Property and Equipment

6 Months Ended

Jun. 30, 2016

Property, Plant and Equipment [Abstract]

Property and Equipment

Note 4. Property and Equipment

Property and equipment, net consists of the following (in thousands):

	June 30, 2016			December 31, 2015
Hosting equipment	$	30,763		$	26,920
Capitalized internal-use software	24,391			22,418
Leasehold improvements	21,123			19,577
Computer equipment and software	9,529			7,682
Furniture and fixtures	6,249			5,739
Construction in progress	4,358			4,157
Total	96,413			86,493
Less: accumulated depreciation and amortization	(40,679		)	(29,953		)
Property and equipment, net	$	55,734		$	56,540

Depreciation expense was $3.9 million and $2.6 million for the three months ended June 30, 2016 and 2015, respectively, and $7.6 million and $4.9 million for the six months ended June 30, 2016 and 2015, respectively.

Amortization expense of capitalized internal-use software totaled $1.8 million and $1.5 million for the three months ended June 30, 2016 and 2015, respectively, and $3.5 million and $3.0 million for the six months ended June 30, 2016 and 2015, respectively. The carrying value of capitalized internal-use software at June 30, 2016 and December 31, 2015 was $14.4 million and $14.1 million, respectively, including $3.0 million and $1.5 million in construction in progress, respectively.