Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 12, 2018 | Jun. 30, 2017 | |
Document and Entity Information [Line Items] | |||
Entity Registrant Name | APPIAN CORP | ||
Entity Central Index Key | 1,441,683 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Non-accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Trading Symbol | APPN | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Class A Common Stock | |||
Document and Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 13,178,927 | ||
Entity Public Float | $ 130,453,125 | ||
Class B Common Stock | |||
Document and Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 47,562,464 | ||
Entity Public Float | $ 187,610,252 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets | ||
Cash and cash equivalents | $ 73,758 | $ 31,143 |
Accounts receivable, net of allowance of $400 | 55,315 | 46,814 |
Deferred commissions, current | 9,117 | 7,146 |
Prepaid expenses and other current assets | 7,032 | 3,281 |
Total current assets | 145,222 | 88,384 |
Property and equipment, net | 2,663 | 3,101 |
Deferred commissions, net of current portion | 12,376 | 10,860 |
Deferred tax assets | 281 | 12 |
Other assets | 510 | 381 |
Total assets | 161,052 | 102,738 |
Current liabilities | ||
Accounts payable | 5,226 | 5,057 |
Accrued expenses | 6,467 | 2,860 |
Accrued compensation and related benefits | 12,075 | 9,554 |
Deferred revenue, current | 70,165 | 52,000 |
Current portion of long-term debt | 0 | 6,111 |
Other current liabilities | 1,182 | 437 |
Total current liabilities | 95,115 | 76,019 |
Long-term debt, net of current portion | 0 | 13,889 |
Deferred tax liabilities | 87 | 32 |
Deferred revenue, net of current portion | 18,922 | 18,108 |
Preferred stock warrant liability | 0 | 850 |
Other long-term liabilities | 1,404 | 1,917 |
Total liabilities | 115,528 | 110,815 |
Stockholders’ equity (deficit) | ||
Common stock | 0 | 3 |
Additional paid-in capital | 141,268 | 0 |
Accumulated other comprehensive income | 439 | 1,330 |
Accumulated deficit | (96,189) | (64,825) |
Total stockholders’ equity (deficit) | 45,524 | (63,492) |
Total liabilities, convertible preferred stock and stockholders’ equity (deficit) | 161,052 | 102,738 |
Series A Convertible Preferred Stock | ||
Convertible preferred stock | ||
Preferred stock | 0 | 17,915 |
Series B Convertible Preferred Stock | ||
Convertible preferred stock | ||
Preferred stock | 0 | 37,500 |
Class A Common Stock | ||
Stockholders’ equity (deficit) | ||
Common stock | 1 | 0 |
Class B Common Stock | ||
Stockholders’ equity (deficit) | ||
Common stock | $ 5 | $ 0 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Allowance for doubtful accounts | $ 400 | $ 400 |
Common stock, par value (in usd per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 0 | 61,462,320 |
Common stock, shares issued (in shares) | 0 | 34,274,718 |
Common stock, shares outstanding (in shares) | 0 | 34,274,718 |
Series A Convertible Preferred Stock | ||
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 0 | 12,127,468 |
Preferred stock, shares issued | 0 | 12,043,108 |
Preferred stock, shares outstanding | 0 | 12,043,108 |
Series B Convertible Preferred Stock | ||
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 0 | 6,120,050 |
Preferred stock, shares issued | 0 | 6,120,050 |
Preferred stock, shares outstanding | 0 | 6,120,050 |
Class A Common Stock | ||
Common stock, par value (in usd per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 500,000,000 | 0 |
Common stock, shares issued (in shares) | 13,030,081 | 0 |
Common stock, shares outstanding (in shares) | 13,030,081 | 0 |
Class B Common Stock | ||
Common stock, par value (in usd per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 100,000,000 | 0 |
Common stock, shares issued (in shares) | 47,569,796 | 0 |
Common stock, shares outstanding (in shares) | 47,569,796 | 0 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenue: | |||||||||||
Subscriptions, software and support | $ 25,398 | $ 22,660 | $ 22,012 | $ 21,444 | $ 19,365 | $ 17,668 | $ 17,321 | $ 15,618 | $ 91,514 | $ 69,972 | $ 53,207 |
Professional services | 25,164 | 21,988 | 21,186 | 16,885 | 14,382 | 13,077 | 15,146 | 20,346 | 85,223 | 62,951 | 57,997 |
Total revenue | 50,562 | 44,648 | 43,198 | 38,329 | 33,747 | 30,745 | 32,467 | 35,964 | 176,737 | 132,923 | 111,204 |
Cost of revenue: | |||||||||||
Subscriptions, software and support | 2,488 | 2,341 | 2,488 | 2,062 | 1,929 | 1,890 | 1,836 | 1,782 | 9,379 | 7,437 | 6,079 |
Professional services | 16,169 | 14,272 | 14,149 | 10,628 | 8,670 | 9,315 | 11,723 | 12,978 | 55,218 | 42,686 | 42,402 |
Total cost of revenue | 18,657 | 16,613 | 16,637 | 12,690 | 10,599 | 11,205 | 13,559 | 14,760 | 64,597 | 50,123 | 48,481 |
Gross profit | 31,905 | 28,035 | 26,561 | 25,639 | 23,148 | 19,540 | 18,908 | 21,204 | 112,140 | 82,800 | 62,723 |
Operating expenses: | |||||||||||
Sales and marketing | 22,463 | 19,725 | 22,775 | 17,003 | 14,660 | 14,480 | 13,831 | 11,166 | 81,966 | 54,137 | 38,300 |
Research and development | 8,968 | 8,596 | 9,971 | 7,300 | 6,069 | 6,702 | 5,296 | 4,927 | 34,835 | 22,994 | 16,750 |
General and administrative | 7,429 | 6,237 | 8,635 | 4,849 | 4,260 | 4,531 | 4,318 | 3,930 | 27,150 | 17,039 | 12,515 |
Total operating expenses | 38,860 | 34,558 | 41,381 | 29,152 | 24,989 | 25,713 | 23,445 | 20,023 | 143,951 | 94,170 | 67,565 |
Operating loss | (6,955) | (6,523) | (14,820) | (3,513) | (1,841) | (6,173) | (4,537) | 1,181 | (31,811) | (11,370) | (4,842) |
Other (income) expense: | |||||||||||
Other (income) expense, net | (380) | (425) | (734) | (499) | 1,663 | (67) | 733 | (537) | (2,038) | 1,792 | 1,579 |
Interest expense | 22 | (2) | 197 | 256 | 256 | 243 | 241 | 242 | 473 | 982 | 188 |
Total other expense (income) | (358) | (427) | (537) | (243) | 1,919 | 176 | 974 | (295) | (1,565) | 2,774 | 1,767 |
Total | (6,597) | (6,096) | (14,283) | (3,270) | (3,760) | (6,349) | (5,511) | 1,476 | (30,246) | (14,144) | (6,609) |
Income tax expense (benefit) | 272 | 188 | 176 | 125 | 423 | (1,610) | (1,217) | 721 | 761 | (1,683) | 378 |
Net loss | $ (6,869) | $ (6,284) | $ (14,459) | $ (3,395) | $ (4,183) | $ (4,739) | $ (4,294) | $ 755 | (31,007) | (12,461) | (6,987) |
Accretion of dividends on convertible preferred stock | 357 | 857 | 861 | ||||||||
Net loss attributable to common stockholders | $ (31,364) | $ (13,318) | $ (7,848) | ||||||||
Net loss per share attributable to common stockholders: | |||||||||||
Basic and diluted (in dollar per share) | $ (0.63) | $ (0.39) | $ (0.23) | ||||||||
Weighted average common shares outstanding: | |||||||||||
Basic and diluted (in shares) | 49,529,833 | 34,274,718 | 34,274,718 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (31,007) | $ (12,461) | $ (6,987) |
Comprehensive loss, net of income taxes: | |||
Foreign currency translation adjustment | (891) | 359 | 159 |
Total other comprehensive loss, net of income taxes | $ (31,898) | $ (12,102) | $ (6,828) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Restricted Stock Units | Restricted Stock UnitsCommon Stock |
Balance (in shares) at Dec. 31, 2014 | 34,274,718 | ||||||
Balance at Dec. 31, 2014 | $ (42,844) | $ 3 | $ 812 | $ (43,659) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net loss | (6,987) | (6,987) | |||||
Accretion of dividends on convertible preferred stock | (861) | (861) | |||||
Other comprehensive loss | 159 | 159 | |||||
Balance (in shares) at Dec. 31, 2015 | 34,274,718 | ||||||
Balance at Dec. 31, 2015 | (50,533) | $ 3 | 971 | (51,507) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net loss | (12,461) | (12,461) | |||||
Accretion of dividends on convertible preferred stock | (857) | (857) | |||||
Other comprehensive loss | 359 | 359 | |||||
Balance (in shares) at Dec. 31, 2016 | 34,274,718 | ||||||
Balance at Dec. 31, 2016 | (63,492) | $ 3 | 1,330 | (64,825) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net loss | (31,007) | (31,007) | |||||
Accretion of dividends on convertible preferred stock | (357) | (357) | |||||
Conversion of convertible preferred stock to common stock (in shares) | 18,163,158 | ||||||
Conversion of convertible preferred stock to common stock | 48,207 | $ 2 | $ 48,205 | ||||
Conversion of convertible preferred stock warrant to common stock warrant | 1,191 | 1,191 | |||||
Issuance of common stock from initial public offering, net of issuance costs (in shares) | 7,187,500 | ||||||
Issuance of common stock from initial public offering, net of issuance costs | $ 77,789 | $ 1 | 77,788 | ||||
Exercise of common stock warrant (in shares) | 79,363 | ||||||
Issuance of common stock to directors (in shares) | 14,087 | ||||||
Vesting of restricted stock units (in shares) | 4,930 | 4,930 | |||||
Exercise of stock options (in shares) | 876,121 | 876,121 | |||||
Exercise of stock options | $ 1,108 | 1,108 | |||||
Stock-based compensation expense | 12,976 | 12,976 | |||||
Other comprehensive loss | (891) | (891) | |||||
Balance (in shares) at Dec. 31, 2017 | 60,599,877 | ||||||
Balance at Dec. 31, 2017 | $ 45,524 | $ 6 | $ 141,268 | $ 439 | $ (96,189) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities: | |||
Net loss | $ (31,007) | $ (12,461) | $ (6,987) |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Depreciation and amortization | 886 | 764 | 763 |
Bad debt expense | 62 | 7 | (22) |
Deferred income taxes | (251) | (1,122) | (291) |
Stock-based compensation | 12,976 | 0 | |
Fair value adjustment for warrant liability | 341 | 200 | 299 |
Loss on extinguishment of debt | 384 | 0 | 0 |
Changes in assets and liabilities: | |||
Accounts receivable | (9,716) | (11,154) | (6,639) |
Prepaid expenses and other assets | (4,162) | (1,665) | (988) |
Deferred commissions | (3,487) | (5,335) | (3,965) |
Accounts payable and accrued expenses | 4,128 | 1,287 | 1,058 |
Accrued compensation and related benefits | 2,365 | 3,717 | (968) |
Other current liabilities | 383 | 19 | (251) |
Deferred revenue | 18,344 | 17,410 | 15,490 |
Other long-term liabilities | (374) | 577 | 356 |
Net cash used in operating activities | (9,128) | (7,756) | (2,145) |
Cash flows from investing activities: | |||
Purchases of property and equipment | (433) | (984) | (524) |
Net cash used in investing activities | (433) | (984) | (524) |
Cash flows from financing activities: | |||
Proceeds from initial public offering, net of underwriting discounts | 80,213 | 0 | 0 |
Payment of initial public offering costs | (2,424) | 0 | 0 |
Payment of dividend to Series A preferred stockholders | (7,565) | 0 | 0 |
Proceeds from exercise of common stock options | 1,108 | 0 | 0 |
Proceeds from issuance of long-term debt, net of debt issuance costs | 19,616 | 20,000 | 10,000 |
Repayment of long-term debt | (40,000) | (10,000) | 0 |
Net cash provided by financing activities | 50,948 | 10,000 | 10,000 |
Effect of foreign exchange rate changes on cash and cash equivalents | 1,228 | (1,510) | (930) |
Net increase (decrease) in cash and cash equivalents | 42,615 | (250) | 6,401 |
Cash and cash equivalents, beginning of period | 31,143 | 31,393 | 24,992 |
Cash and cash equivalents, end of period | 73,758 | 31,143 | 31,393 |
Supplemental disclosure of cash flow information: | |||
Cash paid for interest | 515 | 895 | 193 |
Cash paid for income taxes | 615 | 610 | 1,055 |
Supplemental disclosure of non-cash financing activities: | |||
Accretion of dividends on convertible preferred stock | 357 | 857 | 861 |
Conversion of Convertible Preferred Stock to Common Stock | |||
Supplemental disclosure of non-cash financing activities: | |||
Conversion of convertible stock | 48,207 | 0 | 0 |
Conversion of Convertible Preferred Stock Warrant to Common Stock Warrant | |||
Supplemental disclosure of non-cash financing activities: | |||
Conversion of convertible stock | $ 1,191 | $ 0 | $ 0 |
Organization and Description of
Organization and Description of Business | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Organization and Description of Business | Organization and Description of Business Appian Corporation (together with its subsidiaries, “Appian,” the “Company,” “we” or “our”) provides a leading low-code software development platform that enables organizations to rapidly develop powerful and unique applications. The applications created on our platform help companies drive digital transformation and competitive differentiation. We were incorporated in the state of Delaware in August 1999. We are headquartered in Reston, Virginia and have offices in Canada, Switzerland, the United Kingdom, France, Germany, the Netherlands, Italy, and Australia. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Basis of Presentation The accompanying consolidated financial statements and footnotes have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) as contained in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (the “Codification” or “ASC”). Use of Estimates The preparation of our consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and judgments that affect the amounts reported in these consolidated financial statements and accompanying notes. Although we believe that the estimates we use are reasonable, due to the inherent uncertainty involved in making these estimates, actual results reported in future periods could differ from those estimates. Significant estimates embedded in the consolidated financial statements include revenue recognition, income taxes and the related valuation allowance, stock-based compensation and fair value measurements for our common stock and preferred stock warrant. Principles of Consolidation The accompanying consolidated financial statements include the accounts of Appian and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Initial Public Offering In May 2017, we completed an initial public offering, or IPO, in which we sold 7,187,500 shares of our newly-authorized Class A common stock at an initial price to the public of $12.00 per share. We received net proceeds of $77.8 million , after deducting underwriting discounts and commissions and offering expenses paid and payable by us, from sales of our shares in the IPO. Immediately prior to the completion of the IPO, (1) all shares of common stock then outstanding were converted into Class B common stock on a one-for-one basis, (2) a warrant to purchase shares of convertible preferred stock was converted into a warrant to purchase shares of Class B common stock and (3) all shares of convertible preferred stock then outstanding were converted into shares of our common stock on a one-for-one basis, and then reclassified as shares of Class B common stock. See Note 8 for further discussion of the convertible preferred stock and Note 9 for further discussion of the warrant. Deferred offering costs of $2.4 million , consisting of legal, accounting and other fees and costs related to our IPO, were recorded to additional paid-in capital as a reduction of the proceeds upon the closing of our IPO. Secondary Offering In November 2017, we completed a secondary offering in which stockholders sold an aggregate of 4,370,000 shares of our Class A common stock at a price of $20.25 per share. We did not receive any proceeds from the sale of the shares of our Class A common stock offered in the secondary offering. Revenue Recognition We generate revenue primarily through sales of subscriptions to our platform, as well as professional services. We recognize revenue when all of the following conditions are met: (1) there is persuasive evidence of an arrangement; (2) the service or product has been provided to the customer; (3) the amount of fees to be paid by the customer is fixed or determinable; and (4) the collection of related fees is reasonably assured. If collection is not reasonably assured, we defer revenue recognition until collectability becomes reasonably assured. Our arrangements do not contain general rights of return. Revenue is recognized net of any taxes collected from customers and subsequently remitted to governmental authorities. Subscriptions, Software and Support Revenue Subscriptions, software and support revenue is primarily related to (1) software as a service (“SaaS”) subscriptions bundled with maintenance and support and hosting services and (2) term license subscriptions bundled with maintenance and support. To a lesser extent, we also generate revenue from the sale of perpetual software licenses and associated maintenance and support. Historically, we licensed our software primarily under perpetual licenses, but over time we transitioned from perpetual licenses to subscriptions. As a result, revenue from our perpetual software licenses was less than 1.0% of our total revenue for 2017 and 2016 , respectively, and 1.9% of our total revenue in 2015 . We generally charge subscription fees on a per-user basis. We bill customers and collect payment for subscriptions to our platform in advance on a monthly, quarterly or annual basis. In certain instances, we have had customers pay their entire contract up front. SaaS Subscriptions Our SaaS subscription revenue is derived from customers accessing our cloud offering pursuant to contracts that are generally one to five years in length. We perform all required maintenance and support for our cloud offering and we do not separately charge customers for hosting costs. In these arrangements, our customers do not have the right to take the software on-premises and, as a result, such arrangements are not accounted for within the scope of the software revenue guidance. Revenue from SaaS subscriptions is recognized ratably over the term of the subscription, beginning with the date our service is made available to our customer. Term License Subscriptions Our term license subscription revenue is derived from customers with on-premises installations of our platform pursuant to contracts that are generally one to five years in length. Customers with term license subscriptions have the right to use our software and receive maintenance and support. Since we do not sell maintenance and support separately from the subscription, revenue for the term license subscription and maintenance and support is recognized ratably over the term of the subscription, upon delivery of the platform to the customer when sold on a standalone basis. Professional Services Our professional services revenue is comprised of fees for consulting services, including application development and deployment assistance and training related to our platform. Our professional services are not essential to the functionality of our platform because the platform is ready for the customer’s use immediately upon delivery and is not modified or customized in any manner. Consulting services are billed under both time-and-material and fixed-fee arrangements. For standalone time-and-material contracts, we recognize revenue at contractually agreed upon billing rates applied to hours performed. For standalone fixed-fee contracts, we also recognize revenue as the work is performed using the proportional performance method of accounting. Training revenue is recognized when the associated training services are delivered. Training is also sold in the form of a subscription arrangement where a customer agrees to pay an annual fixed fee for a fixed number of users to have access to all of our training offerings during the year. Revenue from training subscription agreements is recognized ratably over the subscription period. We defer recognition of revenue from work performed on pending contract modifications until the period in which the modifications are accepted and funding is approved by the customer. Costs of work performed on pending contract modifications are expensed as incurred. Multiple Element Arrangements Our multiple element arrangements are from SaaS subscriptions and term license subscriptions that are generally sold in combination with maintenance and support service and frequently with professional services. SaaS Subscriptions For multiple element arrangements involving SaaS subscriptions that include professional services in addition to the subscription to our platform, we evaluate each element to determine whether it represents a separate unit of accounting. Because there are third-party vendors who routinely sell and provide the same professional services to our customers, our professional services are deemed to have standalone value apart from the SaaS subscription. Additionally, we offer both SaaS subscriptions and professional services on a standalone basis. Professional services revenue is therefore accounted for separately from subscription fees and recognized as the professional services are performed. We allocate revenue to the elements based on the selling price hierarchy using vendor-specific objective evidence (“VSOE”) of selling price, third-party evidence (“TPE”) of selling price, or if neither exists, best estimated selling price (“BESP”). In cases where we do not have VSOE or TPE of the elements of our arrangements, we use BESP to allocate revenue. We determine BESP for a service by considering multiple factors including, but not limited to, evaluating the weighted average of actual sales prices and other factors such as gross margin objectives, pricing practices and growth strategy. Pricing practices taken into consideration include historic contractually stated prices, volume discounts where applicable and our price lists. While we believe we can make reliable estimates regarding these matters, these estimates are inherently subjective. Once the revenue is allocated to these elements, revenue is recognized as such services are provided. Term License Subscriptions For multiple element arrangements involving term license subscriptions, maintenance and support and professional services, we do not have VSOE of fair value for the maintenance and support. Our term license subscriptions are generally not sold on a standalone basis, and therefore, we have not established VSOE of fair value for the subscriptions. Consequently, for our bundled arrangements that include certain professional services, there are two undelivered elements for which VSOE of fair value has not been established and, therefore, we utilize the combined services approach and defer all revenue until the software has been delivered and the provision of all services has commenced. We then recognize the entire fee from the arrangement ratably over the remaining period of the arrangement, assuming all other software revenue recognition criteria have been met. Deferred Revenue Deferred revenue primarily consists of amounts billed or billable in advance of revenue recognition from our subscriptions, software, and support and professional services described above. Deferred revenue is recognized as the revenue recognition criteria are met. Cost of Revenue Cost of Subscriptions, Software and Support Revenue Cost of subscriptions, software and support revenue consists primarily of fees paid to our third-party managed hosting providers and other third-party service providers, personnel costs, including payroll and benefits for our technology operations and customer support teams, and allocated facility costs and overhead. Cost of Professional Services Revenue Cost of professional services revenue includes all direct and indirect costs to deliver our professional services and training, including employee compensation for our global professional services and training personnel, travel costs, third-party contractor costs and allocated facility costs and overhead. Concentration of Credit Risk Our financial instruments that are exposed to concentration of credit risk consist primarily of cash and cash equivalents and trade accounts receivable. Cash deposits may be in excess of insured limits. We believe that the financial institutions that hold our cash deposits are financially sound and, accordingly, minimal credit risk exists with respect to these balances. With regard to our customers, credit evaluation and account monitoring procedures are used to minimize the risk of loss. We believe that no additional credit risk beyond amounts provided for collection loss are inherent in accounts receivable. Revenue generated from government agencies represented 15.4% , 26.2% and 32.7% of our revenue for the years ended December 31, 2017 , 2016 and 2015 , respectively, of which the top three federal government agencies generated 8.4% , 17.7% and 20.8% of our revenue for the years ended December 31, 2017 , 2016 and 2015 , respectively. Additionally, 27.0% , 19.5% and 19.9% of our revenue during the years ended December 31, 2017 , 2016 and 2015 , respectively, was generated from foreign customers. One customer accounted for 7.0% and 17.2% of accounts receivable at December 31, 2017 and December 31, 2016 , respectively. Cash and Cash Equivalents We consider all highly liquid investments with an original or remaining maturity of three months or less at the date of purchase, as well as overnight repurchase investments, to be cash equivalents. Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are stated at realizable value, net of an allowance for doubtful accounts. The allowance for doubtful accounts is based on our assessment of the collectability of accounts. We regularly review the composition of the accounts receivable aging, historical bad debts, changes in payment patterns, customer creditworthiness and current economic trends. If the financial condition of our customers were to deteriorate, resulting in their inability to make required payments, additional provisions for doubtful accounts would be required and would increase bad debt expense. To date, our allowance and related bad debt write-offs have been nominal. There was no change in the allowance for doubtful accounts from December 31, 2016 to December 31, 2017 . Deferred Commissions Deferred commissions are the incremental costs that are directly associated with subscription agreements with customers and consist of sales commissions paid to our direct sales force. Commissions are considered direct and incremental and as such are deferred and amortized over the terms of the related customer contracts consistent with the related revenue. Amortization of deferred commissions is included in sales and marketing expense in the accompanying consolidated statements of operations. Commission expense was $11.8 million , $6.5 million and $4.6 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. Property and Equipment Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. Significant additions or improvements extending the useful life of an asset are capitalized, while repairs and maintenance costs which do not significantly improve the related assets or extend their useful lives are charged to expense as incurred. Asset Category Useful Life (in years) Computer software 3 Computer hardware 3 Equipment 5 Office furniture and fixtures 10 Leasehold improvements Shorter of useful life of assets or lease term Impairment of Long-Lived Assets Long-lived assets and certain intangible assets are reviewed for impairment whenever events or circumstances indicate that the carrying amount of an asset may not be recoverable through undiscounted cash flows from the use of the assets. If such assets are considered to be impaired, the assets are written down to their estimated fair value. No indicators of impairment were identified for the years ended December 31, 2017 , 2016 and 2015 . Fair Value of Financial Instruments The carrying amounts of our cash and cash equivalents, accounts receivable, accounts payable and accrued expenses approximate fair value as of December 31, 2017 and December 31, 2016 because of the relatively short duration of these instruments. The carrying value of our long-term debt as of December 31, 2016 approximated fair value given interest rates for similar debt instruments available to the Company. We use a three-tier fair value hierarchy to classify and disclose all assets and liabilities measured at fair value on a recurring basis, as well as assets and liabilities measured at fair value on a non-recurring basis, in periods subsequent to their initial measurement. The hierarchy requires us to use observable inputs when available, and to minimize the use of unobservable inputs when determining fair value. The three tiers are defined as follows: • Level 1. Observable inputs based on unadjusted quoted prices in active markets for identical assets or liabilities; • Level 2. Inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and • Level 3. Unobservable inputs for which there is little or no market data, which require us to develop our own assumptions. Assets and Liabilities Measured at Fair Value on a Recurring Basis We evaluate our financial assets and liabilities subject to fair value measurements on a recurring basis to determine the appropriate level in which to classify them for each reporting period. This determination requires significant judgments to be made. After the reclassification of the convertible preferred stock warrant in May 2017, we did not have any assets or liabilities subject to fair value measurements as of December 31, 2017 . See Note 9 for further discussion of the warrant reclassification. The following table summarizes the conclusions reached as of December 31, 2016 (in thousands): December 31, 2016 Level 1 Level 2 Level 3 Liabilities: Series A convertible preferred stock warrant(1) $ 850 $ — $ — $ 850 $ 850 $ — $ — $ 850 (1) In order to determine the fair value of the convertible preferred stock warrant, we used the Black-Scholes option pricing model (“OPM”). Significant inputs for the OPM included an estimate of the fair value of the Series A convertible preferred stock, the remaining contractual life of the warrant, an estimate of the timing of a liquidity event, a risk-free rate of interest and an estimate of our stock volatility using the volatilities of guideline peer companies. Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs The following table presents the changes in our Level 3 instruments measured at fair value on a recurring basis during the years ended December 31, 2017 , 2016 and 2015 (in thousands): Year Ended December 31, 2017 2016 2015 Balance as of January 1, $ 850 $ 650 $ 351 Change in fair value of warrant liability 341 200 299 Reclassification of warrant liability to equity (1,191 ) — — Balance as of December 31, $ — $ 850 $ 650 Stock-Based Compensation We account for stock-based compensation expense related to stock-based awards based on the estimated fair value of the award on the grant date. We calculate the fair value of stock options using the Black-Scholes OPM. For service-based awards, stock-based compensation expense is recognized on a straight-line basis over the requisite service period. For performance-based awards, stock-based compensation expense is recognized using the accelerated attribution method, based on the probability of satisfying the performance condition. For awards that contain market conditions, compensation expense is measured using a Monte Carlo simulation model and recognized using the accelerated attribution method over the derived service period based on the expected market performance as of the grant date. For restricted stock units, stock-based compensation expense is recognized on a straight-line basis over the requisite service period. We account for forfeitures as they occur, rather than estimating expected forfeitures. Basic and Diluted Loss per Common Share We use the two-class method to compute net loss per common share because we have issued securities, other than common stock, that contractually entitle the holders to participate in dividends and earnings. These participating securities include our convertible preferred stock which have non-forfeitable rights to participate in any dividends declared on our common stock. The two-class method requires earnings for the period to be allocated between common stock and participating securities based upon their respective rights to receive distributed and undistributed earnings. Under the two-class method, for periods with net income, basic net income per common share is computed by dividing the net income attributable to common stockholders by the weighted average number of shares of common stock outstanding during the period. Net income attributable to common stockholders is computed by subtracting from net income the portion of current year earnings that the participating securities would have been entitled to receive pursuant to their dividend rights had all of the year’s earnings been distributed. No such adjustment to earnings is made during periods with a net loss, as the holders of the participating securities have no obligation to fund losses. Diluted net income per common share is computed under the two-class method by using the weighted average number of shares of common stock outstanding, plus, for periods with net income attributable to common stockholders, the potential dilutive effects of stock options and warrants. In addition, we analyze the potential dilutive effect of the outstanding participating securities under the “if-converted” method when calculating diluted earnings per share, in which it is assumed that the outstanding participating securities convert into common stock at the beginning of the period or date of issuance, if later. We report the more dilutive of the approaches (two-class or “if-converted”) as our diluted net income per share during the period. Due to net losses for the years ended December 31, 2017 , 2016 and 2015 , basic and diluted net loss per share were the same, as the effect of potentially dilutive securities would have been anti-dilutive. Income Taxes We use the asset and liability method of accounting for income taxes in which deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases. We measure deferred tax assets and liabilities using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be reversed. We recognize the effect on deferred tax assets and liabilities of a change in tax rates as income and expense in the period that includes the enactment date. A valuation allowance is established if it is more likely than not that all or a portion of the deferred tax asset will not be realized. Our tax positions are subject to income tax audits by multiple tax jurisdictions throughout the world. We recognize the tax benefit of an uncertain tax position only if it is more likely than not the position is sustainable upon examination by the taxing authority. We measure the tax benefit recognized as the largest amount of benefit which is more likely than not to be realized upon settlement with the taxing authority. We recognize penalties and interest related to unrecognized tax benefits as income tax expense. We calculate the current and deferred income tax provision based on estimates and assumptions that could differ from the actual results reflected in income tax returns filed in subsequent years and record adjustments based on filed income tax returns when identified. The amount of income taxes paid is subject to examination by U.S. federal, state and foreign tax authorities. The estimate of the potential outcome of any uncertain tax issue is subject to our assessment of relevant risks, facts and circumstances existing at that time. To the extent the assessment of such tax position changes, we record the change in estimate in the period in which we make that determination. As described in more detail below under "Recent Accounting Pronouncements" and in Note 6, the Tax Cuts and Jobs Act (the “TCJA”) was enacted on December 22, 2017, substantially changing the U.S. federal tax system. We are required to complete our tax accounting for the TCJA in the period when it has obtained, prepared, and analyzed the information to complete the income tax accounting. We have not completed our accounting for the tax effects of enactment of the TCJA; however, we have made reasonable estimates of the effects of the TCJA on our financial statements which are included as a component of income tax expense. Segment Reporting Operating segments are defined as components of an enterprise for which discrete financial information is available that is evaluated regularly by the chief operating decision maker (“CODM”) for purposes of allocating resources and evaluating financial performance. Our CODM is our chief executive officer, who reviews financial information presented on a companywide basis for purposes of allocating resources and evaluating financial performance. As such, our operations constitute a single operating segment and one reportable segment. Foreign Currency Our operations located outside of the United States where the local currency is the functional currency are translated into U.S. dollars using the current rate method. Results of operations are translated at the average rate of exchange for the period. Assets and liabilities are translated at the closing rates on the balance sheet date. Gains and losses on translation of these accounts are accumulated and reported as a separate component of stockholders’ deficit and other comprehensive income (loss). Gains and losses on foreign currency transactions are recognized in the accompanying consolidated statements of operations as a component of other expense, net. Transaction gains and losses from transactions denominated in foreign currencies resulted in net transaction gains of $2.6 million for the year ended December 31, 2017 and net transaction losses of $1.5 million and $1.3 million for the years ended December 31, 2016 and 2015 , respectively. Research and Development Research and development expenses include payroll, employee benefits, and other headcount-related costs associated with product development. Our product utilizes a common codebase, whether accessed by customers via the cloud or via an on-premises installation. Since our software is sold and licensed externally, we consider our software as external-use software for purposes of applying the capitalized software development guidance. Product development costs are expensed as incurred until technological feasibility has been established, which we define as the completion of all planning, designing, coding and testing activities that are necessary to establish products that meet design specifications including functions, features and technical performance requirements. We have determined that technological feasibility for our software products is reached shortly before they are released for sale. Costs incurred after technological feasibility is established are not significant, and accordingly we expense all research and development costs when incurred. Advertising We expense advertising costs as they are incurred. Advertising expenses were $3.0 million , $1.4 million and $0.5 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. Emerging Growth Company Status We are an “emerging growth company” as defined in the Jumpstart Our Business Startups Act (“JOBS Act”). The JOBS Act provides that an emerging growth company can take advantage of an extended transition period for complying with new or revised accounting standards. Thus, an emerging growth company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We have elected to avail ourselves of this extended transition period and, as a result, we will not adopt new or revised accounting standards on the relevant dates on which adoption of such standards is required for other public companies. Recent Accounting Pronouncements Adopted On December 22, 2017, the TCJA was enacted, substantially changing the U.S. Federal tax system. Notable provisions of the TCJA include the reduction of the corporate tax rate from 35% to 21% beginning in 2018, the imposition of a one-time transition tax on unremitted cumulative non-U.S. earnings of foreign subsidiaries, and the implementation of a territorial tax system. While the changes from the TCJA are generally effective beginning in 2018, U.S. GAAP accounting for income taxes requires the effect of a change in tax laws or rates to be recognized in income from continuing operations for the period that includes the enactment date. Due to the complexities involved in accounting for the enactment of the TCJA, the Securities and Exchange Commission Staff Accounting Bulletin No. 118 (“SAB 118”) allows us to record provisional amounts in earnings for the year ending December 31, 2017. Where reasonable estimates can be made, the provisional accounting should be based on such estimates. When no reasonable estimate can be made, the provisional accounting may be based on the tax law in effect before the TCJA. We are required to complete our tax accounting for the TCJA in the period when we have obtained, prepared, and analyzed the information to complete the income tax accounting. We have not completed our accounting for the tax effects of enactment of the TCJA; however, we have made reasonable estimates of the effects of the TCJA on our consolidated financial statements which are included as a component of income tax expense. Not Yet Adopted In May 2014, the FASB issued ASU No. 2014-9, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-9”), which provides new guidance for revenue recognition. ASU 2014-9 provides that an entity 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. ASU 2014-9 also requires improved disclosures to help users of financial statements better understand the nature, amount, timing, and uncertainty of revenue that is recognized. Entities have the option of using either a full retrospective or modified retrospective approach for the adoption of the standard. In March 2016, the FASB issued ASU No. 2016-8, Principal Versus Agent Considerations (Reporting Revenue Gross Versus Net) (“ASU 2016-8”), which clarifies implementation guidance on principal versus agent considerations in ASU 2014-9. In April 2016, the FASB issued ASU No. 2016-10, Identifying Performance Obligations and Licensing (“ASU 2016-10”), which clarifies the identification of performance obligations and the licensing implementation guidance in ASU 2014-9. In addition, in May 2016, the FASB issued ASU No. 2016-12, Narrow-Scope Improvements and Practical Expedients (“ASU 2016-12”), which clarifies the guidance on assessing collectibility, presentation of sales taxes, noncash consideration and completed contracts and contract modifications at transition. For public entities, the new standard is effective for annual periods and interim periods within those annual periods, beginning after December 15, 2017. For all other entities, the new standard is effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods beginning after December 15, 2019. We intend to avail ourselves of the JOBS Act extended transition period that permits us to defer adoption until January 1, 2019. We are currently evaluating the impact the adoption of these standards will have on our consolidated financial statements. We currently plan to adopt the new standard using the full retrospective approach; however, the decision regarding the adoption method has not been finalized. Our final determination will depend on a number of factors such as the significance of the impact of the new standard on our financial results, system readiness, including that of software procured from third-party providers, and our ability to accumulate and analyze the information necessary to assess the impact on prior period financial statements, as necessary. We continue to evaluate the impact of the new standard on our accounting policies, processes, and system requirements. We have assigned internal resources in addition to the engagement of third-party service providers to assist in the evaluation. Furthermore, we have made and will continue to make investments in systems to enable timely and accurate reporting under the new standard. While we continue to assess all potential impacts under the new standard there is the potential for significant impact to the timing of recognition of revenue, particularly term license subscriptions and professional services revenue. We also expect an impact to our accounting for contract acquisition costs, both with respect to the amounts that will |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment consisted of the following as of December 31 (in thousands): 2017 2016 Computer software $ 1,727 $ 1,701 Computer hardware 1,644 1,408 Leasehold improvements 4,226 4,098 Office furniture and fixtures 510 464 Equipment 131 116 8,238 7,787 Less: accumulated depreciation (5,575 ) (4,686 ) Property and equipment, net $ 2,663 $ 3,101 Depreciation and amortization expense totaled $0.9 million for the year ended December 31, 2017 and $0.8 million for each of the years ended December 31, 2016 and 2015 . |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Dec. 31, 2017 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Accrued Expenses Accrued expenses consisted of the following as of December 31 (in thousands): 2017 2016 Accrued contract labor costs $ 3,424 $ 743 Accrued hosting costs 466 — Accrued audit and tax expenses 248 358 Accrued reimbursable employee expenses 286 134 Accrued marketing and tradeshow expenses 128 111 Other accrued expenses 1,915 1,514 Total $ 6,467 $ 2,860 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Debt | Debt 2015 Line of Credit At December 31, 2015, we had a $10.0 million revolving line of credit with a lender, expiring in June 2016 , which was subsequently amended in June 2016 to extend the maturity date through June 2017 . This line of credit was terminated in April 2017 . 2015 Term Loan In March 2015, we entered into a collateralized $10.0 million term loan facility with a lender, maturing in March 2019 , and borrowed the full amount under the term loan facility in June 2015. In January 2016, we paid off the outstanding balance of the term loan and simultaneously entered into a collateralized $20.0 million term loan facility, maturing in January 2020 . We borrowed the full amount under the term loan facility in January 2016, which we repaid in full in April 2017. 2017 Financing Facility In April 2017, we entered into a new financing facility consisting of a $5.0 million senior revolving credit facility, a $20.0 million senior term loan, and a $10.0 million subordinated term loan. In connection with the execution of this financing facility, the prior line of credit was terminated, and we borrowed the full $20.0 million available under the senior term loan and repaid the outstanding balance under our prior term loan. Additionally, in connection with the execution of our new financing facility, the lender waived the prepayment fee associated with our prior line of credit. In June 2017, we used proceeds from our IPO to pay all remaining outstanding principal and interest under the senior term loan and subsequently terminated the senior term loan and subordinated term loan. In connection with the repayment of the senior term loan, we recognized a loss on extinguishment of debt of $0.4 million related to unamortized debt issuance costs, which is included within other (income) expense, net in the accompanying consolidated statements of operations. This financing facility was terminated in November 2017 in connection with our entry into a new $20.0 million revolving line of credit. 2017 Line of Credit In November 2017, we entered into a $20.0 million revolving line of credit with a lender. The facility matures in November 2022. We may elect whether amounts drawn on the revolving line of credit bear interest at a floating rate per annum equal to either the LIBOR or the prime rate plus an additional interest rate margin that is determined by the availability of the borrowings under the revolving line of credit. The additional interest rate margin will range from 2.00% to 2.50% in the case of LIBOR advances and from 1.00% to 1.50% in the case of prime rate advances. The revolving line of credit contains an unused facility fee in an amount between 0.15% and 0.25% of the average unused portion of the revolving line of credit, which is payable quarterly. The agreement contains certain customary affirmative and negative covenants and requires us to maintain (1) an adjusted quick ratio of at least 1.35 to 1.0 and (ii) minimum adjusted EBITDA, in the amounts and for the periods set forth in the agreement. Any amounts borrowed under the credit facility are collateralized by substantially all of our assets. We were in compliance with all covenants as of December 31, 2017 . As of December 31, 2017 , we had no outstanding borrowings under the revolving line of credit. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes For the years ended December 31, 2017 , 2016 and 2015 , our net loss before income taxes was comprised of the following (in thousands): 2017 2016 2015 Domestic $ (23,093 ) $ (4,524 ) $ 1,079 Foreign (7,153 ) (9,620 ) (7,688 ) Total $ (30,246 ) $ (14,144 ) $ (6,609 ) For the years ended December 31, 2017 , 2016 and 2015 , our income tax expense (benefit) was comprised of the following (in thousands): 2017 2016 2015 Current: Federal $ (65 ) $ (627 ) $ 390 State 68 (200 ) 62 Foreign 1,009 266 217 Total current expense (benefit) 1,012 (561 ) 669 Deferred: Federal (42 ) (922 ) (334 ) State — (230 ) 43 Foreign (209 ) 30 — Total deferred expense (benefit) (251 ) (1,122 ) (291 ) Total income tax expense (benefit) $ 761 $ (1,683 ) $ 378 On December 22, 2017, U.S. federal tax reform was enacted with the signing of the TCJA. Notable provisions of the TCJA include the following: • Establishment of a flat corporate income tax rate of 21% on U.S. earnings; • Imposition of a one-time tax on unremitted cumulative non-U.S. earnings of foreign subsidiaries, or the Transition Tax; • The imposition of a new minimum tax on certain non-U.S. earnings, irrespective of the territorial system of taxation, and generally allows for the repatriation of future earnings of foreign subsidiaries without incurring additional U.S. taxes by transitioning to a territorial system of taxation; • Imposition of minimum taxes on certain payments made by a U.S. company to a related foreign company, or the Base Erosion Anti-Abuse Tax; • Elimination of the alternative minimum tax and allowance of a refund for previous alternative minimum tax credits; • Allowance for immediate expensing of the cost of investments in certain depreciable assets acquired and placed in service after September 27, 2017; and • Reduction in tax deductions with respect to certain compensation paid to certain executive officers. While the changes from the TCJA are generally effective beginning in 2018, U.S. GAAP accounting for income taxes requires the effect of a change in tax laws or rates to be recognized in income from continuing operations for the period that includes the enactment date. Due to the complexities involved in accounting for the enactment of the TCJA, the Securities and Exchange Commission Staff Accounting Bulletin No. 118 (“SAB 118”) allows us to record provisional amounts in earnings for the year ending December 31, 2017. Where reasonable estimates can be made, the provisional accounting should be based on such estimates. When no reasonable estimate can be made, the provisional accounting may be based on the tax law in effect before the TCJA. We are required to complete our tax accounting for the TCJA in the period when we have obtained, prepared, and analyzed the information to complete the income tax accounting. We have not completed our accounting for the tax effects of enactment of the TCJA; however, as described below, we have made reasonable estimates of the effects of the TCJA on our consolidated financial statements which are included as a component of income tax expense: • Deferred tax assets and liabilities: U.S. deferred tax assets and liabilities were remeasured based on the rates at which they are expected to reverse in the future, which is generally 21.0%, resulting in an income tax expense of approximately $2.1 million . This expense is fully offset by the tax benefit from the reduction in our U.S. valuation allowance. We will continue to analyze certain aspects of the TCJA which could potentially affect the tax basis of the reported amounts. Additionally, our U.S. tax returns for 2017 will be filed during the fourth quarter of 2018 and any changes to the tax positions for temporary differences compared to the estimates used will result in an adjustment of the estimated tax expense recorded as of December 31, 2017. • Transition Tax effects: The Transition Tax is based on our total post-1986 earnings and profits that was previously deferred from U.S. income taxes. Our provisional estimate for the Transition Tax is zero because we have post-1986 accumulated deficits. We will continue to evaluate the TCJA and any future guidance from the U.S. Treasury Department and Internal Revenue Service (“IRS”) in the determination of the Transition Tax which could result in adjustment of the estimate recorded as of December 31, 2017. • Indefinite reinvestment: Following enactment of the TCJA and the associated Transition Tax, in general, repatriation of cash to the United States can be completed with no incremental U.S. tax; however, repatriation of cash could subject the Company to non-U.S. jurisdictional taxes on distributions. The cash that our non-U.S. subsidiaries hold for indefinite reinvestment is generally used to finance foreign operations and investments, including acquisitions. The income taxes applicable to such earnings are not readily determinable given the various tax planning strategies we could employ if we repatriated these earnings. We will continue to evaluate the impact of the TCJA on our election to indefinitely reinvest our non-U.S. earnings, if any. We will continue to analyze the effects of the TCJA on our consolidated financial statements and operations. Additional impacts from the enactment of the TCJA will be recorded as they are identified during the measurement period as provided for in SAB 118, which allows measurement period adjustments up to one year from the enactment date. For the years ended December 31, 2017 , 2016 and 2015 , the provision for income taxes differs from the amount computed by applying the federal statutory income tax rates to our loss before the provision (benefit) for income taxes, as follows: 2017 2016 2015 U.S. federal statutory tax rate 34.0 % 34.0 % 34.0 % State tax expense 4.9 1.4 (0.9 ) Foreign rate differential (6.7 ) (17.8 ) (29.4 ) Nondeductible expenses (0.9 ) (2.3 ) (4.1 ) Tax credits 5.8 6.5 10.0 Unrecognized tax benefits (0.7 ) (0.2 ) (1.8 ) Other (0.3 ) (0.2 ) (1.9 ) Remeasurement of deferred taxes (7.0 ) — — Change in valuation allowance (31.6 ) (9.6 ) (11.5 ) Total (2.5 )% 11.8 % (5.6 )% Deferred tax assets and liabilities reflect the net tax effects of temporary differences between the carrying amount of the assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. As of December 31, 2017 and 2016 , significant components of our deferred tax assets and liabilities were as follows (in thousands): 2017 2016 Deferred tax assets: Accrued vacation $ 967 $ 529 Bad debt 109 159 Deferred revenue 1,248 2,176 Deferred rent 473 834 Tax credits 4,169 2,401 Net operating losses 10,413 2,939 Equity compensation 1,207 — Other 287 929 Gross deferred tax assets 18,873 9,967 Less: Valuation allowance (12,328 ) (2,642 ) Total deferred tax assets 6,545 7,325 Deferred tax liabilities: Depreciation (174 ) (349 ) Unbilled receivables (555 ) (491 ) Prepaid expenses (5,614 ) (6,505 ) Other (8 ) — Total deferred tax liabilities (6,351 ) (7,345 ) Net deferred tax asset (liability) $ 194 $ (20 ) As of December 31, 2017 and 2016 , we had $25.3 million and $1.8 million of gross net operating loss (“NOL”) carryforwards for U.S. federal tax purposes, respectively. Federal NOL carryforwards will expire, if unused, in 2037. As of December 31, 2017 and 2016 , we had U.S. gross state NOL carryforwards of $25.3 million and $1.7 million , respectively. We had tax effected state NOL carryforwards of $1.6 million and $0.1 million as of December 31, 2017 and 2016 , respectively. U.S. state NOL carryforwards will substantially expire, if unused, in 2037. As of December 31, 2017 and 2016 , we had foreign NOL carryforwards of $35.7 million and $23.7 million , respectively, primarily attributable to our subsidiary in Switzerland. Those NOL carryforwards will substantially expire, if unused, in 2024. Section 382 of the Internal Revenue Code limits the utilization of the NOLs when ownership changes occur, as defined by that section. A number of states have similar state laws that limit utilization of the state NOLs when ownership changes occur. We have performed an analysis of our Section 382 ownership changes and have determined that all federal and U.S state NOLs are available for use as of December 31, 2017 . As of December 31, 2017 and 2016 , we had $4.5 million and $2.8 million , respectively, of federal tax credit carryforwards which will expire, if unused, in 2037. The net change during the year in the total valuation allowance was $9.7 million , primarily driven by the valuation allowance recorded against the U.S. deferred tax assets and the change in the Switzerland deferred tax assets. We continue to maintain a full valuation allowance against U.S. deferred tax assets based on our cumulative operating results as of December 31, 2017 , three-year cumulative loss, and assessment of our expected future results of operations. We have evaluated all evidence, both positive and negative, in assessing the likelihood of realizability and the negative evidence outweighed the positive evidence. As of December 31, 2017 , we have a valuation allowance of $3.5 million against foreign deferred tax assets, primarily for deferred tax assets at our subsidiary in Switzerland. We continue to maintain a full valuation allowance on the deferred tax assets of our subsidiary in Switzerland as we determined that it was not more likely than not that we would be able to realize a benefit from the NOL at that subsidiary. Based on our cumulative operating results as of December 31, 2017 , and assessment of our expected future results of operations, we determined that it was not more likely than not that we would be able to realize the deferred tax assets prior to expiration. We are subject to income taxes in the United States, Australia, Canada, France, Germany, Italy, Netherlands, Switzerland, and United Kingdom. Undistributed earnings of our foreign subsidiaries are considered to be indefinitely reinvested; accordingly, no U.S. income taxes have been provided thereon. Upon repatriation of those earnings, if any, we would be subject to U.S. income taxes, net of any applicable foreign tax credits, and foreign withholding taxes. Determination of the amount of unrecognized deferred U.S. income tax liability is not practicable. As of December 31, 2017 and 2016 , we had unrecognized tax benefits of $0.7 million and $0.4 million , respectively, of which the entire portion would affect our effective tax rate if recognized. The following table summarizes the activity related to our unrecognized tax benefit from December 31, 2014 to December 31, 2017 (in thousands): Balance as of December 31, 2014 $ 286 Additions for tax positions in current years 98 Additions for tax positions in prior years — Reductions due to lapse in statutes of limitations — Settlements — Balance as of December 31, 2015 384 Additions for tax positions in current years 171 Additions for tax positions in prior years — Reductions due to lapse in statutes of limitations (136 ) Settlements — Balance as of December 31, 2016 419 Additions for tax positions in current years 232 Additions for tax positions in prior years — Reductions due to lapse in statutes of limitations — Settlements — Balance as of December 31, 2017 $ 651 We recognize interest and penalties related to uncertain tax positions in income tax expense. During the year ended December 31, 2017 , we reduced our liability for potential interest and penalties by $2,000 . During the years ended December 31, 2016 and 2015 , we recognized potential interest and penalties of $2,000 and $19,000 , respectively, and the cumulative balance of interest and penalties as of December 31, 2017 and 2016 and was $33,000 and $35,000 , respectively. We anticipate that total unrecognized tax benefits will not decrease over the next year. We file income tax returns in the United States federal jurisdiction and in many state and foreign jurisdictions. The tax years 2014 through 2017 remain open to examination by the major taxing jurisdictions to which we are subject. No material examinations are currently open. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation In May 2017, our board of directors adopted, and our stockholders approved, the 2017 Equity Incentive Plan (the “2017 Plan”), which became effective as of the date of the final prospectus for our IPO. The 2017 Plan provides for the grant of incentive stock options to employees, and for the grant of nonstatutory stock options, restricted stock awards, restricted stock unit awards, stock appreciation rights, performance-based stock awards and other forms of equity compensation to employees, including officers, and to non-employee directors and consultants. We initially reserved 6,421,442 shares of Class A common stock for issuance under the 2017 Plan, which included 421,442 shares that remained available for issuance under our 2007 Stock Option Plan (the “2007 Plan”) at the time that the 2017 Plan became effective. The number of shares reserved under the 2017 Plan increases for any shares subject to outstanding awards originally granted under the 2007 Plan that expire or are forfeited prior to exercise. As a result of the adoption of the 2017 Plan, no further grants may be made under the 2007 Plan. As of December 31, 2017 , there were 6,538,262 shares of Class A common stock reserved for issuance under the 2017 Plan, of which 5,775,770 were available to be issued. The 2007 Plan provided for the grant of stock options to employees, directors, and officers. Options under the 2007 Plan are exercisable into shares of Class B common stock and generally expire ten years from the date of grant. Under the 2007 Plan, the exercise price of each award was established by the board of directors, but could not be less than the fair market value of a share of our common stock on the grant date. Options generally vest upon the satisfaction of both a service condition and a performance condition. The service condition is satisfied at various rates as determined by us, typically on an annual basis over five years. The performance condition required the occurrence of a qualifying event, defined as a change of control transaction or upon the completion of an IPO. The performance condition was satisfied upon the effectiveness of our IPO in May 2017, on which date we recognized $6.2 million of cumulative stock-based compensation expense using the accelerated attribution method from the service start date. We estimate the fair value of stock options using the Black-Scholes OPM, which requires the use of subjective assumptions, including the expected term of the option, the current price of the underlying stock prior to our IPO, the expected stock price volatility, expected dividend yield and the risk-free interest rate for the expected term of the option. The expected term represents the period of time the stock options are expected to be outstanding. Due to the lack of sufficient historical exercise data to provide a reasonable basis upon which to otherwise estimate the expected term of the stock options, we use the simplified method to estimate the expected term for our stock options. Under the simplified method, the expected term of an option is presumed to be the mid-point between the vesting date and the end of the contractual term. Expected volatility is based on historical volatilities for publicly traded stock of comparable companies over the estimated expected term of the stock options. We assume no dividend yield because dividends are not expected to be paid in the near future, which is consistent with our history of not paying dividends. The following table summarizes the assumptions used to estimate the fair value of stock options granted during the years ended December 31: 2017 2016 2015 Risk-free interest rate 1.9% - 2.2% 1.3% - 1.5% 1.7% - 1.9% Expected term (in years) 6.5 6.5 6.5 Expected volatility 38.1% - 40.6% 40.9% - 42.0% 39.7% - 44.4% Expected dividend yield —% —% —% Stock Options The following table summarizes the stock option activity for the year ended December 31, 2017 : Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (in thousands) Outstanding at January 1, 2017 6,784,448 $ 4.65 6.5 $ 44,259 Granted 1,256,200 11.92 Exercised (876,121 ) 1.27 14,807 Canceled (153,640 ) 7.29 Outstanding at December 31, 2017 7,010,887 6.36 6.6 176,122 Exercisable at December 31, 2017 2,800,447 2.07 3.9 82,367 The weighted average grant-date fair value of options granted during the year ended December 31, 2017 , 2016 and 2015 was $5.05 , $4.35 and $2.61 per share, respectively. The total fair value of stock options that vested during the year ended December 31, 2017 was $5.6 million . No stock options vested during the years ended December 31, 2016 and 2015 because a qualifying event had not yet occurred. As of December 31, 2017 , the total compensation cost related to unvested stock options not yet recognized was $11.0 million , which will be recognized over a weighted average period of 2.8 years. On April 25, 2017, our board of directors modified certain outstanding stock options nearing their expiration date to remove the performance condition. Stock options to purchase an aggregate of 216,160 shares of common stock were modified, and we recognized stock-based compensation expense of $2.4 million related to this modification. Restricted Stock Units The following table summarizes the restricted stock unit activity for the year ended December 31, 2017 : Number of Shares Weighted Average Grant Date Fair Value Non-vested outstanding at January 1, 2017 — $ — Granted 738,055 22.15 Vested (4,930 ) 20.24 Canceled (1,150 ) 21.40 Non-vested outstanding at December 31, 2017 731,975 22.16 As of December 31, 2017 , total unrecognized compensation cost related to unvested restricted stock units was approximately $15.6 million and the weighted average remaining vesting period was 2.8 years . The following table summarizes the components of our stock-based compensation expense for the year ended December 31, 2017 (in thousands): 2017 Stock-based compensation expense related to stock option modifications $ 2,394 Cumulative stock-based compensation expense related to stock options recorded upon effectiveness of our IPO 6,236 Post-IPO stock-based compensation expense related to stock options 3,371 Stock-based compensation expense related to the issuance of common stock to directors 222 Stock-based compensation expense related to restricted stock units 753 Total stock-based compensation expense $ 12,976 Stock-based compensation expense for restricted stock units, stock options and issuances of common stock is included in the following line items in the accompanying consolidated statements of operations for the year ended December 31, 2017 (in thousands): 2017 Cost of revenue Subscriptions, software and support $ 575 Professional services 1,295 Operating expenses Sales and marketing 3,233 Research and development 2,822 General and administrative 5,051 Total stock-based compensation expense $ 12,976 For the years ended December 31, 2016 and 2015 , no stock-based compensation expense was recognized for our stock option awards because a qualifying event had not yet occurred. |
Convertible Preferred Stock and
Convertible Preferred Stock and Stockholders’ Equity (Deficit) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Convertible Preferred Stock and Stockholders’ Equity (Deficit) | Convertible Preferred Stock and Stockholders’ Equity (Deficit) Convertible Preferred Stock Immediately prior to the completion of the IPO, all shares of convertible preferred stock then outstanding were automatically converted into 18,163,158 shares of common stock on a one-for-one basis, and then reclassified as shares of Class B common stock. Summary of Activity The following tables present a summary of activity for our convertible preferred stock issued and outstanding for the years ended December 31, 2017 , 2016 and 2015 (dollar amounts in thousands): Series A Convertible Preferred Stock Series B Convertible Preferred Stock Amount Shares Amount Shares Balance as of January 1, 2015 $ 16,197 12,043,108 $ 37,500 6,120,050 Accretion of dividends on convertible preferred stock 861 — — — Balance as of December 31, 2015 $ 17,058 12,043,108 $ 37,500 6,120,050 Accretion of dividends on convertible preferred stock 857 — — — Balance as of December 31, 2016 $ 17,915 12,043,108 $ 37,500 6,120,050 Accretion of dividends on convertible preferred stock 357 — — — Payment of accrued dividend to Series A convertible preferred stockholders (7,565 ) — — — Conversion of convertible preferred stock to common stock (10,707 ) (12,043,108 ) (37,500 ) (6,120,050 ) Balance as of December 31, 2017 $ — — $ — — Common Stock Immediately prior to the completion of the IPO, all shares of common stock then outstanding were converted into Class B common stock on a one-for-one basis. We offered and sold newly authorized shares of Class A common stock in the IPO. The rights of the holders of Class A common stock and Class B common stock are identical, except with respect to voting and conversion rights. The holders of Class A common stock are entitled to one vote per share, and the holders of Class B common stock are entitled to ten votes per share, on all matters that are subject to stockholder vote. The holders of Class B common stock also have approval rights for certain corporate actions. Each share of Class B common stock may be converted into one share of Class A common stock at the option of its holder and will be automatically converted into one share of Class A common stock upon transfer thereof, subject to certain exceptions. In addition, upon the date on which the outstanding shares of Class B common stock represent less than 10% of the aggregate voting power of our capital stock, all outstanding shares of Class B common stock shall convert automatically into Class A common stock. |
Warrants
Warrants | 12 Months Ended |
Dec. 31, 2017 | |
Warrants and Rights Note Disclosure [Abstract] | |
Warrants | Warrants We previously issued a warrant to purchase 84,360 shares of Series A convertible preferred stock in conjunction with a credit facility with a lender at an exercise price of $0.88905 per share. Immediately prior to the completion of the IPO, this warrant was converted into a warrant to purchase 84,360 shares of Class B common stock. The fair value at the time of the conversion was $1.2 million and was recorded as additional paid-in capital and a reduction of the preferred stock warrant liability. In May 2017, the warrant holder exercised the warrant and we issued 79,363 shares of Class B common stock through a cashless exercise of the warrant, in accordance with its terms. |
Basic and Diluted Loss per Comm
Basic and Diluted Loss per Common Share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Loss per Common Share | Basic and Diluted Loss per Common Share The following table sets forth the computation of basic and diluted net loss per share for the years ended December 31 (in thousands, except per share data): Year Ended December 31, 2017 2016 2015 Numerator: Net loss $ (31,007 ) $ (12,461 ) $ (6,987 ) Accretion of dividends on convertible preferred stock 357 857 861 Net loss attributable to common stockholders $ (31,364 ) $ (13,318 ) $ (7,848 ) Denominator Weighted average common shares outstanding, basic and diluted 49,529,833 34,274,718 34,274,718 Net loss per share attributable to common stockholders, basic and diluted $ (0.63 ) $ (0.39 ) $ (0.23 ) The following securities have been excluded from the calculation of weighted average common shares outstanding because the effect is anti-dilutive or performance or market conditions had not been met at the end of the period: Year Ended December 31, 2017 2016 2015 Convertible preferred stock: Series A convertible preferred stock — 12,043,108 12,043,108 Series B convertible preferred stock — 6,120,050 6,120,050 Warrant to purchase Series A convertible preferred stock — 84,360 84,360 Stock options 7,010,887 6,784,448 4,589,988 Restricted stock units 731,975 — — |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Operating Leases We lease office space and equipment in our headquarters location in Reston, Virginia, as well as in the United Kingdom, France, Germany, Canada, Italy, Australia and the Netherlands, under non-cancellable operating lease agreements which have various expiration dates through 2026 for our office space and various expiration dates through 2019 for our equipment. A summary of our future minimum lease commitments by year as of December 31, 2017 is as follows (in thousands): Office Leases Equipment Leases 2018 $ 7,722 $ 405 2019 8,043 216 2020 4,828 22 2021 2,503 — 2022 380 — Thereafter 1,046 — Total $ 24,522 $ 643 We record rent expense using the total minimum rent commitment, amortized using the straight-line method over the term of the lease. The difference between monthly rental payments and recorded rent expense is charged to deferred rent. As of December 31, 2017 and 2016 , deferred rent totaled $2.0 million and $2.4 million , respectively, and is included within other current liabilities and other long-term liabilities on the accompanying consolidated balance sheets. In September 2014, we entered into an agreement to sublease a certain rented facility to a subtenant. The sublease agreement commenced on November 1, 2014 and expired when the original lease agreement expired in October 2017. We received $0.5 million for the year ended December 31, 2017 and $0.6 million for each of the years ended December 31, 2016 and 2015 in rental income from the subtenant. Total rent and lease expense was $7.0 million , $6.6 million and $4.6 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. Other Commitments We also have entered into a non-cancellable agreement for the use of technology that is integral in the development of our software and pay annual royalty fees of $0.3 million . Letters of Credit As of December 31, 2017 and 2016 , we had outstanding letters of credit totaling $1.1 million and $1.3 million , respectively, in connection with securing our leased office space. All letters of credit are secured by our borrowing arrangement as described in Note 5. Legal From time to time, we are subject to legal, regulatory and other proceedings and claims that arise in the ordinary course of business. There are no issues or resolution of any matters that are expected to have a material adverse impact on our consolidated financial statements. |
Segment and Geographic Informat
Segment and Geographic Information | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information | Segment and Geographic Information The following table summarizes revenue by geography for the years ended December 31 (in thousands): 2017 2016 2015 Domestic $ 128,997 $ 107,069 $ 89,043 International 47,740 25,854 22,161 Total $ 176,737 $ 132,923 $ 111,204 With respect to geographic information, revenue is attributed to respective geographies based on the contracting address of the customer. There were no individual foreign countries from which more than 10% of our total revenue was attributable for the years ended December 31, 2017 , 2016 and 2015 . Substantially all of our long-lived assets were held in the United States as of December 31, 2017 and December 31, 2016 . |
Retirement Plans
Retirement Plans | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
Retirement Plans | Retirement Plans We have a defined contribution 401(k) retirement and savings plan (the “401(k) Plan”) to provide retirement benefits for all eligible employees. All employees who have completed forty-five days of service and are at least twenty-one years of age are eligible to participate in the 401(k) Plan. The 401(k) Plan allows eligible employees to make salary-deferred contributions up to 75% of their annual compensation, as defined, and subject to certain Internal Revenue Service limitations. Employer contributions vest at 25% per year, over four years. For the years ending December 31, 2017 , 2016 and 2015 , we incurred $3.3 million , $2.6 million and $1.9 million , respectively, in contribution expense related to the employer matching contributions. We are obligated to make plan contributions for the employees of certain of our wholly-owned foreign subsidiaries. For the years ending December 31, 2017 , 2016 and 2015 , we incurred $0.9 million , $0.7 million and $0.5 million , respectively, in contribution expense related to our foreign subsidiaries. |
Selected Quarterly Information
Selected Quarterly Information (Unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Information (Unaudited) | Selected Quarterly Information (Unaudited) The following table sets forth unaudited quarterly consolidated statements of operations data for each of the eight quarters in 2017 and 2016 . The information for each of these quarters has been prepared on the same basis as the audited annual consolidated financial statements included in this Annual Report on Form 10-K. In our opinion, the quarterly financial data reflects all adjustments, which consist only of normal recurring adjustments that we consider necessary for a fair presentation of this data. The quarterly financial data should be read in conjunction with our consolidated financial statements and related notes included elsewhere in this Annual Report on Form 10-K. These quarterly results are not necessarily indicative of our operating results to be expected in the future. Three Months Ended Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 (in thousands) (unaudited) Consolidated Statement of Operations Data: Revenue: Subscriptions, software and support $ 25,398 $ 22,660 $ 22,012 $ 21,444 $ 19,365 $ 17,668 $ 17,321 $ 15,618 Professional services 25,164 21,988 21,186 16,885 14,382 13,077 15,146 20,346 Total revenue 50,562 44,648 43,198 38,329 33,747 30,745 32,467 35,964 Cost of revenue: Subscriptions, software and support 2,488 2,341 2,488 2,062 1,929 1,890 1,836 1,782 Professional services 16,169 14,272 14,149 10,628 8,670 9,315 11,723 12,978 Total cost of revenue 18,657 16,613 16,637 12,690 10,599 11,205 13,559 14,760 Gross profit 31,905 28,035 26,561 25,639 23,148 19,540 18,908 21,204 Operating expenses: Sales and marketing 22,463 19,725 22,775 17,003 14,660 14,480 13,831 11,166 Research and development 8,968 8,596 9,971 7,300 6,069 6,702 5,296 4,927 General and administrative 7,429 6,237 8,635 4,849 4,260 4,531 4,318 3,930 Total operating expenses 38,860 34,558 41,381 29,152 24,989 25,713 23,445 20,023 Operating (loss) income (6,955 ) (6,523 ) (14,820 ) (3,513 ) (1,841 ) (6,173 ) (4,537 ) 1,181 Other (income) expense: Other (income) expense, net (380 ) (425 ) (734 ) (499 ) 1,663 (67 ) 733 (537 ) Interest expense (income) 22 (2 ) 197 256 256 243 241 242 Total other (income) expense (358 ) (427 ) (537 ) (243 ) 1,919 176 974 (295 ) Net (loss) income before income taxes (6,597 ) (6,096 ) (14,283 ) (3,270 ) (3,760 ) (6,349 ) (5,511 ) 1,476 Income tax expense (benefit) 272 188 176 125 423 (1,610 ) (1,217 ) 721 Net (loss) income (1) $ (6,869 ) $ (6,284 ) $ (14,459 ) $ (3,395 ) $ (4,183 ) $ (4,739 ) $ (4,294 ) $ 755 (1) In the second quarter of 2017, we recorded $6.2 million of cumulative stock-based compensation expense upon the effectiveness of our IPO and $2.4 million of stock-based compensation expense related to the stock option modifications. See Note 7 for further discussion of stock-based compensation expense. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events In preparing our consolidated financial statements, we evaluated subsequent events through February 23, 2018, which is the date that the consolidated financial statements were available to be issued. |
Significant Accounting Polici23
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements and footnotes have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) as contained in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (the “Codification” or “ASC”) |
Use of Estimates | Use of Estimates The preparation of our consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and judgments that affect the amounts reported in these consolidated financial statements and accompanying notes. Although we believe that the estimates we use are reasonable, due to the inherent uncertainty involved in making these estimates, actual results reported in future periods could differ from those estimates. Significant estimates embedded in the consolidated financial statements include revenue recognition, income taxes and the related valuation allowance, stock-based compensation and fair value measurements for our common stock and preferred stock warrant. |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of Appian and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. |
Initial Public Offering | Initial Public Offering In May 2017, we completed an initial public offering, or IPO, in which we sold 7,187,500 shares of our newly-authorized Class A common stock at an initial price to the public of $12.00 per share. We received net proceeds of $77.8 million , after deducting underwriting discounts and commissions and offering expenses paid and payable by us, from sales of our shares in the IPO. Immediately prior to the completion of the IPO, (1) all shares of common stock then outstanding were converted into Class B common stock on a one-for-one basis, (2) a warrant to purchase shares of convertible preferred stock was converted into a warrant to purchase shares of Class B common stock and (3) all shares of convertible preferred stock then outstanding were converted into shares of our common stock on a one-for-one basis, and then reclassified as shares of Class B common stock. See Note 8 for further discussion of the convertible preferred stock |
Revenue Recognition | Revenue Recognition We generate revenue primarily through sales of subscriptions to our platform, as well as professional services. We recognize revenue when all of the following conditions are met: (1) there is persuasive evidence of an arrangement; (2) the service or product has been provided to the customer; (3) the amount of fees to be paid by the customer is fixed or determinable; and (4) the collection of related fees is reasonably assured. If collection is not reasonably assured, we defer revenue recognition until collectability becomes reasonably assured. Our arrangements do not contain general rights of return. Revenue is recognized net of any taxes collected from customers and subsequently remitted to governmental authorities. Subscriptions, Software and Support Revenue Subscriptions, software and support revenue is primarily related to (1) software as a service (“SaaS”) subscriptions bundled with maintenance and support and hosting services and (2) term license subscriptions bundled with maintenance and support. To a lesser extent, we also generate revenue from the sale of perpetual software licenses and associated maintenance and support. Historically, we licensed our software primarily under perpetual licenses, but over time we transitioned from perpetual licenses to subscriptions. As a result, revenue from our perpetual software licenses was less than 1.0% of our total revenue for 2017 and 2016 , respectively, and 1.9% of our total revenue in 2015 . We generally charge subscription fees on a per-user basis. We bill customers and collect payment for subscriptions to our platform in advance on a monthly, quarterly or annual basis. In certain instances, we have had customers pay their entire contract up front. SaaS Subscriptions Our SaaS subscription revenue is derived from customers accessing our cloud offering pursuant to contracts that are generally one to five years in length. We perform all required maintenance and support for our cloud offering and we do not separately charge customers for hosting costs. In these arrangements, our customers do not have the right to take the software on-premises and, as a result, such arrangements are not accounted for within the scope of the software revenue guidance. Revenue from SaaS subscriptions is recognized ratably over the term of the subscription, beginning with the date our service is made available to our customer. Term License Subscriptions Our term license subscription revenue is derived from customers with on-premises installations of our platform pursuant to contracts that are generally one to five years in length. Customers with term license subscriptions have the right to use our software and receive maintenance and support. Since we do not sell maintenance and support separately from the subscription, revenue for the term license subscription and maintenance and support is recognized ratably over the term of the subscription, upon delivery of the platform to the customer when sold on a standalone basis. Professional Services Our professional services revenue is comprised of fees for consulting services, including application development and deployment assistance and training related to our platform. Our professional services are not essential to the functionality of our platform because the platform is ready for the customer’s use immediately upon delivery and is not modified or customized in any manner. Consulting services are billed under both time-and-material and fixed-fee arrangements. For standalone time-and-material contracts, we recognize revenue at contractually agreed upon billing rates applied to hours performed. For standalone fixed-fee contracts, we also recognize revenue as the work is performed using the proportional performance method of accounting. Training revenue is recognized when the associated training services are delivered. Training is also sold in the form of a subscription arrangement where a customer agrees to pay an annual fixed fee for a fixed number of users to have access to all of our training offerings during the year. Revenue from training subscription agreements is recognized ratably over the subscription period. We defer recognition of revenue from work performed on pending contract modifications until the period in which the modifications are accepted and funding is approved by the customer. Costs of work performed on pending contract modifications are expensed as incurred. Multiple Element Arrangements Our multiple element arrangements are from SaaS subscriptions and term license subscriptions that are generally sold in combination with maintenance and support service and frequently with professional services. SaaS Subscriptions For multiple element arrangements involving SaaS subscriptions that include professional services in addition to the subscription to our platform, we evaluate each element to determine whether it represents a separate unit of accounting. Because there are third-party vendors who routinely sell and provide the same professional services to our customers, our professional services are deemed to have standalone value apart from the SaaS subscription. Additionally, we offer both SaaS subscriptions and professional services on a standalone basis. Professional services revenue is therefore accounted for separately from subscription fees and recognized as the professional services are performed. We allocate revenue to the elements based on the selling price hierarchy using vendor-specific objective evidence (“VSOE”) of selling price, third-party evidence (“TPE”) of selling price, or if neither exists, best estimated selling price (“BESP”). In cases where we do not have VSOE or TPE of the elements of our arrangements, we use BESP to allocate revenue. We determine BESP for a service by considering multiple factors including, but not limited to, evaluating the weighted average of actual sales prices and other factors such as gross margin objectives, pricing practices and growth strategy. Pricing practices taken into consideration include historic contractually stated prices, volume discounts where applicable and our price lists. While we believe we can make reliable estimates regarding these matters, these estimates are inherently subjective. Once the revenue is allocated to these elements, revenue is recognized as such services are provided. Term License Subscriptions For multiple element arrangements involving term license subscriptions, maintenance and support and professional services, we do not have VSOE of fair value for the maintenance and support. Our term license subscriptions are generally not sold on a standalone basis, and therefore, we have not established VSOE of fair value for the subscriptions. Consequently, for our bundled arrangements that include certain professional services, there are two undelivered elements for which VSOE of fair value has not been established and, therefore, we utilize the combined services approach and defer all revenue until the software has been delivered and the provision of all services has commenced. We then recognize the entire fee from the arrangement ratably over the remaining period of the arrangement, assuming all other software revenue recognition criteria have been met. |
Deferred Revenue | Deferred Revenue Deferred revenue primarily consists of amounts billed or billable in advance of revenue recognition from our subscriptions, software, and support and professional services described above. Deferred revenue is recognized as the revenue recognition criteria are met. |
Cost of Revenue | Cost of Revenue Cost of Subscriptions, Software and Support Revenue Cost of subscriptions, software and support revenue consists primarily of fees paid to our third-party managed hosting providers and other third-party service providers, personnel costs, including payroll and benefits for our technology operations and customer support teams, and allocated facility costs and overhead. Cost of Professional Services Revenue Cost of professional services revenue includes all direct and indirect costs to deliver our professional services and training, including employee compensation for our global professional services and training personnel, travel costs, third-party contractor costs and allocated facility costs and overhead. |
Concentration of Credit Risk | Concentration of Credit Risk Our financial instruments that are exposed to concentration of credit risk consist primarily of cash and cash equivalents and trade accounts receivable. Cash deposits may be in excess of insured limits. We believe that the financial institutions that hold our cash deposits are financially sound and, accordingly, minimal credit risk exists with respect to these balances. |
Cash and Cash Equivalents | Cash and Cash Equivalents We consider all highly liquid investments with an original or remaining maturity of three months or less at the date of purchase, as well as overnight repurchase investments, to be cash equivalents. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are stated at realizable value, net of an allowance for doubtful accounts. The allowance for doubtful accounts is based on our assessment of the collectability of accounts. We regularly review the composition of the accounts receivable aging, historical bad debts, changes in payment patterns, customer creditworthiness and current economic trends. If the financial condition of our customers were to deteriorate, resulting in their inability to make required payments, additional provisions for doubtful accounts would be required and would increase bad debt expense. |
Deferred Commissions | Deferred Commissions Deferred commissions are the incremental costs that are directly associated with subscription agreements with customers and consist of sales commissions paid to our direct sales force. Commissions are considered direct and incremental and as such are deferred and amortized over the terms of the related customer contracts consistent with the related revenue. Amortization of deferred commissions is included in sales and marketing expense in the accompanying consolidated statements of operations. |
Property, Plant and Equipment | Property and Equipment Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. Significant additions or improvements extending the useful life of an asset are capitalized, while repairs and maintenance costs which do not significantly improve the related assets or extend their useful lives are charged to expense as incurred. Asset Category Useful Life (in years) Computer software 3 Computer hardware 3 Equipment 5 Office furniture and fixtures 10 Leasehold improvements Shorter of useful life of assets or lease term |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets Long-lived assets and certain intangible assets are reviewed for impairment whenever events or circumstances indicate that the carrying amount of an asset may not be recoverable through undiscounted cash flows from the use of the assets. If such assets are considered to be impaired, the assets are written down to their estimated fair value. No indicators of impairment were identified for the years ended December 31, 2017 , 2016 and 2015 . |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying amounts of our cash and cash equivalents, accounts receivable, accounts payable and accrued expenses approximate fair value as of December 31, 2017 and December 31, 2016 because of the relatively short duration of these instruments. The carrying value of our long-term debt as of December 31, 2016 approximated fair value given interest rates for similar debt instruments available to the Company. We use a three-tier fair value hierarchy to classify and disclose all assets and liabilities measured at fair value on a recurring basis, as well as assets and liabilities measured at fair value on a non-recurring basis, in periods subsequent to their initial measurement. The hierarchy requires us to use observable inputs when available, and to minimize the use of unobservable inputs when determining fair value. The three tiers are defined as follows: • Level 1. Observable inputs based on unadjusted quoted prices in active markets for identical assets or liabilities; • Level 2. Inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and • Level 3. Unobservable inputs for which there is little or no market data, which require us to develop our own assumptions. Assets and Liabilities Measured at Fair Value on a Recurring Basis We evaluate our financial assets and liabilities subject to fair value measurements on a recurring basis to determine the appropriate level in which to classify them for each reporting period. This determination requires significant judgments to be made. After the reclassification of the convertible preferred stock warrant in May 2017, we did not have any assets or liabilities subject to fair value measurements as of December 31, 2017 . See Note 9 for further discussion of the warrant reclassification. |
Stock-Based Compensation | Stock-Based Compensation We account for stock-based compensation expense related to stock-based awards based on the estimated fair value of the award on the grant date. We calculate the fair value of stock options using the Black-Scholes OPM. For service-based awards, stock-based compensation expense is recognized on a straight-line basis over the requisite service period. For performance-based awards, stock-based compensation expense is recognized using the accelerated attribution method, based on the probability of satisfying the performance condition. For awards that contain market conditions, compensation expense is measured using a Monte Carlo simulation model and recognized using the accelerated attribution method over the derived service period based on the expected market performance as of the grant date. For restricted stock units, stock-based compensation expense is recognized on a straight-line basis over the requisite service period. We account for forfeitures as they occur, rather than estimating expected forfeitures. Basic and Diluted Loss per Common Share We use the two-class method to compute net loss per common share because we have issued securities, other than common stock, that contractually entitle the holders to participate in dividends and earnings. These participating securities include our convertible preferred stock which have non-forfeitable rights to participate in any dividends declared on our common stock. The two-class method requires earnings for the period to be allocated between common stock and participating securities based upon their respective rights to receive distributed and undistributed earnings. Under the two-class method, for periods with net income, basic net income per common share is computed by dividing the net income attributable to common stockholders by the weighted average number of shares of common stock outstanding during the period. Net income attributable to common stockholders is computed by subtracting from net income the portion of current year earnings that the participating securities would have been entitled to receive pursuant to their dividend rights had all of the year’s earnings been distributed. No such adjustment to earnings is made during periods with a net loss, as the holders of the participating securities have no obligation to fund losses. Diluted net income per common share is computed under the two-class method by using the weighted average number of shares of common stock outstanding, plus, for periods with net income attributable to common stockholders, the potential dilutive effects of stock options and warrants. In addition, we analyze the potential dilutive effect of the outstanding participating securities under the “if-converted” method when calculating diluted earnings per share, in which it is assumed that the outstanding participating securities convert into common stock at the beginning of the period or date of issuance, if later. We report the more dilutive of the approaches (two-class or “if-converted”) as our diluted net income per share during the period. Due to net losses for the years ended December 31, 2017 , 2016 and 2015 , basic and diluted net loss per share were the same, as the effect of potentially dilutive securities would have been anti-dilutive. Income Taxes We use the asset and liability method of accounting for income taxes in which deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases. We measure deferred tax assets and liabilities using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be reversed. We recognize the effect on deferred tax assets and liabilities of a change in tax rates as income and expense in the period that includes the enactment date. A valuation allowance is established if it is more likely than not that all or a portion of the deferred tax asset will not be realized. Our tax positions are subject to income tax audits by multiple tax jurisdictions throughout the world. We recognize the tax benefit of an uncertain tax position only if it is more likely than not the position is sustainable upon examination by the taxing authority. We measure the tax benefit recognized as the largest amount of benefit which is more likely than not to be realized upon settlement with the taxing authority. We recognize penalties and interest related to unrecognized tax benefits as income tax expense. We calculate the current and deferred income tax provision based on estimates and assumptions that could differ from the actual results reflected in income tax returns filed in subsequent years and record adjustments based on filed income tax returns when identified. The amount of income taxes paid is subject to examination by U.S. federal, state and foreign tax authorities. The estimate of the potential outcome of any uncertain tax issue is subject to our assessment of relevant risks, facts and circumstances existing at that time. To the extent the assessment of such tax position changes, we record the change in estimate in the period in which we make that determination. As described in more detail below under "Recent Accounting Pronouncements" and in Note 6, the Tax Cuts and Jobs Act (the “TCJA”) was enacted on December 22, 2017, substantially changing the U.S. federal tax system. We are required to complete our tax accounting for the TCJA in the period when it has obtained, prepared, and analyzed the information to complete the income tax accounting. We have not completed our accounting for the tax effects of enactment of the TCJA; however, we have made reasonable estimates of the effects of the TCJA on our financial statements which are included as a component of income tax expense. Segment Reporting Operating segments are defined as components of an enterprise for which discrete financial information is available that is evaluated regularly by the chief operating decision maker (“CODM”) for purposes of allocating resources and evaluating financial performance. Our CODM is our chief executive officer, who reviews financial information presented on a companywide basis for purposes of allocating resources and evaluating financial performance. As such, our operations constitute a single operating segment and one reportable segment. Foreign Currency Our operations located outside of the United States where the local currency is the functional currency are translated into U.S. dollars using the current rate method. Results of operations are translated at the average rate of exchange for the period. Assets and liabilities are translated at the closing rates on the balance sheet date. Gains and losses on translation of these accounts are accumulated and reported as a separate component of stockholders’ deficit and other comprehensive income (loss). Gains and losses on foreign currency transactions are recognized in the accompanying consolidated statements of operations as a component of other expense, net. Transaction gains and losses from transactions denominated in foreign currencies resulted in net transaction gains of $2.6 million for the year ended December 31, 2017 and net transaction losses of $1.5 million and $1.3 million for the years ended December 31, 2016 and 2015 , respectively. Research and Development Research and development expenses include payroll, employee benefits, and other headcount-related costs associated with product development. Our product utilizes a common codebase, whether accessed by customers via the cloud or via an on-premises installation. Since our software is sold and licensed externally, we consider our software as external-use software for purposes of applying the capitalized software development guidance. Product development costs are expensed as incurred until technological feasibility has been established, which we define as the completion of all planning, designing, coding and testing activities that are necessary to establish products that meet design specifications including functions, features and technical performance requirements. We have determined that technological feasibility for our software products is reached shortly before they are released for sale. Costs incurred after technological feasibility is established are not significant, and accordingly we expense all research and development costs when incurred. Advertising We expense advertising costs as they are incurred. Advertising expenses were $3.0 million , $1.4 million and $0.5 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. Emerging Growth Company Status We are an “emerging growth company” as defined in the Jumpstart Our Business Startups Act (“JOBS Act”). The JOBS Act provides that an emerging growth company can take advantage of an extended transition period for complying with new or revised accounting standards. Thus, an emerging growth company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We have elected to avail ourselves of this extended transition period and, as a result, we will not adopt new or revised accounting standards on the relevant dates on which adoption of such standards is required for other public companies. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Adopted On December 22, 2017, the TCJA was enacted, substantially changing the U.S. Federal tax system. Notable provisions of the TCJA include the reduction of the corporate tax rate from 35% to 21% beginning in 2018, the imposition of a one-time transition tax on unremitted cumulative non-U.S. earnings of foreign subsidiaries, and the implementation of a territorial tax system. While the changes from the TCJA are generally effective beginning in 2018, U.S. GAAP accounting for income taxes requires the effect of a change in tax laws or rates to be recognized in income from continuing operations for the period that includes the enactment date. Due to the complexities involved in accounting for the enactment of the TCJA, the Securities and Exchange Commission Staff Accounting Bulletin No. 118 (“SAB 118”) allows us to record provisional amounts in earnings for the year ending December 31, 2017. Where reasonable estimates can be made, the provisional accounting should be based on such estimates. When no reasonable estimate can be made, the provisional accounting may be based on the tax law in effect before the TCJA. We are required to complete our tax accounting for the TCJA in the period when we have obtained, prepared, and analyzed the information to complete the income tax accounting. We have not completed our accounting for the tax effects of enactment of the TCJA; however, we have made reasonable estimates of the effects of the TCJA on our consolidated financial statements which are included as a component of income tax expense. Not Yet Adopted In May 2014, the FASB issued ASU No. 2014-9, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-9”), which provides new guidance for revenue recognition. ASU 2014-9 provides that an entity 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. ASU 2014-9 also requires improved disclosures to help users of financial statements better understand the nature, amount, timing, and uncertainty of revenue that is recognized. Entities have the option of using either a full retrospective or modified retrospective approach for the adoption of the standard. In March 2016, the FASB issued ASU No. 2016-8, Principal Versus Agent Considerations (Reporting Revenue Gross Versus Net) (“ASU 2016-8”), which clarifies implementation guidance on principal versus agent considerations in ASU 2014-9. In April 2016, the FASB issued ASU No. 2016-10, Identifying Performance Obligations and Licensing (“ASU 2016-10”), which clarifies the identification of performance obligations and the licensing implementation guidance in ASU 2014-9. In addition, in May 2016, the FASB issued ASU No. 2016-12, Narrow-Scope Improvements and Practical Expedients (“ASU 2016-12”), which clarifies the guidance on assessing collectibility, presentation of sales taxes, noncash consideration and completed contracts and contract modifications at transition. For public entities, the new standard is effective for annual periods and interim periods within those annual periods, beginning after December 15, 2017. For all other entities, the new standard is effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods beginning after December 15, 2019. We intend to avail ourselves of the JOBS Act extended transition period that permits us to defer adoption until January 1, 2019. We are currently evaluating the impact the adoption of these standards will have on our consolidated financial statements. We currently plan to adopt the new standard using the full retrospective approach; however, the decision regarding the adoption method has not been finalized. Our final determination will depend on a number of factors such as the significance of the impact of the new standard on our financial results, system readiness, including that of software procured from third-party providers, and our ability to accumulate and analyze the information necessary to assess the impact on prior period financial statements, as necessary. We continue to evaluate the impact of the new standard on our accounting policies, processes, and system requirements. We have assigned internal resources in addition to the engagement of third-party service providers to assist in the evaluation. Furthermore, we have made and will continue to make investments in systems to enable timely and accurate reporting under the new standard. While we continue to assess all potential impacts under the new standard there is the potential for significant impact to the timing of recognition of revenue, particularly term license subscriptions and professional services revenue. We also expect an impact to our accounting for contract acquisition costs, both with respect to the amounts that will be capitalized as well as the period of amortization. Under current industry-specific software revenue recognition guidance, we have historically concluded that we did not have VSOE of fair value of the undelivered services related to term license subscriptions, and accordingly, have recognized term license subscriptions and related services ratably over the subscription term. Professional services included in an arrangement with subscription revenue has also been recognized ratably over the subscription term. The new standard, which does not retain the concept of VSOE, requires an evaluation of whether term license subscriptions and related services, including professional services, are distinct performance obligations and therefore should be separately recognized at a point in time or over time. Depending on the outcome of our evaluation, the timing of when revenue is recognized could change significantly for term license subscriptions and professional services under the new standard. In February 2016, the FASB issued ASU No. 2016-2, Leases (Topic 842) (“ASU 2016-2”), which requires that lessees recognize assets and liabilities for leases with lease terms greater than 12 months in the statement of financial position. ASU 2016-2 also requires improved disclosures to help users of financial statements better understand the amount, timing and uncertainty of cash flows arising from leases. The update is effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. Early adoption is permitted. We are currently evaluating the impact the adoption of ASU 2016-2 will have on our consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”), which aims to reduce the existing diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. ASU 2016-15 will require adoption on a retrospective basis unless it is impracticable to apply, in which case we would be required to apply the amendments prospectively as of the earliest date practicable. ASU 2016-15 is effective for fiscal years beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2019. Early adoption is permitted. We are currently in the process of evaluating the impact of adoption of this standard on our consolidated financial statements. In May 2017, the FASB issued ASU No. 2017-09, Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting ("ASU 2017-09"), which clarifies when a change to the terms or conditions of a share-based payment award must be accounted for as a modification. ASU 2017-09 requires modification accounting if the fair value, vesting condition or the classification of the award is not the same immediately before and after a change to the terms and conditions of the award. ASU 2017-09 will be effective on a prospective basis beginning on January 1, 2018. Early adoption is permitted. We do not expect ASU 2017-09 to have an impact on our consolidated financial statements. |
Significant Accounting Polici24
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Property, Plant and Equipment, Useful Life | Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. Significant additions or improvements extending the useful life of an asset are capitalized, while repairs and maintenance costs which do not significantly improve the related assets or extend their useful lives are charged to expense as incurred. Asset Category Useful Life (in years) Computer software 3 Computer hardware 3 Equipment 5 Office furniture and fixtures 10 Leasehold improvements Shorter of useful life of assets or lease term Property and equipment consisted of the following as of December 31 (in thousands): 2017 2016 Computer software $ 1,727 $ 1,701 Computer hardware 1,644 1,408 Leasehold improvements 4,226 4,098 Office furniture and fixtures 510 464 Equipment 131 116 8,238 7,787 Less: accumulated depreciation (5,575 ) (4,686 ) Property and equipment, net $ 2,663 $ 3,101 |
Summary of Liabilities Fair Value Measurements | The following table summarizes the conclusions reached as of December 31, 2016 (in thousands): December 31, 2016 Level 1 Level 2 Level 3 Liabilities: Series A convertible preferred stock warrant(1) $ 850 $ — $ — $ 850 $ 850 $ — $ — $ 850 (1) In order to determine the fair value of the convertible preferred stock warrant, we used the Black-Scholes option pricing model (“OPM”). Significant inputs for the OPM included an estimate of the fair value of the Series A convertible preferred stock, the remaining contractual life of the warrant, an estimate of the timing of a liquidity event, a risk-free rate of interest and an estimate of our stock volatility using the volatilities of guideline peer companies. |
Summary of Changes in Level 3 Instruments Measured at Fair Value On Recurring Basis | The following table presents the changes in our Level 3 instruments measured at fair value on a recurring basis during the years ended December 31, 2017 , 2016 and 2015 (in thousands): Year Ended December 31, 2017 2016 2015 Balance as of January 1, $ 850 $ 650 $ 351 Change in fair value of warrant liability 341 200 299 Reclassification of warrant liability to equity (1,191 ) — — Balance as of December 31, $ — $ 850 $ 650 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property and Equipment | Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. Significant additions or improvements extending the useful life of an asset are capitalized, while repairs and maintenance costs which do not significantly improve the related assets or extend their useful lives are charged to expense as incurred. Asset Category Useful Life (in years) Computer software 3 Computer hardware 3 Equipment 5 Office furniture and fixtures 10 Leasehold improvements Shorter of useful life of assets or lease term Property and equipment consisted of the following as of December 31 (in thousands): 2017 2016 Computer software $ 1,727 $ 1,701 Computer hardware 1,644 1,408 Leasehold improvements 4,226 4,098 Office furniture and fixtures 510 464 Equipment 131 116 8,238 7,787 Less: accumulated depreciation (5,575 ) (4,686 ) Property and equipment, net $ 2,663 $ 3,101 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses | Accrued expenses consisted of the following as of December 31 (in thousands): 2017 2016 Accrued contract labor costs $ 3,424 $ 743 Accrued hosting costs 466 — Accrued audit and tax expenses 248 358 Accrued reimbursable employee expenses 286 134 Accrued marketing and tradeshow expenses 128 111 Other accrued expenses 1,915 1,514 Total $ 6,467 $ 2,860 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax | For the years ended December 31, 2017 , 2016 and 2015 , our net loss before income taxes was comprised of the following (in thousands): 2017 2016 2015 Domestic $ (23,093 ) $ (4,524 ) $ 1,079 Foreign (7,153 ) (9,620 ) (7,688 ) Total $ (30,246 ) $ (14,144 ) $ (6,609 ) |
Schedule of Components of Income Tax Expense (Benefit) | For the years ended December 31, 2017 , 2016 and 2015 , our income tax expense (benefit) was comprised of the following (in thousands): 2017 2016 2015 Current: Federal $ (65 ) $ (627 ) $ 390 State 68 (200 ) 62 Foreign 1,009 266 217 Total current expense (benefit) 1,012 (561 ) 669 Deferred: Federal (42 ) (922 ) (334 ) State — (230 ) 43 Foreign (209 ) 30 — Total deferred expense (benefit) (251 ) (1,122 ) (291 ) Total income tax expense (benefit) $ 761 $ (1,683 ) $ 378 |
Schedule of Effective Income Tax Rate Reconciliation | For the years ended December 31, 2017 , 2016 and 2015 , the provision for income taxes differs from the amount computed by applying the federal statutory income tax rates to our loss before the provision (benefit) for income taxes, as follows: 2017 2016 2015 U.S. federal statutory tax rate 34.0 % 34.0 % 34.0 % State tax expense 4.9 1.4 (0.9 ) Foreign rate differential (6.7 ) (17.8 ) (29.4 ) Nondeductible expenses (0.9 ) (2.3 ) (4.1 ) Tax credits 5.8 6.5 10.0 Unrecognized tax benefits (0.7 ) (0.2 ) (1.8 ) Other (0.3 ) (0.2 ) (1.9 ) Remeasurement of deferred taxes (7.0 ) — — Change in valuation allowance (31.6 ) (9.6 ) (11.5 ) Total (2.5 )% 11.8 % (5.6 )% |
Schedule of Deferred Tax Assets and Liabilities | As of December 31, 2017 and 2016 , significant components of our deferred tax assets and liabilities were as follows (in thousands): 2017 2016 Deferred tax assets: Accrued vacation $ 967 $ 529 Bad debt 109 159 Deferred revenue 1,248 2,176 Deferred rent 473 834 Tax credits 4,169 2,401 Net operating losses 10,413 2,939 Equity compensation 1,207 — Other 287 929 Gross deferred tax assets 18,873 9,967 Less: Valuation allowance (12,328 ) (2,642 ) Total deferred tax assets 6,545 7,325 Deferred tax liabilities: Depreciation (174 ) (349 ) Unbilled receivables (555 ) (491 ) Prepaid expenses (5,614 ) (6,505 ) Other (8 ) — Total deferred tax liabilities (6,351 ) (7,345 ) Net deferred tax asset (liability) $ 194 $ (20 ) |
Summary of Income Tax Contingencies | The following table summarizes the activity related to our unrecognized tax benefit from December 31, 2014 to December 31, 2017 (in thousands): Balance as of December 31, 2014 $ 286 Additions for tax positions in current years 98 Additions for tax positions in prior years — Reductions due to lapse in statutes of limitations — Settlements — Balance as of December 31, 2015 384 Additions for tax positions in current years 171 Additions for tax positions in prior years — Reductions due to lapse in statutes of limitations (136 ) Settlements — Balance as of December 31, 2016 419 Additions for tax positions in current years 232 Additions for tax positions in prior years — Reductions due to lapse in statutes of limitations — Settlements — Balance as of December 31, 2017 $ 651 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Assumptions Used to Estimate the Fair Value of Stock Options Granted | The following table summarizes the assumptions used to estimate the fair value of stock options granted during the years ended December 31: 2017 2016 2015 Risk-free interest rate 1.9% - 2.2% 1.3% - 1.5% 1.7% - 1.9% Expected term (in years) 6.5 6.5 6.5 Expected volatility 38.1% - 40.6% 40.9% - 42.0% 39.7% - 44.4% Expected dividend yield —% —% —% |
Summary of the Stock Option Activity | The following table summarizes the stock option activity for the year ended December 31, 2017 : Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (in thousands) Outstanding at January 1, 2017 6,784,448 $ 4.65 6.5 $ 44,259 Granted 1,256,200 11.92 Exercised (876,121 ) 1.27 14,807 Canceled (153,640 ) 7.29 Outstanding at December 31, 2017 7,010,887 6.36 6.6 176,122 Exercisable at December 31, 2017 2,800,447 2.07 3.9 82,367 |
Schedule of Restricted Stock Unit Activity | The following table summarizes the restricted stock unit activity for the year ended December 31, 2017 : Number of Shares Weighted Average Grant Date Fair Value Non-vested outstanding at January 1, 2017 — $ — Granted 738,055 22.15 Vested (4,930 ) 20.24 Canceled (1,150 ) 21.40 Non-vested outstanding at December 31, 2017 731,975 22.16 |
Schedule of Components of Stock-based Compensation Expense | The following table summarizes the components of our stock-based compensation expense for the year ended December 31, 2017 (in thousands): 2017 Stock-based compensation expense related to stock option modifications $ 2,394 Cumulative stock-based compensation expense related to stock options recorded upon effectiveness of our IPO 6,236 Post-IPO stock-based compensation expense related to stock options 3,371 Stock-based compensation expense related to the issuance of common stock to directors 222 Stock-based compensation expense related to restricted stock units 753 Total stock-based compensation expense $ 12,976 |
Schedule of Stock-based Compensation Expense Included in Condensed Consolidated Statements of Operations | Stock-based compensation expense for restricted stock units, stock options and issuances of common stock is included in the following line items in the accompanying consolidated statements of operations for the year ended December 31, 2017 (in thousands): 2017 Cost of revenue Subscriptions, software and support $ 575 Professional services 1,295 Operating expenses Sales and marketing 3,233 Research and development 2,822 General and administrative 5,051 Total stock-based compensation expense $ 12,976 |
Convertible Preferred Stock a29
Convertible Preferred Stock and Stockholders’ Equity (Deficit) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Summary of Activity for Convertible Preferred Stock Issued and Outstanding | The following tables present a summary of activity for our convertible preferred stock issued and outstanding for the years ended December 31, 2017 , 2016 and 2015 (dollar amounts in thousands): Series A Convertible Preferred Stock Series B Convertible Preferred Stock Amount Shares Amount Shares Balance as of January 1, 2015 $ 16,197 12,043,108 $ 37,500 6,120,050 Accretion of dividends on convertible preferred stock 861 — — — Balance as of December 31, 2015 $ 17,058 12,043,108 $ 37,500 6,120,050 Accretion of dividends on convertible preferred stock 857 — — — Balance as of December 31, 2016 $ 17,915 12,043,108 $ 37,500 6,120,050 Accretion of dividends on convertible preferred stock 357 — — — Payment of accrued dividend to Series A convertible preferred stockholders (7,565 ) — — — Conversion of convertible preferred stock to common stock (10,707 ) (12,043,108 ) (37,500 ) (6,120,050 ) Balance as of December 31, 2017 $ — — $ — — |
Basic and Diluted Loss per Co30
Basic and Diluted Loss per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the computation of basic and diluted net loss per share for the years ended December 31 (in thousands, except per share data): Year Ended December 31, 2017 2016 2015 Numerator: Net loss $ (31,007 ) $ (12,461 ) $ (6,987 ) Accretion of dividends on convertible preferred stock 357 857 861 Net loss attributable to common stockholders $ (31,364 ) $ (13,318 ) $ (7,848 ) Denominator Weighted average common shares outstanding, basic and diluted 49,529,833 34,274,718 34,274,718 Net loss per share attributable to common stockholders, basic and diluted $ (0.63 ) $ (0.39 ) $ (0.23 ) |
Summary of Securities Excluded From Calculation of Weighted Average Common Shares | The following securities have been excluded from the calculation of weighted average common shares outstanding because the effect is anti-dilutive or performance or market conditions had not been met at the end of the period: Year Ended December 31, 2017 2016 2015 Convertible preferred stock: Series A convertible preferred stock — 12,043,108 12,043,108 Series B convertible preferred stock — 6,120,050 6,120,050 Warrant to purchase Series A convertible preferred stock — 84,360 84,360 Stock options 7,010,887 6,784,448 4,589,988 Restricted stock units 731,975 — — |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Future Minimum Gross and Net Lease Commitments | A summary of our future minimum lease commitments by year as of December 31, 2017 is as follows (in thousands): Office Leases Equipment Leases 2018 $ 7,722 $ 405 2019 8,043 216 2020 4,828 22 2021 2,503 — 2022 380 — Thereafter 1,046 — Total $ 24,522 $ 643 |
Segment and Geographic Inform32
Segment and Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Summary of Revenue By Geography | The following table summarizes revenue by geography for the years ended December 31 (in thousands): 2017 2016 2015 Domestic $ 128,997 $ 107,069 $ 89,043 International 47,740 25,854 22,161 Total $ 176,737 $ 132,923 $ 111,204 |
Selected Quarterly Informatio33
Selected Quarterly Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information | These quarterly results are not necessarily indicative of our operating results to be expected in the future. Three Months Ended Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 (in thousands) (unaudited) Consolidated Statement of Operations Data: Revenue: Subscriptions, software and support $ 25,398 $ 22,660 $ 22,012 $ 21,444 $ 19,365 $ 17,668 $ 17,321 $ 15,618 Professional services 25,164 21,988 21,186 16,885 14,382 13,077 15,146 20,346 Total revenue 50,562 44,648 43,198 38,329 33,747 30,745 32,467 35,964 Cost of revenue: Subscriptions, software and support 2,488 2,341 2,488 2,062 1,929 1,890 1,836 1,782 Professional services 16,169 14,272 14,149 10,628 8,670 9,315 11,723 12,978 Total cost of revenue 18,657 16,613 16,637 12,690 10,599 11,205 13,559 14,760 Gross profit 31,905 28,035 26,561 25,639 23,148 19,540 18,908 21,204 Operating expenses: Sales and marketing 22,463 19,725 22,775 17,003 14,660 14,480 13,831 11,166 Research and development 8,968 8,596 9,971 7,300 6,069 6,702 5,296 4,927 General and administrative 7,429 6,237 8,635 4,849 4,260 4,531 4,318 3,930 Total operating expenses 38,860 34,558 41,381 29,152 24,989 25,713 23,445 20,023 Operating (loss) income (6,955 ) (6,523 ) (14,820 ) (3,513 ) (1,841 ) (6,173 ) (4,537 ) 1,181 Other (income) expense: Other (income) expense, net (380 ) (425 ) (734 ) (499 ) 1,663 (67 ) 733 (537 ) Interest expense (income) 22 (2 ) 197 256 256 243 241 242 Total other (income) expense (358 ) (427 ) (537 ) (243 ) 1,919 176 974 (295 ) Net (loss) income before income taxes (6,597 ) (6,096 ) (14,283 ) (3,270 ) (3,760 ) (6,349 ) (5,511 ) 1,476 Income tax expense (benefit) 272 188 176 125 423 (1,610 ) (1,217 ) 721 Net (loss) income (1) $ (6,869 ) $ (6,284 ) $ (14,459 ) $ (3,395 ) $ (4,183 ) $ (4,739 ) $ (4,294 ) $ 755 (1) In the second quarter of 2017, we recorded $6.2 million of cumulative stock-based compensation expense upon the effectiveness of our IPO and $2.4 million of stock-based compensation expense related to the stock option modifications. See Note 7 for further discussion of stock-based compensation expense. |
Significant Accounting Polici34
Significant Accounting Policies - Additional Information (Details) | 1 Months Ended | 12 Months Ended | |||
Nov. 30, 2017$ / sharesshares | May 31, 2017USD ($)$ / sharesshares | Dec. 31, 2017USD ($)agency | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | |||||
Net proceeds from initial public offering | $ 80,213,000 | $ 0 | $ 0 | ||
Deferred offering costs | $ 2,400,000 | ||||
Percentage of license revenue | 1.00% | 1.00% | 1.90% | ||
Change in allowance for doubtful accounts | $ 0 | $ 0 | |||
Commission expense | 11,800,000 | 6,500,000 | $ 4,600,000 | ||
Foreign currency transactions, gains and (losses) | 2,600,000 | (1,500,000) | (1,300,000) | ||
Advertising expense | $ 3,000,000 | $ 1,400,000 | $ 500,000 | ||
Customer Concentration Risk | Sales Revenue, Net | Foreign Customers | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Concentration risk percentage | 27.00% | 19.50% | 19.90% | ||
Customer Concentration Risk | Sales Revenue, Net | Government Agencies | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Concentration risk percentage | 15.40% | 26.20% | 32.70% | ||
Customer Concentration Risk | Sales Revenue, Net | Federal Government Agencies | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Concentration risk percentage | 8.40% | 17.70% | 20.80% | ||
Number of federal government agencies | agency | 3 | ||||
Customer Concentration Risk | Accounts Receivable | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Concentration risk percentage | 7.00% | 17.20% | |||
Minimum | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
SaaS Subscriptions contracts term | 1 year | ||||
Term license subscription contracts term | 1 year | ||||
Maximum | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
SaaS Subscriptions contracts term | 5 years | ||||
Term license subscription contracts term | 5 years | ||||
Class A Common Stock | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Net proceeds from initial public offering | $ 77,800,000 | ||||
IPO | Class A Common Stock | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Sale of Stock, Number of Shares Issued in Transaction | shares | 7,187,500 | ||||
Sale of Stock, Price Per Share | $ / shares | $ 12 | ||||
Secondary Offering | Class A Common Stock | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Sale of Stock, Number of Shares Issued in Transaction | shares | 4,370,000 | ||||
Sale of Stock, Price Per Share | $ / shares | $ 20.25 | ||||
Computer software | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Property, plant and equipment, useful life | 3 years | ||||
Computer hardware | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Property, plant and equipment, useful life | 3 years | ||||
Equipment | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Property, plant and equipment, useful life | 5 years | ||||
Office furniture and fixtures | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Property, plant and equipment, useful life | 10 years |
Significant Accounting Polici35
Significant Accounting Policies - Summary of Liabilities Fair Value Measurements (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value measurements, Liabilities | $ 850 | |||
Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value measurements, Liabilities | $ 0 | 850 | $ 650 | $ 351 |
Series A Convertible Preferred Stock Warrant | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value measurements, Liabilities | 850 | |||
Series A Convertible Preferred Stock Warrant | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value measurements, Liabilities | $ 850 |
Significant Accounting Polici36
Significant Accounting Policies - Summary of Changes in Level 3 Instruments Measured at Fair Value On Recurring Basis (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance as of January 1, | $ 850 | ||
Balance as of December 31 | $ 850 | ||
Level 3 | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance as of January 1, | 850 | 650 | $ 351 |
Change in fair value of warrant liability | 341 | 200 | 299 |
Reclassification of warrant liability to equity | (1,191) | 0 | 0 |
Balance as of December 31 | $ 0 | $ 850 | $ 650 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 8,238 | $ 7,787 | |
Less: accumulated depreciation | (5,575) | (4,686) | |
Property and equipment, net | 2,663 | 3,101 | |
Depreciation and amortization expense | 900 | 800 | $ 800 |
Computer software | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 1,727 | 1,701 | |
Computer hardware | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 1,644 | 1,408 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 4,226 | 4,098 | |
Office furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 510 | 464 | |
Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 131 | $ 116 |
Accrued Expenses - Schedule of
Accrued Expenses - Schedule of Accrued Expenses (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Payables and Accruals [Abstract] | ||
Accrued contract labor costs | $ 3,424 | $ 743 |
Accrued hosting costs | 466 | 0 |
Accrued audit and tax expenses | 248 | 358 |
Accrued reimbursable employee expenses | 286 | 134 |
Accrued marketing and tradeshow expenses | 128 | 111 |
Other accrued expenses | 1,915 | 1,514 |
Total | $ 6,467 | $ 2,860 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | |||||
Nov. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Apr. 30, 2017 | Jan. 31, 2016 | Mar. 31, 2015 | |
Line of Credit Facility [Line Items] | |||||||
Loss on extinguishment of debt | $ (384,000) | $ 0 | $ 0 | ||||
Revolving Credit Facility | |||||||
Line of Credit Facility [Line Items] | |||||||
Credit facility | $ 20,000,000 | $ 10,000,000 | $ 5,000,000 | ||||
Term Loan | |||||||
Line of Credit Facility [Line Items] | |||||||
Credit facility | 20,000,000 | $ 20,000,000 | $ 10,000,000 | ||||
Line of credit, outstanding borrowings | 0 | ||||||
Term Loan | Other (Income) Expense | |||||||
Line of Credit Facility [Line Items] | |||||||
Loss on extinguishment of debt | $ (400,000) | ||||||
Subordinated Term Loan | |||||||
Line of Credit Facility [Line Items] | |||||||
Credit facility | $ 10,000,000 | ||||||
Minimum | |||||||
Line of Credit Facility [Line Items] | |||||||
Unused facility fee, revolving line of credit | 0.15% | ||||||
Adjusted quick ratio | 135.00% | ||||||
Minimum | London Interbank Offered Rate (LIBOR) | |||||||
Line of Credit Facility [Line Items] | |||||||
Additional interest rate margin | 2.00% | ||||||
Minimum | Prime Rate | |||||||
Line of Credit Facility [Line Items] | |||||||
Additional interest rate margin | 1.00% | ||||||
Maximum | |||||||
Line of Credit Facility [Line Items] | |||||||
Unused facility fee, revolving line of credit | 0.25% | ||||||
Maximum | London Interbank Offered Rate (LIBOR) | |||||||
Line of Credit Facility [Line Items] | |||||||
Additional interest rate margin | 2.50% | ||||||
Maximum | Prime Rate | |||||||
Line of Credit Facility [Line Items] | |||||||
Additional interest rate margin | 1.50% |
Income Taxes - Net Income (Loss
Income Taxes - Net Income (Loss) Before Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||||||||||
Domestic | $ (23,093) | $ (4,524) | $ 1,079 | ||||||||
Foreign | (7,153) | (9,620) | (7,688) | ||||||||
Total | $ (6,597) | $ (6,096) | $ (14,283) | $ (3,270) | $ (3,760) | $ (6,349) | $ (5,511) | $ 1,476 | $ (30,246) | $ (14,144) | $ (6,609) |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current: | |||||||||||
Federal | $ (65) | $ (627) | $ 390 | ||||||||
State | 68 | (200) | 62 | ||||||||
Foreign | 1,009 | 266 | 217 | ||||||||
Total current expense (benefit) | 1,012 | (561) | 669 | ||||||||
Deferred: | |||||||||||
Federal | (42) | (922) | (334) | ||||||||
State | 0 | (230) | 43 | ||||||||
Foreign | (209) | 30 | 0 | ||||||||
Total deferred expense (benefit) | (251) | (1,122) | (291) | ||||||||
Total income tax expense (benefit) | $ 272 | $ 188 | $ 176 | $ 125 | $ 423 | $ (1,610) | $ (1,217) | $ 721 | $ 761 | $ (1,683) | $ 378 |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of Statutory to Effective Income Tax Rate (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal statutory tax rate | 34.00% | 34.00% | 34.00% |
State tax expense | 4.90% | 1.40% | (0.90%) |
Foreign rate differential | (6.70%) | (17.80%) | (29.40%) |
Nondeductible expenses | (0.90%) | (2.30%) | (4.10%) |
Tax credits | 5.80% | 6.50% | 10.00% |
Unrecognized tax benefits | (0.70%) | (0.20%) | (1.80%) |
Other | (0.30%) | (0.20%) | (1.90%) |
Remeasurement of deferred taxes | (7.00%) | (0.00%) | (0.00%) |
Change in valuation allowance | (31.60%) | (9.60%) | (11.50%) |
Total | (2.50%) | 11.80% | (5.60%) |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets: | ||
Accrued vacation | $ 967 | $ 529 |
Bad debt | 109 | 159 |
Deferred revenue | 1,248 | 2,176 |
Deferred rent | 473 | 834 |
Tax credits | 4,169 | 2,401 |
Net operating losses | 10,413 | 2,939 |
Equity compensation | 1,207 | 0 |
Other | 287 | 929 |
Gross deferred tax assets | 18,873 | 9,967 |
Less: Valuation allowance | (12,328) | (2,642) |
Total deferred tax assets | 6,545 | 7,325 |
Deferred tax liabilities: | ||
Depreciation | (174) | (349) |
Unbilled receivables | (555) | (491) |
Prepaid expenses | (5,614) | (6,505) |
Other | (8) | 0 |
Total deferred tax liabilities | (6,351) | (7,345) |
Net deferred tax liability | $ 194 | |
Net deferred tax asset (liability) | $ (20) |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | |||
Beginning balance | $ 419 | $ 384 | $ 286 |
Additions for tax positions in current years | 232 | 171 | 98 |
Additions for tax positions in prior years | 0 | 0 | 0 |
Reductions due to lapse in statutes of limitations | 0 | (136) | 0 |
Settlements | 0 | 0 | 0 |
Ending balance | $ 651 | $ 419 | $ 384 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating Loss Carryforwards [Line Items] | |||
Income tax expense, related to the Tax Cuts and Jobs Act | $ 2,100 | ||
Operating loss carryforwards, state, tax effected | 1,600 | $ 100 | |
Net change in total valuation allowance | 9,700 | ||
Valuation allowance against foreign deferred tax assets | 12,328 | 2,642 | |
Unrecognized tax benefits, portion affecting tax rate | 500 | 400 | |
Recognized interest and penalties related to uncertain tax positions | 2 | 2 | $ 19 |
Cumulative balance of interest and penalties related to uncertain tax positions | 33 | 35 | |
Domestic Tax Authority | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | 25,300 | 1,800 | |
Federal tax credit carryforwards | 4,500 | 2,800 | |
State and Local Jurisdiction | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | 25,300 | 1,700 | |
Swiss Federal Tax Administration (FTA) | Foreign Tax Authority | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | 35,700 | $ 23,700 | |
Valuation allowance against foreign deferred tax assets | $ 3,500 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) $ in Thousands | Apr. 25, 2017 | May 31, 2017 | Jun. 30, 2017 | Dec. 31, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Service period for option exercise | 5 years | |||
Stock-based compensation expense | $ 12,976 | |||
Cumulative stock-based compensation expense related to stock options recorded upon effectiveness of our IPO | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 6,236 | |||
Cumulative stock-based compensation expense related to stock options recorded upon effectiveness of our IPO | Performance Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 6,200 | $ 6,200 | ||
Stock Option Modifications | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 2,400 | $ 2,400 | $ 2,394 | |
2017 Equity Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares available to be issued | 5,775,770 | |||
2017 Equity Incentive Plan | Class A Common Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares available to be issued | 6,421,442 | 6,538,262 | ||
2007 Stock Option Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares available to be issued | 421,442 | |||
Number of shares available for grants | 0 | |||
Period for which options can be granted | 10 years |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Estimate the Fair Value of Stock Options Granted (Detail) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Goods and Nonemployee Services Transaction [Line Items] | |||
Expected term (in years) | 6 years 6 months | 6 years 6 months | 6 years 6 months |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Minimum | |||
Share-based Goods and Nonemployee Services Transaction [Line Items] | |||
Risk-free interest rate | 1.90% | 1.30% | 1.70% |
Expected volatility | 38.10% | 40.90% | 39.70% |
Maximum | |||
Share-based Goods and Nonemployee Services Transaction [Line Items] | |||
Risk-free interest rate | 2.20% | 1.50% | 1.90% |
Expected volatility | 40.60% | 42.00% | 44.40% |
Stock-Based Compensation - Su48
Stock-Based Compensation - Summary of the Stock Option Activity (Detail) - USD ($) | Apr. 25, 2017 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 |
Number of Shares | ||||
Outstanding at January 1, 2017 | 6,784,448 | |||
Granted | 1,256,200 | |||
Exercised | (876,121) | |||
Canceled | (153,640) | |||
Outstanding at December 31, 2017 | 7,010,887 | 6,784,448 | ||
Exercisable at December 31, 2017 | 2,800,447 | |||
Weighted Average Exercise Price | ||||
Outstanding at January 1, 2017 | $ 4.65 | |||
Granted | 11.92 | |||
Exercised | 1.27 | |||
Canceled | 7.29 | |||
Outstanding at December 31, 2017 | 6.36 | $ 4.65 | ||
Exercisable at December 31, 2017 | $ 2.07 | |||
Weighted Average Remaining Contractual Term (Years) | ||||
Outstanding at January 1, 2017 | 6 years 7 months | 6 years 6 months | ||
Outstanding at December 31, 2017 | 6 years 7 months | 6 years 6 months | ||
Exercisable at December 31, 2017 | 3 years 11 months | |||
Aggregate Intrinsic Value (in thousands) | ||||
Outstanding at January 1, 2017 | $ 44,259,000 | |||
Exercised | 14,807,000 | |||
Outstanding at December 31, 2017 | 176,122,000 | $ 44,259,000 | ||
Exercisable at December 31, 2017 | $ 82,367,000 | |||
Weighted average grant-date fair value of options granted (in usd per share) | $ 5.05 | $ 4.35 | ||
Total fair value of stock options vested | $ 5,600,000 | $ 0 | ||
Total compensation cost related to unvested stock options not yet recognized | $ 11,000,000 | |||
Weighted average period, unvested stock options | 2 years 9 months 18 days | |||
Stock options issued to purchase common stock (in shares) | 216,160 | |||
Stock-based compensation expense | $ 12,976,000 | |||
Stock Option Modifications | ||||
Aggregate Intrinsic Value (in thousands) | ||||
Stock-based compensation expense | $ 2,400,000 | $ 2,400,000 | $ 2,394,000 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Restricted Stock Unit Activity (Details) - Restricted Stock Units $ / shares in Units, $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($)$ / sharesshares | |
Number of Shares | |
Non-vested outstanding at December 31, 2016 (in shares) | shares | 0 |
Granted (in shares) | shares | 738,055 |
Vesting of restricted stock units (in shares) | shares | (4,930) |
Canceled (in shares) | shares | (1,150) |
Non-vested outstanding at December 31, 2017 (in shares) | shares | 731,975 |
Weighted Average Grant Date Fair Value | |
Non-vested outstanding at December 31, 2016 (in usd per share) | $ / shares | $ 0 |
Granted (in usd per share) | $ / shares | 22.15 |
Vested (in usd per share) | $ / shares | 20.24 |
Canceled (in usd per share) | $ / shares | 21.40 |
Non-vested outstanding at December 31, 2017 (in usd per share) | $ / shares | $ 22.16 |
Total unrecognized compensation cost related to unvested restricted stock units | $ | $ 15.6 |
Weighted average remaining vesting period | 2 years 9 months 18 days |
Stock-Based Compensation - Sc50
Stock-Based Compensation - Schedule of Stock-based Compensation Expense (Detail) - USD ($) $ in Thousands | Apr. 25, 2017 | Jun. 30, 2017 | Dec. 31, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense | $ 12,976 | ||
Stock-based compensation expense related to stock option modifications | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense | $ 2,400 | $ 2,400 | 2,394 |
Cumulative stock-based compensation expense related to stock options recorded upon effectiveness of our IPO | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense | 6,236 | ||
Post-IPO stock-based compensation expense related to stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense | 3,371 | ||
Stock-based compensation expense related to the issuance of common stock to directors | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense | 222 | ||
Stock-based compensation expense related to restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense | $ 753 |
Stock-Based Compensation - Sc51
Stock-Based Compensation - Schedule of Stock-based Compensation Expense Included in Condensed Consolidated Statements of Operations (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |
Total stock-based compensation expense | $ 12,976 |
Subscriptions, software and support | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |
Total stock-based compensation expense | 575 |
Professional services | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |
Total stock-based compensation expense | 1,295 |
Sales and marketing | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |
Total stock-based compensation expense | 3,233 |
Research and development | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |
Total stock-based compensation expense | 2,822 |
General and administrative | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |
Total stock-based compensation expense | $ 5,051 |
Convertible Preferred Stock a52
Convertible Preferred Stock and Stockholders' Equity (Deficit) - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2017voteshares | |
Temporary Equity [Line Items] | |
Convertible preferred stock outstanding shares converted into common stock (in shares) | 1 |
Class B Common Stock | |
Temporary Equity [Line Items] | |
Conversion of convertible preferred stock to common stock (in shares) | 18,163,158 |
Preferred stock conversion basis | 1 |
Convertible preferred stock outstanding shares converted into common stock (in shares) | 1 |
Number of votes entitled to stockholders | vote | 10 |
Class A Common Stock | |
Temporary Equity [Line Items] | |
Number of votes entitled to stockholders | vote | 1 |
Conversion of stock (in shares) | 1 |
Maximum percentage of aggregate voting power of capital stock which triggers conversion of stock | 10.00% |
Convertible Preferred Stock a53
Convertible Preferred Stock and Stockholders' Equity (Deficit) - Summary of Activity for Convertible Preferred Stock Issued and Outstanding (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Increase (Decrease) in Temporary Equity [Roll Forward] | |||
Payment of accrued dividend to Series A convertible preferred stockholders | $ (7,565) | $ 0 | $ 0 |
Series A Convertible Preferred Stock | |||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||
Beginning balance | $ 17,915 | $ 17,058 | $ 16,197 |
Beginning balance (in shares) | 12,043,108 | 12,043,108 | 12,043,108 |
Accretion of dividends on convertible preferred stock | $ 357 | $ 857 | $ 861 |
Payment of accrued dividend to Series A convertible preferred stockholders | $ (7,565) | ||
Conversion of convertible preferred stock to common stock (in shares) | (12,043,108) | ||
Conversion of convertible preferred stock to common stock | $ (10,707) | ||
Ending balance | $ 0 | $ 17,915 | $ 17,058 |
Ending balance (in shares) | 0 | 12,043,108 | 12,043,108 |
Series B Convertible Preferred Stock | |||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||
Beginning balance | $ 37,500 | $ 37,500 | $ 37,500 |
Beginning balance (in shares) | 6,120,050 | 6,120,050 | 6,120,050 |
Accretion of dividends on convertible preferred stock | $ 0 | $ 0 | $ 0 |
Payment of accrued dividend to Series A convertible preferred stockholders | $ 0 | ||
Conversion of convertible preferred stock to common stock (in shares) | (6,120,050) | ||
Conversion of convertible preferred stock to common stock | $ (37,500) | ||
Ending balance | $ 0 | $ 37,500 | $ 37,500 |
Ending balance (in shares) | 0 | 6,120,050 | 6,120,050 |
Warrants - Additional Informati
Warrants - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | Dec. 31, 2017 | May 31, 2017 |
Class of Warrant or Right [Line Items] | ||
Warrant exercise price (in dollars per share) | $ 0.88905 | |
Warrant | ||
Class of Warrant or Right [Line Items] | ||
Fair value of warrant | $ 1.2 | |
Series A Convertible Preferred Stock | ||
Class of Warrant or Right [Line Items] | ||
Warrant to purchase shares of preferred stock (in shares) | 84,360 | |
Class B Common Stock | ||
Class of Warrant or Right [Line Items] | ||
Shares issued on cashless exercise of warrants (in shares) | 79,363 | |
Class B Common Stock | Prior to IPO | ||
Class of Warrant or Right [Line Items] | ||
Warrant to purchase shares of preferred stock (in shares) | 84,360 |
Basic and Diluted Loss per Co55
Basic and Diluted Loss per Common Share - Computation of Net Loss per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Numerator: | |||||||||||
Net loss | $ (6,869) | $ (6,284) | $ (14,459) | $ (3,395) | $ (4,183) | $ (4,739) | $ (4,294) | $ 755 | $ (31,007) | $ (12,461) | $ (6,987) |
Accretion of dividends on convertible preferred stock | 357 | 857 | 861 | ||||||||
Net loss attributable to common stockholders | $ (31,364) | $ (13,318) | $ (7,848) | ||||||||
Denominator | |||||||||||
Weighted average common shares outstanding, basic and diluted (in shares) | 49,529,833 | 34,274,718 | 34,274,718 | ||||||||
Net loss per share attributable to common stockholders, basic and diluted (in usd per share) | $ (0.63) | $ (0.39) | $ (0.23) |
Basic and Diluted Loss per Co56
Basic and Diluted Loss per Common Share - Summary of Securities Excluded From Calculation of Weighted Average Common Shares Outstanding (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Series A Convertible Preferred Stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Convertible preferred stock (in shares) | 0 | 12,043,108 | 12,043,108 |
Series B Convertible Preferred Stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Convertible preferred stock (in shares) | 0 | 6,120,050 | 6,120,050 |
Warrant To Purchase Series A Convertible Preferred Stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Convertible preferred stock (in shares) | 0 | 84,360 | 84,360 |
Stock Options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Convertible preferred stock (in shares) | 7,010,887 | 6,784,448 | 4,589,988 |
Restricted Stock Units | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Convertible preferred stock (in shares) | 731,975 | 0 | 0 |
Commitments and Contingencies -
Commitments and Contingencies - Summary of Future Minimum Lease Payments (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Office Leases | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2,018 | $ 7,722 |
2,019 | 8,043 |
2,020 | 4,828 |
2,021 | 2,503 |
2,022 | 380 |
Thereafter | 1,046 |
Future minimum lease commitments, net | 24,522 |
Equipment Leases | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2,018 | 405 |
2,019 | 216 |
2,020 | 22 |
2,021 | 0 |
2,022 | 0 |
Thereafter | 0 |
Future minimum lease commitments, net | $ 643 |
Commitments and Contingencies58
Commitments and Contingencies -Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Deferred rent, noncurrent | $ 2 | $ 2.4 | |
Rental income from subtenant | 0.5 | 0.6 | $ 0.6 |
Total rent and lease expense | 7 | 6.6 | $ 4.6 |
Payment of royalty fees | 0.3 | ||
Outstanding letters of credit | $ 1.1 | $ 1.3 |
Segment and Geographic Inform59
Segment and Geographic Information - Summary of Revenues By Geography (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total revenue | $ 50,562 | $ 44,648 | $ 43,198 | $ 38,329 | $ 33,747 | $ 30,745 | $ 32,467 | $ 35,964 | $ 176,737 | $ 132,923 | $ 111,204 |
Domestic | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total revenue | 128,997 | 107,069 | 89,043 | ||||||||
International | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total revenue | $ 47,740 | $ 25,854 | $ 22,161 |
Retirement Plans (Details)
Retirement Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Eligibility to participate, days of service | 45 days | ||
Eligibility to participate, years of age | 21 years | ||
Maximum annual contributions per employee | 75.00% | ||
Vesting percentage of employer contribution | 25.00% | ||
Vesting term of employer contribution | 4 years | ||
Contribution expense related to employer matching contributions | $ 3.3 | $ 2.6 | $ 1.9 |
Foreign Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Contribution expense related to employer matching contributions | $ 0.9 | $ 0.7 | $ 0.5 |
Selected Quarterly Informatio61
Selected Quarterly Information (Unaudited) (Details) - USD ($) $ in Thousands | Apr. 25, 2017 | May 31, 2017 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Stock-based compensation expense | $ 12,976 | ||||||||||||
Revenue: | |||||||||||||
Subscriptions, software and support | $ 25,398 | $ 22,660 | $ 22,012 | $ 21,444 | $ 19,365 | $ 17,668 | $ 17,321 | $ 15,618 | 91,514 | $ 69,972 | $ 53,207 | ||
Professional services | 25,164 | 21,988 | 21,186 | 16,885 | 14,382 | 13,077 | 15,146 | 20,346 | 85,223 | 62,951 | 57,997 | ||
Total revenue | 50,562 | 44,648 | 43,198 | 38,329 | 33,747 | 30,745 | 32,467 | 35,964 | 176,737 | 132,923 | 111,204 | ||
Cost of revenue: | |||||||||||||
Subscriptions, software and support | 2,488 | 2,341 | 2,488 | 2,062 | 1,929 | 1,890 | 1,836 | 1,782 | 9,379 | 7,437 | 6,079 | ||
Professional services | 16,169 | 14,272 | 14,149 | 10,628 | 8,670 | 9,315 | 11,723 | 12,978 | 55,218 | 42,686 | 42,402 | ||
Total cost of revenue | 18,657 | 16,613 | 16,637 | 12,690 | 10,599 | 11,205 | 13,559 | 14,760 | 64,597 | 50,123 | 48,481 | ||
Gross profit | 31,905 | 28,035 | 26,561 | 25,639 | 23,148 | 19,540 | 18,908 | 21,204 | 112,140 | 82,800 | 62,723 | ||
Operating expenses: | |||||||||||||
Sales and marketing | 22,463 | 19,725 | 22,775 | 17,003 | 14,660 | 14,480 | 13,831 | 11,166 | 81,966 | 54,137 | 38,300 | ||
Research and development | 8,968 | 8,596 | 9,971 | 7,300 | 6,069 | 6,702 | 5,296 | 4,927 | 34,835 | 22,994 | 16,750 | ||
General and administrative | 7,429 | 6,237 | 8,635 | 4,849 | 4,260 | 4,531 | 4,318 | 3,930 | 27,150 | 17,039 | 12,515 | ||
Total operating expenses | 38,860 | 34,558 | 41,381 | 29,152 | 24,989 | 25,713 | 23,445 | 20,023 | 143,951 | 94,170 | 67,565 | ||
Operating (loss) income | (6,955) | (6,523) | (14,820) | (3,513) | (1,841) | (6,173) | (4,537) | 1,181 | (31,811) | (11,370) | (4,842) | ||
Other expense (income): | |||||||||||||
Other expense (income), net | (380) | (425) | (734) | (499) | 1,663 | (67) | 733 | (537) | (2,038) | 1,792 | 1,579 | ||
Interest expense | 22 | (2) | 197 | 256 | 256 | 243 | 241 | 242 | 473 | 982 | 188 | ||
Total other expense (income) | (358) | (427) | (537) | (243) | 1,919 | 176 | 974 | (295) | (1,565) | 2,774 | 1,767 | ||
Net (loss) income before income taxes | (6,597) | (6,096) | (14,283) | (3,270) | (3,760) | (6,349) | (5,511) | 1,476 | (30,246) | (14,144) | (6,609) | ||
Income tax (benefit) expense | 272 | 188 | 176 | 125 | 423 | (1,610) | (1,217) | 721 | 761 | (1,683) | 378 | ||
Net loss | $ (6,869) | $ (6,284) | (14,459) | $ (3,395) | $ (4,183) | $ (4,739) | $ (4,294) | $ 755 | (31,007) | $ (12,461) | $ (6,987) | ||
Cumulative stock-based compensation expense related to stock options recorded upon effectiveness of our IPO | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Stock-based compensation expense | 6,236 | ||||||||||||
Cumulative stock-based compensation expense related to stock options recorded upon effectiveness of our IPO | Performance Shares | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Stock-based compensation expense | $ 6,200 | 6,200 | |||||||||||
Stock Option Modifications | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Stock-based compensation expense | $ 2,400 | $ 2,400 | $ 2,394 |