Document and Entity Information
Document and Entity Information | 6 Months Ended |
Jun. 30, 2018 | |
Document And Entity Information [Abstract] | |
Document Type | S1 |
Amendment Flag | false |
Document Period End Date | Jun. 30, 2018 |
Trading Symbol | SAIL |
Entity Registrant Name | SailPoint Technologies Holdings, Inc. |
Entity Central Index Key | 1,627,857 |
Entity Filer Category | Non-accelerated Filer |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets | |||
Cash and cash equivalents | $ 81,809 | $ 116,049 | $ 18,214 |
Restricted cash | 120 | 78 | 58 |
Accounts receivable | 55,196 | 72,907 | 48,791 |
Prepayments and other current assets | 9,784 | 10,013 | 7,694 |
Total current assets | 146,909 | 199,047 | 74,757 |
Property and equipment, net | 3,595 | 3,018 | 1,855 |
Deferred tax asset - non-current | 264 | 264 | 428 |
Other non-current assets | 3,328 | 3,542 | 980 |
Goodwill | 219,377 | 219,377 | 219,377 |
Intangible assets, net | 76,773 | 81,185 | 90,013 |
Total assets | 450,246 | 506,433 | 387,410 |
Current liabilities | |||
Accounts payable | 2,894 | 2,231 | 787 |
Accrued expenses and other liabilities | 14,106 | 22,636 | 13,105 |
Income taxes payable | 1,423 | 1,688 | 818 |
Deferred revenue | 81,322 | 73,671 | 49,850 |
Total current liabilities | 99,745 | 100,226 | 64,560 |
Deferred tax liability-non-current | 95 | ||
Long-term debt | 9,640 | 68,329 | 107,344 |
Other long-term liabilities | 51 | 27 | 54 |
Deferred revenue non-current | 13,817 | 9,454 | 5,254 |
Total liabilities | 123,253 | 178,036 | 177,307 |
Commitments and contingencies | |||
Stockholders' (deficit) equity | |||
Common stock, value | 9 | 8 | 5 |
Preferred stock, value | |||
Treasury stock, at cost | 0 | 0 | |
Additional paid in capital | 363,818 | 353,609 | 3,739 |
Accumulated deficit | (36,834) | (25,220) | (17,628) |
Total stockholders' (deficit) equity | 326,993 | 328,397 | (13,884) |
Total redeemable convertible preferred stock and stockholders' equity (deficit) | 328,397 | 210,103 | |
Total liabilities and stockholders’ equity | $ 450,246 | 506,433 | 387,410 |
Redeemable Convertible Preferred Stock | |||
Current liabilities | |||
Redeemable convertible preferred stock, value | $ 0 | $ 223,987 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Common stock, par value | $ 0.0001 | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 300,000,000 | 300,000,000 | 59,500,000 |
Common stock, shares issued | 86,596,023 | 84,948,126 | 46,397,369 |
Common stock, shares outstanding | 86,596,023 | 84,948,126 | 46,397,369 |
Preferred stock, par value | $ 0.0001 | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | 0 |
Preferred stock, shares issued | 0 | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 | 0 |
Treasury stock, shares | 0 | 0 | |
Redeemable Convertible Preferred Stock | |||
Redeemable convertible preferred stock, par value | $ 0.0001 | $ 0.0001 | |
Redeemable convertible preferred stock, shares authorized | 0 | 500,000 | |
Redeemable convertible preferred stock, shares issued | 0 | 223,987 | |
Redeemable convertible preferred stock, shares outstanding | 0 | 223,987 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenue | |||||
Total revenue | $ 104,274 | $ 74,726 | $ 186,056 | $ 132,412 | $ 95,356 |
Cost of revenue | |||||
Total cost of revenue | 26,146 | 20,830 | 44,590 | 37,038 | 29,259 |
Gross profit | 78,128 | 53,896 | 141,466 | 95,374 | 66,097 |
Operating expenses | |||||
Research and development | 19,877 | 14,893 | 33,331 | 24,358 | 19,965 |
General and administrative | 15,400 | 6,474 | 17,678 | 9,680 | 7,474 |
Sales and marketing | 48,978 | 33,513 | 80,514 | 58,607 | 46,831 |
Total operating expenses | 84,255 | 54,880 | 131,523 | 92,645 | 74,270 |
Income (loss) from operations | (6,127) | (984) | 9,943 | 2,729 | (8,173) |
Other expense, net: | |||||
Interest expense, net | (3,978) | (5,353) | (14,783) | (7,277) | (3,883) |
Other, net | (716) | (94) | (459) | (610) | (1,365) |
Total other expense, net | (4,694) | (5,447) | (15,242) | (7,887) | (5,248) |
Loss before income taxes | (10,821) | (6,431) | (5,299) | (5,158) | (13,421) |
Income tax (expense) benefit | (793) | (156) | (2,293) | 1,985 | 2,614 |
Net loss | (11,614) | (6,587) | (7,592) | (3,173) | (10,807) |
Net loss available to common shareholders | $ (11,614) | $ (19,177) | $ (28,721) | $ (26,791) | $ (32,404) |
Net loss per share | |||||
Basic | $ (0.14) | $ (0.40) | $ (0.55) | $ (0.58) | $ (0.74) |
Diluted | $ (0.14) | $ (0.40) | $ (0.55) | $ (0.58) | $ (0.74) |
Weighted average shares outstanding | |||||
Basic | 85,984,103 | 47,567,048 | 52,339,804 | 45,933,218 | 43,929,159 |
Diluted | 85,984,103 | 47,567,048 | 52,339,804 | 45,933,218 | 43,929,159 |
Licenses | |||||
Revenue | |||||
Total revenue | $ 36,115 | $ 25,577 | $ 79,209 | $ 54,395 | $ 44,124 |
Cost of revenue | |||||
Total cost of revenue | 2,398 | 2,197 | 4,561 | 4,278 | 4,293 |
Subscription | |||||
Revenue | |||||
Total revenue | 48,056 | 31,276 | 71,007 | 49,364 | 29,930 |
Cost of revenue | |||||
Total cost of revenue | 9,577 | 7,513 | 16,406 | 13,051 | 9,815 |
Service and other | |||||
Revenue | |||||
Total revenue | 20,103 | 17,873 | 35,840 | 28,653 | 21,302 |
Cost of revenue | |||||
Total cost of revenue | $ 14,171 | $ 11,120 | $ 23,623 | $ 19,709 | $ 15,151 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating activities | |||||
Net loss | $ (11,614) | $ (6,587) | $ (7,592) | $ (3,173) | $ (10,807) |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||
Depreciation and amortization expense | 5,278 | 4,978 | 10,220 | 9,982 | 9,620 |
Amortization of loan origination fees | 191 | 307 | 746 | 749 | 140 |
Gain on disposal of fixed assets | (48) | (5) | (20) | 5 | 15 |
Loss on modification and partial extinguishment of debt | 1,536 | 1,702 | |||
Stock-based compensation expense | 9,255 | 343 | 4,514 | 568 | 246 |
Deferred taxes | 69 | (2,537) | (3,326) | ||
Accounts receivable | 17,711 | 1,283 | (24,116) | (17,245) | (5,252) |
Prepayments and other current assets | 229 | 1,743 | (2,174) | (2,779) | (1,173) |
Other non-current assets | 214 | (1,570) | (2,453) | (857) | 97 |
Accounts payable | 663 | 835 | 1,443 | (262) | (640) |
Accrued expenses and other liabilities | (8,557) | (2,731) | 10,882 | 1,712 | 3,068 |
Income taxes payable (receivable) | (264) | (229) | 614 | 161 | (56) |
Deferred revenue | 12,013 | 7,662 | 28,021 | 20,216 | 11,628 |
Changes in operating assets and liabilities, net of acquisition: | |||||
Net cash provided by operating activities | 26,607 | 6,029 | 21,856 | 6,540 | 3,560 |
Investing activities | |||||
Purchase of property and equipment | (1,405) | (1,263) | (2,711) | (1,263) | (1,232) |
Proceeds from sale of property and equipment | 8 | 109 | 190 | 8 | 133 |
Cash paid for acquisition, net of cash acquired | (15,209) | ||||
Net cash used in investing activities | (1,397) | (1,154) | (2,521) | (1,255) | (16,308) |
Financing activities | |||||
Proceeds from line of credit | 10,000 | ||||
Repayments of line of credit | (10,000) | ||||
Proceeds from term loan | 50,000 | 115,000 | |||
Repayments of term loan | (90,000) | (105,000) | |||
Repayment of debt | (60,000) | ||||
Prepayment penalty and fees | (300) | (1,390) | |||
Proceeds from borrowing | 50,000 | ||||
Dividend payments | (50,387) | (50,387) | |||
Debt issuance costs | (1,494) | (1,384) | (3,083) | ||
Proceeds from issuance of equity, net | 171,980 | 1,329 | 307 | ||
Repurchase of equity shares | (1) | (442) | (658) | (226) | (458) |
Exercise of stock options | 893 | 136 | 359 | 18 | |
Net cash provided by (used in) financing activities | (59,408) | (2,187) | 78,520 | (1,962) | 9,849 |
(Decrease) increase in cash | (34,198) | 2,688 | 97,855 | 3,323 | (2,899) |
Cash, cash equivalents and restricted cash, beginning of period | 116,127 | 18,272 | 18,272 | 14,949 | 17,848 |
Cash, cash equivalents and restricted cash, end of period | 81,929 | 20,960 | 116,127 | 18,272 | 14,949 |
Supplemental disclosure of cash flow information: | |||||
Cash paid for interest | 2,401 | 5,882 | 16,628 | 5,848 | 3,648 |
Cash paid for income taxes | 723 | 374 | 1,612 | 406 | 771 |
Conversion of redeemable convertible preferred stock to common stock | 173,429 | ||||
Conversion of prepaid incentive units to common stock (Note 7) | $ 65 | $ 21 | $ 78 | 89 | $ 62 |
Forgiveness of liability to controlling entity | $ 459 |
CONSOLIDATED STATEMENTS OF REDE
CONSOLIDATED STATEMENTS OF REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' (DEFICIT) EQUITY - USD ($) $ in Thousands | Total | Redeemable Convertible Preferred Stock | Common Stock | Treasury Stock | Additional Paid-in Capital | Accumulated Deficit |
Stockholders' Equity Balance at Dec. 31, 2014 | $ (1,395) | $ 4 | $ 2,249 | $ (3,648) | ||
Temporary Equity Balance at Dec. 31, 2014 | $ 223,084 | |||||
Stockholders' Equity Balance, shares at Dec. 31, 2014 | 43,580,028 | |||||
Temporary Equity Balance, Shares at Dec. 31, 2014 | 223,084 | |||||
Issuance of common stock | 59 | 59 | ||||
Issuance of preferred stock | $ 248 | |||||
Issuance of preferred and common stock, shares | 248 | 48,349 | ||||
Repurchase of common stock | (24) | (24) | ||||
Repurchase of preferred stock | $ (434) | |||||
Repurchase of common and preferred stock, shares | (434) | (84,808) | ||||
Temporary Equity Balance at Dec. 31, 2015 | $ 222,898 | |||||
Temporary Equity Balance, Shares at Dec. 31, 2015 | 222,898 | |||||
Stock-based compensation expense, net | 246 | 246 | ||||
Incentive units vested | 62 | 62 | ||||
Incentive units vested, shares | 1,192,731 | |||||
Net loss | (10,807) | (10,807) | ||||
Stockholders' Equity Balance at Dec. 31, 2015 | (11,859) | $ 4 | 2,592 | (14,455) | ||
Stockholders' Equity Balance, shares at Dec. 31, 2015 | 44,736,300 | |||||
Issuance of common stock | 66 | 66 | ||||
Issuance of preferred stock | $ 1,263 | |||||
Issuance of preferred and common stock, shares | 1,263 | 36,079 | ||||
Repurchase of common stock | (52) | (52) | ||||
Repurchase of preferred stock | $ (174) | |||||
Repurchase of common and preferred stock, shares | (174) | (62,402) | ||||
Temporary Equity Balance at Dec. 31, 2016 | $ 223,987 | |||||
Temporary Equity Balance, Shares at Dec. 31, 2016 | 223,987 | |||||
Exercise of stock options | $ 18 | 18 | ||||
Exercise of stock options, shares | 6,568 | 10,568 | ||||
Capital contribution | $ 459 | 459 | ||||
Stock-based compensation expense, net | 568 | 568 | ||||
Incentive units vested | 89 | $ 1 | 88 | |||
Incentive units vested, shares | 1,676,824 | |||||
Net loss | (3,173) | (3,173) | ||||
Stockholders' Equity Balance at Dec. 31, 2016 | (13,884) | $ 5 | 3,739 | (17,628) | ||
Stockholders' Equity Balance, shares at Dec. 31, 2016 | 46,397,369 | |||||
Issuance of common stock | 171,980 | $ 1 | 171,979 | |||
Issuance of preferred and common stock, shares | 15,800,000 | |||||
Conversion of preferred stock to common stock upon initial public offering | 173,429 | $ 2 | 173,427 | |||
Conversion of preferred stock to common stock upon initial public offering | $ (173,429) | |||||
Conversion of preferred stock to common stock upon initial public offering, shares | 223,816 | 20,500,400 | ||||
Repurchase of preferred stock | $ (171) | |||||
Repurchase of preferred and common stock | (487) | $ (487) | ||||
Repurchase of preferred and common stock, shares | 190,434 | |||||
Repurchase of common and preferred stock, shares | (171) | |||||
Preferred dividend payment | $ (50,387) | |||||
Temporary Equity Balance at Dec. 31, 2017 | $ 0 | |||||
Temporary Equity Balance, Shares at Dec. 31, 2017 | 0 | |||||
Exercise of stock options | $ 359 | 359 | ||||
Exercise of stock options, shares | 152,330 | 160,680 | ||||
Treasury stock activity | $ 487 | (487) | ||||
Treasury stock activity, shares | (112,772) | (190,434) | ||||
Stock-based compensation expense, net | $ 4,514 | 4,514 | ||||
Incentive units vested | 78 | 78 | ||||
Incentive units vested, shares | 2,202,449 | |||||
Net loss | (7,592) | (7,592) | ||||
Stockholders' Equity Balance at Dec. 31, 2017 | 328,397 | $ 8 | $ 353,609 | $ (25,220) | ||
Stockholders' Equity Balance, shares at Dec. 31, 2017 | 84,948,126 | |||||
Net loss | (11,614) | |||||
Stockholders' Equity Balance at Jun. 30, 2018 | $ 326,993 |
Organization and Description of
Organization and Description of Business | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Organization And Description Of Business [Abstract] | ||
Organization and Description of Business | 1. Organization and Description of Business SailPoint Technologies Holdings, Inc. (“we,” “our,” “the Company” or “SailPoint”) was incorporated in the state of Delaware on August 8, 2014, in preparation for the purchase of SailPoint Technologies, Inc. The purchase (the “Acquisition”) occurred on September 8, 2014. SailPoint Technologies, Inc. was formed July 14, 2004 as a Delaware corporation. The Company designs, develops, and markets identity governance software that helps organizations govern user access to critical systems and data. The Company currently markets its products and services throughout North America, Europe and the Asia Pacific regions. | 1. Organization and Description of Business SailPoint Technologies Holdings, Inc., (“we”, “our” or “the Company”) was incorporated in the state of Delaware on August 8, 2014, in preparation for the purchase of SailPoint Technologies, Inc. The purchase occurred on September 8, 2014 and our certificate of incorporation was amended and restated as of such date. SailPoint Technologies, Inc. was formed July 14, 2004 as a Delaware corporation. The Company designs, develops, and markets identity governance software that helps organizations govern user access to critical systems and data. The Company currently markets its products and services throughout North America, Europe and the Asia Pacific regions. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Accounting Policies [Abstract] | ||
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated interim financial statements have been prepared in accordance with Article 10 of Regulation S-X, “Interim Financial Statements” and the rules and regulations for Form 10-Q of the Securities and Exchange Commission (the “SEC”). Pursuant to those rules and regulations, the Company has condensed or omitted certain information and footnote disclosure it normally includes in its annual consolidated financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). The unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the balance sheet, statements of operations and the statements of cash flows for the interim periods but are not necessarily indicative of the results of operations to be anticipated for the full year ending December 31, 2018 or any future period. Our unaudited consolidated financial statements have been prepared in a manner consistent with the accounting principles described in our Company’s Annual Report on Form 10-K for the year ended December 31, 2017, which was filed with the SEC on March 19, 2018 (the “Annual Report”). These financial statements and accompanying notes should be read in conjunction with the consolidated financial statements and notes thereto in the Company’s Annual Report. All intercompany accounts and transactions have been eliminated in consolidation. Cash, Cash Equivalents and Restricted Cash We consider all highly liquid investments with an original maturity of three months or less from date of purchase to be cash equivalents. The Company is required to maintain a small amount of restricted cash to guarantee rent payments in a foreign subsidiary. Segment Information and Concentration of Credit and Other Risks Segment Information The Company operates as one operating segment. The Company’s chief operating decision maker is its chief executive officer, who reviews financial information presented on a consolidated basis for purposes of making operating decisions, assessing financial performance and allocating resources. ASC 280, “Segment Reporting,” establishes standards for reporting information about operating segments. Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The Company manages its business on the basis of one reportable segment, and derives revenues from licensing of software, sale of professional services, maintenance and technical support. The following tables sets forth the Company’s consolidated total revenue by geography: Six Months Ended June 30, 2017 2018 (In thousands) United States $ 53,020 $ 67,195 EMEA (1) 13,853 24,952 Rest of the World (1) 7,853 12,127 Total revenue $ 74,726 $ 104,274 (1) No single country represented more than 10% of our consolidated revenue. Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash and cash equivalents and accounts receivable. The Company maintains its cash in bank deposit accounts that, at times, may exceed federally insured limits. There is no concentration of credit risk for customers as no individual entity represented more than 10% of the balance in accounts receivable as of December 31, 2017 and June 30, 2018 or 10% of revenue for six months ended June 30, 2017 and 2018. The Company does not experience concentration of credit risk in foreign countries as no foreign country represents more than 10% of the Company’s condensed consolidated revenues or net assets. Significant Accounting Policies There have been no significant changes to the Company’s significant accounting policies, which are discussed in Note 2 of “Notes to Consolidated Financial Statements” in the Annual Report. Recently Issued Accounting Standards Not Yet Adopted Under the Jumpstart Our Business Startups Act (the “JOBS Act”), emerging growth companies can delay adopting new or revised accounting standards until such time as those standards apply to private companies. We have elected to take advantage of the longer phase-in periods for the adoption of new or revised financial accounting standards under the JOBS Act until we are no longer an emerging growth company. In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No . , Revenue from Contracts with Customers (Topic 606) With the evaluation of ASC 606 adoption, the Company plans to adopt the standard under the modified retrospective method. The Company’s determination was made upon a number of factors such as the significance of the impact of the new standard on the Company’s financial results, system readiness, including that of software procured from third-party providers, and the Company’s ability to accumulate and analyze the information necessary to assess the impact on prior period financial statements, as necessary and earlier than expected loss of emerging growth company status. The Company will continue to evaluate and analyze all other aspects of ASC 606 that may impact it. The Company will adopt the new revenue standard for the annual reporting period ending December 31, 2018, using the modified retrospective transition method. Under this method, the Company elects to apply the cumulative effect method to contracts that are not complete as of the adoption date. The Company is continuing to finalize the impact of adopting the new revenue standard on its condensed consolidated financial statements and related disclosures, changes to its accounting policies and practices and controls to support the new revenue recognition standard. The Company has developed a project plan for this transition, which includes necessary changes to accounting policies, processes, internal controls, and system requirements and is progressing as planned. The Company expects to implement the plan in time to report in accordance with ASC 606 for the annual reporting period for the year ended December 31, 2018. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory In July 2017, the FASB issued ASU No. 2017-11, Earnings Per Share (Topic 260). Recently Adopted Accounting Standards In May 2017, the FASB issued ASU No. 2017-09, Compensation—Stock Compensation (Topic 718). | 2. Summary of Significant Accounting Policies Basis of Presentation The accompanying consolidated financial statements, which include the accounts of the Company and its wholly owned subsidiaries, have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The consolidated financial statements include the accounts of SailPoint Technologies Holdings, Inc. and its subsidiaries, SailPoint Technologies Intermediate Holdings, LLC, SailPoint Technologies, Inc., SailPoint Technologies UK LTD, SailPoint Holdings, Inc., SailPoint International, Inc., SailPoint Technologies India Private LTD, SailPoint Technologies Netherlands B.V., SailPoint Technologies Israel Ltd, SailPoint Technologies SARL, SailPoint Technologies GmbH, and SailPoint Technologies Pte. Ltd. and Whitebox Security Ltd. All intercompany accounts and transactions have been eliminated in consolidation. The Company operates as one operating segment. The Company’s chief operating decision maker is its chief executive officer, who reviews financial information presented on a consolidated basis for purposes of making operating decisions, assessing financial performance and allocating resources. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Management periodically evaluates such estimates and assumptions for continued reasonableness. In particular, we make estimates with respect to the fair value allocation of multiple elements in revenue recognition, the uncollectible accounts receivable, valuation of long-lived assets, stock-based compensation expense and income taxes. Appropriate adjustments, if any, to the estimates used are made prospectively based upon such periodic evaluation. Actual results could differ from those estimates. Cash, Cash Equivalents and Restricted Cash We consider all highly liquid investments with an original maturity of three months or less from date of purchase to be cash equivalents. The Company is required to maintain a small amount of restricted cash to guarantee rent payments in a foreign subsidiary. As of December 31, 2016 2017 (In thousands) Cash and cash equivalents per balance sheet $ 18,214 $ 116,049 Restricted cash per balance sheet 58 78 Cash, cash equivalents and restricted cash per cash flow $ 18,272 $ 116,127 Fair Value of Financial Instruments Assets and liabilities recorded at fair value in the financial statements are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Hierarchical levels which are directly related to the amount of subjectivity associated with the inputs to the valuation of these assets or liabilities are as follows: • Level 1: Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. • Level 2: Observable inputs, other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3: Unobservable inputs reflecting our own assumptions incorporated in valuation techniques used to determine fair value. These assumptions are required to be consistent with market participant assumptions that are reasonably available. The Company’s carrying amounts of financial instruments, including cash and cash equivalents, accounts receivable, accounts payable, accrued expenses and related party payable approximate their fair values due to their short maturities. The carrying value of the Company’s line of credit and long-term debt approximate fair value and were valued using a Level 1 input, specifically the borrowing rates available to the Company at December 31, 2016 and 2017. Concentration of Credit and Other Risks Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash and cash equivalents and accounts receivable. The Company maintains its cash in bank deposit accounts that, at times, may exceed federally insured limits. There is no concentration of credit risk for customers as no individual entity represented more than 10% of the balance in accounts receivable as of December 31, 2016 and 2017 or 10% of revenue in the years ended December 31, 2015, 2016 and 2017. The Company does not experience concentration of credit risk in foreign countries as no foreign country represents more than 10% of the Company’s consolidated revenues or net assets. The following tables sets forth the Company’s consolidated total revenue by geography: Year Ended December 31, 2015 2016 2017 (In thousands) United States $ 63,440 $ 92,116 $ 134,676 EMEA (1) 20,770 25,668 33,097 Rest of the World (1) 11,146 14,628 18,283 Total revenue $ 95,356 $ 132,412 $ 186,056 (1) No single country represented more than 10% of consolidated revenue Accounts Receivable and Allowance for Doubtful Accounts The Company continuously assesses the collectability of outstanding customer invoices and in doing so, the Company assesses the need to maintain an allowance for estimated losses resulting from the non-collection of customer receivables. In estimating this allowance, the Company considers factors such as: historical collection experience, a customer’s current creditworthiness, customer concentrations, age of outstanding balances, both individually and in the aggregate, and existing economic conditions. Actual customer collections could differ from the Company’s estimates. The Company determined that an allowance for doubtful accounts was not required for the periods presented. Property and Equipment, Net Property and equipment, net, is stated at cost less accumulated depreciation. Depreciation is recorded using the straight-line method over the estimated useful lives of the respective assets, generally three to five years. Leasehold improvements are depreciated over the shorter of the useful lives of the assets or the related lease term. Repairs and maintenance costs are expensed as incurred. Property and equipment are reviewed for impairment whenever events or circumstances indicate their carrying value may not be recoverable. When such events or circumstances arise, an estimate of future undiscounted cash flows produced by the asset, or the appropriate grouping of assets, is compared to the asset’s carrying value to determine if an impairment exists. If the asset is determined to be impaired, the impairment loss is measured based on the excess of its carrying value over its fair value. Assets to be disposed of are reported at the lower of carrying value or net realizable value. There was no impairment of property and equipment during the years ended December 31, 2015, 2016 and 2017. Goodwill Goodwill represents the excess of acquisition cost over the fair value of net tangible and identified net assets acquired. Goodwill and intangible assets that have indefinite lives are not be amortized, but rather tested for impairment annually, or more often if and when events or circumstances indicate that the carrying value may not be recoverable. Goodwill is tested using a two-step process. The first step of the goodwill impairment test, used to identify potential impairment, compares the fair value of a reporting unit with its carrying amount, including goodwill. If the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is considered not impaired, thus the second step of the impairment test is unnecessary. If the carrying amount of a reporting unit exceeds its fair value, the second step of the goodwill impairment test shall be performed to measure the amount of impairment loss, if any. The second step of the goodwill impairment test, used to measure the amount of impairment loss, compares the implied fair value of reporting unit goodwill with the carrying amount of that goodwill. If the carrying amount of reporting unit goodwill exceeds the implied fair value of that goodwill, an impairment loss shall be recognized in an amount equal to the excess. The loss recognized cannot exceed the carrying amount of goodwill. After a goodwill impairment loss is recognized, the adjusted carrying amount of goodwill shall be its new accounting basis. If the implied fair value of goodwill is less than the carrying value of goodwill, an impairment loss is recognized equal to the difference. There were no impairments of goodwill during the years ended December 31, 2015, 2016 and 2017. The Company elected to change the annual assessment date for goodwill and indefinite lived intangible assets from December 31st to October 31st because the change in date creates synergy and enhance the quality of our indefinite lived intangible assets impairment analysis. The Company conducted qualitative and quantitative assessment, for the 2017 annual impairment test, using the income, cost and market approach, using information as of October 31, 2017. The intent is to perform qualitative impairment test at least annually unless certain indicators or events suggest otherwise. Intangible Assets Intangible assets are amortized on a straight-line basis over their estimated useful lives. The Company periodically reviews the estimated remaining useful life of our intangible assets and whether events or changes in circumstances warrant a revision to the remaining period of amortization. Periodically, the Company evaluates the recoverability of its long-lived assets including intangible assets, for possible impairment whenever events or circumstances indicate that the carrying amount of such assets may not be recoverable. Recoverability of these assets is measured by comparison of the carrying amount of each asset, or related asset group, to the future undiscounted cash flows the asset is expected to generate. If the undiscounted cash flows used in the test for recoverability are less than the carrying amount of these assets, then the carrying amount of such assets is reduced to fair value. The Company did not record any impairments of long-lived assets including intangible assets as of December 31, 2016 and 2017. Software Development Costs Software development costs for products intended to be sold, leased or otherwise marketed are expensed as incurred until technological feasibility has been established, at which time such costs are capitalized until the product is available for general release to customers. Technological feasibility is established when a product design and working model have been completed and the completeness of the working model and its consistency with the product design have been confirmed by testing. To date, the establishment of technological feasibility of the Company’s products and general release of such software has substantially coincided. As a result, software development costs qualifying for capitalization have been insignificant. Therefore, we have not capitalized any software development costs through December 31, 2017. Such costs have been recorded as research and development expenses, as incurred, in the consolidated statements of operations. Comprehensive income (loss) The Company has not entered into transactions that require presentation as other comprehensive income (loss). Total comprehensive loss is equal to net loss for all periods presented. Liquidity The Company has sustained losses since its inception. The Company had cash, cash equivalents and restricted cash of approximately $116.1 million and an accumulated deficit of approximately $25.2 million at December 31, 2017. The Company has funded these losses through cash flows from operations, debt, issuance of common stock and other equity financings. The Company believes that working capital on hand, net operating cash flows, and increasing revenues are sufficient to sustain operations for at least the twelve months from the report issuance date. Revenue Recognition Revenue consists of fees for perpetual licenses for the Company’s software products, post-contract customer support (referred to as maintenance), professional services, software as a service (“SaaS”) and other revenue. The Company recognizes revenue in accordance with the provisions of the Financial Accounting Standards Board (“FASB”) authoritative guidance on software revenue recognition and multiple element arrangements. Revenue is recognized when: • Persuasive evidence of an arrangement exists, • Delivery has occurred, or services have been rendered, • The Company’s price to the buyer is fixed or determinable, and • Collectability is probable. The Company frequently enters into sales arrangements that contain multiple elements or deliverables. For arrangements that include both software and non-software elements, the Company allocates revenue to the software deliverables as a group and separable non-software deliverables as a group based on their relative selling prices. In such circumstances, the accounting principles establish a hierarchy to determine the selling price used for allocating revenue to the deliverables as follows: (i) Vendor Specific Objective Evidence (“VSOE”), (ii) third-party evidence of selling price (“TPE”) and (iii) the best estimate of the selling price (“ESP”). Cloud-based services, and professional services related to cloud-based services, are considered to be non-software elements in the Company’s arrangements. VSOE of fair value for each element is based on the Company’s standard rates charged for the product or service when such product or service is sold separately or based upon the price established by the Company’s pricing committee when that product or service is not yet being sold separately. The Company establishes VSOE for maintenance and professional services using a “bell-shaped curve” approach. When applying the “bell-shaped curve” approach the Company analyzes all maintenance renewal transactions over the past twelve months for that category of license and plots those data points on a bell-shaped curve to ensure that a high percentage of the data points are within an acceptable margin of the established VSOE rate. This analysis is performed quarterly on a rolling 12-month basis. When the Company is unable to establish a selling price for non-software arrangements using VSOE or TPE, the Company uses ESP in the allocation of arrangement consideration. The objective of ESP is to determine the price at which the Company would transact a sale if the product or service were sold on a stand-alone basis. The determination of ESP is made through consultation with and formal approval by the Company’s management, taking into consideration the Company’s go-to-market strategy, pricing factors, and historical transactions. The Company recognizes revenue for software arrangements that include undelivered elements using the residual method. Under the residual method, the fair value of the undelivered elements is deferred and recognized as such elements are delivered to the customer and the remaining portion of the agreement fee is recognized as license revenue upon delivery. The determination of fair value of each undelivered element in software arrangements is based on VSOE. If VSOE has not been established for certain undelivered elements in an agreement, revenue is deferred until those elements have been delivered or their VSOE has been determined. Revenue from maintenance and SaaS services is recognized ratably over the relevant contract period. Service revenue includes consulting and training. The Company has determined that consulting and training services are not essential to the functionality of the Company’s software and SaaS offerings, and consulting and training services are typically listed separately in arrangements, are optional, and sold separately. As a result, the Company has established VSOE or ESP for consulting and training services and they therefore qualify for separate accounting. In order to account for deliverables in a multiple-deliverable arrangement as separate unit of accounting, delivered elements must have standalone value. In determining whether professional services have standalone value, we consider the following factors for each professional services agreement: availability of the services from other vendors, the nature of the professional services, the timing of when the professional services contract was signed in comparison to the software or SaaS arrangement and the contractual dependence of the arrangement on the customer’s satisfaction with the professional services. Professional services sold as part of arrangements generally qualify for separate accounting. Consulting and training service revenue that qualifies for separate accounting is recognized as the services are performed using the proportional performance method for fixed fee consulting contracts, or when the right to the service expires. The majority of the Company’s consulting contracts are billed on a time and materials basis. Deferred Revenue Deferred revenue represents amounts from the sale of products that have been billed for, but the transaction has not met our revenue recognition criteria. Amounts are classified between current and long-term liabilities, based upon the expected period in which the revenue will be recognized. Customer advances and billed amounts due from customers in excess of revenue recognized are recorded as deferred revenue. Cost of Revenue Cost of revenue for license consists of amortization expense for developed technology acquired in business combinations and third-party royalties. Cost of subscription revenue consists primarily of employee costs of our customer support organization (including salaries, benefits, bonuses and stock-based compensation), contractor costs to supplement our staff levels, third-party cloud-hosting costs, allocated overhead and amortization expense for developed technology acquired in business combinations. Cost of revenue for services and other revenue consists primarily of personnel-related costs of our services and training departments, including salaries, commissions, benefits, bonuses and stock-based compensation, contractor costs to supplement our staff levels and allocated overhead. Research and Development Expenses Research and development costs are expensed as incurred. Research and development expenses consist primarily of personnel-related costs for the design and development of our platform and technologies, contractor costs to supplement our staff levels, third-party web services, consulting services, and allocated overhead. Advertising Expenses The Company expenses advertising costs as incurred. Advertising expenses were approximately $2.6 million, $4.2 million and $6.0 million for the years ended December 31, 2015, 2016 and 2017, respectively, and are included in sales and marketing expense. Stock-Based Compensation The Company measures stock-based compensation cost for equity instruments granted to employees based upon the estimated fair value of the award at the date of grant and the estimated number of shares ultimately expected to vest. The Company estimates the fair value of stock options granted using the Black-Scholes option-pricing model, which requires us to estimate expected term, fair value of common stock, expected volatility, risk-free interest rate, and dividend yield. We use the simplified method in developing an estimate of the expected term of the stock options, which is calculated as the average of the time to vesting and the contractual life of the options. The expected volatility is based upon the average historical volatility of comparable companies over a period approximately equal to the expected term of the awards. The risk-free interest rate is based on the average interest rate for U.S. Treasury instruments whose term is consistent with the expected term of the options. Compensation cost resulting from this valuation is recognized in the consolidated statement of operations on a straight-line basis over the period during which an employee provides the requisite service in exchange for the award. The Company analyzes the facts and circumstances of each equity instrument to determine if modification accounting is required. This analysis includes a review of factors that influence the probability of vesting. If circumstances arise that have changed the probability that an equity instrument will vest, or other factors have triggered a modification, the revised fair value is calculated, and additional stock-based compensation is recognized over the remaining service period of the modified option. The Company is required to estimate potential forfeitures of stock grants and adjust recorded compensation cost accordingly. The estimate of forfeitures is based on historical experience and is adjusted over the requisite service period to the extent that actual forfeitures differ, or are expected to differ, from the prior estimates. Changes in estimated forfeitures will be recognized in the period of change and will impact the amount of stock-based compensation expense to be recognized in future periods. Foreign Currency Translation The functional currency of our non-U.S. subsidiaries is the U.S. Dollar, therefore all gains and losses on currency transactions are expensed as incurred. Income Taxes The Company uses the liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities. Valuation allowances are provided if it is more likely than not that some or all of the deferred tax assets will not be realized. The Company accounts for uncertainty of income taxes based on a “more-likely-than-not” threshold for the recognition and de-recognition of tax positions, which includes the accounting for interest and penalties relating to tax positions. Net Loss Per Share Basic net loss per share attributable to common stockholders is calculated by dividing the net loss attributable to common stockholders for the period, defined as net loss minus the accretion of dividends on redeemable convertible preferred stock, by the weighted-average number of shares of common stock outstanding during the period, without consideration of potentially dilutive securities. Diluted earnings per share includes the dilutive effect of common stock equivalents and is calculated using the weighted-average number of common stock and the common stock equivalents outstanding during the reporting period. Diluted earnings per share for the years ended December 31, 2015, 2016 and 2017 excluded common stock equivalents because their inclusion would be anti-dilutive or would decrease the reported loss per share. Our incentive stock units have the right to receive non-forfeitable dividends on an equal basis with common stock and therefore are considered participating securities that must be included in the calculation of net loss per share using the two-class method. Under the two-class method, basic and diluted net loss per share is determined by calculating net loss per share for common stock and participating securities based on the cash dividends paid and participation rights in undistributed earnings. Recently Issued Accounting Standards Not Yet Adopted Under the Jumpstart Our Business Startups Act (the “JOBS Act”), emerging growth companies can delay adopting new or revised accounting standards until such time as those standards apply to private companies. We have elected to take advantage of the longer phase-in periods for the adoption of new or revised financial accounting standards under the JOBS Act until we are no longer an emerging growth company. In May 2014, the FASB issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606) The Company currently plans to adopt using the full retrospective approach; however, a final decision regarding the adoption method has not been made at this time. The Company’s final determination will depend on a number of factors such as the significance of the impact of the new standard on the Company’s financial results, system readiness, including that of software procured from third-party providers, and the Company’s ability to accumulate and analyze the information necessary to assess the impact on prior period financial statements, as necessary. The Company is in the initial stages of its evaluation of the impact of the new standard on its accounting policies, and processes. The Company has assigned internal resources in addition to the engagement of third party service providers to assist in the evaluation. While the Company continues to assess all potential impacts under the new standard there may be the potential for significant impacts to the timing of recognition of professional services revenue, and contract acquisition costs, both with respect to the amounts that will be capitalized as well as the period of amortization. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory In May 2017, the FASB issued ASU No. 2017-09, Compensation—Stock Compensation (Topic 718). In July 2017, the FASB issued ASU No. 2017-011, Earnings Per Share (Topic 260). Recently Adopted Accounting Pronouncements In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements—Going Concern (Subtopic 205-40). This ASU defines management’s responsibility to evaluate whether there is substantial doubt about an organization’s ability to continue as a going concern and to provide related footnote disclosures. Prior to this ASU, GAAP lacked guidance about management’s responsibility to evaluate whether there is substantial doubt about the organization’s ability to continue as a going concern or to provide related footnote disclosures and all guidance was included in generally accepted auditing standards (“GAAS”). This guidance is effective for annual periods ending after December 15, 2016. Early adoption is permitted. This standard has been adopted beginning with the reporting period ended December 31, 2016. The adoption of ASU 2014-15 did not have a material effect on the Company’s consolidated financial statements and related disclosures, although it could have an impact on disclosures in future periods. In February 2015, the FASB issued ASU No. 2015-02, Consolidation (Topic 810): In April 2015, the FASB issued ASU No. 2015-03, Interest—Imputation of Interest (Subtopic 835-30)— Simplifying the Presentation of Debt Issuance Costs In April 2015, the FASB issued ASU No. 2015-05, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement In September 2015, the FASB issued ASU No. 2015-16 , Business Combinations (Topic 805 In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes In March 2016, the FASB issued ASU No. 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments—a consensus of the Emerging Issues Task Force Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the FASB Emerging Issues Task Force) In January 2017, the FASB issued ASU No. 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Jun. 30, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 3. Goodwill and Intangible Assets Goodwill Goodwill represents the excess of the purchase price over the identifiable tangible and intangible assets acquired plus liabilities assumed arising from business combinations. The carrying amount of goodwill was $219.4 million for the periods ended June 30, 2017 and 2018 as there has been no acquisition activity in these periods. Goodwill and other intangible balances are tested for impairment on an annual basis during the fourth quarter, or sooner if an indicator of impairment occurs. No triggering events have occurred during the six months ended June 30, 2017 and 2018 that would indicate a potential impairment of goodwill. Intangible Assets Total cost and accumulated amortization of intangible assets is comprised of the following: Weighted Average Useful Life As of December 31, 2017 June 30, 2018 (In years) (In thousands) Intangible assets, net Customer lists 15 $ 42,500 $ 42,500 Developed technology 9.6 42,000 42,000 Trade names and trademarks 17 24,500 24,500 Order backlog 1.5 1,100 1,100 Non-competition agreements and related items 4.4 810 810 Total intangible assets 110,910 110,910 Less: Accumulated amortization (29,725 ) (34,137 ) Total intangible assets, net $ 81,185 $ 76,773 Amortization expense of intangible assets was $4.4 million for the six months ended June 30, 2017, and was $4.4 million for the six months ended June 30, 2018. Amortization expense is included in the condensed consolidated statements of operations for the six months ended June 30, 2017 and 2018 as follows: Six Months Ended June 30, 2017 2018 (In thousands) Cost of revenue—license $ 2,016 $ 2,016 Cost of revenue—subscription 192 192 Research and development 81 68 Sales and marketing 2,139 2,136 Total amortization of acquired intangibles $ 4,428 $ 4,412 Periodically, the Company evaluates intangible assets for possible impairment. There were no impairments for intangible assets during the six months ended June 30, 2017 and 2018. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | ||
Commitments and Contingencies | 4. Commitments and Contingencies Operating Leases The Company leases its facilities under non-cancelable operating lease agreements. The majority of these agreements include a renewal option, and/or require the Company to pay taxes, insurance, and maintenance costs. Certain of these facility leases contain predetermined fixed escalations of the minimum rentals, and the Company recognizes expense for these leases on a straight-line basis. The difference between the recognized rental expense and amounts payable under the lease is recorded as deferred rent, which is included in accrued expenses and other liabilities on the accompanying condensed consolidated balance sheets. Rent expense under all operating leases was approximately $1.2 million for the six months ended June 30, 2017, and $1.9 million for the six months ended June 30, 2018. Indemnification Arrangements In the ordinary course of business, the Company enters into contractual arrangements under which it agrees to provide indemnification of varying scope and terms to customers, business partners and other parties with respect to certain matters, including, losses arising out of the breach of such agreements, intellectual property infringement claims made by third parties, and other liabilities with respect to our products and services and business. In these circumstances, payment may be conditional on the other party making a claim pursuant to the procedures specified in a particular contract. The Company includes service level commitments to its cloud customers warranting certain levels of uptime reliability and performance and permitting those customers to receive credits in the event that it fails to meet those levels. To date, the Company has not incurred any material costs as a result of these commitments and we expect the time between any potential claims and issuance of the credits to be short. As a result, the Company has not accrued any liabilities related to these commitments in our condensed consolidated financial statements. Litigation Claims and Assessments The Company is subject to claims and suits that may arise from time to time in the ordinary course of business. In addition, some legal actions, claims and governmental inquiries may be instituted or asserted in the future against us and our subsidiaries. Although the outcome of our legal proceedings cannot be predicted with certainty and no assurances can be provided, based upon current information, we do not believe the liabilities, if any, which may ultimately result from the outcome of such matters, individually or in the aggregate, will have a material adverse impact on our financial statements. | 7. Commitments and Contingencies Operating Leases The Company leases its facilities under non-cancelable operating lease agreements. The majority of these agreements include a renewal option, and/or require the Company to pay taxes, insurance, and maintenance costs, which are not included in the table below. Certain of these facility leases contain predetermined fixed escalations of the minimum rentals, and the Company recognizes expense for these leases on a straight-line basis. The difference between the recognized rental expense and amounts payable under the lease is recorded as deferred rent on the consolidated balance sheets. Future minimum annual lease payments under these non-cancelable operating leases, inclusive of sublease proceeds, as of December 31, 2017 are as follows: (In thousands) Year ending December 31, 2018 $ 2,785 2019 3,004 2020 4,445 2021 4,997 2022 4,921 Thereafter 32,127 Total minimum lease payments $ 52,279 Rent expense under all operating leases was approximately $1.5 million, $1.8 million and $2.9 million, for the years ended December 31, 2015, 2016 and 2017, respectively. The Company had a deferred rent balance of approximately $0.2 million and $1.4 million as of December 31, 2016 and 2017, which is included in accrued expenses and other liabilities on the accompanying balance sheets. Indemnification Arrangements In the ordinary course of business, the Company enters into contractual arrangements under which it agrees to provide indemnification of varying scope and terms to customers, business partners and other parties with respect to certain matters, including, losses arising out of the breach of such agreements, intellectual property infringement claims made by third parties, and other liabilities with respect to our products and services and business. In these circumstances, payment may be conditional on the other party making a claim pursuant to the procedures specified in a particular contract. The Company includes service level commitments to our cloud customers warranting certain levels of uptime reliability and performance and permitting those customers to receive credits in the event that we fail to meet those levels. To date, the Company has not incurred any material costs as a result of these commitments and we expect the time between any potential claims and issuance of the credits to be short. As a result, we have not accrued any liabilities related to these commitments in our consolidated financial statements. Litigation Claims and Assessments The Company is subject to claims and suits that may arise from time to time in the ordinary course of business. In addition, some legal actions, claims and governmental inquiries may be instituted or asserted in the future against us and our subsidiaries. Although the outcome of our legal proceedings cannot be predicted with certainty and no assurances can be provided, based upon current information, we do not believe the liabilities, if any, which may ultimately result from the outcome of such matters, individually or in the aggregate, will have a material adverse impact on our financial statements. |
Line of Credit and Long-Term De
Line of Credit and Long-Term Debt | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Line Of Credit Facility [Abstract] | ||
Line of Credit and Long-Term Debt | 5. Line of Credit and Long-Term Debt The outstanding balance of the term loan at December 31, 2017 and June 30, 2018 was $70.0 million and $10.0 million, respectively. There was no outstanding balance of the revolving line of credit at December 31, 2017 and June 30, 2018. The Company was in compliance with all applicable covenants as of December 31, 2017 and June 30, 2018. In 2017, the Company amended its existing credit facility in connection with the consummation of its initial public offering. Such amendment required that the Company use a portion of its net proceeds to repay $90.0 million of borrowings outstanding under its term loan facility to reduce the aggregate outstanding principal amount thereof to $70.0 million. This repayment was subject to a prepayment premium of 1.50% approximately $1.4 million, which is recorded as interest expense. As a result of this paydown, the Company incurred a $1.7 million loss on the modification and partial extinguishment of debt which was also recorded as interest expense in the consolidated statements of operations for the years ended December 31, 2017. In October 2017, in connection with its new corporate headquarters lease, the Company executed a standby letter of credit in the amount of $6.0 million. The term loan and the credit facility both bear interest based on the adjusted LIBOR rate, as defined in the credit agreement, with a 1% floor plus an applicable margin of 4.5%. The Company has incurred total debt issuance costs of $4.5 million in connection with these loan and security agreements of which $1.4 million relates to the modified agreement as of December 31, 2017. These costs are being amortized to interest expense over the life of the debt on a straight-line basis, which approximates the interest method. On June 29, 2018, the Company voluntarily prepaid $60.0 million of the borrowings outstanding under its remaining term loan to reduce the aggregate outstanding principal balance to $10.0 million. This repayment was subject to a prepayment premium of 0.50%, approximately $0.3 million, which is recorded as interest expense. In connection with the debt paydown, the Company incurred a $1.5 million loss on the modification and partial extinguishment of debt which was also recorded as interest expense in the consolidated statements of operations for the six months ended June 30, 2018. Amortization of debt issuance costs for the existing loan and security agreement as of June 30, 2017 and June 30, 2018, was approximately $0.3 million and $0.2 million, respectively, and was recorded in interest expense in the accompanying condensed consolidated statements of operations. As of June 30, 2018, the balance of long-term debt is $9.6 million, which is presented net of $0.4 million of unamortized debt issuance costs. The maturity date on the term loan is August 16, 2021, with principal payment due in full on the maturity date, and interest payments due quarterly. The rate prevalent at June 30, 2018 was 6.8% consisting of the 2.3% LIBOR rate, plus an applicable margin of 4.5% for the term loan and the revolving credit facility. | 8. Line of Credit and Long-Term Debt In 2014, the Company entered into a loan and security agreement with a financial institution in the amount of $110 million, consisting of a term loan facility of $100 million and a revolving loan facility of up to $10 million. The loan and security agreement established first security for the financial institution over all assets of the Company. Borrowings under this agreement bore interest based on LIBOR and was 3.7% per annum on the term loan and 3.5% on the revolving loan at December 31, 2015. The maturity date on the term loan was September 2019 and on the revolving loan was January 2016. The outstanding loans were repaid in full in August 2016, as discussed below. The Company incurred debt issuance costs of $0.7 million in connection with this loan and security agreement. These costs were amortized to interest expense over the term, through the debt extinguishment in 2016. In August 2016, the Company repaid in full the 2014 loan and security agreement. Concurrently, the Company entered into a senior secured credit facility with a different financial institution in the amount of $120.0 million, consisting of a term loan facility of $115.0 million and a revolving loan facility of up to $5.0 million. The credit facility established first security for the financial institution over all assets of the Company and is subject to certain financial covenants. Borrowings under this agreement bear interest based on the adjusted LIBOR rate, as defined in the agreement with a 1% floor, plus an applicable margin of 8.0%. The maturity date on the term loan is August 16, 2021, with principal payment due in full on maturity date, and interest payments due quarterly. The agreement also requires prepayments in the case of certain events including: asset sales in excess of $1 million, proceeds from an initial public offering (“IPO”), proceeds in excess of $1 million from an insurance settlement, or proceeds from a new debt agreement. Beginning with the year ended December 31, 2017, an additional prepayment may be due related to excess cash flow for the respective measurement periods. On June 28, 2017, the Company amended and restated its loan agreement to enter into a series of transactions in which the Company incurred $50.0 million of incremental debt which expanded the current facility to $167.5 million consisting of a $160.0 million term loan and a $7.5 million revolving credit facility, undrawn at close (the “New Financing”). Proceeds from the New Financing were used to partially fund $50.4 million in accumulated preferred stock dividends for shares of preferred stock through December 15, 2016. Borrowings under the New Financing agreement will bear interest based on the adjusted LIBOR rate, as defined in the agreement with a 1% floor, plus an applicable margin of 7.0%. The rate prevalent at December 31, 2017 was 8%, consisting of the 1% floor plus 7% margin and December 31, 2016 was 9.0%, consisting of the 1% floor plus 8% margin. The maturity date on the term loan remains August 16, 2021, with principal payment due in full at maturity and interest payments due quarterly. The agreement also requires prepayments in the case of certain events including: asset sales in excess of $1.0 million, proceeds from an IPO, proceeds in excess of $1.0 million from an insurance settlement, or proceeds from a new debt agreement. Beginning with the year ended December 31, 2017, an additional prepayment may be due related to excess cash flow for the respective measurement periods. On October 5, 2017, in connection with our new corporate headquarters lease, we executed a standby letter of credit in the amount of $6.0 million. As a result, we had $1.5 million available under our revolving credit facility as of December 31, 2017. The outstanding balance of the term loan at December 31, 2016 and December 31, 2017 was $110 million and $70 million, respectively. There was no outstanding balance of the revolving line of credit at December 31, 2016 and 2017. The Company was in compliance with all applicable covenants as of December 31, 2016 and 2017. In 2017, the Company amended its existing credit facility in connection with the consummation of its initial public offering. Such amendment required that the Company use a portion of its net proceeds to repay $90.0 million of borrowings outstanding under our term loan facility to reduce the aggregate outstanding principal amount thereof to $70.0 million. This repayment was subject to a prepayment premium of 1.50% approximately $1.4 million, which is recorded as interest expense. As a result of this paydown, the Company incurred a $1.7 million loss on the modification and partial extinguishment of debt which was also recorded as interest expense in the accompanying consolidated statements of operations for the years ending December 31, 2017. The Company has incurred total debt issuance costs of $4.5 million in connection with these loan and security agreements of which $1.4 million relates to the modified agreement. These costs are being amortized to interest expense over the life of the debt on a straight-line basis, which approximates the interest method. Amortization of debt issuance costs for existing loan and security agreement for the years ended December 31, 2015, 2016 and 2017 was approximately $0.1 million, $0.7 million and $0.7 million, respectively, was recorded in interest expense in the accompanying consolidated statements of operations. As of December 31, 2017, the consolidated balance sheet includes unamortized debt issuance costs of approximately $1.8 million included in long-term debt. Aggregate maturities of the Company’s debt at December 31, 2017 are as follows: (In thousands) 2018 $ — 2019 116 2020 — 2021 70,000 2022 — Total debt $ 70,116 Less: deferred financing costs (1,787 ) Long-term debt, net $ 68,329 Less: current portion — Long term debt $ 68,329 |
Related Party Transactions
Related Party Transactions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Related Party Transactions [Abstract] | ||
Related Party Transactions | 6. Related Party Transactions During the six months ended June 30, 2017, the Company engaged in ordinary sales transactions of $93,000 and purchase transactions of $559,000 with entities affiliated with its controlling entity. During the six months ended June 30, 2018, the Company engaged in ordinary sales transactions of $194,000 and purchase transactions of $310,000 with entities affiliated with its controlling entity. At December 31, 2017 and June 30, 2018, the accompanying condensed consolidated balance sheets included accounts receivable balance of $516,000 and $0, respectively, and immaterial accounts payable balances. In September 2014, the Company entered into an advisory services agreement (the “Consulting Agreement”) with its controlling entity. The Consulting Agreement requires quarterly payments from September 8, 2014 through December 31, 2018 for business consulting services provided by the controlling entity to the Company. Consulting fees from the Consulting Agreement totaled $625,000 in the six months ended June 30, 2017 and were included in general and administrative expenses in the accompanying condensed consolidated statements of operations. Upon completion of the Company’s initial public offering, the Consulting Agreement ceased, and the Company was no longer required to make future payments. | 9. Related Party Transactions At December 31, 2015, in connection with the final settlement of the SailPoint Technologies, Inc. acquisition, the Company incurred a payable to its controlling entity totaling $459,401. As of December 31, 2016, the payable to its controlling entity of $459,401 had been converted to additional paid in capital. In 2016, the Company entered into agreements totaling approximately $626,000 with certain non-executive employees related to their personal tax liabilities. These agreements will be forgiven over a three-year period, beginning in 2016, if the employees remain employed by the Company through the applicable dates. The remaining balances of these agreements as of December 31, 2016 and 2017 are included in the accompanying consolidated balance sheet as prepayments and other current assets and other non-current assets for the respective periods of $0 and $0 and $319,000 and $101,000 respectively. As of December 31, 2017, the balances for these agreements were forgiven during the fourth quarter of 2017. Throughout 2015, 2016 and 2017 the Company engaged in ordinary sales transactions of $59,000 $37,000, $858,000 and purchase transactions of $39,000, $313,000, and $942,000 respectively, with entities affiliated with its controlling entity. At December 31, 2016 and 2017, the accompanying consolidated balance sheets included accounts payable balances of $5,000 and $3,400, as well as accounts receivable balances $0 and $516,000, respectively, associated with these transactions. In September 2014, the Company entered into an advisory services agreement (the “Consulting Agreement”) with its controlling entity. The Consulting Agreement required quarterly payments from September 8, 2014 through December 31, 2018 for business consulting services provided by the controlling entity. Consulting fees from the Consulting Agreement totaled $750,000, $1.0 million and $1.1 million in the years ended December 31, 2015, 2016 and 2017, respectively, and are included in general and administrative expenses on the accompanying consolidated statements of operations. Upon completion of the initial public offering, the Consulting Agreement ceased, and the Company is no longer required to make future payments. |
Stock Option Plans and Stock-Ba
Stock Option Plans and Stock-Based Compensation | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Stock Option Plans and Stock-Based Compensation | 7. Stock Option Plans and Stock-Based Compensation 2015 Stock Option Plans In 2015, the Company adopted (i) the Amended and Restated 2015 Stock Option and Grant Plan and (ii) the 2015 Stock Incentive Plan (together the “2015 Stock Option Plans”) under which it may grant incentive stock options (“ISOs”), nonqualified stock options (“NSOs”), and restricted stock to purchase shares of common stock. The 2015 Stock Option Plans reserve 5,000,000 shares of common stock for issuance as ISOs, 500,000 shares of restricted stock and 250,000 shares for issuance under the 2015 Stock Incentive Plan. Under the 2015 Stock Option Plans ISOs may not be granted at less than fair market value on the date of the grant and generally vest over a four-year period based on continued service. Certain options are subject to vesting based on certain future performance targets. Options generally expire ten years after the grant date. At June 30, 2018, 497,868 shares were available for issuance under the Amended and Restated 2015 Stock Option and Grant Plan. At June 30, 2018, 132,202 shares were available for issuance under the 2015 Stock Incentive Plan. The Company currently uses authorized and unissued shares to satisfy share award exercises. 2017 Long Term Incentive Plan In November 2017, the Company’s board of directors adopted the 2017 Long Term Incentive Plan (the “2017 Plan”). As of December 31, 2017, the Company had reserved 8,856,876 shares of common stock available for issuance under the 2017 Plan to employees, directors, officers and consultants of the Company and its subsidiaries. The number of shares of common stock available for issuance under the 2017 Plan will be increased on each January 1 hereafter by 4,428,438 shares of common stock. Options granted under the 2017 Plan generally vest over four years. Common stock subject to an award that expires or is canceled, forfeited, exchanged, settled in cash or otherwise terminated without delivery of shares, and shares withheld or surrendered to pay the exercise price of, or to satisfy the withholding obligations with respect to an award, will become available for future grants under the 2017 Plan. At June 30, 2018, 6,441,482 shares were available for issuance under the 2017 Plan. The Company currently uses authorized and unissued shares to satisfy share award exercises. In November 2017, the Company’s board of directors adopted the Employee Stock Purchase Plan (the “ESPP”). The ESPP became effective on in November of 2017, after the date our registration statement was declared effective by the SEC. As of June 30, 2018, the participation in the ESPP is not effective and no shares were purchased. Options Activity The fair value for the Company’s stock options granted during the year ended June 30, 2017 and 2018 was estimated at the date of grant using a Black Scholes option-pricing model using the following weighted average assumptions: June 30, 2017 June 30, 2018 Expected dividend rate 0% 0% Expected volatility 49% 40.0% - 41.1% Risk-free interest rate 2.11% - 2.11% 2.63% - 2.91% Expected term (in years) 6.25 6.25 The following table summarizes option activity under the 2017 Plan and related information: Number of Options Weighted Average Exercise Price (per share) Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value Balances at December 31, 2017 3,500,075 $ 5.43 8.8 31,784,488 Granted 50,879 $ 20.81 Exercised (365,111 ) $ 2.45 Forfeited (82,907 ) $ 2.78 Balances at June 30, 2018 3,102,936 $ 6.11 8.3 57,188,986 Options vested and expected to vest at June 30, 2018 3,102,936 $ 6.11 8.3 57,188,986 Options vested and exercisable at June 30, 2018 830,912 $ 2.33 7.3 18,455,289 The Company expects all outstanding stock options at June 30, 2018 to fully vest. The weighted average grant date fair value per share for the period ended June 30, 2017 and 2018 was $1.64 and $9.19, respectively. Compensation expense relating to stock options was approximately $0.3 million for the six months ended June 30, 2017 and approximately $2.5 million for the six months ended June 30, 2018. The total fair value of shares vested during the six months ended June 30, 2017 was approximately $0.2 million; and during the six months ended June 30, 2018 was approximately $0.6 million. As of June 30, 2017, the total unrecognized compensation expense related to non-vested stock options granted was $1.4 million and was expected to be recognized over a weighted average period of 2.78 years. As of June 30, 2018, the total unrecognized compensation expense related to non-vested stock options granted is $9.2 million and is expected to be recognized over a weighted average period of 2.51 years. Incentive Unit Plan In 2014 and 2015, the Company granted shares of the Company’s common stock (the “incentive units”) to certain members of management pursuant to restricted stock agreements (the “RSAs”). The incentive units were granted with an exercise price equal to the fair market value on the date of grant, are subject to vesting, and are subject to the Company’s right to repurchase until vested. Upon vesting, the incentive units automatically convert to unrestricted common stock. Prior to modification, 50% of incentive units granted to executives vested based on performance meeting or exceeding EBITDA targets, as defined in the RSAs. Incentive units granted to non-executives and the remaining 50% of incentive units granted to executives vest 25% on the first anniversary date of the grant, and ratably over the remaining three years. The graded-vesting attribution method is used by the Company to determine the monthly stock-based compensation expense over the applicable vesting periods. In 2017, the Board of Directors waived the EBITDA criteria associated with the annual tranche of performance vesting stock options resulting in a modification. The Company did not grant any incentive units during the first half of 2018. As of June 30, 2018, the aggregate intrinsic value of 994,173 non-vested incentive units was $24.4 million, and the total unrecognized compensation related to non-vested incentive units granted was approximately $4.7 million and is expected to be recognized over a weighted-average remaining period of 0.5 years. During the second quarter of 2018, approximately 253,000 units vested. During the first half of 2018, approximately 1.2 million units vested. Stock based compensation expense relating to incentive units was approximately $21,000 for the six months ended June 30, 2017, and $4.3 million for the six months ended June 30, 2018. Restricted Stock Units The Company granted 423,413 restricted stock units during the six months ended June 30, 2018. As of June 30, 2018, 1,245,609 units of restricted stock are expected to vest over a weighted average remaining contractual period of 2.0 years with an aggregate intrinsic value of approximately $30.6 million. The total unrecognized compensation related to restricted stock units was $14.9 million as of June 30, 2018 and is expected to be recognized over a weighted average period of 3.47 years. Stock based compensation expense relating to restricted stock units was approximately $0.0 million for six months ended June 30, 2017, and $2.5 million for the six months ended June 30, 2018. Stock-based compensation expense, which includes stock options, restricted stock units and incentive units, was recognized as follows: Six Months Ended June 30, 2017 2018 (In thousands) Cost of revenue—subscription $ 18 $ 374 Cost of revenue—services and other 38 722 Research and development 65 1,293 General and administrative 75 4,035 Sales and marketing 147 2,831 Total stock-based compensation expense $ 343 $ 9,255 | 11. Stock Option Plans and Stock-Based Compensation 2015 Stock Option Plans In 2015, the Company adopted (i) the Amended and Restated 2015 Stock Option and Grant Plan and (ii) the 2015 Stock Incentive Plan (together the “2015 Stock Option Plans”) under which it may grant incentive stock options (“ISOs”), nonqualified stock options (“NSOs”), and restricted stock to purchase shares of common stock. The 2015 Stock Option Plans reserve 5,000,000 shares of common stock for issuance as ISOs, 500,000 shares of restricted stock and 250,000 shares for issuance under the 2015 Stock Incentive Plan. Under the 2015 Stock Option Plans ISOs may not be granted at less than fair market value on the date of the grant and generally vest over a four-year period based on continued service. Certain options are subject to vesting based on certain future performance targets. Options generally expire ten years after the grant date. At December 31, 2017, 425,112 shares were available for issuance under the Amended and Restated 2015 Stock Option and Grant Plan. At December 31, 2017, 123,105 shares were available for issuance under the 2015 Stock Incentive Plan. The Company currently uses authorized and unissued shares to satisfy share award exercises. 2017 Long Term Incentive Plan In November 2017, the Company’s board of directors adopted the 2017 Long Term Incentive Plan (the “2017 Plan”). As of December 31, 2017, the Company had reserved 8,856,876 shares of common stock available for issuance under the 2017 Plan to employees, directors, officers and consultants of the Company and its subsidiaries. The number of shares of common stock available for issuance under the 2017 Plan will be increased on each January 1 hereafter by 4,428,438 shares of common stock. Options granted under the 2017 Plan generally vest over four years. Common stock subject to an award that expires or is canceled, forfeited, exchanged, settled in cash or otherwise terminated without delivery of shares, and shares withheld or surrendered to pay the exercise price of, or to satisfy the withholding obligations with respect to an award, will become available for future grants under the 2017 Plan. At December 31, 2017, 6,890,082 shares were available for issuance under the 2017 Plan. The Company currently uses authorized and unissued shares to satisfy share award exercises. In November 2017, the Company’s board of directors adopted the Employee Stock Purchase Plan (the “ESPP”). The ESPP became effective on in November of 2017, after the date our registration statement was declared effective by the SEC. As of December 31, 2017, the participation in the ESPP has is not effective and no shares were purchased. The fair value for the Company’s stock options granted during the year ended December 31, 2015 was estimated at the date of grant using a Black Scholes option-pricing model with the following assumptions: Time Based Performance Expected dividend rate 0% 0% Expected volatility 48.4% 48.4% Risk-free interest rate 1.55% - 1.95% 1.68% - 1.93% Expected term (in years) 6.25 5.5 - 6.25 The fair value for the Company’s stock options granted during the year ended December 31, 2016 was estimated at the date of grant using a Black Scholes option-pricing model with the following assumptions: Time Based Performance Expected dividend rate 0% 0% Expected volatility 49% 49% Risk-free interest rate 1.31% - 2.24% 1.27% - 2.16% Expected term (in years) 5.5 - 6.25 5.75 - 6.4 The fair value for the Company’s stock options granted during the year ended December 31, 2017 was estimated at the date of grant using a Black Scholes option-pricing model with the following assumptions: Time Based Performance Expected dividend rate 0% 0% Expected volatility 40.9% - 49% 40.9% - 49% Risk-free interest rate 1.96% - 2.18% 1.96% - 2.18% Expected term (in years) 6.25 - 6.25 5.5 - 6.29 The risk-free interest rate is based on the U.S. treasury yield curve for the term consistent with the life of the stock options as of the date of grant. The Company has elected to apply the “shortcut approach” in developing the estimate of expected term for “plain vanilla” stock options by using the mid-point between the vesting date and contractual termination date. The Company has not paid, and does not anticipate paying, cash dividends on its common stock; therefore, the expected dividend yield is assumed to be zero. The Company has determined the volatility for stock options granted based on an analysis of reported data for a comparable peer group of companies that issued stock options with substantially similar terms. The Company did not utilize its own historic volatility because, prior to November 2017, there was no public market for the Company’s common stock, and current time in the public market was not sufficiently long. The expected volatility of stock options granted has been determined using an average of the historical volatility measures of this peer group of companies consistent with the life of the options. The Company expects all outstanding stock options at December 31, 2017 to fully vest. The weighted average grant date fair value per share for the year ended December 31, 2015, 2016 and 2017 was $1.15, $0.83 and $4.32, respectively. Compensation expense relating to stock options was approximately $160,000, $508,000 and $1.0 million for the years ended December 31, 2015, 2016 and 2017, respectively. The total fair value of shares vested during the years ended December 31, 2015, 2016 and 2017 was approximately $50,000, $571,000 and $323,000, respectively. The following table summarizes activity for service vesting stock options during the years ended December 31, 2015, 2016 and 2017: Number Weighted Weighted Aggregate Balances at December 31, 2014 — $ — Granted 1,349,782 $ 2.38 Forfeited (23,333 ) $ 2.42 Balances at December 31, 2015 1,326,449 $ 2.38 9.7 Options vested and expected to vest at December 31, 2015 1,326,449 $ 2.38 9.7 Options vested and exercisable at December 31, 2015 10,781 $ 2.42 9.7 Balances at December 31, 2015 1,326,449 $ 2.38 9.7 Granted 419,839 $ 1.69 Exercised (6,568 ) $ 1.77 $ 2,950 Forfeited (117,602 ) $ 2.31 Balances at December 31, 2016 1,622,118 $ 2.21 8.9 $ 1,546,599 Options vested and expected to vest at December 31, 2016 1,622,118 $ 2.21 8.9 $ 1,546,599 Options vested and exercisable at December 31, 2016 416,265 $ 2.36 8.7 $ 340,334 Balances at December 31, 2016 1,622,118 $ 2.21 8.9 $ 1,546,599 Granted 1,592,370 $ 9.54 Conversion of performance to service based 591,892 $ 2.53 Exercised (152,330 ) $ 2.22 $ 1,871,041 Forfeited (153,975 ) $ 2.21 Balances at December 31, 2017 3,500,075 $ 5.43 8.8 $ 31,784,488 Options vested and expected to vest at December 31, 2017 3,500,075 $ 5.43 8.8 $ 31,784,488 Options vested and exercisable at December 31, 2017 926,614 $ 2.28 7.9 $ 11,324,729 The following table summarizes the status of the Company’s non-vested service vesting stock options for the years ended December 31, 2015, 2016 and 2017: Number Weighted Non-vested at December 31, 2014 — $ — Granted 1,349,782 $ 1.16 Vested (10,781 ) $ 1.17 Forfeited (23,333 ) $ 1.17 Non-vested at December 31, 2015 1,315,668 $ 1.15 Granted 401,094 $ 0.81 Vested (382,364 ) $ 1.16 Forfeited (117,602 ) $ 1.12 Non-vested at December 31, 2016 1,216,796 $ 1.05 Granted 1,592,370 $ 4.13 Conversion of vested performance to time based 322,988 $ 11.95 Vested (437,829 ) $ 1.04 Forfeited (111,076 ) $ 1.07 Non-vested at December 31, 2017 2,583,249 $ 4.32 The total unrecognized compensation expense related to non-vested service vesting stock options granted is $10.7 million and is expected to be recognized over a weighted average period of 3.14 years as of December 31, 2017. The following table summarizes activity of performance vesting stock options for the years ended December 31, 2015, 2016 and 2017: Number Weighted Weighted Aggregate Balances at December 31, 2014 — $ — Granted 322,846 $ 2.32 Balances at December 31, 2015 322,846 $ 2.32 9.7 Options vested and expected to vest at December 31, 2015 322,846 $ 2.32 9.7 Options vested and exercisable at December 31, 2015 33,613 $ 2.33 9.5 Balances at December 31, 2015 322,846 $ 2.32 9.7 Granted 101,427 $ 1.77 Exercised (4,000 ) $ 1.36 $ 1,942 Forfeited (7,500 ) $ 2.42 Balances at December 31, 2016 412,773 $ 2.19 8.9 $ 401,616 Options vested and expected to vest at December 31, 2016 412,773 $ 2.19 8.9 $ 401,616 Options vested and exercisable at December 31, 2016 142,391 $ 2.22 8.8 $ 134,871 Balances at December 31, 2016 412,773 $ 2.19 8.9 $ 401,616 Granted 187,469 $ 3.27 Exercised (8,350 ) $ 2.38 $ 101,178 Conversion of shares (591,892 ) $ 2.53 8.5 Options vested and expected to vest at December 31, 2017 — $ — — $ — Options vested and exercisable at December 31, 2017 — $ — — $ — The performance vesting stock options are subject to performance requirements, determined prior to the grant date, based on the Company meeting certain annual earnings before interest, taxes, depreciation and amortization, (“EBITDA”) targets as set by the Board of Directors for the applicable years. During the years ended December 31, 2015, 2016 and 2017, the Board of Directors waived the EBITDA criteria associated with the annual tranche of performance vesting stock options resulting in a modification. These modifications impacted 16, 26 and 34 employees and resulted in incremental stock-based compensation expense of $37,000, $98,000 and $45,000 for the years ended December 31, 2015, 2016 and 2017, respectively. During the fourth quarter of 2017, all performance vesting options were modified to become time vesting stock options, affecting approximately 40 employees. No other terms of the options were modified. This modification resulted in recognition of incremental stock compensation expense of $74,000 in 2017 and incremental future stock-based compensation expense of $3.6 million to be recognized over the remaining vesting period of these options. A summary of the status of the Company’s non-vested performance vesting stock options as of December 31, 2017, and changes during the year ended December 31, 2015, 2016 and 2017 are presented below: Number Weighted Non-vested at December 31, 2014 — Granted 322,846 $ 1.12 Vested (33,613 ) $ 1.12 Non-vested at December 31, 2015 289,233 $ 1.11 Granted 101,427 $ 0.84 Vested (106,903 ) $ 0.99 Forfeited (6,563 ) $ 1.18 Non-vested at December 31, 2016 277,194 $ 1.01 Granted 187,469 $ 1.55 Vested (141,675 ) $ 1.54 Conversion of vested performance to service based (322,988 ) $ 11.95 Non-vested at December 31, 2017 — $ — Incentive Unit Plan In 2014 and 2015, the Company granted shares of the Company’s common stock (the “incentive units”) to certain members of management pursuant to restricted stock agreements (the “RSAs”). Incentive units were issued subsequent to the SailPoint Technologies, Inc. acquisition discussed in Note 3 in the notes to the consolidated financial statements. The incentive units were granted with an exercise price equal to the fair market value on the date of grant, are subject to vesting, and if exercised in advance of vesting were subject to the Company’s right to repurchase. Upon vesting, the incentive units automatically convert to common stock. 50% of incentive units granted to executives vest based on performance meeting or exceeding EBITDA targets, as defined in the RSAs. Incentive units granted to non-executives and the remaining 50% of incentive units granted to executives vest 25% on the first anniversary date of the grant, and ratably over the remaining three years. The graded-vesting attribution method is used by the Company to determine the monthly stock-based compensation expense over the applicable vesting periods. The liability for the cash paid to the Company prior to conversion of the incentive units to shares of common stock, was approximately $194,000 and $116,000 at December 31, 2016 and 2017, respectively, and is included in long term debt. During the year ended December 31, 2017, the Board of Directors waived the EBITDA criteria associated with the annual tranche of performance vesting stock options resulting in a modification. This modification impacted 32 employees and resulted in incremental stock-based compensation expense of $2.4 million. During the fourth quarter of 2017, all incentive units originally granted with performance vesting criteria were modified to vest over time, impacting approximately 32 employees and resulting in incremental stock-based compensation expense of $0.6 million. Additionally, during the fourth quarter of 2017, the Board of Directors approved accelerated vesting of restricted stock for an exiting board member that resulted in an incremental stock-based compensation expense of approximately $154,000. A summary of the Company’s non-vested incentive unit activity as of December 31, 2017, changes during the year ended December 31, 2015, 2016 and 2017 are presented below: Number Weighted- Non-vested at December 31, 2014 7,080 $ 0.0517 Granted 170 $ 0.0517 Vested (1,193 ) $ 0.0517 Forfeited (531 ) $ 0.0517 Non-vested at December 31, 2015 5,526 $ 0.0517 Granted (1,677 ) $ 0.0517 Vested 7 $ 0.0517 Forfeited (20 ) $ 0.0517 Other (1) 291 $ 0.0517 Non-vested at December 31, 2016 4,127 $ 0.0517 Vested (1,846 ) $ 0.0517 Repurchased — $ — Forfeited (39 ) $ 0.0517 Non-vested at December 31, 2017 2,242 $ 0.0517 (1) The non-vested total from December 31, 2016 has been adjusted to include incentive units previously issued. The total unrecognized compensation related to non-vested incentive units granted is approximately $9.0 million and is expected to be recognized over a weighted-average period of 1.0 years as of December 31, 2017. The total intrinsic value of units unvested as of December 31, 2015, 2016 and 2017 was $5.7 million, $8.5 million and $32.5 million, respectively. Compensation expense relating to incentive units, including both service and performance vesting, was approximately $86,000, $60,000 and $3.2 million for the years ended December 31, 2015, 2016 and 2017, respectively. Stock-based compensation expense, which includes stock options, restricted stock units and incentive units, recognized was as follows: Year Ended December 31, 2015 2016 2017 (In thousands) Cost of revenue—subscription $ 12 $ 34 $ 133 Cost of revenue—services and other 20 63 458 Research and development 62 118 658 General and administrative 28 96 2,062 Sales and marketing 124 257 1,203 Total stock-based compensation $ 246 $ 568 $ 4,514 Restricted Stock Units During the year ended December 31, 2017, we awarded RSUs to certain employees, with a weighted-average grant date fair value of $12.18 per share. RSUs are generally subject to forfeiture if employment terminates prior to the vesting date. We expense the cost of the RSUs, which is determined to be the fair market value of the shares of common stock underlying the RSUs on the date of grant, ratably over the period during which the vesting restrictions lapse. The following provides a summary of the restricted stock unit activity for the Company for the year ended December 31, 2017: Number of Weighted Aggregate Balances at December 31, 2016 — Granted 897,284 Vested — Forfeited — Balances at December 31, 2017 897,284 9.9 $ 186 Units vested and expected to vest at December 31, 2017 897,284 9.9 $ 186 The total unrecognized compensation related to restricted stock units is $10.6 million for December 31, 2017 and is expected to be recognized over a weighted average period of 3.88 years. A summary of the Company’s non-vested incentive unit activity as of December 31, 2017 is as follows: Number of Weighted Non-vested at December 31, 2016 — $ — Granted 897,284 12.18 Vested — — Forfeited — — Non-vested at December 31, 2017 897,284 $ 12.18 |
Income Taxes
Income Taxes | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Income Taxes | 8. Income Taxes Impacts of the U.S. 2017 Tax Cuts and Jobs Act The U.S. 2017 Tax Cuts and Jobs Act (the “Act”), which was signed into law on December 22, 2017 and effective January 1, 2018, reduces the U.S. federal corporate tax rate from 35% to 21%. There was no net impact to the Company’s provision for income taxes due to the Company’s valuation allowance. The decrease in future tax assets via the reduced rate was offset by the decrease in our valuation allowance. The Act subjects a U.S. shareholder to tax on global intangible low-taxed income (“GILTI”) earned by certain foreign subsidiaries. The FASB Staff Q&A, Topic 740, No. 5, Accounting for GILTI The provision for income taxes for 2017 and 2018 is generated from activity in certain foreign jurisdictions by our consolidated subsidiaries and certain state and local jurisdictions. The Company’s practice is to recognize interest and/or penalties related to income tax matters in income tax expense. During the six months ended June 30, 2017 and 2018 the Company did not record any material interest or penalties. The effective tax rate for the six months ended June 30, 2017 is 2.4% compared to 7.3% for the six months ended June 30, 2018. The Company files income tax returns in the U.S. federal, states, and foreign jurisdictions. The Company is no longer subject to U.S. federal income tax examinations for years before 2014 and is no longer subject to state, local and foreign income tax examinations by tax authorities for years before 2012. The Company is currently under audit for sales and use tax in a single domestic jurisdiction and income tax audit in a single foreign jurisdiction. Both audits are in their initial stages and are immaterial. | 14. Income Taxes Tax Reform On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “TCJA”). The TCJA makes broad and complex changes to the Code. The changes include, but are not limited to lowering the U.S. corporate income tax rates, implementing a modified territorial tax system and imposing a one-time transition tax on deemed repatriated earnings of foreign subsidiaries. The Company has evaluated the impact of the TCJA for its year end income tax provision, the results of which are discussed below. Rate Reduction Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to reverse. The TCJA reduces the U.S. federal corporate income tax rate from 35% to 21% for tax years beginning after December 31, 2017. As a result, the Company has revalued its ending net deferred tax assets and liabilities at December 31, 2017 and recognized a $1.8 million tax benefit that was offset by a change in valuation allowance. Deemed Repatriation Transition Tax The TCJA provides for a one-time transition tax on the deemed repatriation of post-1986 undistributed foreign subsidiary earnings and profits (“E&P”). Substantially all of the Company’s foreign subsidiaries’ earnings and profits have previously been included in the Company’s U.S. income tax returns via Section 956. As a result, we recognized tax expense of $0 related to the transition tax. GILTI Tax While the TCJA transitions from a worldwide to a modified territorial tax system, global intangible low-taxed income (“GILTI”) provisions will be applied for tax years beginning after December 31, 2017 imposing an incremental tax on low-taxed foreign income. GILTI is the excess of the shareholder’s “net CFC tested income” over the net deemed tangible income return. Under GAAP, the Company is permitted to make an accounting policy election to either treat taxes due on future inclusions in U.S. taxable income related to GILTI as a current-period expense when incurred (the “period cost method”) or to factor such amounts into the Company’s measurement of its deferred taxes (the “deferred method”). The Company’s selection of an accounting policy with respect to the new GILTI provisions will depend, in part, on analyzing its global income to determine whether it expects to have future U.S. inclusions in taxable income related to GILTI and, if so, what the impact is expected to be. Whether the Company expects to have future U.S. inclusions in taxable income related to GILTI depends on not only the Company’s current structure and estimated future results of global operations, but also its intent and ability to modify its structure. The Company is currently in the process of analyzing its structure and, as a result, is not yet able to reasonably estimate the effect of this provision of the TCJA. Therefore, the Company has not made any adjustments related to potential GILTI tax in its financial statements and has not made a policy decision regarding whether it will use the period cost or deferred method. Income Taxes The provision for income taxes for 2015, 2016 and 2017 is related to the profits generated in certain foreign jurisdictions by our consolidated subsidiaries. The following table presents consolidated loss before provision for income taxes as follows: Year Ended December 31, 2015 2016 2017 (In thousands) Domestic $ (14,727 ) $ (2,435 ) $ (2,780 ) Foreign 1,306 (2,723 ) (2,519 ) Total loss before income taxes $ (13,421 ) $ (5,158 ) $ (5,299 ) The provision for income taxes consisted of: Year Ended December 31, 2015 2016 2017 (In thousands) Current Federal $ — $ — $ 293 State 8 21 189 Foreign 704 531 1,997 Total current 712 552 2,479 Deferred Federal (3,222 ) (1,315 ) (293 ) State (99 ) (118 ) 202 Foreign (5 ) (1,104 ) (95 ) Total deferred (3,326 ) (2,537 ) (186 ) (Benefit) provision $ (2,614 ) $ (1,985 ) $ 2,293 Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred taxes are as follows: As of December 31, 2016 2017 (In thousands) Deferred tax assets: Research and development and other credits $ 5,235 $ 6,187 Net operating loss carryforward 26,867 14,795 Charitable contributions 11 — Deferred revenue 1,115 1,355 Stock compensation 17 125 Accrued expense 1,346 1,323 Depreciable and amortizable assets 368 29 Other — 228 Total deferred tax assets 34,959 24,042 Deferred tax liabilities: Prepaid expenses (1,389 ) (1,249 ) Intangibles (32,751 ) (17,232 ) Total deferred tax assets, net 819 5,561 Less valuation allowance for deferred tax assets (486 ) (5,297 ) Net deferred tax assets $ 333 $ 264 As of December 31, 2015, 2016 and 2017, the Company had federal net operating loss carryforwards of approximately $78.5 million and $72.4 million, and $57.8 million, respectively, and research and development credits of approximately $2.7 million, $3.4 million, and $4.2 million, respectively, which will begin to expire beginning in 2024 if not utilized prior to that time. Utilization of the net operating loss and research credit carryforwards is subject to an annual limitation due to the “change in ownership” provisions of the Internal Revenue Code of 1986. As of December 31, 2016, the Company’s reversing taxable temporary differences exceeded the Company’s deferred tax assets in certain foreign jurisdictions. Thus, management determined that it was more likely than not that the benefit associated with its deferred tax assets would be realized in that foreign jurisdiction. As of December 31, 2017, the Company’s deferred tax assets exceeded the Company’s reversing taxable temporary differences in that foreign jurisdiction. Given the Company’s lack of earnings history in that foreign jurisdiction, management determined it was not more likely than not that the benefit of the Company’s deferred tax assets that exceeded its reversing taxable temporary differences would be realized. Thus, no valuation allowance was recorded for December 31, 2016 and a valuation allowance totaling $1.7 million was recorded as of December 31, 2017. Given the Company’s lack of earnings history in the U.S., management determined it was not more likely than not that the benefit of the Company’s deferred tax assets that exceeded its reversing taxable temporary differences would be realized in the U.S., except for a portion of certain state tax credits that management determined were more likely than not to be realized. Thus, a valuation allowance totaling $0.5 million and $3.6 million was recorded as of December 31, 2016 and 2017, respectively, against the Company’s U.S. deferred tax assets that exceeded its reversing taxable temporary differences and the portion of state credits that are projected to expire unutilized. The Company’s provision for income taxes differs from the expected tax benefit (expense) amount computed by applying the statutory federal income tax rate of 34% to income before income taxes primarily due to permanent items, the research and development credit, foreign taxes and the application of a valuation allowance for the years ended December 31, 2015, 2016 and 2017. The following table reconciles the Company’s effective tax rate to the federal statutory tax rate: Year Ended December 31, 2015 2016 2017 U.S. federal taxes at statutory rate 34.0 % 34.0 % 34.0 % Foreign tax rate differentials (0.7 ) (11.8 ) (9.1 ) Research and development credit 1.8 18.2 17.8 Foreign tax credit 3.9 4.7 18.3 Stock options (1.1 ) (3.8 ) (23.6 ) Permanent differences and other (5.3 ) (7.8 ) (14.4 ) State taxes, net of federal benefit 2.8 (0.1 ) (4.0 ) Change in state rate (11.6 ) 7.3 (1.9 ) Change in other valuation allowance due to operations 0.4 (1.9 ) (58.4 ) Other 4.7 (0.3 ) (2.0 ) Total income tax benefit (expense) 19.5 % 38.5 % (43.3 )% The reconciliation of unrecognized tax benefits at the beginning and end of the year is as follows (in thousands): Balance at December 31, 2014 $ 320 Additions based on tax positions related to prior year 366 Balance at December 31, 2015 $ 686 Additions based on tax positions related to prior year 197 Balance at December 31, 2016 883 Additions based on tax positions related to prior year 507 Additions based on tax positions related to current year 473 Balance at December 31, 2017 $ 1,863 Beginning December 31, 2014, due to the existence of the valuation allowance, future changes in unrecognized tax benefits did not impact the Company’s effective tax rate. Included in the balance of unrecognized tax benefits as of December 31, 2015, 2016 and 2017 is $0.7 million, $0.9 million and $1.9 million, respectively, of tax benefits that, if recognized, would affect the Company’s effective tax rate. The Company’s practice is to recognize interest and/or penalties related to income tax matters in income tax expense. During the years ended December 31, 2015, 2016 and 2017 the Company did not record any material interest or penalties. The Company files tax returns in the U.S. federal jurisdiction, in several state jurisdictions, and in several foreign jurisdictions. The Company is no longer subject to U.S. federal income tax examinations for years before 2013 and is no longer subject to state, local and foreign income tax examinations by tax authorities for years before 2012. The Company is not currently under audit in any jurisdiction. |
Net Loss Per Share Attributable
Net Loss Per Share Attributable to Common Shareholders | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | ||
Net Loss Per Share Attributable to Common Shareholders | 9. Net Loss Per Share Attributable to Common Shareholders Basic and diluted net loss per share is computed by dividing net loss attributable to common shareholders by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is calculated using our weighted-average outstanding common shares including the dilutive effect of stock awards. In periods when the Company recognizes a net loss, the Company excludes the impact of outstanding stock awards from the diluted loss per share calculation as their inclusion would have an antidilutive effect. The following table sets forth the calculation of basic and diluted net loss per share during the periods presented: Six Months Ended June 30, 2017 2018 (In thousands, except share data) Numerator: Net loss $ (6,587 ) $ (11,614 ) Deemed dividends to preferred stockholders (12,590 ) — Net loss attributable to common shareholders $ (19,177 ) $ (11,614 ) Denominator: Weighted average shares outstanding Basic and diluted 47,567,048 85,984,103 Net loss attributable to common shareholders Basic and diluted $ (0.40 ) $ (0.14 ) The following weighted average outstanding shares of common stock equivalents were excluded from the computation of the diluted net loss per share attributable to common shareholders for the periods presented because their effect would have been anti-dilutive. For the period prior to our initial public offering, convertible preferred stock is not included in this computation as it was contingently convertible based upon a future event. Six Months Ended June 30, 2017 2018 Stock options to purchase common stock 2,194,152 3,391,821 RSUs issued and outstanding — 1,189,385 Non-vested incentive units 3,309,772 1,288,022 Total 5,503,924 5,869,228 | 15. Net loss per share attributable to common shareholders The following table sets forth the calculation of basic and diluted net loss per share during the periods presented: Year Ended December 31, 2015 2016 2017 (In thousands, except share data) Numerator: Net loss $ (10,807 ) $ (3,173 ) $ (7,592 ) Deemed dividends to preferred stockholders (21,597 ) (23,618 ) (21,129 ) Net loss attributable to common shareholders $ (32,404 ) $ (26,791 ) $ (28,721 ) Denominator: Weighted average shares outstanding used in computing net loss per share Basic 43,929,159 45,933,218 52,339,804 Diluted 43,929,159 45,933,218 52,339,804 Net loss attributable to common shareholders Basic $ (0.74 ) $ (0.58 ) $ (0.55 ) Diluted $ (0.74 ) $ (0.58 ) $ (0.55 ) The following weighted average outstanding shares of common stock equivalents were excluded from the computation of the diluted net loss per share attributable to common stockholders for the periods presented because their effect would have been anti-dilutive, and the convertible preferred stock is not included in these calculations as it is contingently convertible based upon a future event (see Note 10): Year Ended December 31, 2015 2016 2017 Convertible preferred stock on an as-if converted basis Stock options to purchase common stock 495,315 1,799,632 2,402,225 RSUs issued and outstanding — — 105,404 Non-vested incentive units 7,307,787 4,931,760 2,915,228 Total 7,803,102 6,731,392 5,422,857 |
Business Combination
Business Combination | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Business Combination | 3. Business Combination Whitebox Security Ltd. On July 15, 2015, Whitebox Security Ltd. was acquired in exchange for total consideration of approximately $16 million. The acquisition was funded by borrowings under the Company’s revolving loan facility and cash on hand. Assets acquired, and liabilities assumed The Company recorded the transaction using the acquisition method of accounting which requires that assets acquired and liabilities assumed be recognized at their fair values as of the acquisition date. The values outlined below represent the Company’s estimates of fair value as of the acquisition date: (In thousands) Cash and cash equivalents $ 458 Accounts receivable 423 Prepaid expenses and other assets 34 Deferred revenue contracts 162 Goodwill 10,485 Intangible assets 5,810 Total assets $ 17,372 Accounts payable $ (91 ) Accrued expenses (250 ) Deferred tax liability (1,202 ) Deferred revenue (162 ) Total liabilities $ (1,705 ) Total consideration $ 15,667 Total consideration, net of cash acquired $ 15,209 The fair values of the assets acquired and liabilities assumed were determined using various valuation techniques. Cash and cash equivalents, prepaid expenses, deposits, accounts payable, accrued expenses, and other liabilities were valued using a historical cost basis as this basis approximates fair value. Accounts receivable and other receivables have been recorded on a historical net basis, which approximates the fair value. Deferred revenue has been recorded based on an estimate of the fair market value of the services to be provided in connection with the associated contracts. Intangible assets Estimated Weighted Developed technology $ 5,000 7 Non-competition agreements and related items 810 4.4 Total acquired intangible assets other than goodwill $ 5,810 The intangible assets have been valued using variations of the income approach method which the Company determined were the most appropriate approach for the individual assets and which is considered a Level 3 valuation technique. Each of the intangible assets will be amortized over its estimated useful life. Goodwill Acquisition Costs |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | 4. Property and Equipment, Net The cost and accumulated depreciation and amortization of property and equipment are as follows: As of December 31, 2016 2017 (In thousands) Property and equipment, net Computer equipment $ 2,618 $ 4,559 Other assets 528 833 Total property and equipment 3,146 5,392 Less: accumulated depreciation (1,291 ) (2,374 ) Total property and equipment, net $ 1,855 $ 3,018 Depreciation expense was $0.6 million, $0.9 million and $1.4 million for the years ended December 31, 2015, 2016 and 2017, respectively. There were no impairments of our property and equipment for the years ended December 31, 2015, 2016 and 2017. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill | 5. Goodwill Goodwill represents the excess of the purchase price over the identifiable tangible and intangible assets acquired plus liabilities assumed arising from business combinations. The carrying amount of goodwill was $219.4 million at December 31, 2016 and December 31, 2017 as there has been no acquisition activity in these periods. All goodwill balances are subject to annual goodwill impairment testing. There were no impairments of goodwill during the years ended December 31, 2015, 2016 and 2017. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets | 6. Intangible Assets Total cost and amortization of intangible assets comprised of the following: As of December 31, Weighted Average 2016 2017 (In years) (In thousands) Intangible assets, net Customer lists 15 $ 42,500 $ 42,500 Developed technology 9.6 42,000 42,000 Trade names and trademarks 17 24,500 24,500 Order backlog 1.5 1,100 1,100 Non-competition agreements and related items 4.4 810 810 Total intangible assets 110,910 110,910 Less: Accumulated amortization (20,897 ) (29,725 ) Total intangible assets, net $ 90,013 $ 81,185 The amortization expense of the intangible assets was $9.1 million, $9.1 million and $8.8 million for the years ended December 31, 2015, 2016 and 2017, respectively. Amortization expense is included in the consolidated statements of operations for the years ended December 31, 2015, 2016 and 2017, respectively, as follows: General and administrative expenses of $64,000, $71,000 and $0, research and development expenses of $0 million, $0.2 million and $0.1, sales and marketing expenses of $5.0 million, $4.4 million and $4.3 million, license cost of revenue of $3.7 million, $4.0 million and $4.0 million and subscription cost of revenue of $0.4 million, $0.4 million and $0.4 million. Periodically, the Company evaluates intangible assets for possible impairment. There were no impairments for intangible assets during the years ended December 31, 2015, 2016 and 2017. The total estimated future amortization expense of these intangible assets as of December 31, 2017 is as follows: (In thousands) Year ending December 31, 2018 $ 8,825 2019 8,825 2020 8,825 2021 8,825 2022 8,825 Thereafter 37,060 Total amortization expense $ 81,185 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Stockholders' Equity | 10. Stockholders’ Equity In November 2017, the board of directors and stockholders approved the Amended and Restated Certificate of Incorporation to increase the authorized capital stock to 310,000,000 shares, consisting of 300,000,000 shares of common stock and 10,000,000 shares of preferred stock, each with par value of $0.0001 per share. Common stock The Company’s Amended and Restated Certificate of Incorporation authorizes issuance of 300,000,000 shares of common stock with a par value of $0.0001 per share. The common stock confers upon its holders the right to participate in the general meetings of the Company, to vote at such meetings (each share represents one vote), to elect board members and to participate in any distribution of dividends, payments of the Company’s debts, other payments required by law, or other property and amounts payable upon shares of preferred stock, including the distribution of surplus assets upon liquidation equally on a per share basis. The rights of the holders of common stock will be subject to, and may be adversely affected by, the rights of holders of any preferred stock that may be issued in the future. Preferred stock The company is authorized, subject to any limitations prescribed by law, without stockholder approval, to issue from up to an aggregate of 10,000,000 shares of preferred stock, in one or more series, each series to have such rights, preferences and limitations, including voting rights, dividend rights, conversion rights, redemption privileges and liquidation preferences as determined by the board of directors. As of December 31, 2017, the Company does not have any shares of preferred stock outstanding and currently has no plans to issue shares of preferred stock. Redeemable Convertible Preferred Stock Prior to the November 2017 Amended and Restated Certificate of Incorporation, the Company classified the redeemable convertible preferred stock outside of stockholders’ equity (deficit) as required by ASC 480-10-S99 since the shares possessed liquidation features which may have triggered a distribution that was not solely within the Company’s control. Pursuant to the Company’s Amended and Restated Certificate of Incorporation in effect prior to the IPO, a deemed liquidation event would have occurred upon the closing of the transfer of the Company’s securities to a person or a group of affiliated persons, in one or a series of related transactions, if immediately after such transaction, such person or group of affiliated persons would hold 50% or more of the outstanding voting stock of the Company. The holders of a majority of the outstanding preferred stock may elect to require that all or any portion of the preferred stock held by them be redeemed in connection with any of the following (each of which is defined as a “Fundamental Change”): (i) a change in control of the Company, (ii) a sale of 50% or more of the assets of the Company and its subsidiaries, and (iii) a merger or consolidation to which the Company is a party, except for a merger where the Company is the surviving corporation, the terms of the preferred stock are not changed and the preferred stock is not exchanged for cash, securities or other properties, and the holders of a majority of the voting power (with respect to election of directors) of the Company’s capital stock immediately prior to the merger shall continue to hold a majority of the voting power following the merger. Upon such election, each other holder of preferred stock may also require that all or any portion of the preferred stock held by them be redeemed in connection with such Fundamental Change. Upon the closing of the IPO on November 17, 2017, all shares of the Company’s outstanding redeemable convertible preferred stock automatically converted into shares of common stock. As of such date, no redeemable convertible preferred stock was authorized or issued and outstanding. Redeemable convertible preferred stock consisted of the following (in thousands, except share amounts): As of Redeemable Date Issued Original Shares Shares Liquidation Dividend December 31, 2016 Series A September 2014 $ 1,000 500,000 223,987 $ 275,463 9 % December 31, 2017 Series A September 2014 $ 1,000 — — $ — 0 % Dividends Prior to November 2017, the holders of the Company’s redeemable convertible preferred stock were entitled to dividends when and if declared by the board of directors. Dividends were payable in preference and priority to any payment of any dividend on the Company’s common stock. Dividends on redeemable convertible preferred stock were cumulative and compounded daily at a rate of 9% per annum, equivalent to $90 per share of preferred stock. On June 27, 2017, the board of directors declared, and the Company paid, an aggregate cash dividend of $50.4 million on the issued and outstanding shares of the Company’s preferred stock. The accumulated payment was made to eligible shareholders effective through December 15, 2016 and was primarily funded with the proceeds from the New Financing arrangement as noted in Note 8. Upon completing the initial public offering in November 2017, 223,816 shares of redeemable convertible preferred shares, with cumulative undeclared and unpaid dividends of $22.2 million, were converted to 20,500,400 shares of common stock. Treasury Stock During 2014, the Company entered into “Employee Purchase Agreements” with certain of its employees. Pursuant to the Employee Purchase Agreements, shares issued to the employee can be repurchased when the employee leaves the Company, subject to certain pricing parameters. Any shares purchased have been held in the Company’s treasury. The Company accounts for treasury stock under the cost method and includes treasury stock as a component of stockholders’ equity (deficit). As of December 31, 2017, the Company had repurchased 190,434 shares, cumulatively, of its common stock for approximately $0.5 million, at an average cost of $2.56 per share. During the fourth quarter of 2017, all repurchased shares of treasury stock were retired. |
Accrued Expenses and Other Liab
Accrued Expenses and Other Liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Liabilities | 12. Accrued Expenses and Other Liabilities Accrued expenses consisted of the following: As of December 31, 2016 2017 (In thousands) Commissions $ 4,943 $ 8,559 Bonus 2,895 5,063 Payroll and related benefits 988 2,640 Interest 794 34 Partner and customer programs 615 1,234 Sales and other taxes 615 1,373 Employee travel expenses 213 369 Consulting and professional services 188 339 Other 1,854 3,025 Total $ 13,105 $ 22,636 |
Prepayments and Other Assets
Prepayments and Other Assets | 12 Months Ended |
Dec. 31, 2017 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Prepayments and Other Assets | 13. Prepayments and Other Assets Prepayments and other assets include the balance of prepaid expenses, prepaid rent, prepaid issuance costs, and other assets. The current portion of these assets is included in prepayments and other current assets and the non-current portion is included in other non-current assets, both of which are contained within the accompanying consolidated balance sheets. The current portion of prepayments and other current assets consisted of the following: As of December 31, 2016 2017 (In thousands) Prepaid expenses $ 2,783 $ 4,376 Prepaid insurance 447 660 Prepaid commissions 3,753 2,931 Other 711 2,046 Total $ 7,694 $ 10,013 Other non-current assets consisted of the following: As of December 31, 2016 2017 (In thousands) Prepaid expenses $ 546 $ 3,210 Deposits 115 222 Note receivable 319 — Other — 110 Total $ 980 $ 3,542 |
Geographic information and majo
Geographic information and major customers | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Geographic information and major customers | 16. Geographic information and major customers ASC 280, “Segment Reporting,” establishes standards for reporting information about operating segments. Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The Company manages its business on the basis of one reportable segment, and derives revenues from licensing of software, sale of professional services, maintenance and technical support. The following are a summary of consolidated revenues within geographic areas: Year Ended December 31, 2015 2016 2017 (In thousands) United States $ 63,440 $ 92,116 $ 134,676 EMEA (1) 20,770 25,668 33,097 Rest of the World (1) 11,146 14,628 18,283 Total revenue $ 95,356 $ 132,412 $ 186,056 (1) No single country represented more than 10% of consolidated revenue |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2017 | |
Postemployment Benefits [Abstract] | |
Employee Benefit Plans | 17. Employee Benefit Plans The Company has established a defined contribution savings plan under Section 401(k) of the Internal Revenue Code (the “401(k) Plan”). The 401(k) Plan covers substantially all employees who meet minimum age and service requirements and allows participants to defer a percentage of their annual compensation as defined in the 401(k) Plan. To date, the Company has made no contributions to the 401(k) Plan. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | 18. Subsequent Events |
Summary of Significant Accoun26
Summary of Significant Accounting Policies (Policies) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Accounting Policies [Abstract] | ||
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated interim financial statements have been prepared in accordance with Article 10 of Regulation S-X, “Interim Financial Statements” and the rules and regulations for Form 10-Q of the Securities and Exchange Commission (the “SEC”). Pursuant to those rules and regulations, the Company has condensed or omitted certain information and footnote disclosure it normally includes in its annual consolidated financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). The unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the balance sheet, statements of operations and the statements of cash flows for the interim periods but are not necessarily indicative of the results of operations to be anticipated for the full year ending December 31, 2018 or any future period. Our unaudited consolidated financial statements have been prepared in a manner consistent with the accounting principles described in our Company’s Annual Report on Form 10-K for the year ended December 31, 2017, which was filed with the SEC on March 19, 2018 (the “Annual Report”). These financial statements and accompanying notes should be read in conjunction with the consolidated financial statements and notes thereto in the Company’s Annual Report. All intercompany accounts and transactions have been eliminated in consolidation. | Basis of Presentation The accompanying consolidated financial statements, which include the accounts of the Company and its wholly owned subsidiaries, have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The consolidated financial statements include the accounts of SailPoint Technologies Holdings, Inc. and its subsidiaries, SailPoint Technologies Intermediate Holdings, LLC, SailPoint Technologies, Inc., SailPoint Technologies UK LTD, SailPoint Holdings, Inc., SailPoint International, Inc., SailPoint Technologies India Private LTD, SailPoint Technologies Netherlands B.V., SailPoint Technologies Israel Ltd, SailPoint Technologies SARL, SailPoint Technologies GmbH, and SailPoint Technologies Pte. Ltd. and Whitebox Security Ltd. All intercompany accounts and transactions have been eliminated in consolidation. The Company operates as one operating segment. The Company’s chief operating decision maker is its chief executive officer, who reviews financial information presented on a consolidated basis for purposes of making operating decisions, assessing financial performance and allocating resources. |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash We consider all highly liquid investments with an original maturity of three months or less from date of purchase to be cash equivalents. The Company is required to maintain a small amount of restricted cash to guarantee rent payments in a foreign subsidiary. | Cash, Cash Equivalents and Restricted Cash We consider all highly liquid investments with an original maturity of three months or less from date of purchase to be cash equivalents. The Company is required to maintain a small amount of restricted cash to guarantee rent payments in a foreign subsidiary. As of December 31, 2016 2017 (In thousands) Cash and cash equivalents per balance sheet $ 18,214 $ 116,049 Restricted cash per balance sheet 58 78 Cash, cash equivalents and restricted cash per cash flow $ 18,272 $ 116,127 |
Segment Information and Concentration of Credit and Other Risks | Segment Information and Concentration of Credit and Other Risks Segment Information The Company operates as one operating segment. The Company’s chief operating decision maker is its chief executive officer, who reviews financial information presented on a consolidated basis for purposes of making operating decisions, assessing financial performance and allocating resources. ASC 280, “Segment Reporting,” establishes standards for reporting information about operating segments. Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The Company manages its business on the basis of one reportable segment, and derives revenues from licensing of software, sale of professional services, maintenance and technical support. The following tables sets forth the Company’s consolidated total revenue by geography: Six Months Ended June 30, 2017 2018 (In thousands) United States $ 53,020 $ 67,195 EMEA (1) 13,853 24,952 Rest of the World (1) 7,853 12,127 Total revenue $ 74,726 $ 104,274 (1) No single country represented more than 10% of our consolidated revenue. | |
Concentration of Credit and Other Risks | Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash and cash equivalents and accounts receivable. The Company maintains its cash in bank deposit accounts that, at times, may exceed federally insured limits. There is no concentration of credit risk for customers as no individual entity represented more than 10% of the balance in accounts receivable as of December 31, 2017 and June 30, 2018 or 10% of revenue for six months ended June 30, 2017 and 2018. The Company does not experience concentration of credit risk in foreign countries as no foreign country represents more than 10% of the Company’s condensed consolidated revenues or net assets. | Concentration of Credit and Other Risks Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash and cash equivalents and accounts receivable. The Company maintains its cash in bank deposit accounts that, at times, may exceed federally insured limits. There is no concentration of credit risk for customers as no individual entity represented more than 10% of the balance in accounts receivable as of December 31, 2016 and 2017 or 10% of revenue in the years ended December 31, 2015, 2016 and 2017. The Company does not experience concentration of credit risk in foreign countries as no foreign country represents more than 10% of the Company’s consolidated revenues or net assets. The following tables sets forth the Company’s consolidated total revenue by geography: Year Ended December 31, 2015 2016 2017 (In thousands) United States $ 63,440 $ 92,116 $ 134,676 EMEA (1) 20,770 25,668 33,097 Rest of the World (1) 11,146 14,628 18,283 Total revenue $ 95,356 $ 132,412 $ 186,056 (1) No single country represented more than 10% of consolidated revenue |
Significant Accounting Policies | Significant Accounting Policies There have been no significant changes to the Company’s significant accounting policies, which are discussed in Note 2 of “Notes to Consolidated Financial Statements” in the Annual Report. | |
Recently Issued Accounting Standards | Recently Issued Accounting Standards Not Yet Adopted Under the Jumpstart Our Business Startups Act (the “JOBS Act”), emerging growth companies can delay adopting new or revised accounting standards until such time as those standards apply to private companies. We have elected to take advantage of the longer phase-in periods for the adoption of new or revised financial accounting standards under the JOBS Act until we are no longer an emerging growth company. In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No . , Revenue from Contracts with Customers (Topic 606) With the evaluation of ASC 606 adoption, the Company plans to adopt the standard under the modified retrospective method. The Company’s determination was made upon a number of factors such as the significance of the impact of the new standard on the Company’s financial results, system readiness, including that of software procured from third-party providers, and the Company’s ability to accumulate and analyze the information necessary to assess the impact on prior period financial statements, as necessary and earlier than expected loss of emerging growth company status. The Company will continue to evaluate and analyze all other aspects of ASC 606 that may impact it. The Company will adopt the new revenue standard for the annual reporting period ending December 31, 2018, using the modified retrospective transition method. Under this method, the Company elects to apply the cumulative effect method to contracts that are not complete as of the adoption date. The Company is continuing to finalize the impact of adopting the new revenue standard on its condensed consolidated financial statements and related disclosures, changes to its accounting policies and practices and controls to support the new revenue recognition standard. The Company has developed a project plan for this transition, which includes necessary changes to accounting policies, processes, internal controls, and system requirements and is progressing as planned. The Company expects to implement the plan in time to report in accordance with ASC 606 for the annual reporting period for the year ended December 31, 2018. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory In July 2017, the FASB issued ASU No. 2017-11, Earnings Per Share (Topic 260). Recently Adopted Accounting Standards In May 2017, the FASB issued ASU No. 2017-09, Compensation—Stock Compensation (Topic 718). | Recently Issued Accounting Standards Not Yet Adopted Under the Jumpstart Our Business Startups Act (the “JOBS Act”), emerging growth companies can delay adopting new or revised accounting standards until such time as those standards apply to private companies. We have elected to take advantage of the longer phase-in periods for the adoption of new or revised financial accounting standards under the JOBS Act until we are no longer an emerging growth company. In May 2014, the FASB issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606) The Company currently plans to adopt using the full retrospective approach; however, a final decision regarding the adoption method has not been made at this time. The Company’s final determination will depend on a number of factors such as the significance of the impact of the new standard on the Company’s financial results, system readiness, including that of software procured from third-party providers, and the Company’s ability to accumulate and analyze the information necessary to assess the impact on prior period financial statements, as necessary. The Company is in the initial stages of its evaluation of the impact of the new standard on its accounting policies, and processes. The Company has assigned internal resources in addition to the engagement of third party service providers to assist in the evaluation. While the Company continues to assess all potential impacts under the new standard there may be the potential for significant impacts to the timing of recognition of professional services revenue, and contract acquisition costs, both with respect to the amounts that will be capitalized as well as the period of amortization. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory In May 2017, the FASB issued ASU No. 2017-09, Compensation—Stock Compensation (Topic 718). In July 2017, the FASB issued ASU No. 2017-011, Earnings Per Share (Topic 260). Recently Adopted Accounting Pronouncements In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements—Going Concern (Subtopic 205-40). This ASU defines management’s responsibility to evaluate whether there is substantial doubt about an organization’s ability to continue as a going concern and to provide related footnote disclosures. Prior to this ASU, GAAP lacked guidance about management’s responsibility to evaluate whether there is substantial doubt about the organization’s ability to continue as a going concern or to provide related footnote disclosures and all guidance was included in generally accepted auditing standards (“GAAS”). This guidance is effective for annual periods ending after December 15, 2016. Early adoption is permitted. This standard has been adopted beginning with the reporting period ended December 31, 2016. The adoption of ASU 2014-15 did not have a material effect on the Company’s consolidated financial statements and related disclosures, although it could have an impact on disclosures in future periods. In February 2015, the FASB issued ASU No. 2015-02, Consolidation (Topic 810): In April 2015, the FASB issued ASU No. 2015-03, Interest—Imputation of Interest (Subtopic 835-30)— Simplifying the Presentation of Debt Issuance Costs In April 2015, the FASB issued ASU No. 2015-05, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement In September 2015, the FASB issued ASU No. 2015-16 , Business Combinations (Topic 805 In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes In March 2016, the FASB issued ASU No. 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments—a consensus of the Emerging Issues Task Force Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the FASB Emerging Issues Task Force) In January 2017, the FASB issued ASU No. 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Management periodically evaluates such estimates and assumptions for continued reasonableness. In particular, we make estimates with respect to the fair value allocation of multiple elements in revenue recognition, the uncollectible accounts receivable, valuation of long-lived assets, stock-based compensation expense and income taxes. Appropriate adjustments, if any, to the estimates used are made prospectively based upon such periodic evaluation. Actual results could differ from those estimates. | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Assets and liabilities recorded at fair value in the financial statements are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Hierarchical levels which are directly related to the amount of subjectivity associated with the inputs to the valuation of these assets or liabilities are as follows: • Level 1: Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. • Level 2: Observable inputs, other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3: Unobservable inputs reflecting our own assumptions incorporated in valuation techniques used to determine fair value. These assumptions are required to be consistent with market participant assumptions that are reasonably available. The Company’s carrying amounts of financial instruments, including cash and cash equivalents, accounts receivable, accounts payable, accrued expenses and related party payable approximate their fair values due to their short maturities. The carrying value of the Company’s line of credit and long-term debt approximate fair value and were valued using a Level 1 input, specifically the borrowing rates available to the Company at December 31, 2016 and 2017. | |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts The Company continuously assesses the collectability of outstanding customer invoices and in doing so, the Company assesses the need to maintain an allowance for estimated losses resulting from the non-collection of customer receivables. In estimating this allowance, the Company considers factors such as: historical collection experience, a customer’s current creditworthiness, customer concentrations, age of outstanding balances, both individually and in the aggregate, and existing economic conditions. Actual customer collections could differ from the Company’s estimates. The Company determined that an allowance for doubtful accounts was not required for the periods presented. | |
Property and Equipment, Net | Property and Equipment, Net Property and equipment, net, is stated at cost less accumulated depreciation. Depreciation is recorded using the straight-line method over the estimated useful lives of the respective assets, generally three to five years. Leasehold improvements are depreciated over the shorter of the useful lives of the assets or the related lease term. Repairs and maintenance costs are expensed as incurred. Property and equipment are reviewed for impairment whenever events or circumstances indicate their carrying value may not be recoverable. When such events or circumstances arise, an estimate of future undiscounted cash flows produced by the asset, or the appropriate grouping of assets, is compared to the asset’s carrying value to determine if an impairment exists. If the asset is determined to be impaired, the impairment loss is measured based on the excess of its carrying value over its fair value. Assets to be disposed of are reported at the lower of carrying value or net realizable value. There was no impairment of property and equipment during the years ended December 31, 2015, 2016 and 2017. | |
Goodwill | Goodwill Goodwill represents the excess of acquisition cost over the fair value of net tangible and identified net assets acquired. Goodwill and intangible assets that have indefinite lives are not be amortized, but rather tested for impairment annually, or more often if and when events or circumstances indicate that the carrying value may not be recoverable. Goodwill is tested using a two-step process. The first step of the goodwill impairment test, used to identify potential impairment, compares the fair value of a reporting unit with its carrying amount, including goodwill. If the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is considered not impaired, thus the second step of the impairment test is unnecessary. If the carrying amount of a reporting unit exceeds its fair value, the second step of the goodwill impairment test shall be performed to measure the amount of impairment loss, if any. The second step of the goodwill impairment test, used to measure the amount of impairment loss, compares the implied fair value of reporting unit goodwill with the carrying amount of that goodwill. If the carrying amount of reporting unit goodwill exceeds the implied fair value of that goodwill, an impairment loss shall be recognized in an amount equal to the excess. The loss recognized cannot exceed the carrying amount of goodwill. After a goodwill impairment loss is recognized, the adjusted carrying amount of goodwill shall be its new accounting basis. If the implied fair value of goodwill is less than the carrying value of goodwill, an impairment loss is recognized equal to the difference. There were no impairments of goodwill during the years ended December 31, 2015, 2016 and 2017. The Company elected to change the annual assessment date for goodwill and indefinite lived intangible assets from December 31st to October 31st because the change in date creates synergy and enhance the quality of our indefinite lived intangible assets impairment analysis. The Company conducted qualitative and quantitative assessment, for the 2017 annual impairment test, using the income, cost and market approach, using information as of October 31, 2017. The intent is to perform qualitative impairment test at least annually unless certain indicators or events suggest otherwise. | |
Intangible Assets | Intangible Assets Intangible assets are amortized on a straight-line basis over their estimated useful lives. The Company periodically reviews the estimated remaining useful life of our intangible assets and whether events or changes in circumstances warrant a revision to the remaining period of amortization. Periodically, the Company evaluates the recoverability of its long-lived assets including intangible assets, for possible impairment whenever events or circumstances indicate that the carrying amount of such assets may not be recoverable. Recoverability of these assets is measured by comparison of the carrying amount of each asset, or related asset group, to the future undiscounted cash flows the asset is expected to generate. If the undiscounted cash flows used in the test for recoverability are less than the carrying amount of these assets, then the carrying amount of such assets is reduced to fair value. The Company did not record any impairments of long-lived assets including intangible assets as of December 31, 2016 and 2017. | |
Software Development Costs | Software Development Costs Software development costs for products intended to be sold, leased or otherwise marketed are expensed as incurred until technological feasibility has been established, at which time such costs are capitalized until the product is available for general release to customers. Technological feasibility is established when a product design and working model have been completed and the completeness of the working model and its consistency with the product design have been confirmed by testing. To date, the establishment of technological feasibility of the Company’s products and general release of such software has substantially coincided. As a result, software development costs qualifying for capitalization have been insignificant. Therefore, we have not capitalized any software development costs through December 31, 2017. Such costs have been recorded as research and development expenses, as incurred, in the consolidated statements of operations. | |
Comprehensive Income (Loss) | Comprehensive income (loss) The Company has not entered into transactions that require presentation as other comprehensive income (loss). Total comprehensive loss is equal to net loss for all periods presented. | |
Liquidity | Liquidity The Company has sustained losses since its inception. The Company had cash, cash equivalents and restricted cash of approximately $116.1 million and an accumulated deficit of approximately $25.2 million at December 31, 2017. The Company has funded these losses through cash flows from operations, debt, issuance of common stock and other equity financings. The Company believes that working capital on hand, net operating cash flows, and increasing revenues are sufficient to sustain operations for at least the twelve months from the report issuance date. | |
Revenur Recognition | Revenue Recognition Revenue consists of fees for perpetual licenses for the Company’s software products, post-contract customer support (referred to as maintenance), professional services, software as a service (“SaaS”) and other revenue. The Company recognizes revenue in accordance with the provisions of the Financial Accounting Standards Board (“FASB”) authoritative guidance on software revenue recognition and multiple element arrangements. Revenue is recognized when: • Persuasive evidence of an arrangement exists, • Delivery has occurred, or services have been rendered, • The Company’s price to the buyer is fixed or determinable, and • Collectability is probable. The Company frequently enters into sales arrangements that contain multiple elements or deliverables. For arrangements that include both software and non-software elements, the Company allocates revenue to the software deliverables as a group and separable non-software deliverables as a group based on their relative selling prices. In such circumstances, the accounting principles establish a hierarchy to determine the selling price used for allocating revenue to the deliverables as follows: (i) Vendor Specific Objective Evidence (“VSOE”), (ii) third-party evidence of selling price (“TPE”) and (iii) the best estimate of the selling price (“ESP”). Cloud-based services, and professional services related to cloud-based services, are considered to be non-software elements in the Company’s arrangements. VSOE of fair value for each element is based on the Company’s standard rates charged for the product or service when such product or service is sold separately or based upon the price established by the Company’s pricing committee when that product or service is not yet being sold separately. The Company establishes VSOE for maintenance and professional services using a “bell-shaped curve” approach. When applying the “bell-shaped curve” approach the Company analyzes all maintenance renewal transactions over the past twelve months for that category of license and plots those data points on a bell-shaped curve to ensure that a high percentage of the data points are within an acceptable margin of the established VSOE rate. This analysis is performed quarterly on a rolling 12-month basis. When the Company is unable to establish a selling price for non-software arrangements using VSOE or TPE, the Company uses ESP in the allocation of arrangement consideration. The objective of ESP is to determine the price at which the Company would transact a sale if the product or service were sold on a stand-alone basis. The determination of ESP is made through consultation with and formal approval by the Company’s management, taking into consideration the Company’s go-to-market strategy, pricing factors, and historical transactions. The Company recognizes revenue for software arrangements that include undelivered elements using the residual method. Under the residual method, the fair value of the undelivered elements is deferred and recognized as such elements are delivered to the customer and the remaining portion of the agreement fee is recognized as license revenue upon delivery. The determination of fair value of each undelivered element in software arrangements is based on VSOE. If VSOE has not been established for certain undelivered elements in an agreement, revenue is deferred until those elements have been delivered or their VSOE has been determined. Revenue from maintenance and SaaS services is recognized ratably over the relevant contract period. Service revenue includes consulting and training. The Company has determined that consulting and training services are not essential to the functionality of the Company’s software and SaaS offerings, and consulting and training services are typically listed separately in arrangements, are optional, and sold separately. As a result, the Company has established VSOE or ESP for consulting and training services and they therefore qualify for separate accounting. In order to account for deliverables in a multiple-deliverable arrangement as separate unit of accounting, delivered elements must have standalone value. In determining whether professional services have standalone value, we consider the following factors for each professional services agreement: availability of the services from other vendors, the nature of the professional services, the timing of when the professional services contract was signed in comparison to the software or SaaS arrangement and the contractual dependence of the arrangement on the customer’s satisfaction with the professional services. Professional services sold as part of arrangements generally qualify for separate accounting. Consulting and training service revenue that qualifies for separate accounting is recognized as the services are performed using the proportional performance method for fixed fee consulting contracts, or when the right to the service expires. The majority of the Company’s consulting contracts are billed on a time and materials basis. | |
Deferred Revenue | Deferred Revenue Deferred revenue represents amounts from the sale of products that have been billed for, but the transaction has not met our revenue recognition criteria. Amounts are classified between current and long-term liabilities, based upon the expected period in which the revenue will be recognized. Customer advances and billed amounts due from customers in excess of revenue recognized are recorded as deferred revenue. | |
Cost of Revenue | Cost of Revenue Cost of revenue for license consists of amortization expense for developed technology acquired in business combinations and third-party royalties. Cost of subscription revenue consists primarily of employee costs of our customer support organization (including salaries, benefits, bonuses and stock-based compensation), contractor costs to supplement our staff levels, third-party cloud-hosting costs, allocated overhead and amortization expense for developed technology acquired in business combinations. Cost of revenue for services and other revenue consists primarily of personnel-related costs of our services and training departments, including salaries, commissions, benefits, bonuses and stock-based compensation, contractor costs to supplement our staff levels and allocated overhead. | |
Research and Development Expenses | Research and Development Expenses Research and development costs are expensed as incurred. Research and development expenses consist primarily of personnel-related costs for the design and development of our platform and technologies, contractor costs to supplement our staff levels, third-party web services, consulting services, and allocated overhead. | |
Advertising Expenses | Advertising Expenses The Company expenses advertising costs as incurred. Advertising expenses were approximately $2.6 million, $4.2 million and $6.0 million for the years ended December 31, 2015, 2016 and 2017, respectively, and are included in sales and marketing expense. | |
Stock-Based Compensation | Stock-Based Compensation The Company measures stock-based compensation cost for equity instruments granted to employees based upon the estimated fair value of the award at the date of grant and the estimated number of shares ultimately expected to vest. The Company estimates the fair value of stock options granted using the Black-Scholes option-pricing model, which requires us to estimate expected term, fair value of common stock, expected volatility, risk-free interest rate, and dividend yield. We use the simplified method in developing an estimate of the expected term of the stock options, which is calculated as the average of the time to vesting and the contractual life of the options. The expected volatility is based upon the average historical volatility of comparable companies over a period approximately equal to the expected term of the awards. The risk-free interest rate is based on the average interest rate for U.S. Treasury instruments whose term is consistent with the expected term of the options. Compensation cost resulting from this valuation is recognized in the consolidated statement of operations on a straight-line basis over the period during which an employee provides the requisite service in exchange for the award. The Company analyzes the facts and circumstances of each equity instrument to determine if modification accounting is required. This analysis includes a review of factors that influence the probability of vesting. If circumstances arise that have changed the probability that an equity instrument will vest, or other factors have triggered a modification, the revised fair value is calculated, and additional stock-based compensation is recognized over the remaining service period of the modified option. The Company is required to estimate potential forfeitures of stock grants and adjust recorded compensation cost accordingly. The estimate of forfeitures is based on historical experience and is adjusted over the requisite service period to the extent that actual forfeitures differ, or are expected to differ, from the prior estimates. Changes in estimated forfeitures will be recognized in the period of change and will impact the amount of stock-based compensation expense to be recognized in future periods. | |
Foreign Currency Translation | Foreign Currency Translation The functional currency of our non-U.S. subsidiaries is the U.S. Dollar, therefore all gains and losses on currency transactions are expensed as incurred. | |
Income Taxes | Income Taxes The Company uses the liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities. Valuation allowances are provided if it is more likely than not that some or all of the deferred tax assets will not be realized. The Company accounts for uncertainty of income taxes based on a “more-likely-than-not” threshold for the recognition and de-recognition of tax positions, which includes the accounting for interest and penalties relating to tax positions. | |
Net Loss Per Share | Net Loss Per Share Basic net loss per share attributable to common stockholders is calculated by dividing the net loss attributable to common stockholders for the period, defined as net loss minus the accretion of dividends on redeemable convertible preferred stock, by the weighted-average number of shares of common stock outstanding during the period, without consideration of potentially dilutive securities. Diluted earnings per share includes the dilutive effect of common stock equivalents and is calculated using the weighted-average number of common stock and the common stock equivalents outstanding during the reporting period. Diluted earnings per share for the years ended December 31, 2015, 2016 and 2017 excluded common stock equivalents because their inclusion would be anti-dilutive or would decrease the reported loss per share. Our incentive stock units have the right to receive non-forfeitable dividends on an equal basis with common stock and therefore are considered participating securities that must be included in the calculation of net loss per share using the two-class method. Under the two-class method, basic and diluted net loss per share is determined by calculating net loss per share for common stock and participating securities based on the cash dividends paid and participation rights in undistributed earnings. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Schedule of Cost and Accumulated Amortization of Intangible Assets | Total cost and accumulated amortization of intangible assets is comprised of the following: Weighted Average Useful Life As of December 31, 2017 June 30, 2018 (In years) (In thousands) Intangible assets, net Customer lists 15 $ 42,500 $ 42,500 Developed technology 9.6 42,000 42,000 Trade names and trademarks 17 24,500 24,500 Order backlog 1.5 1,100 1,100 Non-competition agreements and related items 4.4 810 810 Total intangible assets 110,910 110,910 Less: Accumulated amortization (29,725 ) (34,137 ) Total intangible assets, net $ 81,185 $ 76,773 | |
Summary of Amortization Expense Included in Condensed Consolidated Statements of Operations | Amortization expense of intangible assets was $4.4 million for the six months ended June 30, 2017, and was $4.4 million for the six months ended June 30, 2018. Amortization expense is included in the condensed consolidated statements of operations for the six months ended June 30, 2017 and 2018 as follows: Six Months Ended June 30, 2017 2018 (In thousands) Cost of revenue—license $ 2,016 $ 2,016 Cost of revenue—subscription 192 192 Research and development 81 68 Sales and marketing 2,139 2,136 Total amortization of acquired intangibles $ 4,428 $ 4,412 | Total cost and amortization of intangible assets comprised of the following: As of December 31, Weighted Average 2016 2017 (In years) (In thousands) Intangible assets, net Customer lists 15 $ 42,500 $ 42,500 Developed technology 9.6 42,000 42,000 Trade names and trademarks 17 24,500 24,500 Order backlog 1.5 1,100 1,100 Non-competition agreements and related items 4.4 810 810 Total intangible assets 110,910 110,910 Less: Accumulated amortization (20,897 ) (29,725 ) Total intangible assets, net $ 90,013 $ 81,185 |
Net Loss Per Share Attributab28
Net Loss Per Share Attributable to Common Shareholders (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | ||
Schedule of Calculation of Basic and Diluted Net Loss Per Share | The following table sets forth the calculation of basic and diluted net loss per share during the periods presented: Six Months Ended June 30, 2017 2018 (In thousands, except share data) Numerator: Net loss $ (6,587 ) $ (11,614 ) Deemed dividends to preferred stockholders (12,590 ) — Net loss attributable to common shareholders $ (19,177 ) $ (11,614 ) Denominator: Weighted average shares outstanding Basic and diluted 47,567,048 85,984,103 Net loss attributable to common shareholders Basic and diluted $ (0.40 ) $ (0.14 ) | The following table sets forth the calculation of basic and diluted net loss per share during the periods presented: Year Ended December 31, 2015 2016 2017 (In thousands, except share data) Numerator: Net loss $ (10,807 ) $ (3,173 ) $ (7,592 ) Deemed dividends to preferred stockholders (21,597 ) (23,618 ) (21,129 ) Net loss attributable to common shareholders $ (32,404 ) $ (26,791 ) $ (28,721 ) Denominator: Weighted average shares outstanding used in computing net loss per share Basic 43,929,159 45,933,218 52,339,804 Diluted 43,929,159 45,933,218 52,339,804 Net loss attributable to common shareholders Basic $ (0.74 ) $ (0.58 ) $ (0.55 ) Diluted $ (0.74 ) $ (0.58 ) $ (0.55 ) |
Weighted Average Outstanding Shares of Common Stock Equivalents Excluded from the Computation of the Diluted Net Loss per Share | The following weighted average outstanding shares of common stock equivalents were excluded from the computation of the diluted net loss per share attributable to common shareholders for the periods presented because their effect would have been anti-dilutive. For the period prior to our initial public offering, convertible preferred stock is not included in this computation as it was contingently convertible based upon a future event. Six Months Ended June 30, 2017 2018 Stock options to purchase common stock 2,194,152 3,391,821 RSUs issued and outstanding — 1,189,385 Non-vested incentive units 3,309,772 1,288,022 Total 5,503,924 5,869,228 | The following weighted average outstanding shares of common stock equivalents were excluded from the computation of the diluted net loss per share attributable to common stockholders for the periods presented because their effect would have been anti-dilutive, and the convertible preferred stock is not included in these calculations as it is contingently convertible based upon a future event (see Note 10): Year Ended December 31, 2015 2016 2017 Convertible preferred stock on an as-if converted basis Stock options to purchase common stock 495,315 1,799,632 2,402,225 RSUs issued and outstanding — — 105,404 Non-vested incentive units 7,307,787 4,931,760 2,915,228 Total 7,803,102 6,731,392 5,422,857 |
Summary of Significant Accoun29
Summary of Significant Accounting Policies (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Accounting Policies [Abstract] | ||
Summary of Cash, Cash Equivalents and Restricted Cash | The Company is required to maintain a small amount of restricted cash to guarantee rent payments in a foreign subsidiary. As of December 31, 2016 2017 (In thousands) Cash and cash equivalents per balance sheet $ 18,214 $ 116,049 Restricted cash per balance sheet 58 78 Cash, cash equivalents and restricted cash per cash flow $ 18,272 $ 116,127 | |
Summary of Consolidated Total Revenue by Geography | The following tables sets forth the Company’s consolidated total revenue by geography: Six Months Ended June 30, 2017 2018 (In thousands) United States $ 53,020 $ 67,195 EMEA (1) 13,853 24,952 Rest of the World (1) 7,853 12,127 Total revenue $ 74,726 $ 104,274 (1) No single country represented more than 10% of our consolidated revenue. | The following tables sets forth the Company’s consolidated total revenue by geography: Year Ended December 31, 2015 2016 2017 (In thousands) United States $ 63,440 $ 92,116 $ 134,676 EMEA (1) 20,770 25,668 33,097 Rest of the World (1) 11,146 14,628 18,283 Total revenue $ 95,356 $ 132,412 $ 186,056 (1) No single country represented more than 10% of consolidated revenue |
Stock Option Plans and Stock-30
Stock Option Plans and Stock-Based Compensation (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Summary of Fair Value of Stock Options Estimated by Using Weighted Average Assumptions | The fair value for the Company’s stock options granted during the year ended June 30, 2017 and 2018 was estimated at the date of grant using a Black Scholes option-pricing model using the following weighted average assumptions: June 30, 2017 June 30, 2018 Expected dividend rate 0% 0% Expected volatility 49% 40.0% - 41.1% Risk-free interest rate 2.11% - 2.11% 2.63% - 2.91% Expected term (in years) 6.25 6.25 | The fair value for the Company’s stock options granted during the year ended December 31, 2015 was estimated at the date of grant using a Black Scholes option-pricing model with the following assumptions: Time Based Performance Expected dividend rate 0% 0% Expected volatility 48.4% 48.4% Risk-free interest rate 1.55% - 1.95% 1.68% - 1.93% Expected term (in years) 6.25 5.5 - 6.25 The fair value for the Company’s stock options granted during the year ended December 31, 2016 was estimated at the date of grant using a Black Scholes option-pricing model with the following assumptions: Time Based Performance Expected dividend rate 0% 0% Expected volatility 49% 49% Risk-free interest rate 1.31% - 2.24% 1.27% - 2.16% Expected term (in years) 5.5 - 6.25 5.75 - 6.4 The fair value for the Company’s stock options granted during the year ended December 31, 2017 was estimated at the date of grant using a Black Scholes option-pricing model with the following assumptions: Time Based Performance Expected dividend rate 0% 0% Expected volatility 40.9% - 49% 40.9% - 49% Risk-free interest rate 1.96% - 2.18% 1.96% - 2.18% Expected term (in years) 6.25 - 6.25 5.5 - 6.29 |
Summary of Stock Option Activity | The following table summarizes option activity under the 2017 Plan and related information: Number of Options Weighted Average Exercise Price (per share) Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value Balances at December 31, 2017 3,500,075 $ 5.43 8.8 31,784,488 Granted 50,879 $ 20.81 Exercised (365,111 ) $ 2.45 Forfeited (82,907 ) $ 2.78 Balances at June 30, 2018 3,102,936 $ 6.11 8.3 57,188,986 Options vested and expected to vest at June 30, 2018 3,102,936 $ 6.11 8.3 57,188,986 Options vested and exercisable at June 30, 2018 830,912 $ 2.33 7.3 18,455,289 | The following table summarizes activity for service vesting stock options during the years ended December 31, 2015, 2016 and 2017: Number Weighted Weighted Aggregate Balances at December 31, 2014 — $ — Granted 1,349,782 $ 2.38 Forfeited (23,333 ) $ 2.42 Balances at December 31, 2015 1,326,449 $ 2.38 9.7 Options vested and expected to vest at December 31, 2015 1,326,449 $ 2.38 9.7 Options vested and exercisable at December 31, 2015 10,781 $ 2.42 9.7 Balances at December 31, 2015 1,326,449 $ 2.38 9.7 Granted 419,839 $ 1.69 Exercised (6,568 ) $ 1.77 $ 2,950 Forfeited (117,602 ) $ 2.31 Balances at December 31, 2016 1,622,118 $ 2.21 8.9 $ 1,546,599 Options vested and expected to vest at December 31, 2016 1,622,118 $ 2.21 8.9 $ 1,546,599 Options vested and exercisable at December 31, 2016 416,265 $ 2.36 8.7 $ 340,334 Balances at December 31, 2016 1,622,118 $ 2.21 8.9 $ 1,546,599 Granted 1,592,370 $ 9.54 Conversion of performance to service based 591,892 $ 2.53 Exercised (152,330 ) $ 2.22 $ 1,871,041 Forfeited (153,975 ) $ 2.21 Balances at December 31, 2017 3,500,075 $ 5.43 8.8 $ 31,784,488 Options vested and expected to vest at December 31, 2017 3,500,075 $ 5.43 8.8 $ 31,784,488 Options vested and exercisable at December 31, 2017 926,614 $ 2.28 7.9 $ 11,324,729 |
Summary of Stock-Based Compensation Expense | Stock-based compensation expense, which includes stock options, restricted stock units and incentive units, was recognized as follows: Six Months Ended June 30, 2017 2018 (In thousands) Cost of revenue—subscription $ 18 $ 374 Cost of revenue—services and other 38 722 Research and development 65 1,293 General and administrative 75 4,035 Sales and marketing 147 2,831 Total stock-based compensation expense $ 343 $ 9,255 | Stock-based compensation expense, which includes stock options, restricted stock units and incentive units, recognized was as follows: Year Ended December 31, 2015 2016 2017 (In thousands) Cost of revenue—subscription $ 12 $ 34 $ 133 Cost of revenue—services and other 20 63 458 Research and development 62 118 658 General and administrative 28 96 2,062 Sales and marketing 124 257 1,203 Total stock-based compensation $ 246 $ 568 $ 4,514 |
summary of Non-vested Service Vesting Stock Options | The following table summarizes the status of the Company’s non-vested service vesting stock options for the years ended December 31, 2015, 2016 and 2017: Number Weighted Non-vested at December 31, 2014 — $ — Granted 1,349,782 $ 1.16 Vested (10,781 ) $ 1.17 Forfeited (23,333 ) $ 1.17 Non-vested at December 31, 2015 1,315,668 $ 1.15 Granted 401,094 $ 0.81 Vested (382,364 ) $ 1.16 Forfeited (117,602 ) $ 1.12 Non-vested at December 31, 2016 1,216,796 $ 1.05 Granted 1,592,370 $ 4.13 Conversion of vested performance to time based 322,988 $ 11.95 Vested (437,829 ) $ 1.04 Forfeited (111,076 ) $ 1.07 Non-vested at December 31, 2017 2,583,249 $ 4.32 | |
Summary of Non-vested Performance Vesting Stock Options | A summary of the status of the Company’s non-vested performance vesting stock options as of December 31, 2017, and changes during the year ended December 31, 2015, 2016 and 2017 are presented below: Number Weighted Non-vested at December 31, 2014 — Granted 322,846 $ 1.12 Vested (33,613 ) $ 1.12 Non-vested at December 31, 2015 289,233 $ 1.11 Granted 101,427 $ 0.84 Vested (106,903 ) $ 0.99 Forfeited (6,563 ) $ 1.18 Non-vested at December 31, 2016 277,194 $ 1.01 Granted 187,469 $ 1.55 Vested (141,675 ) $ 1.54 Conversion of vested performance to service based (322,988 ) $ 11.95 Non-vested at December 31, 2017 — $ — | |
Summary of Restricted Stock Unit Activity | The following provides a summary of the restricted stock unit activity for the Company for the year ended December 31, 2017: Number of Weighted Aggregate Balances at December 31, 2016 — Granted 897,284 Vested — Forfeited — Balances at December 31, 2017 897,284 9.9 $ 186 Units vested and expected to vest at December 31, 2017 897,284 9.9 $ 186 | |
Performance Shares | ||
Summary of Stock Option Activity | The following table summarizes activity of performance vesting stock options for the years ended December 31, 2015, 2016 and 2017: Number Weighted Weighted Aggregate Balances at December 31, 2014 — $ — Granted 322,846 $ 2.32 Balances at December 31, 2015 322,846 $ 2.32 9.7 Options vested and expected to vest at December 31, 2015 322,846 $ 2.32 9.7 Options vested and exercisable at December 31, 2015 33,613 $ 2.33 9.5 Balances at December 31, 2015 322,846 $ 2.32 9.7 Granted 101,427 $ 1.77 Exercised (4,000 ) $ 1.36 $ 1,942 Forfeited (7,500 ) $ 2.42 Balances at December 31, 2016 412,773 $ 2.19 8.9 $ 401,616 Options vested and expected to vest at December 31, 2016 412,773 $ 2.19 8.9 $ 401,616 Options vested and exercisable at December 31, 2016 142,391 $ 2.22 8.8 $ 134,871 Balances at December 31, 2016 412,773 $ 2.19 8.9 $ 401,616 Granted 187,469 $ 3.27 Exercised (8,350 ) $ 2.38 $ 101,178 Conversion of shares (591,892 ) $ 2.53 8.5 Options vested and expected to vest at December 31, 2017 — $ — — $ — Options vested and exercisable at December 31, 2017 — $ — — $ — | |
Incentive Unit Plan | ||
summary of Non-vested Service Vesting Stock Options | A summary of the Company’s non-vested incentive unit activity as of December 31, 2017, changes during the year ended December 31, 2015, 2016 and 2017 are presented below: Number Weighted- Non-vested at December 31, 2014 7,080 $ 0.0517 Granted 170 $ 0.0517 Vested (1,193 ) $ 0.0517 Forfeited (531 ) $ 0.0517 Non-vested at December 31, 2015 5,526 $ 0.0517 Granted (1,677 ) $ 0.0517 Vested 7 $ 0.0517 Forfeited (20 ) $ 0.0517 Other (1) 291 $ 0.0517 Non-vested at December 31, 2016 4,127 $ 0.0517 Vested (1,846 ) $ 0.0517 Repurchased — $ — Forfeited (39 ) $ 0.0517 Non-vested at December 31, 2017 2,242 $ 0.0517 (1) The non-vested total from December 31, 2016 has been adjusted to include incentive units previously issued. | |
Summary of Non-Vested Incentive activity | A summary of the Company’s non-vested incentive unit activity as of December 31, 2017 is as follows: Number of Weighted Non-vested at December 31, 2016 — $ — Granted 897,284 12.18 Vested — — Forfeited — — Non-vested at December 31, 2017 897,284 $ 12.18 |
Business Combination (Tables)
Business Combination (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Summary of Fair Values of Assets Acquired and Liabilities Assumed at Acquisition Date | The values outlined below represent the Company’s estimates of fair value as of the acquisition date: (In thousands) Cash and cash equivalents $ 458 Accounts receivable 423 Prepaid expenses and other assets 34 Deferred revenue contracts 162 Goodwill 10,485 Intangible assets 5,810 Total assets $ 17,372 Accounts payable $ (91 ) Accrued expenses (250 ) Deferred tax liability (1,202 ) Deferred revenue (162 ) Total liabilities $ (1,705 ) Total consideration $ 15,667 Total consideration, net of cash acquired $ 15,209 |
Summary of Acquired Finite-Lived Intangible Assets | the following table summarizes the fair value estimates of the identifiable intangible assets and their estimated useful lives: Estimated Weighted Developed technology $ 5,000 7 Non-competition agreements and related items 810 4.4 Total acquired intangible assets other than goodwill $ 5,810 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | The cost and accumulated depreciation and amortization of property and equipment are as follows: As of December 31, 2016 2017 (In thousands) Property and equipment, net Computer equipment $ 2,618 $ 4,559 Other assets 528 833 Total property and equipment 3,146 5,392 Less: accumulated depreciation (1,291 ) (2,374 ) Total property and equipment, net $ 1,855 $ 3,018 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Estimated Future Amorization of Intangible Aseets | The total estimated future amortization expense of these intangible assets as of December 31, 2017 is as follows: (In thousands) Year ending December 31, 2018 $ 8,825 2019 8,825 2020 8,825 2021 8,825 2022 8,825 Thereafter 37,060 Total amortization expense $ 81,185 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Lease Payments | Future minimum annual lease payments under these non-cancelable operating leases, inclusive of sublease proceeds, as of December 31, 2017 are as follows: (In thousands) Year ending December 31, 2018 $ 2,785 2019 3,004 2020 4,445 2021 4,997 2022 4,921 Thereafter 32,127 Total minimum lease payments $ 52,279 |
Line of Credit and Long-Term 35
Line of Credit and Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Line Of Credit Facility [Abstract] | |
Schedule of Aggregate Maturities of Long-Term Debt | Aggregate maturities of the Company’s debt at December 31, 2017 are as follows: (In thousands) 2018 $ — 2019 116 2020 — 2021 70,000 2022 — Total debt $ 70,116 Less: deferred financing costs (1,787 ) Long-term debt, net $ 68,329 Less: current portion — Long term debt $ 68,329 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Schedule of Redeemable Convertible Preferred Stock | Redeemable convertible preferred stock consisted of the following (in thousands, except share amounts): As of Redeemable Date Issued Original Shares Shares Liquidation Dividend December 31, 2016 Series A September 2014 $ 1,000 500,000 223,987 $ 275,463 9 % December 31, 2017 Series A September 2014 $ 1,000 — — $ — 0 % |
Accrued Expenses and Other Li37
Accrued Expenses and Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses | Accrued expenses consisted of the following: As of December 31, 2016 2017 (In thousands) Commissions $ 4,943 $ 8,559 Bonus 2,895 5,063 Payroll and related benefits 988 2,640 Interest 794 34 Partner and customer programs 615 1,234 Sales and other taxes 615 1,373 Employee travel expenses 213 369 Consulting and professional services 188 339 Other 1,854 3,025 Total $ 13,105 $ 22,636 |
Prepayments and Other Assets (T
Prepayments and Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Current Portion of Prepayments and Other Current Assets | The current portion of prepayments and other current assets consisted of the following: As of December 31, 2016 2017 (In thousands) Prepaid expenses $ 2,783 $ 4,376 Prepaid insurance 447 660 Prepaid commissions 3,753 2,931 Other 711 2,046 Total $ 7,694 $ 10,013 |
Schedule of Other Non-current Assets | Other non-current assets consisted of the following: As of December 31, 2016 2017 (In thousands) Prepaid expenses $ 546 $ 3,210 Deposits 115 222 Note receivable 319 — Other — 110 Total $ 980 $ 3,542 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Summary of Consolidated Loss Before Provision for Income Taxes | The following table presents consolidated loss before provision for income taxes as follows: Year Ended December 31, 2015 2016 2017 (In thousands) Domestic $ (14,727 ) $ (2,435 ) $ (2,780 ) Foreign 1,306 (2,723 ) (2,519 ) Total loss before income taxes $ (13,421 ) $ (5,158 ) $ (5,299 ) |
Summary of Provision for Income Taxes consisted | The provision for income taxes consisted of: Year Ended December 31, 2015 2016 2017 (In thousands) Current Federal $ — $ — $ 293 State 8 21 189 Foreign 704 531 1,997 Total current 712 552 2,479 Deferred Federal (3,222 ) (1,315 ) (293 ) State (99 ) (118 ) 202 Foreign (5 ) (1,104 ) (95 ) Total deferred (3,326 ) (2,537 ) (186 ) (Benefit) provision $ (2,614 ) $ (1,985 ) $ 2,293 |
Net Tax Effects of Temporary Differences between the Carring Amount of Significant Components of Deferred Tax Assets and Deferred Tax Liab | Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred taxes are as follows: As of December 31, 2016 2017 (In thousands) Deferred tax assets: Research and development and other credits $ 5,235 $ 6,187 Net operating loss carryforward 26,867 14,795 Charitable contributions 11 — Deferred revenue 1,115 1,355 Stock compensation 17 125 Accrued expense 1,346 1,323 Depreciable and amortizable assets 368 29 Other — 228 Total deferred tax assets 34,959 24,042 Deferred tax liabilities: Prepaid expenses (1,389 ) (1,249 ) Intangibles (32,751 ) (17,232 ) Total deferred tax assets, net 819 5,561 Less valuation allowance for deferred tax assets (486 ) (5,297 ) Net deferred tax assets $ 333 $ 264 |
Difference between Federal Income Tax Rate and Effective Income Tax Rate | The following table reconciles the Company’s effective tax rate to the federal statutory tax rate: Year Ended December 31, 2015 2016 2017 U.S. federal taxes at statutory rate 34.0 % 34.0 % 34.0 % Foreign tax rate differentials (0.7 ) (11.8 ) (9.1 ) Research and development credit 1.8 18.2 17.8 Foreign tax credit 3.9 4.7 18.3 Stock options (1.1 ) (3.8 ) (23.6 ) Permanent differences and other (5.3 ) (7.8 ) (14.4 ) State taxes, net of federal benefit 2.8 (0.1 ) (4.0 ) Change in state rate (11.6 ) 7.3 (1.9 ) Change in other valuation allowance due to operations 0.4 (1.9 ) (58.4 ) Other 4.7 (0.3 ) (2.0 ) Total income tax benefit (expense) 19.5 % 38.5 % (43.3 )% |
Reconciliation of Unrecognized Tax Benefits | The reconciliation of unrecognized tax benefits at the beginning and end of the year is as follows (in thousands): Balance at December 31, 2014 $ 320 Additions based on tax positions related to prior year 366 Balance at December 31, 2015 $ 686 Additions based on tax positions related to prior year 197 Balance at December 31, 2016 883 Additions based on tax positions related to prior year 507 Additions based on tax positions related to current year 473 Balance at December 31, 2017 $ 1,863 |
Geographic information and ma40
Geographic information and major customers (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Geographic information and major customers | The following are a summary of consolidated revenues within geographic areas: Year Ended December 31, 2015 2016 2017 (In thousands) United States $ 63,440 $ 92,116 $ 134,676 EMEA (1) 20,770 25,668 33,097 Rest of the World (1) 11,146 14,628 18,283 Total revenue $ 95,356 $ 132,412 $ 186,056 (1) No single country represented more than 10% of consolidated revenue |
Summary of Significant Accoun41
Summary of Significant Accounting Policies - Summary of Consolidated Total Revenue by Geography (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Summary of Significant Accounting Policies [Line Items] | |||||
Total revenue | $ 104,274 | $ 74,726 | $ 186,056 | $ 132,412 | $ 95,356 |
United States | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Total revenue | 67,195 | 53,020 | 134,676 | 92,116 | 63,440 |
EMEA | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Total revenue | 24,952 | 13,853 | 33,097 | 25,668 | 20,770 |
Rest of the World | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Total revenue | $ 12,127 | $ 7,853 | $ 18,283 | $ 14,628 | $ 11,146 |
Goodwill and Intangible Asset42
Goodwill and Intangible Assets - Additional Information (Details) - USD ($) | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |||||
Goodwill | $ 219,377,000 | $ 219,400,000 | $ 219,377,000 | $ 219,377,000 | |
Goodwill, acquired during period | 0 | 0 | 0 | 0 | |
Goodwill, impairment loss | 0 | 0 | 0 | 0 | $ 0 |
Total amortization of acquired intangibles | 4,412,000 | 4,428,000 | 8,800,000 | 9,100,000 | 9,100,000 |
Impairment of intangible assets | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Goodwill and Intangible Asset43
Goodwill and Intangible Assets - Schedule of Cost and Accumulated Amortization of Intangible Assets (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Finite Lived Intangible Assets [Line Items] | |||
Intangible assets, gross | $ 110,910 | $ 110,910 | $ 110,910 |
Less: Accumulated amortization | (34,137) | (29,725) | (20,897) |
Total intangible assets, net | $ 76,773 | $ 81,185 | $ 90,013 |
Customer Lists | |||
Finite Lived Intangible Assets [Line Items] | |||
Weighted Average Useful Life | 15 years | 15 years | 15 years |
Intangible assets, gross | $ 42,500 | $ 42,500 | $ 42,500 |
Developed Technology | |||
Finite Lived Intangible Assets [Line Items] | |||
Weighted Average Useful Life | 9 years 7 months 6 days | 9 years 7 months 6 days | 9 years 7 months 6 days |
Intangible assets, gross | $ 42,000 | $ 42,000 | $ 42,000 |
Trade Names and Trademarks | |||
Finite Lived Intangible Assets [Line Items] | |||
Weighted Average Useful Life | 17 years | 17 years | 17 years |
Intangible assets, gross | $ 24,500 | $ 24,500 | $ 24,500 |
Order Backlog | |||
Finite Lived Intangible Assets [Line Items] | |||
Weighted Average Useful Life | 1 year 6 months | 1 year 6 months | 1 year 6 months |
Intangible assets, gross | $ 1,100 | $ 1,100 | $ 1,100 |
Non-competition Agreements and Related Items | |||
Finite Lived Intangible Assets [Line Items] | |||
Weighted Average Useful Life | 4 years 4 months 24 days | 4 years 4 months 24 days | 4 years 4 months 24 days |
Intangible assets, gross | $ 810 | $ 810 | $ 810 |
Goodwill and Intangible Asset44
Goodwill and Intangible Assets - Summary of Amortization Expense Included in Condensed Consolidated Statements of Operations (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Finite Lived Intangible Assets [Line Items] | |||||
Total amortization of acquired intangibles | $ 4,412 | $ 4,428 | $ 8,800 | $ 9,100 | $ 9,100 |
Cost of Revenue – License | |||||
Finite Lived Intangible Assets [Line Items] | |||||
Total amortization of acquired intangibles | 2,016 | 2,016 | 4,000 | 4,000 | 3,700 |
Cost of Revenue – Subscription | |||||
Finite Lived Intangible Assets [Line Items] | |||||
Total amortization of acquired intangibles | 192 | 192 | 400 | 400 | 400 |
Research and Development | |||||
Finite Lived Intangible Assets [Line Items] | |||||
Total amortization of acquired intangibles | 68 | 81 | 100 | 200 | 0 |
Sales and Marketing | |||||
Finite Lived Intangible Assets [Line Items] | |||||
Total amortization of acquired intangibles | $ 2,136 | $ 2,139 | $ 4,300 | $ 4,400 | $ 5,000 |
Stock Option Plans and Stock-45
Stock Option Plans and Stock-Based Compensation - Summary of Stock Option Activity (Details) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of Options, Beginning balances | 3,500,075 | 1,622,118 | 1,326,449 | |
Number of Options, Granted | 1,592,370 | 419,839 | 1,349,782 | |
Number of Options, Exercised | (152,330) | (6,568) | ||
Number of Options, Forfeited | (153,975) | (117,602) | (23,333) | |
Number of Options, Ending balances | 3,500,075 | 1,622,118 | 1,326,449 | |
Number of Options, Options vested and expected to vest | 3,500,075 | 1,622,118 | 1,326,449 | |
Number of Options, Options vested and exercisable | 926,614 | 416,265 | 10,781 | |
Weighted Average Exercise Price Per share, Beginning balances | $ 5.43 | $ 2.21 | $ 2.38 | |
Weighted Average Exercise Price (per share), Granted | 9.54 | 1.69 | $ 2.38 | |
Weighted Average Exercise Price (per share), Exercised | 2.22 | 1.77 | ||
Weighted Average Exercise Price (per share), Forfeited | 2.21 | 2.31 | 2.42 | |
Weighted Average Exercise Price (per share), Ending balances | 5.43 | 2.21 | 2.38 | |
Weighted Average Exercise Price (per share), Options vested and expected to vest | 5.43 | 2.21 | 2.38 | |
Weighted Average Exercise Price (Per share), Options vested and exercisable | $ 2.28 | $ 2.36 | $ 2.42 | |
Weighted Average Remaining Contractual Term (years) | 8 years 9 months 18 days | 8 years 10 months 25 days | 9 years 8 months 12 days | |
Weighted Average Remaining Contractual Term (years), Options vested and expected to vest | 8 years 9 months 18 days | 8 years 10 months 25 days | 9 years 8 months 12 days | |
Weighted Average Remaining Contractual Term (years), Options vested and exercisable | 7 years 10 months 25 days | 8 years 10 months 25 days | 9 years 8 months 12 days | |
Aggregate Intrinsic Value, Balances | $ 31,784,488 | $ 1,546,599 | ||
Aggregate Intrinsic Value, Options vested and expected to vest | 31,784,488 | 1,546,599 | ||
Aggregate Intrinsic Value, Options vested and exercisable | $ 11,324,729 | 340,334 | ||
Conversion of performance to service based | 591,892 | |||
Weighted Average Exercise Price, Conversion of shares | $ 2.53 | |||
Aggregate Intrinsic Value, Exercised | $ 1,871,041 | $ 2,950 | ||
2017 Long Term Incentive Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of Options, Beginning balances | 3,500,075 | |||
Number of Options, Granted | 50,879 | |||
Number of Options, Exercised | (365,111) | |||
Number of Options, Forfeited | (82,907) | |||
Number of Options, Ending balances | 3,102,936 | 3,500,075 | ||
Number of Options, Options vested and expected to vest | 3,102,936 | |||
Number of Options, Options vested and exercisable | 830,912 | |||
Weighted Average Exercise Price Per share, Beginning balances | $ 5.43 | |||
Weighted Average Exercise Price (per share), Granted | 20.81 | |||
Weighted Average Exercise Price (per share), Exercised | 2.45 | |||
Weighted Average Exercise Price (per share), Forfeited | 2.78 | |||
Weighted Average Exercise Price (per share), Ending balances | 6.11 | $ 5.43 | ||
Weighted Average Exercise Price (per share), Options vested and expected to vest | 6.11 | |||
Weighted Average Exercise Price (Per share), Options vested and exercisable | $ 2.33 | |||
Weighted Average Remaining Contractual Term (years) | 8 years 3 months 18 days | 8 years 9 months 18 days | ||
Weighted Average Remaining Contractual Term (years), Options vested and expected to vest | 8 years 3 months 18 days | |||
Weighted Average Remaining Contractual Term (years), Options vested and exercisable | 7 years 3 months 18 days | |||
Aggregate Intrinsic Value, Balances | $ 57,188,986 | $ 31,784,488 | ||
Aggregate Intrinsic Value, Options vested and expected to vest | 57,188,986 | |||
Aggregate Intrinsic Value, Options vested and exercisable | $ 18,455,289 |
Stock Option Plans and Stock-46
Stock Option Plans and Stock-Based Compensation - Summary of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Stock-based compensation expense | $ 9,255 | $ 343 | $ 4,514 | $ 568 | $ 246 |
Cost of Revenue - Subscription | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Stock-based compensation expense | 374 | 18 | 133 | 34 | 12 |
Cost of Revenue - Services and Other | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Stock-based compensation expense | 722 | 38 | 458 | 63 | 20 |
Research and Development | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Stock-based compensation expense | 1,293 | 65 | 658 | 118 | 62 |
General and Administrative Expenses | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Stock-based compensation expense | 4,035 | 75 | 2,062 | 96 | 28 |
Sales and Marketing | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Stock-based compensation expense | $ 2,831 | $ 147 | $ 1,203 | $ 257 | $ 124 |
Net Loss Per Share Attributab47
Net Loss Per Share Attributable to Common Shareholders - Weighted Average Outstanding Shares of Common Stock Equivalents Excluded from the Computation of the Diluted Net Loss per Share (Details) - shares | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||||
Weighted average outstanding shares of common stock equivalents excluded from the computation of diluted net loss per share | 5,869,228 | 5,503,924 | 5,422,857 | 6,731,392 | 7,803,102 |
Stock Options | |||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||||
Weighted average outstanding shares of common stock equivalents excluded from the computation of diluted net loss per share | 3,391,821 | 2,194,152 | 2,402,225 | 1,799,632 | 495,315 |
RSUs Issued and Outstanding | |||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||||
Weighted average outstanding shares of common stock equivalents excluded from the computation of diluted net loss per share | 1,189,385 | 105,404 | |||
Non-Vested Incentive Units | |||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||||
Weighted average outstanding shares of common stock equivalents excluded from the computation of diluted net loss per share | 1,288,022 | 3,309,772 | 2,915,228 | 4,931,760 | 7,307,787 |
Organization and Description 48
Organization and Description of Business - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Date of incorporation | Aug. 8, 2014 |
State of incorporation | Delaware |
Summary of Significant Accoun49
Summary of Significant Accounting Policies - Summary of Cash, Cash Equivalents and Restricted Cash (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents [Abstract] | ||||||
Cash and cash equivalents per balance sheet | $ 81,809 | $ 116,049 | $ 18,214 | |||
Restricted cash per balance sheet | 78 | 58 | ||||
Cash, cash equivalents and restricted cash per cash flow | $ 81,929 | $ 116,127 | $ 20,960 | $ 18,272 | $ 14,949 | $ 17,848 |
Summary of Significant Accoun50
Summary of Significant Accounting Policies - Additional Information (Detail) $ in Thousands | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2018USD ($)Segment | Dec. 31, 2017USD ($)Segment | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Jun. 30, 2017USD ($) | Dec. 31, 2014USD ($) | |
Accounting Policies [Line Items] | ||||||
Number of operating segments | Segment | 1 | 1 | ||||
Cash, cash equivalents and restricted cash | $ 81,929 | $ 116,127 | $ 18,272 | $ 14,949 | $ 20,960 | $ 17,848 |
Accumulated deficit | $ (36,834) | (25,220) | (17,628) | |||
Advertising Expense | $ 6,000 | $ 4,200 | 2,600 | |||
Minimum | ||||||
Accounting Policies [Line Items] | ||||||
Property and equipment, estimated useful life | 3 years | |||||
Maximum | ||||||
Accounting Policies [Line Items] | ||||||
Property and equipment, estimated useful life | 5 years | |||||
ASU 2015-03 | Reclassification of Other Assets to Other Long-Term Liabilities | ||||||
Accounting Policies [Line Items] | ||||||
Other assets | (500) | |||||
Other long-term liabilities | $ 500 |
Goodwill - Additional Informati
Goodwill - Additional Information (Detail) - USD ($) | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |||||
Goodwill | $ 219,377,000 | $ 219,400,000 | $ 219,377,000 | $ 219,377,000 | |
Goodwill, acquired during period | 0 | 0 | 0 | 0 | |
Goodwill, impairment loss | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Schedule of Cost and Amortizati
Schedule of Cost and Amortization of Intangible Assets (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Finite Lived Intangible Assets [Line Items] | |||
Intangible assets, gross | $ 110,910 | $ 110,910 | $ 110,910 |
Less: Accumulated amortization | (34,137) | (29,725) | (20,897) |
Total intangible assets, net | $ 76,773 | $ 81,185 | $ 90,013 |
Customer Lists | |||
Finite Lived Intangible Assets [Line Items] | |||
Weighted Average Useful Life | 15 years | 15 years | 15 years |
Intangible assets, gross | $ 42,500 | $ 42,500 | $ 42,500 |
Developed Technology | |||
Finite Lived Intangible Assets [Line Items] | |||
Weighted Average Useful Life | 9 years 7 months 6 days | 9 years 7 months 6 days | 9 years 7 months 6 days |
Intangible assets, gross | $ 42,000 | $ 42,000 | $ 42,000 |
Trade Names and Trademarks | |||
Finite Lived Intangible Assets [Line Items] | |||
Weighted Average Useful Life | 17 years | 17 years | 17 years |
Intangible assets, gross | $ 24,500 | $ 24,500 | $ 24,500 |
Order Backlog | |||
Finite Lived Intangible Assets [Line Items] | |||
Weighted Average Useful Life | 1 year 6 months | 1 year 6 months | 1 year 6 months |
Intangible assets, gross | $ 1,100 | $ 1,100 | $ 1,100 |
Non-competition Agreements and Related Items | |||
Finite Lived Intangible Assets [Line Items] | |||
Weighted Average Useful Life | 4 years 4 months 24 days | 4 years 4 months 24 days | 4 years 4 months 24 days |
Intangible assets, gross | $ 810 | $ 810 | $ 810 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Finite Lived Intangible Assets [Line Items] | |||||
Total amortization of acquired intangibles | $ 4,412 | $ 4,428 | $ 8,800 | $ 9,100 | $ 9,100 |
Impairment of intangible assets | 0 | 0 | 0 | 0 | 0 |
General and Administrative Expenses | |||||
Finite Lived Intangible Assets [Line Items] | |||||
Total amortization of acquired intangibles | 0 | 71 | 64 | ||
Research and Development | |||||
Finite Lived Intangible Assets [Line Items] | |||||
Total amortization of acquired intangibles | 68 | 81 | 100 | 200 | 0 |
Sales and Marketing | |||||
Finite Lived Intangible Assets [Line Items] | |||||
Total amortization of acquired intangibles | 2,136 | 2,139 | 4,300 | 4,400 | 5,000 |
Cost of Revenue – License | |||||
Finite Lived Intangible Assets [Line Items] | |||||
Total amortization of acquired intangibles | 2,016 | 2,016 | 4,000 | 4,000 | 3,700 |
Cost of Revenue – Subscription | |||||
Finite Lived Intangible Assets [Line Items] | |||||
Total amortization of acquired intangibles | $ 192 | $ 192 | $ 400 | $ 400 | $ 400 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |||||
Rent expense under all operating leases | $ 1.9 | $ 1.2 | $ 2.9 | $ 1.8 | $ 1.5 |
Accrued Liabilities [Member] | |||||
Commitments And Contingencies Disclosure [Abstract] | |||||
Deferred rent balance | $ 1.4 | $ 0.2 |
Line of Credit and Long-Term 55
Line of Credit and Long-Term Debt - Additional Information (Detail) - USD ($) $ in Thousands | Jun. 29, 2018 | Jun. 28, 2017 | Aug. 31, 2016 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2017 | Oct. 05, 2017 | Dec. 31, 2014 |
Line Of Credit Facility [Line Items] | |||||||||||
Line of credit outstanding balance | $ 167,500 | $ 120,000 | $ 110,000 | ||||||||
Repayment/prepaid of borrowings outstanding | $ 60,000 | ||||||||||
Prepayment premium percentage | 0.50% | 1.50% | |||||||||
Prepayment premium amount | $ 300 | $ 1,400 | |||||||||
Loss on modification and partial extinguishment of debt | 1,536 | 1,702 | |||||||||
Amortization of debt issuance costs | 200 | $ 300 | 700 | $ 700 | $ 100 | $ 4,500 | |||||
Unamortized debt issuance costs | 400 | $ 700 | 700 | ||||||||
Debt instrument interest rate during the period | 8.00% | 9.00% | |||||||||
Line of credit facility, principal prepayment conditions | The agreement also requires prepayments in the case of certain events including asset sales in excess of $1 million, proceeds from an initial public offering ("IPO"), proceeds in excess of $1 million from an insurance settlement, or proceeds from a new debt agreement. | ||||||||||
Proceeds from loan used to fund preferred stock dividend | 50,400 | ||||||||||
Unamortized debt issuance costs | $ 1,800 | 1,800 | |||||||||
Long-term debt balance | 9,640 | 68,329 | $ 107,344 | 68,329 | |||||||
Term Loan | |||||||||||
Line Of Credit Facility [Line Items] | |||||||||||
Line of credit outstanding balance | 10,000 | 160,000 | $ 115,000 | $ 10,000 | 70,000 | 110,000 | 70,000 | 100,000 | |||
Repayment/prepaid of borrowings outstanding | $ 60,000 | 90,000 | |||||||||
Debt instrument, maturity date | Aug. 16, 2021 | ||||||||||
Debt Instrument, interest payments | quarterly | ||||||||||
Debt instrument interest rate during the period | 6.80% | ||||||||||
Revolving Line of Credit | |||||||||||
Line Of Credit Facility [Line Items] | |||||||||||
Line of credit outstanding balance | 7,500 | $ 5,000 | $ 0 | 0 | $ 0 | 0 | $ 10,000 | ||||
Debt instrument interest rate during the period | 6.80% | ||||||||||
Line of credit | 1,500 | 1,500 | |||||||||
Standby Letters of Credit | |||||||||||
Line Of Credit Facility [Line Items] | |||||||||||
Line of credit outstanding balance | $ 6,000 | ||||||||||
Standby letters of credit | 6,000 | $ 6,000 | |||||||||
Modified Loan and Security Agreements | |||||||||||
Line Of Credit Facility [Line Items] | |||||||||||
Line of credit outstanding balance | $ 50,000 | ||||||||||
Prepayment premium amount | $ 1,400 | ||||||||||
Line of credit facility, principal prepayment conditions | The agreement also requires prepayments in the case of certain events including asset sales in excess of $1.0 million, proceeds from an IPO, proceeds in excess of $1.0 million from an insurance settlement, or proceeds from a new debt agreement. | ||||||||||
London Interbank Offered Rate (LIBOR) | |||||||||||
Line Of Credit Facility [Line Items] | |||||||||||
Percentage of LIBOR floor rate | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% | ||||||
Applicable margin rate | 7.00% | 8.00% | 7.00% | 8.00% | |||||||
London Interbank Offered Rate (LIBOR) | Term Loan | |||||||||||
Line Of Credit Facility [Line Items] | |||||||||||
Percentage of LIBOR floor rate | 2.30% | 1.00% | 1.00% | ||||||||
Applicable margin rate | 4.50% | 4.50% | 3.70% | ||||||||
London Interbank Offered Rate (LIBOR) | Revolving Line of Credit | |||||||||||
Line Of Credit Facility [Line Items] | |||||||||||
Percentage of LIBOR floor rate | 2.30% | 1.00% | 1.00% | ||||||||
Applicable margin rate | 4.50% | 4.50% | 3.50% |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Related Party Transaction [Line Items] | |||||
Prepayments and other current assets | $ 9,784,000 | $ 10,013,000 | $ 7,694,000 | ||
Other non-current assets | 3,328,000 | 3,542,000 | 980,000 | ||
General and Administrative Expenses | |||||
Related Party Transaction [Line Items] | |||||
Consulting fees | $ 625,000 | 1,100,000 | 1,000,000 | $ 750,000 | |
Affiliated Entity | |||||
Related Party Transaction [Line Items] | |||||
Ordinary sales transactions with affiliate | 194,000 | 93,000 | 858,000 | 37,000 | 59,000 |
Purchase transactions with affiliate | 310,000 | $ 559,000 | 942,000 | 313,000 | 39,000 |
Accounts payable | 3,400 | 5,000 | |||
Accounts receivable | $ 0 | 516,000 | 0 | ||
Payable to controlling entity | $ 459,401 | ||||
Payable to controlling entity converted to additional paid in capital | 459,401 | ||||
Non-Executive Employees | |||||
Related Party Transaction [Line Items] | |||||
Personal tax liabilities | 626,000 | ||||
Prepayments and other current assets | 0 | 0 | |||
Other non-current assets | $ 101,000 | $ 319,000 |
Stock Option Plans and Stock-57
Stock Option Plans and Stock-Based Compensation - Additional Information (Detail) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Nov. 30, 2017shares | Dec. 31, 2017USD ($)Employeeshares | Jun. 30, 2018USD ($)$ / sharesshares | Jun. 30, 2017USD ($)$ / shares | Dec. 31, 2017USD ($)Employee$ / sharesshares | Dec. 31, 2016USD ($)Employee$ / sharesshares | Dec. 31, 2015USD ($)Employee$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Purchase of common stock under ESPP | shares | 0 | ||||||
Weighted average grant date fair value per share | $ / shares | $ 9.19 | $ 1.64 | $ 4.32 | $ 0.83 | $ 1.15 | ||
Stock-based compensation expense | $ 9,255,000 | $ 343,000 | $ 4,514,000 | $ 568,000 | $ 246,000 | ||
Total fair value of shares vested | 600,000 | 200,000 | 323,000 | $ 571,000 | $ 50,000 | ||
Total unrecognized compensation expense related to non-vested stock options granted | $ 10,700,000 | $ 9,200,000 | $ 1,400,000 | $ 10,700,000 | |||
Unrecognized compensation expense, weighted-average period of recognition | 3 years 1 month 20 days | 2 years 6 months 3 days | 2 years 9 months 10 days | ||||
Number of shares, granted | shares | 1,592,370 | 401,094 | 1,349,782 | ||||
Share-based compensation intrinsic value of options exercise | $ 1,871,041 | $ 2,950 | |||||
Number of shares, vested | shares | 437,829 | 382,364 | 10,781 | ||||
Expected dividend rate | 0.00% | 0.00% | 0.00% | ||||
Weighted-average grant date fair value | $ / shares | $ 4.13 | $ 0.81 | $ 1.16 | ||||
2015 Stock Incentive Plan | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Shares of common stock reserve for issuance | shares | 250,000 | ||||||
Shares available for issuance | shares | 123,105 | 132,202 | 123,105 | ||||
2015 Stock Option and Grant Plan | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Shares available for issuance | shares | 425,112 | 497,868 | 425,112 | ||||
2017 Long Term Incentive Plan | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Shares of common stock reserve for issuance | shares | 8,856,876 | 8,856,876 | |||||
Number of additional shares authorized for issuance every year on January 1st under share-based compensation plan | shares | 4,428,438 | ||||||
Vesting period | 4 years | ||||||
Shares available for issuance | shares | 6,890,082 | 6,441,482 | 6,890,082 | ||||
Incentive Unit Plan | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Stock-based compensation expense | $ 3,200,000 | $ 60,000 | $ 86,000 | ||||
Total unrecognized compensation expense related to non-vested stock options granted | $ 9,000,000 | $ 4,700,000 | $ 9,000,000 | ||||
Unrecognized compensation expense, weighted-average period of recognition | 6 months | 1 year | |||||
Number of shares, granted | shares | 0 | ||||||
Aggregate intrinsic value, non-vested | $ 32,500,000 | $ 994,173,000 | $ 32,500,000 | 8,500,000 | $ 5,700,000 | ||
Share-based compensation intrinsic value of options exercise | $ 24,400,000 | ||||||
Number of shares, vested | shares | 1,200,000 | ||||||
Compensation related expenses | $ 4,300,000 | $ 21,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Plan Modification, Number of Employees Affected | Employee | 32 | 32 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Plan Modification, Incremental Compensation Cost | $ 600,000 | $ 2,400,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Share-based Liabilities Paid | $ 116,000 | 194,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Plan Modification, Accelerated Incremental Compensation Cost | $ 154,000 | ||||||
Incentive Unit Plan | Executive | Vest Based On Performance Meeting Or Exceeding EBITDA Targets | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Vesting percentage | 50.00% | 50.00% | |||||
Incentive Unit Plan | Executive | Vest 25% On First Anniversary Date of Grant, and Ratably Over Remaining Three Years | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Vesting percentage | 50.00% | 50.00% | |||||
Incentive Unit Plan | Executive | First Anniversary Date Of Grant | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Vesting percentage | 25.00% | 25.00% | |||||
Incentive Stock Options | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Shares of common stock reserve for issuance | shares | 5,000,000 | ||||||
Incentive Stock Options | Maximum | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Vesting period | 4 years | ||||||
Restricted Stock | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Shares of common stock reserve for issuance | shares | 500,000 | ||||||
Total unrecognized compensation expense related to non-vested stock options granted | $ 14,900,000 | ||||||
Unrecognized compensation expense, weighted-average period of recognition | 3 years 5 months 19 days | ||||||
Number of shares, granted | shares | 423,413 | ||||||
Share-based compensation intrinsic value of options exercise | $ 30,600,000 | ||||||
Compensation related expenses | $ 2,500,000 | 0 | |||||
Number of shares, expected to vest | shares | 1,245,609 | ||||||
Weighted average remaining contractual period | 2 years | ||||||
Incentive Stock Options and Nonqualified Stock Options | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Options granted expire period | 10 years | ||||||
Stock Options | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Stock-based compensation expense | $ 2,500,000 | $ 300,000 | $ 1,000,000 | $ 508,000 | $ 160,000 | ||
Performance Shares | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Number of shares, granted | shares | 187,469 | 101,427 | 322,846 | ||||
Share-based compensation intrinsic value of options exercise | $ 101,178 | $ 1,942 | |||||
Number of shares, vested | shares | 141,675 | 106,903 | 33,613 | ||||
Expected dividend rate | 0.00% | 0.00% | 0.00% | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Plan Modification, Number of Employees Affected | Employee | 40 | 34 | 26 | 16 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Plan Modification, Incremental Compensation Cost | $ 74,000 | $ 45,000 | $ 98,000 | $ 37,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Plan Modification, Incremental Future Compensation Cost | 3,600,000 | $ 3,600,000 | |||||
Weighted-average grant date fair value | $ / shares | $ 1.55 | $ 0.84 | $ 1.12 | ||||
RSUs Issued and Outstanding | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Total unrecognized compensation expense related to non-vested stock options granted | $ 10,600,000 | $ 10,600,000 | |||||
Unrecognized compensation expense, weighted-average period of recognition | 3 years 10 months 17 days | ||||||
Number of shares, granted | shares | 897,284 | ||||||
Number of shares, vested | shares | 0 | ||||||
Weighted average remaining contractual period | 9 years 10 months 25 days | ||||||
Weighted-average grant date fair value | $ / shares | $ 12.18 |
Stock Option Plans and Stock-58
Stock Option Plans and Stock-Based Compensation - Summary of Fair Value of Stock Options Estimated by Using Weighted Average Assumptions (Detail) | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Expected dividend rate | 0.00% | 0.00% | 0.00% | ||
Expected volatility | 49.00% | ||||
Expected volatility, Minimum | 40.00% | ||||
Expected volatility, Maximum | 41.00% | ||||
Risk-free interest rate, Minimum | 2.63% | 2.11% | |||
Risk-free interest rate, Maximum | 2.91% | 2.11% | |||
Expected term (in years) | 6 years 3 months | 6 years 3 months | |||
Time Based | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Expected dividend rate | 0.00% | 0.00% | 0.00% | ||
Expected volatility | 49.00% | 48.40% | |||
Expected volatility, Minimum | 40.90% | ||||
Expected volatility, Maximum | 49.00% | ||||
Risk-free interest rate, Minimum | 1.96% | 1.31% | 1.55% | ||
Risk-free interest rate, Maximum | 2.18% | 2.24% | 1.95% | ||
Expected term (in years) | 6 years 3 months | ||||
Performance Shares | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Expected dividend rate | 0.00% | 0.00% | 0.00% | ||
Expected volatility | 49.00% | 48.40% | |||
Expected volatility, Minimum | 40.90% | ||||
Expected volatility, Maximum | 49.00% | ||||
Risk-free interest rate, Minimum | 1.96% | 1.27% | 1.68% | ||
Risk-free interest rate, Maximum | 2.18% | 2.16% | 1.93% | ||
Minimum | Time Based | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Expected term (in years) | 6 years 3 months | 5 years 5 months | |||
Minimum | Performance Shares | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Expected term (in years) | 5 years 6 months | 5 years 9 months | 5 years 6 months | ||
Maximum | Time Based | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Expected term (in years) | 6 years 3 months | 6 years 3 months | |||
Maximum | Performance Shares | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Expected term (in years) | 6 years 3 months 14 days | 6 years 4 months 24 days | 6 years 3 months |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Examination [Line Items] | |||||||
U.S. federal corporate tax rate | 21.00% | 35.00% | 34.00% | 34.00% | |||
Interest or penalties expense | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | ||
Tax benefit change in valuation allowance | 1,800,000 | ||||||
Recognized tax expense related to transition tax | 0 | ||||||
Federal net operating loss carryforwards | 57,800,000 | 72,400,000 | 78,500,000 | ||||
Research and development credits of approximately | 4,200,000 | 3,400,000 | 2,700,000 | ||||
Unrecognized tax benefits | $ 1,863,000 | $ 883,000 | $ 686,000 | $ 320,000 | |||
Effective income tax rate | 7.30% | 2.40% | (43.30%) | 38.50% | 19.50% | ||
Scenario, Plan | |||||||
Income Tax Examination [Line Items] | |||||||
U.S. federal corporate tax rate | 21.00% | ||||||
Maximum | |||||||
Income Tax Examination [Line Items] | |||||||
U.S. federal corporate tax rate | 35.00% | ||||||
U.S. Federal | |||||||
Income Tax Examination [Line Items] | |||||||
Income tax examination description | no longer subject to U.S. federal income tax examinations for years before 2014 | No longer subject to U.S. federal income tax examinations for years before 2013 | |||||
Valuation allowance | $ 3,600,000 | $ 500,000 | |||||
State, Local and Foreign | |||||||
Income Tax Examination [Line Items] | |||||||
Income tax examination description | no longer subject to state, local and foreign income tax examinations by tax authorities for years before 2012 | No longer subject to state, local and foreign income tax examinations by tax authorities for years before 2012 | |||||
Foreign Tax Authority | |||||||
Income Tax Examination [Line Items] | |||||||
Valuation allowance | $ 1,700,000 | $ 0 |
Net Loss Per Share Attributab60
Net Loss Per Share Attributable to Common Shareholders - Schedule of Calculation of Basic and Diluted Net Loss Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Numerator: | |||||
Net loss | $ (11,614) | $ (6,587) | $ (7,592) | $ (3,173) | $ (10,807) |
Deemed dividends to preferred stockholders | (12,590) | (21,129) | (23,618) | (21,597) | |
Net loss attributable to common shareholders | $ (11,614) | $ (19,177) | $ (28,721) | $ (26,791) | $ (32,404) |
Denominator | |||||
Basic | 85,984,103 | 47,567,048 | 52,339,804 | 45,933,218 | 43,929,159 |
Weighted average shares outstanding Basic and diluted | 85,984,103 | 47,567,048 | |||
Diluted | 85,984,103 | 47,567,048 | 52,339,804 | 45,933,218 | 43,929,159 |
Net loss attributable to common shareholders | |||||
Basic and diluted | $ (0.14) | $ (0.40) | |||
Basic | (0.14) | (0.40) | $ (0.55) | $ (0.58) | $ (0.74) |
Diluted | $ (0.14) | $ (0.40) | $ (0.55) | $ (0.58) | $ (0.74) |
Business Combination - Addition
Business Combination - Additional Information (Detail) - USD ($) | Jul. 15, 2015 | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 219,377,000 | $ 219,377,000 | $ 219,400,000 | $ 219,377,000 | |
whitebox Security Ltd. | |||||
Business Acquisition [Line Items] | |||||
Business Combination, Consideration | $ 15,667,000 | ||||
Goodwill | 10,485,000 | ||||
Business combination, acquisition Costs | $ 452,000 |
Business Combination - Schedule
Business Combination - Schedule of Fair Values of Assets Acquired and Liabilities Assumed at Acquisition Date (Detail) - USD ($) $ in Thousands | Jul. 15, 2015 | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 219,377 | $ 219,377 | $ 219,400 | $ 219,377 | |
whitebox Security Ltd. | |||||
Business Acquisition [Line Items] | |||||
Cash and cash equivalents | $ 458 | ||||
Accounts receivable | 423 | ||||
Prepaid expenses and other assets | 34 | ||||
Deferred revenue contracts | 162 | ||||
Goodwill | 10,485 | ||||
Intangible assets | 5,810 | ||||
Total assets | 17,372 | ||||
Accounts payable | (91) | ||||
Accrued expenses | (250) | ||||
Deferred tax liability | (1,202) | ||||
Deferred revenue | (162) | ||||
Total liabilities | (1,705) | ||||
Total consideration | 15,667 | ||||
Total consideration, net of cash acquired | $ 15,209 |
Business Combination - Summary
Business Combination - Summary of Fair Value Estimates Identifiable Intangible Assets and Estimated Useful Lives (Detail) - whitebox Security Ltd. $ in Thousands | Jul. 15, 2015USD ($) |
Business Acquisition [Line Items] | |
Intangible assets | $ 5,810 |
Developed Technology | |
Business Acquisition [Line Items] | |
Intangible assets | $ 5,000 |
Intangible asset, estimated useful life | 7 years |
Non-competition Agreements and Related Items | |
Business Acquisition [Line Items] | |
Intangible assets | $ 810 |
Intangible asset, estimated useful life | 4 years 4 months 24 days |
Property and Equipment Net (Det
Property and Equipment Net (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 5,392 | $ 3,146 | |
Less: accumulated depreciation | (2,374) | (1,291) | |
Property and equipment, net | $ 3,595 | 3,018 | 1,855 |
Computer Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 4,559 | 2,618 | |
Other Assets | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 833 | $ 528 |
Property and Equipment Net - Ad
Property and Equipment Net - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation Expense | $ 1.4 | $ 0.9 | $ 0.6 |
Impairments of property and equipment | $ 0 | $ 0 | $ 0 |
Schedule of Estimated Future Am
Schedule of Estimated Future Amortization Expense of Intangible Assets (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Finite lived intangible assets, fiscal year maturity [Abstract] | |||
2,018 | $ 8,825 | ||
2,019 | 8,825 | ||
2,020 | 8,825 | ||
2,021 | 8,825 | ||
2,022 | 8,825 | ||
Thereafter | 37,060 | ||
Total intangible assets, net | $ 76,773 | $ 81,185 | $ 90,013 |
Future Minimum Annual Lease Pay
Future Minimum Annual Lease Payments Under Non-cancelable Operating Leases, Inclusive of Sublease Proceeds (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
2,018 | $ 2,785 |
2,019 | 3,004 |
2,020 | 4,445 |
2,021 | 4,997 |
2,022 | 4,921 |
Thereafter | 32,127 |
Total minimum lease payments | $ 52,279 |
Aggregate Maturities of Company
Aggregate Maturities of Company's Debt (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Line Of Credit Facility [Abstract] | |||
2,018 | $ 0 | ||
2,019 | 116 | ||
2,020 | 0 | ||
2,021 | 70,000 | ||
2,022 | 0 | ||
Total debt | 70,116 | ||
Less: deferred financing costs | (1,787) | ||
Long-term debt, net | 68,329 | ||
Less: current portion | 0 | ||
Long term debt | $ 9,640 | $ 68,329 | $ 107,344 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Jun. 27, 2017 | Nov. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Jun. 30, 2018 |
Class of Stock [Line Items] | |||||
Shares authorized | 310,000,000 | ||||
Common stock, shares authorized | 300,000,000 | 300,000,000 | 59,500,000 | 300,000,000 | |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | 0 | 10,000,000 | |
Common stock, par value | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 | |
Preferred stock, par value | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 | |
Dividend rate, percentage | 9.00% | ||||
Dividend rate, Per share amount | $ 90 | ||||
Dividend declared and paid | $ 50,400 | ||||
Dividends payable, date to be paid | Dec. 15, 2016 | ||||
Stock repurchased and retired | $ 487 | ||||
Redeemable Convertible Preferred Stock | |||||
Class of Stock [Line Items] | |||||
Dividend rate, percentage | 0.00% | 9.00% | |||
Stock issued, conversion of shares | 223,816 | ||||
Common Stock | |||||
Class of Stock [Line Items] | |||||
Stock issued, conversion of shares | 20,500,400 | ||||
Treasury Stock | |||||
Class of Stock [Line Items] | |||||
Stock repurchased and retired, shares | 190,434 | ||||
Stock repurchased and retired | $ 487 | ||||
Share price | $ 2.56 | ||||
IPO | |||||
Class of Stock [Line Items] | |||||
Cumulative undeclared and unpaid dividends | $ 22,200 | ||||
IPO | Redeemable Convertible Preferred Stock | |||||
Class of Stock [Line Items] | |||||
Redeemable convertible preferred shares converted | 223,816 | ||||
IPO | Common Stock | |||||
Class of Stock [Line Items] | |||||
Stock issued, conversion of shares | 20,500,400 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Redeemable Convertible Preferred Stock (Detail) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Nov. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Temporary Equity [Line Items] | |||||
Dividend percentage | 9.00% | ||||
Redeemable Convertible Preferred Stock | |||||
Temporary Equity [Line Items] | |||||
Date Issued | Sep. 30, 2014 | Sep. 30, 2014 | |||
Share price | $ 1,000 | $ 1,000 | |||
Shares authorized | 0 | 500,000 | |||
Shares issued | 0 | 223,987 | |||
Shares outstanding | 0 | 223,987 | 222,898 | 223,084 | |
Liquidation preference | $ 275,463 | ||||
Dividend percentage | 0.00% | 9.00% |
Stock Option Plans and Stock-71
Stock Option Plans and Stock-Based Compensation - Summary of Non-vested Vesting Stock Options (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Number of Shares | |||
Number of Shares, Beginning Balance | 1,216,796 | 1,315,668 | |
Number of shares, granted | 1,592,370 | 401,094 | 1,349,782 |
Number of Shares, Conversion of vested performance to service based | 322,988 | ||
Number of Shares, Vested | (437,829) | (382,364) | (10,781) |
Number of Shares, Forfeited | (111,076) | (117,602) | (23,333) |
Non-vested number of shares, Ending Balance | 2,583,249 | 1,216,796 | 1,315,668 |
Weighted average grant date Fair Value | |||
Weighted average grant date Fair Value, Beginning Balance | $ 1.05 | $ 1.15 | |
Weighted average grant date Fair Value, Granted | 4.13 | 0.81 | $ 1.16 |
Weighted Average Grant Date Fair Value, Conversion of vested performance to service based | 11.95 | ||
Weighted average grant date Fair Value, Vested | 1.04 | 1.16 | 1.17 |
Weighted average grant date Fair Value, Forfeited | 1.07 | 1.12 | 1.17 |
Weighted average grant date Fair Value, Ending Balance | $ 4.32 | $ 1.05 | $ 1.15 |
Performance Shares | |||
Number of Shares | |||
Number of Shares, Beginning Balance | 277,194 | 289,233 | |
Number of shares, granted | 187,469 | 101,427 | 322,846 |
Number of Shares, Conversion of vested performance to service based | 322,988 | ||
Number of Shares, Vested | (141,675) | (106,903) | (33,613) |
Number of Shares, Forfeited | (6,563) | ||
Non-vested number of shares, Ending Balance | 277,194 | 289,233 | |
Weighted average grant date Fair Value | |||
Weighted average grant date Fair Value, Beginning Balance | $ 1.01 | $ 1.11 | |
Weighted average grant date Fair Value, Granted | 1.55 | 0.84 | $ 1.12 |
Weighted Average Grant Date Fair Value, Conversion of vested performance to service based | 11.95 | ||
Weighted average grant date Fair Value, Vested | $ 1.54 | 0.99 | 1.12 |
Weighted average grant date Fair Value, Forfeited | 1.18 | ||
Weighted average grant date Fair Value, Ending Balance | $ 1.01 | $ 1.11 |
Stock Option Plans and Stock-72
Stock Option Plans and Stock-Based Compensation - Summary of performance Vesting Stock Option Activity (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Number of Options, Beginning balances | 1,622,118 | 1,326,449 | |
Number of Options, Granted | 1,592,370 | 419,839 | 1,349,782 |
Number of Options, Exercised | (152,330) | (6,568) | |
Number of Options, Forfeited | (153,975) | (117,602) | (23,333) |
Number of options, Conversion of shares | (591,892) | ||
Number of Options, Ending balances | 3,500,075 | 1,622,118 | 1,326,449 |
Number of Options, Options vested and expected to vest | 3,500,075 | 1,622,118 | 1,326,449 |
Number of Options, Options vested and exercisable | 926,614 | 416,265 | 10,781 |
Weighted Average Exercise Price Per share, Beginning balances | $ 2.21 | $ 2.38 | |
Weighted Average Exercise Price (per share), Granted | 9.54 | 1.69 | $ 2.38 |
Weighted Average Exercise Price (per share), Exercised | 2.22 | 1.77 | |
Weighted Average Exercise Price (per share), Forfeited | 2.21 | 2.31 | 2.42 |
Weighted Average Exercise Price, Conversion of shares | 2.53 | ||
Weighted Average Exercise Price (per share), Options vested and expected to vest | 5.43 | 2.21 | 2.38 |
Weighted Average Exercise Price (Per share), Options vested and exercisable | 2.28 | 2.36 | 2.42 |
Weighted Average Exercise Price (per share), Ending balances | $ 5.43 | $ 2.21 | $ 2.38 |
Weighted Average Remaining Contractual Term (years) | 8 years 9 months 18 days | 8 years 10 months 25 days | 9 years 8 months 12 days |
Weighted Average Remaining Contractual Term (years), Options vested and expected to vest | 8 years 9 months 18 days | 8 years 10 months 25 days | 9 years 8 months 12 days |
Weighted Average Remaining Contractual Term (years), Options vested and exercisable | 7 years 10 months 25 days | 8 years 10 months 25 days | 9 years 8 months 12 days |
Aggregate Intrinsic Value, Exercised | $ 1,871,041 | $ 2,950 | |
Aggregate Intrinsic Value, Balances | 31,784,488 | 1,546,599 | |
Aggregate Intrinsic Value, Options vested and expected to vest | 31,784,488 | 1,546,599 | |
Aggregate Intrinsic Value, Options vested and exercisable | $ 11,324,729 | $ 340,334 | |
Performance Shares | |||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Number of Options, Beginning balances | 412,773 | 322,846 | |
Number of Options, Granted | 187,469 | 101,427 | 322,846 |
Number of Options, Exercised | (8,350) | (4,000) | |
Number of Options, Forfeited | (7,500) | ||
Number of options, Conversion of shares | (591,892) | ||
Number of Options, Ending balances | 412,773 | 322,846 | |
Number of Options, Options vested and expected to vest | 412,773 | 322,846 | |
Number of Options, Options vested and exercisable | 142,391 | 33,613 | |
Weighted Average Exercise Price Per share, Beginning balances | $ 2.19 | $ 2.32 | |
Weighted Average Exercise Price (per share), Granted | 3.27 | 1.77 | $ 2.32 |
Weighted Average Exercise Price (per share), Exercised | 2.38 | 1.36 | |
Weighted Average Exercise Price (per share), Forfeited | 2.42 | ||
Weighted Average Exercise Price, Conversion of shares | $ 2.53 | ||
Weighted Average Exercise Price (per share), Options vested and expected to vest | 2.19 | 2.32 | |
Weighted Average Exercise Price (Per share), Options vested and exercisable | 2.33 | ||
Weighted Average Exercise Price (per share), Ending balances | $ 2.19 | $ 2.32 | |
Weighted Average Remaining Contractual Term (years) | 8 years 6 months | 8 years 10 months 25 days | 9 years 8 months 12 days |
Weighted Average Remaining Contractual Term (years), Options vested and expected to vest | 8 years 10 months 25 days | 9 years 8 months 12 days | |
Weighted Average Remaining Contractual Term (years), Options vested and exercisable | 8 years 9 months 18 days | 9 years 6 months | |
Aggregate Intrinsic Value, Exercised | $ 101,178 | $ 1,942 | |
Aggregate Intrinsic Value, Balances | 401,616 | ||
Aggregate Intrinsic Value, Options vested and expected to vest | 401,616 | ||
Aggregate Intrinsic Value, Options vested and exercisable | $ 134,871 |
Stock Option Plans and Stock-73
Stock Option Plans and Stock-Based Compensation - Summary of Non-Vested Incentive Unit Activity (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Number of Shares | |||
Number of Shares, Beginning Balance | 1,216,796 | 1,315,668 | |
Number of shares, granted | 1,592,370 | 401,094 | 1,349,782 |
Number of shares, vested | 437,829 | 382,364 | 10,781 |
Number of Shares, Forfeited | (111,076) | (117,602) | (23,333) |
Non-vested number of shares, Ending Balance | 2,583,249 | 1,216,796 | 1,315,668 |
Weighted-average exercise price (per share) | |||
Weighted average grant date Fair Value, Beginning Balance | $ 1.05 | $ 1.15 | |
Weighted-average exercise price (per share), Granted | 4.13 | 0.81 | $ 1.16 |
Weighted-average exercise price (per share), Forfeited | 1.07 | 1.12 | 1.17 |
Weighted average grant date Fair Value, Ending Balance | $ 4.32 | $ 1.05 | $ 1.15 |
Incentive Unit Plan | |||
Number of Shares | |||
Number of Shares, Beginning Balance | 4,127,000 | 5,526,000 | 7,080,000 |
Number of shares, granted | 1,677,000 | 170,000 | |
Number of shares, vested | 1,846,000 | 7,000 | 1,193,000 |
Number of Shares, Repurchased | 0 | ||
Number of Shares, Forfeited | (39,000) | (20,000) | (531,000) |
Number of Shares, Other | 291,000 | ||
Non-vested number of shares, Ending Balance | 2,242,000 | 4,127,000 | 5,526,000 |
Weighted-average exercise price (per share) | |||
Weighted average grant date Fair Value, Beginning Balance | $ 0.0517 | $ 0.0517 | $ 0.0517 |
Weighted-average exercise price (per share), Granted | 0.0517 | 0.0517 | |
Weighted-average exercise price (per share), Vested | 0.0517 | 0.0517 | 0.0517 |
Weighted-average exercise price (per share), Repurchased | 0 | ||
Weighted-average exercise price (per share), Forfeited | 0.0517 | 0.0517 | 0.0517 |
Weighted-average exercise price (per share), Other | 0.0517 | ||
Weighted average grant date Fair Value, Ending Balance | $ 0.0517 | $ 0.0517 | $ 0.0517 |
Stock Option Plans and Stock-74
Stock Option Plans and Stock-Based Compensation - Summary of Restricted Stock Unit Activity (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Number of Shares | |||
Number of Shares, Beginning Balance | 1,216,796 | 1,315,668 | |
Number of shares, granted | 1,592,370 | 401,094 | 1,349,782 |
Number of shares, vested | 437,829 | 382,364 | 10,781 |
Number of Shares, Forfeited | 111,076 | 117,602 | 23,333 |
Non-vested number of shares, Ending Balance | 2,583,249 | 1,216,796 | 1,315,668 |
RSUs Issued and Outstanding | |||
Number of Shares | |||
Number of Shares, Beginning Balance | |||
Number of shares, granted | 897,284 | ||
Number of shares, vested | 0 | ||
Number of Shares, Forfeited | 0 | ||
Non-vested number of shares, Ending Balance | 897,284 | ||
Weighted-Average Remaining Contractual Term (In years) | |||
Weighted-Average Remaining Contractual Term, Balances | 9 years 10 months 25 days | ||
Aggregate intrinsic value | |||
Aggregate intrinsic value, Balances | $ 186 |
Stock Option Plans and Stock-75
Stock Option Plans and Stock-Based Compensation - Summary of Non-Vested Incentive activity (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Number of Shares | |||
Number of Shares, Beginning Balance | 1,216,796 | 1,315,668 | |
Number of shares, granted | 1,592,370 | 401,094 | 1,349,782 |
Number of shares, vested | 437,829 | 382,364 | 10,781 |
Number of Shares, Forfeited | 111,076 | 117,602 | 23,333 |
Non-vested number of shares, Ending Balance | 2,583,249 | 1,216,796 | 1,315,668 |
Weighted average grant date Fair Value | |||
Weighted average grant date Fair Value, Beginning Balance | $ 1.05 | $ 1.15 | |
Weighted average grant date Fair Value, Granted | 4.13 | 0.81 | $ 1.16 |
Weighted average grant date Fair Value, Vested | 1.04 | 1.16 | 1.17 |
Weighted average grant date Fair Value, Forfeited | 1.07 | 1.12 | 1.17 |
Weighted average grant date Fair Value, Ending Balance | $ 4.32 | $ 1.05 | $ 1.15 |
RSUs Issued and Outstanding | |||
Number of Shares | |||
Number of Shares, Beginning Balance | |||
Number of shares, granted | 897,284 | ||
Number of shares, vested | 0 | ||
Number of Shares, Forfeited | 0 | ||
Non-vested number of shares, Ending Balance | 897,284 | ||
Weighted average grant date Fair Value | |||
Weighted average grant date Fair Value, Beginning Balance | |||
Weighted average grant date Fair Value, Granted | $ 12.18 | ||
Weighted average grant date Fair Value, Vested | 0 | ||
Weighted average grant date Fair Value, Forfeited | 0 | ||
Weighted average grant date Fair Value, Ending Balance | $ 12.18 |
Schedule Accrued Expenses (Deta
Schedule Accrued Expenses (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Payables and Accruals [Abstract] | |||
Commissions | $ 8,559 | $ 4,943 | |
Bonus | 5,063 | 2,895 | |
Payroll and related benefits | 2,640 | 988 | |
Interest | 34 | 794 | |
Partner and customer programs | 1,234 | 615 | |
Sales and other taxes | 1,373 | 615 | |
Employee travel expenses | 369 | 213 | |
Consulting and professional services | 339 | 188 | |
Other | 3,025 | 1,854 | |
Total | $ 14,106 | $ 22,636 | $ 13,105 |
Current Portion of Prepayments
Current Portion of Prepayments and Other Current Assets (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Payables and Accruals [Abstract] | |||
Prepaid expenses | $ 4,376 | $ 2,783 | |
Prepaid insurance | 660 | 447 | |
Prepaid commissions | 2,931 | 3,753 | |
Other | 2,046 | 711 | |
Total | $ 9,784 | $ 10,013 | $ 7,694 |
Other Non-Current Assets (Detai
Other Non-Current Assets (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||
Prepaid expenses | $ 3,210 | $ 546 | |
Deposits | 222 | 115 | |
Note receivable | 319 | ||
Other | 110 | ||
Total | $ 3,328 | $ 3,542 | $ 980 |
Summary of Consolidated Loss Be
Summary of Consolidated Loss Before Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||||
Domestic | $ (2,780) | $ (2,435) | $ (14,727) | ||
Foreign | (2,519) | (2,723) | 1,306 | ||
Loss before income taxes | $ (10,821) | $ (6,431) | $ (5,299) | $ (5,158) | $ (13,421) |
Summary of Provision for Income
Summary of Provision for Income Taxes consisted (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current | |||||
Federal | $ 293 | ||||
State | 189 | $ 21 | $ 8 | ||
Foreign | 1,997 | 531 | 704 | ||
Total current | 2,479 | 552 | 712 | ||
Deferred | |||||
Federal | (293) | (1,315) | (3,222) | ||
State | 202 | (118) | (99) | ||
Foreign | (95) | (1,104) | (5) | ||
Total deferred | 69 | (2,537) | (3,326) | ||
Deferred income taxes and tax credits | (186) | ||||
(Benefit) provision | $ 793 | $ 156 | $ 2,293 | $ (1,985) | $ (2,614) |
Net Tax Effects of Temporary Di
Net Tax Effects of Temporary Differences between the Carring Amount of Significant Components of Deferred Tax Assets and Deferred Tax Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets: | ||
Research and development and other credits | $ 6,187 | $ 5,235 |
Net operating loss carryforward | 14,795 | 26,867 |
Charitable contributions | 11 | |
Deferred revenue | 1,355 | 1,115 |
Stock compensation | 125 | 17 |
Accrued expense | 1,323 | 1,346 |
Depreciable and amortizable assets | 29 | 368 |
Other | 228 | |
Total deferred tax assets | 24,042 | 34,959 |
Deferred tax liabilities: | ||
Prepaid expenses | (1,249) | (1,389) |
Intangibles | (17,232) | (32,751) |
Total deferred tax assets, net | 5,561 | 819 |
Less valuation allowance for deferred tax assets | (5,297) | (486) |
Net deferred tax assets | $ 264 | $ 333 |
Difference between Federal Inco
Difference between Federal Income Tax Rate and Effective Income Tax Rate (Detail) | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
U.S. federal taxes at statutory rate | 21.00% | 35.00% | 34.00% | 34.00% | |
Foreign tax rate differentials | (9.10%) | (11.80%) | (0.70%) | ||
Research and development credit | 17.80% | 18.20% | 1.80% | ||
Foreign tax credit | 18.30% | 4.70% | 3.90% | ||
Stock options | (23.60%) | (3.80%) | (1.10%) | ||
Permanent differences and other | (14.40%) | (7.80%) | (5.30%) | ||
State taxes, net of federal benefit | (4.00%) | (0.10%) | 2.80% | ||
Change in state rate | (1.90%) | 7.30% | (11.60%) | ||
Change in other valuation allowance due to operations | (58.40%) | (1.90%) | 0.40% | ||
Other | (2.00%) | (0.30%) | (4.70%) | ||
Total income tax benefit (expense) | 7.30% | 2.40% | (43.30%) | 38.50% | 19.50% |
Scenario Previously Reported Member | |||||
U.S. federal taxes at statutory rate | 34.00% |
Reconciliation of Unrecognized
Reconciliation of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Beginning balance | $ 883 | $ 686 | $ 320 |
Additions based on tax positions related to prior year | 507 | 197 | 366 |
Additions based on tax positions related to current year | 473 | ||
Ending balance | $ 1,863 | $ 883 | $ 686 |
Geographic Information and Ma84
Geographic Information and Major Customers - Summary of Consolidated Total Revenue by Geography (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Summary of Significant Accounting Policies [Line Items] | |||||
Total revenue | $ 104,274 | $ 74,726 | $ 186,056 | $ 132,412 | $ 95,356 |
United States | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Total revenue | 67,195 | 53,020 | 134,676 | 92,116 | 63,440 |
EMEA | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Total revenue | 24,952 | 13,853 | 33,097 | 25,668 | 20,770 |
Rest of the World | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Total revenue | $ 12,127 | $ 7,853 | $ 18,283 | $ 14,628 | $ 11,146 |