Property and Equipment

6 Months Ended

Jun. 30, 2017

Property, Plant and Equipment [Abstract]

Property and Equipment

Property and Equipment

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

	June 30, 2017			December 31, 2016
Hosting equipment	$	37,413		$	35,018
Leasehold improvements	28,055			25,396
Capitalized internal-use software	27,938			25,773
Computer equipment and licensed software and patents	15,228			11,879
Furniture and fixtures	9,281			8,014
Construction in progress	8,031			7,993
Total	125,946			114,073
Less: accumulated depreciation and amortization	(64,193		)	(51,342		)
Property and equipment, net	$	61,753		$	62,731

Depreciation expense was $5.1 million and $3.9 million for the three months ended June 30, 2017 and 2016, respectively, and $9.8 million and $7.6 million for the six months ended June 30, 2017 and 2016, respectively.

Amortization expense of capitalized internal-use software totaled $2.1 million and $1.8 million for the three months ended June 30, 2017 and 2016, respectively, and $4.2 million and $3.5 million for the six months ended June 30, 2017 and 2016, respectively. The carrying value of capitalized internal-use software at June 30, 2017 and December 31, 2016 was $15.6 million and $15.4 million, respectively, including $7.1 million and $5.4 million in construction in progress, respectively.