Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | Apr. 30, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | HUBS | |
Entity Registrant Name | HUBSPOT INC | |
Entity Central Index Key | 1,404,655 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 38,409,346 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 154,031 | $ 87,680 |
Short-term investments | 375,379 | 416,663 |
Accounts receivable — net of allowance for doubtful accounts of $577 and $617 at March 31, 2018 and December 31, 2017, respectively | 54,208 | 60,676 |
Deferred commission expense | 12,721 | 13,343 |
Restricted cash | 5,968 | 4,757 |
Prepaid hosting costs | 1,648 | 4,964 |
Prepaid expenses and other current assets | 15,588 | 14,418 |
Total current assets | 619,543 | 602,501 |
Long-term investments | 28,100 | 31,394 |
Property and equipment, net | 47,734 | 43,294 |
Capitalized software development costs, net | 9,885 | 8,760 |
Deferred commission expense, net of current portion | 11,228 | |
Other assets | 5,273 | 4,964 |
Intangible assets, net | 6,262 | 6,312 |
Goodwill | 14,950 | 14,950 |
Total assets | 742,975 | 712,175 |
Current liabilities: | ||
Accounts payable | 5,194 | 4,657 |
Accrued compensation costs | 14,680 | 16,329 |
Other accrued expenses | 23,996 | 20,430 |
Deferred revenue | 148,500 | 136,880 |
Total current liabilities | 192,370 | 178,296 |
Deferred rent, net of current portion | 19,646 | 18,868 |
Deferred revenue, net of current portion | 2,284 | 2,277 |
Other long-term liabilities | 4,222 | 3,927 |
Convertible senior notes | 303,355 | 298,447 |
Total liabilities | 521,877 | 501,815 |
Commitments and contingencies (Note 10) | ||
Stockholders’ equity: | ||
Common stock | 39 | 38 |
Additional paid-in capital | 516,934 | 496,461 |
Accumulated other comprehensive loss | (138) | (57) |
Accumulated deficit | (295,737) | (286,082) |
Total stockholders’ equity | 221,098 | 210,360 |
Total liabilities and stockholders’ equity | $ 742,975 | $ 712,175 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Statement Of Financial Position [Abstract] | ||
Accounts receivable, net of allowance for doubtful accounts | $ 577 | $ 617 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Revenues: | ||
Subscription | $ 108,602 | $ 77,503 |
Professional services and other | 5,954 | 4,749 |
Total revenue | 114,556 | 82,252 |
Cost of revenues: | ||
Subscription | 15,235 | 11,409 |
Professional services and other | 7,142 | 5,663 |
Total cost of revenues | 22,377 | 17,072 |
Gross profit | 92,179 | 65,180 |
Operating expenses: | ||
Research and development | 26,352 | 13,370 |
Sales and marketing | 59,910 | 46,672 |
General and administrative | 17,241 | 13,138 |
Total operating expenses | 103,503 | 73,180 |
Loss from operations | (11,324) | (8,000) |
Other (expense) income: | ||
Interest income | 1,824 | 303 |
Interest expense | (5,174) | (52) |
Other expense | (283) | (128) |
Total other (expense) income | (3,633) | 123 |
Loss before income tax expense | (14,957) | (7,877) |
Income tax expense | (491) | (198) |
Net loss | $ (15,448) | $ (8,075) |
Net loss per share, basic and diluted | $ (0.41) | $ (0.22) |
Weighted average common shares used in computing basic and diluted net loss per share: | 37,832 | 36,205 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net loss | $ (15,448) | $ (8,075) |
Other comprehensive loss: | ||
Foreign currency translation adjustment | 298 | 121 |
Changes in unrealized loss on investments, net of income taxes of $0 for the three months ended March 31, 2018 and $18 for the three months ended March 31, 2017 | (379) | 35 |
Comprehensive loss | $ (15,529) | $ (7,919) |
Consolidated Statements of Com6
Consolidated Statements of Comprehensive Loss (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Changes in unrealized loss on investments, income taxes | $ 0 | $ 18 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Operating Activities: | ||
Net loss | $ (15,448) | $ (8,075) |
Adjustments to reconcile net loss to net cash and cash equivalents provided by operating activities | ||
Depreciation and amortization | 5,110 | 3,329 |
Stock-based compensation | 16,046 | 9,303 |
Benefit for deferred income taxes | (27) | |
Amortization of debt discount and issuance costs | 4,908 | |
(Accretion) amortization of bond discount premium | (1,164) | 77 |
Noncash rent expense | 794 | 1,667 |
Unrealized currency translation | 36 | (46) |
Changes in assets and liabilities | ||
Accounts receivable | 6,863 | 4,176 |
Prepaid expenses and other assets | 1,880 | 1,061 |
Deferred commission expense | (5,068) | (464) |
Accounts payable | 166 | (1,250) |
Accrued expenses | 1,674 | 922 |
Deferred rent | (48) | (34) |
Deferred revenue | 10,973 | 8,453 |
Net cash and cash equivalents provided by operating activities | 26,722 | 19,092 |
Investing Activities: | ||
Purchases of investments | (210,886) | (16,367) |
Maturities of investments | 256,250 | 15,860 |
Purchases of property and equipment | (6,239) | (5,835) |
Capitalization of software development costs | (2,616) | (1,610) |
Purchases of strategic investments | (250) | |
Net cash and cash equivalents provided by (used in) investing activities | 36,259 | (7,952) |
Financing Activities: | ||
Employee taxes paid related to the net share settlement of stock-based awards | (2,344) | (1,153) |
Proceeds related to the issuance of common stock under stock plans | 6,113 | 4,340 |
Repayments of capital lease obligations | (212) | (240) |
Net cash and cash equivalents provided by financing activities | 3,557 | 2,947 |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 677 | 454 |
Net increase in cash, cash equivalents, and restricted cash | 67,215 | 14,541 |
Cash, cash equivalents and restricted cash, beginning of period | 92,784 | 60,185 |
Cash, cash equivalents and restricted cash, end of period | 159,999 | 74,726 |
Supplemental cash flow disclosure: | ||
Cash paid for interest | 15 | 192 |
Cash paid for income taxes | 45 | 37 |
Non-cash investing and financing activities: | ||
Property and equipment acquired under capital lease | 247 | |
Capital expenditures incurred but not yet paid | 1,382 | $ 1,525 |
Asset retirement obligations | $ 101 |
Organization and Operations
Organization and Operations | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Organization and Operations | 1. Organization and Operations HubSpot, Inc. (the “Company”) provides a cloud-based inbound marketing, sales and customer service platform which features integrated applications to help businesses attract visitors to their websites, convert visitors into leads, close leads into customers and delight customers so they become promoters of those businesses. These integrated applications include social media, search engine optimization, blogging, website content management, marketing automation, email, sales productivity, CRM, analytics, reporting, helpdesk, chat, and knowledge base. The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) applicable to interim periods, under the rules and regulations of the United States Securities and Exchange Commission (“SEC”). In the opinion of management, the Company has prepared the accompanying unaudited consolidated financial statements on a basis substantially consistent with the audited consolidated financial statements of the Company as of and for the year ended December 31, 2017, and these consolidated financial statements include all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of the results of the interim periods presented. All intercompany balances and transactions have been eliminated in consolidation. The results of operations for the interim periods presented are not necessarily indicative of the results to be expected for any subsequent quarter or for the entire year ending December 31, 2018. The year-end balance sheet data was derived from audited financial statements, but this Form 10-Q does not include all disclosures required under GAAP. Certain information and note disclosures normally included in annual financial statements prepared in accordance with GAAP have been omitted under the rules and regulations of the SEC. These interim financial statements should be read in conjunction with the audited consolidated financial statements and related notes contained in the Company’s Annual Report on Form 10-K filed with the SEC on February 13, 2018. There have been no changes in the Company’s significant accounting policies from those that were disclosed in the Company’s Annual Report on Form 10-K that have had a material impact on our consolidated financial statements and related notes, except the adoption of updated guidance related to revenue recognition and costs to obtain a contract with a customer as described within Note 2 of these consolidated financial statements. Recent Accounting Pronouncements Recent accounting standards not included below are not expected to have a material impact on our consolidated financial position and results of operations. In January 2017, the Financial Accounting Standards Board (“FASB”) issued guidance simplifying the accounting for goodwill impairment by removing Step 2 of the goodwill impairment test. Under current guidance, Step 2 of the goodwill impairment test requires entities to calculate the implied fair value of goodwill in the same manner as the amount of goodwill recognized in a business combination by assigning the fair value of a reporting unit to all of the assets and liabilities of the reporting unit. The carrying value in excess of the implied fair value is recognized as goodwill impairment. Under the new standard, goodwill impairment is recognized based on Step 1 of the current guidance, which calculates the carrying value in excess of the reporting unit’s fair value. The new standard is effective beginning in January 2020, with early adoption permitted. The Company does not believe the adoption of this guidance will have a material impact on our consolidated financial statements. In November 2016, the FASB issued guidance related to the presentation of restricted cash within the statement of cash flows. The guidance requires entities to show the changes in cash, cash equivalents, and restricted cash in the statement of cash flows. Entities will no longer present transfers between cash and cash equivalents and restricted cash in the statement of cash flows. The Company adopted the updated guidance as of January 1, 2018. As a result of adopting this guidance cash and cash equivalents provided by (used in) investing activities increased by $864 thousand and net increase in cash, cash equivalents, and restricted cash also increased by $864 thousand for the three months ended March 31, 2018. Cash and cash equivalent provided by (used in) investing activities increased by $4.4 million and net increase in cash, cash equivalents, and restricted cash increased by $4.5 million for the three months ended March 31, 2017 in the consolidated statements of cash flows. In February 2016, the FASB issued guidance that requires lessees to recognize most leases on their balance sheets but record expenses on their income statements in a manner similar to current accounting. For lessors, the guidance modifies the classification criteria and the accounting for sales-type and direct financing leases. The guidance is effective in 2019 with early adoption permitted. The Company is currently evaluating the impact of this guidance on the consolidated financial statements. In January 2016, the FASB issued guidance that requires entities to measure equity instruments at fair value and recognize changes in fair value within the statement of operations. The Company adopted the updated guidance as of January 1, 2018. The guidance provides for electing a measurement alternative or defaulting to the fair value option for equity investments that do not have readily determinable fair values. The Company elected the measurement alternative for its equity investments in privately held companies, which are included in other assets in the accompanying consolidated balance sheets. These investments are measured at cost, less any impairment, plus or minus adjustments resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer, which will be recorded within the statement of operations. The adoption of this guidance did not have a material impact on the consolidated financial statements. In May 2014, the FASB issued updated guidance and disclosure requirements for recognizing revenue. The new revenue recognition standard provides a five-step analysis of transactions to determine when and how revenue is recognized. The core principle is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard also provides guidance on the recognition of costs related to obtaining customer contracts. The Company adopted the updated guidance as of January 1, 2018 using the modified retrospective transition method. See Note 2 of these consolidated financial statements for further details |
Revenues
Revenues | 3 Months Ended |
Mar. 31, 2018 | |
Revenue From Contract With Customer [Abstract] | |
Revenues | 2. Revenues Adoption of Updated Revenue Guidance On January 1, 2018, the Company adopted new revenue guidance using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018. Results for reporting periods beginning after December 31, 2017 are presented under the new guidance, while prior period amounts are not adjusted and continue to be reported in accordance with historic revenue guidance. The Company applied the new standard using practical expedients where: • the measurement of the transaction price excludes all taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction and collected by the Company from a customer; • the new revenue guidance has been applied to portfolios of contracts with similar characteristics; • the modified retrospective approach has been applied only to contracts that are not completed contracts at the date of initial adoption; and • the value of unsatisfied performance obligations for contracts with an original expected length of one year or less has not been disclosed. The impact of applying the new guidance in 2018 vs the prior guidance resulted in a change to the period over which sales commissions are amortized to incorporate an estimated customer life and the amortization period over which internally developed new features and increased functionality for our software platform is recorded, in addition to the initial contract period. This resulted in a longer amortization period for deferred commission expense, which reduces expense compared to the application of the prior guidance. There was also a change to the scope of sales commissions that are capitalized based on the definition of incremental costs of obtaining a contract. This increased the amount of commissions cost that was capitalized compared to the application of the prior guidance. In addition, there was a change in the timing of revenue recognition for certain sales contracts where free or discounted services are bundled with subscription services due to the removal of the limitation on recording contingent revenue that existed in the prior guidance. Removing the limitation of recording contingent revenue resulted in an acceleration of revenue recognition on these contracts compared to the application of the prior guidance. The Company recorded a net increase to opening retained earnings of $5.8 million as of January 1, 2018 due to the cumulative impact of adopting the new revenue guidance, with the impact primarily related to the recognition of costs associated with obtaining customer contracts. The resulting impact to the consolidated statements of operations and comprehensive loss of applying the new guidance in 2018 vs the prior guidance was a decrease to subscription revenue of $170 thousand, an increase to professional services and other revenue of $140 thousand, a decrease to total revenues of $30 thousand, and a decrease to selling and marketing expense and total operating expenses of $3.6 million for the three months ended March 31, 2018. The resulting impact to loss from operations, loss before income tax (expense) benefit, net loss and comprehensive loss was $3.5 million. The resulting impact on basic earnings per share was $0.09. The resulting impact to the consolidated balance sheet of applying the new guidance in 2018 vs the prior guidance was a decrease to short-term deferred commissions and total current assets of $2.2 million, an increase to long-term deferred commissions of $11.2 million, an increase in total assets of $9.0 million, a decrease to short-term deferred revenue, total current liabilities, and total liabilities of $300 thousand, a decrease to accumulated deficit and increase to total stockholders’ equity of $9.3 million, and an increase to total liabilities and stockholders’ equity of $9.0 million. There was no impact to total cash flow from operations of applying the new guidance in 2018 vs the prior guidance because the decrease in net loss of $3.5 million, increase in the change in deferred commission expense of $3.6 million and decrease in the change in deferred revenue of $30 thousand net to $0 within cash flows from operations. Revenue Recognition The Company generates revenue from arrangements with multiple performance obligations, which typically include subscriptions to its online software products and professional services which include on-boarding and training services. The Company’s customers do not have the right to take possession of the online software products. The Company recognizes revenue from contracts with customers using a five-step model, which is described below: • Identify the customer contract; • Identify performance obligations that are distinct; • Determine the transaction price; • Allocate the transaction price to the distinct performance obligations; and • Recognize revenue as the performance obligations are satisfied. Identify the customer contract A customer contract is generally identified when the Company and a customer have executed an arrangement that calls for the Company to grant access to its online software products and provide professional services in exchange for consideration from the customer. Identify performance obligations that are distinct A performance obligation is a promise to provide a distinct good or service or a series of distinct goods or services. A good or service that is promised to a customer is distinct if the customer can benefit from the good or service either on its own or together with other resources that are readily available to the customer, and a company’s promise to transfer the good or service to the customer is separately identifiable from other promises in the contract. The Company has determined that subscriptions for its online software products are distinct because, once a customer has access to the online software product that it purchased, the online software product is fully functional and does not require any additional development, modification, or customization. Professional services sold are distinct because the customer benefits from the on-boarding and training to make better use of the online software products it purchased. Determine the transaction price The transaction price is the amount of consideration to which the Company expects to be entitled in exchange for transferring goods or services to a customer, excluding sales taxes that are collected on behalf of government agencies. The Company estimates any variable consideration to which it will be entitled at contract inception, and reassesses at each reporting date, when determining the transaction price. The Company does not include variable consideration to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will occur when any uncertainty associated with the variable consideration is resolved. Allocate the transaction price to the distinct performance obligations The transaction price is allocated to each performance obligation based on the relative standalone selling prices (“SSP”) of the goods or services being provided to the customer. The Company determines the SSP of its goods and services based upon the average sales prices for each type of online software product and professional services sold. In instances where there are not sufficient data points, or the selling prices for a particular online software product or professional service are disparate, the Company estimates the SSP using other observable inputs, such as similar products or services. Recognize revenue as the performance obligations are satisfied Revenues are recognized when or as control of the promised goods or services is transferred to customers. Revenue from Disaggregation of Revenue The Company provides disaggregation of revenue based on geographic region within the notes (Note 13) and based on the subscription vs professional services and other classification on the consolidated statements of operations as it believes these best depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. Deferred Revenue and Deferred Commission Expense Amounts that have been invoiced are recorded in accounts receivable and deferred revenue or revenue, depending on whether the revenue recognition criteria have been met. Deferred revenue represents amounts billed for which revenue has not yet been recognized. Deferred revenue that will be recognized during the succeeding 12-month period is recorded as current deferred revenue, and the remaining portion is recorded as long-term deferred revenue. Deferred revenue during the three months ended March 31, 2018 increased by $11.6 million resulting from $126.2 million of additional invoicing and was offset by revenue recognized of $114.6 million during the same period, of which $71.6 million was included in deferred revenue at the beginning of the period. As of March 31, 2018, approximately $74.3 million of revenue is expected to be recognized from remaining performance obligations for contracts with original performance obligations that exceed one year. The Company expects to recognize revenue on approximately 90% of these remaining performance obligations over the next 24 months, with the balance recognized thereafter. The incremental direct costs of obtaining a contract, which primarily consist of sales commissions paid for new subscription contracts, are deferred and amortized on a straight-line basis over a period of approximately two to three years. The two to three-year period has been determined by taking into consideration the type of product sold, the commitment term of the customer contract, the nature of the Company’s technology development life-cycle, and an estimated customer relationship period. Sales commissions for upgrade contracts are deferred and amortized on a straight-line basis over the remaining estimated customer relationship period of the related customer. Deferred commission expense that will be recorded as expense during the succeeding 12-month period is recorded as current deferred commission expense, and the remaining portion is recorded as long-term deferred commission expense. Partner Commissions The Company pays its partners a commission based on the online software product sales price for sales to end-customers. The classification of the commission paid on the Company’s consolidated statements of operations depends on who purchases the online software product. In instances where the end-customer purchases the online software product from the Company, the Company is the principal and it records the commission paid to the partner as sales and marketing expense. When the partner purchases the online software product directly from the Company, the Company is the agent and it nets the consideration paid to the partner against the associated revenue it recognizes, as in these instances the Company’s customer is the partner and the Company’s remaining obligation is to the partner. The Company does not believe that it receives a tangible benefit from the commission payment to the partner. |
Net Loss per Share
Net Loss per Share | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Net Loss per Share | 3. Net Loss per Share Basic net loss per share is computed by dividing net loss by the weighted average number of common shares outstanding for the period. Diluted net loss per share is computed by giving effect to all potential dilutive common stock equivalents outstanding for the period. For purposes of this calculation, options to purchase common stock, restricted stock units (“RSUs”), Employee Stock Purchase Plan (“ESPP”), and the Conversion Option of the 2022 Notes are considered to be potential common stock equivalents. A reconciliation of the denominator used in the calculation of basic and diluted net loss per share is as follows: Three Months Ended March 31, 2018 2017 Net loss $ (15,448 ) $ (8,075 ) Weighted-average common shares outstanding — basic 37,832 36,205 Dilutive effect of share equivalents resulting from stock options, RSUs, ESPP and the Conversion Option of the 2022 Notes — — Weighted-average common shares, outstanding — diluted 37,832 36,205 Net loss per share, basic and diluted $ (0.41 ) $ (0.22 ) Additionally, since the Company incurred net losses for each of the periods presented, diluted net loss per share is the same as basic net loss per share. The Company’s outstanding stock options, RSUs, ESPP, and Conversion Option of the 2022 Notes were not included in the calculation of diluted net loss per share as the effect would be anti-dilutive. The following table contains all potentially dilutive common stock equivalents. As of March 31, 2018 2017 (in thousands) Options to purchase common shares 2,142 2,561 RSUs 2,284 2,013 Conversation option of the 2022 Notes 383 — ESPP 8 3 The Company expects to settle the principal amount of the 2022 Notes in cash, and therefore, the Company uses the treasury stock method for calculating any potential dilutive effect of the Conversion Option on diluted net income per share, if applicable. The Conversion Option will have a dilutive impact on net income per share of common stock when the average market price of the Company’s common stock for a given period exceeds the conversion price of the 2022 Notes of $94.77 per share. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | 4. Fair Value of Financial Instruments The Company measures certain financial assets at fair value. Fair value is determined based upon the exit price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants, as determined by either the principal market or the most advantageous market. Inputs used in the valuation techniques to derive fair values are classified based on a three-level hierarchy, as follows: • Level 1 — Quoted prices in active markets for identical assets or liabilities. • Level 2 — Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which all significant inputs are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3 — Unobservable inputs to the valuation methodology that are significant to the measurement of fair value of assets or liabilities. The following table details the fair value measurements within the fair value hierarchy of the Company’s financial assets and liabilities at March 31, 2018 and December 31, 2017. March 31, 2018 Level 1 Level 2 Level 3 Total (in thousands) Cash equivalents and investments: Money market funds $ 4,727 $ — $ — $ 4,727 Commercial paper — 8,875 — 8,875 Corporate bonds — 83,159 — 83,159 U.S. government agency obligations — 2,991 — 2,991 U.S. Treasury securities — 362,370 — 362,370 Restricted cash: Certificates of deposit — 5,968 — 5,968 Total $ 4,727 $ 463,363 $ — $ 468,090 December 31, 2017 Level 1 Level 2 Level 3 Total (in thousands) Cash equivalents and investments: Money market funds $ 12,845 $ — $ — $ 12,845 Commercial paper — 5,867 — 5,867 Corporate bonds — 81,668 — 81,668 U.S. government agency obligations — 3,987 — 3,987 U.S. Treasury securities — 356,535 — 356,535 Restricted cash: Certificates of deposit — 5,105 — 5,105 Total $ 12,845 $ 453,162 $ — $ 466,007 The Company considers all highly liquid investments purchased with a remaining maturity of three months or less to be cash equivalents. The fair value of the Company’s investments in certain money market funds is their face value and such instruments are classified as Level 1 and are included in cash and cash equivalents on the consolidated balance sheets. At March 31, 2018 and December 31, 2017, our Level 2 securities were priced by pricing vendors. These pricing vendors utilize the most recent observable market information in pricing these securities or, if specific prices are not available for these securities, use other observable inputs like market transactions involving identical or comparable securities. As of March 31, 2018, the fair value of the 2022 Notes was $516.4 million. The fair value was determined based on the quoted price of the 2022 Notes in an inactive market on the last trading day of the reporting period and has been classified as Level 2 within the fair value hierarchy. For certain other financial instruments, including accounts receivable, accounts payable, capital leases and other current liabilities, the carrying amounts approximate their fair value due to the relatively short maturity of these balances. Strategic investments consist of non-controlling equity investments in privately held companies. The Company elected the measurement alternative for these investments without readily determinable fair values and for which the Company does not have the ability to exercise significant influence. These investments are accounted for under the cost method of accounting. Under the cost method of accounting, the non-marketable equity securities are carried at cost less any impairment, plus or minus adjustments resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer, which is recorded within the statement of operations. The Company holds $3.7 million of strategic investments without readily determinable fair values at March 31, 2018 and $3.5 million of strategic investments without readily determinable fair values at December 31, 2017. These investments are included in other assets on the consolidated balance sheets. There have been no adjustments to the carrying value of strategic investments resulting from impairments or observable price changes. The following tables summarize the composition of our short- and long-term investments at March 31, 2018 and December 31, 2017. March 31, 2018 Amortized Cost Unrealized Gains Unrealized Losses Aggregate Fair Value (in thousands) Commercial paper $ 4,891 $ — $ (6 ) $ 4,885 Corporate bonds 83,648 — (489 ) 83,159 U.S. government agency obligations 3,000 — (9 ) 2,991 U.S. Treasury securities 312,752 — (308 ) 312,444 Total $ 404,291 $ — $ (812 ) $ 403,479 December 31, 2017 Amortized Cost Unrealized Gains Unrealized Losses Aggregate Fair Value (in thousands) Commercial paper $ 5,874 $ — $ (7 ) $ 5,867 Corporate bonds 81,947 — (279 ) 81,668 U.S. government agency obligations 4,000 — (13 ) 3,987 U.S. Treasury securities 356,671 8 (144 ) 356,535 Total $ 448,492 $ 8 $ (443 ) $ 448,057 For all of our securities for which the amortized cost basis was greater than the fair value at March 31, 2018, the Company has concluded that there is no plan to sell the security nor is it more likely than not that the Company would be required to sell the security before its anticipated recovery. In making the determination as to whether the unrealized loss is other-than-temporary, the Company considered the length of time and extent the investment has been in an unrealized loss position, the financial condition and near-term prospects of the issuers, the issuers’ credit rating and the time to maturity. Contractual Maturities The contractual maturities of short-term and long-term investments held at March 31, 2018 and December 31, 2017 are as follows: March 31, 2018 December 31, 2017 Amortized Cost Basis Aggregate Fair Value Amortized Cost Basis Aggregate Fair Value (in thousands) (in thousands) Due within one year $ 375,946 $ 375,379 $ 416,932 $ 416,663 Due after 1 year through 2 years 28,345 28,100 31,560 31,394 Total $ 404,291 $ 403,479 $ 448,492 $ 448,057 |
Restricted cash
Restricted cash | 3 Months Ended |
Mar. 31, 2018 | |
Cash And Cash Equivalents [Abstract] | |
Restricted Cash | 5. Restricted cash The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the statement of cash flows for the three months ended March 31, 2018 and 2017. March 31, 2018 March 31, 2017 December 31, 2017 (in thousands) Cash and cash equivalents $ 154,031 $ 69,786 $ 87,680 Restricted cash 5,968 4,940 4,757 Restricted cash, included in other assets — — 347 Total cash, cash equivalents, and restricted cash $ 159,999 $ 74,726 $ 92,784 Restricted cash is comprised of certificates of deposit related to landlord guarantees for our leased facilities. These restricted cash balances have been excluded from our cash and cash equivalents balance on our consolidated balance sheets. |
Property and Equipment, Net
Property and Equipment, Net | 3 Months Ended |
Mar. 31, 2018 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment, Net | 6. Property and Equipment, Net Property and equipment, net consists of the following: March 31, 2018 December 31, 2017 (in thousands) Computer equipment and purchased software $ 5,457 $ 4,571 Employee computer equipment 6,015 4,260 Furniture and fixtures 11,330 11,083 Office equipment 2,546 2,620 Leasehold improvements 38,097 33,446 Equipment under capital lease 3,450 3,450 Internal-use software 3,449 2,892 Construction in progress 2,771 3,198 Total property and equipment 73,115 65,520 Less accumulated depreciation and amortization (25,381 ) (22,226 ) Property and equipment, net $ 47,734 $ 43,294 Depreciation and amortization expense on property and equipment was $3.1 million for the three months ended March 31, 2018 and $1.9 million for the three months ended March 31, 2017. |
Capitalized Software Developmen
Capitalized Software Development Costs | 3 Months Ended |
Mar. 31, 2018 | |
Research And Development [Abstract] | |
Capitalized Software Development Costs | 7. Capitalized Software Development Costs Capitalized software development costs, exclusive of those recorded within property and equipment, consisted of the following: March 31, 2018 December 31, 2017 (in thousands) Gross capitalized software development costs $ 36,305 $ 33,360 Accumulated amortization (26,420 ) (24,600 ) Capitalized software development costs, net $ 9,885 $ 8,760 Capitalized software development costs are amortized on a straight-line basis over their estimated useful life of two to three years. The following table summarizes software development costs capitalized, stock-based compensation included in capitalized software development costs, and amortization of capitalized software development costs. Three Months Ended March 31, 2018 2017 (in thousands) Software development costs capitalized $ 2,945 $ 1,902 Stock-based compensation included in capitalized software development costs $ 550 $ 338 Amortization of capitalized software development costs $ 1,975 $ 1,369 |
Intangible Assets
Intangible Assets | 3 Months Ended |
Mar. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets | 8. Intangible Assets Intangible assets as of March 31, 2018 and December 31, 2017 consist of the following: Weighted Average Remaining Useful Life March 31, 2018 December 31, 2017 (in thousands) Acquired technology 16 Months $ 7,252 $ 7,252 Acquired intellectual property — 80 80 Accumulated amortization (1,070 ) (1,020 ) Total $ 6,262 $ 6,312 The estimated useful life of acquired technology and intellectual property is two to three years. The Company evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. Amortization expense related to intangible assets was $50 thousand in three months ended March 31, 2018, and $16 thousand in three months ended March 31, 2017. Amortization expense of acquired technology is included in cost of subscription revenue in the consolidated statements of operations. Amortization expense of acquired intellectual property is included in sales and marketing expense in the consolidated statements of operations. Estimated future amortization expense for intangible assets, currently being amortized, as of March 31, 2018 is as follows: Years ended December 31, Amortization Expense (in thousands) 2018 $ 150 2019 112 Total $ 262 The estimated amortization does not include the amortization of the $6.0 million of acquired technology from the acquisition of Motion AI, Inc. as the intangible asset has not been placed into service as of March 31, 2018. The Company expects that the acquired technology will be placed into service during 2018 and will be amortized through 2020. |
0.25% Convertible Senior Notes,
0.25% Convertible Senior Notes, Convertible Note Hedge and Warrant | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
0.25% Convertible Senior Notes, Convertible Note Hedge and Warrant | 9. 0.25% Convertible Senior Notes, Convertible Note Hedge and Warrant In May 2017, the Company issued $350 million aggregate principal amount of 0.25% convertible senior notes due June 1, 2022 in a private offering and an additional $50 million aggregate principal amount of such notes pursuant to the exercise in full of the over-allotment options of the initial purchasers (the “2022 Notes”). The net carrying amount of the liability component of the 2022 Notes is as follows: As of March 31, 2018 As of December 31, 2017 (in thousands) Principal $ 400,000 $ 400,000 Unamortized debt discount (89,931 ) (94,498 ) Unamortized issuance costs (6,714 ) (7,055 ) Net carrying amount $ 303,355 $ 298,447 Interest expense related to the 2022 Notes is as follows: Three Months Ended March 31, 2018 2017 (in thousands) Contractual interest expense $ 250 $ — Amortization of debt discount 4,567 — Amortization of issuance costs 341 — Total interest expense $ 5,158 $ — |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 10. Commitments and Contingencies Contractual Obligations The Company leases its office facilities under non-cancelable operating leases that expire at various dates through October 2027. Rent expense for non-cancellable operating leases with free rental periods or scheduled rent increases is recognized on a straight-line basis over the terms of the leases. Future minimum payments under all operating lease agreements as of March 31, 2018 are as follows: Operating (in thousands) 2018 $ 15,754 2019 22,179 2020 23,579 2021 26,395 2022 26,748 Thereafter 135,558 Total $ 250,213 There were no material changes in our vendor commitments under non-cancelable arrangements, as disclosed in the Company’s audited consolidated financial statements for the year ended December 31, 2017 and related notes thereto contained in the Company’s Annual Report on Form 10-K. Legal Contingencies From time to time, the Company may become a party to litigation and subject to claims incident to the ordinary course of business, including intellectual property claims, labor and employment claims, and threatened claims, breach of contract claims, tax, and other matters. The Company currently has no material pending litigation. |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Loss | 11. Changes in Accumulated Other Comprehensive Loss The following table summarizes the changes in accumulated other comprehensive loss, which is reported as a component of stockholders’ equity, for the three months ended March 31, 2018. Cumulative Translation Adjustment Unrealized Loss Investments Total (in thousands) Beginning balance at January 1, 2018 $ 379 $ (436 ) $ (57 ) Other comprehensive gain (loss) before reclassifications 298 (379 ) (81 ) Amounts reclassified from accumulated other comprehensive income — — — Ending balance at March 31, 2018 $ 677 $ (815 ) $ (138 ) |
Stock-Based Compensation Expens
Stock-Based Compensation Expense | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation Expense | 12. Stock-Based Compensation Expense The following two tables show stock-based compensation expense by award type and where the stock-based compensation expense is recorded in the Company’s consolidated statements of operations: Three Months Ended March 31, 2018 2017 (in thousands) Options $ 1,334 $ 1,247 RSUs 14,241 7,790 Employee stock purchase plan 471 266 Total stock-based compensation expense $ 16,046 $ 9,303 Effect of stock-based compensation expense on income by line item: Three Months Ended March 31, 2018 2017 (in thousands) Cost of revenue, subscription $ 277 $ 115 Cost of revenue, professional services and other 690 449 Research and development 4,764 2,442 Sales and marketing 6,492 3,770 General and administrative 3,823 2,527 Total stock-based compensation expense $ 16,046 $ 9,303 Capitalized software development costs excluded from stock-based compensation expense is $550 thousand for the three months ended March 31, 2018 and $338 thousand for the three months ended March 31, 2017. |
Segment Information and Geograp
Segment Information and Geographic Data | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Information and Geographic Data | 13. Segment Information and Geographic Data The Company operates as one operating segment. Operating segments are defined as components of an enterprise for which separate financial information is regularly evaluated by the chief operating decision makers (“CODMs”), which are the Company’s chief executive officer and chief operating officer, in deciding how to allocate resources and assess performance. The Company’s CODMs evaluate the Company’s financial information and resources and assess the performance of these resources on a consolidated basis. Since the Company operates in one operating segment, all required financial segment information can be found in the consolidated financial statements. Revenue and long-lived assets by geographic region, based on the physical location of the operations recording the sale or the asset, are as follows: Revenues by geographical region: Three Months Ended March 31, 2018 2017 Americas $ 82,158 $ 64,352 Europe 25,209 13,844 Asia Pacific 7,189 4,056 Total $ 114,556 $ 82,252 Percentage of revenues generated outside of the Americas 28 % 22 % Revenue derived from customers outside the United States (international) was approximately 36% of total revenue in the three months ended March 31, 2018 and 30% of total revenue in the three months ended March 31, 2017. Total long-lived assets by geographical region: As of March 31, 2018 As of December 31, 2017 Americas $ 30,783 $ 29,764 Europe 14,802 11,257 Asia Pacific 2,149 2,273 Total long-lived assets $ 47,734 $ 43,294 Percentage of long-lived assets held outside of the Americas 36 % 31 % |
Organization and Operations (Po
Organization and Operations (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recent accounting standards not included below are not expected to have a material impact on our consolidated financial position and results of operations. In January 2017, the Financial Accounting Standards Board (“FASB”) issued guidance simplifying the accounting for goodwill impairment by removing Step 2 of the goodwill impairment test. Under current guidance, Step 2 of the goodwill impairment test requires entities to calculate the implied fair value of goodwill in the same manner as the amount of goodwill recognized in a business combination by assigning the fair value of a reporting unit to all of the assets and liabilities of the reporting unit. The carrying value in excess of the implied fair value is recognized as goodwill impairment. Under the new standard, goodwill impairment is recognized based on Step 1 of the current guidance, which calculates the carrying value in excess of the reporting unit’s fair value. The new standard is effective beginning in January 2020, with early adoption permitted. The Company does not believe the adoption of this guidance will have a material impact on our consolidated financial statements. In November 2016, the FASB issued guidance related to the presentation of restricted cash within the statement of cash flows. The guidance requires entities to show the changes in cash, cash equivalents, and restricted cash in the statement of cash flows. Entities will no longer present transfers between cash and cash equivalents and restricted cash in the statement of cash flows. The Company adopted the updated guidance as of January 1, 2018. As a result of adopting this guidance cash and cash equivalents provided by (used in) investing activities increased by $864 thousand and net increase in cash, cash equivalents, and restricted cash also increased by $864 thousand for the three months ended March 31, 2018. Cash and cash equivalent provided by (used in) investing activities increased by $4.4 million and net increase in cash, cash equivalents, and restricted cash increased by $4.5 million for the three months ended March 31, 2017 in the consolidated statements of cash flows. In February 2016, the FASB issued guidance that requires lessees to recognize most leases on their balance sheets but record expenses on their income statements in a manner similar to current accounting. For lessors, the guidance modifies the classification criteria and the accounting for sales-type and direct financing leases. The guidance is effective in 2019 with early adoption permitted. The Company is currently evaluating the impact of this guidance on the consolidated financial statements. In January 2016, the FASB issued guidance that requires entities to measure equity instruments at fair value and recognize changes in fair value within the statement of operations. The Company adopted the updated guidance as of January 1, 2018. The guidance provides for electing a measurement alternative or defaulting to the fair value option for equity investments that do not have readily determinable fair values. The Company elected the measurement alternative for its equity investments in privately held companies, which are included in other assets in the accompanying consolidated balance sheets. These investments are measured at cost, less any impairment, plus or minus adjustments resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer, which will be recorded within the statement of operations. The adoption of this guidance did not have a material impact on the consolidated financial statements. In May 2014, the FASB issued updated guidance and disclosure requirements for recognizing revenue. The new revenue recognition standard provides a five-step analysis of transactions to determine when and how revenue is recognized. The core principle is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard also provides guidance on the recognition of costs related to obtaining customer contracts. The Company adopted the updated guidance as of January 1, 2018 using the modified retrospective transition method. See Note 2 of these consolidated financial statements for further details |
Revenue | Revenues Adoption of Updated Revenue Guidance On January 1, 2018, the Company adopted new revenue guidance using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018. Results for reporting periods beginning after December 31, 2017 are presented under the new guidance, while prior period amounts are not adjusted and continue to be reported in accordance with historic revenue guidance. The Company applied the new standard using practical expedients where: • the measurement of the transaction price excludes all taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction and collected by the Company from a customer; • the new revenue guidance has been applied to portfolios of contracts with similar characteristics; • the modified retrospective approach has been applied only to contracts that are not completed contracts at the date of initial adoption; and • the value of unsatisfied performance obligations for contracts with an original expected length of one year or less has not been disclosed. The impact of applying the new guidance in 2018 vs the prior guidance resulted in a change to the period over which sales commissions are amortized to incorporate an estimated customer life and the amortization period over which internally developed new features and increased functionality for our software platform is recorded, in addition to the initial contract period. This resulted in a longer amortization period for deferred commission expense, which reduces expense compared to the application of the prior guidance. There was also a change to the scope of sales commissions that are capitalized based on the definition of incremental costs of obtaining a contract. This increased the amount of commissions cost that was capitalized compared to the application of the prior guidance. In addition, there was a change in the timing of revenue recognition for certain sales contracts where free or discounted services are bundled with subscription services due to the removal of the limitation on recording contingent revenue that existed in the prior guidance. Removing the limitation of recording contingent revenue resulted in an acceleration of revenue recognition on these contracts compared to the application of the prior guidance. The Company recorded a net increase to opening retained earnings of $5.8 million as of January 1, 2018 due to the cumulative impact of adopting the new revenue guidance, with the impact primarily related to the recognition of costs associated with obtaining customer contracts. The resulting impact to the consolidated statements of operations and comprehensive loss of applying the new guidance in 2018 vs the prior guidance was a decrease to subscription revenue of $170 thousand, an increase to professional services and other revenue of $140 thousand, a decrease to total revenues of $30 thousand, and a decrease to selling and marketing expense and total operating expenses of $3.6 million for the three months ended March 31, 2018. The resulting impact to loss from operations, loss before income tax (expense) benefit, net loss and comprehensive loss was $3.5 million. The resulting impact on basic earnings per share was $0.09. The resulting impact to the consolidated balance sheet of applying the new guidance in 2018 vs the prior guidance was a decrease to short-term deferred commissions and total current assets of $2.2 million, an increase to long-term deferred commissions of $11.2 million, an increase in total assets of $9.0 million, a decrease to short-term deferred revenue, total current liabilities, and total liabilities of $300 thousand, a decrease to accumulated deficit and increase to total stockholders’ equity of $9.3 million, and an increase to total liabilities and stockholders’ equity of $9.0 million. There was no impact to total cash flow from operations of applying the new guidance in 2018 vs the prior guidance because the decrease in net loss of $3.5 million, increase in the change in deferred commission expense of $3.6 million and decrease in the change in deferred revenue of $30 thousand net to $0 within cash flows from operations. Revenue Recognition The Company generates revenue from arrangements with multiple performance obligations, which typically include subscriptions to its online software products and professional services which include on-boarding and training services. The Company’s customers do not have the right to take possession of the online software products. The Company recognizes revenue from contracts with customers using a five-step model, which is described below: • Identify the customer contract; • Identify performance obligations that are distinct; • Determine the transaction price; • Allocate the transaction price to the distinct performance obligations; and • Recognize revenue as the performance obligations are satisfied. Identify the customer contract A customer contract is generally identified when the Company and a customer have executed an arrangement that calls for the Company to grant access to its online software products and provide professional services in exchange for consideration from the customer. Identify performance obligations that are distinct A performance obligation is a promise to provide a distinct good or service or a series of distinct goods or services. A good or service that is promised to a customer is distinct if the customer can benefit from the good or service either on its own or together with other resources that are readily available to the customer, and a company’s promise to transfer the good or service to the customer is separately identifiable from other promises in the contract. The Company has determined that subscriptions for its online software products are distinct because, once a customer has access to the online software product that it purchased, the online software product is fully functional and does not require any additional development, modification, or customization. Professional services sold are distinct because the customer benefits from the on-boarding and training to make better use of the online software products it purchased. Determine the transaction price The transaction price is the amount of consideration to which the Company expects to be entitled in exchange for transferring goods or services to a customer, excluding sales taxes that are collected on behalf of government agencies. The Company estimates any variable consideration to which it will be entitled at contract inception, and reassesses at each reporting date, when determining the transaction price. The Company does not include variable consideration to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will occur when any uncertainty associated with the variable consideration is resolved. Allocate the transaction price to the distinct performance obligations The transaction price is allocated to each performance obligation based on the relative standalone selling prices (“SSP”) of the goods or services being provided to the customer. The Company determines the SSP of its goods and services based upon the average sales prices for each type of online software product and professional services sold. In instances where there are not sufficient data points, or the selling prices for a particular online software product or professional service are disparate, the Company estimates the SSP using other observable inputs, such as similar products or services. Recognize revenue as the performance obligations are satisfied Revenues are recognized when or as control of the promised goods or services is transferred to customers. Revenue from Disaggregation of Revenue The Company provides disaggregation of revenue based on geographic region within the notes (Note 13) and based on the subscription vs professional services and other classification on the consolidated statements of operations as it believes these best depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. Deferred Revenue and Deferred Commission Expense Amounts that have been invoiced are recorded in accounts receivable and deferred revenue or revenue, depending on whether the revenue recognition criteria have been met. Deferred revenue represents amounts billed for which revenue has not yet been recognized. Deferred revenue that will be recognized during the succeeding 12-month period is recorded as current deferred revenue, and the remaining portion is recorded as long-term deferred revenue. Deferred revenue during the three months ended March 31, 2018 increased by $11.6 million resulting from $126.2 million of additional invoicing and was offset by revenue recognized of $114.6 million during the same period, of which $71.6 million was included in deferred revenue at the beginning of the period. As of March 31, 2018, approximately $74.3 million of revenue is expected to be recognized from remaining performance obligations for contracts with original performance obligations that exceed one year. The Company expects to recognize revenue on approximately 90% of these remaining performance obligations over the next 24 months, with the balance recognized thereafter. The incremental direct costs of obtaining a contract, which primarily consist of sales commissions paid for new subscription contracts, are deferred and amortized on a straight-line basis over a period of approximately two to three years. The two to three-year period has been determined by taking into consideration the type of product sold, the commitment term of the customer contract, the nature of the Company’s technology development life-cycle, and an estimated customer relationship period. Sales commissions for upgrade contracts are deferred and amortized on a straight-line basis over the remaining estimated customer relationship period of the related customer. Deferred commission expense that will be recorded as expense during the succeeding 12-month period is recorded as current deferred commission expense, and the remaining portion is recorded as long-term deferred commission expense. Partner Commissions The Company pays its partners a commission based on the online software product sales price for sales to end-customers. The classification of the commission paid on the Company’s consolidated statements of operations depends on who purchases the online software product. In instances where the end-customer purchases the online software product from the Company, the Company is the principal and it records the commission paid to the partner as sales and marketing expense. When the partner purchases the online software product directly from the Company, the Company is the agent and it nets the consideration paid to the partner against the associated revenue it recognizes, as in these instances the Company’s customer is the partner and the Company’s remaining obligation is to the partner. The Company does not believe that it receives a tangible benefit from the commission payment to the partner. |
Net Loss per Share (Tables)
Net Loss per Share (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Summary of Reconciliation of Denominator Used in Calculation of Basic and Diluted Net Loss Per Share | A reconciliation of the denominator used in the calculation of basic and diluted net loss per share is as follows: Three Months Ended March 31, 2018 2017 Net loss $ (15,448 ) $ (8,075 ) Weighted-average common shares outstanding — basic 37,832 36,205 Dilutive effect of share equivalents resulting from stock options, RSUs, ESPP and the Conversion Option of the 2022 Notes — — Weighted-average common shares, outstanding — diluted 37,832 36,205 Net loss per share, basic and diluted $ (0.41 ) $ (0.22 ) |
Schedule of Potentially Dilutive Common Stock Equivalents | The following table contains all potentially dilutive common stock equivalents. As of March 31, 2018 2017 (in thousands) Options to purchase common shares 2,142 2,561 RSUs 2,284 2,013 Conversation option of the 2022 Notes 383 — ESPP 8 3 |
Fair Value of Financial Instr23
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Measurements of Financial Assets and Liabilities | The following table details the fair value measurements within the fair value hierarchy of the Company’s financial assets and liabilities at March 31, 2018 and December 31, 2017. March 31, 2018 Level 1 Level 2 Level 3 Total (in thousands) Cash equivalents and investments: Money market funds $ 4,727 $ — $ — $ 4,727 Commercial paper — 8,875 — 8,875 Corporate bonds — 83,159 — 83,159 U.S. government agency obligations — 2,991 — 2,991 U.S. Treasury securities — 362,370 — 362,370 Restricted cash: Certificates of deposit — 5,968 — 5,968 Total $ 4,727 $ 463,363 $ — $ 468,090 December 31, 2017 Level 1 Level 2 Level 3 Total (in thousands) Cash equivalents and investments: Money market funds $ 12,845 $ — $ — $ 12,845 Commercial paper — 5,867 — 5,867 Corporate bonds — 81,668 — 81,668 U.S. government agency obligations — 3,987 — 3,987 U.S. Treasury securities — 356,535 — 356,535 Restricted cash: Certificates of deposit — 5,105 — 5,105 Total $ 12,845 $ 453,162 $ — $ 466,007 |
Summary of Composition of Short and Long Term Investments | The following tables summarize the composition of our short- and long-term investments at March 31, 2018 and December 31, 2017. March 31, 2018 Amortized Cost Unrealized Gains Unrealized Losses Aggregate Fair Value (in thousands) Commercial paper $ 4,891 $ — $ (6 ) $ 4,885 Corporate bonds 83,648 — (489 ) 83,159 U.S. government agency obligations 3,000 — (9 ) 2,991 U.S. Treasury securities 312,752 — (308 ) 312,444 Total $ 404,291 $ — $ (812 ) $ 403,479 December 31, 2017 Amortized Cost Unrealized Gains Unrealized Losses Aggregate Fair Value (in thousands) Commercial paper $ 5,874 $ — $ (7 ) $ 5,867 Corporate bonds 81,947 — (279 ) 81,668 U.S. government agency obligations 4,000 — (13 ) 3,987 U.S. Treasury securities 356,671 8 (144 ) 356,535 Total $ 448,492 $ 8 $ (443 ) $ 448,057 |
Summary of Contractual Maturities of Short and Long Term Investments | The contractual maturities of short-term and long-term investments held at March 31, 2018 and December 31, 2017 are as follows: March 31, 2018 December 31, 2017 Amortized Cost Basis Aggregate Fair Value Amortized Cost Basis Aggregate Fair Value (in thousands) (in thousands) Due within one year $ 375,946 $ 375,379 $ 416,932 $ 416,663 Due after 1 year through 2 years 28,345 28,100 31,560 31,394 Total $ 404,291 $ 403,479 $ 448,492 $ 448,057 |
Restricted cash (Tables)
Restricted cash (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Cash And Cash Equivalents [Abstract] | |
Summary of Reconciliation of Cash, Cash Equivalents and Restricted Cash | The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the statement of cash flows for the three months ended March 31, 2018 and 2017. March 31, 2018 March 31, 2017 December 31, 2017 (in thousands) Cash and cash equivalents $ 154,031 $ 69,786 $ 87,680 Restricted cash 5,968 4,940 4,757 Restricted cash, included in other assets — — 347 Total cash, cash equivalents, and restricted cash $ 159,999 $ 74,726 $ 92,784 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property and Equipment, Net | Property and equipment, net consists of the following: March 31, 2018 December 31, 2017 (in thousands) Computer equipment and purchased software $ 5,457 $ 4,571 Employee computer equipment 6,015 4,260 Furniture and fixtures 11,330 11,083 Office equipment 2,546 2,620 Leasehold improvements 38,097 33,446 Equipment under capital lease 3,450 3,450 Internal-use software 3,449 2,892 Construction in progress 2,771 3,198 Total property and equipment 73,115 65,520 Less accumulated depreciation and amortization (25,381 ) (22,226 ) Property and equipment, net $ 47,734 $ 43,294 |
Capitalized Software Developm26
Capitalized Software Development Costs (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Research And Development [Abstract] | |
Summary of Capitalized Software Development Costs, Exclusive of those Recorded within Property and Equipment | Capitalized software development costs, exclusive of those recorded within property and equipment, consisted of the following: March 31, 2018 December 31, 2017 (in thousands) Gross capitalized software development costs $ 36,305 $ 33,360 Accumulated amortization (26,420 ) (24,600 ) Capitalized software development costs, net $ 9,885 $ 8,760 |
Summary of Capitalized Software Development Costs Including Stock-Based Compensation and Amortization | The following table summarizes software development costs capitalized, stock-based compensation included in capitalized software development costs, and amortization of capitalized software development costs. Three Months Ended March 31, 2018 2017 (in thousands) Software development costs capitalized $ 2,945 $ 1,902 Stock-based compensation included in capitalized software development costs $ 550 $ 338 Amortization of capitalized software development costs $ 1,975 $ 1,369 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible assets as of March 31, 2018 and December 31, 2017 consist of the following: Weighted Average Remaining Useful Life March 31, 2018 December 31, 2017 (in thousands) Acquired technology 16 Months $ 7,252 $ 7,252 Acquired intellectual property — 80 80 Accumulated amortization (1,070 ) (1,020 ) Total $ 6,262 $ 6,312 |
Estimated Future Amortization Expense for Intangible Assets | Estimated future amortization expense for intangible assets, currently being amortized, as of March 31, 2018 is as follows: Years ended December 31, Amortization Expense (in thousands) 2018 $ 150 2019 112 Total $ 262 |
0.25% Convertible Senior Note28
0.25% Convertible Senior Notes, Convertible Note Hedge and Warrant (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Debt Instrument [Line Items] | |
Schedule of Interest Expense | Interest expense related to the 2022 Notes is as follows: Three Months Ended March 31, 2018 2017 (in thousands) Contractual interest expense $ 250 $ — Amortization of debt discount 4,567 — Amortization of issuance costs 341 — Total interest expense $ 5,158 $ — |
0.25% Convertible Senior Notes Due 2022 as Liability Component [Member] | |
Debt Instrument [Line Items] | |
Schedule of Net Carrying Amount of Notes | The net carrying amount of the liability component of the 2022 Notes is as follows: As of March 31, 2018 As of December 31, 2017 (in thousands) Principal $ 400,000 $ 400,000 Unamortized debt discount (89,931 ) (94,498 ) Unamortized issuance costs (6,714 ) (7,055 ) Net carrying amount $ 303,355 $ 298,447 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Payments | Future minimum payments under all operating lease agreements as of March 31, 2018 are as follows: Operating (in thousands) 2018 $ 15,754 2019 22,179 2020 23,579 2021 26,395 2022 26,748 Thereafter 135,558 Total $ 250,213 |
Changes in Accumulated Other 30
Changes in Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Loss | The following table summarizes the changes in accumulated other comprehensive loss, which is reported as a component of stockholders’ equity, for the three months ended March 31, 2018. Cumulative Translation Adjustment Unrealized Loss Investments Total (in thousands) Beginning balance at January 1, 2018 $ 379 $ (436 ) $ (57 ) Other comprehensive gain (loss) before reclassifications 298 (379 ) (81 ) Amounts reclassified from accumulated other comprehensive income — — — Ending balance at March 31, 2018 $ 677 $ (815 ) $ (138 ) |
Stock-Based Compensation Expe31
Stock-Based Compensation Expense (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Schedule of Stock-Based Compensation Expense by Award Type | The following two tables show stock-based compensation expense by award type and where the stock-based compensation expense is recorded in the Company’s consolidated statements of operations: Three Months Ended March 31, 2018 2017 (in thousands) Options $ 1,334 $ 1,247 RSUs 14,241 7,790 Employee stock purchase plan 471 266 Total stock-based compensation expense $ 16,046 $ 9,303 |
Effect of Stock-Based Compensation on Income by Line Item | Effect of stock-based compensation expense on income by line item: Three Months Ended March 31, 2018 2017 (in thousands) Cost of revenue, subscription $ 277 $ 115 Cost of revenue, professional services and other 690 449 Research and development 4,764 2,442 Sales and marketing 6,492 3,770 General and administrative 3,823 2,527 Total stock-based compensation expense $ 16,046 $ 9,303 |
Segment Information and Geogr32
Segment Information and Geographic Data (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Revenues by Geographical Region | Revenues by geographical region: Three Months Ended March 31, 2018 2017 Americas $ 82,158 $ 64,352 Europe 25,209 13,844 Asia Pacific 7,189 4,056 Total $ 114,556 $ 82,252 Percentage of revenues generated outside of the Americas 28 % 22 % |
Long Lived Assets by Geographical Region | Total long-lived assets by geographical region: As of March 31, 2018 As of December 31, 2017 Americas $ 30,783 $ 29,764 Europe 14,802 11,257 Asia Pacific 2,149 2,273 Total long-lived assets $ 47,734 $ 43,294 Percentage of long-lived assets held outside of the Americas 36 % 31 % |
Organization and Operations - A
Organization and Operations - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Organization And Operations [Line Items] | ||
Net increase in cash and cash equivalents provided by (used in) investing activities | $ 36,259 | $ (7,952) |
Early Adoption Effect [Member] | ||
Organization And Operations [Line Items] | ||
Net increase in cash and cash equivalents provided by (used in) investing activities | 864 | 4,400 |
Net increase in cash, cash equivalents and restricted cash | $ 864 | $ 4,500 |
Revenues - Additional Informati
Revenues - Additional Information (Detail) - USD ($) | 3 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Jan. 01, 2018 | Dec. 31, 2017 | |
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Unsatisfied performance obligations for contracts, disclosure description | The Company does not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less. | |||
Cumulative adjustment to retained earnings | $ (295,737,000) | $ (286,082,000) | ||
Subscription revenue | 108,602,000 | $ 77,503,000 | ||
Professional services and other revenue | 5,954,000 | 4,749,000 | ||
Selling and marketing expense | 59,910,000 | 46,672,000 | ||
Total operating expenses | 103,503,000 | 73,180,000 | ||
Loss from operations | (11,324,000) | (8,000,000) | ||
Loss before income tax (expense) benefit | (14,957,000) | (7,877,000) | ||
Net loss | (15,448,000) | (8,075,000) | ||
Comprehensive loss | (15,529,000) | (7,919,000) | ||
Short-term deferred commissions | 12,721,000 | 13,343,000 | ||
Total current assets | 619,543,000 | 602,501,000 | ||
Total assets | 742,975,000 | 712,175,000 | ||
Short-term deferred revenue | 148,500,000 | 136,880,000 | ||
Total current liabilities | 192,370,000 | 178,296,000 | ||
Total liabilities | 521,877,000 | 501,815,000 | ||
Total stockholders’ equity | 221,098,000 | 210,360,000 | ||
Total liabilities and stockholders’ equity | 742,975,000 | 712,175,000 | ||
Deferred commissions expense | (5,068,000) | (464,000) | ||
Deferred revenue net | 10,973,000 | 8,453,000 | ||
Impact on cash flows from operations | $ 26,722,000 | $ 19,092,000 | ||
Revenue subscription contract period | One year or less | |||
Increase in deferred revenue | $ 11,600,000 | |||
Additional Invoicing | 126,200,000 | |||
Deferred revenue, revenue recognized | 114,600,000 | |||
Deferred revenue | $ 71,600,000 | |||
Revenue remaining performance obligation, contracts exceeds one year | $ 74,300,000 | |||
Revenue remaining performance obligation contract period | 1 year | |||
Revenue remaining performance obligation percentage recognized | 90.00% | |||
Revenu remaining performance obligations recognized period | 24 months | |||
Increase in deferred commission expense | $ 4,800,000 | |||
Incremental costs of deferred sales commission expense | 9,400,000 | |||
Amortization of deferred commission expense | $ 4,600,000 | |||
Minimum [Member] | ||||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Amortization period of deferred commissions | 2 years | |||
Maximum [Member] | ||||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Amortization period of deferred commissions | 3 years | |||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 [Member] | ||||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Cumulative adjustment to retained earnings | $ 9,300,000 | $ 5,800,000 | ||
Subscription revenue | (170,000) | |||
Professional services and other revenue | 140,000 | |||
Total revenues | (30,000) | |||
Selling and marketing expense | (3,600,000) | |||
Total operating expenses | (3,600,000) | |||
Loss from operations | (3,500,000) | |||
Loss before income tax (expense) benefit | (3,500,000) | |||
Net loss | (3,500,000) | |||
Comprehensive loss | $ (3,500,000) | |||
Basic earnings (losses) per share | $ (0.09) | |||
Short-term deferred commissions | $ (2,200,000) | |||
Total current assets | (2,200,000) | |||
Long-term deferred commissions | 11,200,000 | |||
Total assets | 9,000,000 | |||
Short-term deferred revenue | (300,000) | |||
Total current liabilities | (300,000) | |||
Total liabilities | (300,000) | |||
Total stockholders’ equity | 9,300,000 | |||
Total liabilities and stockholders’ equity | 9,000,000 | |||
Deferred commissions expense | 3,600,000 | |||
Deferred revenue net | (30,000) | |||
Impact on cash flows from operations | $ 0 |
Net Loss per Share - Summary of
Net Loss per Share - Summary of Reconciliation of Denominator Used in Calculation of Basic and Diluted Net Loss Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Earnings Per Share Basic And Diluted [Abstract] | ||
Net loss | $ (15,448) | $ (8,075) |
Weighted-average common shares outstanding — basic | 37,832 | 36,205 |
Weighted-average common shares, outstanding — diluted | 37,832 | 36,205 |
Net loss per share, basic and diluted | $ (0.41) | $ (0.22) |
Net Loss per Share - Schedule o
Net Loss per Share - Schedule of Potentially Dilutive Common Stock Equivalents (Detail) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Options to Purchase Common Shares [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share | 2,142 | 2,561 |
RSUs [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share | 2,284 | 2,013 |
Conversation Option of the 2022 Notes [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share | 383 | |
ESPP [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share | 8 | 3 |
Net Loss per Share - Additional
Net Loss per Share - Additional Information (Detail) | Mar. 31, 2018$ / shares |
0.25% Convertible Senior Notes Due 2022 as Liability Component [Member] | |
Earnings Per Share Basic [Line Items] | |
Common stock conversion price | $ 94.77 |
Fair Value of Financial Instr38
Fair Value of Financial Instruments - Schedule of Fair Value of Financial Assets and Liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of short and long term investments | $ 403,479 | $ 448,057 |
Fair value of financial assets | 468,090 | 466,007 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of financial assets | 4,727 | 12,845 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of financial assets | 463,363 | 453,162 |
Money Market Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of cash and cash equivalents | 4,727 | 12,845 |
Money Market Funds [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of cash and cash equivalents | 4,727 | 12,845 |
Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of short and long term investments | 8,875 | 5,867 |
Commercial Paper [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of short and long term investments | 8,875 | 5,867 |
Corporate Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of short and long term investments | 83,159 | 81,668 |
Corporate Bonds [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of short and long term investments | 83,159 | 81,668 |
US Government Agency Obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of short and long term investments | 2,991 | 3,987 |
US Government Agency Obligations [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of short and long term investments | 2,991 | 3,987 |
US Treasury Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of short and long term investments | 362,370 | 356,535 |
US Treasury Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of short and long term investments | 362,370 | 356,535 |
Certificates of Deposit [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of restricted cash | 5,968 | 5,105 |
Certificates of Deposit [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of restricted cash | $ 5,968 | $ 5,105 |
Fair Value of Financial Instr39
Fair Value of Financial Instruments - Additional Information (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Other assets | $ 5,273 | $ 4,964 |
Strategic Investments [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Other assets | 3,700 | $ 3,500 |
2022 Notes [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Fair value of notes | $ 516,400 |
Fair Value of Financial Instr40
Fair Value of Financial Instruments - Summary of Composition of Short and Long Term Investments (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 404,291 | $ 448,492 |
Unrealized Gains | 8 | |
Unrealized Losses | (812) | (443) |
Aggregate Fair Value | 403,479 | 448,057 |
Commercial Paper [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 4,891 | 5,874 |
Unrealized Losses | (6) | (7) |
Aggregate Fair Value | 4,885 | 5,867 |
Corporate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 83,648 | 81,947 |
Unrealized Losses | (489) | (279) |
Aggregate Fair Value | 83,159 | 81,668 |
US Government Agency Obligations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 3,000 | 4,000 |
Unrealized Losses | (9) | (13) |
Aggregate Fair Value | 2,991 | 3,987 |
US Treasury Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 312,752 | 356,671 |
Unrealized Gains | 8 | |
Unrealized Losses | (308) | (144) |
Aggregate Fair Value | $ 312,444 | $ 356,535 |
Fair Value of Financial Instr41
Fair Value of Financial Instruments - Summary of Contractual Maturities of Short and Long Term Investments (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Fair Value Disclosures [Abstract] | ||
Amortized Cost Basis, Due within one year | $ 375,946 | $ 416,932 |
Amortized Cost Basis, Due after 1 year through 2 years | 28,345 | 31,560 |
Amortized Cost | 404,291 | 448,492 |
Aggregate Fair Value, Due within one year | 375,379 | 416,663 |
Aggregate Fair Value, Due after 1 year through 2 years | 28,100 | 31,394 |
Aggregate Fair Value, Total | $ 403,479 | $ 448,057 |
Restricted cash - Summary of Re
Restricted cash - Summary of Reconciliation of Cash, Cash Equivalents and Restricted Cash (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Cash And Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 154,031 | $ 87,680 | $ 69,786 | |
Restricted cash | 5,968 | 4,757 | 4,940 | |
Restricted cash, included in other assets | $ 347 | |||
Restricted Cash, Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssets | |||
Total cash, cash equivalents, and restricted cash | $ 159,999 | $ 92,784 | $ 74,726 | $ 60,185 |
Property and Equipment, Net - S
Property and Equipment, Net - Schedule of Property and Equipment (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 73,115 | $ 65,520 |
Less accumulated depreciation and amortization | (25,381) | (22,226) |
Property and equipment, net | 47,734 | 43,294 |
Computer Equipment and Purchased Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 5,457 | 4,571 |
Employee Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 6,015 | 4,260 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 11,330 | 11,083 |
Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 2,546 | 2,620 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 38,097 | 33,446 |
Equipment under Capital Lease [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 3,450 | 3,450 |
Internal-Use Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 3,449 | 2,892 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 2,771 | $ 3,198 |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Property Plant And Equipment [Abstract] | ||
Depreciation and amortization | $ 3.1 | $ 1.9 |
Summary of Capitalized Software
Summary of Capitalized Software Development Costs, Exclusive of those Recorded within Property and Equipment (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Capitalized Computer Software Net [Abstract] | ||
Gross capitalized software development costs | $ 36,305 | $ 33,360 |
Accumulated amortization | (26,420) | (24,600) |
Capitalized software development costs, net | $ 9,885 | $ 8,760 |
Capitalized Software Developm46
Capitalized Software Development Costs - Additional Information (Detail) - Capitalized Software Development Costs [Member] | 3 Months Ended |
Mar. 31, 2018 | |
Minimum [Member] | |
Capitalized Computer Software [Line Items] | |
Property and equipment, estimated useful life | 2 years |
Maximum [Member] | |
Capitalized Computer Software [Line Items] | |
Property and equipment, estimated useful life | 3 years |
Capitalized Software Developm47
Capitalized Software Development Costs - Summary of Capitalized Software Development Costs Including Stock-Based Compensation and Amortization (Detail) - Software Development [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Capitalized Computer Software [Line Items] | ||
Software development costs capitalized | $ 2,945 | $ 1,902 |
Stock-based compensation included in capitalized software development costs | 550 | 338 |
Amortization of capitalized software development costs | $ 1,975 | $ 1,369 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Intangible Assets (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Finite Lived Intangible Assets [Line Items] | ||
Accumulated amortization | $ (1,070) | $ (1,020) |
Intangible assets, net | 6,262 | 6,312 |
Acquired Technology [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Acquired intangible assets | $ 7,252 | 7,252 |
Acquired intangible assets, Weighted average remaining useful life | 16 months | |
Acquired Intellectual Property [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Acquired intangible assets | $ 80 | $ 80 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Finite Lived Intangible Assets [Line Items] | ||
Amortization expense | $ 50 | $ 16 |
Acquired Technology [Member] | Motion AI, Inc. [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Intangible assets acquired | $ 6,000 | |
Acquired Technology [Member] | Minimum [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Estimated useful life | 2 years | |
Acquired Technology [Member] | Maximum [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Estimated useful life | 3 years | |
Acquired Intellectual Property [Member] | Minimum [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Estimated useful life | 2 years | |
Acquired Intellectual Property [Member] | Maximum [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Estimated useful life | 3 years |
Intangible Assets - Estimated F
Intangible Assets - Estimated Future Amortization Expense for Intangible Assets (Detail) $ in Thousands | Mar. 31, 2018USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
2,018 | $ 150 |
2,019 | 112 |
Total | $ 262 |
0.25% Convertible Senior Note51
0.25% Convertible Senior Notes, Convertible Note Hedge and Warrant - Additional Information (Detail) - 0.25% Convertible Senior Notes Due 2022 [Member] - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | May 31, 2017 | |
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 0.25% | |
Debt instrument, maturity date | Jun. 1, 2022 | |
Private Offering [Member] | ||
Debt Instrument [Line Items] | ||
Principal amount of long term debt | $ 350,000,000 | |
Over-Allotment Options [Member] | ||
Debt Instrument [Line Items] | ||
Principal amount of long term debt | $ 50,000,000 |
0.25% Convertible Senior Note52
0.25% Convertible Senior Notes, Convertible Note Hedge and Warrant - Schedule of Net Carrying Amount of Liability Component (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Net carrying amount | $ 303,355 | $ 298,447 |
0.25% Convertible Senior Notes Due 2022 as Liability Component [Member] | ||
Debt Instrument [Line Items] | ||
Principal | 400,000 | 400,000 |
Unamortized debt discount | (89,931) | (94,498) |
Unamortized issuance costs | (6,714) | (7,055) |
Net carrying amount | $ 303,355 | $ 298,447 |
0.25% Convertible Senior Note53
0.25% Convertible Senior Notes, Convertible Note Hedge and Warrant - Schedule of Interest Expense (Detail) - 0.25% Convertible Senior Notes Due 2022 [Member] $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Debt Instrument [Line Items] | |
Contractual interest expense | $ 250 |
Amortization of debt discount | 4,567 |
Amortization of issuance costs | 341 |
Total interest expense | $ 5,158 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Future Minimum Payments (Detail) $ in Thousands | Mar. 31, 2018USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
Operating, 2018 | $ 15,754 |
Operating, 2019 | 22,179 |
Operating, 2020 | 23,579 |
Operating, 2021 | 26,395 |
Operating, 2022 | 26,748 |
Operating, Thereafter | 135,558 |
Operating, Total | $ 250,213 |
Changes in Accumulated Other 55
Changes in Accumulated Other Comprehensive Loss - Changes in Accumulated Other Comprehensive Loss (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Accumulated Other Comprehensive Income Loss [Line Items] | |
Beginning Balance, Amount | $ 210,360 |
Other comprehensive gain (loss) before reclassifications | (81) |
Ending Balance, Amount | 221,098 |
Cumulative Translation Adjustment [Member] | |
Accumulated Other Comprehensive Income Loss [Line Items] | |
Beginning Balance, Amount | 379 |
Other comprehensive gain (loss) before reclassifications | 298 |
Ending Balance, Amount | 677 |
Accumulated Net Unrealized Investment Gain (Loss) [Member] | |
Accumulated Other Comprehensive Income Loss [Line Items] | |
Beginning Balance, Amount | (436) |
Other comprehensive gain (loss) before reclassifications | (379) |
Ending Balance, Amount | (815) |
Accumulated Other Comprehensive Loss [Member] | |
Accumulated Other Comprehensive Income Loss [Line Items] | |
Beginning Balance, Amount | (57) |
Ending Balance, Amount | $ (138) |
Stock-Based Compensation Expe56
Stock-Based Compensation Expense - Schedule of Stock-Based Compensation Expense by Award Type (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense | $ 16,046 | $ 9,303 |
Common Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense | 1,334 | 1,247 |
RSUs [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense | 14,241 | 7,790 |
Employee Stock Purchase Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense | $ 471 | $ 266 |
Stock-Based Compensation Expe57
Stock-Based Compensation Expense - Effect of Stock-Based Compensation on Income by Line Item (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense | $ 16,046 | $ 9,303 |
Cost of Revenue, Subscription [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense | 277 | 115 |
Cost of Revenue, Professional Services and Other [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense | 690 | 449 |
Research and Development [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense | 4,764 | 2,442 |
Sales and Marketing [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense | 6,492 | 3,770 |
General and Administrative [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense | $ 3,823 | $ 2,527 |
Stock-Based Compensation Expe58
Stock-Based Compensation Expense - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Software Development [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Capitalized software development costs excluded from stock based compensation | $ 550 | $ 338 |
Segment Information and Geogr59
Segment Information and Geographic Data - Additional Information (Detail) - Segment | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Segment Reporting Information [Line Items] | ||
Number of operating segment | 1 | |
Revenue [Member] | Outside Of United States [Member] | Geographic Concentration Risk [Member] | ||
Segment Reporting Information [Line Items] | ||
Concentration risk, percentage | 36.00% | 30.00% |
Segment Information and Geogr60
Segment Information and Geographic Data - Revenues by Geographical Region (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Segment Reporting Information [Line Items] | ||
Total Revenues | $ 114,556 | $ 82,252 |
Americas [Member] | ||
Segment Reporting Information [Line Items] | ||
Total Revenues | 82,158 | 64,352 |
Europe [Member] | ||
Segment Reporting Information [Line Items] | ||
Total Revenues | 25,209 | 13,844 |
Asia Pacific [Member] | ||
Segment Reporting Information [Line Items] | ||
Total Revenues | $ 7,189 | $ 4,056 |
Revenue [Member] | Outside Of Americas [Member] | Geographic Concentration Risk [Member] | ||
Segment Reporting Information [Line Items] | ||
Percentage of revenues generated outside of the Americas | 28.00% | 22.00% |
Segment Information and Geogr61
Segment Information and Geographic Data - Long Lived Assets by Geographical Region (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | ||
Total long lived assets | $ 47,734 | $ 43,294 |
Americas [Member] | ||
Segment Reporting Information [Line Items] | ||
Total long lived assets | 30,783 | 29,764 |
Europe [Member] | ||
Segment Reporting Information [Line Items] | ||
Total long lived assets | 14,802 | 11,257 |
Asia Pacific [Member] | ||
Segment Reporting Information [Line Items] | ||
Total long lived assets | $ 2,149 | $ 2,273 |
Outside Of Americas [Member] | Assets Total [Member] | Geographic Concentration Risk [Member] | ||
Segment Reporting Information [Line Items] | ||
Percentage of long lived assets held outside of the Americas | 36.00% | 31.00% |