Document and Entity Information
Document and Entity Information - $ / shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 30, 2019 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Carbon Black, Inc. | |
Entity Central Index Key | 0001366527 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Listing, Par Value Per Share | $ 0.001 | |
Trading Symbol | CBLK | |
Entity Common Stock, Shares Outstanding | 71,569,406 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 72,880 | $ 67,868 |
Short-term investments | 80,399 | 92,770 |
Accounts receivable, net of allowances of $210 and $300, as of March 31, 2019 and December 31, 2018, respectively | 43,870 | 62,555 |
Prepaid expenses and other current assets | 9,397 | 8,751 |
Deferred commissions | 13,680 | 13,078 |
Total current assets | 220,226 | 245,022 |
Deferred commissions, net of current portion | 25,397 | 25,076 |
Property and equipment, net | 13,253 | 14,370 |
Operating lease right-of-use assets | 14,931 | |
Intangible assets, net | 2,204 | 2,529 |
Goodwill | 119,656 | 119,656 |
Deferred tax asset | 483 | 483 |
Other-long term assets | 560 | 601 |
Total assets | 396,710 | 407,737 |
Current liabilities: | ||
Accounts payable | 4,846 | 4,663 |
Accrued expenses | 13,901 | 20,669 |
Deferred revenue | 146,912 | 152,522 |
Deferred rent | 1,216 | |
Operating lease short-term liability | 5,339 | |
Total current liabilities | 170,998 | 179,070 |
Deferred revenue, net of current portion | 36,296 | 40,371 |
Deferred rent, net of current portion | 2,651 | |
Operating lease long-term liability | 13,344 | |
Deferred tax liability | 49 | 49 |
Other long-term liabilities | 28 | 42 |
Total liabilities | 220,715 | 222,183 |
Commitments and contingencies (Note 10) | ||
Stockholders' equity: | ||
Common stock, $0.001 par, 500,000,000 shares authorized, 71,396,964 and 69,738,599 shares issued, and 71,341,560 and 69,683,195 shares outstanding, as of March 31, 2019 and December 31, 2018, respectively | 71 | 70 |
Treasury stock, at cost, 55,404 shares as of March 31, 2019 and December 31, 2018, respectively | (6) | (6) |
Additional paid-in capital | 733,129 | 723,051 |
Accumulated other comprehensive loss | (49) | |
Accumulated deficit | (557,199) | (537,512) |
Total stockholders' equity | 175,995 | 185,554 |
Total liabilities and stockholders' equity | $ 396,710 | $ 407,737 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Accounts receivable, net | ||
Allowances for accounts receivables | $ 210 | $ 300 |
Common stock | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, authorized shares (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 71,396,964 | 69,738,599 |
Common stock, shares outstanding (in shares) | 71,341,560 | 69,683,195 |
Treasury stock | ||
Treasury stock, shares (in shares) | 55,404 | 55,404 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenue: | ||
Revenue | $ 58,556 | $ 48,434 |
Cost of revenue: | ||
Cost of revenue | 13,025 | 10,215 |
Gross profit | 45,531 | 38,219 |
Operating expenses: | ||
Sales and marketing | 39,410 | 30,678 |
Research and development | 18,377 | 14,922 |
General and administrative | 8,088 | 10,426 |
Total operating expenses | 65,875 | 56,026 |
Loss from operations | (20,344) | (17,807) |
Other income (expense), net | (105) | 120 |
Interest income | 859 | 68 |
Interest expense | (31) | (23) |
Change in fair value of warrant liability | (2,881) | |
Total other income (expense), net | 723 | (2,716) |
Loss before income taxes | (19,621) | (20,523) |
Provision for income taxes | 66 | 71 |
Net loss | (19,687) | (20,594) |
Accretion of preferred stock to redemption value | (40,039) | |
Net loss attributable to common stockholders | $ (19,687) | $ (60,633) |
Net loss per share attributable to common stockholders - basic and diluted (in shares) | $ (0.28) | $ (5.38) |
Weighted-average common shares outstanding - basic and diluted (in dollars per share) | 70,474,542 | 11,264,252 |
Subscription, License and Support | ||
Revenue: | ||
Revenue | $ 56,294 | $ 45,391 |
Cost of revenue: | ||
Cost of revenue | 10,502 | 7,212 |
Services | ||
Revenue: | ||
Revenue | 2,262 | 3,043 |
Cost of revenue: | ||
Cost of revenue | $ 2,523 | $ 3,003 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Condensed Consolidated Statements of Comprehensive Loss | ||
Net loss | $ (19,687) | $ (20,594) |
Other comprehensive income (loss), net of related taxes: | ||
Net unrealized gains (losses) on available-for-sale securities, net of related taxes of zero | 49 | |
Other comprehensive income (loss) | 49 | |
Total comprehensive loss | $ (19,638) | $ (20,594) |
CONSOLIDATED STATEMENT OF REDEE
CONSOLIDATED STATEMENT OF REDEEMABLE CONVERTIBLE AND CONVERTIBLE PREFERRED STOCK - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Increase (Decrease) in Redeemable Convertible and Convertible Preferred Stock | ||
Exercise of stock options | $ 6,226 | $ 976 |
Exercise of stock options (in shares) | 1,535,993 | |
Redeemable convertible preferred stock | ||
Increase (Decrease) in Redeemable Convertible and Convertible Preferred Stock | ||
Beginning balance | $ 0 | $ 333,204 |
Beginning balance (in shares) | 0 | 88,741,194 |
Accretion of redeemable convertible preferred stock to redemption value | $ 40,039 | |
Ending balance | $ 0 | $ 373,243 |
Ending balance (in shares) | 0 | 88,741,194 |
Series A convertible preferred stock | ||
Increase (Decrease) in Redeemable Convertible and Convertible Preferred Stock | ||
Beginning balance | $ 0 | $ 1,510 |
Beginning balance (in shares) | 0 | 3,851,806 |
Exercise of stock options | $ 89 | |
Exercise of stock options (in shares) | 185,063 | |
Ending balance | $ 0 | $ 1,599 |
Ending balance (in shares) | 0 | 4,036,869 |
CONSOLIDATED STATEMENT OF STOCK
CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY (DEFICIT) - USD ($) $ in Thousands | Common Stock | Treasury Stock | Additional paid - in capital | Accumulated Other Comprehensive Loss | Accumulated Deficit | Total |
Beginning balance at Dec. 31, 2017 | $ 11 | $ (6) | $ 13,429 | $ (273,513) | $ (260,079) | |
Beginning balance (in shares) at Dec. 31, 2017 | 11,139,690 | 53,676 | ||||
Increase (Decrease) in Stockholders' Equity (Deficit) | ||||||
Net loss | (20,594) | (20,594) | ||||
Exercise of stock options | 976 | 976 | ||||
Exercise of stock options (in shares) | 274,840 | |||||
Stock-based compensation expense | 2,389 | 2,389 | ||||
Accretion of preferred stock to redemption value | (16,794) | (23,245) | (40,039) | |||
Repurchase of common stock (in shares) | (1,728) | 1,728 | ||||
Ending balance at Mar. 31, 2018 | $ 11 | $ (6) | (317,352) | (317,347) | ||
Ending balance (in shares) at Mar. 31, 2018 | 11,412,802 | 55,404 | ||||
Beginning balance at Dec. 31, 2018 | $ 70 | $ (6) | 723,051 | $ (49) | (537,512) | $ 185,554 |
Beginning balance (in shares) at Dec. 31, 2018 | 69,683,195 | 55,404 | 69,683,195 | |||
Increase (Decrease) in Stockholders' Equity (Deficit) | ||||||
Net loss | (19,687) | $ (19,687) | ||||
Exercise of stock options | $ 1 | 6,225 | $ 6,226 | |||
Exercise of stock options (in shares) | 1,535,993 | 1,535,993 | ||||
Vesting of restricted stock units, net of shares withheld for employee taxes | (351) | $ (351) | ||||
Vesting of restricted stock units, net of shares withheld for employee taxes (in shares) | 122,372 | |||||
Stock-based compensation expense | 4,204 | 4,204 | ||||
Unrealized gain (loss) on available-for-sale securities | 49 | 49 | ||||
Ending balance at Mar. 31, 2019 | $ 71 | $ (6) | $ 733,129 | $ 0 | $ (557,199) | $ 175,995 |
Ending balance (in shares) at Mar. 31, 2019 | 71,341,560 | 55,404 | 71,341,560 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash flows from operating activities: | ||
Net loss | $ (19,687) | $ (20,594) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization expense | 2,124 | 1,905 |
Stock-based compensation expense | 4,204 | 2,389 |
Provisions for doubtful accounts | (41) | 19 |
Non-cash interest expense | 16 | 9 |
Change in fair value of warrant liability | 2,881 | |
Deferred income taxes | 4 | |
Other non-cash income | (383) | |
Changes in operating assets and liabilities: | ||
Accounts receivable | 18,726 | 24,031 |
Prepaid expenses and other assets | (893) | (1,861) |
Deferred commissions | (923) | (494) |
Accounts payable | 236 | 25 |
Accrued expenses | (7,482) | (2,305) |
Deferred revenue | (9,686) | (6,703) |
Deferred rent | (82) | |
Operating leases right-of-use assets | 1,088 | |
Operating leases liability | (1,202) | |
Other long-term liabilities | (13) | (1) |
Net cash used in operating activities | (13,916) | (777) |
Cash flows from investing activities: | ||
Purchases of short-term investments | (15,897) | |
Sale and maturities of short-term investments | 28,700 | |
Purchases of property and equipment | (577) | (1,495) |
Capitalization of internal-use software costs | (160) | (293) |
Net cash provided by (used in) investing activities | 12,066 | (1,788) |
Cash flows from financing activities: | ||
Proceeds from exercise of stock options | 6,546 | 1,065 |
Payments of deferred financing costs | (47) | (47) |
Taxes paid related to net share settlement of equity awards | (351) | |
Proceeds from employee stock purchase plan | 714 | |
Payments of initial public offering costs | (840) | |
Net cash provided by financing activities | 6,862 | 178 |
Net increase (decrease) in cash and cash equivalents | 5,012 | (2,387) |
Cash and cash equivalents at beginning of period | 67,868 | 36,073 |
Cash and cash equivalents at end of period | 72,880 | 33,686 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Accretion of preferred stock to redemption value | 40,039 | |
Additions to property and equipment included in accounts payable at period end | $ 189 | 353 |
Deferred offering costs included in accounts payable at period end | $ 546 |
Overview and Basis of Presentat
Overview and Basis of Presentation | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure Text Block | |
Overview and Basis of Presentation | NOTE 1. OVERVIEW AND BASIS OF PRESENTATION Overview Carbon Black, Inc. (the “Company,” ”we,” “us,” “our”) is a leader in cloud endpoint protection. The Company’s solutions enable customers to predict, prevent, detect, respond to and remediate cyber attacks before they cause a damaging incident or data breach. The Company was incorporated under the laws of the State of Delaware in December 2002 as Bit 9, Inc. and in April 2005 changed its name to Bit9, Inc. In January 2016, the Company amended its certificate of incorporation to change its name to Carbon Black, Inc. The company is headquartered in Waltham, Massachusetts. The Company has wholly owned subsidiaries in the United States, the United Kingdom, Singapore, Australia, Canada, Malaysia and Japan. Reverse Stock Split On April 20, 2018, the Company effected a 1-for-2 reverse stock split of its issued and outstanding shares of common stock and a proportional adjustment to the existing conversion ratios of Company’s Series B, Series C, Series D, Series E, Series E-1 and Series F preferred stock. Accordingly, all share and per share amounts for all periods presented in the accompanying consolidated financial statements and notes thereto have been adjusted retroactively, where applicable, to reflect this reverse stock split and adjustment of the preferred stock conversion ratios. Initial Public Offering On May 8, 2018, the Company closed its initial public offering (“IPO”), in which it issued and sold 9,200,000 shares of common stock inclusive of the underwriters’ option to purchase additional shares that was exercised in full. The price to the public was $19.00 per share. The Company received aggregate proceeds of $162.6 million from the IPO, net of underwriters’ discounts and commissions, and before deducting offering costs of approximately $4.9 million. Upon the closing of the IPO, all shares of the Company’s outstanding redeemable convertible and convertible preferred stock automatically converted into 46,079,623 shares of common stock. Additionally, an outstanding warrant which became exercisable upon the closing of the IPO was exercised to purchase 485,985 shares of common stock. Basis of Presentation The accompanying consolidated financial statements have been prepared by us in accordance with accounting principles generally accepted in the United States (“GAAP”), as well as pursuant to the rules and regulations of the Securities and Exchange Commission (SEC), regarding interim financial reporting. Accordingly, certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. These consolidated financial statements should be read in conjunction with the financial information included in our Annual Report on Form 10-K for 2018 filed with the SEC on March 8, 2019 (“2018 Form 10-K”). The consolidated financial statements include our results of operations and those of our wholly-owned subsidiaries and reflect all adjustments which are, in the opinion of management, necessary for a fair statement of results for the interim periods presented. All intercompany transactions and balances have been eliminated in consolidation. Certain previously reported amounts presented in this Quarterly Report on Form 10-Q (“Form 10-Q”) may be reclassified to conform to current-period presentation. Events occurring subsequent to the date of our consolidated balance sheet were evaluated for potential recognition or disclosure in our consolidated financial statements through the date we filed this Form 10-Q with the SEC. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that may materially affect the reported amounts of assets, liabilities, equity, revenue and expenses. As a result of unanticipated events or circumstances, actual results could differ from those estimates, and such differences may be material to the consolidated financial statements. For additional information about our use of estimates refer to “Critical Accounting Policies” included under management’s discussion and analysis in our 2018 Form 10-K. Significant Accounting Policies Effective January 1, 2019, the Company adopted the requirements of Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842) (“ASC 842”) on a modified retrospective transition approach as discussed in detail in Note 2. All amounts and disclosures set forth in this Form 10-Q have been updated to comply with ASC 842. The Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”) permits an “emerging growth company” such as the Company, to take advantage of an extended transition period to comply with new or revised accounting standards applicable to public companies until those standards would otherwise apply to private companies. The Company has irrevocably elected to “opt out” of this provision and, as a result, the Company will comply with new or revised accounting standards when they are required to be adopted by public companies that are not emerging growth companies. For a complete discussion of our significant accounting policies refer to Note 2 to the consolidated financial statements in our 2018 Form 10-K. |
New Accounting Pronouncements
New Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure Text Block | |
New Accounting Pronouncements | NOTE 2. NEW ACCOUNTING PRONOUNCEMENTS Recently issued accounting pronouncements: Standard Description Date of Adoption Effects on the financial statements or other significant matters ASU 2018-15, Intangibles-Goodwill and Other (Topic 350): Internal-Use Software The standard was issued in order to address a customer’s accounting for implementation costs incurred in a cloud computing arrangement (“CCA”) that is considered a service contract. Under this guidance, implementation costs for a CCA should be evaluated for capitalization using the same approach as implementation costs associated with internal-use software. Generally costs incurred to configure/customize the hosted software are capitalizable, however, data conversion and training costs are expensed as incurred consistent with internal-use software guidance. The amortization period is over the non-cancelable term and any reasonable certain renewals are expensed to the same line item in which fees paid to the vendor are recognized (i.e., not included in amortization expense). January 1, 2020, early adoption permitted We are currently assessing the impact of the standard on our consolidated financial statements. ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments The standard requires immediate recognition of expected credit losses for financial assets carried at amortized cost, including trade and other receivables, loans and commitments, held-to-maturity debt securities and other financial assets, held at the reporting date to be measured based on historical experience, current conditions and reasonable supportable forecasts. Credit losses on available-for-sale securities will be recorded as an allowance versus a write-down of the amortized cost basis of the security and will allow for a reversal of impairment loss when the credit of the issuer improves. January 1, 2020, early adoption permitted We are currently assessing the impact of the standard on our consolidated financial statements. ASU 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment The standard simplifies the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. The ASU requires an entity to compare the fair value of a reporting unit with its carrying amount and recognize an impairment charge for the amount by which the carrying value exceeds the fair value of the reporting unit. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss. January 1, 2020, early adoption permitted We are currently evaluating the impacts of early adoption and will apply this standard prospectively, as applicable. ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement The standard eliminates, amends and adds disclosure requirements for fair value measurements. Eliminated disclosures include: amount of and reasons for transfers between levels 1 and 2, policy on timing of transfers, valuation processes for level 3. Removal of the requirement to disclose future changes in FV inputs. Relevant amended disclosures include no longer requiring full level 3 rollforward but rather disclosure of transfers in/out and purchases/ issuances. New disclosures include changes in OCI on level 3 assets/ liabilities and disclosure of range and weighted average of significant unobservable inputs for level 3. January 1, 2020, early adoption permitted We are in the process of evaluating the changes required by the new provisions. We expect this to be minimal as we do not have any level 3 inputs. Recently adopted accounting pronouncements: Leases In February 2016, the FASB issued ASC No. 2016-02, Leases (Topic 842) (“ASC 842”), to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. We adopted ASC 842 effective January 1, 2019 and elected the modified retrospective approach, whereby periods prior to 2019 were not adjusted for the new standard. We elected the hindsight practical expedient to determine the lease term for existing leases, and we did not elect to apply the recognition requirements in the leases standard to leases that at commencement date have a lease term of 12 months or less. We have elected the available package of practical expedients permitted under the transition guidance within the new standard which does not require us to reassess the prior conclusions about lease identification, lease classification and initial direct costs. The adoption of ASC 842 resulted in the recognition of operating right-of-use assets of approximately $16.0 million and operating lease liabilities of approximately $19.9 million. Included within our operating lease assets are the previously recorded net deferred rent balances which were reclassified into our operating lease assets upon the adoption of ASC 842. The standard did not have a material effect on our consolidated statement of operations, consolidated statement of comprehensive loss or consolidated statement of cash flows. Expanded disclosures about the nature and terms of our lease agreements are included in Note 7 in this Form 10-Q. Stock Compensation We adopted ASU No. 2018-07, Compensation – Stock Compensation (Topic 718) (“ASC 718”), effective January 1, 2019. The standard provides expanded guidance for stock-based compensation, to include share-based payment transactions for acquiring goods and services from nonemployees. The overall effect from the adoption of ASC 718 had an immaterial impact to our consolidated financial statements. |
Cash Equivalents and Short-term
Cash Equivalents and Short-term Investments | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure Text Block | |
Cash Equivalents And Short-term Investments | NOTE 3. CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. The Company’s cash equivalents consist of highly liquid investments in money market funds. The Company considers all high quality investments purchased with original maturities at the date of purchase greater than three months to be short-term investments. Investments are available to be used for current operations and are, therefore, classified as current assets even though maturities may extend beyond one year. Short-term investments are classified as available-for-sale and are, therefore, recorded at fair value on the consolidated balance sheet, with any unrealized gains and losses reported in accumulated other comprehensive income (loss), which is reflected as a separate component of stockholders’ equity in the Company’s consolidated balance sheets, until realized. The Company uses the specific identification method to compute gains and losses on the investments. The amortized cost of securities is adjusted for amortization of premiums and accretion of discounts to maturity. Such amortization and accretion is included as a component of interest income in the consolidated statement of operations. The following tables present the amortized cost, fair value and associated unrealized gains and losses of cash equivalents and short-term investments as of the periods presented: March 31, 2019 (In thousands) Amortized Cost Unrealized Gains Unrealized Losses Fair Value Cash equivalents: Money market funds $ 55,798 $ — $ — $ 55,798 Total cash equivalents $ 55,798 $ — $ — $ 55,798 Short-term investments: Commercial paper $ 37,606 $ — $ — $ 37,606 U.S. treasury securities 14,375 — — 14,375 Corporate bonds 17,852 — — 17,852 Asset-backed securities 10,566 — — 10,566 Total short-term investments $ 80,399 $ — $ — $ 80,399 December 31, 2018 (In thousands) Amortized Cost Unrealized Gains Unrealized Losses Fair Value Cash equivalents: Money market funds $ 52,047 $ — $ — $ 52,047 Total cash equivalents $ 52,047 $ — $ — $ 52,047 Short-term investments: Commercial paper $ 42,706 $ — $ — $ 42,706 U.S. treasury securities 21,486 — (9) 21,477 Corporate bonds 13,790 — (23) 13,767 Asset-backed securities 14,837 — (17) 14,820 Total short-term investments $ 92,819 $ — $ (49) $ 92,770 The following table summarizes the contractual maturities of our short-term investments as of the period presented: March 31, 2019 (In thousands) Amortized Cost Fair Value Due within one year $ 80,399 $ 80,399 Due after one year — — Total short-term investments $ 80,399 $ 80,399 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure Text Block | |
Fair Value of Financial Instruments | 4. FAIR VALUE OF FINANCIAL INSTRUMENTS The Company categorizes assets and liabilities recorded or disclosed at fair value on our condensed consolidated balance sheets based upon the level of judgment associated with inputs used to measure their fair value. The categories are as follows: • Level 1—Inputs are unadjusted quoted prices in active markets for identical assets or liabilities. • Level 2—Inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the assets or liabilities, either directly or indirectly. • Level 3—Inputs are unobservable inputs based on our own assumptions used to measure assets and liabilities at fair value. The inputs require significant management judgment or estimation. The following tables present information about the Company's financial assets and liabilities measured at fair value on a recurring basis and indicate the level of the fair value hierarchy utilized to determine such fair values: March 31, 2019 (In thousands) Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 55,798 $ — $ — $ 55,798 Total cash equivalents $ 55,798 $ — $ — $ 55,798 Short-term investments: Commercial paper $ — $ 37,606 $ — $ 37,606 U.S. treasury securities 14,375 — — 14,375 Corporate bonds — 17,852 — 17,852 Asset-backed securities — 10,566 — 10,566 Total short-term investments $ 14,375 $ 66,024 $ — $ 80,399 December 31, 2018 (In thousands) Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 52,047 $ — $ — $ 52,047 Total cash equivalents $ 52,047 $ — $ — $ 52,047 Short-term investments: Commercial paper $ — $ 42,706 $ — $ 42,706 U.S. treasury securities 21,477 — — 21,477 Corporate bonds — 13,767 — 13,767 Asset-backed securities — 14,820 — 14,820 Total short-term investments $ 21,477 $ 71,293 $ — $ 92,770 Changes in the fair values of the Company's preferred stock warrant liabilities and common stock warrant liability for the periods presented were as follows: (In thousands) Series D Stock Liability Common Stock Liability Fair value at December 31, 2017 $ 992 $ 1,774 Change in fair value 1,378 7,460 Exercise of common stock warrant — (9,234) Conversion to common stock warrant (2,370) — Fair value at December 31, 2018 $ — $ — (1) Upon the closing of our IPO in May 2018, we no longer had any outstanding warrant liabilities. Upon the closing of the IPO, the warrants for the purchase of Series D preferred stock became warrants to purchase common stock. The Company valued the Series D preferred stock liability as of the IPO closing date using the Black-Scholes option pricing-model and recorded a change in the fair value of the preferred stock warrants through that date. The Series D preferred stock warrant liability was then reclassified to additional paid-in capital. Additionally, the warrants for the purchase of common stock were exercised to purchase 485,985 shares of common stock upon the closing of the IPO. The Company valued the common stock warrant liability as of the IPO date using the $19 per share offering price and recorded a change in the fair value of the common stock warrants through that date. The common stock warrant liability was then reclassified to common stock and additional paid-in capital. |
Property and Equipment, Net
Property and Equipment, Net | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure Text Block | |
Property and Equipment, Net | 5. PROPERTY AND EQUIPMENT, NET March 31, December 31, (In thousands) 2019 2018 Computer equipment $ 15,776 $ 15,519 Leasehold improvements 6,987 6,921 Internal-use software 4,458 4,298 Computer software 3,885 3,850 Furniture and fixtures 3,790 3,773 Office equipment 20 20 Total property and equipment 34,916 34,381 Less: Accumulated depreciation and amortization (21,663) (20,011) Total property and equipment, net $ 13,253 $ 14,370 Depreciation and amortization expense related to property and equipment, including internal-use software, was approximately $1.8 million and $1.5 million for the three months ended March 31, 2019 and 2018, respectively. During the three months ended March 31, 2019, we disposed of fully depreciated assets with an original cost of $149 thousand. During the three months ended March 31, 2018, we had no disposals of fully depreciated assets. During the three months ended March 31, 2019 and 2018, the Company capitalized $160 thousand and $293 thousand, respectively, of costs related to the development of internal-use software and recorded amortization expense of capitalized internal-use software of $304 thousand and $157 thousand, respectively . |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure Text Block | |
Goodwill and Intangible Assets | 6. GOODWILL AND INTANGIBLE ASSETS Goodwill was $119.7 million as of both March 31, 2019 and December 31, 2018. The following table represents the gross carrying amount, accumulated amortization and net carrying amount of other intangible assets by type, as of the dates indicated: March 31, 2019 December 31, 2018 Gross Accumulated Carrying Gross Accumulated Carrying (In thousands) Amount Amortization Value Amount Amortization Value Intangible assets: License agreement $ 150 $ (131) $ 19 $ 150 $ (128) $ 22 Developed technology 7,301 (5,116) 2,185 7,301 (4,804) 2,497 Trade name 440 (440) — 440 (430) 10 Customer relationships 2,950 (2,950) — 2,950 (2,950) — Total intangible assets $ 10,841 $ (8,637) $ 2,204 $ 10,841 $ (8,312) $ 2,529 Amortization expense related to intangible assets was $325 thousand and $391 thousand for the three months ended March 31, 2019 and 2018, respectively. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure Text Block | |
Leases | 7. LEASES We lease various office space and data centers under non-cancellable operating leases. Our leases have remaining lease terms ranging from 1 year to 5 years, some of which include extension options of up to 5 years and termination options within 3 years. The exercise of these lease extension and termination options are at our sole discretion. Right-of-use (“ROU”) assets represent the Company’s right to use leased assets over the term of the lease. Lease liabilities represent the Company’s contractual obligation to make lease payments over the lease term. We determine if an arrangement is a lease at inception. Right-of-use assets and lease liabilities are initially measured at the lease commencement date based on the present value of the lease payments over the lease term, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, our incremental borrowing rate. We determine our incremental borrowing rate based on the rate of interest that we would have to pay to borrow on a collateralized basis over a similar term, an amount equal to the lease payments in a similar economic environment. Our lease right-of-use assets also include any unamortized initial direct costs plus any prepayments less any unamortized lease incentives received. Leases with an initial term of 12 months or less are classified as short-term leases and are not recorded on the balance sheet. Lease expenses relating to our short-term leases are recognized on a straight-line basis over the lease term. For lease agreements we entered into or reassessed after the adoption of Topic 842, we combine lease and non-lease components as a single lease component. Non-lease components primarily consist of payments for maintenance and utilities. Our lease agreements do not contain any material residual value guarantees, material restrictive covenants or variable lease payments based on an index or rate. We currently sublease one of our office spaces to a third party. The following table presents the components of lease expense and supplemental information for the three months ended March 31, 2019. (Dollars in thousands, except where otherwise noted) March 31, 2019 Lease cost: Operating lease cost $ 1,202 Short-term lease cost 16 Sublease income (52) Total lease cost $ 1,166 Other information: Cash paid for amounts included in the measurement of lease liabilities $ 1,460 Weighted-average: Remaining lease term - operating leases 3.5 years Discount rate - operating leases Future minimum payments under non-cancellable leases as of March 31, 2019 were the following: (In thousands) March 31, 2019 2019 (remaining nine months) $ 4,701 2020 5,900 2021 5,675 2022 2,709 2023 1,303 Thereafter 244 Total lease payments 20,532 Less: Imputed interest (1,849) Present value of lease payments $ 18,683 As previously disclosed in our 2018 Form 10-K and under the previous lease accounting standard, ASC 840, Leases, the following table summarizes the future minimum lease payments due under operating leases as of December 31, 2018. In determining the future minimum lease payments, the Company included lease payments due for an optional renewal period under an existing lease. (In thousands) December 31, 2018 2019 $ 5,492 2020 5,343 2021 5,118 2022 2,343 2023 1,070 Thereafter 986 Total lease payments $ 20,352 |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure Text Block | |
Stockholders Equity | 8. STOCKHOLDERS’ EQUITY Preferred Stock Upon the completion of our IPO, all outstanding shares of redeemable convertible and convertible preferred stock, totaling 46.1 million shares, were automatically converted into shares of common stock. The carrying amount of the redeemable convertible and convertible preferred stock was approximately $532.7 million and $1.7 million, respectively, and was reclassified to stockholders’ equity (deficit). Also upon the completion of our IPO, all outstanding warrants to purchase shares of redeemable convertible preferred stock became warrants exercisable for 130,965 shares of common stock, which were subsequently exercised at a price of $2.9891 per share. For additional information regarding the impact of our IPO on our preferred stockholders’ equity, refer to Notes 11 and 13 to the consolidated financial statements, in our 2018 Form 10-K. On the date of our IPO, we filed a restated certificate of incorporation, which authorized the issuance of 25.0 million shares of preferred stock with a par value of $0.001 per share, with rights and preferences designated from time to time by the board of directors. As of March 31, 2019, no shares of preferred stock were issued or outstanding. Common Stock Upon the completion of our IPO, a common stock warrant with an issuance date of July 1, 2012, became exercisable and was net exercised at an exercise price of $0.002 per share to purchase 485,985 shares of common stock. Subsequent to the completion of our IPO, a common stock warrant with an issuance date of July 31, 2014, was net exercised at an exercise price of $3.02 per share to purchase 95,113 shares of common stock. For additional information regarding the impact of our IPO on our common stockholders’ equity, refer to Notes 12 and 13 to the consolidated financial statements, in our 2018 Form 10-K. On the date of our IPO, we filed a restated certificate of incorporation, which authorized the issuance of 500.0 million shares of common stock with a par value of $0.001 per share, with rights and preferences designated from time to time by the board of directors. As of March 31, 2019, 71.4 million shares were issued and 71.3 million shares were outstanding. Each share of common stock entitles the holder to one vote on all matters submitted to a vote of the Company’s stockholders. Common stockholders are entitled to receive dividends, as may be declared by the board of directors, if any, subject to the preferential dividend rights of the preferred stockholders. No dividends have been declared through March 31, 2019. |
Equity Award Plans
Equity Award Plans | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure Text Block | |
Equity Award Plans | 9. EQUITY AWARD PLANS 2018 Stock Option and Incentive Plan We have only issued new incentive equity awards under our 2018 Stock Option and Incentive Plan (the “2018 Plan”) since our IPO in May 2018. Our 2018 Plan provides for the grant of incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock units, restricted stock awards, unrestricted stock awards and dividend equivalent rights. The shares of common stock underlying any awards that are forfeited, canceled, held back upon exercise or settlement of an award to satisfy the exercise price or tax withholding, reacquired by the Company prior to vesting, satisfied without any issuance of stock, expire or are otherwise terminated by the Company under the 2018 Plan will be added back to the shares of common stock available for issuance under the 2018 Plan. As of March 31, 2019 and December 31, 2018, there were approximately 9.3 million and 5.8 million shares, respectively, available for grant under the 2018 Plan. Options to Purchase Common Stock The following table summarizes our common stock option activity for the three months ended March 31, 2019: Weighted- Weighted- Average Remaining Aggregate Number of Average Contractual Term Intrinsic (Dollars in thousands, except per share amounts) Shares Exercise Price (in years) Value Outstanding at December 31, 2018 16,217,066 $ 6.26 6.56 $ 126,901 Granted 32,000 15.27 Exercised (1,535,993) 4.04 Forfeited (371,322) 11.92 Outstanding at March 31, 2019 14,341,751 $ 6.37 6.43 $ 117,724 Vested and expected to vest at March 31, 2019 13,863,290 6.20 6.36 115,350 Options exercisable at March 31, 2019 9,631,348 4.46 5.51 91,899 As of March 31, 2019, the total unrecognized compensation expense related to outstanding common stock options was approximately $26.0 million and will be recognized over an estimated weighted-average amortization period of approximately 2.24 years. The assumptions we used to determine the fair value of the common stock options granted to employees and directors were as follows: Three Months Ended March 31, 2019 2018 Risk-free interest rate 2.53 % 2.74 % Expected term (in years) 6.25 6.25 Expected volatility 42.63 % 43.85 % Expected dividend yield — — Restricted Stock Units The following table summarizes our unvested restricted stock unit (“RSU”) activity for the three months ended March 31, 2019: Weighted ‑ Weighted ‑ Average Average Remaining Aggregate Number of Grant Date Fair Contractual Term Intrinsic (Dollars in thousands, except share per share amounts) Shares Value Per Share (in years) Value Unvested at December 31, 2018 1,116,675 $ 14.31 1.56 $ 14,986 Granted 371,925 15.30 Vested (1) (148,670) 7.78 Forfeited (40,057) 18.97 Unvested at March 31, 2019 1,299,873 $ 15.19 1.67 $ 18,133 RSUs vested and expected to vest at March 31, 2019 1,103,894 15.20 1.58 15,399 RSUs vested and exercisable at March 31, 2019 — — — — (1) The number of RSUs vested includes shares of common stock that we withheld on behalf of the employees to satisfy the minimum statutory tax withholding requirements. As of March 31, 2019, the total unrecognized compensation expense related to unvested RSUs was approximately $18.4 million and will be recognized over an estimated weighted-average amortization period of approximately 3.20 years. Stock-Based Compensation The following table summarizes the total stock-based compensation expense recognized in our consolidated statements of operations for the periods indicated: Three Months Ended March 31, (In thousands) 2019 2018 Cost of subscription, license and support revenue $ 167 $ 136 Cost of services revenue 64 57 Sales and marketing expense 1,838 936 Research and development expense 1,044 564 General and administrative expense 1,091 696 $ 4,204 $ 2,389 Employee Stock Purchase Plan In April 2018, the Board of Directors adopted, and stockholders approved, the 2018 Employee Stock Purchase Plan (the “2018 ESPP”). A total of approximately 1.7 million shares of the Company’s common stock have been authorized for issuance under the 2018 ESPP. Subject to any plan limitations, the 2018 ESPP allows eligible employees to contribute through payroll deductions, up to 10% of their base compensation during the offering period, for the purchase of the Company’s common stock at a discounted price per share. Our current offering period began January 1, 2019 and is expected to end June 30, 2019. Unless the participating employee has previously withdrawn from the offering, their accumulated payroll deductions will be used to purchase shares of common stock on the last business day of the offering period at a price equal to 85 percent of the fair market value of the common stock on the first business day or the last business day of the offering period, whichever is lower. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure Text Block | |
Commitments and Contingencies | 10. COMMITMENTS AND CONTINGENCIES For additional information about our commitments and contingencies, refer to Note 15 to the consolidated financial statements, in our 2018 Form 10-K. Hosting Services Agreement In September 2017, the Company entered a non‑cancelable contractual agreement related to the hosting of its data processing, storage and other computing services. The agreement, as amended, expires in November 2020. As of March 31, 2019, our off-balance sheet commitment remaining under the hosting agreement totaled approximately $21.7 million. Indemnifications Under the indemnification provisions of the Company's standard sales‑related contracts, the Company agreed to defend end‑customers against third‑party claims asserting infringement of certain intellectual property rights by the Company’s solutions, which may include patents, copyrights, trademarks, or trade secrets and to pay judgments entered on such claims. The Company's exposure under these indemnification provisions is generally limited by certain defined remedies and exclusions under the agreement. However, certain agreements include indemnification provisions that could potentially expose the Company to losses in excess of the amount received under the agreement. In addition, the Company indemnifies its officers, directors and certain key employees while they are serving in good faith in their capacities. Through March 31, 2019, there have been no claims under any indemnification provisions. We do not believe that the outcome of any claims under indemnification arrangements will have a material effect on our financial position, results of operations or cash flows, and we have not accrued any liabilities related to such obligations in our consolidated financial statements as of March 31, 2019 or December 31, 2018. Litigation On March 21, 2018, Finjan, Inc. (“Finjan”) filed a complaint in the U.S. District Court for the Northern District of California alleging that certain of the Company's products and services infringe at least four U.S. patents purportedly owned by Finjan, seeking, among other things, a judgment holding that the Company has infringed four asserted patents, a preliminary and permanent injunction preventing alleged continued infringement of one of the asserted patents, past damages not less than a reasonable royalty, enhanced damages for alleged willful infringement, costs and reasonable attorneys' fees, and pre‑ and post‑judgment interest. While the Company did not believe the complaint had merit, on April 6, 2018, the Company entered into a settlement agreement with Finjan, resolving all claims made pursuant to the complaint, which was dismissed later in April 2018. During the year ended December 31, 2018, we recognized and paid $3.9 million in settlement charges relating to this matter. From time to time the Company may become involved in legal proceedings or be subject to claims arising in the ordinary course of business. Although the results of litigation and claims cannot be predicted with certainty, the Company currently believes that the final outcome of these ordinary course matters will not have a material adverse effect on its business, operating results, financial condition or cash flows. Regardless of the outcome, litigation can have an adverse impact because of defense and settlement costs, diversion of management resources and other factors. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure Text Block | |
Income Taxes | 11. INCOME TAXES During the three months ended March 31, 2019 and 2018, the Company recorded an income tax provision of $66 thousand and $71 thousand, respectively, due to foreign income taxes. |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure Text Block | |
Revenue | 12. REVENUE We generate revenue through relationships with channel partners and through our direct sales force, consisting of three primary sources: (i) Sale of subscription (i.e., term-based) and perpetual licenses for our CB Protection and CB Response software products along with access to and the right to utilize the threat intelligence capabilities of the CB Predictive Security Cloud, as well as maintenance services and customer support, collectively referred to as support; (ii) Cloud-based software-as-a-service, or SaaS, subscriptions for access to our CB Predictive Security Cloud software products and CB Response Cloud; and (iii) Professional services and training, collectively referred to as services. For information about our revenue recognition methodology, refer to Note 2 to our consolidated financial statements in our 2018 Form 10-K. Contract Costs As of March 31, 2019 and December 31, 2018, the Company recorded approximately $39.1 million and $38.1 million, respectively, of deferred commission costs in the consolidated balance sheet. Commission costs capitalized as deferred commissions during the three months ended March 31, 2019 and 2018 totaled $4.9 million and $3.5 million, respectively. Amortization of deferred commissions during the three months ended March 31, 2019 and 2018 totaled $3.9 million and $3.0 million, respectively, and is included in sales and marketing expense in the consolidated statements of operations. The Company periodically reviews these deferred costs to determine whether events or changes in circumstances have occurred that could impact the period of benefit of these deferred sales commissions. The Company does not incur any material costs to fulfill customer contracts. Deferred Revenue Contract liabilities consist of deferred revenue and include payments received in advance of performance under the contract. Such amounts are recognized as revenue over the contractual period. During the three months ended March 31, 2019, we recognized revenue of $54.5 million which was included in the deferred revenue balance as of December 31, 2018. We receive payments from customers based upon contractual billing schedules; accounts receivable are recorded when the right to consideration becomes unconditional. We generally bill our customers in advance, and payment terms on invoiced amounts are typically 30 to 90 days. Contract costs include amounts related to our contractual right to consideration for completed and partially completed performance obligations that may not have been invoiced; such amounts have been insignificant to date. Major products and services Three Months Ended March 31, (In thousands) 2019 2018 Subscription and support revenue $ 33,741 $ 32,095 Cloud-based subscription revenue 21,033 11,692 Perpetual license revenue 1,520 1,604 Services revenue 2,262 3,043 Total revenue $ 58,556 $ 48,434 Geographic revenue Three Months Ended March 31, (In thousands) 2019 2018 United States $ 47,609 $ 40,493 All other 10,947 7,941 Total revenue $ 58,556 $ 48,434 Transaction price allocated to remaining performance obligations Transaction price allocated to remaining performance obligations represents contracted revenue that has not yet been recognized, which includes deferred revenue and backlog. The Company defines backlog as contractually committed orders for subscriptions and support services for which the associated revenue has not been recognized and the customer has not been invoiced. As of March 31, 2019, the aggregate amount of the transaction price allocated to remaining performance obligations was $183.2 million in deferred revenue and $40.0 million in backlog. The following table presents the remaining performance obligations we expect to recognize over the periods indicated (in percentages): Less than More than Total 1 year 1-2 Years 2 years Deferred revenue 100 % 80 % 14 % 6 % Backlog 100 38 43 19 Concentration Risk As of March 31, 2019, two channel partners accounted for approximately 28% and 23% of outstanding accounts receivable, respectively, and approximately 21% and 18% of total revenue, respectively, for the three months ended March 31, 2019. During the three months ended March 31, 2019 and 2018, revenue from customers located outside of the United States in the aggregate accounted for approximately 19% and 16%, respectively, of our total revenue. Substantially all of our long-lived tangible assets (consisting of property and equipment) were held within the United States as of March 31, 2019 and December 31, 2018. |
Net Loss per Share
Net Loss per Share | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure Text Block | |
Net Loss Per Share | 13. NET LOSS PER SHARE Basic net loss per share is computed by dividing the net loss attributable to common stockholders by the weighted-average number of common shares outstanding during the period. Diluted net loss per share attributable to common stockholders is computed by dividing net loss attributable to common stockholders by diluted weighted-average shares outstanding, including potentially dilutive securities, unless anti-dilutive. As the company was in a loss for all periods presented, basic net loss per share is the same as dilutive net loss per share as the inclusion of all potential common shares outstanding would have been anti-dilutive. The following table presents the calculation for basic and diluted net loss per share attributable to common stockholders for the dates indicated: Three Months Ended March 31, (in thousands, except share and per share amounts) 2019 2018 Numerator: Net loss $ (19,687) $ (20,594) Accretion of preferred stock to redemption value — (40,039) Net loss attributable to common stockholders $ (19,687) $ (60,633) Denominator: Weighted-average number of common shares outstanding—basic and diluted 70,474,542 11,264,252 Net loss per share attributable to common stockholders—basic and diluted $ (0.28) $ (5.38) The following table presents the potentially dilutive securities that were excluded from the computation of net loss per share for the periods presented because their inclusion would have an anti-dilutive effect: As of March 31, 2019 2018 Options to purchase common stock 14,341,751 15,368,789 Unvested restricted stock units 1,299,873 394,500 Shares to be issued under ESPP 68,886 — Options to purchase Series E-1 preferred stock (as converted to common stock) — 837,835 Warrants to purchase common stock — 106,250 Warrants to purchase redeemable convertible preferred stock (as converted to common stock) — 167,500 Redeemable convertible preferred stock (as converted to common stock) — 44,370,560 Total potential common shares 15,710,510 61,245,434 |
Overview and Basis of Present_2
Overview and Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Policy Text Blocks | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements have been prepared by us in accordance with accounting principles generally accepted in the United States (“GAAP”), as well as pursuant to the rules and regulations of the Securities and Exchange Commission (SEC), regarding interim financial reporting. Accordingly, certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. These consolidated financial statements should be read in conjunction with the financial information included in our Annual Report on Form 10-K for 2018 filed with the SEC on March 8, 2019 (“2018 Form 10-K”). The consolidated financial statements include our results of operations and those of our wholly-owned subsidiaries and reflect all adjustments which are, in the opinion of management, necessary for a fair statement of results for the interim periods presented. All intercompany transactions and balances have been eliminated in consolidation. Certain previously reported amounts presented in this Quarterly Report on Form 10-Q (“Form 10-Q”) may be reclassified to conform to current-period presentation. Events occurring subsequent to the date of our consolidated balance sheet were evaluated for potential recognition or disclosure in our consolidated financial statements through the date we filed this Form 10-Q with the SEC. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that may materially affect the reported amounts of assets, liabilities, equity, revenue and expenses. As a result of unanticipated events or circumstances, actual results could differ from those estimates, and such differences may be material to the consolidated financial statements. For additional information about our use of estimates refer to “Critical Accounting Policies” included under management’s discussion and analysis in our 2018 Form 10-K. Significant Accounting Policies Effective January 1, 2019, the Company adopted the requirements of Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842) (“ASC 842”) on a modified retrospective transition approach as discussed in detail in Note 2. All amounts and disclosures set forth in this Form 10-Q have been updated to comply with ASC 842. The Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”) permits an “emerging growth company” such as the Company, to take advantage of an extended transition period to comply with new or revised accounting standards applicable to public companies until those standards would otherwise apply to private companies. The Company has irrevocably elected to “opt out” of this provision and, as a result, the Company will comply with new or revised accounting standards when they are required to be adopted by public companies that are not emerging growth companies. For a complete discussion of our significant accounting policies refer to Note 2 to the consolidated financial statements in our 2018 Form 10-K. |
Cash Equivalents and Short term
Cash Equivalents and Short term Investments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Table Text Blocks | |
Schedule of cash equivalents and short-term investments | March 31, 2019 (In thousands) Amortized Cost Unrealized Gains Unrealized Losses Fair Value Cash equivalents: Money market funds $ 55,798 $ — $ — $ 55,798 Total cash equivalents $ 55,798 $ — $ — $ 55,798 Short-term investments: Commercial paper $ 37,606 $ — $ — $ 37,606 U.S. treasury securities 14,375 — — 14,375 Corporate bonds 17,852 — — 17,852 Asset-backed securities 10,566 — — 10,566 Total short-term investments $ 80,399 $ — $ — $ 80,399 December 31, 2018 (In thousands) Amortized Cost Unrealized Gains Unrealized Losses Fair Value Cash equivalents: Money market funds $ 52,047 $ — $ — $ 52,047 Total cash equivalents $ 52,047 $ — $ — $ 52,047 Short-term investments: Commercial paper $ 42,706 $ — $ — $ 42,706 U.S. treasury securities 21,486 — (9) 21,477 Corporate bonds 13,790 — (23) 13,767 Asset-backed securities 14,837 — (17) 14,820 Total short-term investments $ 92,819 $ — $ (49) $ 92,770 |
Schedule of summary of the contractual maturities of our short-term investments | March 31, 2019 (In thousands) Amortized Cost Fair Value Due within one year $ 80,399 $ 80,399 Due after one year — — Total short-term investments $ 80,399 $ 80,399 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Table Text Blocks | |
Schedule of financial assets and liabilities measured at fair value on a recurring basis | March 31, 2019 (In thousands) Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 55,798 $ — $ — $ 55,798 Total cash equivalents $ 55,798 $ — $ — $ 55,798 Short-term investments: Commercial paper $ — $ 37,606 $ — $ 37,606 U.S. treasury securities 14,375 — — 14,375 Corporate bonds — 17,852 — 17,852 Asset-backed securities — 10,566 — 10,566 Total short-term investments $ 14,375 $ 66,024 $ — $ 80,399 December 31, 2018 (In thousands) Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 52,047 $ — $ — $ 52,047 Total cash equivalents $ 52,047 $ — $ — $ 52,047 Short-term investments: Commercial paper $ — $ 42,706 $ — $ 42,706 U.S. treasury securities 21,477 — — 21,477 Corporate bonds — 13,767 — 13,767 Asset-backed securities — 14,820 — 14,820 Total short-term investments $ 21,477 $ 71,293 $ — $ 92,770 |
Schedule of changes in fair values of preferred stock warrant liabilities and common stock warrant liability | (In thousands) Series D Stock Liability Common Stock Liability Fair value at December 31, 2017 $ 992 $ 1,774 Change in fair value 1,378 7,460 Exercise of common stock warrant — (9,234) Conversion to common stock warrant (2,370) — Fair value at December 31, 2018 $ — $ — (1) Upon the closing of our IPO in May 2018, we no longer had any outstanding warrant liabilities. |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Table Text Blocks | |
Schedule of property and equipment, net | March 31, December 31, (In thousands) 2019 2018 Computer equipment $ 15,776 $ 15,519 Leasehold improvements 6,987 6,921 Internal-use software 4,458 4,298 Computer software 3,885 3,850 Furniture and fixtures 3,790 3,773 Office equipment 20 20 Total property and equipment 34,916 34,381 Less: Accumulated depreciation and amortization (21,663) (20,011) Total property and equipment, net $ 13,253 $ 14,370 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Table Text Blocks | |
Schedule of identifiable intangible assets | March 31, 2019 December 31, 2018 Gross Accumulated Carrying Gross Accumulated Carrying (In thousands) Amount Amortization Value Amount Amortization Value Intangible assets: License agreement $ 150 $ (131) $ 19 $ 150 $ (128) $ 22 Developed technology 7,301 (5,116) 2,185 7,301 (4,804) 2,497 Trade name 440 (440) — 440 (430) 10 Customer relationships 2,950 (2,950) — 2,950 (2,950) — Total intangible assets $ 10,841 $ (8,637) $ 2,204 $ 10,841 $ (8,312) $ 2,529 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Table Text Blocks | |
Schedule of lease cost | (Dollars in thousands, except where otherwise noted) March 31, 2019 Lease cost: Operating lease cost $ 1,202 Short-term lease cost 16 Sublease income (52) Total lease cost $ 1,166 Other information: Cash paid for amounts included in the measurement of lease liabilities $ 1,460 Weighted-average: Remaining lease term - operating leases 3.5 years Discount rate - operating leases |
Schedule of future minimum payments under non-cancellable leases - ASC 842 | (In thousands) March 31, 2019 2019 (remaining nine months) $ 4,701 2020 5,900 2021 5,675 2022 2,709 2023 1,303 Thereafter 244 Total lease payments 20,532 Less: Imputed interest (1,849) Present value of lease payments $ 18,683 |
Schedule of future minimum payments under non-cancellable leases - ASC 840 | (In thousands) December 31, 2018 2019 $ 5,492 2020 5,343 2021 5,118 2022 2,343 2023 1,070 Thereafter 986 Total lease payments $ 20,352 |
Equity Award Plans (Tables)
Equity Award Plans (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Table Text Blocks | |
Schedule of stock option activity | Weighted- Weighted- Average Remaining Aggregate Number of Average Contractual Term Intrinsic (Dollars in thousands, except per share amounts) Shares Exercise Price (in years) Value Outstanding at December 31, 2018 16,217,066 $ 6.26 6.56 $ 126,901 Granted 32,000 15.27 Exercised (1,535,993) 4.04 Forfeited (371,322) 11.92 Outstanding at March 31, 2019 14,341,751 $ 6.37 6.43 $ 117,724 Vested and expected to vest at March 31, 2019 13,863,290 6.20 6.36 115,350 Options exercisable at March 31, 2019 9,631,348 4.46 5.51 91,899 |
Schedule of stock option assumptions | Three Months Ended March 31, 2019 2018 Risk-free interest rate 2.53 % 2.74 % Expected term (in years) 6.25 6.25 Expected volatility 42.63 % 43.85 % Expected dividend yield — — |
Schedule of Restricted Stock Unit ("RSU") activity | Weighted ‑ Weighted ‑ Average Average Remaining Aggregate Number of Grant Date Fair Contractual Term Intrinsic (Dollars in thousands, except share per share amounts) Shares Value Per Share (in years) Value Unvested at December 31, 2018 1,116,675 $ 14.31 1.56 $ 14,986 Granted 371,925 15.30 Vested (1) (148,670) 7.78 Forfeited (40,057) 18.97 Unvested at March 31, 2019 1,299,873 $ 15.19 1.67 $ 18,133 RSUs vested and expected to vest at March 31, 2019 1,103,894 15.20 1.58 15,399 RSUs vested and exercisable at March 31, 2019 — — — — |
Schedule of stock-based compensation expense | Three Months Ended March 31, (In thousands) 2019 2018 Cost of subscription, license and support revenue $ 167 $ 136 Cost of services revenue 64 57 Sales and marketing expense 1,838 936 Research and development expense 1,044 564 General and administrative expense 1,091 696 $ 4,204 $ 2,389 |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Table Text Blocks | |
Schedule of disaggregation of revenue | Major products and services Three Months Ended March 31, (In thousands) 2019 2018 Subscription and support revenue $ 33,741 $ 32,095 Cloud-based subscription revenue 21,033 11,692 Perpetual license revenue 1,520 1,604 Services revenue 2,262 3,043 Total revenue $ 58,556 $ 48,434 Geographic revenue Three Months Ended March 31, (In thousands) 2019 2018 United States $ 47,609 $ 40,493 All other 10,947 7,941 Total revenue $ 58,556 $ 48,434 |
Schedule of transaction price allocated to the remaining performance obligations | Less than More than Total 1 year 1-2 Years 2 years Deferred revenue 100 % 80 % 14 % 6 % Backlog 100 38 43 19 |
Net Loss per Share (Tables)
Net Loss per Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Table Text Blocks | |
Schedule of basic and diluted net loss per share attributable to common stockholders | Three Months Ended March 31, (in thousands, except share and per share amounts) 2019 2018 Numerator: Net loss $ (19,687) $ (20,594) Accretion of preferred stock to redemption value — (40,039) Net loss attributable to common stockholders $ (19,687) $ (60,633) Denominator: Weighted-average number of common shares outstanding—basic and diluted 70,474,542 11,264,252 Net loss per share attributable to common stockholders—basic and diluted $ (0.28) $ (5.38) |
Schedule of potential common shares excluded from computation of diluted net loss per share | As of March 31, 2019 2018 Options to purchase common stock 14,341,751 15,368,789 Unvested restricted stock units 1,299,873 394,500 Shares to be issued under ESPP 68,886 — Options to purchase Series E-1 preferred stock (as converted to common stock) — 837,835 Warrants to purchase common stock — 106,250 Warrants to purchase redeemable convertible preferred stock (as converted to common stock) — 167,500 Redeemable convertible preferred stock (as converted to common stock) — 44,370,560 Total potential common shares 15,710,510 61,245,434 |
Overview and Basis of Present_3
Overview and Basis of Presentation - Reverse Stock Split (Details) | Apr. 20, 2018 |
Reverse stock split | |
Reverse stock split ratio | 0.50 |
Overview and Basis of Present_4
Overview and Basis of Presentation - Initial Public Offering - Sale of Stock (Details) - Initial Public Offering $ / shares in Units, $ in Millions | May 08, 2018USD ($)$ / sharesshares |
Initial Public Offering | |
Issuance of common stock upon initial public offering, net of underwriting discounts and commissions and offering costs incurred (in shares) | shares | 9,200,000 |
Share price (in dollars per share) | $ / shares | $ 19 |
Aggregate proceeds from IPO | $ 162.6 |
Offering costs | $ 4.9 |
Overview and Basis of Present_5
Overview and Basis of Presentation - Initial Public Offering - Conversion of Preferred Stock (Details) | May 08, 2018shares |
Initial Public Offering | |
Common stock issued upon conversion of redeemable preferred stock (in shares) | 46,079,623 |
Overview and Basis of Present_6
Overview and Basis of Presentation - Initial Public Offering - Warrants Exercised (Details) | May 08, 2018shares |
Common stock warrants issued on July 1, 2012 | |
Warrants | |
Common stock issued upon exercise of warrants (in shares) | 485,985 |
New Accounting Pronouncements -
New Accounting Pronouncements - Practical Expedients (Details) | 3 Months Ended |
Mar. 31, 2019 | |
Leases | |
Lease, Practical Expedient, Use of Hindsight | true |
Lease, Practical Expedients, Package | true |
New Accounting Pronouncements_2
New Accounting Pronouncements - General Information (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Jan. 01, 2019 |
Leases | ||
Operating lease right-of-use assets | $ 14,931 | |
Operating lease long-term liability | $ 13,344 | |
Accounting Standards Update 2016-02 | ||
Leases | ||
Operating lease right-of-use assets | $ 16,000 | |
Operating lease long-term liability | $ 19,900 |
Cash Equivalents and Short-te_2
Cash Equivalents and Short-term Investments - Cash Equivalents (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Cash equivalents | ||
Cash equivalents: | ||
Amortized Cost | $ 55,798 | $ 52,047 |
Fair Value | 55,798 | 52,047 |
Money market funds | ||
Cash equivalents: | ||
Amortized Cost | 55,798 | 52,047 |
Fair Value | $ 55,798 | $ 52,047 |
Cash Equivalents and Short-te_3
Cash Equivalents and Short-term Investments - Short-term Investments (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Short-term investments | ||
Amortized Cost | $ 80,399 | $ 92,819 |
Unrealized Losses | (49) | |
Fair Value | 80,399 | 92,770 |
Commercial paper | ||
Short-term investments | ||
Amortized Cost | 37,606 | 42,706 |
Fair Value | 37,606 | 42,706 |
U.S. treasury securities | ||
Short-term investments | ||
Amortized Cost | 14,375 | 21,486 |
Unrealized Losses | (9) | |
Fair Value | 14,375 | 21,477 |
Corporate bonds | ||
Short-term investments | ||
Amortized Cost | 17,852 | 13,790 |
Unrealized Losses | (23) | |
Fair Value | 17,852 | 13,767 |
Asset-backed securities | ||
Short-term investments | ||
Amortized Cost | 10,566 | 14,837 |
Unrealized Losses | (17) | |
Fair Value | $ 10,566 | $ 14,820 |
Cash Equivalents and Short-te_4
Cash Equivalents and Short-term Investments - Contractual Maturities of Short-term Investments (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Amortized Cost | ||
Due within one year | $ 80,399 | |
Amortized Cost | 80,399 | $ 92,819 |
Fair Value | ||
Due within one year | 80,399 | |
Total short-term investments | $ 80,399 | $ 92,770 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Financial Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Assets: | ||
Short-term investments | $ 80,399 | $ 92,770 |
Commercial paper | ||
Assets: | ||
Short-term investments | 37,606 | 42,706 |
U.S. treasury securities | ||
Assets: | ||
Short-term investments | 14,375 | 21,477 |
Corporate bonds | ||
Assets: | ||
Short-term investments | 17,852 | 13,767 |
Asset-backed securities | ||
Assets: | ||
Short-term investments | 10,566 | 14,820 |
Cash equivalents | ||
Assets: | ||
Cash equivalents | 55,798 | 52,047 |
Money market funds | ||
Assets: | ||
Cash equivalents | 55,798 | 52,047 |
Recurring basis | Fair Value, Inputs, Level 1, 2 and 3 [Member] | ||
Assets: | ||
Short-term investments | 80,399 | 92,770 |
Recurring basis | Fair Value, Inputs, Level 1, 2 and 3 [Member] | Commercial paper | ||
Assets: | ||
Short-term investments | 37,606 | 42,706 |
Recurring basis | Fair Value, Inputs, Level 1, 2 and 3 [Member] | U.S. treasury securities | ||
Assets: | ||
Short-term investments | 14,375 | 21,477 |
Recurring basis | Fair Value, Inputs, Level 1, 2 and 3 [Member] | Corporate bonds | ||
Assets: | ||
Short-term investments | 17,852 | 13,767 |
Recurring basis | Fair Value, Inputs, Level 1, 2 and 3 [Member] | Asset-backed securities | ||
Assets: | ||
Short-term investments | 10,566 | 14,820 |
Recurring basis | Fair Value, Inputs, Level 1, 2 and 3 [Member] | Cash equivalents | ||
Assets: | ||
Cash equivalents | 55,798 | 52,047 |
Recurring basis | Fair Value, Inputs, Level 1, 2 and 3 [Member] | Money market funds | ||
Assets: | ||
Cash equivalents | 55,798 | 52,047 |
Recurring basis | Level 1 | ||
Assets: | ||
Short-term investments | 14,375 | 21,477 |
Recurring basis | Level 1 | U.S. treasury securities | ||
Assets: | ||
Short-term investments | 14,375 | 21,477 |
Recurring basis | Level 1 | Cash equivalents | ||
Assets: | ||
Cash equivalents | 55,798 | 52,047 |
Recurring basis | Level 1 | Money market funds | ||
Assets: | ||
Cash equivalents | 55,798 | 52,047 |
Recurring basis | Level 2 | ||
Assets: | ||
Short-term investments | 66,024 | 71,293 |
Recurring basis | Level 2 | Commercial paper | ||
Assets: | ||
Short-term investments | 37,606 | 42,706 |
Recurring basis | Level 2 | Corporate bonds | ||
Assets: | ||
Short-term investments | 17,852 | 13,767 |
Recurring basis | Level 2 | Asset-backed securities | ||
Assets: | ||
Short-term investments | $ 10,566 | $ 14,820 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Level 3 Roll Forward (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Series D preferred stock warrants | |
Fair values of preferred stock warrant liabilities and common stock warrant liability | |
Beginning Balance | $ 992 |
Change in fair value | 1,378 |
Exercise of common stock warrants / Conversion to common stock warrants | (2,370) |
Ending Balance | 0 |
Warrants to purchase common stock | |
Fair values of preferred stock warrant liabilities and common stock warrant liability | |
Beginning Balance | 1,774 |
Change in fair value | 7,460 |
Exercise of common stock warrants / Conversion to common stock warrants | (9,234) |
Ending Balance | $ 0 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Warrants Exercised (Details) | May 08, 2018shares |
Common stock warrants issued on July 1, 2012 | |
Warrants | |
Common stock issued upon exercise of warrants (in shares) | 485,985 |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments - Valuation Assumptions (Details) - Warrants to purchase common stock | May 08, 2018$ / shares |
Valuation assumptions | |
Warrants, type | us-gaap:CommonStockMember |
Valuation technique | us-gaap:ValuationTechniqueOptionPricingModelMember |
Measurement Input, Share Price | |
Valuation assumptions | |
Measurement input | 19 |
Property and Equipment, Net - T
Property and Equipment, Net - Tabular Disclosure (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Property and equipment, net | ||
Property and equipment, gross | $ 34,916 | $ 34,381 |
Less: Accumulated depreciation and amortization | (21,663) | (20,011) |
Property and equipment, net | 13,253 | 14,370 |
Computer equipment | ||
Property and equipment, net | ||
Property and equipment, gross | 15,776 | 15,519 |
Leasehold improvements | ||
Property and equipment, net | ||
Property and equipment, gross | 6,987 | 6,921 |
Internal-use software | ||
Property and equipment, net | ||
Property and equipment, gross | 4,458 | 4,298 |
Computer software | ||
Property and equipment, net | ||
Property and equipment, gross | 3,885 | 3,850 |
Furniture and fixtures | ||
Property and equipment, net | ||
Property and equipment, gross | 3,790 | 3,773 |
Office equipment | ||
Property and equipment, net | ||
Property and equipment, gross | $ 20 | $ 20 |
Property and Equipment, Net - D
Property and Equipment, Net - Depreciation and Amortization Expense (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Depreciation and amortization expense | ||
Depreciation and amortization expense related to property and equipment, including internal-use software | $ 1.8 | $ 1.5 |
Property and Equipment, Net -_2
Property and Equipment, Net - Disposals (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Property and equipment, net | ||
Disposed of fully depreciated assets with an original cost | $ 149 | $ 0 |
Property and Equipment, Net - C
Property and Equipment, Net - Capitalized Internal-use Software (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Capitalized internal-use software | ||
Internal-use software capitalized | $ 160 | $ 293 |
Capitalized internal-use software, amortization expense | $ 304 | $ 157 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Goodwill (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Goodwill | ||
Goodwill | $ 119,656 | $ 119,656 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Identifiable Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Intangible Assets | ||
Gross Amount | $ 10,841 | $ 10,841 |
Accumulated Amortization | (8,637) | (8,312) |
Carrying Value | 2,204 | 2,529 |
License Agreement | ||
Intangible Assets | ||
Gross Amount | 150 | 150 |
Accumulated Amortization | (131) | (128) |
Carrying Value | 19 | 22 |
Developed Technology | ||
Intangible Assets | ||
Gross Amount | 7,301 | 7,301 |
Accumulated Amortization | (5,116) | (4,804) |
Carrying Value | 2,185 | 2,497 |
Trade Name | ||
Intangible Assets | ||
Gross Amount | 440 | 440 |
Accumulated Amortization | (440) | (430) |
Carrying Value | 10 | |
Customer Relationships | ||
Intangible Assets | ||
Gross Amount | 2,950 | 2,950 |
Accumulated Amortization | $ (2,950) | $ (2,950) |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Amortization Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Intangible Assets | ||
Amortization expense | $ 325 | $ 391 |
Leases - General Information (D
Leases - General Information (Details) | 3 Months Ended |
Mar. 31, 2019 | |
Leases | |
Extension options terms | 5 years |
Termination options terms | 3 years |
Minimum | |
Leases | |
Lease terms | 1 year |
Maximum | |
Leases | |
Lease terms | 5 years |
Leases - Components of Lease Ex
Leases - Components of Lease Expense and Supplemental Information (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Lease cost: | |
Operating lease cost | $ 1,202 |
Short-term lease cost | 16 |
Sublease income | (52) |
Total lease cost | 1,166 |
Other information: | |
Cash paid for amounts included in the measurement of lease liabilities | $ 1,460 |
Remaining lease term - operating leases | 3 years 6 months |
Discount rate - operating leases | 5.50% |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments - ASC 842 (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Leases | |
2019 (remaining nine months) | $ 4,701 |
2020 | 5,900 |
2021 | 5,675 |
2022 | 2,709 |
2023 | 1,303 |
Thereafter | 244 |
Total lease payments | $ 20,532 |
Leases - Present Value of Lease
Leases - Present Value of Lease Payments (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Leases | |
Total lease payments | $ 20,532 |
Less: Imputed interest | (1,849) |
Present value of lease payments | $ 18,683 |
Leases - Future Minimum Lease_2
Leases - Future Minimum Lease Payments - ASC 840 (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Leases | |
2019 | $ 5,492 |
2020 | 5,343 |
2021 | 5,118 |
2022 | 2,343 |
2023 | 1,070 |
Thereafter | 986 |
Total lease payments | $ 20,352 |
Stockholders' Equity - Preferre
Stockholders' Equity - Preferred Stock - Conversion to Common Stock (Details) $ in Millions | May 08, 2018USD ($)shares |
Preferred Stock | |
Conversion of convertible preferred stock upon initial public offering (in shares) | shares | 46,079,623 |
Redeemable convertible preferred stock | |
Preferred Stock | |
Conversion of convertible preferred stock upon initial public offering | $ 532.7 |
Series A convertible preferred stock | |
Preferred Stock | |
Conversion of convertible preferred stock upon initial public offering | $ 1.7 |
Stockholders' Equity - Prefer_2
Stockholders' Equity - Preferred Stock - Warrants Exercised (Details) - Common stock warrants converted from Series D preferred stock warrants issued upon closing of initial public offering | May 08, 2018$ / sharesshares |
Warrants | |
Stock issued upon exercise of warrants (in shares) | shares | 130,965 |
Exercise price (in dollars per share) | $ / shares | $ 2.9891 |
Stockholders' Equity - Prefer_3
Stockholders' Equity - Preferred Stock - General Information (Details) - $ / shares | Mar. 31, 2019 | Dec. 31, 2018 |
Preferred stock | ||
Preferred stock, shares authorized (in shares) | 25,000,000 | 25,000,000 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Stockholders' Equity - Common S
Stockholders' Equity - Common Stock - Common Stock Warrant (Details) | May 08, 2018$ / sharesshares |
Common stock warrants issued on July 1, 2012 | |
Warrants | |
Exercise price (in dollars per share) | $ / shares | $ 0.002 |
Stock issued upon exercise of warrants (in shares) | shares | 485,985 |
Common stock warrants issued on July 31, 2014, expiring July 2024 | |
Warrants | |
Exercise price (in dollars per share) | $ / shares | $ 3.02 |
Stock issued upon exercise of warrants (in shares) | shares | 95,113 |
Stockholders' Equity - Common_2
Stockholders' Equity - Common Stock - General Information (Details) - $ / shares | Mar. 31, 2019 | Dec. 31, 2018 |
Common stock | ||
Common stock, authorized shares (in shares) | 500,000,000 | 500,000,000 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares issued (in shares) | 71,396,964 | 69,738,599 |
Common stock, shares outstanding (in shares) | 71,341,560 | 69,683,195 |
Stockholders' Equity - Common_3
Stockholders' Equity - Common Stock - Additional Information (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019USD ($)Vote | Mar. 31, 2018USD ($)Vote | |
Common stock | ||
Number of votes | Vote | 1 | 1 |
Dividends declared, common stock | $ | $ 0 | $ 0 |
Equity Award Plans - 2018 Stock
Equity Award Plans - 2018 Stock Option and Incentive Plan (Details) - shares shares in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
2018 Plan | ||
Share-based compensation | ||
Number of shares available for grant (in shares) | 9.3 | 5.8 |
Equity Award Plans - Options to
Equity Award Plans - Options to Purchase Common Stock - Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Number of Shares | ||
Beginning balance (in shares) | 16,217,066 | |
Granted (in shares) | 32,000 | |
Exercised (in shares) | (1,535,993) | |
Forfeited (in shares) | (371,322) | |
Ending balance (in shares) | 14,341,751 | 16,217,066 |
Weighted-Average Exercise Price | ||
Beginning balance (in dollars per share) | $ 6.26 | |
Granted (in dollars per share) | 15.27 | |
Exercised (in dollars per share) | 4.04 | |
Forfeited (in dollars per share) | 11.92 | |
Ending balance (in dollars per share) | $ 6.37 | $ 6.26 |
Vested and expected to vest | ||
Number of Shares - Vested and expected to vest (in shares) | 13,863,290 | |
Weighted-Average Exercise Price - Vested and expected to vest (in dollars per share) | $ 6.20 | |
Weighted-Average Remaining Contractual Term - Vested and expected to vest (in years) | 6 years 4 months 10 days | |
Aggregate Intrinsic Value - Vested and expected to vest | $ 115,350 | |
Additional disclosures | ||
Weighted-Average Remaining Contractual Term - Options, balance (in years) | 6 years 5 months 5 days | 6 years 6 months 22 days |
Aggregate Intrinsic Value - Options, balance | $ 117,724 | $ 126,901 |
Number of Shares - Options exercisable (in shares) | 9,631,348 | |
Weighted-Average Exercise Price - Options exercisable (in dollars per share) | $ 4.46 | |
Weighted-Average Remaining Contractual Term - Options exercisable (in years) | 5 years 6 months 4 days | |
Aggregate Intrinsic Value - Options exercisable | $ 91,899 |
Equity Award Plans - Options _2
Equity Award Plans - Options to Purchase Common Stock - Unrecognized Compensation Cost (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Unrecognized compensation cost | |
Unrecognized compensation cost, options | $ 26 |
Employee Stock Options | |
Unrecognized compensation cost | |
Weighted-average period for unrecognized compensation cost | 2 years 2 months 27 days |
Equity Award Plans - Options _3
Equity Award Plans - Options to Purchase Common Stock - Fair Value Assumptions (Details) - Options to purchase common stock | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Fair value assumptions | ||
Risk-free interest rate (as a percent) | 2.53% | 2.74% |
Expected term (in years) | 6 years 3 months | 6 years 3 months |
Expected volatility (as a percent) | 42.63% | 43.85% |
Expected dividend yield (as a percent) | 0.00% | 0.00% |
Equity Award Plans - Restricted
Equity Award Plans - Restricted Stock Units - Activity (Details) - Unvested restricted stock units - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Number of Shares | ||
Beginning balance (in shares) | 1,116,675 | |
Granted (in shares) | 371,925 | |
Vested (in shares) | (148,670) | |
Forfeited (in shares) | (40,057) | |
Ending balance (in shares) | 1,299,873 | 1,116,675 |
Weighted-Average Grant Date Fair Value Per Share | ||
Beginning balance (in dollars per share) | $ 14.31 | |
Granted (in dollars per share) | 15.30 | |
Vested (in dollars per share) | 7.78 | |
Forfeited (in dollars per share) | 18.97 | |
Ending balance (in dollars per share) | $ 15.19 | $ 14.31 |
Additional disclosures | ||
Weighted-Average Remaining Contractual Term - Balance (in years) | 1 year 8 months 1 day | 1 year 6 months 22 days |
Number of Shares - Vested and expected to vest (in shares) | 1,103,894 | |
Weighted-Average Remaining Contractual Term - Vested and expected to vest (in dollars per share) | $ 15.20 | |
Weighted-Average Remaining Contractual Term - Vested and expected to vest (in years) | 1 year 6 months 29 days | |
Aggregate Intrinsic Value | ||
Balance | $ 18,133 | $ 14,986 |
Vested and expected to vest | $ 15,399 |
Equity Award Plans - Restrict_2
Equity Award Plans - Restricted Stock Units - Unrecognized Compensation Cost (Details) - Unvested restricted stock units $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Unrecognized compensation cost | |
Unrecognized compensation cost | $ 18.4 |
Weighted-average period for unrecognized compensation cost | 3 years 2 months 12 days |
Equity Award Plans - Stock-Base
Equity Award Plans - Stock-Based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Stock-Based Compensation | ||
Stock-based compensation expense | $ 4,204 | $ 2,389 |
Cost of revenue | Subscription, License and Support | ||
Stock-Based Compensation | ||
Stock-based compensation expense | 167 | 136 |
Cost of revenue | Services | ||
Stock-Based Compensation | ||
Stock-based compensation expense | 64 | 57 |
Sales and marketing expense | ||
Stock-Based Compensation | ||
Stock-based compensation expense | 1,838 | 936 |
Research and development expense | ||
Stock-Based Compensation | ||
Stock-based compensation expense | 1,044 | 564 |
General and administrative expense | ||
Stock-Based Compensation | ||
Stock-based compensation expense | $ 1,091 | $ 696 |
Equity Award Plans - Employee S
Equity Award Plans - Employee Stock Purchase Plan (Details) - Employee Stock Purchase Plan shares in Millions | 1 Months Ended |
Apr. 30, 2018shares | |
Share-based compensation | |
Number of shares of common stock reserved for issuance (in shares) | 1.7 |
Percentage of base compensation of eligible employees to contribute through payroll deductions | 10.00% |
Commitments and Contingencies -
Commitments and Contingencies - Hosting Services Agreement (Details) $ in Millions | Mar. 31, 2019USD ($) |
Off-balance sheet commitment remaining under the hosting agreement | |
Off-balance sheet commitment remaining under the hosting agreement | $ 21.7 |
Commitments and Contingencies_2
Commitments and Contingencies - Indemnifications (Details) - Indemnifications | 3 Months Ended |
Mar. 31, 2019claim | |
Indemnifications | |
Number of claims pending | 0 |
Number of new claims | 0 |
Commitments and Contingencies_3
Commitments and Contingencies - Litigation (Details) - Settled litigation - Finjan, Inc. patent infringement $ in Millions | Mar. 21, 2018patent | Dec. 31, 2018USD ($) |
Patents | ||
Number of patents seeking judgment the Company infringed asserted patents | 4 | |
Number of patents seeking preliminary and permanent injunction against the Company preventing continued infringement | 1 | |
Payment | ||
Payment of settlement amount | $ | $ 3.9 | |
Minimum | ||
Patents | ||
Number of patents allegedly infringed | 4 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Taxes | ||
Provision for income taxes | $ 66 | $ 71 |
Revenue - Contract Costs (Detai
Revenue - Contract Costs (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Deferred commissions | |||
Deferred commissions | $ 39.1 | $ 38.1 | |
Commission costs capitalized | 4.9 | $ 3.5 | |
Amortization of deferred commissions | $ 3.9 | $ 3 |
Revenue - Deferred Revenue (Det
Revenue - Deferred Revenue (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Deferred revenue | |
Revenue recognized | $ 54.5 |
Revenue - Major Products and Se
Revenue - Major Products and Services (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenue: | ||
Revenue | $ 58,556 | $ 48,434 |
Subscription, License and Support | ||
Revenue: | ||
Revenue | 56,294 | 45,391 |
Subscription and support | ||
Revenue: | ||
Revenue | 33,741 | 32,095 |
Cloud-based subscription | ||
Revenue: | ||
Revenue | 21,033 | 11,692 |
Perpetual license | ||
Revenue: | ||
Revenue | 1,520 | 1,604 |
Services | ||
Revenue: | ||
Revenue | $ 2,262 | $ 3,043 |
Revenue - Geographic Revenue (D
Revenue - Geographic Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenue: | ||
Revenue | $ 58,556 | $ 48,434 |
United States | ||
Revenue: | ||
Revenue | 47,609 | 40,493 |
All other countries | ||
Revenue: | ||
Revenue | $ 10,947 | $ 7,941 |
Revenue - Performance Obligatio
Revenue - Performance Obligations - General Information (Details) $ in Millions | Mar. 31, 2019USD ($) |
Customers, Contracted Revenue, Deferred Revenue | |
Remaining performance obligations | |
Remaining performance obligation | $ 183.2 |
Customers, Contracted Revenue, Backlog | |
Remaining performance obligations | |
Remaining performance obligation | $ 40 |
Revenue - Performance Obligat_2
Revenue - Performance Obligations - Tabular Disclosure (Details) | Mar. 31, 2019 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Remaining performance obligations | |
Remaining performance obligation, expected timing of satisfaction, period | |
Customers, Contracted Revenue, Deferred Revenue | |
Remaining performance obligations | |
Remaining performance obligation (as a percent) | 100.00% |
Customers, Contracted Revenue, Deferred Revenue | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-04-01 | |
Remaining performance obligations | |
Remaining performance obligation (as a percent) | 80.00% |
Remaining performance obligation, expected timing of satisfaction, period | 9 months |
Customers, Contracted Revenue, Deferred Revenue | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Remaining performance obligations | |
Remaining performance obligation (as a percent) | 14.00% |
Remaining performance obligation, expected timing of satisfaction, period | 12 months |
Customers, Contracted Revenue, Deferred Revenue | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Remaining performance obligations | |
Remaining performance obligation (as a percent) | 6.00% |
Customers, Contracted Revenue, Backlog | |
Remaining performance obligations | |
Remaining performance obligation (as a percent) | 100.00% |
Customers, Contracted Revenue, Backlog | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-04-01 | |
Remaining performance obligations | |
Remaining performance obligation (as a percent) | 38.00% |
Remaining performance obligation, expected timing of satisfaction, period | 9 months |
Customers, Contracted Revenue, Backlog | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Remaining performance obligations | |
Remaining performance obligation (as a percent) | 43.00% |
Remaining performance obligation, expected timing of satisfaction, period | 12 months |
Customers, Contracted Revenue, Backlog | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Remaining performance obligations | |
Remaining performance obligation (as a percent) | 19.00% |
Revenue - Concentration Risk -
Revenue - Concentration Risk - Accounts Receivable (Details) - Accounts Receivable - Credit Concentration Risk | 3 Months Ended |
Mar. 31, 2019 | |
Channel Partner, One | |
Accounts receivable, net | |
Concentration risk (as a percent) | 28.00% |
Channel Partner, Two | |
Accounts receivable, net | |
Concentration risk (as a percent) | 23.00% |
Revenue - Concentration Risk _2
Revenue - Concentration Risk - Revenue (Details) - Sales Revenue, Services, Net - Customer Concentration Risk | 3 Months Ended |
Mar. 31, 2019 | |
Channel Partner, One | |
Revenue: | |
Concentration risk (as a percent) | 21.00% |
Channel Partner, Two | |
Revenue: | |
Concentration risk (as a percent) | 18.00% |
Revenue - Concentration Risk _3
Revenue - Concentration Risk - Revenue from Customers Located Outside the United States (Details) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Sales Revenue, Services, Net | Geographic Concentration Risk | All other countries | ||
Segment Information | ||
Concentration risk (as a percent) | 19.00% | 16.00% |
Net Loss per Share - Basic and
Net Loss per Share - Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Numerator: | ||
Net loss | $ (19,687) | $ (20,594) |
Accretion of preferred stock to redemption value | (40,039) | |
Net loss attributable to common stockholders | $ (19,687) | $ (60,633) |
Denominator: | ||
Weighted-average common shares outstanding - basic and diluted (in dollars per share) | 70,474,542 | 11,264,252 |
Net loss per share attributable to common stockholders - basic and diluted (in shares) | $ (0.28) | $ (5.38) |
Net Loss per Share - Anti-dilut
Net Loss per Share - Anti-dilutive Securities (Details) - shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Anti-dilutive securities | ||
Total potential common shares | 15,710,510 | 61,245,434 |
Options to purchase common stock | ||
Anti-dilutive securities | ||
Total potential common shares | 14,341,751 | 15,368,789 |
Unvested restricted stock units | ||
Anti-dilutive securities | ||
Total potential common shares | 1,299,873 | 394,500 |
Shares to be issued under ESPP | ||
Anti-dilutive securities | ||
Total potential common shares | 68,886 | |
Options to purchase Series E-1 preferred stock (as converted to common stock) | ||
Anti-dilutive securities | ||
Total potential common shares | 837,835 | |
Warrants to purchase common stock | ||
Anti-dilutive securities | ||
Total potential common shares | 106,250 | |
Warrants to purchase redeemable convertible preferred stock (as converted to common stock) | ||
Anti-dilutive securities | ||
Total potential common shares | 167,500 | |
Redeemable convertible preferred stock | ||
Anti-dilutive securities | ||
Total potential common shares | 44,370,560 |