Property and Equipment

12 Months Ended

Dec. 31, 2017

Property, Plant and Equipment [Abstract]

Property and Equipment

Property and Equipment

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

	December 31, 2017			December 31, 2016
Hosting equipment	$	37,222		$	35,018
Capitalized internal-use software	31,593			25,773
Leasehold improvements	28,113			25,396
Computer equipment and licensed software and patents	16,316			11,879
Furniture and fixtures	9,581			8,014
Construction in progress	11,220			7,993
Total	134,045			114,073
Less accumulated depreciation and amortization	(74,888		)	(51,342		)
Property and equipment, net	$	59,157		$	62,731

Depreciation expense was $20.3 million, $16.2 million, and $11.2 million for the years ended December 31, 2017, 2016, and 2015, respectively.

Amortization expense of capitalized internal-use software was $7.7 million, $7.4 million, and $6.2 million during the years ended December 31, 2017, 2016, and 2015, respectively. The carrying value of capitalized internal-use software at December 31, 2017 and 2016 was $17.7 million and $15.4 million, respectively, including $8.7 million and $5.4 million in construction in progress, respectively.