Delaware (State or other jurisdiction of incorporation or organization) | 26-1989091 (I.R.S. Employer Identification Number) |
Large accelerated filer [ ] | Accelerated filer [X] | Non-accelerated filer [ ] (Do not check if a smaller reporting company) | Smaller reporting company [ ] | Emerging growth company [X] |
Page | ||
As of | |||||||
June 30, 2018 | December 31, 2017 | ||||||
(as adjusted)(1) | |||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 44,642 | $ | 61,319 | |||
Marketable securities | 29,833 | 32,025 | |||||
Accounts receivable and other, net | 28,184 | 21,933 | |||||
Prepaid expenses and other current assets | 5,742 | 3,991 | |||||
Total current assets | 108,401 | 119,268 | |||||
Property and equipment, net | 5,247 | 5,263 | |||||
Restricted cash, non-current | 1,325 | 1,325 | |||||
Deferred commissions | 24,691 | 27,512 | |||||
Deferred professional service costs | 11,855 | 12,480 | |||||
Intangible assets, net | 18,144 | 20,253 | |||||
Goodwill | 91,785 | 91,785 | |||||
Other assets | 2,141 | 1,997 | |||||
Total assets | $ | 263,589 | $ | 279,883 | |||
Liabilities and stockholders’ equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 4,619 | $ | 3,907 | |||
Accrued expenses and other current liabilities | 17,829 | 13,178 | |||||
Accrued compensation | 9,530 | 13,941 | |||||
Deferred revenue | 26,509 | 25,985 | |||||
Total current liabilities | 58,487 | 57,011 | |||||
Deferred revenue, non-current | 2,723 | 4,457 | |||||
Debt, non-current | 4,183 | 4,958 | |||||
Other liabilities, non-current | 2,964 | 1,900 | |||||
Total liabilities | 68,357 | 68,326 | |||||
Commitments and contingencies | |||||||
Stockholders’ equity: | |||||||
Class A and Class B common stock | 14 | 13 | |||||
Additional paid-in capital | 598,963 | 586,900 | |||||
Accumulated other comprehensive loss | (9 | ) | (22 | ) | |||
Accumulated deficit | (403,736 | ) | (375,334 | ) | |||
Total stockholders’ equity | 195,232 | 211,557 | |||||
Total liabilities and stockholders’ equity | $ | 263,589 | $ | 279,883 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
(as adjusted)(1) | (as adjusted)(1) | ||||||||||||||
Revenue: | |||||||||||||||
Subscription | $ | 34,802 | $ | 30,382 | $ | 67,791 | $ | 56,279 | |||||||
Professional services and other | 2,982 | 2,250 | 6,472 | 4,056 | |||||||||||
Total revenue, net | 37,784 | 32,632 | 74,263 | 60,335 | |||||||||||
Cost of revenue: | |||||||||||||||
Cost of subscription (2) | 9,140 | 7,706 | 18,314 | 11,952 | |||||||||||
Cost of professional services and other (2) | 6,590 | 4,628 | 12,359 | 8,437 | |||||||||||
Total cost of revenue | 15,730 | 12,334 | 30,673 | 20,389 | |||||||||||
Gross profit | 22,054 | 20,298 | 43,590 | 39,946 | |||||||||||
Operating expenses: | |||||||||||||||
Sales and marketing (2) | 13,306 | 15,935 | 27,218 | 30,081 | |||||||||||
Research and development (2) | 16,425 | 15,194 | 31,796 | 26,265 | |||||||||||
General and administrative (2) | 6,382 | 6,766 | 13,207 | 15,764 | |||||||||||
Total operating expenses | 36,113 | 37,895 | 72,221 | 72,110 | |||||||||||
Operating loss | (14,059 | ) | (17,597 | ) | (28,631 | ) | (32,164 | ) | |||||||
Other income, net | 101 | 12 | 229 | 205 | |||||||||||
Loss before income tax benefit | $ | (13,958 | ) | $ | (17,585 | ) | $ | (28,402 | ) | (31,959 | ) | ||||
Income tax benefit | — | (5,206 | ) | — | (5,206 | ) | |||||||||
Net loss | $ | (13,958 | ) | $ | (12,379 | ) | $ | (28,402 | ) | $ | (26,753 | ) | |||
Net loss per share, basic and diluted | $ | (0.10 | ) | $ | (0.09 | ) | $ | (0.21 | ) | $ | (0.23 | ) | |||
Weighted-average shares used to compute basic and diluted net loss per share | 136,682 | 130,537 | 135,843 | 117,807 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
(as adjusted)(1) | (as adjusted)(1) | ||||||||||||||
Cost of revenue: | |||||||||||||||
Cost of subscription | $ | 231 | $ | 253 | $ | 473 | $ | 380 | |||||||
Cost of professional services and other | 315 | 363 | 616 | 609 | |||||||||||
Sales and marketing | 1,318 | 2,441 | 2,456 | 4,595 | |||||||||||
Research and development | 1,908 | 2,254 | 3,562 | 4,044 | |||||||||||
General and administrative | 1,375 | 1,169 | 2,632 | 2,464 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
(as adjusted)(1) | (as adjusted)(1) | ||||||||||||||
Net loss | $ | (13,958 | ) | $ | (12,379 | ) | $ | (28,402 | ) | $ | (26,753 | ) | |||
Other comprehensive income (loss): | |||||||||||||||
Net change in unrealized gain (loss) on available-for-sale marketable securities | 11 | 4 | 13 | (15 | ) | ||||||||||
Other comprehensive income (loss) | 11 | 4 | 13 | (15 | ) | ||||||||||
Comprehensive loss | $ | (13,947 | ) | $ | (12,375 | ) | $ | (28,389 | ) | $ | (26,768 | ) |
Six Months Ended June 30, | |||||||
2018 | 2017 | ||||||
(as adjusted)(1) | |||||||
Operating activities: | |||||||
Net loss | $ | (28,402 | ) | $ | (26,753 | ) | |
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||
Depreciation and amortization | 3,573 | 2,758 | |||||
Stock-based compensation | 9,739 | 12,092 | |||||
Amortization of deferred commissions | 5,800 | 4,289 | |||||
Amortization of deferred professional service costs | 2,097 | 1,958 | |||||
Lease exit and related charges | 1,817 | — | |||||
Release of deferred tax valuation allowance due to business combination | — | (5,206 | ) | ||||
Change in fair value of contingent consideration liability | — | (643 | ) | ||||
Accretion and amortization of marketable securities | (266 | ) | 84 | ||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable and other, net | (6,252 | ) | (3,117 | ) | |||
Deferred commissions | (2,979 | ) | (3,452 | ) | |||
Deferred professional service costs | (1,389 | ) | (1,853 | ) | |||
Prepaid expenses and other assets | (1,896 | ) | (859 | ) | |||
Accounts payable | 511 | (508 | ) | ||||
Accrued expenses and other liabilities | (1,229 | ) | (527 | ) | |||
Deferred revenue | (1,210 | ) | 6,711 | ||||
Net cash used in operating activities | (20,086 | ) | (15,026 | ) | |||
Investing activities: | |||||||
Purchase of property and equipment | (1,304 | ) | (930 | ) | |||
Purchase of marketable securities | (23,979 | ) | (31,775 | ) | |||
Maturities of marketable securities | 26,450 | 63,737 | |||||
Business combination, net of cash acquired | — | (2,264 | ) | ||||
Net cash provided by investing activities | 1,167 | 28,768 | |||||
Financing activities: | |||||||
Proceeds from exercise of stock options | 2,242 | 831 | |||||
Payments of issuance costs related to equity | — | (731 | ) | ||||
Net cash provided by financing activities | 2,242 | 100 | |||||
Net (decrease) increase in cash, cash equivalents and restricted cash | (16,677 | ) | 13,842 | ||||
Cash, cash equivalents and restricted cash at beginning of period | 62,644 | 49,866 | |||||
Cash, cash equivalents and restricted cash at end of period | $ | 45,967 | $ | 63,708 | |||
Non-cash investing and financing activity: | |||||||
Non-cash purchase consideration related to acquisition of Jiff | $ | — | $ | 101,692 | |||
Reconciliation of cash, cash equivalents and restricted cash: | |||||||
Cash and cash equivalents | $ | 44,642 | $ | 62,201 | |||
Restricted cash | 1,325 | 1,507 | |||||
Total cash, cash equivalents and restricted cash | $ | 45,967 | $ | 63,708 |
• | Prior to the adoption of the new standard, the Company recognized revenue of the combined professional services and subscription deliverable over the contractual term of the subscription contract. For certain contracts, this included periods that were cancelable due to termination provisions. Under the new standard, the Company recognizes revenue for the combined professional services and subscription performance obligation over the non-cancelable term of the arrangement. Additionally, prior to the adoption of the new standard, revenue related to variable fees was deferred until the fees became fixed or determinable. Under the new standard, the Company estimates variable consideration at the most likely amount to which the Company expects to be entitled. The Company includes estimated amounts in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. |
• | Prior to the adoption of the new standard, the Company capitalized incremental and direct costs to obtain subscription contracts and amortized those costs over the non-cancelable portion of contracts. Under the new standard, the Company capitalizes all incremental costs to obtain subscription contracts and then amortizes those costs on a systematic basis that is consistent with the transfer to the customer of the goods or services to which those assets relate, which the Company has determined to be five years for initial subscription contracts or the contractual period for renewal subscription contracts. |
• | Prior to the adoption of the new standard, the Company expensed costs to fulfill subscription contracts when they were incurred. Under the new standard, the Company recognizes as assets certain costs incurred to fulfill subscription contracts. Additionally, under the new standard, these costs are amortized on a systematic basis over a period that is consistent with the transfer to the customer of the goods or services to which those assets relate, which the Company has determined to be five years. |
As of December 31, 2017 | ||||||||||||
Previously Reported | Adjustments | As Adjusted | ||||||||||
Assets | ||||||||||||
Accounts receivable and other, net | $ | 20,761 | $ | 1,172 | $ | 21,933 | ||||||
Deferred commissions(1) | 10,583 | 16,929 | 27,512 | |||||||||
Deferred professional service costs | — | 12,480 | 12,480 | |||||||||
Liabilities and stockholders' equity | ||||||||||||
Deferred revenue | 29,410 | (3,425 | ) | 25,985 | ||||||||
Deferred revenue, non-current | 6,686 | (2,229 | ) | 4,457 | ||||||||
Accumulated deficit | (411,569 | ) | 36,235 | (375,334 | ) |
(1) | As of December 31, 2017, Deferred commissions, current and non-current, were previously presented separately. The condensed consolidated balance sheet as of December 31, 2017 was reclassified to conform to the current period presentation. |
Three Months Ended June 30, 2017 | Six Months Ended June 30, 2017 | |||||||||||||||||||||||
Previously Reported | Adjustments | As Adjusted | Previously Reported | Adjustments | As Adjusted | |||||||||||||||||||
Revenue: | ||||||||||||||||||||||||
Subscription | $ | 29,834 | $ | 548 | $ | 30,382 | $ | 55,600 | $ | 679 | $ | 56,279 | ||||||||||||
Professional services and other | 2,265 | (15 | ) | 2,250 | 4,243 | (187 | ) | 4,056 | ||||||||||||||||
Cost of revenue: | ||||||||||||||||||||||||
Cost of professional services and other | 4,793 | (165 | ) | 4,628 | 8,781 | (344 | ) | 8,437 | ||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||
Sales and marketing | 16,575 | (640 | ) | 15,935 | 31,018 | (937 | ) | 30,081 | ||||||||||||||||
Operating loss | (18,935 | ) | 1,338 | (17,597 | ) | (33,937 | ) | 1,773 | (32,164 | ) | ||||||||||||||
Net loss | (13,717 | ) | 1,338 | (12,379 | ) | (28,526 | ) | 1,773 | (26,753 | ) | ||||||||||||||
Net loss per share, basic and diluted | (0.11 | ) | 0.02 | (0.09 | ) | (0.24 | ) | 0.01 | (0.23 | ) |
Six Months Ended June 30, 2017 | |||||||||||||
Previously Reported | Adjustments | As Adjusted | |||||||||||
Operating activities: | |||||||||||||
Net loss | $ | (28,526 | ) | $ | 1,773 | (1) | $ | (26,753 | ) | ||||
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||||||||
Stock-based compensation | 12,541 | (449 | ) | (1) | 12,092 | ||||||||
Amortization of deferred commissions | 5,172 | (883 | ) | (1) | 4,289 | ||||||||
Amortization of deferred professional costs | — | 1,958 | (1) | 1,958 | |||||||||
Changes in operating assets and liabilities: | |||||||||||||
Deferred commissions | (3,398 | ) | (54 | ) | (1) | (3,452 | ) | ||||||
Deferred professional service costs | — | (1,853 | ) | (1) | (1,853 | ) | |||||||
Deferred revenue | 7,202 | (491 | ) | (1) | 6,711 | ||||||||
Net cash provided by investing activities | 28,405 | 363 | (2) | 28,768 | |||||||||
Net increase in cash, cash equivalents and restricted cash | 13,479 | 363 | (2) | 13,842 | |||||||||
Cash, cash equivalents and restricted cash at the beginning of period | 48,722 | 1,144 | 49,866 | ||||||||||
Cash, cash equivalents and restricted cash at the end of period | 62,201 | 1,507 | (2) | 63,708 |
• | Identification of the contract, or contracts, with a customer; |
• | Identification of the performance obligations in the contract; |
• | Determination of the transaction price; |
• | Allocation of the transaction price to the performance obligations in the contract; and |
• | Recognition of revenue when, or as, the Company satisfies a performance obligation. |
As of December 31, 2017(1) | Expense recognized | As of June 30, 2018 | |||||||||||||
Additions | |||||||||||||||
Deferred commissions | $ | 27,512 | $ | 2,979 | $ | (5,800 | ) | $ | 24,691 | ||||||
Deferred professional service costs | 12,480 | 1,472 | (2,097 | ) | 11,855 | ||||||||||
Total deferred commissions and professional service costs | $ | 39,992 | $ | 4,451 | $ | (7,897 | ) | $ | 36,546 |
(1) | Prior-period information has been adjusted for the adoption of ASC 606. See Note 2–Accounting Standards and Significant Accounting Policies for a summary of adjustments. |
Fair value | ||||
Fair value of Company Class B common stock (25,054,049 shares @ $3.65 per share) | $ | 91,447 | ||
Fair value of contingent consideration | 671 | |||
Fair value of assumed Jiff options attributable to pre-combination services | 9,574 | |||
Transaction costs paid on behalf of Jiff | 4,498 | |||
Estimated purchase price consideration | $ | 106,190 |
Cash | $ | 2,234 | |
Current assets | 5,159 | ||
Other assets | 1,971 | ||
Acquired intangible assets | 23,900 | ||
Goodwill | 91,785 | ||
Total assets acquired | 125,049 | ||
Deferred revenue | (1,857 | ) | |
Other current liabilities | (6,192 | ) | |
Debt | (5,578 | ) | |
Non-current liabilities | (5,232 | ) | |
Total net assets acquired | $ | 106,190 |
Fair Value | Useful Life | |||||||
Customer relationships | $ | 10,900 | 10 | |||||
Developed technology | 10,600 | 5 | ||||||
Backlog | 1,500 | 3 | ||||||
Other acquired intangible assets | 900 | 1 | - | 3 | ||||
Total identifiable intangible assets | $ | 23,900 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Total revenue | $ | 37,784 | $ | 32,598 | $ | 74,263 | $ | 63,943 | |||||||
Net loss | (13,958 | ) | (15,490 | ) | (28,402 | ) | (33,957 | ) |
June 30, 2018 | |||||||||||||||
Useful Life | Gross | Accumulated Amortization | Net | ||||||||||||
Customer relationships | 10 | $ | 10,900 | $ | (1,363 | ) | $ | 9,537 | |||||||
Developed technology | 5 | 10,600 | (2,650 | ) | 7,950 | ||||||||||
Backlog | 3 | 1,500 | (960 | ) | 540 | ||||||||||
Other acquired intangible assets | 1 | - | 3 | 900 | (783 | ) | 117 | ||||||||
Total identifiable intangible assets | $ | 23,900 | $ | (5,756 | ) | $ | 18,144 |
December 31, 2017 | |||||||||||||||
Useful Life | Gross | Accumulated Amortization | Net | ||||||||||||
Customer relationships | 10 | $ | 10,900 | $ | (818 | ) | $ | 10,082 | |||||||
Developed technology | 5 | 10,600 | (1,590 | ) | 9,010 | ||||||||||
Backlog | 3 | 1,500 | (664 | ) | 836 | ||||||||||
Other acquired intangible assets | 1 | - | 3 | 900 | (575 | ) | 325 | ||||||||
Total identifiable intangible assets | $ | 23,900 | $ | (3,647 | ) | $ | 20,253 |
Remainder of 2018 | $ | 1,934 | |
2019 | 3,505 | ||
2020 | 3,242 | ||
2021 | 3,210 | ||
2022 | 1,620 | ||
Thereafter | 4,633 | ||
Total estimated amortization expense | $ | 18,144 |
As of June 30, 2018 | |||||||||||||||
Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | ||||||||||||
U.S. treasury securities | $ | 23,610 | $ | — | $ | (8 | ) | $ | 23,602 | ||||||
U.S. agency obligations | 14,972 | — | (1 | ) | 14,971 | ||||||||||
Money market mutual funds | 6,287 | — | — | 6,287 | |||||||||||
44,869 | — | (9 | ) | 44,860 | |||||||||||
Included in cash and cash equivalents | 15,027 | — | — | 15,027 | |||||||||||
Included in marketable securities | $ | 29,842 | $ | — | $ | (9 | ) | $ | 29,833 |
December 31, 2017 | |||||||||||||||
Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | ||||||||||||
U.S. treasury securities | $ | 31,047 | $ | — | $ | (22 | ) | $ | 31,025 | ||||||
U.S. agency obligations | 19,366 | — | — | 19,366 | |||||||||||
Money market mutual funds | 6,115 | — | — | 6,115 | |||||||||||
56,528 | — | (22 | ) | 56,506 | |||||||||||
Included in cash and cash equivalents | 24,481 | — | — | 24,481 | |||||||||||
Included in marketable securities | $ | 32,047 | $ | — | $ | (22 | ) | $ | 32,025 |
As of June 30, 2018 | |||||||||||
Level 1 | Level 2 | Total | |||||||||
Cash equivalents: | |||||||||||
U.S. agency obligations | $ | — | $ | 7,740 | $ | 7,740 | |||||
Money market mutual funds | 6,287 | — | 6,287 | ||||||||
U.S. treasury securities | — | 1,000 | 1,000 | ||||||||
Marketable securities: | |||||||||||
U.S. treasury securities | — | 22,602 | 22,602 | ||||||||
U.S. agency obligations | — | 7,231 | 7,231 | ||||||||
$ | 6,287 | $ | 38,573 | $ | 44,860 |
As of December 31, 2017 | |||||||||||
Level 1 | Level 2 | Total | |||||||||
Cash equivalents: | |||||||||||
U.S. agency obligations | $ | — | $ | 18,366 | $ | 18,366 | |||||
Money market mutual funds | 6,115 | — | 6,115 | ||||||||
Marketable securities: | |||||||||||
U.S. treasury securities | — | 31,025 | 31,025 | ||||||||
U.S. agency obligations | — | 1,000 | 1,000 | ||||||||
$ | 6,115 | $ | 50,391 | $ | 56,506 |
As of | |||||||
June 30, 2018 | December 31, 2017 | ||||||
Leasehold improvements | $ | 3,393 | $ | 2,915 | |||
Computer equipment | 6,799 | 6,165 | |||||
Software | 1,134 | 1,149 | |||||
Internal-use software | 2,925 | 2,925 | |||||
Furniture and equipment | 1,154 | 1,293 | |||||
Total | 15,405 | 14,447 | |||||
Accumulated depreciation | (10,158 | ) | (9,184 | ) | |||
Property and equipment, net | $ | 5,247 | $ | 5,263 |
Remainder of 2018 | $ | 620 | |
2019 | 1,859 | ||
2020 | 1,859 | ||
2021(1) | 1,240 | ||
Total future maturities of debt(2) | $ | 5,578 |
Number of Shares Outstanding | Weighted- Average Grant Date Fair Value | |||||
Balance as of December 31, 2017 | 9,333,896 | $ | 4.03 | |||
Restricted Stock Units granted (1) | 4,797,974 | $ | 3.69 | |||
Restricted Stock Units vested | (1,662,426 | ) | $ | 4.32 | ||
Restricted Stock Units forfeited and canceled (2) | (1,737,125 | ) | $ | 3.65 | ||
Balance as of June 30, 2018 | 10,732,319 | $ | 3.66 |
Options Outstanding | Weighted- Average Exercise Price | Aggregate Intrinsic Value | ||||||||
Balance as of December 31, 2017 | 10,335,178 | $ | 2.83 | $ | 19,253 | |||||
Stock option grants | 134,000 | $ | 3.69 | |||||||
Stock options exercised | (1,527,309 | ) | $ | 1.47 | ||||||
Stock options forfeited and canceled | (581,748 | ) | $ | 12.93 | ||||||
Balance as of June 30, 2018 | 8,360,121 | $ | 2.39 | $ | 19,499 |
Six Months Ended June 30, | |||||||
2018 | 2017 | ||||||
Volatility | 57% | 61% | |||||
Expected life (in years) | 6.06 | 6.02 | |||||
Risk-free interest rate | 2.72 | % | - | 2.74 | % | 2.03% | |
Dividend yield | —% | —% |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||
2018 | 2017(1) | 2018 | 2017(1) | ||||||||||||||||||||||||||||
Class A | Class B | Class A | Class B | Class A | Class B | Class A | Class B | ||||||||||||||||||||||||
Net loss | $ | (5,315 | ) | $ | (8,643 | ) | $ | (5,123 | ) | $ | (7,256 | ) | $ | (10,956 | ) | $ | (17,446 | ) | $ | (12,298 | ) | $ | (14,455 | ) | |||||||
Weighted-average shares used to compute basic and diluted net loss per share | 52,043 | 84,639 | 54,018 | 76,519 | 52,401 | 83,442 | 54,153 | 63,654 | |||||||||||||||||||||||
Basic and diluted net loss per share | $ | (0.10 | ) | $ | (0.10 | ) | $ | (0.09 | ) | $ | (0.09 | ) | $ | (0.21 | ) | $ | (0.21 | ) | $ | (0.23 | ) | $ | (0.23 | ) |
(1) | Prior-period information has been adjusted for the adoption of ASC 606. See Note 2 –Accounting Standards and Significant Accounting Policies for a summary of adjustments. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||
Stock options and restricted stock units | 19,092 | 22,239 | 19,092 | 22,239 | |||||||
Warrants(1) | 115 | 2,020 | 115 | 2,020 | |||||||
Contingent issuable shares related to Jiff (2) | — | 3,284 | — | 3,284 | |||||||
Total | 19,207 | 27,543 | 19,207 | 27,543 |
(2) | As of December 31, 2017, the Company determined there would be no related payment because the milestones were not met. See Note 5–Business Combinations for additional information. |
As of June 30, | |||||||
2018 | 2017 | ||||||
(in millions) | |||||||
Signed Annual Recurring Revenue | $ | 166.4 | $ | 150.8 |
Twelve Months Ended December 31, | |||||
2017 | 2016 | ||||
Annual Net Dollar Retention Rate | 104 | % | 94 | % |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||
(as adjusted)(1) | (as adjusted)(1) | ||||||||||
Revenue: | |||||||||||
Subscription | 92 | % | 93 | % | 91 | % | 93 | % | |||
Professional services and other | 8 | % | 7 | % | 9 | % | 7 | % | |||
Total revenue, net | 100 | % | 100 | % | 100 | % | 100 | % | |||
Cost of revenue: | |||||||||||
Cost of subscription | 24 | % | 24 | % | 24 | % | 20 | % | |||
Cost of professional services and other | 18 | % | 14 | % | 17 | % | 14 | % | |||
Total cost of revenue | 42 | % | 38 | % | 41 | % | 34 | % | |||
Gross margin percentage | 58 | % | 62 | % | 59 | % | 66 | % | |||
Operating expenses: | |||||||||||
Sales and marketing | 35 | % | 49 | % | 37 | % | 50 | % | |||
Research and development | 43 | % | 46 | % | 43 | % | 43 | % | |||
General and administrative | 17 | % | 21 | % | 18 | % | 26 | % | |||
Total operating expenses | 95 | % | 116 | % | 98 | % | 119 | % | |||
Operating loss | (37 | )% | (54 | )% | (39 | )% | (53 | )% | |||
Other income, net | — | % | — | % | 1 | % | — | % | |||
Loss before income taxes | (37 | )% | (54 | )% | (38 | )% | (53 | )% | |||
Income tax benefit | — | % | (16 | )% | — | % | (9 | )% | |||
Net loss | (37 | )% | (38 | )% | (38 | )% | (44 | )% |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||
2018 | % | $ | 2018 | % | $ | ||||||||||||||||||||||
2017(1) | Change | Change | 2017(1) | Change | Change | ||||||||||||||||||||||
(In thousands, except percentages) | |||||||||||||||||||||||||||
Revenue: | |||||||||||||||||||||||||||
Subscription | $ | 34,802 | $ | 30,382 | 15% | $ | 4,420 | $ | 67,791 | $ | 56,279 | 20% | $ | 11,512 | |||||||||||||
Professional services and other | 2,982 | 2,250 | 33% | 732 | 6,472 | 4,056 | 60% | 2,416 | |||||||||||||||||||
Total revenue, net | $ | 37,784 | $ | 32,632 | 16% | $ | 5,152 | $ | 74,263 | $ | 60,335 | 23% | $ | 13,928 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||
2018 | % | $ | 2018 | % | $ | ||||||||||||||||||||||||
2017(1) | Change | Change | 2017(1) | Change | Change | ||||||||||||||||||||||||
(In thousands, except percentages) | |||||||||||||||||||||||||||||
Cost of revenue: | |||||||||||||||||||||||||||||
Subscription | $ | 9,140 | $ | 7,706 | 19 | % | $ | 1,434 | 18,314 | $ | 11,952 | 53 | % | $ | 6,362 | ||||||||||||||
Professional services and other | 6,590 | 4,628 | 42 | % | 1,962 | 12,359 | 8,437 | 46 | % | 3,922 | |||||||||||||||||||
Total cost of revenue | $ | 15,730 | $ | 12,334 | 28 | % | $ | 3,396 | $ | 30,673 | $ | 20,389 | 50 | % | $ | 10,284 | |||||||||||||
Gross margin (loss) percentage: | |||||||||||||||||||||||||||||
Subscription | 74 | % | 75 | % | 73 | % | 79 | % | |||||||||||||||||||||
Professional services and other | (121 | )% | (106 | )% | (91 | )% | (108 | )% | |||||||||||||||||||||
Total gross margin | 58 | % | 62 | % | 59 | % | 66 | % | |||||||||||||||||||||
Gross profit | $ | 22,054 | $ | 20,298 | 9 | % | $ | 1,756 | $ | 43,590 | $ | 39,946 | 9 | % | $ | 3,644 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||
2018 | % | $ | 2018 | % | $ | ||||||||||||||||||||||||
2017(1) | Change | Change | 2017(1) | Change | Change | ||||||||||||||||||||||||
(In thousands, except percentages) | |||||||||||||||||||||||||||||
Sales and marketing | $ | 13,306 | $ | 15,935 | (16 | )% | $ | (2,629 | ) | $ | 27,218 | $ | 30,081 | (10 | )% | $ | (2,863 | ) |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||
2018 | % | $ | 2018 | % | $ | ||||||||||||||||||||||||
2017 | Change | Change | 2017 | Change | Change | ||||||||||||||||||||||||
(In thousands, except percentages) | |||||||||||||||||||||||||||||
Research and development | $ | 16,425 | $ | 15,194 | 8 | % | $ | 1,231 | $ | 31,796 | $ | 26,265 | 21 | % | $ | 5,531 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||
2018 | % | $ | 2018 | % | $ | ||||||||||||||||||||||||
2017 | Change | Change | 2017 | Change | Change | ||||||||||||||||||||||||
(In thousands, except percentages) | |||||||||||||||||||||||||||||
General and administrative | $ | 6,382 | $ | 6,766 | (6 | )% | $ | (384 | ) | $ | 13,207 | $ | 15,764 | (16 | )% | $ | (2,557 | ) |
Six Months Ended June 30, | |||||||
2018 | 2017(1) | ||||||
(In thousands) | |||||||
Net cash used in operating activities | $ | (20,086 | ) | $ | (15,026 | ) | |
Net cash provided by investing activities | 1,167 | 28,768 | |||||
Net cash provided by financing activities | 2,242 | 100 | |||||
Net (decrease) increase in cash, cash equivalents and restricted cash | $ | (16,677 | ) | $ | 13,842 |
• | the price, performance and functionality of our offering; |
• | our customers’ user counts and benefit design features; |
• | the availability, price, performance and functionality of competing or alternative solutions; |
• | the potential for customers that are able to access lower-functionality versions of our offering that we provide through health plans or other channel partners to opt to use the lower-functionality versions of our offering; |
• | our ability to develop complementary products and services; |
• | our continued ability to access the pricing and claims data necessary to enable us to deliver reliable data in our cost estimation and price transparency offering to customers; |
• | the stability, performance and security of our hosting infrastructure and hosting services; |
• | changes in health care laws, regulations or trends; and |
• | the business environment of our customers, in particular, headcount reductions by our customers. |
• | the inability to successfully combine the businesses of Castlight and Jiff in a manner that permits the combined company to achieve the synergies anticipated to result from the acquisition, which would result in the anticipated benefits of the acquisition not being realized partly or wholly in the time frame currently anticipated or at all; |
• | lost sales and customers as a result of certain customers of either of the two companies deciding not to do business with the combined company; |
• | complexities associated with managing the combined businesses; |
• | creating uniform standards, controls, procedures, policies and information systems; |
• | performance shortfalls at one or both of the two companies as a result of the diversion of management’s attention caused by integrating the companies’ operations and functionality, or developing new functionality; and |
• | potential loss of brand awareness or confusion as a result of our re-branding activities. |
• | the addition or loss of large customers, including through acquisitions or consolidations of such customers; |
• | seasonal and other variations in the timing of the sales of our offering, as a significantly higher proportion of our customers either enter into new subscription agreements or renew previous agreements with us in the second half of the year. |
• | the timing of recognition of revenue, including possible delays in the recognition of revenue due to lengthy and sometimes unpredictable implementation timelines or changes brought about by new accounting pronouncements; |
• | failure to meet our contractual commitments under service-level agreements with our customers; |
• | the amount and timing of operating expenses related to the maintenance and expansion of our business, operations and infrastructure; |
• | our access to pricing and claims data managed by health plans and other third parties, or changes to the fees we pay for that data; |
• | the timing and success of introductions of new products, services and pricing by us or our competitors or any other change in the competitive dynamics of our industry, including consolidation among competitors, customers or strategic partners; |
• | our ability to attract new customers; |
• | customer renewal rates and the timing and terms of customer renewals; |
• | network outages or security breaches; |
• | the mix of products and services sold or renewed during a period; |
• | general economic, industry and market conditions; |
• | the timing of expenses related to the development or acquisition of technologies or businesses and potential future charges for impairment of goodwill from acquired companies; and |
• | other impacts of new accounting pronouncements. |
• | breach of our contractual obligations to customers, which may cause our customers to terminate their relationship with us and may result in potentially significant financial obligations to our customers; |
• | investigation by regulatory authorities empowered to enforce HIPAA and other applicable regulations, including but not limited to the U.S. Department of Health and Human Services and state attorneys general, and the possible imposition of civil penalties; |
• | private litigation by individuals adversely affected by any violation of HIPAA, HITECH or comparable laws for which we are responsible; and |
• | negative publicity, which may decrease the willingness of current and potential future customers to work with us and negatively affect our sales and operating results. |
• | cease offering or using technologies that incorporate the challenged intellectual property; |
• | make substantial payments for legal fees, settlement payments or other costs or damages; |
• | obtain a license, which may not be available on reasonable terms, to sell or use the relevant technology; or |
• | incur substantial costs and reallocate resources to redesign our technology to avoid infringement. |
• | inability to integrate or benefit from acquired technologies or services or strategic collaborations or alliances in an efficient, effective or profitable manner; |
• | unanticipated costs or liabilities associated with the acquisition or strategic transaction; |
• | challenges in achieving strategic objectives, cost savings and other benefits expected from such transactions; |
• | the lack of unilateral control over a strategic alliance and the risk that strategic partners have business goals and interests that are not aligned with ours; |
• | delays, difficulties or unexpected costs in the integration, assimilation, implementation or modification of platforms, systems, functions, technologies and infrastructure to support the combined business or strategic alliance, as well as maintaining and integrating accounting systems and operations, uniform standards, controls (including internal accounting controls), procedures and policies |
• | difficulty converting the customers of the acquired business onto our platform and contract terms, including disparities in the revenue, licensing, support or professional services model of the acquired company; |
• | diversion of management’s attention from other business concerns; |
• | adverse effects to our existing business relationships with business partners and customers as a result of the acquisition or strategic transaction; |
• | the potential loss of key employees; |
• | the risk that we do not realize a satisfactory return on our investments; |
• | use of resources that are needed in other parts of our business; and |
• | use of substantial portions of our available cash to consummate the acquisition or strategic transaction. |
• | overall performance of the equity markets; |
• | our operating performance and the performance of other similar companies; |
• | changes in the estimates of our operating results that we provide to the public or our failure to meet these projections; |
• | failure of securities analysts to maintain coverage of us, changes in financial estimates by securities analysts who follow our company or our failure to meet these estimates or the expectations of investors or changes in recommendations by securities analysts that elect to follow our Class B common stock; |
• | sales of shares of our Class B common stock by us or our stockholders, including same day sales to cover tax withholdings as a result of settlement of restricted stock units; |
• | announcements of technological innovations, new products or enhancements to services, acquisitions, strategic alliances or significant agreements by us or by our competitors; |
• | disruptions in our services due to computer hardware, software or network problems; |
• | announcements of customer additions and customer cancellations or delays in customer purchases; |
• | recruitment or departure of key personnel; |
• | the economy as a whole, market conditions in our industry and the industries of our customers; |
• | litigation involving us, our industry or both, or investigations by regulators into our operations or those of our competitors; |
• | developments or disputes concerning our intellectual property or other proprietary rights; |
• | new laws or regulations or new interpretations of existing laws or regulations applicable to our business; and |
• | the size of our market float. |
• | adoption of a merger or consolidation agreement involving our company; |
• | a sale, lease or exchange of all or substantially all of our property and assets; |
• | a dissolution or liquidation of our company; or |
• | every matter, if and when any individual, entity or “group” (as such term is used in Regulation 13D of the Exchange Act) has, or has publicly disclosed (through a press release or a filing with the SEC) an intent to have, beneficial ownership of 30% or more of the number of outstanding shares of Class A common stock and Class B common stock, combined. |
• | Our board of directors is classified into three classes of directors with staggered three-year terms and directors are only able to be removed from office for cause, which may delay the replacement of a majority of our board of directors or impede an acquirer from rapidly replacing our existing directors with its own slate of directors. |
• | Subject to the rights of the holders of any series of preferred stock to elect directors under specified circumstances, only our board of directors has the right to fill a vacancy created by the expansion of our board of directors or the resignation, death or removal of a director, which prevents stockholders from being able to fill vacancies on our board of directors. |
• | Our stockholders may not act by written consent or call special stockholders’ meetings; as a result, a holder, or holders, controlling a majority of our Class A and Class B common stock are not be able to take certain actions other than at annual stockholders’ meetings or special stockholders’ meetings, which special meetings may only be called by the chairman of our board, our chief executive officer, our president, or a majority of our board of directors. |
• | Certain litigation against us can only be brought in Delaware. |
• | Our restated certificate of incorporation authorizes undesignated preferred stock, the terms of which may be established and shares of which may be issued, by our board of directors without the approval of the holders of Class B common stock, which makes it possible for our board of directors to issue preferred stock with voting or other rights or preferences that could impede the success of any attempt to acquire us. |
• | Advance notice procedures and additional disclosure requirements apply for stockholders to nominate candidates for election as directors or to bring matters before a meeting of stockholders, which may discourage or deter a potential acquirer from conducting a solicitation of proxies to elect the acquirer’s own slate of directors or otherwise attempting to obtain control of our company. |
• | Our restated certificate of incorporation prohibits cumulative voting in the election of directors, which limits the ability of minority stockholders to elect director candidates. |
• | Amendment of the anti-takeover provisions of our restated certificate of incorporation require super majority approval by holders of at least two-thirds of our outstanding Class A and Class B common stock, combined. and |
• | In certain circumstances pertaining to change in control, the sale of all or substantially all of our assets and liquidation matters, and on all matters if and when any individual, entity or group has, or has publicly disclosed an intent to have, beneficial ownership of 30% or more of the number of outstanding shares of our Class A and Class B common stock, combined, holders of our Class A common stock are entitled to ten votes per share and holders of our Class B common stock are entitled to one vote per share. As of June 30, 2018, holders of our Class A common stock owned approximately 38% and holders of our Class B common stock owned approximately 62% of the outstanding shares of our Class A and Class B common stock, combined. However, because of our dual class common stock structure these holders of our Class A common stock have approximately 86% and holders of our Class B common stock have approximately 14% of the total votes with respect to the matters specified above. In all other circumstances, holders of our Class A and Class B common stock are each entitled to one vote per share, and in these other circumstances the holders of our Class A common stock have approximately 38% and holders of our Class B common stock have approximately 62% of the total votes. |
Incorporate by Reference | ||||||||||||
Exhibit Number | Description of Document | Form | File No. | Filing Date | Exhibit | Filed Herewith | ||||||
10.17** | X | |||||||||||
31.1 | X | |||||||||||
31.2 | X | |||||||||||
32.1* | X | |||||||||||
32.2* | X | |||||||||||
101.INS | XBRL Instance Document | X | ||||||||||
101.SCH | XBRL Taxonomy Schema Linkbase Document | X | ||||||||||
101.CAL | XBRL Taxonomy Calculation Linkbase Document | X | ||||||||||
101.DEF | XBRL Taxonomy Definition Linkbase Document | X | ||||||||||
101.LAB | XBRL Taxonomy Labels Linkbase Document | X | ||||||||||
101.PRE | XBRL Taxonomy Presentation Linkbase Document | X |
* | The certifications on Exhibit 32 hereto are deemed not “filed” for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, or otherwise subject to the liability of that Section. Such certifications will not be deemed incorporated by reference into any filing under the Securities Act or the Exchange Act. |
** | Indicates a management contract, compensatory plan or arrangement. |
CASTLIGHT HEALTH, INC. | ||||
Date: | August 1, 2018 | By: | /s/ Siobhan Nolan Mangini | |
Siobhan Nolan Mangini | ||||
Chief Financial Officer (Principal Financial Officer) |
1. | Continued Employment. From the Effective Date through the Separation Date (defined below) (the “Employment Period”), you will be employed by the Company as an Advisor to the Chief Executive Officer of the Company, reporting to the Chief Executive Officer. You will provide transition services as may be assigned to you in writing by the Chief Executive Officer. |
2. | Salary and Benefits Continuation. During the Employment Period, you will continue to be paid your base salary at the rate in effect on the date of this Amendment and be eligible for employee benefit plans as set forth in your Offer Letter. Your bonus for the first half of fiscal year 2017 will be paid consistent with standard Company practices, at a rate based on the greater of (i) the standard rate applied to the senior leadership team or (ii) the amount paid to the Company’s Chief Executive Officer. Notwithstanding the foregoing, Section 5 (Compensation Equivalency) in your Offer Letter shall cease to apply. |
3. | Separation Date. Provided that you continue to perform your obligations under (i) the Non- Competition Agreement, (ii) the Confidentiality Agreement, and (iii) as otherwise reasonably outlined and prescribed in writing by the Company’s Chief Executive Officer (collectively, the “Continuing Obligations”), your status as an officer and an employee of the Company and any of the Company’s subsidiaries will end effective as of September 30, 2018 (the “Separation Date”). On that date, you and the Company shall sign the Separation Agreement and General Release Agreement that is attached hereto as Exhibit A. In the event your employment is terminated as a result of your death prior to the Separation Date, you (or your designated beneficiary) will continue to be entitled to the Separation Benefits set forth in Section 3 of Exhibit A, subject to your (or your beneficiary’s) timely execution thereof. In the event your employment is terminated for a failure to adhere to the Continuing Obligations prior to the Separation Date, you will no longer be eligible for any of the Separation Benefits. |
4. | Choice of Law. This Amendment shall in all respects be governed and construed in accordance with the laws of the State of California, including all matters of construction, validity and performance, without regard to conflicts of law principles. |
5. | Entire Agreement. This Amendment, together with the Offer Letter, Confidentiality Agreement and Non-Compete Agreement contain the entire agreement with respect to the terms of your employment, including the transition and separation of your employment, and supersedes and replaces any prior agreements as to those matters, whether oral or written (including any amounts otherwise payable pursuant to the Executive Severance Agreement) except as expressly set forth herein. For the avoidance of doubt, this Agreement shall not supersede (i) that certain Equity Waiver or (ii) Benefits Waiver, each by and between you and the Company |
DATE: June 9, 2018 | By: /s/ Derek Newell | |||
Name: Robert Derek Newell | ||||
DATE: June 9, 2018 | CASTLIGHT HEALTH, INC. | |||
By: /s/ John Doyle | ||||
Name: John Doyle | ||||
Title: CEO |
• | Effective Date. This Agreement shall become effective on the eighth (8th) day after Employee signs and returns this Agreement to the Company in accordance with Section 15 (“Effective Date”) provided that Employee does not revoke this Agreement prior to such date pursuant to Section 15(f) below and provided further that Employee returns this signed agreement to the Company by no later than [Date]. |
• | Separation of Employment. Employee acknowledges and agrees that (a) Employee’s employment with the Company ceased effective as of the Separation Date; (b) Company has provided Employee a final paycheck that included payment of all remuneration that Employee earned through the Separation Date (subject to Section 3(a) below); (c) Company has provided Employee all forms required under California law; (d) Company has paid all salary, wages, bonuses and any and all other benefits and compensation that Employee earned during his employment with the Company; (e) Employee will submit his final documented expense reimbursement statement within ten (10) days following the Separation Date; and (f) except as otherwise provided in this Agreement, all benefits and perquisites of employment ceased as of the Separation Date and Employee will not receive any further salary, bonuses, vesting of any equity or benefits, or other forms of compensation after the Separation Date from the Company or any of its affiliates. |
• | Separation Benefits. In exchange for Employee’s releases and the promises and covenants contained herein, Employee will be entitled to receive the payments and benefits set forth below: |
◦ | Payment of 15 months Base Salary and 15 times the applicable COBRA Coverage, as such terms are defined in that certain Executive Severance Agreement by and between the Company and Employee, dated January |
◦ | Each of Employee’s unvested options to purchase shares of common stock in Jiff, Inc. which were converted into options to purchase shares of the Company’s common stock (all equity grants in Employee's Schwab account that begin with the letter “J”) shall become immediately vested and exercisable as of the Separation Date. |
◦ | Provided Employee continues to perform his obligations under (i) this Agreement, |
• | General Release. In consideration of and as a precondition to the Company’s payment of the benefits outlined in this Agreement, which includes consideration to which Employee otherwise would not be entitled, Employee and Company agree as follows: |
◦ | Employee, for and on behalf of himself, his agents, heirs, executors, administrators, and assigns, does hereby release and forever discharge the Company, and its successors and assigns, and each of its and their respective directors, officers, employees, shareholders, members, partners, subsidiaries, affiliates (including any sister and parent companies) and each of their respective agents, directors, officers, partners, employees and attorneys (collectively, “Releasees” and individually, “Releasee”), and each of them, from any and all claims, known or unknown, suspected or unsuspected, that Employee has or may have |
◦ | The Company does hereby release and forever discharge the Employee and his heirs from any and all claims, known or unknown, suspected or unsuspected, that Company has or may have as to the Employee, relating to, or arising out of, the employment of Employee with Company. However, this release is not intended to bar any claims related to the Continuing Obligations, or any claims that, by statute, may not be waived. |
◦ | Each of the parties is familiar with section 1542 of the California Civil Code, which reads as follows: |
◦ | Nothing herein is intended to release the Company’s statutory obligation under California Labor Code §2802 to indemnify Employee for any losses or expenditures incurred as a direct consequence of discharging his duties. |
• | Covenant Not To Sue. Employee covenants and agrees that he will never, individually or with any person, or through any agent, commence or prosecute against Company or any Releasee any action or other proceeding for any claim which is released or waived in this Agreement (provided, however, that nothing in this Agreement prevents Employee from challenging the waiver of his ADEA claims set forth below in Section 15). The Company covenants and agrees that it will never, individually or with any person, or through any agent, commence or prosecute against Employee any action or other proceeding otherwise covered by Section 4(b). Employee further agrees that he will not aid, assist, abet or in any way encourage any third party or third-party entity to, in any way, pursue any claims of any kind against Company or any Releasee, unless he is specifically required by law to engage in such activity. Company further agrees that it will |
• | Assignment; Authority. Employee represents and warrants that: no other person had or has or claims any interest through Employee in the claims released in this Agreement; he has the sole right and exclusive authority to execute this Agreement; he has the sole right to receive consideration paid therefore; there are no liens or claims of liens or assignments in law or equity or otherwise of or against any of the claims or causes of action or matters released herein; and he has not sold, assigned, transferred, conveyed or otherwise disposed of any claim or demand relating to any matter covered by this Agreement. The rights and obligations of the Parties to this Agreement will be binding on, and will be of benefit to, each of the parties successors, assigns, heirs and estates. For avoidance of doubt, (i) if Employee should die at anytime after this Agreement is signed, all the benefits in Section 3 above shall accrue to his heirs and estates as if Employee were still alive and had fulfilled all his obligations under this Agreement to accrue the benefits in Section 3; and (ii) if there is a Corporate Transaction (as defined in the Executive Severance Agreement), the acquirer will be responsible for all of the obligations under this Agreement. |
• | Confidential Information. Employee acknowledges and agrees that during the course of his employment with the Company, Employee had access to and became acquainted with the Company’s lists of clients, client information, computer programs, contracts, business plans and strategies, prices, reports, financial data and similar confidential or proprietary materials or information about |
• | Non-Disparagement. Employee agrees that he shall not disparage the Releasees to anyone, including but not limited to, employees and former employees, media or other third parties, or otherwise make statements or take actions (including on social media) which would place the Releasees, or any of them, in a negative light. Similarly, Employee will not disparage any Company product or service to anyone, including but not limited to, employees and former employees, media or other third parties, or otherwise make statements or take actions (including on social media) which would place such service in a negative light. Company agrees that none of its Executive Committee members or members of the Board of Directors shall disparage Employee to anyone, including but not limited to Company employees and former employees, media or other third parties, or otherwise make statements or take action (including on social media) which would place Employee in a negative light. |
• | Company Property. Employee acknowledges and agrees that, to the extent he has not already done so, he shall by the Separation Date deliver to the Company all property of the Company, including, but not limited to, equipment (e.g., laptop computer and cellular telephone), passwords, notebooks, electronic storage devices, credit cards, business cards, keys, parking or building access cards, documents, memoranda, reports, written and computer files and data, books, correspondence, lists, or other written or graphic records, and the like, relating to the Company’s business, that are in Employee’s possession or control, including but not limited to copies (including electronic copies) of any documents or files that contain the Company’s Confidential Information. |
• | Future Cooperation. The Parties agree not to act in any unlawful manner that might damage the business or reputation of the Company, Employee or the Releasees. The Parties agree not to counsel or assist any attorneys or their clients in the presentation or prosecution of any disputes, differences, grievances, claims, charges or complaints by any third party against the Company, Employee and/or any Releasees, unless under subpoena or other court or administrative order or legal process to do so. The Parties further agree both to immediately notify the other Party upon receipt of any court order, subpoena, or other legal discovery device that seeks or might require the disclosure or production of the existence or terms of this Agreement, and to furnish within six (6) business days of their |
• | Waiver, Modification and Amendment. No provision of this Agreement may be waived unless in writing signed by both parties hereto. Waiver of any one provision herein shall not be deemed to be a waiver of any other provision herein. This Agreement may be modified or amended only by a written agreement executed by the parties affected thereby. |
• | Collaborative Effort. The Company has advised Employee to consult with independent legal counsel prior to executing this Agreement. The parties shall bear their own costs and attorneys' fees incurred in negotiating and drafting this Agreement or incurred prior to the date of execution hereof. No party hereto or their respective attorneys shall be deemed to have drafted this Agreement, or any portion thereof, for purposes of |
• | Execution and Governing Law. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original but all of which together shall constitute a single document. This Agreement is entered into in, and shall be governed by and construed and interpreted in accordance with, the internal laws of the State of California without giving effect to its conflict of laws provisions. Employee acknowledges that he has read this Agreement, understands all of its terms and executes this Agreement voluntarily and with full knowledge of its significance. |
• | Severability. If any term, provision, covenant, or condition of this Agreement (the "Provision") is held by an arbitrator or a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions of this Agreement shall remain in full force and effect and in no way shall be affected, impaired, or invalidated. If possible, the Provision shall remain in effect but shall be modified by the court or arbitrator only to the extent necessary to make it reasonable. |
• | Age Discrimination Disclosure, Review and Revocation. Without detracting in any respect from any other provision of this Agreement: |
◦ | In consideration of the separation benefits provided in this Agreement, Employee agrees and acknowledges that this Agreement constitutes a knowing and voluntary waiver of all rights or claims he has or may have against the Company as set forth herein, including, but not limited to, all rights or claims arising under the Age Discrimination in Employment Act of 1967, as amended, including, but not limited to, all claims of age discrimination in employment and all claims of retaliation in violation of the ADEA. |
◦ | Employee understands that, by entering into this Agreement, he does not waive rights or claims that may arise after the date of his execution of this Agreement, including without limitation any rights or claims that he may have to secure enforcement of the terms and conditions of this Agreement. |
◦ | Employee agrees and acknowledges that the consideration provided to |
◦ | The Company hereby advises Employee to consult with an attorney prior to executing this Agreement. |
◦ | Employee acknowledges that he has at least twenty-one (21) days in which to review and consider this Agreement and, in the event Employee signs and returns this Agreement prior to such twenty-one (21)-day period, Employee acknowledges that he will have done so voluntarily and with full knowledge that he was waiving his right to have twenty-one (21) days to review and consider the Agreement. |
◦ | The Company agrees that Employee may revoke this Agreement within seven |
◦ | Employee agrees that any change to this Agreement, whether material or immaterial, will not restart the twenty-one (21)-day review period. |
◦ | Nothing in this Agreement prevents or precludes Employee from challenging or seeking a determination in good faith of the validity of this waiver under the ADEA, nor does it impose any condition precedent, penalties or costs from doing so, unless specifically authorized by federal law. |
• | Defend Trade Secrets Act. Pursuant to the Defend Trade Secrets Act of 2016 (18 |
• | Entire Agreement. Other than expressly excepted herein, this Agreement (along with the Confidentiality Agreement and Non-Competition Agreement) constitutes the entire agreement between and among the parties pertaining to the subject matter hereof and the final, complete and exclusive expression of the terms and conditions of their Agreement. Any and all prior agreements, representations, negotiations and understandings made by the parties, oral and written, express or implied, are hereby superseded and merged herein. This Agreement may be modified, amended or waived, in whole or in part, only by a written agreement executed by the parties affected thereby. If any of the terms or provisions of this Agreement or the Confidentiality Agreement are found to be legally unenforceable, then the remaining terms and conditions shall nevertheless be fully enforceable without regard to the terms or provisions that are found to be legally unenforceable. For the avoidance of doubt, this Agreement shall not supersede (i) that certain |
• | Not an Admission of Liability. This Agreement, and its performance, does not constitute and will not be construed as an admission by Company or Employee of the truth of any contested matter, or of any liability, wrongful act, or omission. |
• | Breach of Agreement. If, in connection with a breach of this Agreement, either party is required to retain and utilize the services of counsel to enforce this Agreement, the parties agree that the substantially prevailing party in any such enforcement proceeding shall be entitled to its reasonable attorneys’ fees and costs, including costs of expert witnesses, unless otherwise prohibited by law. |
• | Tax and Withholding. All forms of compensation referred to in this Agreement or the Executive Severance Agreement are subject to reduction to reflect applicable withholding and payroll taxes and other deductions required by law. In the event that the payments provided for in this Agreement constitute “parachute payments” within the meaning of |
Vicki Ryan | |||
Chief People Officer | |||
Signature | Date | ||
Robert Derek Newell | |||
Signature | Date |
1. | I have reviewed this Quarterly Report on Form 10-Q of Castlight Health, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial |
c. | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
CASTLIGHT HEALTH, INC. | |||
By: | /s/ John C. Doyle | ||
Dated: | John C. Doyle | ||
August 1, 2018 | Chief Executive Officer (Principal Executive Officer) |
1. | I have reviewed this Quarterly Report on Form 10-Q of Castlight Health, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial |
c. | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
CASTLIGHT HEALTH, INC. | |||
By: | /s/ Siobhan Nolan Mangini | ||
Dated: | Siobhan Nolan Mangini | ||
August 1, 2018 | Chief Financial Officer (Principal Financial Officer) |
CASTLIGHT HEALTH, INC. | |||
By: | /s/ John C. Doyle | ||
John C. Doyle | |||
Chief Executive Officer (Principal Executive Officer) | |||
Dated: | |||
August 1, 2018 |
CASTLIGHT HEALTH, INC. | |||
By: | /s/ Siobhan Nolan Mangini | ||
Siobhan Nolan Mangini | |||
Chief Financial Officer (Principal Financial Officer) | |||
Dated: | |||
August 1, 2018 |
Document and Entity Information - shares |
6 Months Ended | |
---|---|---|
Jun. 30, 2018 |
Jul. 27, 2018 |
|
Class of Stock [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2018 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | CSLT | |
Entity Registrant Name | CASTLIGHT HEALTH, INC. | |
Entity Central Index Key | 0001433714 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Class A | ||
Class of Stock [Line Items] | ||
Entity Common Stock, Shares Outstanding | 51,923,213 | |
Class B | ||
Class of Stock [Line Items] | ||
Entity Common Stock, Shares Outstanding | 85,836,963 |
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
||||||||
Revenue: | |||||||||||
Subscription | $ 34,802 | $ 30,382 | [1] | $ 67,791 | $ 56,279 | [1] | |||||
Professional services and other | 2,982 | 2,250 | [1] | 6,472 | 4,056 | [1] | |||||
Total revenue, net | 37,784 | 32,632 | 74,263 | 60,335 | |||||||
Cost of revenue: | |||||||||||
Cost of subscription | [2] | 9,140 | 7,706 | [1] | 18,314 | 11,952 | [1] | ||||
Cost of professional services | [2] | 6,590 | 4,628 | [1] | 12,359 | 8,437 | [1] | ||||
Total cost of revenue | 15,730 | 12,334 | 30,673 | 20,389 | [1] | ||||||
Gross profit | 22,054 | 20,298 | 43,590 | 39,946 | [1] | ||||||
Operating expenses: | |||||||||||
Sales and marketing | [2] | 13,306 | 15,935 | [1] | 27,218 | 30,081 | [1] | ||||
Research and development | [2] | 16,425 | 15,194 | [1] | 31,796 | 26,265 | [1] | ||||
General and administrative | [2] | 6,382 | 6,766 | [1] | 13,207 | 15,764 | [1] | ||||
Total operating expenses | 36,113 | 37,895 | [1] | 72,221 | 72,110 | [1] | |||||
Operating loss | (14,059) | (17,597) | [1] | (28,631) | (32,164) | [1] | |||||
Other income, net | 101 | 12 | [1] | 229 | 205 | [1] | |||||
Loss before income tax benefit | (13,958) | (17,585) | [1] | (28,402) | (31,959) | [1] | |||||
Income tax benefit | 0 | (5,206) | [1] | 0 | (5,206) | [1] | |||||
Net loss | $ (13,958) | $ (12,379) | [1] | $ (28,402) | $ (26,753) | [1] | |||||
Net loss per share, basic and diluted | $ (0.10) | $ (0.09) | [1] | $ (0.21) | $ (0.23) | [1] | |||||
Weighted-average shares used to compute basic and diluted net loss per share | 136,682 | 130,537 | 135,843 | 117,807 | |||||||
|
Consolidated Statements of Operations Parenthetical - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Cost of subscription [Member] | ||||
Allocated Share-based Compensation Expense | $ 231 | $ 253 | $ 473 | $ 380 |
Cost of professional services [Member] | ||||
Allocated Share-based Compensation Expense | 315 | 363 | 616 | 609 |
Sales and marketing [Member] | ||||
Allocated Share-based Compensation Expense | 1,318 | 2,441 | 2,456 | 4,595 |
Research and development [Member] | ||||
Allocated Share-based Compensation Expense | 1,908 | 2,254 | 3,562 | 4,044 |
General and administrative [Member] | ||||
Allocated Share-based Compensation Expense | $ 1,375 | $ 1,169 | $ 2,632 | $ 2,464 |
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
[1] | Jun. 30, 2018 |
Jun. 30, 2017 |
[1] | |||
Statement of Comprehensive Income [Abstract] | ||||||||
Net loss | $ (13,958) | $ (12,379) | $ (28,402) | $ (26,753) | ||||
Other comprehensive income (loss): | ||||||||
Net change in unrealized gain (loss) on available-for-sale marketable securities | 11 | 4 | 13 | (15) | ||||
Other comprehensive income (loss) | 11 | 4 | 13 | (15) | ||||
Comprehensive loss | $ (13,947) | $ (12,375) | $ (28,389) | $ (26,768) | ||||
|
Consolidated Statements of Cash Flows - USD ($) $ in Thousands |
6 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
||||||||
Statement of Cash Flows [Abstract] | |||||||||
Restricted Cash | $ 1,325 | $ 1,507 | |||||||
Restricted cash, non-current | 1,325 | ||||||||
Non-cash Purchase Consideration Related To Acquisition | 0 | 101,692 | |||||||
Operating activities: | |||||||||
Net loss | (28,402) | (26,753) | [1] | ||||||
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||||
Depreciation and amortization | 3,573 | 2,758 | [2] | ||||||
Stock-based compensation | 9,739 | 12,092 | [2] | ||||||
Amortization of deferred commissions | 5,800 | 4,289 | [2] | ||||||
Amortizations Of Deferred Professionals Costs | 2,097 | 1,958 | [2] | ||||||
Business Exit Costs | 1,817 | 0 | [2] | ||||||
Release of deferred tax valuation allowance due to business combination | 0 | (5,206) | [2] | ||||||
Change in fair value of contingent consideration liability | 0 | (643) | [2] | ||||||
Release of deferred tax valuation allowance due to business combination | (266) | 84 | [2] | ||||||
Change in fair value of contingent consideration liability | |||||||||
Accretion and amortization of marketable securities | (6,252) | (3,117) | [2] | ||||||
Changes in operating assets and liabilities: | (2,979) | (3,452) | [2] | ||||||
Deferred Commissions | 24,691 | ||||||||
Deferred commissions | (1,896) | (859) | [2] | ||||||
Deferred professional service costs | 511 | (508) | [2] | ||||||
Increase (Decrease) in Deferred Charges | (1,389) | (1,853) | [2] | ||||||
Accounts payable | (1,210) | 6,711 | [2] | ||||||
Net cash used in operating activities | (20,086) | (15,026) | [2] | ||||||
Increase (Decrease) in Accrued Liabilities | (1,229) | (527) | [2] | ||||||
Deferred revenue | |||||||||
Net cash used in operating activities | (1,304) | (930) | [2] | ||||||
Investing activities: | (23,979) | (31,775) | [2] | ||||||
Business combination, net of cash acquired | 0 | (2,264) | [2] | ||||||
Purchase of marketable securities | 1,167 | 28,768 | [2] | ||||||
Maturities of marketable securities | |||||||||
Net cash provided by investing activities | 0 | (731) | [2] | ||||||
Financing activities: | 2,242 | 100 | [2] | ||||||
Payments of issuance costs related to equity | (16,677) | 13,842 | [2] | ||||||
Proceeds from Sale and Maturity of Available-for-sale Securities | 26,450 | 63,737 | [2] | ||||||
Net cash provided by financing activities | [3] | 61,319 | |||||||
Cash, cash equivalents and restricted cash at end of period | 44,642 | 62,201 | |||||||
Restricted cash | |||||||||
Cash, cash equivalents and restricted cash at beginning of period | 45,967 | 63,708 | |||||||
Proceeds from Stock Options Exercised | $ 2,242 | $ 831 | [2] | ||||||
|
Organization and Description of Business |
6 Months Ended |
---|---|
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Description of Business | Organization and Description of Business Castlight Health, Inc. (“Castlight” or “the Company”) offers a comprehensive software-as-a-service platform that simplifies health benefits navigation for millions of employees. The Castlight platform matches employees to the best resources their employers make available to them, whether they are healthy, actively seeking medical care, or managing a condition, and motivates them to take the best steps for their health. Castlight helps employers generate more value from their benefits investments by helping to improve outcomes, lower health care costs, and increase benefits satisfaction. On April 3, 2017, the Company expanded into wellbeing through its acquisition of Jiff, Inc. (“Jiff”). Jiff's results of operations have been included in the Company’s Consolidated Statements of Operations beginning April 3, 2017. See Note 5–Business Combinations for more information on the Jiff acquisition. The Company was incorporated in the State of Delaware in January 2008. The Company's principal executive offices are located in San Francisco, California. |
Summary of Significant Accounting Policies |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies | Accounting Standards and Significant Accounting Policies Basis of Presentation and Principles of Consolidation The accompanying unaudited condensed consolidated financial statements include Castlight and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. In the opinion of management, the information herein reflects all adjustments, consisting only of normal recurring adjustments except as otherwise noted, considered necessary for a fair statement of results of operations, financial position and cash flows. The results for the interim periods presented are not necessarily indicative of the results expected for any future period. The following information should be read in conjunction with the audited financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. Effective January 1, 2018, the Company adopted Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (“ASC 606”) using the full retrospective method. Amounts and disclosures set forth in this Form 10-Q have been updated to comply with this new standard. Certain prior period amounts reported in the condensed consolidated financial statements and notes have been reclassified to conform to current period presentation. Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires the Company to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements, as well as the reported amounts of revenue and expenses during the reporting period. These estimates include, but are not limited to the determination of: •The fair value of assets acquired and liabilities assumed for business combination; •The amortization period for deferred commissions and deferred professional services costs; •Variable consideration included in the transaction price of the Company’s contracts with customers; •The standalone selling price of the performance obligations in the Company’s contracts with customers; and •Assumptions used in the valuation of certain equity awards. Actual results could differ from those estimates, and such differences could be material to the Company’s consolidated financial position and results of operations. Recently Adopted Accounting Pronouncements Revenue Recognition In May 2014 the Financial Accounting Standards Board (“FASB”) issued ASC 606. ASC 606 supersedes the revenue recognition requirements in ASC 605, Revenue Recognition, and requires the recognition of revenue when promised goods or services are transferred to customers in an amount that reflects the considerations to which the entity expects to be entitled to in exchange for those goods or services. ASC 606 also includes Subtopic 340-40, Other Assets and Deferred Costs - Contracts with Customers, which requires the deferral of incremental costs of obtaining and fulfilling a contract with a customer. The key changes from adopting the new standard are:
Select unaudited condensed consolidated balance sheet line items, which reflect the adoption of ASC 606 are as follows (in thousands):
_______________________
Select unaudited condensed consolidated statement of operations line items, which reflect the adoption of ASC 606 are as follows (in thousands, except per share amounts):
Statement of Cash Flows In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (“ASU 2016-18”). The standard requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. The standard became effective for the Company beginning January 1, 2018, and early adoption was permitted. The Company early adopted the standard in the fourth quarter of 2017 using the full retrospective method. As a result of adopting ASU 2016-18, the Company adjusted the condensed consolidated statement of cash flows from previously reported amounts. Select unaudited condensed consolidated statement of cash flows line items, which reflect the adoption of ASC 606 and ASU 2016-18 are as follows (in thousands):
_______________________ (1) Adjusted to reflect the adoption of ASC 606. (2) Adjusted to reflect the adoption of ASU 2016-18. Financial Instruments In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”), which amends various aspects of the recognition, measurement, presentation, and disclosure of financial instruments. The Company adopted ASU 2016-01 as of January 1, 2018 using the modified retrospective method for its marketable equity securities, which currently consist of money market mutual funds. The Company currently does not have any non-marketable equity securities. The adoption of ASU 2016-01 did not have a significant impact on the Company’s financial position or results of operations. Summary of Significant Accounting Policies Revenue Recognition Revenues are derived primarily from contracts with customers for subscription services and professional services. Revenues are recognized when control of these services is transferred to the Company’s customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those services. Revenues do not include sales taxes. We determine revenue recognition through the following steps:
Subscription Revenue. Subscription revenue recognition commences on the date that the Company’s subscription services are made available to the customer, which the Company considers to be the launch date, and subscription revenue is generally recognized over the contract term. Subscription contracts are generally three years in length and certain contracts include termination provisions. Some of the Company’s subscription contracts include performance incentives that are generally based on engagement. Additionally, some of the Company’s subscription contracts include audit provisions. The Company considers fees related to performance incentives and audit provisions to be variable consideration. The Company estimates variable consideration at the most likely amount to which it expects to be entitled. The Company includes estimated amounts in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. The Company’s estimates of variable consideration and determination of whether to include estimated amounts in the transaction price are based largely on an assessment of its anticipated performance as well as other information available to the Company. The Company reassesses its estimates related to variable consideration each reporting period and records adjustments when appropriate. Professional Services and Other Revenue. Professional services and other revenue is primarily comprised of implementation services and communication services related to the Company's subscription service. Nearly all of the Company's professional services are sold on a fixed-fee basis. The Company determined its implementation services are not capable of being distinct. Accordingly, the Company recognizes implementation services revenue in the same manner as the subscription service, beginning on the launch date. The Company determined its communication services are distinct and the associated revenue is recognized over time from the commencement of the communication services through the end of the contractual term. Professional services and other revenue also includes revenue from products sold through the Company’s online marketplace and add-on subscription services made available from other ecosystem partners. These revenues are recognized on a net basis primarily because the Company acts as an agent in these contracts. Contracts with Multiple Performance Obligations. Most of the Company’s contracts have multiple performance obligations consisting of subscription services and professional services, including implementation services and communication services. For arrangements with multiple performance obligations, the Company evaluates whether the individual performance obligations are distinct. If the performance obligations are distinct, revenue is recognized for the respective performance obligation separately. If one or more of the performance obligations are not distinct, the performance obligations that are not distinct are combined with the Company's subscription service, and revenue for the combined performance obligation is recognized over the term of the subscription service commencing on the launch date. The Company has concluded that its subscription services and its communication services are distinct. Conversely, the Company has concluded that its implementation services are not distinct, primarily because these services are not capable of being distinct as the customer cannot benefit from the implementation services on their own. Accordingly, the Company considers the separate performance obligations in its multiple performance obligation contracts to be communication services and a combined performance obligation comprised of subscription services and implementation services. The transaction price for arrangements with multiple performance obligations is allocated to the separate performance obligations based on their standalone selling price. The Company determines standalone selling prices based on its overall pricing objectives taking into consideration market conditions and other factors, including the value of the contracts, the subscription services sold, and customer demographics. Contract Balances The Company records a contract asset when revenue is recognized prior to invoicing. Contract assets are presented within accounts receivable and other in the accompanying condensed consolidated balance sheet. A contract liability represents deferred revenue. Deferred revenue consists of professional services and cloud-based subscription services that have been billed in advance of revenue being recognized. The Company invoices its customers for its cloud-based subscription services based on the terms of the contract, which can be annual, quarterly or monthly installments. Deferred revenue that is anticipated to be recognized during the succeeding 12-month period is recorded as current deferred revenue, and the remaining portion is recorded as non-current. Accounts Receivable and Other Accounts receivable are recorded when invoiced and at the invoiced amount, net of allowances for doubtful accounts, which are not significant for any period presented. When accounts receivable are recorded, the related revenue may not commence until a later date depending on the nature of the services invoiced. Deferred Commissions Deferred commissions are the incremental costs that are incurred to obtain contracts with customers and consist primarily of sales commissions paid to the Company's sales force and channel partners. The commissions for initial contracts are deferred and amortized on a straight-line basis over a period of benefit that the Company has determined typically to be five years. The Company determined the period of benefit by taking into consideration the expected life of its subscription contracts, the expected life of the technology underlying its subscription services and other factors. The commissions for renewal contracts are deferred and then amortized on a straight-line basis over the related contractual renewal period. The deferred commission amounts are recoverable through the Company’s future revenues. Amortization of deferred commissions is included in sales and marketing expense in the accompanying condensed consolidated statements of operations. All costs deferred are reviewed for impairment periodically. Deferred Professional Service Costs Deferred professional services costs are the direct costs incurred to fulfill subscription contracts that occur prior to the launch of the Company’s subscription services. Professional service costs, which primarily consist of employee related expenses attributable to launch activities, are deferred and then amortized on a straight-line basis over a period of benefit that the Company has determined typically to be five years for the same reasons as described in the deferred commissions disclosure above. Deferred professional service costs are recoverable through future revenues. Amortization of deferred professional service costs is included in cost of professional services and other revenue in the accompanying condensed consolidated statements of operations. All costs deferred are reviewed for impairment periodically. Recently Issued Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, Leases (“ASU 2016-02”). The guidance will require lessees to put all leases on their balance sheets, whether operating or financing, while continuing to recognize the expenses on their income statements in a manner similar to current practice. The guidance states that a lessee would recognize a lease liability for the obligation to make lease payments and a right-to-use asset for the right to use the underlying asset for the lease term. The guidance will be effective for the Company beginning January 1, 2019 and early adoption is permitted. The Company is evaluating the full effect the adoption will have on its financial condition, results of operations, and disclosures. The Company is evaluating the accounting, transition and disclosure requirements of the standard and cannot currently estimate the impact of adoption on its consolidated financial statements. In February 2018, the FASB issued ASU 2018-02, Income Statement – Reporting Comprehensive Income: Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (“ASU 2018-02”). The provisions in ASU 2018-02 allow for a reclassification from accumulated other comprehensive income to retained earnings to eliminate the stranded tax effects resulting from the change in federal corporate income tax rate in the Tax Cuts and Jobs Act enacted in December 2017. The Company is required to adopt ASU 2018-02 on January 1, 2019. Early adoption is permitted, including adoption in any interim period for which financial statements have not yet been issued. The adoption of ASU 2018-02 is not expected to have a significant impact on the Company’s financial position or results of operations. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (“ASU 2016-13”). The standard changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The Company will recognize an allowance for credit losses on available-for-sale securities rather than deductions in amortized cost. The standard is effective for fiscal years and interim periods beginning after December 15, 2019. Early adoption is permitted for all periods beginning after December 15, 2018. The adoption of this standard is not expected to have a significant impact on the Company’s financial statements. |
Contract Balances and Performance Obligations (Notes) |
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Revenue from Contract with Customer [Text Block] | Revenue, Deferred Revenue, Contract Balances and Performance Obligations The Company sells to customers based in the United States. Deferred revenue as of June 30, 2018 and December 31, 2017 was $29.2 million and $30.4 million, respectively. Contract assets as of June 30, 2018 and December 31, 2017 were $1.8 million and $1.2 million, respectively. $16.5 million and $12.4 million of revenue was recognized during the three months ended June 30, 2018 and 2017, respectively, that was included in the deferred revenue balances at the beginning of the respective periods. $22.6 million and $17.1 million of revenue was recognized during the six months ended June 30, 2018 and 2017, respectively, that was included in the deferred revenue balances at the beginning of the respective periods. The Company recorded unfavorable cumulative catch-up adjustments to revenue arising from changes in estimates of transaction price of $0.8 million and $0.6 million during the three and six months ended June 30, 2018, respectively. The aggregate balance of remaining performance obligations from non-cancelable contracts with customers as of June 30, 2018 was $143.7 million. The Company expects to recognize approximately 70% of this balance over the next 12 months, with the remaining balance recognized thereafter. Remaining performance obligations are defined as deferred revenue and amounts yet to billed for the non-cancelable portion of contracts. Deferred Costs Changes in the balance of total deferred commissions and total deferred professional service costs during the six months ended June 30, 2018 are as follows (in thousands):
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These costs are reviewed for impairment periodically, and no material impairment charges were recorded for the three and six months ended June 30, 2018. |
Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements The Company measures its financial assets and liabilities at fair value at each reporting period using a fair value hierarchy that requires that the Company maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s classification within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Three levels of inputs may be used to measure fair value: Level 1—Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2—Include other inputs that are directly or indirectly observable in the marketplace. Level 3—Unobservable inputs that are supported by little or no market activity. The fair value of marketable securities included in the Level 2 category is based on observable inputs, such as quoted prices for similar assets at the measurement date; quoted prices in markets that are not active; or other inputs that are observable, either directly or indirectly. These values were obtained from a third-party pricing service and were evaluated using pricing models that vary by asset class and may incorporate available trade, bid and other market information and price quotes from well-established third party pricing vendors and broker-dealers. There have been no changes in valuation techniques in the periods presented. There were no significant transfers between fair value measurement levels as of June 30, 2018 and December 31, 2017. As of June 30, 2018 and December 31, 2017, there were no securities within Level 3 of the fair value hierarchy. The following tables present information about the Company’s assets and liabilities that are measured at fair value on a recurring basis using the above input categories (in thousands):
Gross unrealized gains and losses for cash equivalents and marketable securities as of June 30, 2018 and December 31, 2017 were not material. The Company does not believe the unrealized losses represent other-than-temporary impairments based on the Company’s evaluation of available evidence as of June 30, 2018 and December 31, 2017. There were no realized gains or losses during the three and six months ended June 30, 2018. All of the Company’s marketable securities as of June 30, 2018 and December 31, 2017 mature within one year. Marketable securities on the balance sheets consist of securities with original or remaining maturities at the time of purchase of greater than three months, and the remainder of the securities is reflected in cash and cash equivalents. |
Marketable Securities |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Marketable Securities | Marketable Securities All of the Company’s cash equivalents and marketable securities are classified as “available-for-sale” securities. These securities are reported at fair value, with the related unrealized gains and losses included in accumulated other comprehensive income, a component of stockholders’ equity, except for money market mutual funds, where gains and losses are included in the results of operation. As of June 30, 2018 and December 31, 2017, respectively, marketable securities consisted of the following (in thousands):
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Business Combinations |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations | Business Combinations On April 3, 2017, the Company completed its acquisition of Jiff, Inc. Prior to its acquisition, Jiff provided an enterprise health benefits platform that served as a central hub for employee wellbeing and employee benefit programs. The acquisition enabled the Company to offer a wellbeing platform, healthcare decision support and a benefits hub in one comprehensive package. The Company acquired Jiff for approximately 27,000,000 in shares and options. At the closing of the transaction on April 3, 2017, Venrock, a holder of more than 5% of the Company’s capital stock, acquired a total of 3,965,979 shares of the Company’s Class B common stock in exchange for its shares of Jiff capital stock. Bryan Roberts, who is the chairman of the Company’s board of directors is also a partner at Venrock. Accordingly, the business combination was considered a related party transaction. The Company’s board appointed a special committee, comprised solely of disinterested directors, to which it delegated the full and exclusive power, authority and discretion to evaluate, assess, and approve the Jiff transaction on its behalf, including retaining a financial advisor for an opinion on the fairness of the financial conditions of the transaction. The transaction was approved solely by the special committee, which concluded that the transaction terms were fair to the Company and that the transaction was in the best interests of the Company and its stockholders. As part of the merger, all options to purchase Jiff common stock held by Jiff employees who became employees of the combined company were converted into options to purchase the Company’s Class B common stock. Additionally, certain stockholders and option holders were to receive an aggregate of 1,000,000 shares of the Company’s Class B common stock or options to purchase the Company’s Class B common stock if the Jiff business achieved at least $25 million in revenue in 2017, and an aggregate of 3,000,000 shares of Class B common stock or options to purchase the Company’s Class B common stock if the Jiff business achieved at least $25 million in net new bookings during 2017 (“the milestones”). As of December 31, 2017, the Company evaluated and determined that both milestones were not met. The following table summarizes the components of the purchase consideration transferred based on the closing price of the Company’s stock as of the acquisition date (in thousands):
For the Jiff options assumed as part of the acquisition, the Company applied the ratio of pre-combination service provided, on a grant-by-grant basis, to the total service period and applied this ratio to the acquisition date fair value of the Jiff awards. The Company determined that the contingent consideration shares associated with the milestones are one unit of account, and classified the contingent consideration as a liability as the arrangement can be settled in a variable number of shares and is not considered fixed-for-fixed. The Company determined that the fair value of the contingent consideration liability was $0.7 million at the date of the acquisition. The fair value was estimated by applying the Monte Carlo simulation model, based on the probability of completing the milestones and the changes in the fair value of the Company’s common stock. As of December 31, 2017, the Company determined there would be no related payment because the milestones were not met. The final allocation of purchase consideration to assets acquired and liabilities assumed is reflected below. There were no changes to amounts previously recorded as assets or liabilities that resulted in a corresponding adjustment to goodwill. The fair values of the assets acquired and liabilities assumed by major class in the acquisition of Jiff were recognized as follows (in thousands):
The fair values assigned to tangible assets acquired, liabilities assumed and identifiable intangible assets are based on management’s estimates and assumptions. The excess of purchase consideration over the fair value of net tangible and identifiable intangible assets acquired was recorded as goodwill. The goodwill balance is primarily attributed to the cross-selling opportunities, cost synergies, and a knowledgeable and experienced workforce which play an important role in the integration of the acquired customers and technology. The goodwill balance is not deductible for U.S. income tax purposes. The following table sets forth the fair value components of identifiable acquired intangible assets (dollars in thousands):
Customer relationships represent the fair value of projected cash flows that will be derived from the sale of products to Jiff's existing customers based on existing, in-process, and future versions of the underlying technology. Developed technology represents Jiff’s benefits platform. The Company used the relief from royalty method to value the developed technology. To determine the net cash flow that a market participant would expect to realize from licensing the Company's technology, the Company estimated a net royalty rate, which excludes any expenses that would be incurred to maintain the current functionality of the technology. The Company has included the financial results of Jiff in the Company’s condensed consolidated statements of operations from the date of acquisition. The unaudited pro forma financial information in the table below summarizes the combined results of operations for the Company and Jiff as if the companies were combined as of the beginning of 2016 (the beginning of the comparable prior reporting period in the year of acquisition). The unaudited pro forma condensed combined financial information is presented for informational purposes only. The historical consolidated financial statements have been adjusted in the pro forma combined financial statements to give effect to pro forma events that are directly attributable to the business combination and factually supportable. The unaudited pro forma financial information presented includes the business combination accounting effects resulting from the acquisition, including amortization charges from acquired intangible assets, stock-based compensation, and acquisition-related costs. In addition, the pro forma combined financial statements give effect to the adoption of ASC 606 in 2018. The following table presents the unaudited pro forma condensed combined financial information for the periods presented, except for the financial information presented for the three and six months ended June 30, 2018 which is presented on an as-reported basis (in thousands):
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Property and equipment, net |
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Property and equipment | Property and Equipment Property and equipment consisted of the following (in thousands):
Depreciation and amortization expense for the three months ended June 30, 2018 and 2017 was $0.8 million and $0.8 million, respectively. Depreciation and amortization expense for the six months ended June 30, 2018 and 2017 was $1.5 million and $1.5 million, respectively. Depreciation and amortization are recorded on a straight-line basis. |
Debt (Notes) |
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Debt [Abstract] | |||||||||||||||||||||||||||||
Debt | Debt Term Loan In connection with the Company’s acquisition of Jiff, on April 3, 2017, the Company, Jiff and Silicon Valley Bank (the “Bank”) agreed to refinance the existing term loan facility owed by Jiff to the Bank (the “Loan Agreement”) for approximately $5.6 million (the “Term Loan”). The Term Loan requires interest-only payments for the period May 2017 through September 2018, followed by 36 monthly payments of principal and interest. Obligations under the Term Loan accrue interest at a floating per annum rate equal to the greater of (A) the prime rate as published in the money rates section of The Wall Street Journal (“Prime Rate”) minus 1% or (B) 0%. Interest on the Term Loan is payable monthly. The maturity date of the Term Loan is September 1, 2021. In addition to principal and interest payments, the Company is also required to pay $0.5 million as final payment on the earlier of maturity, termination or prepayment of the Term Loan. The Company accrues for the final payment over the life of the Term Loan using the effective interest method. The future maturities of the Term Loan by year as of June 30, 2018 are as follows (in thousands):
_______________________ (1) Excludes the $0.5 million required to be paid as final payment on the earlier of maturity, termination or prepayment of the Term Loan. (2) Includes $1.4 million classified as debt, current (within accrued expenses and other current liabilities) and $4.2 million classified as debt, non-current on the condensed consolidated balance sheet as of June 30, 2018. Revolving Line of Credit The Loan Agreement also provides for an up to $25 million revolving credit facility (the “Revolving Line”). The Company may request borrowings under the Revolving Line prior to April 3, 2019, on which date the Revolving Line terminates. As of June 30, 2018, no borrowings have been made under the Revolving Line. In relation to the Loan Agreement, the Company is subject to certain financial and reporting covenants. As of June 30, 2018, none of the financial covenants, which require the Company to maintain a certain minimum liquidity ratio, are applicable. The Company was in compliance with all reporting covenants in the Loan Agreement related to the outstanding principal balance as of June 30, 2018. |
Goodwill and Intangible Assets |
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Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill Currently, all of the Company’s goodwill relates to the acquisition of Jiff. The excess of purchase consideration over the fair value of net tangible and identifiable intangible assets acquired was recorded as goodwill. There were no changes to goodwill for the three and six months ended June 30, 2018. Intangible assets, net The following tables set forth the fair value components of identifiable acquired intangible assets (dollars in thousands):
Amortization expense from acquired intangible assets for the three months ended June 30, 2018 and 2017 was $1.0 million and $1.2 million, respectively. Amortization expense from acquired intangible assets for the six months ended June 30, 2018 and 2017 was $2.1 million and $1.2 million, respectively. Amortization expense is included in cost of subscription, and general and administrative, and sales and marketing expenses. Estimated amortization expense for acquired intangible assets for the following five years and thereafter is as follows (in thousands):
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Related Party Transactions (Notes) |
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Jun. 30, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions and Variable Interest Entity | Related Party Transactions and Variable Interest Entity In 2015, the Company made a preferred stock investment of $4.1 million and entered into a strategic alliance with Lyra Health, Inc. ("Lyra"), a related party at the time of the investment. During the fourth quarter of 2017, the Company sold its investment in Lyra to a group of buyers that included related parties for a total selling price of $5.5 million. Lyra was considered a related party to the Company because two of the Company’s directors, Dr. Roberts and Mr. Ebersman, serve on the Lyra board of directors and Mr. Ebersman is Lyra’s chief executive officer. Prior to the sale of the investment in Lyra, the Company determined that Lyra is a variable interest entity and that it was not required to consolidate the operations of Lyra. Because Lyra was a related party and potential buyers were also related parties, the Company formed an independent committee of the Company's board of directors (the "Independent Committee"), comprised solely of disinterested directors, to approve the sale. The Company also engaged an independent third-party valuation expert to assist in determining the fair value of the Company's investment in Lyra. Based in part on the valuation performed, the Company negotiated a selling price of $5.5 million, which the Independent Committee approved after concluding that the transaction terms were fair to the Company. The sale resulted in a pre-tax gain of $1.4 million which was recorded in other income, net within the consolidated statements of operations included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. |
Stock Compensation |
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Equity and Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | Stock Compensation Restricted Stock Units A summary of restricted stock unit activity for the six months ended June 30, 2018 is as follows:
_______________________ (1) Includes 0.7 million performance stock units (“PSUs”) that were granted during the six months ended June 30, 2018. (2) Includes PSUs that were granted in the prior year, which were canceled because performance targets were not achieved. As of June 30, 2018, there was a total of $36.5 million in unrecognized compensation cost related to restricted stock units and performance stock units, which is expected to be recognized over a weighted-average period of approximately 2.68 years. During 2018, the Company awarded 0.7 million PSUs to certain employees. The number of shares that will eventually vest depends on achievement of performance targets for 2018, as determined by the compensation committee of the Company's board of directors, and may range from 0% to 150% of the targeted award amount. Once the performance is determined and a targeted award amount is fixed, the target number of PSUs, if any, will vest in eight quarterly installments, subject to recipients' continued service, beginning on February 16, 2019. The compensation expense associated with the PSUs is recognized using the accelerated method. For the three and six months ended June 30, 2018, the Company recognized compensation expense of approximately $0.3 million and $0.5 million, respectively, related to performance awards. Stock Options A summary of stock option activity for the six months ended June 30, 2018 is as follows:
The total grant-date fair value of stock options granted during the six months ended June 30, 2018 and 2017 was $0.3 million and $0.8 million, respectively. The fair value of each option grant was estimated on the date of grant using the Black-Scholes option-valuation model with the following assumptions and fair value per share:
As of June 30, 2018, the Company had $2.4 million in unrecognized compensation cost related to non-vested stock options, which is expected to be recognized over a weighted-average period of approximately 2.36 years. |
Commitments and Contingencies |
6 Months Ended |
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Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Matters From time to time, the Company may become subject to other legal proceedings, claims or litigation arising in the ordinary course of business. In addition, the Company may receive letters alleging infringement of patents or other intellectual property rights. If an unfavorable outcome were to occur in litigation, the impact could be material to the Company’s business, financial condition, cash flow or results of operations, depending on the specific circumstances of the outcome. The Company accrues for loss contingencies when it is both probable that it will incur the loss and when it can reasonably estimate the amount of the loss or range of loss. Leases and Contractual Obligations The Company’s principal commitments primarily consist of obligations under leases for office space and co-location facilities for data center capacity. The Company’s existing lease agreements provide it with the option to renew and generally provide for rental payments on a graduated basis. The Company’s future operating lease obligations would change if it entered into additional operating lease agreements as the Company expands its operations and if it exercised these options. In March 2018, the Company subleased a portion of its engineering office located in Mountain View, California reducing its total rent obligation by $2.4 million and recognizing a one-time sublease loss of $0.9 million in research and development expense in the accompanying condensed consolidated statement of operations. In June 2018, the Company recognized a lease exit charge of approximately $0.8 million related to the remaining engineering office space in Mountain View, California that the Company will no longer utilize. This charge is recorded in research and development expense in the accompanying condensed consolidated statement of operations. |
Stockholders' Equity |
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Jun. 30, 2018 | |
Equity [Abstract] | |
Stockholders’ Equity | Stockholders’ Equity Common Stock As of June 30, 2018, the Company had 51,923,213 shares of Class A common stock and 85,805,797 shares of Class B common stock outstanding. Transactions with SAP Technologies, Inc. In May 2016, the Company entered into a Securities Purchase Agreement (the “Securities Purchase Agreement”) with SAP Technologies, Inc. (“SAP”) pursuant to which it sold and issued to SAP 4.7 million shares of its Class B Common Stock and a warrant (the “Warrant”), which gave SAP rights to purchase up to 1.9 million shares of the Company's Class B Common Stock for an exercise price of $4.91, subject to certain conditions. The net proceeds from this transaction were $17.8 million, net of issuance costs, and were used for working capital and other general corporate purposes. The Warrant was set to expire four years from the date the Company enters into agreements with SAP related to the distribution and the reselling of the Company’s solutions (the “Alliance Agreement”) within a prescribed period. During the second quarter of 2017, the Company and SAP modified the Warrant to extend the time period allowed to execute the Alliance Agreement from May 17, 2017 to November 17, 2017. However, the Alliance Agreement was not executed prior to that date and as a result, the Warrant expired. The shares and Warrant were considered freestanding instruments and were classified within stockholders’ equity. Initially, upon execution of the Securities Purchase Agreement, the Company preliminarily allocated the net proceeds to the shares, Warrant and a customer prepayment liability classified within accrued expenses and other current liabilities. However, as a result of the Warrant modification during the second quarter of 2017, the Company adjusted its allocation of the net proceeds, changing the classification of the customer prepayment liability to other assets. During the fourth quarter of 2017, the Company released the associated other asset and recorded a $1.1 million non-cash charge in other income, net in the consolidated statement of operations included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. |
Income Taxes |
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Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The effective tax rate for the three and six months ended June 30, 2018 was zero percent. The effective tax rate for the three and six months ended June 30, 2017 was (29.6)% and (16.3)%, respectively. As a result of the acquisition of Jiff in April 2017, the Company recorded a tax benefit of $5.2 million as a discrete item in the second quarter of 2017. This tax benefit is a result of the partial release of its existing valuation allowance since the acquired deferred tax liabilities from Jiff will provide a source of income for the Company to realize a portion of its deferred tax assets, for which a valuation allowance is no longer needed. As of June 30, 2018, all unrecognized tax benefits are subject to a full valuation allowance and, if recognized, will not affect the effective tax rate. The Tax Cuts and Jobs Act enacted on December 22, 2017 resulted in substantial changes including reducing the US federal corporate income tax rate from 35 percent to 21 percent and requiring companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred. The Act creates new taxes starting in 2018 on certain foreign sourced earnings. The Company applied the guidance in SAB 118 and at December 31, 2017 recorded provisional estimates to re-measure deferred taxes and liabilities using the new 21 percent rate which resulted in a net decrease of $54.6 million, with a corresponding offsetting change in valuation allowance of $54.6 million. During the three and six months ended June 30, 2018, the Company has not recorded any measurement period adjustments to the provisional estimates recorded at December 31, 2017. |
Net Loss per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Loss per Share | Net Loss per Share Basic net loss per share is computed by dividing the net loss by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by giving effect to all potential shares of common stock, including Preferred Stock and outstanding stock options and warrants, to the extent dilutive. Basic and diluted net loss per share was the same for each period presented as the inclusion of all potential shares of common stock outstanding would have been anti-dilutive. Net loss is allocated based on the contractual participation rights of the Class A and Class B common stock as if the earnings for the year have been distributed. As the liquidation and dividend rights are identical, the net loss is allocated on a proportionate basis. The following table presents the calculation of basic and diluted net loss per share for the Company’s common stock (in thousands, except per share data):
The following securities were excluded from the calculation of diluted net loss per share for common stock because their effect would have been anti-dilutive for the periods presented (in thousands):
_______________________ (1) 2017 includes 1.9 million warrants issued to SAP that expired during the fourth quarter of 2017, as described in Note 14–Stockholders’ Equity.
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Deferred Costs (Notes) |
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Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Text Block] | Revenue, Deferred Revenue, Contract Balances and Performance Obligations The Company sells to customers based in the United States. Deferred revenue as of June 30, 2018 and December 31, 2017 was $29.2 million and $30.4 million, respectively. Contract assets as of June 30, 2018 and December 31, 2017 were $1.8 million and $1.2 million, respectively. $16.5 million and $12.4 million of revenue was recognized during the three months ended June 30, 2018 and 2017, respectively, that was included in the deferred revenue balances at the beginning of the respective periods. $22.6 million and $17.1 million of revenue was recognized during the six months ended June 30, 2018 and 2017, respectively, that was included in the deferred revenue balances at the beginning of the respective periods. The Company recorded unfavorable cumulative catch-up adjustments to revenue arising from changes in estimates of transaction price of $0.8 million and $0.6 million during the three and six months ended June 30, 2018, respectively. The aggregate balance of remaining performance obligations from non-cancelable contracts with customers as of June 30, 2018 was $143.7 million. The Company expects to recognize approximately 70% of this balance over the next 12 months, with the remaining balance recognized thereafter. Remaining performance obligations are defined as deferred revenue and amounts yet to billed for the non-cancelable portion of contracts. Deferred Costs Changes in the balance of total deferred commissions and total deferred professional service costs during the six months ended June 30, 2018 are as follows (in thousands):
______________________
These costs are reviewed for impairment periodically, and no material impairment charges were recorded for the three and six months ended June 30, 2018. |
Subsequent Events (Notes) |
6 Months Ended |
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Jun. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On August 1, 2018, the Company’s Board of Directors committed to a program to reduce its workforce in order to reduce expenses, align its operations with evolving business needs and improve efficiencies. This was in part due to the unexpected churn of a large customer. Under this program, the Company intends to reduce total expenses by 10%-15% including a reduction of its workforce. The actions associated with this program are expected to be largely completed by September 30, 2018. The Company is unable at this time to make a good faith estimate of the major costs associated with this program, including charges it will incur or related cash expenditures. |
Summary of Significant Accounting Policies (Policies) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of Accounting Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The accompanying unaudited condensed consolidated financial statements include Castlight and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. In the opinion of management, the information herein reflects all adjustments, consisting only of normal recurring adjustments except as otherwise noted, considered necessary for a fair statement of results of operations, financial position and cash flows. The results for the interim periods presented are not necessarily indicative of the results expected for any future period. The following information should be read in conjunction with the audited financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. Effective January 1, 2018, the Company adopted Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (“ASC 606”) using the full retrospective method. Amounts and disclosures set forth in this Form 10-Q have been updated to comply with this new standard. Certain prior period amounts reported in the condensed consolidated financial statements and notes have been reclassified to conform to current period presentation. |
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Use of Estimates | Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires the Company to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements, as well as the reported amounts of revenue and expenses during the reporting period. These estimates include, but are not limited to the determination of: •The fair value of assets acquired and liabilities assumed for business combination; •The amortization period for deferred commissions and deferred professional services costs; •Variable consideration included in the transaction price of the Company’s contracts with customers; •The standalone selling price of the performance obligations in the Company’s contracts with customers; and •Assumptions used in the valuation of certain equity awards. Actual results could differ from those estimates, and such differences could be material to the Company’s consolidated financial position and results of operations. |
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Revenue Recognition | Revenue Recognition Revenues are derived primarily from contracts with customers for subscription services and professional services. Revenues are recognized when control of these services is transferred to the Company’s customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those services. Revenues do not include sales taxes. We determine revenue recognition through the following steps:
Subscription Revenue. Subscription revenue recognition commences on the date that the Company’s subscription services are made available to the customer, which the Company considers to be the launch date, and subscription revenue is generally recognized over the contract term. Subscription contracts are generally three years in length and certain contracts include termination provisions. Some of the Company’s subscription contracts include performance incentives that are generally based on engagement. Additionally, some of the Company’s subscription contracts include audit provisions. The Company considers fees related to performance incentives and audit provisions to be variable consideration. The Company estimates variable consideration at the most likely amount to which it expects to be entitled. The Company includes estimated amounts in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. The Company’s estimates of variable consideration and determination of whether to include estimated amounts in the transaction price are based largely on an assessment of its anticipated performance as well as other information available to the Company. The Company reassesses its estimates related to variable consideration each reporting period and records adjustments when appropriate. Professional Services and Other Revenue. Professional services and other revenue is primarily comprised of implementation services and communication services related to the Company's subscription service. Nearly all of the Company's professional services are sold on a fixed-fee basis. The Company determined its implementation services are not capable of being distinct. Accordingly, the Company recognizes implementation services revenue in the same manner as the subscription service, beginning on the launch date. The Company determined its communication services are distinct and the associated revenue is recognized over time from the commencement of the communication services through the end of the contractual term. Professional services and other revenue also includes revenue from products sold through the Company’s online marketplace and add-on subscription services made available from other ecosystem partners. These revenues are recognized on a net basis primarily because the Company acts as an agent in these contracts. Contracts with Multiple Performance Obligations. Most of the Company’s contracts have multiple performance obligations consisting of subscription services and professional services, including implementation services and communication services. For arrangements with multiple performance obligations, the Company evaluates whether the individual performance obligations are distinct. If the performance obligations are distinct, revenue is recognized for the respective performance obligation separately. If one or more of the performance obligations are not distinct, the performance obligations that are not distinct are combined with the Company's subscription service, and revenue for the combined performance obligation is recognized over the term of the subscription service commencing on the launch date. The Company has concluded that its subscription services and its communication services are distinct. Conversely, the Company has concluded that its implementation services are not distinct, primarily because these services are not capable of being distinct as the customer cannot benefit from the implementation services on their own. Accordingly, the Company considers the separate performance obligations in its multiple performance obligation contracts to be communication services and a combined performance obligation comprised of subscription services and implementation services. The transaction price for arrangements with multiple performance obligations is allocated to the separate performance obligations based on their standalone selling price. The Company determines standalone selling prices based on its overall pricing objectives taking into consideration market conditions and other factors, including the value of the contracts, the subscription services sold, and customer demographics. |
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Revenue from Contract With Customer [Policy Text Block] | Contract Balances The Company records a contract asset when revenue is recognized prior to invoicing. Contract assets are presented within accounts receivable and other in the accompanying condensed consolidated balance sheet. A contract liability represents deferred revenue. |
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Contract Balances | Deferred revenue consists of professional services and cloud-based subscription services that have been billed in advance of revenue being recognized. The Company invoices its customers for its cloud-based subscription services based on the terms of the contract, which can be annual, quarterly or monthly installments. Deferred revenue that is anticipated to be recognized during the succeeding 12-month period is recorded as current deferred revenue, and the remaining portion is recorded as non-current. |
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Accounts Receivable and Other | Accounts Receivable and Other Accounts receivable are recorded when invoiced and at the invoiced amount, net of allowances for doubtful accounts, which are not significant for any period presented. When accounts receivable are recorded, the related revenue may not commence until a later date depending on the nature of the services invoiced. |
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Deferred Commissions | Deferred Commissions Deferred commissions are the incremental costs that are incurred to obtain contracts with customers and consist primarily of sales commissions paid to the Company's sales force and channel partners. The commissions for initial contracts are deferred and amortized on a straight-line basis over a period of benefit that the Company has determined typically to be five years. The Company determined the period of benefit by taking into consideration the expected life of its subscription contracts, the expected life of the technology underlying its subscription services and other factors. The commissions for renewal contracts are deferred and then amortized on a straight-line basis over the related contractual renewal period. The deferred commission amounts are recoverable through the Company’s future revenues. Amortization of deferred commissions is included in sales and marketing expense in the accompanying condensed consolidated statements of operations. All costs deferred are reviewed for impairment periodically. |
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Deferred Professional Service Costs | Deferred Professional Service Costs Deferred professional services costs are the direct costs incurred to fulfill subscription contracts that occur prior to the launch of the Company’s subscription services. Professional service costs, which primarily consist of employee related expenses attributable to launch activities, are deferred and then amortized on a straight-line basis over a period of benefit that the Company has determined typically to be five years for the same reasons as described in the deferred commissions disclosure above. Deferred professional service costs are recoverable through future revenues. Amortization of deferred professional service costs is included in cost of professional services and other revenue in the accompanying condensed consolidated statements of operations. All costs deferred are reviewed for impairment periodically. |
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Recently Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements Revenue Recognition In May 2014 the Financial Accounting Standards Board (“FASB”) issued ASC 606. ASC 606 supersedes the revenue recognition requirements in ASC 605, Revenue Recognition, and requires the recognition of revenue when promised goods or services are transferred to customers in an amount that reflects the considerations to which the entity expects to be entitled to in exchange for those goods or services. ASC 606 also includes Subtopic 340-40, Other Assets and Deferred Costs - Contracts with Customers, which requires the deferral of incremental costs of obtaining and fulfilling a contract with a customer. The key changes from adopting the new standard are:
Select unaudited condensed consolidated balance sheet line items, which reflect the adoption of ASC 606 are as follows (in thousands):
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Select unaudited condensed consolidated statement of operations line items, which reflect the adoption of ASC 606 are as follows (in thousands, except per share amounts):
Statement of Cash Flows In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (“ASU 2016-18”). The standard requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. The standard became effective for the Company beginning January 1, 2018, and early adoption was permitted. The Company early adopted the standard in the fourth quarter of 2017 using the full retrospective method. As a result of adopting ASU 2016-18, the Company adjusted the condensed consolidated statement of cash flows from previously reported amounts. Select unaudited condensed consolidated statement of cash flows line items, which reflect the adoption of ASC 606 and ASU 2016-18 are as follows (in thousands):
_______________________ (1) Adjusted to reflect the adoption of ASC 606. (2) Adjusted to reflect the adoption of ASU 2016-18. Financial Instruments In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”), which amends various aspects of the recognition, measurement, presentation, and disclosure of financial instruments. The Company adopted ASU 2016-01 as of January 1, 2018 using the modified retrospective method for its marketable equity securities, which currently consist of money market mutual funds. The Company currently does not have any non-marketable equity securities. The adoption of ASU 2016-01 did not have a significant impact on the Company’s financial position or results of operations. Recently Issued Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, Leases (“ASU 2016-02”). The guidance will require lessees to put all leases on their balance sheets, whether operating or financing, while continuing to recognize the expenses on their income statements in a manner similar to current practice. The guidance states that a lessee would recognize a lease liability for the obligation to make lease payments and a right-to-use asset for the right to use the underlying asset for the lease term. The guidance will be effective for the Company beginning January 1, 2019 and early adoption is permitted. The Company is evaluating the full effect the adoption will have on its financial condition, results of operations, and disclosures. The Company is evaluating the accounting, transition and disclosure requirements of the standard and cannot currently estimate the impact of adoption on its consolidated financial statements. In February 2018, the FASB issued ASU 2018-02, Income Statement – Reporting Comprehensive Income: Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (“ASU 2018-02”). The provisions in ASU 2018-02 allow for a reclassification from accumulated other comprehensive income to retained earnings to eliminate the stranded tax effects resulting from the change in federal corporate income tax rate in the Tax Cuts and Jobs Act enacted in December 2017. The Company is required to adopt ASU 2018-02 on January 1, 2019. Early adoption is permitted, including adoption in any interim period for which financial statements have not yet been issued. The adoption of ASU 2018-02 is not expected to have a significant impact on the Company’s financial position or results of operations. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (“ASU 2016-13”). The standard changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The Company will recognize an allowance for credit losses on available-for-sale securities rather than deductions in amortized cost. The standard is effective for fiscal years and interim periods beginning after December 15, 2019. Early adoption is permitted for all periods beginning after December 15, 2018. The adoption of this standard is not expected to have a significant impact on the Company’s financial statements. Recently Adopted Accounting Pronouncements Revenue Recognition In May 2014 the Financial Accounting Standards Board (“FASB”) issued ASC 606. ASC 606 supersedes the revenue recognition requirements in ASC 605, Revenue Recognition, and requires the recognition of revenue when promised goods or services are transferred to customers in an amount that reflects the considerations to which the entity expects to be entitled to in exchange for those goods or services. ASC 606 also includes Subtopic 340-40, Other Assets and Deferred Costs - Contracts with Customers, which requires the deferral of incremental costs of obtaining and fulfilling a contract with a customer. The key changes from adopting the new standard are:
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Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Tables) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | Select unaudited condensed consolidated balance sheet line items, which reflect the adoption of ASC 606 are as follows (in thousands):
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Select unaudited condensed consolidated statement of cash flows line items, which reflect the adoption of ASC 606 and ASU 2016-18 are as follows (in thousands):
_______________________ (1) Adjusted to reflect the adoption of ASC 606. (2) Adjusted to reflect the adoption of ASU 2016-18. Select unaudited condensed consolidated statement of operations line items, which reflect the adoption of ASC 606 are as follows (in thousands, except per share amounts):
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Fair Value Measurements (Tables) |
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Fair Value, Assets Measured on Recurring Basis | The following tables present information about the Company’s assets and liabilities that are measured at fair value on a recurring basis using the above input categories (in thousands):
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Marketable Securities (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale Securities | As of June 30, 2018 and December 31, 2017, respectively, marketable securities consisted of the following (in thousands):
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Business Combinations (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of the Components of the Purchase Consideration Transferred | The following table summarizes the components of the purchase consideration transferred based on the closing price of the Company’s stock as of the acquisition date (in thousands):
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Schedule of Preliminary Fair Values of Assets Acquired and Liabilities Assumed | The fair values of the assets acquired and liabilities assumed by major class in the acquisition of Jiff were recognized as follows (in thousands):
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Schedule of Identifiable Acquired Intangible Assets | The following table sets forth the fair value components of identifiable acquired intangible assets (dollars in thousands):
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Schedule of Unaudited Pro Forma Financial Information | The following table presents the unaudited pro forma condensed combined financial information for the periods presented, except for the financial information presented for the three and six months ended June 30, 2018 which is presented on an as-reported basis (in thousands):
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Property and equipment, net (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment | Property and equipment consisted of the following (in thousands):
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Debt (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||
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Jun. 30, 2018 | |||||||||||||||||||||||||||||
Debt [Abstract] | |||||||||||||||||||||||||||||
Schedule of Maturities of Long-term Debt | The future maturities of the Term Loan by year as of June 30, 2018 are as follows (in thousands):
_______________________ (1) Excludes the $0.5 million required to be paid as final payment on the earlier of maturity, termination or prepayment of the Term Loan. (2) Includes $1.4 million classified as debt, current (within accrued expenses and other current liabilities) and $4.2 million classified as debt, non-current on the condensed consolidated balance sheet as of June 30, 2018. |
Goodwill and Intangible Assets (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Finite-Lived Intangible Assets | Intangible assets, net The following tables set forth the fair value components of identifiable acquired intangible assets (dollars in thousands):
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Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Estimated amortization expense for acquired intangible assets for the following five years and thereafter is as follows (in thousands):
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Stock Compensation (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity and Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity | A summary of stock option activity for the six months ended June 30, 2018 is as follows:
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Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The fair value of each option grant was estimated on the date of grant using the Black-Scholes option-valuation model with the following assumptions and fair value per share:
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Schedule of Other Share-based Compensation, Activity | A summary of restricted stock unit activity for the six months ended June 30, 2018 is as follows:
_______________________ (1) Includes 0.7 million performance stock units (“PSUs”) that were granted during the six months ended June 30, 2018. (2) Includes PSUs that were granted in the prior year, which were canceled because performance targets were not achieved. |
Net Loss per Share (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted | The following table presents the calculation of basic and diluted net loss per share for the Company’s common stock (in thousands, except per share data):
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Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following securities were excluded from the calculation of diluted net loss per share for common stock because their effect would have been anti-dilutive for the periods presented (in thousands):
_______________________ (1) 2017 includes 1.9 million warrants issued to SAP that expired during the fourth quarter of 2017, as described in Note 14–Stockholders’ Equity.
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Deferred Costs (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Table Text Block] | Changes in the balance of total deferred commissions and total deferred professional service costs during the six months ended June 30, 2018 are as follows (in thousands):
______________________
|
Summary of Significant Accounting Policies - Summary of Significant Accounting Policies - Revenue Recognition- Income Statement (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 6 Months Ended | |||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
Dec. 31, 2017 |
Dec. 31, 2016 |
||||||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||||||||||
Amortization of deferred commissions | $ 5,800 | $ 4,289 | [1] | ||||||||||||||||
Increase (Decrease) in Accounts Receivable | 6,252 | 3,117 | [1] | ||||||||||||||||
Changes in operating assets and liabilities: | (2,979) | (3,452) | [1] | ||||||||||||||||
Deferred Commissions | $ 24,691 | 24,691 | $ 27,512 | [2] | |||||||||||||||
Deferred Professional Service Costs | 11,855 | 11,855 | 12,480 | [2] | |||||||||||||||
Increase (Decrease) in Deferred Charges | 1,389 | 1,853 | [1] | ||||||||||||||||
Subscription | 34,802 | $ 30,382 | [3] | 67,791 | 56,279 | [3] | |||||||||||||
Professional services and other | 2,982 | 2,250 | [3] | 6,472 | 4,056 | [3] | |||||||||||||
Cost of professional services | [4] | 6,590 | 4,628 | [3] | 12,359 | 8,437 | [3] | ||||||||||||
Sales and marketing | [4] | 13,306 | 15,935 | [3] | 27,218 | 30,081 | [3] | ||||||||||||
Operating Income (Loss) | (14,059) | (17,597) | [3] | (28,631) | (32,164) | [3] | |||||||||||||
Net loss | $ (13,958) | $ (12,379) | [3] | (28,402) | (26,753) | [3] | |||||||||||||
Stock-based compensation | 9,739 | 12,092 | [1] | ||||||||||||||||
Amortizations Of Deferred Professionals Costs | $ 2,097 | $ 1,958 | [1] | ||||||||||||||||
Net loss per share, basic and diluted | $ (0.10) | $ (0.09) | [3] | $ (0.21) | $ (0.23) | [3] | |||||||||||||
Accounts payable | $ (1,210) | $ 6,711 | [1] | ||||||||||||||||
Net Cash Provided by (Used in) Investing Activities | 1,167 | 28,768 | [1] | ||||||||||||||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Excluding Exchange Rate Effect | (16,677) | 13,842 | [1] | ||||||||||||||||
Deferred Revenue | $ 29,200 | 29,200 | 30,400 | ||||||||||||||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $ 45,967 | $ 63,708 | 45,967 | 63,708 | 62,644 | $ 49,866 | [1] | ||||||||||||
Accounting Standards Update 2014-09 | |||||||||||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||||||||||
Operating Income (Loss) | $ (17,597) | (32,164) | |||||||||||||||||
Net loss per share, basic and diluted | $ (0.09) | ||||||||||||||||||
Accounting Standards Update 2014-09 | Scenario, Previously Reported | |||||||||||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||||||||||
Amortization of deferred commissions | 5,172 | ||||||||||||||||||
Accounts Receivable And Others, Net | 20,761 | ||||||||||||||||||
Deferred Commissions | $ (3,398) | (3,398) | 10,583 | ||||||||||||||||
Deferred Professional Service Costs | 0 | 0 | 0 | ||||||||||||||||
Subscription | 29,834 | 55,600 | |||||||||||||||||
Professional services and other | 2,265 | 4,243 | |||||||||||||||||
Cost of professional services | 4,793 | 8,781 | |||||||||||||||||
Sales and marketing | 16,575 | 31,018 | |||||||||||||||||
Operating Income (Loss) | (18,935) | (33,937) | |||||||||||||||||
Net loss | $ (13,717) | (28,526) | |||||||||||||||||
Stock-based compensation | 12,541 | ||||||||||||||||||
Amortizations Of Deferred Professionals Costs | $ 0 | ||||||||||||||||||
Net loss per share, basic and diluted | $ (0.11) | $ (0.24) | |||||||||||||||||
Net Cash Provided by (Used in) Investing Activities | $ 28,405 | ||||||||||||||||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Excluding Exchange Rate Effect | $ 13,479 | ||||||||||||||||||
Deferred Revenue | $ 7,202 | 7,202 | |||||||||||||||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 62,201 | 62,201 | 48,722 | ||||||||||||||||
Accounting Standards Update 2014-09 | Restatement Adjustment [Member] | |||||||||||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||||||||||
Amortization of deferred commissions | (883) | ||||||||||||||||||
Accounts Receivable And Others, Net | 1,172 | ||||||||||||||||||
Deferred Commissions | (54) | (54) | 16,929 | ||||||||||||||||
Deferred Professional Service Costs | (1,853) | (1,853) | $ 12,480 | ||||||||||||||||
Subscription | 548 | 679 | |||||||||||||||||
Professional services and other | (15) | (187) | |||||||||||||||||
Cost of professional services | (165) | (344) | |||||||||||||||||
Sales and marketing | (640) | (937) | |||||||||||||||||
Operating Income (Loss) | 1,338 | 1,773 | |||||||||||||||||
Net loss | $ 1,338 | 1,773 | |||||||||||||||||
Stock-based compensation | (449) | ||||||||||||||||||
Amortizations Of Deferred Professionals Costs | $ 1,958 | ||||||||||||||||||
Net loss per share, basic and diluted | $ 0 | $ 0 | |||||||||||||||||
Net Cash Provided by (Used in) Investing Activities | $ 363 | ||||||||||||||||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Excluding Exchange Rate Effect | 363 | ||||||||||||||||||
Deferred Revenue | $ (491) | (491) | |||||||||||||||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $ 1,507 | $ 1,507 | $ 1,144 | ||||||||||||||||
|
Summary of Significant Accounting Policies -Summary of Significant Accounting Policies - Revenue Recognition - Balance Sheet (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Dec. 31, 2017 |
Jun. 30, 2017 |
|||
---|---|---|---|---|---|---|
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Deferred Commissions | $ 24,691 | $ 27,512 | [1] | |||
Deferred revenue | 26,509 | 25,985 | [1] | |||
Deferred Professional Service Costs | 11,855 | 12,480 | [1] | |||
Deferred revenue, non-current | 2,723 | 4,457 | [1] | |||
Accumulated deficit | $ (403,736) | (375,334) | [1] | |||
Accounting Standards Update 2014-09 | Scenario, Previously Reported | ||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Accounts Receivable And Others, Net | 20,761 | |||||
Deferred Commissions | 10,583 | $ (3,398) | ||||
Deferred revenue | 29,410 | |||||
Deferred Professional Service Costs | 0 | 0 | ||||
Deferred revenue, non-current | 6,686 | |||||
Accumulated deficit | (411,569) | |||||
Accounting Standards Update 2014-09 | Restatement Adjustment [Member] | ||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Accounts Receivable And Others, Net | 1,172 | |||||
Deferred Commissions | 16,929 | (54) | ||||
Deferred revenue | (3,425) | |||||
Deferred Professional Service Costs | 12,480 | $ (1,853) | ||||
Deferred revenue, non-current | (2,229) | |||||
Accumulated deficit | $ 36,235 | |||||
|
Contract Balances and Performance Obligations (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
Dec. 31, 2017 |
|
Revenue from Contract with Customer [Abstract] | |||||
Deferred Revenue | $ 29.2 | $ 29.2 | $ 30.4 | ||
Contract with Customer, Asset, Net | 1.8 | 1.8 | $ 1.2 | ||
Deferred Revenue, Revenue Recognized | 16.5 | $ 12.4 | 22.6 | $ 17.1 | |
Contract with Customer, Liability, Cumulative Catch-up Adjustment to Revenue, Change in Estimate of Transaction Price | 0.8 | 0.6 | |||
Revenue, Remaining Performance Obligation | $ 143.7 | $ 143.7 | |||
Revenue, Remaining Performance Obligation, Percent | 70.00% |
Fair Value Measurements - Summary of Assets Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Marketable securities: | ||
Marketable securities | $ 44,860 | $ 56,506 |
U.S. agency obligations | ||
Marketable securities: | ||
Marketable securities | 6,287 | 6,115 |
U.S. treasury securities | ||
Marketable securities: | ||
Marketable securities | 14,971 | 19,366 |
U.S. agency obligations | ||
Marketable securities: | ||
Marketable securities | 23,602 | 31,025 |
Fair Value, Measurements, Recurring | ||
Cash equivalents: | ||
Cash equivalents | 18,366 | |
Marketable securities: | ||
Assets, Fair Value Disclosure | 44,860 | 56,506 |
Fair Value, Measurements, Recurring | U.S. agency obligations | ||
Cash equivalents: | ||
Cash equivalents | 7,740 | |
Fair Value, Measurements, Recurring | U.S. treasury securities | ||
Cash equivalents: | ||
Cash equivalents | 6,287 | |
Marketable securities: | ||
Marketable securities | 22,602 | 31,025 |
Fair Value, Measurements, Recurring | U.S. agency obligations | ||
Cash equivalents: | ||
Cash equivalents | 1,000 | 6,115 |
Marketable securities: | ||
Marketable securities | 7,231 | 1,000 |
Fair Value, Measurements, Recurring | Level 1 | ||
Cash equivalents: | ||
Cash equivalents | 0 | |
Marketable securities: | ||
Assets, Fair Value Disclosure | 6,287 | 6,115 |
Fair Value, Measurements, Recurring | Level 1 | U.S. agency obligations | ||
Cash equivalents: | ||
Cash equivalents | 0 | 6,115 |
Fair Value, Measurements, Recurring | Level 1 | U.S. treasury securities | ||
Cash equivalents: | ||
Cash equivalents | 6,287 | |
Marketable securities: | ||
Marketable securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | U.S. agency obligations | ||
Cash equivalents: | ||
Cash equivalents | 0 | |
Marketable securities: | ||
Marketable securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | ||
Cash equivalents: | ||
Cash equivalents | 18,366 | |
Marketable securities: | ||
Assets, Fair Value Disclosure | 38,573 | 50,391 |
Fair Value, Measurements, Recurring | Level 2 | U.S. agency obligations | ||
Cash equivalents: | ||
Cash equivalents | 7,740 | 0 |
Fair Value, Measurements, Recurring | Level 2 | U.S. treasury securities | ||
Cash equivalents: | ||
Cash equivalents | 0 | |
Marketable securities: | ||
Marketable securities | 22,602 | 1,000 |
Fair Value, Measurements, Recurring | Level 2 | U.S. agency obligations | ||
Cash equivalents: | ||
Cash equivalents | 1,000 | |
Marketable securities: | ||
Marketable securities | $ 7,231 | $ 31,025 |
Marketable Securities (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 44,869 | $ 56,528 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (9) | (22) |
Fair Value | 44,860 | 56,506 |
Included in cash and cash equivalents [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 15,027 | 24,481 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | 15,027 | 24,481 |
Included in marketable securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 29,842 | 32,047 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (9) | (22) |
Fair Value | 29,833 | 32,025 |
U.S. agency obligations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 14,972 | 19,366 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (1) | 0 |
Fair Value | 14,971 | 19,366 |
U.S. treasury securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 23,610 | 31,047 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (8) | (22) |
Fair Value | 23,602 | 31,025 |
Money market mutual funds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 6,287 | 6,115 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | $ 6,287 | $ 6,115 |
Fair Value Measurements - Reconciliation of Level 3 Contingent Consideration Liability (Details) - USD ($) $ in Thousands |
6 Months Ended | ||||
---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation | |||||
Initial fair value as of acquisition date | $ 0 | $ (643) | [1] | ||
|
Fair Value Measurements (Details) - USD ($) |
6 Months Ended | 12 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
[1] | Dec. 31, 2016 |
|||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Available-for-sale Securities, Gross Realized Gain (Loss) | $ 0 | |||||
Available-for-sale Securities, Maturity Period | 1 year | 1 year | ||||
Change in fair value contingent consideration liability | $ 0 | $ (643,000) | ||||
|
Business Combinations - Narrative (Details) - USD ($) |
3 Months Ended | 6 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|
Apr. 03, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
[1] | Jun. 30, 2018 |
Jun. 30, 2017 |
||||
Business Acquisition [Line Items] | |||||||||
Ownership interest in Jiff (more than) (as a percent) | 5.00% | ||||||||
Tax benefit | $ 0 | $ 5,206,000 | $ 0 | $ 5,206,000 | [1] | ||||
Class B | |||||||||
Business Acquisition [Line Items] | |||||||||
Class B common stock acquired in exchange (in shares) | 3,965,979 | ||||||||
Jiff, Inc. | |||||||||
Business Acquisition [Line Items] | |||||||||
Shares and options paid to acquire business (in shares) | 27,000,000 | ||||||||
Benchmark for revenue in 2017 | $ 25,000,000 | ||||||||
Benchmark for net new bookings in 2017 | 25,000,000 | ||||||||
Contingent consideration liability | $ 671,000 | ||||||||
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual | $ 74,263,000 | $ 63,943,000 | |||||||
Jiff, Inc. | Class B | |||||||||
Business Acquisition [Line Items] | |||||||||
Aggregate shares awarded to certain stockholders and option holders for reaching revenue benchmark (in shares) | 1,000,000 | ||||||||
Aggregate shares awarded to certain stockholders and option holders for reaching net bookings benchmark (in shares) | 3,000,000 | ||||||||
|
Business Combinations - Summary of the Components of the Purchase Consideration Transferred (Details) - Jiff, Inc. $ in Thousands |
Apr. 03, 2017
USD ($)
|
---|---|
Business Acquisition [Line Items] | |
Fair value of Company Class B common stock (25,054,049 shares @ $3.65 per share) | $ 91,447 |
Fair value of contingent consideration | 671 |
Fair value of assumed Jiff options attributable to pre-combination services | 9,574 |
Transaction costs paid on behalf of Jiff | 4,498 |
Estimated purchase price consideration | $ 106,190 |
Business Combinations - Schedule of Preliminary Fair Values of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Dec. 31, 2017 |
[1] | Apr. 03, 2017 |
||
---|---|---|---|---|---|---|
Business Acquisition [Line Items] | ||||||
Goodwill | $ 91,785 | $ 91,785 | ||||
Jiff, Inc. | ||||||
Business Acquisition [Line Items] | ||||||
Cash | $ 2,234 | |||||
Current assets | 5,159 | |||||
Other assets | 1,971 | |||||
Acquired intangible assets | 23,900 | |||||
Goodwill | 91,785 | |||||
Total assets acquired | 125,049 | |||||
Deferred revenue | (1,857) | |||||
Other current liabilities | (6,192) | |||||
Debt | (5,578) | |||||
Non-current liabilities | (5,232) | |||||
Total net assets acquired | $ 106,190 | |||||
|
Business Combinations - Schedule of Identifiable Acquired Intangible Assets (Details) - USD ($) $ in Thousands |
6 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2018 |
Dec. 31, 2017 |
|
Business Acquisition [Line Items] | ||
Fair Value | $ 23,900 | $ 23,900 |
Customer relationships | ||
Business Acquisition [Line Items] | ||
Fair Value | 10,900 | $ 10,900 |
Useful Life | 10 years | |
Developed technology | ||
Business Acquisition [Line Items] | ||
Fair Value | 10,600 | $ 10,600 |
Useful Life | 5 years | |
Backlog | ||
Business Acquisition [Line Items] | ||
Fair Value | $ 1,500 | $ 1,500 |
Useful Life | 3 years | 3 years |
Other acquired intangible assets | ||
Business Acquisition [Line Items] | ||
Fair Value | $ 900 | $ 900 |
Minimum | Backlog | ||
Business Acquisition [Line Items] | ||
Useful Life | 1 year | |
Minimum | Other acquired intangible assets | ||
Business Acquisition [Line Items] | ||
Useful Life | 1 year | |
Maximum | Backlog | ||
Business Acquisition [Line Items] | ||
Useful Life | 3 years | |
Maximum | Other acquired intangible assets | ||
Business Acquisition [Line Items] | ||
Useful Life | 3 years |
Business Combinations - Schedule of Unaudited Pro Forma Financial Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|||||
Business Acquisition [Line Items] | ||||||||
Total revenue | $ 37,784 | $ 32,598 | ||||||
Net loss | $ (13,958) | (12,379) | [1] | $ (28,402) | $ (26,753) | [1] | ||
Net loss | $ (15,490) | |||||||
Jiff, Inc. | ||||||||
Business Acquisition [Line Items] | ||||||||
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual | $ 74,263 | $ 63,943 | ||||||
Business Combination, Pro Forma Information, Incomplete Initial Accounting | -33957 | |||||||
|
Property and equipment, net (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Property, Plant and Equipment [Abstract] | ||||
Depreciation Expense | $ 0.8 | $ 0.8 | $ 1.5 | $ 1.5 |
Property and equipment, net - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
Dec. 31, 2017 |
||||
Property, Plant and Equipment [Line Items] | ||||||||
Depreciation | $ 800 | $ 800 | $ 1,500 | $ 1,500 | ||||
Property and Equipment | 15,405 | 15,405 | $ 14,447 | |||||
Internal-use software | 2,925 | 2,925 | 2,925 | |||||
Accumulated depreciation | (10,158) | (10,158) | (9,184) | |||||
Property and equipment, net | 5,247 | 5,247 | 5,263 | [1] | ||||
Leasehold Improvements [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Property and Equipment | 3,393 | 3,393 | 2,915 | |||||
Computer Equipment [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Property and Equipment | 6,799 | 6,799 | 6,165 | |||||
Software [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Property and Equipment | 1,134 | 1,134 | 1,149 | |||||
Furniture and Equipment [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Property and Equipment | $ 1,154 | $ 1,154 | $ 1,293 | |||||
|
Debt (Details) - USD ($) $ in Thousands |
6 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2018 |
Dec. 31, 2017 |
||||
Line of Credit Facility [Line Items] | |||||
Debt Instrument, Term | 36 months | ||||
Early Repayment of Senior Debt | 0.5 | 0.5 | |||
Long-term Debt | $ 5,578 | ||||
Long-term Debt, Excluding Current Maturities | 4,183 | $ 4,958 | [1] | ||
Debt, Current | 1,400 | ||||
Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 25,000 | ||||
Interest Rate Option 1 | |||||
Line of Credit Facility [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 1.00% | ||||
Interest Rate Option 2 | |||||
Line of Credit Facility [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 0.00% | ||||
|
Debt Debt- Future Maturities (Details) $ in Thousands |
Jun. 30, 2018
USD ($)
|
---|---|
Line of Credit Facility [Line Items] | |
2018 | $ 620 |
2019 | 1,859 |
2020 | 1,859 |
2021 | 1,240 |
Debt, Current | $ 1,400 |
Goodwill and Intangible Assets - Schedule of Goodwill (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Dec. 31, 2017 |
|||
---|---|---|---|---|---|
Goodwill [Roll Forward] | |||||
Net beginning balance | [1] | $ 91,785 | |||
Net ending balance | $ 91,785 | $ 91,785 | [1] | ||
Jiff, Inc. | |||||
Goodwill [Roll Forward] | |||||
Net beginning balance | $ 91,785 | ||||
|
Goodwill and Intangible Assets - Schedule of Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
Dec. 31, 2017 |
|
Finite-lived Intangible Assets [Roll Forward] | |||||
Intangible Assets, Gross, beginning balance | $ 23,900 | ||||
Intangible Assets, Gross, ending balance | $ 23,900 | 23,900 | $ 23,900 | ||
Accumulated Amortization, beginning balance | (3,647) | ||||
Accumulated Amortization, Expense | (1,000) | $ (1,200) | (2,100) | $ (1,200) | |
Accumulated Amortization, ending balance | (5,756) | (5,756) | (3,647) | ||
Acquired Intangibles, Net | 18,144 | 18,144 | 20,253 | ||
Customer relationships | |||||
Finite-lived Intangible Assets [Roll Forward] | |||||
Intangible Assets, Gross, beginning balance | 10,900 | ||||
Intangible Assets, Gross, ending balance | 10,900 | 10,900 | 10,900 | ||
Accumulated Amortization, beginning balance | (818) | ||||
Accumulated Amortization, ending balance | (1,363) | (1,363) | (818) | ||
Acquired Intangibles, Net | 9,537 | 9,537 | $ 10,082 | ||
Useful Life | 10 years | ||||
Developed technology | |||||
Finite-lived Intangible Assets [Roll Forward] | |||||
Intangible Assets, Gross, beginning balance | 10,600 | ||||
Intangible Assets, Gross, ending balance | 10,600 | 10,600 | $ 10,600 | ||
Accumulated Amortization, beginning balance | (1,590) | ||||
Accumulated Amortization, ending balance | (2,650) | (2,650) | (1,590) | ||
Acquired Intangibles, Net | 7,950 | 7,950 | $ 9,010 | ||
Useful Life | 5 years | ||||
Backlog | |||||
Finite-lived Intangible Assets [Roll Forward] | |||||
Intangible Assets, Gross, beginning balance | 1,500 | ||||
Intangible Assets, Gross, ending balance | 1,500 | 1,500 | $ 1,500 | ||
Accumulated Amortization, beginning balance | (664) | ||||
Accumulated Amortization, ending balance | (960) | (960) | (664) | ||
Acquired Intangibles, Net | 540 | $ 540 | $ 836 | ||
Useful Life | 3 years | 3 years | |||
Other acquired intangible assets | |||||
Finite-lived Intangible Assets [Roll Forward] | |||||
Intangible Assets, Gross, beginning balance | $ 900 | ||||
Intangible Assets, Gross, ending balance | 900 | 900 | $ 900 | ||
Accumulated Amortization, beginning balance | (575) | ||||
Accumulated Amortization, ending balance | (783) | (783) | (575) | ||
Acquired Intangibles, Net | $ 117 | $ 117 | $ 325 | ||
Minimum | Backlog | |||||
Finite-lived Intangible Assets [Roll Forward] | |||||
Useful Life | 1 year | ||||
Minimum | Other acquired intangible assets | |||||
Finite-lived Intangible Assets [Roll Forward] | |||||
Useful Life | 1 year | ||||
Maximum | Backlog | |||||
Finite-lived Intangible Assets [Roll Forward] | |||||
Useful Life | 3 years | ||||
Maximum | Other acquired intangible assets | |||||
Finite-lived Intangible Assets [Roll Forward] | |||||
Useful Life | 3 years |
Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense | $ 1.0 | $ 1.2 | $ 2.1 | $ 1.2 |
Goodwill and Intangible Assets - Schedule of Finite-Lived Intangible Assets, Future Amortization Expense (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2017 | $ 1,934 | |
2018 | 3,505 | |
2019 | 3,242 | |
2020 | 3,210 | |
2021 | 1,620 | |
Thereafter | 4,633 | |
Acquired Intangibles, Net | $ 18,144 | $ 20,253 |
Related Party Transactions (Details) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Apr. 03, 2017 |
Dec. 31, 2016 |
|
Related Party Transaction [Line Items] | ||
Ownership interest in Jiff (more than) (as a percent) | 5.00% | |
Initial Investment | ||
Related Party Transaction [Line Items] | ||
Payments to acquire interest in related party | $ 5.5 | |
Other Operating Income (Expense), Net | 1.4 | |
Lyra | ||
Related Party Transaction [Line Items] | ||
Payments to acquire interest in related party | $ 4.1 | |
Class B | ||
Related Party Transaction [Line Items] | ||
Class B common stock acquired in exchange (in shares) | 3,965,979 |
Stock Compensation - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Jun. 30, 2018 |
Dec. 31, 2016 |
|
Equity and Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 8,360,121 | 10,335,178 | |
Aggregate Intrinsic Value | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 2.39 | $ 2.83 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | $ 19,253 | $ 19,499 | |
Number of PSUs granted | (134,000) | ||
Restricted Stock Units granted (1) | $ 3.69 | ||
Restricted Stock Units vested | (1,527,309) | ||
Restricted Stock Units vested | $ 1.47 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 581,748 | ||
Restricted Stock Units forfeited and canceled (2) | $ 12.93 |
Stock Compensation - Stock Options Activity and Stock-based Compensation (Details) - USD ($) $ in Millions |
6 Months Ended | |
---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Equity and Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Stock Granted, Value, Share-based Compensation, Gross | $ 0.3 | $ 0.8 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | $ 2.4 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 4 months 10 days |
Stock Compensation - Assumptions Related to Share-based Compensation (Details) - Stock Option [Member] |
6 Months Ended | |
---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected life (in years) | 6 years 22 days | 6 years 7 days |
Risk-free interest rate | 1.37% | |
Monte Carlo [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Volatility | 57.00% | 61.00% |
Risk-free interest rate | 2.03% | |
Dividend yield | 0.00% | 0.00% |
Minimum | Monte Carlo [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free interest rate | 2.72% | |
Maximum | Monte Carlo [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free interest rate | 2.74% |
Stock Compensation - Summary of Restricted Stock Unit Activity (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 6 Months Ended | 12 Months Ended |
---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2018 |
Dec. 31, 2017 |
|
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Balance as of December 31, 2017 | 8,360,121 | 10,335,178 | |
Restricted Stock Units granted (1) | 134,000 | ||
Restricted Stock Units vested | (1,527,309) | ||
Restricted Stock Units forfeited and canceled (2) | (581,748) | ||
Balance as of June 30, 2018 | 8,360,121 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Balance as of December 31, 2017 | $ 2.39 | $ 2.83 | |
Restricted Stock Units granted (1) | 3.69 | ||
Restricted Stock Units vested | 1.47 | ||
Restricted Stock Units forfeited and canceled (2) | 12.93 | ||
Balance as of June 30, 2018 | $ 2.39 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 4 months 10 days | ||
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Balance as of December 31, 2017 | 9,334,000 | ||
Restricted Stock Units granted (1) | 4,798,000 | ||
Restricted Stock Units vested | (1,662,000) | ||
Restricted Stock Units forfeited and canceled (2) | (1,737,000) | ||
Balance as of June 30, 2018 | 10,732,000 | 10,732,000 | 9,334,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Balance as of December 31, 2017 | $ 4.03 | ||
Restricted Stock Units granted (1) | 3.69 | ||
Restricted Stock Units vested | 4.32 | ||
Restricted Stock Units forfeited and canceled (2) | 3.65 | ||
Balance as of June 30, 2018 | $ 3.66 | $ 3.66 | $ 4.03 |
Unrecognized compensation cost | $ 36.5 | $ 36.5 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 8 months 5 days | ||
Performance awards | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Restricted Stock Units granted (1) | 700,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Compensation expense recognized | $ 0.3 | $ 0.5 | |
Vesting percentage in year 1 | Performance awards | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Vesting percentage | 50.00% | ||
Vesting percentage in year 2 | Performance awards | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Vesting percentage | 50.00% | ||
Minimum | Performance awards | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Shares the will eventually vest (as a percent) | 0.00% | ||
Maximum | Performance awards | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Shares the will eventually vest (as a percent) | 150.00% |
Stock Compensation - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | 12 Months Ended |
---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2018 |
Dec. 31, 2017 |
|
Business Acquisition [Line Items] | |||
Number of PSUs granted | 134,000 | ||
PSUs | |||
Business Acquisition [Line Items] | |||
Allocated Share-based Compensation Expense | $ 0.3 | $ 0.5 | |
Number of PSUs granted | 700,000 |
Commitments and Contingencies Commitments and Contingencies (Details) - USD ($) $ in Millions |
1 Months Ended | 3 Months Ended | |
---|---|---|---|
Mar. 31, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
|
Business Acquisition [Line Items] | |||
Increase (decrease) In rent expense | $ 2.4 | ||
Operating Leases, Rent Expense, Sublease Rentals | $ 0.9 | ||
Lease Exit And Related Charges | $ 0.8 |
Stockholders' Equity Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands |
1 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|
Apr. 24, 2017 |
May 31, 2016 |
May 31, 2016 |
Dec. 31, 2017 |
Jun. 30, 2018 |
|
Class of Stock [Line Items] | |||||
Class Of Warrant Or Right, Initial Expiration Period | 4 years | ||||
Class Of Warrant Or Right, Amended Expiration Period | 4 years | ||||
Issuance of Stock and Warrants for Services or Claims | $ 1,100 | ||||
Class A | |||||
Class of Stock [Line Items] | |||||
Common Stock, Shares, Issued | 51,923,213 | ||||
Class B | |||||
Class of Stock [Line Items] | |||||
Common Stock, Shares, Issued | 85,805,797 | ||||
SAP Technologies, Inc. | |||||
Class of Stock [Line Items] | |||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 4.91 | $ 4.91 | |||
SAP Technologies, Inc. | Class B | |||||
Class of Stock [Line Items] | |||||
Shares issued during the period | 4,700,000 | ||||
Number of Securities Called by Warrants or Rights (in shares) | 1,900,000.0 | 1,900,000.0 | |||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights, Value | $ 17,800 |
Income Taxes (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
Dec. 31, 2017 |
Apr. 30, 2018 |
|||||
Income Tax Disclosure [Abstract] | ||||||||||
Effective tax rate | 0.00% | |||||||||
Effective Income Tax Rate Reconciliation, Percent | (29.60%) | (16.30%) | ||||||||
Unrecognized Tax Benefits | $ 5,200 | |||||||||
Tax benefit | $ 0 | $ 5,206 | [1] | $ 0 | $ 5,206 | [1] | ||||
Tax Cuts And Jobs Act Of 2017, Incomplete Accounting, Change In Tax Rate, Deferred Tax Asset, Provisional Income Tax Expense | $ 54,600 | |||||||||
|
Net Loss per Share - Calculation of Basic and Diluted EPS for Common Stock (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|||||
Schedule of Earnings Per Share, Basic and Diluted, by Common Class, Including Two Class Method [Table] [Line Items] | ||||||||
Net loss | $ (13,958) | $ (12,379) | [1] | $ (28,402) | $ (26,753) | [1] | ||
Weighted-average shares used to compute basic and diluted net loss per share | 136,682 | 130,537 | 135,843 | 117,807 | ||||
Basic and diluted net loss per share (in usd per share) | $ (0.10) | $ (0.09) | [1] | $ (0.21) | $ (0.23) | [1] | ||
Class A | ||||||||
Schedule of Earnings Per Share, Basic and Diluted, by Common Class, Including Two Class Method [Table] [Line Items] | ||||||||
Net loss | $ (5,315) | $ (5,123) | $ (10,956) | $ (12,298) | ||||
Weighted-average shares used to compute basic and diluted net loss per share | 52,043 | 54,018 | 52,401 | 54,153 | ||||
Basic and diluted net loss per share (in usd per share) | $ (0.10) | $ (0.09) | $ (0.21) | $ (0.23) | ||||
Class B | ||||||||
Schedule of Earnings Per Share, Basic and Diluted, by Common Class, Including Two Class Method [Table] [Line Items] | ||||||||
Net loss | $ (8,643) | $ (7,256) | $ (17,446) | $ (14,455) | ||||
Weighted-average shares used to compute basic and diluted net loss per share | 84,639 | 76,519 | 83,442 | 63,654 | ||||
Basic and diluted net loss per share (in usd per share) | $ (0.10) | $ (0.09) | $ (0.21) | $ (0.23) | ||||
|
Net Loss per Share - Summary of Antidilutive Securities (Details) - shares |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Sep. 30, 2016 |
Jun. 30, 2018 |
Jun. 30, 2017 |
May 31, 2016 |
|
Class A | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 19,207,000 | 27,543,000 | 19,207,000 | 27,543,000 | ||
Class A | Stock options and restricted stock units | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 19,092,000 | 22,239,000 | 19,092,000 | 22,239,000 | ||
Class A | Warrants(1) | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 115,000 | 2,020,000 | 115,000 | 2,020,000 | ||
Class A | Contingent issuable shares related to Jiff (2) | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 3,284,000 | 0 | 3,284,000 | ||
SAP Technologies, Inc. | Class B | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Number of Securities Called by Warrants or Rights (in shares) | 1,900,000.0 |
Deferred Costs (Details) - USD ($) $ in Thousands |
6 Months Ended | ||||
---|---|---|---|---|---|
Jun. 30, 2018 |
Dec. 31, 2017 |
||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||
Deferred Sales Commission | $ 24,691 | $ 27,512 | |||
Deferred Commissions, Additions | 2,979 | ||||
Deferred Commissions, Expense Recognized | (5,800) | ||||
Deferred Professional Service Costs | 11,855 | 12,480 | [1] | ||
Deferred Professional Service Costs, Additions | 1,472 | ||||
Deferred Professional Service Costs, Expense Recognized | (2,097) | ||||
Deferred Commissions and Professional Service Costs | 36,546 | $ 39,992 | |||
Total Deferred Commissions And Professional Service Costs, Additions | 4,451 | ||||
Total Deferred Commissions And Professionals Service Costs | $ (7,897) | ||||
|
Subsequent Events (Details) - Subsequent Event |
Jul. 30, 2018 |
---|---|
Minimum | |
Subsequent Event [Line Items] | |
Restructuring Expenses Expected, Percent | 10.00% |
Maximum | |
Subsequent Event [Line Items] | |
Restructuring Expenses Expected, Percent | 15.00% |
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