Property and Equipment

3 Months Ended

Mar. 31, 2017

Property, Plant and Equipment [Abstract]

Property and Equipment

Note 3. Property and Equipment

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

	March 31, 2017			December 31, 2016
Hosting equipment	$	36,410		$	35,018
Leasehold improvements	26,727			25,396
Capitalized internal-use software	26,553			25,773
Computer equipment and software	12,766			11,879
Furniture and fixtures	8,752			8,014
Construction in progress	7,168			7,993
Total	118,376			114,073
Less: accumulated depreciation and amortization	(57,534		)	(51,342		)
Property and equipment, net	$	60,842		$	62,731

Depreciation expense was $4.8 million and $3.7 million for the three months ended March 31, 2017 and 2016, respectively.

Amortization expense of capitalized internal-use software totaled $2.1 million and $1.7 million for the three months ended March 31, 2017 and 2016, respectively. The carrying value of capitalized internal-use software at March 31, 2017 and December 31, 2016 was $15.7 million and $15.4 million, respectively, including $6.7 million and $5.4 million in construction in progress, respectively.