Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2020 | Jul. 24, 2020 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-38285 | |
Entity Registrant Name | BANDWIDTH INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 56-2242657 | |
Entity Address, Address Line One | 900 Main Campus Drive | |
Entity Address, City or Town | Raleigh | |
Entity Address, State or Province | NC | |
Entity Address, Postal Zip Code | 27606 | |
City Area Code | (800) | |
Local Phone Number | 808-5150 | |
Title of 12(b) Security | Class A Common Stock, par value $0.001 per share | |
Trading Symbol | BAND | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001514416 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Common Class A | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 20,669,553 | |
Common Class B | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 3,499,554 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 290,979 | $ 184,414 |
Restricted cash | 930 | 590 |
Other investments | 230,780 | 0 |
Accounts receivable, net of allowance for doubtful accounts | 41,779 | 30,187 |
Prepaid expenses and other current assets | 10,871 | 9,260 |
Deferred costs | 1,992 | 2,498 |
Total current assets | 577,331 | 226,949 |
Property and equipment, net | 43,770 | 41,654 |
Operating right-of-use asset | 18,699 | 21,031 |
Intangible assets, net | 6,309 | 6,569 |
Deferred costs, non-current | 3,042 | 1,952 |
Other long-term assets | 1,939 | 1,533 |
Goodwill | 6,867 | 6,867 |
Deferred tax asset, net | 0 | 34,861 |
Total assets | 657,957 | 341,416 |
Current liabilities: | ||
Accounts payable | 4,474 | 4,190 |
Accrued expenses and other current liabilities | 29,405 | 27,328 |
Current portion of deferred revenue | 5,236 | 5,177 |
Advanced billings | 4,523 | 4,167 |
Operating lease liability, current | 5,067 | 4,876 |
Total current liabilities | 48,705 | 45,738 |
Operating lease liability, net of current portion | 17,065 | 19,868 |
Deferred revenue, net of current portion | 6,352 | 5,720 |
Convertible senior notes | 272,901 | 0 |
Total liabilities | 345,023 | 71,326 |
Stockholders’ equity: | ||
Class A and Class B common stock | 24 | 24 |
Additional paid-in capital | 340,215 | 275,553 |
Accumulated deficit | (27,227) | (5,528) |
Accumulated other comprehensive income (loss) | (78) | 41 |
Total stockholders’ equity | 312,934 | 270,090 |
Total liabilities and stockholders’ equity | $ 657,957 | $ 341,416 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Income Statement [Abstract] | ||||
Revenue | $ 76,790 | $ 56,779 | $ 145,308 | $ 110,100 |
Cost of revenue | 42,009 | 30,110 | 78,368 | 58,876 |
Gross profit | 34,781 | 26,669 | 66,940 | 51,224 |
Operating expenses: | ||||
Research and development | 9,554 | 7,656 | 19,084 | 15,373 |
Sales and marketing | 8,655 | 8,514 | 18,072 | 16,863 |
General and administrative | 16,840 | 14,282 | 32,936 | 28,615 |
Total operating expenses | 35,049 | 30,452 | 70,092 | 60,851 |
Operating loss | (268) | (3,783) | (3,152) | (9,627) |
Other income (expense), net | (3,868) | 729 | (4,774) | 930 |
Loss before income taxes | (4,136) | (3,054) | (7,926) | (8,697) |
Income tax benefit (provision) | (16,505) | 6,526 | (13,773) | 14,161 |
Net income (loss) | $ (20,641) | $ 3,472 | $ (21,699) | $ 5,464 |
Net income (loss) per share | ||||
Basic (in usd per share) | $ (0.86) | $ 0.15 | $ (0.91) | $ 0.25 |
Diluted (in usd per share) | $ (0.86) | $ 0.14 | $ (0.91) | $ 0.23 |
Weighted average number of common shares outstanding: | ||||
Basic (in shares) | 23,973,663 | 23,102,553 | 23,768,616 | 21,807,523 |
Diluted (in shares) | 23,973,663 | 24,447,417 | 23,768,616 | 23,262,496 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ (20,641) | $ 3,472 | $ (21,699) | $ 5,464 |
Other comprehensive income (loss) | ||||
Unrealized gain on marketable securities, net of income taxes | 0 | 13 | 0 | 21 |
Foreign currency translation, net of income taxes | (23) | 12 | (119) | 12 |
Other comprehensive income (loss) | (23) | 25 | (119) | 33 |
Total comprehensive income (loss) | $ (20,664) | $ 3,497 | $ (21,818) | $ 5,497 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Stockholders’ Equity - USD ($) $ in Thousands | Total | Adjustment | Conversion of Class B voting common stock to Class A voting common stock | Class A voting common stock | Class B voting common stock | Common stockClass A voting common stock | Common stockClass A voting common stockConversion of Class B voting common stock to Class A voting common stock | Common stockClass B voting common stock | Common stockClass B voting common stockConversion of Class B voting common stock to Class A voting common stock | Additional paid-in capital | Accumulated other comprehensive income (loss) | Accumulated deficit | Accumulated deficitAdjustment |
Beginning balance (in shares) at Dec. 31, 2018 | 12,912,747 | 6,510,732 | |||||||||||
Beginning balance at Dec. 31, 2018 | $ 108,770 | $ (174) | $ 13 | $ 6 | $ 116,600 | $ (1) | $ (7,848) | $ (174) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Issuance of common stock (in shares) | 2,875,000 | ||||||||||||
Issuance of common stock | 147,391 | $ 3 | 147,388 | ||||||||||
Costs in connection with offering | (785) | (785) | |||||||||||
Exercises of vested stock options (in shares) | 589,510 | ||||||||||||
Exercises of vested stock options | 3,935 | $ 1 | 3,934 | ||||||||||
Vesting of restricted stock units (in shares) | 105,367 | ||||||||||||
Equity awards withheld for tax liability (in shares) | (16,585) | ||||||||||||
Equity awards withheld for tax liability | (938) | (938) | |||||||||||
Conversion of stock (in shares) | 57,230 | (57,230) | |||||||||||
Unrealized loss on marketable securities | 8 | 8 | |||||||||||
Stock based compensation | 1,676 | 1,676 | |||||||||||
Net income (loss) | 1,992 | 1,992 | |||||||||||
Ending balance (in shares) at Mar. 31, 2019 | 16,523,269 | 6,453,502 | |||||||||||
Ending balance at Mar. 31, 2019 | 261,875 | $ 17 | $ 6 | 267,875 | 7 | (6,030) | |||||||
Beginning balance (in shares) at Dec. 31, 2018 | 12,912,747 | 6,510,732 | |||||||||||
Beginning balance at Dec. 31, 2018 | 108,770 | $ (174) | $ 13 | $ 6 | 116,600 | (1) | (7,848) | $ (174) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net income (loss) | 5,464 | ||||||||||||
Ending balance (in shares) at Jun. 30, 2019 | 17,732,453 | 5,627,061 | |||||||||||
Ending balance at Jun. 30, 2019 | 269,125 | $ 18 | $ 5 | 271,628 | 32 | (2,558) | |||||||
Beginning balance (in shares) at Mar. 31, 2019 | 16,523,269 | 6,453,502 | |||||||||||
Beginning balance at Mar. 31, 2019 | 261,875 | $ 17 | $ 6 | 267,875 | 7 | (6,030) | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Costs in connection with offering | (49) | (49) | |||||||||||
Exercises of vested stock options (in shares) | 366,405 | ||||||||||||
Exercises of vested stock options | 2,446 | 2,446 | |||||||||||
Vesting of restricted stock units (in shares) | 20,003 | ||||||||||||
Equity awards withheld for tax liability (in shares) | (3,665) | ||||||||||||
Equity awards withheld for tax liability | (274) | (274) | |||||||||||
Conversion of stock (in shares) | 826,441 | (826,441) | |||||||||||
Conversion of stock | $ 0 | $ 1 | $ (1) | ||||||||||
Unrealized loss on marketable securities | 13 | 13 | |||||||||||
Foreign currency translation | 12 | 12 | |||||||||||
Stock based compensation | 1,630 | 1,630 | |||||||||||
Net income (loss) | 3,472 | 3,472 | |||||||||||
Ending balance (in shares) at Jun. 30, 2019 | 17,732,453 | 5,627,061 | |||||||||||
Ending balance at Jun. 30, 2019 | 269,125 | $ 18 | $ 5 | 271,628 | 32 | (2,558) | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Exercises of vested stock options (in shares) | 108,361 | ||||||||||||
Exercises of vested stock options | 868 | 868 | |||||||||||
Vesting of restricted stock units (in shares) | 19,064 | ||||||||||||
Equity awards withheld for tax liability (in shares) | (2,762) | ||||||||||||
Equity awards withheld for tax liability | (180) | (180) | |||||||||||
Conversion of stock (in shares) | 449,660 | (449,660) | |||||||||||
Unrealized loss on marketable securities | (21) | (21) | |||||||||||
Foreign currency translation | (46) | (46) | |||||||||||
Stock based compensation | 1,654 | 1,654 | |||||||||||
Net income (loss) | (1,014) | (1,014) | |||||||||||
Ending balance (in shares) at Sep. 30, 2019 | 18,306,776 | 5,177,401 | |||||||||||
Ending balance at Sep. 30, 2019 | 270,386 | $ 18 | $ 5 | 273,970 | (35) | (3,572) | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Exercises of vested stock options (in shares) | 11,206 | ||||||||||||
Exercises of vested stock options | 108 | 108 | |||||||||||
Vesting of restricted stock units (in shares) | 19,510 | ||||||||||||
Equity awards withheld for tax liability (in shares) | (3,014) | ||||||||||||
Equity awards withheld for tax liability | (191) | (191) | |||||||||||
Conversion of stock (in shares) | 250,000 | (250,000) | |||||||||||
Conversion of stock | 1 | $ 1 | |||||||||||
Unrealized loss on marketable securities | 1 | 1 | |||||||||||
Foreign currency translation | 75 | 75 | |||||||||||
Stock based compensation | 1,666 | 1,666 | |||||||||||
Net income (loss) | (1,956) | (1,956) | |||||||||||
Ending balance (in shares) at Dec. 31, 2019 | 18,584,478 | 4,927,401 | 18,584,478 | 4,927,401 | |||||||||
Ending balance at Dec. 31, 2019 | 270,090 | $ 19 | $ 5 | 275,553 | 41 | (5,528) | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Issuance of debt conversion option | 104,553 | 104,553 | |||||||||||
Debt conversion option issuance costs, net of tax | (3,731) | (3,731) | |||||||||||
Capped call option issuance costs | (43,320) | (43,320) | |||||||||||
Exercises of vested stock options (in shares) | 32,059 | ||||||||||||
Exercises of vested stock options | 244 | 244 | |||||||||||
Vesting of restricted stock units (in shares) | 103,824 | ||||||||||||
Equity awards withheld for tax liability (in shares) | (14,411) | ||||||||||||
Equity awards withheld for tax liability | (1,021) | (1,021) | |||||||||||
Conversion of stock (in shares) | 500,250 | (500,250) | |||||||||||
Conversion of stock | $ (1) | $ (1) | |||||||||||
Foreign currency translation | (96) | (96) | |||||||||||
Stock based compensation | 2,499 | 2,499 | |||||||||||
Net income (loss) | (1,058) | (1,058) | |||||||||||
Ending balance (in shares) at Mar. 31, 2020 | 19,206,200 | 4,427,151 | |||||||||||
Ending balance at Mar. 31, 2020 | 328,159 | $ 19 | $ 4 | 334,777 | (55) | (6,586) | |||||||
Beginning balance (in shares) at Dec. 31, 2019 | 18,584,478 | 4,927,401 | 18,584,478 | 4,927,401 | |||||||||
Beginning balance at Dec. 31, 2019 | 270,090 | $ 19 | $ 5 | 275,553 | 41 | (5,528) | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net income (loss) | (21,699) | ||||||||||||
Ending balance (in shares) at Jun. 30, 2020 | 20,555,717 | 3,599,554 | 20,555,717 | 3,599,554 | |||||||||
Ending balance at Jun. 30, 2020 | $ 312,934 | $ 20 | $ 4 | 340,215 | (78) | (27,227) | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201815Member | ||||||||||||
Beginning balance (in shares) at Mar. 31, 2020 | 19,206,200 | 4,427,151 | |||||||||||
Beginning balance at Mar. 31, 2020 | $ 328,159 | $ 19 | $ 4 | 334,777 | (55) | (6,586) | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Debt conversion option issuance costs, net of tax | (11) | (11) | |||||||||||
Exercises of vested stock options (in shares) | 502,182 | ||||||||||||
Exercises of vested stock options | 3,297 | $ 1 | 3,296 | ||||||||||
Vesting of restricted stock units (in shares) | 21,871 | ||||||||||||
Equity awards withheld for tax liability (in shares) | (2,133) | ||||||||||||
Equity awards withheld for tax liability | (272) | (272) | |||||||||||
Conversion of stock (in shares) | 827,597 | (827,597) | |||||||||||
Foreign currency translation | (23) | (23) | |||||||||||
Stock based compensation | 2,425 | 2,425 | |||||||||||
Net income (loss) | (20,641) | (20,641) | |||||||||||
Ending balance (in shares) at Jun. 30, 2020 | 20,555,717 | 3,599,554 | 20,555,717 | 3,599,554 | |||||||||
Ending balance at Jun. 30, 2020 | $ 312,934 | $ 20 | $ 4 | $ 340,215 | $ (78) | $ (27,227) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Cash flows from operating activities | ||
Net income (loss) | $ (21,699) | $ 5,464 |
Adjustments to reconcile net income (loss) to net cash used in operating activities | ||
Depreciation and amortization | 6,640 | 4,321 |
Right-of-use asset amortization | 2,332 | 1,999 |
Accretion of bond discount | 0 | (478) |
Amortization of debt discount and issuance costs | 6,314 | 139 |
Stock-based compensation | 4,924 | 3,306 |
Deferred taxes | 14,254 | (14,263) |
Loss on disposal of property and equipment | 260 | 351 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net of allowances | (11,609) | (2,683) |
Prepaid expenses and other assets | (2,041) | (3,586) |
Deferred costs | (584) | 1,290 |
Accounts payable | 41 | (95) |
Accrued expenses and other liabilities | 2,417 | 1,584 |
Deferred revenue and advanced billings | 1,047 | (1,047) |
Operating right-of-use liability | (2,612) | (1,714) |
Net cash used in operating activities | (316) | (5,412) |
Cash flows from investing activities | ||
Purchase of property and equipment | (7,550) | (7,844) |
Capitalized software development costs | (1,498) | (1,675) |
Purchase of marketable securities | 0 | (55,933) |
Proceeds from sales and maturities of marketable securities | 0 | 18,000 |
Purchase of other investments | (230,780) | 0 |
Net cash used in investing activities | (239,828) | (47,452) |
Cash flows from financing activities | ||
Proceeds from the follow-on public offering, net of underwriting discounts | 0 | 147,391 |
Payment of costs related to the follow-on public offering | 0 | (755) |
Proceeds from issuance of convertible senior notes | 400,000 | 0 |
Payment of debt issuance costs | (11,965) | (125) |
Purchase of capped call | (43,320) | 0 |
Proceeds from exercises of stock options | 3,540 | 6,381 |
Value of equity awards withheld for tax liabilities | (1,198) | (945) |
Net cash provided by financing activities | 347,057 | 151,947 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (8) | (1) |
Net increase in cash, cash equivalents, and restricted cash | 106,905 | 99,082 |
Cash, cash equivalents, and restricted cash, beginning of period | 185,004 | 41,501 |
Cash, cash equivalents, and restricted cash, end of period | 291,909 | 140,583 |
Supplemental disclosure of cash flow information | ||
Cash paid for interest | 32 | 96 |
Cash paid (refunded) for taxes | (154) | 157 |
Supplemental disclosure of noncash investing and financing activities | ||
Purchase of property and equipment, accrued but not paid | 1,082 | 2,725 |
Equity awards withheld for tax liabilities, accrued but not paid | $ 272 | $ 267 |
Organization and Description of
Organization and Description of Business | 6 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Description of Business | 1. Organization and Description of Business Bandwidth Inc. (together with its subsidiaries, “Bandwidth” or the “Company”) was founded in July 2000 and incorporated in Delaware on March 29, 2001. The Company’s headquarters are located in Raleigh, North Carolina. The Company is a cloud-based, software-powered communications platform-as-a-service (“CPaaS”) provider that enables enterprises to create, scale and operate voice or messaging communications services across any mobile application or connected device. The Company has two operating and reportable segments, CPaaS and Other. CPaaS revenue is derived from usage and monthly services fees charged for usage of Voice, Messaging, 911 and Phone Numbers solutions through the Company’s proprietary CPaaS software application programming interfaces. Other revenue consists of fees charged for services provided such as: SIP trunking, data resale, and a hosted Voice-over Internet Protocol (“VoIP”). The Other segment also includes revenue from traffic generated by other carriers, SMS registration fees and other miscellaneous product lines. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (the “SEC”) regarding interim financial reporting. Certain information and disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Company's Annual Report on Form 10-K filed with the SEC on February 21, 2020. The condensed consolidated balance sheet as of December 31, 2019, included herein, was derived from the audited financial statements as of that date, but does not include all disclosures, including certain notes required by GAAP on an annual reporting basis. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the financial position, results of operations, comprehensive income (loss) and cash flows for the interim periods, but are not necessarily indicative of the results of operations to be anticipated for the full year 2020 or any future period. Reclassification The Company reclassified certain prior year amounts to conform to the current year presentation. These reclassifications had no impact on the previously reported total assets, liabilities, stockholder’s deficit or net income. Principles of Consolidation The condensed consolidated financial statements include the accounts of Bandwidth Inc. and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of the Company’s condensed consolidated financial statements in conformity with GAAP requires the Company to make estimates and judgments that affect the amounts reported in these financial statements and accompanying notes. These estimates in the condensed consolidated financial statements include, but are not limited to, allowance for doubtful accounts, reserve for expected credit losses, reserve for sales credits, recoverability of long lived and intangible assets, discount rates used in the valuation of right-of-use assets and lease liabilities, the fair value of the liability and equity components of the Company’s Convertible Notes (as defined herein), estimated period of benefit, valuation allowances on deferred tax assets, certain accrued expenses, and contingencies. Although the Company believes that the estimates it uses are reasonable, due to the inherent uncertainty involved in making these estimates, actual results reported in future periods could differ from those estimates. Effective January 1, 2020, due to the continued growth in customers and low churn rates, the Company updated its calculation of the estimated period of benefit for nonrefundable upfront fees from 3 years to 4 years. For the three and six months ended June 30, 2020, the Company reduced total revenue by approximately $437 and $876, respectively, and reduced cost of revenue by approximately $247 and $566, respectively, related to the change in the estimated period of benefit. Cash and Cash Equivalents The Company classifies all highly liquid investments with stated maturities of three months or less from the date of purchase as cash equivalents and all highly liquid investments with stated maturities of greater than three months from the date of purchase as current marketable securities, with the exception of time deposits which are classified as other investments. Cash deposits are primarily in financial institutions in the United States. However, cash for monthly operating costs of international operations are deposited in banks outside the United States. The Company has a policy of making investments only with commercial institutions that have at least an investment grade credit rating. The Company invests its cash primarily in government securities and obligations, corporate debt securities, money market funds and reverse repurchase agreements (“RRAs”). RRAs are collateralized by deposits in the form of Government Securities and Obligations for an amount not less than 102% of their value. The Company does not record an asset or liability as the Company is not permitted to sell or repledge the associated collateral. The Company has a policy that the collateral has at least an “A” (or equivalent) credit rating. The Company utilizes a third-party custodian to manage the exchange of funds and ensure that collateral received is maintained at 102% of the value of the RRAs on a daily basis. RRAs with stated maturities of greater than three months from the date of purchase are classified as marketable securities. Restricted Cash Restricted cash consists primarily of customer deposits, employee withholding tax liability and employee benefits contributions not yet remitted. The Company has classified this asset as a short-term asset in order to match the expected period of restriction. See Note 8, “Debt” to these condensed consolidated financial statements, for further information. Accounts Receivable and Current Expected Credit Losses Accounts receivable are stated at realizable value, net of allowances, which includes an allowance for doubtful accounts and a reserve for expected credit losses. The allowance for doubtful accounts is based on management’s assessment of the collectability of its customer accounts. The Company regularly reviews the composition of the accounts receivable aging, historical bad debts, changes in payment patterns, customer creditworthiness, current economic trends, and reasonable and supportable forecasts about the future. Relevant risks characteristics include customer size and historical loss patterns. Management has evaluated the expected credit losses related to trade accounts receivable and determined that allowances of approximately $769 and $597 for uncollectible accounts and customer balances that are disputed were required as of December 31, 2019 and June 30, 2020, respectively. Refer to Note 4, “Financial Statement Components” to these condensed consolidated financial statements, for a rollforward of the components of the allowances as of December 31, 2019 and June 30, 2020. Refer to the Recently Adopted Accounting Standard section for the adoption of ASU 2019-11, Codification Improvements to Topic 326, Financial Instruments—Credit Losses for discussion of financial assets measured at amortized cost, including trade receivables. The Company includes unbilled receivables in its accounts receivable balance. Generally, these receivables represent services provided to customers, which will be billed in the next billing cycle. All amounts are considered collectible and billable. As of December 31, 2019 and June 30, 2020, unbilled receivables were $16,200 and $22,658, respectively. Concentration of Credit Risk Financial instruments that are exposed to concentration of credit risk consist primarily of cash and cash equivalents, marketable securities, other investments and trade accounts receivable. Cash deposits may be in excess of insured limits. The Company believes that the financial institutions that hold its cash deposits are financially sound and, accordingly, minimal credit risk exists with respect to these balances. With regard to customers, credit evaluation and account monitoring procedures are used to minimize the risk of loss. The Company believes that no additional credit risk beyond amounts provided for by the allowance for doubtful accounts are inherent in accounts receivable. As of December 31, 2019, no individual customer represented more than 10% of the Company’s accounts receivable, net of allowance for doubtful accounts. As of June 30, 2020, one individual customer represented approximately 11% of the Company’s accounts receivable, net of allowance for doubtful accounts. For the three and six months ended June 30, 2019, no individual customer represented more than 10% of the Company’s total revenue. For both the three and six months ended June 30, 2020, one individual customer represented approximately 10% of the Company's total revenue. Deferred Revenue and Customer Deposits Deferred revenue is recorded when cash payments are received in advance of future usage on contracts. Revenue is typically recognized in the following month as services are rendered or, in the case of nonrefundable upfront fees, over the estimated period of benefit from the date the fee is incurred by the customer. Customer refundable payments are recorded as advanced billings. During the three and six months ended June 30, 2020, the Company recognized revenue of $846 and $1,932 related to its contract liabilities as of December 31, 2019. The Company expects to recognize $5,236 in revenue over the next twelve months related to its contract liabilities as of June 30, 2020. Recently Adopted Accounting Standards In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ( “ 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 . This standard aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. ASU 2018-15 ’ s prospective adoption of this standard, the Company capitalized i mplementation costs related to cloud computing arrangements of $432 as of June 30, 2020. See Note 6, “Property and Equipment” to these condensed consolidated financial statements, for additional details. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement, which eliminates certain disclosure requirements for fair value measurements for all entities, requires public entities to disclose certain new information and modifies some disclosure requirements. ASU 2018-13 is effective for interim and annual reporting periods beginning after December 15, 2019 and for interim periods within those fiscal years. The adoption of this standard did not have a material impact on the Company ’ s financial statements. In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment , which simplifies the accounting for goodwill impairment. The ASU removes the second step of the goodwill impairment test that requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. ASU 2017-04 is effective for interim and annual reporting periods beginning after December 15, 2019. The adoption of this standard did not have a material impact on the Company’s financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments–Credit Losses: Measurement of Credit Losses on Financial Instruments , which changes the impairment model for most financial assets. The new model uses a forward-looking expected loss method, which will generally result in earlier recognition of allowances for losses. In November 2018, the FASB issued ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments – Credit Losses , which clarifies that receivables arising from operating leases are not within the scope of Topic 326, Financial Instruments – Credit Losses. Instead, impairment of receivables arising from operating leases should be accounted for in accordance with Topic 842, Leases. In April 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments, which clarifies how to apply certain aspects of the new credit losses standard. In November 2019, the FASB issued ASU 2019-10, Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates , which amends certain effective dates for the new standard. In November 2019, the FASB issued ASU 2019-11, Codification Improvements to Topic 326, Financial Instruments—Credit Losses , which clarifies how to apply certain aspects of the new credit losses standard. The accounting standard is effective for annual and interim periods beginning after December 15, 2019. The Company adopted this standard for financial assets measured at amortized cost, including trade receivables. Results for the reporting periods beginning after January 1, 2020 are presented under ASC 326, while prior period amounts continue to be reported in accordance with previously applicable GAAP. The adoption of this standard did not have a material impact on the Company’s financial statements. Recent Accounting Pronouncements Not Yet Adopted In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes , which is intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. ASU 2019-12 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption is permitted, including adoption in an interim period. The Company is evaluating the effect of adopting this new accounting guidance, but does not expect adoption will have a material impact on its financial statements. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 3. Fair Value Measurements The carrying amounts of cash and cash equivalents, other investments, accounts receivable, accounts payable and accrued expenses approximate fair value as of December 31, 2019 and June 30, 2020 because of the relatively short duration of these instruments. The Company evaluated its financial assets and liabilities subject to fair value measurements on a recurring basis to determine the appropriate level in which to classify them for each reporting period. The following table summarizes the assets measured at fair value as of December 31, 2019 and June 30, 2020: Fair value measurements on a recurring basis Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents: Money market account $ 25,000 $ — $ — $ 25,000 Time deposits 75,250 — — 75,250 Total financial assets $ 100,250 $ — $ — $ 100,250 Fair value measurements on a recurring basis Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents: Money market account $ 233,333 $ — $ — $ 233,333 Time deposits 25,195 — — 25,195 Total included in cash and cash equivalents 258,528 — — 258,528 Other investments: Time deposits 230,780 — — 230,780 Total financial assets $ 489,308 $ — $ — $ 489,308 As of June 30, 2020, the fair value of the Convertible Notes, as further described in Note 8, “Debt”, was approximately $598,500. The fair value was determined based on the closing price for the Convertible Notes on the last trading day of the reporting period and is considered as Level 2 in the fair value hierarchy. The money market account is included in cash and cash equivalents in the condensed consolidated balance sheets as of December 31, 2019 and June 30, 2020. During the three and six months ended June 30, 2019, there were $9,000 and $18,000 in maturities of marketable securities, respectively. Interest earned on marketable securities was $3 and $6 for the three and six months ended June 30, 2019, respectively, and $0 for the three and six months ended June 30, 2020, and is recorded within other income (expense), net, in the accompanying condensed consolidated statements of operations. |
Financial Statement Components
Financial Statement Components | 6 Months Ended |
Jun. 30, 2020 | |
Financial Statement Components [Abstract] | |
Financial Statement Components | 4. Financial Statement Components Accounts receivable, net of allowances consist of the following: As of December 31, As of June 30, 2019 2020 Trade accounts receivable $ 14,692 $ 19,122 Unbilled accounts receivable 16,200 22,658 Allowance for doubtful accounts and reserve for expected credit losses (769) (597) Other accounts receivable 64 596 Total accounts receivable, net $ 30,187 $ 41,779 Components of allowance for doubtful accounts and reserve for expected credit losses are as follows: Three months ended June 30, Six months ended June 30, 2019 2020 2019 2020 Balance, beginning of period $ (1,018) $ (883) $ (906) $ (769) Charged to bad debt expense (284) 9 (416) (180) Deductions (1) 209 277 229 352 Balance, end of period $ (1,093) $ (597) $ (1,093) $ (597) ________________________ (1) Write off of uncollectible accounts after all collection efforts have been exhausted. Accrued expenses and other current liabilities consisted of the following: As of December 31, As of June 30, 2019 2020 Accrued expense $ 12,701 $ 15,578 Accrued compensation and benefits 8,284 7,789 Accrued sales, use, and telecom related taxes 5,439 5,633 Other accrued expenses 904 405 Total accrued expenses and other current liabilities $ 27,328 $ 29,405 |
Right-of-Use Asset and Lease Li
Right-of-Use Asset and Lease Liabilities | 6 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Right-of-Use Asset and Lease Liabilities | 5. Right-of-Use Asset and Lease Liabilities In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). Under the new standard, lessees are required to recognize in the balance sheet the right-of-use (“ROU”) assets and lease liabilities that arise from operating leases. As a result of the Company no longer qualifying as an “emerging growth company” based on its public float as of the end of the fiscal quarter ended June 30, 2019, the ASU was adopted as of December 31, 2019 with an effective date as of the beginning of the Company’s fiscal year, January 1, 2019. The standard was applied to the operating leases that existed on that date using the optional alternative method on a prospective basis. Prior year comparative financial information was recast under the new standard to be presented under ASC 842. ROU assets represent the Company’s right to use an underlying asset for the lease term, and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. The Company determines if an arrangement is a lease at inception. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The Company did not have any finance leases as of June 30, 2020. The Company presents the operating leases in long-term assets and current and long-term liabilities in the accompanying condensed consolidated balance sheet as of June 30, 2020. The Company sub-leases approximately 17,073 square feet of office space to a related party, Republic Wireless, Inc. ( “ Republic ” ). Future minimum sub-lease receipts required under the non-cancellable lease are as follows: As of June 30, 2020 2020 (remaining) $ 225 2021 457 2022 249 $ 931 As of June 30, 2020, the Company had six leased properties, with remaining lease terms of 2.08 years to 5.17 years, some of which include options to extend the leases for up to 5 years. None of the options to extend the leases are recognized in operating lease ROU assets or lease liabilities. None of the leases include options to terminate the lease. The components of lease expense recorded in the condensed consolidated statement of operations were as follows: Three months ended June 30, Six months ended June 30, 2019 2020 2019 2020 Operating lease cost $ 1,434 $ 1,461 $ 2,653 $ 2,922 Sublease income (1) (200) (96) (451) (192) Total net lease cost $ 1,234 $ 1,365 $ 2,202 $ 2,730 ________________________ (1) See Note 15, “Related Parties” to these condensed consolidated financial statements, for additional details on sublease income. Supplemental balance sheet information related to leases was as follows: As of December 31, As of June 30, Leases Classification 2019 2020 Assets: Operating lease assets Operating ROU asset, net of accumulated amortization (1) $ 21,031 $ 18,699 Total leased assets $ 21,031 $ 18,699 Liabilities: Current Operating Operating lease liability, current $ 4,876 $ 5,067 Non-current Operating Operating lease liability, non-current 19,868 17,065 Total lease liabilities $ 24,744 $ 22,132 ________________________ (1) Operating lease assets are recorded net of accumulated amortization of $4,269 and $6,601 as of December 31, 2019 and June 30, 2020, respectively. Supplemental cash flow and other information related to leases was as follows: Six months ended June 30, 2019 2020 Cash paid for amounts included in the measurement of operating lease liabilities $ 1,714 $ 2,612 Weighted average remaining operating lease term (in years) 4.76 3.88 Weighted average operating lease discount rate 5.00 % 4.99 % Maturities of operating lease liabilities were as follows: As of June 30, 2020 2020 (remaining) $ 2,705 2021 6,587 2022 6,302 2023 5,926 2024 1,987 2025 949 Total lease payments 24,456 Less: imputed interest (2,304) Less: accrued lease incentive (20) Total lease obligations 22,132 Less: current obligations (5,067) Long-term lease obligations $ 17,065 |
Property and Equipment
Property and Equipment | 6 Months Ended |
Jun. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | 6. Property and Equipment Property and equipment, net consisted of the following: As of December 31, As of June 30, 2019 2020 Furniture and fixtures $ 2,373 $ 2,388 Computer and office equipment 4,627 4,764 Telecommunications equipment 44,324 50,431 Leasehold improvements 5,263 5,846 Software 2,018 2,427 Internal-use software development 17,952 19,183 Automobile 10 10 Total cost 76,567 85,049 Less—accumulated depreciation (34,913) (41,279) Total property and equipment, net $ 41,654 $ 43,770 The Company capitalized $1,080 and $1,675 of software development costs in the three and six months ended June 30, 2019, respectively, and $708 and $1,498 in the three and six months ended June 30, 2020, respectively. Amortization expense related to capitalized software development costs were $384 and $1,173 for the three and six months ended June 30, 2019, respectively, and $588 and $1,170 for the three and six months ended June 30, 2020, respectively. As of June 30, 2020, unamortized implementation costs related to cloud computing arrangements are $432, of which $104 are included in prepaid expenses and other current assets and $328 are included in other long-term assets. The Company recognized depreciation expense, which includes amortization of capitalized software development costs, as follows: Three months ended June 30, Six months ended June 30, 2019 2020 2019 2020 Cost of revenue $ 1,530 $ 2,340 $ 2,823 $ 4,674 Research and development 63 129 131 244 Sales and marketing 24 31 52 60 General and administrative 365 712 1,055 1,402 Total depreciation expense $ 1,982 $ 3,212 $ 4,061 $ 6,380 |
Intangible Assets
Intangible Assets | 6 Months Ended |
Jun. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | 7. Intangible Assets Intangible assets, net consisted of the following as of December 31, 2019: Gross Accumulated Net Carrying Amortization (Years) Customer relationships $ 10,396 $ (4,591) $ 5,805 20 Other, definite lived 3,933 (3,933) — 2 - 7 Licenses, indefinite lived 764 — 764 Indefinite Total intangible assets, net $ 15,093 $ (8,524) $ 6,569 Intangible assets, net consisted of the following as of June 30, 2020: Gross Accumulated Net Carrying Amortization (Years) Customer relationships $ 10,396 $ (4,851) $ 5,545 20 Other, definite lived 3,933 (3,933) — 2 - 7 Licenses, indefinite lived 764 — 764 Indefinite Total intangible assets, net $ 15,093 $ (8,784) $ 6,309 Amortization expense for definite lived intangible assets was $130 and $260 for the three and six months ended June 30, 2019, respectively, and $130 and $260 for the three and six months ended June 30, 2020, respectively. The remaining amortization period for definite lived intangible assets is 11 years. Future estimated amortization expense for definite lived intangible assets is as follows: As of June 30, 2020 2020 (remaining) $ 260 2021 520 2022 520 2023 520 2024 520 Thereafter 3,205 $ 5,545 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Debt | 8. Debt Revolving Loan On February 25, 2020, the Company entered into a waiver agreement with respect to its revolving loan (the “Credit Facility”) with KeyBank National Association and Pacific Western Bank (the “Lenders”), which provides for consent to accommodate the issuance of the Convertible Notes and entry into the Capped Calls (as defined below). The waiver agreement (“Cash Collateral Requirement”) requires the Company to covenant with the Lenders to deposit an amount of funds into a controlled account, which will restrict the ability to use such funds until the Credit Facility is paid in full or terminated. If the Company fails to comply with these covenants or to make payments under its indebtedness when due, the Company would be in default under that indebtedness, which could, in turn, result in that indebtedness becoming immediately payable in full. On April 27, 2020, the First Amendment Agreement to the Credit Security Agreement was executed in which the Lenders consented to remove the cash collateral requirement and to terminate the controlled account. As of December 31, 2019, unamortized debt issuance costs were $125, of which $70 were in included in prepaid expenses and other current assets and $55 were included in other long-term assets. As of June 30, 2020, the outstanding debt issuance costs are $96, of which $62 are included in prepaid expenses and other current assets and $34 are included in other long-term assets. As of December 31, 2019 and June 30, 2020, the Company had $0 outstanding on the Credit Facility and was in compliance with all financial and non-financial covenants for all periods presented. The available borrowing capacity under the Credit Facility was $25,000 as of June 30, 2020. Convertible Senior Notes and Capped Call Transactions On February 28, 2020, the Company issued $400,000 aggregate principal amount of 0.25% Convertible Notes due March 1, 2026 in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act (the “Convertible Notes”). The interest on the Convertible Notes is payable semi-annually in arrears on March 1 and September 1 of each year, beginning on September 1, 2020. The Convertible Notes may bear special interest under specified circumstances relating to the Company's failure to comply with its reporting obligations under the indenture governing the Convertible Notes (the “indenture”) or if the Convertible Notes are not freely tradeable as required by the indenture. The Convertible Notes will mature on March 1, 2026, unless earlier repurchased, redeemed by the Company, or converted pursuant to their terms. The total net proceeds from the Convertible Notes, after deducting initial purchaser discounts, costs related to the Capped Calls, and debt issuance costs, paid by the Company, were approximately $344,757. Each $1 principal amount of the Convertible Notes is initially convertible into 10.9857 shares of the Company's Class A common stock, par value $0.001 per share, which is equivalent to an initial conversion price of approximately $91.03 per share. The conversion rate is subject to adjustment upon the occurrence of certain specified events but will not be adjusted for any accrued and unpaid special interest. In addition, upon the occurrence of a make-whole fundamental change, as defined in the indenture, the Company will, in certain circumstances, increase the conversion rate by a number of additional shares for a holder that elects to convert its Convertible Notes in connection with such make-whole fundamental change or during the relevant redemption period. The Convertible Notes will be redeemable in whole or in part at the Company's option on or after March 6, 2023, but before the 40th scheduled trading day before the maturity date, at a cash redemption price equal to 100% of the principal amount of the Convertible Notes to be redeemed, plus accrued and unpaid interest, if any, if the last reported sale price of the Class A common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading days ending on, and including, the trading day immediately before the date the redemption notices were sent; and the trading day immediately before such notices were sent. Prior to the close of business on the business day immediately preceding September 1, 2025, the Convertible Notes may be convertible at the option of the holders only under the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on June 30, 2020 (and only during such calendar quarter), if the last reported sale price per share of the Company's Class A common stock exceeds 130% of the conversion price for each of at least 20 trading days, whether or not consecutive, during the 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter; (2) during the five consecutive business days immediately after any 10 consecutive trading day period (such 10 consecutive trading day period, the “measurement period”) in which the trading price per $1 principal amount of Convertible Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price per share of the Company's Class A common stock on such trading day and the conversion rate on such trading day; (3) upon the occurrence of certain corporate events or distributions on its Class A common stock; and (4) if the Company calls such Convertible Notes for redemption. On or after September 1, 2025, until the close of business on the second scheduled trading day immediately preceding the maturity date, holders of the Convertible Notes may, at their option, convert all or a portion of their Convertible Notes regardless of the foregoing conditions. Upon conversion, the Company will pay or deliver, as the case may be, cash, shares of Class A common stock, or a combination of cash and shares of Class A common stock, at the Company's election. It is the Company's current intent to settle the principal amount of the Convertible Notes with cash. During the three months ended June 30, 2020, the conditions allowing holders of the Convertible Notes to convert were not met. No sinking fund is provided for the Convertible Notes. Upon the occurrence of a fundamental change (as defined in the indenture) prior to the maturity date, holders may require the Company to repurchase all or a portion of the Convertible Notes for cash at a price equal to the principal amount of the Convertible Notes to be repurchased, plus any accrued and unpaid interest to, but excluding, the fundamental change repurchase date. The Convertible Notes are the senior, unsecured obligations of the Company and are equal in right of payment with the Company’s existing and future senior unsecured indebtedness, senior in right of payment to the Company’s existing and future indebtedness that is expressly subordinated to the Convertible Notes and effectively subordinated to the Company’s existing and future senior secured indebtedness (including the Company’s $25,000 Credit Facility), to the extent of the value of the collateral securing that indebtedness. The Convertible Notes will be structurally subordinated to all existing and future indebtedness and other liabilities, including trade payables, and preferred equity, if any, of the Company’s subsidiaries. In accounting for the issuance of the Convertible Notes, the Company separated the Convertible Notes into liability and equity components. The carrying amount of the liability component was calculated by measuring the fair value of a similar debt instrument that does not have an associated convertible feature. The carrying amount of the equity component representing the conversion option was $125,160 and was determined by deducting the fair value of the liability component from the par value of the Convertible Notes. The difference represents the debt discount that is amortized to interest expense at an effective interest rate of 6.763% over the term of the Convertible Notes. The carrying amount of the equity component was $57,491 and is recorded in additional paid-in-capital. The equity component is not remeasured as long as it continues to meet the conditions for equity classification. The excess of the principal amount of the liability component over its carrying amount, or the debt discount, is amortized to interest expense at an annual effective interest rate of 6.805% over the contractual terms of the Convertible Notes. In accounting for the transaction costs related to the Convertible Notes, the Company allocated the total amount incurred to the liability and equity components of the Convertible Notes based on the proportion of the proceeds allocated to the debt and equity components. Issuance costs attributable to the liability component were approximately $8,217, were recorded as an additional debt discount and are amortized to interest expense using the effective interest method over the contractual terms of the Convertible Notes. Issuance costs attributable to the equity component of $3,742 were netted with the equity component in stockholders’ equity. The net carrying amount of the liability component of the Convertible Notes was as follows: As of June 30, 2020 Principal $ 400,000 Unamortized discount (119,269) Unamortized debt issuance costs (7,830) Net carrying amount $ 272,901 The net carrying amount of the equity component of the Convertible Notes was as follows: As of June 30, 2020 Proceeds allocated to the conversion options (debt discount) $ 125,160 Issuance costs (3,742) Net carrying amount $ 121,418 The following table sets forth the interest expense recognized related to the Convertible Notes: Three months ended June 30, Six months ended June 30, 2020 2020 Contractual interest expense $ 249 $ 345 Amortization of debt issuance costs 4,262 5,891 Amortization of debt discount 280 386 Total interest expense related to the Convertible Notes $ 4,791 $ 6,622 In connection with the offering of the Convertible Notes, the Company entered into privately negotiated capped call transactions with certain counterparties (the “Capped Calls”). The Capped Calls each have an initial |
Segment and Geographic Informat
Segment and Geographic Information | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information | 9. Segment and Geographic Information The Company has two reportable segments, CPaaS and Other. Segments are primarily evaluated based on revenue and gross profit. The Company does not allocate operating expenses, interest expense or income tax expense to its segments. Accordingly, the Company does not report such information. Additionally, the Chief Operating Decision Maker does not evaluate the Company’s operating segments using discrete asset information. The segments share the majority of the Company’s assets. Therefore, no segment asset information is reported. Three months ended June 30, Six months ended June 30, 2019 2020 2019 2020 CPaaS Revenue $ 47,989 $ 67,076 $ 93,002 $ 126,197 Cost of revenue 26,473 37,229 51,773 69,121 Gross profit $ 21,516 $ 29,847 $ 41,229 $ 57,076 Other Revenue $ 8,790 $ 9,714 $ 17,098 $ 19,111 Cost of revenue 3,637 4,780 7,103 9,247 Gross profit $ 5,153 $ 4,934 $ 9,995 $ 9,864 Consolidated Revenue $ 56,779 $ 76,790 $ 110,100 $ 145,308 Cost of revenue 30,110 42,009 58,876 78,368 Gross profit $ 26,669 $ 34,781 $ 51,224 $ 66,940 The Company's long-lived assets were primarily held in the United States as of December 31, 2019 and June 30, 2020. As of December 31, 2019 and June 30, 2020, long-lived assets held outside of the United States were $2,924 and $2,321, respectively. The Company generates its revenue primarily in the United States. Revenue by geographic area is detailed in the table below (which is determined based on the customer billing address): Three months ended June 30, Six months ended June 30, 2019 2020 2019 2020 CPaaS United States $ 47,907 $ 65,207 $ 92,851 $ 122,605 International 82 1,869 151 3,592 Total $ 47,989 $ 67,076 $ 93,002 $ 126,197 Other United States $ 8,722 $ 9,418 $ 16,951 $ 18,543 International 68 296 147 568 Total $ 8,790 $ 9,714 $ 17,098 $ 19,111 |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Stockholders' Equity | 10. Stockholders’ Equity Preferred Stock As of December 31, 2019 and June 30, 2020, the Company had authorized 10,000,000 shares of undesignated preferred stock, par value $0.001, of which no shares were issued and outstanding. Common Stock As of December 31, 2019 and June 30, 2020, the Company had authorized 100,000,000 shares of Class A common stock, par value $0.001 per share, with one vote per share and 20,000,000 shares of Class B common stock, par value $0.001 per share, with ten votes per share. As of December 31, 2019, 18,584,478 and 4,927,401 shares of Class A common stock and Class B common stock, respectively, were issued and outstanding. As of June 30, 2020, 20,555,717 and 3,599,554 shares of Class A common stock and Class B common stock, respectively, were issued and outstanding. Shares of Class B common stock are convertible into shares of Class A common stock upon the stockholder’s voluntary written notice to the Company’s transfer agent or a transfer by the stockholder, subject to limited exceptions for transfers for estate planning purposes. Reserved Shares The Company had reserved shares of Class A common stock for issuance under stock-based award agreements as follows: As of December 31, As of June 30, 2019 2020 Stock options issued and outstanding 853,399 313,956 Nonvested restricted stock units issued and outstanding 392,351 468,797 Stock-based awards available for grant under the 2017 Plan 1,310,354 2,037,531 2,556,104 2,820,284 |
Stock Based Compensation
Stock Based Compensation | 6 Months Ended |
Jun. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock Based Compensation | 11. Stock Based Compensation 2010 Stock Option Plan As of July 26, 2010, the Company adopted the 2010 Equity Compensation Plan (the “2010 Plan”). On November 9, 2017, the 2010 Plan was terminated in connection with the Company’s initial public offering. Accordingly, no shares are available for future issuance under the 2010 Plan. However, the 2010 Plan continues to govern the terms and conditions of the outstanding awards granted thereunder. 2017 Incentive Award Plan The Company’s 2017 Incentive Award Plan (the “2017 Plan”) became effective on November 9, 2017. The 2017 Plan provides for the grant of stock options, including incentive stock options and non-qualified stock options, stock appreciation rights, restricted stock, dividend equivalents, restricted stock units, and other stock or cash based awards to employees, consultants and directors of the Company. A total of 1,050,000 shares of the Company’s Class A common stock were originally reserved for issuance under the 2017 Plan. These available shares automatically increase each January 1, beginning on January 1, 2018, by 5% of the number of shares of the Company’s Class A common stock outstanding on the final day of the immediately preceding calendar year. On January 1, 2020, the shares available for grant under the 2017 Plan were automatically increased by 929,224 shares. The terms of the stock option grants are determined by the Company’s Board of Directors. The Company’s stock options vest based on terms of the stock option agreements, which is generally over four years. The stock options have a contractual life of ten years. Restricted stock units (“RSUs”) granted under the 2017 Plan are subject to a time-based vesting condition. The compensation expense related to these awards is based on the grant date fair value of the RSUs and is recognized on a ratable basis over the applicable service period. The Company granted RSUs to its non-employee Board of Directors, some of which vested immediately while others vest 25% as of each calendar quarter immediately following the grant date. Certain RSUs awarded to executives vest over four years with 50% vesting in the first year in 12.5% increments on each calendar quarter immediately following the grant date and the remaining 50% earned over years two, three and four. Other RSUs awarded to executives and employees generally are earned over a service period of four years. Stock Options The following summarizes the stock option activity for the periods presented: Number of Weighted- Weighted- Aggregate Outstanding as of December 31, 2019 853,399 $ 8.07 3.41 $ 47,770 Granted — — Exercised (534,241) 6.63 45,248 Forfeited or cancelled (5,202) 10.31 Outstanding as of June 30, 2020 313,956 $ 10.50 4.86 $ 36,577 Options vested and exercisable at June 30, 2020 240,354 $ 8.96 4.22 $ 28,372 Options vested and expected to vest as of June 30, 2020 313,458 $ 10.49 4.86 $ 36,521 Aggregate intrinsic value is computed based on the difference between the option exercise price and the fair value of the Company’s common stock as of June 30, 2020, based on the Company’s Class A common stock price as reported on the NASDAQ Global Select Market. No options were granted for the three and six months ended June 30, 2019 and 2020. The total estimated grant date fair value of options vested was $223 and $280 for the three and six months ended June 30, 2019, respectively, and $83 and $129 for the three and six months ended June 30, 2020, respectively. As of June 30, 2020, total unrecognized compensation cost related to all non-vested stock options was $305, which will be amortized over a weighted-average period of 1.06 years. Restricted Stock Units The following summarizes the RSU activity for the periods presented: Number of awards outstanding Weighted-average grant date fair value (per share) Nonvested RSUs as of December 31, 2019 392,351 $ 35.22 Granted 211,260 64.55 Vested (125,695) 39.20 Forfeited or cancelled (9,119) 46.55 Nonvested RSUs as of June 30, 2020 468,797 $ 47.15 As of June 30, 2020, total unrecognized compensation cost related to non-vested RSUs was $19,758, which will be amortized over a weighted-average period of 2.92 years. Stock-Based Compensation Expense The Company recognized total stock-based compensation expense as follows: Three months ended June 30, Six months ended June 30, 2019 2020 2019 2020 Cost of revenue $ 50 $ (60) $ 106 $ 115 Research and development 358 620 730 1,073 Sales and marketing 292 376 612 771 General and administrative 930 1,489 1,858 2,965 Total $ 1,630 $ 2,425 $ 3,306 $ 4,924 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 12. Commitments and Contingencies Operating Leases The Company leases office space under operating lease agreements that expire over the next 5.17 years. See Note 5, “Right-of-Use Asset and Lease Liabilities” to the condensed consolidated financial statements, for additional details on the Company's operating lease commitments. Contractual Obligations On October 25, 2015, the Company entered into an agreement with a telecommunications service provider. The service agreement requires the Company to pay a monthly recurring charge beginning on January 1, 2016 associated with the services received. The service agreement is non-cancellable and contains annual minimum commitments of $1,200, to be fulfilled over five years or for as long as the Company continues to receive services from this vendor. In addition, as of June 30, 2020, the Company has $9,983 in other non-cancellable purchase obligations, consisting of primarily network equipment maintenance and software license contracts, of which $5,516 will be fulfilled within one year. On May 16, 2020, the Company entered into an indemnity agreement with a development company (the “developer”) relating to predevelopment work for approximately 40 acres of vacant land in Raleigh, North Carolina, currently owned by the State of North Carolina (the “State”), upon which the Company intends to construct its office headquarters. The indemnity agreement requires the Company to reimburse the developer fifty percent of the predevelopment work expenses, to a maximum of $318, if certain conditions are not satisfied. As of June 30, 2020, the Company expects all of the required conditions to be satisfied. On June 15, 2020, the Company signed a Purchase and Sale Agreement (the “Purchase and Sale Agreement”) with the State regarding the proposed sale to Bandwidth of the approximately 40 acres of vacant land located at the southwest quadrant of Reedy Creek Road and Edwards Mill Road in Raleigh, North Carolina (the “Land”). The consideration for the proposed sale of the Land to Bandwidth is $30,000. The Purchase and Sale Agreement is subject to due diligence, approvals and other customary closing conditions. Legal Matters The Company is involved as a defendant in various lawsuits alleging that the Company failed to bill, collect and remit certain taxes and surcharges associated with the provision of 911 services pursuant to applicable laws in various jurisdictions. In August 2016, the Company received a Civil Investigative Demand from the Consumer Protection Division of the North Carolina Department of Justice, though the Company has not been served with a complaint in connection with that investigation. The North Carolina Department of Justice is investigating the billing, collection and remission of certain taxes and surcharges associated with 911 service pursuant to applicable laws of the State of North Carolina. |
Employee Benefit Plan
Employee Benefit Plan | 6 Months Ended |
Jun. 30, 2020 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plan | 13. Employee Benefit Plan The Company sponsors a defined contribution 401(k) plan, which allows eligible employees to defer a portion of their compensation. The Company, at its discretion, may make matching contributions. The Company made matching contributions of $373 and $886 for the three and six months ended June 30, 2019, respectively, and $475 and $1,109 for the three and six months ended June 30, 2020, respectively. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 14. Income Taxes At the end of each interim reporting period, the Company determines the income tax provision by using an estimate of the annual effective tax rate, adjusted for discrete items occurring in the quarter. The effective income tax rate reflects the effect of federal and state income taxes and the permanent impacts of differences in book and tax accounting. The Company’s effective tax rate was 213.7% and 162.8% for the three and six months ended June 30, 2019, respectively, and (399.1)% and (173.8)% for the three and six months ended June 30, 2020, respectively. The change in tax rate is primarily due to the change in judgment related to the realizability of certain deferred tax assets and the resulting valuation allowance. Judgment is required in determining whether deferred tax assets will be realized in full or in part. Management assesses the available positive and negative evidence on a jurisdictional basis to estimate if deferred tax assets will be recognized and when it is more likely than not that all or some deferred tax assets will not be realized, and a valuation allowance must be established. During the three months ended June 30, 2020, management reviewed all available evidence and determined it was not more likely than not that the U.S. deferred tax assets would be realized. The evidence considered in this assessment included, but was not limited to, negative cumulative earnings over multiple periods, the increase in net deferred tax assets as a result of stock compensation deductions, as well as decreased future forecasted income associated with intentional investment in the business. Accordingly, income tax expense for the three months ended June 30, 2020 included a $14,173 charge to increase the valuation allowance on the U.S. deferred tax assets which was treated as a discrete item for the three months ended June 30, 2020. The Company’s effective tax rate for the three and six months ended June 30, 2020, is lower than the U.S. federal statutory rate of 21.0% primarily due to the change in judgment related to the realizability of certain deferred tax assets and the corresponding valuation allowance. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act (the “Act”) was enacted. This Act included multiple income tax provisions that impact the Company’s tax expense, such as relaxing limitations on the deductibility of interest and the use of net operating losses arising in taxable years beginning after December 31, 2017. The Company has accounted for the estimated impact of the Act. |
Related Parties
Related Parties | 6 Months Ended |
Jun. 30, 2020 | |
Related Party Transactions [Abstract] | |
Related Parties | 15. Related Parties On April 20, 2015, the Company created a wholly owned subsidiary, Republic, which was incorporated in Delaware. On November 30, 2016, the Company completed a pro-rata distribution of the common stock of Republic to its stockholders of record as of the close of business (the “Spin-Off”). In connection with the Spin-Off on November 30, 2016, the Company and Republic entered into certain agreements in order to govern the ongoing relationships between the two companies after the Spin-Off and to provide for an orderly transition. The agreements include a Transition Services Agreement, Facilities Sharing Agreement, Tax Sharing Agreement, and Master Services Agreement. The equity holders of Bandwidth pre-initial public offering are comprised of substantially the same individuals and entities that are the equity owners of Republic. The Company has determined the equity owners of Republic are related parties of Bandwidth. The Company has certain involvement with Republic via ongoing services arrangements, with these ongoing services arrangements creating a variable interest in Republic. The Company assessed the relationship with Republic under guidance for variable interest entities (“VIE”). Because investors in Republic have disproportionate voting rights, the Company concluded that Republic is a VIE, but Bandwidth is not a primary beneficiary. The Company’s maximum exposure to loss relating to this VIE is limited to amounts due under the service agreements between the Company and Republic. The Company recorded a reduction of rent expense under the Facilities Sharing Agreement of $200 and $451 for the three and six months ended June 30, 2019, respectively, and $96 and $192 for the three and six months ended June 30, 2020, respectively, which is included in general and administrative expenses in the condensed consolidated statements of operations. No amounts were due to the Company under the Facilities Sharing Agreement as of December 31, 2019 and June 30, 2020. The Tax Sharing Agreement governs rights and obligations after the Spin-Off regarding income taxes and other taxes, including tax liabilities and benefits, attributes, returns and contests. There were no amounts outstanding or payable under this agreement as of December 31, 2019 and June 30, 2020. The Master Services Agreement specifies certain wholesale telecommunications services to be provided by the Company. The agreement is cancellable at any time by either party. The Company provided telecommunication services to Republic of $677 and $1,569 for the three and six months ended June 30, 2019, respectively, and $583 and $1,116 for the three and six months ended June 30, 2020, respectively. The Company recognized such amounts as revenue in the accompanying condensed consolidated statements of operations. As of December 31, 2019 and June 30, 2020, the Company had a receivable of $161 and $192, respectively, under the Master Services Agreement. On March 1, 2019, an amendment to the current Master Services Agreement was executed. Pursuant to the terms of the new agreement, Republic receives reduced pricing on its messaging services, effective April 1, 2019. All other terms and conditions of the existing agreement remain. On June 20, 2019, Republic executed a further amendment to the current Master Services Agreement. Pursuant to the terms of the June 20, 2019 amendment, Republic receives reduced pricing on its outbound voice services effective on June 20, 2019. Republic also executed a revenue commitment schedule on June 20, 2019. Pursuant to the revenue commitment schedule, Republic agreed to spend a minimum of $100 per month during the 11-month period commencing July 1, 2019 through May 31, 2020. Subsequent to the expiration of the 180-day IPO blackout window on May 9, 2018, Republic employees that held Bandwidth stock options began exercising their options. Upon exercise, Bandwidth withholds the employee tax amounts due from the proceeds. Bandwidth had collected on behalf of, and remitted withholding tax to, Republic of $714 and $1,327 for the three and six months ended June 30, 2019, respectively, and $241 and $549 for the three and six months ended June 30, 2020, respectively. There were no amounts outstanding or payable as of December 31, 2019 and June 30, 2020. On September 30, 2019, the Company entered into a services agreement with Republic. Pursuant to the terms of the new agreement, Republic receives services performed by the Company’s legal department, effective September 30, 2019. The Company is compensated by Republic for these services based on costs incurred by the Company. The Company received net compensation under this agreement of $16 and $47 for the three and six months ended June 30, 2020, respectively, which is included in general and administrative expenses in the condensed consolidated statements of operations. As of December 31, 2019 and June 30, 2020, the Company had a receivable of $10 and $5 under this agreement, respectively. |
Basic and Diluted Income (Loss)
Basic and Diluted Income (Loss) per Common Share | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Income (Loss) per Common Share | 16. Basic and Diluted Income (Loss) per Common Share Basic net income (loss) per share is computed by dividing net income by the weighted-average number of shares of common stock outstanding during the period. Diluted net income (loss) per share is computed by giving effect to all potential shares of common stock, including stock options and stock related to unvested restricted stock awards. The components of basic and diluted income (loss) per share are as follows: Three months ended June 30, Six months ended June 30, 2019 2020 2019 2020 Net income (loss) attributable to common stockholders $ 3,472 $ (20,641) $ 5,464 $ (21,699) Net income (loss) per share: Basic $ 0.15 $ (0.86) $ 0.25 $ (0.91) Diluted $ 0.14 $ (0.86) $ 0.23 $ (0.91) Weighted Average Number of Common Shares Outstanding Basic 23,102,553 23,973,663 21,807,523 23,768,616 Dilutive effect of stock options and restricted stock units 1,344,864 — 1,454,973 — Diluted 24,447,417 23,973,663 23,262,496 23,768,616 There were no common share equivalents with anti-dilutive effects for the three and six months ended June 30, 2019. The common share equivalents with anti-dilutive effects excluded from the weighted average shares used to calculate net loss per common share for the three and six months ended June 30, 2020 were 313,956 stock options and 468,797 nonvested RSUs outstanding, respectively. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (the “SEC”) regarding interim financial reporting. Certain information and disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Company's Annual Report on Form 10-K filed with the SEC on February 21, 2020. The condensed consolidated balance sheet as of December 31, 2019, included herein, was derived from the audited financial statements as of that date, but does not include all disclosures, including certain notes required by GAAP on an annual reporting basis. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the financial position, results of operations, comprehensive income (loss) and cash flows for the interim periods, but are not necessarily indicative of the results of operations to be anticipated for the full year 2020 or any future period. |
Reclassification | Reclassification The Company reclassified certain prior year amounts to conform to the current year presentation. These reclassifications had no impact on the previously reported total assets, liabilities, stockholder’s deficit or net income. |
Principles of Consolidation | Principles of Consolidation The condensed consolidated financial statements include the accounts of Bandwidth Inc. and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of the Company’s condensed consolidated financial statements in conformity with GAAP requires the Company to make estimates and judgments that affect the amounts reported in these financial statements and accompanying notes. These estimates in the condensed consolidated financial statements include, but are not limited to, allowance for doubtful accounts, reserve for expected credit losses, reserve for sales credits, recoverability of long lived and intangible assets, discount rates used in the valuation of right-of-use assets and lease liabilities, the fair value of the liability and equity components of the Company’s Convertible Notes (as defined herein), estimated period of benefit, valuation allowances on deferred tax assets, certain accrued expenses, and contingencies. Although the Company believes that the estimates it uses are reasonable, due to the inherent uncertainty involved in making these estimates, actual results reported in future periods could differ from those estimates. |
Cash and Cash Equivalents and Restricted Cash | Cash and Cash Equivalents The Company classifies all highly liquid investments with stated maturities of three months or less from the date of purchase as cash equivalents and all highly liquid investments with stated maturities of greater than three months from the date of purchase as current marketable securities, with the exception of time deposits which are classified as other investments. Cash deposits are primarily in financial institutions in the United States. However, cash for monthly operating costs of international operations are deposited in banks outside the United States. The Company has a policy of making investments only with commercial institutions that have at least an investment grade credit rating. The Company invests its cash primarily in government securities and obligations, corporate debt securities, money market funds and reverse repurchase agreements (“RRAs”). RRAs are collateralized by deposits in the form of Government Securities and Obligations for an amount not less than 102% of their value. The Company does not record an asset or liability as the Company is not permitted to sell or repledge the associated collateral. The Company has a policy that the collateral has at least an “A” (or equivalent) credit rating. The Company utilizes a third-party custodian to manage the exchange of funds and ensure that collateral received is maintained at 102% of the value of the RRAs on a daily basis. RRAs with stated maturities of greater than three months from the date of purchase are classified as marketable securities. Restricted Cash Restricted cash consists primarily of customer deposits, employee withholding tax liability and employee benefits contributions not yet remitted. The Company has classified this asset as a short-term asset in order to match the expected period of restriction. See Note 8, “Debt” to these condensed consolidated financial statements, for further information. |
Accounts Receivable | Accounts Receivable and Current Expected Credit Losses Accounts receivable are stated at realizable value, net of allowances, which includes an allowance for doubtful accounts and a reserve for expected credit losses. The allowance for doubtful accounts is based on management’s assessment of the collectability of its customer accounts. The Company regularly reviews the composition of the accounts receivable aging, historical bad debts, changes in payment patterns, customer creditworthiness, current economic trends, and reasonable and supportable forecasts about the future. Relevant risks characteristics include customer size and historical loss patterns. Management has evaluated the expected credit losses related to trade accounts receivable and determined that allowances of approximately $769 and $597 for uncollectible accounts and customer balances that are disputed were required as of December 31, 2019 and June 30, 2020, respectively. Refer to Note 4, “Financial Statement Components” to these condensed consolidated financial statements, for a rollforward of the components of the allowances as of December 31, 2019 and June 30, 2020. Refer to the Recently Adopted Accounting Standard section for the adoption of ASU 2019-11, Codification Improvements to Topic 326, Financial Instruments—Credit Losses for discussion of financial assets measured at amortized cost, including trade receivables. |
Current Expected Credit Losses | Accounts Receivable and Current Expected Credit Losses Accounts receivable are stated at realizable value, net of allowances, which includes an allowance for doubtful accounts and a reserve for expected credit losses. The allowance for doubtful accounts is based on management’s assessment of the collectability of its customer accounts. The Company regularly reviews the composition of the accounts receivable aging, historical bad debts, changes in payment patterns, customer creditworthiness, current economic trends, and reasonable and supportable forecasts about the future. Relevant risks characteristics include customer size and historical loss patterns. Management has evaluated the expected credit losses related to trade accounts receivable and determined that allowances of approximately $769 and $597 for uncollectible accounts and customer balances that are disputed were required as of December 31, 2019 and June 30, 2020, respectively. Refer to Note 4, “Financial Statement Components” to these condensed consolidated financial statements, for a rollforward of the components of the allowances as of December 31, 2019 and June 30, 2020. Refer to the Recently Adopted Accounting Standard section for the adoption of ASU 2019-11, Codification Improvements to Topic 326, Financial Instruments—Credit Losses for discussion of financial assets measured at amortized cost, including trade receivables. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that are exposed to concentration of credit risk consist primarily of cash and cash equivalents, marketable securities, other investments and trade accounts receivable. Cash deposits may be in excess of insured limits. The Company believes that the financial institutions that hold its cash deposits are financially sound and, accordingly, minimal credit risk exists with respect to these balances. |
Deferred Revenue and Customer Deposits | Deferred Revenue and Customer DepositsDeferred revenue is recorded when cash payments are received in advance of future usage on contracts. Revenue is typically recognized in the following month as services are rendered or, in the case of nonrefundable upfront fees, over the estimated period of benefit from the date the fee is incurred by the customer. |
Recently Adopted Accounting Standards and Accounting Pronouncements Not Yet Adopted | Recently Adopted Accounting Standards In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ( “ 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 . This standard aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. ASU 2018-15 ’ s prospective adoption of this standard, the Company capitalized i mplementation costs related to cloud computing arrangements of $432 as of June 30, 2020. See Note 6, “Property and Equipment” to these condensed consolidated financial statements, for additional details. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement, which eliminates certain disclosure requirements for fair value measurements for all entities, requires public entities to disclose certain new information and modifies some disclosure requirements. ASU 2018-13 is effective for interim and annual reporting periods beginning after December 15, 2019 and for interim periods within those fiscal years. The adoption of this standard did not have a material impact on the Company ’ s financial statements. In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment , which simplifies the accounting for goodwill impairment. The ASU removes the second step of the goodwill impairment test that requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. ASU 2017-04 is effective for interim and annual reporting periods beginning after December 15, 2019. The adoption of this standard did not have a material impact on the Company’s financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments–Credit Losses: Measurement of Credit Losses on Financial Instruments , which changes the impairment model for most financial assets. The new model uses a forward-looking expected loss method, which will generally result in earlier recognition of allowances for losses. In November 2018, the FASB issued ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments – Credit Losses , which clarifies that receivables arising from operating leases are not within the scope of Topic 326, Financial Instruments – Credit Losses. Instead, impairment of receivables arising from operating leases should be accounted for in accordance with Topic 842, Leases. In April 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments, which clarifies how to apply certain aspects of the new credit losses standard. In November 2019, the FASB issued ASU 2019-10, Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates , which amends certain effective dates for the new standard. In November 2019, the FASB issued ASU 2019-11, Codification Improvements to Topic 326, Financial Instruments—Credit Losses , which clarifies how to apply certain aspects of the new credit losses standard. The accounting standard is effective for annual and interim periods beginning after December 15, 2019. The Company adopted this standard for financial assets measured at amortized cost, including trade receivables. Results for the reporting periods beginning after January 1, 2020 are presented under ASC 326, while prior period amounts continue to be reported in accordance with previously applicable GAAP. The adoption of this standard did not have a material impact on the Company’s financial statements. Recent Accounting Pronouncements Not Yet Adopted In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes , which is intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. ASU 2019-12 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption is permitted, including adoption in an interim period. The Company is evaluating the effect of adopting this new accounting guidance, but does not expect adoption will have a material impact on its financial statements. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets Measured at Fair Value on a Recurring Basis | The following table summarizes the assets measured at fair value as of December 31, 2019 and June 30, 2020: Fair value measurements on a recurring basis Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents: Money market account $ 25,000 $ — $ — $ 25,000 Time deposits 75,250 — — 75,250 Total financial assets $ 100,250 $ — $ — $ 100,250 Fair value measurements on a recurring basis Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents: Money market account $ 233,333 $ — $ — $ 233,333 Time deposits 25,195 — — 25,195 Total included in cash and cash equivalents 258,528 — — 258,528 Other investments: Time deposits 230,780 — — 230,780 Total financial assets $ 489,308 $ — $ — $ 489,308 |
Financial Statement Components
Financial Statement Components (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Financial Statement Components [Abstract] | |
Schedule of Accounts Receivable, net, and Allowance for Doubtful Accounts | Accounts receivable, net of allowances consist of the following: As of December 31, As of June 30, 2019 2020 Trade accounts receivable $ 14,692 $ 19,122 Unbilled accounts receivable 16,200 22,658 Allowance for doubtful accounts and reserve for expected credit losses (769) (597) Other accounts receivable 64 596 Total accounts receivable, net $ 30,187 $ 41,779 Components of allowance for doubtful accounts and reserve for expected credit losses are as follows: Three months ended June 30, Six months ended June 30, 2019 2020 2019 2020 Balance, beginning of period $ (1,018) $ (883) $ (906) $ (769) Charged to bad debt expense (284) 9 (416) (180) Deductions (1) 209 277 229 352 Balance, end of period $ (1,093) $ (597) $ (1,093) $ (597) ________________________ (1) Write off of uncollectible accounts after all collection efforts have been exhausted. |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consisted of the following: As of December 31, As of June 30, 2019 2020 Accrued expense $ 12,701 $ 15,578 Accrued compensation and benefits 8,284 7,789 Accrued sales, use, and telecom related taxes 5,439 5,633 Other accrued expenses 904 405 Total accrued expenses and other current liabilities $ 27,328 $ 29,405 |
Right-of-Use Asset and Lease _2
Right-of-Use Asset and Lease Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Schedule of Future Minimum Lease Receipts for Operating Lease | Future minimum sub-lease receipts required under the non-cancellable lease are as follows: As of June 30, 2020 2020 (remaining) $ 225 2021 457 2022 249 $ 931 |
Components of Lease Expense | The components of lease expense recorded in the condensed consolidated statement of operations were as follows: Three months ended June 30, Six months ended June 30, 2019 2020 2019 2020 Operating lease cost $ 1,434 $ 1,461 $ 2,653 $ 2,922 Sublease income (1) (200) (96) (451) (192) Total net lease cost $ 1,234 $ 1,365 $ 2,202 $ 2,730 ________________________ (1) See Note 15, “Related Parties” to these condensed consolidated financial statements, for additional details on sublease income. Six months ended June 30, 2019 2020 Cash paid for amounts included in the measurement of operating lease liabilities $ 1,714 $ 2,612 Weighted average remaining operating lease term (in years) 4.76 3.88 Weighted average operating lease discount rate 5.00 % 4.99 % |
Supplemental Balance Sheet Information | Supplemental balance sheet information related to leases was as follows: As of December 31, As of June 30, Leases Classification 2019 2020 Assets: Operating lease assets Operating ROU asset, net of accumulated amortization (1) $ 21,031 $ 18,699 Total leased assets $ 21,031 $ 18,699 Liabilities: Current Operating Operating lease liability, current $ 4,876 $ 5,067 Non-current Operating Operating lease liability, non-current 19,868 17,065 Total lease liabilities $ 24,744 $ 22,132 ________________________ (1) Operating lease assets are recorded net of accumulated amortization of $4,269 and $6,601 as of December 31, 2019 and June 30, 2020, respectively. |
Schedule of Maturities of Lease Liabilities | Maturities of operating lease liabilities were as follows: As of June 30, 2020 2020 (remaining) $ 2,705 2021 6,587 2022 6,302 2023 5,926 2024 1,987 2025 949 Total lease payments 24,456 Less: imputed interest (2,304) Less: accrued lease incentive (20) Total lease obligations 22,132 Less: current obligations (5,067) Long-term lease obligations $ 17,065 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property and Equipment, Net | Property and equipment, net consisted of the following: As of December 31, As of June 30, 2019 2020 Furniture and fixtures $ 2,373 $ 2,388 Computer and office equipment 4,627 4,764 Telecommunications equipment 44,324 50,431 Leasehold improvements 5,263 5,846 Software 2,018 2,427 Internal-use software development 17,952 19,183 Automobile 10 10 Total cost 76,567 85,049 Less—accumulated depreciation (34,913) (41,279) Total property and equipment, net $ 41,654 $ 43,770 |
Schedule of Depreciation Expense | The Company recognized depreciation expense, which includes amortization of capitalized software development costs, as follows: Three months ended June 30, Six months ended June 30, 2019 2020 2019 2020 Cost of revenue $ 1,530 $ 2,340 $ 2,823 $ 4,674 Research and development 63 129 131 244 Sales and marketing 24 31 52 60 General and administrative 365 712 1,055 1,402 Total depreciation expense $ 1,982 $ 3,212 $ 4,061 $ 6,380 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | Intangible assets, net consisted of the following as of December 31, 2019: Gross Accumulated Net Carrying Amortization (Years) Customer relationships $ 10,396 $ (4,591) $ 5,805 20 Other, definite lived 3,933 (3,933) — 2 - 7 Licenses, indefinite lived 764 — 764 Indefinite Total intangible assets, net $ 15,093 $ (8,524) $ 6,569 Intangible assets, net consisted of the following as of June 30, 2020: Gross Accumulated Net Carrying Amortization (Years) Customer relationships $ 10,396 $ (4,851) $ 5,545 20 Other, definite lived 3,933 (3,933) — 2 - 7 Licenses, indefinite lived 764 — 764 Indefinite Total intangible assets, net $ 15,093 $ (8,784) $ 6,309 |
Schedule of Future Estimated Amortization Expense | Future estimated amortization expense for definite lived intangible assets is as follows: As of June 30, 2020 2020 (remaining) $ 260 2021 520 2022 520 2023 520 2024 520 Thereafter 3,205 $ 5,545 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Net Carrying Amount of Liability and Equity Component of Notes | The net carrying amount of the liability component of the Convertible Notes was as follows: As of June 30, 2020 Principal $ 400,000 Unamortized discount (119,269) Unamortized debt issuance costs (7,830) Net carrying amount $ 272,901 The net carrying amount of the equity component of the Convertible Notes was as follows: As of June 30, 2020 Proceeds allocated to the conversion options (debt discount) $ 125,160 Issuance costs (3,742) Net carrying amount $ 121,418 |
Interest Income and Interest Expense Disclosure | The following table sets forth the interest expense recognized related to the Convertible Notes: Three months ended June 30, Six months ended June 30, 2020 2020 Contractual interest expense $ 249 $ 345 Amortization of debt issuance costs 4,262 5,891 Amortization of debt discount 280 386 Total interest expense related to the Convertible Notes $ 4,791 $ 6,622 |
Segment and Geographic Inform_2
Segment and Geographic Information (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Three months ended June 30, Six months ended June 30, 2019 2020 2019 2020 CPaaS Revenue $ 47,989 $ 67,076 $ 93,002 $ 126,197 Cost of revenue 26,473 37,229 51,773 69,121 Gross profit $ 21,516 $ 29,847 $ 41,229 $ 57,076 Other Revenue $ 8,790 $ 9,714 $ 17,098 $ 19,111 Cost of revenue 3,637 4,780 7,103 9,247 Gross profit $ 5,153 $ 4,934 $ 9,995 $ 9,864 Consolidated Revenue $ 56,779 $ 76,790 $ 110,100 $ 145,308 Cost of revenue 30,110 42,009 58,876 78,368 Gross profit $ 26,669 $ 34,781 $ 51,224 $ 66,940 |
Schedule of Revenue by Geographical Area | The Company generates its revenue primarily in the United States. Revenue by geographic area is detailed in the table below (which is determined based on the customer billing address): Three months ended June 30, Six months ended June 30, 2019 2020 2019 2020 CPaaS United States $ 47,907 $ 65,207 $ 92,851 $ 122,605 International 82 1,869 151 3,592 Total $ 47,989 $ 67,076 $ 93,002 $ 126,197 Other United States $ 8,722 $ 9,418 $ 16,951 $ 18,543 International 68 296 147 568 Total $ 8,790 $ 9,714 $ 17,098 $ 19,111 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Schedule of Reserved Shares of Common Stock for Issuance | The Company had reserved shares of Class A common stock for issuance under stock-based award agreements as follows: As of December 31, As of June 30, 2019 2020 Stock options issued and outstanding 853,399 313,956 Nonvested restricted stock units issued and outstanding 392,351 468,797 Stock-based awards available for grant under the 2017 Plan 1,310,354 2,037,531 2,556,104 2,820,284 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Stock Option Activity | The following summarizes the stock option activity for the periods presented: Number of Weighted- Weighted- Aggregate Outstanding as of December 31, 2019 853,399 $ 8.07 3.41 $ 47,770 Granted — — Exercised (534,241) 6.63 45,248 Forfeited or cancelled (5,202) 10.31 Outstanding as of June 30, 2020 313,956 $ 10.50 4.86 $ 36,577 Options vested and exercisable at June 30, 2020 240,354 $ 8.96 4.22 $ 28,372 Options vested and expected to vest as of June 30, 2020 313,458 $ 10.49 4.86 $ 36,521 |
Summary of Restricted Stock Unit Activity | The following summarizes the RSU activity for the periods presented: Number of awards outstanding Weighted-average grant date fair value (per share) Nonvested RSUs as of December 31, 2019 392,351 $ 35.22 Granted 211,260 64.55 Vested (125,695) 39.20 Forfeited or cancelled (9,119) 46.55 Nonvested RSUs as of June 30, 2020 468,797 $ 47.15 |
Schedule of Stock-Based Compensation Expense | The Company recognized total stock-based compensation expense as follows: Three months ended June 30, Six months ended June 30, 2019 2020 2019 2020 Cost of revenue $ 50 $ (60) $ 106 $ 115 Research and development 358 620 730 1,073 Sales and marketing 292 376 612 771 General and administrative 930 1,489 1,858 2,965 Total $ 1,630 $ 2,425 $ 3,306 $ 4,924 |
Basic and Diluted Income per Co
Basic and Diluted Income per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The components of basic and diluted income (loss) per share are as follows: Three months ended June 30, Six months ended June 30, 2019 2020 2019 2020 Net income (loss) attributable to common stockholders $ 3,472 $ (20,641) $ 5,464 $ (21,699) Net income (loss) per share: Basic $ 0.15 $ (0.86) $ 0.25 $ (0.91) Diluted $ 0.14 $ (0.86) $ 0.23 $ (0.91) Weighted Average Number of Common Shares Outstanding Basic 23,102,553 23,973,663 21,807,523 23,768,616 Dilutive effect of stock options and restricted stock units 1,344,864 — 1,454,973 — Diluted 24,447,417 23,973,663 23,262,496 23,768,616 |
Organization and Description _2
Organization and Description of Business (Details) | 6 Months Ended |
Jun. 30, 2020segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of operating segments | 2 |
Number of reportable segments | 2 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Use of Estimates and Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Jan. 01, 2020 | Dec. 31, 2019 | |
Change in Accounting Estimate [Line Items] | ||||||
Revenue | $ 76,790 | $ 56,779 | $ 145,308 | $ 110,100 | ||
Cost of revenue | $ 42,009 | $ 30,110 | $ 78,368 | $ 58,876 | ||
RRAs collateralized by deposits in form of Government Securities and Obligations as percentage of value | 102.00% | 102.00% | ||||
Estimated period of benefit for nonrefundable upfront fees | ||||||
Change in Accounting Estimate [Line Items] | ||||||
Revenue | $ 437 | $ 876 | ||||
Cost of revenue | $ 247 | $ 566 | ||||
Estimated period of benefit for nonrefundable upfront fees | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | ||||||
Change in Accounting Estimate [Line Items] | ||||||
Revenue, remaining performance obligation, amount, expected timing of satisfaction, period | 4 years | 3 years |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Accounts Receivable and Current Expected Credit Losses and Concentration of Credit Risk and Deferred Revenue and Customer Deposits (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | |
Accounting Policies [Abstract] | |||
Allowance for doubtful accounts | $ 597 | $ 597 | $ 769 |
Unbilled accounts receivable | 22,658 | 22,658 | $ 16,200 |
Concentration Risk [Line Items] | |||
Revenue recognized related to its contract liabilities | 846 | 1,932 | |
Advanced billings expected to be recognized in the next 12 months | $ 5,236 | $ 5,236 | |
Customer One | Accounts Receivable | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 11.00% | ||
Customer One | Revenue | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 10.00% | 10.00% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Recently Adopted Accounting Standards (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201815Member | us-gaap:AccountingStandardsUpdate201409Member |
ASU 2018-15 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Capitalized implementation costs related to cloud computing arrangements | $ 432 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets Measured at Fair Value (Details) - Fair value measurements on a recurring basis - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Money market account | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | $ 233,333 | $ 25,000 |
Time deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 25,195 | 75,250 |
Investments, Fair Value Disclosure | 230,780 | |
Total included in cash and cash equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 258,528 | |
Financial assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 489,308 | 100,250 |
Level 1 | Money market account | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 233,333 | 25,000 |
Level 1 | Time deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 25,195 | 75,250 |
Investments, Fair Value Disclosure | 230,780 | |
Level 1 | Total included in cash and cash equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 258,528 | |
Level 1 | Financial assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 489,308 | 100,250 |
Level 2 | Money market account | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Level 2 | Time deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Investments, Fair Value Disclosure | 0 | |
Level 2 | Total included in cash and cash equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | |
Level 2 | Financial assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 0 | 0 |
Level 3 | Money market account | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Level 3 | Time deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Investments, Fair Value Disclosure | 0 | |
Level 3 | Total included in cash and cash equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | |
Level 3 | Financial assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | $ 0 | $ 0 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Debt Instrument [Line Items] | ||||
Maturities of marketable securities | $ 9,000,000 | $ 18,000,000 | ||
Interest earned on marketable securities | $ 0 | $ 3,000 | $ 0 | $ 6,000 |
Convertible notes | 0.25% convertible senior notes due 2026 | ||||
Debt Instrument [Line Items] | ||||
Fair value | $ 598,500,000 | $ 598,500,000 |
Financial Statement Component_2
Financial Statement Components - Accounts Receivable, Net of Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Financial Statement Components [Abstract] | ||
Trade accounts receivable | $ 19,122 | $ 14,692 |
Unbilled accounts receivable | 22,658 | 16,200 |
Allowance for doubtful accounts and reserve for expected credit losses | (597) | (769) |
Other accounts receivable | 596 | 64 |
Total accounts receivable, net | $ 41,779 | $ 30,187 |
Financial Statement Component_3
Financial Statement Components - Allowance For Doubtful Accounts (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||||
Balance, beginning of period | $ (883) | $ (1,018) | $ (769) | $ (906) |
Balance, end of period | (597) | (1,093) | (597) | (1,093) |
Accounts Receivable, Excluding Carrier Access Billing (CAB) | ||||
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||||
Charged to bad debt expense | 9 | (284) | (180) | (416) |
Deductions | $ 277 | $ 209 | $ 352 | $ 229 |
Financial Statement Component_4
Financial Statement Components - Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Financial Statement Components [Abstract] | ||
Accrued expense | $ 15,578 | $ 12,701 |
Accrued compensation and benefits | 7,789 | 8,284 |
Accrued sales, use, and telecom related taxes | 5,633 | 5,439 |
Other accrued expenses | 405 | 904 |
Total accrued expenses and other current liabilities | $ 29,405 | $ 27,328 |
Right-of-Use Asset and Lease _3
Right-of-Use Asset and Lease Liabilities - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2020ft²property | |
Lessee, Lease, Description [Line Items] | |
Office space (in square foot) | ft² | 17,073 |
Number of leased properties | property | 6 |
Option to extend, term | 5 years |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease term | 2 years 29 days |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease term | 5 years 2 months 1 day |
Right-of-Use Asset and Lease _4
Right-of-Use Asset and Lease Liabilities - Future Minimum Sub-lease Receipts (Details) $ in Thousands | Jun. 30, 2020USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2020 (remaining) | $ 225 |
2021 | 457 |
2022 | 249 |
Total | $ 931 |
Right-of-Use Asset and Lease _5
Right-of-Use Asset and Lease Liabilities - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Leases [Abstract] | ||||
Operating lease cost | $ 1,461 | $ 1,434 | $ 2,922 | $ 2,653 |
Sublease income | (96) | (200) | (192) | (451) |
Total net lease cost | $ 1,365 | $ 1,234 | $ 2,730 | $ 2,202 |
Right-of-Use Asset and Lease _6
Right-of-Use Asset and Lease Liabilities - Assets And Liabilities, Lessee (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Operating right-of-use asset, net of accumulated amortization | $ 18,699 | $ 21,031 |
Operating lease liability, current | 5,067 | 4,876 |
Long-term lease obligations | 17,065 | 19,868 |
Total lease liabilities | 22,132 | 24,744 |
Accumulated amortization | $ 6,601 | $ 4,269 |
Right-of-Use Asset and Lease _7
Right-of-Use Asset and Lease Liabilities - Supplemental Cash Flow and Other Information (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Leases [Abstract] | ||
Cash paid for amounts included in the measurement of operating lease liabilities | $ 2,612 | $ 1,714 |
Weighted average remaining operating lease term (in years) | 3 years 10 months 17 days | 4 years 9 months 3 days |
Weighted average operating lease discount rate | 4.99% | 5.00% |
Right-of-Use Asset and Lease _8
Right-of-Use Asset and Lease Liabilities - Schedule of Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
2020 (remaining) | $ 2,705 | |
2021 | 6,587 | |
2022 | 6,302 | |
2023 | 5,926 | |
2024 | 1,987 | |
2025 | 949 | |
Total lease payments | 24,456 | |
Less: imputed interest | (2,304) | |
Less: accrued lease incentive | (20) | |
Total lease liabilities | 22,132 | $ 24,744 |
Less: current obligations | (5,067) | (4,876) |
Long-term lease obligations | $ 17,065 | $ 19,868 |
Property and Equipment - Summar
Property and Equipment - Summary of Property and Equipment, Net (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Total cost | $ 85,049 | $ 76,567 |
Less—accumulated depreciation | (41,279) | (34,913) |
Total property and equipment, net | 43,770 | 41,654 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | 2,388 | 2,373 |
Computer and office equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | 4,764 | 4,627 |
Telecommunications equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | 50,431 | 44,324 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | 5,846 | 5,263 |
Software | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | 2,427 | 2,018 |
Internal-use software development | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | 19,183 | 17,952 |
Automobile | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | $ 10 | $ 10 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Property, Plant and Equipment [Abstract] | ||||
Capitalized software development costs, additions | $ 708 | $ 1,080 | $ 1,498 | $ 1,675 |
Amortization of capitalized software development costs | 588 | $ 384 | 1,170 | $ 1,173 |
ASU 2018-15 | ||||
Property, Plant and Equipment [Line Items] | ||||
Capitalized implementation costs related to cloud computing arrangements | 432 | 432 | ||
Prepaid expenses and other current assets | ||||
Property, Plant and Equipment [Line Items] | ||||
Capitalized implementation costs related to cloud computing arrangements | 104 | 104 | ||
Other long-term assets | ||||
Property, Plant and Equipment [Line Items] | ||||
Capitalized implementation costs related to cloud computing arrangements | $ 328 | $ 328 |
Property and Equipment - Deprec
Property and Equipment - Depreciation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Depreciation Expense [Line Items] | ||||
Total depreciation expense | $ 3,212 | $ 1,982 | $ 6,380 | $ 4,061 |
Cost of revenue | ||||
Depreciation Expense [Line Items] | ||||
Total depreciation expense | 2,340 | 1,530 | 4,674 | 2,823 |
Research and development | ||||
Depreciation Expense [Line Items] | ||||
Total depreciation expense | 129 | 63 | 244 | 131 |
Sales and marketing | ||||
Depreciation Expense [Line Items] | ||||
Total depreciation expense | 31 | 24 | 60 | 52 |
General and administrative | ||||
Depreciation Expense [Line Items] | ||||
Total depreciation expense | $ 712 | $ 365 | $ 1,402 | $ 1,055 |
Intangible Assets - Summary of
Intangible Assets - Summary of Intangible Assets (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | ||
Accumulated amortization | $ (8,784) | $ (8,524) |
Finite-lived intangible assets, net | 5,545 | |
Gross amount | 15,093 | 15,093 |
Net carrying value | 6,309 | 6,569 |
Licenses | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Licenses, indefinite lived | 764 | 764 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 10,396 | 10,396 |
Accumulated amortization | (4,851) | (4,591) |
Finite-lived intangible assets, net | $ 5,545 | $ 5,805 |
Amortization period | 20 years | 20 years |
Other, definite lived | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | $ 3,933 | $ 3,933 |
Accumulated amortization | (3,933) | (3,933) |
Finite-lived intangible assets, net | $ 0 | $ 0 |
Other, definite lived | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization period | 2 years | 2 years |
Other, definite lived | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization period | 7 years | 7 years |
Intangible Assets - Additional
Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense | $ 130 | $ 130 | $ 260 | $ 260 |
Weighted average amortization period | 11 years |
Intangible Assets - Future Esti
Intangible Assets - Future Estimated Amortization Expense (Details) $ in Thousands | Jun. 30, 2020USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2020 (remaining) | $ 260 |
2021 | 520 |
2022 | 520 |
2023 | 520 |
2024 | 520 |
Thereafter | 3,205 |
Finite-lived intangible assets, net | $ 5,545 |
Debt - Additional Information (
Debt - Additional Information (Details) | Feb. 28, 2020USD ($)dsegment$ / sharesshares | Jun. 30, 2020USD ($)$ / shares | Dec. 31, 2019USD ($)$ / shares |
Debt Instrument [Line Items] | |||
Unamortized debt issuance costs | $ 96,000 | $ 125,000 | |
Debt outstanding | 272,901,000 | ||
Principal | 400,000,000 | ||
Total net proceeds | $ 344,757,000 | ||
Conversion price (usd per share) | $ / shares | $ 91.03 | ||
Cash redemption price, percent | 100.00% | ||
Conversion option | $ 125,160,000 | 125,160,000 | |
Effective interest rate | 6.763% | ||
Carrying amount of equity component | $ 57,491,000 | ||
Annual effective interest rate | 6.805% | ||
Issuance costs attributable to the liability component | $ 8,217,000 | ||
Issuance costs | $ (3,742,000) | ||
Net cost of capped call purchase | $ 43,320,000 | ||
Conversion option 1 | |||
Debt Instrument [Line Items] | |||
Trading days | d | 20 | ||
Consecutive trading days | d | 30 | ||
Conversion option 2 | |||
Debt Instrument [Line Items] | |||
Consecutive trading days | segment | 10 | ||
Consecutive business days | segment | 5 | ||
Common Class A | |||
Debt Instrument [Line Items] | |||
Conversion ratio | 10.9857 | ||
Common stock, par value (in usd per share) | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 |
Capped call shares (in shares) | shares | 4,394,276 | ||
Common Class A | Conversion option 1 | |||
Debt Instrument [Line Items] | |||
Stock price trigger percent | 130.00% | ||
Common Class A | Conversion option 2 | |||
Debt Instrument [Line Items] | |||
Stock price trigger percent | 98.00% | ||
Convertible notes | 0.25% convertible senior notes due 2026 | |||
Debt Instrument [Line Items] | |||
Principal | $ 400,000,000 | ||
Stated rate | 0.25% | ||
Convertible notes | Capped call portion of 0.25% convertible senior notes due 2026 | |||
Debt Instrument [Line Items] | |||
Conversion price (usd per share) | $ / shares | $ 91.03 | ||
Convertible notes | Capped call portion of 0.25% convertible senior notes due 2026 | Maximum | |||
Debt Instrument [Line Items] | |||
Conversion price (usd per share) | $ / shares | $ 137.40 | ||
Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Debt outstanding | $ 0 | $ 0 | |
Available borrowing capacity | 25,000,000 | ||
Prepaid Expenses and Other Current Assets | |||
Debt Instrument [Line Items] | |||
Unamortized debt issuance costs | 62,000 | 70,000 | |
Noncurrent assets | |||
Debt Instrument [Line Items] | |||
Unamortized debt issuance costs | $ 34,000 | $ 55,000 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) | Feb. 28, 2020 | Jun. 30, 2020 |
Debt Disclosure [Abstract] | ||
Principal | $ 400,000,000 | |
Unamortized discount | (119,269,000) | |
Unamortized debt issuance costs | (7,830,000) | |
Net carrying amount | 272,901,000 | |
Proceeds allocated to the conversion options (debt discount) | $ 125,160,000 | 125,160,000 |
Issuance costs | (3,742,000) | |
Net carrying amount | $ 121,418,000 |
Debt - Interest Income and Inte
Debt - Interest Income and Interest Expense Disclosure (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Debt Disclosure [Abstract] | ||
Contractual interest expense | $ 249 | $ 345 |
Amortization of debt issuance costs | 4,262 | 5,891 |
Amortization of debt discount | 280 | 386 |
Total interest expense related to the Convertible Notes | $ 4,791 | $ 6,622 |
Segment and Geographic Inform_3
Segment and Geographic Information - Reconciliation of Segment Profit (Loss) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)segment | Jun. 30, 2019USD ($) | |
Segment Reporting [Abstract] | ||||
Number of reportable segments | segment | 2 | |||
Segment Reporting Information [Line Items] | ||||
Revenue | $ 76,790 | $ 56,779 | $ 145,308 | $ 110,100 |
Cost of revenue | 42,009 | 30,110 | 78,368 | 58,876 |
Gross profit | 34,781 | 26,669 | 66,940 | 51,224 |
CPaaS | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 67,076 | 47,989 | 126,197 | 93,002 |
Cost of revenue | 37,229 | 26,473 | 69,121 | 51,773 |
Gross profit | 29,847 | 21,516 | 57,076 | 41,229 |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 9,714 | 8,790 | 19,111 | 17,098 |
Cost of revenue | 4,780 | 3,637 | 9,247 | 7,103 |
Gross profit | $ 4,934 | $ 5,153 | $ 9,864 | $ 9,995 |
Segment and Geographic Inform_4
Segment and Geographic Information - Reconciliation of Revenue by Geographic Area (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Assets | $ 657,957 | $ 657,957 | $ 341,416 | ||
Revenue | 76,790 | $ 56,779 | 145,308 | $ 110,100 | |
International | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Assets | 2,321 | 2,321 | $ 2,924 | ||
CPaaS | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | 67,076 | 47,989 | 126,197 | 93,002 | |
CPaaS | United States | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | 65,207 | 47,907 | 122,605 | 92,851 | |
CPaaS | International | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | 1,869 | 82 | 3,592 | 151 | |
Other | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | 9,714 | 8,790 | 19,111 | 17,098 | |
Other | United States | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | 9,418 | 8,722 | 18,543 | 16,951 | |
Other | International | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | $ 296 | $ 68 | $ 568 | $ 147 |
Stockholders' Equity - Preferre
Stockholders' Equity - Preferred Stock (Details) - $ / shares | Jun. 30, 2020 | Dec. 31, 2019 |
Equity [Abstract] | ||
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, par value (in usd per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred A stock, shares outstanding (in shares) | 0 | 0 |
Stockholders' Equity - Common S
Stockholders' Equity - Common Stock (Details) | Jun. 30, 2020vote$ / sharesshares | Feb. 28, 2020$ / shares | Dec. 31, 2019vote$ / sharesshares |
Common Class A | |||
Class of Stock [Line Items] | |||
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 | |
Common stock, par value (in usd per share) | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 |
Common stock voting rights, votes per share | vote | 1 | 1 | |
Common stock, shares issued (in shares) | 20,555,717 | 18,584,478 | |
Common stock, shares outstanding (in shares) | 20,555,717 | 18,584,478 | |
Common Class B | |||
Class of Stock [Line Items] | |||
Common stock, shares authorized (in shares) | 20,000,000 | 20,000,000 | |
Common stock, par value (in usd per share) | $ / shares | $ 0.001 | $ 0.001 | |
Common stock voting rights, votes per share | vote | 10 | 10 | |
Common stock, shares issued (in shares) | 3,599,554 | 4,927,401 | |
Common stock, shares outstanding (in shares) | 3,599,554 | 4,927,401 |
Stockholders' Equity - Reserved
Stockholders' Equity - Reserved Shares of Common Stock for Issuance (Details) - shares | Jun. 30, 2020 | Dec. 31, 2019 |
Class of Stock [Line Items] | ||
Common stock reserved for future issuance (in shares) | 2,820,284 | 2,556,104 |
StockOptionsIssuedandOutstandingMember | ||
Class of Stock [Line Items] | ||
Common stock reserved for future issuance (in shares) | 313,956 | 853,399 |
Stock-based awards available for grant under the 2017 Plan | ||
Class of Stock [Line Items] | ||
Common stock reserved for future issuance (in shares) | 468,797 | 392,351 |
Stock-based awards available for grant under the 2017 Plan | ||
Class of Stock [Line Items] | ||
Common stock reserved for future issuance (in shares) | 2,037,531 | 1,310,354 |
Stock Based Compensation - Addi
Stock Based Compensation - Additional Information (Details) - USD ($) $ in Thousands | Jan. 01, 2020 | Jan. 01, 2018 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Nov. 09, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Common stock reserved for future issuance (in shares) | 2,820,284 | 2,820,284 | 2,556,104 | |||||
Estimated grant date fair value of options vested | $ 83 | $ 223 | $ 129 | $ 280 | ||||
Unrecognized cost for stock based compensation | 305 | 305 | ||||||
Unrecognized compensation cost related to non-vested RSUs | $ 19,758 | $ 19,758 | ||||||
Employee Stock Option | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Unrecognized cost for stock based compensation, period for recognition (in years) | 1 year 21 days | |||||||
Restricted Stock Units (RSUs) | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Common stock reserved for future issuance (in shares) | 468,797 | 468,797 | 392,351 | |||||
Vesting percentage | 25.00% | |||||||
Share-based compensation arrangement, requisite service period | 4 years | |||||||
Unrecognized cost for stock based compensation, period for recognition (in years) | 2 years 11 months 1 day | |||||||
Restricted Stock Units (RSUs) | Non-employee Board of Directors | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting period (in years) | 4 years | |||||||
Restricted Stock Units (RSUs) | Non-employee Board of Directors | Year one vesting | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting percentage | 50.00% | |||||||
Restricted Stock Units (RSUs) | Non-employee Board of Directors | First quarter vesting | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting percentage | 12.50% | |||||||
Restricted Stock Units (RSUs) | Non-employee Board of Directors | Second quarter vesting | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting percentage | 12.50% | |||||||
Restricted Stock Units (RSUs) | Non-employee Board of Directors | Third quarter vesting | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting percentage | 12.50% | |||||||
Restricted Stock Units (RSUs) | Non-employee Board of Directors | Forth quarter vesting | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting percentage | 12.50% | |||||||
Restricted Stock Units (RSUs) | Non-employee Board of Directors | Year two, three and four vesting | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting percentage | 50.00% | |||||||
2017 Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Common stock reserved for future issuance (in shares) | 1,050,000 | |||||||
Common stock reserved for future issuance, percent increase | 5.00% | |||||||
Increase in shares available for grant (in shares) | 929,224 | |||||||
2017 Plan | Employee Stock Option | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting period (in years) | 4 years | |||||||
Contractual life (in years) | 10 years |
Stock Based Compensation - Stoc
Stock Based Compensation - Stock Option Activity (Details) - Employee Stock Option - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Number of options outstanding | ||
Number of options outstanding, beginning balance (in shares) | 853,399 | |
Number of options, granted (in shares) | 0 | |
Number of options exercised (in shares) | (534,241) | |
Number of options, forfeited or cancelled (in shares) | (5,202) | |
Number of options outstanding, ending balance (in shares) | 313,956 | 853,399 |
Options vested and exercisable (in shares) | 240,354 | |
Options vested and expected to vest (in shares) | 313,458 | |
Weighted- average exercise price (per share) | ||
Weighted-average exercise price, beginning balance (in usd per share) | $ 8.07 | |
Weighted-average exercise price, granted (in usd per share) | 0 | |
Weighted-average exercise price, exercised (in usd per share) | 6.63 | |
Weighted-average exercise price, forfeited or cancelled (in usd per share) | 10.31 | |
Weighted-average exercise price, ending balance (in usd per share) | 10.50 | $ 8.07 |
Weighted-average exercise price, options vested and exercisable (in usd per share) | 8.96 | |
Weighted average exercise price, options vested and expected to vest (in usd per share) | $ 10.49 | |
Weighted-average remaining contract life, options outstanding (in years) | 4 years 10 months 9 days | 3 years 4 months 28 days |
Weighted-average remaining contract life, options vested and exercisable (in years) | 4 years 2 months 19 days | |
Weighted average remaining contract life, options vested and expected to vest | 4 years 10 months 9 days | |
Aggregate intrinsic value, options outstanding | $ 36,577 | $ 47,770 |
Aggregate intrinsic value, options exercised | 45,248 | |
Aggregate intrinsic value, options vested and exercisable | 28,372 | |
Aggregate intrinsic value, options vested and expected to vest | $ 36,521 |
Stock Based Compensation - Rest
Stock Based Compensation - Restricted Stock Unit Activity (Details) - Restricted Stock Units (RSUs) | 6 Months Ended |
Jun. 30, 2020$ / sharesshares | |
Number of awards outstanding | |
Number of nonvested RSUs outstanding, beginning balance (in shares) | shares | 392,351 |
Number of nonvested RSUs, granted (in shares) | shares | 211,260 |
Number of nonvested RSUs, vested (in shares) | shares | (125,695) |
Number of nonvested RSUs, forfeited or cancelled (in shares) | shares | (9,119) |
Number of nonvested RSUs outstanding, ending balance (in shares) | shares | 468,797 |
Weighted-average grant date fair value (per share) | |
Weighted-average grant date fair value, beginning balance (in usd per share) | $ / shares | $ 35.22 |
Weighted average grant-date fair value of nonvested RSUs, granted (in usd per share) | $ / shares | 64.55 |
Weighted-average grant date fair value of nonvested RSUs, vested (in usd per share) | $ / shares | 39.20 |
Weighted-average grant date fair value of nonvested restricted RSUs, forfeited or cancelled (in usd per share) | $ / shares | 46.55 |
Weighted-average grant date fair value, ending balance (in usd per share) | $ / shares | $ 47.15 |
Stock Based Compensation - St_2
Stock Based Compensation - Stock Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | $ 2,425 | $ 1,630 | $ 4,924 | $ 3,306 |
Cost of revenue | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | (60) | 50 | 115 | 106 |
Research and development | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | 620 | 358 | 1,073 | 730 |
Sales and marketing | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | 376 | 292 | 771 | 612 |
General and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | $ 1,489 | $ 930 | $ 2,965 | $ 1,858 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) $ in Thousands | Jun. 15, 2020USD ($)a | May 16, 2020USD ($)a | Oct. 25, 2015USD ($) | Jun. 30, 2020USD ($) |
Lessee, Lease, Description [Line Items] | ||||
Service agreement, annual minimum commitments | $ 1,200 | |||
Service agreement, term of agreement (in years) | 5 years | |||
Non-cancellable purchase obligation | $ 9,983 | |||
Non-cancellable purchase obligation, fulfilled within a year | $ 5,516 | |||
Land (acres) | a | 40 | 40 | ||
Reimbursement of predevelopment work expenses, percent | 50.00% | |||
Maximum reimbursement of predevelopment work expenses | $ 318 | |||
Authorized | ||||
Lessee, Lease, Description [Line Items] | ||||
Consideration for the proposed Land purchase | $ 30,000 | |||
Maximum | ||||
Lessee, Lease, Description [Line Items] | ||||
Remaining lease term | 5 years 2 months 1 day |
Employee Benefit Plan (Details)
Employee Benefit Plan (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Retirement Benefits [Abstract] | ||||
Matching contributions | $ 475 | $ 373 | $ 1,109 | $ 886 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate | (399.10%) | 213.70% | (173.80%) | 162.80% |
Increase in valuation allowance | $ 14,173 |
Related Parties (Details)
Related Parties (Details) - USD ($) | Jun. 20, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 |
Related Party Transaction [Line Items] | ||||||
Rental payments received | $ (96,000) | $ (200,000) | $ (192,000) | $ (451,000) | ||
Affiliated Entity | Republic | ||||||
Related Party Transaction [Line Items] | ||||||
Amount collected on behalf | 241,000 | 714,000 | 549,000 | 1,327,000 | ||
Affiliated Entity | Republic | Facilities Sharing Agreement | ||||||
Related Party Transaction [Line Items] | ||||||
Rental payments received | (96,000) | (200,000) | (192,000) | (451,000) | ||
Due from related parties | 0 | 0 | $ 0 | |||
Affiliated Entity | Republic | Tax Sharing Agreement | ||||||
Related Party Transaction [Line Items] | ||||||
Due from related parties | 0 | 0 | 0 | |||
Affiliated Entity | Republic | Master Services Agreement | ||||||
Related Party Transaction [Line Items] | ||||||
Revenue from related parties | 583,000 | $ 677,000 | 1,116,000 | $ 1,569,000 | ||
Accounts receivable, related parties | 192,000 | 192,000 | 161,000 | |||
Minimum monthly revenue expected from related party | $ 100,000 | |||||
Minimum monthly revenue expected from related party, period | 11 months | |||||
Affiliated Entity | Republic | Services Agreement | ||||||
Related Party Transaction [Line Items] | ||||||
Revenue from related parties | 16,000 | 47,000 | ||||
Accounts receivable, related parties | $ 5,000 | $ 5,000 | $ 10,000 |
Basic and Diluted Income (Los_2
Basic and Diluted Income (Loss) per Common Share - Components of Basic and Diluted Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Earnings Per Share [Abstract] | ||||
Net income (loss) attributable to common stockholders | $ (20,641) | $ 3,472 | $ (21,699) | $ 5,464 |
Net income (loss) per share: | ||||
Basic (in usd per share) | $ (0.86) | $ 0.15 | $ (0.91) | $ 0.25 |
Diluted (in usd per share) | $ (0.86) | $ 0.14 | $ (0.91) | $ 0.23 |
Weighted Average Number of Common Shares Outstanding | ||||
Basic (in shares) | 23,973,663 | 23,102,553 | 23,768,616 | 21,807,523 |
Dilutive effect of stock options, restricted stock units, and warrants (in shares) | 0 | 1,344,864 | 0 | 1,454,973 |
Diluted (in shares) | 23,973,663 | 24,447,417 | 23,768,616 | 23,262,496 |
Basic and Diluted Income (Los_3
Basic and Diluted Income (Loss) per Common Share - Schedule of Antidilutive Common Share Equivalents Excluded from Earnings Per Share (Details) | 6 Months Ended |
Jun. 30, 2020shares | |
Employee Stock Option | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Antidilutive securities (in shares) | 313,956 |
Restricted Stock Units (RSUs) | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Antidilutive securities (in shares) | 468,797 |