Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 12, 2019 | Jun. 30, 2018 | |
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 | Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
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 | 30,447,805 | ||
Entity Public Float | $ 696,466,225 | ||
Class B Common Stock | |||
Document and Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 33,807,128 | ||
Entity Public Float | $ 119,394,534 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets | ||
Cash and cash equivalents | $ 94,930 | $ 73,758 |
Accounts receivable, net of allowance of $600 and $400 at December 31, 2018 and 2017, respectively | 79,383 | 55,315 |
Deferred commissions, current | 14,020 | 9,117 |
Prepaid expenses and other current assets | 21,293 | 7,032 |
Total current assets | 209,626 | 145,222 |
Property and equipment, net | 7,539 | 2,663 |
Deferred commissions, net of current portion | 15,088 | 12,376 |
Deferred tax assets | 326 | 281 |
Other assets | 601 | 510 |
Total assets | 233,180 | 161,052 |
Current liabilities | ||
Accounts payable | 9,249 | 5,226 |
Accrued expenses | 7,464 | 6,467 |
Accrued compensation and related benefits | 13,796 | 12,075 |
Deferred revenue, current | 95,523 | 70,165 |
Other current liabilities | 2,369 | 1,182 |
Total current liabilities | 128,401 | 95,115 |
Deferred tax liabilities | 42 | 87 |
Deferred revenue, net of current portion | 16,145 | 18,922 |
Deferred rent, net of current portion | 15,400 | 1,404 |
Total liabilities | 159,988 | 115,528 |
Stockholders’ equity | ||
Additional paid-in capital | 218,284 | 141,268 |
Accumulated other comprehensive income | 542 | 439 |
Accumulated deficit | (145,640) | (96,189) |
Total stockholders’ equity | 73,192 | 45,524 |
Total liabilities and stockholders’ equity | 233,180 | 161,052 |
Class A Common Stock | ||
Stockholders’ equity | ||
Common stock | 3 | 1 |
Class B Common Stock | ||
Stockholders’ equity | ||
Common stock | $ 3 | $ 5 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Allowance for doubtful accounts | $ 600 | $ 400 |
Common stock, par value (in usd per share) | $ 0.0001 | |
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 | 500,000,000 |
Common stock, shares issued (in shares) | 29,626,054 | 13,030,081 |
Common stock, shares outstanding (in shares) | 29,626,054 | 13,030,081 |
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 | 100,000,000 |
Common stock, shares issued (in shares) | 34,290,383 | 47,569,796 |
Common stock, shares outstanding (in shares) | 34,290,383 | 47,569,796 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenue: | |||||||||||
Total revenue | $ 60,216 | $ 54,948 | $ 59,883 | $ 51,696 | $ 50,562 | $ 44,648 | $ 43,198 | $ 38,329 | $ 226,743 | $ 176,737 | $ 132,923 |
Cost of revenue: | |||||||||||
Total cost of revenue | 22,210 | 20,092 | 21,574 | 21,049 | 18,657 | 16,613 | 16,637 | 12,690 | 84,925 | 64,597 | 50,123 |
Gross profit | 38,006 | 34,856 | 38,309 | 30,647 | 31,905 | 28,035 | 26,561 | 25,639 | 141,818 | 112,140 | 82,800 |
Operating expenses: | |||||||||||
Sales and marketing | 30,177 | 25,467 | 27,384 | 22,964 | 22,463 | 19,725 | 22,775 | 17,003 | 105,992 | 81,966 | 54,137 |
Research and development | 12,332 | 11,737 | 10,785 | 9,870 | 8,968 | 8,596 | 9,971 | 7,300 | 44,724 | 34,835 | 22,994 |
General and administrative | 8,799 | 12,537 | 8,425 | 8,060 | 7,429 | 6,237 | 8,635 | 4,849 | 37,821 | 27,150 | 17,039 |
Total operating expenses | 51,308 | 49,741 | 46,594 | 40,894 | 38,860 | 34,558 | 41,381 | 29,152 | 188,537 | 143,951 | 94,170 |
Operating loss | (13,302) | (14,885) | (8,285) | (10,247) | (6,955) | (6,523) | (14,820) | (3,513) | (46,719) | (31,811) | (11,370) |
Other expense (income): | |||||||||||
Other expense (income), net | 510 | 110 | 2,593 | (918) | (380) | (425) | (734) | (499) | 2,295 | (2,038) | 1,792 |
Interest expense | 64 | 67 | 54 | 13 | 22 | (2) | 197 | 256 | 198 | 473 | 982 |
Total other expense (income) | 574 | 177 | 2,647 | (905) | (358) | (427) | (537) | (243) | 2,493 | (1,565) | 2,774 |
Loss before income taxes | (13,876) | (15,062) | (10,932) | (9,342) | (6,597) | (6,096) | (14,283) | (3,270) | (49,212) | (30,246) | (14,144) |
Income tax expense (benefit) | 27 | (34) | 35 | 211 | 272 | 188 | 176 | 125 | 239 | 761 | (1,683) |
Net loss | (13,903) | (15,028) | (10,967) | (9,553) | (6,869) | (6,284) | (14,459) | (3,395) | (49,451) | (31,007) | (12,461) |
Accretion of dividends on convertible preferred stock | 0 | 357 | 857 | ||||||||
Net loss attributable to common stockholders | $ (49,451) | $ (31,364) | $ (13,318) | ||||||||
Net loss per share attributable to common stockholders: | |||||||||||
Basic and diluted (in dollar per share) | $ (0.80) | $ (0.63) | $ (0.39) | ||||||||
Weighted average common shares outstanding: | |||||||||||
Basic and diluted (in shares) | 62,140,684 | 49,529,833 | 34,274,718 | ||||||||
Subscriptions, software and support | |||||||||||
Revenue: | |||||||||||
Total revenue | 35,108 | 30,905 | 33,047 | 26,952 | 25,398 | 22,660 | 22,012 | 21,444 | $ 126,012 | $ 91,514 | $ 69,972 |
Cost of revenue: | |||||||||||
Total cost of revenue | 3,284 | 3,261 | 2,824 | 2,628 | 2,488 | 2,341 | 2,488 | 2,062 | 11,997 | 9,379 | 7,437 |
Professional services | |||||||||||
Revenue: | |||||||||||
Total revenue | 25,108 | 24,043 | 26,836 | 24,744 | 25,164 | 21,988 | 21,186 | 16,885 | 100,731 | 85,223 | 62,951 |
Cost of revenue: | |||||||||||
Total cost of revenue | $ 18,926 | $ 16,831 | $ 18,750 | $ 18,421 | $ 16,169 | $ 14,272 | $ 14,149 | $ 10,628 | $ 72,928 | $ 55,218 | $ 42,686 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (49,451) | $ (31,007) | $ (12,461) |
Comprehensive loss, net of income taxes: | |||
Foreign currency translation adjustment | 103 | (891) | 359 |
Total other comprehensive loss, net of income taxes | $ (49,348) | $ (31,898) | $ (12,102) |
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 |
Beginning balance (in shares) at Dec. 31, 2015 | 34,274,718 | ||||||
Beginning 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 | |||||
Ending balance (in shares) at Dec. 31, 2016 | 34,274,718 | ||||||
Ending 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) | |||||
Ending balance (in shares) at Dec. 31, 2017 | 60,599,877 | ||||||
Ending balance at Dec. 31, 2017 | 45,524 | $ 6 | 141,268 | 439 | (96,189) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net loss | (49,451) | (49,451) | |||||
Issuance of common stock from initial public offering, net of issuance costs (in shares) | 1,675,000 | ||||||
Issuance of common stock from initial public offering, net of issuance costs | $ 57,829 | 57,829 | |||||
Issuance of common stock to directors (in shares) | 11,952 | ||||||
Vesting of restricted stock units (in shares) | 143,390 | 143,390 | |||||
Exercise of stock options (in shares) | 1,486,218 | 1,486,218 | |||||
Exercise of stock options | $ 3,133 | 3,133 | |||||
Stock-based compensation expense | 16,054 | 16,054 | |||||
Other comprehensive loss | 103 | 103 | |||||
Ending balance (in shares) at Dec. 31, 2018 | 63,916,437 | ||||||
Ending balance at Dec. 31, 2018 | $ 73,192 | $ 6 | $ 218,284 | $ 542 | $ (145,640) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | |||
Net loss | $ (49,451) | $ (31,007) | $ (12,461) |
Adjustments to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities [Abstract] | |||
Depreciation and amortization | 2,021 | 886 | 764 |
Gain on disposal of equipment | (4) | 0 | 0 |
Bad debt expense | 211 | 62 | 7 |
Deferred income taxes | (218) | (251) | (1,122) |
Stock-based compensation | 16,054 | 12,976 | |
Fair value adjustment for warrant liability | 0 | 341 | 200 |
Loss on extinguishment of debt | 0 | 384 | 0 |
Changes in assets and liabilities: | |||
Accounts receivable | (23,332) | (9,716) | (11,154) |
Prepaid expenses and other assets | (1,025) | (4,162) | (1,665) |
Deferred commissions | (7,615) | (3,487) | (5,335) |
Accounts payable and accrued expenses | 7,461 | 4,128 | 1,287 |
Accrued compensation and related benefits | (3) | 2,365 | 3,717 |
Other current liabilities | 1,823 | 383 | 19 |
Deferred revenue | 23,023 | 18,344 | 17,410 |
Deferred rent, non-current | (266) | (374) | 577 |
Net cash used in operating activities | (31,321) | (9,128) | (7,756) |
Cash flows from investing activities: | |||
Purchases of property and equipment | (7,014) | (433) | (984) |
Proceeds from sale of equipment | 4 | 0 | 0 |
Net cash used in investing activities | (7,010) | (433) | (984) |
Cash flows from financing activities: | |||
Proceeds from initial public offering, net of underwriting discounts | 0 | 80,213 | 0 |
Proceeds from public offering, net of underwriting discounts | 58,258 | 0 | 0 |
Payment of costs related to public offerings | (429) | (2,424) | 0 |
Payment of dividend to Series A preferred stockholders | 0 | (7,565) | 0 |
Proceeds from exercise of common stock options | 3,133 | 1,108 | 0 |
Proceeds from issuance of long-term debt, net of debt issuance costs | 0 | 19,616 | 20,000 |
Repayment of long-term debt | 0 | (40,000) | (10,000) |
Net cash provided by financing activities | 60,962 | 50,948 | 10,000 |
Effect of foreign exchange rate changes on cash and cash equivalents | (1,459) | 1,228 | (1,510) |
Net increase (decrease) in cash and cash equivalents | 21,172 | 42,615 | (250) |
Cash and cash equivalents, beginning of period | 73,758 | 31,143 | 31,393 |
Cash and cash equivalents, end of period | 94,930 | 73,758 | 31,143 |
Supplemental disclosure of cash flow information: | |||
Cash paid for interest | 46 | 515 | 895 |
Cash paid for income taxes | 680 | 615 | 610 |
Supplemental disclosure of non-cash financing activities: | |||
Accretion of dividends on convertible preferred stock | 0 | 357 | 857 |
Conversion of Convertible Preferred Stock to Common Stock | |||
Supplemental disclosure of non-cash financing activities: | |||
Conversion of convertible stock | 0 | 48,207 | 0 |
Conversion of Convertible Preferred Stock Warrant to Common Stock Warrant | |||
Supplemental disclosure of non-cash financing activities: | |||
Conversion of convertible stock | $ 0 | $ 1,191 | $ 0 |
Organization and Description of
Organization and Description of Business | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Organization and Description of Business | Organization and Description of BusinessAppian Corporation (together with its subsidiaries, “Appian,” the “Company,” “we” or “our”) provides a low-code software development platform that allows companies to rapidly build powerful business 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 operate in Canada, Switzerland, the United Kingdom, France, Germany, the Netherlands, Italy, Australia, Spain, Singapore and Sweden. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
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 (“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 ("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 the IPO. 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 sold in the secondary offering. Public Offering In August 2018, we completed an underwritten public offering of 2,000,000 shares of our Class A common stock, of which 1,675,000 shares of Class A common stock were sold by us and 325,000 shares of Class A common stock were sold by existing stockholders, at on offering price to the public of $35.15 per share. Our net proceeds from the offering were $57.8 million, after deducting underwriting discounts and commissions and offering expenses. We did not receive any of the proceeds from the sale of shares by the selling stockholders. Revenue Recognition We generate revenue primarily through sales of subscriptions to our platform, as well as professional services. To a lesser extent, we also generate revenue from the sale of perpetual software license agreements and associated maintenance and support. 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 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. Revenue from our perpetual software licenses was 2.0% of our total revenue for 2018. Revenue from our perpetual software licenses was less than 1.0% of our total revenue for each of 2017 and 2016. We generally charge subscription fees on a per-user basis and, to a lesser degree, non-user based single application licenses. 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 five 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 five Perpetual Licenses Our perpetual license revenue is derived from customers with perpetual licenses to our platform and associated maintenance and support contracts. We recognize revenue from perpetual licenses on the date of delivery to our customer. We sell maintenance and support to perpetual license customers separately from the perpetual licenses pursuant to agreements that generally renew annually. Maintenance and support revenue is deferred and recognized ratably over the term of the support period. 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, term license subscriptions and perpetual licenses 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. Perpetual Licenses For multiple element arrangements involving our perpetual software licenses, we allocate revenue to the software license arrangement by determining if VSOE of fair value exists for the undelivered elements, which are usually maintenance and support and professional services. In situations where VSOE of fair value exists for the undelivered elements, we apply the residual method whereby the fees allocated to license revenue are recognized upon delivery, the fees allocated to maintenance and support revenue are recognized over the service period and the fees allocated to professional services and training are recognized as performed. In instances where we lack VSOE of fair value for the undelivered elements, revenue is either deferred until the final element is delivered or recognized ratably over the service period when the only undelivered elements are either professional services or maintenance and support. We have VSOE for maintenance and support elements and professional services elements performed on a time and materials basis. VSOE of fair value is based upon the price charged when the same element is sold separately. In determining VSOE of fair value, we require that a substantial majority of the selling prices fall within a reasonably narrow pricing range. We reassess VSOE annually or more frequently if required. 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. Deposits held with banks may exceed the amount of insurance provided on such deposits. 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 15.7%, 15.4% and 26.2% of our revenue for the years ended December 31, 2018, 2017 and 2016, respectively, of which the top three federal government agencies generated 7.8%, 8.4% and 17.7% of our revenue for the years ended December 31, 2018, 2017 and 2016, respectively. Additionally, 28.7%, 27.0% and 19.5% of our revenue during the years ended December 31, 2018, 2017 and 2016, respectively, was generated from foreign customers. No single end-customer accounted for more than 10% of accounts receivable at December 31, 2018 or 2017. 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. Activity within the allowance for doubtful accounts was as follows (in thousands): Year Ended December 31, 2018 2017 2016 Balance as of January 1 $ 400 $ 400 $ 400 Additions 211 62 7 Less write-offs, net of recoveries (11) (62) (7) Balance as of December 31 $ 600 $ 400 $ 400 Non-trade Receivables We record non-trade receivables to reflect amounts due for activities other than sales of subscriptions to our platform and professional services. As of December 31, 2018, our non-trade receivables related entirely to a receivable resulting from our tenant improvement allowance. The tenant improvement allowance receivable was $14.4 million as of December 31, 2018 and is classified within prepaid expenses and other current assets in the accompanying consolidated balance sheets. We recognized our initial tenant improvement allowance receivable related to our new headquarters once we took initial possession of the space in October 2018. As of December 31, 2017, we had no non-trade receivables. 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 $15.6 million, $11.8 million and $6.5 million for the years ended December 31, 2018, 2017 and 2016, 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, 2018, 2017 and 2016. 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, 2018 and December 31, 2017 because of the relatively short duration of these instruments. 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 Using Significant Unobservable Inputs There were no assets or liabilities in our Level 3 instruments measured at fair value on a recurring basis during the year ended December 31, 2018. 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 and 2016 (in thousands): Year Ended December 31, 2017 2016 Balance as of January 1, $ 850 $ 650 Change in fair value of warrant liability 341 200 Reclassification of warrant liability to equity (1,191) — Balance as of December 31, $ — $ 850 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 Option Pricing Model. The fair value of RSUs is based on the closing market price of our common stock on the Nasdaq Global Market on the date of grant. 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 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, 2018, 2017 and 2016, 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. 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’ equity (deficit) and other comprehensive 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 losses of $3.0 million for the year ended December 31, 2018, net transaction gains of $2.6 million for the year ended December 31, 2017 and net transaction losses of $1.5 million for the year ended December 31, 2016. 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 $3.9 million, $3.0 million and $1.4 million for the years ended December 31, 2018, 2017 and 2016, respectively. Emerging Growth Company Status We are an “emerging growth company” as defined in the Jumpstart Our Business Startups Act (the "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 Tax Cuts and Jobs Act (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”) allowed us to record provisional amounts in earnings for the year ended 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 were required to complete our tax accounting for the TCJA in the period when we obtained, prepared, and analyzed the information to complete the income tax accounting. We completed our tax accounting for the TCJA in 2018. 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 became effective on a prospective basis beginning on January 1, 2018. The adoption of ASU 2017-09 did not have an impact on our consolidated financial statements for the year ended December 31, 2018. Not Yet Adopted In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”), which provides new guidance for revenue recognition. ASU 2014-09 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 2014-09 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. 2016-08, Principal Versus Agent Considerations (Reporting Revenue Gross Versus Net) (“ASU 2016-08”), which clarifies implementation guidance on principal versus agent considerations in ASU 2014-09. 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 2014-09. 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 have elected to avail ourselves of the JOBS Act extended transition period that permits us to defer adoption until January 1, 2019. In accordance with guidance, the new standard will be adopted in our Annual Report on Form 10-K for the fiscal year ending December 31, 2019 but will not be adopted in our Quarterly Reports on Form 10-Q to be filed during 2019. The ASU 2014-09 guidance allows two methods of adoption: retrospectively to each prior reporting period (full retrospective method) or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (modified retrospective method). We are going to adopt the new standard using the modified retrospective method. We do not expect the new standard to have a materia |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment consisted of the following as of December 31 (in thousands): 2018 2017 Leasehold improvements $ 9,958 $ 4,226 Computer hardware 2,535 1,644 Computer software 1,727 1,727 Office furniture and fixtures 649 510 Equipment 138 131 15,007 8,238 Less: accumulated depreciation (7,468) (5,575) Property and equipment, net $ 7,539 $ 2,663 Depreciation and amortization totaled $2.0 million, $0.9 million and $0.8 million for the years ended December 31, 2018, 2017 and 2016, respectively. |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Dec. 31, 2018 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Accrued Expenses Accrued expenses consisted of the following as of December 31 (in thousands): 2018 2017 Accrued contract labor costs $ 3,128 $ 3,424 Accrued third party license fees 729 235 Accrued hosting costs 579 466 Accrued reimbursable employee expenses 459 286 Accrued audit and tax expenses 375 248 Accrued marketing and tradeshow expenses 229 128 Other accrued expenses 1,965 1,680 Total $ 7,464 $ 6,467 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Debt 2017 Financing Facility In April 2017, we entered into a 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, our 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 this 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 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes For the years ended December 31, 2018, 2017 and 2016, our loss before income taxes was comprised of the following (in thousands): 2018 2017 2016 Domestic $ (30,663) $ (23,093) $ (4,524) Foreign (18,549) (7,153) (9,620) Total $ (49,212) $ (30,246) $ (14,144) For the years ended December 31, 2018, 2017 and 2016, our income tax expense (benefit) was comprised of the following (in thousands): 2018 2017 2016 Current: Federal $ — $ (65) $ (627) State 25 68 (200) Foreign 432 1,009 266 Total current expense (benefit) 457 1,012 (561) Deferred: Federal — (42) (922) State — — (230) Foreign (218) (209) 30 Total deferred expense (benefit) (218) (251) (1,122) Total income tax expense (benefit) $ 239 $ 761 $ (1,683) 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, SAB 118 allowed us to record provisional amounts in earnings for the year ended December 31, 2017. During 2018, we recorded tax charges for the impact of the TCJA effects using the current available information and technical guidance on the interpretations of the TCJA. As permitted by SAB 118, we recorded provisional estimates and have subsequently finalized our accounting analysis based on the guidance, interpretations, and data available. Adjustments made in the fourth quarter of the year ended December 31, 2018, upon finalization of our accounting analysis, were not material to our consolidated financial statements. For the years ended December 31, 2018, 2017 and 2016, 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: 2018 2017 2016 U.S. federal statutory tax rate 21.0 % 34.0 % 34.0 % State tax expense 7.2 4.9 1.4 Foreign rate differential (5.1) (6.7) (17.8) Nondeductible expenses (0.7) (0.9) (2.3) Equity compensation 9.5 — — Tax credits 3.9 5.8 6.5 Unrecognized tax benefits (0.8) (0.7) (0.2) Other 0.6 (0.3) (0.2) Remeasurement of deferred taxes — (7.0) — Change in valuation allowance (36.0) (31.6) (9.6) Total (0.4) % (2.5) % 11.8 % 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, 2018 and 2017, significant components of our deferred tax assets and liabilities were as follows (in thousands): 2018 2017 Deferred tax assets: Net operating losses $ 21,059 $ 10,413 Tax credits 5,945 4,169 Deferred revenue 4,179 1,248 Equity compensation 3,923 1,207 Accrued vacation 1,170 967 Deferred rent 373 473 Bad debt 164 109 Depreciation 151 — Other 548 287 Gross deferred tax assets 37,512 18,873 Less: Valuation allowance (30,039) (12,328) Total deferred tax assets 7,473 6,545 Deferred tax liabilities: Prepaid expenses (6,640) (5,614) Unbilled receivables (419) (555) Depreciation — (174) Other (130) (8) Total deferred tax liabilities (7,189) (6,351) Net deferred tax asset $ 284 $ 194 As of December 31, 2018 and 2017, we had $56.9 million and $25.3 million of gross net operating loss (“NOL”) carryforwards for U.S. federal tax purposes, respectively. Federal NOL carryforwards generated prior to 2018 will expire, if unused, in 2037. As of December 31, 2018 and 2017, we had U.S. gross state NOL carryforwards of $57.2 million and $25.3 million, respectively. We had tax effected state NOL carryforwards of $3.7 million and $1.6 million as of December 31, 2018 and 2017, respectively. U.S. state NOL carryforwards will substantially expire, if unused, in 2038. As of December 31, 2018 and 2017, we had foreign NOL carryforwards of $56.3 million and $35.7 million, respectively, primarily attributable to our subsidiary in Switzerland. Those NOL carryforwards will substantially expire, if unused, in 2025. 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, 2018. As of December 31, 2018 and 2017, we had $6.4 million and $4.5 million, respectively, of federal tax credit carryforwards which will expire, if unused, in 2038. The net change during the year in the total valuation allowance was $17.7 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, 2018, 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, 2018, we have a valuation allowance of $5.3 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, 2018, 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, Singapore, Sweden and the United Kingdom. We plan to distribute previously undistributed earnings of our foreign subsidiaries back to the United States in future years. Upon repatriation of those earnings, if any, we may be subject to taxes, including withholding taxes, net of any applicable foreign tax credits. Determination of the amount of unrecognized deferred U.S. income tax liability is not practicable. As of December 31, 2018 and 2017, we had unrecognized tax benefits of $1.0 million and $0.7 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 January 1, 2016 to December 31, 2018 (in thousands): Balance as of January 1, 2016 $ 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 Additions for tax positions in current years 388 Additions for tax positions in prior years — Reductions due to lapse in statutes of limitations — Settlements — Balance as of December 31, 2018 $ 1,039 We recognize interest and penalties related to uncertain tax positions in income tax expense. During the year ended December 31, 2018, we did not accrue additional interest. During the year ended December 31, 2017, we reduced our liability for potential interest and penalties by $2,000. During the year ended December 31, 2016, we recognized potential interest and penalties of $2,000. The cumulative balance of interest and penalties as of each of December 31, 2018 and 2017 was $33,000. If recognized, approximately $1.0 million of unrecognized tax benefits would impact the effective tax rate. 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 2018 remain open to examination by the major taxing jurisdictions to which we are subject. No material examinations are currently open. On June 21, 2018, the U. S. Supreme Court issued its decision in South Dakota v. Wayfair, Inc., which overturned prior case law that held that out-of-state merchants were not required to collect sales taxes unless they had a physical presence in the buyer’s state. We have analyzed the impact of this decision and do not anticipate it to have a significant impact on our operations. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2018 | |
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”). 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, 2018, there were 7,040,863 shares of Class A common stock reserved for issuance under the 2017 Plan, of which 5,680,655 were available to be issued. The 2007 Plan provided for the grant of stock options to employees, directors, and officers. Stock 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. Stock 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 completion 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 Option Pricing Model, which requires the use of subjective assumptions, including the expected term of the option, the current price of the underlying stock, 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: 2018 2017 2016 Risk-free interest rate * 1.9% - 2.2% 1.3% - 1.5% Expected term (in years) * 6.5 6.5 Expected volatility * 38.1% - 40.6% 40.9% - 42.0% Expected dividend yield * —% —% * Not applicable because no stock options were granted during the period. Stock Options The following table summarizes the stock option activity for the years ended December 31, 2018 and 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 Granted — — Exercised (1,486,218) 2.10 41,606 Canceled (503,601) 9.51 Outstanding at December 31, 2018 5,021,068 7.30 6.4 97,440 Exercisable at December 31, 2018 3,448,348 6.21 5.9 70,682 The weighted average grant-date fair value of options granted during the years ended December 31, 2017 and 2016 was $5.05 and $4.35 per option, respectively. No stock options were granted during the year ended December 31, 2018. The total fair value of stock options that vested during the years ended December 31, 2018 and 2017 was $10.5 million and $5.6 million, respectively. No stock options vested during the year ended December 31, 2016 because a qualifying event had not yet occurred. As of December 31, 2018, the total compensation cost related to unvested stock options not yet recognized was $2.6 million, which will be recognized over a weighted average period of 2.1 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. In July 2016, our board of directors granted a stock option to purchase 1,828,080 shares of our Class A common stock to our Chief Executive Officer (the "2016 CEO Grant") under the 2007 Plan with an exercise price of $9.46 per share. The 2016 CEO Grant was eligible to vest based on the achievement of a stock price appreciation target of our Class A common stock. The fair value of the 2016 CEO Grant was determined using a Monte Carlo simulation. During the year ended December 31, 2018, the market-based milestone of the 2016 CEO Grant was achieved, resulting in 1,828,080 shares vesting and becoming exercisable. Stock-based compensation expense recognized for the 2016 CEO Grant was $5.6 million and $2.7 million for the years ended December 31, 2018 and 2017, respectively. In December 2018, we entered into a stock option cancellation agreement with our Chief Executive Officer, pursuant to which vested options to purchase 383,897 shares of Class A common stock were canceled. The remaining options granted under the 2016 CEO Grant were unaffected. No compensation expense was recorded as the canceled stock options were fully vested at the time. Restricted Stock Units The following table summarizes the restricted stock unit activity for the years ended December 31, 2018 and 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 Granted 622,166 29.60 Vested (143,390) 22.19 Canceled (35,702) 23.97 Non-vested outstanding at December 31, 2018 1,175,049 26.04 As of December 31, 2018, total unrecognized compensation cost related to unvested restricted stock units was approximately $25.4 million and the weighted average remaining vesting period was 2.0 years. In November 2018, our board of directors approved the grant of 255,930 restricted stock units under the 2017 Plan at a fair value of $30.06 per share to our three co-founders. The value of these awards at the grant date was $7.7 million and will be amortized over the vesting periods. The restricted stock units will vest during the three months ended March 31, 2019. The following table summarizes the components of our stock-based compensation expense for the years ended December 31, 2018 and 2017 (in thousands): 2018 2017 Stock-based compensation expense related to stock options $ 7,947 $ 9,607 Stock-based compensation expense related to restricted stock units 7,714 753 Stock-based compensation expense related to the issuance of common stock to directors 393 222 Stock-based compensation expense related to stock option modifications — 2,394 Total stock-based compensation expense $ 16,054 $ 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 years ended December 31, 2018 and 2017 (in thousands): 2018 2017 Cost of revenue Subscriptions, software and support $ 514 $ 575 Professional services 1,717 1,295 Operating expenses Sales and marketing 3,473 3,233 Research and development 2,416 2,822 General and administrative 7,934 5,051 Total stock-based compensation expense $ 16,054 $ 12,976 For the year ended December 31, 2016, no stock-based compensation expense was recognized for our stock option awards because a qualifying event had not yet occurred. |
Stockholders_ Equity
Stockholders’ Equity | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Stockholders’ Equity | Stockholders’ Equity 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. No convertible preferred stock was outstanding as of December 31, 2018 or 2017. Common Stock As of December 31, 2018, we had authorized 500,000,000 shares of Class A common stock and 100,000,000 shares of Class B common stock, each with a par value of $0.0001 per share, of which 29,626,054 shares of Class A common stock and 34,290,383 shares of Class B common stock were issued and outstanding. 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 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, 2018 | |
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, 2018 2017 2016 Numerator: Net loss $ (49,451) $ (31,007) $ (12,461) Accretion of dividends on convertible preferred stock — 357 857 Net loss attributable to common stockholders $ (49,451) $ (31,364) $ (13,318) Denominator Weighted average common shares outstanding, basic and diluted 62,140,684 49,529,833 34,274,718 Net loss per share attributable to common stockholders, basic and diluted $ (0.80) $ (0.63) $ (0.39) 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, 2018 2017 2016 Convertible preferred stock: Series A convertible preferred stock — — 12,043,108 Series B convertible preferred stock — — 6,120,050 Warrant to purchase Series A convertible preferred stock — — 84,360 Stock options 5,021,068 7,010,887 6,784,448 Restricted stock units 1,175,049 731,975 — |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
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, the Netherlands and Singapore, under non-cancellable operating lease agreements which have various expiration dates through 2031 for our office space and various expiration dates through 2020 for our equipment. In April 2018, we entered into a new lease agreement for a new headquarters in Tysons, Virginia. We took initial possession of the first phase of the new headquarters in October 2018 and began to recognize rent expense. We expect to start making recurring rental payments under the lease in the third quarter of 2020. Total payments committed under the lease amount to $87.2 million. In connection with the lease agreement, we also entered into a letter of credit of $9.4 million to fund the security deposit required by the lease. The lease for the new headquarters contains a tenant improvement allowance of up to $18.4 million from the landlord. The tenant improvement allowance is accounted for as a lease incentive obligation and is amortized as a reduction to rent expense over the lease term. We recorded a lease incentive obligation when we took initial possession of the first phase of the new headquarters. As of December 31, 2018, $1.2 million was included in other current liabilities and $14.4 million was included in deferred rent, net of current portion on the accompanying consolidated balance sheets. Lease Related Commitments Lease related commitments include payments to third-party vendors for services related to our new headquarters. A summary of our future minimum lease commitments and other commitments by year as of December 31, 2018 is as follows (in thousands): Office Leases Equipment Leases Lease Related Commitments 2019 $ 6,985 $ 216 $ 29,587 2020 6,371 22 — 2021 8,331 — — 2022 6,939 — — 2023 6,987 — — Thereafter 65,151 — — 100,764 238 29,587 Less: tenant improvement allowance — — (14,441) Total $ 100,764 $ 238 $ 15,146 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, 2018 and 2017, deferred rent totaled $17.4 million and $2.0 million, respectively, and is included within other current liabilities and deferred rent, net of current portion on the accompanying consolidated balance sheets. In addition to rental payments, certain leases require additional payments for real estate taxes, common area maintenance and insurance, which are expensed when incurred and not included in the future minimum payments. Total rent and lease expense was $8.8 million, $7.0 million and $6.6 million for the years ended December 31, 2018, 2017 and 2016, 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, 2018 and 2017, we had outstanding letters of credit totaling $10.5 million and $1.1 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 |
Segment and Geographic Informat
Segment and Geographic Information | 12 Months Ended |
Dec. 31, 2018 | |
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): 2018 2017 2016 Domestic $ 161,716 $ 128,997 $ 107,069 International 65,027 47,740 25,854 Total $ 226,743 $ 176,737 $ 132,923 |
Retirement Plans
Retirement Plans | 12 Months Ended |
Dec. 31, 2018 | |
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 For th e years ending December 31, 2018, 2017 and 2016, we incurred $4.7 million, $3.3 million and $2.6 million, respectively, in contribution expense related to the employer matching contributions. |
Selected Quarterly Information
Selected Quarterly Information (Unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Information (Unaudited) | Selected Quarterly Information (Unaudited) The following table sets forth unaudited quarterly consolidated statement of operations data for each of the eight quarters in 2018 and 2017. 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, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 (in thousands) (unaudited) Consolidated Statements of Operations Data: Revenue: Subscriptions, software and support $ 35,108 $ 30,905 $ 33,047 $ 26,952 $ 25,398 $ 22,660 $ 22,012 $ 21,444 Professional services 25,108 24,043 26,836 24,744 25,164 21,988 21,186 16,885 Total revenue 60,216 54,948 59,883 51,696 50,562 44,648 43,198 38,329 Cost of revenue: Subscriptions, software and support 3,284 3,261 2,824 2,628 2,488 2,341 2,488 2,062 Professional services 18,926 16,831 18,750 18,421 16,169 14,272 14,149 10,628 Total cost of revenue 22,210 20,092 21,574 21,049 18,657 16,613 16,637 12,690 Gross profit 38,006 34,856 38,309 30,647 31,905 28,035 26,561 25,639 Operating expenses: Sales and marketing 30,177 25,467 27,384 22,964 22,463 19,725 22,775 17,003 Research and development 12,332 11,737 10,785 9,870 8,968 8,596 9,971 7,300 General and administrative 8,799 12,537 8,425 8,060 7,429 6,237 8,635 4,849 Total operating expenses 51,308 49,741 46,594 40,894 38,860 34,558 41,381 29,152 Operating loss (13,302) (14,885) (8,285) (10,247) (6,955) (6,523) (14,820) (3,513) Other expense (income): Other expense (income), net 510 110 2,593 (918) (380) (425) (734) (499) Interest expense (income) 64 67 54 13 22 (2) 197 256 Total other expense (income) 574 177 2,647 (905) (358) (427) (537) (243) Loss before income taxes (13,876) (15,062) (10,932) (9,342) (6,597) (6,096) (14,283) (3,270) Income tax expense (benefit) 27 (34) 35 211 272 188 176 125 Net loss (1) (2) $ (13,903) $ (15,028) $ (10,967) $ (9,553) $ (6,869) $ (6,284) $ (14,459) $ (3,395) (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. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsIn preparing our consolidated financial statements, we evaluated subsequent events through February 21, 2019, which is the date that the consolidated financial statements were available to be issued. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of PresentationThe accompanying consolidated financial statements and footnotes have been prepared in accordance with accounting principles generally accepted in the United States (“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 | Public Offering In August 2018, we completed an underwritten public offering of 2,000,000 shares of our Class A common stock, of which 1,675,000 shares of Class A common stock were sold by us and 325,000 shares of Class A common stock were sold by existing stockholders, at on offering price to the public of $35.15 per share. Our net proceeds from the offering were $57.8 million, after deducting underwriting discounts and commissions and offering expenses. We did not receive any of the proceeds from the sale of shares by the selling stockholders. |
Revenue Recognition | Revenue Recognition We generate revenue primarily through sales of subscriptions to our platform, as well as professional services. To a lesser extent, we also generate revenue from the sale of perpetual software license agreements and associated maintenance and support. 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 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. Revenue from our perpetual software licenses was 2.0% of our total revenue for 2018. Revenue from our perpetual software licenses was less than 1.0% of our total revenue for each of 2017 and 2016. We generally charge subscription fees on a per-user basis and, to a lesser degree, non-user based single application licenses. 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 five 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 five Perpetual Licenses Our perpetual license revenue is derived from customers with perpetual licenses to our platform and associated maintenance and support contracts. We recognize revenue from perpetual licenses on the date of delivery to our customer. We sell maintenance and support to perpetual license customers separately from the perpetual licenses pursuant to agreements that generally renew annually. Maintenance and support revenue is deferred and recognized ratably over the term of the support period. 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, term license subscriptions and perpetual licenses 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. Perpetual Licenses For multiple element arrangements involving our perpetual software licenses, we allocate revenue to the software license arrangement by determining if VSOE of fair value exists for the undelivered elements, which are usually maintenance and support and professional services. In situations where VSOE of fair value exists for the undelivered elements, we apply the residual method whereby the fees allocated to license revenue are recognized upon delivery, the fees allocated to maintenance and support revenue are recognized over the service period and the fees allocated to professional services and training are recognized as performed. In instances where we lack VSOE of fair value for the undelivered elements, revenue is either deferred until the final element is delivered or recognized ratably over the service period when the only undelivered elements are either professional services or maintenance and support. We have VSOE for maintenance and support elements and professional services elements performed on a time and materials basis. VSOE of fair value is based upon the price charged |
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. Deposits held with banks may exceed the amount of insurance provided on such deposits. 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 EquivalentsWe 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 AccountsAccounts 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. |
Deferred Commissions | Deferred CommissionsDeferred 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 EquipmentProperty 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. |
Impairment of Long-Lived Assets | Impairment of Long-Lived AssetsLong-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, 2018, 2017 and 2016. |
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, 2018 and December 31, 2017 because of the relatively short duration of these instruments. 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. |
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 Option Pricing Model. The fair value of RSUs is based on the closing market price of our common stock on the Nasdaq Global Market on the date of grant. 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 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, 2018, 2017 and 2016, 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. 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’ equity (deficit) and other comprehensive 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 losses of $3.0 million for the year ended December 31, 2018, net transaction gains of $2.6 million for the year ended December 31, 2017 and net transaction losses of $1.5 million for the year ended December 31, 2016. 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 $3.9 million, $3.0 million and $1.4 million for the years ended December 31, 2018, 2017 and 2016, respectively. Emerging Growth Company Status We are an “emerging growth company” as defined in the Jumpstart Our Business Startups Act (the "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 Tax Cuts and Jobs Act (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”) allowed us to record provisional amounts in earnings for the year ended 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 were required to complete our tax accounting for the TCJA in the period when we obtained, prepared, and analyzed the information to complete the income tax accounting. We completed our tax accounting for the TCJA in 2018. 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 became effective on a prospective basis beginning on January 1, 2018. The adoption of ASU 2017-09 did not have an impact on our consolidated financial statements for the year ended December 31, 2018. Not Yet Adopted In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”), which provides new guidance for revenue recognition. ASU 2014-09 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 2014-09 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. 2016-08, Principal Versus Agent Considerations (Reporting Revenue Gross Versus Net) (“ASU 2016-08”), which clarifies implementation guidance on principal versus agent considerations in ASU 2014-09. 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 2014-09. 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 have elected to avail ourselves of the JOBS Act extended transition period that permits us to defer adoption until January 1, 2019. In accordance with guidance, the new standard will be adopted in our Annual Report on Form 10-K for the fiscal year ending December 31, 2019 but will not be adopted in our Quarterly Reports on Form 10-Q to be filed during 2019. The ASU 2014-09 guidance allows two methods of adoption: retrospectively to each prior reporting period (full retrospective method) or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (modified retrospective method). We are going to adopt the new standard using the modified retrospective method. We do not expect the new standard to have a material impact on the timing of revenue recognition related to our cloud-based subscriptions and standalone professional services. However, we expect the new standard to have a significant impact on the timing of revenue recognition related to our on-premise term license contracts. 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 on-premise term license contracts, and accordingly, have recognized on-premise term license contracts and related services ratably over the contract term. Under this new standard, the requirement to have VSOE for undelivered services is eliminated. Therefore, we will be required to recognize a portion of revenue from the on-premise term license contracts upon delivery of the software. In addition, we expect the new standard to impact our accounting for contract acquisition costs, both with respect to the amounts that will be capitalized as well as the period of amortization. Currently, we defer the direct and incremental commission costs to obtain a contract with a customer and amortize those costs over the term of the related customer contract consistent with the related revenue. Under the new standard, we will defer the incremental costs to obtain a contract with a customer. Therefore, the new standard will result in additional costs being capitalized, including fringe benefits. Under the new standard, initial incremental costs to obtain a contract will be amortized over the customer's estimated economic life of five years, which was calculated based on both qualitative and quantitative factors, such as product life cycles, contractual terms and customer attrition. Incremental contract costs paid relating to contract renewals will be deferred and amortized on a straight-line basis over the related renewal period. As a result, we expect the deferred commissions asset to increase and the related amortization expense in each reporting period to decrease under the new standard. We are still in the process of quantifying the effects of the adoption of ASU 2014-09 as well as continuing to evaluate the impact of the adoption of the standard on our consolidated financial statements, including our footnotes. 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 June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326) ("ASU 2016-13"), which requires entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early application will be permitted for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. We are currently evaluating the impact that the standard 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 |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | Activity within the allowance for doubtful accounts was as follows (in thousands): Year Ended December 31, 2018 2017 2016 Balance as of January 1 $ 400 $ 400 $ 400 Additions 211 62 7 Less write-offs, net of recoveries (11) (62) (7) Balance as of December 31 $ 600 $ 400 $ 400 |
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 |
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 and 2016 (in thousands): Year Ended December 31, 2017 2016 Balance as of January 1, $ 850 $ 650 Change in fair value of warrant liability 341 200 Reclassification of warrant liability to equity (1,191) — Balance as of December 31, $ — $ 850 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property and Equipment | Property and equipment consisted of the following as of December 31 (in thousands): 2018 2017 Leasehold improvements $ 9,958 $ 4,226 Computer hardware 2,535 1,644 Computer software 1,727 1,727 Office furniture and fixtures 649 510 Equipment 138 131 15,007 8,238 Less: accumulated depreciation (7,468) (5,575) Property and equipment, net $ 7,539 $ 2,663 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses | Accrued expenses consisted of the following as of December 31 (in thousands): 2018 2017 Accrued contract labor costs $ 3,128 $ 3,424 Accrued third party license fees 729 235 Accrued hosting costs 579 466 Accrued reimbursable employee expenses 459 286 Accrued audit and tax expenses 375 248 Accrued marketing and tradeshow expenses 229 128 Other accrued expenses 1,965 1,680 Total $ 7,464 $ 6,467 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax | For the years ended December 31, 2018, 2017 and 2016, our loss before income taxes was comprised of the following (in thousands): 2018 2017 2016 Domestic $ (30,663) $ (23,093) $ (4,524) Foreign (18,549) (7,153) (9,620) Total $ (49,212) $ (30,246) $ (14,144) |
Schedule of Components of Income Tax Expense (Benefit) | For the years ended December 31, 2018, 2017 and 2016, our income tax expense (benefit) was comprised of the following (in thousands): 2018 2017 2016 Current: Federal $ — $ (65) $ (627) State 25 68 (200) Foreign 432 1,009 266 Total current expense (benefit) 457 1,012 (561) Deferred: Federal — (42) (922) State — — (230) Foreign (218) (209) 30 Total deferred expense (benefit) (218) (251) (1,122) Total income tax expense (benefit) $ 239 $ 761 $ (1,683) |
Schedule of Effective Income Tax Rate Reconciliation | For the years ended December 31, 2018, 2017 and 2016, 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: 2018 2017 2016 U.S. federal statutory tax rate 21.0 % 34.0 % 34.0 % State tax expense 7.2 4.9 1.4 Foreign rate differential (5.1) (6.7) (17.8) Nondeductible expenses (0.7) (0.9) (2.3) Equity compensation 9.5 — — Tax credits 3.9 5.8 6.5 Unrecognized tax benefits (0.8) (0.7) (0.2) Other 0.6 (0.3) (0.2) Remeasurement of deferred taxes — (7.0) — Change in valuation allowance (36.0) (31.6) (9.6) Total (0.4) % (2.5) % 11.8 % |
Schedule of Deferred Tax Assets and Liabilities | As of December 31, 2018 and 2017, significant components of our deferred tax assets and liabilities were as follows (in thousands): 2018 2017 Deferred tax assets: Net operating losses $ 21,059 $ 10,413 Tax credits 5,945 4,169 Deferred revenue 4,179 1,248 Equity compensation 3,923 1,207 Accrued vacation 1,170 967 Deferred rent 373 473 Bad debt 164 109 Depreciation 151 — Other 548 287 Gross deferred tax assets 37,512 18,873 Less: Valuation allowance (30,039) (12,328) Total deferred tax assets 7,473 6,545 Deferred tax liabilities: Prepaid expenses (6,640) (5,614) Unbilled receivables (419) (555) Depreciation — (174) Other (130) (8) Total deferred tax liabilities (7,189) (6,351) Net deferred tax asset $ 284 $ 194 |
Summary of Income Tax Contingencies | The following table summarizes the activity related to our unrecognized tax benefit from January 1, 2016 to December 31, 2018 (in thousands): Balance as of January 1, 2016 $ 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 Additions for tax positions in current years 388 Additions for tax positions in prior years — Reductions due to lapse in statutes of limitations — Settlements — Balance as of December 31, 2018 $ 1,039 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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: 2018 2017 2016 Risk-free interest rate * 1.9% - 2.2% 1.3% - 1.5% Expected term (in years) * 6.5 6.5 Expected volatility * 38.1% - 40.6% 40.9% - 42.0% Expected dividend yield * —% —% * Not applicable because no stock options were granted during the period. |
Summary of the Stock Option Activity | The following table summarizes the stock option activity for the years ended December 31, 2018 and 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 Granted — — Exercised (1,486,218) 2.10 41,606 Canceled (503,601) 9.51 Outstanding at December 31, 2018 5,021,068 7.30 6.4 97,440 Exercisable at December 31, 2018 3,448,348 6.21 5.9 70,682 |
Schedule of Restricted Stock Unit Activity | The following table summarizes the restricted stock unit activity for the years ended December 31, 2018 and 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 Granted 622,166 29.60 Vested (143,390) 22.19 Canceled (35,702) 23.97 Non-vested outstanding at December 31, 2018 1,175,049 26.04 |
Schedule of Components of Stock-based Compensation Expense | The following table summarizes the components of our stock-based compensation expense for the years ended December 31, 2018 and 2017 (in thousands): 2018 2017 Stock-based compensation expense related to stock options $ 7,947 $ 9,607 Stock-based compensation expense related to restricted stock units 7,714 753 Stock-based compensation expense related to the issuance of common stock to directors 393 222 Stock-based compensation expense related to stock option modifications — 2,394 Total stock-based compensation expense $ 16,054 $ 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 years ended December 31, 2018 and 2017 (in thousands): 2018 2017 Cost of revenue Subscriptions, software and support $ 514 $ 575 Professional services 1,717 1,295 Operating expenses Sales and marketing 3,473 3,233 Research and development 2,416 2,822 General and administrative 7,934 5,051 Total stock-based compensation expense $ 16,054 $ 12,976 |
Basic and Diluted Loss per Co_2
Basic and Diluted Loss per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 2017 2016 Numerator: Net loss $ (49,451) $ (31,007) $ (12,461) Accretion of dividends on convertible preferred stock — 357 857 Net loss attributable to common stockholders $ (49,451) $ (31,364) $ (13,318) Denominator Weighted average common shares outstanding, basic and diluted 62,140,684 49,529,833 34,274,718 Net loss per share attributable to common stockholders, basic and diluted $ (0.80) $ (0.63) $ (0.39) |
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, 2018 2017 2016 Convertible preferred stock: Series A convertible preferred stock — — 12,043,108 Series B convertible preferred stock — — 6,120,050 Warrant to purchase Series A convertible preferred stock — — 84,360 Stock options 5,021,068 7,010,887 6,784,448 Restricted stock units 1,175,049 731,975 — |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Future Minimum Gross and Net Lease Commitments | A summary of our future minimum lease commitments and other commitments by year as of December 31, 2018 is as follows (in thousands): Office Leases Equipment Leases Lease Related Commitments 2019 $ 6,985 $ 216 $ 29,587 2020 6,371 22 — 2021 8,331 — — 2022 6,939 — — 2023 6,987 — — Thereafter 65,151 — — 100,764 238 29,587 Less: tenant improvement allowance — — (14,441) Total $ 100,764 $ 238 $ 15,146 |
Segment and Geographic Inform_2
Segment and Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Summary of Revenue By Geography | The following table summarizes revenue by geography for the years ended December 31 (in thousands): 2018 2017 2016 Domestic $ 161,716 $ 128,997 $ 107,069 International 65,027 47,740 25,854 Total $ 226,743 $ 176,737 $ 132,923 |
Selected Quarterly Informatio_2
Selected Quarterly Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 (in thousands) (unaudited) Consolidated Statements of Operations Data: Revenue: Subscriptions, software and support $ 35,108 $ 30,905 $ 33,047 $ 26,952 $ 25,398 $ 22,660 $ 22,012 $ 21,444 Professional services 25,108 24,043 26,836 24,744 25,164 21,988 21,186 16,885 Total revenue 60,216 54,948 59,883 51,696 50,562 44,648 43,198 38,329 Cost of revenue: Subscriptions, software and support 3,284 3,261 2,824 2,628 2,488 2,341 2,488 2,062 Professional services 18,926 16,831 18,750 18,421 16,169 14,272 14,149 10,628 Total cost of revenue 22,210 20,092 21,574 21,049 18,657 16,613 16,637 12,690 Gross profit 38,006 34,856 38,309 30,647 31,905 28,035 26,561 25,639 Operating expenses: Sales and marketing 30,177 25,467 27,384 22,964 22,463 19,725 22,775 17,003 Research and development 12,332 11,737 10,785 9,870 8,968 8,596 9,971 7,300 General and administrative 8,799 12,537 8,425 8,060 7,429 6,237 8,635 4,849 Total operating expenses 51,308 49,741 46,594 40,894 38,860 34,558 41,381 29,152 Operating loss (13,302) (14,885) (8,285) (10,247) (6,955) (6,523) (14,820) (3,513) Other expense (income): Other expense (income), net 510 110 2,593 (918) (380) (425) (734) (499) Interest expense (income) 64 67 54 13 22 (2) 197 256 Total other expense (income) 574 177 2,647 (905) (358) (427) (537) (243) Loss before income taxes (13,876) (15,062) (10,932) (9,342) (6,597) (6,096) (14,283) (3,270) Income tax expense (benefit) 27 (34) 35 211 272 188 176 125 Net loss (1) (2) $ (13,903) $ (15,028) $ (10,967) $ (9,553) $ (6,869) $ (6,284) $ (14,459) $ (3,395) (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. (2) In the third quarter of 2018, we recorded $4.5 million of cumulative stock-based compensation expense upon the |
Significant Accounting Polici_4
Significant Accounting Policies - Additional Information (Details) | 1 Months Ended | 12 Months Ended | ||||
Aug. 31, 2018USD ($)$ / sharesshares | Nov. 30, 2017$ / sharesshares | May 31, 2017USD ($)$ / sharesshares | Dec. 31, 2018USD ($)agency | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | ||||||
Proceeds from initial public offering, net of underwriting discounts | $ 0 | $ 80,213,000 | $ 0 | |||
Deferred offering costs | $ 2,400,000 | |||||
Percentage of license revenue | 2.00% | 1.00% | ||||
Tenant improvement allowance receivable | $ 14,400,000 | $ 0 | ||||
Change in allowance for doubtful accounts | 0 | |||||
Commission expense | 15,600,000 | 11,800,000 | 6,500,000 | |||
Foreign currency transactions, gains and (losses) | (3,000,000) | 2,600,000 | (1,500,000) | |||
Advertising expense | $ 3,900,000 | $ 3,000,000 | $ 1,400,000 | |||
Customer Concentration Risk | Sales Revenue, Net | Foreign Customers | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Concentration risk percentage | 28.70% | 27.00% | 19.50% | |||
Customer Concentration Risk | Sales Revenue, Net | Government Agencies | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Concentration risk percentage | 15.70% | 15.40% | 26.20% | |||
Customer Concentration Risk | Sales Revenue, Net | Federal Government Agencies | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Concentration risk percentage | 7.80% | 8.40% | 17.70% | |||
Number of federal government agencies | agency | 3 | |||||
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] | ||||||
Number of shares issued in public offering (in shares) | shares | 2,000,000 | |||||
Sale of stock, offering price (in usd per share) | $ / shares | $ 35.15 | |||||
Proceeds from initial public offering, net of underwriting discounts | $ 77,800,000 | |||||
Number of shares issued by the company in public offering (in shares) | shares | 1,675,000 | |||||
Number of shares issued by sharesholders in public offering (in shares) | shares | 325,000 | |||||
Net proceeds from public offering | $ 57,800,000 | |||||
Secondary Offering | Class A Common Stock | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Number of shares issued in public offering (in shares) | shares | 4,370,000 | |||||
Sale of stock, offering price (in usd per share) | $ / shares | $ 20.25 | |||||
IPO | Class A Common Stock | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Number of shares issued in public offering (in shares) | shares | 7,187,500 | |||||
Sale of stock, offering price (in usd per share) | $ / shares | $ 12 | |||||
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 Polici_5
Significant Accounting Policies - Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Balance as of January 1 | $ 400 | $ 400 | $ 400 |
Additions | 211 | 62 | 7 |
Less write-offs, net of recoveries | 11 | 62 | 7 |
Balance as of December 31 | $ 600 | $ 400 | $ 400 |
Significant Accounting Polici_6
Significant Accounting Policies - Summary of Changes in Level 3 Instruments Measured at Fair Value On Recurring Basis (Detail) - Fair Value, Measurements, Recurring - Level 3 - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance as of January 1, | $ 850 | $ 650 |
Change in fair value of warrant liability | 341 | 200 |
Reclassification of warrant liability to equity | (1,191) | 0 |
Balance as of December 31, | $ 0 | $ 850 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 15,007 | $ 8,238 | |
Less: accumulated depreciation | (7,468) | (5,575) | |
Property and equipment, net | 7,539 | 2,663 | |
Depreciation and amortization expense | 2,000 | 900 | $ 800 |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 9,958 | 4,226 | |
Computer hardware | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 2,535 | 1,644 | |
Computer software | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 1,727 | 1,727 | |
Office furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 649 | 510 | |
Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 138 | $ 131 |
Accrued Expenses - Schedule of
Accrued Expenses - Schedule of Accrued Expenses (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Payables and Accruals [Abstract] | ||
Accrued contract labor costs | $ 3,128 | $ 3,424 |
Accrued third party license fees | 729 | 235 |
Accrued hosting costs | 579 | 466 |
Accrued reimbursable employee expenses | 459 | 286 |
Accrued audit and tax expenses | 375 | 248 |
Accrued marketing and tradeshow expenses | 229 | 128 |
Other accrued expenses | 1,965 | 1,680 |
Total | $ 7,464 | $ 6,467 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Nov. 30, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Apr. 30, 2017 | |
Line of Credit Facility [Line Items] | |||||
Loss on extinguishment of debt | $ 0 | $ (384,000) | $ 0 | ||
Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Credit facility | $ 20,000,000 | $ 5,000,000 | |||
Term Loan | |||||
Line of Credit Facility [Line Items] | |||||
Credit facility | 20,000,000 | ||||
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, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||||||||||
Domestic | $ (30,663) | $ (23,093) | $ (4,524) | ||||||||
Foreign | (18,549) | (7,153) | (9,620) | ||||||||
Loss before income taxes | $ (13,876) | $ (15,062) | $ (10,932) | $ (9,342) | $ (6,597) | $ (6,096) | $ (14,283) | $ (3,270) | $ (49,212) | $ (30,246) | $ (14,144) |
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, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current: | |||||||||||
Federal | $ 0 | $ (65) | $ (627) | ||||||||
State | 25 | 68 | (200) | ||||||||
Foreign | 432 | 1,009 | 266 | ||||||||
Total current expense (benefit) | 457 | 1,012 | (561) | ||||||||
Deferred: | |||||||||||
Federal | 0 | (42) | (922) | ||||||||
State | 0 | 0 | (230) | ||||||||
Foreign | (218) | (209) | 30 | ||||||||
Total deferred expense (benefit) | (218) | (251) | (1,122) | ||||||||
Total income tax expense (benefit) | $ 27 | $ (34) | $ 35 | $ 211 | $ 272 | $ 188 | $ 176 | $ 125 | $ 239 | $ 761 | $ (1,683) |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of Statutory to Effective Income Tax Rate (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal statutory tax rate | 21.00% | 34.00% | 34.00% |
State tax expense | 7.20% | 4.90% | 1.40% |
Foreign rate differential | (5.10%) | (6.70%) | (17.80%) |
Nondeductible expenses | (0.70%) | (0.90%) | (2.30%) |
Equity compensation | 9.50% | 0.00% | 0.00% |
Tax credits | 3.90% | 5.80% | 6.50% |
Unrecognized tax benefits | (0.80%) | (0.70%) | (0.20%) |
Other | 0.60% | (0.30%) | (0.20%) |
Remeasurement of deferred taxes | 0.00% | (7.00%) | 0.00% |
Change in valuation allowance | (36.00%) | (31.60%) | (9.60%) |
Total | (0.40%) | (2.50%) | 11.80% |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets: | ||
Net operating losses | $ 21,059 | $ 10,413 |
Tax credits | 5,945 | 4,169 |
Deferred revenue | 4,179 | 1,248 |
Equity compensation | 3,923 | 1,207 |
Accrued vacation | 1,170 | 967 |
Deferred rent | 373 | 473 |
Bad debt | 164 | 109 |
Depreciation | 151 | 0 |
Other | 548 | 287 |
Gross deferred tax assets | 37,512 | 18,873 |
Less: Valuation allowance | (30,039) | (12,328) |
Total deferred tax assets | 7,473 | 6,545 |
Deferred tax liabilities: | ||
Deferred Tax Liabilities, Prepaid Expenses | (6,640) | (5,614) |
Unbilled receivables | (419) | (555) |
Depreciation | 0 | (174) |
Other | (130) | (8) |
Total deferred tax liabilities | (7,189) | (6,351) |
Net deferred tax asset | $ 284 | $ 194 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | |||
Beginning balance | $ 651 | $ 419 | $ 384 |
Additions for tax positions in current years | 388 | 232 | 171 |
Additions for tax positions in prior years | 0 | 0 | 0 |
Reductions due to lapse in statutes of limitations | 0 | 0 | (136) |
Settlements | 0 | 0 | 0 |
Ending balance | $ 1,039 | $ 651 | $ 419 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards, state, tax effected | $ 3,700 | $ 1,600 | |
Net change in total valuation allowance | 17,700 | ||
Valuation allowance against foreign deferred tax assets | 30,039 | 12,328 | |
Recognized interest and penalties related to uncertain tax positions | 2 | $ 2 | |
Cumulative balance of interest and penalties related to uncertain tax positions | 33 | ||
Unrecognized tax benefits, portion affecting tax rate | 1,000 | ||
Domestic Tax Authority | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | 56,900 | 25,300 | |
Federal tax credit carryforwards | 6,400 | 4,500 | |
State and Local Jurisdiction | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | 57,200 | 25,300 | |
Swiss Federal Tax Administration (FTA) | Foreign Tax Authority | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | 56,300 | $ 35,700 | |
Valuation allowance against foreign deferred tax assets | $ 5,300 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Apr. 25, 2017 | Nov. 30, 2018 | May 31, 2017 | Jun. 30, 2017 | Dec. 31, 2018 | 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 | $ 16,054 | $ 12,976 | ||||
Canceled shares pursuant to Agreement (in shares) | 503,601 | 153,640 | ||||
Restricted stock units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Granted (in shares) | 622,166 | 738,055 | ||||
Granted (in usd per share) | $ 29.60 | $ 22.15 | ||||
Stock-based compensation expense related to restricted stock units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock-based compensation expense | $ 6,200 | |||||
Stock-based compensation expense related to restricted stock units | Performance Shares | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock-based compensation expense | $ 6,200 | |||||
Stock Option Modifications | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock-based compensation expense | $ 2,400 | $ 2,400 | $ 0 | $ 2,394 | ||
2017 Equity Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares available to be issued | 5,680,655 | |||||
2017 Equity Incentive Plan | Restricted stock units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Granted (in shares) | 255,930 | |||||
Granted (in usd per share) | $ 30.06 | |||||
Value of awards at grant date | $ 7,700 | |||||
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 | 7,040,863 | ||||
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 | |
Share-based Goods and Nonemployee Services Transaction [Line Items] | ||
Expected term (in years) | 6 years 6 months | 6 years 6 months |
Expected dividend yield | 0.00% | 0.00% |
Minimum | ||
Share-based Goods and Nonemployee Services Transaction [Line Items] | ||
Risk-free interest rate | 1.90% | 1.30% |
Expected volatility | 38.10% | 40.90% |
Maximum | ||
Share-based Goods and Nonemployee Services Transaction [Line Items] | ||
Risk-free interest rate | 2.20% | 1.50% |
Expected volatility | 40.60% | 42.00% |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of the Stock Option Activity (Detail) - USD ($) | Apr. 25, 2017 | Dec. 31, 2018 | Jul. 31, 2016 | Sep. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Number of Shares | ||||||||
Beginning balance | 7,010,887 | 6,784,448 | ||||||
Granted (in shares) | 0 | 1,256,200 | ||||||
Exercised (in shares) | (1,486,218) | (876,121) | ||||||
Canceled (in shares) | (503,601) | (153,640) | ||||||
Ending balance | 5,021,068 | 5,021,068 | 7,010,887 | 6,784,448 | ||||
Exercisable at December 31, 2018 | 3,448,348 | 3,448,348 | ||||||
Weighted Average Exercise Price | ||||||||
Beginning balance | $ 6.36 | $ 4.65 | ||||||
Granted (in usd per share) | 0 | 11.92 | ||||||
Exercised (in usd per share) | 2.10 | 1.27 | ||||||
Canceled (in usd per share) | 9.51 | 7.29 | ||||||
Ending balance | $ 7.30 | 7.30 | $ 6.36 | $ 4.65 | ||||
Exercisable at December 31, 2018 | $ 6.21 | $ 6.21 | ||||||
Weighted Average Remaining Contractual Term (Years) | ||||||||
Beginning balance | 6 years 4 months 24 days | 6 years 7 months 6 days | 6 years 6 months | |||||
Ending balance | 6 years 4 months 24 days | 6 years 7 months 6 days | 6 years 6 months | |||||
Exercisable at December 31, 2018 | 5 years 10 months 24 days | |||||||
Aggregate Intrinsic Value (in thousands) | ||||||||
Beginning balance | $ 176,122,000 | $ 44,259,000 | ||||||
Exercised | 41,606,000 | 14,807,000 | ||||||
Ending balance | $ 97,440,000 | 97,440,000 | $ 176,122,000 | $ 44,259,000 | ||||
Exercisable at December 31, 2018 | 70,682,000 | 70,682,000 | ||||||
Weighted average grant-date fair value of options granted (in usd per share) | $ 5.05 | $ 4.35 | ||||||
Total fair value of stock options vested | 10,500,000 | $ 5,600,000 | ||||||
Total compensation cost related to unvested stock options not yet recognized | $ 2,600,000 | $ 2,600,000 | ||||||
Weighted average period, unvested stock options | 2 years 1 month 6 days | |||||||
Stock options issued to purchase common stock (in shares) | 216,160 | |||||||
Stock options granted to CEO (in shares) | 0 | 1,256,200 | ||||||
Stock-based compensation expense | $ 16,054,000 | $ 12,976,000 | ||||||
Stock Option Modifications | ||||||||
Aggregate Intrinsic Value (in thousands) | ||||||||
Stock-based compensation expense | $ 2,400,000 | $ 2,400,000 | $ 0 | 2,394,000 | ||||
2007 Stock Option Plan | Chief Executive Officer | ||||||||
Number of Shares | ||||||||
Granted (in shares) | 1,828,080 | 1,828,080 | ||||||
Canceled (in shares) | (383,897) | |||||||
Weighted Average Exercise Price | ||||||||
Exercised (in usd per share) | $ 9.46 | |||||||
Aggregate Intrinsic Value (in thousands) | ||||||||
Stock options granted to CEO (in shares) | 1,828,080 | 1,828,080 | ||||||
Stock-based compensation expense | $ 4,500,000 | $ 5,600,000 | $ 2,700,000 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Restricted Stock Unit Activity (Details) - Restricted stock units - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Number of Shares | ||
Non-vested outstanding, beginning balance (in shares) | 731,975 | 0 |
Granted (in shares) | 622,166 | 738,055 |
Vesting of restricted stock units (in shares) | (143,390) | (4,930) |
Canceled (in shares) | (35,702) | (1,150) |
Non-vested outstanding, ending balance (in shares) | 1,175,049 | 731,975 |
Weighted Average Grant Date Fair Value | ||
Non-vested outstanding, beginning balance (in usd per share) | $ 22.16 | $ 0 |
Granted (in usd per share) | 29.60 | 22.15 |
Vested (in usd per share) | 22.19 | 20.24 |
Canceled (in usd per share) | 23.97 | 21.40 |
Non-vested outstanding, ending balance (in usd per share) | $ 26.04 | $ 22.16 |
Total unrecognized compensation cost related to unvested restricted stock units | $ 25.4 | |
Weighted average remaining vesting period | 2 years |
Stock-Based Compensation - Sc_2
Stock-Based Compensation - Schedule of Stock-based Compensation Expense (Detail) - USD ($) $ in Thousands | Apr. 25, 2017 | Jun. 30, 2017 | Dec. 31, 2018 | Dec. 31, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense | $ 16,054 | $ 12,976 | ||
Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense | 7,947 | 9,607 | ||
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 | 7,714 | 753 | ||
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 | 393 | 222 | ||
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 | $ 2,400 | $ 2,400 | $ 0 | $ 2,394 |
Stock-Based Compensation - Sc_3
Stock-Based Compensation - Schedule of Stock-based Compensation Expense Included in Condensed Consolidated Statements of Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense | $ 16,054 | $ 12,976 |
Subscriptions, software and support | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense | 514 | 575 |
Professional services | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense | 1,717 | 1,295 |
Sales and marketing | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense | 3,473 | 3,233 |
Research and development | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense | 2,416 | 2,822 |
General and administrative | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense | $ 7,934 | $ 5,051 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018USD ($)vote$ / sharesshares | Dec. 31, 2017$ / sharesshares | May 31, 2017shares | |
Class of Stock [Line Items] | |||
Common stock, par value (in usd per share) | $ / shares | $ 0.0001 | ||
Warrant exercise price (in dollars per share) | $ / shares | $ 0.88905 | ||
Warrants outstanding (in shares) | 0 | 0 | |
Series A convertible preferred stock | |||
Class of Stock [Line Items] | |||
Warrant to purchase shares of preferred stock (in shares) | 84,360 | ||
Class A Common Stock | |||
Class of Stock [Line Items] | |||
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 | |
Common stock, par value (in usd per share) | $ / shares | $ 0.0001 | $ 0.0001 | |
Common stock, shares issued (in shares) | 29,626,054 | 13,030,081 | |
Common stock, shares outstanding (in shares) | 29,626,054 | 13,030,081 | |
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% | ||
Class B Common Stock | |||
Class of Stock [Line Items] | |||
Conversion of convertible preferred stock to common stock (in shares) | 18,163,158 | ||
Convertible preferred stock outstanding shares converted into common stock (in shares) | 1 | ||
Preferred stock conversion basis | one | ||
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 | |
Common stock, par value (in usd per share) | $ / shares | $ 0.0001 | $ 0.0001 | |
Common stock, shares issued (in shares) | 34,290,383 | 47,569,796 | |
Common stock, shares outstanding (in shares) | 34,290,383 | 47,569,796 | |
Number of votes entitled to stockholders | vote | 10 | ||
Shares issued on cashless exercise of warrants (in shares) | 79,363 | ||
Prior to IPO | Class B Common Stock | |||
Class of Stock [Line Items] | |||
Warrant to purchase shares of preferred stock (in shares) | 84,360 | ||
Warrant | |||
Class of Stock [Line Items] | |||
Fair value of warrant | $ | $ 1.2 |
Basic and Diluted Loss per Co_3
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, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Numerator: | |||||||||||
Net loss | $ (13,903) | $ (15,028) | $ (10,967) | $ (9,553) | $ (6,869) | $ (6,284) | $ (14,459) | $ (3,395) | $ (49,451) | $ (31,007) | $ (12,461) |
Accretion of dividends on convertible preferred stock | 0 | 357 | 857 | ||||||||
Net loss attributable to common stockholders | $ (49,451) | $ (31,364) | $ (13,318) | ||||||||
Denominator | |||||||||||
Weighted average common shares outstanding, basic and diluted (in shares) | 62,140,684 | 49,529,833 | 34,274,718 | ||||||||
Net loss per share attributable to common stockholders, basic and diluted (in usd per share) | $ (0.80) | $ (0.63) | $ (0.39) |
Basic and Diluted Loss per Co_4
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Series A convertible preferred stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Convertible preferred stock (in shares) | 0 | 0 | 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 | 0 | 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 | 0 | 84,360 |
Stock options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Convertible preferred stock (in shares) | 5,021,068 | 7,010,887 | 6,784,448 |
Restricted stock units | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Convertible preferred stock (in shares) | 1,175,049 | 731,975 | 0 |
Commitments and Contingencies -
Commitments and Contingencies - Summary of Future Minimum Lease Payments (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Apr. 30, 2018 |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||
Total | $ 87,200 | |
Office Leases | ||
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||
2,019 | $ 6,985 | |
2,020 | 6,371 | |
2,021 | 8,331 | |
2,022 | 6,939 | |
2,023 | 6,987 | |
Thereafter | 65,151 | |
Total | 100,764 | |
Total | 100,764 | |
Equipment Leases | ||
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||
2,019 | 216 | |
2,020 | 22 | |
2,021 | 0 | |
2,022 | 0 | |
2,023 | 0 | |
Thereafter | 0 | |
Total | 238 | |
Total | 238 | |
Lease Related Commitments | ||
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||
2,019 | 29,587 | |
2,020 | 0 | |
2,021 | 0 | |
2,022 | 0 | |
2,023 | 0 | |
Thereafter | 0 | |
Total | 29,587 | |
Tenant Improvement Allowance | 14,441 | |
Total | $ 15,146 |
Commitments and Contingencies_2
Commitments and Contingencies -Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Apr. 30, 2018 | |
Debt Instrument [Line Items] | ||||
Total payments committed under lease amount | $ 87.2 | |||
Tenant improvement allowance | $ 18.4 | |||
Deferred rent credit, current | 1.2 | |||
Deferred rent, net of current portion | 14.4 | |||
Deferred rent, noncurrent | 17.4 | $ 2 | ||
Total rent and lease expense | 8.8 | 7 | $ 6.6 | |
Payment of royalty fees | 0.3 | |||
Outstanding letters of credit | $ 10.5 | $ 1.1 | ||
Letter of Credit | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 9.4 |
Segment and Geographic Inform_3
Segment and Geographic Information - Summary of Revenues By Geography (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | $ 226,743 | $ 176,737 | $ 132,923 |
Domestic | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | 161,716 | 128,997 | 107,069 |
International | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | $ 65,027 | $ 47,740 | $ 25,854 |
Retirement Plans (Details)
Retirement Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
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 | $ 4.7 | $ 3.3 | $ 2.6 |
Foreign Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Contribution expense related to employer matching contributions | $ 1.3 | $ 0.9 | $ 0.7 |
Selected Quarterly Informatio_3
Selected Quarterly Information (Unaudited) (Details) - USD ($) $ in Thousands | Apr. 25, 2017 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Revenue: | ||||||||||||
Total revenue | $ 60,216 | $ 54,948 | $ 59,883 | $ 51,696 | $ 50,562 | $ 44,648 | $ 43,198 | $ 38,329 | $ 226,743 | $ 176,737 | $ 132,923 | |
Cost of revenue: | ||||||||||||
Total cost of revenue | 22,210 | 20,092 | 21,574 | 21,049 | 18,657 | 16,613 | 16,637 | 12,690 | 84,925 | 64,597 | 50,123 | |
Gross profit | 38,006 | 34,856 | 38,309 | 30,647 | 31,905 | 28,035 | 26,561 | 25,639 | 141,818 | 112,140 | 82,800 | |
Operating expenses: | ||||||||||||
Sales and marketing | 30,177 | 25,467 | 27,384 | 22,964 | 22,463 | 19,725 | 22,775 | 17,003 | 105,992 | 81,966 | 54,137 | |
Research and development | 12,332 | 11,737 | 10,785 | 9,870 | 8,968 | 8,596 | 9,971 | 7,300 | 44,724 | 34,835 | 22,994 | |
General and administrative | 8,799 | 12,537 | 8,425 | 8,060 | 7,429 | 6,237 | 8,635 | 4,849 | 37,821 | 27,150 | 17,039 | |
Total operating expenses | 51,308 | 49,741 | 46,594 | 40,894 | 38,860 | 34,558 | 41,381 | 29,152 | 188,537 | 143,951 | 94,170 | |
Operating loss | (13,302) | (14,885) | (8,285) | (10,247) | (6,955) | (6,523) | (14,820) | (3,513) | (46,719) | (31,811) | (11,370) | |
Other expense (income): | ||||||||||||
Other expense (income), net | 510 | 110 | 2,593 | (918) | (380) | (425) | (734) | (499) | 2,295 | (2,038) | 1,792 | |
Interest expense (income) | 64 | 67 | 54 | 13 | 22 | (2) | 197 | 256 | 198 | 473 | 982 | |
Total other expense (income) | 574 | 177 | 2,647 | (905) | (358) | (427) | (537) | (243) | 2,493 | (1,565) | 2,774 | |
Loss before income taxes | (13,876) | (15,062) | (10,932) | (9,342) | (6,597) | (6,096) | (14,283) | (3,270) | (49,212) | (30,246) | (14,144) | |
Income tax expense (benefit) | 27 | (34) | 35 | 211 | 272 | 188 | 176 | 125 | 239 | 761 | (1,683) | |
Net loss | (13,903) | (15,028) | (10,967) | (9,553) | (6,869) | (6,284) | (14,459) | (3,395) | (49,451) | (31,007) | (12,461) | |
Stock-based compensation expense | 16,054 | 12,976 | ||||||||||
Stock-based compensation expense related to restricted stock units | ||||||||||||
Other expense (income): | ||||||||||||
Stock-based compensation expense | 6,200 | |||||||||||
Stock Option Modifications | ||||||||||||
Other expense (income): | ||||||||||||
Stock-based compensation expense | $ 2,400 | 2,400 | 0 | 2,394 | ||||||||
Subscriptions, software and support | ||||||||||||
Revenue: | ||||||||||||
Total revenue | 35,108 | 30,905 | 33,047 | 26,952 | 25,398 | 22,660 | 22,012 | 21,444 | 126,012 | 91,514 | 69,972 | |
Cost of revenue: | ||||||||||||
Total cost of revenue | 3,284 | 3,261 | 2,824 | 2,628 | 2,488 | 2,341 | 2,488 | 2,062 | 11,997 | 9,379 | 7,437 | |
Professional services | ||||||||||||
Revenue: | ||||||||||||
Total revenue | 25,108 | 24,043 | 26,836 | 24,744 | 25,164 | 21,988 | 21,186 | 16,885 | 100,731 | 85,223 | 62,951 | |
Cost of revenue: | ||||||||||||
Total cost of revenue | $ 18,926 | 16,831 | $ 18,750 | $ 18,421 | $ 16,169 | $ 14,272 | $ 14,149 | $ 10,628 | 72,928 | 55,218 | $ 42,686 | |
Chief Executive Officer | 2007 Stock Option Plan | ||||||||||||
Other expense (income): | ||||||||||||
Stock-based compensation expense | $ 4,500 | $ 5,600 | $ 2,700 |