Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 30, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | INGN | |
Entity Registrant Name | Inogen Inc | |
Entity Central Index Key | 0001294133 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 21,929,157 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets | ||
Cash and cash equivalents | $ 190,236 | $ 196,634 |
Marketable securities | 49,011 | 43,715 |
Accounts receivable, net | 41,525 | 37,041 |
Inventories, net | 28,820 | 27,071 |
Deferred cost of revenue | 346 | 359 |
Income tax receivable | 2,555 | 2,655 |
Prepaid expenses and other current assets | 9,263 | 7,108 |
Total current assets | 321,756 | 314,583 |
Property and equipment | ||
Rental equipment, net | 41,996 | 43,038 |
Manufacturing equipment and tooling | 7,469 | 7,338 |
Computer equipment and software | 6,701 | 6,153 |
Furniture and equipment | 1,463 | 1,445 |
Leasehold improvements | 3,521 | 3,407 |
Land and building | 125 | 125 |
Construction in process | 3,432 | 3,128 |
Total property and equipment | 64,707 | 64,634 |
Less accumulated depreciation | (42,709) | (42,293) |
Property and equipment, net | 21,998 | 22,341 |
Goodwill | 2,212 | 2,257 |
Intangible assets, net | 3,411 | 3,755 |
Operating lease right-of-use asset | 5,936 | |
Deferred tax asset - noncurrent | 29,296 | 30,130 |
Other assets | 3,586 | 2,832 |
Total assets | 388,195 | 375,898 |
Current liabilities | ||
Accounts payable and accrued expenses | 24,731 | 26,786 |
Accrued payroll | 7,832 | 11,407 |
Warranty reserve - current | 3,734 | 3,549 |
Operating lease liability | 2,061 | |
Deferred revenue - current | 5,283 | 4,451 |
Income tax payable | 111 | 392 |
Total current liabilities | 43,752 | 46,585 |
Long-term liabilities | ||
Warranty reserve - noncurrent | 6,023 | 5,981 |
Operating lease liability - noncurrent | 4,920 | |
Deferred revenue - noncurrent | 11,379 | 11,844 |
Deferred tax liability - noncurrent | 227 | 232 |
Other noncurrent liabilities | 832 | |
Total liabilities | 66,301 | 65,474 |
Commitments and contingencies (Note 9) | ||
Stockholders' equity | ||
Common stock, $0.001 par value per share; 200,000,000 authorized; 21,931,342 and 21,778,632 shares issued and outstanding as of March 31, 2019 and December 31, 2018, respectively | 22 | 22 |
Additional paid-in capital | 255,226 | 249,194 |
Retained earnings | 65,786 | 60,484 |
Accumulated other comprehensive income | 860 | 724 |
Total stockholders' equity | 321,894 | 310,424 |
Total liabilities and stockholders' equity | $ 388,195 | $ 375,898 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2019 | Dec. 31, 2018 |
Statement Of Financial Position [Abstract] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 21,931,342 | 21,778,632 |
Common stock, shares outstanding | 21,931,342 | 21,778,632 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenue | ||
Sales revenue | $ 84,818 | $ 73,584 |
Rental revenue | 5,384 | 5,467 |
Total revenue | 90,202 | 79,051 |
Cost of revenue | ||
Cost of sales revenue | 42,067 | 36,948 |
Cost of rental revenue, including depreciation of $1,705 and $2,165, respectively | 3,726 | 4,376 |
Total cost of revenue | 45,793 | 41,324 |
Gross profit | ||
Gross profit-sales revenue | 42,751 | 36,636 |
Gross profit-rental revenue | 1,658 | 1,091 |
Total gross profit | 44,409 | 37,727 |
Operating expense | ||
Research and development | 1,669 | 1,416 |
Sales and marketing | 28,201 | 18,038 |
General and administrative | 9,681 | 9,573 |
Total operating expense | 39,551 | 29,027 |
Income from operations | 4,858 | 8,700 |
Other income (expense) | ||
Interest income | 1,334 | 543 |
Other income (expense) | (120) | 444 |
Total other income, net | 1,214 | 987 |
Income before provision (benefit) for income taxes | 6,072 | 9,687 |
Provision (benefit) for income taxes | 770 | (1,071) |
Net income | 5,302 | 10,758 |
Other comprehensive income (loss), net of tax | ||
Change in foreign currency translation adjustment | (137) | 108 |
Change in net unrealized gains (losses) on foreign currency hedging | 84 | (249) |
Less: reclassification adjustment for net (gains) losses included in net income | 176 | 172 |
Total net change in unrealized gains (losses) on foreign currency hedging | 260 | (77) |
Change in net unrealized gains (losses) on marketable securities | 13 | (19) |
Total other comprehensive income, net of tax | 136 | 12 |
Comprehensive income | $ 5,438 | $ 10,770 |
Basic net income per share attributable to common stockholders (Note 6) | $ 0.24 | $ 0.51 |
Diluted net income per share attributable to common stockholders (Note 6) | $ 0.24 | $ 0.48 |
Weighted-average number of shares used in calculating net income per share attributable to common stockholders: | ||
Basic common shares | 21,750,305 | 21,026,154 |
Diluted common shares | 22,534,885 | 22,295,213 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Statement [Abstract] | ||
Depreciation | $ 1,705 | $ 2,165 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive income |
Beginning Balance at Dec. 31, 2017 | $ 227,041 | $ 21 | $ 218,109 | $ 8,639 | $ 272 |
Beginning Balance at Dec. 31, 2017 | 20,976,350 | ||||
Stock-based compensation | 3,381 | 3,381 | |||
Employee stock purchases | 988 | 988 | |||
Employee stock purchases, shares | 12,013 | ||||
Restricted stock awards issued, shares | 53,052 | ||||
Vesting of restricted stock units, shares | 6,206 | ||||
Shares withheld related to net restricted stock settlement | (302) | (302) | |||
Shares withheld related to net restricted stock settlement, shares | (2,553) | ||||
Stock options exercised | 4,459 | 4,459 | |||
Stock options exercised, shares | 169,594 | ||||
Net income | 10,758 | 10,758 | |||
Other comprehensive income | 12 | 12 | |||
Ending Balance at Mar. 31, 2018 | 246,337 | $ 21 | 226,635 | 19,397 | 284 |
Ending Balance at Mar. 31, 2018 | 21,214,662 | ||||
Beginning Balance at Dec. 31, 2018 | 310,424 | $ 22 | 249,194 | 60,484 | 724 |
Beginning Balance at Dec. 31, 2018 | 21,778,632 | ||||
Stock-based compensation | 3,586 | 3,586 | |||
Employee stock purchases | 1,525 | 1,525 | |||
Employee stock purchases, shares | 16,767 | ||||
Restricted stock awards issued, shares | 66,944 | ||||
Vesting of restricted stock units | (59) | (59) | |||
Vesting of restricted stock units, shares | 11,265 | ||||
Shares withheld related to net restricted stock settlement | (655) | (655) | |||
Shares withheld related to net restricted stock settlement, shares | (12,045) | ||||
Stock options exercised | $ 1,635 | 1,635 | |||
Stock options exercised, shares | 69,779 | 69,779 | |||
Net income | $ 5,302 | 5,302 | |||
Other comprehensive income | 136 | 136 | |||
Ending Balance at Mar. 31, 2019 | $ 321,894 | $ 22 | $ 255,226 | $ 65,786 | $ 860 |
Ending Balance at Mar. 31, 2019 | 21,931,342 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash flows from operating activities | ||
Net income | $ 5,302 | $ 10,758 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 2,794 | 2,993 |
Loss on rental units and other fixed assets | 171 | 284 |
Gain on sale of former rental assets | (21) | (401) |
Provision for sales revenue returns and doubtful accounts | 4,428 | 4,920 |
Provision for rental revenue adjustments | 590 | 719 |
Provision for inventory losses | 456 | 73 |
Stock-based compensation expense | 3,586 | 3,381 |
Deferred income taxes | 834 | (1,798) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (9,517) | (9,206) |
Inventories | (2,897) | (4,327) |
Deferred cost of revenue | 13 | 26 |
Income tax receivable | 100 | 726 |
Prepaid expenses and other current assets | (2,156) | (1,192) |
Operating lease right-of-use asset | (5,936) | |
Other noncurrent assets | (491) | |
Accounts payable and accrued expenses | (1,974) | 3,928 |
Accrued payroll | (3,572) | (274) |
Warranty reserve | 227 | 1,074 |
Deferred revenue | 367 | 608 |
Income tax payable | (277) | (36) |
Operating lease liability | 6,981 | |
Other noncurrent liabilities | (832) | (16) |
Net cash provided by (used in) operating activities | (1,824) | 12,240 |
Cash flows from investing activities | ||
Purchases of marketable securities | (19,033) | (11,565) |
Maturities of marketable securities | 13,750 | 8,525 |
Investment in property and equipment | (933) | (2,075) |
Production and purchase of rental equipment | (781) | (1,447) |
Proceeds from sale of former assets | 49 | 573 |
Net cash used in investing activities | (6,948) | (5,989) |
Cash flows from financing activities | ||
Proceeds from stock options exercised | 1,635 | 4,459 |
Proceeds from employee stock purchases | 1,525 | 988 |
Payment of employment taxes related to release of restricted stock | (714) | (302) |
Net cash provided by financing activities | 2,446 | 5,145 |
Effect of exchange rates on cash | (72) | (65) |
Net increase (decrease) in cash and cash equivalents | (6,398) | 11,331 |
Cash and cash equivalents, beginning of period | 196,634 | 142,953 |
Cash and cash equivalents, end of period | 190,236 | 154,284 |
Supplemental disclosures of cash flow information | ||
Cash paid (received) during the period for income taxes, net of refunds received | 214 | (14) |
Supplemental disclosure of non-cash transactions | ||
Property and equipment in accounts payable and accrued liabilities | $ 194 | $ 93 |
Business Overview
Business Overview | 3 Months Ended |
Mar. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Business Overview | 1. Business overview Inogen, Inc. (Company or Inogen) was incorporated in Delaware on November 27, 2001. The Company is a medical technology company that primarily develops, manufactures and markets innovative portable oxygen concentrators used to deliver supplemental long-term oxygen therapy to patients suffering from chronic respiratory conditions. Traditionally, these patients have relied on stationary oxygen concentrator systems for use in the home and oxygen tanks or cylinders for mobile use, which the Company calls the delivery model. The tanks and cylinders must be delivered regularly and have a finite amount of oxygen, which requires patients to plan activities outside of their homes around delivery schedules and a finite oxygen supply. Additionally, patients must attach long, cumbersome tubing to their stationary concentrators simply to enable mobility within their homes. The Company’s proprietary Inogen One ® Since adopting the Company’s direct-to-consumer rental strategy in 2009, the Company has directly sold or rented more than 619,000 of its Inogen oxygen concentrators as of March 31, 2019. The Company incorporated Inogen Europe Holding B.V., a Dutch limited liability company, on April 13, 2017. On May 4, 2017, Inogen Europe Holding B.V. acquired all issued and outstanding capital stock of MedSupport Systems B.V. (MedSupport) and began operating under the name Inogen Europe B.V. The Company merged Inogen Europe Holding B.V. and Inogen Europe B.V. on December 28, 2018. Inogen Europe B.V. is the remaining legal entity. |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | 2. Basis of presentation and summary of significant accounting policies The consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). The accompanying consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC) on February 26, 2019. There have been no significant changes in the Company’s accounting policies from those disclosed in its Annual Report on Form 10-K filed with the SEC on February 26, 2019. Basis of consolidation The consolidated financial statements include the accounts of Inogen, Inc. and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated. Use of estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Management bases these estimates and assumptions upon historical experience, existing and known circumstances, authoritative accounting pronouncements and other factors that management believes to be reasonable. Significant areas requiring the use of management estimates relate to revenue recognition and determining the stand-alone selling price (SSP) of performance obligations, inventory and rental asset valuations and write-downs, accounts receivable allowances for bad debts, returns and adjustments, warranty expense, stock compensation expense, depreciation and amortization, income tax provision and uncertain tax positions, fair value of financial instruments, and fair value of acquired intangible assets and goodwill. Actual results could differ from these estimates. Leases The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (ROU) assets, operating lease liability, and operating lease liability - noncurrent on the consolidated balance sheets. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The Company uses an incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments as the rate implicit in each lease is generally not readily determinable. The operating lease ROU asset also includes any lease payments made to the lessor at or before the commencement date and excludes lease incentives. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components. The Company elected the practical expedient to treat the lease and non-lease components as a single lease component. Additionally, the Company elected the practical expedient to not record leases with an initial term of 12 months or less on the consolidated balance sheets. Revenue The Company generates revenue primarily from sales and rentals of its products. The Company’s products consist of its proprietary line of oxygen concentrators and related accessories. Other revenue, which is included in sales revenue on the Statements of Comprehensive Income, primarily comes from service contracts, replacement parts and freight revenue for product shipments. Sales revenue Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services. Revenue from product sales is generally recognized upon shipment of the product but is deferred for certain transactions when control has not yet transferred to the customer. The Company’s product is generally sold with a right of return and the Company may provide other incentives, which are accounted for as variable consideration when estimating the amount of revenue to recognize. Returns and incentives are estimated at the time sales revenue is recognized. The provisions for estimated returns are made based on known claims and estimates of additional returns based on historical data and future expectations. Sales revenue incentives within the Company’s contracts are estimated based on the most likely amounts expected on the related sales transaction and recorded as a reduction to revenue at the time of sale in accordance with the terms of the contract. The Company also offers a lifetime warranty for direct-to-consumer sales of its portable oxygen concentrators. For a fixed price, the Company agrees to provide a fully functional portable oxygen concentrator for the remaining life of the patient. Lifetime warranties are only offered to patients upon the initial sale of portable oxygen concentrators directly from the Company and are non-transferable. Lifetime warranties are considered to be a distinct performance obligation that are accounted for separately from its sale of portable oxygen concentrators with a standard warranty of three years . The revenue is allocated to the distinct lifetime warranty performance obligation based on a relative SSP method. The Company has vendor-specific objective evidence of the selling price for its equipment. To determine the selling price of the lifetime warranty, the Company uses its best estimate of the SSP for the distinct performance obligation as the lifetime warranty is neither separately priced nor is the selling price available through third-party evidence. To calculate the selling price associated with the lifetime warranties, management considers the profit margins of service revenue, the average estimated cost of lifetime warranties and the price of extended warranties. Revenue from the distinct lifetime warranty is deferred after the delivery of the equipment and recognized based on an estimated mortality rate over five years, which is the estimated performance period of the contract based on the average patient life expectancy. Revenue from the sale of the Company’s repair services is recognized when the performance obligations are satisfied and collection of the receivables is probable. Other revenue from sale of replacement parts is generally recognized when product is shipped to customers. Freight revenue consists of fees associated with the deployment of products internationally and domestically when expedited freight options are requested or when minimum order quantities are not met. Freight revenue is generally recognized upon shipment of the product but is deferred if control has not yet transferred to the customer. Shipping and handling costs for sold products and rental assets shipped to the Company’s customers are included on the consolidated statements of comprehensive income as part of cost of sales revenue and cost of rental revenue, respectively. The payment terms and conditions of customer contracts vary by customer type and the products and 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 timing of sales revenue recognition, billing and cash collection results in billed accounts receivable and deferred revenue in the consolidated balance sheet. Contract liabilities primarily consist of deferred revenue related to lifetime warranties on direct-to-consumer sales revenue when cash payments are received in advance of services performed under the contract. The contract with the customer states the final terms of the sale, including the description, quantity, and price of each product or service purchase. The increase in deferred revenue related to lifetime warranties was primarily driven by $2,416 of payments received in advance of satisfying . Deferred revenue related to l The Company elected to apply the practical expedient in accordance with Accounting Standards Codification (ASC) — Revenue Recognition did not evaluate contracts of one year or less for the existence of a significant financing component The Company’s sales revenue is primarily derived from the sale of its Inogen One systems, Inogen At Home systems, and related accessories to individual consumers, home medical equipment providers, distributors, the Company’s private label partner and resellers worldwide. Sales revenue is classified into two areas: business-to-business sales and direct-to-consumer sales. The following table sets forth the Company’s sales revenue disaggregated by sales channel and geographic region: Three months ended March 31, Revenue by region and category 2019 2018 Business-to-business domestic sales $ 26,061 $ 28,016 Business-to-business international sales 19,803 16,906 Direct-to-consumer domestic sales 38,954 28,662 Total sales revenue $ 84,818 $ 73,584 Rental revenue The Company recognizes equipment rental revenue over the non-cancelable lease term, which is one month, less estimated adjustments, in accordance with ASC 842 — Leases The lease term begins on the date products are shipped to patients and are recorded at amounts estimated to be received under reimbursement arrangements with third-party payors, including Medicare, private payors, and Medicaid. Due to the nature of the industry and the reimbursement environment in which the Company operates, certain estimates are required to record net revenue and accounts receivable at their net realizable values. Inherent in these estimates is the risk that they will have to be revised or updated as additional information becomes available. Specifically, the complexity of many third-party billing arrangements and the uncertainty of reimbursement amounts for certain services from certain payors may result in adjustments to amounts originally recorded. Such adjustments are typically identified and recorded at the point of cash application, claim denial or account review. The Company adjusts revenue for historical trends on revenue adjustments due to timely filings, deaths, hospice, bad debt and other types of analyzable adjustments on a monthly basis to record rental revenue at the expected collectible amounts. Accounts receivable are reduced by an allowance for doubtful accounts which provides for those accounts from which payment is not expected to be received although product was delivered, and revenue was earned. The determination that an account is uncollectible, and the ultimate write-off of that account occurs once collection is considered to be highly unlikely, and it is written-off and charged to the allowance at that time. Amounts billed but not earned due to the timing of the billing cycle are deferred and recognized in revenue on a straight-line basis over the monthly billing period. For example, if the first day of the billing period does not fall on the first of the month, then a portion of the monthly billing period will fall in the subsequent month and the related revenue and cost would be deferred based on the service days in the following month. The lease agreements generally contain lease and non-lease components. Non-lease components primarily include payments for supplies. The Company elected the practical expedient to treat the lease and non-lease components as a single lease component. Rental revenue is recognized as earned, less estimated adjustments. Revenue not billed at the end of the period is reviewed for the likelihood of collections and accrued. The rental revenue stream is not guaranteed and payment will cease if the patient no longer needs oxygen or returns the equipment. Revenue recognized is at full estimated allowable amounts; transfers to secondary insurances or patient responsibility have no net effect on revenue. Rental revenue is earned for that entire month if the patient is on service on the first day of the 30-day period commencing on the recurring date of service for a particular claim, regardless if there is a change in condition or death after that date. Included in rental revenue are unbilled amounts for which the revenue recognition criteria had been met as of period-end but were not yet billed to the payor. The estimate of net unbilled rental revenue recognized is based on historical trends and estimates of future collectability. In addition, the Company estimates potential future adjustments and write-offs of these unbilled amounts and includes these estimates in the allowance for adjustments and write-offs of rental revenue which is netted against gross receivables. Recently issued accounting pronouncements not yet adopted In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-13, Accounting for Credit Losses (Topic 326) In January 2017, the FASB issued ASU No. 2017-04, Simplifying the Test for Goodwill Impairment In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement Recently adopted accounting pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) . In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging In January 2018, the FASB issued ASU No. 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income In June 2018, the FASB issued ASU No. 2018-07, Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting In November 2018, the FASB issued ASU No. 2018-19, Codification Improvements to Topic 326, Financial Instruments-Credit Losses Business segments The Company operates and reports in only one operating and reportable segment – development, manufacturing, marketing, sales, and rental of respiratory products. Management reports financial information on a consolidated basis to the Company’s chief operating decision maker. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | 3. Fair value of financial instruments The Company’s financial instruments consist of cash and cash equivalents, marketable securities, accounts receivable, accounts payable and accrued expenses. The carrying values of its financial instruments approximate fair value based on their short-term nature. Fair value accounting ASC 820 — Fair Value Measurements and Disclosures Level input Input definition Level 1 Inputs are unadjusted, quoted prices for identical assets or liabilities in active markets at the measurement date. Level 2 Inputs, other than quoted prices included in Level 1 that are observable for the asset or liability through corroboration with market data at the measurement date. Level 3 Unobservable inputs that reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. The Company obtained the fair value of its available-for-sale investments, which are not in active markets, from a third-party professional pricing service using quoted market prices for identical or comparable instruments, rather than direct observations of quoted prices in active markets. The Company's professional pricing service gathers observable inputs for all of its fixed income securities from a variety of industry data providers (e.g., large custodial institutions) and other third-party sources. Once the observable inputs are gathered, all data points are considered, and the fair value is determined. The Company validates the quoted market prices provided by its primary pricing service by comparing their assessment of the fair values against the fair values provided by its investment managers. The Company's investment managers use similar techniques to its professional pricing service to derive pricing as described above. As all significant inputs were observable, derived from observable information in the marketplace or supported by observable levels at which transactions are executed in the marketplace, the Company has classified its marketable securities within Level 2 of the fair value hierarchy. The following table summarizes fair value measurements by level for the assets measured at fair value on a recurring basis for cash, cash equivalents and marketable securities: As of March 31, 2019 Gross Cash Adjusted unrealized and cash Marketable cost gains Fair value equivalents securities Cash $ 19,300 $ — $ 19,300 $ 19,300 $ — Level 1: Money market accounts 170,181 — 170,181 170,181 — Level 2: Corporate bonds 10,064 1 10,065 — 10,065 U.S. Treasury securities 39,685 16 39,701 755 38,946 Total $ 239,230 $ 17 $ 239,247 $ 190,236 $ 49,011 As of December 31, 2018 Gross Cash Adjusted unrealized and cash Marketable cost gains (losses) Fair value equivalents securities Cash $ 33,671 $ — $ 33,671 $ 33,671 $ — Level 1: Money market accounts 158,438 — 158,438 158,438 — Level 2: Corporate bonds 13,629 (16 ) 13,613 — 13,613 U.S. Treasury securities 34,620 7 34,627 4,525 30,102 Total $ 240,358 $ (9 ) $ 240,349 $ 196,634 $ 43,715 The following table summarizes the estimated fair value of the Company’s investments in marketable securities, classified by the contractual maturity date of the securities: March 31, 2019 Due within one year $ 49,011 Derivative instruments and hedging activities The Company transacts business in foreign currencies and has international sales and expenses denominated in foreign currencies, subjecting the Company to foreign currency risk. The Company has entered into foreign currency forward contracts, generally with maturities of twelve months or less, to reduce the volatility of cash flows primarily related to forecasted revenue denominated in certain foreign currencies. These contracts allow the Company to sell Euros in exchange for U.S. dollars at specified contract rates. Forward contracts are used to hedge forecasted sales over specific months. Changes in the fair value of these forward contracts designed as cash flow hedges are recorded as a component of accumulated other comprehensive income (loss) within stockholders’ equity and are recognized in the consolidated statements of comprehensive income during the period which approximates the time the corresponding sales occur. The Company may also enter into foreign exchange contracts that are not designated as hedging instruments for financial accounting purposes. These contracts are generally entered into to offset the gains and losses on certain asset and liability balances until the expected time of repayment. Accordingly, any gains or losses resulting from changes in the fair value of the non-designated contracts are reported in other expense, net in the consolidated statements of comprehensive income. The gains and losses on these contracts generally offset the gains and losses associated with the underlying foreign currency-denominated balances, which are also reported in other income (expense), net. The Company records the assets or liabilities associated with derivative instruments and hedging activities at fair value based on Level 2 inputs in other current assets or other current liabilities, respectively, in the consolidated balance sheet. The Company had a related receivable of $862 and a receivable of $472 as of March 31, 2019 and December 31, 2018, respectively. The Company classifies the foreign currency derivative instruments within Level 2 in the fair value hierarchy as the valuation inputs are based on quoted prices and market observable data of whether it is designated and qualifies for hedge accounting. The Company documents the hedging relationship and its risk management objective and strategy for undertaking the hedge, the hedging instrument, the hedged transaction, the nature of the risk being hedged, how the hedging instrument’s effectiveness in offsetting the hedged risk will be assessed prospectively and retrospectively, and a description of the method used to measure ineffectiveness. The Company assesses hedge effectiveness and ineffectiveness at a minimum quarterly but may assess it monthly. For derivative instruments that are designed and qualify as part of a cash flow hedging relationship, the effective portion of the gain or loss on the derivative is reported in other comprehensive income (loss) and reclassified into earnings in the same periods during which the hedged transaction affects earnings. Gains and losses on the derivative representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current period earnings. The Company will discontinue hedge accounting prospectively when it determines that the derivative is no longer effective in offsetting cash flows attributable to the hedge risk. The cash flow hedge is de-designated because a forecasted transaction is not probable of occurring, or management determines to remove the designation of the cash flow hedge. In all situations in which hedge accounting is discontinued and the derivative remains outstanding, the Company continues to carry the derivative at its fair value on the balance sheet and recognizes any subsequent changes in the fair value in earnings. When it is probable that a forecasted transaction will not occur, the Company will discontinue hedge accounting and recognize immediately in earnings gains and losses that were accumulated in other comprehensive income (loss) related to the hedging relationship. Accumulated other comprehensive income (loss) The components of accumulated other comprehensive income (loss) were as follows: Foreign Unrealized Unrealized Accumulated currency gains on gains other translation marketable on cash comprehensive adjustments securities flow hedges income Balance as of December 31, 2018 $ 394 $ — $ 330 $ 724 Other comprehensive gain (loss) (137 ) 13 260 136 Balance as of March 31, 2019 $ 257 $ 13 $ 590 $ 860 Comprehensive income (loss) is the total net earnings and all other non-owner changes in equity. Except for net income and unrealized gains and losses on cash flow hedges, the Company does not have any transactions or other economic events that qualify as comprehensive income (loss). |
Balance Sheet Components
Balance Sheet Components | 3 Months Ended |
Mar. 31, 2019 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Components | 4. Balance sheet components Cash, cash equivalents and marketable securities The Company considers all short-term highly liquid investments with a maturity of three months or less to be cash equivalents. The Company’s marketable debt securities are classified and accounted for as available-for-sale. Cash equivalents are recorded at cost plus accrued interest, which is considered adjusted cost, and approximates fair value. Marketable debt securities are included in cash equivalents and marketable securities based on the maturity date of the security. Short-term investments are included in marketable securities in the current period presentation. The Company considers investments with maturities greater than three months, but less than one year, to be marketable securities. Investments are reported at fair value with realized and unrealized gains or losses reported in other income (expense), net. The Company reviews its investments to identify and evaluate investments that have an indication of possible impairment. Factors considered in determining whether a loss is temporary include the length of time and extent to which fair value has been less than the cost basis, the financial condition and near-term prospects of the investee, and the Company's intent and ability to hold the investment for a period of time sufficient to allow for any anticipated recovery in market value. Credit losses and other-than-temporary impairments are declines in fair value that are not expected to recover and are charged to other income (expense), net. March 31, December 31, Cash and cash equivalents 2019 2018 Cash $ 19,300 $ 33,671 Money market accounts 170,181 158,438 U.S. Treasury securities 755 4,525 Total cash and cash equivalents $ 190,236 $ 196,634 Marketable securities Corporate bonds $ 10,065 $ 13,613 U.S. Treasury securities 38,946 30,102 Total marketable securities $ 49,011 $ 43,715 Accounts receivable and allowance for bad debts, returns, and adjustments Accounts receivable are customer obligations due under normal sales and rental terms. The Company performs credit evaluations of the customers’ financial condition and generally does not require collateral. The allowance for doubtful accounts is maintained at a level that, in management’s opinion, is adequate to absorb potential losses related to accounts receivable and is based upon the Company’s continuous evaluation of the collectability of outstanding balances. Management’s evaluation takes into consideration such factors as past bad debt experience, economic conditions and information about specific receivables. The Company’s evaluation also considers the age and composition of the outstanding amounts in determining their net realizable value. The allowance for doubtful accounts is based on estimates, and ultimate losses may vary from current estimates. As adjustments to these estimates become necessary, they are reported in general and administrative expense for sales revenue and as a reduction of rental revenue in the periods in which they become known. The allowance is increased by bad debt provisions, net of recoveries, and is reduced by direct write-offs. The Company generally does not allow returns from providers for reasons not covered under its standard warranty. Therefore, provision for returns applies primarily to direct-to-consumer sales. This reserve is calculated based on actual historical return rates under the Company’s 30-day return program and is applied to the related sales revenue for the last month of the quarter reported. The Company also records an allowance for rental revenue adjustments which is recorded as a reduction of rental revenue and net rental accounts receivable balances. These adjustments result from contractual adjustments, audit adjustments, untimely claims filings, or billings not paid due to another provider performing same or similar functions for the patient in the same period, all of which prevent billed revenue from becoming realizable. The reserve is based on historical revenue adjustments as a percentage of rental revenue billed and unbilled during the related period. When recording the allowance for doubtful accounts for sales revenue, the bad debt expense account (general and administrative expense account) is charged; when recording allowance for sales returns, the sales returns account (contra sales revenue account) is charged; and when recording the allowances for rental reserve adjustments and doubtful accounts, the rental revenue adjustments account (contra rental revenue account) is charged. Prior to the adoption of ASC 842, the Company separately recorded an allowance for doubtful accounts by charging bad debt expense, which is now recorded as part of rental revenue adjustments during the three months ended March 31, 2019. As of March 31, 2019 and December 31, 2018, included in accounts receivable on the consolidated balance sheets were earned but unbilled receivables of $560 and $589, respectively. These balances reflect gross unbilled receivables prior to any allowances for adjustments and write-offs. The Company consistently applies its allowance estimation methodology from period-to-period. The Company’s best estimate is made on an accrual basis and adjusted in future periods as required. Any adjustments to the prior period estimates are included in the current period. As additional information becomes known, the Company adjusts its assumptions accordingly to change its estimate of the allowance. Gross accounts receivable balance concentrations by major category as of March 31, 2019 and December 31, 2018 were as follows: March 31, December 31, Gross accounts receivable 2019 2018 Rental (1) $ 3,791 $ 3,406 Business-to-business and other receivables (2) 39,802 35,656 Total gross accounts receivable $ 43,593 $ 39,062 Net accounts receivable (gross accounts receivable, net of allowances) balance concentrations by major category as of March 31, 2019 and December 31, 2018 were as follows: March 31, December 31, Net accounts receivable 2019 2018 Rental (1) $ 2,910 $ 2,413 Business-to-business and other receivables (2) 38,615 34,628 Total net accounts receivable $ 41,525 $ 37,041 (1) Rental includes Medicare, Medicaid/other government, private insurance and patient pay. (2) Business-to-business receivables included one customer with a gross accounts receivable balance of $18,615 and $16,198 as of March 31, 2019 and December 31, 2018, respectively. This customer received extended payment terms through a direct financing plan offered. The Company also has a credit insurance policy in place, which allocated up to $20,000 in coverage as of March 31, 2019 and allocated up to $18,000 in coverage as of December 31, 2018 for this customer with a $400 deductible and 10% retention. The following tables set forth the accounts receivable allowances as of March 31, 2019 and December 31, 2018: March 31, December 31, Allowances - accounts receivable 2019 2018 Doubtful accounts (1) $ 424 $ 693 Rental revenue adjustments (1) 548 438 Sales returns 1,096 890 Total allowances - accounts receivable $ 2,068 $ 2,021 (1) Prior to the adoption of ASC 842, the Company separately recorded an allowance for doubtful accounts by charging bad debt expense. Upon adoption of ASC 842, such balances are recorded as part of rental revenue adjustments to report rental revenue at an expected collectible amount. Concentration of credit risk Financial instruments that potentially subject the Company to concentration of credit risk consist principally of cash, cash equivalents, marketable securities and accounts receivable. At times, cash account balances may be in excess of the amounts insured by the Federal Deposit Insurance Corporation (FDIC). However, management believes the risk of loss to be minimal. The Company performs periodic evaluations of the relative credit standing of these institutions and has not experienced any losses on its cash and cash equivalents to date. The Company has also entered into hedging relationships with a single counterparty to offset the forecasted Euro-based revenues. The credit risk has been reduced due to a net settlement arrangement whereby the Company is allowed to net settle transactions with a single net amount payable by one party to the other. Concentration of customers and vendors The Company primarily sells its products to traditional home medical equipment providers, distributors, and resellers in the United States and in foreign countries on a credit basis. The Company also sells its products direct-to-consumers on a primarily prepayment basis. No single customer represented more than 10% of the Company’s total revenue for the three months ended March 31, 2019, and one single customer represented more than 10% of the Company’s total revenue for the three months ended March 31, 2018. One single customer represented more than 10% of the Company’s net accounts receivable balance with an accounts receivable balance of $18,615 as of March 31, 2019, and two customers with accounts receivable balances of $16,198 and $4,155, respectively, each represented more than 10% of the Company’s net accounts receivable balance as of December 31, 2018. The Company currently purchases raw materials from a limited number of vendors, which resulted in a concentration of three major vendors. The three major vendors supply the Company with raw materials used to manufacture the Company’s products. For the three months ended March 31, 2019, the Company’s three major vendors accounted for 20.6%, 11.6%, and 11.4%, respectively, of total raw material purchases. For the three months ended March 31, 2018, the Company’s three major vendors accounted for 18.5%, 15.1% and 12.0%, respectively, of total raw material purchases. A portion of revenue is earned from sales outside the United States. Approximately 72.5% of the non-U.S. revenue for the three months ended March 31, 2019 was invoiced in Euros. A breakdown of the Company’s revenue from U.S. and non-U.S. sources for the three months ended March 31, 2019 and March 31, 2018 is as follows: Three months ended March 31, 2019 2018 U.S. revenue $ 70,399 $ 62,145 Non-U.S. revenue 19,803 16,906 Total revenue $ 90,202 $ 79,051 Inventories Inventories are stated at the lower of cost and net realizable value. Cost is determined using a standard cost method, including material, labor and manufacturing overhead, whereby the standard costs are updated at least quarterly to reflect approximate actual costs using the first-in, first-out (FIFO) method. The Company records adjustments at least quarterly to inventory for potentially excess, obsolete, slow-moving or impaired items. The Company recorded noncurrent inventory related to inventories that are expected to be realized or consumed after one year of $1,348 and $1,085 as of March 31, 2019 and December 31, 2018, respectively. Noncurrent inventories are primarily related to raw materials purchased in bulk to support long-term expected repairs to reduce costs and are classified in other assets. Inventories that are considered current consist of the following: March 31, December 31, 2019 2018 Raw materials and work-in-progress $ 26,162 $ 24,980 Finished goods 3,398 2,756 Less: reserves (740 ) (665 ) Inventories $ 28,820 $ 27,071 Property and equipment Property and equipment are stated at cost. Depreciation and amortization are calculated using the straight-line method over the assets’ estimated useful lives as follows: Rental equipment 1.5-5 years Manufacturing equipment and tooling 3-5 years Computer equipment and software 2-3 years Furniture and equipment 3-5 years Leasehold improvements Lesser of estimated useful life or remaining lease term Expenditures for additions, improvements and replacements are capitalized and depreciated to a salvage value of $0. Repair and maintenance costs on rental equipment are included in cost of rental revenue on the consolidated statements of comprehensive income. Repair and maintenance expense, which includes labor, parts and freight, for rental equipment was $662 and $560 for the three months ended March 31, 2019 and March 31, 2018, respectively. Included within property and equipment is construction in process, primarily related to the design and engineering of tooling, jigs and other machinery. In addition, this item also includes computer software or development costs that have been purchased but have not completed the final configuration process for implementation into the Company’s systems. These items have not been placed in service; therefore, no depreciation or amortization was recognized for these items in the respective periods. Depreciation and amortization expense related to rental equipment and other property and equipment are summarized below for the three months ended March 31, 2019 and March 31, 2018, respectively. Three months ended March 31, 2019 2018 Rental equipment $ 1,705 $ 2,165 Other property and equipment 761 530 Total depreciation and amortization $ 2,466 $ 2,695 Property and equipment and rental equipment with associated accumulated depreciation is summarized below as of March 31, 2019 and December 31, 2018, respectively. March 31, December 31, Property and equipment 2019 2018 Rental equipment, net of allowances of $524 and $594, respectively $ 41,996 $ 43,038 Other property and equipment 22,711 21,596 Property and equipment 64,707 64,634 Accumulated depreciation Rental equipment 31,475 31,813 Other property and equipment 11,234 10,480 Accumulated depreciation 42,709 42,293 Property and equipment, net Rental equipment, net of allowances of $524 and $594, respectively 10,521 11,225 Other property and equipment 11,477 11,116 Property and equipment, net $ 21,998 $ 22,341 Long-lived assets The Company accounts for the impairment and disposition of long-lived assets in accordance with ASC 360 — Property, Plant, and Equipment Goodwill The changes in the carrying amount of goodwill for the three months ended March 31, 2019 were as follows: Balance as of December 31, 2018 $ 2,257 Translation adjustment (45 ) Balance as of March 31, 2019 $ 2,212 Intangible assets There were no impairments recorded related to the Company’s intangible assets as of March 31, 2019 and March 31, 2018. Amortization expense for intangible assets for the three months ended March 31, 2019 and March 31, 2018 was $328 and $298, respectively. The following tables represent the changes in net carrying values of intangible assets as of the respective dates: Average estimated Gross useful lives carrying Accumulated March 31, 2019 (in years) amount amortization Net amount Licenses 10 $ 185 $ 158 $ 27 Patents and websites 5 4,164 1,808 2,356 Customer relationships 4 1,346 645 701 Non-compete agreement 2.3 224 182 42 Commercials 2-3 633 348 285 Total $ 6,552 $ 3,141 $ 3,411 Average estimated Gross useful lives carrying Accumulated December 31, 2018 (in years) amount amortization Net amount Licenses 10 $ 185 $ 155 $ 30 Patents and websites 5 4,164 1,640 2,524 Customer relationships 4 1,373 572 801 Non-compete agreement 2.3 229 154 75 Commercials 2-3 633 308 325 Total $ 6,584 $ 2,829 $ 3,755 Annual estimated amortization expense for each of the succeeding fiscal years is as follows: March 31, 2019 Remaining 9 months of 2019 $ 899 2020 1,125 2021 842 2022 545 2023 — Thereafter — $ 3,411 Current liabilities Accounts payable and accrued expenses as of March 31, 2019 and December 31, 2018 consisted of the following: March 31, December 31, 2019 2018 Accounts payable $ 14,499 $ 13,720 Accrued inventory (in-transit and unvouchered receipts) and trade payables 7,060 9,597 Accrued purchasing card liability 1,738 2,089 Accrued franchise, sales and use taxes 584 518 Other accrued expenses 850 862 Accounts payable and accrued expenses $ 24,731 $ 26,786 Accrued payroll as of March 31, 2019 and December 31, 2018 consisted of the following: March 31, December 31, 2019 2018 Accrued bonuses $ 754 $ 4,780 Accrued wages and other payroll related items 4,515 3,494 Accrued vacation 2,124 1,959 Accrued employee stock purchase plan deductions 439 1,174 Accrued payroll $ 7,832 $ 11,407 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | 5. Leases The Company has entered into operating leases primarily for commercial buildings. These leases have terms which range from 2 years to 8 years, some of which include options to extend the leases for up to 5 years. There are no economic penalties for the Company to extend the lease, and it is not reasonably assured that the Company will exercise the extension options. Based on the present value of the lease payments for the remaining lease term of the Company's existing leases, the Company recognized operating lease right-of-use assets and operating lease liabilities of $6,418 on January 1, 2019. Operating lease right-of-use assets and liabilities commencing after January 1, 2019 are recognized at commencement date based on the present value of lease payments over the lease term. The operating leases do not contain material residual value guarantees or material restrictive covenants. As a result of the MedSupport acquisition, the Company leases a property owned by a related party. Operating lease cost for the property was $8 for the three months ended March 31, 2019, which is included in the total operating lease cost. Information related to the Company's right-of-use assets and related operating lease liabilities were as follows: Three months ended March 31, 2019 Cash paid for operating lease liabilities $ 576 Operating lease cost 544 Non-cash right-of-use assets obtained in exchange for new operating lease obligations 6,418 Weighted-average remaining lease term 3.1 years Weighted-average discount rate 3.8 % Maturities of lease liabilities due in the 12 month period ending March 31, 2020 $ 2,289 2021 1,750 2022 1,246 2023 937 2024 902 Thereafter 453 7,577 Less imputed interest (596 ) Total lease liabilities $ 6,981 Current operating lease liabilities $ 2,061 Operating lease liabilities - noncurrent 4,920 Total lease liabilities $ 6,981 |
Earnings per Share
Earnings per Share | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings per Share | 6. Earnings per share Earnings per share (EPS) is computed in accordance with ASC 260 —Earnings per Share Basic earnings per share is calculated using the Company’s weighted-average outstanding common shares. Diluted earnings per share is calculated using the Company’s weighted-average outstanding common shares including the dilutive effect of stock awards as determined under the treasury stock method. The computation of EPS is as follows: Three months ended March 31, 2019 2018 Numerator—basic and diluted: Net income $ 5,302 $ 10,758 Denominator: Weighted-average common shares - basic common stock (1) 21,750,305 21,026,154 Weighted-average common shares - diluted common stock 22,534,885 22,295,213 Net income per share - basic common stock $ 0.24 $ 0.51 Net income per share - diluted common stock $ 0.24 $ 0.48 Denominator calculation from basic to diluted: Weighted-average common shares - basic common stock (1) 21,750,305 21,026,154 Stock options and other dilutive awards 784,580 1,269,059 Weighted-average common shares - diluted common stock 22,534,885 22,295,213 Shares excluded from diluted weighted-average shares: Stock options — — Restricted stock units and restricted stock awards 119,378 75,926 Shares excluded from diluted weighted-average shares 119,378 75,926 (1) Unvested restricted stock units and restricted stock awards are not included as shares outstanding in the calculation of basic earnings per share. Vested restricted stock units and restricted stock awards are included in basic earnings per share if all vesting and performance criteria have been met. Performance-based restricted stock units and restricted stock awards are included in the number of shares used to calculate diluted earnings per share as long as all applicable performance criteria are met, and their effect is dilutive. Restricted stock awards are eligible to receive all dividends declared on the Company’s common shares during the vesting period; however, such dividends are not paid until the restrictions lapse. The computations of diluted net income attributable to common stockholders exclude common stock options, restricted stock units, and restricted stock awards, which were anti-dilutive for the three months ended March 31, 2019 and March 31, 2018. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 7. Income taxes The Company accounts for income taxes in accordance with ASC 740 —Income Taxes The Company accounts for uncertainties in income tax in accordance with ASC 740-10 —Accounting for Uncertainty in Income Taxes The Company recognizes interest and penalties on taxes, if any, within its income tax provision on its consolidated statements of comprehensive income. No significant interest or penalties were recognized during the periods presented. The Company operates in several taxing jurisdictions, including U.S. federal, multiple U.S. states and the Netherlands. The statute of limitations has expired for all tax years prior to 2015 for federal and 2014 to 2015 for various state tax purposes. However, the net operating loss generated on the Company’s federal and state tax returns in prior years may be subject to adjustments by the federal and state tax authorities. The Company determined the income tax provision for interim periods using an estimate of the Company’s annual effective tax rate, adjusted for discrete items arising in that quarter. In each quarter, the Company updates its estimated annual effective tax rate, and if the estimated annual effective |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Stockholders' Equity | 8. Stockholders’ equity The Company has a 2002 Stock Incentive Plan (2002 Plan) as amended, under which the Company granted options to purchase shares of its common stock. As of March 31, 2019, options to purchase 2,018 shares of common stock remained outstanding under the 2002 Plan. The 2002 Plan was terminated in March 2012 in connection with the adoption of the 2012 Plan, and, accordingly, no new options are available for issuance under this plan. The 2002 Plan continues to govern outstanding awards granted thereunder. The Company has a 2012 Equity Incentive Plan (2012 Plan) under which the Company granted options to purchase shares of its common stock. As of March 31, 2019, options to purchase 142,786 shares of common stock remained outstanding under the 2012 Plan. The 2012 Plan was terminated in connection with the Company’s initial public offering in February 2014, and accordingly, no new options are available for issuance under this plan. The 2012 Plan continues to govern outstanding awards granted thereunder. The Company has a 2014 Equity Incentive Plan (2014 Plan) that provides for the grant of incentive stock options, within the meaning of Section 422 of the Internal Revenue Code, to the Company’s employees and any parent and subsidiary corporation’s employees, and for the grant of nonstatutory stock options, restricted stock, restricted stock units, restricted stock awards, stock appreciation rights, performance units and performance shares to its employees, directors and consultants and its parent and subsidiary corporations’ employees and consultants. As of March 31, 2019, awards with respect to 1,085,122 shares of the Company’s common stock were outstanding, and 1,842,662 shares of common stock remained available for issuance under the 2014 Plan. The shares available for issuance under the 2014 Plan will be increased by any shares returned to the 2002 Plan, 2012 Plan and the 2014 Plan as a result of expiration or termination of awards (provided that the maximum number of shares that may be added to the 2014 Plan pursuant to such previously granted awards under the 2002 Plan and 2012 Plan is 2,328,569 shares). The number of shares available for issuance under the 2014 Plan also is increased annually on the first day of each fiscal year by an amount equal to the least of: • 895,346 shares; • 4% of the outstanding shares of common stock as of the last day of the Company’s immediately preceding fiscal year; or • such other amount as the Company’s board of directors may determine. For 2019, no additional shares were added to the 2014 Plan share reserve pursuant to the provision described above. Stock options Options typically expire between seven and ten years from the date of grant and vest over one to four year terms. Options have been granted to employees, directors and consultants of the Company, as determined by the board of directors, at the deemed fair market value of the shares underlying the options at the date of grant. The activity for stock options under the Company’s stock plans is as follows: Remaining weighted- Weighted- average Per share average contractual average Price per exercise terms intrinsic Options share price (in years) value Outstanding as of December 31, 2018 1,127,336 $0.75-$83.30 $ 34.89 3.84 $ 89.28 Granted — — — Exercised (69,779 ) 0.75-58.95 23.44 Forfeited (20,959 ) 38.54-44.19 43.07 Expired — — — Outstanding as of March 31, 2019 1,036,598 0.75-83.30 35.50 3.60 59.87 Vested and exercisable as of March 31, 2019 851,973 0.75-83.30 33.65 3.51 61.72 Vested and expected to vest as of March 31, 2019 1,024,590 $0.75-$83.30 $ 35.40 3.59 $ 59.97 The total intrinsic value of options exercised during the three months ended March 31, 2019 and March 31, 2018 was $6,733 and $16,113, respectively. The unrecognized compensation expense related to non-vested stock-based compensation granted under the Plans as of March 31, 2019 was $2,657. S tock incentive awards The Company grants restricted stock units (RSUs) and restricted stock awards (RSAs) under the 2014 Plan (Stock Awards). The Stock Awards vest either based solely on the satisfaction of time-based service conditions or on the satisfaction of time-based service conditions combined with performance criteria. Stock Awards are subject to forfeiture if the holder’s services to the Company terminate before vesting. Stock Awards granted with only time-based service vesting conditions generally vest over a four-year service period, as defined in the terms of each award. Stock Awards that vest based on the satisfaction of time-based service conditions combined with performance criteria generally vest over a three-year service and performance period, based on performance criteria established at the time of the award. The portion of the Stock Award that is earned may equal or be less than the targeted number of shares subject to the Stock Award depending on whether the performance criteria are met. Stock Awards activity for the three months ended March 31, 2019 are summarized below: Weighted- average grant Performance date fair and value Restricted stock units Time-based time-based Total per share Unvested restricted stock units outstanding as of December 31, 2018 58,589 8,739 67,328 $ 115.16 Granted 34,870 — 34,870 106.97 Vested (7,453 ) (4,366 ) (11,819 ) 103.71 Forfeited/canceled (54 ) — (54 ) 91.52 Unvested restricted stock units outstanding as of March 31, 2019 (1) 85,952 4,373 90,325 $ 113.51 Unvested and expected to vest restricted stock units outstanding as of March 31, 2019 85,159 $ 113.82 Weighted- average grant Performance date fair and value Restricted stock awards Time-based time-based Total per share Unvested restricted stock awards outstanding as of December 31, 2018 36,937 47,821 84,758 $ 115.80 Granted 26,778 40,166 66,944 106.97 Vested (6,319 ) (15,732 ) (22,051 ) 115.73 Forfeited/canceled (2,079 ) (3,839 ) (5,918 ) 100.62 Unvested restricted stock awards outstanding as of March 31, 2019 (1) 55,317 68,416 123,733 $ 112.15 Unvested and expected to vest restricted stock awards outstanding as of March 31, 2019 92,218 $ 112.18 (1) Outstanding restricted stock units and restricted stock awards are based on the maximum payout of the targeted number of shares. As of March 31, 2019, the unrecognized compensation cost related to unvested employee restricted stock units and restricted stock awards was $17,069, excluding estimated forfeitures. This amount is expected to be recognized over a weighted-average period of 2.9 years. Employee stock purchase plan The Company’s 2014 Employee Stock Purchase Plan (ESPP) provides for the grant to all eligible employees an option to purchase stock under the ESPP, within the meaning Section 423 of the Internal Revenue Code. The ESPP permits participants to purchase common stock through payroll deductions of up to 15% of their eligible compensation, which includes a participant’s base straight time gross earnings, incentive compensation, bonuses, overtime and shift premium, but exclusive of payments for equity compensation and other similar compensation. A participant may purchase a maximum of 1,500 shares during a purchase period. Amounts deducted and accumulated by the participant are used to purchase shares of the Company’s common stock at the end of each six-month period. The purchase price of the shares will be 85% of the lower of the fair market value of the Company’s common stock on the first trading day of each offering period or on the exercise date. The offering periods are currently approximately six months in length beginning on the first business day on or after March 1 and September 1 of each year and ending on the first business day on or after September 1 and March 1 approximately six months later. As of March 31, 2019, a total of 729,681 shares of common stock were available for sale pursuant to the ESPP. The number of shares available for sale under the ESPP is increased annually on the first day of each fiscal year by an amount equal to the least of: • 179,069 shares; • 1.5% of the outstanding shares of the Company’s common stock on the last day of the Company’s immediately preceding fiscal year; or • such other amount as may be determined by the administrator. For 2019, no additional shares were added to the ESPP share reserve pursuant to the provision described above. Stock-based compensation Stock-based compensation expense recognized for the three months ended March 31, 2019 and March 31, 2018 was as follows: Three months ended March 31, 2019 2018 Stock-based compensation expense by type of award: Stock option plan awards $ 1,147 $ 1,951 Restricted stock units and restricted stock awards 2,257 1,239 Employee stock purchase plan 182 191 Total stock-based compensation expense $ 3,586 $ 3,381 Employee stock-based compensation expense was calculated based on awards of stock options, restricted stock units and restricted stock awards ultimately expected to vest based on the Company’s historical award cancellations. The employee stock-based compensation expense recognized for the three months ended March 31, 2019 and March 31, 2018 has been reduced for estimated forfeitures of stock option plan awards at a rate of 7.3% in both periods. ASC 718 – Compensation-Stock Compensation For the three months ended March 31, 2019 and March 31, 2018, stock-based compensation expense recognized under ASC 718, included in cost of revenues, sales and marketing expense, general and administrative expense, and research and development expense was as follows: Three months ended March 31, 2019 2018 Cost of revenue $ 285 $ 273 Research and development 377 331 Sales and marketing 690 548 General and administrative 2,234 2,229 Total stock-based compensation expense $ 3,586 $ 3,381 401(k) retirement savings plan The Company maintains a 401(k) retirement savings plan for the benefit of eligible employees. Under the terms of this plan, eligible employees are able to make contributions to the plan on a tax-deferred basis. The Company began matching employees’ contributions, effective January 1, 2017. The Company contributed $318, net of forfeitures, to the 401(k) plan for the three months ended March 31, 2019 and $230, net of forfeitures, for the three months ended March 31, 2018. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 9. Commitments and contingencies Non-cancelable contractual obligations The Company enters into non-cancelable contractual obligations for software licenses and maintenance agreements. As of March 31, 2019, the minimum aggregate payments due under specified non-cancelable contractual obligations are summarized as follows: Non-cancelable contractual obligations Remaining 9 months of 2019 $ 433 2020 578 2021 457 2022 — 2023 — Thereafter — $ 1,468 Purchase obligations The Company had approximately $61,000 of outstanding purchase orders with its outside vendors and suppliers as of March 31, 2019. Warranty obligations The following table identifies the changes in the Company’s aggregate product warranty liabilities for the three and twelve-month periods ended March 31, 2019 and December 31, 2018, respectively: March 31, December 31, 2019 2018 Product warranty liability at beginning of period $ 9,530 $ 6,171 Accruals for warranties issued 1,821 7,693 Adjustments related to preexisting warranties (including changes in estimates) (275 ) 90 Settlements made (in cash or in kind) (1,319 ) (4,424 ) Product warranty liability at end of period $ 9,757 $ 9,530 Legislation and HIPAA The healthcare industry is subject to numerous laws and regulations of federal, state and local governments. These laws and regulations include, but are not necessarily limited to, matters such as licensure, accreditation, government healthcare program participation requirements, reimbursement for patient services, and Medicare and Medicaid fraud and abuse. Government activity has continued with respect to investigations and allegations concerning possible violations of fraud and abuse statutes and regulations by healthcare providers. Violations of these laws and regulations could result in exclusion from government healthcare programs together with the imposition of significant fines and penalties, as well as significant repayments for patient services previously billed. The Company believes that it is in compliance in all material respects with applicable fraud and abuse regulations and other applicable government laws and regulations. Compliance with such laws and regulations can be subject to future government review and interpretation as well as regulatory actions unknown or unasserted at this time. The Health Insurance Portability and Accountability Act of 1996 (HIPAA) ensures health insurance portability, reduces healthcare fraud and abuse, guarantees security and privacy of health information, and enforces standards for health information. The Health Information Technology for Economic and Clinical Health Act (HITECH Act) imposes notification requirements of certain security breaches relating to protected health information. The Company believes it complies in all material respects with the provisions of those regulations that are applicable to the Company’s business. Legal proceedings The Company is party to various legal proceedings arising in the normal course of business. The Company carries insurance, subject to specified deductibles under the policies, to protect against losses from certain types of legal claims. At this time, the Company does not anticipate that any of these other proceedings will have a material adverse effect on the Company’s business. Regardless of the outcome, litigation can have an adverse impact on the Company because of defense and settlement costs, diversion of management resources, and other factors. Securities class action lawsuits On March 6, 2019, plaintiff William Fabbri filed a lawsuit against Inogen, Scott Wilkinson, and Alison Bauerlein, in the United States District Court for the Central District of California on behalf of a purported class of purchasers of the Company’s securities between November 8, 2017 and February 26, 2019. On March 21, 2019, plaintiff Steven Friedland filed a substantially similar lawsuit against the same defendants in the same court. The complaints generally allege that the defendants failed to disclose that: (i) Inogen had overstated the true size of the total addressable market for its portable oxygen concentrators and had misstated the basis for its calculation of the total addressable market; (ii) Inogen had falsely attributed its sales growth to the strong sales acumen of its salesforce, rather than to deceptive sales practices; (iii) the growth in Inogen’s domestic business-to-business sales to home medical equipment providers was inflated, unsustainable and was eroding direct-to-consumer sales; and (iv) very little of Inogen’s business was coming from the Medicare market. The complaints seek compensatory damages in an unspecified amount, costs and expenses, including attorneys’ fees and expert fees, prejudgment and post-judgment interest and such other relief as the court deems proper. The Company intends to vigorously defend itself against these allegations. |
Foreign Currency Exchange Contr
Foreign Currency Exchange Contracts and Hedging | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Foreign currency exchange contracts and hedging | 10. Foreign currency exchange contracts and hedging As of March 31, 2019 and March 31, 2018, the Company’s total non-designated and designated derivative contracts had notional amounts totaling approximately $2,369 and $16,072, respectively, and $2,397 and $17,885, respectively. These contracts were comprised of offsetting contracts with the same counterparty, each expires within one to six months. During the three months ended March 31, 2019 and March 31, 2018, these contracts had, net of tax, an unrealized gain of $260 and an unrealized loss of $77, respectively. The nonperformance risk of the Company and the counterparty did not have a material impact on the fair value of the derivatives. During the three months ended March 31, 2019 and March 31, 2018, there were no ineffective portions relating to these hedges and the hedges remained effective through their respective settlement dates. As of March 31, 2019, the Company had twenty-two designated hedges and three non-designated hedges. As of March 31, 2018, the Company had twenty-six designated hedges and three non-designated hedges. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Consolidation | Basis of consolidation The consolidated financial statements include the accounts of Inogen, Inc. and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated. |
Use of Estimates | Use of estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Management bases these estimates and assumptions upon historical experience, existing and known circumstances, authoritative accounting pronouncements and other factors that management believes to be reasonable. Significant areas requiring the use of management estimates relate to revenue recognition and determining the stand-alone selling price (SSP) of performance obligations, inventory and rental asset valuations and write-downs, accounts receivable allowances for bad debts, returns and adjustments, warranty expense, stock compensation expense, depreciation and amortization, income tax provision and uncertain tax positions, fair value of financial instruments, and fair value of acquired intangible assets and goodwill. Actual results could differ from these estimates. |
Leases | Leases The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (ROU) assets, operating lease liability, and operating lease liability - noncurrent on the consolidated balance sheets. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The Company uses an incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments as the rate implicit in each lease is generally not readily determinable. The operating lease ROU asset also includes any lease payments made to the lessor at or before the commencement date and excludes lease incentives. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components. The Company elected the practical expedient to treat the lease and non-lease components as a single lease component. Additionally, the Company elected the practical expedient to not record leases with an initial term of 12 months or less on the consolidated balance sheets. |
Revenue | Revenue The Company generates revenue primarily from sales and rentals of its products. The Company’s products consist of its proprietary line of oxygen concentrators and related accessories. Other revenue, which is included in sales revenue on the Statements of Comprehensive Income, primarily comes from service contracts, replacement parts and freight revenue for product shipments. Sales revenue Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services. Revenue from product sales is generally recognized upon shipment of the product but is deferred for certain transactions when control has not yet transferred to the customer. The Company’s product is generally sold with a right of return and the Company may provide other incentives, which are accounted for as variable consideration when estimating the amount of revenue to recognize. Returns and incentives are estimated at the time sales revenue is recognized. The provisions for estimated returns are made based on known claims and estimates of additional returns based on historical data and future expectations. Sales revenue incentives within the Company’s contracts are estimated based on the most likely amounts expected on the related sales transaction and recorded as a reduction to revenue at the time of sale in accordance with the terms of the contract. The Company also offers a lifetime warranty for direct-to-consumer sales of its portable oxygen concentrators. For a fixed price, the Company agrees to provide a fully functional portable oxygen concentrator for the remaining life of the patient. Lifetime warranties are only offered to patients upon the initial sale of portable oxygen concentrators directly from the Company and are non-transferable. Lifetime warranties are considered to be a distinct performance obligation that are accounted for separately from its sale of portable oxygen concentrators with a standard warranty of three years . The revenue is allocated to the distinct lifetime warranty performance obligation based on a relative SSP method. The Company has vendor-specific objective evidence of the selling price for its equipment. To determine the selling price of the lifetime warranty, the Company uses its best estimate of the SSP for the distinct performance obligation as the lifetime warranty is neither separately priced nor is the selling price available through third-party evidence. To calculate the selling price associated with the lifetime warranties, management considers the profit margins of service revenue, the average estimated cost of lifetime warranties and the price of extended warranties. Revenue from the distinct lifetime warranty is deferred after the delivery of the equipment and recognized based on an estimated mortality rate over five years, which is the estimated performance period of the contract based on the average patient life expectancy. Revenue from the sale of the Company’s repair services is recognized when the performance obligations are satisfied and collection of the receivables is probable. Other revenue from sale of replacement parts is generally recognized when product is shipped to customers. Freight revenue consists of fees associated with the deployment of products internationally and domestically when expedited freight options are requested or when minimum order quantities are not met. Freight revenue is generally recognized upon shipment of the product but is deferred if control has not yet transferred to the customer. Shipping and handling costs for sold products and rental assets shipped to the Company’s customers are included on the consolidated statements of comprehensive income as part of cost of sales revenue and cost of rental revenue, respectively. The payment terms and conditions of customer contracts vary by customer type and the products and 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 timing of sales revenue recognition, billing and cash collection results in billed accounts receivable and deferred revenue in the consolidated balance sheet. Contract liabilities primarily consist of deferred revenue related to lifetime warranties on direct-to-consumer sales revenue when cash payments are received in advance of services performed under the contract. The contract with the customer states the final terms of the sale, including the description, quantity, and price of each product or service purchase. The increase in deferred revenue related to lifetime warranties was primarily driven by $2,416 of payments received in advance of satisfying . Deferred revenue related to l The Company elected to apply the practical expedient in accordance with Accounting Standards Codification (ASC) — Revenue Recognition did not evaluate contracts of one year or less for the existence of a significant financing component The Company’s sales revenue is primarily derived from the sale of its Inogen One systems, Inogen At Home systems, and related accessories to individual consumers, home medical equipment providers, distributors, the Company’s private label partner and resellers worldwide. Sales revenue is classified into two areas: business-to-business sales and direct-to-consumer sales. The following table sets forth the Company’s sales revenue disaggregated by sales channel and geographic region: Three months ended March 31, Revenue by region and category 2019 2018 Business-to-business domestic sales $ 26,061 $ 28,016 Business-to-business international sales 19,803 16,906 Direct-to-consumer domestic sales 38,954 28,662 Total sales revenue $ 84,818 $ 73,584 Rental revenue The Company recognizes equipment rental revenue over the non-cancelable lease term, which is one month, less estimated adjustments, in accordance with ASC 842 — Leases The lease term begins on the date products are shipped to patients and are recorded at amounts estimated to be received under reimbursement arrangements with third-party payors, including Medicare, private payors, and Medicaid. Due to the nature of the industry and the reimbursement environment in which the Company operates, certain estimates are required to record net revenue and accounts receivable at their net realizable values. Inherent in these estimates is the risk that they will have to be revised or updated as additional information becomes available. Specifically, the complexity of many third-party billing arrangements and the uncertainty of reimbursement amounts for certain services from certain payors may result in adjustments to amounts originally recorded. Such adjustments are typically identified and recorded at the point of cash application, claim denial or account review. The Company adjusts revenue for historical trends on revenue adjustments due to timely filings, deaths, hospice, bad debt and other types of analyzable adjustments on a monthly basis to record rental revenue at the expected collectible amounts. Accounts receivable are reduced by an allowance for doubtful accounts which provides for those accounts from which payment is not expected to be received although product was delivered, and revenue was earned. The determination that an account is uncollectible, and the ultimate write-off of that account occurs once collection is considered to be highly unlikely, and it is written-off and charged to the allowance at that time. Amounts billed but not earned due to the timing of the billing cycle are deferred and recognized in revenue on a straight-line basis over the monthly billing period. For example, if the first day of the billing period does not fall on the first of the month, then a portion of the monthly billing period will fall in the subsequent month and the related revenue and cost would be deferred based on the service days in the following month. The lease agreements generally contain lease and non-lease components. Non-lease components primarily include payments for supplies. The Company elected the practical expedient to treat the lease and non-lease components as a single lease component. Rental revenue is recognized as earned, less estimated adjustments. Revenue not billed at the end of the period is reviewed for the likelihood of collections and accrued. The rental revenue stream is not guaranteed and payment will cease if the patient no longer needs oxygen or returns the equipment. Revenue recognized is at full estimated allowable amounts; transfers to secondary insurances or patient responsibility have no net effect on revenue. Rental revenue is earned for that entire month if the patient is on service on the first day of the 30-day period commencing on the recurring date of service for a particular claim, regardless if there is a change in condition or death after that date. Included in rental revenue are unbilled amounts for which the revenue recognition criteria had been met as of period-end but were not yet billed to the payor. The estimate of net unbilled rental revenue recognized is based on historical trends and estimates of future collectability. In addition, the Company estimates potential future adjustments and write-offs of these unbilled amounts and includes these estimates in the allowance for adjustments and write-offs of rental revenue which is netted against gross receivables. |
Recently Issued Accounting Pronouncements Not Yet Adopted | Recently issued accounting pronouncements not yet adopted In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-13, Accounting for Credit Losses (Topic 326) In January 2017, the FASB issued ASU No. 2017-04, Simplifying the Test for Goodwill Impairment In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement |
Recently Adopted Accounting Pronouncements | Recently adopted accounting pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) . In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging In January 2018, the FASB issued ASU No. 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income In June 2018, the FASB issued ASU No. 2018-07, Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting In November 2018, the FASB issued ASU No. 2018-19, Codification Improvements to Topic 326, Financial Instruments-Credit Losses |
Business Segments | Business segments The Company operates and reports in only one operating and reportable segment – development, manufacturing, marketing, sales, and rental of respiratory products. Management reports financial information on a consolidated basis to the Company’s chief operating decision maker. |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Sales Revenue Disaggregated by Sales Channel and Geographic Region | The following table sets forth the Company’s sales revenue disaggregated by sales channel and geographic region: Three months ended March 31, Revenue by region and category 2019 2018 Business-to-business domestic sales $ 26,061 $ 28,016 Business-to-business international sales 19,803 16,906 Direct-to-consumer domestic sales 38,954 28,662 Total sales revenue $ 84,818 $ 73,584 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Summary of Fair Value Assets Measured on Recurring Basis for Cash, Cash Equivalents and Marketable Securities | The following table summarizes fair value measurements by level for the assets measured at fair value on a recurring basis for cash, cash equivalents and marketable securities: As of March 31, 2019 Gross Cash Adjusted unrealized and cash Marketable cost gains Fair value equivalents securities Cash $ 19,300 $ — $ 19,300 $ 19,300 $ — Level 1: Money market accounts 170,181 — 170,181 170,181 — Level 2: Corporate bonds 10,064 1 10,065 — 10,065 U.S. Treasury securities 39,685 16 39,701 755 38,946 Total $ 239,230 $ 17 $ 239,247 $ 190,236 $ 49,011 As of December 31, 2018 Gross Cash Adjusted unrealized and cash Marketable cost gains (losses) Fair value equivalents securities Cash $ 33,671 $ — $ 33,671 $ 33,671 $ — Level 1: Money market accounts 158,438 — 158,438 158,438 — Level 2: Corporate bonds 13,629 (16 ) 13,613 — 13,613 U.S. Treasury securities 34,620 7 34,627 4,525 30,102 Total $ 240,358 $ (9 ) $ 240,349 $ 196,634 $ 43,715 |
Summary of Estimated Fair Value of Company's Investments in Marketable Debt Securities | The following table summarizes the estimated fair value of the Company’s investments in marketable securities, classified by the contractual maturity date of the securities: March 31, 2019 Due within one year $ 49,011 |
Summary of Components of Accumulated Other Comprehensive Income (Loss) | The components of accumulated other comprehensive income (loss) were as follows: Foreign Unrealized Unrealized Accumulated currency gains on gains other translation marketable on cash comprehensive adjustments securities flow hedges income Balance as of December 31, 2018 $ 394 $ — $ 330 $ 724 Other comprehensive gain (loss) (137 ) 13 260 136 Balance as of March 31, 2019 $ 257 $ 13 $ 590 $ 860 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Balance Sheet Related Disclosures [Abstract] | |
Summary of Cash, Cash Equivalents and Short-term Investments | Cash, cash equivalents, and marketable securities consist of the following: March 31, December 31, Cash and cash equivalents 2019 2018 Cash $ 19,300 $ 33,671 Money market accounts 170,181 158,438 U.S. Treasury securities 755 4,525 Total cash and cash equivalents $ 190,236 $ 196,634 Marketable securities Corporate bonds $ 10,065 $ 13,613 U.S. Treasury securities 38,946 30,102 Total marketable securities $ 49,011 $ 43,715 |
Schedule of Gross Accounts Receivable Balance Concentrations by Major Category | Gross accounts receivable balance concentrations by major category as of March 31, 2019 and December 31, 2018 were as follows: March 31, December 31, Gross accounts receivable 2019 2018 Rental (1) $ 3,791 $ 3,406 Business-to-business and other receivables (2) 39,802 35,656 Total gross accounts receivable $ 43,593 $ 39,062 (1) Rental includes Medicare, Medicaid/other government, private insurance and patient pay. (2) Business-to-business receivables included one customer with a gross accounts receivable balance of $18,615 and $16,198 as of March 31, 2019 and December 31, 2018, respectively. This customer received extended payment terms through a direct financing plan offered. The Company also has a credit insurance policy in place, which allocated up to $20,000 in coverage as of March 31, 2019 and allocated up to $18,000 in coverage as of December 31, 2018 for this customer with a $400 deductible and 10% retention. |
Schedule of Net Accounts Receivable Balance Concentrations by Major Category | Net accounts receivable (gross accounts receivable, net of allowances) balance concentrations by major category as of March 31, 2019 and December 31, 2018 were as follows: March 31, December 31, Net accounts receivable 2019 2018 Rental (1) $ 2,910 $ 2,413 Business-to-business and other receivables (2) 38,615 34,628 Total net accounts receivable $ 41,525 $ 37,041 (1) Rental includes Medicare, Medicaid/other government, private insurance and patient pay. (2) Business-to-business receivables included one customer with a gross accounts receivable balance of $18,615 and $16,198 as of March 31, 2019 and December 31, 2018, respectively. This customer received extended payment terms through a direct financing plan offered. The Company also has a credit insurance policy in place, which allocated up to $20,000 in coverage as of March 31, 2019 and allocated up to $18,000 in coverage as of December 31, 2018 for this customer with a $400 deductible and 10% retention. |
Schedule of Allowances for Accounts Receivable | The following tables set forth the accounts receivable allowances as of March 31, 2019 and December 31, 2018: March 31, December 31, Allowances - accounts receivable 2019 2018 Doubtful accounts (1) $ 424 $ 693 Rental revenue adjustments (1) 548 438 Sales returns 1,096 890 Total allowances - accounts receivable $ 2,068 $ 2,021 (1) Prior to the adoption of ASC 842, the Company separately recorded an allowance for doubtful accounts by charging bad debt expense. Upon adoption of ASC 842, such balances are recorded as part of rental revenue adjustments to report rental revenue at an expected collectible amount. |
Breakdown of Company's Revenue from U.S. and Non-U.S. Sources | A portion of revenue is earned from sales outside the United States. Approximately 72.5% of the non-U.S. revenue for the three months ended March 31, 2019 was invoiced in Euros. A breakdown of the Company’s revenue from U.S. and non-U.S. sources for the three months ended March 31, 2019 and March 31, 2018 is as follows: Three months ended March 31, 2019 2018 U.S. revenue $ 70,399 $ 62,145 Non-U.S. revenue 19,803 16,906 Total revenue $ 90,202 $ 79,051 |
Schedule of Inventories | Inventories that are considered current consist of the following: March 31, December 31, 2019 2018 Raw materials and work-in-progress $ 26,162 $ 24,980 Finished goods 3,398 2,756 Less: reserves (740 ) (665 ) Inventories $ 28,820 $ 27,071 |
Computation of Depreciation and Amortization using Straight Line Method Over Estimated Useful Lives of Assets | Property and equipment are stated at cost. Depreciation and amortization are calculated using the straight-line method over the assets’ estimated useful lives as follows: Rental equipment 1.5-5 years Manufacturing equipment and tooling 3-5 years Computer equipment and software 2-3 years Furniture and equipment 3-5 years Leasehold improvements Lesser of estimated useful life or remaining lease term |
Summary of Depreciation and Amortization Expense of Rental Equipment and Other Property and Equipment | Depreciation and amortization expense related to rental equipment and other property and equipment are summarized below for the three months ended March 31, 2019 and March 31, 2018, respectively. Three months ended March 31, 2019 2018 Rental equipment $ 1,705 $ 2,165 Other property and equipment 761 530 Total depreciation and amortization $ 2,466 $ 2,695 |
Summary of Property Plant and Equipment and Rental Equipment with Associated Accumulated Depreciation | Property and equipment and rental equipment with associated accumulated depreciation is summarized below as of March 31, 2019 and December 31, 2018, respectively. March 31, December 31, Property and equipment 2019 2018 Rental equipment, net of allowances of $524 and $594, respectively $ 41,996 $ 43,038 Other property and equipment 22,711 21,596 Property and equipment 64,707 64,634 Accumulated depreciation Rental equipment 31,475 31,813 Other property and equipment 11,234 10,480 Accumulated depreciation 42,709 42,293 Property and equipment, net Rental equipment, net of allowances of $524 and $594, respectively 10,521 11,225 Other property and equipment 11,477 11,116 Property and equipment, net $ 21,998 $ 22,341 |
Schedule of Changes in Carrying Amount of Goodwill | The changes in the carrying amount of goodwill for the three months ended March 31, 2019 were as follows: Balance as of December 31, 2018 $ 2,257 Translation adjustment (45 ) Balance as of March 31, 2019 $ 2,212 |
Summary of Changes in Net Carrying Values of Intangible Assets | The following tables represent the changes in net carrying values of intangible assets as of the respective dates: Average estimated Gross useful lives carrying Accumulated March 31, 2019 (in years) amount amortization Net amount Licenses 10 $ 185 $ 158 $ 27 Patents and websites 5 4,164 1,808 2,356 Customer relationships 4 1,346 645 701 Non-compete agreement 2.3 224 182 42 Commercials 2-3 633 348 285 Total $ 6,552 $ 3,141 $ 3,411 Average estimated Gross useful lives carrying Accumulated December 31, 2018 (in years) amount amortization Net amount Licenses 10 $ 185 $ 155 $ 30 Patents and websites 5 4,164 1,640 2,524 Customer relationships 4 1,373 572 801 Non-compete agreement 2.3 229 154 75 Commercials 2-3 633 308 325 Total $ 6,584 $ 2,829 $ 3,755 |
Schedule of Annual Estimated Amortization Expense | Annual estimated amortization expense for each of the succeeding fiscal years is as follows: March 31, 2019 Remaining 9 months of 2019 $ 899 2020 1,125 2021 842 2022 545 2023 — Thereafter — $ 3,411 |
Schedule of Accounts Payable and Accrued Expenses | Accounts payable and accrued expenses as of March 31, 2019 and December 31, 2018 consisted of the following: March 31, December 31, 2019 2018 Accounts payable $ 14,499 $ 13,720 Accrued inventory (in-transit and unvouchered receipts) and trade payables 7,060 9,597 Accrued purchasing card liability 1,738 2,089 Accrued franchise, sales and use taxes 584 518 Other accrued expenses 850 862 Accounts payable and accrued expenses $ 24,731 $ 26,786 |
Schedule of Accrued Payroll | Accrued payroll as of March 31, 2019 and December 31, 2018 consisted of the following: March 31, December 31, 2019 2018 Accrued bonuses $ 754 $ 4,780 Accrued wages and other payroll related items 4,515 3,494 Accrued vacation 2,124 1,959 Accrued employee stock purchase plan deductions 439 1,174 Accrued payroll $ 7,832 $ 11,407 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Schedule of Right-of-Use Assets and Operating Lease Liabilities | Information related to the Company's right-of-use assets and related operating lease liabilities were as follows: Three months ended March 31, 2019 Cash paid for operating lease liabilities $ 576 Operating lease cost 544 Non-cash right-of-use assets obtained in exchange for new operating lease obligations 6,418 Weighted-average remaining lease term 3.1 years Weighted-average discount rate 3.8 % |
Schedule of Maturities of Lease Liabilities | Maturities of lease liabilities due in the 12 month period ending March 31, 2020 $ 2,289 2021 1,750 2022 1,246 2023 937 2024 902 Thereafter 453 7,577 Less imputed interest (596 ) Total lease liabilities $ 6,981 Current operating lease liabilities $ 2,061 Operating lease liabilities - noncurrent 4,920 Total lease liabilities $ 6,981 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Computation of Earnings Per Share | The computation of EPS is as follows: Three months ended March 31, 2019 2018 Numerator—basic and diluted: Net income $ 5,302 $ 10,758 Denominator: Weighted-average common shares - basic common stock (1) 21,750,305 21,026,154 Weighted-average common shares - diluted common stock 22,534,885 22,295,213 Net income per share - basic common stock $ 0.24 $ 0.51 Net income per share - diluted common stock $ 0.24 $ 0.48 Denominator calculation from basic to diluted: Weighted-average common shares - basic common stock (1) 21,750,305 21,026,154 Stock options and other dilutive awards 784,580 1,269,059 Weighted-average common shares - diluted common stock 22,534,885 22,295,213 Shares excluded from diluted weighted-average shares: Stock options — — Restricted stock units and restricted stock awards 119,378 75,926 Shares excluded from diluted weighted-average shares 119,378 75,926 (1) Unvested restricted stock units and restricted stock awards are not included as shares outstanding in the calculation of basic earnings per share. Vested restricted stock units and restricted stock awards are included in basic earnings per share if all vesting and performance criteria have been met. Performance-based restricted stock units and restricted stock awards are included in the number of shares used to calculate diluted earnings per share as long as all applicable performance criteria are met, and their effect is dilutive. Restricted stock awards are eligible to receive all dividends declared on the Company’s common shares during the vesting period; however, such dividends are not paid until the restrictions lapse. |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Summary of Stock Options Activity | The activity for stock options under the Company’s stock plans is as follows: Remaining weighted- Weighted- average Per share average contractual average Price per exercise terms intrinsic Options share price (in years) value Outstanding as of December 31, 2018 1,127,336 $0.75-$83.30 $ 34.89 3.84 $ 89.28 Granted — — — Exercised (69,779 ) 0.75-58.95 23.44 Forfeited (20,959 ) 38.54-44.19 43.07 Expired — — — Outstanding as of March 31, 2019 1,036,598 0.75-83.30 35.50 3.60 59.87 Vested and exercisable as of March 31, 2019 851,973 0.75-83.30 33.65 3.51 61.72 Vested and expected to vest as of March 31, 2019 1,024,590 $0.75-$83.30 $ 35.40 3.59 $ 59.97 |
Summary of Restricted Stock Activity | Stock Awards activity for the three months ended March 31, 2019 are summarized below: Weighted- average grant Performance date fair and value Restricted stock units Time-based time-based Total per share Unvested restricted stock units outstanding as of December 31, 2018 58,589 8,739 67,328 $ 115.16 Granted 34,870 — 34,870 106.97 Vested (7,453 ) (4,366 ) (11,819 ) 103.71 Forfeited/canceled (54 ) — (54 ) 91.52 Unvested restricted stock units outstanding as of March 31, 2019 (1) 85,952 4,373 90,325 $ 113.51 Unvested and expected to vest restricted stock units outstanding as of March 31, 2019 85,159 $ 113.82 Weighted- average grant Performance date fair and value Restricted stock awards Time-based time-based Total per share Unvested restricted stock awards outstanding as of December 31, 2018 36,937 47,821 84,758 $ 115.80 Granted 26,778 40,166 66,944 106.97 Vested (6,319 ) (15,732 ) (22,051 ) 115.73 Forfeited/canceled (2,079 ) (3,839 ) (5,918 ) 100.62 Unvested restricted stock awards outstanding as of March 31, 2019 (1) 55,317 68,416 123,733 $ 112.15 Unvested and expected to vest restricted stock awards outstanding as of March 31, 2019 92,218 $ 112.18 (1) Outstanding restricted stock units and restricted stock awards are based on the maximum payout of the targeted number of shares. |
Summary of Stock-based Compensation Expense | Stock-based compensation Stock-based compensation expense recognized for the three months ended March 31, 2019 and March 31, 2018 was as follows: Three months ended March 31, 2019 2018 Stock-based compensation expense by type of award: Stock option plan awards $ 1,147 $ 1,951 Restricted stock units and restricted stock awards 2,257 1,239 Employee stock purchase plan 182 191 Total stock-based compensation expense $ 3,586 $ 3,381 For the three months ended March 31, 2019 and March 31, 2018, stock-based compensation expense recognized under ASC 718, included in cost of revenues, sales and marketing expense, general and administrative expense, and research and development expense was as follows: Three months ended March 31, 2019 2018 Cost of revenue $ 285 $ 273 Research and development 377 331 Sales and marketing 690 548 General and administrative 2,234 2,229 Total stock-based compensation expense $ 3,586 $ 3,381 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Minimum Aggregate Payments Due under Operating Leases and Specified Non-Cancelable Contractual Obligations Consist of Software License and Maintenance Agreements | The Company enters into non-cancelable contractual obligations for software licenses and maintenance agreements. As of March 31, 2019, the minimum aggregate payments due under specified non-cancelable contractual obligations are summarized as follows: Non-cancelable contractual obligations Remaining 9 months of 2019 $ 433 2020 578 2021 457 2022 — 2023 — Thereafter — $ 1,468 |
Schedule of Changes in Aggregate Product Warranty Liabilities | The following table identifies the changes in the Company’s aggregate product warranty liabilities for the three and twelve-month periods ended March 31, 2019 and December 31, 2018, respectively: March 31, December 31, 2019 2018 Product warranty liability at beginning of period $ 9,530 $ 6,171 Accruals for warranties issued 1,821 7,693 Adjustments related to preexisting warranties (including changes in estimates) (275 ) 90 Settlements made (in cash or in kind) (1,319 ) (4,424 ) Product warranty liability at end of period $ 9,757 $ 9,530 |
Business Overview - Additional
Business Overview - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2019Product | |
Inogen Europe Holding B.V. | |
Business Overview Disclosures [Line Items] | |
Date of incorporation of subsidiary | Apr. 13, 2017 |
Minimum | Inogen One | |
Business Overview Disclosures [Line Items] | |
Number of portable oxygen concentrators | 619,000 |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Details) | 3 Months Ended | ||
Mar. 31, 2019USD ($)Segment | Dec. 31, 2018USD ($) | Jan. 01, 2019USD ($) | |
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||
Standard warranty period offered | 3 years | ||
Cash payments received in advance of satisfying performance obligations | $ 2,416,000 | ||
Performance obligation partially offset of revenue recognized | 1,995,000 | ||
Deferred capped rental revenue | $ 0 | $ 0 | |
Rental revenue earned | 30 days | ||
Operating lease right-of-use asset | $ 5,936,000 | $ 6,418,000 | |
Operating lease liabilities | $ 2,061,000 | ||
Number of operating segments | Segment | 1 | ||
Number of reportable segments | Segment | 1 | ||
ASU 2016-02 | |||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||
Operating lease right-of-use asset | $ 6,400,000 | ||
Operating lease liabilities | 6,400,000 | ||
Cumulative effect adjustment on retained earnings | 0 | ||
Lifetime Warranties | Direct-to-Consumer | |||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||
Sales revenue | $ 15,295,000 | $ 14,874,000 |
Basis of Presentation and Sum_5
Basis of Presentation and Summary of Significant Accounting Policies - Sales Revenue Disaggregated by Sales Channel and Geographic Region (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disaggregation Of Revenue [Line Items] | ||
Total sales revenue | $ 84,818 | $ 73,584 |
Business to Business | Domestic | ||
Disaggregation Of Revenue [Line Items] | ||
Total sales revenue | 26,061 | 28,016 |
Business to Business | International | ||
Disaggregation Of Revenue [Line Items] | ||
Total sales revenue | 19,803 | 16,906 |
Direct-to-Consumer | Domestic | ||
Disaggregation Of Revenue [Line Items] | ||
Total sales revenue | $ 38,954 | $ 28,662 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Summary of Fair Value Assets Measured on Recurring Basis for Cash, Cash Equivalents and Marketable Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | $ 190,236 | $ 196,634 |
Fair Value Measurements Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Adjusted cost | 239,230 | 240,358 |
Gross unrealized gains/(losses) | 17 | (9) |
Fair value | 239,247 | 240,349 |
Cash and cash equivalents | 190,236 | 196,634 |
Marketable securities | 49,011 | 43,715 |
Fair Value Measurements Recurring | Cash | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Adjusted cost | 19,300 | 33,671 |
Fair value | 19,300 | 33,671 |
Cash and cash equivalents | 19,300 | 33,671 |
Fair Value Measurements Recurring | Level 1 | Money Market Accounts | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Adjusted cost | 170,181 | 158,438 |
Fair value | 170,181 | 158,438 |
Cash and cash equivalents | 170,181 | 158,438 |
Fair Value Measurements Recurring | Level 2 | Corporate Bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Adjusted cost | 10,064 | 13,629 |
Gross unrealized gains/(losses) | 1 | (16) |
Fair value | 10,065 | 13,613 |
Marketable securities | 10,065 | 13,613 |
Fair Value Measurements Recurring | Level 2 | U.S. Treasury Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Adjusted cost | 39,685 | 34,620 |
Gross unrealized gains/(losses) | 16 | 7 |
Fair value | 39,701 | 34,627 |
Cash and cash equivalents | 755 | 4,525 |
Marketable securities | $ 38,946 | $ 30,102 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Summary of Estimated Fair Value of Company's Investments in Marketable Securities (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Available For Sale Securities [Abstract] | |
Due within one year | $ 49,011 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Additional Information (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Related receivable | $ 41,525 | $ 37,041 |
Forward Contracts | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Related receivable | $ 862 | $ 472 |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments - Summary of Components of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning Balance | $ 724 | |
Other comprehensive income | 136 | $ 12 |
Ending Balance | 860 | |
Beginning Balance | 310,424 | 227,041 |
Ending Balance | 321,894 | 246,337 |
Foreign Currency Translation Adjustments | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning Balance | 394 | |
Other comprehensive income | (137) | |
Ending Balance | 257 | |
Unrealized Gains on Marketable Securities | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Other comprehensive income | 13 | |
Ending Balance | 13 | |
Unrealized Gains on Cash Flow Hedges | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning Balance | 330 | |
Other comprehensive income | 260 | |
Ending Balance | 590 | |
Accumulated other comprehensive income | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Other comprehensive income | 136 | 12 |
Beginning Balance | 724 | 272 |
Ending Balance | $ 860 | $ 284 |
Balance Sheet Components - Summ
Balance Sheet Components - Summary of Cash, Cash Equivalents and Short-term Investments (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Cash and cash equivalents | ||
Cash | $ 19,300 | $ 33,671 |
Money market accounts | 170,181 | 158,438 |
U.S. Treasury securities | 755 | 4,525 |
Total cash and cash equivalents | 190,236 | 196,634 |
Marketable securities | ||
Marketable securities | 49,011 | 43,715 |
Corporate Bonds | ||
Marketable securities | ||
Marketable securities | 10,065 | 13,613 |
U.S. Treasury Securities | ||
Marketable securities | ||
Marketable securities | $ 38,946 | $ 30,102 |
Balance Sheet Components - Addi
Balance Sheet Components - Additional Information (Details) | 3 Months Ended | ||
Mar. 31, 2019USD ($)Customer | Mar. 31, 2018USD ($)Customer | Dec. 31, 2018USD ($) | |
Schedule Of Balance Sheet Components [Line Items] | |||
Unbilled Receivables | $ 560,000 | $ 589,000 | |
Accounts receivable, net | $ 41,525,000 | 37,041,000 | |
Percentage of Non-US revenue invoiced in Euros | 72.50% | ||
Salvage value of expenditures for additions, improvements and replacements | $ 0 | ||
Repairs and maintenance expense | 662,000 | $ 560,000 | |
Depreciation and amortization | 2,466,000 | 2,695,000 | |
Impairments of long-lived assets | 0 | 0 | |
Impairment of finite lived intangible assets | 0 | 0 | |
Amortization of intangible assets | 328,000 | 298,000 | |
Construction in Process and Computer Software or Development Cost | |||
Schedule Of Balance Sheet Components [Line Items] | |||
Depreciation and amortization | 0 | 0 | |
Other Noncurrent Assets | |||
Schedule Of Balance Sheet Components [Line Items] | |||
Noncurrent inventories expected to be realized or consumed | 1,348,000 | $ 1,085,000 | |
Customer Concentration Risk | Customer One | |||
Schedule Of Balance Sheet Components [Line Items] | |||
Accounts receivable, net | $ 18,615,000 | 16,198,000 | |
Customer Concentration Risk | Customer Two | |||
Schedule Of Balance Sheet Components [Line Items] | |||
Accounts receivable, net | $ 4,155,000 | ||
Sales Revenue, Net | Customer Concentration Risk | |||
Schedule Of Balance Sheet Components [Line Items] | |||
Number of customers | Customer | 0 | 1 | |
Net Accounts Receivable | Customer Concentration Risk | |||
Schedule Of Balance Sheet Components [Line Items] | |||
Number of customers | Customer | 1 | 2 | |
Raw materials | Supplier Concentration Risk | Vendor one | |||
Schedule Of Balance Sheet Components [Line Items] | |||
Concentration risk, percentage | 20.60% | 18.50% | |
Raw materials | Supplier Concentration Risk | Vendor two | |||
Schedule Of Balance Sheet Components [Line Items] | |||
Concentration risk, percentage | 11.60% | 15.10% | |
Raw materials | Supplier Concentration Risk | Vendor three | |||
Schedule Of Balance Sheet Components [Line Items] | |||
Concentration risk, percentage | 11.40% | 12.00% |
Balance Sheet Components - Sche
Balance Sheet Components - Schedule of Gross Accounts Receivable Balance Concentrations by Major Category (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Accounts Notes And Loans Receivable [Line Items] | ||
Gross accounts receivable | $ 43,593 | $ 39,062 |
Rental | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Gross accounts receivable | 3,791 | 3,406 |
Business To Business And Other Receivables | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Gross accounts receivable | $ 39,802 | $ 35,656 |
Balance Sheet Components - Sc_2
Balance Sheet Components - Schedule of Net Accounts Receivable Balance Concentrations by Major Category (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Accounts Notes And Loans Receivable [Line Items] | ||
Net accounts receivable | $ 41,525 | $ 37,041 |
Rental | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Net accounts receivable | 2,910 | 2,413 |
Business To Business And Other Receivables | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Net accounts receivable | $ 38,615 | $ 34,628 |
Balance Sheet Components - Sc_3
Balance Sheet Components - Schedule of Net Accounts Receivable Balance Concentrations by Major Category (Parenthetical) (Details) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019USD ($)Customer | Dec. 31, 2018USD ($)Customer | |
Accounts Notes And Loans Receivable [Line Items] | ||
Gross accounts receivable | $ 43,593,000 | $ 39,062,000 |
Customer Concentration Risk | Business To Business Receivables | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Number of customers | Customer | 1 | 1 |
Gross accounts receivable | $ 18,615,000 | $ 16,198,000 |
Credit insurance policy, deductible amount | $ 400,000 | |
Credit insurance policy, retention percentage | 10.00% | |
Customer Concentration Risk | Business To Business Receivables | Maximum | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Credit insurance policy, coverage limit | $ 20,000,000 | $ 18,000,000 |
Balance Sheet Components - Sc_4
Balance Sheet Components - Schedule of Allowances for Accounts Receivable (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Allowances - accounts receivable | ||
Doubtful accounts | $ 424 | $ 693 |
Rental revenue adjustments | 548 | 438 |
Sales returns | 1,096 | 890 |
Total allowances - accounts receivable | $ 2,068 | $ 2,021 |
Balance Sheet Components - Brea
Balance Sheet Components - Breakdown of the Company Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Concentration Risk [Line Items] | ||
Revenues | $ 90,202 | $ 79,051 |
U.S. revenue | ||
Concentration Risk [Line Items] | ||
Revenues | 70,399 | 62,145 |
Non-U.S. revenue | ||
Concentration Risk [Line Items] | ||
Revenues | $ 19,803 | $ 16,906 |
Balance Sheet Components - Sc_5
Balance Sheet Components - Schedule of Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials and work-in-progress | $ 26,162 | $ 24,980 |
Finished goods | 3,398 | 2,756 |
Less: reserves | (740) | (665) |
Inventories | $ 28,820 | $ 27,071 |
Balance Sheet Components - Comp
Balance Sheet Components - Computation of Depreciation and Amortization Using Straight Line Method Over Estimated Useful Lives of Assets (Details) | 3 Months Ended |
Mar. 31, 2019 | |
Rental equipment | Minimum | |
Property Plant And Equipment [Line Items] | |
Property Plant And Equipment Useful Life | 1 year 6 months |
Rental equipment | Maximum | |
Property Plant And Equipment [Line Items] | |
Property Plant And Equipment Useful Life | 5 years |
Manufacturing equipment and tooling | Minimum | |
Property Plant And Equipment [Line Items] | |
Property Plant And Equipment Useful Life | 3 years |
Manufacturing equipment and tooling | Maximum | |
Property Plant And Equipment [Line Items] | |
Property Plant And Equipment Useful Life | 5 years |
Computer equipment and software | Minimum | |
Property Plant And Equipment [Line Items] | |
Property Plant And Equipment Useful Life | 2 years |
Computer equipment and software | Maximum | |
Property Plant And Equipment [Line Items] | |
Property Plant And Equipment Useful Life | 3 years |
Furniture and equipment | Minimum | |
Property Plant And Equipment [Line Items] | |
Property Plant And Equipment Useful Life | 3 years |
Furniture and equipment | Maximum | |
Property Plant And Equipment [Line Items] | |
Property Plant And Equipment Useful Life | 5 years |
Leasehold improvements | |
Property Plant And Equipment [Line Items] | |
Property Plant And Equipment Useful Life | Lesser of estimated useful life or remaining lease term |
Balance Sheet Components - Su_2
Balance Sheet Components - Summary of Depreciation and Amortization Expense of Rental Equipment and Other Property and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Property Plant And Equipment [Line Items] | ||
Depreciation | $ 1,705 | $ 2,165 |
Depreciation and amortization | 2,466 | 2,695 |
Rental equipment | ||
Property Plant And Equipment [Line Items] | ||
Depreciation | 1,705 | 2,165 |
Other property and equipment | ||
Property Plant And Equipment [Line Items] | ||
Depreciation and amortization | $ 761 | $ 530 |
Balance Sheet Components - Su_3
Balance Sheet Components - Summary of Property Plant and Equipment and Rental Equipment with Associated Accumulated Depreciation (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Property Plant And Equipment [Line Items] | ||
Property and equipment | $ 64,707 | $ 64,634 |
Accumulated depreciation | 42,709 | 42,293 |
Property and equipment, net | 21,998 | 22,341 |
Rental equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment | 41,996 | 43,038 |
Accumulated depreciation | 31,475 | 31,813 |
Property and equipment, net | 10,521 | 11,225 |
Other property and equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment | 22,711 | 21,596 |
Accumulated depreciation | 11,234 | 10,480 |
Property and equipment, net | $ 11,477 | $ 11,116 |
Balance Sheet Components - Su_4
Balance Sheet Components - Summary of Property Plant and Equipment and Rental Equipment with Associated Accumulated Depreciation (Parenthetical) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Property Plant And Equipment [Abstract] | ||
Rental equipment, allowance | $ 524 | $ 594 |
Balance Sheet Components - Sc_6
Balance Sheet Components - Schedule of Changes in Carrying Amount of Goodwill (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Balance as of December 31, 2018 | $ 2,257 |
Translation adjustment | (45) |
Balance as of March 31, 2019 | $ 2,212 |
Balance Sheet Components - Su_5
Balance Sheet Components - Summary of Changes in Net Carrying Values of Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 6,552 | $ 6,584 |
Accumulated amortization | 3,141 | 2,829 |
Net amount | $ 3,411 | $ 3,755 |
Licenses | ||
Finite Lived Intangible Assets [Line Items] | ||
Average estimated useful lives (in years) | 10 years | 10 years |
Gross carrying amount | $ 185 | $ 185 |
Accumulated amortization | 158 | 155 |
Net amount | $ 27 | $ 30 |
Patents And Websites | ||
Finite Lived Intangible Assets [Line Items] | ||
Average estimated useful lives (in years) | 5 years | 5 years |
Gross carrying amount | $ 4,164 | $ 4,164 |
Accumulated amortization | 1,808 | 1,640 |
Net amount | $ 2,356 | $ 2,524 |
Customer Relationships | ||
Finite Lived Intangible Assets [Line Items] | ||
Average estimated useful lives (in years) | 4 years | 4 years |
Gross carrying amount | $ 1,346 | $ 1,373 |
Accumulated amortization | 645 | 572 |
Net amount | $ 701 | $ 801 |
Non-Compete Agreement | ||
Finite Lived Intangible Assets [Line Items] | ||
Average estimated useful lives (in years) | 2 years 3 months 18 days | 2 years 3 months 18 days |
Gross carrying amount | $ 224 | $ 229 |
Accumulated amortization | 182 | 154 |
Net amount | 42 | 75 |
Commercials | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 633 | 633 |
Accumulated amortization | 348 | 308 |
Net amount | $ 285 | $ 325 |
Commercials | Minimum | ||
Finite Lived Intangible Assets [Line Items] | ||
Average estimated useful lives (in years) | 2 years | 2 years |
Commercials | Maximum | ||
Finite Lived Intangible Assets [Line Items] | ||
Average estimated useful lives (in years) | 3 years | 3 years |
Balance Sheet Components - Sc_7
Balance Sheet Components - Schedule of Annual Estimated Amortization Expense (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Remaining 9 months of 2019 | $ 899 | |
2020 | 1,125 | |
2021 | 842 | |
2022 | 545 | |
Net amount | $ 3,411 | $ 3,755 |
Balance Sheet Components - Sc_8
Balance Sheet Components - Schedule of Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Payables And Accruals [Abstract] | ||
Accounts payable | $ 14,499 | $ 13,720 |
Accrued inventory (in-transit and unvouchered receipts) and trade payables | 7,060 | 9,597 |
Accrued purchasing card liability | 1,738 | 2,089 |
Accrued franchise, sales and use taxes | 584 | 518 |
Other accrued expenses | 850 | 862 |
Accounts payable and accrued expenses | $ 24,731 | $ 26,786 |
Balance Sheet Components - Sc_9
Balance Sheet Components - Schedule of Accrued Payroll (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Payables And Accruals [Abstract] | ||
Accrued bonuses | $ 754 | $ 4,780 |
Accrued wages and other payroll related items | 4,515 | 3,494 |
Accrued vacation | 2,124 | 1,959 |
Accrued employee stock purchase plan deductions | 439 | 1,174 |
Accrued payroll | $ 7,832 | $ 11,407 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Jan. 01, 2019 | |
Lessee Lease Description [Line Items] | ||
Operating lease, option to extend | options to extend the leases for up to 5 years. | |
Operating lease, existence of option to extend [true false] | true | |
Operating lease right-of-use asset | $ 5,936 | $ 6,418 |
Operating lease, liability | 6,981 | $ 6,418 |
Operating lease cost | 544 | |
MedSupport Systems B.V. | ||
Lessee Lease Description [Line Items] | ||
Operating lease cost | $ 8 | |
Minimum | ||
Lessee Lease Description [Line Items] | ||
Operating leases, lease term | 2 years | |
Maximum | ||
Lessee Lease Description [Line Items] | ||
Operating leases, lease term | 8 years | |
Operating lease option to extend term | 5 years |
Leases - Schedule of Right-of-U
Leases - Schedule of Right-of-Use Assets and Operating Lease Liabilities (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Abstract] | |
Cash paid for operating lease liabilities | $ 576 |
Operating lease cost | 544 |
Non-cash right-of-use assets obtained in exchange for new operating lease obligations | $ 6,418 |
Weighted-average remaining lease term | 3 years 1 month 6 days |
Weighted-average discount rate | 3.80% |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Jan. 01, 2019 |
Maturities of lease liabilities due in the 12 month period ending March 31, | ||
2020 | $ 2,289 | |
2021 | 1,750 | |
2022 | 1,246 | |
2023 | 937 | |
2024 | 902 | |
Thereafter | 453 | |
Operating lease liabilities payments due | 7,577 | |
Less imputed interest | (596) | |
Total lease liabilities | 6,981 | $ 6,418 |
Current operating lease liabilities | 2,061 | |
Operating lease liabilities - noncurrent | 4,920 | |
Total lease liabilities | $ 6,981 | $ 6,418 |
Earnings per Share - Computatio
Earnings per Share - Computation of Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Numerator—basic and diluted: | ||
Net income | $ 5,302 | $ 10,758 |
Denominator: | ||
Weighted-average common shares - basic common stock | 21,750,305 | 21,026,154 |
Weighted-average common shares - diluted common stock | 22,534,885 | 22,295,213 |
Net income per share - basic common stock | $ 0.24 | $ 0.51 |
Net income per share - diluted common stock | $ 0.24 | $ 0.48 |
Denominator calculation from basic to diluted: | ||
Weighted-average common shares - basic common stock | 21,750,305 | 21,026,154 |
Stock options and other dilutive awards | 784,580 | 1,269,059 |
Weighted-average common shares - diluted common stock | 22,534,885 | 22,295,213 |
Shares excluded from diluted weighted-average shares: | ||
Shares excluded from diluted weighted-average shares | 119,378 | 75,926 |
Restricted stock units and restricted stock awards | ||
Shares excluded from diluted weighted-average shares: | ||
Shares excluded from diluted weighted-average shares | 119,378 | 75,926 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Unrecognized tax benefits, interest or penalties recognized | $ 0 | $ 0 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Class Of Stock [Line Items] | ||
Total intrinsic value of options exercised | $ 6,733 | $ 16,113 |
Stock-based compensation, unrecognized expense, nonvested granted awards | 2,657 | |
401(k) Retirement Savings Plan | ||
Class Of Stock [Line Items] | ||
Defined benefit plan, contributed by employer net of forfeitures | $ 318 | $ 230 |
Stock options | ||
Class Of Stock [Line Items] | ||
Rate of reduced stock-based compensation expense for estimated forfeiture | 7.30% | 7.30% |
Time based restricted stock units | ||
Class Of Stock [Line Items] | ||
Vesting period | 4 years | |
Time based restricted stock awards | ||
Class Of Stock [Line Items] | ||
Vesting period | 4 years | |
Performance and time based restricted stock awards | ||
Class Of Stock [Line Items] | ||
Vesting period | 3 years | |
Performance and time based restricted stock units | ||
Class Of Stock [Line Items] | ||
Vesting period | 3 years | |
Restricted stock units and restricted stock awards | ||
Class Of Stock [Line Items] | ||
Unrecognized compensation cost related to unvested employee excluding estimated forfeitures | $ 17,069 | |
Amount expected to recognized over weighted-average period | 2 years 10 months 24 days | |
Maximum | Stock options | ||
Class Of Stock [Line Items] | ||
Stock option period, expiration | 10 years | |
Vesting period | 4 years | |
Minimum | Stock options | ||
Class Of Stock [Line Items] | ||
Stock option period, expiration | 7 years | |
Vesting period | 1 year | |
2002 Plan | ||
Class Of Stock [Line Items] | ||
Stock option shares outstanding | 2,018 | |
Number of equity awards available for grant | 0 | |
2012 Plan | ||
Class Of Stock [Line Items] | ||
Stock option shares outstanding | 142,786 | |
Number of equity awards available for grant | 0 | |
2014 Plan | ||
Class Of Stock [Line Items] | ||
Stock option shares outstanding | 1,085,122 | |
Number of equity awards available for grant | 1,842,662 | |
Terms of shares available for issuance | The number of shares available for issuance under the 2014 Plan also is increased annually on the first day of each fiscal year equal to the least of: 895,346 shares; 4% of the outstanding shares of common stock as of the last day of the Company's immediately preceding fiscal year; or such other amount as the Company's board of directors may determine. | |
Common stock capital shares reserved for future issuance maximum annual increase | 895,346 | |
Percentage on outstanding shares of common stock | 4.00% | |
Number of additional number of shares reserve to provision | 0 | |
2012 Plan and 2002 Plan | Maximum | ||
Class Of Stock [Line Items] | ||
Stock option shares outstanding | 2,328,569 | |
2014 ESPP Plan | ||
Class Of Stock [Line Items] | ||
Number of equity awards available for grant | 729,681 | |
Terms of shares available for issuance | The number of shares available for sale under the ESPP is increased annually on the first day of each fiscal year equal to the least of: 179,069 shares; 1.5% of the outstanding shares of the Company?s common stock on the last day of the Company?s immediately preceding fiscal year; or such other amount as may be determined by the administrator. | |
Percentage on outstanding shares of common stock | 1.50% | |
Number of additional number of shares reserve to provision | 0 | |
Maximum percentage of common stock eligible to purchase through payroll deductions for participants | 15.00% | |
Maximum number of shares available for participant to purchase during period | 1,500 | |
Purchase price as percentage of stock price on offering period | 85.00% | |
Purchase price as percentage of stock price on exercise date | 85.00% | |
Potential increase of shares available for issuance | 179,069 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Stock Options Activity (Details) - $ / shares | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Class Of Stock [Line Items] | ||
Stock Options Outstanding, Beginning balance | 1,127,336 | |
Stock Options, Exercised | (69,779) | |
Stock Options, Forfeited | (20,959) | |
Stock Options Outstanding, Ending balance | 1,036,598 | 1,127,336 |
Stock Options, Vested and exercisable | 851,973 | |
Stock Options, Vested and expected to vest | 1,024,590 | |
Outstanding, Weighted-average exercise price, Beginning balance | $ 34.89 | |
Weighted-average exercise price, Exercised | 23.44 | |
Weighted-average exercise price, Forfeited | 43.07 | |
Outstanding, Weighted-average exercise price, Ending balance | 35.50 | $ 34.89 |
Weighted-average exercise price, Vested and exercisable | 33.65 | |
Weighted-average exercise price, Vested and expected to vest | $ 35.40 | |
Remaining weighted-average contractual term, Outstanding | 3 years 7 months 6 days | 3 years 10 months 2 days |
Remaining weighted-average contractual term, Vested and exercisable | 3 years 6 months 3 days | |
Remaining weighted-average contractual term, Vested and expected to vest | 3 years 7 months 2 days | |
Outstanding, Per share average intrinsic value | $ 59.87 | $ 89.28 |
Per share average intrinsic value, Vested and exercisable | 61.72 | |
Per share average intrinsic value, Vested and expected to vest | 59.97 | |
Minimum | ||
Class Of Stock [Line Items] | ||
Outstanding, Price per share, Beginning balance | 0.75 | |
Price per share, Exercised | 0.75 | |
Price per share, Forfeited | 38.54 | |
Outstanding, Price per share, Ending balance | 0.75 | 0.75 |
Price per share, Vested and exercisable | 0.75 | |
Price per share, Vested and expected to vest | 0.75 | |
Maximum | ||
Class Of Stock [Line Items] | ||
Outstanding, Price per share, Beginning balance | 83.30 | |
Price per share, Exercised | 58.95 | |
Price per share, Forfeited | 44.19 | |
Outstanding, Price per share, Ending balance | 83.30 | $ 83.30 |
Price per share, Vested and exercisable | 83.30 | |
Price per share, Vested and expected to vest | $ 83.30 |
Stockholders' Equity - Summar_2
Stockholders' Equity - Summary of Restricted Stock Activity (Details) | 3 Months Ended | |
Mar. 31, 2019$ / sharesshares | ||
Time based restricted stock units | ||
Class Of Stock [Line Items] | ||
Unvested restricted stock units/ awards outstanding, Beginning balance | 58,589 | |
Granted | 34,870 | |
Vested | (7,453) | |
Forfeited/canceled | (54) | |
Unvested restricted stock units/ awards outstanding, Ending balance | 85,952 | [1] |
Performance and time based restricted stock units | ||
Class Of Stock [Line Items] | ||
Unvested restricted stock units/ awards outstanding, Beginning balance | 8,739 | |
Vested | (4,366) | |
Unvested restricted stock units/ awards outstanding, Ending balance | 4,373 | [1] |
Restricted stock units | ||
Class Of Stock [Line Items] | ||
Unvested restricted stock units/ awards outstanding, Beginning balance | 67,328 | |
Granted | 34,870 | |
Vested | (11,819) | |
Forfeited/canceled | (54) | |
Unvested restricted stock units/ awards outstanding, Ending balance | 90,325 | [1] |
Unvested and expected to vest restricted stock units/awards outstanding | 85,159 | |
Weighted-average grant date fair value per share, Unvested restricted stock units/ awards outstanding, Beginning balance | $ / shares | $ 115.16 | |
Weighted-average grant date fair value per share, Granted | $ / shares | 106.97 | |
Weighted-average grant date fair value per share, Vested | $ / shares | 103.71 | |
Weighted-average grant date fair value per share, Forfeited/canceled | $ / shares | 91.52 | |
Weighted-average grant date fair value per share, Unvested restricted stock units/ awards outstanding, Ending balance | $ / shares | 113.51 | |
Weighted-average grant date fair value per share, Unvested and expected to vest restricted stock units/awards outstanding | $ / shares | $ 113.82 | |
Time based restricted stock awards | ||
Class Of Stock [Line Items] | ||
Unvested restricted stock units/ awards outstanding, Beginning balance | 36,937 | |
Granted | 26,778 | |
Vested | (6,319) | |
Forfeited/canceled | (2,079) | |
Unvested restricted stock units/ awards outstanding, Ending balance | 55,317 | [1] |
Performance and time based restricted stock awards | ||
Class Of Stock [Line Items] | ||
Unvested restricted stock units/ awards outstanding, Beginning balance | 47,821 | |
Granted | 40,166 | |
Vested | (15,732) | |
Forfeited/canceled | (3,839) | |
Unvested restricted stock units/ awards outstanding, Ending balance | 68,416 | [1] |
Restricted stock awards | ||
Class Of Stock [Line Items] | ||
Unvested restricted stock units/ awards outstanding, Beginning balance | 84,758 | |
Granted | 66,944 | |
Vested | (22,051) | |
Forfeited/canceled | (5,918) | |
Unvested restricted stock units/ awards outstanding, Ending balance | 123,733 | [1] |
Unvested and expected to vest restricted stock units/awards outstanding | 92,218 | |
Weighted-average grant date fair value per share, Unvested restricted stock units/ awards outstanding, Beginning balance | $ / shares | $ 115.80 | |
Weighted-average grant date fair value per share, Granted | $ / shares | 106.97 | |
Weighted-average grant date fair value per share, Vested | $ / shares | 115.73 | |
Weighted-average grant date fair value per share, Forfeited/canceled | $ / shares | 100.62 | |
Weighted-average grant date fair value per share, Unvested restricted stock units/ awards outstanding, Ending balance | $ / shares | 112.15 | |
Weighted-average grant date fair value per share, Unvested and expected to vest restricted stock units/awards outstanding | $ / shares | $ 112.18 | |
[1] | Outstanding restricted stock units and restricted stock awards are based on the maximum payout of the targeted number of shares. |
Stockholders' Equity - Summar_3
Stockholders' Equity - Summary of Stock-based Compensation Expense Recognized (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Stock-based compensation expense by type of award: | ||
Stock-based compensation expense | $ 3,586 | $ 3,381 |
Stock Option Plan Awards | ||
Stock-based compensation expense by type of award: | ||
Stock-based compensation expense | 1,147 | 1,951 |
Restricted stock units and restricted stock awards | ||
Stock-based compensation expense by type of award: | ||
Stock-based compensation expense | 2,257 | 1,239 |
Employee Stock Purchase Plan | ||
Stock-based compensation expense by type of award: | ||
Stock-based compensation expense | $ 182 | $ 191 |
Stockholders' Equity - Summar_4
Stockholders' Equity - Summary of Stock-based Compensation Expense Recognized in Income Statement (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Class Of Stock [Line Items] | ||
Stock-based compensation expense | $ 3,586 | $ 3,381 |
Cost of Revenue | ||
Class Of Stock [Line Items] | ||
Stock-based compensation expense | 285 | 273 |
Research and Development | ||
Class Of Stock [Line Items] | ||
Stock-based compensation expense | 377 | 331 |
Sales and Marketing | ||
Class Of Stock [Line Items] | ||
Stock-based compensation expense | 690 | 548 |
General and Administrative | ||
Class Of Stock [Line Items] | ||
Stock-based compensation expense | $ 2,234 | $ 2,229 |
Commitments and Contingencies -
Commitments and Contingencies - Minimum Aggregate Payments Due under Operating Leases and Specified Non-Cancelable Contractual Obligations Consist of Software License and Maintenance Agreements (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
Non-cancelable contractual obligations, Remaining 9 months of 2019 | $ 433 |
Non-cancelable contractual obligations, 2020 | 578 |
Non-cancelable contractual obligations, 2021 | 457 |
Non-cancelable contractual obligations, Total minimum payments | $ 1,468 |
Commitments and Contingencies_2
Commitments and Contingencies - Additional Information (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
Outstanding purchase orders with its outside vendors and suppliers | $ 61,000 |
Commitments and Contingencies_3
Commitments and Contingencies - Schedule of Changes in Aggregate Product Warranty Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | ||
Product warranty liability at beginning of period | $ 9,530 | $ 6,171 |
Accruals for warranties issued | 1,821 | 7,693 |
Adjustments related to preexisting warranties (including changes in estimates) | (275) | 90 |
Settlements made (in cash or in kind) | (1,319) | (4,424) |
Product warranty liability at end of period | $ 9,757 | $ 9,530 |
Foreign Currency Exchange Con_2
Foreign Currency Exchange Contracts and Hedging - Additional Information (Details) | 3 Months Ended | |
Mar. 31, 2019USD ($)Contract | Mar. 31, 2018USD ($)Contract | |
Derivatives Fair Value [Line Items] | ||
Number of contract designated hedges | Contract | 22 | 26 |
Number of contract non-designated hedges | Contract | 3 | 3 |
Non-Designated Derivative Contracts | ||
Derivatives Fair Value [Line Items] | ||
Derivative contracts notional amounts | $ 2,369,000 | $ 2,397,000 |
Designated Derivative Contracts | ||
Derivatives Fair Value [Line Items] | ||
Derivative contracts notional amounts | 16,072,000 | 17,885,000 |
Unrealized (loss) gain on derivative | $ 260,000 | $ (77,000) |
Minimum | ||
Derivatives Fair Value [Line Items] | ||
Derivative contracts expiration period | 1 month | |
Maximum | ||
Derivatives Fair Value [Line Items] | ||
Derivative contracts expiration period | 6 months |