Property and Equipment

9 Months Ended

Sep. 30, 2017

Property, Plant and Equipment [Abstract]

Property and Equipment

Property and Equipment

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

	September 30, 2017			December 31, 2016
Hosting equipment	$	37,423		$	35,018
Capitalized internal-use software	30,449			25,773
Leasehold improvements	28,117			25,396
Computer equipment and licensed software and patents	15,122			11,879
Furniture and fixtures	9,496			8,014
Construction in progress	7,070			7,993
Total	127,677			114,073
Less: accumulated depreciation and amortization	(68,077		)	(51,342		)
Property and equipment, net	$	59,600		$	62,731

Depreciation expense was $5.3 million and $4.1 million for the three months ended September 30, 2017 and 2016, respectively, and $15.1 million and $11.8 million for the nine months ended September 30, 2017 and 2016, respectively.

Amortization expense of capitalized internal-use software was $1.8 million for each of the three months ended September 30, 2017 and 2016, and $6.0 million and $5.2 million for the nine months ended September 30, 2017 and 2016, respectively. The carrying value of capitalized internal-use software at September 30, 2017 and December 31, 2016 was $16.4 million and $15.4 million, respectively, including $6.7 million and $5.4 million in construction in progress, respectively.