(Mark One) | |
ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
For the quarterly period ended March 31, 2017 | |
OR | |
o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
For transition period from to | |
Commission File Number 001-36773 |
Delaware (State or other jurisdiction of incorporation or organization) | 47-2509828 (I.R.S. Employer Identification Number) | ||
2900 University Blvd Ames, IA 50010 (888) 275-3125 | |||
(Address of principal executive offices and zip code) | |||
(888) 275-3125 | |||
(Registrant's telephone number, including area code) | |||
___________________________________ |
Large accelerated filer o | Accelerated filer ý |
Non-accelerated filer o (Do not check if a smaller reporting company) | Smaller reporting company o |
Emerging growth company ý |
Page | |||
WORKIVA INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share amounts) | |||||||
As of March 31, 2017 | As of December 31, 2016 | ||||||
(unaudited) | |||||||
ASSETS | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | $ | |||||
Marketable securities | |||||||
Accounts receivable, net of allowance for doubtful accounts of $1,186 and $900 at March 31, 2017 and December 31, 2016, respectively | |||||||
Deferred commissions | |||||||
Other receivables | |||||||
Prepaid expenses | |||||||
Total current assets | |||||||
Property and equipment, net | |||||||
Intangible assets, net | |||||||
Other assets | |||||||
Total assets | $ | $ | |||||
LIABILITIES AND STOCKHOLDERS’ DEFICIT | |||||||
Current liabilities | |||||||
Accounts payable | $ | $ | |||||
Accrued expenses and other current liabilities | |||||||
Deferred revenue | |||||||
Deferred government grant obligation | |||||||
Current portion of capital lease and financing obligations | |||||||
Current portion of long-term debt | |||||||
Total current liabilities | |||||||
Deferred revenue | |||||||
Deferred government grant obligation | |||||||
Other long-term liabilities | |||||||
Capital lease and financing obligations | |||||||
Long-term debt | |||||||
Total liabilities | |||||||
Stockholders’ deficit | |||||||
Class A common stock, $0.001 par value per share, 1,000,000,000 shares authorized, 30,449,500 and 30,369,199 shares issued and outstanding at March 31, 2017 and December 31, 2016, respectively | |||||||
Class B common stock, $0.001 par value per share, 500,000,000 shares authorized, 10,867,888 and 10,891,888 shares issued and outstanding at March 31, 2017 and December 31, 2016, respectively | |||||||
Preferred stock, $0.001 par value per share, 100,000,000 shares authorized, no shares issued and outstanding | |||||||
Additional paid-in-capital | |||||||
Accumulated deficit | ( | ) | ( | ) | |||
Accumulated other comprehensive income | |||||||
Total stockholders’ deficit | ( | ) | ( | ) | |||
Total liabilities and stockholders’ deficit | $ | $ |
WORKIVA INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share amounts) (unaudited) | |||||||
Three months ended March 31, | |||||||
2017 | 2016 | ||||||
Revenue | |||||||
Subscription and support | $ | $ | |||||
Professional services | |||||||
Total revenue | |||||||
Cost of revenue | |||||||
Subscription and support | |||||||
Professional services | |||||||
Total cost of revenue | |||||||
Gross profit | |||||||
Operating expenses | |||||||
Research and development | |||||||
Sales and marketing | |||||||
General and administrative | |||||||
Total operating expenses | |||||||
Loss from operations | ( | ) | ( | ) | |||
Interest expense | ( | ) | ( | ) | |||
Other income, net | |||||||
Loss before provision for income taxes | ( | ) | ( | ) | |||
Provision for income taxes | |||||||
Net loss | $ | ( | ) | $ | ( | ) | |
Net loss per common share: | |||||||
Basic and diluted | $ | ( | ) | $ | ( | ) | |
Weighted-average common shares outstanding - basic and diluted |
WORKIVA INC. CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (in thousands) (unaudited) | |||||||
Three months ended March 31, | |||||||
2017 | 2016 | ||||||
Net loss | $ | ( | ) | $ | ( | ) | |
Other comprehensive loss, net of tax | |||||||
Foreign currency translation adjustment, net of income tax benefit (expense) of $2 and $0 for the three months ended March 31, 2017 and 2016, respectively | ( | ) | ( | ) | |||
Unrealized gain on available-for-sale securities, net of income tax (expense) benefit of ($2) and $0 for the three months ended March 31, 2017 and 2016, respectively | |||||||
Other comprehensive loss, net of tax | ( | ) | ( | ) | |||
Comprehensive loss | $ | ( | ) | $ | ( | ) |
WORKIVA INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) | |||||||
Three months ended March 31, | |||||||
2017 | 2016 | ||||||
Cash flows from operating activities | |||||||
Net loss | $ | ( | ) | $ | ( | ) | |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities | |||||||
Depreciation and amortization | |||||||
Stock-based compensation expense | |||||||
Provision for doubtful accounts | |||||||
Realized gain on sale of available-for-sale securities, net | ( | ) | |||||
Amortization of premiums and discounts on marketable securities, net | |||||||
Recognition of deferred government grant obligation | ( | ) | ( | ) | |||
Changes in assets and liabilities: | |||||||
Accounts receivable | ( | ) | |||||
Deferred commissions | ( | ) | ( | ) | |||
Other receivables | ( | ) | |||||
Prepaid expenses and other | ( | ) | |||||
Other assets | ( | ) | ( | ) | |||
Accounts payable | ( | ) | |||||
Deferred revenue | ( | ) | |||||
Accrued expenses and other liabilities | ( | ) | ( | ) | |||
Net cash provided by (used in) operating activities | ( | ) | |||||
Cash flows from investing activities | |||||||
Purchase of property and equipment | ( | ) | ( | ) | |||
Purchase of marketable securities | ( | ) | |||||
Maturities of marketable securities | |||||||
Sale of marketable securities | |||||||
Purchase of intangible assets | ( | ) | ( | ) | |||
Net cash (used in) provided by investing activities | ( | ) | |||||
Cash flows from financing activities | |||||||
Proceeds from option exercises | |||||||
Taxes paid related to net share settlements of stock-based compensation awards | ( | ) | ( | ) | |||
Principal payments on capital lease and financing obligations | ( | ) | ( | ) | |||
Proceeds from government grants | |||||||
Net cash used in financing activities | ( | ) | ( | ) | |||
Effect of foreign exchange rates on cash | ( | ) | |||||
Net increase (decrease) in cash and cash equivalents | ( | ) | |||||
Cash and cash equivalents at beginning of period | |||||||
Cash and cash equivalents at end of period | $ | $ | |||||
Supplemental cash flow disclosure | |||||||
Cash paid for interest | $ | $ | |||||
Cash paid for income taxes, net of refunds | $ | $ | |||||
Supplemental disclosure of noncash investing and financing activities | |||||||
Allowance for tenant improvements | $ | $ | |||||
Purchases of property and equipment, accrued but not paid | $ | $ |
March 31, 2017 | December 31, 2016 | ||||||
Accrued vacation | $ | $ | |||||
Accrued commissions | |||||||
Accrued bonuses | |||||||
Estimated health insurance claims | |||||||
Accrued other liabilities | |||||||
$ | $ |
Three months ended March 31, | |||||||
2017 | 2016 | ||||||
Interest income | $ | $ | |||||
Income from training reimbursement program | |||||||
Other | ( | ) | |||||
$ | $ |
Amortized Cost | Unrealized Gains | Unrealized Losses | Aggregate Fair Value | ||||||||||||
U.S. treasury debt securities | $ | $ | $ | ( | ) | $ | |||||||||
U.S. corporate debt securities | ( | ) | |||||||||||||
Money market funds | — | — | |||||||||||||
$ | $ | $ | ( | ) | $ | ||||||||||
Included in cash and cash equivalents | $ | $ | — | $ | — | $ | |||||||||
Included in marketable securities | $ | $ | $ | ( | ) | $ |
Amortized Cost | Unrealized Gains | Unrealized Losses | Aggregate Fair Value | ||||||||||||
U.S. treasury debt securities | $ | $ | $ | ( | ) | $ | |||||||||
U.S. corporate debt securities | ( | ) | |||||||||||||
Money market funds | — | — | |||||||||||||
$ | $ | $ | ( | ) | $ | ||||||||||
Included in cash and cash equivalents | $ | $ | — | $ | — | $ | |||||||||
Included in marketable securities | $ | $ | $ | ( | ) | $ |
As of March 31, 2017 | |||||||||||||||
Less than 12 months | 12 months or greater | ||||||||||||||
Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | ||||||||||||
U.S. treasury debt securities | $ | $ | ( | ) | $ | $ | |||||||||
U.S. corporate debt securities | ( | ) | |||||||||||||
Total | $ | $ | ( | ) | $ | $ |
Level 1 - | Inputs are unadjusted quoted prices in active markets for identical assets or liabilities. |
Level 2 - | Inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. |
Level 3 - | Inputs are unobservable inputs based on our assumptions. |
Fair Value Measurements as of March 31, 2017 | Fair Value Measurements as of December 31, 2016 | |||||||||||||||||||||||
Description | Total | Level 1 | Level 2 | Total | Level 1 | Level 2 | ||||||||||||||||||
Money market funds | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
U.S. treasury debt securities | ||||||||||||||||||||||||
U.S. corporate debt securities | ||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | |||||||||||||||||||
Included in cash and cash equivalents | $ | $ | ||||||||||||||||||||||
Included in marketable securities | $ | $ |
Three months ended March 31, | |||||||
2017 | 2016 | ||||||
Cost of revenue | |||||||
Subscription and support | $ | $ | |||||
Professional services | |||||||
Operating expenses | |||||||
Research and development | |||||||
Sales and marketing | |||||||
General and administrative | |||||||
Total | $ | $ |
Three months ended March 31, | |||
2017 | 2016 | ||
Expected term (in years) | 6.0 - 6.1 | 6.0 - 6.1 | |
Risk-free interest rate | 2.09% - 2.14% | 1.48% - 1.90% | |
Expected volatility | 39.9% - 43.8% | 45.0% - 45.3% |
Options | Weighted- Average Exercise Price | Weighted- Average Remaining Contractual Term (Years) | Aggregate Intrinsic Value | |||||||||
(in thousands) | ||||||||||||
Outstanding at December 31, 2016 | $ | $ | ||||||||||
Granted | ||||||||||||
Forfeited | ( | ) | ||||||||||
Exercised | ( | ) | ||||||||||
Outstanding at March 31, 2017 | $ | $ | ||||||||||
Exercisable at March 31, 2017 | $ | $ |
Number of Shares | Weighted- Average Grant Date Fair Value | |||||
Unvested at December 31, 2016 | $ | |||||
Granted | ||||||
Forfeited | ||||||
Vested | ( | ) | ||||
Unvested at March 31, 2017 | $ |
Number of Shares | Weighted- Average Grant Date Fair Value | |||||
Unvested at December 31, 2016 | $ | |||||
Granted | ||||||
Forfeited | ||||||
Vested(1) | ( | ) | ||||
Unvested at March 31, 2017 | $ |
Three months ended | |||||||||||||||
March 31, 2017 | March 31, 2016 | ||||||||||||||
Class A | Class B | Class A | Class B | ||||||||||||
Numerator | |||||||||||||||
Net loss | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||
Denominator | |||||||||||||||
Weighted-average common shares outstanding - basic and diluted | |||||||||||||||
Basic and diluted net loss per share | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) |
As of | |||||
March 31, 2017 | March 31, 2016 | ||||
Shares subject to outstanding common stock options | |||||
Shares subject to unvested restricted stock awards |
Three months ended March 31, | |||||||
2017 | 2016 | ||||||
(dollars in thousands) | |||||||
Financial metrics | |||||||
Total revenue | $ | 51,904 | $ | 44,551 | |||
Percentage increase in total revenue | 16.5 | % | 26.7 | % | |||
Subscription and support revenue | $ | 39,540 | $ | 33,585 | |||
Percentage increase in subscription and support revenue | 17.7 | % | 27.9 | % | |||
Subscription and support as a percent of total revenue | 76.2 | % | 75.4 | % |
As of March 31, | |||
2017 | 2016 | ||
Operating metrics | |||
Number of customers | 2,825 | 2,557 | |
Subscription and support revenue retention rate | 95.1% | 96.1% | |
Subscription and support revenue retention rate including add-ons | 106.6% | 112.1% |
Three months ended March 31, | |||||||
2017 | 2016 | ||||||
(in thousands) | |||||||
Revenue | |||||||
Subscription and support | $ | 39,540 | $ | 33,585 | |||
Professional services | 12,364 | 10,966 | |||||
Total revenue | 51,904 | 44,551 | |||||
Cost of revenue | |||||||
Subscription and support(1) | 7,637 | 6,918 | |||||
Professional services(1) | 6,581 | 6,188 | |||||
Total cost of revenue | 14,218 | 13,106 | |||||
Gross profit | 37,686 | 31,445 | |||||
Operating expenses | |||||||
Research and development(1) | 15,536 | 14,516 | |||||
Sales and marketing(1) | 18,713 | 20,088 | |||||
General and administrative(1) | 9,421 | 8,953 | |||||
Total operating expenses | 43,670 | 43,557 | |||||
Loss from operations | (5,984 | ) | (12,112 | ) | |||
Interest expense | (455 | ) | (490 | ) | |||
Other income, net | 612 | 576 | |||||
Loss before provision for income taxes | (5,827 | ) | (12,026 | ) | |||
Provision for income taxes | 9 | 19 | |||||
Net loss | $ | (5,836 | ) | $ | (12,045 | ) |
Three months ended March 31, | |||||||
2017 | 2016 | ||||||
(in thousands) | |||||||
Cost of revenue | |||||||
Subscription and support | $ | 140 | $ | 118 | |||
Professional services | 100 | 122 | |||||
Operating expenses | |||||||
Research and development | 493 | 584 | |||||
Sales and marketing | 659 | 455 | |||||
General and administrative | 2,747 | 2,111 | |||||
Total stock-based compensation expense | $ | 4,139 | $ | 3,390 |
Three months ended March 31, | |||||
2017 | 2016 | ||||
Revenue | |||||
Subscription and support | 76.2 | % | 75.4 | % | |
Professional services | 23.8 | 24.6 | |||
Total revenue | 100.0 | 100.0 | |||
Cost of revenue | |||||
Subscription and support | 14.7 | 15.5 | |||
Professional services | 12.7 | 13.9 | |||
Total cost of revenue | 27.4 | 29.4 | |||
Gross profit | 72.6 | 70.6 | |||
Operating expenses | |||||
Research and development | 29.9 | 32.6 | |||
Sales and marketing | 36.1 | 45.1 | |||
General and administrative | 18.2 | 20.1 | |||
Total operating expenses | 84.2 | 97.8 | |||
Loss from operations | (11.6 | ) | (27.2 | ) | |
Interest expense | (0.9 | ) | (1.1 | ) | |
Other income, net | 1.2 | 1.3 | |||
Loss before provision for income taxes | (11.3 | ) | (27.0 | ) | |
Benefit for income taxes | — | — | |||
Net loss | (11.3 | )% | (27.0 | )% |
Three months ended March 31, | |||||||||
2017 | 2016 | % Change | |||||||
(dollars in thousands) | |||||||||
Revenue | |||||||||
Subscription and support | $ | 39,540 | $ | 33,585 | 17.7% | ||||
Professional services | 12,364 | 10,966 | 12.7% | ||||||
Total revenue | $ | 51,904 | $ | 44,551 | 16.5% |
Three months ended March 31, | |||||||||
2017 | 2016 | % Change | |||||||
(dollars in thousands) | |||||||||
Cost of revenue | |||||||||
Subscription and support | $ | 7,637 | $ | 6,918 | 10.4% | ||||
Professional services | 6,581 | 6,188 | 6.4% | ||||||
Total cost of revenue | $ | 14,218 | $ | 13,106 | 8.5% |
Three months ended March 31, | |||||||||
2017 | 2016 | % Change | |||||||
(dollars in thousands) | |||||||||
Operating expenses | |||||||||
Research and development | $ | 15,536 | $ | 14,516 | 7.0% | ||||
Sales and marketing | 18,713 | 20,088 | (6.8)% | ||||||
General and administrative | 9,421 | 8,953 | 5.2% | ||||||
Total operating expenses | $ | 43,670 | $ | 43,557 | 0.3% |
Three months ended March 31, | |||||||
2017 | 2016 | ||||||
(dollars in thousands) | |||||||
Interest expense | $ | (455 | ) | $ | (490 | ) | |
Other income, net | 612 | 576 |
Three months ended March 31, | |||||||
2017 | 2016 | ||||||
(in thousands) | |||||||
Cash flow provided by (used in) operating activities | $ | 2,580 | $ | (19,078 | ) | ||
Cash flow (used in) provided by investing activities | (1,242 | ) | 4,326 | ||||
Cash flow used in financing activities | (427 | ) | (726 | ) | |||
Net increase (decrease) in cash and cash equivalents, net of impact of exchange rates | $ | 923 | $ | (15,524 | ) |
Date | Total Number of Shares Purchased (1) | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Program | Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under Program | |||||||||
January 2017 | — | — | — | — | |||||||||
February 2017 | 72,871 | $ | 12.85 | — | — | ||||||||
March 2017 | — | — | — | — | |||||||||
Total | 72,871 | $ | 12.85 | — | — |
WORKIVA INC. | |
By: | /s/ Matthew M. Rizai, Ph.D. |
Name: | Matthew M. Rizai, Ph.D. |
Title: | Chairman and Chief Executive Officer |
By: | /s/ J. Stuart Miller |
Name: | J. Stuart Miller |
Title: | Executive Vice President, Treasurer and Chief Financial Officer |
By: | /s/ Jill Klindt |
Name: | Jill Klindt |
Title: | Senior Vice President and Chief Accounting Officer |
Exhibit Number | Description | |
31.1 | Certification of the Chief Executive Officer, pursuant to Rule 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
31.2 | Certification of the Chief Financial Officer, pursuant to Rule 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
32.1 | Certification of the Chief Executive Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
32.2 | Certification of the Chief Financial Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |
101.SCH | XBRL Taxonomy Extension Schema Document. | |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document. | |
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document. | |
101.LAB | XBRL Taxonomy Extension Label Linkbase Document. | |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document. | |
Date: May 4, 2017 | /s/ Matthew M. Rizai, Ph.D. Matthew M. Rizai, Ph.D. Chairman and Chief Executive Officer (Principal Executive Officer) |
Date: May 4, 2017 | /s/ J. Stuart Miller J. Stuart Miller Executive Vice President, Treasurer and Chief Financial Officer (Principal Financial Officer) |
1. | the Quarterly Report on Form 10-Q of the Company for the period ended March 31, 2017 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and |
2. | the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company for the periods presented therein. |
Date: May 4, 2017 | /s/ Matthew M. Rizai, Ph.D. Matthew M. Rizai, Ph.D. Chairman and Chief Executive Officer (Principal Executive Officer) |
1. | the Quarterly Report on Form 10-Q of the Company for the period ended March 31, 2017 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and |
2. | the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company for the periods presented therein. |
Date: May 4, 2017 | /s/ J. Stuart Miller J. Stuart Miller Executive Vice President, Treasurer and Chief Financial Officer (Principal Financial Officer) |
Document and Entity Information - shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
May 02, 2017 |
|
Entity Information [Line Items] | ||
Entity Registrant Name | WORKIVA INC | |
Entity Central Index Key | 0001445305 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2017 | |
Document Fiscal Year Focus | 2017 | |
Amendment Flag | false | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Class A Common Stock | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 30,533,136 | |
Class B Common Stock | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 10,843,888 |
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands |
Mar. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Allowance for doubtful accounts | $ 1,186 | $ 900 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 100,000,000 | 100,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Class A Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 30,449,500 | 30,369,199 |
Common stock, shares outstanding | 30,449,500 | 30,369,199 |
Class B Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 10,867,888 | 10,891,888 |
Common stock, shares outstanding | 10,867,888 | 10,891,888 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Revenue | ||
Subscription and support | $ 39,540 | $ 33,585 |
Professional services | 12,364 | 10,966 |
Total revenue | 51,904 | 44,551 |
Cost of revenue | ||
Subscription and support | 7,637 | 6,918 |
Professional services | 6,581 | 6,188 |
Total cost of revenue | 14,218 | 13,106 |
Gross profit | 37,686 | 31,445 |
Operating expenses | ||
Research and development | 15,536 | 14,516 |
Sales and marketing | 18,713 | 20,088 |
General and administrative | 9,421 | 8,953 |
Total operating expenses | 43,670 | 43,557 |
Loss from operations | (5,984) | (12,112) |
Interest expense | (455) | (490) |
Other income, net | 612 | 576 |
Loss before provision for income taxes | (5,827) | (12,026) |
Provision for income taxes | 9 | 19 |
Net loss | $ (5,836) | $ (12,045) |
Net loss per common share: | ||
Basic and diluted (in dollars per share) | $ (0.14) | $ (0.30) |
Weighted average common shares outstanding - basic and diluted (in shares) | 41,108,611 | 40,451,668 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (5,836) | $ (12,045) |
Other comprehensive loss, net of tax | ||
Foreign currency translation adjustment, net of income tax benefit (expense) of $2 and $0 for the three months ended March 31, 2017 and 2016, respectively | (34) | (101) |
Unrealized gain on available-for-sale securities, net of income tax (expense) benefit of ($2) and $0 for the three months ended March 31, 2017 and 2016, respectively | 2 | 75 |
Other comprehensive loss, net of tax | (32) | (26) |
Comprehensive loss | $ (5,868) | $ (12,071) |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Statement of Comprehensive Income [Abstract] | ||
Foreign currency translation adjustment, tax (expense) benefit | $ 2 | $ 0 |
Unrealized gain on available-for-sale securities, tax benefit (expense) | $ (2) | $ 0 |
Organization and Significant Accounting Policies |
3 Months Ended |
---|---|
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Significant Accounting Policies | Organization and Significant Accounting Policies Organization Workiva Inc., a Delaware corporation, and its wholly-owned subsidiaries created Wdesk, a collaborative work management platform for organizations to collect, link, report and analyze their business data. Wdesk’s proprietary word processing, spreadsheet and presentation applications are integrated and built upon a data management engine, offering synchronized data, controlled collaboration, granular permissions and a full audit trail. We offer Wdesk solutions for a wide range of use cases in the following markets: finance and accounting, audit and internal controls, risk and compliance and operations. Our operational headquarters are located in Ames, Iowa, with additional offices located in the United States, Europe, and Canada. Basis of Presentation and Principles of Consolidation The financial information presented in the accompanying unaudited condensed consolidated financial statements has been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and in accordance with rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Accordingly, the financial statements do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The condensed consolidated balance sheet data as of December 31, 2016 was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. The condensed consolidated financial information should be read in conjunction with the consolidated financial statements and notes included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2016 filed with the SEC on February 23, 2017. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, consisting primarily of normal recurring accruals, necessary for a fair presentation of our financial position and results of operations. The operating results for the three months ended March 31, 2017 are not necessarily indicative of the results expected for the full year ending December 31, 2017. The unaudited condensed consolidated financial statements include the accounts of Workiva Inc. and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. We base our estimates on historical experience and various other assumptions believed to be reasonable. These estimates include, but are not limited to, the determination of the relative selling prices of our services, health insurance claims incurred but not yet reported, collectability of accounts receivable, valuation of available-for-sale marketable securities, useful lives of intangible assets and property and equipment, income taxes and certain assumptions used in the valuation of equity awards. While these estimates are based on our best knowledge of current events and actions that may affect us in the future, actual results may differ materially from these estimates. Recently Adopted Accounting Pronouncements In March 2016, the FASB issued ASU 2016-09, Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. Under this ASU, entities are permitted to make an accounting policy election to either estimate forfeitures on share-based payment awards, as required by current guidance, or to recognize forfeitures as they occur. The guidance became effective for interim and annual periods beginning after December 15, 2016. Effective January 1, 2017, we adopted this standard. We elected to recognize forfeitures on share-based payment awards as they occur. The adoption, along with the remaining provisions of ASU 2016-09, did not have a material impact on our consolidated financial statements. In October 2016, the FASB issued ASU 2016-16, Income Taxes - Intra-Entity Transfers of Assets Other Than Inventory, which requires entities to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The new guidance is effective for annual reporting periods beginning after December 15, 2017. Early adoption is permitted as of the beginning of an annual reporting period. The new standard must be adopted using a modified retrospective transition method, with the cumulative effect recognized as of the date of initial adoption. Effective January 1, 2017, we adopted this standard. The adoption of this new guidance did not have a material impact on our consolidated financial statements. New Accounting Pronouncements Not Yet Adopted In May 2014, the Financial Accounting Standards Board (FASB) issued guidance codified in ASC 606, Revenue Recognition - Revenue from Contracts with Customers (ASU 2014-09), which amends the guidance in former ASC 605, Revenue Recognition. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Additionally, the guidance requires improved disclosures to help users of financial statements better understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The FASB has issued several amendments and updates to the new revenue standard, including guidance related to when an entity should recognize revenue gross as a principal or net as an agent and how an entity should identify performance obligations. As amended, ASU 2014-09 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted for all entities only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. Upon adoption of ASU 2014-09, we expect we will be required to view certain of our professional services as being provided over time rather than as of a specific point in time. We expect this may result in some acceleration of revenue recognition. In addition, ASU 2014-09 requires that all incremental costs of obtaining a contract with a customer are recognized as an asset. We expect this will result in an increase in the costs we capitalize. In addition, the guidance requires that these costs are deferred over a term that is consistent with the transfer to the customer of the services to which the asset relates. We expect this will result in these costs being deferred over a longer period than under current guidance. We are still evaluating the ASU for other potential impacts to our consolidated financial statements. We plan to adopt the guidance as of January 1, 2018 and expect to utilize the modified retrospective transition method. We have a project plan in place for the transition to revenue recognition in accordance with ASC 606 including necessary changes to accounting processes, procedures and internal controls.
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Supplemental Consolidated Balance Sheet and Statement of Operations Information |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Consolidated Balance Sheet and Statement of Operations Information | Supplemental Consolidated Balance Sheet and Statement of Operations Information Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of (in thousands):
Other Income, net Other income, net for the three months ended March 31, 2017 and 2016 consisted of (in thousands):
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Marketable Securities |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Marketable Securities | Marketable Securities At March 31, 2017, marketable securities consisted of the following (in thousands):
At December 31, 2016, marketable securities consisted of the following (in thousands):
The following table presents gross unrealized losses and fair values for those marketable securities that were in an unrealized loss position as of March 31, 2017, aggregated by investment category and the length of time that individual securities have been in a continuous loss position (in thousands):
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Fair Value Measurements |
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Fair Value Measurements | Fair Value Measurements We determine the fair values of our financial instruments based on the fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value assumes that the transaction to sell the asset or transfer the liability occurs in the principal or most advantageous market for the asset or liability and establishes that the fair value of an asset or liability shall be determined based on the assumptions that market participants would use in pricing the asset or liability. The classification of a financial asset or liability within the hierarchy is based upon the lowest level input that is significant to the fair value measurement. The fair value hierarchy prioritizes the inputs into three levels that may be used to measure fair value:
Financial Assets Cash equivalents primarily consist of AAA-rated money market funds with overnight liquidity and no stated maturities. We classified cash equivalents as Level 1 due to the short-term nature of these instruments and measured the fair value based on quoted prices in active markets for identical assets. When available, our marketable securities are valued using quoted prices for identical instruments in active markets. If we are unable to value our marketable securities using quoted prices for identical instruments in active markets, we value our investments using broker reports that utilize quoted market prices for comparable instruments. We validate, on a sample basis, the derived prices provided by the brokers by comparing their assessment of the fair values of our investments against the fair values of the portfolio balances of another third-party professional pricing service. As of March 31, 2017, all of our marketable securities were valued using quoted prices for comparable instruments in active markets and are classified as Level 2. Based on our valuation of our money market funds and marketable securities, we concluded that they are classified in either Level 1 or Level 2 and we have no financial assets measured using Level 3 inputs. The following table presents information about our assets that are measured at fair value on a recurring basis using the above input categories (in thousands):
Other Fair Value Measurements At March 31, 2017, the fair value of our debt obligations approximated the carrying amount of $73,000. The estimated fair value was based in part on our consideration of incremental borrowing rates for similar types of borrowing arrangements. We have classified the fair value of our debt obligations as Level 3 due to the lack of relevant observable market data over fair value inputs.
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Commitments and Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Lease Commitments There have been no material changes in our future estimated minimum lease payments under non-cancelable operating, capital and financing leases, as disclosed in our Annual Report on Form 10-K for the year ended December 31, 2016. Litigation From time to time we may become involved in legal proceedings or be subject to claims arising in the ordinary course of our business. Although the results of litigation and claims cannot be predicted with certainty, we currently believe that the final outcome of any currently pending legal proceedings to which we are a party will not have a material adverse effect on our business, operating results, financial condition or cash flows. Regardless of the outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources and other factors.
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Stock-Based Compensation |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation | Stock-Based Compensation We grant stock-based incentive awards to attract, motivate and retain qualified employees, non-employee directors and consultants, and to align their financial interests with those of our stockholders. We utilize stock-based compensation in the form of restricted stock awards, restricted stock units and options to purchase Class A common stock. As of March 31, 2017, awards outstanding under the 2009 Plan consisted of stock options, and awards outstanding under the 2014 Plan consisted of stock options, restricted stock awards and restricted stock units. As of March 31, 2017, 2,984,965 shares of Class A common stock were available for grant under the 2014 Plan. Stock-based compensation expense for the three months ended March 31, 2017 was $2.6 million, $0.6 million, and $0.9 million for options to purchase Class A common stock, restricted stock awards and restricted stock units, respectively. Stock-based compensation expense for the three months ended March 31, 2016 was $2.2 million, $0.8 million and $0.3 million for options to purchase Class A common stock, restricted stock awards and restricted stock units, respectively. Stock-based compensation expense associated with stock options, restricted stock awards, and restricted stock units was recorded in the following cost and expense categories consistent with the respective employee or service provider’s related cash compensation (in thousands):
The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model. Expected volatility is based on historical volatilities for publicly traded stock of comparable companies over the estimated expected life of the options. The expected term represents the period of time the options are expected to be outstanding and is based on the “simplified method” as defined by SEC Staff Accounting Bulletin No. 110 (Topic 14.D.2). We use the “simplified method” due to the lack of sufficient historical exercise data to provide a reasonable basis upon which to otherwise estimate the expected life of the options. The risk-free interest rate is based on yields on U.S. Treasury STRIPS (Separate Trading of Registered Interest and Principal of Securities) with a maturity similar to the estimated expected term of the options. The fair value of our stock options was estimated assuming no expected dividends and the following weighted-average assumptions:
Stock Options The following table summarizes the option activity under the Plans for the three months ended March 31, 2017:
Options to purchase Class A common stock generally vest over a three- or four-year period and are generally granted for a term of ten years. The total intrinsic value of options exercised during the three months ended March 31, 2017 and 2016 was $1.0 million and $0.6 million, respectively. The weighted-average grant-date fair value of options granted during the three months ended March 31, 2017 and 2016 was $5.78 and $6.75, respectively. The total fair value of options vested during the three months ended March 31, 2017 and 2016 was approximately $3.2 million and $1.6 million, respectively. Total unrecognized compensation expense of $21.3 million related to options will be recognized over a weighted-average period of 2.4 years. Restricted Stock Awards We have granted restricted stock awards to our executive officers that vest in three equal annual installments from the date of grant. The recipient of an award of restricted stock under the Plan may vote and receive dividends on the shares of restricted stock covered by the award. The fair value for restricted stock awards is calculated based on the stock price on the date of grant. The total fair value of restricted stock awards vested during each of the three months ended March 31, 2017 and 2016 was approximately $2.4 million. The following table summarizes the restricted stock award activity under the Plan for the three months ended March 31, 2017:
Compensation expense associated with unvested restricted stock awards is recognized on a straight-line basis over the vesting period. At March 31, 2017, there was approximately $2.0 million of total unrecognized compensation expense related to restricted stock awards, which is expected to be recognized over a weighted-average period of 0.8 years. Restricted Stock Units We have granted restricted stock units to our executive officers that vest in three equal annual installments from the date of grant and to non-employee members of our Board of Directors with one-year cliff vesting from the date of grant. The recipient of a restricted stock unit award under the Plan will have no rights as a stockholder until share certificates are issued by us, but, at the discretion of our Compensation Committee, has the right to receive a dividend equivalent payment in the form of additional restricted stock units. Additionally, until the shares are issued, they have no voting rights and may not be bought or sold. The fair value for restricted stock units is calculated based on the stock price on the date of grant. The total fair value of restricted stock units vested during the three months ended March 31, 2017 was approximately $1.6 million. No restricted stock units vested during the three months ended March 31, 2016. The following table summarizes the restricted stock unit activity under the Plan for the three months ended March 31, 2017:
(1) As of March 31, 2017, recipients had elected to defer settlement of the vested restricted stock units in accordance with our Nonqualified Deferred Compensation Plan. Compensation expense associated with unvested restricted stock units is recognized on a straight-line basis over the vesting period. At March 31, 2017, there was approximately $7.6 million of total unrecognized compensation expense related to restricted stock units, which is expected to be recognized over a weighted-average period of 2.3 years.
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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 our outstanding stock options and stock related to unvested restricted stock awards to the extent dilutive. The net loss per share is allocated based on the participation rights of the Class A and Class B common shares as if the loss for the year has been distributed. As the liquidation and dividend rights are identical, the net loss is allocated on a proportionate basis. We consider unvested restricted stock awards granted under the 2014 Equity Incentive Plan to be participating securities because holders of such shares have non-forfeitable dividend rights in the event of our declaration of a dividend for common shares. In future periods to the extent we are profitable, we will subtract earnings allocated to these participating securities from net income to determine net income attributable to common stockholders. A reconciliation of the denominator used in the calculation of basic and diluted loss per share is as follows (in thousands, except share and per share data):
The anti-dilutive securities excluded from the weighted-average shares used to calculate the diluted net loss per common share were as follows:
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Organization and Significant Accounting Policies (Policies) |
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Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Principles of Consolidation | The financial information presented in the accompanying unaudited condensed consolidated financial statements has been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and in accordance with rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Accordingly, the financial statements do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The condensed consolidated balance sheet data as of December 31, 2016 was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. The condensed consolidated financial information should be read in conjunction with the consolidated financial statements and notes included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2016 filed with the SEC on February 23, 2017. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, consisting primarily of normal recurring accruals, necessary for a fair presentation of our financial position and results of operations. The operating results for the three months ended March 31, 2017 are not necessarily indicative of the results expected for the full year ending December 31, 2017. |
Use of Estimates | The preparation of consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. We base our estimates on historical experience and various other assumptions believed to be reasonable. These estimates include, but are not limited to, the determination of the relative selling prices of our services, health insurance claims incurred but not yet reported, collectability of accounts receivable, valuation of available-for-sale marketable securities, useful lives of intangible assets and property and equipment, income taxes and certain assumptions used in the valuation of equity awards. While these estimates are based on our best knowledge of current events and actions that may affect us in the future, actual results may differ materially from these estimates. |
Recently Adopted Accounting Pronouncements and New Accounting Pronouncements Not Yet Adopted | In March 2016, the FASB issued ASU 2016-09, Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. Under this ASU, entities are permitted to make an accounting policy election to either estimate forfeitures on share-based payment awards, as required by current guidance, or to recognize forfeitures as they occur. The guidance became effective for interim and annual periods beginning after December 15, 2016. Effective January 1, 2017, we adopted this standard. We elected to recognize forfeitures on share-based payment awards as they occur. The adoption, along with the remaining provisions of ASU 2016-09, did not have a material impact on our consolidated financial statements. In October 2016, the FASB issued ASU 2016-16, Income Taxes - Intra-Entity Transfers of Assets Other Than Inventory, which requires entities to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The new guidance is effective for annual reporting periods beginning after December 15, 2017. Early adoption is permitted as of the beginning of an annual reporting period. The new standard must be adopted using a modified retrospective transition method, with the cumulative effect recognized as of the date of initial adoption. Effective January 1, 2017, we adopted this standard. The adoption of this new guidance did not have a material impact on our consolidated financial statements.In May 2014, the Financial Accounting Standards Board (FASB) issued guidance codified in ASC 606, Revenue Recognition - Revenue from Contracts with Customers (ASU 2014-09), which amends the guidance in former ASC 605, Revenue Recognition. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Additionally, the guidance requires improved disclosures to help users of financial statements better understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The FASB has issued several amendments and updates to the new revenue standard, including guidance related to when an entity should recognize revenue gross as a principal or net as an agent and how an entity should identify performance obligations. As amended, ASU 2014-09 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted for all entities only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. Upon adoption of ASU 2014-09, we expect we will be required to view certain of our professional services as being provided over time rather than as of a specific point in time. We expect this may result in some acceleration of revenue recognition. In addition, ASU 2014-09 requires that all incremental costs of obtaining a contract with a customer are recognized as an asset. We expect this will result in an increase in the costs we capitalize. In addition, the guidance requires that these costs are deferred over a term that is consistent with the transfer to the customer of the services to which the asset relates. We expect this will result in these costs being deferred over a longer period than under current guidance. We are still evaluating the ASU for other potential impacts to our consolidated financial statements. We plan to adopt the guidance as of January 1, 2018 and expect to utilize the modified retrospective transition method. We have a project plan in place for the transition to revenue recognition in accordance with ASC 606 including necessary changes to accounting processes, procedures and internal controls. |
Fair Value of Financial Instruments | Cash equivalents primarily consist of AAA-rated money market funds with overnight liquidity and no stated maturities. We classified cash equivalents as Level 1 due to the short-term nature of these instruments and measured the fair value based on quoted prices in active markets for identical assets. When available, our marketable securities are valued using quoted prices for identical instruments in active markets. If we are unable to value our marketable securities using quoted prices for identical instruments in active markets, we value our investments using broker reports that utilize quoted market prices for comparable instruments. We validate, on a sample basis, the derived prices provided by the brokers by comparing their assessment of the fair values of our investments against the fair values of the portfolio balances of another third-party professional pricing service. |
Share-based Compensation | The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model. Expected volatility is based on historical volatilities for publicly traded stock of comparable companies over the estimated expected life of the options. The expected term represents the period of time the options are expected to be outstanding and is based on the “simplified method” as defined by SEC Staff Accounting Bulletin No. 110 (Topic 14.D.2). We use the “simplified method” due to the lack of sufficient historical exercise data to provide a reasonable basis upon which to otherwise estimate the expected life of the options. The risk-free interest rate is based on yields on U.S. Treasury STRIPS (Separate Trading of Registered Interest and Principal of Securities) with a maturity similar to the estimated expected term of the options. |
Supplemental Consolidated Balance Sheet and Statement of Operations Information (Tables) |
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consisted of (in thousands):
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Schedule of Other Income and (Expense), net | Other income, net for the three months ended March 31, 2017 and 2016 consisted of (in thousands):
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Marketable Securities (Tables) |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Marketable Securities | At March 31, 2017, marketable securities consisted of the following (in thousands):
At December 31, 2016, marketable securities consisted of the following (in thousands):
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Schedule of Cash and Cash Equivalents | At March 31, 2017, marketable securities consisted of the following (in thousands):
At December 31, 2016, marketable securities consisted of the following (in thousands):
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Schedule of Available-for-sale Securities, Continuous Unrealized Loss Position | The following table presents gross unrealized losses and fair values for those marketable securities that were in an unrealized loss position as of March 31, 2017, aggregated by investment category and the length of time that individual securities have been in a continuous loss position (in thousands):
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Fair Value Measurements (Tables) |
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Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Assets Measured on Recurring Basis | The following table presents information about our assets that are measured at fair value on a recurring basis using the above input categories (in thousands):
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Stock-Based Compensation (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Stock-based Compensation Expense | Stock-based compensation expense associated with stock options, restricted stock awards, and restricted stock units was recorded in the following cost and expense categories consistent with the respective employee or service provider’s related cash compensation (in thousands):
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Schedule of Share-based Payment Award, Valuation Assumptions | The fair value of our stock options was estimated assuming no expected dividends and the following weighted-average assumptions:
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Schedule of Stock-Option Activity | The following table summarizes the option activity under the Plans for the three months ended March 31, 2017:
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Schedule of Restricted Stock Awards and Restricted Stock Units Activity | The following table summarizes the restricted stock award activity under the Plan for the three months ended March 31, 2017:
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Net Loss Per Share (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted | A reconciliation of the denominator used in the calculation of basic and diluted loss per share is as follows (in thousands, except share and per share data):
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Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The anti-dilutive securities excluded from the weighted-average shares used to calculate the diluted net loss per common share were as follows:
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Supplemental Consolidated Balance Sheet and Statement of Operations Information - Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands |
Mar. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Accrued Liabilities and Other Liabilities [Abstract] | ||
Accrued vacation | $ 5,289 | $ 4,368 |
Accrued commissions | 2,146 | 2,382 |
Accrued bonuses | 2,909 | 8,927 |
Estimated health insurance claims | 1,180 | 1,210 |
Accrued other liabilities | 3,374 | 3,808 |
Accrued expenses and other current liabilities | $ 14,898 | $ 20,695 |
Supplemental Consolidated Balance Sheet and Statement of Operations Information - Other Income and (Expense), Net (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Other Nonoperating Income (Expense) [Abstract] | ||
Interest income | $ 91 | $ 83 |
Income from training reimbursement program | 538 | 433 |
Other | (17) | 60 |
Nonoperating income (expense) | $ 612 | $ 576 |
Marketable Securities - Continuous Unrealized Loss Position (Details) $ in Thousands |
Mar. 31, 2017
USD ($)
|
---|---|
Fair Value | |
Less than 12 months | $ 8,532 |
12 months or greater | 0 |
Unrealized Loss | |
Less than 12 months | (10) |
12 months or greater | 0 |
U. S. treasury debt securities | |
Fair Value | |
Less than 12 months | 3,496 |
12 months or greater | 0 |
Unrealized Loss | |
Less than 12 months | (6) |
12 months or greater | 0 |
U.S. corporate debt securities | |
Fair Value | |
Less than 12 months | 5,036 |
12 months or greater | 0 |
Unrealized Loss | |
Less than 12 months | (4) |
12 months or greater | $ 0 |
Stock-Based Compensation - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense | $ 4,139 | $ 3,390 |
Employee stock option | Class A Common Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense | 2,600 | 2,200 |
Restricted stock awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense | 600 | 800 |
Restricted stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense | $ 900 | $ 300 |
2014 Equity Incentive Plan | Class A Common Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares available for grant | 2,984,965 |
Stock-Based Compensation - Assumptions (Details) - Employee stock option |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||
Risk-free interest rate, min (as percent) | 2.09% | 1.48% |
Risk-free interest rate, max (as percent) | 2.14% | 1.90% |
Expected volatility, min (as percent) | 39.90% | 45.00% |
Expected volatility, max (as percent) | 43.80% | 45.30% |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||
Expected term (in years) | 6 years | 6 years |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||
Expected term (in years) | 6 years 1 month 6 days | 6 years 1 month 6 days |
Net Loss Per Share - Earnings Per Share Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Class of Stock [Line Items] | ||
Net loss | $ (5,836) | $ (12,045) |
Weighted-average common shares outstanding - basic and diluted (in shares) | 41,108,611 | 40,451,668 |
Basic and diluted net loss per share (in dollars per share) | $ (0.14) | $ (0.30) |
Class A Common Stock | ||
Class of Stock [Line Items] | ||
Net loss | $ (4,293) | $ (8,496) |
Weighted-average common shares outstanding - basic and diluted (in shares) | 30,239,390 | 28,534,236 |
Basic and diluted net loss per share (in dollars per share) | $ (0.14) | $ (0.30) |
Class B Common Stock | ||
Class of Stock [Line Items] | ||
Net loss | $ (1,543) | $ (3,549) |
Weighted-average common shares outstanding - basic and diluted (in shares) | 10,869,221 | 11,917,432 |
Basic and diluted net loss per share (in dollars per share) | $ (0.14) | $ (0.30) |
Net Loss Per Share - Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Shares subject to outstanding common stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 8,253,195 | 7,500,616 |
Shares subject to unvested restricted stock awards | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 176,665 | 423,360 |
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