Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 25, 2019 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2019 | |
Entity Registrant Name | CASTLIGHT HEALTH, INC. | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Shell Company | false | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0001433714 | |
Current Fiscal Year End Date | --12-31 | |
Class A common stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 35,032,053 | |
Class B | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 111,141,225 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 36,040 | $ 66,005 |
Marketable securities | 19,977 | 11,327 |
Accounts receivable and other, net | 35,442 | 26,816 |
Prepaid expenses and other current assets | 4,512 | 3,680 |
Total current assets | 95,971 | 107,828 |
Property and equipment, net | 3,318 | 3,963 |
Restricted cash, non-current | 1,325 | 1,325 |
Deferred commissions | 17,242 | 20,142 |
Deferred professional service costs | 8,429 | 10,133 |
Intangible assets, net | 13,253 | 16,209 |
Goodwill | 91,785 | 91,785 |
Operating lease right-of-use assets, net | 13,351 | |
Other assets | 2,119 | 2,129 |
Total assets | 246,793 | 253,514 |
Current liabilities: | ||
Accounts payable | 11,989 | 9,556 |
Accrued expenses and other current liabilities | 11,169 | 15,454 |
Accrued compensation | 5,547 | 5,975 |
Deferred revenue | 17,509 | 20,193 |
Operating lease liabilities | 5,897 | |
Total current liabilities | 52,111 | 51,178 |
Deferred revenue, non-current | 824 | 1,030 |
Debt, non-current | 1,860 | 3,254 |
Operating lease liabilities, non-current | 10,574 | |
Other liabilities, non-current | 1,125 | 3,381 |
Total liabilities | 66,494 | 58,843 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Additional paid-in capital | 623,573 | 609,697 |
Accumulated other comprehensive income | 7 | 0 |
Accumulated deficit | (443,296) | (415,040) |
Total stockholders’ equity | 180,299 | 194,671 |
Total liabilities and stockholders’ equity | 246,793 | 253,514 |
Class A common stock | ||
Stockholders’ equity: | ||
Class A common stock, $0.0001 par value; 200,000,000 shares authorized as of September 30, 2019 and December 31, 2018; 35,032,053 shares and 37,576,324 shares issued and outstanding as of September 30, 2019 and December 31, 2018, respectively | 4 | 4 |
Class B common stock | ||
Stockholders’ equity: | ||
Class A common stock, $0.0001 par value; 200,000,000 shares authorized as of September 30, 2019 and December 31, 2018; 35,032,053 shares and 37,576,324 shares issued and outstanding as of September 30, 2019 and December 31, 2018, respectively | $ 11 | $ 10 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2019 | Dec. 31, 2018 |
Class A common stock | ||
Par value (usd per share) | $ 0.0001 | $ 0.0001 |
Common stock authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock issued (in shares) | 35,032,053 | 37,576,324 |
Common stock outstanding (in shares) | 35,032,053 | 37,576,324 |
Class B | ||
Par value (usd per share) | $ 0.0001 | $ 0.0001 |
Common stock authorized (in shares) | 800,000,000 | 800,000,000 |
Common stock issued (in shares) | 111,133,913 | 104,350,881 |
Common stock outstanding (in shares) | 111,133,913 | 104,350,881 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
Revenue: | |||||
Total revenue, net | $ 35,461 | $ 40,041 | $ 106,861 | $ 114,304 | |
Cost of revenue: | |||||
Total cost of revenue | 14,501 | 14,795 | 42,774 | 45,468 | |
Gross profit | 20,960 | 25,246 | 64,087 | 68,836 | |
Operating expenses: | |||||
Sales and marketing | [1] | 9,829 | 11,497 | 27,933 | 38,715 |
Research and development | [1] | 14,295 | 15,028 | 44,507 | 46,824 |
General and administrative | [1] | 6,440 | 6,193 | 20,743 | 19,400 |
Total operating expenses | 30,564 | 32,718 | 93,183 | 104,939 | |
Operating loss | (9,604) | (7,472) | (29,096) | (36,103) | |
Other income, net | 268 | 207 | 840 | 436 | |
Net loss | $ (9,336) | $ (7,265) | $ (28,256) | $ (35,667) | |
Net loss per share, basic and diluted (in usd per share) | $ (0.06) | $ (0.05) | $ (0.20) | $ (0.26) | |
Weighted-average shares used to compute basic and diluted net loss per share (in shares) | 145,701 | 138,490 | 144,434 | 136,735 | |
Subscription | |||||
Revenue: | |||||
Total revenue, net | $ 34,900 | $ 36,702 | $ 102,670 | $ 104,493 | |
Cost of revenue: | |||||
Total cost of revenue | [1] | 8,517 | 8,558 | 24,917 | 26,872 |
Professional services and other | |||||
Revenue: | |||||
Total revenue, net | 561 | 3,339 | 4,191 | 9,811 | |
Cost of revenue: | |||||
Total cost of revenue | [1] | $ 5,984 | $ 6,237 | $ 17,857 | $ 18,596 |
[1] | Includes stock-based compensation expense as follows: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Cost of revenue: Cost of subscription $ 180 $ 322 $ 595 $ 795 Cost of professional services and other 236 322 737 938 Sales and marketing 678 699 1,967 3,155 Research and development 1,294 1,798 4,731 5,360 General and administrative 625 1,129 3,817 3,761 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Subscription | ||||
Stock-based compensation expense | $ 180 | $ 322 | $ 595 | $ 795 |
Professional services and other | ||||
Stock-based compensation expense | 236 | 322 | 737 | 938 |
Sales and marketing | ||||
Stock-based compensation expense | 678 | 699 | 1,967 | 3,155 |
Research and development | ||||
Stock-based compensation expense | 1,294 | 1,798 | 4,731 | 5,360 |
General and administrative | ||||
Stock-based compensation expense | $ 625 | $ 1,129 | $ 3,817 | $ 3,761 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (9,336) | $ (7,265) | $ (28,256) | $ (35,667) |
Other comprehensive income: | ||||
Net change in unrealized gain on available-for-sale marketable securities | 0 | 3 | 7 | 16 |
Other comprehensive income | 0 | 3 | 7 | 16 |
Comprehensive loss | $ (9,336) | $ (7,262) | $ (28,249) | $ (35,651) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Class A and B Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit |
Beginning balance (in shares) at Dec. 31, 2017 | 134,539,275 | ||||
Beginning balance at Dec. 31, 2017 | $ 211,557 | $ 13 | $ 586,900 | $ (22) | $ (375,334) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Vesting of restricted stock units (in shares) | 2,881,870 | ||||
Exercise of stock options, net (in shares) | 1,879,322 | ||||
Exercise of stock options, net | 2,613 | $ 1 | 2,612 | ||
Stock-based compensation | 14,145 | 14,145 | |||
Comprehensive loss | (35,651) | 16 | (35,667) | ||
Ending balance (in shares) at Sep. 30, 2018 | 139,300,467 | ||||
Ending balance at Sep. 30, 2018 | 192,664 | $ 14 | 603,657 | (6) | (411,001) |
Beginning balance (in shares) at Jun. 30, 2018 | 137,729,010 | ||||
Beginning balance at Jun. 30, 2018 | 195,232 | $ 14 | 598,963 | (9) | (403,736) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Vesting of restricted stock units (in shares) | 1,219,444 | ||||
Exercise of stock options, net (in shares) | 352,013 | ||||
Exercise of stock options, net | 371 | 371 | |||
Stock-based compensation | 4,323 | 4,323 | |||
Comprehensive loss | (7,262) | 3 | (7,265) | ||
Ending balance (in shares) at Sep. 30, 2018 | 139,300,467 | ||||
Ending balance at Sep. 30, 2018 | 192,664 | $ 14 | 603,657 | (6) | (411,001) |
Beginning balance (in shares) at Dec. 31, 2018 | 141,927,205 | ||||
Beginning balance at Dec. 31, 2018 | $ 194,671 | $ 14 | 609,697 | 0 | (415,040) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Vesting of restricted stock units (in shares) | 3,004,471 | ||||
Exercise of stock options, net (in shares) | 1,234,290 | 1,234,290 | |||
Exercise of stock options, net | $ 1,924 | $ 1 | 1,923 | ||
Stock-based compensation | 11,953 | 11,953 | |||
Comprehensive loss | (28,249) | 7 | (28,256) | ||
Ending balance (in shares) at Sep. 30, 2019 | 146,165,966 | ||||
Ending balance at Sep. 30, 2019 | 180,299 | $ 15 | 623,573 | 7 | (443,296) |
Beginning balance (in shares) at Jun. 30, 2019 | 145,198,887 | ||||
Beginning balance at Jun. 30, 2019 | 186,510 | $ 14 | 620,449 | 7 | (433,960) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Vesting of restricted stock units (in shares) | 913,573 | ||||
Exercise of stock options, net (in shares) | 53,506 | ||||
Exercise of stock options, net | 79 | $ 1 | 78 | ||
Stock-based compensation | 3,046 | 3,046 | |||
Comprehensive loss | (9,336) | (9,336) | |||
Ending balance (in shares) at Sep. 30, 2019 | 146,165,966 | ||||
Ending balance at Sep. 30, 2019 | $ 180,299 | $ 15 | $ 623,573 | $ 7 | $ (443,296) |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Operating activities: | ||
Net loss | $ (28,256) | $ (35,667) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 4,368 | 5,271 |
Stock-based compensation | 11,847 | 14,009 |
Amortization and impairment of deferred commissions | 7,403 | 9,017 |
Amortization and impairment of deferred professional service costs | 3,110 | 3,351 |
Non-cash operating lease expense | 3,919 | |
Lease exit and related charges | 0 | 2,070 |
Accretion and amortization of marketable securities | (244) | (392) |
Changes in operating assets and liabilities: | ||
Accounts receivable and other, net | (8,626) | (8,302) |
Deferred commissions | (4,503) | (5,180) |
Deferred professional service costs | (1,301) | (2,110) |
Prepaid expenses and other assets | (822) | (1,119) |
Accounts payable | 2,378 | 1,745 |
Operating lease liabilities | (4,267) | |
Accrued expenses and other liabilities | (3,072) | 1,645 |
Deferred revenue | (2,890) | (2,315) |
Accrued compensation | (428) | (8,080) |
Net cash used in operating activities | (21,384) | (26,057) |
Investing activities: | ||
Purchase of property and equipment | (712) | (1,895) |
Purchase of marketable securities | (23,069) | (25,430) |
Maturities of marketable securities | 14,670 | 36,350 |
Net cash (used in) provided by investing activities | (9,111) | 9,025 |
Financing activities: | ||
Proceeds from exercise of stock options | 1,924 | 2,613 |
Principal payments on long-term debt | (1,394) | 0 |
Net cash provided by financing activities | 530 | 2,613 |
Net decrease in cash, cash equivalents and restricted cash | (29,965) | (14,419) |
Cash, cash equivalents and restricted cash at beginning of period | 67,330 | 62,644 |
Cash, cash equivalents and restricted cash at end of period | 37,365 | 48,225 |
Reconciliation of cash, cash equivalents and restricted cash: | ||
Total cash, cash equivalents and restricted cash | $ 67,330 | $ 62,644 |
Organization and Description of
Organization and Description of Business | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Description of Business | Organization and Description of Business Castlight Health, Inc. (“Castlight” or “the Company”) offers a comprehensive software-as-a-service platform that simplifies health benefits navigation for millions of employees. The Castlight platform matches employees to the best resources their employers make available to them, whether they are healthy, actively seeking medical care, or managing a condition, and motivates them to take the best steps for their health. Castlight helps employers generate more value from their benefits investments by helping to improve outcomes, lower health care costs, and increase benefits satisfaction. In July 2019, the Company announced plans to market its technology beyond its current employer market to health plans and other potential buyers who interact with healthcare users at the point of their care. The Company was incorporated in the State of Delaware in January 2008. The Company's principal executive offices are located in San Francisco, California. |
Accounting Standards and Signif
Accounting Standards and Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Accounting Standards and Significant Accounting Policies | Accounting Standards and Significant Accounting Policies Basis of Presentation and Principles of Consolidation The accompanying unaudited condensed consolidated financial statements include Castlight and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. In the opinion of management, the information herein reflects all adjustments, consisting only of normal recurring adjustments except as otherwise noted, considered necessary for a fair statement of results of operations, financial position, stockholders’ equity and cash flows. The results for the interim periods presented are not necessarily indicative of the results expected for any future period. The following information should be read in conjunction with the audited financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018. Other than as described below, there have been no changes to the Company's significant accounting policies described in the Company's Annual Report that have had a material impact on the Company's consolidated financial statements and related notes. Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires the Company to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements, as well as the reported amounts of revenue and expenses during the reporting period. These estimates include, but are not limited to the determination of: • Variable consideration included in the transaction price of the Company’s contracts with customers; • The standalone selling price of the performance obligations in the Company’s contracts with customers; • Assumptions used in the valuation of certain equity awards; • The amortization period for deferred commissions and deferred professional services costs; and • Assumptions used in the calculation of right-of-use (“ROU”) assets and lease liabilities for operating leases, including lease terms and the Company’s incremental borrowing rate. Actual results could differ from those estimates, and such differences could be material to the Company’s consolidated financial position and results of operations. Summary of Significant Accounting Policies Leases The Company determines if an arrangement is a lease and its classification at lease inception. Operating lease liabilities are recognized at the commencement date of the lease based on the present value of lease payments over the lease term. The Company uses its incremental borrowing rate based on the information available at the lease commencement date to compute the present value of lease payments when the implicit rate is not readily determinable. ROU assets are measured at lease inception based on the initial measurement of the lease liability, plus any prepaid lease amounts, less any lease incentives. The Company does not recognize ROU assets or lease liabilities for leases with a term of 12 months or less. Lease terms do not include options to extend or terminate the lease unless it is reasonably certain that the option will be exercised. Generally, lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company's lease agreements have both lease and non-lease components. The Company has elected to account for the non-lease components of its leases as part of their related lease components. Concentrations of Risk and Significant Customers No single direct customer accounted for more than 10% of total revenue during the three and nine months ended September 30, 2019 or more than 10% of accounts receivable as of September 30, 2019. Castlight had one channel partner, Anthem, Inc. (“Anthem”), that represented approximately 29% and 26% of total revenue during the three and nine months ended September 30, 2019, respectively, and approximately 41% of accounts receivable as of September 30, 2019. Recently Adopted Accounting Pronouncements Effective January 1, 2019, the Company adopted Accounting Standards Update (“ASU”) 2016-02, Leases , and subsequent amendments ("ASC 842") using the modified retrospective method, and chose to apply the provisions at the beginning of the period of adoption. The guidance requires lessees to put all leases that have a term of more than one year on their balance sheets, whether operating or financing, while continuing to recognize the expenses on their income statements. The guidance states that a lessee would recognize a lease liability for the obligation to make lease payments and a right-of-use ("ROU") asset for the right to use the underlying asset for the lease term. As a result of the adoption of ASC 842 as of January 1, 2019, reporting periods beginning on and after January 1, 2019 are presented under ASC 842, while prior period amounts were not adjusted and continue to be reported in accordance with prior accounting guidance under ASC 840. In addition, the Company elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed the Company to carry forward the historical lease classification. As a result of the adoption of the new lease accounting guidance, the Company recognized on January 1, 2019 an operating lease ROU asset of approximately $17.3 million and an operating lease liability of approximately $20.7 million. The difference between the operating lease ROU asset and lease liability resulted from the reclass of the deferred rent liability to the operating lease ROU asset. The standard did not materially impact the Company’s condensed consolidated statement of operations and had no impact on the cash flows. See Note 10 - Leases for more information on leases. Recently Issued Accounting Pronouncements The Company considers the applicability and impact of all ASUs issued by the FASB. The Company determined that the ASUs issued by the FASB during the nine months ended September 30, 2019 are either not applicable or are expected to have minimal impact on the Company's condensed consolidated financial results. |
Revenue, Deferred Revenue, Cont
Revenue, Deferred Revenue, Contract Balances and Performance Obligations | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue, Deferred Revenue, Contract Balances and Performance Obligations | Revenue, Deferred Revenue, Contract Balances and Performance Obligations The Company sells to customers based in the United States through direct sales and indirect channels. Indirect channel revenue represented approximately 31% and 13% of the Company’s total revenue for the three months ended September 30, 2019 and 2018, respectively. Indirect channel revenue represented approximately 28% and 11% of the Company’s total revenue for the nine months ended September 30, 2019 and 2018, respectively. Deferred revenue as of September 30, 2019 and December 31, 2018 was $18.3 million and $21.2 million, respectively. Contract assets as of September 30, 2019 and December 31, 2018 were $1.1 million and $1.0 million, respectively. $11.3 million and $16.0 million of revenue was recognized during the three months ended September 30, 2019 and 2018, respectively, that was included in the Company’s deferred revenue balances at the beginning of the respective periods. $18.5 million and $26.6 million of revenue was recognized during the nine months ended September 30, 2019 and 2018, respectively, that was included in the Company’s deferred revenue balances at the beginning of the respective periods. The Company recorded unfavorable cumulative catch-up adjustments to revenue of $0.1 million during the three months ended September 30, 2019 and favorable cumulative catch-up adjustments to revenue of $0.7 million during the three months ended September 30, 2018, arising from changes in estimates of transaction price. The Company recorded favorable cumulative catch-up adjustments to revenue of $1.8 million during the nine months ended September 30, 2019 and favorable cumulative catch-up adjustments to revenue of $0.1 million during the nine months ended September 30, 2018, arising from changes in estimates of transaction price. The aggregate balance of remaining performance obligations from non-cancelable contracts with customers as of September 30, 2019 was $121.9 million. The Company expects to recognize approximately 70% of this balance over the next 12 months, with the remaining balance recognized thereafter. Remaining performance obligations are defined as deferred revenue and amounts yet to be billed for the non-cancelable portion of contracts. |
Deferred Costs
Deferred Costs | 9 Months Ended |
Sep. 30, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Deferred Costs | Deferred Costs Changes in the balance of total deferred commissions and total deferred professional service costs during the nine months ended September 30, 2019 are as follows (in thousands): As of December 31, 2018 Expense recognized As of September 30, 2019 Additions Deferred commissions $ 20,142 $ 4,503 $ (7,403) $ 17,242 Deferred professional service costs 10,133 1,406 (3,110) 8,429 Total deferred commissions and professional service costs $ 30,275 $ 5,909 $ (10,513) $ 25,671 These costs are reviewed for impairment quarterly. Impairment charges, included in expense recognized above, were $0.2 million and $0.3 million for the three months ended September 30, 2019 and 2018, respectively, and were $0.8 million and $0.9 million for the nine months ended September 30, 2019 and 2018, respectively. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill Currently, all of the Company’s goodwill relates to the acquisition of Jiff. The excess of purchase consideration over the fair value of net tangible and identifiable intangible assets acquired was recorded as goodwill. There were no changes to goodwill for the three and nine months ended September 30, 2019. Intangible assets, net Identified intangible assets are recorded at their estimated fair values at the date of acquisition and are amortized over their respective estimated useful lives using a method of amortization that reflects the pattern in which the economic benefits of the intangible assets are used. Subsequent to the end of second quarter of 2019, the Company realized elevated churn related to legacy Jiff customers. As a result, the Company performed an analysis of realized churn and future forecasts and updated its estimate of the original useful life of customer relationships and backlog in the third quarter of 2019. The estimated useful life of customer relationships was revised from 10 years to 6 years, and the estimated useful life of backlog was revised from 3 years to 2.5 years. These updates in useful lives have been accounted for as a change in accounting estimate and will be applied prospectively to the remaining carrying amounts. The following tables set forth the fair value components of identifiable acquired intangible assets (dollars in thousands): As of September 30, 2019 Useful Life Gross Accumulated Amortization Net Customer relationships 6 $ 10,900 $ (2,980) $ 7,920 Developed technology 5 10,600 (5,300) 5,300 Backlog 2.5 1,500 (1,500) — Other acquired intangible assets 1 - 3 900 (867) 33 Total identifiable intangible assets $ 23,900 $ (10,647) $ 13,253 As of December 31, 2018 Useful Life Gross Accumulated Amortization Net Customer relationships 10 $ 10,900 $ (1,908) $ 8,992 Developed technology 5 10,600 (3,710) 6,890 Backlog 3 1,500 (1,256) 244 Other acquired intangible assets 1 - 3 900 (817) 83 Total identifiable intangible assets $ 23,900 $ (7,691) $ 16,209 Amortization expense from acquired intangible assets for the three months ended September 30, 2019 and 2018 was $1.2 million and $1.0 million, respectively. Amortization expense from acquired intangible assets for the nine months ended September 30, 2019 and 2018 was $3.0 million and $3.1 million, respectively. Amortization expense is included in cost of subscription, sales and marketing, and general and administrative expenses. Amortization expense for acquired intangible assets for the following five years is as follows (in thousands): Remainder of 2019 $ 1,075 2020 4,248 2021 4,232 2022 2,642 2023 1,056 Total amortization expense $ 13,253 |
Marketable Securities
Marketable Securities | 9 Months Ended |
Sep. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable Securities | Marketable Securities All of the Company’s cash equivalents and marketable securities are classified as “available-for-sale” securities. These securities are reported at fair value, with the related unrealized gains and losses included in accumulated other comprehensive income, a component of stockholders’ equity, except for money market mutual funds, where gains and losses are included in the results of operations. Marketable securities consisted of the following (in thousands): As of September 30, 2019 Amortized Unrealized Unrealized Fair Value U.S. treasury securities $ 9,504 $ 3 $ — $ 9,507 U.S. agency obligations 10,466 4 — 10,470 Money market mutual funds 11,703 — — 11,703 31,673 7 — 31,680 Included in cash and cash equivalents 11,703 — — 11,703 Included in marketable securities $ 19,970 $ 7 $ — $ 19,977 As of December 31, 2018 Amortized Unrealized Unrealized Fair Value U.S. treasury securities $ 7,980 $ — $ — $ 7,980 U.S. agency obligations 18,158 — — 18,158 Money market mutual funds 7,115 — — 7,115 33,253 — — 33,253 Included in cash and cash equivalents 21,926 — — 21,926 Included in marketable securities $ 11,327 $ — $ — $ 11,327 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The Company measures its financial assets and liabilities at fair value at each reporting period using a fair value hierarchy that requires that the Company maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s classification within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Three levels of inputs may be used to measure fair value: Level 1—Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2—Include other inputs that are directly or indirectly observable in the marketplace. Level 3—Unobservable inputs that are supported by little or no market activity. The fair value of marketable securities included in the Level 2 category is based on observable inputs, such as quoted prices for similar assets at the measurement date; quoted prices in markets that are not active; or other inputs that are observable, either directly or indirectly. These values were obtained from a third-party pricing service and were evaluated using pricing models that vary by asset class and may incorporate available trade, bid and other market information and price quotes from well-established third party pricing vendors and broker-dealers. There have been no changes in valuation techniques in the periods presented. There were no significant transfers between fair value measurement levels as of September 30, 2019 and December 31, 2018. As of September 30, 2019 and December 31, 2018, there were no securities within Level 3 of the fair value hierarchy. The following tables present information about the Company’s assets and liabilities that are measured at fair value on a recurring basis using the above input categories (in thousands): As of September 30, 2019 Level 1 Level 2 Total Cash equivalents: Money market mutual funds $ 11,703 $ — $ 11,703 Marketable securities: U.S. treasury securities — 9,507 9,507 U.S. agency obligations — 10,470 10,470 $ 11,703 $ 19,977 $ 31,680 As of December 31, 2018 Level 1 Level 2 Total Cash equivalents: U.S. agency obligations $ — $ 14,811 $ 14,811 Money market mutual funds 7,115 — 7,115 Marketable securities: U.S. treasury securities — 7,980 7,980 U.S. agency obligations — 3,347 3,347 $ 7,115 $ 26,138 $ 33,253 Gross unrealized gains and losses for cash equivalents and marketable securities as of September 30, 2019 and December 31, 2018 were not material. The Company does not believe the unrealized losses represent other-than-temporary impairments based on the Company’s evaluation of available evidence as of September 30, 2019 and December 31, 2018. |
Property and Equipment
Property and Equipment | 9 Months Ended |
Sep. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment consisted of the following (in thousands): As of September 30, 2019 December 31, 2018 Leasehold improvements $ 3,102 $ 3,102 Computer equipment 7,373 6,860 Software 1,110 1,097 Internal-use software 2,925 2,925 Furniture and equipment 1,085 1,018 Total 15,595 15,002 Less: accumulated depreciation (12,277) (11,039) Property and equipment, net $ 3,318 $ 3,963 Depreciation and amortization expense for the three months ended September 30, 2019 and 2018 was $0.5 million and $0.7 million, respectively. Depreciation and amortization expense for the nine months ended September 30, 2019 and 2018 was $1.4 million and $2.2 million, respectively. Depreciation and amortization are recorded on a straight-line basis. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt Term Loan In connection with the Company’s acquisition of Jiff, on April 3, 2017, the Company, Jiff and Silicon Valley Bank (the “Bank”) agreed to refinance the existing term loan facility owed by Jiff to the Bank (the “Loan Agreement”) for approximately $5.6 million (the “Term Loan”). The Term Loan requires interest-only payments for the period May 2017 through September 2018, followed by 36 monthly payments of principal and interest. Obligations under the Term Loan accrue interest at a floating per annum rate equal to the greater of (A) the prime rate as published in the money rates section of The Wall Street Journal ( “Prime Rate”) minus 1% or (B) 0%. Interest on the Term Loan is payable monthly. The maturity date of the Term Loan is September 1, 2021. In addition to principal and interest payments, the Company is also required to pay $0.5 million as final payment on the earlier of maturity, termination or prepayment of the Term Loan. The Company accrues for the final payment over the life of the Term Loan using the effective interest method. The future maturities of the Term Loan by year as of September 30, 2019 are as follows (in thousands): Remainder of 2019 $ 465 2020 1,859 2021 (1) 1,395 Total future maturities of debt 3,719 Less current maturities (2) (1,859) Debt, non-current $ 1,860 (1) Excludes the $0.5 million required to be paid as final payment on the earlier of maturity, termination or prepayment of the Term Loan. (2) Classified within accrued expenses and other current liabilities on the condensed consolidated balance sheet as of September 30, 2019. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | Leases The Company’s principal commitments primarily consist of obligations under leases for office space and co-location facilities for data center capacity. The leases expire at various dates through 2025 and, in some cases, include renewal options. The exercise of the option is at the sole discretion of the Company. The Company subleases certain office facilities to third parties. These leases are classified as operating leases. The Company does not have finance leases. Information about these operating leases is disclosed in the following table (dollars in thousands): Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Lease cost: Operating lease cost $ 1,654 $ 4,942 Variable lease cost (1) 206 586 Short-term lease cost 34 41 Sublease income (680) (1,873) Total lease cost $ 1,214 $ 3,696 Other information: Operating cash flows used in the measurement of operating lease liabilities $ 5,290 Weighted-average remaining lease term - operating leases (in years) 3.1 Weighted-average discount rate - operating leases 7.48 % (1) Includes variable payments such as common area maintenance, property taxes and insurance. Maturities of Lease Liabilities As of September 30, 2019, the future minimum lease payments under non-cancellable operating leases are as follows (in thousands): Remainder of 2019 $ 1,795 2020 6,524 2021 5,355 2022 3,050 2023 677 2024 and later 1,111 Total lease payments (1) 18,512 Less: Interest (2,041) Present value of lease liabilities 16,471 Less: current portion (5,897) Operating lease liabilities, non-current $ 10,574 |
Contingencies
Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies Legal Matters From time to time, the Company may become subject to other legal proceedings, claims or litigation arising in the ordinary course of business. In addition, the Company may receive letters alleging infringement of patents or other intellectual property rights. If an unfavorable outcome were to occur in litigation, the impact could be material to the Company’s business, financial condition, cash flow or results of operations, depending on the specific circumstances of the outcome. The Company accrues for loss contingencies when it is both probable that it will incur the loss and when it can reasonably estimate the amount of the loss or range of loss. |
Stock Compensation
Stock Compensation | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock Compensation | Stock Compensation Restricted Stock Units (“RSUs”) A summary of unvested restricted stock unit activity for the nine months ended September 30, 2019 is as follows: Number of Weighted- Balance as of December 31, 2018 9,528,602 $ 3.54 Granted (1) 9,334,664 $ 2.51 Vested (3,004,471) $ 3.77 Forfeited and canceled (2) (3) (3,502,993) $ 3.42 Balance as of September 30, 2019 12,355,802 $ 2.71 (1) Includes 896,553 performance stock units ("PSUs") that were granted during the nine months ended September 30, 2019. (2) Includes PSUs that were granted in the prior year, which were canceled because performance targets were not achieved. (3) Includes market-based RSUs that were granted in the current year, which were canceled due to employee termination. As of September 30, 2019, there was a total of $30.8 million in unrecognized compensation cost related to restricted stock units, which is expected to be recognized over a weighted-average period of approximately 2.8 years. The Company granted 519,000 market-based RSUs during the second quarter of 2019. No market-based RSUs were granted in prior periods or during the third quarter of 2019. The market-based RSUs vest based on the Company achieving certain stock price thresholds, subject to the employee’s continued employment with the Company through the date of achievement. The fair value was based on values calculated under the Monte Carlo simulation model on the grant date and recognized over the derived service period. Compensation cost is not adjusted in future periods for subsequent changes in the expected outcome of market related conditions. During the third quarter of 2019, the Company reversed approximately $0.4 million of stock compensation expense that was previously recognized in connection with this award, upon the employee's termination in the third quarter. The Company granted 896,553 PSUs during the third quarter of 2019. The number of shares that will eventually vest depends on achievement of certain performance targets, as determined by the compensation committee of the Company's board of directors. Once the performance is determined, the PSUs, if any, will vest, subject to recipients' continued service, on the later of (i) the attainment of the performance targets and (ii) a year after the grant date. The compensation expense associated with the PSUs is recognized using the accelerated method. For the three and nine months ended September 30, 2019, the Company recognized compensation expense of approximately $0.1 million and $0.3 million, respectively, related to these performance awards and performance awards granted in 2018. Stock Options A summary of stock option activity for the nine months ended September 30, 2019 is as follows: Options Weighted- Aggregate Balance as of December 31, 2018 6,265,223 $ 2.65 $ 3,499 Granted 2,792,000 $ 1.70 Exercised (1,234,290) $ 1.56 Forfeited and canceled (367,391) $ 3.27 Balance as of September 30, 2019 7,455,542 $ 2.45 $ 760 The total grant-date fair value of stock options granted during the nine months ended September 30, 2019 and 2018 was $2.6 million and $0.3 million, respectively. The fair value of each option grant was estimated on the date of grant using the Black-Scholes option-valuation model with the following assumptions and fair value per share: Nine Months Ended September 30, 2019 2019 2018 Volatility 57 % - 58% 57% Expected life (in years) 6.06 6.06 Risk-free interest rate 1.62 % - 2.57% 2.72 % - 2.74% Dividend yield — — As of September 30, 2019, the Company had $2.7 million in unrecognized compensation cost related to non-vested stock options, which is expected to be recognized over a weighted-average period of approximately 3.6 years. Employee Stock Purchase Plan In March 2014, the Company's Board of Directors adopted and its stockholders approved the 2014 Employee Stock Purchase Plan ("the ESPP"). A total of 6,000,000 shares of Class B common stock were initially reserved and available for issuance under the ESPP. The ESPP provides for an initial three-month offering period commencing December 1, 2019, and for regular six-month offering periods beginning each March 1 and September 1 thereafter. On each purchase date, ESPP participants will purchase shares of the Company’s Class B common stock at a price per share equal to 85% of the lesser of (1) the fair market value of the Class B common stock on the offering date or (2) the fair market value of the Class B common stock on the purchase date. The Company will begin recognizing stock-based compensation expense for the ESPP in the fourth quarter of 2019. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The effective tax rate for each of the three and nine months ended September 30, 2019 and 2018 was zero percent, primarily as a result of the estimated tax loss for the year and the change in valuation allowance. At September 30, 2019, all unrecognized tax benefits are subject to a full valuation allowance and, if recognized, will not affect the effective tax rate. |
Net Loss per Share
Net Loss per Share | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Net Loss per Share | Net Loss per Share Basic net loss per share is computed by dividing the net loss by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by giving effect to all potential shares of common stock, including outstanding stock options and warrants, to the extent dilutive. Basic and diluted net loss per share was the same for each period presented as the inclusion of all potential shares of common stock outstanding would have been anti-dilutive. Net loss is allocated based on the contractual participation rights of the Class A and Class B common stock as if the earnings for the year have been distributed. As the liquidation and dividend rights are identical, the net loss is allocated on a proportionate basis. The following table presents the calculation of basic and diluted net loss per share for the Company’s common stock (in thousands, except per share data): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Class A Class B Class A Class B Class A Class B Class A Class B Net loss $ (2,245) $ (7,091) $ (2,260) $ (5,005) $ (7,009) $ (21,247) $ (12,850) $ (22,817) Weighted-average shares used to compute basic and diluted net loss per share 35,041 110,660 43,085 95,405 35,827 108,607 49,262 87,473 Basic and diluted net loss per share $ (0.06) $ (0.06) $ (0.05) $ (0.05) $ (0.20) $ (0.20) $ (0.26) $ (0.26) The following securities were excluded from the calculation of diluted net loss per share for common stock because their effect would have been anti-dilutive for the periods presented (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Stock options and restricted stock units 19,811 19,588 19,811 19,588 Warrants 115 115 115 115 Total 19,926 19,703 19,926 19,703 |
Reduction in Workforce
Reduction in Workforce | 9 Months Ended |
Sep. 30, 2019 | |
Restructuring and Related Activities [Abstract] | |
Reduction in Workforce | Reduction in Workforce On July 30, 2018, the Company announced its intent to undertake a program to reduce its workforce in order to decrease expenses, align its operations with evolving business needs and improve efficiencies. This was in part due to the unexpected churn of a large customer. Under this program, the Company undertook an initiative to reduce its workforce by approximately 12%. For the three months ended September 30, 2018, the Company incurred charges of approximately $2.1 million for this reduction, all of which related to severance costs. As of September 30, 2018, $1.4 million of the total was paid out, and the remaining balance of $0.7 million was paid in the fourth quarter of 2018. |
Subsequent Event
Subsequent Event | 9 Months Ended |
Sep. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent EventIn October 2019, the Company entered into an agreement with Anthem, pursuant to which the Company will provide certain services to Anthem. For these services, Anthem will pay the Company license fees of $168 million over 30 months, starting January 1, 2020. |
Accounting Standards and Sign_2
Accounting Standards and Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The accompanying unaudited condensed consolidated financial statements include Castlight and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. In the opinion of management, the information herein reflects all adjustments, consisting only of normal recurring adjustments except as otherwise noted, considered necessary for a fair statement of results of operations, financial position, stockholders’ equity and cash flows. The results for the interim periods presented are not necessarily indicative of the results expected for any future period. The following information should be read in conjunction with the audited financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018. Other than as described below, there have been no changes to the Company's significant accounting policies described in the Company's Annual Report that have had a material impact on the Company's consolidated financial statements and related notes. |
Use of Estimates | Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires the Company to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements, as well as the reported amounts of revenue and expenses during the reporting period. These estimates include, but are not limited to the determination of: • Variable consideration included in the transaction price of the Company’s contracts with customers; • The standalone selling price of the performance obligations in the Company’s contracts with customers; • Assumptions used in the valuation of certain equity awards; • The amortization period for deferred commissions and deferred professional services costs; and • Assumptions used in the calculation of right-of-use (“ROU”) assets and lease liabilities for operating leases, including lease terms and the Company’s incremental borrowing rate. Actual results could differ from those estimates, and such differences could be material to the Company’s consolidated financial position and results of operations. |
Leases | Leases The Company determines if an arrangement is a lease and its classification at lease inception. Operating lease liabilities are recognized at the commencement date of the lease based on the present value of lease payments over the lease term. The Company uses its incremental borrowing rate based on the information available at the lease commencement date to |
Recently Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements Effective January 1, 2019, the Company adopted Accounting Standards Update (“ASU”) 2016-02, Leases , and subsequent amendments ("ASC 842") using the modified retrospective method, and chose to apply the provisions at the beginning of the period of adoption. The guidance requires lessees to put all leases that have a term of more than one year on their balance sheets, whether operating or financing, while continuing to recognize the expenses on their income statements. The guidance states that a lessee would recognize a lease liability for the obligation to make lease payments and a right-of-use ("ROU") asset for the right to use the underlying asset for the lease term. As a result of the adoption of ASC 842 as of January 1, 2019, reporting periods beginning on and after January 1, 2019 are presented under ASC 842, while prior period amounts were not adjusted and continue to be reported in accordance with prior accounting guidance under ASC 840. In addition, the Company elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed the Company to carry forward the historical lease classification. As a result of the adoption of the new lease accounting guidance, the Company recognized on January 1, 2019 an operating lease ROU asset of approximately $17.3 million and an operating lease liability of approximately $20.7 million. The difference between the operating lease ROU asset and lease liability resulted from the reclass of the deferred rent liability to the operating lease ROU asset. The standard did not materially impact the Company’s condensed consolidated statement of operations and had no impact on the cash flows. See Note 10 - Leases for more information on leases. Recently Issued Accounting Pronouncements The Company considers the applicability and impact of all ASUs issued by the FASB. The Company determined that the ASUs issued by the FASB during the nine months ended September 30, 2019 are either not applicable or are expected to have minimal impact on the Company's condensed consolidated financial results. |
Deferred Costs (Tables)
Deferred Costs (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Changes in Balance of Total Deferred Commissions and Total Deferred Professional Service Costs | Changes in the balance of total deferred commissions and total deferred professional service costs during the nine months ended September 30, 2019 are as follows (in thousands): As of December 31, 2018 Expense recognized As of September 30, 2019 Additions Deferred commissions $ 20,142 $ 4,503 $ (7,403) $ 17,242 Deferred professional service costs 10,133 1,406 (3,110) 8,429 Total deferred commissions and professional service costs $ 30,275 $ 5,909 $ (10,513) $ 25,671 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | The following tables set forth the fair value components of identifiable acquired intangible assets (dollars in thousands): As of September 30, 2019 Useful Life Gross Accumulated Amortization Net Customer relationships 6 $ 10,900 $ (2,980) $ 7,920 Developed technology 5 10,600 (5,300) 5,300 Backlog 2.5 1,500 (1,500) — Other acquired intangible assets 1 - 3 900 (867) 33 Total identifiable intangible assets $ 23,900 $ (10,647) $ 13,253 As of December 31, 2018 Useful Life Gross Accumulated Amortization Net Customer relationships 10 $ 10,900 $ (1,908) $ 8,992 Developed technology 5 10,600 (3,710) 6,890 Backlog 3 1,500 (1,256) 244 Other acquired intangible assets 1 - 3 900 (817) 83 Total identifiable intangible assets $ 23,900 $ (7,691) $ 16,209 |
Schedule of Amortization Expense for Acquired Intangible Assets | Amortization expense for acquired intangible assets for the following five years is as follows (in thousands): Remainder of 2019 $ 1,075 2020 4,248 2021 4,232 2022 2,642 2023 1,056 Total amortization expense $ 13,253 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Available-for-sale Securities | Marketable securities consisted of the following (in thousands): As of September 30, 2019 Amortized Unrealized Unrealized Fair Value U.S. treasury securities $ 9,504 $ 3 $ — $ 9,507 U.S. agency obligations 10,466 4 — 10,470 Money market mutual funds 11,703 — — 11,703 31,673 7 — 31,680 Included in cash and cash equivalents 11,703 — — 11,703 Included in marketable securities $ 19,970 $ 7 $ — $ 19,977 As of December 31, 2018 Amortized Unrealized Unrealized Fair Value U.S. treasury securities $ 7,980 $ — $ — $ 7,980 U.S. agency obligations 18,158 — — 18,158 Money market mutual funds 7,115 — — 7,115 33,253 — — 33,253 Included in cash and cash equivalents 21,926 — — 21,926 Included in marketable securities $ 11,327 $ — $ — $ 11,327 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets Measured on Recurring Basis | The following tables present information about the Company’s assets and liabilities that are measured at fair value on a recurring basis using the above input categories (in thousands): As of September 30, 2019 Level 1 Level 2 Total Cash equivalents: Money market mutual funds $ 11,703 $ — $ 11,703 Marketable securities: U.S. treasury securities — 9,507 9,507 U.S. agency obligations — 10,470 10,470 $ 11,703 $ 19,977 $ 31,680 As of December 31, 2018 Level 1 Level 2 Total Cash equivalents: U.S. agency obligations $ — $ 14,811 $ 14,811 Money market mutual funds 7,115 — 7,115 Marketable securities: U.S. treasury securities — 7,980 7,980 U.S. agency obligations — 3,347 3,347 $ 7,115 $ 26,138 $ 33,253 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property and equipment consisted of the following (in thousands): As of September 30, 2019 December 31, 2018 Leasehold improvements $ 3,102 $ 3,102 Computer equipment 7,373 6,860 Software 1,110 1,097 Internal-use software 2,925 2,925 Furniture and equipment 1,085 1,018 Total 15,595 15,002 Less: accumulated depreciation (12,277) (11,039) Property and equipment, net $ 3,318 $ 3,963 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Maturities of Long-term Debt | The future maturities of the Term Loan by year as of September 30, 2019 are as follows (in thousands): Remainder of 2019 $ 465 2020 1,859 2021 (1) 1,395 Total future maturities of debt 3,719 Less current maturities (2) (1,859) Debt, non-current $ 1,860 (1) Excludes the $0.5 million required to be paid as final payment on the earlier of maturity, termination or prepayment of the Term Loan. (2) Classified within accrued expenses and other current liabilities on the condensed consolidated balance sheet as of September 30, 2019. |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Information About Operating Leases | Information about these operating leases is disclosed in the following table (dollars in thousands): Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Lease cost: Operating lease cost $ 1,654 $ 4,942 Variable lease cost (1) 206 586 Short-term lease cost 34 41 Sublease income (680) (1,873) Total lease cost $ 1,214 $ 3,696 Other information: Operating cash flows used in the measurement of operating lease liabilities $ 5,290 Weighted-average remaining lease term - operating leases (in years) 3.1 Weighted-average discount rate - operating leases 7.48 % (1) Includes variable payments such as common area maintenance, property taxes and insurance. |
Maturities of Lease Liabilities | As of September 30, 2019, the future minimum lease payments under non-cancellable operating leases are as follows (in thousands): Remainder of 2019 $ 1,795 2020 6,524 2021 5,355 2022 3,050 2023 677 2024 and later 1,111 Total lease payments (1) 18,512 Less: Interest (2,041) Present value of lease liabilities 16,471 Less: current portion (5,897) Operating lease liabilities, non-current $ 10,574 (1) In October 2019, the Company entered into a lease agreement, which commenced in the same month, for an office space in Salt Lake City, Utah. The lease agreement stipulates monthly payments over five years with total minimum lease payments of approximately $3.4 million and is excluded from the table above. |
Stock Compensation (Tables)
Stock Compensation (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Other Share-based Compensation, Activity | A summary of unvested restricted stock unit activity for the nine months ended September 30, 2019 is as follows: Number of Weighted- Balance as of December 31, 2018 9,528,602 $ 3.54 Granted (1) 9,334,664 $ 2.51 Vested (3,004,471) $ 3.77 Forfeited and canceled (2) (3) (3,502,993) $ 3.42 Balance as of September 30, 2019 12,355,802 $ 2.71 (1) Includes 896,553 performance stock units ("PSUs") that were granted during the nine months ended September 30, 2019. (2) Includes PSUs that were granted in the prior year, which were canceled because performance targets were not achieved. |
Schedule of Share-based Compensation, Stock Options, Activity | A summary of stock option activity for the nine months ended September 30, 2019 is as follows: Options Weighted- Aggregate Balance as of December 31, 2018 6,265,223 $ 2.65 $ 3,499 Granted 2,792,000 $ 1.70 Exercised (1,234,290) $ 1.56 Forfeited and canceled (367,391) $ 3.27 Balance as of September 30, 2019 7,455,542 $ 2.45 $ 760 |
Schedule of Share-based Payment Award, Valuation Assumptions | The fair value of each option grant was estimated on the date of grant using the Black-Scholes option-valuation model with the following assumptions and fair value per share: Nine Months Ended September 30, 2019 2019 2018 Volatility 57 % - 58% 57% Expected life (in years) 6.06 6.06 Risk-free interest rate 1.62 % - 2.57% 2.72 % - 2.74% Dividend yield — — |
Net Loss per Share (Tables)
Net Loss per Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Calculation of Basic and Diluted Earnings per Share | The following table presents the calculation of basic and diluted net loss per share for the Company’s common stock (in thousands, except per share data): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Class A Class B Class A Class B Class A Class B Class A Class B Net loss $ (2,245) $ (7,091) $ (2,260) $ (5,005) $ (7,009) $ (21,247) $ (12,850) $ (22,817) Weighted-average shares used to compute basic and diluted net loss per share 35,041 110,660 43,085 95,405 35,827 108,607 49,262 87,473 Basic and diluted net loss per share $ (0.06) $ (0.06) $ (0.05) $ (0.05) $ (0.20) $ (0.20) $ (0.26) $ (0.26) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following securities were excluded from the calculation of diluted net loss per share for common stock because their effect would have been anti-dilutive for the periods presented (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Stock options and restricted stock units 19,811 19,588 19,811 19,588 Warrants 115 115 115 115 Total 19,926 19,703 19,926 19,703 |
Accounting Standards and Sign_3
Accounting Standards and Significant Accounting Policies - Concentrations of Risk and Significant Customers (Details) - Largest Channel Partner - Customer Concentration Risk | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Total Revenue | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 29.00% | 26.00% |
Accounts Receivable | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 41.00% |
Accounting Standards and Sign_4
Accounting Standards and Significant Accounting Policies - Recently Adopted Accounting Pronouncements (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 01, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease ROU asset | $ 13,351 | |
Operating lease liability | $ 16,471 | |
Accounting Standards Update 2016-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease ROU asset | $ 17,300 | |
Operating lease liability | $ 20,700 |
Revenue, Deferred Revenue, Co_2
Revenue, Deferred Revenue, Contract Balances and Performance Obligations - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Concentration Risk [Line Items] | |||||
Deferred revenue | $ 18.3 | $ 18.3 | $ 21.2 | ||
Contract with customer, asset, net | 1.1 | 1.1 | $ 1 | ||
Contract with customer liability, revenue recognized | 11.3 | $ 16 | 18.5 | $ 26.6 | |
Contract with customer, liability, cumulative catch-up adjustment to revenue, change in estimate of transaction price | $ (0.1) | $ 0.7 | $ 1.8 | $ 0.1 | |
Indirect Channel | Customer Concentration Risk | Sales Revenue, Net | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 31.00% | 13.00% | 28.00% | 11.00% |
Revenue, Deferred Revenue, Co_3
Revenue, Deferred Revenue, Contract Balances and Performance Obligations - Performance Obligations (Details) $ in Millions | Sep. 30, 2019USD ($) |
Revenue from Contract with Customer [Abstract] | |
Revenue, remaining performance obligation | $ 121.9 |
Revenue, remaining performance obligation, percent | 70.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 12 months |
Deferred Costs (Details)
Deferred Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Deferred commissions | ||||
As of beginning of period | $ 20,142 | |||
Additions | 4,503 | |||
Expense recognized | (7,403) | |||
As of end of period | $ 17,242 | 17,242 | ||
Deferred professional service costs | ||||
As of beginning of period | 10,133 | |||
Additions | 1,406 | |||
Expense recognized | (3,110) | |||
As of end of period | 8,429 | 8,429 | ||
Total deferred commissions and professional service costs | ||||
As of beginning of period | 30,275 | |||
Additions | 5,909 | |||
Expense recognized | (10,513) | |||
As of end of period | 25,671 | 25,671 | ||
Impairment charges | $ 200 | $ 300 | $ 800 | $ 900 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2019 | Jun. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||
Changes in goodwill | $ 0 | $ 0 | ||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Amortization expense | $ 1,200,000 | $ 1,000,000 | $ 3,000,000 | $ 3,100,000 | ||
Customer relationships | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Useful Life | 6 years | 10 years | 6 years | 10 years | ||
Backlog | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Useful Life | 3 years | 2 years 6 months |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Schedule of Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2019 | Jun. 30, 2019 | Sep. 30, 2019 | Dec. 31, 2018 | |
Finite-lived Intangible Assets [Roll Forward] | ||||
Gross | $ 23,900 | $ 23,900 | $ 23,900 | |
Accumulated Amortization | (10,647) | (10,647) | (7,691) | |
Total | $ 13,253 | $ 13,253 | $ 16,209 | |
Customer relationships | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Useful Life | 6 years | 10 years | 6 years | 10 years |
Finite-lived Intangible Assets [Roll Forward] | ||||
Gross | $ 10,900 | $ 10,900 | $ 10,900 | |
Accumulated Amortization | (2,980) | (2,980) | (1,908) | |
Total | 7,920 | $ 7,920 | $ 8,992 | |
Developed technology | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Useful Life | 5 years | 5 years | ||
Finite-lived Intangible Assets [Roll Forward] | ||||
Gross | 10,600 | $ 10,600 | $ 10,600 | |
Accumulated Amortization | (5,300) | (5,300) | (3,710) | |
Total | 5,300 | $ 5,300 | 6,890 | |
Backlog | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Useful Life | 3 years | 2 years 6 months | ||
Finite-lived Intangible Assets [Roll Forward] | ||||
Gross | 1,500 | $ 1,500 | 1,500 | |
Accumulated Amortization | (1,500) | (1,500) | (1,256) | |
Total | 0 | 0 | 244 | |
Other acquired intangible assets | ||||
Finite-lived Intangible Assets [Roll Forward] | ||||
Gross | 900 | 900 | 900 | |
Accumulated Amortization | (867) | (867) | (817) | |
Total | $ 33 | $ 33 | $ 83 | |
Other acquired intangible assets | Minimum | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Useful Life | 1 year | 1 year | ||
Other acquired intangible assets | Maximum | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Useful Life | 3 years | 3 years |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Schedule of Amortization Expense for Acquired Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Remainder of 2019 | $ 1,075 | |
2020 | 4,248 | |
2021 | 4,232 | |
2022 | 2,642 | |
2023 | 1,056 | |
Total | $ 13,253 | $ 16,209 |
Marketable Securities (Details)
Marketable Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 31,673 | $ 33,253 |
Unrealized Gains | 7 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | 31,680 | 33,253 |
Included in cash and cash equivalents | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 11,703 | 21,926 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | 11,703 | 21,926 |
Included in marketable securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 19,970 | 11,327 |
Unrealized Gains | 7 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | 19,977 | 11,327 |
Money market mutual funds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 11,703 | 7,115 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | 11,703 | 7,115 |
U.S. treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 9,504 | 7,980 |
Unrealized Gains | 3 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | 9,507 | 7,980 |
U.S. agency obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 10,466 | 18,158 |
Unrealized Gains | 4 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | $ 10,470 | $ 18,158 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Assets Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | $ 31,680 | $ 33,253 |
U.S. agency obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 10,470 | 18,158 |
Money market mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 11,703 | 7,115 |
U.S. treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 9,507 | 7,980 |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 31,680 | 33,253 |
Fair Value, Measurements, Recurring | U.S. agency obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 14,811 | |
Marketable securities | 10,470 | 3,347 |
Fair Value, Measurements, Recurring | Money market mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 11,703 | 7,115 |
Fair Value, Measurements, Recurring | U.S. treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 9,507 | 7,980 |
Fair Value, Measurements, Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 11,703 | 7,115 |
Fair Value, Measurements, Recurring | Level 1 | U.S. agency obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | |
Marketable securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Money market mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 11,703 | 7,115 |
Fair Value, Measurements, Recurring | Level 1 | U.S. treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 19,977 | 26,138 |
Fair Value, Measurements, Recurring | Level 2 | U.S. agency obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 14,811 | |
Marketable securities | 10,470 | 3,347 |
Fair Value, Measurements, Recurring | Level 2 | Money market mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | U.S. treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | $ 9,507 | $ 7,980 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | ||
Debt securities, available-for-sale, realized gain (loss) | $ 0 | $ 0 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 15,595 | $ 15,002 |
Less: accumulated depreciation | (12,277) | (11,039) |
Property and equipment, net | 3,318 | 3,963 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 3,102 | 3,102 |
Computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 7,373 | 6,860 |
Software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 1,110 | 1,097 |
Internal-use software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 2,925 | 2,925 |
Furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 1,085 | $ 1,018 |
Property and Equipment - Narrat
Property and Equipment - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation expense | $ 0.5 | $ 0.7 | $ 1.4 | $ 2.2 |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) $ in Thousands | Apr. 03, 2017 | Sep. 30, 2019 |
Line of Credit Facility [Line Items] | ||
Long-term debt | $ 5,600 | $ 3,719 |
Debt instrument, term | 36 months | |
Early repayment of senior debt | $ 500 | |
Interest Rate Option A | ||
Line of Credit Facility [Line Items] | ||
Spread on variable rate | 1.00% | |
Interest Rate Option B | ||
Line of Credit Facility [Line Items] | ||
Debt instrument, interest rate, stated percentage | 0.00% |
Debt - Future Maturities (Detai
Debt - Future Maturities (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | Apr. 03, 2017 |
Debt Disclosure [Abstract] | |||
Remainder of 2019 | $ 465 | ||
2020 | 1,859 | ||
2021 | 1,395 | ||
Total future maturities of debt | 3,719 | $ 5,600 | |
Less current maturities | (1,859) | ||
Debt, non-current | $ 1,860 | $ 3,254 | |
Early repayment of senior debt | $ 500 |
Leases - Information About Oper
Leases - Information About Operating Leases (Details) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019USD ($) | Sep. 30, 2019USD ($) | |
Lease cost: | ||
Operating lease cost | $ 1,654 | $ 4,942 |
Variable lease cost | 206 | 586 |
Short-term lease cost | 34 | 41 |
Sublease income | (680) | (1,873) |
Total lease cost | $ 1,214 | 3,696 |
Other information: | ||
Operating cash flows used in the measurement of operating lease liabilities | $ 5,290 | |
Weighted-average remaining lease term - operating leases (in years) | 3 years 1 month 6 days | 3 years 1 month 6 days |
Weighted-average discount rate - operating leases | 7.48% | 7.48% |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands | Oct. 31, 2019 | Sep. 30, 2019 |
Leases [Abstract] | ||
Remainder of 2019 | $ 1,795 | |
2020 | 6,524 | |
2021 | 5,355 | |
2022 | 3,050 | |
2023 | 677 | |
2024 and later | 1,111 | |
Total lease payments | 18,512 | |
Less: Interest | (2,041) | |
Present value of lease liabilities | 16,471 | |
Less: current portion | (5,897) | |
Operating lease liabilities, non-current | 10,574 | |
Lessee, Lease, Description [Line Items] | ||
Lease payments | $ 18,512 | |
Subsequent event | ||
Leases [Abstract] | ||
Total lease payments | $ 3,400 | |
Lessee, Lease, Description [Line Items] | ||
Lease agreement term | 5 years | |
Lease payments | $ 3,400 |
Stock Compensation - Summary of
Stock Compensation - Summary of Restricted Stock Unit Activity (Details) - $ / shares | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Restricted Stock Units | ||
Number of Shares | ||
Balance as of beginning of period (in shares) | 9,528,602 | |
Granted (in shares) | 9,334,664 | |
Vested (in shares) | (3,004,471) | |
Forfeited and canceled (in shares) | (3,502,993) | |
Balance as of end of period (in shares) | 12,355,802 | 12,355,802 |
Weighted- Average Grant Date Fair Value | ||
Balance as of beginning of period (in usd per share) | $ 3.54 | |
Granted (in usd per share) | 2.51 | |
Vested (in usd per share) | 3.77 | |
Forfeited and canceled (in usd per share) | 3.42 | |
Balance as of end of period (in usd per share) | $ 2.71 | $ 2.71 |
Granted (in shares) | 9,334,664 | |
PSUs | ||
Number of Shares | ||
Granted (in shares) | 896,553 | 896,553 |
Weighted- Average Grant Date Fair Value | ||
Granted (in shares) | 896,553 | 896,553 |
Stock Compensation - Narrative
Stock Compensation - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2014 | Sep. 30, 2019 | Jun. 30, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Restricted Stock Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unrecognized compensation cost | $ 30,800 | $ 30,800 | ||||
Employee service share-based compensation, nonvested awards, compensation cost not yet recognized, period for recognition | 2 years 9 months 18 days | |||||
Granted in period (in shares) | 9,334,664 | |||||
Market-Based RSUs | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Granted in period (in shares) | 0 | 519,000 | 0 | |||
Stock-based compensation expense | $ (400) | |||||
Stock Option | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Employee service share-based compensation, nonvested awards, compensation cost not yet recognized, period for recognition | 3 years 7 months 6 days | |||||
Stock granted, value, share-based compensation, gross | $ 2,600 | $ 300 | ||||
Employee service share-based compensation, nonvested awards, compensation not yet recognized, stock options | $ 2,700 | $ 2,700 | ||||
PSUs | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Granted in period (in shares) | 896,553 | 896,553 | ||||
Stock-based compensation expense | $ 100 | $ 300 | ||||
ESPP | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Class B common stock initially reserved and available for issuance under the ESPP | 6,000,000 | |||||
Purchase price as a percent of fair market value | 85.00% |
Stock Compensation - Summary _2
Stock Compensation - Summary of Stock Option Activity (Details) $ / shares in Units, $ in Thousands | 9 Months Ended | |
Sep. 30, 2019USD ($)$ / sharesshares | Dec. 31, 2018USD ($) | |
Options Outstanding | ||
Balance as of beginning of period (in shares) | shares | 6,265,223 | |
Granted (in shares) | shares | 2,792,000 | |
Exercised (in shares) | shares | (1,234,290) | |
Forfeited and canceled (in shares) | shares | (367,391) | |
Balance as of end of period (in shares) | shares | 7,455,542 | |
Weighted- Average Exercise Price | ||
Balance as of beginning of period (in usd per share) | $ / shares | $ 2.65 | |
Granted (in usd per share) | $ / shares | 1.70 | |
Exercised (in usd per share) | $ / shares | 1.56 | |
Forfeited and canceled (in usd per share) | $ / shares | 3.27 | |
Balance as of end of period (in usd per share) | $ / shares | $ 2.45 | |
Aggregate Intrinsic Value (in thousands) | ||
Aggregate Intrinsic Value | $ | $ 760 | $ 3,499 |
Stock Compensation - Assumption
Stock Compensation - Assumptions Related to Share-based Compensation (Details) - Stock Option | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Volatility, minimum | 57.00% | |
Volatility maximum | 58.00% | |
Volatility | 57.00% | |
Expected life (in years) | 6 years 21 days | 6 years 21 days |
Dividend yield | 0.00% | 0.00% |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free interest rate | 1.62% | 2.72% |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free interest rate | 2.57% | 2.74% |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate reconciliation, percent | 0.00% | 0.00% | 0.00% | 0.00% |
Net Loss per Share - Calculatio
Net Loss per Share - Calculation of Basic and Diluted Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Class of Stock [Line Items] | ||||
Net loss | $ (9,336) | $ (7,265) | $ (28,256) | $ (35,667) |
Weighted-average shares used to compute basic and diluted net loss per share (in shares) | 145,701 | 138,490 | 144,434 | 136,735 |
Basic and diluted net loss per share (in usd per share) | $ (0.06) | $ (0.05) | $ (0.20) | $ (0.26) |
Class A | ||||
Class of Stock [Line Items] | ||||
Net loss | $ (2,245) | $ (2,260) | $ (7,009) | $ (12,850) |
Weighted-average shares used to compute basic and diluted net loss per share (in shares) | 35,041 | 43,085 | 35,827 | 49,262 |
Basic and diluted net loss per share (in usd per share) | $ (0.06) | $ (0.05) | $ (0.20) | $ (0.26) |
Class B | ||||
Class of Stock [Line Items] | ||||
Net loss | $ (7,091) | $ (5,005) | $ (21,247) | $ (22,817) |
Weighted-average shares used to compute basic and diluted net loss per share (in shares) | 110,660 | 95,405 | 108,607 | 87,473 |
Basic and diluted net loss per share (in usd per share) | $ (0.06) | $ (0.05) | $ (0.20) | $ (0.26) |
Net Loss per Share - Summary of
Net Loss per Share - Summary of Antidilutive Securities (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Securities excluded from the calculation of diluted net loss per share (in shares) | 19,926 | 19,703 | 19,926 | 19,703 |
Stock options and restricted stock units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Securities excluded from the calculation of diluted net loss per share (in shares) | 19,811 | 19,588 | 19,811 | 19,588 |
Warrants | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Securities excluded from the calculation of diluted net loss per share (in shares) | 115 | 115 | 115 | 115 |
Restructuring and Related Activ
Restructuring and Related Activities (Details) - USD ($) $ in Millions | Jul. 30, 2018 | Dec. 31, 2018 | Sep. 30, 2018 |
Restructuring and Related Activities [Abstract] | |||
Reduction in workforce, percent | 12.00% | ||
Restructuring charges | $ 2.1 | ||
Restructuring charges paid | $ 0.7 | $ 1.4 |
Subsequent Event (Details)
Subsequent Event (Details) - USD ($) $ in Thousands | Oct. 31, 2019 | Sep. 30, 2019 |
Subsequent Event [Line Items] | ||
License fees | $ 121,900 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-10-01 | ||
Subsequent Event [Line Items] | ||
Revenue, remaining performance obligation, expected timing of satisfaction, period | 12 months | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | Subsequent event | License fee | ||
Subsequent Event [Line Items] | ||
License fees | $ 168,000 | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 30 months |
Uncategorized Items - cslt-2019
Label | Element | Value |
Restricted Cash | us-gaap_RestrictedCash | $ 1,325,000 |
Restricted Cash | us-gaap_RestrictedCash | $ 1,325,000 |