Stock Plans (Tables)

9 Months Ended

Sep. 30, 2012

Stock Plans [Abstract]

Option activity under the Incapsula Plan

	Shares Available for Grant			Number of Stock  Options Outstanding			Weighted Average Exercise Price
Outstanding - January 1, 2012		2,921,833			1,774,000		$	0.08
Granted		(232,500	)		232,500			0.25
Exercised		—			(90,000	)		0.15
Forfeited		50,000			(50,000	)		0.19
Outstanding - September 30, 2012		2,739,333			1,866,500		$	0.10

Stock-based compensation expense

	For the three months ended September 30,				For the nine months  ended September 30,
	2012		2011		2012		2011
Cost of revenues	$	143	$	29	$	302	$	73
Research and development		372		35		759		83
Sales and marketing		665		102		1,365		245
General and administrative		582		412		1,170		753
Total stock-based compensation expense	$	1,762	$	578	$	3,596	$	1,154

Weighted average assumptions for fair value of stock options granted to employees

	For the three months ended September 30,						For the nine months  ended September 30,
	2012			2011			2012			2011
Stock option grants:
Dividend rate		0	%		0	%		0	%		0	%
Risk-free interest rate		0.8	%		1.1	%		1.0	%		0.9	%
Expected term (in years)		6.1			5.3			6.0			4.2
Expected volatility		46	%		49	%		48	%		59	%
ESPP grants:
Dividend rate		—			—			0	%		—
Risk-free interest rate		—			—			0.2	%		—
Expected term (in years)		—			—			0.5			—
Expected volatility		—			—			38	%		—

Share-based award activity under the 2011 plan

	Shares Available for Grant			Number of Stock  Options Outstanding			Weighted Average Exercise Price		Number of Restricted  Stock Units Outstanding			Weighted Average  Grant Date Fair Value
Balances - January 1, 2012		1,886,296			2,871,005		$	4.15		—		$	—
Additional shares added to the pool		919,127			—					—			—
Granted		(965,952	)		580,184			31.79		385,768			31.14
Exercised or released		—			(1,059,806	)		2.00		—			—
Cancelled or forfeited		183,229			(177,854	)		9.91		(5,375	)		34.02
Balances - September 30, 2012		2,022,700			2,213,529		$	11.97		380,393		$	31.10

Supplemental disclosure of stock options outstanding

	Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)		Aggregate Intrinsic  Value (in thousands)
Options exercisable		639,185	$	3.42		6.95	$	21,460
Options outstanding		2,213,529	$	11.97		8.18	$	55,431