Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 14, 2020 | Jun. 28, 2019 | |
Document and Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 001-38098 | ||
Entity Registrant Name | APPIAN CORPORATION | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 54-1956084 | ||
Entity Address, Address Line One | 7950 Jones Branch Drive | ||
Entity Address, City or Town | Tysons | ||
Entity Address, State or Province | VA | ||
Entity Address, Postal Zip Code | 20190 | ||
City Area Code | 703 | ||
Local Phone Number | 442-8844 | ||
Title of 12(b) Security | Class A Common Stock | ||
Trading Symbol | APPN | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Documents Incorporated by Reference | Portions of the registrant's definitive Proxy Statement for its 2020 Annual Meeting of Stockholders to be filed with the Securities and Exchange Commission pursuant to Regulation 14A not later than 120 days after the end of the fiscal year covered by this Annual Report on Form 10-K are incorporated by reference in Part III, Items 10-14 of this Annual Report on Form 10-K. | ||
Entity Central Index Key | 0001441683 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Class A Common Stock | |||
Document and Entity Information [Line Items] | |||
Entity Public Float | $ 832,771,572 | ||
Entity Common Stock, Shares Outstanding | 34,562,551 | ||
Class B Common Stock | |||
Document and Entity Information [Line Items] | |||
Entity Public Float | $ 89,268,922 | ||
Entity Common Stock, Shares Outstanding | 32,922,636 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets | ||||
Cash and cash equivalents | $ 159,755 | $ 94,930 | ||
Accounts receivable, net of allowance of $600 at December 31, 2019 and 2018 | 70,408 | 79,383 | ||
Deferred commissions, current | 14,543 | 14,020 | ||
Prepaid expenses and other current assets | 32,955 | 21,293 | ||
Total current assets | 277,661 | 209,626 | ||
Property and equipment, net | 39,554 | |||
Property and equipment, net | 7,539 | |||
Operating right-of-use asset | 24,205 | |||
Deferred commissions, net of current portion | 28,979 | 15,088 | ||
Deferred tax assets | 494 | 326 | ||
Other assets | 592 | 601 | ||
Total assets | 371,485 | 233,180 | ||
Current liabilities | ||||
Accounts payable | 5,222 | 9,249 | ||
Accrued expenses | 7,488 | 7,464 | ||
Accrued compensation and related benefits | 10,691 | 13,796 | ||
Deferred revenue, current | 82,201 | 95,523 | ||
Operating lease liability, current | 3,836 | |||
Finance lease liability, current | 1,447 | |||
Other current liabilities | 1,395 | 2,369 | ||
Total current liabilities | 112,280 | 128,401 | ||
Operating lease liability, net of current portion | 44,416 | |||
Finance lease liability, net of current portion | 2,375 | |||
Deferred revenue, net of current portion | 7,139 | 16,145 | ||
Deferred tax liabilities | 38 | 42 | ||
Deferred rent, net of current portion | 0 | 15,400 | ||
Total liabilities | 166,248 | 159,988 | ||
Stockholders’ equity | ||||
Additional paid-in capital | 340,929 | 218,284 | ||
Accumulated other comprehensive (loss) income | (285) | 542 | ||
Accumulated deficit | (135,413) | (145,640) | ||
Total stockholders’ equity | 205,237 | 73,192 | $ 45,524 | $ (63,492) |
Total liabilities and stockholders’ equity | 371,485 | 233,180 | ||
Class A Common Stock | ||||
Stockholders’ equity | ||||
Common stock | 3 | 3 | ||
Class B Common Stock | ||||
Stockholders’ equity | ||||
Common stock | $ 3 | $ 3 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Allowance for doubtful accounts | $ 600 | $ 600 |
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) | 34,525,386 | 29,626,054 |
Common stock, shares outstanding (in shares) | 34,525,386 | 29,626,054 |
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) | 32,942,636 | 34,290,383 |
Common stock, shares outstanding (in shares) | 32,942,636 | 34,290,383 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue: | |||||||||||
Total revenue | $ 68,618 | $ 66,155 | $ 65,275 | $ 60,304 | $ 60,216 | $ 54,948 | $ 59,883 | $ 51,696 | $ 260,352 | $ 226,743 | $ 176,737 |
Cost of revenue: | |||||||||||
Total cost of revenue | 22,773 | 23,951 | 23,051 | 24,066 | 22,210 | 20,092 | 21,574 | 21,049 | 93,841 | 84,925 | 64,597 |
Gross profit | 45,845 | 42,204 | 42,224 | 36,238 | 38,006 | 34,856 | 38,309 | 30,647 | 166,511 | 141,818 | 112,140 |
Operating expenses: | |||||||||||
Sales and marketing | 31,254 | 27,603 | 29,992 | 28,591 | 30,177 | 25,467 | 27,384 | 22,964 | 117,440 | 105,992 | 81,966 |
Research and development | 15,625 | 15,697 | 12,765 | 13,956 | 12,332 | 11,737 | 10,785 | 9,870 | 58,043 | 44,724 | 34,835 |
General and administrative | 12,028 | 11,191 | 9,261 | 9,016 | 8,799 | 12,537 | 8,425 | 8,060 | 41,496 | 37,821 | 27,150 |
Total operating expenses | 58,907 | 54,491 | 52,018 | 51,563 | 51,308 | 49,741 | 46,594 | 40,894 | 216,979 | 188,537 | 143,951 |
Operating loss | (13,062) | (12,287) | (9,794) | (15,325) | (13,302) | (14,885) | (8,285) | (10,247) | (50,468) | (46,719) | (31,811) |
Other (income) expense: | |||||||||||
Other (income) expense, net | (2,822) | 2,262 | (79) | (302) | 510 | 110 | 2,593 | (918) | (941) | 2,295 | (2,038) |
Interest expense | 131 | 96 | 69 | 71 | 64 | 67 | 54 | 13 | 367 | 198 | 473 |
Total other (income) expense | (2,691) | 2,358 | (10) | (231) | 574 | 177 | 2,647 | (905) | (574) | 2,493 | (1,565) |
Loss before income taxes | (10,371) | (14,645) | (9,784) | (15,094) | (13,876) | (15,062) | (10,932) | (9,342) | (49,894) | (49,212) | (30,246) |
Income tax expense | 426 | 5 | 267 | 122 | 27 | (34) | 35 | 211 | 820 | 239 | 761 |
Net loss | (10,797) | (14,650) | (10,051) | (15,216) | (13,903) | (15,028) | (10,967) | (9,553) | (50,714) | (49,451) | (31,007) |
Accretion of dividends on convertible preferred stock | 0 | 0 | 357 | ||||||||
Net loss attributable to common stockholders | $ (50,714) | $ (49,451) | $ (31,364) | ||||||||
Net loss per share attributable to common stockholders: | |||||||||||
Basic and diluted (in usd per share) | $ (0.77) | $ (0.80) | $ (0.63) | ||||||||
Weighted average common shares outstanding: | |||||||||||
Basic and diluted (in shares) | 65,479,327 | 62,140,684 | 49,529,833 | ||||||||
Subscriptions | |||||||||||
Revenue: | |||||||||||
Total revenue | 42,108 | 37,774 | 36,860 | 34,557 | 35,108 | 30,905 | 33,047 | 26,952 | $ 151,299 | $ 126,012 | $ 91,514 |
Cost of revenue: | |||||||||||
Total cost of revenue | 4,993 | 4,484 | 4,036 | 3,585 | 3,284 | 3,261 | 2,824 | 2,628 | 17,098 | 11,997 | 9,379 |
Professional services | |||||||||||
Revenue: | |||||||||||
Total revenue | 26,510 | 28,381 | 28,415 | 25,747 | 25,108 | 24,043 | 26,836 | 24,744 | 109,053 | 100,731 | 85,223 |
Cost of revenue: | |||||||||||
Total cost of revenue | $ 17,780 | $ 19,467 | $ 19,015 | $ 20,481 | $ 18,926 | $ 16,831 | $ 18,750 | $ 18,421 | $ 76,743 | $ 72,928 | $ 55,218 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||||||||||
Net loss | $ (10,797) | $ (14,650) | $ (10,051) | $ (15,216) | $ (13,903) | $ (15,028) | $ (10,967) | $ (9,553) | $ (50,714) | $ (49,451) | $ (31,007) |
Comprehensive loss, net of income taxes: | |||||||||||
Foreign currency translation adjustment | (827) | 103 | (891) | ||||||||
Total other comprehensive loss, net of income taxes | $ (51,541) | $ (49,348) | $ (31,898) |
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, 2016 | 34,274,718 | ||||||
Beginning 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 income (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 income (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) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net loss | (50,714) | (50,714) | |||||
Issuance of common stock from initial public offering, net of issuance costs (in shares) | 1,825,000 | ||||||
Issuance of common stock from initial public offering, net of issuance costs | $ 101,303 | 101,303 | |||||
Issuance of common stock to directors (in shares) | 10,654 | ||||||
Vesting of restricted stock units (in shares) | 521,460 | 521,460 | |||||
Exercise of stock options (in shares) | 1,194,471 | 1,194,471 | |||||
Exercise of stock options | $ 4,899 | 4,899 | |||||
Stock-based compensation expense | 16,443 | 16,443 | |||||
Other comprehensive income (loss) | (827) | (827) | |||||
Ending balance (in shares) at Dec. 31, 2019 | 67,468,022 | ||||||
Ending balance at Dec. 31, 2019 | $ 205,237 | $ 6 | $ 340,929 | $ (285) | $ (135,413) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | |||
Net loss | $ (50,714) | $ (49,451) | $ (31,007) |
Adjustments to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities [Abstract] | |||
Depreciation and amortization | 4,742 | 2,021 | 886 |
Loss (gain) on disposal of equipment | 146 | (4) | 0 |
Bad debt expense | 99 | 211 | 62 |
Deferred income taxes | (334) | (218) | (251) |
Stock-based compensation | 16,443 | 16,054 | 12,976 |
Fair value adjustment for warrant liability | 0 | 0 | 341 |
Loss on extinguishment of debt | 0 | 0 | 384 |
Changes in assets and liabilities: | |||
Accounts receivable | 7,432 | (23,332) | (9,716) |
Prepaid expenses and other assets | 8,972 | (1,025) | (4,162) |
Deferred commissions | (9,319) | (7,615) | (3,487) |
Accounts payable and accrued expenses | (4,039) | 7,461 | 4,128 |
Accrued compensation and related benefits | (3,072) | (3) | 2,365 |
Other current liabilities | 1,318 | 1,823 | 383 |
Deferred revenue | 12,573 | 23,023 | 18,344 |
Operating lease liabilities | 6,827 | ||
Deferred rent, non-current | 0 | (266) | (374) |
Net cash used in operating activities | (8,926) | (31,321) | (9,128) |
Cash flows from investing activities: | |||
Purchases of property and equipment | (32,421) | (7,014) | (433) |
Proceeds from sale of equipment | 0 | 4 | 0 |
Net cash used in investing activities | (32,421) | (7,010) | (433) |
Cash flows from financing activities: | |||
Proceeds from public offering, net of underwriting discounts | 101,653 | 58,258 | 0 |
Proceeds from initial public offering, net of underwriting discounts | 0 | 0 | 80,213 |
Payment of costs related to public offerings | (350) | (429) | (2,424) |
Payment of dividend to Series A preferred stockholders | 0 | 0 | (7,565) |
Proceeds from exercise of common stock options | 4,899 | 3,133 | 1,108 |
Principal payments on finance lease obligations | (653) | ||
Repayment of long-term debt | 0 | 0 | (40,000) |
Proceeds from issuance of long-term debt, net of debt issuance costs | 0 | 0 | 19,616 |
Net cash provided by financing activities | 105,549 | 60,962 | 50,948 |
Effect of foreign exchange rate changes on cash and cash equivalents | 623 | (1,459) | 1,228 |
Net increase in cash and cash equivalents | 64,825 | 21,172 | 42,615 |
Cash and cash equivalents, beginning of period | 94,930 | 73,758 | 31,143 |
Cash and cash equivalents, end of period | 159,755 | 94,930 | 73,758 |
Supplemental disclosure of cash flow information: | |||
Cash paid for interest | 331 | 46 | 515 |
Cash paid for income taxes | 356 | 680 | 615 |
Supplemental disclosure of non-cash financing activities: | |||
Finance lease obligations to acquire new office furniture and fixtures and computer hardware | 4,475 | ||
Accretion of dividends on convertible preferred stock | 0 | 0 | 357 |
Conversion of convertible preferred stock to common stock | |||
Supplemental disclosure of non-cash financing activities: | |||
Conversion of convertible stock | 0 | 0 | 48,207 |
Conversion of convertible preferred stock warrant to common stock warrant | |||
Supplemental disclosure of non-cash financing activities: | |||
Conversion of convertible stock | $ 0 | $ 0 | $ 1,191 |
Organization and Description of
Organization and Description of Business | 12 Months Ended |
Dec. 31, 2019 | |
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 automation platform that accelerates the creation of high-impact business applications, enabling our customers to automate the most important aspects of their business. Global organizations use our applications to improve customer experience, achieve operational excellence and simplify global risk management and compliance. We were incorporated in the state of Delaware in August 1999. We are headquartered in Tysons, 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, 2019 | |
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 and stock-based compensation. 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 Offerings 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 an 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. In September 2019, we completed an underwritten public offering of 2,329,000 shares of our Class A common stock, of which 1,825,000 shares of Class A common stock were sold by us and 504,000 shares of Class A common stock were sold by existing stockholders. The underwriter purchased the shares from us and the selling stockholders at a price of $55.70 per share. Our net proceeds from the offering were $101.3 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 subscriptions revenue primarily through the sale of SaaS subscriptions bundled with maintenance and support and hosting services and term license subscriptions bundled with maintenance and support. We generate professional services revenue from fees for our consulting services, including application development and deployment assistance and training related to our platform. Because we were an “emerging growth company” until December 31, 2019, the Jumpstart Our Business Startups Act (the “JOBS Act”) allowed us to delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. We elected to use this extended transition period that allowed us not to adopt Financial Accounting Standards Board, or FASB, Accounting Standards Updated, or ASU, 2014-09, Revenue from Contracts with Customers (Topic 606) ("ASC 606") in our Quarterly Reports on Form 10-Q during 2019. The 2019 selected quarterly information in Note 14 have been recast in accordance with ASC 606. We adopted ASC 606 on January 1, 2019 using the modified retrospective method. Under this method of adoption, we recognized the cumulative effect of initially applying the new revenue standard as an adjustment to the opening balance of accumulated deficit. Comparative periods were not adjusted. The following table summarizes revenue from contracts with customers for the year ended December 31, 2019 (in thousands): Year Ended December 31, 2019 SaaS subscriptions $ 95,028 Term license subscriptions 40,428 Maintenance and support 15,843 Professional services 109,053 Total revenue $ 260,352 Performance Obligations and Timing of Revenue Recognition We primarily sell products and services that fall into the categories discussed below. Each category contains one or more performance obligations that are either (1) capable of being distinct (i.e. the customer can benefit from the product or service on its own or together with readily available resources, including those purchased separately from us) and distinct within the context of the contract (i.e. separately identified from other promises in the contract) or (2) a series of distinct products or services that are substantially the same and have the same pattern of transfer to the customer. Our term license subscriptions are delivered at a point in time. Our SaaS subscriptions, maintenance and support and professional services are delivered over time. Subscriptions Revenue Subscriptions revenue is primarily related to (1) SaaS subscriptions bundled with maintenance and support and hosting services and (2) term license subscriptions bundled with maintenance and support. 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 an annual, quarterly or monthly basis. In certain instances, our customers have paid their entire contract up front. SaaS Subscriptions We generate cloud-based subscription revenue primarily from the sales of subscriptions to access our cloud offering, together with related support services to our customers. We perform all required maintenance and support for our cloud offering and we do not separately charge customers for hosting costs. Revenue is recognized on a ratable basis over the contract term beginning on the date the service is made available to the customer. Our cloud-based subscription contracts generally have a term of one three Term License Subscriptions Our term license subscription revenue is derived from customers with on-premises installations of our platform pursuant to contracts that were historically one three Maintenance and Support Maintenance and support subscriptions include both technical support and when-and-if-available software upgrades, which are treated as a single performance obligation as they are considered a series of distinct services that are substantially the same and have the same duration and measure of progress. Revenue from maintenance and support is recognized ratably over the contract period, which is the period over which the customer has continuous access to maintenance and support. Professional Services Our professional services revenue is comprised of fees for consulting services, including application development and deployment assistance and training services related to our platform. Our professional services are considered distinct performance obligations when sold stand alone or with other products. Consulting Services We sell consulting services to assist customers plan and execute deployment of our software. Customers are not required to use consulting services to fully benefit from the software. Consulting services are regularly sold on a standalone basis and either (1) a fixed-fee arrangement or (2) a time and materials basis. Consulting contracts are each considered separate performance obligations because they do not integrate with each other or with other products and services to deliver a combined output to the customer, do not modify or customize (or are not modified or customized by) each other or other products and services, and do not affect the customer's ability to use the other consulting offerings or other products and services. Revenue under consulting contracts is recognized over time as services are delivered. For time and materials-based consulting contracts, we have elected the practical expedient of recognizing revenue upon invoicing since the invoiced amount corresponds directly to the value of our service to-date. Training Services We sell various training services to our customers. Training services are sold in the form of prepaid training credits that are redeemed based on a fixed rate per course. Training revenue is recognized when the associated training services are delivered. Significant Judgments and Estimates Determine the Transaction Price The transaction price includes both fixed and variable consideration. Variable consideration is included in the transaction price to the extent it is probable that a significant reversal will not occur. The amount of variable consideration excluded from the transaction price for the year ended December 31, 2019 was insignificant. Our estimates of variable consideration are also subject to subsequent true-up adjustments and may result in changes to its transaction prices but such true-up adjustments are not expected to be material. Allocating the Transaction Price Based on Standalone Selling Prices We allocate the transaction price to each performance obligation in a contract based on its relative SSP. The SSP is the observable price at which we sell the product or service separately. In the absence of observable pricing, we estimate SSP using the residual approach. We establish SSP as follows: 1. SaaS subscriptions - Given the highly variable selling price of our SaaS subscriptions, we establish the SSP of our SaaS subscriptions using a residual approach after first determining the SSP of consulting and training services. We have concluded that the residual approach to estimate SSP of our SaaS subscriptions is an appropriate allocation of the transaction price. 2. Term license subscriptions - Given the highly variable selling price of our term license subscriptions, we have established SSP of term license subscriptions using a residual approach after first determining the SSP of maintenance and support. Maintenance and support is sold on a standalone basis, with renewals of our legacy perpetual software licenses, within a narrow range of the net license fee and because an economic relationship exists between the license and maintenance and support, we have concluded that the residual approach to estimate SSP of term license subscriptions is an appropriate allocation of the transaction price. 3. Maintenance and support - We establish SSP of maintenance and support as a percentage of the stated net subscription fee based on observable pricing of maintenance and support renewals from our legacy perpetual software licenses. 4. Consulting services and training services - SSP of consulting services and training services is established based on the observable pricing of standalone sales within each geographic region where the services are sold. Contract Balances Timing may differ between the satisfaction of performance obligations and the invoicing and collection of amounts related to our contracts with customers. Contract assets primarily relate to unbilled amounts for contracts with customers for which the amount of revenue recognized exceeds the amount billed to the customer. Contract assets are transferred to accounts receivable when the right to invoice becomes unconditional. As of January 1, 2019 and December 31, 2019, contract assets of $25.8 million and $22.8 million, respectively, are included in prepaid expenses and other current assets in our consolidated balance sheet. Contract liabilities consists of deferred revenue and include payments received in advance of the satisfaction of performance obligations. For the year ended December 31, 2019, we recognized $66.6 million of revenue that was included in deferred revenue as of January 1, 2019. Deferred revenue that will be recognized during the succeeding 12-month period is recorded as current, and the remaining deferred revenue is recorded as non-current. Transaction Price Allocated to the Remaining Performance Obligations As of December 31, 2019, we had an aggregate transaction price of $175.8 million, allocated to unsatisfied performance obligations related to SaaS subscriptions, term license subscriptions and maintenance and support. We expect to recognize $153.7 million as revenue over the next 24 months with the remaining amount recognized thereafter. Transition Disclosures For periods prior to January 1, 2019, we recognized revenue in accordance with FASB ASC Topic 605, Revenue Recognition ("ASC 605"). In accordance with the modified retrospective method transition requirements, we will present the financial statement line items impacted and adjusted to compare to presentation under ASC 605 for the annual periods during the first year of adoption of ASC 606. Consolidated Balance Sheets - Reconciliation of the Impacts from the Adoption of the New Revenue Recognition Standard The following table summarizes the impacts from the adoption of the new revenue recognition standard on our consolidated balance sheet as of December 31, 2019 (in thousands): As of December 31, 2019 2018 As Reported (ASC 606) Impacts from Adoption Without Adoption (ASC 605) As Reported (ASC 605) Assets Current assets Cash and cash equivalents $ 159,755 $ — $ 159,755 $ 94,930 Accounts receivable, net of allowance 70,408 — 70,408 79,383 Deferred commissions, current 14,543 (6,061) 20,604 14,020 Prepaid expenses and other current assets 32,955 16,343 16,612 21,293 Total current assets 277,661 10,282 267,379 209,626 Property and equipment, net 39,554 — 39,554 7,539 Operating right-of-use asset 24,205 — 24,205 — Deferred commissions, net of current portion 28,979 15,780 13,199 15,088 Deferred tax assets 494 — 494 326 Other assets 592 — 592 601 Total assets 371,485 26,062 345,423 233,180 Liabilities and Stockholders’ Equity Current liabilities Accounts payable $ 5,222 $ — $ 5,222 $ 9,249 Accrued expenses 7,488 — 7,488 7,464 Accrued compensation and related benefits 10,691 — 10,691 13,796 Deferred revenue, current 82,201 (28,985) 111,186 95,523 Operating lease liability, current 3,836 — 3,836 — Finance lease liability, current 1,447 — 1,447 — Other current liabilities 1,395 — 1,395 2,369 Total current liabilities 112,280 (28,985) 141,265 128,401 Operating lease liability, net of current portion 44,416 — 44,416 — Finance lease liability, net of current portion 2,375 — 2,375 — Deferred revenue, net of current portion 7,139 (4,891) 12,030 16,145 Deferred tax liabilities 38 — 38 42 Deferred rent, net of current portion — — — 15,400 Total liabilities 166,248 (33,876) 200,124 159,988 Stockholders’ equity Class A common stock 3 — 3 3 Class B common stock 3 — 3 3 Additional paid-in capital 340,929 — 340,929 218,284 Accumulated other comprehensive (loss) income (285) 320 (605) 542 Accumulated deficit (135,413) 59,618 (195,031) (145,640) Total stockholders’ equity 205,237 59,938 145,299 73,192 Total liabilities and stockholders’ equity $ 371,485 26,062 $ 345,423 $ 233,180 The following summarizes the significant changes on the consolidated balance sheet as of December 31, 2019 as a result of the adoption of ASC 606 on January 1, 2019 compared to if we had continued to recognize revenue under ASC 605: • Total deferred commissions increased $9.7 million due to the increase in the amortization period of costs to obtain a contract for a new customer or up-sell from the contract term to the five year estimated economic life. • Prepaid expenses and other current assets increased $16.3 million and total deferred revenue decreased $33.9 million due to the change in timing of when we recognize revenue under ASC 606. Consolidated Statements of Operations - Reconciliation of the Impacts from the Adoption of the New Revenue Recognition Standard The following table summarizes the impacts from the adoption of the new revenue recognition standard on our consolidated statement of operations for the year ended December 31, 2019 (in thousands): Year Ended December 31, 2019 2018 As Reported (ASC 606) Impacts from Adoption Without Adoption (ASC 605) As Reported (ASC 605) Revenue: Subscriptions $ 151,299 $ (8,786) $ 160,085 $ 126,012 Professional services 109,053 2,791 106,262 100,731 Total revenue 260,352 (5,995) 266,347 226,743 Cost of revenue: Subscriptions 17,098 — 17,098 11,997 Professional services 76,743 — 76,743 72,928 Total cost of revenue 93,841 — 93,841 84,925 Gross profit 166,511 (5,995) 172,506 141,818 Operating expenses: Sales and marketing 117,440 (4,625) 122,065 105,992 Research and development 58,043 — 58,043 44,724 General and administrative 41,496 — 41,496 37,821 Total operating expenses 216,979 (4,625) 221,604 188,537 Operating loss (50,468) (1,370) (49,098) (46,719) Other (income) expense: Other (income) expense, net (941) (47) (894) 2,295 Interest expense 367 — 367 198 Total other (income) expense (574) (47) (527) 2,493 Loss before income taxes (49,894) (1,323) (48,571) (49,212) Income tax expense 820 — 820 239 Net loss $ (50,714) $ (1,323) $ (49,391) $ (49,451) Net loss per share attributable to common stockholders: Basic and diluted $ (0.77) $ (0.02) $ (0.75) $ (0.80) The following summarizes the significant changes on the consolidated statement of operations for the year ended December 31, 2019 as a result of the adoption of ASC 606 on January 1, 2019 compared to if we had continued to recognize revenue under ASC 605: • Subscriptions revenue decreased $8.8 million for the year ended December 31, 2019 under ASC 606 primarily due to the change in timing of when we recognize term license subscription revenue. Additionally, a significant amount of our unrecognized term license subscriptions revenue was recorded as an adjustment to accumulated deficit under ASC 606. Under ASC 606, our term license subscription revenue is recognized at the time of delivery, as opposed to ratably over the contract term under ASC 605. • Professional services revenue increased $2.8 million for the year ended December 31, 2019 under ASC 606 primarily due to the fact that our professional services are sold together with SaaS or term licenses. Under ASC 606, the professional services represent distinct performance obligations and therefore are recognized as services are performed. Under ASC 605, professional services sold together with term licenses were recognized ratably over the contract period of maintenance and support. • Sales and marketing expense decreased $4.6 million for the year ended December 31, 2019 under ASC 606 primarily due to the increase in the period over which we amortize our deferred sales commissions. Consolidated Statements of Comprehensive Loss - Reconciliation of the Impacts from the Adoption of the New Revenue Recognition Standard The following table summarizes the impacts from the adoption of the new revenue recognition standard on our consolidated statement of comprehensive loss for the year ended December 31, 2019 (in thousands): Year Ended December 31, 2019 2018 As Reported (ASC 606) Impacts from Adoption Without Adoption (ASC 605) As Reported (ASC 605) Net loss $ (50,714) $ (1,323) $ (49,391) $ (49,451) Comprehensive loss, net of income taxes: Foreign currency translation adjustment (827) 115 (942) 103 Total other comprehensive loss, net of income taxes $ (51,541) $ (1,208) $ (50,333) $ (49,348) Consolidated Statements of Cash Flows - Reconciliation of the Impacts from the Adoption of the New Revenue Recognition Standard The following table summarizes the impacts from the adoption of the new revenue recognition standard on our consolidated statement of cash flows for the year ended December 31, 2019 (in thousands): Year Ended December 31, 2019 2018 As Reported (ASC 606) Impacts from Adoption Without Adoption (ASC 605) As Reported (ASC 605) Net loss $ (50,714) $ (1,323) $ (49,391) $ (49,451) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 4,742 — 4,742 2,021 Loss (gain) on disposal of equipment 146 — 146 (4) Bad debt expense 99 — 99 211 Deferred income taxes (334) — (334) (218) Stock-based compensation 16,443 — 16,443 16,054 Changes in assets and liabilities: Accounts receivable 7,432 — 7,432 (23,332) Prepaid expenses and other assets 8,972 4,313 4,659 (1,025) Deferred commissions (9,319) (4,625) (4,694) (7,615) Accounts payable and accrued expenses (4,039) — (4,039) 7,461 Accrued compensation and related benefits (3,072) — (3,072) (3) Other current liabilities 1,318 — 1,318 1,823 Deferred revenue 12,573 1,717 10,856 23,023 Operating lease liabilities 6,827 — 6,827 — Deferred rent, non-current — — — (266) Net cash used in operating activities (8,926) 82 (9,008) (31,321) Cash flows from investing activities: Purchases of property and equipment (32,421) — (32,421) (7,014) Proceeds from sale of equipment — — — 4 Net cash used in investing activities (32,421) — (32,421) (7,010) Cash flows from financing activities: Proceeds from public offering, net of underwriting discounts 101,653 — 101,653 58,258 Payment of costs related to public offerings (350) — (350) (429) Proceeds from exercise of common stock options 4,899 — 4,899 3,133 Principal payments on finance lease obligations (653) — (653) — Net cash provided by financing activities 105,549 — 105,549 60,962 Effect of foreign exchange rate changes on cash and cash equivalents 623 (82) 705 (1,459) Net increase in cash and cash equivalents 64,825 — 64,825 21,172 Cash and cash equivalents, beginning of period 94,930 — 94,930 73,758 Cash and cash equivalents, end of period $ 159,755 — $ 159,755 $ 94,930 Legacy Revenue Accounting Policy For periods prior to January 1, 2019, revenue was recognized in accordance with ASC 605. Under ASC 605, 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. Subscriptions Revenue Subscriptions revenue is primarily related to (1) SaaS subscriptions bundled with maintenance and support and hosting services and (2) term license subscriptions bundled with maintenance and support. We generally charge subscription fees on a per-user basis, or alternatively, 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, our customers have paid 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 three Term License Subscriptions Our term license subscription revenue is derived from customers with on-premises installations of our platform pursuant to contracts that were historically one three 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 sold in the form of prepaid training credits that are redeemed based on a fixed rate per course. We defer recognition of revenue from work performed on pending contract modifications until the period in which the modifications are accepted and funding is approved by the customer. Costs of work performed on pending contract modifications are expensed as incurred. Multiple Element Arrangements Our multiple element arrangements are from SaaS subscriptions and term license subscriptions that are generally sold in combination with maintenance and support service and frequently with professional services. SaaS Subscriptions For multiple element arrangements involving SaaS subscriptions that include professional services in addition to the subscription to our platform, we evaluate each element to determine whether it represents a separate unit of accounting. Because there are third-party vendors who routinely sell and provide the same professional services to our customers, our professional services are deemed to have standalone value apart from the SaaS subscription. Additionally, we offer both SaaS subscriptions and professional services on a standalone basis. Professional services revenue is therefore accounted for separately from subscription fees and recognized as the professional services are performed. We allocate revenue to the elements based on the selling price hierarchy using vendor-specific objective evidence ("VSOE") of selling price, third-party evidence ("TPE") of selling price, or if neither exists, best estimated selling price ("BESP"). In cases where we do not have VSOE or TPE of the elements of our arrangements, we use BESP to allocate revenue. We determine BESP for a service by considering multiple factors including, but not limited to, evaluating the weighted average of actual sales prices and other factors such as gross margin objectives, pricing practices and growth strategy. Pricing practices taken into consideration include historic contractually stated prices, volume discounts where applicable and our price lists. While we believe we can make reliable estimates regarding these matters, these estimates are inherently subjective. Once the revenue is allocated to these elements, revenue is recognized as such services are provided. Term License Subscriptions For multiple element arrangements involving term license subscriptions, maintenance and support and professional services, we do not have VSOE of fair value for the maintenance and support. Our term license subscriptions are generally not sold on a standalone basis, and therefore, we have not established VSOE of fair value for the subscriptions. Consequently, for our bundled arrangements that include certain professional services, there are two undelivered elements for which VSOE of fair value has not been established and, therefore, we utilize the combined services approach and defer all revenue until the software has been delivered and the provision of all services has commenced. We then recognize the entire fee from the arrangement ratably over the remaining period of the arrangement, assuming all other software revenue recognition criteria have been met. Cost of Revenue Subscriptions Cost of subscriptions 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. Professional Services 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, as well as the costs of billable expenses, such as travel and lodging. The unpredictability of the timing of entering into significant professional services agreements sold on a standalone basis may cause significant fluctuations in our quarterly financial results. Concentration of Credit and Customer Risk Our financial instruments that are exposed to concentration of credit and customer risk consist primarily of cash and cash equivalents and trade accounts receivable. Deposits held with banks may exceed the amount of insurance, if any, 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 17.1%, 15.7% and 15.4% of our revenue for the years ended December 31, 2019, 2018 and 2017, respectively, of which the top three U.S. federal government agencies generated 7.4%, 7.8% and 8.4% of our revenue for the years ended December 31, 2019, 2018 and 2017, respectively. Additionally, 32.3%, 28.7% and 27.0% of our revenue during the years ended December 31, 2019, 2018 and 2017, respectively, was generated from foreign customers. 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, 2019 2018 2017 Balance as of January 1 $ 600 $ 400 $ 400 Additions 99 211 62 Less write-offs, net of recoveries (99) (11) (62) Balance as of December 31 $ 600 $ 600 $ 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. 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 was classified within prepaid expenses and other current assets in the accompanying consolidated balance sheets. We recognized our initial tenant improvement allowance receivable of $15.8 million related to our new headquarters once we took initial possession of the space in October 2018. We recognized additional tenant improvement allowance receivable of $2.6 million when we took possession of adjacent office space in February 2019. We had received the entire tenant improvement allowance of $17.0 million as of December 31, 2019, and therefore, there was no receivable balance remaining as of such date. Assets Recognized from the Costs to Obtain a Contract with a Customer We capitalize the incremental costs of obtaining a contract with a customer, including, sales commissions paid to our direct sales force. These costs are recorded as deferred commissions in the consolidated balance sheets. Costs to obtain a contract for a new customer or up-sell are amortized on a straight-line basis over an estimated economic life of five years as sales commissions on initial sales are not commensu |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment consisted of the following as of December 31 (in thousands): 2019 2018 Leasehold improvements $ 37,130 $ 9,958 Office furniture and fixtures 4,963 649 Computer hardware 3,365 2,535 Computer software 1,350 1,727 Equipment 72 138 46,880 15,007 Less: accumulated depreciation (7,326) (7,468) Property and equipment, net $ 39,554 $ 7,539 Depreciation and amortization totaled $4.7 million, $2.0 million and $0.9 million for the years ended December 31, 2019, 2018 and 2017, respectively. During the year ended December 31, 2019, we retired $3.2 million of leasehold improvements, $0.9 million of computer hardware, $0.4 million of office furniture and fixtures, $0.4 million of software and $0.1 million of equipment associated with the relocation of our corporate headquarters. During the year ended December 31, 2019, we recorded a loss on disposal of $0.1 million. During the year ended December 31, 2018, we disposed of $0.1 million of fully depreciated computer hardware. |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Accrued Expenses Accrued expenses consisted of the following as of December 31 (in thousands): 2019 2018 Accrued contract labor costs $ 1,921 $ 3,128 Accrued hosting costs 1,865 579 Accrued reimbursable employee expenses 1,353 459 Accrued legal costs 422 — Accrued marketing and tradeshow expenses 365 229 Accrued audit and tax expenses 315 375 Accrued third party license fees 288 729 Other accrued expenses 959 1,965 Total $ 7,488 $ 7,464 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt 2017 Revolving Line of Credit In November 2017, we entered into a $20.0 million revolving line of credit with a lender. The facility matures in November 2022. We may elect whether amounts drawn on the revolving line of credit bear interest at a floating rate per annum equal to either the LIBOR or the prime rate plus an additional interest rate margin that is determined by the availability of the borrowings under the revolving line of credit. The additional interest rate margin will range from 2.00% to 2.50% in the case of LIBOR advances and from 1.00% to 1.50% in the case of prime rate advances. The revolving line of credit contains an unused facility fee in an amount between 0.15% and 0.25% of the average unused portion of the revolving line of credit, which is payable quarterly. The agreement contains certain customary affirmative and negative covenants and requires us to maintain |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes For the years ended December 31, 2019, 2018 and 2017, our loss before income taxes was comprised of the following (in thousands): 2019 2018 2017 Domestic $ (32,091) $ (30,663) $ (23,093) Foreign (17,803) (18,549) (7,153) Total $ (49,894) $ (49,212) $ (30,246) For the years ended December 31, 2019, 2018 and 2017, our income tax expense (benefit) was comprised of the following (in thousands): 2019 2018 2017 Current: Federal $ 3 $ — $ (65) State 60 25 68 Foreign 1,091 432 1,009 Total current expense 1,154 457 1,012 Deferred: Federal — — (42) State — — — Foreign (334) (218) (209) Total deferred benefit (334) (218) (251) Total income tax expense $ 820 $ 239 $ 761 For the years ended December 31, 2019, 2018 and 2017, 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: 2019 2018 2017 U.S. federal statutory tax rate 21.0 % 21.0 % 34.0 % State tax expense 7.1 7.2 4.9 Foreign rate differential (5.1) (5.1) (6.7) Nondeductible expenses (0.7) (0.7) (0.9) Equity compensation 12.0 9.5 — Tax credits 6.5 3.9 5.8 Unrecognized tax benefits (1.1) (0.8) (0.7) Other (0.8) 0.6 (0.3) Remeasurement of deferred taxes (1.6) — (7.0) Change in valuation allowance (38.9) (36.0) (31.6) Total (1.6) % (0.4) % (0.4) % The effective tax rate of (1.6)% in 2019 includes a net $10.2 million of tax expense attributable to the change in the valuation allowance in the United States and Switzerland, partially offset by favorable excess tax benefits for equity compensation and research credits. 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, 2019 and 2018, significant components of our deferred tax assets and liabilities were as follows (in thousands): 2019 2018 Deferred tax assets: Net operating losses $ 34,875 $ 21,059 Tax credits 8,648 5,945 Deferred revenue 1,291 4,179 Equity compensation 1,668 3,923 Lease liabilities 13,066 — Accrued vacation 409 1,170 Deferred rent — 373 Bad debt 164 164 Depreciation — 151 Other 260 548 Gross deferred tax assets 60,381 37,512 Less: Valuation allowance (35,607) (30,039) Total deferred tax assets 24,774 7,473 Deferred tax liabilities: Prepaid expenses (9,562) (6,640) Right-of-use assets (6,488) — Unbilled receivables (3,849) (419) Depreciation (4,377) — Other (42) (130) Total deferred tax liabilities (24,318) (7,189) Net deferred tax asset $ 456 $ 284 As of December 31, 2019 and 2018, we had $99.3 million and $56.9 million of gross net operating loss (“NOL”) carryforwards for U.S. federal tax purposes, respectively. U.S. federal NOL carryforwards, in the amount of $24.4 million, generated prior to 2018 will expire, if unused, in 2037. Due to the Tax Cuts and Jobs Act of 2017 (the "TCJA"), U.S. federal NOL carryforwards, in the amount of $74.9 million, generated after 2017 have an indefinite carryforward period. Section 382 of the Internal Revenue Code limits the utilization of the NOL carryforwards when ownership changes occur, as defined by that section. A number of states have similar state laws that limit utilization of the state NOL carryforwards when ownership changes occur. We have performed an analysis of our Section 382 ownership changes and have determined that all U.S. federal and state NOL carryforwards are available for use as of December 31, 2019. As of December 31, 2019 and 2018, we had $7.5 million and $6.4 million, respectively, of U.S. federal tax credit carryforwards which will expire, if unused, in 2039. As of December 31, 2019 and 2018, we had U.S. gross state NOL carryforwards of $100.9 million and $57.2 million, respectively. We had tax effected state NOL carryforwards of $6.5 million and $3.7 million as of December 31, 2019 and 2018, respectively. The majority of state NOL carryforwards generated prior to 2018 will expire, if unused, in 2037. Due to the TCJA, certain state NOL carryforwards generated after 2017 have an indefinite carryforward period. As of December 31, 2019 and 2018, we had foreign gross NOL carryforwards of $62.8 million and $56.3 million, respectively, primarily attributable to our subsidiary in Switzerland. Those NOL carryforwards will begin to expire, if unused, between 2021 to 2026. On May 19, 2019, Swiss voters approved the Federal Act on Tax Reform and AHV Financing (TRAF) which resulted in a change to the Swiss income tax rate, amongst other items. The tax law change is considered enacted in 2019 for U.S. GAAP purposes. We remeasured our Swiss deferred tax balances and offsetting valuation allowance using the enacted tax rates, resulting in an immaterial net tax impact. The net change during the year in the total valuation allowance was $5.6 million, primarily driven by the valuation allowance recorded against the United States and Switzerland deferred tax assets. As of December 31, 2019, we continued to maintain a full valuation allowance against U.S. deferred tax assets based on our cumulative operating results as of December 31, 2019, 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, 2019, we have a valuation allowance of $7.3 million against foreign deferred tax assets, primarily for deferred tax assets at our subsidiary in Switzerland. Based on our cumulative operating results as of December 31, 2019, 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 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, 2019 and 2018, we had unrecognized tax benefits of $1.6 million and $1.0 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, 2017 to December 31, 2019 (in thousands): Balance as of January 1, 2017 $ 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 Additions for tax positions in current years 536 Additions for tax positions in prior years — Reductions due to lapse in statutes of limitations — Settlements — Balance as of December 31, 2019 $ 1,575 We recognize interest and penalties related to uncertain tax positions in income tax expense. During the year ended December 31, 2019, we recognized approximately $3 thousand in interest. We did not recognize any interest during the year ended December 31, 2018. The cumulative balance of interest and penalties as of December 31, 2019 and 2018 was $36 thousand and $33 thousand, respectively. If recognized, approximately $1.6 million and $1.0 million of unrecognized tax benefits would impact the effective tax rate during the years ended December 31, 2019 and 2018, respectively. We anticipate that total unrecognized tax benefits will not decrease over the next year. We file income tax returns in the U.S. federal jurisdiction and in various state and foreign jurisdictions. The tax years 2015 through 2019 remain open to examination by the major taxing jurisdictions to which we are subject. There are no open examinations that would have a material impact to our consolidated financial statements. On January 1, 2019, we adopted ASC 606 and recorded no net impact to retained earnings for the tax effects of the adoption because of the existence of valuation allowances in the United States and Switzerland. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation In May 2017, our board of directors adopted, and our stockholders approved, the 2017 Equity Incentive Plan (the “2017 Plan”), which became effective as of the date of the final prospectus for our IPO. The 2017 Plan provides for the grant of incentive stock options to employees, and for the grant of nonstatutory stock options, restricted stock awards, restricted stock unit awards, stock appreciation rights, performance-based stock awards and other forms of equity compensation to employees, including officers, and to non-employee directors and consultants. We initially reserved 6,421,442 shares of Class A common stock for issuance under the 2017 Plan, which included 421,442 shares that remained available for issuance under our 2007 Stock Option Plan (the “2007 Plan”) at the time that the 2017 Plan became effective. The number of shares reserved under the 2017 Plan increases for any shares subject to outstanding awards originally granted under the 2007 Plan that expire or are forfeited prior to exercise. As a result of the adoption of the 2017 Plan, no further grants may be made under the 2007 Plan. As of December 31, 2019, there were 7,108,049 shares of Class A common stock reserved for issuance under the 2017 Plan, of which 4,668,941 were available to be issued. We estimate the fair value of stock options containing only a service condition 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. In May 2019, our board of directors granted a stock option to purchase 700,000 shares of our Class A common stock to our Chief Executive Officer (the "2019 CEO Grant") under the 2017 Plan with an exercise price of $33.98 per share. The 2019 CEO Grant is eligible to vest based on the achievement of a stock price appreciation target of our Class A common stock. Specifically, the 2019 CEO Grant will vest when shares of our Class A common stock closes at or above $84.63 per share for a period equal to or greater than 90 calendar days or upon the occurrence of a change in control in which the value of our Class A common stock is equal to or greater than $84.63 per share within five years of the grant date. The fair value of the 2019 CEO Grant was determined using a Monte Carlo simulation. The fair value of the award at the grant date was $9.5 million and will be amortized over the derived service period of 2.6 years. The following table summarizes the assumptions used to estimate the fair value of stock options granted during the years ended December 31, 2019, 2018 and 2017: 2019 2018 2017 Risk-free interest rate 2.1% * 1.9% - 2.2% Expected term (in years) 2.6 * 6.5 Expected volatility 55.0% * 38.1% - 40.6% 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, 2019, 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 Granted 700,000 33.98 Exercised (1,194,471) 4.11 44,081 Canceled (67,986) 10.17 Outstanding at December 31, 2019 4,458,611 12.30 5.8 115,501 Exercisable at December 31, 2019 2,818,731 7.51 5.7 86,536 The weighted average grant-date fair value of options granted during the years ended December 31, 2019 and 2017 was $13.57 and $5.05 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, 2019, 2018 and 2017 was $2.0 million, $10.5 million and $5.6 million, respectively. As of December 31, 2019, the total compensation cost related to unvested stock options not yet recognized was $8.4 million, which will be recognized over a weighted average period of 1.9 years. Restricted Stock Units The following table summarizes the restricted stock unit activity for the years ended December 31, 2019, 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 Granted 436,912 40.70 Vested (521,460) 27.81 Canceled (67,666) 26.38 Non-vested outstanding at December 31, 2019 1,022,835 31.39 As of December 31, 2019, total unrecognized compensation cost related to unvested restricted stock units was approximately $28.8 million and the weighted average remaining vesting period was 2.4 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 was amortized over the vesting periods. The restricted stock units vested 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, 2019, 2018 and 2017 (in thousands): 2019 2018 2017 Stock-based compensation expense related to stock options $ 3,408 $ 7,947 $ 9,607 Stock-based compensation expense related to restricted stock units 12,667 7,714 753 Stock-based compensation expense related to the issuance of common stock to directors 368 393 222 Stock-based compensation expense related to stock option modifications — — 2,394 Total stock-based compensation expense $ 16,443 $ 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, 2019, 2018 and 2017 (in thousands): 2019 2018 2017 Cost of revenue Subscriptions $ 647 $ 514 $ 575 Professional services 2,748 1,717 1,295 Operating expenses Sales and marketing 4,742 3,473 3,233 Research and development 3,480 2,416 2,822 General and administrative 4,826 7,934 5,051 Total stock-based compensation expense $ 16,443 $ 16,054 $ 12,976 |
Stockholders_ Equity
Stockholders’ Equity | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Stockholders’ Equity | Stockholders’ Equity Common Stock As of December 31, 2019, 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 34,525,386 shares of Class A common stock and 32,942,636 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. |
Basic and Diluted Loss per Comm
Basic and Diluted Loss per Common Share | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 2018 2017 Numerator: Net loss $ (50,714) $ (49,451) $ (31,007) Accretion of dividends on convertible preferred stock — — 357 Net loss attributable to common stockholders $ (50,714) $ (49,451) $ (31,364) Denominator Weighted average common shares outstanding, basic and diluted 65,479,327 62,140,684 49,529,833 Net loss per share attributable to common stockholders, basic and diluted $ (0.77) $ (0.80) $ (0.63) 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, 2019 2018 2017 Stock options 4,458,611 5,021,068 7,010,887 Restricted stock units 1,022,835 1,175,049 731,975 |
Leases and Other Commitments
Leases and Other Commitments | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases and Other Commitments | Leases and Other Commitments We have operating and finance leases for corporate offices, office furniture and fixtures and computer hardware. Our leases have remaining lease terms of 1 year to 12 years, some of which include options to extend the leases for up to 5 years. In April 2018, we entered into a lease agreement with respect to 176,222 square feet of office space in Tysons, Virginia for a new corporate headquarters. The term of the lease was 150 months. We took initial possession of the first phase of the new headquarters in October 2018 and began to recognize rent expense. We took possession of 28,805 square feet of adjacent office space in February 2019. We expect to start making recurring rental payments under the lease in the third quarter of 2020. The following table sets forth the components of lease expense for the year ended December 31, 2019 (in thousands): Year Ended December 31, 2019 Operating lease cost $ 9,733 Finance lease costs: Amortization of right-of-use assets 700 Interest on lease liabilities 108 Short-term lease cost 462 Variable lease cost 409 Total $ 11,412 Supplemental balance sheet information related to leases as of December 31, 2019 was as follows (in thousands, except for lease term and discount rate): As of December 31, 2019 Operating Leases Operating ROU assets $ 24,205 Operating lease liabilities, current $ 3,836 Operating lease liabilities, net of current portion 44,416 Total operating lease liabilities $ 48,252 Finance Leases Property and equipment, at cost $ 4,475 Accumulated depreciation (703) Property and equipment, net $ 3,772 Finance lease liabilities, current $ 1,447 Finance lease liabilities, net of current portion 2,375 Total finance lease liabilities $ 3,822 Weighted Average Remaining Lease Term Operating leases 11.4 Finance leases 2.5 Weighted Average Discount Rate Operating leases 9.8 % Finance leases 5.5 % Supplemental cash flow information related to leases for the year ended December 31, 2019 was as follows (in thousands): Year Ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows for operating leases $ 6,413 Operating cash outflows for finance leases 108 Financing cash outflows for finance leases 653 ROU assets obtained in exchange for lease obligations: Operating leases 523 Finance leases 4,475 The maturities of lease liabilities under non-cancelable operating and finance leases as of December 31, 2019 was as follows (in thousands): Operating Leases Finance Leases 2020 $ 3,781 $ 1,620 2021 6,896 1,620 2022 7,007 859 2023 7,050 — 2024 7,408 — Thereafter 57,884 — Total lease payments 90,026 4,099 Less: imputed interest (41,774) (277) Total $ 48,252 $ 3,822 A summary of our future minimum lease commitments and other commitments by year as of December 31, 2018 was 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 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 At each of December 31, 2019 and 2018, we had outstanding letters of credit totaling $10.5 million in connection with securing our leased office space. All letters of credit are secured by our borrowing arrangement as described in Note 5. |
Leases and Other Commitments | Leases and Other Commitments We have operating and finance leases for corporate offices, office furniture and fixtures and computer hardware. Our leases have remaining lease terms of 1 year to 12 years, some of which include options to extend the leases for up to 5 years. In April 2018, we entered into a lease agreement with respect to 176,222 square feet of office space in Tysons, Virginia for a new corporate headquarters. The term of the lease was 150 months. We took initial possession of the first phase of the new headquarters in October 2018 and began to recognize rent expense. We took possession of 28,805 square feet of adjacent office space in February 2019. We expect to start making recurring rental payments under the lease in the third quarter of 2020. The following table sets forth the components of lease expense for the year ended December 31, 2019 (in thousands): Year Ended December 31, 2019 Operating lease cost $ 9,733 Finance lease costs: Amortization of right-of-use assets 700 Interest on lease liabilities 108 Short-term lease cost 462 Variable lease cost 409 Total $ 11,412 Supplemental balance sheet information related to leases as of December 31, 2019 was as follows (in thousands, except for lease term and discount rate): As of December 31, 2019 Operating Leases Operating ROU assets $ 24,205 Operating lease liabilities, current $ 3,836 Operating lease liabilities, net of current portion 44,416 Total operating lease liabilities $ 48,252 Finance Leases Property and equipment, at cost $ 4,475 Accumulated depreciation (703) Property and equipment, net $ 3,772 Finance lease liabilities, current $ 1,447 Finance lease liabilities, net of current portion 2,375 Total finance lease liabilities $ 3,822 Weighted Average Remaining Lease Term Operating leases 11.4 Finance leases 2.5 Weighted Average Discount Rate Operating leases 9.8 % Finance leases 5.5 % Supplemental cash flow information related to leases for the year ended December 31, 2019 was as follows (in thousands): Year Ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows for operating leases $ 6,413 Operating cash outflows for finance leases 108 Financing cash outflows for finance leases 653 ROU assets obtained in exchange for lease obligations: Operating leases 523 Finance leases 4,475 The maturities of lease liabilities under non-cancelable operating and finance leases as of December 31, 2019 was as follows (in thousands): Operating Leases Finance Leases 2020 $ 3,781 $ 1,620 2021 6,896 1,620 2022 7,007 859 2023 7,050 — 2024 7,408 — Thereafter 57,884 — Total lease payments 90,026 4,099 Less: imputed interest (41,774) (277) Total $ 48,252 $ 3,822 A summary of our future minimum lease commitments and other commitments by year as of December 31, 2018 was 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 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 At each of December 31, 2019 and 2018, we had outstanding letters of credit totaling $10.5 million in connection with securing our leased office space. All letters of credit are secured by our borrowing arrangement as described in Note 5. |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies Legal From time to time, we are subject to legal, regulatory and other proceedings and claims that arise in the ordinary course of business. There are no issues or resolutions of any matters that are expected to have a material adverse impact on our consolidated financial statements. Contractual Warranty and Indemnification Obligations We provide limited product warranties. Historically, any payments made under these provisions have been immaterial. We also agree to standard indemnification provisions in the ordinary course of business. Pursuant to these provisions, we agree to indemnify, hold harmless and reimburse the indemnified party for losses suffered or incurred by the indemnified party, generally our customers, in connection with certain intellectual property infringement claims by any third party arising from the use of our products or services in accordance with the agreement. The term of our contractual indemnity provisions often survives termination or expiration of the applicable agreement. We carry insurance that covers certain third-party claims relating to our services and limits our exposure. We have never incurred costs to defend lawsuits or settle claims related to these indemnification provisions. |
Segment and Geographic Informat
Segment and Geographic Information | 12 Months Ended |
Dec. 31, 2019 | |
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): 2019 2018 2017 Domestic $ 176,187 $ 161,716 $ 128,997 International 84,165 65,027 47,740 Total $ 260,352 $ 226,743 $ 176,737 With respect to geographic information, revenue is attributed to respective geographies based on the contracting address of the customer. Revenue from external customers attributed to the United Kingdom were 12.2% of our total revenue for the year ended December 31, 2019. There were no individual foreign countries from which more than 10% of our total revenue was attributable for the years ended December 31, 2018 and 2017. Substantially all of our long-lived assets were held in the United States as of December 31, 2019 and December 31, 2018. |
Retirement Plans
Retirement Plans | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019, 2018 and 2017, we incurred $5.5 million, $4.7 million and $3.3 million, respectively, in contribution expense related to the employer matching contributions. |
Selected Quarterly Information
Selected Quarterly Information (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
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 2019 and 2018. 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, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 (in thousands) (unaudited) Consolidated Statements of Operations Data: Revenue: (1) Subscriptions $ 42,108 $ 37,774 $ 36,860 $ 34,557 $ 35,108 $ 30,905 $ 33,047 $ 26,952 Professional services 26,510 28,381 28,415 25,747 25,108 24,043 26,836 24,744 Total revenue 68,618 66,155 65,275 60,304 60,216 54,948 59,883 51,696 Cost of revenue: Subscriptions 4,993 4,484 4,036 3,585 3,284 3,261 2,824 2,628 Professional services 17,780 19,467 19,015 20,481 18,926 16,831 18,750 18,421 Total cost of revenue 22,773 23,951 23,051 24,066 22,210 20,092 21,574 21,049 Gross profit 45,845 42,204 42,224 36,238 38,006 34,856 38,309 30,647 Operating expenses: Sales and marketing 31,254 27,603 29,992 28,591 30,177 25,467 27,384 22,964 Research and development 15,625 15,697 12,765 13,956 12,332 11,737 10,785 9,870 General and administrative 12,028 11,191 9,261 9,016 8,799 12,537 8,425 8,060 Total operating expenses 58,907 54,491 52,018 51,563 51,308 49,741 46,594 40,894 Operating loss (13,062) (12,287) (9,794) (15,325) (13,302) (14,885) (8,285) (10,247) Other (income) expense: Other (income) expense, net (2,822) 2,262 (79) (302) 510 110 2,593 (918) Interest expense 131 96 69 71 64 67 54 13 Total other (income) expense (2,691) 2,358 (10) (231) 574 177 2,647 (905) Loss before income taxes (10,371) (14,645) (9,784) (15,094) (13,876) (15,062) (10,932) (9,342) Income tax expense (benefit) 426 5 267 122 27 (34) 35 211 Net loss (2) $ (10,797) $ (14,650) $ (10,051) $ (15,216) $ (13,903) $ (15,028) $ (10,967) $ (9,553) (1) The revenue for the three months ended March 31, 2019, June 30, 2019 and September 30, 2019 have been adjusted from previously reported revenue as a result of the adoption of ASC 606. Refer to the tables below for a reconciliation of 2019 quarterly revenue. (2) In the third quarter of 2018, we recorded $4.5 million of cumulative stock-based compensation expense upon the vesting of an option previously granted to our Chief Executive Officer in 2016. See Note 7 for further discussion of |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsIn January 2020, we acquired a developer of a robotic process automation platform for $7.0 million. The acquisition will be accounted for under the acquisition method of accounting with the operations of the newly acquired entity included in our operating results from the date of acquisition. The Company entered into the Lease Second Amendment, effective as of January 1, 2020, which modified the Lease for the Company’s headquarters in Tysons, Virginia. Under the Lease Second Amendment, the Company exercised an option to expand its lease to the Fourth Floor, adding approximately 34,158 square feet to the premises. The Company will commence occupancy of the Fourth Floor on the sooner of the completion of certain improvements to the Fourth Floor and October 14, 2020. The monthly base rent for the Fourth Floor will be $87,388 for the first 27 months of the lease term, subject to periodic increases thereafter. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
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 and stock-based compensation. |
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. |
Revenue Recognition and Cost of Revenue | Revenue Recognition We generate subscriptions revenue primarily through the sale of SaaS subscriptions bundled with maintenance and support and hosting services and term license subscriptions bundled with maintenance and support. We generate professional services revenue from fees for our consulting services, including application development and deployment assistance and training related to our platform. Because we were an “emerging growth company” until December 31, 2019, the Jumpstart Our Business Startups Act (the “JOBS Act”) allowed us to delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. We elected to use this extended transition period that allowed us not to adopt Financial Accounting Standards Board, or FASB, Accounting Standards Updated, or ASU, 2014-09, Revenue from Contracts with Customers (Topic 606) ("ASC 606") in our Quarterly Reports on Form 10-Q during 2019. The 2019 selected quarterly information in Note 14 have been recast in accordance with ASC 606. We adopted ASC 606 on January 1, 2019 using the modified retrospective method. Under this method of adoption, we recognized the cumulative effect of initially applying the new revenue standard as an adjustment to the opening balance of accumulated deficit. Comparative periods were not adjusted. The following table summarizes revenue from contracts with customers for the year ended December 31, 2019 (in thousands): Year Ended December 31, 2019 SaaS subscriptions $ 95,028 Term license subscriptions 40,428 Maintenance and support 15,843 Professional services 109,053 Total revenue $ 260,352 Performance Obligations and Timing of Revenue Recognition We primarily sell products and services that fall into the categories discussed below. Each category contains one or more performance obligations that are either (1) capable of being distinct (i.e. the customer can benefit from the product or service on its own or together with readily available resources, including those purchased separately from us) and distinct within the context of the contract (i.e. separately identified from other promises in the contract) or (2) a series of distinct products or services that are substantially the same and have the same pattern of transfer to the customer. Our term license subscriptions are delivered at a point in time. Our SaaS subscriptions, maintenance and support and professional services are delivered over time. Subscriptions Revenue Subscriptions revenue is primarily related to (1) SaaS subscriptions bundled with maintenance and support and hosting services and (2) term license subscriptions bundled with maintenance and support. 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 an annual, quarterly or monthly basis. In certain instances, our customers have paid their entire contract up front. SaaS Subscriptions We generate cloud-based subscription revenue primarily from the sales of subscriptions to access our cloud offering, together with related support services to our customers. We perform all required maintenance and support for our cloud offering and we do not separately charge customers for hosting costs. Revenue is recognized on a ratable basis over the contract term beginning on the date the service is made available to the customer. Our cloud-based subscription contracts generally have a term of one three Term License Subscriptions Our term license subscription revenue is derived from customers with on-premises installations of our platform pursuant to contracts that were historically one three Maintenance and Support Maintenance and support subscriptions include both technical support and when-and-if-available software upgrades, which are treated as a single performance obligation as they are considered a series of distinct services that are substantially the same and have the same duration and measure of progress. Revenue from maintenance and support is recognized ratably over the contract period, which is the period over which the customer has continuous access to maintenance and support. Professional Services Our professional services revenue is comprised of fees for consulting services, including application development and deployment assistance and training services related to our platform. Our professional services are considered distinct performance obligations when sold stand alone or with other products. Consulting Services We sell consulting services to assist customers plan and execute deployment of our software. Customers are not required to use consulting services to fully benefit from the software. Consulting services are regularly sold on a standalone basis and either (1) a fixed-fee arrangement or (2) a time and materials basis. Consulting contracts are each considered separate performance obligations because they do not integrate with each other or with other products and services to deliver a combined output to the customer, do not modify or customize (or are not modified or customized by) each other or other products and services, and do not affect the customer's ability to use the other consulting offerings or other products and services. Revenue under consulting contracts is recognized over time as services are delivered. For time and materials-based consulting contracts, we have elected the practical expedient of recognizing revenue upon invoicing since the invoiced amount corresponds directly to the value of our service to-date. Training Services We sell various training services to our customers. Training services are sold in the form of prepaid training credits that are redeemed based on a fixed rate per course. Training revenue is recognized when the associated training services are delivered. Significant Judgments and Estimates Determine the Transaction Price The transaction price includes both fixed and variable consideration. Variable consideration is included in the transaction price to the extent it is probable that a significant reversal will not occur. The amount of variable consideration excluded from the transaction price for the year ended December 31, 2019 was insignificant. Our estimates of variable consideration are also subject to subsequent true-up adjustments and may result in changes to its transaction prices but such true-up adjustments are not expected to be material. Allocating the Transaction Price Based on Standalone Selling Prices We allocate the transaction price to each performance obligation in a contract based on its relative SSP. The SSP is the observable price at which we sell the product or service separately. In the absence of observable pricing, we estimate SSP using the residual approach. We establish SSP as follows: 1. SaaS subscriptions - Given the highly variable selling price of our SaaS subscriptions, we establish the SSP of our SaaS subscriptions using a residual approach after first determining the SSP of consulting and training services. We have concluded that the residual approach to estimate SSP of our SaaS subscriptions is an appropriate allocation of the transaction price. 2. Term license subscriptions - Given the highly variable selling price of our term license subscriptions, we have established SSP of term license subscriptions using a residual approach after first determining the SSP of maintenance and support. Maintenance and support is sold on a standalone basis, with renewals of our legacy perpetual software licenses, within a narrow range of the net license fee and because an economic relationship exists between the license and maintenance and support, we have concluded that the residual approach to estimate SSP of term license subscriptions is an appropriate allocation of the transaction price. 3. Maintenance and support - We establish SSP of maintenance and support as a percentage of the stated net subscription fee based on observable pricing of maintenance and support renewals from our legacy perpetual software licenses. 4. Consulting services and training services - SSP of consulting services and training services is established based on the observable pricing of standalone sales within each geographic region where the services are sold. Contract Balances Timing may differ between the satisfaction of performance obligations and the invoicing and collection of amounts related to our contracts with customers. Contract assets primarily relate to unbilled amounts for contracts with customers for which the amount of revenue recognized exceeds the amount billed to the customer. Contract assets are transferred to accounts receivable when the right to invoice becomes unconditional. As of January 1, 2019 and December 31, 2019, contract assets of $25.8 million and $22.8 million, respectively, are included in prepaid expenses and other current assets in our consolidated balance sheet. Contract liabilities consists of deferred revenue and include payments received in advance of the satisfaction of performance obligations. For the year ended December 31, 2019, we recognized $66.6 million of revenue that was included in deferred revenue as of January 1, 2019. Deferred revenue that will be recognized during the succeeding 12-month period is recorded as current, and the remaining deferred revenue is recorded as non-current. Transaction Price Allocated to the Remaining Performance Obligations As of December 31, 2019, we had an aggregate transaction price of $175.8 million, allocated to unsatisfied performance obligations related to SaaS subscriptions, term license subscriptions and maintenance and support. We expect to recognize $153.7 million as revenue over the next 24 months with the remaining amount recognized thereafter. Transition Disclosures For periods prior to January 1, 2019, we recognized revenue in accordance with FASB ASC Topic 605, Revenue Recognition ("ASC 605"). In accordance with the modified retrospective method transition requirements, we will present the financial statement line items impacted and adjusted to compare to presentation under ASC 605 for the annual periods during the first year of adoption of ASC 606. Consolidated Balance Sheets - Reconciliation of the Impacts from the Adoption of the New Revenue Recognition Standard The following table summarizes the impacts from the adoption of the new revenue recognition standard on our consolidated balance sheet as of December 31, 2019 (in thousands): As of December 31, 2019 2018 As Reported (ASC 606) Impacts from Adoption Without Adoption (ASC 605) As Reported (ASC 605) Assets Current assets Cash and cash equivalents $ 159,755 $ — $ 159,755 $ 94,930 Accounts receivable, net of allowance 70,408 — 70,408 79,383 Deferred commissions, current 14,543 (6,061) 20,604 14,020 Prepaid expenses and other current assets 32,955 16,343 16,612 21,293 Total current assets 277,661 10,282 267,379 209,626 Property and equipment, net 39,554 — 39,554 7,539 Operating right-of-use asset 24,205 — 24,205 — Deferred commissions, net of current portion 28,979 15,780 13,199 15,088 Deferred tax assets 494 — 494 326 Other assets 592 — 592 601 Total assets 371,485 26,062 345,423 233,180 Liabilities and Stockholders’ Equity Current liabilities Accounts payable $ 5,222 $ — $ 5,222 $ 9,249 Accrued expenses 7,488 — 7,488 7,464 Accrued compensation and related benefits 10,691 — 10,691 13,796 Deferred revenue, current 82,201 (28,985) 111,186 95,523 Operating lease liability, current 3,836 — 3,836 — Finance lease liability, current 1,447 — 1,447 — Other current liabilities 1,395 — 1,395 2,369 Total current liabilities 112,280 (28,985) 141,265 128,401 Operating lease liability, net of current portion 44,416 — 44,416 — Finance lease liability, net of current portion 2,375 — 2,375 — Deferred revenue, net of current portion 7,139 (4,891) 12,030 16,145 Deferred tax liabilities 38 — 38 42 Deferred rent, net of current portion — — — 15,400 Total liabilities 166,248 (33,876) 200,124 159,988 Stockholders’ equity Class A common stock 3 — 3 3 Class B common stock 3 — 3 3 Additional paid-in capital 340,929 — 340,929 218,284 Accumulated other comprehensive (loss) income (285) 320 (605) 542 Accumulated deficit (135,413) 59,618 (195,031) (145,640) Total stockholders’ equity 205,237 59,938 145,299 73,192 Total liabilities and stockholders’ equity $ 371,485 26,062 $ 345,423 $ 233,180 The following summarizes the significant changes on the consolidated balance sheet as of December 31, 2019 as a result of the adoption of ASC 606 on January 1, 2019 compared to if we had continued to recognize revenue under ASC 605: • Total deferred commissions increased $9.7 million due to the increase in the amortization period of costs to obtain a contract for a new customer or up-sell from the contract term to the five year estimated economic life. • Prepaid expenses and other current assets increased $16.3 million and total deferred revenue decreased $33.9 million due to the change in timing of when we recognize revenue under ASC 606. Consolidated Statements of Operations - Reconciliation of the Impacts from the Adoption of the New Revenue Recognition Standard The following table summarizes the impacts from the adoption of the new revenue recognition standard on our consolidated statement of operations for the year ended December 31, 2019 (in thousands): Year Ended December 31, 2019 2018 As Reported (ASC 606) Impacts from Adoption Without Adoption (ASC 605) As Reported (ASC 605) Revenue: Subscriptions $ 151,299 $ (8,786) $ 160,085 $ 126,012 Professional services 109,053 2,791 106,262 100,731 Total revenue 260,352 (5,995) 266,347 226,743 Cost of revenue: Subscriptions 17,098 — 17,098 11,997 Professional services 76,743 — 76,743 72,928 Total cost of revenue 93,841 — 93,841 84,925 Gross profit 166,511 (5,995) 172,506 141,818 Operating expenses: Sales and marketing 117,440 (4,625) 122,065 105,992 Research and development 58,043 — 58,043 44,724 General and administrative 41,496 — 41,496 37,821 Total operating expenses 216,979 (4,625) 221,604 188,537 Operating loss (50,468) (1,370) (49,098) (46,719) Other (income) expense: Other (income) expense, net (941) (47) (894) 2,295 Interest expense 367 — 367 198 Total other (income) expense (574) (47) (527) 2,493 Loss before income taxes (49,894) (1,323) (48,571) (49,212) Income tax expense 820 — 820 239 Net loss $ (50,714) $ (1,323) $ (49,391) $ (49,451) Net loss per share attributable to common stockholders: Basic and diluted $ (0.77) $ (0.02) $ (0.75) $ (0.80) The following summarizes the significant changes on the consolidated statement of operations for the year ended December 31, 2019 as a result of the adoption of ASC 606 on January 1, 2019 compared to if we had continued to recognize revenue under ASC 605: • Subscriptions revenue decreased $8.8 million for the year ended December 31, 2019 under ASC 606 primarily due to the change in timing of when we recognize term license subscription revenue. Additionally, a significant amount of our unrecognized term license subscriptions revenue was recorded as an adjustment to accumulated deficit under ASC 606. Under ASC 606, our term license subscription revenue is recognized at the time of delivery, as opposed to ratably over the contract term under ASC 605. • Professional services revenue increased $2.8 million for the year ended December 31, 2019 under ASC 606 primarily due to the fact that our professional services are sold together with SaaS or term licenses. Under ASC 606, the professional services represent distinct performance obligations and therefore are recognized as services are performed. Under ASC 605, professional services sold together with term licenses were recognized ratably over the contract period of maintenance and support. • Sales and marketing expense decreased $4.6 million for the year ended December 31, 2019 under ASC 606 primarily due to the increase in the period over which we amortize our deferred sales commissions. Consolidated Statements of Comprehensive Loss - Reconciliation of the Impacts from the Adoption of the New Revenue Recognition Standard The following table summarizes the impacts from the adoption of the new revenue recognition standard on our consolidated statement of comprehensive loss for the year ended December 31, 2019 (in thousands): Year Ended December 31, 2019 2018 As Reported (ASC 606) Impacts from Adoption Without Adoption (ASC 605) As Reported (ASC 605) Net loss $ (50,714) $ (1,323) $ (49,391) $ (49,451) Comprehensive loss, net of income taxes: Foreign currency translation adjustment (827) 115 (942) 103 Total other comprehensive loss, net of income taxes $ (51,541) $ (1,208) $ (50,333) $ (49,348) Consolidated Statements of Cash Flows - Reconciliation of the Impacts from the Adoption of the New Revenue Recognition Standard The following table summarizes the impacts from the adoption of the new revenue recognition standard on our consolidated statement of cash flows for the year ended December 31, 2019 (in thousands): Year Ended December 31, 2019 2018 As Reported (ASC 606) Impacts from Adoption Without Adoption (ASC 605) As Reported (ASC 605) Net loss $ (50,714) $ (1,323) $ (49,391) $ (49,451) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 4,742 — 4,742 2,021 Loss (gain) on disposal of equipment 146 — 146 (4) Bad debt expense 99 — 99 211 Deferred income taxes (334) — (334) (218) Stock-based compensation 16,443 — 16,443 16,054 Changes in assets and liabilities: Accounts receivable 7,432 — 7,432 (23,332) Prepaid expenses and other assets 8,972 4,313 4,659 (1,025) Deferred commissions (9,319) (4,625) (4,694) (7,615) Accounts payable and accrued expenses (4,039) — (4,039) 7,461 Accrued compensation and related benefits (3,072) — (3,072) (3) Other current liabilities 1,318 — 1,318 1,823 Deferred revenue 12,573 1,717 10,856 23,023 Operating lease liabilities 6,827 — 6,827 — Deferred rent, non-current — — — (266) Net cash used in operating activities (8,926) 82 (9,008) (31,321) Cash flows from investing activities: Purchases of property and equipment (32,421) — (32,421) (7,014) Proceeds from sale of equipment — — — 4 Net cash used in investing activities (32,421) — (32,421) (7,010) Cash flows from financing activities: Proceeds from public offering, net of underwriting discounts 101,653 — 101,653 58,258 Payment of costs related to public offerings (350) — (350) (429) Proceeds from exercise of common stock options 4,899 — 4,899 3,133 Principal payments on finance lease obligations (653) — (653) — Net cash provided by financing activities 105,549 — 105,549 60,962 Effect of foreign exchange rate changes on cash and cash equivalents 623 (82) 705 (1,459) Net increase in cash and cash equivalents 64,825 — 64,825 21,172 Cash and cash equivalents, beginning of period 94,930 — 94,930 73,758 Cash and cash equivalents, end of period $ 159,755 — $ 159,755 $ 94,930 Legacy Revenue Accounting Policy For periods prior to January 1, 2019, revenue was recognized in accordance with ASC 605. Under ASC 605, 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. Subscriptions Revenue Subscriptions revenue is primarily related to (1) SaaS subscriptions bundled with maintenance and support and hosting services and (2) term license subscriptions bundled with maintenance and support. We generally charge subscription fees on a per-user basis, or alternatively, 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, our customers have paid 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 three Term License Subscriptions Our term license subscription revenue is derived from customers with on-premises installations of our platform pursuant to contracts that were historically one three 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 sold in the form of prepaid training credits that are redeemed based on a fixed rate per course. We defer recognition of revenue from work performed on pending contract modifications until the period in which the modifications are accepted and funding is approved by the customer. Costs of work performed on pending contract modifications are expensed as incurred. Multiple Element Arrangements Our multiple element arrangements are from SaaS subscriptions and term license subscriptions that are generally sold in combination with maintenance and support service and frequently with professional services. SaaS Subscriptions For multiple element arrangements involving SaaS subscriptions that include professional services in addition to the subscription to our platform, we evaluate each element to determine whether it represents a separate unit of accounting. Because there are third-party vendors who routinely sell and provide the same professional services to our customers, our professional services are deemed to have standalone value apart from the SaaS subscription. Additionally, we offer both SaaS subscriptions and professional services on a standalone basis. Professional services revenue is therefore accounted for separately from subscription fees and recognized as the professional services are performed. We allocate revenue to the elements based on the selling price hierarchy using vendor-specific objective evidence ("VSOE") of selling price, third-party evidence ("TPE") of selling price, or if neither exists, best estimated selling price ("BESP"). In cases where we do not have VSOE or TPE of the elements of our arrangements, we use BESP to allocate revenue. We determine BESP for a service by considering multiple factors including, but not limited to, evaluating the weighted average of actual sales prices and other factors such as gross margin objectives, pricing practices and growth strategy. Pricing practices taken into consideration include historic contractually stated prices, volume discounts where applicable and our price lists. While we believe we can make reliable estimates regarding these matters, these estimates are inherently subjective. Once the revenue is allocated to these elements, revenue is recognized as such services are provided. Term License Subscriptions For multiple element arrangements involving term license subscriptions, maintenance and support and professional services, we do not have VSOE of fair value for the maintenance and support. Our term license subscriptions are generally not sold on a standalone basis, and therefore, we have not established VSOE of fair value for the subscriptions. Consequently, for our bundled arrangements that include certain professional services, there are two undelivered elements for which VSOE of fair value has not been established and, therefore, we utilize the combined services approach and defer all revenue until the software has been delivered and the provision of all services has commenced. We then recognize the entire fee from the arrangement ratably over the remaining period of the arrangement, assuming all other software revenue recognition criteria have been met. Cost of Revenue Subscriptions Cost of subscriptions 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. Professional Services 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, as well as the costs of billable expenses, such as travel and lodging. The unpredictability of the timing of entering into significant professional services agreements sold on a standalone basis may cause significant fluctuations in our quarterly financial results. |
Concentration of Credit and Customer Risk | Concentration of Credit and Customer Risk Our financial instruments that are exposed to concentration of credit and customer risk consist primarily of cash and cash equivalents and trade accounts receivable. Deposits held with banks may exceed the amount of insurance, if any, 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 and Non-Trade Receivables | 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, 2019 2018 2017 Balance as of January 1 $ 600 $ 400 $ 400 Additions 99 211 62 Less write-offs, net of recoveries (99) (11) (62) Balance as of December 31 $ 600 $ 600 $ 400 Non-trade Receivables |
Assets Recognized from the Costs to Obtain a Contract with a Customer | Assets Recognized from the Costs to Obtain a Contract with a Customer We capitalize the incremental costs of obtaining a contract with a customer, including, sales commissions paid to our direct sales force. These costs are recorded as deferred commissions in the consolidated balance sheets. Costs to obtain a contract for a new customer or up-sell are amortized on a straight-line basis over an estimated economic life of five years as sales commissions on initial sales are not commensurate with sales commissions on contract renewals. We determined the estimated economic life based on both qualitative and quantitative factors, such as expected renewals, product life cycles, contractual terms and customer attrition. We periodically review the carrying amount of deferred contract acquisition costs to determine whether events or changes in circumstances have occurred that could impact the estimated economic life. Commissions paid relating to contract renewals are deferred and amortized on a straight-line basis over the related renewal period. We also capitalize the incremental fringe benefits associated with commission expenses paid to our direct sales force. Costs to obtain a contract for professional services arrangements are expensed as incurred in accordance with the practical expedient as the contractual period of our professional services arrangements are one year or less. |
Property 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. |
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, 2019 and December 31, 2018 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. |
Leases | Leases Effective January 1, 2019, we adopted FASB ASU 2016-02 Leases (Topic 842), as amended ("ASC 842"). In accordance with ASC 842, at the inception of an arrangement, we determine whether the arrangement is or contains a lease based on the unique facts and circumstances present and the classification of the lease. Operating leases with a term greater than one year are recognized on the balance sheet as right-of-use ("ROU") assets, lease liabilities and, if applicable, long-term lease liabilities. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. We have elected not to recognize on the balance sheet leases with a term of one year or less. For contracts with lease and non-lease components, we have elected not to allocate the contract consideration and to account for the lease and non-lease components as a single lease component. Finance leases are included in property and equipment, net, finance lease liability, current and finance lease liability, net of current portion in our consolidated balance sheets. Lease liabilities and their corresponding ROU assets are recorded based on the present value of lease payments over the expected lease term. The implicit rate within most of our leases are generally not determinable and therefore we use the incremental borrowing rate at the lease commencement date to determine the present value of lease payments. The determination of our incremental borrowing rate requires judgment and is estimated for each lease based on the rate we would have to pay for a collateralized loan with the same term and payments as the lease. We consider various factors, including our level of collateralization, estimated credit rating and currency of the lease. The operating lease ROU also includes any lease prepayments, offset by lease incentives. Certain of our leases include options to extend or terminate the lease. An option to extend the lease is considered in connection with determining the ROU asset and lease liability when it is reasonably certain we will exercise that option. An option to terminate is considered unless it is reasonably certain we will not exercise the option. For certain equipment leases, we apply a portfolio approach to effectively account for the operating lease ROU assets and liabilities. Expense for operating leases is recognized on a straight-line basis over the lease term as an operating expense while the expense for finance leases is recognized as depreciation expense and interest expense. We have lease agreements which require payments for lease and non-lease components (i.e. common area maintenance) that are accounted for as a single lease component. Variable lease payment amounts that cannot be determined at the commencement of the lease, such as maintenance costs based on future obligations, are not included in the ROU assets or lease liabilities. These are expensed as incurred and recorded as variable lease expense. For periods prior to ASC 842, we recorded rent expense on a straight-line basis over the term of the related lease. The difference between the straight-line rent expense and the payments made in accordance with the operating lease agreements were recognized as a deferred rent liability on the accompanying consolidated balance sheets. |
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 containing only a service condition using the Black-Scholes Option Pricing Model. The fair value of restricted stock units 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 |
Basic and Diluted Loss per Common Share | Basic and Diluted Loss per Common Share We compute net loss per common share using the two-class method required for multiple classes of common stock and participating securities. The rights, including the liquidation and dividend rights, of the Class A common stock and Class B common stock are substantially identical, other than voting and conversion rights. Accordingly, the Class A common stock and Class B common stock share equally in our net losses. Basic net loss per common share is computed by dividing net loss by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per common share is computed by dividing net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period increased by common shares that could be issued upon conversion or exercise of other outstanding securities to the extent those additional common shares would be dilutive. The dilutive effect of potentially dilutive securities is reflected in diluted net loss per share by application of the treasury stock method. |
Income Taxes | 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. |
Segment Reporting | Segment ReportingOperating 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 | 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 |
Research and Development | Research and DevelopmentResearch 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 | AdvertisingWe expense advertising costs as they are incurred. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Adopted In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”), which aims to reduce the existing diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. ASU 2016-15 will require adoption on a retrospective basis unless it is impracticable to apply, in which case we would be required to apply the amendments prospectively as of the earliest date practicable. ASU 2016-15 is effective for fiscal years beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2019. The adoption of ASU 2016-15 did not have an impact on our condensed consolidated financial statements for the year ended December 31, 2019. In February 2018, the FASB issued ASU No. 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income ("ASU 2018-02"), which provides entities the option to reclassify to retained earnings tax effects related to items in accumulated other comprehensive income ("OCI") that the FASB refers to as having been stranded in accumulated OCI as a result of tax reform. ASU 2018-02 is effective for fiscal years beginning after December 15, 2018. The adoption of ASU 2018-02 did not have an impact on our condensed consolidated financial statements for the year ended December 31, 2019. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) , which provides new guidance for revenue recognition. The new revenue standard 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. ASC 606 also requires improved disclosures to help users of financial statements better understand the nature, amount, timing, and uncertainty of revenue that is recognized. We adopted ASC 606 on January 1, 2019 using the modified retrospective method. Under this method of adoption, we applied the new revenue standard only to contracts that were not completed prior January 1, 2019. Upon adoption, we recorded an adjustment of $55.8 million to our accumulated deficit. The adjustment was offset by a $35.4 million reduction to deferred revenue and the addition of a $20.4 million contract asset, primarily due to our on-premises term license subscriptions. ASC 606 materially impacts the timing of revenue recognition related to our term license subscriptions. Prior to our adoption of ASC 606, we have historically concluded that we did not have VSOE of fair value of the undelivered services related to on-premises term license contracts, and, accordingly, have recognized on-premises term license contracts and related services ratably over the contract term. Under the new revenue standard, the requirement to have VSOE for undelivered services is eliminated. Therefore, revenue allocable to the license portion of the contract is recognized upon delivery of the software. Maintenance and support sold with our term license subscriptions is distinct from the term license subscription and the revenue attributable to the maintenance and support continue to be recognized ratably over the contract term. Under ASC 606, we allocate the transaction to performance obligations based on SSP, which impacts the timing of revenue recognition depending on when each performance obligation is recognized. These changes to the timing of revenue recognition also affect our deferred revenue balances. In addition, ASC 606 requires the capitalization of certain incremental costs of obtaining a contract, which impacts the period in which we record our commission expense. Prior to the adoption of ASC 606, we deferred the direct and incremental commission costs to obtain a contract with a customer and amortized those costs over the term of the related customer contract consistent with the related revenue. Under the new revenue standard, the direct and incremental costs to obtain contracts with customers, include sales commissions, are deferred and recognized over a period of benefit that we have determined to be five years. In addition, we capitalize the incremental fringe benefits associated with commission expenses paid to our direct sales force. Upon adoption of ASC 606, we reduced our accumulated deficit and increased our asset for deferred commissions by $5.1 million. In February 2016, the FASB issued ASU No. 2016-2, Leases (Topic 842) , which requires companies to recognize on the balance sheet the assets and liabilities for the rights and obligations created by the leased asset. The standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. We adopted this standard effective January 1, 2019 using the modified retrospective approach for all leases entered into before the effective date. We also elected to implement the new standard at the adoption date with a cumulative-effect adjustment, if any, recognized to the opening balance sheet of accumulated deficit in the period of adoption. For comparability purposes, we will continue to comply with the previous disclosure requirements in accordance with the existing lease guidance for all periods presented in the year of adoption. We elected the package of practical expedients as permitted under the transition guidance, which allowed us: (1) to carry forward the historical lease classification; (2) not to reassess whether expired or existing contracts are or contain leases; and (3) not to reassess the treatment of initial direct costs for existing leases. In addition, we elected an accounting policy to not recognize leases with an initial term of one year or less on the balance sheet. We did not elect the hindsight practical expedient to determine the lease term for our existing leases and assessing impairment of the ROU assets. Upon the adoption of this standard on January 1, 2019, we recognized a total lease liability of $51.4 million, representing the present value of the minimum rental payments remaining as of the adoption date and ROU assets of $33.8 million. We did not have finance leases (formerly referred to as capital leases prior to the adoption of ASC 842), therefore there was no change in accounting treatment required. Not Yet Adopted 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 do not expect the standard to have a material impact on our consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40), Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract , which aligns the requirements for capitalizing implementation costs in cloud computing arrangements with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Entities can choose |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Revenue by Services | The following table summarizes revenue from contracts with customers for the year ended December 31, 2019 (in thousands): Year Ended December 31, 2019 SaaS subscriptions $ 95,028 Term license subscriptions 40,428 Maintenance and support 15,843 Professional services 109,053 Total revenue $ 260,352 Quarter Ended March 31, 2019 As Reported (ASC 606) Impacts from Adoption Without Adoption (ASC 605) (in thousands) (unaudited) SaaS subscriptions $ 21,278 $ 667 $ 20,611 Term license subscriptions 9,557 (3,417) 12,974 Maintenance and support 3,722 2,398 1,324 Professional services 25,747 1,077 24,670 Total revenue $ 60,304 $ 725 $ 59,579 Quarter Ended June 30, 2019 As Reported (ASC 606) Impacts from Adoption Without Adoption (ASC 605) (in thousands) (unaudited) SaaS subscriptions $ 22,796 $ 782 $ 22,014 Term license subscriptions 10,103 (5,908) 16,011 Maintenance and support 3,961 2,727 1,234 Professional services 28,415 763 27,652 Total revenue $ 65,275 $ (1,636) $ 66,911 Quarter Ended September 30, 2019 As Reported (ASC 606) Impacts from Adoption Without Adoption (ASC 605) (in thousands) (unaudited) SaaS subscriptions $ 24,573 $ 914 $ 23,659 Term license subscriptions 9,199 (7,577) 16,776 Maintenance and support 4,002 2,838 1,164 Professional services 28,381 593 27,788 Total revenue $ 66,155 $ (3,232) $ 69,387 Quarter Ended December 31, 2019 As Reported (ASC 606) Impacts from Adoption Without Adoption (ASC 605) (in thousands) (unaudited) SaaS subscriptions $ 26,381 $ 559 $ 25,822 Term license subscriptions 11,569 (5,687) 17,256 Maintenance and support 4,158 2,918 1,240 Professional services 26,510 358 26,152 Total revenue $ 68,618 $ (1,852) $ 70,470 |
Summary of Impacts from the Adoption of ASC 606 | The following table summarizes the impacts from the adoption of the new revenue recognition standard on our consolidated balance sheet as of December 31, 2019 (in thousands): As of December 31, 2019 2018 As Reported (ASC 606) Impacts from Adoption Without Adoption (ASC 605) As Reported (ASC 605) Assets Current assets Cash and cash equivalents $ 159,755 $ — $ 159,755 $ 94,930 Accounts receivable, net of allowance 70,408 — 70,408 79,383 Deferred commissions, current 14,543 (6,061) 20,604 14,020 Prepaid expenses and other current assets 32,955 16,343 16,612 21,293 Total current assets 277,661 10,282 267,379 209,626 Property and equipment, net 39,554 — 39,554 7,539 Operating right-of-use asset 24,205 — 24,205 — Deferred commissions, net of current portion 28,979 15,780 13,199 15,088 Deferred tax assets 494 — 494 326 Other assets 592 — 592 601 Total assets 371,485 26,062 345,423 233,180 Liabilities and Stockholders’ Equity Current liabilities Accounts payable $ 5,222 $ — $ 5,222 $ 9,249 Accrued expenses 7,488 — 7,488 7,464 Accrued compensation and related benefits 10,691 — 10,691 13,796 Deferred revenue, current 82,201 (28,985) 111,186 95,523 Operating lease liability, current 3,836 — 3,836 — Finance lease liability, current 1,447 — 1,447 — Other current liabilities 1,395 — 1,395 2,369 Total current liabilities 112,280 (28,985) 141,265 128,401 Operating lease liability, net of current portion 44,416 — 44,416 — Finance lease liability, net of current portion 2,375 — 2,375 — Deferred revenue, net of current portion 7,139 (4,891) 12,030 16,145 Deferred tax liabilities 38 — 38 42 Deferred rent, net of current portion — — — 15,400 Total liabilities 166,248 (33,876) 200,124 159,988 Stockholders’ equity Class A common stock 3 — 3 3 Class B common stock 3 — 3 3 Additional paid-in capital 340,929 — 340,929 218,284 Accumulated other comprehensive (loss) income (285) 320 (605) 542 Accumulated deficit (135,413) 59,618 (195,031) (145,640) Total stockholders’ equity 205,237 59,938 145,299 73,192 Total liabilities and stockholders’ equity $ 371,485 26,062 $ 345,423 $ 233,180 The following summarizes the significant changes on the consolidated balance sheet as of December 31, 2019 as a result of the adoption of ASC 606 on January 1, 2019 compared to if we had continued to recognize revenue under ASC 605: • Total deferred commissions increased $9.7 million due to the increase in the amortization period of costs to obtain a contract for a new customer or up-sell from the contract term to the five year estimated economic life. • Prepaid expenses and other current assets increased $16.3 million and total deferred revenue decreased $33.9 million due to the change in timing of when we recognize revenue under ASC 606. The following table summarizes the impacts from the adoption of the new revenue recognition standard on our consolidated statement of operations for the year ended December 31, 2019 (in thousands): Year Ended December 31, 2019 2018 As Reported (ASC 606) Impacts from Adoption Without Adoption (ASC 605) As Reported (ASC 605) Revenue: Subscriptions $ 151,299 $ (8,786) $ 160,085 $ 126,012 Professional services 109,053 2,791 106,262 100,731 Total revenue 260,352 (5,995) 266,347 226,743 Cost of revenue: Subscriptions 17,098 — 17,098 11,997 Professional services 76,743 — 76,743 72,928 Total cost of revenue 93,841 — 93,841 84,925 Gross profit 166,511 (5,995) 172,506 141,818 Operating expenses: Sales and marketing 117,440 (4,625) 122,065 105,992 Research and development 58,043 — 58,043 44,724 General and administrative 41,496 — 41,496 37,821 Total operating expenses 216,979 (4,625) 221,604 188,537 Operating loss (50,468) (1,370) (49,098) (46,719) Other (income) expense: Other (income) expense, net (941) (47) (894) 2,295 Interest expense 367 — 367 198 Total other (income) expense (574) (47) (527) 2,493 Loss before income taxes (49,894) (1,323) (48,571) (49,212) Income tax expense 820 — 820 239 Net loss $ (50,714) $ (1,323) $ (49,391) $ (49,451) Net loss per share attributable to common stockholders: Basic and diluted $ (0.77) $ (0.02) $ (0.75) $ (0.80) The following summarizes the significant changes on the consolidated statement of operations for the year ended December 31, 2019 as a result of the adoption of ASC 606 on January 1, 2019 compared to if we had continued to recognize revenue under ASC 605: • Subscriptions revenue decreased $8.8 million for the year ended December 31, 2019 under ASC 606 primarily due to the change in timing of when we recognize term license subscription revenue. Additionally, a significant amount of our unrecognized term license subscriptions revenue was recorded as an adjustment to accumulated deficit under ASC 606. Under ASC 606, our term license subscription revenue is recognized at the time of delivery, as opposed to ratably over the contract term under ASC 605. • Professional services revenue increased $2.8 million for the year ended December 31, 2019 under ASC 606 primarily due to the fact that our professional services are sold together with SaaS or term licenses. Under ASC 606, the professional services represent distinct performance obligations and therefore are recognized as services are performed. Under ASC 605, professional services sold together with term licenses were recognized ratably over the contract period of maintenance and support. • Sales and marketing expense decreased $4.6 million for the year ended December 31, 2019 under ASC 606 primarily due to the increase in the period over which we amortize our deferred sales commissions. The following table summarizes the impacts from the adoption of the new revenue recognition standard on our consolidated statement of comprehensive loss for the year ended December 31, 2019 (in thousands): Year Ended December 31, 2019 2018 As Reported (ASC 606) Impacts from Adoption Without Adoption (ASC 605) As Reported (ASC 605) Net loss $ (50,714) $ (1,323) $ (49,391) $ (49,451) Comprehensive loss, net of income taxes: Foreign currency translation adjustment (827) 115 (942) 103 Total other comprehensive loss, net of income taxes $ (51,541) $ (1,208) $ (50,333) $ (49,348) The following table summarizes the impacts from the adoption of the new revenue recognition standard on our consolidated statement of cash flows for the year ended December 31, 2019 (in thousands): Year Ended December 31, 2019 2018 As Reported (ASC 606) Impacts from Adoption Without Adoption (ASC 605) As Reported (ASC 605) Net loss $ (50,714) $ (1,323) $ (49,391) $ (49,451) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 4,742 — 4,742 2,021 Loss (gain) on disposal of equipment 146 — 146 (4) Bad debt expense 99 — 99 211 Deferred income taxes (334) — (334) (218) Stock-based compensation 16,443 — 16,443 16,054 Changes in assets and liabilities: Accounts receivable 7,432 — 7,432 (23,332) Prepaid expenses and other assets 8,972 4,313 4,659 (1,025) Deferred commissions (9,319) (4,625) (4,694) (7,615) Accounts payable and accrued expenses (4,039) — (4,039) 7,461 Accrued compensation and related benefits (3,072) — (3,072) (3) Other current liabilities 1,318 — 1,318 1,823 Deferred revenue 12,573 1,717 10,856 23,023 Operating lease liabilities 6,827 — 6,827 — Deferred rent, non-current — — — (266) Net cash used in operating activities (8,926) 82 (9,008) (31,321) Cash flows from investing activities: Purchases of property and equipment (32,421) — (32,421) (7,014) Proceeds from sale of equipment — — — 4 Net cash used in investing activities (32,421) — (32,421) (7,010) Cash flows from financing activities: Proceeds from public offering, net of underwriting discounts 101,653 — 101,653 58,258 Payment of costs related to public offerings (350) — (350) (429) Proceeds from exercise of common stock options 4,899 — 4,899 3,133 Principal payments on finance lease obligations (653) — (653) — Net cash provided by financing activities 105,549 — 105,549 60,962 Effect of foreign exchange rate changes on cash and cash equivalents 623 (82) 705 (1,459) Net increase in cash and cash equivalents 64,825 — 64,825 21,172 Cash and cash equivalents, beginning of period 94,930 — 94,930 73,758 Cash and cash equivalents, end of period $ 159,755 — $ 159,755 $ 94,930 |
Schedule of Allowance for Doubtful Accounts | Activity within the allowance for doubtful accounts was as follows (in thousands): Year Ended December 31, 2019 2018 2017 Balance as of January 1 $ 600 $ 400 $ 400 Additions 99 211 62 Less write-offs, net of recoveries (99) (11) (62) Balance as of December 31 $ 600 $ 600 $ 400 |
Summary of Capitalized Contract Costs | The following table summarizes the activity of costs to obtain a contract with a customer for the year ended December 31, 2019 (in thousands): Year Ended December 31, 2019 Balance as of January 1 $ 29,108 Adoption of ASC 606 5,094 Additional contract costs deferred 25,004 Amortization of deferred contract costs (15,684) Balance as of December 31 $ 43,522 |
Property and Equipment, Useful Life | Asset Category Useful Life (in years) Computer software 3 Computer hardware 3 Equipment 5 Office furniture and fixtures 10 Leasehold improvements Shorter of useful life of assets or lease term |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment consisted of the following as of December 31 (in thousands): 2019 2018 Leasehold improvements $ 37,130 $ 9,958 Office furniture and fixtures 4,963 649 Computer hardware 3,365 2,535 Computer software 1,350 1,727 Equipment 72 138 46,880 15,007 Less: accumulated depreciation (7,326) (7,468) Property and equipment, net $ 39,554 $ 7,539 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses | Accrued expenses consisted of the following as of December 31 (in thousands): 2019 2018 Accrued contract labor costs $ 1,921 $ 3,128 Accrued hosting costs 1,865 579 Accrued reimbursable employee expenses 1,353 459 Accrued legal costs 422 — Accrued marketing and tradeshow expenses 365 229 Accrued audit and tax expenses 315 375 Accrued third party license fees 288 729 Other accrued expenses 959 1,965 Total $ 7,488 $ 7,464 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax | For the years ended December 31, 2019, 2018 and 2017, our loss before income taxes was comprised of the following (in thousands): 2019 2018 2017 Domestic $ (32,091) $ (30,663) $ (23,093) Foreign (17,803) (18,549) (7,153) Total $ (49,894) $ (49,212) $ (30,246) |
Schedule of Components of Income Tax Expense (Benefit) | For the years ended December 31, 2019, 2018 and 2017, our income tax expense (benefit) was comprised of the following (in thousands): 2019 2018 2017 Current: Federal $ 3 $ — $ (65) State 60 25 68 Foreign 1,091 432 1,009 Total current expense 1,154 457 1,012 Deferred: Federal — — (42) State — — — Foreign (334) (218) (209) Total deferred benefit (334) (218) (251) Total income tax expense $ 820 $ 239 $ 761 |
Schedule of Effective Income Tax Rate Reconciliation | For the years ended December 31, 2019, 2018 and 2017, 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: 2019 2018 2017 U.S. federal statutory tax rate 21.0 % 21.0 % 34.0 % State tax expense 7.1 7.2 4.9 Foreign rate differential (5.1) (5.1) (6.7) Nondeductible expenses (0.7) (0.7) (0.9) Equity compensation 12.0 9.5 — Tax credits 6.5 3.9 5.8 Unrecognized tax benefits (1.1) (0.8) (0.7) Other (0.8) 0.6 (0.3) Remeasurement of deferred taxes (1.6) — (7.0) Change in valuation allowance (38.9) (36.0) (31.6) Total (1.6) % (0.4) % (0.4) % |
Schedule of Deferred Tax Assets and Liabilities | As of December 31, 2019 and 2018, significant components of our deferred tax assets and liabilities were as follows (in thousands): 2019 2018 Deferred tax assets: Net operating losses $ 34,875 $ 21,059 Tax credits 8,648 5,945 Deferred revenue 1,291 4,179 Equity compensation 1,668 3,923 Lease liabilities 13,066 — Accrued vacation 409 1,170 Deferred rent — 373 Bad debt 164 164 Depreciation — 151 Other 260 548 Gross deferred tax assets 60,381 37,512 Less: Valuation allowance (35,607) (30,039) Total deferred tax assets 24,774 7,473 Deferred tax liabilities: Prepaid expenses (9,562) (6,640) Right-of-use assets (6,488) — Unbilled receivables (3,849) (419) Depreciation (4,377) — Other (42) (130) Total deferred tax liabilities (24,318) (7,189) Net deferred tax asset $ 456 $ 284 |
Summary of Income Tax Contingencies | The following table summarizes the activity related to our unrecognized tax benefit from January 1, 2017 to December 31, 2019 (in thousands): Balance as of January 1, 2017 $ 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 Additions for tax positions in current years 536 Additions for tax positions in prior years — Reductions due to lapse in statutes of limitations — Settlements — Balance as of December 31, 2019 $ 1,575 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [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, 2019, 2018 and 2017: 2019 2018 2017 Risk-free interest rate 2.1% * 1.9% - 2.2% Expected term (in years) 2.6 * 6.5 Expected volatility 55.0% * 38.1% - 40.6% 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, 2019, 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 Granted 700,000 33.98 Exercised (1,194,471) 4.11 44,081 Canceled (67,986) 10.17 Outstanding at December 31, 2019 4,458,611 12.30 5.8 115,501 Exercisable at December 31, 2019 2,818,731 7.51 5.7 86,536 |
Schedule of Restricted Stock Unit Activity | The following table summarizes the restricted stock unit activity for the years ended December 31, 2019, 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 Granted 436,912 40.70 Vested (521,460) 27.81 Canceled (67,666) 26.38 Non-vested outstanding at December 31, 2019 1,022,835 31.39 |
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, 2019, 2018 and 2017 (in thousands): 2019 2018 2017 Stock-based compensation expense related to stock options $ 3,408 $ 7,947 $ 9,607 Stock-based compensation expense related to restricted stock units 12,667 7,714 753 Stock-based compensation expense related to the issuance of common stock to directors 368 393 222 Stock-based compensation expense related to stock option modifications — — 2,394 Total stock-based compensation expense $ 16,443 $ 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, 2019, 2018 and 2017 (in thousands): 2019 2018 2017 Cost of revenue Subscriptions $ 647 $ 514 $ 575 Professional services 2,748 1,717 1,295 Operating expenses Sales and marketing 4,742 3,473 3,233 Research and development 3,480 2,416 2,822 General and administrative 4,826 7,934 5,051 Total stock-based compensation expense $ 16,443 $ 16,054 $ 12,976 |
Basic and Diluted Loss per Co_2
Basic and Diluted Loss per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 2018 2017 Numerator: Net loss $ (50,714) $ (49,451) $ (31,007) Accretion of dividends on convertible preferred stock — — 357 Net loss attributable to common stockholders $ (50,714) $ (49,451) $ (31,364) Denominator Weighted average common shares outstanding, basic and diluted 65,479,327 62,140,684 49,529,833 Net loss per share attributable to common stockholders, basic and diluted $ (0.77) $ (0.80) $ (0.63) |
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, 2019 2018 2017 Stock options 4,458,611 5,021,068 7,010,887 Restricted stock units 1,022,835 1,175,049 731,975 |
Leases and Other Commitments (T
Leases and Other Commitments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Components of Lease Expense | The following table sets forth the components of lease expense for the year ended December 31, 2019 (in thousands): Year Ended December 31, 2019 Operating lease cost $ 9,733 Finance lease costs: Amortization of right-of-use assets 700 Interest on lease liabilities 108 Short-term lease cost 462 Variable lease cost 409 Total $ 11,412 |
Supplemental Balance Sheet Information | Supplemental balance sheet information related to leases as of December 31, 2019 was as follows (in thousands, except for lease term and discount rate): As of December 31, 2019 Operating Leases Operating ROU assets $ 24,205 Operating lease liabilities, current $ 3,836 Operating lease liabilities, net of current portion 44,416 Total operating lease liabilities $ 48,252 Finance Leases Property and equipment, at cost $ 4,475 Accumulated depreciation (703) Property and equipment, net $ 3,772 Finance lease liabilities, current $ 1,447 Finance lease liabilities, net of current portion 2,375 Total finance lease liabilities $ 3,822 Weighted Average Remaining Lease Term Operating leases 11.4 Finance leases 2.5 Weighted Average Discount Rate Operating leases 9.8 % Finance leases 5.5 % |
Supplemental Cash Flow Information | Supplemental cash flow information related to leases for the year ended December 31, 2019 was as follows (in thousands): Year Ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows for operating leases $ 6,413 Operating cash outflows for finance leases 108 Financing cash outflows for finance leases 653 ROU assets obtained in exchange for lease obligations: Operating leases 523 Finance leases 4,475 |
Maturities of Operating Lease Liabilities | The maturities of lease liabilities under non-cancelable operating and finance leases as of December 31, 2019 was as follows (in thousands): Operating Leases Finance Leases 2020 $ 3,781 $ 1,620 2021 6,896 1,620 2022 7,007 859 2023 7,050 — 2024 7,408 — Thereafter 57,884 — Total lease payments 90,026 4,099 Less: imputed interest (41,774) (277) Total $ 48,252 $ 3,822 |
Maturities of Finance Lease Liabilities | The maturities of lease liabilities under non-cancelable operating and finance leases as of December 31, 2019 was as follows (in thousands): Operating Leases Finance Leases 2020 $ 3,781 $ 1,620 2021 6,896 1,620 2022 7,007 859 2023 7,050 — 2024 7,408 — Thereafter 57,884 — Total lease payments 90,026 4,099 Less: imputed interest (41,774) (277) Total $ 48,252 $ 3,822 |
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 was 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, 2019 | |
Segment Reporting [Abstract] | |
Summary of Revenue By Geography | The following table summarizes revenue by geography for the years ended December 31 (in thousands): 2019 2018 2017 Domestic $ 176,187 $ 161,716 $ 128,997 International 84,165 65,027 47,740 Total $ 260,352 $ 226,743 $ 176,737 |
Selected Quarterly Informatio_2
Selected Quarterly Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 (in thousands) (unaudited) Consolidated Statements of Operations Data: Revenue: (1) Subscriptions $ 42,108 $ 37,774 $ 36,860 $ 34,557 $ 35,108 $ 30,905 $ 33,047 $ 26,952 Professional services 26,510 28,381 28,415 25,747 25,108 24,043 26,836 24,744 Total revenue 68,618 66,155 65,275 60,304 60,216 54,948 59,883 51,696 Cost of revenue: Subscriptions 4,993 4,484 4,036 3,585 3,284 3,261 2,824 2,628 Professional services 17,780 19,467 19,015 20,481 18,926 16,831 18,750 18,421 Total cost of revenue 22,773 23,951 23,051 24,066 22,210 20,092 21,574 21,049 Gross profit 45,845 42,204 42,224 36,238 38,006 34,856 38,309 30,647 Operating expenses: Sales and marketing 31,254 27,603 29,992 28,591 30,177 25,467 27,384 22,964 Research and development 15,625 15,697 12,765 13,956 12,332 11,737 10,785 9,870 General and administrative 12,028 11,191 9,261 9,016 8,799 12,537 8,425 8,060 Total operating expenses 58,907 54,491 52,018 51,563 51,308 49,741 46,594 40,894 Operating loss (13,062) (12,287) (9,794) (15,325) (13,302) (14,885) (8,285) (10,247) Other (income) expense: Other (income) expense, net (2,822) 2,262 (79) (302) 510 110 2,593 (918) Interest expense 131 96 69 71 64 67 54 13 Total other (income) expense (2,691) 2,358 (10) (231) 574 177 2,647 (905) Loss before income taxes (10,371) (14,645) (9,784) (15,094) (13,876) (15,062) (10,932) (9,342) Income tax expense (benefit) 426 5 267 122 27 (34) 35 211 Net loss (2) $ (10,797) $ (14,650) $ (10,051) $ (15,216) $ (13,903) $ (15,028) $ (10,967) $ (9,553) (1) The revenue for the three months ended March 31, 2019, June 30, 2019 and September 30, 2019 have been adjusted from previously reported revenue as a result of the adoption of ASC 606. Refer to the tables below for a reconciliation of 2019 quarterly revenue. (2) In the third quarter of 2018, we recorded $4.5 million of cumulative stock-based compensation expense upon the vesting of an option previously granted to our Chief Executive Officer in 2016. See Note 7 for further discussion of |
Summary of Revenue by Services | The following table summarizes revenue from contracts with customers for the year ended December 31, 2019 (in thousands): Year Ended December 31, 2019 SaaS subscriptions $ 95,028 Term license subscriptions 40,428 Maintenance and support 15,843 Professional services 109,053 Total revenue $ 260,352 Quarter Ended March 31, 2019 As Reported (ASC 606) Impacts from Adoption Without Adoption (ASC 605) (in thousands) (unaudited) SaaS subscriptions $ 21,278 $ 667 $ 20,611 Term license subscriptions 9,557 (3,417) 12,974 Maintenance and support 3,722 2,398 1,324 Professional services 25,747 1,077 24,670 Total revenue $ 60,304 $ 725 $ 59,579 Quarter Ended June 30, 2019 As Reported (ASC 606) Impacts from Adoption Without Adoption (ASC 605) (in thousands) (unaudited) SaaS subscriptions $ 22,796 $ 782 $ 22,014 Term license subscriptions 10,103 (5,908) 16,011 Maintenance and support 3,961 2,727 1,234 Professional services 28,415 763 27,652 Total revenue $ 65,275 $ (1,636) $ 66,911 Quarter Ended September 30, 2019 As Reported (ASC 606) Impacts from Adoption Without Adoption (ASC 605) (in thousands) (unaudited) SaaS subscriptions $ 24,573 $ 914 $ 23,659 Term license subscriptions 9,199 (7,577) 16,776 Maintenance and support 4,002 2,838 1,164 Professional services 28,381 593 27,788 Total revenue $ 66,155 $ (3,232) $ 69,387 Quarter Ended December 31, 2019 As Reported (ASC 606) Impacts from Adoption Without Adoption (ASC 605) (in thousands) (unaudited) SaaS subscriptions $ 26,381 $ 559 $ 25,822 Term license subscriptions 11,569 (5,687) 17,256 Maintenance and support 4,158 2,918 1,240 Professional services 26,510 358 26,152 Total revenue $ 68,618 $ (1,852) $ 70,470 |
Significant Accounting Polici_4
Significant Accounting Policies - Additional Information (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2019USD ($)$ / sharesshares | Aug. 31, 2018USD ($)$ / sharesshares | Nov. 30, 2017$ / sharesshares | May 31, 2017USD ($)$ / sharesshares | Dec. 31, 2019USD ($)agencysegment | Dec. 31, 2018USD ($)agency | Dec. 31, 2017USD ($)agency | Feb. 28, 2019USD ($) | Jan. 01, 2019USD ($) | Oct. 31, 2018USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | ||||||||||
Proceeds from initial public offering, net of underwriting discounts | $ 0 | $ 0 | $ 80,213 | |||||||
Deferred offering costs | $ 2,400 | |||||||||
Contract assets balances | 22,800 | $ 25,800 | ||||||||
Contract liabilities revenue recognized | 66,600 | |||||||||
Unsatisfied performance obligations | 175,800 | |||||||||
Tenant improvement allowance receivable | 0 | 14,400 | $ 15,800 | |||||||
Additional tenant improvement allowance receivable | $ 2,600 | |||||||||
Tenant improvement allowance received | $ 17,000 | |||||||||
Capitalized contract cost, amortization period | 5 years | |||||||||
Commission expense | $ 15,684 | 15,600 | 11,800 | |||||||
Number of operating segments | segment | 1 | |||||||||
Number of reportable segments | segment | 1 | |||||||||
Foreign currency transaction gains (losses) | $ (200) | (3,000) | 2,600 | |||||||
Advertising expense | 4,100 | 3,900 | $ 3,000 | |||||||
Adjustment to accumulated deficit | (135,413) | $ (145,640) | ||||||||
Adoption of ASC 606 | 5,094 | |||||||||
Accounting Standards Update 2014-09 | ||||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||||
Adjustment to accumulated deficit | (55,800) | |||||||||
Decrease in total deferred revenue | (35,400) | |||||||||
Addition of contract asset | 20,400 | |||||||||
Adoption of ASC 606 | $ 5,100 | |||||||||
Total lease liability recognized upon adoption | 51,400 | |||||||||
ROU assets recognized upon adoption | $ 33,800 | |||||||||
Customer Concentration Risk | Sales Revenue, Net | Foreign Customers | ||||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||||
Concentration risk percentage | 32.30% | 28.70% | 27.00% | |||||||
Customer Concentration Risk | Sales Revenue, Net | Government Agencies | ||||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||||
Concentration risk percentage | 17.10% | 15.70% | 15.40% | |||||||
Customer Concentration Risk | Sales Revenue, Net | Federal Government Agencies | ||||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||||
Concentration risk percentage | 7.40% | 7.80% | 8.40% | |||||||
Number of federal government agencies | agency | 3 | 3 | 3 | |||||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | ||||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||||
Unsatisfied performance obligations | $ 153,700 | |||||||||
Revenue, remaining performance obligation, period | 24 months | |||||||||
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 | 3 years | |||||||||
Term license subscription contracts term | 3 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 | |||||||||
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 | |||||||||
Initial Public Offering | 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 | |||||||||
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 | |||||||||
Public Offering | Class A Common Stock | ||||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||||
Number of shares issued in public offering (in shares) | shares | 2,329,000 | |||||||||
Sale of stock, offering price (in usd per share) | $ / shares | $ 55.70 | |||||||||
Number of shares issued by the company in public offering (in shares) | shares | 1,825,000 | |||||||||
Number of shares issued by sharesholders in public offering (in shares) | shares | 504,000 | |||||||||
Net proceeds from public offering | $ 101,300 | |||||||||
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 - Revenue by Services (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total revenue | $ 68,618 | $ 66,155 | $ 65,275 | $ 60,304 | $ 60,216 | $ 54,948 | $ 59,883 | $ 51,696 | $ 260,352 | $ 226,743 | $ 176,737 |
SaaS subscriptions | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total revenue | 26,381 | 24,573 | 22,796 | 21,278 | 95,028 | ||||||
Term license subscriptions | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total revenue | 11,569 | 9,199 | 10,103 | 9,557 | 40,428 | ||||||
Maintenance and support | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total revenue | 4,158 | 4,002 | 3,961 | 3,722 | 15,843 | ||||||
Professional services | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total revenue | $ 26,510 | $ 28,381 | $ 28,415 | $ 25,747 | $ 25,108 | $ 24,043 | $ 26,836 | $ 24,744 | $ 109,053 | $ 100,731 | $ 85,223 |
Significant Accounting Polici_6
Significant Accounting Policies - Impacts on Balance Sheets from the Adoption of ASC 606 (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cash and cash equivalents | $ 159,755 | $ 94,930 | |||
Accounts receivable, net of allowance | 70,408 | 79,383 | |||
Deferred commissions, current | 14,543 | 14,020 | |||
Prepaid expenses and other current assets | 32,955 | 21,293 | |||
Total current assets | 277,661 | 209,626 | |||
Property and equipment, net | 39,554 | ||||
Operating right-of-use asset | 24,205 | ||||
Deferred commissions, net of current portion | 28,979 | 15,088 | |||
Deferred tax assets | 494 | 326 | |||
Other assets | 592 | 601 | |||
Total assets | 371,485 | 233,180 | |||
Accounts payable | 5,222 | 9,249 | |||
Accrued expenses | 7,488 | 7,464 | |||
Accrued compensation and related benefits | 10,691 | 13,796 | |||
Deferred revenue, current | 82,201 | 95,523 | |||
Operating lease liability, current | 3,836 | ||||
Finance lease liability, current | 1,447 | ||||
Other current liabilities | 1,395 | 2,369 | |||
Total current liabilities | 112,280 | 128,401 | |||
Operating lease liability, net of current portion | 44,416 | ||||
Finance lease liability, net of current portion | 2,375 | ||||
Deferred revenue, net of current portion | 7,139 | 16,145 | |||
Deferred tax liabilities | 38 | 42 | |||
Deferred rent, net of current portion | 0 | 15,400 | |||
Total liabilities | 166,248 | 159,988 | |||
Additional paid-in capital | 340,929 | 218,284 | |||
Accumulated other comprehensive (loss) income | (285) | 542 | |||
Accumulated deficit | (135,413) | (145,640) | |||
Total stockholders’ equity | 205,237 | 73,192 | $ 45,524 | $ (63,492) | |
Total liabilities and stockholders’ equity | 371,485 | 233,180 | |||
Increase in total deferred commissions | 43,522 | 29,108 | |||
Class A Common Stock | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Common stock | 3 | 3 | |||
Class B Common Stock | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Common stock | 3 | $ 3 | |||
Calculated under Revenue Guidance in Effect before Topic 606 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cash and cash equivalents | 159,755 | ||||
Accounts receivable, net of allowance | 70,408 | ||||
Deferred commissions, current | 20,604 | ||||
Prepaid expenses and other current assets | 16,612 | ||||
Total current assets | 267,379 | ||||
Property and equipment, net | 39,554 | ||||
Operating right-of-use asset | 24,205 | ||||
Deferred commissions, net of current portion | 13,199 | ||||
Deferred tax assets | 494 | ||||
Other assets | 592 | ||||
Total assets | 345,423 | ||||
Accounts payable | 5,222 | ||||
Accrued expenses | 7,488 | ||||
Accrued compensation and related benefits | 10,691 | ||||
Deferred revenue, current | 111,186 | ||||
Operating lease liability, current | 3,836 | ||||
Finance lease liability, current | 1,447 | ||||
Other current liabilities | 1,395 | ||||
Total current liabilities | 141,265 | ||||
Operating lease liability, net of current portion | 44,416 | ||||
Finance lease liability, net of current portion | 2,375 | ||||
Deferred revenue, net of current portion | 12,030 | ||||
Deferred tax liabilities | 38 | ||||
Deferred rent, net of current portion | 0 | ||||
Total liabilities | 200,124 | ||||
Additional paid-in capital | 340,929 | ||||
Accumulated other comprehensive (loss) income | (605) | ||||
Accumulated deficit | (195,031) | ||||
Total stockholders’ equity | 145,299 | ||||
Total liabilities and stockholders’ equity | 345,423 | ||||
Calculated under Revenue Guidance in Effect before Topic 606 | Class A Common Stock | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Common stock | 3 | ||||
Calculated under Revenue Guidance in Effect before Topic 606 | Class B Common Stock | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Common stock | 3 | ||||
Accounting Standards Update 2014-09 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Accumulated deficit | $ (55,800) | ||||
Decrease in total deferred revenue | $ (35,400) | ||||
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cash and cash equivalents | 0 | ||||
Accounts receivable, net of allowance | 0 | ||||
Deferred commissions, current | (6,061) | ||||
Prepaid expenses and other current assets | 16,343 | ||||
Total current assets | 10,282 | ||||
Property and equipment, net | 0 | ||||
Operating right-of-use asset | 0 | ||||
Deferred commissions, net of current portion | 15,780 | ||||
Deferred tax assets | 0 | ||||
Other assets | 0 | ||||
Total assets | 26,062 | ||||
Accounts payable | 0 | ||||
Accrued expenses | 0 | ||||
Accrued compensation and related benefits | 0 | ||||
Deferred revenue, current | (28,985) | ||||
Operating lease liability, current | 0 | ||||
Finance lease liability, current | 0 | ||||
Other current liabilities | 0 | ||||
Total current liabilities | (28,985) | ||||
Operating lease liability, net of current portion | 0 | ||||
Finance lease liability, net of current portion | 0 | ||||
Deferred revenue, net of current portion | (4,891) | ||||
Deferred tax liabilities | 0 | ||||
Deferred rent, net of current portion | 0 | ||||
Total liabilities | (33,876) | ||||
Additional paid-in capital | 0 | ||||
Accumulated other comprehensive (loss) income | 320 | ||||
Accumulated deficit | 59,618 | ||||
Total stockholders’ equity | 59,938 | ||||
Total liabilities and stockholders’ equity | 26,062 | ||||
Increase in total deferred commissions | 9,700 | ||||
Decrease in total deferred revenue | (33,900) | ||||
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | Class A Common Stock | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Common stock | 0 | ||||
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | Class B Common Stock | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Common stock | $ 0 |
Significant Accounting Polici_7
Significant Accounting Policies - Impacts on Statements of Operations from the Adoption of ASC 606 (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Total revenue | $ 68,618 | $ 66,155 | $ 65,275 | $ 60,304 | $ 60,216 | $ 54,948 | $ 59,883 | $ 51,696 | $ 260,352 | $ 226,743 | $ 176,737 |
Total cost of revenue | 22,773 | 23,951 | 23,051 | 24,066 | 22,210 | 20,092 | 21,574 | 21,049 | 93,841 | 84,925 | 64,597 |
Gross profit | 45,845 | 42,204 | 42,224 | 36,238 | 38,006 | 34,856 | 38,309 | 30,647 | 166,511 | 141,818 | 112,140 |
Sales and marketing | 31,254 | 27,603 | 29,992 | 28,591 | 30,177 | 25,467 | 27,384 | 22,964 | 117,440 | 105,992 | 81,966 |
Research and development | 15,625 | 15,697 | 12,765 | 13,956 | 12,332 | 11,737 | 10,785 | 9,870 | 58,043 | 44,724 | 34,835 |
General and administrative | 12,028 | 11,191 | 9,261 | 9,016 | 8,799 | 12,537 | 8,425 | 8,060 | 41,496 | 37,821 | 27,150 |
Total operating expenses | 58,907 | 54,491 | 52,018 | 51,563 | 51,308 | 49,741 | 46,594 | 40,894 | 216,979 | 188,537 | 143,951 |
Operating loss | (13,062) | (12,287) | (9,794) | (15,325) | (13,302) | (14,885) | (8,285) | (10,247) | (50,468) | (46,719) | (31,811) |
Other (income) expense, net | (2,822) | 2,262 | (79) | (302) | 510 | 110 | 2,593 | (918) | (941) | 2,295 | (2,038) |
Interest expense | 131 | 96 | 69 | 71 | 64 | 67 | 54 | 13 | 367 | 198 | 473 |
Total other (income) expense | (2,691) | 2,358 | (10) | (231) | 574 | 177 | 2,647 | (905) | (574) | 2,493 | (1,565) |
Loss before income taxes | (10,371) | (14,645) | (9,784) | (15,094) | (13,876) | (15,062) | (10,932) | (9,342) | (49,894) | (49,212) | (30,246) |
Income tax expense | 426 | 5 | 267 | 122 | 27 | (34) | 35 | 211 | 820 | 239 | 761 |
Net loss | (10,797) | (14,650) | (10,051) | (15,216) | (13,903) | (15,028) | (10,967) | (9,553) | $ (50,714) | $ (49,451) | $ (31,007) |
Basic and diluted (in usd per share) | $ (0.77) | $ (0.80) | $ (0.63) | ||||||||
Subscriptions | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Total revenue | 42,108 | 37,774 | 36,860 | 34,557 | 35,108 | 30,905 | 33,047 | 26,952 | $ 151,299 | $ 126,012 | $ 91,514 |
Total cost of revenue | 4,993 | 4,484 | 4,036 | 3,585 | 3,284 | 3,261 | 2,824 | 2,628 | 17,098 | 11,997 | 9,379 |
Professional services | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Total revenue | 26,510 | 28,381 | 28,415 | 25,747 | 25,108 | 24,043 | 26,836 | 24,744 | 109,053 | 100,731 | 85,223 |
Total cost of revenue | 17,780 | 19,467 | 19,015 | 20,481 | $ 18,926 | $ 16,831 | $ 18,750 | $ 18,421 | 76,743 | $ 72,928 | $ 55,218 |
Calculated under Revenue Guidance in Effect before Topic 606 | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Total revenue | 70,470 | 69,387 | 66,911 | 59,579 | 266,347 | ||||||
Total cost of revenue | 93,841 | ||||||||||
Gross profit | 172,506 | ||||||||||
Sales and marketing | 122,065 | ||||||||||
Research and development | 58,043 | ||||||||||
General and administrative | 41,496 | ||||||||||
Total operating expenses | 221,604 | ||||||||||
Operating loss | (49,098) | ||||||||||
Other (income) expense, net | (894) | ||||||||||
Interest expense | 367 | ||||||||||
Total other (income) expense | (527) | ||||||||||
Loss before income taxes | (48,571) | ||||||||||
Income tax expense | 820 | ||||||||||
Net loss | $ (49,391) | ||||||||||
Basic and diluted (in usd per share) | $ (0.75) | ||||||||||
Calculated under Revenue Guidance in Effect before Topic 606 | Subscriptions | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Total revenue | $ 160,085 | ||||||||||
Total cost of revenue | 17,098 | ||||||||||
Calculated under Revenue Guidance in Effect before Topic 606 | Professional services | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Total revenue | 26,152 | 27,788 | 27,652 | 24,670 | 106,262 | ||||||
Total cost of revenue | 76,743 | ||||||||||
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Total revenue | (1,852) | (3,232) | (1,636) | 725 | (5,995) | ||||||
Total cost of revenue | 0 | ||||||||||
Gross profit | (5,995) | ||||||||||
Sales and marketing | (4,625) | ||||||||||
Research and development | 0 | ||||||||||
General and administrative | 0 | ||||||||||
Total operating expenses | (4,625) | ||||||||||
Operating loss | (1,370) | ||||||||||
Other (income) expense, net | (47) | ||||||||||
Interest expense | 0 | ||||||||||
Total other (income) expense | (47) | ||||||||||
Loss before income taxes | (1,323) | ||||||||||
Income tax expense | 0 | ||||||||||
Net loss | $ (1,323) | ||||||||||
Basic and diluted (in usd per share) | $ (0.02) | ||||||||||
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | Subscriptions | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Total revenue | $ (8,786) | ||||||||||
Total cost of revenue | 0 | ||||||||||
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | Professional services | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Total revenue | $ 358 | $ 593 | $ 763 | $ 1,077 | 2,791 | ||||||
Total cost of revenue | $ 0 |
Significant Accounting Polici_8
Significant Accounting Policies - Impacts on Statements of Comprehensive Loss from the Adoption of ASC 606 (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Net loss | $ (10,797) | $ (14,650) | $ (10,051) | $ (15,216) | $ (13,903) | $ (15,028) | $ (10,967) | $ (9,553) | $ (50,714) | $ (49,451) | $ (31,007) |
Foreign currency translation adjustment | (827) | 103 | (891) | ||||||||
Total other comprehensive loss, net of income taxes | (51,541) | $ (49,348) | $ (31,898) | ||||||||
Calculated under Revenue Guidance in Effect before Topic 606 | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Net loss | (49,391) | ||||||||||
Foreign currency translation adjustment | (942) | ||||||||||
Total other comprehensive loss, net of income taxes | (50,333) | ||||||||||
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Net loss | (1,323) | ||||||||||
Foreign currency translation adjustment | 115 | ||||||||||
Total other comprehensive loss, net of income taxes | $ (1,208) |
Significant Accounting Polici_9
Significant Accounting Policies - Impacts on Statements of Cash Flows from the Adoption of ASC 606 (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Net loss | $ (10,797) | $ (14,650) | $ (10,051) | $ (15,216) | $ (13,903) | $ (15,028) | $ (10,967) | $ (9,553) | $ (50,714) | $ (49,451) | $ (31,007) |
Depreciation and amortization | 4,742 | 2,021 | 886 | ||||||||
Loss (gain) on disposal of equipment | 146 | (4) | 0 | ||||||||
Bad debt expense | 99 | 211 | 62 | ||||||||
Deferred income taxes | (334) | (218) | (251) | ||||||||
Stock-based compensation | 16,443 | 16,054 | 12,976 | ||||||||
Accounts receivable | 7,432 | (23,332) | (9,716) | ||||||||
Prepaid expenses and other assets | 8,972 | (1,025) | (4,162) | ||||||||
Deferred commissions | (9,319) | (7,615) | (3,487) | ||||||||
Accounts payable and accrued expenses | (4,039) | 7,461 | 4,128 | ||||||||
Accrued compensation and related benefits | (3,072) | (3) | 2,365 | ||||||||
Other current liabilities | 1,318 | 1,823 | 383 | ||||||||
Deferred revenue | 12,573 | 23,023 | 18,344 | ||||||||
Operating lease liabilities | 6,827 | ||||||||||
Deferred rent, non-current | 0 | (266) | (374) | ||||||||
Net cash used in operating activities | (8,926) | (31,321) | (9,128) | ||||||||
Purchases of property and equipment | (32,421) | (7,014) | (433) | ||||||||
Proceeds from sale of equipment | 0 | 4 | 0 | ||||||||
Net cash used in investing activities | (32,421) | (7,010) | (433) | ||||||||
Proceeds from public offering, net of underwriting discounts | 101,653 | 58,258 | 0 | ||||||||
Payment of costs related to public offerings | (350) | (429) | (2,424) | ||||||||
Proceeds from exercise of common stock options | 4,899 | 3,133 | 1,108 | ||||||||
Principal payments on finance lease obligations | (653) | ||||||||||
Net cash provided by financing activities | 105,549 | 60,962 | 50,948 | ||||||||
Effect of foreign exchange rate changes on cash and cash equivalents | 623 | (1,459) | 1,228 | ||||||||
Net increase in cash and cash equivalents | 64,825 | 21,172 | 42,615 | ||||||||
Cash and cash equivalents, beginning of period | 94,930 | $ 73,758 | 94,930 | 73,758 | 31,143 | ||||||
Cash and cash equivalents, end of period | 159,755 | 94,930 | 159,755 | 94,930 | $ 73,758 | ||||||
Calculated under Revenue Guidance in Effect before Topic 606 | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Net loss | (49,391) | ||||||||||
Depreciation and amortization | 4,742 | ||||||||||
Loss (gain) on disposal of equipment | 146 | ||||||||||
Bad debt expense | 99 | ||||||||||
Deferred income taxes | (334) | ||||||||||
Stock-based compensation | 16,443 | ||||||||||
Accounts receivable | 7,432 | ||||||||||
Prepaid expenses and other assets | 4,659 | ||||||||||
Deferred commissions | (4,694) | ||||||||||
Accounts payable and accrued expenses | (4,039) | ||||||||||
Accrued compensation and related benefits | (3,072) | ||||||||||
Other current liabilities | 1,318 | ||||||||||
Deferred revenue | 10,856 | ||||||||||
Operating lease liabilities | 6,827 | ||||||||||
Deferred rent, non-current | 0 | ||||||||||
Net cash used in operating activities | (9,008) | ||||||||||
Purchases of property and equipment | (32,421) | ||||||||||
Proceeds from sale of equipment | 0 | ||||||||||
Net cash used in investing activities | (32,421) | ||||||||||
Proceeds from public offering, net of underwriting discounts | 101,653 | ||||||||||
Payment of costs related to public offerings | (350) | ||||||||||
Proceeds from exercise of common stock options | 4,899 | ||||||||||
Principal payments on finance lease obligations | (653) | ||||||||||
Net cash provided by financing activities | 105,549 | ||||||||||
Effect of foreign exchange rate changes on cash and cash equivalents | 705 | ||||||||||
Net increase in cash and cash equivalents | 64,825 | ||||||||||
Cash and cash equivalents, beginning of period | 94,930 | 94,930 | |||||||||
Cash and cash equivalents, end of period | 159,755 | 94,930 | 159,755 | 94,930 | |||||||
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Net loss | (1,323) | ||||||||||
Depreciation and amortization | 0 | ||||||||||
Loss (gain) on disposal of equipment | 0 | ||||||||||
Bad debt expense | 0 | ||||||||||
Deferred income taxes | 0 | ||||||||||
Stock-based compensation | 0 | ||||||||||
Accounts receivable | 0 | ||||||||||
Prepaid expenses and other assets | 4,313 | ||||||||||
Deferred commissions | (4,625) | ||||||||||
Accounts payable and accrued expenses | 0 | ||||||||||
Accrued compensation and related benefits | 0 | ||||||||||
Other current liabilities | 0 | ||||||||||
Deferred revenue | 1,717 | ||||||||||
Operating lease liabilities | 0 | ||||||||||
Deferred rent, non-current | 0 | ||||||||||
Net cash used in operating activities | 82 | ||||||||||
Purchases of property and equipment | 0 | ||||||||||
Proceeds from sale of equipment | 0 | ||||||||||
Net cash used in investing activities | 0 | ||||||||||
Proceeds from public offering, net of underwriting discounts | 0 | ||||||||||
Payment of costs related to public offerings | 0 | ||||||||||
Proceeds from exercise of common stock options | 0 | ||||||||||
Principal payments on finance lease obligations | 0 | ||||||||||
Net cash provided by financing activities | 0 | ||||||||||
Effect of foreign exchange rate changes on cash and cash equivalents | (82) | ||||||||||
Net increase in cash and cash equivalents | 0 | ||||||||||
Cash and cash equivalents, beginning of period | $ 0 | 0 | |||||||||
Cash and cash equivalents, end of period | $ 0 | $ 0 | $ 0 | $ 0 |
Significant Accounting Polic_10
Significant Accounting Policies - Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Balance as of January 1 | $ 600 | $ 400 | $ 400 |
Bad debt expense | 99 | 211 | 62 |
Less write-offs, net of recoveries | 99 | 11 | 62 |
Balance as of December 31 | $ 600 | $ 600 | $ 400 |
Significant Accounting Polic_11
Significant Accounting Policies - Summary of Capitalized Contract Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Capitalized Contract Cost [Roll Forward] | |||
Balance as of January 1 | $ 29,108 | ||
Adoption of ASC 606 | 5,094 | ||
Additional contract costs deferred | 25,004 | ||
Amortization of deferred contract costs | (15,684) | $ (15,600) | $ (11,800) |
Balance as of December 31 | $ 43,522 | $ 29,108 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 46,880 | |
Property and equipment, gross | $ 15,007 | |
Less: accumulated depreciation | (7,326) | |
Less: accumulated depreciation | (7,468) | |
Property and equipment, net | 39,554 | |
Property and equipment, net | 7,539 | |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 37,130 | |
Property and equipment, gross | 9,958 | |
Office furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 4,963 | |
Property and equipment, gross | 649 | |
Computer hardware | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 3,365 | |
Property and equipment, gross | 2,535 | |
Computer software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 1,350 | |
Property and equipment, gross | 1,727 | |
Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 72 | |
Property and equipment, gross | $ 138 |
Property and Equipment - Narrat
Property and Equipment - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization expense | $ 4,700 | $ 2,000 | $ 900 |
Loss on disposal | (146) | 4 | $ 0 |
Finance lease obligations to acquire new office furniture and fixtures and computer hardware | 4,475 | ||
Capital leases | 0 | ||
Accumulated depreciation for assets under capital lease | 700 | ||
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Disposal of property plant and equipment | 3,200 | ||
Computer hardware | |||
Property, Plant and Equipment [Line Items] | |||
Disposal of property plant and equipment | 900 | $ 100 | |
Finance lease obligations to acquire new office furniture and fixtures and computer hardware | 800 | ||
Office furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Disposal of property plant and equipment | 400 | ||
Finance lease obligations to acquire new office furniture and fixtures and computer hardware | 3,700 | ||
Computer software | |||
Property, Plant and Equipment [Line Items] | |||
Disposal of property plant and equipment | 400 | ||
Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Disposal of property plant and equipment | $ 100 |
Accrued Expenses - Schedule of
Accrued Expenses - Schedule of Accrued Expenses (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Payables and Accruals [Abstract] | ||
Accrued contract labor costs | $ 1,921 | $ 3,128 |
Accrued hosting costs | 1,865 | 579 |
Accrued reimbursable employee expenses | 1,353 | 459 |
Accrued legal costs | 422 | 0 |
Accrued marketing and tradeshow expenses | 365 | 229 |
Accrued audit and tax expenses | 315 | 375 |
Accrued third party license fees | 288 | 729 |
Other accrued expenses | 959 | 1,965 |
Total | $ 7,488 | $ 7,464 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) | 1 Months Ended | ||
Nov. 30, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | |
Line of Credit Facility [Line Items] | |||
Outstanding letters of credit | $ 10,500,000 | $ 10,500,000 | |
Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Credit facility | $ 20,000,000 | ||
Term Loan | |||
Line of Credit Facility [Line Items] | |||
Line of credit, outstanding borrowings | $ 0 | ||
Minimum | |||
Line of Credit Facility [Line Items] | |||
Unused facility fee, revolving line of credit | 0.15% | ||
Adjusted quick ratio | 135.00% | ||
Minimum | 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 | 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, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||||||||||
Domestic | $ (32,091) | $ (30,663) | $ (23,093) | ||||||||
Foreign | (17,803) | (18,549) | (7,153) | ||||||||
Loss before income taxes | $ (10,371) | $ (14,645) | $ (9,784) | $ (15,094) | $ (13,876) | $ (15,062) | $ (10,932) | $ (9,342) | $ (49,894) | $ (49,212) | $ (30,246) |
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, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current: | |||||||||||
Federal | $ 3 | $ 0 | $ (65) | ||||||||
State | 60 | 25 | 68 | ||||||||
Foreign | 1,091 | 432 | 1,009 | ||||||||
Total current expense | 1,154 | 457 | 1,012 | ||||||||
Deferred: | |||||||||||
Federal | 0 | 0 | (42) | ||||||||
State | 0 | 0 | 0 | ||||||||
Foreign | (334) | (218) | (209) | ||||||||
Total deferred benefit | (334) | (218) | (251) | ||||||||
Total income tax expense | $ 426 | $ 5 | $ 267 | $ 122 | $ 27 | $ (34) | $ 35 | $ 211 | $ 820 | $ 239 | $ 761 |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of Statutory to Effective Income Tax Rate (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal statutory tax rate | 21.00% | 21.00% | 34.00% |
State tax expense | 7.10% | 7.20% | 4.90% |
Foreign rate differential | (5.10%) | (5.10%) | (6.70%) |
Nondeductible expenses | (0.70%) | (0.70%) | (0.90%) |
Equity compensation | 12.00% | 9.50% | 0.00% |
Tax credits | 6.50% | 3.90% | 5.80% |
Unrecognized tax benefits | (1.10%) | (0.80%) | (0.70%) |
Other | (0.80%) | 0.60% | (0.30%) |
Remeasurement of deferred taxes | (1.60%) | 0.00% | (7.00%) |
Change in valuation allowance | (38.90%) | (36.00%) | (31.60%) |
Total | (1.60%) | (0.40%) | (0.40%) |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Net operating losses | $ 34,875 | $ 21,059 |
Tax credits | 8,648 | 5,945 |
Deferred revenue | 1,291 | 4,179 |
Equity compensation | 1,668 | 3,923 |
Lease liabilities | 13,066 | 0 |
Accrued vacation | 409 | 1,170 |
Deferred rent | 0 | 373 |
Bad debt | 164 | 164 |
Depreciation | 0 | 151 |
Other | 260 | 548 |
Gross deferred tax assets | 60,381 | 37,512 |
Less: Valuation allowance | (35,607) | (30,039) |
Total deferred tax assets | 24,774 | 7,473 |
Deferred tax liabilities: | ||
Prepaid expenses | (9,562) | (6,640) |
Right-of-use assets | (6,488) | 0 |
Unbilled receivables | (3,849) | (419) |
Depreciation | (4,377) | 0 |
Other | (42) | (130) |
Total deferred tax liabilities | (24,318) | (7,189) |
Net deferred tax asset | $ 456 | $ 284 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | |||
Beginning balance | $ 1,039 | $ 651 | $ 419 |
Additions for tax positions in current years | 536 | 388 | 232 |
Additions for tax positions in prior years | 0 | 0 | 0 |
Reductions due to lapse in statutes of limitations | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 |
Ending balance | $ 1,575 | $ 1,039 | $ 651 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating Loss Carryforwards [Line Items] | ||||
Effective tax rate | (1.60%) | (0.40%) | (0.40%) | |
Tax expense attributable to the change in valuation allowance | $ 10,200 | |||
Operating loss carryforwards, state, tax effected | 6,500 | $ 3,700 | ||
Net change in total valuation allowance | 5,600 | |||
Valuation allowance against foreign deferred tax assets | 35,607 | 30,039 | ||
Unrecognized tax benefits | 1,575 | 1,039 | $ 651 | $ 419 |
Recognized interest and penalties related to uncertain tax positions | 3 | 0 | ||
Cumulative balance of interest and penalties related to uncertain tax positions | 36 | 33 | ||
Unrecognized tax benefits, portion affecting tax rate | 1,600 | 1,000 | ||
Domestic Tax Authority | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating loss carryforwards | 99,300 | 56,900 | ||
Federal NOL carryforwards subject to expiration | 24,400 | |||
Federal NOL carryforwards not subject to expiration | 74,900 | |||
Federal tax credit carryforwards | 7,500 | 6,400 | ||
State and Local Jurisdiction | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating loss carryforwards | 100,900 | 57,200 | ||
Swiss Federal Tax Administration (FTA) | Foreign Tax Authority | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating loss carryforwards | 62,800 | $ 56,300 | ||
Valuation allowance against foreign deferred tax assets | $ 7,300 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | |||||
May 31, 2019 | Nov. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | May 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock option cancellation agreement, vested options to purchase (in shares) | 700,000 | 0 | 1,256,200 | ||||
Exercise price of stock options granted (in usd per share) | $ 33.98 | $ 0 | $ 11.92 | ||||
Service period (in years) | 5 years 9 months 18 days | 6 years 4 months 24 days | 6 years 7 months 6 days | 6 years 6 months | |||
Weighted average grant-date fair value of options granted (in usd per share) | $ 13.57 | $ 5.05 | |||||
Total fair value of stock options vested | $ 2,000,000 | $ 10,500,000 | $ 5,600,000 | ||||
Total compensation cost related to unvested stock options not yet recognized | $ 8,400,000 | ||||||
Weighted average period, unvested stock options | 1 year 10 months 24 days | ||||||
Restricted stock units | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Total unrecognized compensation cost related to unvested restricted stock units | $ 28,800,000 | ||||||
Weighted average remaining vesting period | 2 years 4 months 24 days | ||||||
Granted (in shares) | 436,912 | 622,166 | 738,055 | ||||
Granted (in usd per share) | $ 40.70 | $ 29.60 | $ 22.15 | ||||
2017 Equity Incentive Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares available to be issued (in shares) | 4,668,941 | ||||||
2017 Equity Incentive Plan | Restricted stock units | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Value of awards at grant date | $ 7,700,000 | ||||||
Granted (in shares) | 255,930 | ||||||
Granted (in usd per share) | $ 30.06 | ||||||
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 (in shares) | 7,108,049 | 6,421,442 | |||||
2017 Equity Incentive Plan | Chief Financial Officer | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock option cancellation agreement, vested options to purchase (in shares) | 700,000 | ||||||
Exercise price of stock options granted (in usd per share) | $ 33.98 | ||||||
Share price (in usd per share) | $ 84.63 | ||||||
Value of awards at grant date | $ 9,500,000 | ||||||
Service period (in years) | 2 years 7 months 6 days | ||||||
2007 Stock Option Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares available to be issued (in shares) | 421,442 | ||||||
Number of shares available for grants (in shares) | 0 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Estimate the Fair Value of Stock Options Granted (Detail) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2017 | |
Share-based Goods and Nonemployee Services Transaction [Line Items] | ||
Risk-free interest rate | 210.00% | |
Expected term (in years) | 2 years 7 months 6 days | 6 years 6 months |
Expected volatility | 5500.00% | |
Expected dividend yield | 0.00% | 0.00% |
Minimum | ||
Share-based Goods and Nonemployee Services Transaction [Line Items] | ||
Risk-free interest rate | 1.90% | |
Expected volatility | 38.10% | |
Maximum | ||
Share-based Goods and Nonemployee Services Transaction [Line Items] | ||
Risk-free interest rate | 2.20% | |
Expected volatility | 40.60% |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of the Stock Option Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Number of Shares | ||||
Beginning balance (in shares) | 5,021,068 | 7,010,887 | 6,784,448 | |
Granted (in shares) | 700,000 | 0 | 1,256,200 | |
Exercised (in shares) | (1,194,471) | (1,486,218) | (876,121) | |
Canceled (in shares) | (67,986) | (503,601) | (153,640) | |
Ending balance (in shares) | 4,458,611 | 5,021,068 | 7,010,887 | 6,784,448 |
Exercisable at December 31, 2019 (in shares) | 2,818,731 | |||
Weighted Average Exercise Price | ||||
Beginning balance (in usd per share) | $ 7.30 | $ 6.36 | $ 4.65 | |
Granted (in usd per share) | 33.98 | 0 | 11.92 | |
Exercised (in usd per share) | 4.11 | 2.10 | 1.27 | |
Canceled (in usd per share) | 10.17 | 9.51 | 7.29 | |
Ending balance (in usd per share) | 12.30 | $ 7.30 | $ 6.36 | $ 4.65 |
Exercisable at December 31, 2019 (in usd per share) | $ 7.51 | |||
Weighted Average Remaining Contractual Term (Years) | ||||
Beginning balance (in years) | 5 years 9 months 18 days | 6 years 4 months 24 days | 6 years 7 months 6 days | 6 years 6 months |
Ending balance (in years) | 5 years 9 months 18 days | 6 years 4 months 24 days | 6 years 7 months 6 days | 6 years 6 months |
Exercisable at December 31, 2019 (in years) | 5 years 8 months 12 days | |||
Aggregate Intrinsic Value (in thousands) | ||||
Beginning balance | $ 97,440 | $ 176,122 | $ 44,259 | |
Exercised | 44,081 | 41,606 | 14,807 | |
Ending balance | 115,501 | $ 97,440 | $ 176,122 | $ 44,259 |
Exercisable at December 31, 2019 | $ 86,536 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Restricted Stock Unit Activity (Details) - Restricted stock units - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Number of Shares | |||
Non-vested outstanding, beginning balance (in shares) | 1,175,049 | 731,975 | 0 |
Granted (in shares) | 436,912 | 622,166 | 738,055 |
Vesting of restricted stock units (in shares) | (521,460) | (143,390) | (4,930) |
Canceled (in shares) | (67,666) | (35,702) | (1,150) |
Non-vested outstanding, ending balance (in shares) | 1,022,835 | 1,175,049 | 731,975 |
Weighted Average Grant Date Fair Value | |||
Non-vested outstanding, beginning balance (in usd per share) | $ 26.04 | $ 22.16 | $ 0 |
Granted (in usd per share) | 40.70 | 29.60 | 22.15 |
Vested (in usd per share) | 27.81 | 22.19 | 20.24 |
Canceled (in usd per share) | 26.38 | 23.97 | 21.40 |
Non-vested outstanding, ending balance (in usd per share) | $ 31.39 | $ 26.04 | $ 22.16 |
Stock-Based Compensation - Sc_2
Stock-Based Compensation - Schedule of Stock-based Compensation Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense | $ 16,443 | $ 16,054 | $ 12,976 |
Stock-based compensation expense related to stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense | 3,408 | 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 | 12,667 | 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 | 368 | 393 | 222 |
Stock-based compensation expense related to stock option modifications | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense | $ 0 | $ 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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense | $ 16,443 | $ 16,054 | $ 12,976 |
Subscriptions | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense | 647 | 514 | 575 |
Professional services | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense | 2,748 | 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 | 4,742 | 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 | 3,480 | 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 | $ 4,826 | $ 7,934 | $ 5,051 |
Stockholders' Equity (Detail)
Stockholders' Equity (Detail) | 12 Months Ended | |
Dec. 31, 2019vote$ / sharesshares | Dec. 31, 2018$ / sharesshares | |
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) | 34,525,386 | 29,626,054 |
Common stock, shares outstanding (in shares) | 34,525,386 | 29,626,054 |
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] | ||
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) | 32,942,636 | 34,290,383 |
Common stock, shares outstanding (in shares) | 32,942,636 | 34,290,383 |
Number of votes entitled to stockholders | vote | 10 |
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, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Numerator: | |||||||||||
Net loss | $ (10,797) | $ (14,650) | $ (10,051) | $ (15,216) | $ (13,903) | $ (15,028) | $ (10,967) | $ (9,553) | $ (50,714) | $ (49,451) | $ (31,007) |
Accretion of dividends on convertible preferred stock | 0 | 0 | 357 | ||||||||
Net loss attributable to common stockholders | $ (50,714) | $ (49,451) | $ (31,364) | ||||||||
Denominator | |||||||||||
Weighted average common shares outstanding, basic and diluted (in shares) | 65,479,327 | 62,140,684 | 49,529,833 | ||||||||
Net loss per share attributable to common stockholders, basic and diluted (in usd per share) | $ (0.77) | $ (0.80) | $ (0.63) |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Stock options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Convertible preferred stock (in shares) | 4,458,611 | 5,021,068 | 7,010,887 |
Restricted stock units | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Convertible preferred stock (in shares) | 1,022,835 | 1,175,049 | 731,975 |
Leases and Other Commitments -
Leases and Other Commitments - Components of Lease Expense (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 9,733 |
Amortization of right-of-use assets | 700 |
Interest on lease liabilities | 108 |
Short-term lease cost | 462 |
Variable lease cost | 409 |
Total | $ 11,412 |
Leases and Other Commitments _2
Leases and Other Commitments - Supplemental Balance Sheet Information (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Operating Leases | |
Operating ROU assets | $ 24,205 |
Operating lease liability, current | 3,836 |
Operating lease liability, net of current portion | 44,416 |
Total operating lease liabilities | 48,252 |
Finance Leases | |
Property and equipment, at cost | 4,475 |
Accumulated depreciation | (703) |
Property and equipment, net | 3,772 |
Finance lease liability, current | 1,447 |
Finance lease liability, net of current portion | 2,375 |
Total finance lease liabilities | $ 3,822 |
Operating leases, weighted average remaining lease term | 11 years 4 months 24 days |
Finance leases, weighted average remaining lease term | 2 years 6 months |
Operating leases, weighted average remaining discount rate | 9.80% |
Finance leases, weighted average remaining discount rate | 5.50% |
Leases and Other Commitments _3
Leases and Other Commitments - Supplemental Cash Flow Information (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating cash outflows for operating leases | $ 6,413 |
Operating cash outflows for finance leases | 108 |
Financing cash outflows for finance leases | 653 |
ROU assets obtained in exchange for operating lease obligations | 523 |
ROU assets obtained in exchange for finance lease obligations | $ 4,475 |
Leases and Other Commitments _4
Leases and Other Commitments - Maturities of Lease Liabilities (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Operating Leases | |
2020 | $ 3,781 |
2021 | 6,896 |
2022 | 7,007 |
2023 | 7,050 |
2024 | 7,408 |
Thereafter | 57,884 |
Lessee, Operating Lease, Liability, Payments, Due, Total | 90,026 |
Less: imputed interest | (41,774) |
Total | 48,252 |
Finance Leases | |
2020 | 1,620 |
2021 | 1,620 |
2022 | 859 |
2023 | 0 |
2024 | 0 |
Thereafter | 0 |
Total lease payments | 4,099 |
Less: imputed interest | (277) |
Total | $ 3,822 |
Leases and Other Commitments _5
Leases and Other Commitments - Summary of Future Minimum Lease Payments (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Office Leases | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2019 | $ 6,985 |
2020 | 6,371 |
2021 | 8,331 |
2022 | 6,939 |
2023 | 6,987 |
Thereafter | 65,151 |
Total | 100,764 |
Total | 100,764 |
Equipment Leases | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2019 | 216 |
2020 | 22 |
2021 | 0 |
2022 | 0 |
2023 | 0 |
Thereafter | 0 |
Total | 238 |
Total | 238 |
Lease Related Commitments | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2019 | 29,587 |
2020 | 0 |
2021 | 0 |
2022 | 0 |
2023 | 0 |
Thereafter | 0 |
Total | 29,587 |
Tenant Improvement Allowance | (14,441) |
Total | $ 15,146 |
Leases and Other Commitments _6
Leases and Other Commitments - Additional Information (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Feb. 28, 2019ft² | Dec. 31, 2018USD ($) | Apr. 30, 2018ft² | |
Debt Instrument [Line Items] | ||||
Operating leases, weighted average remaining lease term | 11 years 4 months 24 days | |||
Number of square feet | ft² | 28,805 | 176,222 | ||
Term of lease | 150 months | |||
Payment of royalty fees | $ 0.3 | |||
Outstanding letters of credit | $ 10.5 | $ 10.5 | ||
Minimum | ||||
Debt Instrument [Line Items] | ||||
Operating leases, weighted average remaining lease term | 1 year | |||
Maximum | ||||
Debt Instrument [Line Items] | ||||
Operating leases, weighted average remaining lease term | 12 years | |||
Renewal term | 5 years |
Segment and Geographic Inform_3
Segment and Geographic Information - Summary of Revenues By Geography (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total revenue | $ 68,618 | $ 66,155 | $ 65,275 | $ 60,304 | $ 60,216 | $ 54,948 | $ 59,883 | $ 51,696 | $ 260,352 | $ 226,743 | $ 176,737 |
Domestic | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total revenue | 176,187 | 161,716 | 128,997 | ||||||||
International | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total revenue | $ 84,165 | $ 65,027 | $ 47,740 |
Segment and Geographic Inform_4
Segment and Geographic Information - Additional Information (Detail) | 3 Months Ended |
Dec. 31, 2019 | |
Sales Revenue, Net | Geographic Concentration Risk | |
Segment Reporting Information [Line Items] | |
Concentration risk percentage | 12.20% |
Retirement Plans (Details)
Retirement Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
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 | $ 5.5 | $ 4.7 | $ 3.3 |
Foreign Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Contribution expense related to employer matching contributions | $ 1.5 | $ 1.3 | $ 0.9 |
Selected Quarterly Informatio_3
Selected Quarterly Information (Unaudited) - Quarterly Financial Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue: | |||||||||||
Total revenue | $ 68,618 | $ 66,155 | $ 65,275 | $ 60,304 | $ 60,216 | $ 54,948 | $ 59,883 | $ 51,696 | $ 260,352 | $ 226,743 | $ 176,737 |
Cost of revenue: | |||||||||||
Total cost of revenue | 22,773 | 23,951 | 23,051 | 24,066 | 22,210 | 20,092 | 21,574 | 21,049 | 93,841 | 84,925 | 64,597 |
Gross profit | 45,845 | 42,204 | 42,224 | 36,238 | 38,006 | 34,856 | 38,309 | 30,647 | 166,511 | 141,818 | 112,140 |
Operating expenses: | |||||||||||
Sales and marketing | 31,254 | 27,603 | 29,992 | 28,591 | 30,177 | 25,467 | 27,384 | 22,964 | 117,440 | 105,992 | 81,966 |
Research and development | 15,625 | 15,697 | 12,765 | 13,956 | 12,332 | 11,737 | 10,785 | 9,870 | 58,043 | 44,724 | 34,835 |
General and administrative | 12,028 | 11,191 | 9,261 | 9,016 | 8,799 | 12,537 | 8,425 | 8,060 | 41,496 | 37,821 | 27,150 |
Total operating expenses | 58,907 | 54,491 | 52,018 | 51,563 | 51,308 | 49,741 | 46,594 | 40,894 | 216,979 | 188,537 | 143,951 |
Operating loss | (13,062) | (12,287) | (9,794) | (15,325) | (13,302) | (14,885) | (8,285) | (10,247) | (50,468) | (46,719) | (31,811) |
Other (income) expense: | |||||||||||
Other (income) expense, net | (2,822) | 2,262 | (79) | (302) | 510 | 110 | 2,593 | (918) | (941) | 2,295 | (2,038) |
Interest expense | 131 | 96 | 69 | 71 | 64 | 67 | 54 | 13 | 367 | 198 | 473 |
Total other (income) expense | (2,691) | 2,358 | (10) | (231) | 574 | 177 | 2,647 | (905) | (574) | 2,493 | (1,565) |
Loss before income taxes | (10,371) | (14,645) | (9,784) | (15,094) | (13,876) | (15,062) | (10,932) | (9,342) | (49,894) | (49,212) | (30,246) |
Income tax expense (benefit) | 426 | 5 | 267 | 122 | 27 | (34) | 35 | 211 | 820 | 239 | 761 |
Net loss | (10,797) | (14,650) | (10,051) | (15,216) | (13,903) | (15,028) | (10,967) | (9,553) | (50,714) | (49,451) | (31,007) |
Stock-based compensation expense | 16,443 | 16,054 | 12,976 | ||||||||
Subscriptions | |||||||||||
Revenue: | |||||||||||
Total revenue | 42,108 | 37,774 | 36,860 | 34,557 | 35,108 | 30,905 | 33,047 | 26,952 | 151,299 | 126,012 | 91,514 |
Cost of revenue: | |||||||||||
Total cost of revenue | 4,993 | 4,484 | 4,036 | 3,585 | 3,284 | 3,261 | 2,824 | 2,628 | 17,098 | 11,997 | 9,379 |
Professional services | |||||||||||
Revenue: | |||||||||||
Total revenue | 26,510 | 28,381 | 28,415 | 25,747 | 25,108 | 24,043 | 26,836 | 24,744 | 109,053 | 100,731 | 85,223 |
Cost of revenue: | |||||||||||
Total cost of revenue | $ 17,780 | $ 19,467 | $ 19,015 | $ 20,481 | $ 18,926 | 16,831 | $ 18,750 | $ 18,421 | $ 76,743 | $ 72,928 | $ 55,218 |
Chief Executive Officer | 2007 Stock Option Plan | |||||||||||
Other (income) expense: | |||||||||||
Stock-based compensation expense | $ 4,500 |
Selected Quarterly Informatio_4
Selected Quarterly Information (Unaudited) - Revenue by Services (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue from External Customer [Line Items] | |||||||||||
Total revenue | $ 68,618 | $ 66,155 | $ 65,275 | $ 60,304 | $ 60,216 | $ 54,948 | $ 59,883 | $ 51,696 | $ 260,352 | $ 226,743 | $ 176,737 |
Calculated under Revenue Guidance in Effect before Topic 606 | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total revenue | 70,470 | 69,387 | 66,911 | 59,579 | 266,347 | ||||||
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total revenue | (1,852) | (3,232) | (1,636) | 725 | (5,995) | ||||||
SaaS subscriptions | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total revenue | 26,381 | 24,573 | 22,796 | 21,278 | 95,028 | ||||||
SaaS subscriptions | Calculated under Revenue Guidance in Effect before Topic 606 | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total revenue | 25,822 | 23,659 | 22,014 | 20,611 | |||||||
SaaS subscriptions | Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total revenue | 559 | 914 | 782 | 667 | |||||||
Term license subscriptions | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total revenue | 11,569 | 9,199 | 10,103 | 9,557 | 40,428 | ||||||
Term license subscriptions | Calculated under Revenue Guidance in Effect before Topic 606 | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total revenue | 17,256 | 16,776 | 16,011 | 12,974 | |||||||
Term license subscriptions | Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total revenue | (5,687) | (7,577) | (5,908) | (3,417) | |||||||
Maintenance and support | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total revenue | 4,158 | 4,002 | 3,961 | 3,722 | 15,843 | ||||||
Maintenance and support | Calculated under Revenue Guidance in Effect before Topic 606 | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total revenue | 1,240 | 1,164 | 1,234 | 1,324 | |||||||
Maintenance and support | Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total revenue | 2,918 | 2,838 | 2,727 | 2,398 | |||||||
Professional services | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total revenue | 26,510 | 28,381 | 28,415 | 25,747 | $ 25,108 | $ 24,043 | $ 26,836 | $ 24,744 | 109,053 | $ 100,731 | $ 85,223 |
Professional services | Calculated under Revenue Guidance in Effect before Topic 606 | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total revenue | 26,152 | 27,788 | 27,652 | 24,670 | 106,262 | ||||||
Professional services | Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total revenue | $ 358 | $ 593 | $ 763 | $ 1,077 | $ 2,791 |
Subsequent Events (Details)
Subsequent Events (Details) | Jan. 01, 2020USD ($)ft² | Jan. 31, 2020USD ($) | Feb. 28, 2019ft² | Apr. 30, 2018ft² |
Subsequent Event [Line Items] | ||||
Number of square feet | ft² | 28,805 | 176,222 | ||
Subsequent Event | Lease Second Amendment | ||||
Subsequent Event [Line Items] | ||||
Number of square feet | ft² | 34,158 | |||
Monthly base rent | $ | $ 87,388 | |||
Lease term for initial monthly rent | 27 months | |||
Subsequent Event | Robotic Process Automation Platform | ||||
Subsequent Event [Line Items] | ||||
Acquisition price | $ | $ 7,000,000 |
Uncategorized Items - appn-2019
Label | Element | Value |
Accounting Standards Update 2014-09 [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 60,941,000 |
Accounting Standards Update 2014-09 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 60,941,000 |