Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2020 | Apr. 30, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-35108 | |
Entity Registrant Name | SERVICESOURCE INTERNATIONAL, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 81-0578975 | |
Entity Address, Address Line One | 707 17th Street, 25th Floor | |
Entity Address, City or Town | Denver, | |
Entity Address, State or Province | CO | |
Entity Address, Postal Zip Code | 80202 | |
City Area Code | (720) | |
Local Phone Number | 889-8500 | |
Title of 12(b) Security | Common Stock, $0.0001 Par Value | |
Trading Symbol | SREV | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Small Business | true | |
Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common stock, shares outstanding | 95,134,350 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0001310114 | |
Current Fiscal Year End Date | --12-31 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 47,181 | $ 27,089 |
Accounts receivable, net | 43,354 | 41,754 |
Prepaid expenses and other | 5,939 | 7,296 |
Total current assets | 96,474 | 76,139 |
Property and equipment, net | 34,242 | 36,149 |
ROU assets | 33,450 | 36,396 |
Contract acquisition costs | 1,302 | 1,602 |
Goodwill | 6,334 | 6,334 |
Other assets | 4,764 | 4,844 |
Total assets | 176,566 | 161,464 |
Current liabilities: | ||
Accounts payable | 1,115 | 4,392 |
Accrued expenses | 3,456 | 3,366 |
Accrued compensation and benefits | 15,746 | 16,700 |
Revolver | 27,000 | 0 |
Operating lease liabilities | 10,132 | 9,652 |
Other current liabilities | 1,662 | 2,218 |
Total current liabilities | 59,111 | 36,328 |
Operating lease liabilities, net of current portion | 30,800 | 33,716 |
Other long-term liabilities | 2,520 | 2,983 |
Total liabilities | 92,431 | 73,027 |
Commitments and contingencies (Note 10) | ||
Stockholders’ equity: | ||
Preferred stock, $0.001 par value; 20,000 shares authorized and none issued and outstanding | 0 | 0 |
Common stock; $0.0001 par value; 1,000,000 shares authorized; 95,262 shares issued and 95,141 shares outstanding as of March 31, 2020; 94,972 shares issued and 94,851 shares outstanding as of December 31, 2019 | 10 | 9 |
Treasury stock | (441) | (441) |
Additional paid-in capital | 375,666 | 374,525 |
Accumulated deficit | (292,008) | (286,066) |
Accumulated other comprehensive income | 908 | 410 |
Total stockholders’ equity | 84,135 | 88,437 |
Total liabilities and stockholders’ equity | $ 176,566 | $ 161,464 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued (in shares) | 95,262,000 | 94,972,000 |
Common stock, shares outstanding (in shares) | 95,141,000 | 94,851,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Statement [Abstract] | ||
Net revenue | $ 50,114 | $ 55,511 |
Cost of revenue | 35,560 | 39,476 |
Gross profit | 14,554 | 16,035 |
Operating expenses: | ||
Sales and marketing | 7,268 | 7,949 |
Research and development | 1,181 | 1,263 |
General and administrative | 10,688 | 10,982 |
Restructuring and other related costs | 467 | 1,058 |
Total operating expenses | 19,604 | 21,252 |
Loss from operations | (5,050) | (5,217) |
Interest and other expense, net | (874) | (490) |
Loss before provision for income taxes | (5,924) | (5,707) |
Provision for income tax expense | (18) | (12) |
Net loss | $ (5,942) | $ (5,719) |
Net loss per common share: | ||
Basic and diluted (in dollars per share) | $ (0.06) | $ (0.06) |
Weighted-average common shares outstanding: | ||
Basic and diluted (in shares) | 94,968 | 92,914 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (5,942) | $ (5,719) |
Other comprehensive income | ||
Foreign currency translation adjustments | 498 | 76 |
Other comprehensive income | 498 | 76 |
Comprehensive loss | $ (5,444) | $ (5,643) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Treasury Shares/Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income |
Beginning balance (in shares) at Dec. 31, 2018 | 92,895 | (121) | ||||
Stockholders' equity, beginning balance at Dec. 31, 2018 | $ 101,833 | $ 9 | $ (441) | $ 369,246 | $ (267,383) | $ 402 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (5,719) | (5,719) | ||||
Other comprehensive income | 76 | 76 | ||||
Stock-based compensation | 1,564 | 1,564 | ||||
Issuance of common stock, RSUs (in shares) | 229 | |||||
Issuance of common stock, RSUs | 0 | |||||
Proceeds from the exercise of stock options and ESPP (in shares) | 139 | |||||
Proceeds from the exercise of stock options and ESPP | 141 | 141 | ||||
Ending balance (in shares) at Mar. 31, 2019 | 93,263 | (121) | ||||
Stockholders' equity, ending balance at Mar. 31, 2019 | 97,895 | $ 9 | $ (441) | 370,951 | (273,102) | 478 |
Beginning balance (in shares) at Dec. 31, 2019 | 94,972 | (121) | ||||
Stockholders' equity, beginning balance at Dec. 31, 2019 | 88,437 | $ 9 | $ (441) | 374,525 | (286,066) | 410 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (5,942) | (5,942) | ||||
Other comprehensive income | 498 | 498 | ||||
Stock-based compensation | 1,066 | 1,066 | ||||
Issuance of common stock, RSUs (in shares) | 178 | |||||
Issuance of common stock, RSUs | 0 | $ 1 | (1) | |||
Proceeds from the exercise of stock options and ESPP (in shares) | 112 | |||||
Proceeds from the exercise of stock options and ESPP | 76 | 76 | ||||
Ending balance (in shares) at Mar. 31, 2020 | 95,262 | (121) | ||||
Stockholders' equity, ending balance at Mar. 31, 2020 | $ 84,135 | $ 10 | $ (441) | $ 375,666 | $ (292,008) | $ 908 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash flows from operating activities: | ||
Net loss | $ (5,942) | $ (5,719) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ||
Depreciation and amortization | 3,396 | 3,285 |
Amortization of contract acquisition costs | 279 | 400 |
Amortization of ROU assets | 2,313 | 2,239 |
Stock-based compensation | 1,045 | 1,570 |
Restructuring and other related costs | 431 | 1,041 |
Other | 18 | 18 |
Net changes in operating assets and liabilities: | ||
Accounts receivable, net | (1,722) | 3,258 |
Prepaid expenses and other assets | 1,323 | (1,277) |
Contract acquisition costs | 9 | (108) |
Accounts payable | (3,253) | (18) |
Accrued compensation and benefits | (1,210) | 1,094 |
Operating lease liabilities | (1,838) | (2,338) |
Accrued expenses | 223 | (1,023) |
Other liabilities | (741) | (338) |
Net cash (used in) provided by operating activities | (5,669) | 2,084 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (1,557) | (2,898) |
Net cash used in investing activities | (1,557) | (2,898) |
Cash flows from financing activities: | ||
Repayment on finance lease obligations | (238) | (190) |
Proceeds from Revolver | 27,000 | 0 |
Proceeds from issuance of common stock | 76 | 141 |
Net cash provided by (used in) financing activities | 26,838 | (49) |
Effect of exchange rate changes on cash and cash equivalents and restricted cash | 480 | 185 |
Net change in cash and cash equivalents and restricted cash | 20,092 | (678) |
Cash and cash equivalents and restricted cash, beginning of period | 29,383 | 27,779 |
Cash and cash equivalents and restricted cash, end of period | 49,475 | 27,101 |
Supplemental disclosures of cash flow information: | ||
Cash paid for interest | 55 | 66 |
Supplemental disclosures of non-cash activities: | ||
Purchase of property and equipment accrued in accounts payable and accrued expenses | 10 | 208 |
ROU assets obtained in exchange for new lease liabilities | 204 | 9,656 |
ASU 2016-02 | ||
Supplemental disclosures of non-cash activities: | ||
Increase in operating lease liabilities related to the adoption of ASC 842 | 0 | 32,104 |
Increase in ROU assets related to the adoption of ASC 842 | 0 | 29,526 |
Decrease in prepaids and other assets related to the adoption of ASC 842 | 0 | (749) |
Decrease in other liabilities related to the adoption of ASC 842 | $ 0 | $ (3,327) |
The Company
The Company | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
The Company | The Company ServiceSource is a leading provider of BPaaS (business process-as-a-service) solutions that enable the transformation of go-to-market organizations and functions for global technology clients. We design, deploy, and operate a suite of innovative solutions and complex processes that support and augment our clients’ B2B customer acquisition, engagement, expansion and retention activities. Our clients - ranging from Fortune 500 technology titans to high-growth disruptors and innovators - rely on our holistic customer engagement methodology and process excellence, global scale and delivery footprint, and data analytics and business insights to deliver trusted business outcomes that have a meaningful and material positive impact to their long-term revenue and profitability objectives. Through our unique integration of people, process and technology - leveraged against our 20 years of experience and domain expertise in the cloud, software, hardware, medical device and diagnostic equipment, and industrial IoT sectors - we effect and transact billions of dollars of B2B commerce in more than 175 countries on our clients’ behalf annually. “ServiceSource,” “the Company,” “we,” “us,” or “our”, as used herein, refer to ServiceSource International, Inc. and its wholly-owned subsidiaries, unless the context indicates otherwise. For a summary of commonly used industry terms and abbreviations used in this report, see Glossary of Terms located at the end of this report. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited interim Consolidated Financial Statements include the accounts of ServiceSource International, Inc. and its wholly-owned subsidiaries and have been prepared in accordance with GAAP and with the instructions to Form 10-Q and Article 8 of Regulation S-X for interim financial information. All intercompany balances and transactions have been eliminated in consolidation. These financial statements do not include all the information required by GAAP for annual financial statements. The unaudited Consolidated Balance Sheet as of December 31, 2019 has been derived from the Company’s audited annual Consolidated Financial Statements included in our annual report on Form 10-K for the year ended December 31, 2019 filed with the SEC on February 19, 2020 . In the opinion of management, these Consolidated Financial Statements reflect all adjustments, including normal recurring adjustments, management considers necessary for a fair presentation of the Company’s financial position, operating results, and cash flows for the interim periods presented. These Consolidated Financial Statements and accompanying notes should be read in conjunction with our audited Consolidated Financial Statements and the notes thereto for the year ended December 31, 2019 , included in our annual report on Form 10-K. Interim results are not necessarily indicative of results for the entire year. Use of Estimates The preparation of the Consolidated Financial Statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the Consolidated Financial Statements and the reported amount of net revenue and expenses during the reporting period. The Company bases its estimates and judgments on historical experience and on various assumptions that it believes are reasonable under the circumstances. However, future events are subject to change and estimates and judgments routinely require adjustment. Actual results and outcomes may differ from our estimates. Reclassifications Certain items on the Consolidated Statements of Cash Flows for the three months ended March 31, 2019 have been reclassified to conform to the current year presentation. These reclassifications did not affect the Consolidated Balance Sheet, Consolidated Statements of Operations, Consolidated Statements of Comprehensive Loss or Consolidated Statements of Stockholders' Equity. New Accounting Standards Issued but Not yet Adopted Financial Instruments - Credit Losses In June 2016, the FASB issued an ASU that amends the measurement of credit losses on financial instruments and requires measurement and recognition of expected versus incurred credit losses for financial assets held. This ASU is effective for annual periods and interim periods for those annual periods beginning after December 15, 2022, with early adoption permitted. This standard will apply to the Company's accounts receivables and contract assets. Based on our current analysis, the Company does not expect the adoption to have a material impact on its Consolidated Financial Statements as credit losses associated from trade receivables have historically been insignificant. The Company will adopt this standard effective January 1, 2023. Income Taxes In December 2019, the FASB issued an ASU that simplifies the accounting for income taxes by eliminating certain exceptions to the guidance in ASC 740 related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. This ASU is effective for annual periods and interim periods for those annual periods beginning after December 15, 2020, with early adoption permitted. Based on our current analysis, the Company does not expect the adoption to have a material impact on its Consolidated Financial Statements. The Company will adopt this standard effective January 1, 2021. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company follows a three-tier fair value hierarchy, which is described in detail in the Company's Annual Report on Form 10-K for the year ended December 31, 2019 . The following table presents the Company's cash and cash equivalents and restricted cash by significant investment category measured at fair value: March 31, 2020 December 31, 2019 (in thousands) Level 1: Cash $ 11,202 $ 9,142 Money market mutual funds 35,979 17,947 Cash and cash equivalents $ 47,181 $ 27,089 Restricted cash $ 2,294 $ 2,294 The Company did not have any other financial instruments or debt measured at fair value as of March 31, 2020 and 2019 . There were no transfers between levels during the three months ended March 31, 2020 and 2019 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Debt Revolving Line of Credit In July 2018 , the Company entered into a $40.0 million Revolver that allows us to borrow against our domestic receivables as defined in the credit agreement. The Revolver matures July 2021 and bears interest at a variable rate per annum based on the greater of the prime rate, the Federal Funds rate plus 0.50% or the one-month LIBOR rate plus 1.00% , plus, in each case, a margin of 1.00% for base rate borrowings or 2.00% for Eurodollar borrowings. As of March 31, 2020 , the Company had $27.0 million of borrowings outstanding under the Revolver through a six-month Eurodollar borrowing at an effective interest rate of 3.07% maturing September 2020 and an additional $2.3 million available for borrowing under the Revolver. The Eurodollar borrowings may be extended upon maturity, converted into a base rate borrowing upon maturity or require an incremental payment if our borrowing base decreases below our current amount outstanding during the term of the Eurodollar borrowing. The obligations under the credit agreement are secured by substantially all assets of the borrowers and certain of their subsidiaries, including pledges of equity in certain of the Company’s subsidiaries. The Revolver has covenants with which the Company was in compliance as of March 31, 2020 and December 31, 2019 . Deferred Debt Issuance Costs and Interest Expense Unamortized debt issuance costs related to the Revolver were $0.1 million as of March 31, 2020 and December 31, 2019 . Interest expense related to the amortization of debt issuance costs and interest expense associated with the Company's debt obligation was $0.1 million for the three months ended March 31, 2020 and 2019 . |
Leases
Leases | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Leases | Leases The Company has operating leases for office space and finance leases for certain equipment under non-cancelable agreements with various expiration dates through May 2030. Certain office leases include the option to extend the term between one to seven years and certain office leases include the option to terminate the lease upon written notice within one to eight years after lease commencement. Leases with an initial term of 12 months or less are not recorded on the balance sheet. In January 2020, the Company entered into a one-year sublease agreement with a third-party for one floor of its Manila office space, with total sublease income of approximately $1.1 million . In July 2019, the Company entered into a sublease with a third-party for its San Francisco office space leased during 2018 through the remaining term of the lease, November 30, 2023. The Company recognizes rent expense and sublease income on a straight-line basis over the lease period and accrues for rent expense and sublease income incurred but not paid. Supplemental income statement information related to leases was as follows: For the Three Months Ended March 31, 2020 2019 (in thousands) Operating lease cost $ 3,107 $ 2,881 Finance lease cost: Amortization of leased assets 188 151 Interest on lease liabilities 31 41 Total finance lease cost 219 192 Sublease income (892 ) (468 ) Net lease cost $ 2,434 $ 2,605 Supplemental balance sheet information related to leases was as follows: March 31, 2020 December 31, 2019 (in thousands) Operating leases: ROU assets $ 33,450 $ 36,396 Operating lease liabilities $ 10,132 $ 9,652 Operating lease liabilities, net of current portion 30,800 33,716 Total operating lease liabilities $ 40,932 $ 43,368 Finance leases: Property and equipment $ 2,836 $ 3,480 Accumulated depreciation (1,395 ) (1,823 ) Property and equipment, net $ 1,441 $ 1,657 Other current liabilities $ 875 $ 952 Other long-term liabilities 510 671 Total finance lease liabilities $ 1,385 $ 1,623 Lease term and discount rate information related to leases was as follows: For the Three Months Ended March 31, 2020 2019 Weighted-average remaining lease term (in years): Operating lease 5.9 5.3 Finance lease 1.6 2.5 Weighted-average discount rate: Operating lease 6.4 % 6.5 % Finance lease 7.8 % 8.3 % Maturities of lease liabilities were as follows as of March 31, 2020 : Operating Leases Operating Sublease Finance Leases Total (in thousands) Remainder of 2020 $ 9,361 $ (2,717 ) $ 771 $ 7,415 2021 11,922 (2,631 ) 633 9,924 2022 8,478 (2,538 ) 64 6,004 2023 3,555 (623 ) — 2,932 2024 2,619 — — 2,619 Thereafter 13,634 — — 13,634 Total lease payments 49,569 (8,509 ) 1,468 42,528 Less: interest (8,601 ) — (83 ) (8,684 ) Less: tenant improvement reimbursements (1) (36 ) — — (36 ) Total $ 40,932 $ (8,509 ) $ 1,385 $ 33,808 (1) Relates to tenant improvement reimbursements incurred by the Company after lease commencement, but not received from landlord as of March 31, 2020 . |
Leases | Leases The Company has operating leases for office space and finance leases for certain equipment under non-cancelable agreements with various expiration dates through May 2030. Certain office leases include the option to extend the term between one to seven years and certain office leases include the option to terminate the lease upon written notice within one to eight years after lease commencement. Leases with an initial term of 12 months or less are not recorded on the balance sheet. In January 2020, the Company entered into a one-year sublease agreement with a third-party for one floor of its Manila office space, with total sublease income of approximately $1.1 million . In July 2019, the Company entered into a sublease with a third-party for its San Francisco office space leased during 2018 through the remaining term of the lease, November 30, 2023. The Company recognizes rent expense and sublease income on a straight-line basis over the lease period and accrues for rent expense and sublease income incurred but not paid. Supplemental income statement information related to leases was as follows: For the Three Months Ended March 31, 2020 2019 (in thousands) Operating lease cost $ 3,107 $ 2,881 Finance lease cost: Amortization of leased assets 188 151 Interest on lease liabilities 31 41 Total finance lease cost 219 192 Sublease income (892 ) (468 ) Net lease cost $ 2,434 $ 2,605 Supplemental balance sheet information related to leases was as follows: March 31, 2020 December 31, 2019 (in thousands) Operating leases: ROU assets $ 33,450 $ 36,396 Operating lease liabilities $ 10,132 $ 9,652 Operating lease liabilities, net of current portion 30,800 33,716 Total operating lease liabilities $ 40,932 $ 43,368 Finance leases: Property and equipment $ 2,836 $ 3,480 Accumulated depreciation (1,395 ) (1,823 ) Property and equipment, net $ 1,441 $ 1,657 Other current liabilities $ 875 $ 952 Other long-term liabilities 510 671 Total finance lease liabilities $ 1,385 $ 1,623 Lease term and discount rate information related to leases was as follows: For the Three Months Ended March 31, 2020 2019 Weighted-average remaining lease term (in years): Operating lease 5.9 5.3 Finance lease 1.6 2.5 Weighted-average discount rate: Operating lease 6.4 % 6.5 % Finance lease 7.8 % 8.3 % Maturities of lease liabilities were as follows as of March 31, 2020 : Operating Leases Operating Sublease Finance Leases Total (in thousands) Remainder of 2020 $ 9,361 $ (2,717 ) $ 771 $ 7,415 2021 11,922 (2,631 ) 633 9,924 2022 8,478 (2,538 ) 64 6,004 2023 3,555 (623 ) — 2,932 2024 2,619 — — 2,619 Thereafter 13,634 — — 13,634 Total lease payments 49,569 (8,509 ) 1,468 42,528 Less: interest (8,601 ) — (83 ) (8,684 ) Less: tenant improvement reimbursements (1) (36 ) — — (36 ) Total $ 40,932 $ (8,509 ) $ 1,385 $ 33,808 (1) Relates to tenant improvement reimbursements incurred by the Company after lease commencement, but not received from landlord as of March 31, 2020 . |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition The following tables present the disaggregation of revenue from contracts with our clients: Revenue by Performance Obligation For the Three Months Ended March 31, 2020 2019 (in thousands) Selling services $ 49,173 $ 55,128 Professional services 941 383 Total revenue $ 50,114 $ 55,511 Revenue by Geography Revenue for each geography generally reflects commissions earned from sales of service contracts managed from revenue delivery centers in that geography and subscription sales and professional services to deploy the Company's solutions. Predominantly all the service contracts sold and managed by the revenue delivery centers relate to end customers located in the same geography. All NALA revenue represents revenue generated within the U.S. For the Three Months Ended March 31, 2020 2019 (in thousands) NALA $ 28,473 $ 33,201 EMEA 14,007 13,636 APJ 7,634 8,674 Total revenue $ 50,114 $ 55,511 Revenue by Contract Pricing For the Three Months Ended March 31, 2020 2019 (in thousands) Variable consideration $ 36,366 $ 35,782 Fixed consideration 13,748 19,729 Total revenue $ 50,114 $ 55,511 Contract Balances As of March 31, 2020 and December 31, 2019 , the contract asset balances totaled $0.02 million and $0.03 million , respectively, and the contract liability balances totaled $0.7 million and $0.8 million , respectively. Transaction Price Allocated to Remaining Performance Obligations Assuming none of the Company’s current contracts with fixed consideration are renewed, we estimate receiving approximately $36.1 million in future selling services fixed consideration as of March 31, 2020 . As of March 31, 2020 , we estimate $1.0 million in professional services fixed consideration revenue to be recognized through the remainder of 2020 . Contract Acquisition Costs Under the transition guidance, the Company recorded a $3.3 million contract acquisition asset and corresponding offset to the opening accumulated deficit balance related to previously expensed sales commissions. The Company recorded $0.2 million and $0.3 million in amortization expense related to this amount for the three months March 31, 2020 and 2019 , respectively. Detail of contract acquisition costs related to contracts obtained during the period are as follows: For the Three Months Ended March 31, 2020 2019 (in thousands) Balance at beginning of period $ 761 $ 842 Capitalized costs (21 ) 112 Amortization expense (61 ) (143 ) Balance at end of period (1) $ 679 $ 811 (1) The weighted-average remaining amortization period related to these costs was approximately 2.2 years and 1.8 years for the three months March 31, 2020 and 2019 , respectively. Impairment recognized on contract costs was insignificant for the three months ended March 31, 2020 and 2019 |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Stock-Based Compensation Expense The following table presents stock-based compensation expense as allocated within the Company's Consolidated Statements of Operations: For the Three Months Ended March 31, 2020 2019 (in thousands) Cost of revenue $ 45 $ 159 Sales and marketing 377 443 Research and development 18 (6 ) General and administrative 605 974 Total stock-based compensation $ 1,045 $ 1,570 The above table does not include capitalized stock-based compensation related to internal-use software that was immaterial for the three months ended March 31, 2020 and 2019 . Stock Awards A summary of the Company's stock option activity and related information was as follows: Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Life (Years) Intrinsic Value (in thousands) (in thousands) Outstanding as of December 31, 2019 4,146 $ 2.16 $ 1,580 Granted 20 $ 1.32 Expired and/or forfeited (77 ) $ 3.51 Outstanding as of March 31, 2020 4,089 $ 2.13 7.80 $ — Exercisable as of March 31, 2020 2,072 $ 3.01 6.80 $ — The weighted-average fair value of options granted during the three months ended March 31, 2020 and 2019 was $0.63 and $0.53 , respectively. As of March 31, 2020 , there was $1.2 million of unrecognized compensation expense related to stock options granted under the 2011 Plan, which is expected to be recognized over a weighted-average period of 2.3 years. A summary of the Company's RSU and PSU activity and related information was as follows: Units Weighted-Average Grant Date Fair Value (in thousands) Non-vested as of December 31, 2019 5,305 $ 1.88 Granted 185 $ 1.31 Vested (178 ) $ 3.27 Forfeited (322 ) $ 1.95 Non-vested as of March 31, 2020 4,990 $ 1.80 As of March 31, 2020 , there was $6.6 million of unrecognized compensation expense related to RSUs and PSUs granted under the 2011 Plan, which is expected to be recognized over a weighted-average period of 2.2 years. Potential shares of common stock that are not included in the determination of diluted net loss per share because they are anti-dilutive for the periods presented consist of stock options, unvested RSUs and shares to be purchased under our ESPP. The Company excluded from diluted earnings per share the weighted-average common share equivalents related to 4.2 million and 10.4 million shares for the three months ended March 31, 2020 and 2019 , respectively, because their effect would have been anti-dilutive. |
Restructuring and Other Related
Restructuring and Other Related Costs | 3 Months Ended |
Mar. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Related Costs | Restructuring and Other Related Costs The Company has undergone restructuring efforts to better align its cost structure with its business and market conditions. These restructuring efforts include severance and other employee costs, lease and other contract termination costs and asset impairments. Severance and other employee costs include severance payments, related employee benefits, stock-based compensation related to the accelerated vesting of certain equity awards and employee-related legal fees. Lease and other contract termination costs include charges related to lease consolidation and abandonment of spaces no longer utilized and the cancellation of certain contracts with outside vendors. Asset impairments include charges related to leasehold improvements and furniture in spaces vacated or no longer in use. The restructuring plans and future cash outlays are recorded in "Accrued expenses", "Accrued compensation and benefits" and "Other long-term liabilities" in our Consolidated Balance Sheets as of March 31, 2020 and December 31, 2019 . During 2019, the Company announced a restructuring effort resulting in a reduction of headcount and office lease costs. The Company recognized charges related to this restructuring effort of $0.5 million and $1.1 million for the three months ended March 31, 2020 and 2019 , respectively, and expects to incur additional costs through 2020. The following table presents a reconciliation of the beginning and ending fair value liability balance related to the 2019 restructuring effort: Severance and Other Employee Costs Lease Termination Costs Total (in thousands) Balance as of January 1, 2019 $ — $ — $ — Restructuring and other related costs 1,806 123 1,929 Cash paid (1,624 ) (123 ) (1,747 ) Balance as of December 31, 2019 182 — 182 Restructuring and other related costs 467 — 467 Cash paid (503 ) — (503 ) Change in estimates and non-cash charges (19 ) — (19 ) Balance as of March 31, 2020 $ 127 $ — $ 127 In May 2017 , the Company announced a restructuring effort resulting in a headcount reduction and the reduction of office space in four locations. The Company does not expect to incur additional restructuring charges related to the May 2017 restructuring as of March 31, 2020 . The following table presents a reconciliation of the beginning and ending fair value liability balance related to the May 2017 restructuring effort: Severance and Other Employee Costs Lease and Other Contract Termination Costs Asset Impairments Total (in thousands) Balance as of January 1, 2017 $ — $ — $ — $ — Restructuring and other related costs 3,483 2,939 886 7,308 Cash paid (3,060 ) (1,185 ) — (4,245 ) Change in estimates and non-cash charges — — (886 ) (886 ) Acceleration of stock-based compensation expense in additional paid-in capital (352 ) — — (352 ) Balance as of December 31, 2017 71 1,754 — 1,825 Restructuring and other related costs 120 89 — 209 Cash paid (188 ) (1,133 ) — (1,321 ) Change in estimates and non-cash charges (3 ) 252 — 249 Balance as of December 31, 2018 — 962 — 962 Cash paid — (183 ) — (183 ) Change in estimates and non-cash charges — (63 ) — (63 ) Balance as of December 31, 2019 — 716 — 716 Cash paid — (44 ) — (44 ) Change in estimates and non-cash charges — (17 ) — (17 ) Balance as of March 31, 2020 $ — $ 655 $ — $ 655 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company is subject to taxation in the U.S. and various state and foreign jurisdictions. Earnings from non-U.S. activities are subject to local country income tax. The Company computes its quarterly income tax provision by using a forecasted annual effective tax rate and adjusts for any discrete items arising during the quarter. The primary difference between the effective tax rate and the federal statutory tax rate relates to the valuation allowances on the Company’s net operating losses and foreign tax rate differences. The "Provision for income tax expense" in the Consolidated Statements of Operations primarily consists of income and withholding taxes for foreign and state jurisdictions where the Company has profitable operations, as well as valuation allowance adjustments for certain U.S. tax jurisdictions. No tax benefit was provided for losses incurred in the U.S., Ireland and Singapore because those losses are offset by a full valuation allowance. The tax years 2012 through 2020 generally remain subject to examination by federal, state and foreign tax authorities. The gross amount of the Company’s unrecognized tax benefits was $1.0 million as of March 31, 2020 and December 31, 2019 , none of which, if recognized, would affect the Company’s effective tax rate. The Company does not expect its unrecognized tax benefits to change significantly over the next 12 months. The Company recognizes interest and penalties accrued related to unrecognized tax benefits in income tax expense. During the three months ended March 31, 2020 and 2019 , interest and penalties recognized were insignificant. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Letters of Credit In connection with two of our leased facilities, the Company is required to maintain two letters of credit totaling $2.3 million . The letters of credit are secured by $2.3 million of cash in money market accounts, which are classified as restricted cash in "Other assets" in our Consolidated Balance Sheets. Non-cancelable Service Contract Commitments Future minimum payments under non-cancelable service contract commitments were as follows: March 31, 2020 (in thousands) Remainder of 2020 $ 6,539 2021 10,057 2022 9,017 2023 7,446 2024 821 Thereafter — Total $ 33,880 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited interim Consolidated Financial Statements include the accounts of ServiceSource International, Inc. and its wholly-owned subsidiaries and have been prepared in accordance with GAAP and with the instructions to Form 10-Q and Article 8 of Regulation S-X for interim financial information. All intercompany balances and transactions have been eliminated in consolidation. These financial statements do not include all the information required by GAAP for annual financial statements. The unaudited Consolidated Balance Sheet as of December 31, 2019 has been derived from the Company’s audited annual Consolidated Financial Statements included in our annual report on Form 10-K for the year ended December 31, 2019 filed with the SEC on February 19, 2020 . In the opinion of management, these Consolidated Financial Statements reflect all adjustments, including normal recurring adjustments, management considers necessary for a fair presentation of the Company’s financial position, operating results, and cash flows for the interim periods presented. These Consolidated Financial Statements and accompanying notes should be read in conjunction with our audited Consolidated Financial Statements and the notes thereto for the year ended December 31, 2019 |
Use of Estimates | Use of Estimates The preparation of the Consolidated Financial Statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the Consolidated Financial Statements and the reported amount of net revenue and expenses during the reporting period. The Company bases its estimates and judgments on historical experience and on various assumptions that it believes are reasonable under the circumstances. However, future events are subject to change and estimates and judgments routinely require adjustment. Actual results and outcomes may differ from our estimates. |
Reclassifications | Reclassifications Certain items on the Consolidated Statements of Cash Flows for the three months ended March 31, 2019 have been reclassified to conform to the current year presentation. These reclassifications did not affect the Consolidated Balance Sheet, Consolidated Statements of Operations, Consolidated Statements of Comprehensive Loss or Consolidated Statements of Stockholders' Equity. |
New Accounting Standards Issued but Not yet Adopted and New Accounting Standards Adopted | New Accounting Standards Issued but Not yet Adopted Financial Instruments - Credit Losses In June 2016, the FASB issued an ASU that amends the measurement of credit losses on financial instruments and requires measurement and recognition of expected versus incurred credit losses for financial assets held. This ASU is effective for annual periods and interim periods for those annual periods beginning after December 15, 2022, with early adoption permitted. This standard will apply to the Company's accounts receivables and contract assets. Based on our current analysis, the Company does not expect the adoption to have a material impact on its Consolidated Financial Statements as credit losses associated from trade receivables have historically been insignificant. The Company will adopt this standard effective January 1, 2023. Income Taxes In December 2019, the FASB issued an ASU that simplifies the accounting for income taxes by eliminating certain exceptions to the guidance in ASC 740 related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. This ASU is effective for annual periods and interim periods for those annual periods beginning after December 15, 2020, with early adoption permitted. Based on our current analysis, the Company does not expect the adoption to have a material impact on its Consolidated Financial Statements. The Company will adopt this standard effective January 1, 2021. |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Summary of Financial Instruments Measured at Fair Value | The following table presents the Company's cash and cash equivalents and restricted cash by significant investment category measured at fair value: March 31, 2020 December 31, 2019 (in thousands) Level 1: Cash $ 11,202 $ 9,142 Money market mutual funds 35,979 17,947 Cash and cash equivalents $ 47,181 $ 27,089 Restricted cash $ 2,294 $ 2,294 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Summary of supplemental income statement information and other information | Lease term and discount rate information related to leases was as follows: For the Three Months Ended March 31, 2020 2019 Weighted-average remaining lease term (in years): Operating lease 5.9 5.3 Finance lease 1.6 2.5 Weighted-average discount rate: Operating lease 6.4 % 6.5 % Finance lease 7.8 % 8.3 % Supplemental income statement information related to leases was as follows: For the Three Months Ended March 31, 2020 2019 (in thousands) Operating lease cost $ 3,107 $ 2,881 Finance lease cost: Amortization of leased assets 188 151 Interest on lease liabilities 31 41 Total finance lease cost 219 192 Sublease income (892 ) (468 ) Net lease cost $ 2,434 $ 2,605 |
Summary of supplemental balance sheet information | Supplemental balance sheet information related to leases was as follows: March 31, 2020 December 31, 2019 (in thousands) Operating leases: ROU assets $ 33,450 $ 36,396 Operating lease liabilities $ 10,132 $ 9,652 Operating lease liabilities, net of current portion 30,800 33,716 Total operating lease liabilities $ 40,932 $ 43,368 Finance leases: Property and equipment $ 2,836 $ 3,480 Accumulated depreciation (1,395 ) (1,823 ) Property and equipment, net $ 1,441 $ 1,657 Other current liabilities $ 875 $ 952 Other long-term liabilities 510 671 Total finance lease liabilities $ 1,385 $ 1,623 |
Summary of maturities of operating lease liabilities | Maturities of lease liabilities were as follows as of March 31, 2020 : Operating Leases Operating Sublease Finance Leases Total (in thousands) Remainder of 2020 $ 9,361 $ (2,717 ) $ 771 $ 7,415 2021 11,922 (2,631 ) 633 9,924 2022 8,478 (2,538 ) 64 6,004 2023 3,555 (623 ) — 2,932 2024 2,619 — — 2,619 Thereafter 13,634 — — 13,634 Total lease payments 49,569 (8,509 ) 1,468 42,528 Less: interest (8,601 ) — (83 ) (8,684 ) Less: tenant improvement reimbursements (1) (36 ) — — (36 ) Total $ 40,932 $ (8,509 ) $ 1,385 $ 33,808 (1) Relates to tenant improvement reimbursements incurred by the Company after lease commencement, but not received from landlord as of March 31, 2020 . |
Summary of maturities of finance lease liabilities | Maturities of lease liabilities were as follows as of March 31, 2020 : Operating Leases Operating Sublease Finance Leases Total (in thousands) Remainder of 2020 $ 9,361 $ (2,717 ) $ 771 $ 7,415 2021 11,922 (2,631 ) 633 9,924 2022 8,478 (2,538 ) 64 6,004 2023 3,555 (623 ) — 2,932 2024 2,619 — — 2,619 Thereafter 13,634 — — 13,634 Total lease payments 49,569 (8,509 ) 1,468 42,528 Less: interest (8,601 ) — (83 ) (8,684 ) Less: tenant improvement reimbursements (1) (36 ) — — (36 ) Total $ 40,932 $ (8,509 ) $ 1,385 $ 33,808 (1) Relates to tenant improvement reimbursements incurred by the Company after lease commencement, but not received from landlord as of March 31, 2020 . |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue From Contracts with Clients | The following tables present the disaggregation of revenue from contracts with our clients: Revenue by Performance Obligation For the Three Months Ended March 31, 2020 2019 (in thousands) Selling services $ 49,173 $ 55,128 Professional services 941 383 Total revenue $ 50,114 $ 55,511 Revenue by Geography Revenue for each geography generally reflects commissions earned from sales of service contracts managed from revenue delivery centers in that geography and subscription sales and professional services to deploy the Company's solutions. Predominantly all the service contracts sold and managed by the revenue delivery centers relate to end customers located in the same geography. All NALA revenue represents revenue generated within the U.S. For the Three Months Ended March 31, 2020 2019 (in thousands) NALA $ 28,473 $ 33,201 EMEA 14,007 13,636 APJ 7,634 8,674 Total revenue $ 50,114 $ 55,511 Revenue by Contract Pricing For the Three Months Ended March 31, 2020 2019 (in thousands) Variable consideration $ 36,366 $ 35,782 Fixed consideration 13,748 19,729 Total revenue $ 50,114 $ 55,511 |
Capitalized Contract Cost | Detail of contract acquisition costs related to contracts obtained during the period are as follows: For the Three Months Ended March 31, 2020 2019 (in thousands) Balance at beginning of period $ 761 $ 842 Capitalized costs (21 ) 112 Amortization expense (61 ) (143 ) Balance at end of period (1) $ 679 $ 811 (1) The weighted-average remaining amortization period related to these costs was approximately 2.2 years and 1.8 years for the three months March 31, 2020 and 2019 , respectively. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Stock-Based Compensation Expense | The following table presents stock-based compensation expense as allocated within the Company's Consolidated Statements of Operations: For the Three Months Ended March 31, 2020 2019 (in thousands) Cost of revenue $ 45 $ 159 Sales and marketing 377 443 Research and development 18 (6 ) General and administrative 605 974 Total stock-based compensation $ 1,045 $ 1,570 |
Summary of Option and Restricted Stock Activity | A summary of the Company's stock option activity and related information was as follows: Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Life (Years) Intrinsic Value (in thousands) (in thousands) Outstanding as of December 31, 2019 4,146 $ 2.16 $ 1,580 Granted 20 $ 1.32 Expired and/or forfeited (77 ) $ 3.51 Outstanding as of March 31, 2020 4,089 $ 2.13 7.80 $ — Exercisable as of March 31, 2020 2,072 $ 3.01 6.80 $ — |
Summary of Additional Information Concerning Vested RSUs and PSUs | A summary of the Company's RSU and PSU activity and related information was as follows: Units Weighted-Average Grant Date Fair Value (in thousands) Non-vested as of December 31, 2019 5,305 $ 1.88 Granted 185 $ 1.31 Vested (178 ) $ 3.27 Forfeited (322 ) $ 1.95 Non-vested as of March 31, 2020 4,990 $ 1.80 |
Restructuring and Other Relat_2
Restructuring and Other Related Costs (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring and Other Reserve Activities | The following table presents a reconciliation of the beginning and ending fair value liability balance related to the 2019 restructuring effort: Severance and Other Employee Costs Lease Termination Costs Total (in thousands) Balance as of January 1, 2019 $ — $ — $ — Restructuring and other related costs 1,806 123 1,929 Cash paid (1,624 ) (123 ) (1,747 ) Balance as of December 31, 2019 182 — 182 Restructuring and other related costs 467 — 467 Cash paid (503 ) — (503 ) Change in estimates and non-cash charges (19 ) — (19 ) Balance as of March 31, 2020 $ 127 $ — $ 127 The following table presents a reconciliation of the beginning and ending fair value liability balance related to the May 2017 restructuring effort: Severance and Other Employee Costs Lease and Other Contract Termination Costs Asset Impairments Total (in thousands) Balance as of January 1, 2017 $ — $ — $ — $ — Restructuring and other related costs 3,483 2,939 886 7,308 Cash paid (3,060 ) (1,185 ) — (4,245 ) Change in estimates and non-cash charges — — (886 ) (886 ) Acceleration of stock-based compensation expense in additional paid-in capital (352 ) — — (352 ) Balance as of December 31, 2017 71 1,754 — 1,825 Restructuring and other related costs 120 89 — 209 Cash paid (188 ) (1,133 ) — (1,321 ) Change in estimates and non-cash charges (3 ) 252 — 249 Balance as of December 31, 2018 — 962 — 962 Cash paid — (183 ) — (183 ) Change in estimates and non-cash charges — (63 ) — (63 ) Balance as of December 31, 2019 — 716 — 716 Cash paid — (44 ) — (44 ) Change in estimates and non-cash charges — (17 ) — (17 ) Balance as of March 31, 2020 $ — $ 655 $ — $ 655 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Minimum Payments Under Non-cancelable Service Contract Commitments | Future minimum payments under non-cancelable service contract commitments were as follows: March 31, 2020 (in thousands) Remainder of 2020 $ 6,539 2021 10,057 2022 9,017 2023 7,446 2024 821 Thereafter — Total $ 33,880 |
The Company (Details)
The Company (Details) | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Accounting Policies [Abstract] | ||
Years of operating experience | 20 years | |
Number of countries in which company operates | 175 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Summary of Financial Instruments (Details) - Level 1 - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | $ 47,181 | $ 27,089 |
Restricted cash | 2,294 | 2,294 |
Cash | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 11,202 | 9,142 |
Money market mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | $ 35,979 | $ 17,947 |
Debt (Details)
Debt (Details) - USD ($) | 1 Months Ended | 3 Months Ended | ||
Jul. 31, 2018 | Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | ||||
Revolver | $ 27,000,000 | $ 0 | ||
Revolving Credit Facility | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 40,000,000 | |||
Revolver | $ 27,000,000 | |||
Effective interest rate | 3.07% | |||
Line of credit facility, remaining borrowing capacity | $ 2,300,000 | |||
Deferred loan costs | 100,000 | $ 100,000 | ||
Interest expense | $ 100,000 | $ 100,000 | ||
Federal Funds rate | Revolving Credit Facility | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Basis spread of interest rate | 0.50% | |||
LIBOR | Revolving Credit Facility | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Basis spread of interest rate | 1.00% | |||
Base rate | Revolving Credit Facility | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Basis spread of interest rate | 1.00% | |||
Eurodollar | Revolving Credit Facility | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Basis spread of interest rate | 2.00% |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2020 | Jan. 31, 2020 | |
Lessee, Lease, Description [Line Items] | ||||
Sublease income | $ 892 | $ 468 | ||
Sublease agreement, term | 1 year | |||
Minimum | ||||
Lessee, Lease, Description [Line Items] | ||||
Option to extend, term (in years) | 1 year | |||
Option to terminate, term (in years) | 1 year | |||
Maximum | ||||
Lessee, Lease, Description [Line Items] | ||||
Option to extend, term (in years) | 7 years | |||
Option to terminate, term (in years) | 8 years | |||
Forecast | ||||
Lessee, Lease, Description [Line Items] | ||||
Sublease income | $ 1,100 |
Leases - Supplemental Income St
Leases - Supplemental Income Statement Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 3,107 | $ 2,881 |
Finance lease cost: | ||
Amortization of leased assets | 188 | 151 |
Interest on lease liabilities | 31 | 41 |
Total finance lease cost | 219 | 192 |
Sublease income | (892) | (468) |
Net lease cost | $ 2,434 | $ 2,605 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Operating leases: | ||
ROU assets | $ 33,450 | $ 36,396 |
Operating lease liabilities | 10,132 | 9,652 |
Operating lease liabilities, net of current portion | 30,800 | 33,716 |
Total operating lease liabilities | 40,932 | 43,368 |
Finance leases: | ||
Property and equipment | 2,836 | 3,480 |
Accumulated depreciation | (1,395) | (1,823) |
Property and equipment, net | 1,441 | 1,657 |
Other current liabilities | 875 | 952 |
Other long-term liabilities | 510 | 671 |
Total finance lease liabilities | $ 1,385 | $ 1,623 |
Leases - Lease Term and Discoun
Leases - Lease Term and Discount Rate (Details) | Mar. 31, 2020 | Mar. 31, 2019 |
Weighted-average remaining lease term (in years): | ||
Operating lease | 5 years 10 months 24 days | 5 years 3 months 18 days |
Finance lease | 1 year 7 months 6 days | 2 years 6 months |
Weighted-average discount rate: | ||
Operating lease | 6.40% | 6.50% |
Finance lease | 7.80% | 8.30% |
Leases - Maturity of Lease Liab
Leases - Maturity of Lease Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Operating Leases | ||
Remainder of 2020 | $ 9,361 | |
2020 | 11,922 | |
2021 | 8,478 | |
2022 | 3,555 | |
2023 | 2,619 | |
Thereafter | 13,634 | |
Total lease payments | 49,569 | |
Less: tenant improvement reimbursements(1) | (8,601) | |
Less: tenant improvements reimbursement | (36) | |
Total | 40,932 | $ 43,368 |
Operating Sublease | ||
Remainder of 2020 | (2,717) | |
2020 | (2,631) | |
2021 | (2,538) | |
2022 | (623) | |
2023 | 0 | |
Thereafter | 0 | |
Total | (8,509) | |
Finance Leases | ||
Remainder of 2020 | 771 | |
2020 | 633 | |
2021 | 64 | |
2022 | 0 | |
2023 | 0 | |
Thereafter | 0 | |
Total lease payments | 1,468 | |
Less: interest | (83) | |
Less: tenant improvements reimbursement | 0 | |
Total | 1,385 | $ 1,623 |
Operating and Finance Leases | ||
Remainder of 2020 | 7,415 | |
2021 | 9,924 | |
2022 | 6,004 | |
2023 | 2,932 | |
2024 | 2,619 | |
Thereafter | 13,634 | |
Total lease payments | 42,528 | |
Less: interest | (8,684) | |
Less: tenant improvements reimbursement | (36) | |
Total | $ 33,808 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Net revenue | $ 50,114 | $ 55,511 |
Variable consideration | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 36,366 | 35,782 |
Fixed consideration | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 13,748 | 19,729 |
NALA | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 28,473 | 33,201 |
EMEA | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 14,007 | 13,636 |
APJ | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 7,634 | 8,674 |
Selling services | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 49,173 | 55,128 |
Professional services | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | $ 941 | $ 383 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Contract asset | $ 20 | $ 30 | ||
Contract liability | 700 | 800 | ||
Contract acquisition asset | 679 | $ 811 | $ 761 | $ 842 |
Amortization expense | $ 61 | $ 143 | ||
Contract acquisition cost, weighted average remaining amortization period | 2 years 2 months 12 days | 1 year 9 months 18 days | ||
Selling services | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Remaining performance obligation | $ 36,100 | |||
Contract Acquisition Cost | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Contract acquisition asset | 3,300 | |||
Amortization expense | $ 200 | $ 300 |
Revenue Recognition - Performan
Revenue Recognition - Performance Obligations (Details) - Selling services $ in Millions | Mar. 31, 2020USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 36.1 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 1 |
Remaining performance obligation, expected timing of satisfaction | 9 months |
Revenue Recognition Contract Ac
Revenue Recognition Contract Acquisition Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Contract Acquisition Costs [Roll Forward] | ||
Balance at beginning of period | $ 761 | $ 842 |
Capitalized costs | (21) | 112 |
Amortization expense | (61) | (143) |
Balance at end of period | $ 679 | $ 811 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation | $ 1,045 | $ 1,570 |
Cost of revenue | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation | 45 | 159 |
Sales and marketing | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation | 377 | 443 |
Research and development | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation | 18 | (6) |
General and administrative | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation | $ 605 | $ 974 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Antidilutive shares excluded from diluted earnings per share calculation (in shares) | 4.2 | 10.4 |
Employee Stock Option | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted-average fair value of options granted (in dollars per share) | $ 0.63 | $ 0.53 |
Employee Stock Option | The 2011 Equity Incentive Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation expense, stock options | $ 1.2 | |
Unrecognized compensation expense, weighted-average period recognized | 2 years 3 months 18 days | |
RSUs and PSUs | The 2011 Equity Incentive Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation expense, weighted-average period recognized | 2 years 2 months 12 days | |
Unrecognized compensation expense, RSUs and PSUs | $ 6.6 |
Stock-Based Compensation - Opti
Stock-Based Compensation - Option Activity (Details) - Employee Stock Option - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Options Outstanding, Number of Shares | ||
Outstanding, beginning balance (in shares) | 4,146 | |
Granted (in shares) | 20 | |
Expired and/or forfeited (in shares) | (77) | |
Outstanding, ending balance (in shares) | 4,089 | |
Options exercisable (in shares) | 2,072 | |
Options Outstanding, Options, Weighted Average Exercise Price | ||
Outstanding, weighted average exercise price per share, beginning balance (in dollars per share) | $ 2.16 | |
Granted, weighted average exercise price per share (in dollars per share) | 1.32 | |
Expired and/or forfeited, weighted average exercise price per share (in dollars per share) | 3.51 | |
Outstanding, weighted average exercise price per share, ending balance (in dollars per share) | 2.13 | |
Options exercisable, weighted average option price per share (in dollars per share) | $ 3.01 | |
Outstanding, weighted average remaining contractual life | 7 years 9 months 18 days | |
Options exercisable, weighted average remaining contractual life | 6 years 9 months 18 days | |
Outstanding, intrinsic value | $ 0 | $ 1,580 |
Options exercisable, intrinsic value | $ 0 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Unit Activity (Details) - RSUs and PSUs shares in Thousands | 3 Months Ended |
Mar. 31, 2020$ / sharesshares | |
Shares | |
Unvested, beginning balance (in shares) | shares | 5,305 |
Granted (in shares) | shares | 185 |
Vested (in shares) | shares | (178) |
Forfeited (in shares) | shares | (322) |
Unvested, ending balance (in shares) | shares | 4,990 |
Weighted-Average Grant Date Fair Value | |
Unvested, weighted average grant date fair value, beginning balance (in dollars per share) | $ / shares | $ 1.88 |
Granted, weighted average grant date fair value (in dollars per share) | $ / shares | 1.31 |
Vested, weighted average grant date fair value (in dollars per share) | $ / shares | 3.27 |
Forfeited, weighted average grant date fair value (in dollars per share) | $ / shares | 1.95 |
Unvested, weighted average grant date fair value, ending balance (in dollars per share) | $ / shares | $ 1.80 |
Restructuring and Other Relat_3
Restructuring and Other Related Costs - Narrative (Details) $ in Millions | 1 Months Ended | 3 Months Ended | |
May 31, 2017location | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | |
Restructuring and Related Activities [Abstract] | |||
Restructuring charges | $ | $ 0.5 | $ 1.1 | |
Number of locations where reduction of headcount and office spaces took place (location) | location | 4 |
Restructuring and Other Relat_4
Restructuring and Other Related Costs - Restructuring and Other Reserve Activities (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring Reserve [Roll Forward] | |||||
Restructuring and other related costs | $ 500 | $ 1,100 | |||
February 2019 Restructuring Effort | |||||
Restructuring Reserve [Roll Forward] | |||||
Beginning Balance | 182 | 0 | $ 0 | ||
Restructuring and other related costs | 467 | 1,929 | |||
Cash paid | (503) | (1,747) | |||
Change in estimates and non-cash charges | (19) | ||||
Ending Balance | 127 | 182 | $ 0 | ||
February 2019 Restructuring Effort | Severance and Other Employee Costs | |||||
Restructuring Reserve [Roll Forward] | |||||
Beginning Balance | 182 | 0 | 0 | ||
Restructuring and other related costs | 467 | 1,806 | |||
Cash paid | (503) | (1,624) | |||
Change in estimates and non-cash charges | (19) | ||||
Ending Balance | 127 | 182 | 0 | ||
February 2019 Restructuring Effort | Lease and Other Contract Termination Costs | |||||
Restructuring Reserve [Roll Forward] | |||||
Beginning Balance | 0 | 0 | 0 | ||
Restructuring and other related costs | 0 | 123 | |||
Cash paid | 0 | (123) | |||
Change in estimates and non-cash charges | 0 | ||||
Ending Balance | 0 | 0 | 0 | ||
May 2017 Restructuring Effort | |||||
Restructuring Reserve [Roll Forward] | |||||
Beginning Balance | 716 | 962 | 962 | 1,825 | $ 0 |
Restructuring and other related costs | 209 | 7,308 | |||
Cash paid | (44) | (183) | (1,321) | (4,245) | |
Change in estimates and non-cash charges | (17) | (63) | 249 | (886) | |
Acceleration of stock-based compensation expense in additional paid-in capital | (352) | ||||
Ending Balance | 655 | 716 | 962 | 1,825 | |
May 2017 Restructuring Effort | Severance and Other Employee Costs | |||||
Restructuring Reserve [Roll Forward] | |||||
Beginning Balance | 0 | 0 | 0 | 71 | 0 |
Restructuring and other related costs | 120 | 3,483 | |||
Cash paid | 0 | 0 | (188) | (3,060) | |
Change in estimates and non-cash charges | 0 | 0 | (3) | 0 | |
Acceleration of stock-based compensation expense in additional paid-in capital | (352) | ||||
Ending Balance | 0 | 0 | 0 | 71 | |
May 2017 Restructuring Effort | Lease and Other Contract Termination Costs | |||||
Restructuring Reserve [Roll Forward] | |||||
Beginning Balance | 716 | 962 | 962 | 1,754 | 0 |
Restructuring and other related costs | 89 | 2,939 | |||
Cash paid | (44) | (183) | (1,133) | (1,185) | |
Change in estimates and non-cash charges | (17) | (63) | 252 | 0 | |
Acceleration of stock-based compensation expense in additional paid-in capital | 0 | ||||
Ending Balance | 655 | 716 | 962 | 1,754 | |
May 2017 Restructuring Effort | Asset Impairments [Member] | |||||
Restructuring Reserve [Roll Forward] | |||||
Beginning Balance | 0 | $ 0 | 0 | 0 | 0 |
Restructuring and other related costs | 0 | 886 | |||
Cash paid | 0 | 0 | 0 | 0 | |
Change in estimates and non-cash charges | 0 | 0 | 0 | (886) | |
Acceleration of stock-based compensation expense in additional paid-in capital | 0 | ||||
Ending Balance | $ 0 | $ 0 | $ 0 | $ 0 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Income Tax Disclosure [Abstract] | ||
Unrecognized tax benefits | $ 1 | $ 1 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) $ in Millions | Mar. 31, 2020USD ($)facilitydebt_instrument |
Other Commitments [Line Items] | |
Number of leased facilities | facility | 2 |
Number of letters of credit | debt_instrument | 2 |
Money market mutual funds | Letter of Credit | |
Other Commitments [Line Items] | |
Letters of credit | $ 2.3 |
Restricted cash | $ 2.3 |
Commitments and Contingencies_2
Commitments and Contingencies - Future Minimum Payments (Details) $ in Thousands | Mar. 31, 2020USD ($) |
Non-cancelable Service Contract Commitments | |
Remainder of 2020 | $ 6,539 |
2021 | 10,057 |
2022 | 9,017 |
2023 | 7,446 |
2024 | 821 |
Thereafter | 0 |
Total | $ 33,880 |