Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 18, 2019 | Jun. 30, 2018 | |
Entity Information [Line Items] | |||
Entity Registrant Name | WORKIVA INC | ||
Entity Central Index Key | 1,445,305 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Amendment Flag | false | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 782.1 | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Class A Common Stock | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 34,859,096 | ||
Class B Common Stock | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 9,445,596 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets | ||
Cash and cash equivalents | $ 77,584 | $ 60,333 |
Marketable securities | 20,764 | 16,364 |
Accounts receivable, net of allowance for doubtful accounts of $956 and $388 at December 31, 2018 and December 31, 2017, respectively | 65,107 | 28,800 |
Deferred commissions | 8,178 | 2,376 |
Other receivables | 1,181 | 975 |
Prepaid expenses and other | 4,417 | 6,444 |
Total current assets | 177,231 | 115,292 |
Property and equipment, net | 41,468 | 40,444 |
Deferred commissions, non-current | 10,569 | 0 |
Intangible assets, net | 1,266 | 1,118 |
Other assets | 577 | 861 |
Total assets | 231,111 | 157,715 |
Current liabilities | ||
Accounts payable | 5,461 | 3,060 |
Accrued expenses and other current liabilities | 36,353 | 20,429 |
Deferred revenue | 148,545 | 104,684 |
Current portion of capital lease and financing obligations | 1,222 | 1,168 |
Total current liabilities | 191,581 | 129,341 |
Deferred revenue, non-current | 25,171 | 22,709 |
Other long-term liabilities | 6,891 | 4,174 |
Capital lease and financing obligations | 17,208 | 18,425 |
Total liabilities | 240,851 | 174,649 |
Stockholders’ deficit | ||
Preferred stock, $0.001 par value per share, 100,000,000 shares authorized, no shares issued and outstanding | 0 | 0 |
Additional paid-in-capital | 297,145 | 248,289 |
Accumulated deficit | (307,027) | (265,337) |
Accumulated other comprehensive income | 98 | 72 |
Total stockholders’ deficit | (9,740) | (16,934) |
Total liabilities and stockholders’ deficit | 231,111 | 157,715 |
Class A Common Stock | ||
Stockholders’ deficit | ||
Common stock | 34 | 32 |
Class B Common Stock | ||
Stockholders’ deficit | ||
Common stock | $ 10 | $ 10 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Allowance for doubtful accounts | $ 956 | $ 388 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 100,000,000 | 100,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Class A Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 34,498,391 | 32,165,407 |
Common stock, shares outstanding | 34,498,391 | 32,165,407 |
Class B Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 9,545,596 | 10,203,371 |
Common stock, shares outstanding | 9,545,596 | 10,203,371 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenue | |||||||||||
Total revenue | $ 64,435 | $ 60,873 | $ 59,130 | $ 59,906 | $ 54,506 | $ 52,068 | $ 49,391 | $ 51,904 | $ 244,344 | $ 207,869 | $ 178,646 |
Cost of revenue | |||||||||||
Total cost of revenue | 17,394 | 15,659 | 16,296 | 16,511 | 16,089 | 15,652 | 14,286 | 14,218 | 65,860 | 60,245 | 51,625 |
Gross profit | 47,041 | 45,214 | 42,834 | 43,395 | 38,417 | 36,416 | 35,105 | 37,686 | 178,484 | 147,624 | 127,021 |
Operating expenses | |||||||||||
Research and development | 20,773 | 19,984 | 20,718 | 20,127 | 18,870 | 17,527 | 16,239 | 15,536 | 81,602 | 68,172 | 57,438 |
Sales and marketing | 23,011 | 24,068 | 22,252 | 21,006 | 21,949 | 23,712 | 19,787 | 18,713 | 90,337 | 84,161 | 80,466 |
General and administrative | 11,047 | 11,864 | 21,654 | 11,768 | 12,271 | 8,959 | 8,943 | 9,421 | 56,333 | 39,594 | 32,695 |
Total operating expenses | 54,831 | 55,916 | 64,624 | 52,901 | 53,090 | 50,198 | 44,969 | 43,670 | 228,272 | 191,927 | 170,599 |
Loss from operations | (7,790) | (10,702) | (21,790) | (9,506) | (14,673) | (13,782) | (9,864) | (5,984) | (49,788) | (44,303) | (43,578) |
Interest expense | (480) | (448) | (449) | (450) | (451) | (464) | (475) | (455) | (1,827) | (1,845) | (1,875) |
Other income, net | 753 | 203 | 492 | 343 | 797 | 198 | 176 | 612 | 1,791 | 1,783 | 1,500 |
Loss before provision for income taxes | (7,517) | (10,947) | (21,747) | (9,613) | (14,327) | (14,048) | (10,163) | (5,827) | (49,824) | (44,365) | (43,953) |
Provision for income taxes | 204 | 17 | 21 | 5 | (6) | 25 | 33 | 9 | 247 | 61 | 24 |
Net loss | $ (7,721) | $ (10,964) | $ (21,768) | $ (9,618) | $ (14,321) | $ (14,073) | $ (10,196) | $ (5,836) | $ (50,071) | $ (44,426) | $ (43,977) |
Net loss per common share: | |||||||||||
Basic and diluted (in dollars per share) | $ (0.17) | $ (0.25) | $ (0.50) | $ (0.22) | $ (0.34) | $ (0.34) | $ (0.25) | $ (0.14) | $ (1.15) | $ (1.07) | $ (1.08) |
Weighted-average common shares outstanding - basic and diluted (in shares) | 44,472,672 | 43,973,428 | 43,234,655 | 42,858,756 | 42,108,764 | 41,815,139 | 41,429,691 | 41,108,611 | 43,640,408 | 41,618,838 | 40,671,133 |
Subscription and support | |||||||||||
Revenue | |||||||||||
Total revenue | $ 53,779 | $ 51,306 | $ 48,837 | $ 46,470 | $ 45,549 | $ 43,214 | $ 40,980 | $ 39,540 | $ 200,392 | $ 169,283 | $ 143,120 |
Cost of revenue | |||||||||||
Total cost of revenue | 8,637 | 8,139 | 8,637 | 8,802 | 8,779 | 8,472 | 7,758 | 7,637 | 34,215 | 32,646 | 27,895 |
Professional services | |||||||||||
Revenue | |||||||||||
Total revenue | 10,656 | 9,567 | 10,293 | 13,436 | 8,957 | 8,854 | 8,411 | 12,364 | 43,952 | 38,586 | 35,526 |
Cost of revenue | |||||||||||
Total cost of revenue | $ 8,757 | $ 7,520 | $ 7,659 | $ 7,709 | $ 7,310 | $ 7,180 | $ 6,528 | $ 6,581 | $ 31,645 | $ 27,599 | $ 23,730 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (50,071) | $ (44,426) | $ (43,977) |
Other comprehensive income (loss), net of tax | |||
Foreign currency translation adjustment, net of income tax (expense) of (9), ($2), and ($13) for the years ended December 31, 2018, 2017 and 2016, respectively | 26 | (159) | 18 |
Unrealized gain (loss) on available-for-sale securities, net of income tax (expense) benefit of $0, $2, and ($19) for the years ended December 31, 2018, 2017 and 2016, respectively | 0 | (60) | 32 |
Other comprehensive income (loss), net of tax | 26 | (219) | 50 |
Comprehensive loss | $ (50,045) | $ (44,645) | $ (43,927) |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Foreign currency translation adjustment, tax (expense) benefit | $ (9) | $ (2) | $ (13) |
Unrealized gain on available-for-sale securities, tax benefit (expense) | $ 0 | $ 2 | $ (19) |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) - USD ($) $ in Thousands | Total | Common Stock (Class A and B) | Additional Paid-in-Capital | Accumulated Other Comprehensive Income | Accumulated Deficit |
Balance at the beginning of the period (in shares) at Dec. 31, 2015 | 40,948,000 | ||||
Beginning of the period at Dec. 31, 2015 | $ 25,719 | $ 41 | $ 202,371 | $ 241 | $ (176,934) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation expense | 14,247 | 14,247 | |||
Issuance of common stock upon exercise of stock options (in shares) | 374,000 | ||||
Issuance of common stock upon exercise of stock options | 1,597 | $ 0 | 1,597 | ||
Tax withholdings related to net share settlements of stock-based compensation awards (in shares) | (61,000) | ||||
Tax withholdings related to net share settlements of stock-based compensation awards | (761) | (761) | |||
Net loss | (43,977) | (43,977) | |||
Other comprehensive income | 50 | 50 | |||
Balance at the end of the period (in shares) at Dec. 31, 2016 | 41,261,000 | ||||
End of the period at Dec. 31, 2016 | (3,125) | $ 41 | 217,454 | 291 | (220,911) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation expense | 19,476 | 19,476 | |||
Issuance of common stock upon exercise of stock options (in shares) | 1,159,000 | ||||
Issuance of common stock upon exercise of stock options | 12,485 | $ 1 | 12,484 | ||
Issuance of restricted stock units (in shares) | 30,000 | ||||
Tax withholdings related to net share settlements of stock-based compensation awards (in shares) | (81,000) | ||||
Tax withholdings related to net share settlements of stock-based compensation awards | (1,125) | (1,125) | |||
Net loss | (44,426) | (44,426) | |||
Other comprehensive income | (219) | (219) | |||
Balance at the end of the period (in shares) at Dec. 31, 2017 | 42,369,000 | ||||
End of the period at Dec. 31, 2017 | (16,934) | $ 42 | 248,289 | 72 | (265,337) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation expense | $ 30,841 | 30,841 | |||
Issuance of common stock upon exercise of stock options (in shares) | 1,480,738 | 1,481,000 | |||
Issuance of common stock upon exercise of stock options | $ 16,662 | $ 2 | 16,660 | ||
Issuance of common stock under employee stock purchase plan (in shares) | 179,000 | ||||
Issuance of common stock under employee stock purchase plan | 3,216 | 3,216 | |||
Issuance of restricted stock units (in shares) | 99,000 | ||||
Tax withholdings related to net share settlements of stock-based compensation awards | (1,861) | $ (84) | (1,861) | ||
Net loss | (50,071) | (50,071) | |||
Other comprehensive income | 26 | 26 | |||
Balance at the end of the period (in shares) at Dec. 31, 2018 | 44,044,000 | ||||
End of the period at Dec. 31, 2018 | $ (9,740) | $ 44 | $ 297,145 | $ 98 | $ (307,027) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities | |||
Net loss | $ (50,071) | $ (44,426) | $ (43,977) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities | |||
Depreciation and amortization | 3,781 | 3,546 | 3,820 |
Stock-based compensation expense | 30,841 | 19,476 | 14,247 |
Provision for (recovery of) doubtful accounts | 550 | (517) | 185 |
Realized gain on sale of available-for-sale securities, net | 0 | 0 | (6) |
(Accretion) amortization of premiums and discounts on marketable securities, net | (141) | 101 | 147 |
Recognition of deferred government grant obligation | 0 | (1,578) | (1,141) |
Deferred income tax | (9) | 0 | (32) |
Changes in assets and liabilities: | |||
Accounts receivable | (20,216) | (5,546) | (7,101) |
Deferred commissions | (11,155) | (498) | (497) |
Other receivables | (205) | 577 | (732) |
Prepaid expenses and other | 2,020 | 2,952 | (5,513) |
Other assets | 276 | 618 | (654) |
Accounts payable | 1,699 | 2,206 | (3,930) |
Deferred revenue | 40,144 | 29,367 | 34,211 |
Accrued expenses and other liabilities | 8,886 | (758) | 604 |
Net cash provided by (used in) operating activities | 6,400 | 5,520 | (10,369) |
Cash flows from investing activities | |||
Purchase of property and equipment | (1,122) | (1,188) | (1,901) |
Purchase of marketable securities | (24,659) | (14,369) | (1,301) |
Maturities of marketable securities | 20,400 | 9,281 | 0 |
Sale of marketable securities | 0 | 0 | 7,197 |
Purchase of intangible assets | (251) | (197) | (190) |
Net cash (used in) provided by investing activities | (5,632) | (6,473) | 3,805 |
Cash flows from financing activities | |||
Proceeds from option exercises | 16,662 | 12,485 | 1,597 |
Taxes paid related to net share settlements of stock-based compensation awards | (1,861) | (1,125) | (761) |
Proceeds from shares issued in connection with employee stock purchase plan | 3,216 | 0 | 0 |
Repayment of other long-term debt | 0 | (73) | (18) |
Principal payments on capital lease and financing obligations | (1,163) | (1,435) | (1,863) |
Proceeds from government grants | 22 | 51 | 183 |
Deferred financing costs | 0 | (81) | (33) |
Net cash provided by (used in) financing activities | 16,876 | 9,822 | (895) |
Effect of foreign exchange rates on cash | (393) | 183 | (10) |
Net increase (decrease) in cash and cash equivalents | 17,251 | 9,052 | (7,469) |
Cash and cash equivalents at beginning of year | 60,333 | 51,281 | 58,750 |
Cash and cash equivalents at end of year | 77,584 | 60,333 | 51,281 |
Supplemental cash flow disclosure | |||
Cash paid for interest | 1,734 | 1,627 | 1,835 |
Cash paid for income taxes, net of refunds | 67 | 42 | 47 |
Supplemental disclosure of noncash investing and financing activities | |||
Allowance for tenant improvements | 2,192 | 0 | 481 |
Purchases of property and equipment, accrued but not paid | $ 1,287 | $ 0 | $ 0 |
Organization and Significant Ac
Organization and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Significant Accounting Policies | Organization and Significant Accounting Policies Organization Workiva Inc., a Delaware corporation, and its wholly-owned subsidiaries (the “Company” or “we” or “us”) is a leading provider of cloud-based solutions for connected data, reporting and compliance. Our platform, Wdesk, is used by thousands of public and private companies, government agencies and higher-education institutions. Wdesk offers controlled collaboration, data linking, data integrations, granular permissions, process management and a full audit trail. We sell to customers in the areas of: finance and accounting; risk and controls; regulatory reporting; financial close, management and performance reporting; and statutory and corporate tax reporting. Our operational headquarters are located in Ames, Iowa, with additional offices located in the United States, Europe, the Asia-Pacific region and Canada. Basis of Presentation and Principles of Consolidation The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles and include the accounts of Workiva Inc. and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Additionally, certain prior year amounts have been reclassified for consistency with the current year presentation. The reclassification of the prior period amounts were not material to the previously reported consolidated financial statements. Seasonality has affected our revenue, expenses and cash flows from operations. Revenue from professional services has been higher in the first quarter as many of our customers file their 10-K in the first calendar quarter. Sales and marketing expense has been higher in the third quarter due to our annual user conference in September. In addition, the timing of the payments for cash bonuses to employees during the first and fourth calendar quarters may result in some seasonality in operating cash flow. Foreign Currency We translate the financial statements of our foreign subsidiaries, which have a functional currency in the respective country’s local currency, to U.S. dollars using month-end exchange rates for assets and liabilities and average exchange rates for revenue, costs and expenses. Translation gains and losses are recorded in accumulated other comprehensive income as a component of stockholders’ deficit. Gains and losses resulting from foreign currency transactions that are denominated in currencies other than the entity's functional currency are included within “Other income, net” on the consolidated statements of operations. We recorded $289,000, $(372,000) and $67,000 of transaction gains (losses) during the years ended December 31, 2018, 2017 and 2016, respectively. Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States requires us to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. We base our estimates on historical experience and various other assumptions believed to be reasonable. These estimates include, but are not limited to, the allowance for doubtful accounts, the determination of the relative selling prices of our services, the measurement of material rights, health insurance claims incurred but not yet reported, valuation of available-for-sale marketable securities, useful lives of deferred contract costs, intangible assets and property and equipment, income taxes and certain assumptions used in the valuation of equity awards. While these estimates are based on our best knowledge of current events and actions that may affect us in the future, actual results may differ materially from these estimates. Cash and Cash Equivalents Cash consists of cash on deposit with banks that is stated at cost, which approximates fair value. We invest our excess cash primarily in highly liquid money market funds and marketable securities. We classify all highly liquid investments with stated maturities of three months or less from date of purchase as cash equivalents and all highly liquid investments with stated maturities of greater than three months as marketable securities. Marketable Securities Our marketable securities consist of commercial paper, U.S. corporate debt securities, and U.S. treasury debt securities. We classify our marketable securities as available-for-sale at the time of purchase and reevaluate such classification as of each balance sheet date. We may sell these securities at any time for use in current operations even if they have not yet reached maturity. As a result, we classify our investments, including securities with maturities beyond twelve months as current assets in the accompanying consolidated balance sheets. Available-for-sale securities are recorded at fair value each reporting period. Unrealized gains and losses are excluded from earnings and recorded as a separate component within “Accumulated other comprehensive income” on the consolidated balance sheets until realized. Dividend income is reported within “Other income, net” on the consolidated statements of operations. We evaluate our investments to assess whether those with unrealized loss positions are other than temporarily impaired. We consider impairments to be other than temporary if they are related to deterioration in credit risk or if it is likely we will sell the securities before the recovery of their cost basis. Realized gains and losses and declines in value judged to be other than temporary are determined based on the specific identification method and are reported in “Other income, net” on the consolidated statements of operations. Fair Value of Financial Instruments Our financial assets, which include cash equivalents and marketable securities, are measured and recorded at fair value on a recurring basis. Our other current financial assets and our other current financial liabilities have fair values that approximate their carrying value due to their short-term maturities. Concentration of Credit Risk Financial instruments that potentially subject us to concentrations of credit risk consist principally of cash and cash equivalents and accounts receivable. We place our cash and cash equivalents with high credit-quality financial institutions. Such deposits may be in excess of federally insured limits. To date, we have not experienced any losses on our cash and cash equivalents. We perform periodic evaluations of the relative credit standing of the financial institutions. Our accounts receivable are derived primarily from customers located in North America. We perform ongoing credit evaluations of our customers’ financial condition and require no collateral from our customers. We maintain an allowance for doubtful accounts receivable based upon the expected collectability of accounts receivable balances. We did not have a significant concentration of accounts receivable from any single customer or from customers in any single country outside of the United States at December 31, 2018 or 2017. Deferred Commissions Sales commissions earned by our sales force are considered incremental and recoverable costs of obtaining a contract with a customer. Sales commissions paid where the amortization period is one year or less are expensed as incurred. All other sales commissions are deferred and then amortized on a straight-line basis over a period of benefit that we have determined to be three years. We determined the period of benefit by taking into consideration our standard contract terms and conditions, rate of technological change and other factors. Amortization expense is included in sales and marketing expense in the accompanying consolidated statements of operations. Property and Equipment, net Property and equipment is stated at cost, net of accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful lives of the respective assets, generally three ten Revenue Recognition We generate revenue through the sale of subscriptions to our cloud-based software and the delivery of professional services. We recognize revenue when control of these services is transferred to our customers in an amount that reflects the consideration we expect to be entitled to in exchange for those services. We determine revenue recognition through the following steps: • Identification of the contract, or contracts, with a customer • Identification of the per formance obligations in the contract • Determin ation of the transaction price • Allocation of the transaction price to the perf ormance obligations in the contract • Recog nition of revenue when, or as, we satisfy a performance obligation We report revenue net of sales and other taxes collected from customers to be remitted to government authorities. Subscription and Support Revenue We recognize subscription and support revenue on a ratable basis over the contract term beginning on the date that our service is made available to the customer. Our subscription contracts are generally three Professional Services Revenue and Customer Options Professional services revenues primarily consist of fees for document set up, XBRL tagging, and consulting with our customers on business processes and best practices for using Wdesk. We have determined that an agreement to purchase these professional services constitutes an option to purchase services in accordance with ASC 606 rather than an agreement that creates enforceable rights and obligations because of the customer's contractual right to cancel services that have not yet been used. In the limited case of agreements where we determined that the option provides the customer with a material right, we allocate a portion of the transaction price to the material right. Professional service agreements that do not contain a material right are accounted for when the customer exercises its option to purchase additional services. Revenue is recognized for document set ups when the service is complete and control has transferred to the customer. Revenues from XBRL tagging and consulting services are recognized as the services are performed. Contracts with Multiple Performance Obligations Some of our contracts with customers contain multiple performance obligation in the event that we determine a material right exists. For these contracts, we account for the individual performance obligations separately when they are both capable of being distinct, whereby the customer can benefit from the service either on its own or together with other resources that are readily available from third parties or from us, and are distinct in the context of the contract, whereby the transfer of the services is separately identifiable from other promises in the contract. If these criteria are not met, the promised services are accounted for as a combined performance obligation. The transaction price is allocated to the separate performance obligations on a relative standalone selling price basis. We determine the standalone selling prices based on our overall pricing objectives, taking into consideration market conditions and entity-specific factors, including the size of our arrangements, length of term, customer demographics and the numbers and types of users within our arrangements. Deferred Revenue We typically invoice our customers for subscription and support fees in advance on a quarterly, annual, two- or three-year basis, with payment due at the start of the subscription term. Unpaid invoice amounts for non-cancelable services starting in future periods are included in accounts receivable and deferred revenue. The portion of deferred revenue that we anticipate will be recognized after the succeeding twelve-month period is recorded as non-current deferred revenue, and the remaining portion is recorded as current deferred revenue. Customer Deposits As an agreement to purchase professional services constitutes a customer option, fees received in advance of these services being performed are considered customer deposits and are included in accrued expenses and other current liabilities on the consolidated balance sheets. Unpaid invoice amounts for these professional services starting in future periods are excluded from accounts receivable and accrued expenses and other current liabilities. Cost of Revenue Cost of revenue consists primarily of personnel and related costs directly associated with the professional services and customer success teams and training personnel, including salaries, benefits, bonuses, and stock-based compensation; the costs of contracted third-party vendors; the costs of server usage by our customers; information technology costs; and facility costs. Sales and Marketing Expenses Sales and marketing expenses consist primarily of personnel and related costs, including salaries, benefits, bonuses, commissions, travel, and stock-based compensation. Other costs included in this expense are marketing and promotional events, our annual user conference, online marketing, product marketing, information technology costs, and facility costs. Advertising costs are charged to sales and marketing expense as incurred. Advertising expense totaled $2.9 million, $2.7 million and $2.7 million for the years ended December 31, 2018, 2017 and 2016, respectively. Research and Development Expenses Research and development expenses consist primarily of personnel and related costs, including salaries, benefits, bonuses, and stock-based compensation, costs of server usage by our developers, information technology costs, and facility costs. General and Administrative Expenses General and administrative expenses consist primarily of personnel and related costs for our executive, finance, legal, human resources, and administrative personnel, including salaries, benefits, bonuses, and stock-based compensation; legal, accounting, and other professional service fees; other corporate expenses; information technology costs; and facility costs. Leases We categorize leases at their inception as either operating or capital leases and may receive renewal or expansion options, rent holidays, and leasehold improvement and other incentives on certain lease agreements. We recognize lease costs on a straight-line basis, taking into account adjustments for free or escalating rental payments, renewals at our option that are reasonably assured and deferred payment terms. Additionally, lease incentives are accounted for as a reduction of lease costs over the term of the agreement. Government Grants Government grants received are recorded as a liability on the balance sheets until all contingencies are resolved and the grant is determined to be realized. Intangible Assets We account for intangible assets under Accounting Standards Codification (ASC) 350, Goodwill and Other . Intangible assets consist of legal fees incurred for patents and are recorded at cost and amortized over the useful lives of the assets of ten years, using the straight-line method. Certain patents are in the legal application process and therefore are not currently being amortized. Accumulated amortization of patents as of December 31, 2018 and 2017 was approximately $320,000 and $218,000, respectively. Future amortization expense for legally approved patents is estimated at $113,000 per year through 2022, $96,000 in 2023 and approximately $217,000 thereafter. Impairment of Long-Lived Assets Long-lived assets, such as property, equipment, and software and intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. If circumstances require that a long-lived asset or asset group be tested for possible impairment, we first compare the undiscounted cash flows expected to be generated by that long-lived asset or asset group to its carrying amount. If the carrying amount of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying amount exceeds its fair value. Stock-Based Compensation We measure all share-based payments, including grants of options to purchase common stock and the issuance of restricted stock or restricted stock units to employees, service providers and board members, using a fair-value based method. We record forfeitures as they occur. The cost of services received from employees and non-employees in exchange for awards of equity instruments is recognized in the consolidated statement of operations based on the estimated fair value of those awards on the grant date or reporting date, if required to be remeasured, and amortized on a straight-line basis over the requisite service period. We use the Black-Scholes option-pricing model to determine the fair values of stock option awards. For restricted stock and restricted stock units, fair value is based on the closing price of our common stock on the grant date. Income Taxes We record current income taxes based on our estimates of current taxable income and provide for deferred income taxes to reflect estimated future income tax payments and receipts. We are subject to U.S. federal income taxes as well as state taxes. In addition, we are subject to taxes in the foreign jurisdictions where we operate. We account for income taxes using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, we determine deferred tax assets and liabilities on the basis of the differences between the financial statement and tax bases of assets and liabilities by using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment rate. On December 22, 2017, the U.S. federal government enacted legislation commonly referred to as the “Tax Cuts and Jobs Act” (the “TCJA”). The TCJA made widespread changes to the Internal Revenue Code, including, among other items, the introduction of a new international “Global Intangible Low-Taxed Income” (“GILTI”) regime effective January 1, 2018. Companies may adopt one of two views in regards to establishing deferred taxes in accordance with the new (“GILTI”) regime under ASC 740. Companies may account for the effects of GILTI either (1) in the period the entity becomes subject to GILTI, or (2) establish deferred taxes (similar to the guidance that currently exists with respect to basis differences that will reverse under current Subpart F rules) for basis differences that upon reversal will be subject to GILTI. We have elected to account for GILTI in the period incurred. We recognize deferred tax assets to the extent that we believe that these assets are more likely than not to be realized. In making such a determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies and results of recent operations. If we determine that we would be able to realize our deferred tax assets in the future in excess of their net recorded amount, we would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. We record uncertain tax positions in accordance with ASC 740, Income Taxes, on the basis of a two-step process in which (1) we determine whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not threshold, we recognize the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. We recognize interest and penalties related to unrecognized tax benefits on the income tax expense line in the accompanying consolidated statements of operations. Accrued interest and penalties are included on the related tax liability line in the consolidated balance sheets. Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are recorded at the invoiced amount net of an allowance for doubtful accounts. The allowance for doubtful accounts is based on our assessment of the collectability of customer accounts. We regularly review our receivables that remain outstanding past their applicable payment terms and established an allowance for potential write-offs by considering factors such as historical experience, credit quality, age of the accounts receivable balances, and current economic conditions that may affect a customer’s ability to pay. Accounts receivable deemed uncollectible are charged against the allowance once collection efforts have been exhausted. Recently Adopted Accounting Pronouncements In May 2014, the FASB issued guidance codified in ASC 606, Revenue Recognition - Revenue from Contracts with Customers (ASU 2014-09), which amends the guidance in former ASC 605, Revenue Recognition . The core principle of ASC 606 is 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. Additionally, the guidance requires improved disclosures to help users of financial statements better understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. Effective January 1, 2018, we adopted ASU 2014-09 using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018. We recognized the cumulative effect of initially applying the new revenue standard as an adjustment to the opening balance of our accumulated deficit. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. The primary impact on accounts receivables and deferred revenue of adopting the new standard relates to recording deferred revenue when payments are due in advance of our performance of subscription based contracts. This recording has resulted in an offsetting increase in accounts receivable and deferred revenue. The effect of adopting the new standard on accrued expenses and other current liabilities relates to the reclassification of amounts collected in advance related to the purchase of professional services from deferred revenue to accrued expenses and other current liabilities as these agreements to purchase professional services constitute a customer option. The primary impact of adopting the new standard on sales and marketing expense relates to the deferral of incremental commission costs of obtaining subscription contracts. Under the previous guidance, we deferred only direct and incremental commission costs to obtain a contract and amortized those costs on a straight-line basis over the lesser of 12 months or the non-cancelable term of the customer contract based on the terms of our commission arrangements. Under the new standard, we defer all incremental commission costs to obtain the contract. We amortize these costs on a straight-line basis over a period of benefit that we have determined to be three years. The adoption of ASC 606 primarily resulted in an acceleration of revenue as of December 31, 2017, which in turn reduced our existing deferred tax asset for amounts that had previously been included in deferred revenue. Additionally, the amortization of the costs of obtaining a contract has generated additional deferred tax liabilities that ultimately reduced our net deferred tax asset position. As we have provided a full valuation allowance against our net deferred tax assets in the jurisdictions impacted by the adoption of ASC 606, this aggregate impact was offset by a corresponding reduction to the valuation allowance. The cumulative effect of the changes made to our consolidated January 1, 2018 balance sheet for the adoption of ASU 2014-09 were as follows (in thousands): As of December 31, 2017 Adjustments Due to ASU 2014-09 As of January 1, 2018 Assets Accounts receivable, net $ 28,800 $ 16,900 $ 45,700 Deferred commissions 2,376 650 3,026 Deferred commissions, non-current — 4,655 4,655 Liabilities Accrued expenses and other current liabilities 20,429 6,956 27,385 Deferred revenue 104,684 6,625 111,309 Deferred revenue, non-current 22,709 243 22,952 Equity Accumulated deficit $ (265,337) $ 8,381 $ (256,956) In accordance with the new revenue standard requirements, the impact of adoption on our consolidated balance sheet as of December 31, 2018 and statement of operations for the year ended December 31, 2018 was as follows (in thousands, except per share data): As of December 31, 2018 As Reported Balances Without Adoption of ASC 606 Effect of Change Assets Accounts receivable, net 65,107 37,528 27,579 Deferred commissions 8,178 4,593 3,585 Deferred commissions, non-current 10,569 — 10,569 Liabilities Accrued expenses and other current liabilities 36,353 28,958 7,395 Deferred revenue 148,545 134,793 13,752 Deferred revenue, non-current 25,171 20,853 4,318 Equity Accumulated deficit (307,027) (323,295) 16,268 Year ended December 31, 2018 As Reported Balances Without Adoption of ASC 606 Effect of Change Revenues Subscription and support $ 200,392 $ 199,575 $ 817 Professional services 43,952 45,707 (1,755) Operating expenses Sales and marketing 90,337 99,162 (8,825) Net loss $ (50,071) $ (57,958) $ 7,887 Net loss per common share Basic and diluted $ (1.15) $ (1.33) $ 0.18 The adoption of ASC 606 had no impact on our total cash flows from operations. In May 2017, the FASB issued ASU 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting . This ASU clarifies when to account for a change to the terms or conditions of a share-based payment award as a modification. Under the new guidance, modification accounting is required only if the fair value, the vesting conditions, or the classification of the award (as equity or liability) changes as a result of the change in terms or conditions. The ASU is effective for annual periods beginning after December 15, 2017 and interim periods within those annual periods. Effective January 1, 2018, we adopted this standard. The adoption of this guidance did not have a material impact on our consolidated financial statements. In June 2018, the FASB issued ASU 2018-07, Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting . This ASU simplifies the accounting for nonemployee share-based payment transactions. Under the new guidance, equity-classified share-based payment awards issued to nonemployees will now be measured on the grant date, instead of the previous requirement to remeasure the awards through performance completion date. Awards that include performance conditions will recognize compensation cost when the achievement of the performance condition is probable, rather than upon achievement of the performance condition. Finally, the current requirement to reassess the classification (equity or liability) for nonemployee awards upon vesting will be eliminated, except for awards in the form of convertible instruments. The ASU is effective for annual periods beginning after December 15, 2018 and interim periods within those annual periods. Early adoption is permitted, including interim periods, but no earlier than the adoption of ASC 606. Effective June 20, 2018, we adopted this standard. The adoption of this new guidance did not have a material impact on our consolidated financial statements. New Accounting Pronouncements Not Yet Adopted In February 2016, the FASB issued guidance codified in ASC 842, Leases , which supersedes the guidance in former ASC 840, Leases , to increase transparency and comparability among organizations by requiring recognition of right-of-use assets and lease liabilities on the balance sheet and disclosure of key information about leasing arrangements (with the exception of short-term leases). The standard will become effective for interim and annual periods beginning after December 15, 2018, with early adoption permitted. In July 2018, the FASB issued ASU 2018-11, Leases (Topic 842): Targeted Improvements that allows entities to recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. We plan to adopt this guidance on January 1, 2019 using this new transition guidance. We currently expect to use the package of practical expedients which allows us to not (1) reassess whether any expired or existing contracts are considered or contain leases; (2) reassess the lease classification for any expired or existing leases; and (3) reassess the initial direct costs for any existing leases. In the fourth quarter of 2018, we substantially completed our project plan to apply the necessary changes to accounting processes, procedures and internal controls, and we plan to finalize our transition adjustment under ASC 842 in the first quarter of 2019. We expect the adoption will result in the addition of approximately $16.0 million of assets and liabilities to our consolidated balance sheet, with no significant changes to our consolidated statements of operations or cash flows. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which amends the current accounting guidance and requires the measurement of all expected losses based on historical experience, current conditions and reasonable and supportable forecasts. For trade receivables, loans, and other financial instruments, we will be required to use a forward-looking expected loss model rather than the incurred loss model for recognizing credit losses which reflects losses that are probable. The standard will become effective for interim and annual periods beginning after December 15, 2019, with early adoption permitted. Application of the amendments is through a cumulative-effect adjustment to retained earnings as of the effective date. We plan to adopt this standard on the effective date and are currently evaluating the impact of this new standard 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 clarifies the accounting for implementation costs in cloud computing arrangements. The update will become effective for interim and annual periods beginning after December 15, 2019 and may be adopted either retrospectively or prospectively. Early adoption is permitted. We plan to adopt this standard prospectively on the effective date. We are currently evaluating the impacts that adoption of this ASU will have on our consolidated financial statements. |
Cash Equivalents and Marketable
Cash Equivalents and Marketable Securities | 12 Months Ended |
Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Cash Equivalents and Marketable Securities | Cash Equivalents and Marketable Securities At December 31, 2018, marketable securities consisted of the following (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Aggregate Fair Value Money market funds $ 52,068 $ — $ — $ 52,068 Commercial paper 7,448 — — 7,448 U.S. treasury debt securities 2,494 — (1) 2,493 U.S. corporate debt securities 10,890 — (67) 10,823 $ 72,900 $ — $ (68) $ 72,832 Included in cash and cash equivalents $ 52,068 $ — $ — $ 52,068 Included in marketable securities $ 20,832 $ — $ (68) $ 20,764 At December 31, 2017, marketable securities consisted of the following (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Aggregate Fair Value Money market funds $ 49,452 $ — $ — $ 49,452 U.S. treasury debt securities 3,083 — (8) 3,075 U.S. corporate debt securities 13,350 — (61) 13,289 $ 65,885 $ — $ (69) $ 65,816 Included in cash and cash equivalents $ 49,452 $ — $ — $ 49,452 Included in marketable securities $ 16,433 $ — $ (69) $ 16,364 The following table presents gross unrealized losses and fair values for those marketable securities that were in an unrealized loss position as of December 31, 2018, aggregated by investment category and the length of time that individual securities have been in a continuous loss position (in thousands): As of December 31, 2018 Less than 12 months 12 months or greater Fair Value Unrealized Loss Fair Value Unrealized Loss U.S. treasury debt securities $ — $ — $ 998 $ (1) U.S. corporate debt securities 3,481 (5) 7,342 (62) Total $ 3,481 $ (5) $ 8,340 $ (63) |
Supplemental Consolidated Balan
Supplemental Consolidated Balance Sheet and Statement of Operations Information | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplemental Consolidated Balance Sheet and Statement of Operations Information | Supplemental Consolidated Balance Sheet and Statement of Operations Information Property and Equipment, net Property and equipment, net as of December 31, 2018 and 2017 consisted of (in thousands): As of December 31, 2018 2017 Buildings $ 36,608 $ 36,608 Computers, equipment and software 6,602 6,277 Furniture and fixtures 8,839 8,428 Vehicles 97 97 Leasehold improvements 7,678 4,669 Construction in process 15 — 59,839 56,079 Less: accumulated depreciation and amortization (18,371) (15,635) $ 41,468 $ 40,444 The following assets included in property and equipment, net were acquired under capital and financing leases (see Note 6) (in thousands): As of December 31, 2018 2017 Buildings $ 36,608 $ 36,608 Computers and equipment — 666 36,608 37,274 Less: accumulated amortization (6,237) (5,891) $ 30,371 $ 31,383 Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities as of December 31, 2018 and 2017 consisted of (in thousands): As of December 31, 2018 2017 Accrued vacation $ 6,906 $ 6,087 Accrued commissions 7,265 3,297 Accrued bonuses 5,643 4,419 Estimated health insurance claims 1,100 1,090 ESPP employee contributions 2,156 1,419 Customer deposits 7,395 — Accrued other liabilities 5,888 4,117 $ 36,353 $ 20,429 Other Income, net Other income, net for the years ended December 31, 2018, 2017 and 2016 consisted of (in thousands): For the year ended December 31, 2018 2017 2016 Interest income $ 1,278 $ 586 $ 286 Income from training reimbursement program — 1,578 1,141 Gains (losses) on foreign currency transactions 289 (372) 67 Other 224 (9) 6 $ 1,791 $ 1,783 $ 1,500 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements We determine the fair values of our financial instruments based on the fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value assumes that the transaction to sell the asset or transfer the liability occurs in the principal or most advantageous market for the asset or liability and establishes that the fair value of an asset or liability shall be determined based on the assumptions that market participants would use in pricing the asset or liability. The classification of a financial asset or liability within the hierarchy is based upon the lowest level input that is significant to the fair value measurement. The fair value hierarchy prioritizes the inputs into three levels that may be used to measure fair value: Level 1 - Inputs are unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 - Inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. Level 3 - Inputs are unobservable inputs based on our assumptions. Financial Assets Cash equivalents primarily consist of AAA-rated money market funds with overnight liquidity and no stated maturities. We classified cash equivalents as Level 1 due to the short-term nature of these instruments and measured the fair value based on quoted prices in active markets for identical assets. When available, our marketable securities are valued using quoted prices for identical instruments in active markets. If we are unable to value our marketable securities using quoted prices for identical instruments in active markets, we value our investments using broker reports that utilize quoted market prices for comparable instruments. We validate, on a sample basis, the derived prices provided by the brokers by comparing their assessment of the fair values of our investments against the fair values of the portfolio balances of another third-party professional pricing service. As of December 31, 2018 and 2017, all of our marketable securities were valued using quoted prices for comparable instruments in active markets and are classified as Level 2. Based on our valuation of our money market funds and marketable securities, we concluded that they are classified in either Level 1 or Level 2 and we have no financial assets measured using Level 3 inputs. The following table presents information about our assets that are measured at fair value on a recurring basis using the above input categories (in thousands): Fair Value Measurements as of December 31, 2018 Fair Value Measurements as of December 31, 2017 Description Total Level 1 Level 2 Total Level 1 Level 2 Money market funds $ 52,068 $ 52,068 $ — $ 49,452 $ 49,452 $ — Commercial paper 7,448 — 7,448 — — — U.S. treasury debt securities 2,493 — 2,493 3,075 — 3,075 U.S. corporate debt securities 10,823 — 10,823 13,289 — 13,289 $ 72,832 $ 52,068 $ 20,764 $ 65,816 $ 49,452 $ 16,364 Included in cash and cash equivalents $ 52,068 $ 49,452 Included in marketable securities $ 20,764 $ 16,364 |
Deferred Costs
Deferred Costs | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Deferred Costs | Deferred CostsDeferred costs, which primarily consist of costs to obtain contracts with customers, were $18.7 million as of December 31, 2018. Amortization expense for the deferred costs was $10.1 million for the year ended December 31, 2018. There was no significant impairment loss in relation to the costs capitalized for the period presented. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Lease Commitments We lease certain office and residential space under non-cancelable operating leases with various lease terms through June 2043. Rent expense for the years ended December 31, 2018, 2017 and 2016 was $5.6 million, $4.7 million and $3.9 million, respectively. Build to Suit We entered into a lease agreement for land and an office building in Ames, Iowa, which was constructed in two phases. As part of the lease agreement, the landlord was responsible for constructing the building in accordance with our specifications and agreed to fund $11.8 million for the first phase and $11.1 million for the second phase of construction. We were the developer of the project and responsible for construction costs in excess of these amounts. As a result of this involvement, we were deemed the “owner” for accounting purposes during the construction period and were required to capitalize the construction costs associated with the office building. Upon completion of each phase of the project, we performed a sale-leaseback analysis to determine if the building could be removed from the balance sheet. We determined there was continuing involvement, which precluded derecognition of the building. The construction liability of $11.8 million was reclassified to a financing obligation, and $17.1 million of costs capitalized during construction was placed in service during June 2013 for the initial phase. Upon completion of the second phase of the project, the construction liability of $11.1 million was reclassified to a financing obligation, and $19.9 million of costs capitalized during construction was placed in service during 2014. Total cash payments due under the arrangement were allocated on a relative fair value basis between rent related to the land lease and debt service payments related to the financing obligation. The portion of the lease payments allocated to the land is expensed on a straight-line basis over the term of the lease from the point we took possession of the land and including renewal periods where renewal was deemed reasonably assured at the inception of the lease. The lease contains purchase options to acquire the landlord’s interest in the land lease and building at any time beginning three years from the commencement date of the lease. In addition, the lease requires us upon certain events, such as a change in control, to purchase the building from the landlord. The purchase options were deemed to be fair value at the inception of the lease. As of December 31, 2018, future estimated minimum lease payments under non-cancelable operating and financing leases were as follows (in thousands): Operating Leases Financing Obligations 2019 $ 4,755 $ 2,893 2020 3,723 2,893 2021 3,640 2,893 2022 3,363 2,655 2023 3,029 1,471 Thereafter 10,693 24,868 Total minimum lease payments $ 29,203 37,673 Less: Amount representing interest (19,243) Present value of financing obligations $ 18,430 Government Grants Since 2009, we have participated in a program with a local area community college, enlisted by the state of Iowa, that provides reimbursement of training dollars spent on employees hired in Iowa. The community college funds training through the sale of certificates for the amount of anticipated training expenses to be incurred and an estimate of the costs to administer the program. At each payroll date, the state allows us to direct a specified portion of employee state income tax withholdings for the qualified employees to the community college. The community college uses the funds to pay for the program and principal and interest on the certificates. In the event that the funds generated from withholding taxes are insufficient to pay the principal and interest on the certificates, we would be liable for any shortfall. We have concluded that the realization of amounts received under this program is contingent on continuing employment levels. Therefore, in accordance with ASC 450, the amounts received are recorded on the balance sheet as a liability until all contingencies have been resolved. During the years ended December 31, 2018, 2017 and 2016, the total benefit recorded on the statement of operations was $0.2 million, $1.6 million and $1.0 million, respectively. Other Purchase Commitments In November 2017, we entered into an agreement with a third party provider of cloud infrastructure services for a period of two years beginning December 1, 2017. As of December 31, 2018, we are committed to pay $2.7 million during the next 12 months. Litigation From time to time we may become involved in legal proceedings or be subject to claims arising in the ordinary course of our business. We evaluate the development of legal matters on a regular basis and accrue a liability when we believe a loss is probable and the amount can be reasonably estimated. Although the results of litigation and claims cannot be predicted with certainty, we currently believe that the final outcome of any currently pending legal proceedings to which we are a party will not have a material adverse effect on our business, operating results, financial condition or cash flows. Regardless of |
Debt
Debt | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Debt Other Long-Term Debt In August 2014, we entered into a $15.0 million credit facility with Silicon Valley Bank, which was subsequently amended. The credit facility can be used to fund working capital and general business requirements and matures in August 2020. The credit facility is secured by all of our assets, has first priority over our other debt obligations, and requires us to maintain certain financial covenants, including the maintenance of at least $5.0 million of cash on hand or unused borrowing capacity. The credit facility contains certain restrictive covenants that limit our ability to transfer or dispose of assets, merge with other companies or consummate certain changes of control, acquire other companies, pay dividends, incur additional indebtedness and liens, experience changes in management and enter into new businesses. The credit facility has a variable interest rate equal to the bank’s prime lending rate with interest payable monthly and the principal balance due at maturity. The credit facility’s interest rate was 5.5% at December 31, 2018. We recorded no interest expense for the years ended December 31, 2018, 2017 and 2016 related to such debt agreement. |
Stockholders' Equity (Deficit)
Stockholders' Equity (Deficit) | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Stockholders' Equity (Deficit) | Stockholders’ Equity (Deficit)We have two classes of authorized common stock: Class A common stock and Class B common stock. The rights of the holders of our Class A common stock and our Class B common stock are identical, except with respect to voting and conversion. Each share of our Class A common stock is entitled to one vote per share and is not convertible into any other shares of our capital stock. Each share of our Class B common stock is entitled to ten votes per share and is convertible into one share of our Class A common stock at any time. Our Class B common stock also will automatically convert into shares of our Class A common stock upon certain transfers and other events. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation We grant stock-based incentive awards to attract, motivate and retain qualified employees, non-employee directors and consultants, and to align their financial interests with those of our stockholders. We utilize stock-based compensation in the form of restricted stock awards, restricted stock units, options to purchase Class A common stock and ESPP purchase rights. Prior to our corporate conversion in December 2014, awards were provided under the 2009 Unit Incentive Plan (the 2009 Plan). Immediately prior to our IPO, the 2009 Plan was amended to provide that no further awards will be issued thereunder, and our board of directors and stockholders adopted and approved our 2014 Equity Incentive Plan (the 2014 Plan and, together with the 2009 Plan, the Plans). As of December 31, 2018, awards granted under the 2009 Plan consisted of stock options and awards granted under the 2014 Plan consisted of stock options, restricted stock awards and restricted stock units. There were no other grants of any other award types under the Plans. In June 2016 and June 2018, stockholders approved amendments to the 2014 Plan that increased the number of shares available for grant by 3,900,000 and 3,000,000, respectively. As of December 31, 2018, 3,091,981 shares of Class A common stock were available for grant under the 2014 Plan. Our Employee Stock Purchase Plan (“ESPP”) became effective on June 13, 2017. Under the ESPP, eligible employees are granted options to purchase shares of Class A common stock at the lower of 85% of the fair market value of the stock at the time of grant or 85% of the fair market value at the time of exercise. Options to purchase shares are granted twice yearly on or about July 15 and January 15 and are exercisable on or about the succeeding January 14 and July 14, respectively, of each year. As of December 31, 2018, 4,820,623 shares of Class A common stock were available for issuance under the ESPP. No participant may purchase more than $12,500 worth of Class A common stock in a six Stock-Based Compensation Expense Stock-based compensation expense was recorded in the following cost and expense categories consistent with the respective employee or service provider’s related cash compensation (in thousands): Year ended December 31, 2018 2017 2016 Cost of revenue Subscription and support $ 700 $ 738 $ 493 Professional services 619 465 411 Operating expenses Research and development 5,842 2,224 2,365 Sales and marketing 5,416 2,983 2,075 General and administrative 18,264 13,066 8,903 Total $ 30,841 $ 19,476 $ 14,247 The fair value of each option grant and each share issued under the ESPP is estimated on the date of grant using the Black-Scholes option-pricing model. For stock options, expected volatility is based on the historical volatility of our Class A common stock and historical volatilities for publicly traded stock of comparable companies over the estimated expected life of the options. For the ESPP purchase rights, expected volatility is based on the historical volatility of our Class A common stock. The expected term represents the period of time the options and the ESPP purchase rights are expected to be outstanding. For stock options, the expected term is based on the “simplified method” as defined by SEC Staff Accounting Bulletin No. 110 (Topic 14.D.2). We use the “simplified method” due to the lack of sufficient historical exercise data to provide a reasonable basis upon which to otherwise estimate the expected life of the options. The expected term for the ESPP purchase rights approximates the offering period. The risk-free interest rate is based on yields on U.S. Treasury STRIPS (Separate Trading of Registered Interest and Principal of Securities) with a maturity similar to the estimated expected term of the options and ESPP purchase rights. The fair value of our stock options and ESPP purchase rights was estimated assuming no expected dividends and the following weighted-average assumptions: Year ended December 31, 2018 2017 2016 Stock Options Expected term (in years) — 0.2 - 6.1 6.0 - 6.1 Risk-free interest rate — 1.5% - 2.2% 1.2% - 2.1% Expected volatility — 23.7% - 43.8% 43.0% - 45.3% ESPP Expected term (in years) 0.5 0.5 — Risk-free interest rate 1.8% - 2.4% 1.2% —% Expected volatility 22.2% - 36.4% 28.5% —% Stock Options The following table summarizes the option activity under the Plans for the year ended December 31, 2018: Options Weighted- Aggregate Intrinsic Value (in thousands) Outstanding at December 31, 2017 8,145,777 $ 13.33 7.0 $ 65,913 Granted — — Forfeited (264,864) 17.22 Exercised (1,480,738) 11.25 Outstanding at December 31, 2018 6,400,175 $ 13.65 6.1 $ 142,340 Exercisable at December 31, 2018 4,905,844 $ 12.88 5.6 $ 112,884 Options to purchase Class A common stock generally vest over a three four ten The weighted-average grant-date fair value of options granted during the years ended December 31, 2017 and 2016 was $6.79 and $6.79, respectively. No options were granted during the year ended December 31, 2018. The total fair value of options vested during the years ended December 31, 2018, 2017 and 2016 was approximately $12.4 million, $10.2 million and $9.3 million, respectively. Total unrecognized compensation expense of $8.3 million related to options will be recognized over a weighted-average period of 2.0 years. Restricted Stock Awards We have granted restricted stock awards to our executive officers that vest in three The following table summarizes the restricted stock award activity under the Plan for the year ended December 31, 2018: Number of Shares Weighted-Average Grant Date Fair Value Unvested at December 31, 2017 163,332 13.40 Granted — — Forfeited — — Vested (163,332) 13.40 Unvested at December 31, 2018 — — Compensation expense associated with unvested restricted stock awards is recognized on a straight-line basis over the vesting period. At December 31, 2018, there was no unrecognized compensation expense related to restricted stock awards. Restricted Stock Units Restricted stock units granted to employees generally vest over a three four three one The following table summarizes the restricted stock unit activity under the Plan for the year ended December 31, 2018: Number of Shares Weighted-Average Grant Date Fair Value Unvested at December 31, 2017 574,072 $ 14.51 Granted 2,295,322 24.84 Forfeited (47,733) 22.85 Vested (1) (462,400) 16.73 Unvested at December 31, 2018 2,359,261 $ 23.95 (1) During the year ended December 31, 2018 recipients of 417,163 shares had elected to defer settlement of the vested restricted stock units in accordance with our Nonqualified Deferred Compensation Plan resulting in total deferred units of 554,621 as of December 31, 2018. Compensation expense associated with unvested restricted stock units is recognized on a straight-line basis over the vesting period. At December 31, 2018, there was approximately $41.6 million of total unrecognized compensation expense related to restricted stock units, which is expected to be recognized over a weighted-average period of 2.4 years. Employee Stock Purchase Plan During the year ended December 31, 2018, 179,377 shares of common stock were purchased under the ESPP at a weighted-average price of $17.93 per share, resulting in cash proceeds of $3.2 million. Compensation expense associated with ESPP purchase rights is recognized on a straight-line basis over the vesting period. At December 31, 2018, there was approximately $52,000 of total unrecognized compensation expense related to the ESPP, which is expected to be recognized over a weighted-average period of 0.04 years. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income The following table summarizes the activity of accumulated other comprehensive income during the years ended December 31, 2018, 2017 and 2016 (in thousands): Accumulated translation adjustment Accumulated unrealized holding gains (losses) on available-for-sale securities Accumulated other comprehensive income Balance at December 31, 2015 $ 280 $ (39) $ 241 Other comprehensive income 18 32 50 Balance at December 31, 2016 298 (7) 291 Other comprehensive loss (159) (60) (219) Balance at December 31, 2017 139 (67) 72 Other comprehensive income 26 — 26 Balance at December 31, 2018 $ 165 $ (67) $ 98 |
Segments
Segments | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Segments | Segments Our chief operating decision maker reviews financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance. There are no segment managers who are held accountable by the chief operating decision maker, or anyone else, for operations, operating results and planning for levels or components below the consolidated unit level. Accordingly, we determined we have one operating and reportable segment. During the years ended December 31, 2018 , |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Disaggregation of Revenue The following table presents our revenues disaggregated by industry (in thousands). Certain amounts have been reclassified to conform with current period presentation. These reclassifications have no impact on total revenue. For the year ended December 31, 2018 Information technology $ 31,063 Consumer discretionary 28,325 Industrials 28,023 Diversified financials 27,335 Banks 23,818 Healthcare 21,672 Energy 19,617 Other 64,491 Total revenues $ 244,344 The following table presents our revenues disaggregated by type of good or service (in thousands): For the year ended December 31, 2018 Subscription and support $ 200,392 XBRL professional services 30,562 Other services 13,390 Total revenues $ 244,344 Deferred Revenue During the year ended December 31, 2018, we recognized $103.9 million of revenue that was included in the deferred revenue balance at the beginning of the period. Transaction Price Allocated to the Remaining Performance Obligations As of December 31, 2018, revenue of approximately $173.7 million is expected to be recognized from remaining performance obligations for subscription contracts. We expect to recognize approximately $148.5 million of these remaining performance obligations over the next 12 months, with the balance recognized thereafter. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Loss before income tax provision (benefit) consisted of the following (in thousands): For the year ended December 31, 2018 2017 2016 United States $ (50,268) $ (44,246) $ (43,952) Foreign 444 (119) (1) Total $ (49,824) $ (44,365) $ (43,953) The provision (benefit) for income taxes consisted of the following (in thousands): For the year ended December 31, 2018 2017 2016 Current State $ 48 $ 42 $ 12 Foreign 203 19 44 Total Current $ 251 $ 61 $ 56 Deferred Federal $ (8) $ — $ (32) Foreign 4 — — Total Deferred $ (4) $ — $ (32) Total $ 247 $ 61 $ 24 During the years ended December 31, 2018, 2017 and 2016, we recorded a federal income tax benefit of $8,000, $0, and $32,000, respectively. That benefit was primarily related to the allocation of tax expense (benefit) between continuing operations and other comprehensive income (loss) when applying the exception to the ASC 740 intraperiod tax allocation rule. Intraperiod tax allocation rules require us to allocate the provision for income taxes between continuing operations and other categories of earnings, such as other comprehensive income. In periods in which we have a year-to-date pre-tax loss from continuing operations and pre-tax income in other categories of earnings, such as other comprehensive income, we must allocate the tax provision to the other categories of earnings and then record a related tax benefit in continuing operations. This exception to the general rule applies even when a valuation allowance is in place at the beginning and end of the year. The items accounting for the difference between income taxes computed at the federal statutory income tax rate and the provision for income taxes consisted of the following (in thousands): For the year ended December 31, 2018 2017 2016 Federal statutory rate 21.0 % 35.0 % 35.0 % Effect of: Tax benefit at federal statutory rate $ (10,463) $ (15,528) $ (15,384) State taxes, net of federal benefit (2,587) (1,802) (1,377) Revaluation of deferred tax items due to tax rate change (federal and state) — 22,880 — Revaluation of deferred tax asset for current year net operating loss due to tax rate change — 4,134 — Permanent differences including section 162(m) limitations, stock compensation, gain on foreign restructuring, and meals & entertainment 2,113 5,141 1,292 Tax benefit of federal R&D credit (3,289) (2,366) (1,781) Recognition of excess tax benefits related to share-based payments — (3,606) — Valuation allowance 14,044 (8,586) 17,013 Other 429 (206) 261 Total income tax provision $ 247 $ 61 $ 24 The components of deferred tax assets and liabilities were as follows (in thousands): As of December 31, 2018 2017 Deferred tax assets: Property and equipment $ 18 $ 15 Accruals and reserves 283 199 Deferred rent 1,601 931 Compensation and benefits 13,925 11,973 Deferred revenue 5,338 4,762 Net operating loss and credits 51,931 41,108 Other 701 167 Total deferred tax assets 73,797 59,155 Valuation allowance (72,683) (58,639) Total deferred tax assets 1,114 516 Deferred tax liabilities: Property and equipment (529) (440) Other deferred tax liabilities (587) (76) Deferred tax liabilities (1,116) (516) Total $ (2) $ — On December 22, 2017, the U.S. federal government enacted legislation commonly referred to as the “Tax Cuts and Jobs Act” (the “TCJA”). The TCJA made widespread changes to the Internal Revenue Code, including, among other items, a reduction in the federal corporate tax rate from 35% to 21%, effective January 1, 2018. Our financial statements for the current year reflect the effects of the TCJA based on current guidance. As of December 31, 2018, we have completed the accounting for all the impacts of the TCJA. We continue to evaluate the impacts of the TCJA and will consider additional guidance from the U.S. Treasury Department, IRS or other standard-setting bodies. However, no additional adjustments were recorded by us during the measurement period in 2018 as permitted by SEC Staff Accounting Bulletin 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act . Management assesses the available positive and negative evidence to estimate whether sufficient future taxable income will be generated to permit use of the existing deferred tax assets. A significant piece of objective negative evidence evaluated was the cumulative loss incurred over the three-year period ended December 31, 2018. Such objective evidence limits the ability to consider other subjective evidence, such as our projections for future growth. On the basis of this evaluation, we recognized a full valuation allowance against our net US deferred tax asset at December 31, 2018, because we believe it is more likely than not that these benefits will not be realized. As of December 31, 2018, we have federal and state net operating loss carryforwards of approximately $160.9 million and $126.2 million, respectively, available to reduce any future taxable income. The federal net operating loss carryforwards will expire in varying amounts beginning in 2034. As a result of the TCJA the federal and some state net operating losses incurred after 2017 will have an indefinite carryforward. The state net operating loss carryforwards will expire in varying amounts beginning in 2021. Additionally, we have total net operating loss carryforwards from international operations of $647,000 that do not expire. We also have approximately $9.3 million of federal and $1.8 million of state tax credit carryforwards as of December 31, 2018. The federal credits will expire in varying amounts between the years 2034 and 2038. The state credits expire beginning in 2021. A reconciliation of the gross unrecognized tax benefits is as follows (in thousands): For the year ended December 31, 2018 2017 2016 Unrecognized tax benefits-beginning of period $ 191 $ 168 $ — Additions for tax positions related to prior year — — 168 Reductions for tax positions related to prior year — — — Foreign currency adjustments (9) 23 — Additions for tax positions related to current year — — — Unrecognized tax benefits-end of period $ 182 $ 191 $ 168 We have analyzed our inventory of tax positions taken with respect to all applicable income tax issues for all open tax years. The gross unrecognized tax benefits, if recognized, would not materially affect the effective tax rate as of December 31, 2018, due to the availability of net operating losses. We do not expect our gross unrecognized tax benefits to change significantly over the next 12 months. Our policy is to classify interest and penalties associated with uncertain tax positions, if any, as a component of our income tax provision. Interest and penalties were not significant during the years ended December 31, 2018, 2017 and 2016. We are subject to taxation in the United States and various states and foreign jurisdictions. As of December 31, 2018, tax years for 2014 through 2017 are subject to examination by the tax authorities. |
Net Loss Per Share
Net Loss Per Share | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | Net Loss Per Share Basic net loss per share is computed by dividing the net loss by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by giving effect to all potential shares of common stock, including our outstanding stock options, stock related to unvested restricted stock awards, and common stock issuable pursuant to the ESPP to the extent dilutive. The net loss per share is allocated based on the contractual participation rights of the Class A and Class B common shares as if the loss for the year has been distributed. As the liquidation and dividend rights are identical, the net loss is allocated on a proportionate basis. We consider unvested restricted stock awards granted under the 2014 Equity Incentive Plan to be participating securities because holders of such shares have non-forfeitable dividend rights in the event of our declaration of a dividend for common shares. In future periods to the extent we are profitable, we will subtract earnings allocated to these participating securities from net income to determine net income attributable to common stockholders. A reconciliation of the denominator used in the calculation of basic and diluted loss per share is as follows (in thousands, except share and per share data): Year ended December 31, 2018 December 31, 2017 December 31, 2016 Class A Class B Class A Class B Class A Class B Numerator Net loss $ (38,733) $ (11,338) $ (33,016) $ (11,410) $ (31,644) $ (12,333) Denominator Weighted-average common shares outstanding - basic and diluted 33,758,623 9,881,785 30,929,899 10,688,939 29,265,605 11,405,528 Basic and diluted net loss per share $ (1.15) $ (1.15) $ (1.07) $ (1.07) $ (1.08) $ (1.08) The anti-dilutive securities excluded from the weighted-average shares used to calculate the diluted net loss per common share were as follows: As of December 31, 2018 2017 2016 Shares subject to outstanding common stock options 6,400,175 8,145,777 7,532,455 Shares subject to unvested restricted stock awards — 163,332 353,335 Shares subject to unvested restricted stock units 2,359,261 574,072 381,952 Shares issuable pursuant to the ESPP 105,583 85,509 — |
Unaudited Quarterly Results of
Unaudited Quarterly Results of Operations | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Unaudited Quarterly Results of Operations | Unaudited Quarterly Results of Operations The following tables set forth selected unaudited quarterly consolidated statement of operations data for each of the quarters indicated as well as the percentage of total revenue for each line item shown. The unaudited information should be read in conjunction with our financial statements and related notes included elsewhere in this report. We believe that the following unaudited information reflects all normal recurring adjustments necessary for a fair presentation of the information for the periods presented. The operating results for any quarter are not necessarily indicative of results for any future period. Three months ended Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 (in thousands) Revenue Subscription and support $ 53,779 $ 51,306 $ 48,837 $ 46,470 $ 45,549 $ 43,214 $ 40,980 $ 39,540 Professional services 10,656 9,567 10,293 13,436 8,957 8,854 8,411 12,364 Total revenue 64,435 60,873 59,130 59,906 54,506 52,068 49,391 51,904 Cost of revenue Subscription and support 8,637 8,139 8,637 8,802 8,779 8,472 7,758 7,637 Professional services 8,757 7,520 7,659 7,709 7,310 7,180 6,528 6,581 Total cost of revenue 17,394 15,659 16,296 16,511 16,089 15,652 14,286 14,218 Gross profit 47,041 45,214 42,834 43,395 38,417 36,416 35,105 37,686 Operating expenses Research and development 20,773 19,984 20,718 20,127 18,870 17,527 16,239 15,536 Sales and marketing 23,011 24,068 22,252 21,006 21,949 23,712 19,787 18,713 General and administrative (1) (2) 11,047 11,864 21,654 11,768 12,271 8,959 8,943 9,421 Total operating expenses 54,831 55,916 64,624 52,901 53,090 50,198 44,969 43,670 Loss from operations (7,790) (10,702) (21,790) (9,506) (14,673) (13,782) (9,864) (5,984) Interest expense (480) (448) (449) (450) (451) (464) (475) (455) Other income, net 753 203 492 343 797 198 176 612 Loss before provision (benefit) for income taxes (7,517) (10,947) (21,747) (9,613) (14,327) (14,048) (10,163) (5,827) Provision (benefit) for income taxes 204 17 21 5 (6) 25 33 9 Net loss $ (7,721) $ (10,964) $ (21,768) $ (9,618) $ (14,321) $ (14,073) $ (10,196) $ (5,836) Net loss per common share: Basic and diluted $ (0.17) $ (0.25) $ (0.50) $ (0.22) $ (0.34) $ (0.34) $ (0.25) $ (0.14) Weighted-average common shares outstanding - basic and diluted 44,472,672 43,973,428 43,234,655 42,858,756 42,108,764 41,815,139 41,429,691 41,108,611 (1) During the fourth quarter of 2017, we recorded an additional $1.9 million to general and administrative expense due to certain severance arrangements. (2) During the second quarter of 2018, we recorded an additional $5.9 million and $3.6 million of cash-based and equity-based compensation, respectively, to general and administrative expense pursuant to a separation agreement with our former CEO. |
Organization and Significant _2
Organization and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles and include the accounts of Workiva Inc. and its wholly owned subsidiaries. |
Principles of Consolidation | All intercompany accounts and transactions have been eliminated in consolidation. |
Reclassifications | Additionally, certain prior year amounts have been reclassified for consistency with the current year presentation. The reclassification of the prior period amounts were not material to the previously reported consolidated financial statements. |
Foreign Currency | We translate the financial statements of our foreign subsidiaries, which have a functional currency in the respective country’s local currency, to U.S. dollars using month-end exchange rates for assets and liabilities and average exchange rates for revenue, costs and expenses. Translation gains and losses are recorded in accumulated other comprehensive income as a component of stockholders’ deficit. Gains and losses resulting from foreign currency transactions that are denominated in currencies other than the entity's functional currency are included within “Other income, net” on the consolidated statements of operations. |
Use of Estimates | The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States requires us to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. We base our estimates on historical experience and various other assumptions believed to be reasonable. These estimates include, but are not limited to, the allowance for doubtful accounts, the determination of the relative selling prices of our services, the measurement of material rights, health insurance claims incurred but not yet reported, valuation of available-for-sale marketable securities, useful lives of deferred contract costs, intangible assets and property and equipment, income taxes and certain assumptions used in the valuation of equity awards. While these estimates are based on our best knowledge of current events and actions that may affect us in the future, actual results may differ materially from these estimates. |
Cash and Cash Equivalents | Cash consists of cash on deposit with banks that is stated at cost, which approximates fair value. We invest our excess cash primarily in highly liquid money market funds and marketable securities. We classify all highly liquid investments with stated maturities of three months or less from date of purchase as cash equivalents and all highly liquid investments with stated maturities of greater than three months as marketable securities. |
Marketable Securities | Our marketable securities consist of commercial paper, U.S. corporate debt securities, and U.S. treasury debt securities. We classify our marketable securities as available-for-sale at the time of purchase and reevaluate such classification as of each balance sheet date. We may sell these securities at any time for use in current operations even if they have not yet reached maturity. As a result, we classify our investments, including securities with maturities beyond twelve months as current assets in the accompanying consolidated balance sheets. Available-for-sale securities are recorded at fair value each reporting period. Unrealized gains and losses are excluded from earnings and recorded as a separate component within “Accumulated other comprehensive income” on the consolidated balance sheets until realized. Dividend income is reported within “Other income, net” on the consolidated statements of operations. We evaluate our investments to assess whether those with unrealized loss positions are other than temporarily impaired. We consider impairments to be other than temporary if they are related to deterioration in credit risk or if it is likely we will sell the securities before the recovery of their cost basis. Realized gains and losses and declines in value judged to be other than temporary are determined based on the specific identification method and are reported in “Other income, net” on the consolidated statements of operations. |
Fair Value of Financial Instruments | Our financial assets, which include cash equivalents and marketable securities, are measured and recorded at fair value on a recurring basis. Our other current financial assets and our other current financial liabilities have fair values that approximate their carrying value due to their short-term maturities. |
Concentration of Credit Risk | Financial instruments that potentially subject us to concentrations of credit risk consist principally of cash and cash equivalents and accounts receivable. We place our cash and cash equivalents with high credit-quality financial institutions. Such deposits may be in excess of federally insured limits. To date, we have not experienced any losses on our cash and cash equivalents. We perform periodic evaluations of the relative credit standing of the financial institutions.Our accounts receivable are derived primarily from customers located in North America. We perform ongoing credit evaluations of our customers’ financial condition and require no collateral from our customers. We maintain an allowance for doubtful accounts receivable based upon the expected collectability of accounts receivable balances. |
Deferred Commissions | Sales commissions earned by our sales force are considered incremental and recoverable costs of obtaining a contract with a customer. Sales commissions paid where the amortization period is one year or less are expensed as incurred. All other sales commissions are deferred and then amortized on a straight-line basis over a period of benefit that we have determined to be three years. We determined the period of benefit by taking into consideration our standard contract terms and conditions, rate of technological change and other factors. Amortization expense is included in sales and marketing expense in the accompanying consolidated statements of operations. |
Property and Equipment, net | Property and equipment is stated at cost, net of accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful lives of the respective assets, generally three ten |
Revenue Recognition | We generate revenue through the sale of subscriptions to our cloud-based software and the delivery of professional services. We recognize revenue when control of these services is transferred to our customers in an amount that reflects the consideration we expect to be entitled to in exchange for those services. We determine revenue recognition through the following steps: • Identification of the contract, or contracts, with a customer • Identification of the per formance obligations in the contract • Determin ation of the transaction price • Allocation of the transaction price to the perf ormance obligations in the contract • Recog nition of revenue when, or as, we satisfy a performance obligation We report revenue net of sales and other taxes collected from customers to be remitted to government authorities. Subscription and Support Revenue We recognize subscription and support revenue on a ratable basis over the contract term beginning on the date that our service is made available to the customer. Our subscription contracts are generally three Professional Services Revenue and Customer Options Professional services revenues primarily consist of fees for document set up, XBRL tagging, and consulting with our customers on business processes and best practices for using Wdesk. We have determined that an agreement to purchase these professional services constitutes an option to purchase services in accordance with ASC 606 rather than an agreement that creates enforceable rights and |
Contracts with Multiple Performance Obligations | Some of our contracts with customers contain multiple performance obligation in the event that we determine a material right exists. For these contracts, we account for the individual performance obligations separately when they are both capable of being distinct, whereby the customer can benefit from the service either on its own or together with other resources that are readily available from third parties or from us, and are distinct in the context of the contract, whereby the transfer of the services is separately identifiable from other promises in the contract. If these criteria are not met, the promised services are accounted for as a combined performance obligation. The transaction price is allocated to the separate performance obligations on a relative standalone selling price basis. We determine the standalone selling prices based on our overall pricing objectives, taking into consideration market conditions and entity-specific factors, including the size of our arrangements, length of term, customer demographics and the numbers and types of users within our arrangements. |
Deferred Revenue, Customer Deposits and Cost of Revenue | Deferred Revenue We typically invoice our customers for subscription and support fees in advance on a quarterly, annual, two- or three-year basis, with payment due at the start of the subscription term. Unpaid invoice amounts for non-cancelable services starting in future periods are included in accounts receivable and deferred revenue. The portion of deferred revenue that we anticipate will be recognized after the succeeding twelve-month period is recorded as non-current deferred revenue, and the remaining portion is recorded as current deferred revenue. Customer Deposits As an agreement to purchase professional services constitutes a customer option, fees received in advance of these services being performed are considered customer deposits and are included in accrued expenses and other current liabilities on the consolidated balance sheets. Unpaid invoice amounts for these professional services starting in future periods are excluded from accounts receivable and accrued expenses and other current liabilities. Cost of Revenue Cost of revenue consists primarily of personnel and related costs directly associated with the professional services and customer success teams and training personnel, including salaries, benefits, bonuses, and stock-based compensation; the costs of contracted third-party vendors; the costs of server usage by our customers; information technology costs; and facility costs. |
Selling and Marketing Expenses | Sales and marketing expenses consist primarily of personnel and related costs, including salaries, benefits, bonuses, commissions, travel, and stock-based compensation. Other costs included in this expense are marketing and promotional events, our annual user conference, online marketing, product marketing, information technology costs, and facility costs. |
Advertising Costs | Advertising costs are charged to sales and marketing expense as incurred. |
Research and Development Expenses | Research and development expenses consist primarily of personnel and related costs, including salaries, benefits, bonuses, and stock-based compensation, costs of server usage by our developers, information technology costs, and facility costs. |
General and Administrative Expenses | General and administrative expenses consist primarily of personnel and related costs for our executive, finance, legal, human resources, and administrative personnel, including salaries, benefits, bonuses, and stock-based compensation; legal, accounting, and other professional service fees; other corporate expenses; information technology costs; and facility costs. |
Leases | We categorize leases at their inception as either operating or capital leases and may receive renewal or expansion options, rent holidays, and leasehold improvement and other incentives on certain lease agreements. We recognize lease costs on a straight-line basis, taking into account adjustments for free or escalating rental payments, renewals at our option that are reasonably assured and deferred payment terms. Additionally, lease incentives are accounted for as a reduction of lease costs over the term of the agreement. |
Government Grants | Government grants received are recorded as a liability on the balance sheets until all contingencies are resolved and the grant is determined to be realized. |
Intangible Assets | We account for intangible assets under Accounting Standards Codification (ASC) 350, Goodwill and Other |
Impairment of Long-Lived Assets | Long-lived assets, such as property, equipment, and software and intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. If circumstances require that a long-lived asset or asset group be tested for possible impairment, we first compare the undiscounted cash flows expected to be generated by that long-lived asset or asset group to its carrying amount. If the carrying amount of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying amount exceeds its fair value. |
Stock-based Compensation | We measure all share-based payments, including grants of options to purchase common stock and the issuance of restricted stock or restricted stock units to employees, service providers and board members, using a fair-value based method. We record forfeitures as they occur. The cost of services received from employees and non-employees in exchange for awards of equity instruments is recognized in the consolidated statement of operations based on the estimated fair value of those awards on the grant date or reporting date, if required to be remeasured, and amortized on a straight-line basis over the requisite service period. We use the Black-Scholes option-pricing model to determine the fair values of stock option awards. For restricted stock and restricted stock units, fair value is based on the closing price of our common stock on the grant date. |
Income Taxes | We record current income taxes based on our estimates of current taxable income and provide for deferred income taxes to reflect estimated future income tax payments and receipts. We are subject to U.S. federal income taxes as well as state taxes. In addition, we are subject to taxes in the foreign jurisdictions where we operate. We account for income taxes using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, we determine deferred tax assets and liabilities on the basis of the differences between the financial statement and tax bases of assets and liabilities by using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment rate. On December 22, 2017, the U.S. federal government enacted legislation commonly referred to as the “Tax Cuts and Jobs Act” (the “TCJA”). The TCJA made widespread changes to the Internal Revenue Code, including, among other items, the introduction of a new international “Global Intangible Low-Taxed Income” (“GILTI”) regime effective January 1, 2018. Companies may adopt one of two views in regards to establishing deferred taxes in accordance with the new (“GILTI”) regime under ASC 740. Companies may account for the effects of GILTI either (1) in the period the entity becomes subject to GILTI, or (2) establish deferred taxes (similar to the guidance that currently exists with respect to basis differences that will reverse under current Subpart F rules) for basis differences that upon reversal will be subject to GILTI. We have elected to account for GILTI in the period incurred. We recognize deferred tax assets to the extent that we believe that these assets are more likely than not to be realized. In making such a determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies and results of recent operations. If we determine that we would be able to realize our deferred tax assets in the future in excess of their net recorded amount, we would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. We record uncertain tax positions in accordance with ASC 740, Income Taxes, on the basis of a two-step process in which (1) we determine whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not threshold, we recognize the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts receivable are recorded at the invoiced amount net of an allowance for doubtful accounts. The allowance for doubtful accounts is based on our assessment of the collectability of customer accounts. We regularly review our receivables that remain outstanding past their applicable payment terms and established an allowance for potential write-offs by considering factors such as historical experience, credit quality, age of the accounts receivable balances, and current economic conditions that may affect a customer’s ability to pay. Accounts receivable deemed uncollectible are charged against the allowance once collection efforts have been exhausted. |
Recently Adopted Accounting Pronouncements and New Accounting Pronouncements Not Yet Adopted | In May 2014, the FASB issued guidance codified in ASC 606, Revenue Recognition - Revenue from Contracts with Customers (ASU 2014-09), which amends the guidance in former ASC 605, Revenue Recognition . The core principle of ASC 606 is 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. Additionally, the guidance requires improved disclosures to help users of financial statements better understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. Effective January 1, 2018, we adopted ASU 2014-09 using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018. We recognized the cumulative effect of initially applying the new revenue standard as an adjustment to the opening balance of our accumulated deficit. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. The primary impact on accounts receivables and deferred revenue of adopting the new standard relates to recording deferred revenue when payments are due in advance of our performance of subscription based contracts. This recording has resulted in an offsetting increase in accounts receivable and deferred revenue. The effect of adopting the new standard on accrued expenses and other current liabilities relates to the reclassification of amounts collected in advance related to the purchase of professional services from deferred revenue to accrued expenses and other current liabilities as these agreements to purchase professional services constitute a customer option. The primary impact of adopting the new standard on sales and marketing expense relates to the deferral of incremental commission costs of obtaining subscription contracts. Under the previous guidance, we deferred only direct and incremental commission costs to obtain a contract and amortized those costs on a straight-line basis over the lesser of 12 months or the non-cancelable term of the customer contract based on the terms of our commission arrangements. Under the new standard, we defer all incremental commission costs to obtain the contract. We amortize these costs on a straight-line basis over a period of benefit that we have determined to be three years. The adoption of ASC 606 primarily resulted in an acceleration of revenue as of December 31, 2017, which in turn reduced our existing deferred tax asset for amounts that had previously been included in deferred revenue. Additionally, the amortization of the costs of obtaining a contract has generated additional deferred tax liabilities that ultimately reduced our net deferred tax asset position. As we have provided a full valuation allowance against our net deferred tax assets in the jurisdictions impacted by the adoption of ASC 606, this aggregate impact was offset by a corresponding reduction to the valuation allowance. The cumulative effect of the changes made to our consolidated January 1, 2018 balance sheet for the adoption of ASU 2014-09 were as follows (in thousands): As of December 31, 2017 Adjustments Due to ASU 2014-09 As of January 1, 2018 Assets Accounts receivable, net $ 28,800 $ 16,900 $ 45,700 Deferred commissions 2,376 650 3,026 Deferred commissions, non-current — 4,655 4,655 Liabilities Accrued expenses and other current liabilities 20,429 6,956 27,385 Deferred revenue 104,684 6,625 111,309 Deferred revenue, non-current 22,709 243 22,952 Equity Accumulated deficit $ (265,337) $ 8,381 $ (256,956) In accordance with the new revenue standard requirements, the impact of adoption on our consolidated balance sheet as of December 31, 2018 and statement of operations for the year ended December 31, 2018 was as follows (in thousands, except per share data): As of December 31, 2018 As Reported Balances Without Adoption of ASC 606 Effect of Change Assets Accounts receivable, net 65,107 37,528 27,579 Deferred commissions 8,178 4,593 3,585 Deferred commissions, non-current 10,569 — 10,569 Liabilities Accrued expenses and other current liabilities 36,353 28,958 7,395 Deferred revenue 148,545 134,793 13,752 Deferred revenue, non-current 25,171 20,853 4,318 Equity Accumulated deficit (307,027) (323,295) 16,268 Year ended December 31, 2018 As Reported Balances Without Adoption of ASC 606 Effect of Change Revenues Subscription and support $ 200,392 $ 199,575 $ 817 Professional services 43,952 45,707 (1,755) Operating expenses Sales and marketing 90,337 99,162 (8,825) Net loss $ (50,071) $ (57,958) $ 7,887 Net loss per common share Basic and diluted $ (1.15) $ (1.33) $ 0.18 The adoption of ASC 606 had no impact on our total cash flows from operations. In May 2017, the FASB issued ASU 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting . This ASU clarifies when to account for a change to the terms or conditions of a share-based payment award as a modification. Under the new guidance, modification accounting is required only if the fair value, the vesting conditions, or the classification of the award (as equity or liability) changes as a result of the change in terms or conditions. The ASU is effective for annual periods beginning after December 15, 2017 and interim periods within those annual periods. Effective January 1, 2018, we adopted this standard. The adoption of this guidance did not have a material impact on our consolidated financial statements. In June 2018, the FASB issued ASU 2018-07, Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting . This ASU simplifies the accounting for nonemployee share-based payment transactions. Under the new guidance, equity-classified share-based payment awards issued to nonemployees will now be measured on the grant date, instead of the previous requirement to remeasure the awards through performance completion date. Awards that include performance conditions will recognize compensation cost when the achievement of the performance condition is probable, rather than upon achievement of the performance condition. Finally, the current requirement to reassess the classification (equity or liability) for nonemployee awards upon vesting will be eliminated, except for awards in the form of convertible instruments. The ASU is effective for annual periods beginning after December 15, 2018 and interim periods within those annual periods. Early adoption is permitted, including interim periods, but no earlier than the adoption of ASC 606. Effective June 20, 2018, we adopted this standard. The adoption of this new guidance did not have a material impact on our consolidated financial statements. New Accounting Pronouncements Not Yet Adopted In February 2016, the FASB issued guidance codified in ASC 842, Leases , which supersedes the guidance in former ASC 840, Leases , to increase transparency and comparability among organizations by requiring recognition of right-of-use assets and lease liabilities on the balance sheet and disclosure of key information about leasing arrangements (with the exception of short-term leases). The standard will become effective for interim and annual periods beginning after December 15, 2018, with early adoption permitted. In July 2018, the FASB issued ASU 2018-11, Leases (Topic 842): Targeted Improvements that allows entities to recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. We plan to adopt this guidance on January 1, 2019 using this new transition guidance. We currently expect to use the package of practical expedients which allows us to not (1) reassess whether any expired or existing contracts are considered or contain leases; (2) reassess the lease classification for any expired or existing leases; and (3) reassess the initial direct costs for any existing leases. In the fourth quarter of 2018, we substantially completed our project plan to apply the necessary changes to accounting processes, procedures and internal controls, and we plan to finalize our transition adjustment under ASC 842 in the first quarter of 2019. We expect the adoption will result in the addition of approximately $16.0 million of assets and liabilities to our consolidated balance sheet, with no significant changes to our consolidated statements of operations or cash flows. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which amends the current accounting guidance and requires the measurement of all expected losses based on historical experience, current conditions and reasonable and supportable forecasts. For trade receivables, loans, and other financial instruments, we will be required to use a forward-looking expected loss model rather than the incurred loss model for recognizing credit losses which reflects losses that are probable. The standard will become effective for interim and annual periods beginning after December 15, 2019, with early adoption permitted. Application of the amendments is through a cumulative-effect adjustment to retained earnings as of the effective date. We plan to adopt this standard on the effective date and are currently evaluating the impact of this new standard 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 clarifies the accounting for implementation costs in cloud computing arrangements. The update will become effective for interim and annual periods beginning after December 15, 2019 and may be adopted either retrospectively or prospectively. Early adoption is permitted. We plan to adopt this standard prospectively on the effective date. We are currently evaluating the impacts that adoption of this ASU will have on our consolidated financial statements. |
Organization and Significant _3
Organization and Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The cumulative effect of the changes made to our consolidated January 1, 2018 balance sheet for the adoption of ASU 2014-09 were as follows (in thousands): As of December 31, 2017 Adjustments Due to ASU 2014-09 As of January 1, 2018 Assets Accounts receivable, net $ 28,800 $ 16,900 $ 45,700 Deferred commissions 2,376 650 3,026 Deferred commissions, non-current — 4,655 4,655 Liabilities Accrued expenses and other current liabilities 20,429 6,956 27,385 Deferred revenue 104,684 6,625 111,309 Deferred revenue, non-current 22,709 243 22,952 Equity Accumulated deficit $ (265,337) $ 8,381 $ (256,956) In accordance with the new revenue standard requirements, the impact of adoption on our consolidated balance sheet as of December 31, 2018 and statement of operations for the year ended December 31, 2018 was as follows (in thousands, except per share data): As of December 31, 2018 As Reported Balances Without Adoption of ASC 606 Effect of Change Assets Accounts receivable, net 65,107 37,528 27,579 Deferred commissions 8,178 4,593 3,585 Deferred commissions, non-current 10,569 — 10,569 Liabilities Accrued expenses and other current liabilities 36,353 28,958 7,395 Deferred revenue 148,545 134,793 13,752 Deferred revenue, non-current 25,171 20,853 4,318 Equity Accumulated deficit (307,027) (323,295) 16,268 Year ended December 31, 2018 As Reported Balances Without Adoption of ASC 606 Effect of Change Revenues Subscription and support $ 200,392 $ 199,575 $ 817 Professional services 43,952 45,707 (1,755) Operating expenses Sales and marketing 90,337 99,162 (8,825) Net loss $ (50,071) $ (57,958) $ 7,887 Net loss per common share Basic and diluted $ (1.15) $ (1.33) $ 0.18 |
Cash Equivalents and Marketab_2
Cash Equivalents and Marketable Securities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Available-for-sale Securities | At December 31, 2018, marketable securities consisted of the following (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Aggregate Fair Value Money market funds $ 52,068 $ — $ — $ 52,068 Commercial paper 7,448 — — 7,448 U.S. treasury debt securities 2,494 — (1) 2,493 U.S. corporate debt securities 10,890 — (67) 10,823 $ 72,900 $ — $ (68) $ 72,832 Included in cash and cash equivalents $ 52,068 $ — $ — $ 52,068 Included in marketable securities $ 20,832 $ — $ (68) $ 20,764 At December 31, 2017, marketable securities consisted of the following (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Aggregate Fair Value Money market funds $ 49,452 $ — $ — $ 49,452 U.S. treasury debt securities 3,083 — (8) 3,075 U.S. corporate debt securities 13,350 — (61) 13,289 $ 65,885 $ — $ (69) $ 65,816 Included in cash and cash equivalents $ 49,452 $ — $ — $ 49,452 Included in marketable securities $ 16,433 $ — $ (69) $ 16,364 |
Schedule of Cash and Cash Equivalents | At December 31, 2018, marketable securities consisted of the following (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Aggregate Fair Value Money market funds $ 52,068 $ — $ — $ 52,068 Commercial paper 7,448 — — 7,448 U.S. treasury debt securities 2,494 — (1) 2,493 U.S. corporate debt securities 10,890 — (67) 10,823 $ 72,900 $ — $ (68) $ 72,832 Included in cash and cash equivalents $ 52,068 $ — $ — $ 52,068 Included in marketable securities $ 20,832 $ — $ (68) $ 20,764 At December 31, 2017, marketable securities consisted of the following (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Aggregate Fair Value Money market funds $ 49,452 $ — $ — $ 49,452 U.S. treasury debt securities 3,083 — (8) 3,075 U.S. corporate debt securities 13,350 — (61) 13,289 $ 65,885 $ — $ (69) $ 65,816 Included in cash and cash equivalents $ 49,452 $ — $ — $ 49,452 Included in marketable securities $ 16,433 $ — $ (69) $ 16,364 |
Schedule of Available-for-sale Securities, Continuous Unrealized Loss Position | The following table presents gross unrealized losses and fair values for those marketable securities that were in an unrealized loss position as of December 31, 2018, aggregated by investment category and the length of time that individual securities have been in a continuous loss position (in thousands): As of December 31, 2018 Less than 12 months 12 months or greater Fair Value Unrealized Loss Fair Value Unrealized Loss U.S. treasury debt securities $ — $ — $ 998 $ (1) U.S. corporate debt securities 3,481 (5) 7,342 (62) Total $ 3,481 $ (5) $ 8,340 $ (63) |
Supplemental Consolidated Bal_2
Supplemental Consolidated Balance Sheet and Statement of Operations Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Property, Plant and Equipment | Property and equipment, net as of December 31, 2018 and 2017 consisted of (in thousands): As of December 31, 2018 2017 Buildings $ 36,608 $ 36,608 Computers, equipment and software 6,602 6,277 Furniture and fixtures 8,839 8,428 Vehicles 97 97 Leasehold improvements 7,678 4,669 Construction in process 15 — 59,839 56,079 Less: accumulated depreciation and amortization (18,371) (15,635) $ 41,468 $ 40,444 |
Schedule of Capital Leased Assets | The following assets included in property and equipment, net were acquired under capital and financing leases (see Note 6) (in thousands): As of December 31, 2018 2017 Buildings $ 36,608 $ 36,608 Computers and equipment — 666 36,608 37,274 Less: accumulated amortization (6,237) (5,891) $ 30,371 $ 31,383 |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities as of December 31, 2018 and 2017 consisted of (in thousands): As of December 31, 2018 2017 Accrued vacation $ 6,906 $ 6,087 Accrued commissions 7,265 3,297 Accrued bonuses 5,643 4,419 Estimated health insurance claims 1,100 1,090 ESPP employee contributions 2,156 1,419 Customer deposits 7,395 — Accrued other liabilities 5,888 4,117 $ 36,353 $ 20,429 |
Schedule of Other Income and (Expense), net | Other income, net for the years ended December 31, 2018, 2017 and 2016 consisted of (in thousands): For the year ended December 31, 2018 2017 2016 Interest income $ 1,278 $ 586 $ 286 Income from training reimbursement program — 1,578 1,141 Gains (losses) on foreign currency transactions 289 (372) 67 Other 224 (9) 6 $ 1,791 $ 1,783 $ 1,500 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets Measured on Recurring Basis | The following table presents information about our assets that are measured at fair value on a recurring basis using the above input categories (in thousands): Fair Value Measurements as of December 31, 2018 Fair Value Measurements as of December 31, 2017 Description Total Level 1 Level 2 Total Level 1 Level 2 Money market funds $ 52,068 $ 52,068 $ — $ 49,452 $ 49,452 $ — Commercial paper 7,448 — 7,448 — — — U.S. treasury debt securities 2,493 — 2,493 3,075 — 3,075 U.S. corporate debt securities 10,823 — 10,823 13,289 — 13,289 $ 72,832 $ 52,068 $ 20,764 $ 65,816 $ 49,452 $ 16,364 Included in cash and cash equivalents $ 52,068 $ 49,452 Included in marketable securities $ 20,764 $ 16,364 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Minimum Lease Payments | As of December 31, 2018, future estimated minimum lease payments under non-cancelable operating and financing leases were as follows (in thousands): Operating Leases Financing Obligations 2019 $ 4,755 $ 2,893 2020 3,723 2,893 2021 3,640 2,893 2022 3,363 2,655 2023 3,029 1,471 Thereafter 10,693 24,868 Total minimum lease payments $ 29,203 37,673 Less: Amount representing interest (19,243) Present value of financing obligations $ 18,430 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Stock-based Compensation Expense | Stock-based compensation expense was recorded in the following cost and expense categories consistent with the respective employee or service provider’s related cash compensation (in thousands): Year ended December 31, 2018 2017 2016 Cost of revenue Subscription and support $ 700 $ 738 $ 493 Professional services 619 465 411 Operating expenses Research and development 5,842 2,224 2,365 Sales and marketing 5,416 2,983 2,075 General and administrative 18,264 13,066 8,903 Total $ 30,841 $ 19,476 $ 14,247 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The fair value of our stock options and ESPP purchase rights was estimated assuming no expected dividends and the following weighted-average assumptions: Year ended December 31, 2018 2017 2016 Stock Options Expected term (in years) — 0.2 - 6.1 6.0 - 6.1 Risk-free interest rate — 1.5% - 2.2% 1.2% - 2.1% Expected volatility — 23.7% - 43.8% 43.0% - 45.3% ESPP Expected term (in years) 0.5 0.5 — Risk-free interest rate 1.8% - 2.4% 1.2% —% Expected volatility 22.2% - 36.4% 28.5% —% |
Schedule of Share-based Payment Award, ESPP, Valuation Assumptions | The fair value of our stock options and ESPP purchase rights was estimated assuming no expected dividends and the following weighted-average assumptions: Year ended December 31, 2018 2017 2016 Stock Options Expected term (in years) — 0.2 - 6.1 6.0 - 6.1 Risk-free interest rate — 1.5% - 2.2% 1.2% - 2.1% Expected volatility — 23.7% - 43.8% 43.0% - 45.3% ESPP Expected term (in years) 0.5 0.5 — Risk-free interest rate 1.8% - 2.4% 1.2% —% Expected volatility 22.2% - 36.4% 28.5% —% |
Schedule of Stock-Option Activity | The following table summarizes the option activity under the Plans for the year ended December 31, 2018: Options Weighted- Aggregate Intrinsic Value (in thousands) Outstanding at December 31, 2017 8,145,777 $ 13.33 7.0 $ 65,913 Granted — — Forfeited (264,864) 17.22 Exercised (1,480,738) 11.25 Outstanding at December 31, 2018 6,400,175 $ 13.65 6.1 $ 142,340 Exercisable at December 31, 2018 4,905,844 $ 12.88 5.6 $ 112,884 |
Summary of Restricted Stock Awards | The following table summarizes the restricted stock award activity under the Plan for the year ended December 31, 2018: Number of Shares Weighted-Average Grant Date Fair Value Unvested at December 31, 2017 163,332 13.40 Granted — — Forfeited — — Vested (163,332) 13.40 Unvested at December 31, 2018 — — |
Summary of Restricted Stock Units | The following table summarizes the restricted stock unit activity under the Plan for the year ended December 31, 2018: Number of Shares Weighted-Average Grant Date Fair Value Unvested at December 31, 2017 574,072 $ 14.51 Granted 2,295,322 24.84 Forfeited (47,733) 22.85 Vested (1) (462,400) 16.73 Unvested at December 31, 2018 2,359,261 $ 23.95 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income | The following table summarizes the activity of accumulated other comprehensive income during the years ended December 31, 2018, 2017 and 2016 (in thousands): Accumulated translation adjustment Accumulated unrealized holding gains (losses) on available-for-sale securities Accumulated other comprehensive income Balance at December 31, 2015 $ 280 $ (39) $ 241 Other comprehensive income 18 32 50 Balance at December 31, 2016 298 (7) 291 Other comprehensive loss (159) (60) (219) Balance at December 31, 2017 139 (67) 72 Other comprehensive income 26 — 26 Balance at December 31, 2018 $ 165 $ (67) $ 98 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table presents our revenues disaggregated by industry (in thousands). Certain amounts have been reclassified to conform with current period presentation. These reclassifications have no impact on total revenue. For the year ended December 31, 2018 Information technology $ 31,063 Consumer discretionary 28,325 Industrials 28,023 Diversified financials 27,335 Banks 23,818 Healthcare 21,672 Energy 19,617 Other 64,491 Total revenues $ 244,344 The following table presents our revenues disaggregated by type of good or service (in thousands): For the year ended December 31, 2018 Subscription and support $ 200,392 XBRL professional services 30,562 Other services 13,390 Total revenues $ 244,344 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | Loss before income tax provision (benefit) consisted of the following (in thousands): For the year ended December 31, 2018 2017 2016 United States $ (50,268) $ (44,246) $ (43,952) Foreign 444 (119) (1) Total $ (49,824) $ (44,365) $ (43,953) |
Schedule of Components of Income Tax Expense (Benefit) | The provision (benefit) for income taxes consisted of the following (in thousands): For the year ended December 31, 2018 2017 2016 Current State $ 48 $ 42 $ 12 Foreign 203 19 44 Total Current $ 251 $ 61 $ 56 Deferred Federal $ (8) $ — $ (32) Foreign 4 — — Total Deferred $ (4) $ — $ (32) Total $ 247 $ 61 $ 24 |
Schedule of Effective Income Tax Rate Reconciliation | The items accounting for the difference between income taxes computed at the federal statutory income tax rate and the provision for income taxes consisted of the following (in thousands): For the year ended December 31, 2018 2017 2016 Federal statutory rate 21.0 % 35.0 % 35.0 % Effect of: Tax benefit at federal statutory rate $ (10,463) $ (15,528) $ (15,384) State taxes, net of federal benefit (2,587) (1,802) (1,377) Revaluation of deferred tax items due to tax rate change (federal and state) — 22,880 — Revaluation of deferred tax asset for current year net operating loss due to tax rate change — 4,134 — Permanent differences including section 162(m) limitations, stock compensation, gain on foreign restructuring, and meals & entertainment 2,113 5,141 1,292 Tax benefit of federal R&D credit (3,289) (2,366) (1,781) Recognition of excess tax benefits related to share-based payments — (3,606) — Valuation allowance 14,044 (8,586) 17,013 Other 429 (206) 261 Total income tax provision $ 247 $ 61 $ 24 |
Schedule of Deferred Tax Assets and Liabilities | The components of deferred tax assets and liabilities were as follows (in thousands): As of December 31, 2018 2017 Deferred tax assets: Property and equipment $ 18 $ 15 Accruals and reserves 283 199 Deferred rent 1,601 931 Compensation and benefits 13,925 11,973 Deferred revenue 5,338 4,762 Net operating loss and credits 51,931 41,108 Other 701 167 Total deferred tax assets 73,797 59,155 Valuation allowance (72,683) (58,639) Total deferred tax assets 1,114 516 Deferred tax liabilities: Property and equipment (529) (440) Other deferred tax liabilities (587) (76) Deferred tax liabilities (1,116) (516) Total $ (2) $ — |
Schedule of Unrecognized Tax Benefits | A reconciliation of the gross unrecognized tax benefits is as follows (in thousands): For the year ended December 31, 2018 2017 2016 Unrecognized tax benefits-beginning of period $ 191 $ 168 $ — Additions for tax positions related to prior year — — 168 Reductions for tax positions related to prior year — — — Foreign currency adjustments (9) 23 — Additions for tax positions related to current year — — — Unrecognized tax benefits-end of period $ 182 $ 191 $ 168 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | A reconciliation of the denominator used in the calculation of basic and diluted loss per share is as follows (in thousands, except share and per share data): Year ended December 31, 2018 December 31, 2017 December 31, 2016 Class A Class B Class A Class B Class A Class B Numerator Net loss $ (38,733) $ (11,338) $ (33,016) $ (11,410) $ (31,644) $ (12,333) Denominator Weighted-average common shares outstanding - basic and diluted 33,758,623 9,881,785 30,929,899 10,688,939 29,265,605 11,405,528 Basic and diluted net loss per share $ (1.15) $ (1.15) $ (1.07) $ (1.07) $ (1.08) $ (1.08) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The anti-dilutive securities excluded from the weighted-average shares used to calculate the diluted net loss per common share were as follows: As of December 31, 2018 2017 2016 Shares subject to outstanding common stock options 6,400,175 8,145,777 7,532,455 Shares subject to unvested restricted stock awards — 163,332 353,335 Shares subject to unvested restricted stock units 2,359,261 574,072 381,952 Shares issuable pursuant to the ESPP 105,583 85,509 — |
Unaudited Quarterly Results o_2
Unaudited Quarterly Results of Operations (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | The following tables set forth selected unaudited quarterly consolidated statement of operations data for each of the quarters indicated as well as the percentage of total revenue for each line item shown. The unaudited information should be read in conjunction with our financial statements and related notes included elsewhere in this report. We believe that the following unaudited information reflects all normal recurring adjustments necessary for a fair presentation of the information for the periods presented. The operating results for any quarter are not necessarily indicative of results for any future period. Three months ended Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 (in thousands) Revenue Subscription and support $ 53,779 $ 51,306 $ 48,837 $ 46,470 $ 45,549 $ 43,214 $ 40,980 $ 39,540 Professional services 10,656 9,567 10,293 13,436 8,957 8,854 8,411 12,364 Total revenue 64,435 60,873 59,130 59,906 54,506 52,068 49,391 51,904 Cost of revenue Subscription and support 8,637 8,139 8,637 8,802 8,779 8,472 7,758 7,637 Professional services 8,757 7,520 7,659 7,709 7,310 7,180 6,528 6,581 Total cost of revenue 17,394 15,659 16,296 16,511 16,089 15,652 14,286 14,218 Gross profit 47,041 45,214 42,834 43,395 38,417 36,416 35,105 37,686 Operating expenses Research and development 20,773 19,984 20,718 20,127 18,870 17,527 16,239 15,536 Sales and marketing 23,011 24,068 22,252 21,006 21,949 23,712 19,787 18,713 General and administrative (1) (2) 11,047 11,864 21,654 11,768 12,271 8,959 8,943 9,421 Total operating expenses 54,831 55,916 64,624 52,901 53,090 50,198 44,969 43,670 Loss from operations (7,790) (10,702) (21,790) (9,506) (14,673) (13,782) (9,864) (5,984) Interest expense (480) (448) (449) (450) (451) (464) (475) (455) Other income, net 753 203 492 343 797 198 176 612 Loss before provision (benefit) for income taxes (7,517) (10,947) (21,747) (9,613) (14,327) (14,048) (10,163) (5,827) Provision (benefit) for income taxes 204 17 21 5 (6) 25 33 9 Net loss $ (7,721) $ (10,964) $ (21,768) $ (9,618) $ (14,321) $ (14,073) $ (10,196) $ (5,836) Net loss per common share: Basic and diluted $ (0.17) $ (0.25) $ (0.50) $ (0.22) $ (0.34) $ (0.34) $ (0.25) $ (0.14) Weighted-average common shares outstanding - basic and diluted 44,472,672 43,973,428 43,234,655 42,858,756 42,108,764 41,815,139 41,429,691 41,108,611 (1) During the fourth quarter of 2017, we recorded an additional $1.9 million to general and administrative expense due to certain severance arrangements. (2) During the second quarter of 2018, we recorded an additional $5.9 million and $3.6 million of cash-based and equity-based compensation, respectively, to general and administrative expense pursuant to a separation agreement with our former CEO. |
Organization and Significant _4
Organization and Significant Accounting Policies - Foreign Currency (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Gains (losses) on foreign currency transactions | $ 289 | $ (372) | $ 67 |
Organization and Significant _5
Organization and Significant Accounting Policies - Property and Equipment, net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation | $ 3.4 | $ 3.4 | $ 3.7 |
Amortization of assets under capital lease | $ 1.3 | $ 1.6 | $ 2.1 |
Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 3 years | ||
Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 10 years |
Organization and Significant _6
Organization and Significant Accounting Policies - Deferred Commissions, Revenue Recognition and Advertising Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Sales commissions amortization period | 3 years | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Advertising expense | $ 2.9 | $ 2.7 | $ 2.7 |
Subscription and support | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Revenue recognition, customer contract period, min | 3 months | ||
Revenue recognition, customer contract period, max | 36 months |
Organization and Significant _7
Organization and Significant Accounting Policies - Intangible Assets (Details) - Patents - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible asset, useful life | 10 years | |
Finite-lived intangible assets, accumulated amortization | $ 320 | $ 218 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
2,019 | 113 | |
2,020 | 113 | |
2,021 | 113 | |
2,022 | 113 | |
2,023 | 96 | |
Thereafter | $ 217 |
Organization and Significant _8
Organization and Significant Accounting Policies - Accounting Policies (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Capitalized cost, amortization period under new and prior guidance | 12 months | |
Accounting Standards Update 2014-09 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Capitalized cost, amortization period under new and prior guidance | 3 years | |
Pro Forma | Accounting Standards Update 2016-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease liability | $ 16 | |
Operating lease asset | $ 16 |
Organization and Significant _9
Organization and Significant Accounting Policies - Adoption of New Accounting Standards (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2018 | |
ASSETS | ||||||||||||
Accounts receivable, net | $ 65,107 | $ 28,800 | $ 65,107 | $ 28,800 | $ 45,700 | |||||||
Deferred commissions | 8,178 | 2,376 | 8,178 | 2,376 | 3,026 | |||||||
Deferred commissions, non-current | 10,569 | 0 | 10,569 | 0 | 4,655 | |||||||
Liabilities | ||||||||||||
Accrued expenses and other current liabilities | 36,353 | 20,429 | 36,353 | 20,429 | 27,385 | |||||||
Deferred revenue | 148,545 | 104,684 | 148,545 | 104,684 | 111,309 | |||||||
Deferred revenue, non-current | 25,171 | 22,709 | 25,171 | 22,709 | 22,952 | |||||||
Accumulated deficit | (307,027) | (265,337) | (307,027) | (265,337) | (256,956) | |||||||
Revenue | ||||||||||||
Total revenue | 64,435 | $ 60,873 | $ 59,130 | $ 59,906 | 54,506 | $ 52,068 | $ 49,391 | $ 51,904 | 244,344 | 207,869 | $ 178,646 | |
Operating expenses | ||||||||||||
Sales and marketing | 23,011 | 24,068 | 22,252 | 21,006 | 21,949 | 23,712 | 19,787 | 18,713 | 90,337 | 84,161 | 80,466 | |
Net loss | $ (7,721) | $ (10,964) | $ (21,768) | $ (9,618) | $ (14,321) | $ (14,073) | $ (10,196) | $ (5,836) | $ (50,071) | $ (44,426) | $ (43,977) | |
Net loss per common share: | ||||||||||||
Basic and diluted (in dollars per share) | $ (0.17) | $ (0.25) | $ (0.50) | $ (0.22) | $ (0.34) | $ (0.34) | $ (0.25) | $ (0.14) | $ (1.15) | $ (1.07) | $ (1.08) | |
Balances Without Adoption of ASC 606 | ||||||||||||
ASSETS | ||||||||||||
Accounts receivable, net | $ 37,528 | $ 28,800 | $ 37,528 | $ 28,800 | ||||||||
Deferred commissions | 4,593 | 2,376 | 4,593 | 2,376 | ||||||||
Deferred commissions, non-current | 0 | 0 | 0 | 0 | ||||||||
Liabilities | ||||||||||||
Accrued expenses and other current liabilities | 28,958 | 20,429 | 28,958 | 20,429 | ||||||||
Deferred revenue | 134,793 | 104,684 | 134,793 | 104,684 | ||||||||
Deferred revenue, non-current | 20,853 | 22,709 | 20,853 | 22,709 | ||||||||
Accumulated deficit | (323,295) | (265,337) | (323,295) | (265,337) | ||||||||
Operating expenses | ||||||||||||
Sales and marketing | 99,162 | |||||||||||
Net loss | $ (57,958) | |||||||||||
Net loss per common share: | ||||||||||||
Basic and diluted (in dollars per share) | $ (1.33) | |||||||||||
Accounting Standards Update 2014-09 | Effect of Change | ||||||||||||
ASSETS | ||||||||||||
Accounts receivable, net | 27,579 | $ 27,579 | 16,900 | |||||||||
Deferred commissions | 3,585 | 3,585 | 650 | |||||||||
Deferred commissions, non-current | 10,569 | 10,569 | 4,655 | |||||||||
Liabilities | ||||||||||||
Accrued expenses and other current liabilities | 7,395 | 7,395 | 6,956 | |||||||||
Deferred revenue | 13,752 | 13,752 | 6,625 | |||||||||
Deferred revenue, non-current | 4,318 | 4,318 | 243 | |||||||||
Accumulated deficit | 16,268 | 16,268 | $ 8,381 | |||||||||
Operating expenses | ||||||||||||
Sales and marketing | (8,825) | |||||||||||
Net loss | $ 7,887 | |||||||||||
Net loss per common share: | ||||||||||||
Basic and diluted (in dollars per share) | $ 0.18 | |||||||||||
Subscription and support | ||||||||||||
Revenue | ||||||||||||
Total revenue | 53,779 | $ 51,306 | $ 48,837 | $ 46,470 | 45,549 | $ 43,214 | $ 40,980 | $ 39,540 | $ 200,392 | 169,283 | $ 143,120 | |
Subscription and support | Balances Without Adoption of ASC 606 | ||||||||||||
Revenue | ||||||||||||
Total revenue | 199,575 | |||||||||||
Subscription and support | Accounting Standards Update 2014-09 | Effect of Change | ||||||||||||
Revenue | ||||||||||||
Total revenue | 817 | |||||||||||
Professional services | ||||||||||||
Revenue | ||||||||||||
Total revenue | $ 10,656 | $ 9,567 | $ 10,293 | $ 13,436 | $ 8,957 | $ 8,854 | $ 8,411 | $ 12,364 | 43,952 | $ 38,586 | $ 35,526 | |
Professional services | Balances Without Adoption of ASC 606 | ||||||||||||
Revenue | ||||||||||||
Total revenue | 45,707 | |||||||||||
Professional services | Accounting Standards Update 2014-09 | Effect of Change | ||||||||||||
Revenue | ||||||||||||
Total revenue | $ (1,755) |
Cash Equivalents and Marketab_3
Cash Equivalents and Marketable Securities - Schedule of Marketable Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | $ 77,584 | $ 60,333 |
Debt Securities, Available-for-sale [Line Items] | ||
Unrealized Gains | 0 | 0 |
Unrealized Losses | (68) | (69) |
Cash and cash equivalents and available-for-sale securities, amortized cost | 72,900 | 65,885 |
Cash and cash equivalents and available-for-sale securities | 72,832 | 65,816 |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 7,448 | |
Unrealized Gains | 0 | |
Unrealized Losses | 0 | |
Aggregate Fair Value | 7,448 | |
U.S. treasury debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 2,494 | 3,083 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (1) | (8) |
Aggregate Fair Value | 2,493 | 3,075 |
U.S. corporate debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 10,890 | 13,350 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (67) | (61) |
Aggregate Fair Value | 10,823 | 13,289 |
Money market funds | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | 52,068 | 49,452 |
Cash and cash equivalents, aggregate fair value | 52,068 | 49,452 |
Cash and cash equivalents | Money market funds | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | 52,068 | 49,452 |
Cash and cash equivalents, aggregate fair value | 52,068 | 49,452 |
Marketable securities | U.S. corporate debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 20,832 | 16,433 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (68) | (69) |
Aggregate Fair Value | $ 20,764 | $ 16,364 |
Cash Equivalents and Marketab_4
Cash Equivalents and Marketable Securities - Continuous Unrealized Loss Position (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Fair Value | |
Less than 12 months | $ 3,481 |
12 months or greater | 8,340 |
Unrealized Loss | |
Less than 12 months | (5) |
12 months or greater | (63) |
U.S. treasury debt securities | |
Fair Value | |
Less than 12 months | 0 |
12 months or greater | 998 |
Unrealized Loss | |
Less than 12 months | 0 |
12 months or greater | (1) |
U.S. corporate debt securities | |
Fair Value | |
Less than 12 months | 3,481 |
12 months or greater | 7,342 |
Unrealized Loss | |
Less than 12 months | (5) |
12 months or greater | $ (62) |
Supplemental Consolidated Bal_3
Supplemental Consolidated Balance Sheet and Statement of Operations Information - Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 59,839 | $ 56,079 |
Less: accumulated depreciation and amortization | (18,371) | (15,635) |
Property and equipment | 41,468 | 40,444 |
Capital Leases, Balance Sheet, Assets by Major Class, Net [Abstract] | ||
Financing leased assets, gross | 36,608 | 37,274 |
Less: accumulated amortization | (6,237) | (5,891) |
Financing leased assets | 30,371 | 31,383 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 36,608 | 36,608 |
Capital Leases, Balance Sheet, Assets by Major Class, Net [Abstract] | ||
Financing leased assets, gross | 36,608 | 36,608 |
Computers, equipment and software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 6,602 | 6,277 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 8,839 | 8,428 |
Vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 97 | 97 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 7,678 | 4,669 |
Construction in process | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 15 | 0 |
Computers and equipment | ||
Capital Leases, Balance Sheet, Assets by Major Class, Net [Abstract] | ||
Financing leased assets, gross | $ 0 | $ 666 |
Supplemental Consolidated Bal_4
Supplemental Consolidated Balance Sheet and Statement of Operations Information - Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Accrued Liabilities and Other Liabilities [Abstract] | |||
Accrued vacation | $ 6,906 | $ 6,087 | |
Accrued commissions | 7,265 | 3,297 | |
Accrued bonuses | 5,643 | 4,419 | |
Estimated health insurance claims | 1,100 | 1,090 | |
ESPP employee contributions | 2,156 | 1,419 | |
Customer deposits | 7,395 | 0 | |
Accrued other liabilities | 5,888 | 4,117 | |
Accrued expenses and other current liabilities | $ 36,353 | $ 27,385 | $ 20,429 |
Supplemental Consolidated Bal_5
Supplemental Consolidated Balance Sheet and Statement of Operations Information - Other Income, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Other Nonoperating Income (Expense) [Abstract] | |||||||||||
Interest income | $ 1,278 | $ 586 | $ 286 | ||||||||
Income from training reimbursement program | 0 | 1,578 | 1,141 | ||||||||
Gains (losses) on foreign currency transactions | 289 | (372) | 67 | ||||||||
Other | 224 | (9) | 6 | ||||||||
Other income, net | $ 753 | $ 203 | $ 492 | $ 343 | $ 797 | $ 198 | $ 176 | $ 612 | $ 1,791 | $ 1,783 | $ 1,500 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | $ 7,448 | |
U.S. treasury debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 2,493 | $ 3,075 |
U.S. corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 10,823 | 13,289 |
U.S. corporate debt securities | Marketable securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 20,764 | 16,364 |
Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents - money market funds | 52,068 | 49,452 |
Money market funds | Cash and cash equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents - money market funds | 52,068 | 49,452 |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 72,832 | 65,816 |
Recurring | Cash and cash equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents - money market funds | 52,068 | 49,452 |
Recurring | Marketable securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 20,764 | 16,364 |
Recurring | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 7,448 | 0 |
Recurring | U.S. treasury debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 2,493 | 3,075 |
Recurring | U.S. corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 10,823 | 13,289 |
Recurring | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents - money market funds | 52,068 | 49,452 |
Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 52,068 | 49,452 |
Recurring | Level 1 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Recurring | Level 1 | U.S. treasury debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Recurring | Level 1 | U.S. corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Recurring | Level 1 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents - money market funds | 52,068 | 49,452 |
Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 20,764 | 16,364 |
Recurring | Level 2 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 7,448 | 0 |
Recurring | Level 2 | U.S. treasury debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 2,493 | 3,075 |
Recurring | Level 2 | U.S. corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 10,823 | 13,289 |
Recurring | Level 2 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents - money market funds | $ 0 | $ 0 |
Deferred Costs (Details)
Deferred Costs (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Deferred costs | $ 18,700 |
Amortization expense for deferred costs | 10,100 |
Impairment loss | $ 0 |
Commitments and Contingencies -
Commitments and Contingencies - Lease Commitments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Rent expense | $ 5.6 | $ 4.7 | $ 3.9 |
Commitments and Contingencies_2
Commitments and Contingencies - Build to Suit (Details) - Ames, Iowa Building Lease $ in Millions | 1 Months Ended | 12 Months Ended | |
Jun. 20, 2013USD ($) | Dec. 31, 2018USD ($)phase | Dec. 31, 2014USD ($) | |
Property, Plant and Equipment [Line Items] | |||
Number of phases | phase | 2 | ||
Lessor committed fundings, phase 1 | $ 11.8 | ||
Lessor committed fundings, phase 2 | $ 11.1 | ||
Reclassification to financing obligation | $ 11.8 | $ 11.1 | |
Purchase option period | 3 years | ||
Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Assets placed into service | $ 17.1 | $ 19.9 |
Commitments and Contingencies_3
Commitments and Contingencies - Minimum Lease Payments Under Operating and Financing Leases (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Operating Leases | |
2,019 | $ 4,755 |
2,020 | 3,723 |
2,021 | 3,640 |
2,022 | 3,363 |
2,023 | 3,029 |
Thereafter | 10,693 |
Total minimum lease payments | 29,203 |
Financing Lease Obligation | |
Financing Obligations | |
2,019 | 2,893 |
2,020 | 2,893 |
2,021 | 2,893 |
2,022 | 2,655 |
2,023 | 1,471 |
Thereafter | 24,868 |
Total minimum lease payments | 37,673 |
Less: Amount representing interest | (19,243) |
Present value of financing obligations | $ 18,430 |
Commitments and Contingencies_4
Commitments and Contingencies - Government Grants (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Gain Contingencies [Line Items] | |||
Income from training reimbursement program | $ 0 | $ 1,578 | $ 1,141 |
Other income, net | |||
Gain Contingencies [Line Items] | |||
Income from training reimbursement program | $ 200 | $ 1,600 | $ 1,000 |
Commitments and Contingencies_5
Commitments and Contingencies - Other Purchase Commitments (Details) - Cloud infrastructure services - USD ($) $ in Millions | 1 Months Ended | |
Nov. 30, 2017 | Dec. 31, 2018 | |
Unrecorded Unconditional Purchase Obligation [Line Items] | ||
Other purchase commitments, term | 2 years | |
Other purchase commitments, due within twelve months | $ 2.7 |
Debt (Details)
Debt (Details) - Line of Credit - Silicon Valley Bank - USD ($) | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Nov. 30, 2018 | Aug. 31, 2014 | |
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 15,000,000 | ||||
Debt covenant, Minimum cash on hand or unused borrowing capacity | $ 5,000,000 | ||||
Interest rate at period end | 5.50% | ||||
Interest expense | $ 0 | $ 0 | $ 0 | ||
Issued letter of credit | $ 500,000 | ||||
Remaining borrowing capacity | $ 14,500,000 | ||||
Line of credit | $ 0 | $ 0 |
Stockholders' Equity (Deficit)
Stockholders' Equity (Deficit) (Details) | 12 Months Ended |
Dec. 31, 2018voteclass | |
Equity [Abstract] | |
Number of classes of common stock | class | 2 |
Class A Common Stock | |
Class of Stock [Line Items] | |
Common stock, number of votes per share | 1 |
Class B Common Stock | |
Class of Stock [Line Items] | |
Common stock, number of votes per share | 10 |
Common stock, conversion rate | 1 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) | Jun. 13, 2017 | Jun. 30, 2018 | Jun. 30, 2016 | Dec. 31, 2018 |
Employee Stock Purchase Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock purchase offering period | 6 months | |||
Employee Stock Purchase Plan | Class A Common Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares available for grant | 4,820,623 | |||
Purchase price of common stock, percentage of fair market value | 85.00% | |||
Maximum stock purchase value per employee | $ 12,500 | |||
2014 Equity Incentive Plan | Class A Common Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Increase in number of shares available for grant | 3,000,000 | 3,900,000 | ||
Number of shares available for grant | 3,091,981 |
Stock-Based Compensation - Expe
Stock-Based Compensation - Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based compensation expense | $ 30,841 | $ 19,476 | $ 14,247 |
Research and development | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based compensation expense | 5,842 | 2,224 | 2,365 |
Sales and marketing | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based compensation expense | 5,416 | 2,983 | 2,075 |
General and administrative | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based compensation expense | 18,264 | 13,066 | 8,903 |
Subscription and support | Cost of revenue | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based compensation expense | 700 | 738 | 493 |
Professional services | Cost of revenue | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based compensation expense | $ 619 | $ 465 | $ 411 |
Stock-Based Compensation - Assu
Stock-Based Compensation - Assumptions (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Employee stock options | |||
Weighted-Average Assumptions | |||
Expected term (in years) | 0 years | ||
Risk-free interest rate, min (as percent) | 1.50% | 1.20% | |
Risk-free interest rate, max (as percent) | 2.20% | 2.10% | |
Risk-free interest rate (as percent) | 0.00% | ||
Expected volatility, min (as percent) | 23.70% | 43.00% | |
Expected volatility, max (as percent) | 43.80% | 45.30% | |
Expected volatility (as percent) | 0.00% | ||
Employee stock options | Minimum | |||
Weighted-Average Assumptions | |||
Expected term (in years) | 2 months 12 days | 6 years | |
Employee stock options | Maximum | |||
Weighted-Average Assumptions | |||
Expected term (in years) | 6 years 1 month 6 days | 6 years 1 month 6 days | |
Employee Stock Purchase Plan | |||
Weighted-Average Assumptions | |||
Expected term (in years) | 6 months | 6 months | 0 years |
Risk-free interest rate, min (as percent) | 1.80% | ||
Risk-free interest rate, max (as percent) | 2.40% | ||
Risk-free interest rate (as percent) | 1.20% | 0.00% | |
Expected volatility, min (as percent) | 22.20% | ||
Expected volatility, max (as percent) | 36.40% | ||
Expected volatility (as percent) | 28.50% | 0.00% |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Options (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Options (in shares): | |||
Outstanding beginning of the period (in shares) | 8,145,777 | ||
Granted (in shares) | 0 | ||
Forfeited (in shares) | (264,864) | ||
Exercised (in shares) | (1,480,738) | ||
Outstanding end of the period (in shares) | 6,400,175 | 8,145,777 | |
Exercisable at end of the period (in shares) | 4,905,844 | ||
Weighted-Average Exercise Price (in dollars per share): | |||
Outstanding beginning of the period (in dollars per share) | $ 13.33 | ||
Granted (in dollars per share) | 0 | ||
Forfeited (in dollars per share) | 17.22 | ||
Exercised (in dollars per share) | 11.25 | ||
Outstanding end of the period (in dollars per share) | 13.65 | $ 13.33 | |
Exercisable at the end of the period (in dollars per share) | $ 12.88 | ||
Outstanding, weighted-average remaining contractual term (years) | 6 years 1 month 6 days | 7 years | |
Exercisable, weighted-average remaining contractual term (years) | 5 years 7 months 6 days | ||
Outstanding, aggregate intrinsic value | $ 142,340 | $ 65,913 | |
Exercisable, aggregate intrinsic value | 112,884 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||
Options exercised intrinsic value | 27,500 | $ 9,800 | $ 3,900 |
Options grants in period, weighted average grant date fair value (in dollars per share) | $ 6.79 | $ 6.79 | |
Options vested in period fair value | 12,400 | $ 10,200 | $ 9,300 |
Options unrecognized compensation expense | $ 8,300 | ||
Employee stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||
Options unrecognized compensation expense, period for recognition (years) | 2 years | ||
Class A Common Stock | Employee stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||
Expiration period (years) | 10 years | ||
Minimum | Class A Common Stock | Employee stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||
Award vesting period (years) | 3 years | ||
Maximum | Class A Common Stock | Employee stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||
Award vesting period (years) | 4 years |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Awards (Details) - Restricted stock awards - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vested in period, fair value | $ 2,200,000 | $ 2,700,000 | $ 3,300,000 |
Number of Shares (in shares) | |||
Unvested at beginning of period (in shares) | 163,332 | ||
Granted (in shares) | 0 | ||
Forfeited (in shares) | 0 | ||
Vested (in shares) | (163,332) | ||
Unvested at end of period (in shares) | 0 | 163,332 | |
Weighted- Average Grant Date Fair Value (in dollars per share) | |||
Unvested at beginning of period (in dollars per share) | $ 13.40 | ||
Granted (in dollars per share) | 0 | ||
Forfeited (in dollars per share) | 0 | ||
Vested (in dollars per share) | 13.40 | ||
Unvested at end of period (in dollars per share) | $ 0 | $ 13.40 | |
Unrecognized compensation expense | $ 0 | ||
Executive Officer | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period (years) | 3 years |
Stock-Based Compensation - Re_2
Stock-Based Compensation - Restricted Stock Units (Details) - Restricted stock units - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vested in period, fair value | $ 7.7 | $ 3.6 | |
Number of Shares (in shares) | |||
Unvested at beginning of period (in shares) | 574,072 | ||
Granted (in shares) | 2,295,322 | ||
Forfeited (in shares) | (47,733) | ||
Vested (in shares) | (462,400) | 0 | |
Unvested at end of period (in shares) | 2,359,261 | 574,072 | |
Weighted- Average Grant Date Fair Value (in dollars per share) | |||
Unvested at beginning of period (in dollars per share) | $ 14.51 | ||
Granted (in dollars per share) | 24.84 | ||
Forfeited (in dollars per share) | 22.85 | ||
Vested (in dollars per share) | 16.73 | ||
Unvested at end of period (in dollars per share) | $ 23.95 | $ 14.51 | |
Unrecognized compensation expense | $ 41.6 | ||
Unrecognized compensation expense, period for recognition (years) | 2 years 4 months 24 days | ||
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period (years) | 3 years | ||
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period (years) | 4 years | ||
Cliff-vesting | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period (years) | 3 years | ||
Cliff-vesting | Board of Directors | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period (years) | 1 year | ||
Deferred vesting | |||
Number of Shares (in shares) | |||
Vested (in shares) | (417,163) | ||
Weighted- Average Grant Date Fair Value (in dollars per share) | |||
Accumulated number of shares recipients have elected to defer settlement (in shares) | 554,621 |
Stock-Based Compensation - Empl
Stock-Based Compensation - Employee Stock Purchase Plan (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Proceeds from shares issued in connection with employee stock purchase plan | $ 3,216 | $ 0 | $ 0 |
Employee Stock Purchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation expense | $ 52 | ||
Unrecognized compensation expense, period for recognition (years) | 14 days | ||
Class A Common Stock | Employee Stock Purchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares issued during period | 179,377 | ||
Shares issued during period, weighted average price per share (in dollars per share) | $ 17.93 | ||
Proceeds from shares issued in connection with employee stock purchase plan | $ 3,200 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning of the period | $ (16,934) | $ (3,125) | $ 25,719 |
Other comprehensive income (loss) | 26 | (219) | 50 |
End of the period | (9,740) | (16,934) | (3,125) |
Accumulated translation adjustment | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning of the period | 139 | 298 | 280 |
Other comprehensive income (loss) | 26 | (159) | 18 |
End of the period | 165 | 139 | 298 |
Accumulated unrealized holding gains (losses) on available-for-sale securities | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning of the period | (67) | (7) | (39) |
Other comprehensive income (loss) | 0 | (60) | 32 |
End of the period | (67) | (67) | (7) |
Accumulated Other Comprehensive Income | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning of the period | 72 | 291 | 241 |
Other comprehensive income (loss) | 26 | (219) | 50 |
End of the period | $ 98 | $ 72 | $ 291 |
Segments (Details)
Segments (Details) - segment | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting [Abstract] | |||
Number of operating segments | 1 | ||
Number of reportable segments | 1 | ||
Revenue from contract with customer | Geographic concentration risk | United States | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 90.50% | 92.10% | 93.80% |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | $ 64,435 | $ 60,873 | $ 59,130 | $ 59,906 | $ 54,506 | $ 52,068 | $ 49,391 | $ 51,904 | $ 244,344 | $ 207,869 | $ 178,646 |
Subscription and support | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | $ 53,779 | $ 51,306 | $ 48,837 | $ 46,470 | $ 45,549 | $ 43,214 | $ 40,980 | $ 39,540 | 200,392 | $ 169,283 | $ 143,120 |
XBRL professional services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 30,562 | ||||||||||
Other services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 13,390 | ||||||||||
Information technology | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 31,063 | ||||||||||
Consumer discretionary | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 28,325 | ||||||||||
Industrials | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 28,023 | ||||||||||
Diversified financials | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 27,335 | ||||||||||
Banks | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 23,818 | ||||||||||
Healthcare | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 21,672 | ||||||||||
Energy | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 19,617 | ||||||||||
Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | $ 64,491 |
Revenue Recognition - Deferred
Revenue Recognition - Deferred Revenue and Transaction Price Allocated to the Remaining Performance Obligations (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Deferred revenue recognized | $ 103.9 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue expected to be recognized | $ 148.5 |
Expected period of recognition | 12 months |
Income Taxes - Income Before In
Income Taxes - Income Before Income Tax, Domestic and Foreign (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||||||||||
United States | $ (50,268) | $ (44,246) | $ (43,952) | ||||||||
Foreign | 444 | (119) | (1) | ||||||||
Loss before provision for income taxes | $ (7,517) | $ (10,947) | $ (21,747) | $ (9,613) | $ (14,327) | $ (14,048) | $ (10,163) | $ (5,827) | $ (49,824) | $ (44,365) | $ (43,953) |
Income Taxes - Components of Pr
Income Taxes - Components of Provision (Benefit) for Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current | |||||||||||
State | $ 48 | $ 42 | $ 12 | ||||||||
Foreign | 203 | 19 | 44 | ||||||||
Total Current | 251 | 61 | 56 | ||||||||
Deferred | |||||||||||
Federal | (8) | 0 | (32) | ||||||||
Foreign | 4 | 0 | 0 | ||||||||
Total Deferred | (4) | 0 | (32) | ||||||||
Total income tax provision | $ 204 | $ 17 | $ 21 | $ 5 | $ (6) | $ 25 | $ 33 | $ 9 | $ 247 | $ 61 | $ 24 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Federal income tax benefit | $ 8 | $ 0 | $ 32 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||||||||||
Federal statutory rate | 21.00% | 35.00% | 35.00% | ||||||||
Tax benefit at federal statutory rate | $ (10,463) | $ (15,528) | $ (15,384) | ||||||||
State taxes, net of federal benefit | (2,587) | (1,802) | (1,377) | ||||||||
Revaluation of deferred tax items due to tax rate change (federal and state) | 0 | 22,880 | 0 | ||||||||
Revaluation of deferred tax asset for current year net operating loss due to tax rate change | 0 | 4,134 | 0 | ||||||||
Permanent differences including section 162(m) limitations, stock compensation, gain on foreign restructuring, and meals & entertainment | 2,113 | 5,141 | 1,292 | ||||||||
Tax benefit of federal R&D credit | (3,289) | (2,366) | (1,781) | ||||||||
Recognition of excess tax benefits related to share-based payments | 0 | (3,606) | 0 | ||||||||
Valuation allowance | 14,044 | (8,586) | 17,013 | ||||||||
Other | 429 | (206) | 261 | ||||||||
Total income tax provision | $ 204 | $ 17 | $ 21 | $ 5 | $ (6) | $ 25 | $ 33 | $ 9 | $ 247 | $ 61 | $ 24 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets: | ||
Property and equipment | $ 18 | $ 15 |
Accruals and reserves | 283 | 199 |
Deferred rent | 1,601 | 931 |
Compensation and benefits | 13,925 | 11,973 |
Deferred revenue | 5,338 | 4,762 |
Net operating loss and credits | 51,931 | 41,108 |
Other | 701 | 167 |
Total deferred tax assets | 73,797 | 59,155 |
Valuation allowance | (72,683) | (58,639) |
Total deferred tax assets | 1,114 | 516 |
Deferred tax liabilities: | ||
Property and equipment | (529) | (440) |
Other deferred tax liabilities | (587) | (76) |
Deferred tax liabilities | (1,116) | (516) |
Total | $ (2) | $ 0 |
Income Taxes - Operating Loss C
Income Taxes - Operating Loss Carryforwards (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Domestic Tax Authority | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards | $ 160,900 |
State Tax Authority | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards | 126,200 |
Foreign Tax Authority | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards | $ 647 |
Income Taxes - Tax Credit Carry
Income Taxes - Tax Credit Carryforwards (Details) $ in Millions | Dec. 31, 2018USD ($) |
Domestic Tax Authority | |
Tax Credit Carryforward [Line Items] | |
Tax credit carryforward | $ 9.3 |
State Tax Authority | |
Tax Credit Carryforward [Line Items] | |
Tax credit carryforward | $ 1.8 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits-beginning of period | $ 191 | $ 168 | $ 0 |
Additions for tax positions related to prior year | 0 | 0 | 168 |
Reductions for tax positions related to prior year | 0 | 0 | 0 |
Foreign currency adjustments | (9) | ||
Foreign currency adjustments | 23 | 0 | |
Additions for tax positions related to current year | 0 | 0 | 0 |
Unrecognized tax benefits-end of period | 182 | 191 | 168 |
Interest and penalties | $ 0 | $ 0 | $ 0 |
Net Loss Per Share - Earnings P
Net Loss Per Share - Earnings Per Share Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Denominator | |||||||||||
Weighted-average common shares outstanding - basic and diluted (in shares) | 44,472,672 | 43,973,428 | 43,234,655 | 42,858,756 | 42,108,764 | 41,815,139 | 41,429,691 | 41,108,611 | 43,640,408 | 41,618,838 | 40,671,133 |
Basic and diluted net loss per share (in dollars per share) | $ (0.17) | $ (0.25) | $ (0.50) | $ (0.22) | $ (0.34) | $ (0.34) | $ (0.25) | $ (0.14) | $ (1.15) | $ (1.07) | $ (1.08) |
Class A Common Stock | |||||||||||
Numerator | |||||||||||
Net loss | $ (38,733) | $ (33,016) | $ (31,644) | ||||||||
Denominator | |||||||||||
Weighted-average common shares outstanding - basic and diluted (in shares) | 33,758,623 | 30,929,899 | 29,265,605 | ||||||||
Basic and diluted net loss per share (in dollars per share) | $ (1.15) | $ (1.07) | $ (1.08) | ||||||||
Class B Common Stock | |||||||||||
Numerator | |||||||||||
Net loss | $ (11,338) | $ (11,410) | $ (12,333) | ||||||||
Denominator | |||||||||||
Weighted-average common shares outstanding - basic and diluted (in shares) | 9,881,785 | 10,688,939 | 11,405,528 | ||||||||
Basic and diluted net loss per share (in dollars per share) | $ (1.15) | $ (1.07) | $ (1.08) |
Net Loss Per Share - Antidiluti
Net Loss Per Share - Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Shares subject to outstanding common stock options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 6,400,175 | 8,145,777 | 7,532,455 |
Shares subject to unvested restricted stock awards | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 0 | 163,332 | 353,335 |
Shares subject to unvested restricted stock units | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 2,359,261 | 574,072 | 381,952 |
Shares issuable pursuant to the ESPP | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 105,583 | 85,509 | 0 |
Unaudited Quarterly Results o_3
Unaudited Quarterly Results of Operations (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenue | |||||||||||
Total revenue | $ 64,435 | $ 60,873 | $ 59,130 | $ 59,906 | $ 54,506 | $ 52,068 | $ 49,391 | $ 51,904 | $ 244,344 | $ 207,869 | $ 178,646 |
Cost of revenue | |||||||||||
Total cost of revenue | 17,394 | 15,659 | 16,296 | 16,511 | 16,089 | 15,652 | 14,286 | 14,218 | 65,860 | 60,245 | 51,625 |
Gross profit | 47,041 | 45,214 | 42,834 | 43,395 | 38,417 | 36,416 | 35,105 | 37,686 | 178,484 | 147,624 | 127,021 |
Operating expenses | |||||||||||
Research and development | 20,773 | 19,984 | 20,718 | 20,127 | 18,870 | 17,527 | 16,239 | 15,536 | 81,602 | 68,172 | 57,438 |
Sales and marketing | 23,011 | 24,068 | 22,252 | 21,006 | 21,949 | 23,712 | 19,787 | 18,713 | 90,337 | 84,161 | 80,466 |
General and administrative | 11,047 | 11,864 | 21,654 | 11,768 | 12,271 | 8,959 | 8,943 | 9,421 | 56,333 | 39,594 | 32,695 |
Total operating expenses | 54,831 | 55,916 | 64,624 | 52,901 | 53,090 | 50,198 | 44,969 | 43,670 | 228,272 | 191,927 | 170,599 |
Loss from operations | (7,790) | (10,702) | (21,790) | (9,506) | (14,673) | (13,782) | (9,864) | (5,984) | (49,788) | (44,303) | (43,578) |
Interest expense | (480) | (448) | (449) | (450) | (451) | (464) | (475) | (455) | (1,827) | (1,845) | (1,875) |
Other income, net | 753 | 203 | 492 | 343 | 797 | 198 | 176 | 612 | 1,791 | 1,783 | 1,500 |
Loss before provision for income taxes | (7,517) | (10,947) | (21,747) | (9,613) | (14,327) | (14,048) | (10,163) | (5,827) | (49,824) | (44,365) | (43,953) |
Provision (benefit) for income taxes | 204 | 17 | 21 | 5 | (6) | 25 | 33 | 9 | 247 | 61 | 24 |
Net loss | $ (7,721) | $ (10,964) | $ (21,768) | $ (9,618) | $ (14,321) | $ (14,073) | $ (10,196) | $ (5,836) | $ (50,071) | $ (44,426) | $ (43,977) |
Basic and diluted (in dollars per share) | $ (0.17) | $ (0.25) | $ (0.50) | $ (0.22) | $ (0.34) | $ (0.34) | $ (0.25) | $ (0.14) | $ (1.15) | $ (1.07) | $ (1.08) |
Weighted-average common shares outstanding - basic and diluted (in shares) | 44,472,672 | 43,973,428 | 43,234,655 | 42,858,756 | 42,108,764 | 41,815,139 | 41,429,691 | 41,108,611 | 43,640,408 | 41,618,838 | 40,671,133 |
Subscription and support | |||||||||||
Revenue | |||||||||||
Total revenue | $ 53,779 | $ 51,306 | $ 48,837 | $ 46,470 | $ 45,549 | $ 43,214 | $ 40,980 | $ 39,540 | $ 200,392 | $ 169,283 | $ 143,120 |
Cost of revenue | |||||||||||
Total cost of revenue | 8,637 | 8,139 | 8,637 | 8,802 | 8,779 | 8,472 | 7,758 | 7,637 | 34,215 | 32,646 | 27,895 |
Professional services | |||||||||||
Revenue | |||||||||||
Total revenue | 10,656 | 9,567 | 10,293 | 13,436 | 8,957 | 8,854 | 8,411 | 12,364 | 43,952 | 38,586 | 35,526 |
Cost of revenue | |||||||||||
Total cost of revenue | $ 8,757 | $ 7,520 | 7,659 | $ 7,709 | 7,310 | $ 7,180 | $ 6,528 | $ 6,581 | $ 31,645 | $ 27,599 | $ 23,730 |
General and administrative | |||||||||||
Operating expenses | |||||||||||
Compensation expense | $ 1,900 | ||||||||||
Chief Executive Officer | General and administrative | |||||||||||
Operating expenses | |||||||||||
Compensation expense | 3,600 | ||||||||||
Severance costs | $ 5,900 |
Uncategorized Items - wk-201812
Label | Element | Value |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 8,381,000 |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 8,381,000 |