(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, 2019 | |||||
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 ý | Accelerated filer o | ||||
Non-accelerated filer o | Smaller reporting company o | ||||
Emerging growth company o |
Page | |||||||||||
WORKIVA INC. CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||||
(in thousands, except share and per share amounts) | |||||||||||
As of March 31, 2019 | As of December 31, 2018 | ||||||||||
(unaudited) | |||||||||||
ASSETS | |||||||||||
Current assets | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Marketable securities | |||||||||||
Accounts receivable, net of allowance for doubtful accounts of $769 and $956 at March 31, 2019 and December 31, 2018, respectively | |||||||||||
Deferred commissions | |||||||||||
Other receivables | |||||||||||
Prepaid expenses | |||||||||||
Total current assets | |||||||||||
Property and equipment, net | |||||||||||
Operating lease right-of-use assets | — | ||||||||||
Deferred commissions, non-current | |||||||||||
Intangible assets, net | |||||||||||
Other assets | |||||||||||
Total assets | $ | $ | |||||||||
WORKIVA INC. CONDENSED CONSOLIDATED BALANCE SHEETS (continued) | |||||||||||
(in thousands, except share and per share amounts) | |||||||||||
As of March 31, 2019 | As of December 31, 2018 | ||||||||||
(unaudited) | |||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) | |||||||||||
Current liabilities | |||||||||||
Accounts payable | $ | $ | |||||||||
Accrued expenses and other current liabilities | |||||||||||
Deferred revenue | |||||||||||
Current portion of financing obligations | |||||||||||
Total current liabilities | |||||||||||
Deferred revenue, non-current | |||||||||||
Other long-term liabilities | |||||||||||
Operating lease liabilities, non-current | — | ||||||||||
Financing obligations, non-current | |||||||||||
Total liabilities | |||||||||||
Stockholders’ equity (deficit) | |||||||||||
Class A common stock, $0.001 par value per share, 1,000,000,000 shares authorized, 35,695,049 and 34,498,391 shares issued and outstanding at March 31, 2019 and December 31, 2018, respectively | |||||||||||
Class B common stock, $0.001 par value per share, 500,000,000 shares authorized, 9,425,596 and 9,545,596 shares issued and outstanding at March 31, 2019 and December 31, 2018, 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’ equity (deficit) | ( | ||||||||||
Total liabilities and stockholders’ equity (deficit) | $ | $ | |||||||||
WORKIVA INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share amounts) (unaudited) | |||||||||||
Three months ended March 31, | |||||||||||
2019 | 2018 | ||||||||||
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, | |||||||||||
2019 | 2018 | ||||||||||
Net loss | $ | ( | $ | ( | |||||||
Other comprehensive income (loss), net of tax | |||||||||||
Foreign currency translation adjustment, net of income tax benefit (expense) of ($3) and $0 for the three months ended March 31, 2019 and 2018, respectively | ( | ||||||||||
Unrealized gain (loss) on available-for-sale securities, net of income tax benefit (expense) of ($15) and $0 for the three months ended March 31, 2019 and 2018, respectively | ( | ||||||||||
Other comprehensive income (loss), net of tax | ( | ||||||||||
Comprehensive loss | $ | ( | $ | ( |
WORKIVA INC. CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) (in thousands) (unaudited) | |||||||||||||||||||||||||||||||||||
Three months ended March 31, 2019 | |||||||||||||||||||||||||||||||||||
Common Stock (Class A and B) | |||||||||||||||||||||||||||||||||||
Shares | Amount | Additional Paid-in-Capital | Accumulated Other Comprehensive Income | Accumulated Deficit | Total Stockholders' Equity (Deficit) | ||||||||||||||||||||||||||||||
Balances at December 31, 2018 | $ | $ | $ | $ | ( | $ | ( | ||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | |||||||||||||||||||||||||||||||
Issuance of common stock upon exercise of stock options | — | — | |||||||||||||||||||||||||||||||||
Issuance of common stock under employee stock purchase plan | — | — | — | ||||||||||||||||||||||||||||||||
Issuance of restricted stock units | — | — | — | — | — | ||||||||||||||||||||||||||||||
Tax withholdings related to net share settlements of stock-based compensation awards | ( | — | ( | — | — | ( | |||||||||||||||||||||||||||||
Net loss | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | |||||||||||||||||||||||||||||||
Balances at March 31, 2019 | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||
Three months ended March 31, 2018 | |||||||||||||||||||||||||||||||||||
Common Stock (Class A and B) | |||||||||||||||||||||||||||||||||||
Shares | Amount | Additional Paid-in-Capital | Accumulated Other Comprehensive Income | Accumulated Deficit | Total Stockholders' Deficit | ||||||||||||||||||||||||||||||
Balances at December 31, 2017 | $ | $ | $ | $ | ( | $ | ( | ||||||||||||||||||||||||||||
Cumulative-effect adjustment in connection with the adoption of ASU 2014-09 | — | — | — | — | |||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | |||||||||||||||||||||||||||||||
Issuance of common stock upon exercise of stock options | — | — | |||||||||||||||||||||||||||||||||
Issuance of common stock under employee stock purchase plan | — | — | — | ||||||||||||||||||||||||||||||||
Issuance of restricted stock units | — | — | — | — | — | ||||||||||||||||||||||||||||||
Tax witholdings related to net share settlements of stock-based compensation awards | ( | — | ( | — | — | ( | |||||||||||||||||||||||||||||
Net loss | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Balances at March 31, 2018 | $ | $ | $ | $ | ( | $ | ( |
WORKIVA INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||
(in thousands) (unaudited) | |||||||||||
Three months ended March 31, | |||||||||||
2019 | 2018 | ||||||||||
Cash flows from operating activities | |||||||||||
Net loss | $ | ( | $ | ( | |||||||
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Stock-based compensation expense | |||||||||||
(Recovery of) provision for doubtful accounts | ( | ||||||||||
(Accretion) amortization of premiums and discounts on marketable securities, net | ( | ||||||||||
Deferred income tax | ( | ||||||||||
Changes in assets and liabilities: | |||||||||||
Accounts receivable | |||||||||||
Deferred commissions | ( | ( | |||||||||
Operating lease right-of-use asset | |||||||||||
Other receivables | ( | ||||||||||
Prepaid expenses and other | ( | ||||||||||
Other assets | ( | ( | |||||||||
Accounts payable | ( | ||||||||||
Deferred revenue | ( | ||||||||||
Operating lease liability | ( | ||||||||||
Accrued expenses and other liabilities | ( | ( | |||||||||
Net cash provided by operating activities | |||||||||||
Cash flows from investing activities | |||||||||||
Purchase of property and equipment | ( | ( | |||||||||
Purchase of marketable securities | ( | ||||||||||
Maturities of marketable securities | |||||||||||
Purchase of intangible assets | ( | ( | |||||||||
Net cash (used in) provided by investing activities | ( |
WORKIVA INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (continued) | |||||||||||
(in thousands) (unaudited) | |||||||||||
Three months ended March 31, | |||||||||||
2019 | 2018 | ||||||||||
Cash flows from financing activities | |||||||||||
Proceeds from option exercises | |||||||||||
Taxes paid related to net share settlements of stock-based compensation awards | ( | ( | |||||||||
Proceeds from shares issued in connection with employee stock purchase plan | |||||||||||
Principal payments on capital lease and financing obligations | ( | ( | |||||||||
Net cash provided by financing activities | |||||||||||
Effect of foreign exchange rates on cash | ( | ||||||||||
Net increase 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 | $ | $ | |||||||||
As of December 31, 2018 | Adjustments due to ASC 842 adoption | As of January 1, 2019 | |||||||||||||||
Assets | |||||||||||||||||
Operating right-of-use asset | $ | $ | $ | ||||||||||||||
Liabilities | |||||||||||||||||
Accrued expenses and other current liabilities | |||||||||||||||||
Other long-term liabilities | ( | ||||||||||||||||
Operating lease liabilities, non-current |
March 31, 2019 | December 31, 2018 | ||||||||||
Accrued vacation | $ | $ | |||||||||
Accrued commissions | |||||||||||
Accrued bonuses | |||||||||||
Estimated health insurance claims | |||||||||||
ESPP employee contributions | |||||||||||
Customer deposits | |||||||||||
Operating lease liabilities | — | ||||||||||
Accrued other liabilities | |||||||||||
$ | $ |
Amortized Cost | Unrealized Gains | Unrealized Losses | Aggregate Fair Value | ||||||||||||||||||||
Money market funds | $ | $ | — | $ | — | $ | |||||||||||||||||
Commercial paper | |||||||||||||||||||||||
U.S. treasury debt securities | |||||||||||||||||||||||
U.S. corporate debt securities | ( | ||||||||||||||||||||||
$ | $ | $ | ( | $ | |||||||||||||||||||
Included in cash and cash equivalents | $ | $ | — | $ | — | $ | |||||||||||||||||
Included in marketable securities | $ | $ | $ | ( | $ |
Amortized Cost | Unrealized Gains | Unrealized Losses | Aggregate Fair Value | ||||||||||||||||||||
Money market funds | $ | $ | — | $ | — | $ | |||||||||||||||||
Commercial paper | |||||||||||||||||||||||
U.S. treasury debt securities | ( | ||||||||||||||||||||||
U.S. corporate debt securities | ( | ||||||||||||||||||||||
$ | $ | $ | ( | $ | |||||||||||||||||||
Included in cash and cash equivalents | $ | $ | — | $ | — | $ | |||||||||||||||||
Included in marketable securities | $ | $ | $ | ( | $ |
As of March 31, 2019 | |||||||||||||||||||||||
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 | $ | $ | ( | $ | $ | ( |
Fair Value Measurements as of March 31, 2019 | Fair Value Measurements as of December 31, 2018 | |||||||||||||||||||||||||||||||||||||
Description | Total | Level 1 | Level 2 | Total | Level 1 | Level 2 | ||||||||||||||||||||||||||||||||
Money market funds | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Commercial paper | ||||||||||||||||||||||||||||||||||||||
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, 2019 | |||||
Operating lease cost | $ | ||||
Short-term lease cost | |||||
Variable lease cost | |||||
$ |
Three months ended March 31, 2019 | |||||
Cash paid for amounts included in the measurement of lease liabilities: | |||||
Operating cash flows from operating leases | $ | ||||
Right-of-use assets obtained in exchange for lease obligations: | |||||
Operating leases | $ | ||||
Weighted Average Remaining Lease Term (in years) | |||||
Operating leases | |||||
Weighted Average Discount Rate | |||||
Operating leases | % |
Operating Leases | |||||
Remainder of 2019 | $ | ||||
2020 | |||||
2021 | |||||
2022 | |||||
2023 | |||||
Thereafter | |||||
Total minimum lease payments | |||||
Less: Amount representing interest | ( | ||||
Total | $ |
Three months ended March 31, | |||||||||||
2019 | 2018 | ||||||||||
Cost of revenue | |||||||||||
Subscription and support | $ | $ | |||||||||
Professional services | |||||||||||
Operating expenses | |||||||||||
Research and development | |||||||||||
Sales and marketing | |||||||||||
General and administrative | |||||||||||
Total | $ | $ |
Options | Weighted- Average Exercise Price | Weighted- Average Remaining Contractual Term (Years) | Aggregate Intrinsic Value | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Outstanding at December 31, 2018 | $ | $ | |||||||||||||||||||||
Granted | |||||||||||||||||||||||
Forfeited | ( | ||||||||||||||||||||||
Exercised | ( | ||||||||||||||||||||||
Outstanding at March 31, 2019 | $ | $ | |||||||||||||||||||||
Exercisable at March 31, 2019 | $ | $ |
Number of Shares | Weighted- Average Grant Date Fair Value | ||||||||||
Unvested at December 31, 2018 | $ | ||||||||||
Granted | |||||||||||
Forfeited | ( | ||||||||||
Vested(1) | ( | ||||||||||
Unvested at March 31, 2019 | $ |
Three months ended March 31, | |||||||||||
2019 | 2018 | ||||||||||
Expected term (in years) | |||||||||||
Risk-free interest rate | |||||||||||
Expected volatility |
Three months ended March 31, | |||||||||||
2019 | 2018 | ||||||||||
Information technology | $ | $ | |||||||||
Consumer discretionary | |||||||||||
Industrials | |||||||||||
Diversified financials | |||||||||||
Banks | |||||||||||
Healthcare | |||||||||||
Energy | |||||||||||
Other | |||||||||||
Total revenues | $ | $ |
Three months ended March 31, | |||||||||||
2019 | 2018 | ||||||||||
Subscription and support | $ | $ | |||||||||
XBRL professional services | |||||||||||
Other services | |||||||||||
Total revenues | $ | $ |
Three months ended | |||||||||||||||||||||||
March 31, 2019 | March 31, 2018 | ||||||||||||||||||||||
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, 2019 | March 31, 2018 | ||||||||||
Shares subject to outstanding common stock options | |||||||||||
Shares subject to unvested restricted stock units | |||||||||||
Shares issuable pursuant to the ESPP |
Three months ended March 31, | |||||||||||
2019 | 2018 | ||||||||||
(dollars in thousands) | |||||||||||
Financial metrics | |||||||||||
Total revenue | $ | 69,963 | $ | 59,906 | |||||||
Percentage increase in total revenue | 16.8 | % | 15.4 | % | |||||||
Subscription and support revenue | $ | 56,123 | $ | 46,470 | |||||||
Percentage increase in subscription and support revenue | 20.8 | % | 17.5 | % | |||||||
Subscription and support as a percent of total revenue | 80.2 | % | 77.6 | % |
As of March 31, | |||||||||||
2019 | 2018 | ||||||||||
Operating metrics | |||||||||||
Number of customers | 3,366 | 3,119 | |||||||||
Subscription and support revenue retention rate | 95.7% | 95.7% | |||||||||
Subscription and support revenue retention rate including add-ons | 110.7% | 105.3% | |||||||||
Number of customers with annual contract value $100k+ | 493 | 335 | |||||||||
Number of customers with annual contract value $150k+ | 207 | 151 |
Three months ended March 31, | |||||||||||
2019 | 2018 | ||||||||||
(in thousands) | |||||||||||
Revenue | |||||||||||
Subscription and support | $ | 56,123 | $ | 46,470 | |||||||
Professional services | 13,840 | 13,436 | |||||||||
Total revenue | 69,963 | 59,906 | |||||||||
Cost of revenue | |||||||||||
Subscription and support(1) | 9,809 | 8,802 | |||||||||
Professional services(1) | 9,727 | 7,709 | |||||||||
Total cost of revenue | 19,536 | 16,511 | |||||||||
Gross profit | 50,427 | 43,395 | |||||||||
Operating expenses | |||||||||||
Research and development(1) | 22,011 | 20,127 | |||||||||
Sales and marketing(1) | 25,365 | 21,006 | |||||||||
General and administrative(1) | 10,383 | 11,768 | |||||||||
Total operating expenses | 57,759 | 52,901 | |||||||||
Loss from operations | (7,332) | (9,506) | |||||||||
Interest expense | (440) | (450) | |||||||||
Other income, net | 320 | 343 | |||||||||
Loss before provision for income taxes | (7,452) | (9,613) | |||||||||
Provision for income taxes | 11 | 5 | |||||||||
Net loss | $ | (7,463) | $ | (9,618) |
Three months ended March 31, | |||||||||||
2019 | 2018 | ||||||||||
(in thousands) | |||||||||||
Cost of revenue | |||||||||||
Subscription and support | $ | 357 | $ | 171 | |||||||
Professional services | 409 | 150 | |||||||||
Operating expenses | |||||||||||
Research and development | 1,900 | 1,021 | |||||||||
Sales and marketing | 1,964 | 1,113 | |||||||||
General and administrative | 3,563 | 3,450 | |||||||||
Total stock-based compensation expense | $ | 8,193 | $ | 5,905 |
Three months ended March 31, | |||||||||||
2019 | 2018 | ||||||||||
Revenue | |||||||||||
Subscription and support | 80.2 | % | 77.6 | % | |||||||
Professional services | 19.8 | 22.4 | |||||||||
Total revenue | 100.0 | 100.0 | |||||||||
Cost of revenue | |||||||||||
Subscription and support | 14.0 | 14.7 | |||||||||
Professional services | 13.9 | 12.9 | |||||||||
Total cost of revenue | 27.9 | 27.6 | |||||||||
Gross profit | 72.1 | 72.4 | |||||||||
Operating expenses | |||||||||||
Research and development | 31.5 | 33.6 | |||||||||
Sales and marketing | 36.3 | 35.1 | |||||||||
General and administrative | 14.8 | 19.6 | |||||||||
Total operating expenses | 82.6 | 88.3 | |||||||||
Loss from operations | (10.5) | (15.9) | |||||||||
Interest expense | (0.6) | (0.8) | |||||||||
Other income, net | 0.5 | 0.6 | |||||||||
Loss before provision for income taxes | (10.6) | (16.1) | |||||||||
Provision for income taxes | — | — | |||||||||
Net loss | (10.6) | % | (16.1) | % |
Three months ended March 31, | |||||||||||||||||
2019 | 2018 | % Change | |||||||||||||||
(dollars in thousands) | |||||||||||||||||
Revenue | |||||||||||||||||
Subscription and support | $ | 56,123 | $ | 46,470 | 20.8% | ||||||||||||
Professional services | $ | 13,840 | $ | 13,436 | 3.0% | ||||||||||||
Total revenue | $ | 69,963 | $ | 59,906 | 16.8% |
Three months ended March 31, | |||||||||||||||||
2019 | 2018 | % Change | |||||||||||||||
(dollars in thousands) | |||||||||||||||||
Cost of revenue | |||||||||||||||||
Subscription and support | $ | 9,809 | $ | 8,802 | 11.4% | ||||||||||||
Professional services | 9,727 | 7,709 | 26.2% | ||||||||||||||
Total cost of revenue | $ | 19,536 | $ | 16,511 | 18.3% |
Three months ended March 31, | |||||||||||||||||
2019 | 2018 | % Change | |||||||||||||||
(dollars in thousands) | |||||||||||||||||
Operating expenses | |||||||||||||||||
Research and development | $ | 22,011 | $ | 20,127 | 9.4% | ||||||||||||
Sales and marketing | 25,365 | 21,006 | 20.8% | ||||||||||||||
General and administrative | 10,383 | 11,768 | (11.8)% | ||||||||||||||
Total operating expenses | $ | 57,759 | $ | 52,901 | 9.2% |
Three months ended March 31, | |||||||||||
2019 | 2018 | ||||||||||
(dollars in thousands) | |||||||||||
Interest expense | $ | (440) | $ | (450) | |||||||
Other income, net | 320 | 343 |
Three months ended March 31, | |||||||||||
2019 | 2018 | ||||||||||
(in thousands) | |||||||||||
Cash flow provided by operating activities | $ | 5,119 | $ | 1,783 | |||||||
Cash flow (used in) provided by investing activities | (16,592) | 427 | |||||||||
Cash flow provided by financing activities | 12,520 | 2,805 | |||||||||
Net increase in cash and cash equivalents, net of impact of exchange rates | $ | 1,152 | $ | 4,923 |
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 2019 | 6,704 | $ | 38.22 | — | — | |||||||||||||||||||||
February 2019 | 3,194 | 41.86 | — | — | ||||||||||||||||||||||
March 2019 | — | — | — | — | ||||||||||||||||||||||
Total | 9,898 | $ | 39.39 | — | — |
Exhibit Number | Description | |||||||
31.1 | ||||||||
31.2 | ||||||||
32.1 | ||||||||
32.2 | ||||||||
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. | |||||||
WORKIVA INC. | |||||
By: | /s/ Martin J. Vanderploeg, Ph.D. | ||||
Name: | Martin J. Vanderploeg, Ph.D. | ||||
Title: | President and Chief Executive Officer | ||||
By: | /s/ J. Stuart Miller | ||||
Name: | J. Stuart Miller | ||||
Title: | Executive Vice President and Chief Financial Officer | ||||
By: | /s/ Jill Klindt | ||||
Name: | Jill Klindt | ||||
Title: | Senior Vice President, Treasurer and Chief Accounting Officer | ||||
May 1, 2019 | /s/ Martin J. Vanderploeg, Ph.D. Martin J. Vanderploeg, Ph.D. President and Chief Executive Officer (Principal Executive Officer) |
May 1, 2019 | /s/ J. Stuart Miller J. Stuart Miller Executive Vice President and Chief Financial Officer (Principal Financial Officer) |
May 1, 2019 | /s/ Martin J. Vanderploeg, Ph.D. Martin J. Vanderploeg, Ph.D. President and Chief Executive Officer (Principal Executive Officer) |
May 1, 2019 | /s/ J. Stuart Miller J. Stuart Miller Executive Vice President and Chief Financial Officer (Principal Financial Officer) |
Document and Entity Information - shares |
3 Months Ended | |
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Mar. 31, 2019 |
Apr. 29, 2019 |
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Entity Information [Line Items] | ||
Entity Registrant Name | WORKIVA INC | |
Entity Central Index Key | 0001445305 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Amendment Flag | false | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Class A Common Stock | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 35,733,931 | |
Class B Common Stock | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 9,425,596 |
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands |
Mar. 31, 2019 |
Dec. 31, 2018 |
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Allowance for doubtful accounts | $ 769 | $ 956 |
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, share authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 35,695,049 | 34,498,391 |
Common stock, shares outstanding | 35,695,049 | 34,498,391 |
Class B Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, share authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 9,425,596 | 9,545,596 |
Common stock, shares outstanding | 9,425,596 | 9,545,596 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands |
3 Months Ended | |
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Mar. 31, 2019 |
Mar. 31, 2018 |
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Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (7,463) | $ (9,618) |
Other comprehensive income (loss), net of tax | ||
Foreign currency translation adjustment, net of income tax benefit (expense) of ($3) and $0 for the three months ended March 31, 2019 and 2018, respectively | 9 | (11) |
Unrealized gain (loss) on available-for-sale securities, net of income tax benefit (expense) of ($15) and $0 for the three months ended March 31, 2019 and 2018, respectively | 43 | (45) |
Other comprehensive income (loss), net of tax | 52 | (56) |
Comprehensive loss | $ (7,411) | $ (9,674) |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | |
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Mar. 31, 2019 |
Mar. 31, 2018 |
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Statement of Comprehensive Income [Abstract] | ||
Foreign currency translation adjustment, tax (expense) benefit | $ (3) | $ 0 |
Unrealized gain on available-for-sale securities, tax benefit (expense) | $ (15) | $ 0 |
Organization and Significant Accounting Policies |
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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 (the “Company” or “we” or “us”) is a leading provider of cloud-based solutions for connected data, reporting and compliance. Our platform, Wdesk, is used by thousands of public and private companies, government agencies and higher-education institutions. Wdesk offers controlled collaboration, data linking, data integrations, granular permissions, process management and a full audit trail. We sell to customers in the areas of: finance and accounting; risk and controls; regulatory reporting; financial close, management and performance reporting; and statutory and corporate tax reporting. Our operational headquarters are located in Ames, Iowa, with additional offices located in the United States, Europe, the Asia-Pacific region and Canada. We updated our accounting policies on the use of estimates, impairment of long-lived assets and leases as a result of our adopting Financial Accounting Standards Board (FASB) guidance issued in accounting standards codification (ASC) 842, Leases, under the Accounting Standards Update (ASU) 2016-02 (collectively the new lease standard). Otherwise, there have been no changes to our significant accounting policies described in our Annual Report on Form 10-K for the year ended December 31, 2018, filed with the SEC on February 20, 2019, that have had a material impact on our condensed consolidated financial statements and related notes. 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, 2018 was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. 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, 2019 are not necessarily indicative of the results expected for the full year ending December 31, 2019. Seasonality has affected our revenue, expenses and cash flows from operations. Revenue from professional services has been higher in the first quarter as many of our customers file their Form 10-K in the first calendar quarter. Sales and marketing expense has been higher in the third quarter due to our annual user conference in September. In addition, the timing of the payments of cash bonuses to employees during the first and fourth calendar quarters may result in some seasonality in operating cash flow. The condensed consolidated financial information should be read in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained in this report and the consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2018 filed with the SEC on February 20, 2019. 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. Additionally, certain prior period amounts have been reclassified for consistency with the current year presentation. The reclassification of the prior period amounts were not material to the previously reported consolidated financial statements. Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States 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 allowance for doubtful accounts, the determination of the relative selling prices of our services, the measurement of material rights, health insurance claims incurred but not yet reported, valuation of available-for-sale marketable securities, useful lives of deferred contract costs, intangible assets and property and equipment, income taxes, discount rates used in the valuation of right-of-use assets and lease liabilities, 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. Impairment of Long-Lived Assets Long-lived assets, such as property, equipment, right-of-use assets and software and intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. If circumstances require that a long-lived asset or asset group be tested for possible impairment, we first compare the undiscounted cash flows expected to be generated by that long-lived asset or asset group to its carrying amount. If the carrying amount of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying amount exceeds its fair value. Leases We determine if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use ("ROU") assets, other current liabilities, and operating lease liabilities on our condensed consolidated balance sheets. We currently have no finance leases. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date. Our variable lease payments consist of non-lease services related to the lease. Variable lease payments are excluded from the ROU assets and lease liabilities and are recognized in the period in which the obligation for those payments is incurred. As our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives incurred. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. We have lease agreements with lease and non-lease components. We have elected to account for these lease and non-lease components as a single lease component. We are also electing not to apply the recognition requirements to short-term leases of 12 months or less and instead will recognize lease payments as expense on a straight-line basis over the lease term. In February 2016, the Financial Accounting Standards Board ("FASB") issued guidance codified in ASC 842, Leases, which supersedes the guidance in former ASC 840, Leases, to increase transparency and comparability among organizations by requiring recognition of right-of-use assets and lease liabilities on the balance sheet and disclosure of key information about leasing arrangements (with the exception of short-term leases). In July 2018, the FASB issued an update (ASU 2018-11) to the existing transition guidance that allows entities to recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Effective January 1, 2019, we adopted ASC 842 using this new transition guidance. The comparative information has not been restated and continues to be reported under the accounting standard in effect for those periods. We have elected to use the package of practical expedients, which allows us to not (1) reassess whether any expired or existing contracts are considered or contain leases; (2) reassess the lease classification for any expired or existing leases; and (3) reassess the initial direct costs for any existing leases. We did not elect the hindsight practical expedient, which permits entities to use hindsight in determining the lease term and assessing impairment. Adoption of the new standard had a material impact on our condensed consolidated balance sheets. The most significant impacts related to the recognition of right-of-use assets and lease liabilities for operating leases. The adoption of ASC 842 had no impact on our condensed consolidated statements of operations or total cash flows from operations. The cumulative effect of the changes made to our consolidated January 1, 2019 balance sheet for the adoption of ASC 842 were as follows (in thousands):
New Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which amends the current accounting guidance and requires the measurement of all expected losses based on historical experience, current conditions and reasonable and supportable forecasts. For trade receivables, loans, and other financial instruments, we will be required to use a forward-looking expected loss model that reflects probable losses rather than the incurred loss model for recognizing credit losses. The standard will become effective for interim and annual periods beginning after December 15, 2019, with early adoption permitted. Application of the amendments is through a cumulative-effect adjustment to retained earnings as of the effective date. We plan to adopt this standard on the effective date and are currently evaluating the impact of this new standard on our consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, Intangibles - Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, which clarifies the accounting for implementation costs in cloud computing arrangements. The update will become effective for interim and annual periods beginning after December 15, 2019 and may be adopted either retrospectively or prospectively. Early adoption is permitted. We plan to adopt this standard prospectively. We are currently evaluating the impact that adoption of this ASU will have on our consolidated financial statements and whether or not to early adopt.
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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):
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Cash Equivalents and Marketable Securities |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash Equivalents and Marketable Securities | Cash Equivalents and Marketable Securities At March 31, 2019, marketable securities consisted of the following (in thousands):
At December 31, 2018, 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, 2019, aggregated by investment category and the length of time that individual securities have been in a continuous loss position (in thousands):
We do not believe any of the unrealized losses represented an other-than-temporary impairment based on our evaluation of available evidence, which includes our intent as of March 31, 2019 to hold these investments until the cost basis is recovered.
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Fair Value Measurements |
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Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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: 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. 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, 2019, 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):
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Leases |
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Leases | Leases Operating Leases We lease certain office and residential space under non-cancelable operating leases with various lease terms through June 2043. Leases with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term. Certain office leases include one or more options to renew, with renewal terms that can extend the lease term from 3 to 5 years. The exercise of lease renewal options is at our sole discretion and is generally excluded from the lease term at lease inception. Our leases generally require us to pay a proportionate share of real estate taxes, insurance, common area maintenance, and other operating costs in addition to a base or fixed rent. The components of lease expense were as follows (in thousands):
Other supplemental information related to leases was as follows (dollar amounts in thousands):
As of March 31, 2019, future estimated minimum lease payments under non-cancelable operating leases were as follows (in thousands):
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Commitments and Contingencies |
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Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies 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. We evaluate the development of legal matters on a regular basis and accrue a liability when we believe a loss is probable and the amount can be reasonably estimated. 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, options to purchase Class A common stock and Employee Stock Purchase Plan (“ESPP”) purchase rights. As of March 31, 2019, awards outstanding under the 2009 Plan consisted of stock options, and awards outstanding under the 2014 Plan consisted of stock options and restricted stock units. As of March 31, 2019, 2,521,272 shares of Class A common stock were available for grant under the 2014 Plan. Our ESPP became effective on June 13, 2017. Under the ESPP, eligible employees are granted options to purchase shares of Class A common stock at the lower of 85% of the fair market value of the stock at the time of grant or 85% of the fair market value at the time of exercise. Options to purchase shares are granted twice yearly on or about January 15 and July 15 and are exercisable on or about the succeeding July 14 and January 14, respectively, of each year. As of March 31, 2019, 4,719,674 shares of Class A common stock were available for issuance under the ESPP. No participant may purchase more than $12,500 worth of common stock in a -month offering period. Stock-Based Compensation Expense Stock-based compensation expense was recorded in the following cost and expense categories consistent with the respective employee or service provider’s related cash compensation (in thousands):
Stock Options The following table summarizes the option activity under the Plans for the three months ended March 31, 2019:
Options to purchase Class A common stock generally vest over a - or -year period and are generally granted for a term of years. The total intrinsic value of options exercised during the three months ended March 31, 2019 and 2018 was $34.3 million and $3.6 million, respectively. No options were granted during the three months ended March 31, 2019 and 2018. The total fair value of options vested during the three months ended March 31, 2019 and 2018 was approximately $2.7 million and $4.6 million, respectively. Total unrecognized compensation expense of $6.9 million related to options will be recognized over a weighted-average period of 1.8 years. Restricted Stock Units Restricted stock units granted to employees generally vest over a - or -year period in equal, annual installments or with -year cliff vesting. Restricted stock units granted to non-employee members of our Board of Directors generally have -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, 2019 and 2018 was approximately $4.3 million and $3.0 million, respectively. The following table summarizes the restricted stock unit activity under the Plan for the three months ended March 31, 2019:
(1) As of March 31, 2019, recipients of 222,614 shares had elected to defer settlement of the vested restricted stock units in accordance with our Nonqualified Deferred Compensation Plan resulting in total deferred units of 777,235 as of March 31, 2019. Compensation expense associated with unvested restricted stock units is recognized on a straight-line basis over the vesting period. At March 31, 2019, there was approximately $58.7 million of total unrecognized compensation expense related to restricted stock units, which is expected to be recognized over a weighted-average period of 2.5 years. Employee Stock Purchase Plan The fair value of each share issued under the ESPP is estimated on the date of grant using the Black-Scholes option-pricing model. Expected volatility is based on the historical volatility of our common stock. The expected term represents the period of time the ESPP purchase rights are expected to be outstanding. The expected term for the ESPP purchase rights approximates the offering period. 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 ESPP purchase rights. The fair value of our ESPP purchase rights was estimated assuming no expected dividends and the following weighted-average assumptions:
During the three months ended March 31, 2019, 100,949 shares of common stock were purchased under the ESPP at a weighted-average price of $21.29 per share, resulting in cash proceeds of $2.1 million. Compensation expense associated with ESPP purchase rights is recognized on a straight-line basis over the vesting period. At March 31, 2019, there was approximately $580,000 of total unrecognized compensation expense related to the ESPP, which is expected to be recognized over a weighted-average period of 0.3 years.
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Revenue Recognition |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue Recognition | Revenue Recognition Disaggregation of Revenue The following table presents our revenues disaggregated by industry (in thousands). Certain prior year amounts have been reclassified to conform with current period presentation. These reclassifications have no impact on total revenue.
The following table presents our revenues disaggregated by type of good or service (in thousands):
Deferred Revenue During the three months ended March 31, 2019, we recognized $51.3 million of revenue that was included in the deferred revenue balance at the beginning of the period. Transaction Price Allocated to the Remaining Performance Obligations As of March 31, 2019, revenue of approximately $180.7 million is expected to be recognized from remaining performance obligations for subscription contracts. We expect to recognize approximately $151.3 million of these remaining performance obligations over the next 12 months, with the balance recognized thereafter.
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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, stock related to unvested restricted stock units, and common stock issuable pursuant to the ESPP to the extent dilutive. Basic and diluted net loss per share was the same for each period presented, as the inclusion of all potential common shares outstanding would have been anti-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. 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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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of Presentation | 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, 2018 was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. 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, 2019 are not necessarily indicative of the results expected for the full year ending December 31, 2019. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Principles of Consolidation | All intercompany accounts and transactions have been eliminated in consolidation. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reclassifications | Additionally, certain prior period amounts have been reclassified for consistency with the current year presentation. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Use of Estimates | The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States 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 allowance for doubtful accounts, the determination of the relative selling prices of our services, the measurement of material rights, health insurance claims incurred but not yet reported, valuation of available-for-sale marketable securities, useful lives of deferred contract costs, intangible assets and property and equipment, income taxes, discount rates used in the valuation of right-of-use assets and lease liabilities, 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. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impairment of Long-Lived Assets | Long-lived assets, such as property, equipment, right-of-use assets and software and intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. If circumstances require that a long-lived asset or asset group be tested for possible impairment, we first compare the undiscounted cash flows expected to be generated by that long-lived asset or asset group to its carrying amount. If the carrying amount of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying amount exceeds its fair value. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | We determine if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use ("ROU") assets, other current liabilities, and operating lease liabilities on our condensed consolidated balance sheets. We currently have no finance leases. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date. Our variable lease payments consist of non-lease services related to the lease. Variable lease payments are excluded from the ROU assets and lease liabilities and are recognized in the period in which the obligation for those payments is incurred. As our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives incurred. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. We have lease agreements with lease and non-lease components. We have elected to account for these lease and non-lease components as a single lease component. We are also electing not to apply the recognition requirements to short-term leases of 12 months or less and instead will recognize lease payments as expense on a straight-line basis over the lease term. In February 2016, the Financial Accounting Standards Board ("FASB") issued guidance codified in ASC 842, Leases, which supersedes the guidance in former ASC 840, Leases, to increase transparency and comparability among organizations by requiring recognition of right-of-use assets and lease liabilities on the balance sheet and disclosure of key information about leasing arrangements (with the exception of short-term leases). In July 2018, the FASB issued an update (ASU 2018-11) to the existing transition guidance that allows entities to recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Effective January 1, 2019, we adopted ASC 842 using this new transition guidance. The comparative information has not been restated and continues to be reported under the accounting standard in effect for those periods. We have elected to use the package of practical expedients, which allows us to not (1) reassess whether any expired or existing contracts are considered or contain leases; (2) reassess the lease classification for any expired or existing leases; and (3) reassess the initial direct costs for any existing leases. We did not elect the hindsight practical expedient, which permits entities to use hindsight in determining the lease term and assessing impairment. Adoption of the new standard had a material impact on our condensed consolidated balance sheets. The most significant impacts related to the recognition of right-of-use assets and lease liabilities for operating leases. The adoption of ASC 842 had no impact on our condensed consolidated statements of operations or total cash flows from operations. The cumulative effect of the changes made to our consolidated January 1, 2019 balance sheet for the adoption of ASC 842 were as follows (in thousands):
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New Accounting Pronouncements Not Yet Adopted | In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which amends the current accounting guidance and requires the measurement of all expected losses based on historical experience, current conditions and reasonable and supportable forecasts. For trade receivables, loans, and other financial instruments, we will be required to use a forward-looking expected loss model that reflects probable losses rather than the incurred loss model for recognizing credit losses. The standard will become effective for interim and annual periods beginning after December 15, 2019, with early adoption permitted. Application of the amendments is through a cumulative-effect adjustment to retained earnings as of the effective date. We plan to adopt this standard on the effective date and are currently evaluating the impact of this new standard on our consolidated financial statements.In August 2018, the FASB issued ASU 2018-15, Intangibles - Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, which clarifies the accounting for implementation costs in cloud computing arrangements. The update will become effective for interim and annual periods beginning after December 15, 2019 and may be adopted either retrospectively or prospectively. Early adoption is permitted. We plan to adopt this standard prospectively. We are currently evaluating the impact that adoption of this ASU will have on our consolidated financial statements and whether or not to early adopt. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based Compensation | The fair value of each share issued under the ESPP is estimated on the date of grant using the Black-Scholes option-pricing model. Expected volatility is based on the historical volatility of our common stock. The expected term represents the period of time the ESPP purchase rights are expected to be outstanding. The expected term for the ESPP purchase rights approximates the offering period. 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 ESPP purchase rights. |
Organization and Significant Accounting Policies (Tables) |
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Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The cumulative effect of the changes made to our consolidated January 1, 2019 balance sheet for the adoption of ASC 842 were as follows (in thousands):
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Supplemental Consolidated Balance Sheet and Statement of Operations Information (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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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Cash Equivalents and Marketable Securities (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Marketable Securities | At March 31, 2019, marketable securities consisted of the following (in thousands):
At December 31, 2018, marketable securities consisted of the following (in thousands):
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Schedule of Cash and Cash Equivalents | At March 31, 2019, marketable securities consisted of the following (in thousands):
At December 31, 2018, 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, 2019, 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) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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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Leases (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Lease Expense Components, Supplemental Cash Flow Information and Other Information | The components of lease expense were as follows (in thousands):
Other supplemental information related to leases was as follows (dollar amounts in thousands):
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Summary of Future Estimated Minimum Lease Payments | As of March 31, 2019, future estimated minimum lease payments under non-cancelable operating leases were as follows (in thousands):
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Stock-Based Compensation (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Stock-based Compensation Expense | Stock-based compensation expense 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 Stock-Option Activity | The following table summarizes the option activity under the Plans for the three months ended March 31, 2019:
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Summary of Restricted Stock Units | The following table summarizes the restricted stock unit activity under the Plan for the three months ended March 31, 2019:
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Schedule of Valuation Assumptions, Employee Stock Purchase Plans | The fair value of our ESPP purchase rights was estimated assuming no expected dividends and the following weighted-average assumptions:
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Revenue Recognition (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue | The following table presents our revenues disaggregated by industry (in thousands). Certain prior year amounts have been reclassified to conform with current period presentation. These reclassifications have no impact on total revenue.
The following table presents our revenues disaggregated by type of good or service (in thousands):
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Net Loss Per Share (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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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Organization and Significant Accounting Policies - Accounting Policies (Details) - USD ($) $ in Thousands |
Mar. 31, 2019 |
Jan. 01, 2019 |
Dec. 31, 2018 |
---|---|---|---|
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease right-of-use assets | $ 17,057 | $ 15,694 | $ 0 |
Accrued expenses and other current liabilities | 33,416 | 38,672 | 36,353 |
Other long-term liabilities | 969 | 884 | 6,891 |
Operating lease liabilities, non-current | $ 20,846 | 19,382 | $ 0 |
Accounting Standards Update 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease right-of-use assets | 15,694 | ||
Accrued expenses and other current liabilities | 2,319 | ||
Other long-term liabilities | (6,007) | ||
Operating lease liabilities, non-current | $ 19,382 |
Supplemental Consolidated Balance Sheet and Statement of Operations Information - Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands |
Mar. 31, 2019 |
Jan. 01, 2019 |
Dec. 31, 2018 |
---|---|---|---|
Accrued Liabilities and Other Liabilities [Abstract] | |||
Accrued vacation | $ 7,592 | $ 6,906 | |
Accrued commissions | 3,704 | 7,265 | |
Accrued bonuses | 3,729 | 5,643 | |
Estimated health insurance claims | 1,050 | 1,100 | |
ESPP employee contributions | 1,510 | 2,156 | |
Customer deposits | 7,364 | 7,395 | |
Operating lease liabilities | 2,740 | ||
Accrued other liabilities | 5,727 | 5,888 | |
Accrued expenses and other current liabilities | $ 33,416 | $ 38,672 | $ 36,353 |
Cash Equivalents and Marketable Securities - Continuous Unrealized Loss Position (Details) $ in Thousands |
Mar. 31, 2019
USD ($)
|
---|---|
Fair Value | |
Less than 12 months | $ 4,980 |
12 months or greater | 5,479 |
Unrealized Loss | |
Less than 12 months | (1) |
12 months or greater | (29) |
U.S. treasury debt securities | |
Fair Value | |
Less than 12 months | 0 |
12 months or greater | 0 |
Unrealized Loss | |
Less than 12 months | 0 |
12 months or greater | 0 |
U.S. corporate debt securities | |
Fair Value | |
Less than 12 months | 4,980 |
12 months or greater | 5,479 |
Unrealized Loss | |
Less than 12 months | (1) |
12 months or greater | $ (29) |
Leases (Details) $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2019
USD ($)
| |
Lease, Cost [Abstract] | |
Operating lease cost | $ 925 |
Short-term lease cost | 239 |
Variable lease cost | 203 |
Total lease cost | 1,367 |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flows from operating leases | 960 |
Right-of-use assets obtained in exchange for lease obligations: Operating leases | $ 2,033 |
Weighted Average Remaining Lease Term (in years) - Operating leases | 8 years 2 months 12 days |
Weighted Average Discount Rate - Operating leases | 5.70% |
Operating Lease Liabilities, Payments Due [Abstract] | |
Remainder of 2019 | $ 3,011 |
2020 | 4,193 |
2021 | 4,233 |
2022 | 3,867 |
2023 | 3,536 |
Thereafter | 11,255 |
Total minimum lease payments | 30,095 |
Less: Amount representing interest | (6,509) |
Total | $ 23,586 |
Office | Minimum | |
Lessee, Lease, Description [Line Items] | |
Renewal term | 3 years |
Office | Maximum | |
Lessee, Lease, Description [Line Items] | |
Renewal term | 5 years |
Stock-Based Compensation - Narrative (Details) - USD ($) |
3 Months Ended | |
---|---|---|
Jun. 13, 2017 |
Mar. 31, 2019 |
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Employee Stock Purchase Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock purchase offering period | 6 months | |
Employee Stock Purchase Plan | Class A Common Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares available for grant | 4,719,674 | |
Purchase price of common stock, percentage of fair market value | 85.00% | |
Maximum stock purchase value per employee | $ 12,500 | |
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 | 2,521,272 |
Revenue Recognition - Deferred Revenue and Transaction Price Allocated to the Remaining Performance Obligations (Details) $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2019
USD ($)
| |
Revenue from Contract with Customer [Abstract] | |
Deferred revenue recognized | $ 51.3 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue expected to be recognized | $ 151.3 |
Expected period of recognition | 12 months |
Net Loss Per Share - Earnings Per Share Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Denominator | ||
Weighted-average common shares outstanding - basic and diluted (in shares) | 45,229,279 | 42,858,756 |
Basic and diluted net loss per share (in dollars per share) | $ (0.17) | $ (0.22) |
Class A Common Stock | ||
Numerator | ||
Net loss | $ (5,898) | $ (7,330) |
Denominator | ||
Weighted-average common shares outstanding - basic and diluted (in shares) | 35,746,572 | 32,662,318 |
Basic and diluted net loss per share (in dollars per share) | $ (0.17) | $ (0.22) |
Class B Common Stock | ||
Numerator | ||
Net loss | $ (1,565) | $ (2,288) |
Denominator | ||
Weighted-average common shares outstanding - basic and diluted (in shares) | 9,482,707 | 10,196,438 |
Basic and diluted net loss per share (in dollars per share) | $ (0.17) | $ (0.22) |
Net Loss Per Share - Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
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) | 5,430,220 | 7,807,606 |
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) | 2,700,493 | 1,917,048 |
Shares issuable pursuant to the ESPP | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 92,664 | 107,764 |
Label | Element | Value |
---|---|---|
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 8,381,000 |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 8,381,000 |
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