed securities | Recurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | $ 41,135 | $ 33,359 |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments - Contractual Maturity (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Debt Securities, Available-for-sale [Line Items] | |
Available-for-sale Securities, Debt and Equity Maturities, Next Twelve Months, Fair Value | $ 231,334 |
Available-for-sale Securities, Debt and Equity Maturities, Year One through Two, Fair Value | 49,681 |
Available-for-sale Securities, Debt and Equity Maturities, After Year Two, Fair Value | 51,270 |
Debt Securities, Available-for-sale | 332,285 |
Commercial paper | |
Debt Securities, Available-for-sale [Line Items] | |
Available-for-sale Securities, Debt and Equity Maturities, Next Twelve Months, Fair Value | 12,299 |
Available-for-sale Securities, Debt and Equity Maturities, Year One through Two, Fair Value | 0 |
Available-for-sale Securities, Debt and Equity Maturities, After Year Two, Fair Value | 0 |
US government agencies | |
Debt Securities, Available-for-sale [Line Items] | |
Available-for-sale Securities, Debt and Equity Maturities, Next Twelve Months, Fair Value | 187,883 |
Available-for-sale Securities, Debt and Equity Maturities, Year One through Two, Fair Value | 13,527 |
Available-for-sale Securities, Debt and Equity Maturities, After Year Two, Fair Value | 14,730 |
Debt Securities, Available-for-sale | 216,140 |
Corporate bonds | |
Debt Securities, Available-for-sale [Line Items] | |
Available-for-sale Securities, Debt and Equity Maturities, Next Twelve Months, Fair Value | 30,100 |
Available-for-sale Securities, Debt and Equity Maturities, Year One through Two, Fair Value | 21,330 |
Available-for-sale Securities, Debt and Equity Maturities, After Year Two, Fair Value | 11,281 |
Debt Securities, Available-for-sale | 62,711 |
Asset backed securities | |
Debt Securities, Available-for-sale [Line Items] | |
Available-for-sale Securities, Debt and Equity Maturities, Next Twelve Months, Fair Value | 1,052 |
Available-for-sale Securities, Debt and Equity Maturities, Year One through Two, Fair Value | 14,824 |
Available-for-sale Securities, Debt and Equity Maturities, After Year Two, Fair Value | 25,259 |
Debt Securities, Available-for-sale | $ 41,135 |
Fair Value of Financial Instr_7
Fair Value of Financial Instruments - Derivatives (Details) € in Millions, £ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2019GBP (£)contract | Dec. 31, 2018GBP (£)contract | Dec. 31, 2018EUR (€)contract | Dec. 31, 2018USD ($)contract | |
Derivatives, Fair Value [Line Items] | ||||||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification and Tax | $ | $ 1,000,000 | $ 1,400,000 | ||||
Foreign currency contract, asset, fair value disclosure | $ | $ 0 | |||||
Forward Contracts | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative, number of instruments held | contract | 4 | 2 | 2 | 2 | ||
Derivative, notional amount | £ 4.1 | € 12.9 | ||||
Foreign Exchange Contract [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative, number of instruments held | contract | 26 | |||||
Not Designated as Hedging Instrument [Member] | Foreign Currency Contract, Euro [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative, notional amount | £ 9 | 16 | ||||
Not Designated as Hedging Instrument [Member] | Foreign Currency Contract, Pound [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative, notional amount | 4 | £ 6.3 | ||||
Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | Foreign Currency Contract, Euro [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative, notional amount | 19.9 | |||||
Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | Foreign Currency Contract, Pound [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative, notional amount | £ 9.8 |
Fair Value of Financial Instr_8
Fair Value of Financial Instruments - Gains (Losses) Recognized (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Other foreign currency transactions gain (loss) | $ (906) | $ (378) | $ (851) | $ (927) |
Total foreign exchange gain (loss), net | (264) | (439) | (131) | (674) |
Forward Contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net gain (loss) from non-designated forward contracts | $ 642 | $ (61) | $ 720 | $ 253 |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2018 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | ||||
Property and equipment | $ 176,365 | $ 160,672 | ||
Finance leases - right of use asset | 1,591 | |||
Less: accumulated depreciation and amortization | (117,660) | (99,230) | ||
Property and equipment, net | 58,705 | 61,442 | ||
Depreciation and amortization expense | 6,200 | $ 6,100 | $ 18,900 | |
Capital leases, accumulated depreciation | 1,900 | |||
Computer equipment | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment | 108,639 | 93,530 | ||
Computer software | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment | 26,114 | 26,030 | ||
Furniture, fixtures and equipment | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment | 5,966 | 5,814 | ||
Finance leases - right of use asset | ||||
Property, Plant and Equipment [Line Items] | ||||
Finance leases - right of use asset | 3,503 | 3,503 | ||
Scanner appliances | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment | 15,564 | 15,356 | ||
Scanner appliances and other computer equipment subject to subscription | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, net | 5,000 | 7,900 | ||
Scanner appliances and other computer equipment not placed in service | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment | 600 | 1,800 | ||
Leasehold improvements | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment | $ 16,579 | $ 16,439 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Capitalized Contract Cost, Amortization Period | 5 years | 5 years | |||
Retained earnings | $ 13,335 | $ 13,335 | $ 27,964 | ||
Amortization of commissions assets | 500 | $ 300 | 1,400 | $ 800 | |
Revenue recognized | 82,671 | 71,658 | 236,943 | 204,689 | |
Subscription Revenue | |||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Revenue recognized | $ 31,300 | $ 28,400 | $ 144,600 | $ 126,600 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Commission Asset Balances (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Revenue from Contract with Customer [Abstract] | ||
Commission asset, current | $ 1,975 | $ 1,480 |
Commission asset, noncurrent | $ 6,090 | $ 4,692 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Unbilled contracts (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Revenue from Contract with Customer [Abstract] | |
Revenue, Remaining Performance Obligation, Amount | $ 112,141 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-10-01 | |
Revenue from Contract with Customer [Abstract] | |
Revenue, Remaining Performance Obligation, Amount | $ 20,017 |
Disaggregation of Revenue [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 3 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Revenue, Remaining Performance Obligation, Amount | $ 55,826 |
Disaggregation of Revenue [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Revenue, Remaining Performance Obligation, Amount | $ 27,277 |
Disaggregation of Revenue [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 2 years |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Revenue, Remaining Performance Obligation, Amount | $ 7,180 |
Disaggregation of Revenue [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 3 years |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Revenue, Remaining Performance Obligation, Amount | $ 1,439 |
Disaggregation of Revenue [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 4 years |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Revenue, Remaining Performance Obligation, Amount | $ 402 |
Disaggregation of Revenue [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 5 years |
Revenue from Contracts with C_6
Revenue from Contracts with Customers - Revenue by sales channel (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 82,671 | $ 71,658 | $ 236,943 | $ 204,689 |
Direct | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 47,997 | 41,950 | 136,708 | 121,274 |
Partner | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 34,674 | $ 29,708 | $ 100,235 | $ 83,415 |
Business Combination - Narrativ
Business Combination - Narrative (Details) - USD ($) $ in Thousands | Jan. 10, 2019 | Sep. 30, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | |||
Goodwill | $ 7,447 | $ 7,225 | |
1Mobility | |||
Business Acquisition [Line Items] | |||
Total purchase price | $ 1,000 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 900 | ||
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | 200 | ||
Goodwill | $ 100 | ||
Estimated useful life of technology-based intangible assets | 15 years | ||
Developed Technology [Member] | |||
Business Acquisition [Line Items] | |||
Estimated useful life of technology-based intangible assets | 4 years |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets, Net - Carrying Value of Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2018 | |
Schedule of Goodwill and Intangible Assets [Line Items] | ||||||
Cost | $ 27,743 | $ 27,743 | $ 26,843 | |||
Accumulated Amortization | (9,467) | (9,467) | (4,907) | |||
Net Book Value | 18,276 | 18,276 | 21,936 | |||
Intangible assets not subject to amortization | 40 | 40 | 40 | |||
Total intangible assets, net | 18,316 | 18,316 | 21,976 | |||
Amortization of intangible assets | 1,500 | $ 900 | 4,600 | $ 2,400 | ||
Goodwill | 7,447 | $ 7,447 | 7,225 | |||
Developed technology | ||||||
Schedule of Goodwill and Intangible Assets [Line Items] | ||||||
Weighted Average Life (Years) | 5 years | |||||
Weighted Average Remaining Life (Years) | 3 years | 3 years 9 months 18 days | ||||
Cost | 26,356 | $ 26,356 | 25,456 | |||
Accumulated Amortization | (8,570) | (8,570) | (4,085) | |||
Net Book Value | 17,786 | $ 17,786 | 21,371 | |||
Patent licenses | ||||||
Schedule of Goodwill and Intangible Assets [Line Items] | ||||||
Weighted Average Life (Years) | 14 years | |||||
Weighted Average Remaining Life (Years) | 4 years 10 months 24 days | 5 years 10 months 24 days | ||||
Cost | 1,387 | $ 1,387 | 1,387 | |||
Accumulated Amortization | (897) | (897) | (822) | |||
Net Book Value | $ 490 | $ 490 | $ 565 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets, Net - Future Amortization (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2019 (remaining three months) | $ 1,521 | |
2018 | 6,081 | |
2019 | 6,081 | |
2020 | 4,427 | |
2021 | 100 | |
2024 and thereafter | 66 | |
Net Book Value | $ 18,276 | $ 21,936 |
Leases (Details)
Leases (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Jan. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | Jan. 01, 2018 | |
Lessee, Lease, Description [Line Items] | |||||||
Arrangement interest rate | 5.00% | ||||||
Lease, Expense | $ 1,800,000 | $ 1,400,000 | $ 5,300,000 | $ 3,900,000 | |||
Lessee, Operating Lease, Liability, Payments, Remainder of Fiscal Year | 2,292,000 | 2,292,000 | |||||
Operating Lease, Right-of-Use Asset | $ 27,043,000 | $ 27,043,000 | |||||
Operating Lease, Weighted Average Remaining Lease Term | 7 years 1 month 6 days | 7 years 1 month 6 days | |||||
Finance Lease, Weighted Average Remaining Lease Term | 9 months 18 days | 9 months 18 days | |||||
Operating Lease, Weighted Average Discount Rate, Percent | 4.60% | 4.60% | |||||
Finance Lease, Weighted Average Discount Rate, Percent | 5.00% | 5.00% | |||||
Finance leases - right of use asset | $ 1,591,000 | $ 1,591,000 | |||||
Lease, Right-of-Use Asset | 28,634,000 | 28,634,000 | |||||
Operating Lease, Liability, Current | (6,937,000) | (6,937,000) | $ 0 | ||||
Finance Lease, Liability, Current | (528,000) | (528,000) | |||||
Operating Lease, Liability, Noncurrent | 30,696,000 | 30,696,000 | |||||
Finance Lease, Liability, Noncurrent | 85,000 | 85,000 | |||||
Lease, Liability | 38,246,000 | 38,246,000 | |||||
Finance Lease, Liability, Payments, Remainder of Fiscal Year | 443,000 | 443,000 | |||||
Lessee, Operating Lease, Liability, Payments, Due Year Two | 8,037,000 | 8,037,000 | |||||
Finance Lease, Liability, Payments, Due Year Two | 130,000 | 130,000 | |||||
Lessee, Operating Lease, Liability, Payments, Due Year Three | 6,530,000 | 6,530,000 | |||||
Finance Lease, Liability, Payments, Due Year Three | 54,000 | 54,000 | |||||
Lessee, Operating Lease, Liability, Payments, Due Year Four | 4,657,000 | 4,657,000 | |||||
Finance Lease, Liability, Payments, Due Year Four | 0 | 0 | |||||
Lessee, Operating Lease, Liability, Payments, Due Year Five | 4,298,000 | 4,298,000 | |||||
Finance Lease, Liability, Payments, Due Year Five | 0 | 0 | |||||
Lessee, Operating Lease, Liability, Payments, Due after Year Five | 19,299,000 | 19,299,000 | |||||
Finance Lease, Liability, Payments, Due after Year Five | 0 | 0 | |||||
Lessee, Operating Lease, Liability, Payments, Due | 45,113,000 | 45,113,000 | |||||
Finance Lease, Liability, Payments, Due | 627,000 | 627,000 | |||||
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | (7,480,000) | (7,480,000) | |||||
Finance Lease, Liability, Undiscounted Excess Amount | (14,000) | (14,000) | |||||
Operating Lease, Liability | 37,633,000 | 37,633,000 | |||||
Finance Lease, Liability | 613,000 | 613,000 | $ 3,500,000 | ||||
Accrued Liabilities [Member] | |||||||
Lessee, Lease, Description [Line Items] | |||||||
Finance Lease, Liability, Current | $ (528,000) | $ (528,000) |
Commitments and Contingencies
Commitments and Contingencies - Lease Narrative (Details) | 1 Months Ended |
Jan. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Arrangement interest rate | 5.00% |
Stock-based Compensation - Sto
Stock-based Compensation - Stock Options (Details) | Sep. 30, 2019shares |
2012 Equity Incentive Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 11,800,000 |
Number of shares available for grant | 5,500,000 |
2000 Equity Incentive Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares available for grant | 0 |
Stock-based Compensation - Exp
Stock-based Compensation - Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total employee stock-based compensation | $ 8,383 | $ 6,758 | $ 25,163 | $ 22,672 |
Stock Options | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Unrecognized employee compensation cost | 12,600 | $ 12,600 | ||
Unrecognized employee compensation cost, period for recognition | 2 years 2 months 12 days | |||
Restricted Stock Units | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Unrecognized employee compensation cost | 46,300 | $ 46,300 | ||
Unrecognized employee compensation cost, period for recognition | 2 years 3 months 18 days | |||
Cost of revenues | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total employee stock-based compensation | 577 | 625 | $ 1,674 | 1,888 |
Research and development | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total employee stock-based compensation | 2,831 | 1,937 | 7,875 | 5,754 |
Sales and marketing | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total employee stock-based compensation | 1,459 | 1,163 | 3,590 | 3,669 |
General and administrative | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total employee stock-based compensation | $ 3,516 | $ 3,033 | $ 12,024 | $ 11,361 |
Stock-based Compensation - S_2
Stock-based Compensation - Stock Option Plan Activity (Details) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019USD ($)$ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | |
Outstanding Shares | ||
Beginning balance (in shares) | shares | 3,429,309 | |
Granted (in shares) | shares | 260,175 | |
Exercised (in shares) | shares | (412,910) | |
Canceled (in shares) | shares | (120,799) | |
Ending balance (in shares) | shares | 3,155,775 | 3,429,309 |
Vested and expected to vest (in shares) | shares | 3,010,578 | |
Exercisable (in shares) | shares | 2,464,112 | |
Weighted Average Exercise Price | ||
Weighted average exercise price, Beginning balance (in dollars per share) | $ / shares | $ 31.79 | |
Weighted average exercise price, granted (in dollars per share) | $ / shares | 90.72 | |
Weighted average exercise price, exercised (in dollars per share) | $ / shares | 26.67 | |
Weighted average exercise price, canceled (in dollars per share) | $ / shares | 67.98 | |
Weighted average exercise price, Ending balance (in dollars per share) | $ / shares | 35.93 | $ 31.79 |
Weighted average exercise price, Vested and expected to vest (in dollars per share) | $ / shares | 33.96 | |
Weighted average exercise price, Exercisable (in dollars per share) | $ / shares | $ 27.60 | |
Weighted Average Remaining Contractual Life | ||
Weighted average remaining contractual life (in years) | 6 years | 6 years 4 months 24 days |
Weighted Average Remaining Contractual Life (Years), Vested and Expected to Vest | 5 years 10 months 24 days | |
Weighted Average Remaining Contractual Life (Years), Exercisable | 5 years 4 months 24 days | |
Aggregate Intrinsic Value | ||
Aggregate intrinsic value | $ | $ 130,529 | $ 149,935 |
Aggregate intrinsic value, Vested and expected to vest | $ | 129,358 | |
Aggregate intrinsic value, Exercisable | $ | $ 118,835 |
Stock-based Compensation - Res
Stock-based Compensation - Restricted Stock (Details) - Restricted Stock Units | 9 Months Ended |
Sep. 30, 2019$ / sharesshares | |
Outstanding RSUs | |
Beginning balance (in shares) | shares | 1,226,883 |
Granted (in shares) | shares | 233,088 |
Released (in shares) | shares | (329,561) |
Canceled (in shares) | shares | (128,132) |
Ending balance (in shares) | shares | 1,002,278 |
Outstanding and expected to vest (in shares) | shares | 763,526 |
Weighted Average Fair Value | |
Beginning balance (usd per share) | $ / shares | $ 55.71 |
Granted (usd per share) | $ / shares | 83.41 |
Released (usd per share) | $ / shares | 52.92 |
Canceled (usd per share) | $ / shares | 63.04 |
Ending balance (usd per share) | $ / shares | 62.16 |
Outstanding and expected to vest (usd per share) | $ / shares | $ 60.77 |
Net Income Per Share (Details)
Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Numerator: | ||||||||
Net income | $ 19,174 | $ 16,232 | $ 13,266 | $ 23,469 | $ 10,293 | $ 9,142 | $ 48,672 | $ 42,904 |
Denominator: | ||||||||
Basic (shares) | 39,014 | 39,170 | 39,099 | 38,907 | ||||
Common stock options (shares) | 1,783 | 2,463 | 1,882 | 2,555 | ||||
Restricted stock units (shares) | 365 | 564 | 466 | 651 | ||||
Diluted (shares) | 41,162 | 42,197 | 41,447 | 42,113 | ||||
Basic (USD per share) | $ 0.49 | $ 0.60 | $ 1.24 | $ 1.10 | ||||
Diluted (USD per share) | $ 0.47 | $ 0.56 | $ 1.17 | $ 1.02 | ||||
Antidilutive Securities | ||||||||
Antidilutive securities (shares) | 513 | 206 | 461 | 147 | ||||
Stock Options | ||||||||
Antidilutive Securities | ||||||||
Antidilutive securities (shares) | 462 | 167 | 408 | 129 | ||||
Restricted Stock Units | ||||||||
Antidilutive Securities | ||||||||
Antidilutive securities (shares) | 51 | 39 | 53 | 18 |
Stockholder's Equity (Details)
Stockholder's Equity (Details) - USD ($) | 9 Months Ended | ||
Sep. 30, 2019 | Oct. 30, 2018 | Feb. 05, 2018 | |
Equity [Abstract] | |||
Share repurchase program, authorized amount | $ 100,000,000 | $ 100,000,000 | |
Shares repurchased during period (in shares) | 881,455 | ||
Shares repurchased during period, value | $ 73,900,000 | ||
Remaining authorized amount | $ 41,100,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||||
Provision (benefit) for income taxes | $ (5,161) | $ 4,236 | $ (10,009) | $ 2,241 | |
Effective tax rate | 21.20% | (22.10%) | 17.10% | (5.50%) | |
Unrecognized Tax Benefits | $ 8,000 | $ 8,000 | $ 6,400 | ||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $ 4,400 | $ 4,400 | $ 3,500 |
Segment Information and Infor_3
Segment Information and Information about Geographic Area - Revenue by geographic area (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 82,671 | $ 71,658 | $ 236,943 | $ 204,689 |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 53,132 | 47,336 | 152,457 | 137,449 |
Foreign | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 29,539 | $ 24,322 | $ 84,486 | $ 67,240 |
Segment Information and Infor_4
Segment Information and Information about Geographic Area - Property and Equipment, net (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019USD ($)segment | Dec. 31, 2018USD ($) | |
Segment Reporting Information [Line Items] | ||
Number of operating segments (in segment) | segment | 1 | |
Property and equipment, net | $ 58,705 | $ 61,442 |
United States | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | 47,201 | 51,587 |
Other | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | $ 11,504 | $ 9,855 |
Uncategorized Items - qlys-2019
Label | Element | Value |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 2,711,000 |
Retained Earnings [Member] | ||
Retained Earnings (Accumulated Deficit) | us-gaap_RetainedEarningsAccumulatedDeficit | $ 2,711,000 |