Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2021 | Apr. 28, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-36343 | |
Entity Registrant Name | A10 NETWORKS, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 20-1446869 | |
Entity Address, Address Line One | 2300 Orchard Parkway | |
Entity Address, City or Town | San Jose | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 95131 | |
City Area Code | 408 | |
Local Phone Number | 325-8668 | |
Title of 12(b) Security | Common Stock, $0.00001 par value | |
Trading Symbol | ATEN | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 77,335,510 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0001580808 | |
Current Fiscal Year End Date | --12-31 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 75,696 | $ 83,281 |
Marketable securities | 85,261 | 74,851 |
Accounts receivable, net of allowances of $4 and $41, respectively | 51,449 | 51,051 |
Inventory | 19,547 | 20,730 |
Prepaid expenses and other current assets | 13,022 | 12,390 |
Total current assets | 244,975 | 242,303 |
Property and equipment, net | 8,223 | 7,888 |
Goodwill | 1,307 | 1,307 |
Intangible assets, net | 502 | 862 |
Other non-current assets | 36,573 | 38,451 |
Total assets | 291,580 | 290,811 |
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
Accounts payable | 4,521 | 4,851 |
Accrued liabilities | 26,198 | 36,930 |
Deferred revenue | 68,299 | 65,999 |
Total current liabilities | 99,018 | 107,780 |
Deferred revenue, non-current | 44,920 | 42,700 |
Other non-current liabilities | 22,983 | 24,357 |
Total liabilities | 166,921 | 174,837 |
Commitments and contingencies (Note 2 and Note 5) | ||
Stockholders' equity: | ||
Common stock, $0.00001 par value: 500,000 shares authorized; 77,102 and 76,346 shares issued and outstanding, respectively | 1 | 1 |
Treasury stock, at cost: 5,587 and 5,578 shares, respectively | (37,498) | (37,410) |
Additional paid-in-capital | 431,738 | 425,534 |
Accumulated other comprehensive income | 10 | 98 |
Accumulated deficit | (269,592) | (272,249) |
Total stockholders' equity | 124,659 | 115,974 |
Total liabilities and stockholders' equity | $ 291,580 | $ 290,811 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable | $ 4 | $ 41 |
Common Stock, par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 77,102,000 | 76,346,000 |
Common stock, shares outstanding (in shares) | 77,102,000 | 76,346,000 |
Treasury Stock, Shares | 5,587,000 | 5,578,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenue: | ||
Total revenue | $ 54,843 | $ 53,764 |
Cost of revenue: | ||
Total cost of revenue | 12,499 | 12,142 |
Gross profit | 42,344 | 41,622 |
Operating expenses: | ||
Sales and marketing | 19,092 | 20,621 |
Research and development | 13,981 | 15,315 |
General and administrative | 5,247 | 5,895 |
Total operating expenses | 38,320 | 41,831 |
Income (loss) from operations | 4,024 | (209) |
Non-operating income (expense): | ||
Interest and other income (expense), net | (1,183) | 231 |
Total non-operating income (expense), net | (1,183) | 231 |
Income before provision for income taxes | 2,841 | 22 |
Provision for income taxes | 184 | 319 |
Net income (loss) | $ 2,657 | $ (297) |
Net income (loss) per share: | ||
Basic | $ 0.03 | $ 0 |
Diluted | $ 0.03 | $ 0 |
Weighted-average shares used in computing net income (loss) per share: | ||
Basic | 76,704 | 78,061 |
Diluted | 79,636 | 78,061 |
Products | ||
Revenue: | ||
Total revenue | $ 30,540 | $ 30,736 |
Cost of revenue: | ||
Total cost of revenue | 7,086 | 6,941 |
Services | ||
Revenue: | ||
Total revenue | 24,303 | 23,028 |
Cost of revenue: | ||
Total cost of revenue | $ 5,413 | $ 5,201 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Net income (loss) | $ 2,657 | $ (297) |
Other comprehensive income (loss), net of tax: | ||
Unrealized gain (loss) on marketable securities | (88) | (288) |
Comprehensive income (loss) | $ 2,569 | $ (585) |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Treasury Stock |
Beginning balance at Dec. 31, 2019 | $ 108,787 | $ 1 | $ 403,470 | $ 251 | $ (290,065) | $ (4,870) |
Beginning balance (in shares) at Dec. 31, 2019 | 77,580 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common stock issued under employee equity incentive plans (in shares) | 1,130 | |||||
Common stock issued under employee equity incentive plans | 0 | 2,005 | ||||
Unrealized gain (loss) on marketable securities | (288) | (288) | ||||
Net income (loss) | (297) | (297) | ||||
Ending balance (in shares) at Mar. 31, 2020 | 78,710 | |||||
Ending balance at Mar. 31, 2020 | 113,252 | $ 1 | 408,520 | (37) | (290,362) | $ (4,870) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
APIC, Share-based Payment Arrangement, Option, Increase for Cost Recognition | 3,045 | |||||
Stock Repurchased During Period, Value | $ 0 | |||||
Treasury Stock, Shares, Acquired | 0 | |||||
Common stock, shares outstanding (in shares) | 76,346 | |||||
Beginning balance at Dec. 31, 2020 | $ 115,974 | $ 1 | 425,534 | 98 | (272,249) | $ (37,410) |
Beginning balance (in shares) at Dec. 31, 2020 | 76,346 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common stock issued under employee equity incentive plans (in shares) | 756 | |||||
Common stock issued under employee equity incentive plans | 0 | 1,756 | ||||
Unrealized gain (loss) on marketable securities | (88) | (88) | ||||
Net income (loss) | 2,657 | 2,657 | ||||
Ending balance (in shares) at Mar. 31, 2021 | 77,102 | |||||
Ending balance at Mar. 31, 2021 | 124,659 | $ 1 | 431,738 | $ 10 | $ (269,592) | $ (37,498) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
APIC, Share-based Payment Arrangement, Option, Increase for Cost Recognition | $ 4,448 | |||||
Stock Repurchased During Period, Value | $ (88) | |||||
Treasury Stock, Shares, Acquired | (10) | 0 | ||||
Common stock, shares outstanding (in shares) | 77,102 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 2,657 | $ (297) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 2,413 | 3,311 |
Stock-based compensation | 4,399 | 3,040 |
Other non-cash items | 181 | (13) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (315) | 10,767 |
Inventory | 1,086 | 1,472 |
Prepaid expenses and other assets | (60) | 2,426 |
Accounts payable | (501) | (3,718) |
Accrued and other liabilities | (12,106) | (4,919) |
Deferred revenue | 4,519 | 114 |
Net cash provided by operating activities | 2,273 | 12,183 |
Cash flows from investing activities: | ||
Proceeds from sales of marketable securities | 1,300 | 1,914 |
Proceeds from maturities of marketable securities | 24,140 | 10,175 |
Purchases of marketable securities | (36,197) | (5,518) |
Purchases of property and equipment | (769) | (868) |
Net cash provided by (used in) investing activities | (11,526) | 5,703 |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock under employee equity incentive plans | 1,756 | 2,005 |
Repurchase of common stock | (88) | 0 |
Net cash provided by financing activities | 1,668 | 2,005 |
Net increase (decrease) in cash and cash equivalents | (7,585) | 19,891 |
Cash and cash equivalents—beginning of period | 83,281 | 45,742 |
Cash and cash equivalents—end of period | 75,696 | 65,633 |
Non-cash investing and financing activities: | ||
Inventory transfers to property and equipment | 97 | 149 |
Purchases of property and equipment included in accounts payable | $ 172 | $ 63 |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Significant Accounting Policies | Description of Business and Summary of Significant Accounting Policies Description of Business A10 Networks, Inc. (together with our subsidiaries, the “Company”, “we”, “our” or “us”) was incorporated in California in 2004 and reincorporated in Delaware in March 2014. We are headquartered in San Jose, California and have wholly-owned subsidiaries throughout the world including Asia and Europe. We are a leading provider of networking solutions that enable next-generation networks focused on reliability, availability, scalability and cybersecurity. Our portfolio supports customers operating in the cloud, on-premise or in hybrid environments providing rapid return on their investment as well as investment protection with best-in-class technical performance. As cyber-attacks increase in volume and complexity, we integrate security as a key attribute in our solutions that further enable our customers to continue to adapt to market trends in cloud, internet of things and the ever increasing need for more data, building upon our strong global footprint and leadership in application and network infrastructure. Our customers include leading service providers (cloud, telecommunications, multiple system operators, cable), government organizations, and enterprises. Our product portfolio seeks to address many of the cyber protection challenges and solution requirements. The portfolio consists of six secure application solutions; Thunder Application Delivery Controller (“ADC”), Lightning Application Delivery Controller (“Lightning ADC”), Thunder Carrier Grade Networking (“CGN”), Thunder Threat Protection System (“TPS”), Thunder SSL Insight (“SSLi”) and Thunder Convergent Firewall (“CFW”) and intelligent management, and automation tools; Harmony Controller and aGalaxy TPS. Our products are offered in a variety of form factors and payment models, including physical appliances and perpetual and subscription-based software licenses, as well as pay-as-you-go licensing models and FlexPool, a flexible consumption-based software model. We derive revenue from sales of products and related support services. Products revenue is generated primarily by sales of hardware appliances with perpetual licenses to our embedded software solutions. We also derive revenue from licenses to, or subscription services for, software-only versions of our solutions. We generate services revenue primarily from sales of maintenance and support contracts. Our customers predominantly purchase maintenance and support in conjunction with purchases of our products. In addition, we also derive revenue from the sale of professional services. We sell our products globally to service providers and enterprises that depend on data center applications and networks to generate revenue and manage operations efficiently. We report two customer verticals: service providers and enterprises and we report customer revenues in four geographic regions: the Americas, Japan, Asia Pacific (excluding Japan) and EMEA. We believe this vertical and geographic view aligns with how we manage the business and maps our product portfolio to customer verticals. Our end-customers operate in a variety of industries, including telecommunications, technology, industrial, retail, financial, gaming, education and government. Since inception, our customer base has grown rapidly. As of March 31, 2021, we had sold products to more than 7,400 end-customers worldwide. We sell substantially all of our solutions through our high-touch sales organization as well as distribution channel partners, including distributors, value-added resellers and system integrators, and fulfill nearly all orders globally through such partners. We believe this sales approach allows us to obtain the benefits of channel distribution, such as expanding our market coverage, while still maintaining face-to-face relationships with our end-customers. We outsource the manufacturing of our hardware products to original design manufacturers. We perform quality assurance and testing at our San Jose, Taiwan and Japan distribution centers, as well as at our manufacturers’ locations. Basis of Presentation The accompanying unaudited condensed consolidated financial statements include those of A10 Networks, Inc. and its subsidiaries after elimination of all intercompany accounts and transactions. We have prepared the accompanying unaudited condensed consolidated financial statements pursuant to the rules and regulations of the United States Securities and Exchange Commission (the “SEC” or the “Commission”). As permitted under these rules and regulations, we have condensed or omitted certain financial information and footnote disclosures we normally include in our annual consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The unaudited condensed consolidated balance sheet as of December 31, 2020 has been derived from our audited financial statements, which are included in our 2020 Annual Report on Form 10-K for the year ended December 31, 2020 on file with the SEC (the “2020 Annual Report”). These financial statements have been prepared on the same basis as our annual financial statements and, in management’s opinion, reflect all adjustments consisting only of normal recurring adjustments that are necessary for a fair presentation of our financial information. Our interim period operating results do not necessarily indicate the results that may be expected for any other interim period or for the full fiscal year. The beginning and ending balances for treasury stock, at cost, have been reclassified from additional paid-in capital in the condensed consolidated statement of stockholders’ equity for the three months ended March 31, 2020 to conform with the current year presentation for treasury stock, at cost and additional paid-in capital. This reclassification did not have a material impact on the previously reported financial statements. These financial statements and accompanying notes should be read in conjunction with the financial statements and accompanying notes thereto in the 2020 Annual Report. Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Those estimates and assumptions affect revenue recognition and deferred revenue, the allowance for doubtful accounts, the sales return reserve, the valuation of inventory, the fair value of marketable securities, contingencies and litigation, accrued liabilities, deferred commissions and the determination of fair value of stock-based compensation. These estimates are based on information available as of the date of the condensed consolidated financial statements. Due to the COVID-19 pandemic, there has been uncertainty and disruption in the global economy and financial markets. The Company is not aware of any specific event or circumstance that would require an update to its estimates or judgments or a revision of the carrying value of its assets or liabilities as of April 30, 2021, the date of issuance of this Quarterly Report on Form 10-Q. These estimates may change, as new events occur and additional information is obtained. Actual results could differ materially from these estimates under different assumptions or conditions. Significant Accounting Policies The Company’s significant accounting policies are disclosed in Part II-Item 8, “Financial Statements and Supplementary Data,” of the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 filed with the SEC on March 8, 2021. There have been no material changes to the Company’s significant accounting policies during the three months ended March 31, 2021. Concentration of Credit Risk and Significant Customers Financial instruments that potentially subject us to concentrations of credit risk consist of cash, cash equivalents, marketable securities and accounts receivable. Our cash, cash equivalents and marketable securities are held and invested in high-credit quality financial instruments by recognized financial institutions and are subject to minimum credit risk. Our accounts receivable are unsecured and represent amounts due to us based on contractual obligations of our customers. We mitigate credit risk in respect to accounts receivable by performing periodic credit evaluations based on a number of factors, including past transaction experience, evaluation of credit history and review of the invoicing terms of the contract. We generally do not require our customers to provide collateral to support accounts receivable. Significant customers, including distribution channel partners and direct customers, are those which represent 10% or more of our total revenue for each period presented or our gross accounts receivable balance as of each respective balance sheet date. Revenues from our significant customers as a percentage of our total revenue are as follows: Three Months Ended March 31, Customers 2021 2020 Customer A (a distribution channel partner) 12% * Customer B (a distribution channel partner) 10% * Customer C (a distribution channel partner) * 17% Customer D (a distribution channel partner) * 16% * represents less than 10% of total revenue As of March 31, 2021, two customers accounted for 14% and 12%, respectively, of our total gross accounts receivable. As of December 31, 2020, two customers accounted for 17% and 10%, respectively, of our total gross accounts receivable. Recently Adopted Accounting Pronouncements Effective January 1, 2020, the Company adopted Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments-Credit Losses: Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), as amended, using a modified retrospective approach, with certain exceptions allowed. The standard amends the guidance for measuring and recording credit losses on financial assets measured at amortized cost by replacing the incurred-loss model with an expected-loss model. This new standard also requires that credit losses related to available-for-sale debt securities be recorded as an allowance through net income rather than by reducing the carrying amount under the current, other-than-temporary-impairment model. The adoption of ASU 2016-13 did not have a significant impact on the Company’s condensed consolidated financial statements. In January 2017, the Financial Accounting Standards Board (“FASB”) issued ASU 2017-04, Intangibles—Goodwill and Other (Topic 350)—Simplifying the Test for Goodwill Impairment (“ASU 2017-04”). ASU 2017-04 simplifies the accounting for goodwill impairments by eliminating the requirement to compare the implied fair value of goodwill with its carrying amount as part of step two of the goodwill impairment test referenced in Accounting Standards Codification (“ASC”) 350, Intangibles - Goodwill and Other (“ASC 350”). As a result, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value. However, the impairment loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. In January 2020, the Company adopted ASU 2017-04, and the adoption did not have a material impact on the Company’s condensed consolidated financial statements. Effective January 1, 2020, the Company adopted ASU No. 2018-13, Fair Value Measurement (Topic 820 - Changes to the Disclosure Requirements for the Fair Value Measurement) (“ASU 2018-13”). Under ASU 2018-13, entities will no longer be required to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, but public companies will be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. The guidance is effective for all entities for fiscal years beginning after December 15, 2019 and for interim periods within those fiscal years. The adoption of ASU 2018-13 did not have a significant impact on the Company’s condensed consolidated financial statements. In November 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes . The amendments in this update improve consistent application of and simplify U.S. GAAP for Topic 740 by clarifying and amending existing guidance for, among other items, intra-period allocation, reporting tax law changes and losses in interim periods, state and local taxes not fully based on income and recognition of deferred tax liability related to certain transactions. There is also new guidance related to consolidated group reporting and tax impacts resulting from business combinations. The guidance is effective for public entities for fiscal years beginning after December 15, 2020 and for interim periods within those fiscal years. The Company adopted this guidance effective January 1, 2021 and the adoption of this guidance did not have a significant impact on the Company’s condensed consolidated financial statements. In October 2020, the FASB issued ASU No. 2020-10, Codification Improvements . The amendments in this ASU improve the consistency of the codification and reorganize the guidance into appropriate sections providing less opportunities for disclosures to be missed. The amendments in this update do not change GAAP and are not expected to result in a significant change in practice. The amendments in this ASU are effective for fiscal years beginning after December 15, 2020. Early |
Leases
Leases | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Leases | Leases The Company leases various operating spaces in the United States, Asia and Europe under non-cancellable operating lease arrangements that expire on various dates through July 2027. These arrangements require us to pay certain operating expenses, such as taxes, repairs and insurance, and contain renewal and escalation clauses. The table below presents the Company’s right-of-use assets and lease liabilities as of March 31, 2021 (in thousands): March 31, 2021 Operating leases Right-of-use assets: Other non-current assets $ 26,936 Total right-of-use assets $ 26,936 Lease liabilities: Accrued liabilities $ 5,181 Other non-current liabilities 22,197 Total operating lease liabilities $ 27,378 The aggregate future lease payments for non-cancelable operating leases as of March 31, 2021 were as follows (in thousands): Remainder of 2021 $ 4,494 2022 4,817 2023 4,414 2024 4,518 2025 4,625 Thereafter 7,148 Total lease payments 30,016 Less: imputed interest (2,638) Present value of lease liabilities $ 27,378 The components of lease costs were as follows (in thousands): Three Months Ended March 31, 2021 2020 Operating lease costs $ 1,373 $ 1,777 Short-term lease costs 147 158 Total lease costs $ 1,520 $ 1,935 Average lease terms and discount rates for the Company’s operating leases were as follows: March 31, 2021 Weighted-average remaining term (years) 5.98 Weighted-average discount rate 3.15% Supplemental cash flow information for the Company’s operating leases were as follows (in thousands): Three Months Ended March 31, 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,500 No new operating leases were entered into during the three months ended March 31, 2021. |
Marketable Securities and Fair
Marketable Securities and Fair Value Measurements | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Marketable Securities and Fair Value Measurements | Marketable Securities and Fair Value Measurements Marketable Securities Marketable securities, classified as available-for-sale, consisted of the following (in thousands): March 31, 2021 December 31, 2020 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Certificates of deposit $ — $ — $ — $ — $ 2,150 $ — $ — $ 2,150 Corporate securities 50,477 22 (24) 50,475 45,070 83 (8) 45,145 U.S. Treasury and agency securities 9,496 9 — 9,505 9,493 12 — 9,505 Commercial paper 17,383 — — 17,383 12,136 — — 12,136 Asset-backed securities 7,895 3 — 7,898 5,904 11 — 5,915 Total $ 85,251 $ 34 $ (24) $ 85,261 $ 74,753 $ 106 $ (8) $ 74,851 During the three months ended March 31, 2021 and 2020, we did not reclassify any amount to earnings from accumulated other comprehensive income (loss) related to unrealized gains or losses. The following table summarizes the cost and estimated fair value of marketable securities based on stated effective maturities as of March 31, 2021 (in thousands): Amortized Cost Fair Value Less than 1 year $ 76,871 $ 76,887 Mature in 1 - 3 years 8,380 8,374 Total $ 85,251 $ 85,261 All available-for-sale securities have been classified as current because they are available for use in current operations. Marketable securities in an unrealized loss position as of March 31, 2021 consisted of the following (in thousands): Less Than 12 Months 12 Months or More Total As of March 31, 2021 Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Corporate securities $ 31,863 $ (18) $ 8,096 $ (6) $ 39,959 $ (24) Marketable securities in an unrealized loss position as of December 31, 2020 consisted of the following (in thousands): Less Than 12 Months 12 Months or More Total As of December 31, 2020 Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Corporate securities $ 20,355 $ (8) $ — $ — $ 20,355 $ (8) Based on evaluation of securities that have been in a continuous loss position, we did not recognize any other-than-temporary impairment charges during the three months ended March 31, 2021 and 2020. Fair Value Measurements The following is a summary of our cash, cash equivalents and marketable securities measured at fair value on a recurring basis (in thousands): March 31, 2021 December 31, 2020 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash $ 60,138 $ — $ — $ 60,138 $ 62,388 $ — $ — $ 62,388 Cash equivalents 15,558 — — 15,558 20,893 — — 20,893 Certificates of deposit — — — — — 2,150 — 2,150 Corporate securities — 50,475 — 50,475 — 45,145 — 45,145 U.S. Treasury and agency securities — 9,505 — 9,505 — 9,505 — 9,505 Commercial paper — 17,383 — 17,383 — 12,136 — 12,136 Asset-backed securities — 7,898 — 7,898 — 5,915 — 5,915 Total $ 75,696 $ 85,261 $ — $ 160,957 $ 83,281 $ 74,851 $ — $ 158,132 There were no transfers between Level 1 and Level 2 fair value measurement categories during the three months ended March 31, 2021 and 2020. |
Condensed Consolidated Financia
Condensed Consolidated Financial Statement Details | 3 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Condensed Consolidated Financial Statement Details | Condensed Consolidated Financial Statement Details Inventory Inventory consisted of the following (in thousands): March 31, December 31, Raw materials $ 8,943 $ 8,395 Finished goods 10,604 12,335 Total inventory $ 19,547 $ 20,730 Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following (in thousands): March 31, December 31, Prepaid expenses $ 4,283 $ 3,818 Deferred contract acquisition costs 5,848 5,345 Other 2,891 3,227 Total prepaid expenses and other current assets $ 13,022 $ 12,390 Property and Equipment, Net Property and equipment, net, consisted of the following (in thousands): Useful Life March 31, December 31, (in years) Equipment 1 - 5 $ 25,875 $ 25,286 Software 1 - 3 765 765 Furniture and fixtures 1 - 7 652 652 Leasehold improvements Lease term 3,616 3,616 Construction in process 2,174 1,677 Property and equipment, gross 33,082 31,996 Less: accumulated depreciation (24,859) (24,108) Property and equipment, net $ 8,223 $ 7,888 Depreciation expense on property and equipment was $0.7 million and $1.3 million for the three months ended March 31, 2021 and 2020, respectively. Intangible Assets Purchased intangible assets, net, consisted of the following (in thousands): March 31, 2021 December 31, 2020 Cost Accumulated Amortization Net Cost Accumulated Amortization Net Developed technology $ 5,050 $ (4,797) $ 253 $ 5,050 $ (4,545) $ 505 Patents 2,936 (2,687) 249 2,936 (2,579) 357 Total intangible assets $ 7,986 $ (7,484) $ 502 $ 7,986 $ (7,124) $ 862 Amortization expense related to purchased intangible assets was $0.4 million and $0.4 million for the three months ended March 31, 2021 and 2020, respectively. Future amortization expense for purchased intangible assets as of March 31, 2021 is as follows (in thousands): Fiscal Year Remainder of 2021 $ 502 Accrued Liabilities Accrued liabilities consisted of the following (in thousands): March 31, December 31, Accrued compensation and benefits $ 11,458 $ 19,725 Accrued tax liabilities 2,030 3,748 Lease liability 5,181 5,260 Other 7,529 8,197 Total accrued liabilities $ 26,198 $ 36,930 Deferred Revenue Deferred revenue consisted of the following (in thousands): March 31, December 31, Deferred revenue: Products $ 6,248 $ 7,358 Services 106,971 101,341 Total deferred revenue 113,219 108,699 Less: current portion (68,299) (65,999) Non-current portion $ 44,920 $ 42,700 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Lease Commitments We lease various operating spaces in the United States, Asia and Europe under non-cancelable operating lease arrangements that expire on various dates through July 2027. These arrangements require us to pay certain operating expenses, such as taxes, repairs and insurance, and contain renewal and escalation clauses. We recognize rent expense under these arrangements on a straight-line basis over the term of the lease. See Note 2 - Leases for the Company’s aggregate future lease payments for the Company’s non-cancelable operating leases as of March 31, 2021. Rent expense was $1.4 million and $1.6 million for three months ended March 31, 2021 and 2020, respectively. Purchase Commitments We have open purchase commitments with third-party contract manufacturers with facilities in Taiwan to supply nearly all of our finished goods inventories, spare parts, and accessories. These purchase orders are expected to be paid within one year of the issuance date. Guarantees and Indemnifications In the normal course of business, we provide indemnifications to customers against claims of intellectual property infringement made by third parties arising from the use of our products. Other guarantees or indemnification arrangements include guarantees of product and service performance, and standby letters of credit for lease facilities and corporate credit cards. We have not recorded a liability related to these indemnification and guarantee provisions and our guarantees and indemnification arrangements have not had any significant impact on our condensed consolidated financial statements to date. |
Equity Incentive Plans and Stoc
Equity Incentive Plans and Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Equity Incentive Plans and Stock-Based Compensation | Equity Incentive Plans, Stock-Based Compensation and Stock Repurchase Program Equity Incentive Plans 2014 Equity Incentive Plan The 2014 Equity Incentive Plan (the “2014 Plan”) provides for the granting of stock options, restricted stock awards, restricted stock units (“RSUs”), performance-based RSUs (“PSUs”), stock appreciation rights, performance units and performance shares to our employees, consultants and members of our Board of Directors. The shares authorized for the 2014 Plan increase annually by the lesser of (i) 8,000,000 shares, (ii) 5% of the outstanding shares of common stock on the last day of our immediately preceding fiscal year, or (iii) such other lesser amount as determined by our Board of Directors. In November 2020, our Board of Directors determined the current shares authorized under the 2014 Plan were sufficient for the time being and decided not to increase the number of shares authorized in 2021. As of March 31, 2021, we had 10,537,636 shares available for future grant under the 2014 Plan. 2014 Employee Stock Purchase Plan In October 2018, the Board of Directors approved amending the 2014 Employee Stock Purchase Plan (the “Amended 2014 Purchase Plan”) in order to, among other things, reduce the maximum contribution participants can make under the plan from 15% to 10% of eligible compensation. The Amended 2014 Purchase Plan also reflects revised offering periods, which were changed from 24 months to six months in duration and that begin on or about December 1 and June 1 each year, starting in December 2018. As of March 31, 2021, the Company had 1,821,186 shares available for future issuance under the Amended 2014 Purchase Plan. Stock-Based Compensation A summary of our stock-based compensation expense is as follows (in thousands): Three Months Ended March 31, 2021 2020 Stock-based compensation by type of award: Stock options $ — $ 110 Stock awards 4,123 2,682 Employee stock purchase rights 276 248 $ 4,399 $ 3,040 Stock-based compensation by category of expense: Cost of revenue $ 572 $ 325 Sales and marketing 1,264 764 Research and development 1,431 1,006 General and administrative 1,132 945 $ 4,399 $ 3,040 As of March 31, 2021, the Company had $23.7 million of unrecognized stock-based compensation expense related to unvested stock-based awards which will be recognized over a weighted-average period of 2.39 years. Stock Options The following table summarizes our stock option activities and related information: Number of Shares (thousands) Weighted-Average Exercise Price Per Share Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value (thousands) Outstanding as of December 31, 2020 1,673 $ 5.44 Granted — — Exercised (338) 5.19 Canceled — — Outstanding as of March 31, 2021 1,335 5.51 2.70 $ 5,617 Vested and exercisable as of March 31, 2021 1,335 $ 5.51 2.70 $ 5,617 As of March 31, 2021, the aggregate intrinsic value represents the excess of the closing price of our common stock of $9.61 over the exercise price of the outstanding in-the-money options. The intrinsic value of options exercised was $1.5 million and $1.2 million during the three months ended March 31, 2021 and 2020, respectively. Stock Awards The Company has granted RSUs to its employees, consultants and members of its Board of Directors, and PSUs to certain executives and employees. The Company’s PSUs have market performance-based vesting conditions as well as service-based vesting conditions. As of March 31, 2021, there were 3,444,533 RSUs and 1,203,286 PSUs outstanding. The following table summarizes our stock award activities and related information: Number of Shares (thousands) Weighted-Average Grant Date Fair Value Per Share Weighted-Average Remaining Vesting Term Aggregate Fair Value (thousands) Nonvested as of December 31, 2020 4,888 $ 6.59 Granted 564 9.27 Released (428) 6.67 Canceled (376) 6.57 Nonvested as of March 31, 2021 4,648 $ 6.91 1.74 $ 44,666 The aggregate fair value of stock awards released was $4.0 million and $3.4 million for the three months ended March 31, 2021 and 2020, respectively. Stock Repurchase Program On September 17, 2020, the Company’s Board of Directors approved a stock repurchase program of up to $50 million of its common stock over a period of twelve months. During the three months ended March 31, 2021, the Company repurchased 10 thousand shares for a total cost of $88 thousand. Since approving the program, the Company has repurchased 2.7 million shares for a total cost of $19.3 million through March 31, 2021 and the Company had $30.7 million available to repurchase shares under this program as of March 31, 2021. Under the program, repurchased shares are held in treasury at cost. The Company’s stock repurchase program does not obligate us to acquire any specific number of shares. Shares may be repurchased in privately negotiated and/or open market transactions. To date, all repurchases under this program have occurred in the open market. |
Net Loss Per Share
Net Loss Per Share | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | Net Income (Loss) Per Share Basic net income (loss) per share is computed using the weighted average number of common shares outstanding for the period. Diluted net income (loss) per share applying the treasury stock method is computed using the weighted average number of common shares outstanding for the period plus potential dilutive common shares, including stock options, RSUs and employee stock purchase rights, unless the potential common shares are anti-dilutive. Since we had a net loss during the three months ended March 31, 2020, none of the potential dilutive common shares were included in the computation of diluted shares for this period, as inclusion of such shares would have been anti-dilutive. Basic and diluted net income (loss) per share are calculated as follows (in thousands, except per share amounts): Three Months Ended March 31, 2021 2020 Basic and diluted net income (loss) per share Numerator: Net income (loss) $ 2,657 $ (297) Denominator: Weighted-average shares outstanding - basic 76,704 78,061 Effect of dilutive potential common shares from stock options, stock awards and employee stock purchase plan 2,932 — Weighted-average shares outstanding - diluted 79,636 78,061 Net income (loss) per share: Basic $ 0.03 $ — Diluted $ 0.03 $ — The following table presents common shares related to potentially dilutive shares excluded from the calculation of diluted net income (loss) per share as their effect would have been anti-dilutive (in thousands): Three Months Ended March 31, 2021 2020 Stock options, restricted stock units and employee stock purchase rights 67 8,182 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes We recorded income tax expense of $0.2 million and $0.3 million for the three months ended March 31, 2021 and 2020, respectively, which primarily consisted of foreign taxes. Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the carrying amounts of existing assets and liabilities in the financial statements and their respective tax bases using tax rates expected to be in effect during the years in which the basis differences reverse. We believe it is more likely than not that our federal and state net deferred tax assets will not be fully realized. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of our deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. A valuation allowance is recorded for loss carryforwards and other deferred tax assets where it is more likely than not that such deferred tax assets will not be realized. Accordingly, we continue to maintain a valuation allowance against all of our U.S. and certain foreign net deferred tax assets as of March 31, 2021. We will continue to maintain a full valuation allowance against our net federal, state, and certain foreign deferred tax assets until there is sufficient evidence to support the recoverability of our deferred tax assets. We had $4.5 million of unrecognized tax benefits as of March 31, 2021. We do not anticipate a material change to our unrecognized tax benefits over the next twelve months. Unrecognized tax benefits may change during the next twelve months for items that arise in the ordinary course of business. Accrued interest and penalties related to unrecognized tax benefits are recognized as part of our provision for income taxes in our condensed consolidated statements of operations. We are subject to taxation in the United States, various states, and several foreign jurisdictions. Because we have net operating loss and credit carryforwards, there are open statutes of limitations in which federal, state, and foreign taxing authorities may examine our tax returns for all years from 2005 through the current period. We are not currently under examination by any taxing authorities. |
Geographic Information
Geographic Information | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Geographic Information | Geographic Information The following table depicts the disaggregation of revenue by geographic region based on the ship to location of our customers and is consistent with how we evaluate our financial performance (in thousands): Three Months Ended March 31, 2021 2020 Americas $ 26,270 $ 25,438 Japan 13,619 17,641 Asia Pacific, excluding Japan 6,335 4,882 EMEA 8,619 5,803 Total revenue $ 54,843 $ 53,764 The following table is a summary of our long-lived assets which include property and equipment, net and operating lease right-of-use assets based on the physical location of the assets (in thousands): March 31, December 31, United States $ 32,211 $ 32,558 Japan 1,274 1,566 Other 1,674 2,004 Total $ 35,159 $ 36,128 |
Revenue Revenue
Revenue Revenue | 3 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Contract Balances The following table reflects contract balances with customers (in thousands): March 31, December 31, 2020 Accounts receivable, net $ 51,449 $ 51,051 Deferred revenue, current 68,299 65,999 Deferred revenue, non-current 44,920 42,700 We receive payments from customers based upon billing cycles. Invoice payment terms usually range from 30 to 90 days. Accounts receivable are recorded when the right to consideration becomes unconditional. Contract assets include amounts related to our contractual right to consideration for performance obligations not yet billed and are included in prepaid and other current assets in the condensed consolidated balance sheets. The amounts were immaterial as of March 31, 2021 and December 31, 2020. Deferred revenue primarily consists of amounts that have been invoiced but not yet been recognized as revenue and consists of performance obligations pertaining to support and subscription services. We recognized revenue of $23.1 million and $21.3 million during the three months ended March 31, 2021 and 2020, respectively, related to deferred revenues at the beginning of the respective periods. Deferred Contract Acquisition Costs In connection with the adoption of ASC 340-40, we capitalize certain contract acquisition costs consisting of incremental sales commissions incurred to obtain customer contracts. Deferred commissions related to product revenues are recognized upon transfer of control to customers. Deferred commissions related to services revenue are recognized as the related performance obligations are met. Deferred commissions that will be recognized during the succeeding 12-month period are recorded as prepaid expenses and other current assets, and the remaining portion is recorded as other non-current assets. Amortization of deferred commissions is included in sales and marketing expense. Deferred contract acquisition costs were $9.6 million and $9.0 million as of March 31, 2021 and December 31, 2020, respectively. The related amortization amount was $1.7 million and $1.7 million for the three months ended March 31, 2021 and 2020, respectively. We had no impairment loss in relation to the costs capitalized and no asset impairment charges related to contract assets during the three months ended March 31, 2021 and 2020. Remaining Performance Obligations Remaining performance obligations represent contracted revenues that are non-cancellable and have not yet been recognized due to unsatisfied or partially satisfied performance obligations, which include deferred revenues and amounts that will be invoiced and recognized as revenues in future periods. We expect to recognize revenue on the remaining performance obligations as follows (in thousands): March 31, 2021 Within 1 year $ 68,299 Next 2 to 3 years 35,022 Thereafter 9,898 Total $ 113,219 |
Description of Business and S_2
Description of Business and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements include those of A10 Networks, Inc. and its subsidiaries after elimination of all intercompany accounts and transactions. We have prepared the accompanying unaudited condensed consolidated financial statements pursuant to the rules and regulations of the United States Securities and Exchange Commission (the “SEC” or the “Commission”). As permitted under these rules and regulations, we have condensed or omitted certain financial information and footnote disclosures we normally include in our annual consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The unaudited condensed consolidated balance sheet as of December 31, 2020 has been derived from our audited financial statements, which are included in our 2020 Annual Report on Form 10-K for the year ended December 31, 2020 on file with the SEC (the “2020 Annual Report”). These financial statements have been prepared on the same basis as our annual financial statements and, in management’s opinion, reflect all adjustments consisting only of normal recurring adjustments that are necessary for a fair presentation of our financial information. Our interim period operating results do not necessarily indicate the results that may be expected for any other interim period or for the full fiscal year. The beginning and ending balances for treasury stock, at cost, have been reclassified from additional paid-in capital in the condensed consolidated statement of stockholders’ equity for the three months ended March 31, 2020 to conform with the current year presentation for treasury stock, at cost and additional paid-in capital. This reclassification did not have a material impact on the previously reported financial statements. These financial statements and accompanying notes should be read in conjunction with the financial statements and accompanying notes thereto in the 2020 Annual Report. |
Use of Estimates | Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Those estimates and assumptions affect revenue recognition and deferred revenue, the allowance for doubtful accounts, the sales return reserve, the valuation of inventory, the fair value of marketable securities, contingencies and litigation, accrued liabilities, deferred commissions and the determination of fair value of stock-based compensation. These estimates are based on information available as of the date of the condensed consolidated financial statements. |
Concentration of Credit Risk and Significant Customers | Concentration of Credit Risk and Significant Customers Financial instruments that potentially subject us to concentrations of credit risk consist of cash, cash equivalents, marketable securities and accounts receivable. Our cash, cash equivalents and marketable securities are held and invested in high-credit quality financial instruments by recognized financial institutions and are subject to minimum credit risk. Our accounts receivable are unsecured and represent amounts due to us based on contractual obligations of our customers. We mitigate credit risk in respect to accounts receivable by performing periodic credit evaluations based on a number of factors, including past transaction experience, evaluation of credit history and review of the invoicing terms of the contract. We generally do not require our customers to provide collateral to support accounts receivable. Significant customers, including distribution channel partners and direct customers, are those which represent 10% or more of our total revenue for each period presented or our gross accounts receivable balance as of each respective balance sheet date. |
Recently Adopted Accounting Guidance/Recent Accounting Pronouncements Not Yet Effective | Recently Adopted Accounting Pronouncements Effective January 1, 2020, the Company adopted Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments-Credit Losses: Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), as amended, using a modified retrospective approach, with certain exceptions allowed. The standard amends the guidance for measuring and recording credit losses on financial assets measured at amortized cost by replacing the incurred-loss model with an expected-loss model. This new standard also requires that credit losses related to available-for-sale debt securities be recorded as an allowance through net income rather than by reducing the carrying amount under the current, other-than-temporary-impairment model. The adoption of ASU 2016-13 did not have a significant impact on the Company’s condensed consolidated financial statements. In January 2017, the Financial Accounting Standards Board (“FASB”) issued ASU 2017-04, Intangibles—Goodwill and Other (Topic 350)—Simplifying the Test for Goodwill Impairment (“ASU 2017-04”). ASU 2017-04 simplifies the accounting for goodwill impairments by eliminating the requirement to compare the implied fair value of goodwill with its carrying amount as part of step two of the goodwill impairment test referenced in Accounting Standards Codification (“ASC”) 350, Intangibles - Goodwill and Other (“ASC 350”). As a result, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value. However, the impairment loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. In January 2020, the Company adopted ASU 2017-04, and the adoption did not have a material impact on the Company’s condensed consolidated financial statements. Effective January 1, 2020, the Company adopted ASU No. 2018-13, Fair Value Measurement (Topic 820 - Changes to the Disclosure Requirements for the Fair Value Measurement) (“ASU 2018-13”). Under ASU 2018-13, entities will no longer be required to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, but public companies will be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. The guidance is effective for all entities for fiscal years beginning after December 15, 2019 and for interim periods within those fiscal years. The adoption of ASU 2018-13 did not have a significant impact on the Company’s condensed consolidated financial statements. In November 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes . The amendments in this update improve consistent application of and simplify U.S. GAAP for Topic 740 by clarifying and amending existing guidance for, among other items, intra-period allocation, reporting tax law changes and losses in interim periods, state and local taxes not fully based on income and recognition of deferred tax liability related to certain transactions. There is also new guidance related to consolidated group reporting and tax impacts resulting from business combinations. The guidance is effective for public entities for fiscal years beginning after December 15, 2020 and for interim periods within those fiscal years. The Company adopted this guidance effective January 1, 2021 and the adoption of this guidance did not have a significant impact on the Company’s condensed consolidated financial statements. In October 2020, the FASB issued ASU No. 2020-10, Codification Improvements . The amendments in this ASU improve the consistency of the codification and reorganize the guidance into appropriate sections providing less opportunities for disclosures to be missed. The amendments in this update do not change GAAP and are not expected to result in a significant change in practice. The amendments in this ASU are effective for fiscal years beginning after December 15, 2020. Early |
Deferred Contract Acquisition Costs | Deferred Contract Acquisition Costs In connection with the adoption of ASC 340-40, we capitalize certain contract acquisition costs consisting of incremental sales commissions incurred to obtain customer contracts. Deferred commissions related to product revenues are recognized upon transfer of control to customers. Deferred commissions related to services revenue are recognized as the related performance obligations are met. Deferred commissions that will be recognized during the succeeding 12-month period are recorded as prepaid expenses and other current assets, and the remaining portion is recorded as other non-current assets. Amortization of deferred commissions is included in sales and marketing expense. |
Description of Business and S_3
Description of Business and Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Revenue as Percentage of Total Revenue | Three Months Ended March 31, Customers 2021 2020 Customer A (a distribution channel partner) 12% * Customer B (a distribution channel partner) 10% * Customer C (a distribution channel partner) * 17% Customer D (a distribution channel partner) * 16% * represents less than 10% of total revenue |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Assets And Liabilities, | The table below presents the Company’s right-of-use assets and lease liabilities as of March 31, 2021 (in thousands): March 31, 2021 Operating leases Right-of-use assets: Other non-current assets $ 26,936 Total right-of-use assets $ 26,936 Lease liabilities: Accrued liabilities $ 5,181 Other non-current liabilities 22,197 Total operating lease liabilities $ 27,378 |
Lease Payments | The aggregate future lease payments for non-cancelable operating leases as of March 31, 2021 were as follows (in thousands): Remainder of 2021 $ 4,494 2022 4,817 2023 4,414 2024 4,518 2025 4,625 Thereafter 7,148 Total lease payments 30,016 Less: imputed interest (2,638) Present value of lease liabilities $ 27,378 |
Lease Costs | Three Months Ended March 31, 2021 2020 Operating lease costs $ 1,373 $ 1,777 Short-term lease costs 147 158 Total lease costs $ 1,520 $ 1,935 Average lease terms and discount rates for the Company’s operating leases were as follows: March 31, 2021 Weighted-average remaining term (years) 5.98 Weighted-average discount rate 3.15% Supplemental cash flow information for the Company’s operating leases were as follows (in thousands): Three Months Ended March 31, 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,500 |
Marketable Securities and Fai_2
Marketable Securities and Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Available-for-sale Securities | Marketable securities, classified as available-for-sale, consisted of the following (in thousands): March 31, 2021 December 31, 2020 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Certificates of deposit $ — $ — $ — $ — $ 2,150 $ — $ — $ 2,150 Corporate securities 50,477 22 (24) 50,475 45,070 83 (8) 45,145 U.S. Treasury and agency securities 9,496 9 — 9,505 9,493 12 — 9,505 Commercial paper 17,383 — — 17,383 12,136 — — 12,136 Asset-backed securities 7,895 3 — 7,898 5,904 11 — 5,915 Total $ 85,251 $ 34 $ (24) $ 85,261 $ 74,753 $ 106 $ (8) $ 74,851 |
Schedule of Cost and Estimated Fair Values of Available-for-sale Securities by Contractual Maturity | The following table summarizes the cost and estimated fair value of marketable securities based on stated effective maturities as of March 31, 2021 (in thousands): Amortized Cost Fair Value Less than 1 year $ 76,871 $ 76,887 Mature in 1 - 3 years 8,380 8,374 Total $ 85,251 $ 85,261 |
Schedule of gross unrealized losses | Marketable securities in an unrealized loss position as of March 31, 2021 consisted of the following (in thousands): Less Than 12 Months 12 Months or More Total As of March 31, 2021 Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Corporate securities $ 31,863 $ (18) $ 8,096 $ (6) $ 39,959 $ (24) Marketable securities in an unrealized loss position as of December 31, 2020 consisted of the following (in thousands): Less Than 12 Months 12 Months or More Total As of December 31, 2020 Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Corporate securities $ 20,355 $ (8) $ — $ — $ 20,355 $ (8) |
Schedule of Cash, Cash Equivalents and Available-for-sale Investments Measured at Fair Value on Recurring Basis | The following is a summary of our cash, cash equivalents and marketable securities measured at fair value on a recurring basis (in thousands): March 31, 2021 December 31, 2020 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash $ 60,138 $ — $ — $ 60,138 $ 62,388 $ — $ — $ 62,388 Cash equivalents 15,558 — — 15,558 20,893 — — 20,893 Certificates of deposit — — — — — 2,150 — 2,150 Corporate securities — 50,475 — 50,475 — 45,145 — 45,145 U.S. Treasury and agency securities — 9,505 — 9,505 — 9,505 — 9,505 Commercial paper — 17,383 — 17,383 — 12,136 — 12,136 Asset-backed securities — 7,898 — 7,898 — 5,915 — 5,915 Total $ 75,696 $ 85,261 $ — $ 160,957 $ 83,281 $ 74,851 $ — $ 158,132 |
Condensed Consolidated Financ_2
Condensed Consolidated Financial Statement Details (Tables) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Property, Plant and Equipment [Abstract] | ||
Schedule of Inventory | Inventory consisted of the following (in thousands): March 31, December 31, Raw materials $ 8,943 $ 8,395 Finished goods 10,604 12,335 Total inventory $ 19,547 $ 20,730 | |
Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consisted of the following (in thousands): March 31, December 31, Prepaid expenses $ 4,283 $ 3,818 Deferred contract acquisition costs 5,848 5,345 Other 2,891 3,227 Total prepaid expenses and other current assets $ 13,022 $ 12,390 | |
Schedule of Property and Equipment, Net | Property and equipment, net, consisted of the following (in thousands): Useful Life March 31, December 31, (in years) Equipment 1 - 5 $ 25,875 $ 25,286 Software 1 - 3 765 765 Furniture and fixtures 1 - 7 652 652 Leasehold improvements Lease term 3,616 3,616 Construction in process 2,174 1,677 Property and equipment, gross 33,082 31,996 Less: accumulated depreciation (24,859) (24,108) Property and equipment, net $ 8,223 $ 7,888 | |
Schedule of Acquired Intangible Assets | Purchased intangible assets, net, consisted of the following (in thousands): March 31, 2021 December 31, 2020 Cost Accumulated Amortization Net Cost Accumulated Amortization Net Developed technology $ 5,050 $ (4,797) $ 253 $ 5,050 $ (4,545) $ 505 Patents 2,936 (2,687) 249 2,936 (2,579) 357 Total intangible assets $ 7,986 $ (7,484) $ 502 $ 7,986 $ (7,124) $ 862 | |
Schedule of Future Amortization Expense for Purchased Finite-lived Intangible Assets | Future amortization expense for purchased intangible assets as of March 31, 2021 is as follows (in thousands): Fiscal Year Remainder of 2021 $ 502 | |
Schedule of Accrued Liabilities | Accrued liabilities consisted of the following (in thousands): March 31, December 31, Accrued compensation and benefits $ 11,458 $ 19,725 Accrued tax liabilities 2,030 3,748 Lease liability 5,181 5,260 Other 7,529 8,197 Total accrued liabilities $ 26,198 $ 36,930 | |
Schedule of Deferred Revenue | Deferred revenue consisted of the following (in thousands): March 31, December 31, Deferred revenue: Products $ 6,248 $ 7,358 Services 106,971 101,341 Total deferred revenue 113,219 108,699 Less: current portion (68,299) (65,999) Non-current portion $ 44,920 $ 42,700 The following table reflects contract balances with customers (in thousands): March 31, December 31, 2020 Accounts receivable, net $ 51,449 $ 51,051 Deferred revenue, current 68,299 65,999 Deferred revenue, non-current 44,920 42,700 |
Equity Incentive Plans and St_2
Equity Incentive Plans and Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Stock-based Compensation | A summary of our stock-based compensation expense is as follows (in thousands): Three Months Ended March 31, 2021 2020 Stock-based compensation by type of award: Stock options $ — $ 110 Stock awards 4,123 2,682 Employee stock purchase rights 276 248 $ 4,399 $ 3,040 Stock-based compensation by category of expense: Cost of revenue $ 572 $ 325 Sales and marketing 1,264 764 Research and development 1,431 1,006 General and administrative 1,132 945 $ 4,399 $ 3,040 |
Summary of Activity under Stock Option Plans | The following table summarizes our stock option activities and related information: Number of Shares (thousands) Weighted-Average Exercise Price Per Share Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value (thousands) Outstanding as of December 31, 2020 1,673 $ 5.44 Granted — — Exercised (338) 5.19 Canceled — — Outstanding as of March 31, 2021 1,335 5.51 2.70 $ 5,617 Vested and exercisable as of March 31, 2021 1,335 $ 5.51 2.70 $ 5,617 |
Summary of Restricted Stock Units Activity | The following table summarizes our stock award activities and related information: Number of Shares (thousands) Weighted-Average Grant Date Fair Value Per Share Weighted-Average Remaining Vesting Term Aggregate Fair Value (thousands) Nonvested as of December 31, 2020 4,888 $ 6.59 Granted 564 9.27 Released (428) 6.67 Canceled (376) 6.57 Nonvested as of March 31, 2021 4,648 $ 6.91 1.74 $ 44,666 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Basic and diluted net income (loss) per share are calculated as follows (in thousands, except per share amounts): Three Months Ended March 31, 2021 2020 Basic and diluted net income (loss) per share Numerator: Net income (loss) $ 2,657 $ (297) Denominator: Weighted-average shares outstanding - basic 76,704 78,061 Effect of dilutive potential common shares from stock options, stock awards and employee stock purchase plan 2,932 — Weighted-average shares outstanding - diluted 79,636 78,061 Net income (loss) per share: Basic $ 0.03 $ — Diluted $ 0.03 $ — |
Summary of Anti-dilutive Shares | The following table presents common shares related to potentially dilutive shares excluded from the calculation of diluted net income (loss) per share as their effect would have been anti-dilutive (in thousands): Three Months Ended March 31, 2021 2020 Stock options, restricted stock units and employee stock purchase rights 67 8,182 |
Geographic Information (Tables)
Geographic Information (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Total Revenue Based on Customer's Location | The following table depicts the disaggregation of revenue by geographic region based on the ship to location of our customers and is consistent with how we evaluate our financial performance (in thousands): Three Months Ended March 31, 2021 2020 Americas $ 26,270 $ 25,438 Japan 13,619 17,641 Asia Pacific, excluding Japan 6,335 4,882 EMEA 8,619 5,803 Total revenue $ 54,843 $ 53,764 |
Long-lived Assets by Geographic Areas | The following table is a summary of our long-lived assets which include property and equipment, net and operating lease right-of-use assets based on the physical location of the assets (in thousands): March 31, December 31, United States $ 32,211 $ 32,558 Japan 1,274 1,566 Other 1,674 2,004 Total $ 35,159 $ 36,128 |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Contract with Customer, Asset and Liability | Deferred revenue consisted of the following (in thousands): March 31, December 31, Deferred revenue: Products $ 6,248 $ 7,358 Services 106,971 101,341 Total deferred revenue 113,219 108,699 Less: current portion (68,299) (65,999) Non-current portion $ 44,920 $ 42,700 The following table reflects contract balances with customers (in thousands): March 31, December 31, 2020 Accounts receivable, net $ 51,449 $ 51,051 Deferred revenue, current 68,299 65,999 Deferred revenue, non-current 44,920 42,700 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | We expect to recognize revenue on the remaining performance obligations as follows (in thousands): March 31, 2021 Within 1 year $ 68,299 Next 2 to 3 years 35,022 Thereafter 9,898 Total $ 113,219 |
Description of Business and S_4
Description of Business and Summary of Significant Accounting Policies - Additional Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2021USD ($)solutionshares | Mar. 31, 2020shares | Mar. 31, 2021USD ($)shares | Dec. 31, 2020shares | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
ROU asset | $ | $ 26,936 | $ 26,936 | ||
Present value of lease liabilities | $ | $ 27,378 | $ 27,378 | ||
Number of software based advanced solutions | solution | 6 | |||
Treasury Stock, Shares, Acquired | 10,000 | 2,700,000 | ||
Treasury Stock, Shares | 5,587,000 | 5,587,000 | 5,578,000 | |
Treasury Stock, Value, Acquired, Cost Method | $ | $ 88 | $ 19,300 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | 0 | |||
Treasury Stock | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Treasury Stock, Shares, Acquired | 0 | 0 |
Description of Business and S_5
Description of Business and Summary of Significant Accounting Policies - Concentration Risk (Details) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Customer A | Revenue | |||
Entity Wide Revenue Major Customer [Line Items] | |||
Percentage representation of significant customers (percent) | 12.00% | ||
Customer A | Accounts Receivable | |||
Entity Wide Revenue Major Customer [Line Items] | |||
Percentage representation of significant customers (percent) | 14.00% | 17.00% | |
Customer B | Revenue | |||
Entity Wide Revenue Major Customer [Line Items] | |||
Percentage representation of significant customers (percent) | 10.00% | ||
Customer B | Accounts Receivable | |||
Entity Wide Revenue Major Customer [Line Items] | |||
Percentage representation of significant customers (percent) | 12.00% | 10.00% | |
Customer C | Revenue | |||
Entity Wide Revenue Major Customer [Line Items] | |||
Percentage representation of significant customers (percent) | 17.00% | ||
Customer D | Revenue | |||
Entity Wide Revenue Major Customer [Line Items] | |||
Percentage representation of significant customers (percent) | 16.00% |
Leases - Assets and Liabilities
Leases - Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Total right-of-use assets | $ 26,936 | |
Accrued liabilities | 5,181 | $ 5,260 |
Other non-current liabilities | 22,197 | |
Total operating lease liabilities | $ 27,378 |
Leases - Lease Liabilities (Det
Leases - Lease Liabilities (Details) $ in Thousands | Mar. 31, 2021USD ($) |
Leases [Abstract] | |
Remainder of 2021 | $ 4,494 |
2021 | 4,817 |
2022 | 4,414 |
2023 | 4,518 |
2024 | 4,625 |
Thereafter | 7,148 |
Total lease payments | 30,016 |
Less: imputed interest | (2,638) |
Present value of lease liabilities | $ 27,378 |
Leases - Lease Costs (Details)
Leases - Lease Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Leases [Abstract] | ||
Operating lease costs | $ 1,373 | $ 1,777 |
Short-term lease costs | 147 | 158 |
Total lease costs | $ 1,520 | $ 1,935 |
Weighted-average remaining term (years) | 5 years 11 months 23 days | |
Weighted-average discount rate | 3.15% | |
Operating cash flows from operating leases | $ 1,500 |
Marketable Securities and Fai_3
Marketable Securities and Fair Value Measurements - Estimate of Fair Value of Marketable Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||
Total | $ 85,251 | $ 74,753 |
Gross Unrealized Gains | 34 | 106 |
Gross Unrealized Losses | (24) | (8) |
Available-for-sale Securities | 85,261 | 74,851 |
Certificates of deposit | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total | 0 | 2,150 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Available-for-sale Securities | 0 | 2,150 |
Corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total | 50,477 | 45,070 |
Gross Unrealized Gains | 22 | 83 |
Gross Unrealized Losses | (24) | (8) |
Available-for-sale Securities | 50,475 | 45,145 |
U.S. Treasury and agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total | 9,496 | 9,493 |
Gross Unrealized Gains | 9 | 12 |
Gross Unrealized Losses | 0 | 0 |
Available-for-sale Securities | 9,505 | 9,505 |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total | 17,383 | 12,136 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Available-for-sale Securities | 17,383 | 12,136 |
Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total | 7,895 | 5,904 |
Gross Unrealized Gains | 3 | 11 |
Gross Unrealized Losses | 0 | 0 |
Available-for-sale Securities | $ 7,898 | $ 5,915 |
Marketable Securities and Fai_4
Marketable Securities and Fair Value Measurements - Contractual Maturities (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Amortized Cost | ||
Less than 1 year | $ 76,871 | |
Mature in 1 - 3 years | 8,380 | |
Total | 85,251 | $ 74,753 |
Fair Value | ||
Less than 1 year | 76,887 | |
Mature in 1 - 3 years | 8,374 | |
Total | $ 85,261 | $ 74,851 |
Marketable Securities and Fai_5
Marketable Securities and Fair Value Measurements - Securities in Unrealized Loss Position (Details) - Corporate securities - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less Than 12 Months | $ 31,863 | $ 20,355 |
Fair Value, 12 Months or More | 8,096 | 0 |
Fair Value, Total | 39,959 | 20,355 |
Gross Unrealized Losses, Less Than 12 Months | (18) | (8) |
Gross Unrealized Losses,12 Months or More | (6) | 0 |
Gross Unrealized Losses, Total | $ (24) | $ (8) |
Marketable Securities and Fai_6
Marketable Securities and Fair Value Measurements - Schedule of Fair Value of Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Financial Assets | ||
Marketable Securities | $ 85,261 | $ 74,851 |
Level 1 | ||
Financial Assets | ||
Total | 75,696 | 83,281 |
Level 2 | ||
Financial Assets | ||
Total | 85,261 | 74,851 |
Fair Value, Inputs, Level 1, 2 and 3 | ||
Financial Assets | ||
Total | 160,957 | 158,132 |
Cash | ||
Financial Assets | ||
Cash and Cash Equivalents | 60,138 | 62,388 |
Cash | Level 1 | ||
Financial Assets | ||
Cash and Cash Equivalents | 60,138 | 62,388 |
Cash equivalents | ||
Financial Assets | ||
Cash and Cash Equivalents | 15,558 | 20,893 |
Cash equivalents | Level 1 | ||
Financial Assets | ||
Cash and Cash Equivalents | 15,558 | 20,893 |
Certificates of deposit | ||
Financial Assets | ||
Marketable Securities | 0 | 2,150 |
Certificates of deposit | Level 2 | ||
Financial Assets | ||
Marketable Securities | 0 | 2,150 |
Corporate securities | ||
Financial Assets | ||
Marketable Securities | 50,475 | 45,145 |
Corporate securities | Level 2 | ||
Financial Assets | ||
Marketable Securities | 50,475 | 45,145 |
U.S. Treasury and agency securities | ||
Financial Assets | ||
Marketable Securities | 9,505 | 9,505 |
U.S. Treasury and agency securities | Level 2 | ||
Financial Assets | ||
Marketable Securities | 9,505 | 9,505 |
Commercial paper | ||
Financial Assets | ||
Marketable Securities | 17,383 | 12,136 |
Commercial paper | Level 2 | ||
Financial Assets | ||
Marketable Securities | 17,383 | 12,136 |
Asset-backed securities | ||
Financial Assets | ||
Marketable Securities | 7,898 | 5,915 |
Asset-backed securities | Level 2 | ||
Financial Assets | ||
Marketable Securities | $ 7,898 | $ 5,915 |
Condensed Consolidated Financ_3
Condensed Consolidated Financial Statement Details - Schedule of Inventory (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 8,943 | $ 8,395 |
Finished goods | 10,604 | 12,335 |
Total inventory | $ 19,547 | $ 20,730 |
Condensed Consolidated Financ_4
Condensed Consolidated Financial Statement Details - Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Abstract] | ||
Prepaid expenses | $ 4,283 | $ 3,818 |
Deferred contract acquisition costs | 5,848 | 5,345 |
Other | 2,891 | 3,227 |
Total prepaid expenses and other current assets | $ 13,022 | $ 12,390 |
Condensed Consolidated Financ_5
Condensed Consolidated Financial Statement Details - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 33,082 | $ 31,996 |
Less: accumulated depreciation | (24,859) | (24,108) |
Property and equipment, net | 8,223 | 7,888 |
Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 25,875 | 25,286 |
Software | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 765 | 765 |
Furniture and fixtures | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 652 | 652 |
Leasehold improvements | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 3,616 | 3,616 |
Construction in process | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 2,174 | $ 1,677 |
Minimum | Equipment | ||
Property Plant And Equipment [Line Items] | ||
Useful life | 1 year | |
Minimum | Software | ||
Property Plant And Equipment [Line Items] | ||
Useful life | 1 year | |
Minimum | Furniture and fixtures | ||
Property Plant And Equipment [Line Items] | ||
Useful life | 1 year | |
Minimum | Leasehold improvements | ||
Property Plant And Equipment [Line Items] | ||
Useful life | 2 years | |
Maximum | Equipment | ||
Property Plant And Equipment [Line Items] | ||
Useful life | 5 years | |
Maximum | Software | ||
Property Plant And Equipment [Line Items] | ||
Useful life | 3 years | |
Maximum | Furniture and fixtures | ||
Property Plant And Equipment [Line Items] | ||
Useful life | 7 years | |
Maximum | Leasehold improvements | ||
Property Plant And Equipment [Line Items] | ||
Useful life | 8 years |
Condensed Consolidated Financ_6
Condensed Consolidated Financial Statement Details - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 0.7 | $ 1.3 |
Amortization expense related to intangible assets | $ 0.4 | $ 0.4 |
Condensed Consolidated Financ_7
Condensed Consolidated Financial Statement Details - Purchased Intangible Assets, net (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Cost | $ 7,986 | $ 7,986 | |
Accumulated Amortization | (7,484) | (7,124) | |
Net | 502 | 862 | |
Amortization expense related to intangible assets | 400 | $ 400 | |
Developed technology | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Cost | 5,050 | 5,050 | |
Accumulated Amortization | (4,797) | (4,545) | |
Net | 253 | 505 | |
Patents | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Cost | 2,936 | 2,936 | |
Accumulated Amortization | (2,687) | (2,579) | |
Net | $ 249 | $ 357 |
Condensed Consolidated Financ_8
Condensed Consolidated Financial Statement Details - Future Amortization Expense of Acquired Intangibles (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Abstract] | ||
Remainder of 2021 | $ 502 | |
Net | $ 502 | $ 862 |
Condensed Consolidated Financ_9
Condensed Consolidated Financial Statement Details - Accrued Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Accrued Liabilities, Current [Abstract] | ||
Accrued compensation and benefits | $ 11,458 | $ 19,725 |
Accrued tax liabilities | 2,030 | 3,748 |
Lease liability | 5,181 | 5,260 |
Other | 7,529 | 8,197 |
Total accrued liabilities | $ 26,198 | $ 36,930 |
Condensed Consolidated Finan_10
Condensed Consolidated Financial Statement Details - Schedule of Deferred Revenue (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Deferred Revenue Arrangement [Line Items] | ||
Total deferred revenue | $ 113,219 | $ 108,699 |
Less: current portion | (68,299) | (65,999) |
Non-current portion | 44,920 | 42,700 |
Products | ||
Deferred Revenue Arrangement [Line Items] | ||
Total deferred revenue | 6,248 | 7,358 |
Services | ||
Deferred Revenue Arrangement [Line Items] | ||
Total deferred revenue | $ 106,971 | $ 101,341 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Rent expense | $ 1.4 | $ 1.6 |
Equity Incentive Plans and St_3
Equity Incentive Plans and Stock-Based Compensation - 2014 Equity Incentive Plan/ESPP (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Jun. 10, 2015 | Oct. 31, 2018 | Mar. 31, 2021 | Mar. 31, 2020 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Intrinsic value of options exercised | $ 1.5 | $ 1.2 | |||
2014 Stock Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares available for future grant (in shares) | 10,537,636 | ||||
2014 Stock Incentive Plan | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage of outstanding shares of common stock | 5.00% | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Other Share Increase (Decrease) | 8,000,000 | ||||
2014 Employee Stock Purchase Plan | ESPP | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage of eligible compensation | 15.00% | ||||
Offering period | 24 months | ||||
Amended 2014 Employee Stock Purchase Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares available for future grant (in shares) | 1,821,186 | ||||
Amended 2014 Employee Stock Purchase Plan | ESPP | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage of eligible compensation | 10.00% | ||||
Offering period | 6 months |
Equity Incentive Plans and St_4
Equity Incentive Plans and Stock-Based Compensation - Schedule of Stock-based Compensation Awards Granted under Stock Option Plan in Consolidated Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation | $ 4,399 | $ 3,040 |
Cost of revenue | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation | 572 | 325 |
Sales and marketing | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation | 1,264 | 764 |
Research and development | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation | 1,431 | 1,006 |
General and administrative | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation | 1,132 | 945 |
Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation | 0 | 110 |
Stock awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation | 4,123 | 2,682 |
Employee stock purchase rights | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation | $ 276 | $ 248 |
Equity Incentive Plans and St_5
Equity Incentive Plans and Stock-Based Compensation - Stock-based Compensation/Stock Repurchase Program (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Share-based Payment Arrangement [Abstract] | |
Total compensation expense related to unvested awards granted, not yet recognized | $ 23.7 |
Total compensation expense related to unvested awards granted, not yet recognized weighted-average period for recognition (in years) | 2 years 4 months 20 days |
Equity Incentive Plans and St_6
Equity Incentive Plans and Stock-Based Compensation - Summary of Activity under Stock Option Plans (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Number of Shares (thousands) | ||
Outstanding options, Beginning balance (in shares) | 1,673 | |
Granted (in shares) | 0 | |
Exercised (in shares) | (338) | |
Canceled (in shares) | 0 | |
Outstanding options, Ending balance (in shares) | 1,335 | |
Vested and exercisable (in shares) | 1,335 | |
Weighted-Average Exercise Price Per Share | ||
Beginning balance (in dollars per share) | $ 5.44 | |
Granted (in dollars per share) | 0 | |
Exercised (in dollars per share) | 5.19 | |
Canceled (in dollars per share) | 0 | |
Ending balance (in dollars per share) | 5.51 | |
Vested and exercisable at end of period (in dollars per share) | $ 5.51 | |
Weighted-average remaining contractual term (in years) | 2 years 8 months 12 days | |
Weighted average remaining contractual term, Vested and exercisable at end of period (in years) | 2 years 8 months 12 days | |
Aggregate Intrinsic Value | $ 5,617 | |
Aggregate Intrinsic Value, Vested and exercisable at end of period | $ 5,617 | |
Closing price (in dollars per share) | $ 9.61 | |
Intrinsic value of options exercised | $ 1,500 | $ 1,200 |
Equity Incentive Plans and St_7
Equity Incentive Plans and Stock-Based Compensation - Information About Stock Options (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 1.5 | $ 1.2 |
Equity Incentive Plans and St_8
Equity Incentive Plans and Stock-Based Compensation - Summary of RSU activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Unvested at end of period (in shares) | 4,648,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Nonvested | $ 44,666 | |
Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Unvested at beginning of period (in shares) | 4,888,000 | |
Granted (in shares) | 564,000 | |
Released (in shares) | (428,000) | |
Canceled (in shares) | (376,000) | |
Unvested at end of period (in shares) | 3,444,533 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Unvested at beginning of period (in dollars per share) | $ 6.59 | |
Granted (in dollars per share) | 9.27 | |
Released (in dollars per share) | 6.67 | |
Canceled (in dollars per share) | 6.57 | |
Unvested at ending of period (in dollars per share) | $ 6.91 | |
Weighted-Average Remaining Vesting Term (years) | 1 year 8 months 26 days | |
Fair value of released awards | $ 4,000 | $ 3,400 |
Performance Stock Units (PSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Unvested at end of period (in shares) | 1,203,286 |
Equity Incentive Plans and St_9
Equity Incentive Plans and Stock-Based Compensation (Details) - Stock Repurchase Program - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 17, 2020 | |
Share-based Payment Arrangement [Abstract] | ||||
Treasury Stock, Shares | 5,587,000 | 5,587,000 | 5,578,000 | |
Stock Repurchase Program, Authorized Amount | $ 50,000 | |||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 30,700 | $ 30,700 | ||
Treasury Stock, Value, Acquired, Cost Method | $ 88 | $ 19,300 | ||
Treasury Stock, Shares, Acquired | 10,000 | 2,700,000 |
Net Loss Per Share - Summary of
Net Loss Per Share - Summary of Outstanding Shares of Common Stock Equivalents (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Earnings Per Share Diluted [Line Items] | ||
Net income (loss) | $ 2,657 | $ (297) |
Weighted-average shares outstanding - basic (in shares) | 76,704 | 78,061 |
Weighted Average Number Diluted Shares Outstanding Adjustment | 2,932 | 0 |
Weighted-average shares outstanding - diluted (in shares) | 79,636 | 78,061 |
Basic | $ 0.03 | $ 0 |
Diluted | $ 0.03 | $ 0 |
Stock options, restricted stock units and employee stock purchase rights | ||
Earnings Per Share Diluted [Line Items] | ||
Anti-dilutive securities excluded from computation of diluted net income per share | 67 | 8,182 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense | $ 184 | $ 319 |
Unrecognized tax benefits | $ 4,500 |
Geographic Information - Schedu
Geographic Information - Schedule of Total Revenue Based on Customer's Location (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Segment Reporting Information [Line Items] | ||
Total revenue | $ 54,843 | $ 53,764 |
Americas | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 26,270 | 25,438 |
Japan | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 13,619 | 17,641 |
Asia Pacific, excluding Japan | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 6,335 | 4,882 |
EMEA | ||
Segment Reporting Information [Line Items] | ||
Total revenue | $ 8,619 | $ 5,803 |
Geographic Information - Long L
Geographic Information - Long Lived Assets By Geographic Area (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 35,159 | $ 36,128 |
Americas | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 32,211 | 32,558 |
Japan | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 1,274 | 1,566 |
Other | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 1,674 | $ 2,004 |
Revenue - Additional Informatio
Revenue - Additional Information (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Accumulated deficit | $ 269,592,000 | $ 272,249,000 | |
Deferred revenue | 113,219,000 | 108,699,000 | |
Revenue recognized | 23,100,000 | $ 21,300,000 | |
Asset impairment charges for contract assets | 0 | ||
Deferred Sales Commissions | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Deferred contract acquisition costs | 9,600,000 | $ 9,000,000 | |
Amortization | 1,700,000 | $ 1,700,000 | |
Impairment loss of contract acquisition costs | $ 0 |
Revenue - Contract Balances (De
Revenue - Contract Balances (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Revenue from Contract with Customer [Abstract] | ||
Accounts receivable, net | $ 51,449 | $ 51,051 |
Deferred revenue | 68,299 | 65,999 |
Deferred revenue, non-current | $ 44,920 | $ 42,700 |
Revenue - Remaining Performance
Revenue - Remaining Performance Obligations (Details) $ in Thousands | Mar. 31, 2021USD ($) |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligation | $ 113,219 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-04-01 | |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligation | $ 68,299 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01 | |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligation | $ 35,022 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation period | 2 years |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01 | |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligation | $ 9,898 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation period | 4 years |