Stockholder's Equity and Stock Based Compensation (Tables)

6 Months Ended

Jun. 30, 2014

Stockholder's Equity and Stock Based Compensation

Summary of stock option activity

	OPTIONS OUTSTANDING
	Shares Available for Grant (in thousands)		Number of Stock Options Outstanding (in thousands)		Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life (Years)	Aggregate Intrinsic Value (in thousands)
Balance as of December 31, 2013	3,486		6,343		$	5.33	7.98	$	201,305
Additional shares authorized	1,962
Granted	(870	)	870		39.04
Exercised			(989	)	3.37
Repurchased	68				25.86
RSUs granted, net of cancellations/forfeitures	(1,068	)
Cancelled/forfeited	250		(250	)	9.19
Balance as of June 30, 2014	3,828		5,974		10.40		7.95	120,792
Exercisable as of June 30, 2014			4,935		5.08		7.66	118,438
Vested and expected to vest as of June 30, 2014			5,861		$	10.52	7.96	$	118,024

Schedule of weighted average grant date fair value of options granted and the total intrinsic value of options exercised

The weighted average grant date fair value of options granted and the total intrinsic value of options exercised were as follows (in thousands, except weighted average grant date fair value):

	Six Months Ended June 30,
	2014		2013
Weighted average grant date fair value	$	20.79	$	4.44
Total intrinsic value of options exercised	$	33,190	$	4,855

Schedule of assumptions used for estimation of fair value of options granted to employees

	Three Months Ended June 30,		Six Months Ended June 30,
	2014	2013	2014	2013
Expected term (in years)	6	6	6	6
Risk-free interest rate	1.90% - 1.97%	0.86% - 1.375%	1.84% - 1.97%	0.86% - 1.375%
Expected volatility	49% - 55%	57% - 58%	49% - 56%	57% - 58%
Expected dividend rate	0%	0%	0%	0%

Summary of Restricted Stock Units RSUs activity

	Number of RSUs (in thousands)		Weighted Average Grant Date Fair Value		Aggregate Intrinsic Value (in thousands)
Balance as of December 31, 2013	582		$	22.57	$	21,579
RSUs Granted	1,136		38.29
RSUs Vested	(137	)	5.88
RSUs Cancelled/Forfeited	(68	)	38.35
Balance as of June 30, 2014	1,513		$	35.19	$	43,988

Schedule of weighted average grant date fair value of RSU granted and the total fair value

The weighted average grant date fair value of RSUs granted and the total intrinsic value of RSUs that vested during the periods presented were as follows (in thousands, except weighted average grant date fair value):

	Six Months Ended June 30,
	2014		2013
Weighted average grant date fair value	$	38.29	$	15.10
Total intrinsic value of vested RSUs	$	4,237	$	6,383

Schedule of assumptions used to value employee stock purchase rights under the Black-Scholes model

The assumptions used to value employee stock purchase rights under the Black-Scholes model during the three and six months ended June 30, 2014 were as follows:

Expected term (in months)	6 - 9
Risk-free interest rate	0.08% - 0.11%
Expected volatility	41% - 42%
Expected dividend rate	0%

Schedule of stock-based compensation expense included in operating results

The stock-based compensation expense included in operating results was allocated as follows (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2014		2013		2014		2013
Cost of subscription and support revenue	$	419	$	114	$	803	$	177
Cost of professional services and other revenue	610		154		1,057		247
Research and development	1,173		937		2,252		1,147
Sales and marketing	2,095		863		3,874		1,093
General and administrative	1,614		548		2,932		953
Total stock-based compensation expense	$	5,911	$	2,616	$	10,918	$	3,617

Schedule of total unrecognized compensation cost related to unvested awards not yet recognized under all equity compensation plans, adjusted for estimate forfeitures

	June 30, 2014
	Unrecognized Expense		Average Expected Recognition Period
	(in thousands)		(in years)
Stock options	$	21,769	2.46
Restricted stock units	36,925		3.37
Employee Stock Purchase Plan	275		0.13
Total unrecognized stock-based compensation expense	$	58,969	3.02