Stockholders' Equity and Stock Based Compensation (Tables)

9 Months Ended

Sep. 30, 2015

Stockholders' Equity and Stock Based Compensation

Summary of stock option activity

	Number of Stock Options Outstanding		Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life	Aggregate Intrinsic Value
	(in thousands)				(Years)	(in thousands)
Balance as of December 31, 2014	5,404		$	11.55	7.56	$	120,595
Granted	59		29.17
Exercised	(1,050	)	4.54
Cancelled/forfeited	(320	)	16.93
Balance as of September 30, 2015	4,093		13.18		6.96	71,562
Exercisable as of September 30, 2015	3,429		8.75		6.66	71,085
Vested and expected to vest as of September 30, 2015	4,083		13.20		6.96	$	71,331

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):

	Nine Months Ended September 30,
	2015		2014
Weighted average grant date fair value of options granted	$	29.17	$	20.79
Total intrinsic value of options exercised	$	26,011	$	42,103

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

	Three Months Ended September 30,		Nine Months Ended September 30,
	2015	2014	2015	2014
Expected term (in years)	6	N/A	6	6
Risk-free interest rate	1.87%	N/A	1.70% - 1.87%	1.84% - 1.97%
Expected volatility	45%	N/A	45%	49% - 56%
Expected dividend rate	0%	N/A	0%	0%

Summary of Restricted Stock Units RSUs activity

	Number of RSUs		Weighted Average Grant Date Fair Value		Aggregate Intrinsic Value
	(in thousands)				(in thousands)
Balance as of December 31, 2014	2,360		$	33.30	$	77,207
RSUs Granted	1,564		32.66
RSUs Vested	(475	)	33.53
RSUs Cancelled/Forfeited	(478	)	32.10
Balance as of September 30, 2015	2,971		$	33.12	$	84,422

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

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):

	Nine Months Ended September 30,
	2015		2014
Weighted average grant date fair value of RSUs granted	$	32.66	$	34.89
Total intrinsic value of vested RSUs	$	13,511	$	5,705

Schedule of market performance based compensation restricted stock units (MSU) award activity

	Number of Shares Underlying MSUs		Weighted Average Grant Date Fair Value		Weighted Average Remaining Vesting Period	Aggregate Intrinsic Value
	(in thousands)				(in years)	(in thousands)
Balance as of December 31, 2014	—		$	—	—	$	—
MSUs Granted	240		37.53
MSUs Vested	—		—
MSUs Cancelled/Forfeited	(15	)	37.53
Balance as of September 30, 2015	225		$	37.53	1.38	$	6,389

Schedule of weighted average assumptions used to estimate fair value of market performance based compensation restricted stock units (MSU) awards

	Nine Months Ended
	September 30, 2015
Expected term (in years)	3
Risk-free interest rate	0.99%
Expected volatility	39%
Expected dividend rate	0%

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

	Three Months Ended September 30,		Nine Months Ended September 30,
	2015	2014	2015	2014
Expected term (in months)	6	6	6	6 - 9
Risk-free interest rate	0.24%	0.05% - 0.08%	0.05% - 0.24%	0.05% - 0.11%
Expected volatility	31%	41% - 43%	31% - 43%	41% - 43%
Expected dividend rate	0%	0%	0%	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 September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014
Cost of subscription and support revenue	$	706	$	399	$	1,951	$	1,202
Cost of professional services and other revenue	1,178		699		3,215		1,756
Research and development	1,966		1,364		5,921		3,616
Sales and marketing	3,725		2,145		9,931		6,019
General and administrative	3,092		1,908		8,656		4,840
Total stock-based compensation expense	$	10,667	$	6,515	$	29,674	$	17,433

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

	September 30, 2015
	Unrecognized Expense		Average Expected Recognition Period
	(in thousands)		(in years)
Stock options	$	12,937	1.58
Restricted stock units and market stock units	68,755		2.84
Employee stock purchase plan	619		0.38
Total unrecognized stock-based compensation expense	$	82,311	2.62