Delaware | 20-8881738 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
12181 Bluff Creek Drive, 4th Floor | ||
Los Angeles, CA 90094 | ||
(Address of principal executive offices, including zip code) | ||
Registrant's telephone number, including area code: | ||
(310) 207-0272 |
Large accelerated filer ¨ | Accelerated filer x | |
Non-accelerated filer ¨ (Do not check if a smaller reporting company) | Smaller reporting company ¨ |
Class | Outstanding as of October 24, 2016 | |
Common Stock, $0.00001 par value | 49,039,107 |
Page No. | ||
Part I. | ||
Item 1. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Part II. | ||
Item 1. | ||
Item 1A. | ||
Item 2. | ||
Item 6. | ||
September 30, 2016 | December 31, 2015 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 154,264 | $ | 116,499 | |||
Accounts receivable, net | 152,639 | 218,235 | |||||
Marketable securities | 38,936 | 23,349 | |||||
Prepaid expenses and other current assets | 10,391 | 7,624 | |||||
TOTAL CURRENT ASSETS | 356,230 | 365,707 | |||||
Property and equipment, net | 29,025 | 25,403 | |||||
Internal use software development costs, net | 16,597 | 13,929 | |||||
Goodwill | 65,705 | 65,705 | |||||
Intangible assets, net | 36,470 | 50,783 | |||||
Marketable securities and other assets, non-current | 1,926 | 15,209 | |||||
TOTAL ASSETS | $ | 505,953 | $ | 536,736 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable and accrued expenses | $ | 186,181 | $ | 247,967 | |||
Other current liabilities | 2,622 | 2,196 | |||||
TOTAL CURRENT LIABILITIES | 188,803 | 250,163 | |||||
Deferred tax liability, net | 1,234 | 6,225 | |||||
Other liabilities, non-current | 1,899 | 2,247 | |||||
TOTAL LIABILITIES | 191,936 | 258,635 | |||||
Commitments and contingencies (Note 9) | |||||||
STOCKHOLDERS' EQUITY | |||||||
Preferred stock, $0.00001 par value, 10,000 shares authorized at September 30, 2016 and December 31, 2015; 0 shares issued and outstanding at September 30, 2016 and December 31, 2015 | — | — | |||||
Common stock, $0.00001 par value; 500,000 shares authorized at September 30, 2016 and December 31, 2015; 48,976 and 46,600 shares issued and outstanding at September 30, 2016 and December 31, 2015, respectively | — | — | |||||
Additional paid-in capital (1) | 391,931 | 359,064 | |||||
Accumulated other comprehensive loss | (103) | (15) | |||||
Accumulated deficit (1) | (77,811) | (80,948) | |||||
TOTAL STOCKHOLDERS' EQUITY | 314,017 | 278,101 | |||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 505,953 | $ | 536,736 |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, 2016 | September 30, 2015 | September 30, 2016 | September 30, 2015 | ||||||||||||
Revenue | $ | 65,811 | $ | 64,253 | $ | 205,554 | $ | 154,477 | |||||||
Expenses: | |||||||||||||||
Cost of revenue | 17,798 | 16,556 | 52,121 | 37,126 | |||||||||||
Sales and marketing | 21,635 | 22,817 | 64,879 | 60,027 | |||||||||||
Technology and development | 12,513 | 11,822 | 38,250 | 30,626 | |||||||||||
General and administrative | 16,238 | 18,225 | 53,233 | 50,488 | |||||||||||
Total expenses | 68,184 | 69,420 | 208,483 | 178,267 | |||||||||||
Loss from operations | (2,373 | ) | (5,167 | ) | (2,929 | ) | (23,790 | ) | |||||||
Other (income) expense: | |||||||||||||||
Interest income, net | (134 | ) | (37 | ) | (359 | ) | (14 | ) | |||||||
Other income | (191 | ) | — | (388 | ) | — | |||||||||
Foreign exchange gain, net | (21 | ) | (38 | ) | (338 | ) | (1,381 | ) | |||||||
Total other (income) expense, net | (346 | ) | (75 | ) | (1,085 | ) | (1,395 | ) | |||||||
Loss before income taxes | (2,027 | ) | (5,092 | ) | (1,844 | ) | (22,395 | ) | |||||||
Benefit for income taxes | (5,557 | ) | (2,083 | ) | (4,981 | ) | (2,412 | ) | |||||||
Net income (loss) | $ | 3,530 | $ | (3,009 | ) | $ | 3,137 | $ | (19,983 | ) | |||||
Net income (loss) per share: | |||||||||||||||
Basic | $ | 0.07 | $ | (0.07 | ) | $ | 0.07 | $ | (0.51 | ) | |||||
Diluted | $ | 0.07 | $ | (0.07 | ) | $ | 0.06 | $ | (0.51 | ) | |||||
Weighted-average shares used to compute net income (loss) per share: | |||||||||||||||
Basic | 47,538 | 41,308 | 46,186 | 38,847 | |||||||||||
Diluted | 48,683 | 41,308 | 49,126 | 38,847 |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, 2016 | September 30, 2015 | September 30, 2016 | September 30, 2015 | ||||||||||||
Net income (loss) | $ | 3,530 | $ | (3,009 | ) | $ | 3,137 | $ | (19,983 | ) | |||||
Other comprehensive income (loss): | |||||||||||||||
Unrealized gain (loss) on investments, net of tax | (7 | ) | 3 | 77 | — | ||||||||||
Foreign currency translation adjustments | (54 | ) | 5 | (165 | ) | 35 | |||||||||
Comprehensive income (loss) | $ | 3,469 | $ | (3,001 | ) | $ | 3,049 | $ | (19,948 | ) |
Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Total Stockholders' Equity | ||||||||||||||||||
Shares | Amount | |||||||||||||||||||||
Balance at December 31, 2015 | 46,600 | $ | — | $ | 358,406 | $ | (15 | ) | $ | (80,290 | ) | $ | 278,101 | |||||||||
Cumulative-effect adjustment(1) | — | — | 658 | — | (658 | ) | — | |||||||||||||||
Balance at January 1, 2016 | 46,600 | $ | — | $ | 359,064 | $ | (15 | ) | $ | (80,948 | ) | $ | 278,101 | |||||||||
Exercise of common stock options | 1,931 | — | 13,796 | — | — | 13,796 | ||||||||||||||||
Restricted stock awards, net | 68 | — | — | — | — | — | ||||||||||||||||
Shares withheld related to net share settlement | (341 | ) | — | (4,886 | ) | — | — | (4,886 | ) | |||||||||||||
Issuance of common stock related to RSU vesting | 625 | — | — | — | — | — | ||||||||||||||||
Issuance of common stock related to employee stock purchase plan | 93 | — | 1,137 | — | — | 1,137 | ||||||||||||||||
Stock-based compensation | — | — | 22,820 | — | — | 22,820 | ||||||||||||||||
Foreign exchange translation adjustment | — | — | — | (165 | ) | — | (165 | ) | ||||||||||||||
Unrealized gain on investments, net of tax | — | — | — | 77 | — | 77 | ||||||||||||||||
Net income | — | — | — | — | 3,137 | 3,137 | ||||||||||||||||
Balance at September 30, 2016 | 48,976 | $ | — | $ | 391,931 | $ | (103 | ) | $ | (77,811 | ) | $ | 314,017 |
Nine Months Ended | |||||||
September 30, 2016 | September 30, 2015 | ||||||
OPERATING ACTIVITIES: | |||||||
Net income (loss) | $ | 3,137 | $ | (19,983 | ) | ||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||
Depreciation and amortization | 29,362 | 22,470 | |||||
Stock-based compensation | 22,048 | 22,037 | |||||
Loss on disposal of property and equipment, net | 5 | 29 | |||||
Change in fair value of contingent consideration | — | (136 | ) | ||||
Unrealized foreign currency gains, net | — | (58 | ) | ||||
Deferred income taxes | (4,985 | ) | (2,143 | ) | |||
Changes in operating assets and liabilities, net of effect of business acquisitions: | |||||||
Accounts receivable | 65,583 | (12,300 | ) | ||||
Prepaid expenses and other assets | (3,276 | ) | 996 | ||||
Accounts payable and accrued expenses | (63,141 | ) | 11,568 | ||||
Other liabilities | 78 | (1,295 | ) | ||||
Net cash provided by operating activities | 48,811 | 21,185 | |||||
INVESTING ACTIVITIES: | |||||||
Purchases of property and equipment, net | (11,393 | ) | (7,757 | ) | |||
Capitalized internal use software development costs | (7,526 | ) | (6,058 | ) | |||
Acquisitions, net of cash acquired | (238 | ) | (8,647 | ) | |||
Investments in available-for-sale securities | (22,722 | ) | (29,884 | ) | |||
Maturities of available-for-sale securities | 20,600 | 1,600 | |||||
Change in restricted cash | 257 | 1,100 | |||||
Net cash used by investing activities | (21,022 | ) | (49,646 | ) | |||
FINANCING ACTIVITIES: | |||||||
Proceeds from exercise of stock options | 13,796 | 10,674 | |||||
Proceeds from issuance of common stock under employee stock purchase plan | 1,137 | 759 | |||||
Taxes paid related to net share settlement | (4,886 | ) | — | ||||
Repayment of debt and capital lease obligations | — | (105 | ) | ||||
Net cash provided by financing activities | 10,047 | 11,328 | |||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | (71 | ) | (198 | ) | |||
CHANGE IN CASH AND CASH EQUIVALENTS | 37,765 | (17,331 | ) | ||||
CASH AND CASH EQUIVALENTS--Beginning of period | 116,499 | 97,196 | |||||
CASH AND CASH EQUIVALENTS--End of period | $ | 154,264 | $ | 79,865 | |||
SUPPLEMENTAL DISCLOSURES OF OTHER CASH FLOW INFORMATION: | |||||||
Capitalized assets financed by accounts payable and accrued expenses | $ | 1,754 | $ | 920 | |||
Capitalized stock-based compensation | $ | 772 | $ | 586 | |||
Common stock and options issued for business acquisitions | $ | — | $ | 76,795 |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, 2016 | September 30, 2015 | September 30, 2016 | September 30, 2015 | ||||||||||||
(In thousands, except per share data) | |||||||||||||||
Net income (loss) | $ | 3,530 | $ | (3,009 | ) | $ | 3,137 | $ | (19,983 | ) | |||||
Weighted-average common shares outstanding | 48,935 | 44,028 | 48,273 | 41,190 | |||||||||||
Weighted-average unvested restricted shares | (1,231 | ) | (1,723 | ) | (1,563 | ) | (1,707 | ) | |||||||
Weighted-average escrow shares | (166 | ) | (997 | ) | (524 | ) | (636 | ) | |||||||
Weighted-average common shares outstanding used to compute net income (loss) per share | 47,538 | 41,308 | 46,186 | 38,847 | |||||||||||
Basic net income (loss) per share | $ | 0.07 | $ | (0.07 | ) | $ | 0.07 | $ | (0.51 | ) | |||||
Diluted EPS: | |||||||||||||||
Net income (loss) | $ | 3,530 | $ | (3,009 | ) | $ | 3,137 | $ | (19,983 | ) | |||||
Weighted-average common shares used in basic EPS | 47,538 | 41,308 | 46,186 | 38,847 | |||||||||||
Dilutive effect of weighted-average common stock options | 536 | — | 1,191 | — | |||||||||||
Dilutive effect of weighted-average restricted stock awards | 138 | — | 502 | — | |||||||||||
Dilutive effect of weighted-average restricted stock units | 243 | — | 690 | — | |||||||||||
Dilutive effect of weighted-average ESPP | 58 | — | 34 | — | |||||||||||
Dilutive effect of weighted-average escrow shares | 170 | — | 523 | — | |||||||||||
Dilutive effect of weighted-average contingent shares | — | — | — | — | |||||||||||
Weighted-average shares used to compute diluted net income (loss) per share | 48,683 | 41,308 | 49,126 | 38,847 | |||||||||||
Diluted net income (loss) per share | $ | 0.07 | $ | (0.07 | ) | $ | 0.06 | $ | (0.51 | ) |
Three Months Ended | Nine Months Ended | ||||||||||
September 30, 2016 | September 30, 2015 | September 30, 2016 | September 30, 2015 | ||||||||
(in thousands) | |||||||||||
Options to purchase common stock | — | 2,148 | — | 2,684 | |||||||
Unvested restricted stock awards | — | 373 | — | 564 | |||||||
Unvested restricted stock units | — | 320 | — | 440 | |||||||
ESPP | — | 24 | — | 26 | |||||||
Shares held in escrow | — | 785 | — | 516 | |||||||
Contingent shares | — | 1,919 | — | 1,380 | |||||||
Total shares excluded from net income (loss) per share | — | 5,569 | — | 5,610 |
• | Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. |
• | Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. |
• | Level 3 – Unobservable inputs. |
Total | Fair Value Measurements at Reporting Date Using | ||||||||||||||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||
(in thousands) | |||||||||||||||
Money market funds | $ | 17,321 | $ | 17,321 | $ | — | $ | — | |||||||
Corporate debt securities | $ | 17,075 | $ | 17,075 | $ | — | $ | — | |||||||
U.S. Treasury, government and agency debt securities | $ | 21,861 | $ | 21,861 | $ | — | $ | — |
Total | Fair Value Measurements at Reporting Date Using | ||||||||||||||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||
(in thousands) | |||||||||||||||
Money market funds | $ | 19,257 | $ | 19,257 | $ | — | $ | — | |||||||
Corporate debt securities | $ | 12,786 | $ | 12,786 | $ | — | $ | — | |||||||
U.S. Treasury, government and agency debt securities | $ | 23,946 | $ | 23,946 | $ | — | $ | — |
Three Month Roll Forward | Nine Month Roll Forward | ||||||||||||||
September 30, 2016 | September 30, 2015 | September 30, 2016 | September 30, 2015 | ||||||||||||
(in thousands) | |||||||||||||||
Beginning balance | $ | — | $ | 27,622 | $ | — | $ | 11,448 | |||||||
Increase to contingent consideration liability related to the Chango acquisition | — | — | — | 16,171 | |||||||||||
Change in fair value of contingent consideration liability recorded in general and administrative expense | — | (139 | ) | — | (136 | ) | |||||||||
Ending balance | $ | — | $ | 27,483 | $ | — | $ | 27,483 |
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||
(in thousands) | |||||||||||||||
Available-for-sale — short-term: | |||||||||||||||
U.S. Treasury, government and agency debt securities | $ | 21,851 | $ | 10 | $ | — | $ | 21,861 | |||||||
Corporate debt securities | 17,075 | — | — | 17,075 | |||||||||||
Total | $ | 38,926 | $ | 10 | $ | — | $ | 38,936 | |||||||
Available-for-sale — long-term: | |||||||||||||||
U.S. Treasury, government and agency debt securities | $ | — | $ | — | $ | — | $ | — |
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||
(in thousands) | |||||||||||||||
Available-for-sale — short-term: | |||||||||||||||
U.S. Treasury, government and agency debt securities | $ | 10,485 | $ | — | $ | (22 | ) | $ | 10,463 | ||||||
Corporate debt securities | 12,786 | — | — | 12,786 | |||||||||||
Total | $ | 23,271 | $ | — | $ | (22 | ) | $ | 23,249 | ||||||
Available-for-sale — long-term: | |||||||||||||||
U.S. Treasury, government and agency debt securities | $ | 13,529 | $ | — | $ | (46 | ) | $ | 13,483 |
September 30, 2016 | December 31, 2015 | ||||||
(in thousands) | |||||||
Accounts payable—seller | $ | 167,346 | $ | 228,850 | |||
Accounts payable—trade | 8,288 | 6,962 | |||||
Accrued employee-related payables | 10,547 | 12,155 | |||||
Total | $ | 186,181 | $ | 247,967 |
Three Months Ended | Nine Months Ended | ||||||
September 30, 2015 | September 30, 2015 | ||||||
(in thousands, except per share data) | |||||||
Pro forma revenues | $ | 64,253 | $ | 171,127 | |||
Pro forma net loss | $ | (2,243 | ) | $ | (20,851 | ) | |
Pro forma net loss per share, basic and diluted | $ | (0.05 | ) | $ | (0.50 | ) |
September 30, 2016 | December 31, 2015 | |||||||
(in thousands) | ||||||||
Amortizable intangible assets: | ||||||||
Developed technology | $ | 35,728 | $ | 35,756 | ||||
Customer relationships | 25,330 | 25,330 | ||||||
Non-compete agreements | 4,990 | 4,990 | ||||||
Total identifiable intangible assets, gross | 66,048 | 66,076 | ||||||
Total accumulated amortization—intangible assets | (29,578 | ) | (15,293 | ) | ||||
Total identifiable intangible assets, net | $ | 36,470 | $ | 50,783 |
Fiscal Year | Amount | ||
(in thousands) | |||
2016 | $ | 5,702 | |
2017 | 19,538 | ||
2018 | 8,415 | ||
2019 | 2,815 | ||
2020 and thereafter | — | ||
Total | $ | 36,470 |
Shares Under Option | Weighted- Average Exercise Price | Weighted- Average Contractual Life | Aggregate Intrinsic Value | |||||||||
(in thousands) | (in thousands) | |||||||||||
Outstanding at December 31, 2015 | 6,203 | $ | 9.76 | |||||||||
Granted | 419 | $ | 14.09 | |||||||||
Exercised | (1,931 | ) | $ | 7.14 | ||||||||
Canceled | (607 | ) | $ | 12.05 | ||||||||
Outstanding at September 30, 2016 | 4,084 | $ | 11.10 | 6.93 years | $ | 2,733 | ||||||
Vested and expected to vest | 4,084 | $ | 11.10 | 6.93 years | $ | 2,733 | ||||||
Exercisable at September 30, 2016 | 2,618 | $ | 9.74 | 6.26 years | $ | 2,663 |
Three Months Ended | Nine Months Ended | ||||||||||
September 30, 2016 | September 30, 2015 | September 30, 2016 | September 30, 2015 | ||||||||
Expected term (in years) | 0 | 6.0 | 5.9 | 4.3 | |||||||
Risk-free interest rate | — | % | 1.74 | % | 1.43 | % | 1.26 | % | |||
Expected volatility | — | % | 43 | % | 48 | % | 48 | % | |||
Dividend yield | — | % | — | % | — | % | — | % |
Number of Shares | Weighted-Average Grant Date Fair Value | |||||
(in thousands) | ||||||
Nonvested shares of restricted stock outstanding at December 31, 2015 | 1,479 | $ | 15.58 | |||
Granted | 525 | $ | 12.15 | |||
Canceled | (457 | ) | $ | 14.42 | ||
Vested | (339 | ) | $ | 16.35 | ||
Nonvested shares subject to restricted stock outstanding at September 30, 2016 | 1,208 | $ | 14.31 |
Number of Shares | Weighted-Average Grant Date Fair Value | |||||
(in thousands) | ||||||
Nonvested shares of restricted stock units outstanding at December 31, 2015 | 2,647 | $ | 15.76 | |||
Granted | 2,080 | $ | 13.20 | |||
Canceled | (815 | ) | $ | 14.80 | ||
Vested | (625 | ) | $ | 16.17 | ||
Nonvested shares subject to restricted stock units outstanding at September 30, 2016 | 3,287 | $ | 14.28 |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, 2016 | September 30, 2015 | September 30, 2016 | September 30, 2015 | ||||||||||||
(in thousands) | |||||||||||||||
Cost of revenue | $ | 91 | $ | 65 | $ | 261 | $ | 177 | |||||||
Sales and marketing | 2,054 | 2,197 | 6,711 | 5,180 | |||||||||||
Technology and development | 1,287 | 1,525 | 4,461 | 3,431 | |||||||||||
General and administrative | 3,099 | 5,013 | 10,615 | 13,249 | |||||||||||
Total stock-based compensation expense | $ | 6,531 | $ | 8,800 | $ | 22,048 | $ | 22,037 |
• | our ability to grow rapidly and to manage our growth effectively; |
• | our ability to develop innovative new technologies and remain a market leader; |
• | our ability to attract and retain buyers and sellers and increase our business with them; |
• | our vulnerability to loss of, or reduction in spending by, buyers; |
• | our ability to maintain a supply of advertising inventory from sellers; |
• | the effect on the advertising market and our business from difficult economic conditions; |
• | the freedom of buyers and sellers to direct their spending and inventory to competing sources of inventory and demand; |
• | our ability to use our solution to purchase and sell higher value advertising and to expand the use of our solution by buyers and sellers utilizing evolving digital media platforms; |
• | our ability to introduce new offerings and bring them to market in a timely manner in response to client demands and industry trends, including shifts in digital advertising growth from display to mobile channels; |
• | our ability to implement solutions to improve the advertising experience of consumers; |
• | the increased prevalence of header bidding and its effect on our competitive position in desktop; |
• | our header bidding solution not resulting in revenue growth and causing infrastructure strain and added cost; |
• | uncertainty of our estimates and expectations associated with new offerings, including header bidding, private marketplace, mobile, Orders, automated guaranteed, video, and guaranteed audience solutions; |
• | uncertainty of our estimates and assumptions about the mix of gross and net reported transactions; |
• | declining fees and take rate, including as a result of implementation of alternative pricing models, and the need to grow through advertising spend increases rather than fee increases; |
• | our limited operating history and history of losses; |
• | our ability to continue to expand into new geographic markets; |
• | our ability to adapt effectively to shifts in digital advertising to mobile and video channels; |
• | increased prevalence of ad blocking technologies; |
• | the slowing growth rate of online digital display advertising; |
• | the growing percentage of online and mobile advertising spending captured by owned and operated sites (such as Facebook and Google); |
• | the effects of increased competition in our market and increasing concentration of advertising spending, including mobile spending, in a small number of very large competitors; |
• | acts of competitors and other third parties that can adversely affect our business; |
• | our ability to differentiate our offerings, compete effectively and to maintain our pricing and take rate in a market trending increasingly toward commodification, transparency, and disintermediation; |
• | requests from buyers and sellers for discounts, fee concessions or revisions, rebates, and greater levels of pricing transparency and specificity; |
• | potential adverse effects of malicious activity such as fraudulent inventory and malware; |
• | the effects of seasonal trends on our results of operations; |
• | costs associated with defending intellectual property infringement and other claims; |
• | our ability to attract and retain qualified employees and key personnel; |
• | our ability to identify future acquisitions of or investments in complementary companies or technologies and our ability to consummate the acquisitions and integrate such companies or technologies; |
• | our ability to comply with, and the effect on our business of, evolving legal standards and regulations, particularly concerning data protection and consumer privacy and evolving labor standards; and |
• | our ability to develop and maintain our corporate infrastructure, including our finance, information technology, and data security systems and controls. |
• | a comprehensive range of advertising units, including display, video, and audio; |
• | utilizing various inventory types, including (i) direct sale of premium inventory, which we refer to as Orders, on a guaranteed, or fully reserved, basis, as well as on a non-guaranteed basis and (ii) real-time bidding, or RTB; |
• | across digital channels, including mobile web, mobile application and desktop, as well as across various out-of-home channels, such as digital billboards, that are in the early stages of leveraging our advertising automation platform. |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, 2016 | September 30, 2015 | September 30, 2016 | September 30, 2015 | ||||||||||||
(in thousands) | |||||||||||||||
Revenue | $ | 65,811 | $ | 64,253 | $ | 205,554 | $ | 154,477 | |||||||
Expenses: | |||||||||||||||
Costs of revenue (1) (2) | 17,798 | 16,556 | 52,121 | 37,126 | |||||||||||
Sales and marketing (1) (2) | 21,635 | 22,817 | 64,879 | 60,027 | |||||||||||
Technology and development (1) (2) | 12,513 | 11,822 | 38,250 | 30,626 | |||||||||||
General and administrative (1) (2) | 16,238 | 18,225 | 53,233 | 50,488 | |||||||||||
Total expenses | 68,184 | 69,420 | 208,483 | 178,267 | |||||||||||
Loss from operations | (2,373 | ) | (5,167) | (2,929 | ) | (23,790) | |||||||||
Other income | (346 | ) | (75 | ) | (1,085 | ) | (1,395 | ) | |||||||
Loss before income taxes | (2,027 | ) | (5,092) | (1,844 | ) | (22,395) | |||||||||
Benefit for income taxes | (5,557 | ) | (2,083 | ) | (4,981 | ) | (2,412 | ) | |||||||
Net income (loss) | $ | 3,530 | $ | (3,009 | ) | $ | 3,137 | $ | (19,983 | ) |
(1) | Stock-based compensation expense included in our expenses was as follows: |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, 2016 | September 30, 2015 | September 30, 2016 | September 30, 2015 | ||||||||||||
(in thousands) | |||||||||||||||
Costs of revenue | $ | 91 | $ | 65 | $ | 261 | $ | 177 | |||||||
Sales and marketing | 2,054 | 2,197 | 6,711 | 5,180 | |||||||||||
Technology and development | 1,287 | 1,525 | 4,461 | 3,431 | |||||||||||
General and administrative | 3,099 | 5,013 | 10,615 | 13,249 | |||||||||||
Total stock-based compensation expense | $ | 6,531 | $ | 8,800 | $ | 22,048 | $ | 22,037 |
(2) | Depreciation and amortization expense included in our expenses was as follows: |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, 2016 | September 30, 2015 | September 30, 2016 | September 30, 2015 | ||||||||||||
(in thousands) | |||||||||||||||
Cost of revenue | $ | 7,010 | $ | 5,270 | $ | 19,678 | $ | 13,999 | |||||||
Sales and marketing | 2,736 | 2,286 | 6,298 | 6,031 | |||||||||||
Technology and development | 692 | 526 | 1,896 | 1,259 | |||||||||||
General and administrative | 516 | 539 | 1,490 | 1,181 | |||||||||||
Total depreciation and amortization expense | $ | 10,954 | $ | 8,621 | $ | 29,362 | $ | 22,470 |
Three Months Ended | Nine Months Ended | ||||||||||
September 30, 2016 | September 30, 2015 | September 30, 2016 | September 30, 2015 | ||||||||
Revenue | 100 | % | 100 | % | 100 | % | 100 | % | |||
Cost of revenue | 27 | % | 26 | % | 25 | % | 24 | % | |||
Sales and marketing | 33 | % | 36 | % | 32 | % | 39 | % | |||
Technology and development | 19 | % | 18 | % | 19 | % | 20 | % | |||
General and administrative | 25 | % | 28 | % | 26 | % | 33 | % | |||
Total expenses | 104 | % | 108 | % | 101 | % | 115 | % | |||
Loss from operations | (4 | )% | (8 | )% | (1 | )% | (15 | )% | |||
Other (income) expense, net | (1 | )% | — | % | (1 | )% | (1 | )% | |||
Loss before income taxes | (3 | )% | (8 | )% | (1 | )% | (14 | )% | |||
Benefit for income taxes | (8 | )% | (3 | )% | (2 | )% | (2 | )% | |||
Net income (loss) | 5 | % | (5 | )% | 2 | % | (13 | )% |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, 2016 | September 30, 2015 | September 30, 2016 | September 30, 2015 | ||||||||||||
(in thousands) | |||||||||||||||
Revenue | $ | 65,811 | $ | 64,253 | $ | 205,554 | $ | 154,477 |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, 2016 | September 30, 2015 | September 30, 2016 | September 30, 2015 | ||||||||||||
(in thousands, except percentages) | |||||||||||||||
Costs of revenue | $ | 17,798 | $ | 16,556 | $ | 52,121 | $ | 37,126 | |||||||
Percent of revenue | 27 | % | 26 | % | 25 | % | 24 | % |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, 2016 | September 30, 2015 | September 30, 2016 | September 30, 2015 | ||||||||||||
(in thousands, except percentages) | |||||||||||||||
Sales and marketing | $ | 21,635 | $ | 22,817 | $ | 64,879 | $ | 60,027 | |||||||
Percent of revenue | 33 | % | 36 | % | 32 | % | 39 | % |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, 2016 | September 30, 2015 | September 30, 2016 | September 30, 2015 | ||||||||||||
(in thousands, except percentages) | |||||||||||||||
Technology and development | $ | 12,513 | $ | 11,822 | $ | 38,250 | $ | 30,626 | |||||||
Percent of revenue | 19 | % | 18 | % | 19 | % | 20 | % |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, 2016 | September 30, 2015 | September 30, 2016 | September 30, 2015 | ||||||||||||
(in thousands, except percentages) | |||||||||||||||
General and administrative | $ | 16,238 | $ | 18,225 | $ | 53,233 | $ | 50,488 | |||||||
Percent of revenue | 25 | % | 28 | % | 26 | % | 33 | % |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, 2016 | September 30, 2015 | September 30, 2016 | September 30, 2015 | ||||||||||||
(in thousands) | |||||||||||||||
Interest income, net | $ | (134 | ) | $ | (37 | ) | $ | (359 | ) | $ | (14 | ) | |||
Other income | (191 | ) | — | (388 | ) | — | |||||||||
Foreign exchange gain, net | (21 | ) | (38 | ) | (338 | ) | (1,381 | ) | |||||||
Total other income, net | $ | (346 | ) | $ | (75 | ) | $ | (1,085 | ) | $ | (1,395 | ) |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, 2016 | September 30, 2015 | September 30, 2016 | September 30, 2015 | ||||||||||||
Financial and non-GAAP Financial Measures: | |||||||||||||||
Revenue (in thousands) | $ | 65,811 | $ | 64,253 | $ | 205,554 | $ | 154,477 | |||||||
Advertising spend (in thousands) | $ | 242,802 | $ | 244,358 | $ | 748,712 | $ | 668,730 | |||||||
Non-GAAP net revenue (in thousands) | $ | 60,563 | $ | 57,867 | $ | 189,231 | $ | 143,589 | |||||||
Net income (loss) (in thousands) | $ | 3,530 | $ | (3,009 | ) | $ | 3,137 | $ | (19,983 | ) | |||||
Adjusted EBITDA (in thousands) | $ | 15,306 | $ | 12,575 | $ | 49,203 | $ | 23,434 | |||||||
Operational Measure: | |||||||||||||||
Take Rate | 24.9 | % | 23.7 | % | 25.3 | % | 21.5 | % |
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, 2016 | September 30, 2015 | September 30, 2016 | September 30, 2015 | |||||||||||||
(in thousands) | ||||||||||||||||
Revenue | $ | 65,811 | $ | 64,253 | $ | 205,554 | $ | 154,477 | ||||||||
Plus amounts paid to sellers(1) | 176,991 | 180,105 | 543,158 | 514,253 | ||||||||||||
Advertising spend | $ | 242,802 | $ | 244,358 | $ | 748,712 | $ | 668,730 |
(1) | Amounts paid to sellers for the portion of our revenue reported on a net basis for GAAP purposes. |
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, 2016 | September 30, 2015 | September 30, 2016 | September 30, 2015 | |||||||||||||
(in thousands) | ||||||||||||||||
Advertising spend by inventory type: | ||||||||||||||||
RTB | $ | 182,288 | $ | 187,689 | $ | 569,919 | $ | 507,693 | ||||||||
Orders | 55,058 | 38,704 | 151,052 | 107,064 | ||||||||||||
Static bidding(1) | 5,456 | 17,965 | 27,741 | 53,973 | ||||||||||||
Total advertising spend | $ | 242,802 | $ | 244,358 | $ | 748,712 | $ | 668,730 | ||||||||
Advertising spend by channel: | ||||||||||||||||
Desktop | $ | 159,460 | $ | 180,741 | $ | 506,579 | $ | 515,473 | ||||||||
Mobile | 83,342 | 63,617 | 242,133 | 153,257 | ||||||||||||
Total advertising spend | $ | 242,802 | $ | 244,358 | $ | 748,712 | $ | 668,730 |
Three Months Ended | Nine Months Ended | |||||||||||
September 30, 2016 | September 30, 2015 | September 30, 2016 | September 30, 2015 | |||||||||
Advertising spend by inventory type: | ||||||||||||
RTB | 75 | % | 77 | % | 76 | % | 76 | % | ||||
Orders | 23 | % | 16 | % | 20 | % | 16 | % | ||||
Static bidding(1) | 2 | % | 7 | % | 4 | % | 8 | % | ||||
Total advertising spend | 100 | % | 100 | % | 100 | % | 100 | % | ||||
Advertising spend by channel: | ||||||||||||
Desktop | 66 | % | 74 | % | 68 | % | 77 | % | ||||
Mobile | 34 | % | 26 | % | 32 | % | 23 | % | ||||
Total advertising spend | 100 | % | 100 | % | 100 | % | 100 | % |
(1) | During the third quarter of 2016, we decided to terminate our offering related to static bidding as it represented an immaterial amount of our advertising spend due to shifts in market spending from static bidding to RTB. The decision to end the static bidding offering enables us to reallocate resources to focus on mobile, video, and Orders growth initiatives. No material impact is expected on our future results of operations as static bidding was expected to further decrease as compared to RTB and Orders. |
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, 2016 | September 30, 2015 | September 30, 2016 | September 30, 2015 | |||||||||||||
(in thousands) | ||||||||||||||||
Revenue | $ | 65,811 | $ | 64,253 | $ | 205,554 | $ | 154,477 | ||||||||
Less amounts paid to sellers | 5,248 | 6,386 | 16,323 | 10,888 | ||||||||||||
Non-GAAP net revenue | $ | 60,563 | $ | 57,867 | $ | 189,231 | $ | 143,589 |
• | Adjusted EBITDA is widely used by investors and securities analysts to measure a company's performance without regard to items such as those we exclude in calculating this measure, which can vary substantially from company to company depending upon their financing, capital structures, and the method by which assets were acquired; |
• | our management uses Adjusted EBITDA in conjunction with GAAP financial measures for planning purposes, including the preparation of our annual operating budget, as a measure of performance and the effectiveness of our business strategies, and in communications with our board of directors concerning our performance, and Adjusted EBITDA is also used as a metric for determining payment of cash incentive compensation; and |
• | Adjusted EBITDA provides a measure of consistency and comparability with our past performance that many investors find useful, facilitates period-to-period comparisons of operations, and also facilitates comparisons with other peer companies, many of which use similar non-GAAP financial measures to supplement their GAAP results. |
• | stock-based compensation is a non-cash charge and is and will remain an element of our long-term incentive compensation package, although we exclude it as an expense when evaluating our ongoing operating performance for a particular period; |
• | depreciation and amortization are non-cash charges, and the assets being depreciated or amortized will often have to be replaced in the future, but Adjusted EBITDA does not reflect any cash requirements for these replacements; |
• | Adjusted EBITDA does not reflect non-cash charges related to acquisition and related items, such as amortization of acquired intangible assets and changes in the fair value of contingent consideration; |
• | Adjusted EBITDA does not reflect cash and non-cash charges and changes in, or cash requirements for, acquisition and related items, such as certain transaction expenses and expenses associated with earn-out amounts; |
• | Adjusted EBITDA does not reflect changes in our working capital needs, capital expenditures, or contractual commitments; |
• | Adjusted EBITDA does not reflect cash requirements for income taxes and the cash impact of other income or expense; and |
• | other companies may calculate Adjusted EBITDA differently than we do, limiting its usefulness as a comparative measure. |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, 2016 | September 30, 2015 | September 30, 2016 | September 30, 2015 | ||||||||||||
(in thousands) | |||||||||||||||
Net income (loss) | $ | 3,530 | $ | (3,009 | ) | $ | 3,137 | $ | (19,983 | ) | |||||
Add back (deduct): | |||||||||||||||
Depreciation and amortization expense, excluding amortization of acquired intangible assets | 5,259 | 3,832 | 15,018 | 11,397 | |||||||||||
Amortization of acquired intangibles | 5,695 | 4,789 | 14,344 | 11,073 | |||||||||||
Stock-based compensation expense | 6,531 | 8,800 | 22,048 | 22,037 | |||||||||||
Acquisition and related items | 3 | 321 | 334 | 2,717 | |||||||||||
Interest (income) expense, net | (134 | ) | (37 | ) | (359 | ) | (14 | ) | |||||||
Foreign currency (gain) loss, net | (21 | ) | (38 | ) | (338 | ) | (1,381 | ) | |||||||
Benefit for income taxes | (5,557 | ) | (2,083 | ) | (4,981 | ) | (2,412 | ) | |||||||
Adjusted EBITDA | $ | 15,306 | $ | 12,575 | $ | 49,203 | $ | 23,434 |
Nine Months Ended | |||||||
September 30, 2016 | September 30, 2015 | ||||||
(in thousands) | |||||||
Cash flows provided by operating activities | $ | 48,811 | $ | 21,185 | |||
Cash flows used in investing activities | (21,022 | ) | (49,646 | ) | |||
Cash flows provided by financing activities | 10,047 | 11,328 | |||||
Effects of exchange rate changes on cash and cash equivalents | (71 | ) | (198 | ) | |||
Change in cash and cash equivalents | $ | 37,765 | $ | (17,331 | ) |
THE RUBICON PROJECT, INC. (Registrant) | |
/s/ David Day | |
David Day | |
Chief Financial Officer and Chief Accounting Officer (Principal Financial Officer and Principal Accounting Officer) |
Number | Description | |
3.1 | Sixth Amended and Restated Certificate of Incorporation of the Registrant (incorporated by reference to Exhibit 3.1 to the Registrant's Quarterly Report on Form 10-Q filed with the Commission on May 15, 2014). | |
3.2 | Amended and Restated Bylaws the Registrant (incorporated by reference to Exhibit 3.1 to the Registrant's Current Report on Form 8-K filed with the Commission on April 8, 2016). | |
31.1* | Certification of Principal Executive Officer Pursuant To Exchange Act Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
31.2* | Certification of Principal Financial Officer Pursuant To Exchange Act Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
32.1*(1) | Certification of the Principal Executive Officer and Principal Financial Officer Pursuant To 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
101.ins* | XBRL Instance Document | |
101.sch* | XBRL Taxonomy Schema Linkbase Document | |
101.cal* | XBRL Taxonomy Calculation Linkbase Document | |
101.def* | XBRL Taxonomy Definition Linkbase Document | |
101.lab* | XBRL Taxonomy Label Linkbase Document | |
101.pre* | XBRL Taxonomy Presentation Linkbase Document |
* | Filed herewith |
1. | I have reviewed this Quarterly Report on Form 10-Q of The Rubicon Project, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Signature: | /s/ Frank Addante | |
Frank Addante Chief Executive Officer and Chairman of the Board (Principal Executive Officer) |
1. | I have reviewed this Quarterly Report on Form 10-Q of The Rubicon Project, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Signature: | /s/ David Day | |
David Day Chief Financial Officer and Chief Accounting Officer (Principal Financial Officer) |
/s/ Frank Addante | |
Frank Addante Chief Executive Officer and Chairman of the Board (Principal Executive Officer) |
/s/ David Day | |
David Day Chief Financial Officer and Chief Accounting Officer (Principal Financial Officer) |
Document and Entity Information - shares |
9 Months Ended | |
---|---|---|
Sep. 30, 2016 |
Oct. 24, 2016 |
|
Document and Entity Information [Abstract] | ||
Entity Registrant Name | RUBICON PROJECT, INC. | |
Entity Central Index Key | 0001595974 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2016 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2016 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 49,039,107 |
Consolidated Balance Sheets (Parenthetical) - $ / shares |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Common stock, par or stated value per share | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares, issued | 48,976,000 | 46,600,000 |
Common stock, shares, outstanding | 48,976,000 | 46,600,000 |
Preferred Stock | ||
Preferred stock, par or stated value per share | $ 0.00001 | $ 0.00001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Income Statement [Abstract] | ||||
Revenue | $ 65,811 | $ 64,253 | $ 205,554 | $ 154,477 |
Expenses: | ||||
Cost of revenue | 17,798 | 16,556 | 52,121 | 37,126 |
Sales and marketing | 21,635 | 22,817 | 64,879 | 60,027 |
Technology and development | 12,513 | 11,822 | 38,250 | 30,626 |
General and administrative | 16,238 | 18,225 | 53,233 | 50,488 |
Total expenses | 68,184 | 69,420 | 208,483 | 178,267 |
Loss from operations | (2,373) | (5,167) | (2,929) | (23,790) |
Other (income) expense: | ||||
Interest income, net | (134) | (37) | (359) | (14) |
Other income | (191) | 0 | (388) | 0 |
Foreign exchange gain, net | (21) | (38) | (338) | (1,381) |
Total other (income) expense, net | (346) | (75) | (1,085) | (1,395) |
Loss before income taxes | (2,027) | (5,092) | (1,844) | (22,395) |
Benefit for income taxes | (5,557) | (2,083) | (4,981) | (2,412) |
Net income (loss) | $ 3,530 | $ (3,009) | $ 3,137 | $ (19,983) |
Basic net income (loss) per share (usd per share) | $ 0.07 | $ (0.07) | $ 0.07 | $ (0.51) |
Diluted net income (loss) per share (usd per share) | $ 0.07 | $ (0.07) | $ 0.06 | $ (0.51) |
Weighted-average shares used to compute basic income (loss) per share (in shares) | 47,538 | 41,308 | 46,186 | 38,847 |
Weighted-average shares used to compute diluted net income (loss) per share (in shares) | 48,683 | 41,308 | 49,126 | 38,847 |
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 3,530 | $ (3,009) | $ 3,137 | $ (19,983) |
Other comprehensive income (loss): | ||||
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax | (7) | 3 | 77 | 0 |
Foreign currency translation adjustments | (54) | 5 | (165) | 35 |
Comprehensive income (loss) | $ 3,469 | $ (3,001) | $ 3,049 | $ (19,948) |
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands |
Total |
Common Stock |
Additional Paid-In Capital |
Accumulated Other Comprehensive Income (Loss) |
Accumulated Deficit |
New Accounting Pronouncement, Early Adoption, Effect |
New Accounting Pronouncement, Early Adoption, Effect
Additional Paid-In Capital
|
New Accounting Pronouncement, Early Adoption, Effect
Accumulated Deficit
|
---|---|---|---|---|---|---|---|---|
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Cumulative-effect adjustment | Accounting Standards Update 2016-09 | $ 0 | $ 658 | $ (658) | |||||
Beginning Balance (in shares) at Dec. 31, 2015 | 46,600 | 46,600 | ||||||
Beginning Balance at Dec. 31, 2015 | $ 278,101 | $ 0 | $ 359,064 | $ (15) | $ (80,948) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Exercise of common stock options (in shares) | 1,931 | |||||||
Exercise of common stock options | 13,796 | 13,796 | ||||||
Restricted stock awards, net (in shares) | 68 | |||||||
Shares withheld related to net share settlement (in shares) | (341) | |||||||
Shares withheld related to net share settlement | (4,886) | (4,886) | ||||||
Issuance of common stock related to RSU vesting (in shares) | 625 | |||||||
Issuance of common stock related to employee stock purchase plan (in shares) | 93 | |||||||
Issuance of common stock related to employee stock purchase plan | 1,137 | 1,137 | ||||||
Stock-based compensation | 22,820 | 22,820 | ||||||
Foreign exchange translation adjustment | (165) | (165) | ||||||
Accumulated Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax | 77 | 77 | ||||||
Net income (loss) | $ 3,137 | 3,137 | ||||||
Ending Balance (in shares) at Sep. 30, 2016 | 48,976 | 48,976 | ||||||
Ending Balance at Sep. 30, 2016 | $ 314,017 | $ 0 | $ 391,931 | $ (103) | $ (77,811) |
Consolidated Statement of Cash Flows - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
|
OPERATING ACTIVITIES: | ||
Net income (loss) | $ 3,137 | $ (19,983) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 29,362 | 22,470 |
Stock-based compensation | 22,048 | 22,037 |
Loss on disposal of property and equipment, net | 5 | 29 |
Change in fair value of contingent consideration | 0 | (136) |
Unrealized foreign currency gains, net | 0 | (58) |
Deferred income taxes | (4,985) | (2,143) |
Changes in operating assets and liabilities, net of effect of business acquisitions: | ||
Accounts receivable | 65,583 | (12,300) |
Prepaid expenses and other assets | (3,276) | 996 |
Accounts payable and accrued expenses | (63,141) | 11,568 |
Other liabilities | 78 | (1,295) |
Net cash provided by operating activities | 48,811 | 21,185 |
INVESTING ACTIVITIES: | ||
Purchases of property and equipment, net | (11,393) | (7,757) |
Capitalized internal use software development costs | (7,526) | (6,058) |
Acquisitions, net of cash acquired | (238) | (8,647) |
Investments in available-for-sale securities | (22,722) | (29,884) |
Maturities of available-for-sale securities | 20,600 | 1,600 |
Change in restricted cash | 257 | 1,100 |
Net cash used by investing activities | (21,022) | (49,646) |
FINANCING ACTIVITIES: | ||
Proceeds from exercise of stock options | 13,796 | 10,674 |
Proceeds from issuance of common stock under employee stock purchase plan | 1,137 | 759 |
Taxes paid related to net share settlement | (4,886) | 0 |
Repayment of debt and capital lease obligations | 0 | (105) |
Net cash provided by financing activities | 10,047 | 11,328 |
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | (71) | (198) |
CHANGE IN CASH AND CASH EQUIVALENTS | 37,765 | (17,331) |
CASH AND CASH EQUIVALENTS--Beginning of period | 116,499 | 97,196 |
CASH AND CASH EQUIVALENTS--End of period | 154,264 | 79,865 |
SUPPLEMENTAL DISCLOSURES OF OTHER CASH FLOW INFORMATION: | ||
Capitalized assets financed by accounts payable and accrued expenses | 1,754 | 920 |
Capitalized stock-based compensation | 772 | 586 |
Common stock and options issued for business acquisitions | $ 0 | $ 76,795 |
Organization and Summary of Significant Accounting Policies |
9 Months Ended |
---|---|
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Organization and Summary of Significant Accounting Policies | Organization and Summary of Significant Accounting Policies Company Overview The Rubicon Project, Inc., or Rubicon Project or the Company, was formed on April 20, 2007 in Delaware and began operations in April 2007. The Company is headquartered in Los Angeles, California. The Company is a technology company with a mission to keep the Internet free and open and to fuel its growth by making it easy and safe to buy and sell advertising. The Company pioneered advertising automation technology to enable the world's leading brands, content creators, and application developers to trade and protect trillions of advertising requests each month and to improve the advertising experience of consumers. The Company offers a highly scalable platform that provides an automated advertising solution for buyers and sellers of digital advertising. The Company delivers value to buyers and sellers of digital advertising through the Company's proprietary advertising automation solution, which provides critical functionality to both buyers and sellers. The advertising automation solution consists of applications for sellers, including providers of websites, mobile applications and other digital media properties and their representatives, to sell their advertising inventory; applications for buyers, including advertisers, agencies, agency trading desks, demand side platforms, and ad networks, to buy advertising inventory; and a marketplace over which such transactions are executed. This solution incorporates proprietary machine-learning algorithms, sophisticated data processing, high-volume storage, detailed analytics capabilities, and a distributed infrastructure. Together, these features form the basis for the Company's automated advertising solution that brings buyers and sellers together and facilitates intelligent decision-making and automated transaction execution for the advertising inventory managed on the Company's platform. Basis of Presentation and Summary of Significant Accounting Policies The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles, or GAAP, for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair statement of the results for the interim period presented have been included. Operating results for the three and nine months ended September 30, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016, for any future interim period, or for any future year. The condensed consolidated balance sheet at December 31, 2015 has been derived from the audited financial statements at that date, but does not include all of the disclosures required by GAAP. The accompanying condensed consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements and notes thereto for the year ended December 31, 2015 included in its Annual Report on Form 10-K. There have been no significant changes in the Company's accounting policies from those disclosed in its audited consolidated financial statements and notes thereto for the year ended December 31, 2015 included in its Annual Report on Form 10-K, with the exception of the early adoption of the new accounting guidance that simplifies several aspects of the accounting for share-based payment transactions. See Note 1, Note 7, and Note 8 for further discussion of the adoption. Revenue Recognition The Company generates revenue from buyers and sellers in transactions in which they use the Company's solution for the purchase and sale of advertising inventory, and also in transactions in which the Company manages ad campaigns on behalf of buyers. The Company maintains separate arrangements with each buyer and seller either in the form of a master agreement, which specifies the terms of the relationship and access to the Company's solution, or by insertion orders, which specify price and volume requests and other terms. The Company recognizes revenue upon the fulfillment of its contractual obligations in connection with a completed transaction, subject to satisfying all other revenue recognition criteria, including (i) persuasive evidence of an arrangement existing, (ii) delivery having occurred or services having been rendered, (iii) the fees being fixed or determinable, and (iv) collectibility being reasonably assured. The Company assesses whether fees are fixed or determinable based on the contractual terms of the arrangements. Historically, any refunds and adjustments have not been material. The Company assesses collectibility based on a number of factors, including the creditworthiness of a buyer and seller and payment and transaction history. The Company's revenue arrangements generally do not include multiple deliverables. Revenue is reported depending on whether the Company functions as principal or agent. The determination of whether the Company acts as the principal or the agent requires the Company to evaluate a number of indicators, none of which is presumptive or determinative. For transactions in which the Company is the principal, revenue is reported on a gross basis for the amount paid by buyers for the purchase of advertising inventory and related services and the Company records the amounts paid to sellers as cost of revenue. For transactions in which the Company is the agent, revenue is reported on a net basis for the amount of fees charged to the buyer (if any), and fees retained from or charged to the seller. The Company enters into arrangements for which it manages advertising campaigns on behalf of buyers. The Company is the principal in these arrangements as it: (i) is the primary obligor in the advertising inventory purchase transaction; (ii) establishes the purchase prices paid by the buyer; (iii) performs all billing and collection activities including the retention of credit risk; (iv) has latitude in selecting suppliers; (v) negotiates the price it pays to suppliers of inventory; and (vi) makes all inventory purchasing decisions. Accordingly, for these arrangements the Company reports revenue on a gross basis. For the Company's other arrangements, in which the Company's solution matches buyers and sellers, enables them to purchase and sell advertising inventory, and establishes rules and parameters for advertising inventory transactions, the Company reports revenue on a net basis because the Company: (i) is not the primary obligor for the purchase of advertising inventory but rather provides a platform to facilitate the buying and selling of advertising; (ii) does not have pricing latitude as pricing is generally determined through the Company's auction process and/or the Company's fees are based on a percentage of advertising spend; and (iii) does not directly select suppliers. Reclassifications Certain amounts in the consolidated balance sheet for December 31, 2015 have been reclassified to conform with current-period presentation. Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported and disclosed financial statements and accompanying footnotes. Actual results could differ materially from these estimates. Recent Accounting Pronouncements Under the Jumpstart Our Business Startups Act, or the JOBS Act, the Company meets the definition of an emerging growth company. The Company has irrevocably elected to opt out of the extended transition period for complying with new or revised accounting standards pursuant to Section 107(b) of the JOBS Act. In May 2014, the FASB issued new accounting guidance that amends the guidance for revenue recognition to replace numerous, industry-specific requirements and converges areas under the "Revenue from Contracts with Customers" topic with those of the International Financial Reporting Standards. The guidance implements a five-step process for customer contract revenue recognition that focuses on transfer of control, as opposed to transfer of risk and rewards. The amendment also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenues and cash flows from contracts with customers. Other major provisions include the capitalization and amortization of certain contract costs, ensuring the time value of money is considered in the transaction price, and allowing estimates of variable consideration to be recognized before contingencies are resolved in certain circumstances. These amendments were effective for reporting periods beginning after December 15, 2016, with early adoption prohibited. Entities can transition to the standard either retrospectively or as a cumulative-effect adjustment as of the date of adoption. Subsequent to issuing the May 2014 guidance, in August 2015, the FASB issued amendments that deferred the effective date one year. As a result, the guidance is effective for reporting periods beginning after December 15, 2017, with early adoption permitted only as of annual reporting periods beginning after December 15, 2016. Since its issuance, the FASB has amended several aspects of the new guidance including provisions that clarify the implementation guidance on principal versus agent considerations in the new revenue recognition standard. The amendments clarify how an entity should identify the unit of accounting (i.e. the specified good or service) for the principal versus agent evaluation and how it should apply the control principle to certain types of arrangements. The Company is currently assessing the impact this guidance will have on the Company's consolidated financial statements and has not yet selected a transition method. In January 2016, the FASB issued new accounting guidance that changes certain recognition, measurement, presentation, and disclosure requirements for financial instruments. The new guidance requires all equity investments, except those accounted for under the equity method of accounting or resulting in consolidation, to be measured at fair value with changes in fair value recognized in net income. The guidance also simplifies the impairment assessment for equity investments without readily determinable fair values, amends the presentation requirements for changes in the fair value of financial liabilities, requires presentation of financial instruments by measurement category and form of financial asset, and eliminates the requirement to disclose the methods and significant assumptions used in estimating the fair value of financial instruments. The new guidance is effective for interim and annual periods beginning after December 15, 2017, and early adoption is not permitted except for the amended presentation requirements for changes in the fair value of financial liabilities. The Company is currently assessing the impact this guidance will have on the Company's consolidated financial statements. In February 2016, the FASB issued new accounting guidance that requires an entity to recognize right-of-use assets and lease liabilities on its balance sheet and disclose key information about leasing arrangements. This guidance offers specific accounting guidance for a lessee, a lessor, and sale and leaseback transactions. Lessees and lessors are required to disclose qualitative and quantitative information about leasing arrangements to enable a user of the financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. This guidance is effective for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period, and requires a modified retrospective adoption, with early adoption permitted. The Company is currently assessing the impact this guidance will have on the Company's consolidated financial statements. In March 2016, the FASB issued new accounting guidance that simplifies several aspects of the accounting for share-based payment transactions, including accounting for forfeitures, the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. Under the new standard, income tax benefits and deficiencies are to be recognized as income tax expense or benefit in the income statement and the tax effects of exercised or vested awards should be treated as discrete items in the reporting period in which they occur. An entity should also recognize excess tax benefits regardless of whether the benefit reduces taxes payable in the current period. Excess tax benefits should be classified along with other income tax cash flows as an operating activity. In regards to forfeitures, the entity may make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest or account for forfeitures when they occur. This guidance is effective for fiscal years beginning after December 15, 2016 including interim periods within that reporting period; however early adoption is permitted. The Company early adopted the guidance during the three months ended September 30, 2016. See Note 7 and Note 8 for discussion on the impact of the adoption. In June 2016, the FASB issued new guidance that changes the accounting for recognizing impairments of financial assets. Under the new guidance, credit losses for certain types of financial instruments will be estimated based on expected losses. The new guidance also modifies the impairment models for available-for-sale debt securities and for purchased financial assets with credit deterioration since their origination. The new guidance will be effective for the Company starting in the first quarter of fiscal 2021. Early adoption is permitted starting in the first quarter of fiscal 2020. The Company is currently assessing the impact this guidance will have on the Company's consolidated financial statements. In August 2016, the FASB issued new guidance intended to reduce diversity in practice in how certain cash receipts and payments are classified in the statement of cash flows, including debt prepayment or extinguishment costs, the settlement of contingent liabilities arising from a business combination, proceeds from insurance settlements, and distributions from certain equity method investees. The new guidance will be effective for interim and annual periods beginning after December 15, 2017, and early adoption is permitted. The guidance requires application using a retrospective transition method. The Company is currently assessing the impact this guidance will have on the Company's consolidated financial statements. In October 2016, the FASB issued new guidance intended to improve the accounting for the income tax consequences of intra-entity transfers of assets other than inventory. Under the new guidance, entities should recognize the income tax consequences of such transfers when the transfers occur. The new guidance will be effective for interim and annual periods beginning after December 15, 2017, and early adoption is permitted. The guidance requires application using a modified retrospective transition method. The Company is currently assessing the impact this guidance will have on the Company's consolidated financial statements. |
Net Income (Loss) Per Share |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Text Block] | Note 2—Net Income (Loss) Per Share The following table presents the basic and diluted net income (loss) per share for each period presented:
The following weighted-average shares have been excluded from the calculation of diluted net income (loss) per share for each period presented because they are anti-dilutive:
In addition to the above anti-dilutive shares, shares contingently issuable if certain milestones were achieved on December 31, 2015 related to business combinations that occurred during the years ended December 31, 2014 and 2015 have been excluded from the calculation of diluted net loss per share for the three and nine months ended September 30, 2015. If September 30, 2015 had been the end of the contingency period, 821,862 shares would have been issuable related to the iSocket, Inc., or iSocket, acquisition and 957,407 shares would have been issuable related to the Chango Inc., or Chango, acquisition. On December 31, 2015, the Company issued 585,170 shares in connection with the iSocket contingent consideration and 971,481 shares in connection with the Chango contingent consideration, which were included in the calculation of basic and diluted net income (loss) per share for the three and nine months ended September 30, 2016. |
Fair Value Measurements |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements Fair value represents the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. Observable inputs are based on market data obtained from independent sources. The fair value hierarchy is based on the following three levels of inputs, of which the first two are considered observable and the last one is considered unobservable:
The table below sets forth a summary of financial instruments that are measured at fair value on a recurring basis at September 30, 2016:
The table below sets forth a summary of financial instruments that are measured at fair value on a recurring basis at December 31, 2015:
At September 30, 2016 and December 31, 2015, cash equivalents of $17.3 million and $19.3 million, respectively, consisted of money market funds with original maturities of three months or less. The fair values of the Company's money market funds, U.S. treasury, government and agency debt securities, and corporate debt securities are based on quoted market prices. At September 30, 2015, the Company had contingent consideration liabilities in connection with the acquisitions of iSocket and Chango that the Company classified within Level 3 as factors used to develop the estimated fair value included unobservable inputs that were not supported by market activity. The Company estimated the fair value of the contingent consideration liability for iSocket by discounting the present value of the probability-weighted future payout related to the contingent earn-out criteria using an estimate of the Company's incremental borrowing rate. At September 30, 2015, the Company considered it highly likely that the iSocket earn-out criteria would be met. On December 31, 2015, the Company issued 585,170 shares of common stock in satisfaction of the contingent consideration. The Company estimated the fair value of the contingent consideration liability related to the Chango acquisition by using a Monte-Carlo model as the fair value of the contingent consideration was dependent on both the performance milestones being achieved and the post-acquisition prices of the Company's common stock. Subsequent to Chango's acquisition date, the operations of Chango were fully integrated into the operations of the Company. Accordingly, pursuant to the acquisition agreement, because Chango was no longer operated separately from the Company's other operations in accordance with the agreed-upon business plan, the entire contingent consideration was deemed earned. As a result, the changes in the fair value of the contingent consideration liability post-acquisition were primarily dependent on prices of the Company's common stock for periods subsequent to Chango's acquisition date. On December 31, 2015, the Company issued 971,481 shares of common stock in satisfaction of the contingent consideration. For the three and nine months ended September 30, 2015, the change in fair value of the contingent consideration liabilities, which was recorded in general and administrative expenses, was insignificant. The Company's contingent consideration liability was recorded at fair value and was determined to be a Level 3 fair value item. The change in the fair value of the contingent consideration liability is summarized below:
|
Other Balance Sheet Amounts |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance Sheet Related Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Balance Sheet Amounts | Other Balance Sheet Amounts The Company holds restricted cash as collateral for credit cards. At September 30, 2016 and December 31, 2015, restricted cash included in prepaid expenses and other current assets were $0.1 million and $0.3 million, respectively. Investments in marketable securities as of September 30, 2016 consisted of the following:
As of September 30, 2016, the Company's available-for-sale securities had a weighted remaining contractual maturity of 0.3 years. For the three and nine months ended September 30, 2016 the gross realized gains and gross realized losses were not significant and there were no unrealized holding gains (losses) reclassified out of accumulated other comprehensive income (loss) into the consolidated statements of operations for the sale of available-for-sale investments. Investments in marketable securities as of December 31, 2015 consisted of the following:
As of September 30, 2016, the contractual maturity dates for all marketable securities are due in less than one year. There were no non-current marketable securities at September 30, 2016. Accounts payable and accrued expenses included the following:
At September 30, 2016 and December 31, 2015, accounts payable—seller are recorded net of $0.3 million and $0.7 million, respectively, due from sellers for services provided by the Company to sellers, where the Company has the right of offset. |
Business Combinations |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations | Business Combinations On April 24, 2015, or the Acquisition Date, the Company completed the acquisition of all the issued and outstanding shares of Chango, a Toronto, Canada based intent marketing technology company. The following table provides unaudited pro forma information as if Chango had been acquired as of January 1, 2014. The unaudited pro forma information reflects adjustments for additional amortization resulting from the fair value adjustments to assets acquired and liabilities assumed. The pro forma results do not include any anticipated cost synergies or other effects of the integration of Chango or recognition of compensation expense relating to the earn-out. Accordingly, pro forma amounts are not necessarily indicative of the results that actually would have occurred had the acquisition been completed on the dates indicated, nor is it indicative of the actual or future operating results of the combined company.
Subsequent to the Acquisition Date, the operations of Chango were fully integrated into the operations of the Company and as a result, the determination of Chango's post-acquisition revenues and operating results on a standalone basis are impracticable given the integration of the Chango operations with the Company's operations. |
Intangible Assets |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Assets | Intangible Assets Intangible assets primarily consist of acquired developed technology, customer relationships and non-compete agreements resulting from business combinations, which are recorded at acquisition-date fair value, less accumulated amortization. The Company determines the appropriate useful life of its intangible assets by performing an analysis of expected cash flows of the acquired assets. Intangible assets are amortized over their estimated useful lives using a straight-line method, which approximates the pattern in which the economic benefits are consumed. During the three months ended June 30, 2016, the Company reassessed the remaining estimated useful lives of the developed technology and customer relationships related to the Chango acquisition. The change in estimated useful lives for the developed technology and customer relationships was based on the remaining expected benefit from those assets. As a result, the remaining estimated useful life for developed technology was changed from a range between 1.8 and 3.8 years to a range between 1.3 and 2.8 years and the remaining estimated useful life for customer relationships was changed from 3.8 years to 1.8 years as of June 30, 2016. Details of the Company's intangible assets were as follows:
Amortization expense of intangible assets for the three and nine months ended September 30, 2016 were $5.7 million and $14.3 million, respectively. The change in the remaining estimated useful lives for acquired technology and customer relationships resulted in increased amortization expense of $1.6 million and $2.1 million for the three and nine months ended September 30, 2016, respectively. The increased amortization expense decreased the basic and diluted earnings per share by $0.03 for the three months ended September 30, 2016. The increased amortization expense decreased the basic and diluted earnings per share by $0.05 and $0.04 for the nine months ended September 30, 2016, respectively. As of September 30, 2016 the estimated remaining amortization expense associated with the Company's intangible assets for each of the next five fiscal years was as follows:
|
Stock-Based Compensation |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation | Stock-Based Compensation The Company's equity incentive plans provide for the grant of equity awards, including non-statutory or incentive stock options, restricted stock, and restricted stock units, to the Company's employees, officers, directors, and consultants. The Company's board of directors administers the plans. Options outstanding vest based upon continued service at varying rates, but generally over four years from issuance with 25% vesting after one year of service and the remainder vesting monthly thereafter. Restricted stock and restricted stock units vest at varying rates, usually 25% vesting after one year of service and the remainder vesting semi-annually thereafter. Options, restricted stock, and restricted stock units granted under the plans accelerate under certain circumstances on a change in control, as defined in the governing plan. An aggregate of 2,934,703 shares remained available for issuance at September 30, 2016 under the plans. During the three months ended September 30, 2016, the Company early adopted the new accounting guidance that simplifies several aspects of the accounting for share-based payments, including the Company's election to eliminate the requirement to estimate the number of awards that are expected to vest and, instead, account for forfeitures when they occur. The new standard requires the change be adopted using the modified retrospective approach. As such, the Company recorded a cumulative-effect adjustment of $0.7 million to increase the December 31, 2015 accumulated deficit and the December 31, 2015 additional paid-in capital balances. In addition, the new standard requires income tax benefits and deficiencies to be recognized as income tax expense or benefit in the income statement and the tax effects of exercised or vested awards should be treated as discrete items in the reporting period in which they occur. The Company recorded $7.5 million of net deferred tax assets related to net operating losses for income tax benefits as of January 1, 2016. The Company has a full valuation allowance, and thus the income tax consequences of the new standard did not have an impact on the condensed consolidated financial statements. Excess tax benefits should be classified along with other income tax cash flows as an operating activity. The new standard also requires the presentation of cash paid by the employer for employee taxes as a financing activity. The Company has historically presented these items as financing activities, and thus the new standard did not have an impact of the condensed consolidated financial statements. Stock Options A summary of stock option activity for the nine months ended September 30, 2016 is as follows:
At September 30, 2016, the Company had unrecognized employee stock-based compensation expense relating to stock options of approximately $8.7 million, which is expected to be recognized over a weighted-average period of 1.9 years. The weighted-average grant date per share fair value of stock options granted in the nine months ended September 30, 2016 was $6.52. The Company estimates the fair value of stock options that contain service and/or performance conditions using the Black-Scholes option pricing model. No stock options were granted during the third quarter of 2016. The weighted-average input assumptions used by the Company were as follows:
Restricted Stock A summary of restricted stock activity for the nine months ended September 30, 2016 is as follows:
At September 30, 2016, the Company had unrecognized employee stock-based compensation expense relating to restricted stock with service conditions of approximately $7.9 million, which is expected to be recognized over a weighted-average period of 2.5 years. At September 30, 2016, the Company had unrecognized employee stock-based compensation expense relating to restricted stock with market conditions granted in 2014 of approximately $0.5 million, which is expected to be recognized over a weighted-average period of 4.6 years. In February 2016, the Company granted certain executives shares of restricted stock that vest based on certain stock price performance metrics. The grant date fair value per share of restricted stock was $11.07, which was estimated using a Monte-Carlo lattice model. In May 2015, the Company granted certain executives shares of restricted stock that vest based on certain stock price performance metrics. The grant date fair value per share of restricted stock was $13.81, which was estimated using a Monte-Carlo lattice model. At September 30, 2016, the Company had unrecognized employee stock-based compensation expense relating to these shares of restricted stock with market conditions of approximately $3.2 million, which is expected to be recognized over a weighted-average period of 1.9 years. The compensation expense will not be reversed if the performance metrics are not met. Restricted Stock Units A summary of restricted stock unit activity for the nine months ended September 30, 2016 is as follows:
At September 30, 2016, the Company had unrecognized employee stock-based compensation expense relating to restricted stock units of approximately $39.6 million, which is expected to be recognized over a weighted-average period of 3.2 years. Employee Stock Purchase Plan In November 2013, the Company adopted the Company's 2014 Employee Stock Purchase Plan, or ESPP. The ESPP is designed to enable eligible employees to periodically purchase shares of the Company's common stock at a discount through payroll deductions of up to 10% of their eligible compensation, subject to any plan limitations. At the end of each six month offering period, employees are able to purchase shares at a price per share equal to 85% of the lower of the fair market value of the Company's common stock on the first trading day of the offering period or on the last trading day of the offering period. Offering periods generally commence and end in May and November of each year. As of September 30, 2016, the Company has reserved 1,100,149 shares of its common stock for issuance under the ESPP. Shares reserved for issuance will increase on January 1 of each year by the lesser of (i) a number of shares equal to 1% of the total number of outstanding shares of common stock on the December 31 immediately prior to the date of increase or (ii) such number of shares as may be determined by the board of directors. In May 2016, 93,416 shares of common stock were purchased under the ESPP. The Company estimated the total grant date fair value of the ESPP awards for the offering period ending in November 2016 of $0.4 million using a Black-Scholes model with the following assumptions: term of 6 months corresponding with the offering period; volatility of 58% based on the Company's historical volatility for a six month period; no dividend yield; and risk-free interest rate of 0.38%. Compensation costs are recognized on a straight-line basis over the offering period. Stock-Based Compensation Expense Total stock-based compensation expense recorded in the consolidated statements of operations was as follows:
|
Income Taxes |
9 Months Ended |
---|---|
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes In determining quarterly provisions for income taxes, the Company uses the annual estimated effective tax rate applied to the actual year-to-date income. The Company's annual estimated effective tax rate differs from the statutory rate primarily as a result of state taxes, foreign taxes, nondeductible stock option expenses, and changes in the Company's valuation allowance. The Company recorded an income tax benefit of $5.6 million and $2.1 million for the three months ended September 30, 2016 and 2015, respectively, and an income tax benefit of $5.0 million and $2.4 million for the nine months ended September 30, 2016 and 2015, respectively. The tax benefit for the three and nine months ended September 30, 2016 is primarily the result of the net operating losses generated by the Company's international activity. Due to uncertainty as to the realization of benefits from the Company's domestic and certain international net deferred tax assets, including net operating loss carryforwards and research and development tax credits, the Company has a full valuation allowance reserved against such net deferred tax assets. The Company intends to continue to maintain a full valuation allowance on the net deferred tax assets until there is sufficient evidence to support the reversal of all or some portion of these allowances. During the three months ended September 30, 2016, the Company early adopted the new accounting guidance that simplifies several aspects of the accounting for share-based payments, including the requirement for income tax benefits and deficiencies to be recognized as income tax expense or benefit in the income statement and the tax effects of exercised or vested awards should be treated as discrete items in the reporting period in which they occur. The Company recorded $7.5 million of net deferred tax assets related to net operating losses for income tax benefits as of January 1, 2016. The Company has a full valuation allowance, and thus the new standard did not have an impact on the condensed consolidated financial statements. Excess tax benefits should be classified along with other income tax cash flows as an operating activity. There were no material changes to the Company's unrecognized tax benefits in the three and nine months ended September 30, 2016, and the Company does not expect to have any significant changes to unrecognized tax benefits through the end of the fiscal year. Because of the Company's history of tax losses, all years remain open to tax audit. |
Commitments and Contingencies |
9 Months Ended |
---|---|
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Operating Leases The Company has commitments under non-cancelable operating leases for facilities and certain equipment and its managed data center facilities. Total rental expenses were $4.3 million and $3.8 million for the three months ended September 30, 2016 and 2015, respectively, and $12.6 million and $9.2 million for the nine months ended September 30, 2016 and 2015, respectively. During the nine months ended September 30, 2016, the Company entered into new operating leases. Future non-cancelable minimum commitments as of September 30, 2016 relating to these new operating leases totaling $5.0 million are due through January 2024. The Company has rental income from commercial office space the Company holds under lease and has subleased to other tenants that is included in other income. Rental income was insignificant for the three and nine months ended September 30, 2016. Guarantees and Indemnification The Company's agreements with sellers, buyers, and other third parties typically obligate it to provide indemnity and defense for losses resulting from claims of intellectual property infringement, damages to property or persons, business losses, or other liabilities. Generally, these indemnity and defense obligations relate to the Company's own business operations, obligations, and acts or omissions. However, under some circumstances, the Company agrees to indemnify and defend contract counterparties against losses resulting from their own business operations, obligations, and acts or omissions, or the business operations, obligations, and acts or omissions of third parties. For example, because the Company's business interposes the Company between buyers and sellers in various ways, buyers often require the Company to indemnify them against acts or omissions of sellers, and sellers often require the Company to indemnify them against acts or omissions of buyers. In addition, the Company's agreements with sellers, buyers, and other third parties typically include provisions limiting the Company's liability to the counterparty, and the counterparty's liability to the Company. These limits sometimes do not apply to certain liabilities, including indemnity obligations. These indemnity and limitation of liability provisions generally survive termination or expiration of the agreements in which they appear. The Company has also entered into indemnification agreements with its directors, executive officers, and certain other officers that will require the Company, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors, officers, or employees. Employment Contracts The Company has entered into severance agreements with certain employees and officers. The Company may be required to pay severance and accelerate the vesting of certain equity awards in the event of involuntary terminations of employment of such persons. Other Contracts The Company is party to an engagement letter with an investment bank entered into in 2009 and amended in 2012. Pursuant to the engagement letter, the investment bank provided and may continue to provide strategic and consulting advice to the Company. The engagement letter also provides that, in case of a merger, tender offer, stock purchase, or other transaction resulting in the acquisition of the Company by another entity or the transfer of ownership or control of the Company or substantially all of its assets to another entity (a "Change in Control Transaction") that is consummated before December 7, 2016 or pursuant to a definitive agreement entered into before that date, (i) the investment bank will provide investment banking services in connection with a Change in Control Transaction, if requested by the Company, and (ii) the Company will pay to the investment bank a fee equal to 2.5% of the total consideration paid or payable to the Company or its stockholders in the Change in Control Transaction, whether or not the Company requests such investment banking services. Claims and Litigation The Company and its subsidiaries may from time to time be parties to legal or regulatory proceedings, lawsuits and other claims incident to their business activities and to the Company's status as a public company. Such matters may include, among other things, assertions of contract breach or intellectual property infringement, claims for indemnity arising in the course of the Company's business, regulatory investigations or enforcement proceedings, and claims by persons whose employment has been terminated. Such matters are subject to many uncertainties, and outcomes are not predictable with assurance. Consequently, management is unable to ascertain the ultimate aggregate amount of monetary liability, amounts which may be covered by insurance or recoverable from third parties, or the financial impact with respect to such matters as of September 30, 2016. However, based on management's knowledge as of September 30, 2016, management believes that the final resolution of these matters known at such date, individually and in the aggregate, will not have a material effect upon the Company's consolidated financial position, results of operations or cash flows. |
Subsequent Event |
9 Months Ended |
---|---|
Sep. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On November 2, 2016, the Company announced a workforce reduction of 125 employees, or approximately 19%, of its workforce. The Company expects to complete this action and incur pre-tax charges of approximately $4.0 million in cash expenditures for one-time employee-termination benefits during the fourth quarter of 2016. The reduction in force is expected to reduce future employee-related costs on an annual basis by approximately $18.0 million. |
Organization and Summary of Significant Accounting Policies (Policies) |
9 Months Ended |
---|---|
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | Basis of Presentation and Summary of Significant Accounting Policies The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles, or GAAP, for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair statement of the results for the interim period presented have been included. Operating results for the three and nine months ended September 30, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016, for any future interim period, or for any future year. The condensed consolidated balance sheet at December 31, 2015 has been derived from the audited financial statements at that date, but does not include all of the disclosures required by GAAP. The accompanying condensed consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements and notes thereto for the year ended December 31, 2015 included in its Annual Report on Form 10-K. There have been no significant changes in the Company's accounting policies from those disclosed in its audited consolidated financial statements and notes thereto for the year ended December 31, 2015 included in its Annual Report on Form 10-K, with the exception of the early adoption of the new accounting guidance that simplifies several aspects of the accounting for share-based payment transactions. See Note 1, Note 7, and Note 8 for further discussion of the adoption. |
Reclassifications | Reclassifications Certain amounts in the consolidated balance sheet for December 31, 2015 have been reclassified to conform with current-period presentation. |
Revenue Recognition | Revenue Recognition The Company generates revenue from buyers and sellers in transactions in which they use the Company's solution for the purchase and sale of advertising inventory, and also in transactions in which the Company manages ad campaigns on behalf of buyers. The Company maintains separate arrangements with each buyer and seller either in the form of a master agreement, which specifies the terms of the relationship and access to the Company's solution, or by insertion orders, which specify price and volume requests and other terms. The Company recognizes revenue upon the fulfillment of its contractual obligations in connection with a completed transaction, subject to satisfying all other revenue recognition criteria, including (i) persuasive evidence of an arrangement existing, (ii) delivery having occurred or services having been rendered, (iii) the fees being fixed or determinable, and (iv) collectibility being reasonably assured. The Company assesses whether fees are fixed or determinable based on the contractual terms of the arrangements. Historically, any refunds and adjustments have not been material. The Company assesses collectibility based on a number of factors, including the creditworthiness of a buyer and seller and payment and transaction history. The Company's revenue arrangements generally do not include multiple deliverables. Revenue is reported depending on whether the Company functions as principal or agent. The determination of whether the Company acts as the principal or the agent requires the Company to evaluate a number of indicators, none of which is presumptive or determinative. For transactions in which the Company is the principal, revenue is reported on a gross basis for the amount paid by buyers for the purchase of advertising inventory and related services and the Company records the amounts paid to sellers as cost of revenue. For transactions in which the Company is the agent, revenue is reported on a net basis for the amount of fees charged to the buyer (if any), and fees retained from or charged to the seller. The Company enters into arrangements for which it manages advertising campaigns on behalf of buyers. The Company is the principal in these arrangements as it: (i) is the primary obligor in the advertising inventory purchase transaction; (ii) establishes the purchase prices paid by the buyer; (iii) performs all billing and collection activities including the retention of credit risk; (iv) has latitude in selecting suppliers; (v) negotiates the price it pays to suppliers of inventory; and (vi) makes all inventory purchasing decisions. Accordingly, for these arrangements the Company reports revenue on a gross basis. For the Company's other arrangements, in which the Company's solution matches buyers and sellers, enables them to purchase and sell advertising inventory, and establishes rules and parameters for advertising inventory transactions, the Company reports revenue on a net basis because the Company: (i) is not the primary obligor for the purchase of advertising inventory but rather provides a platform to facilitate the buying and selling of advertising; (ii) does not have pricing latitude as pricing is generally determined through the Company's auction process and/or the Company's fees are based on a percentage of advertising spend; and (iii) does not directly select suppliers. |
Use of Estimates | Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported and disclosed financial statements and accompanying footnotes. Actual results could differ materially from these estimates. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Under the Jumpstart Our Business Startups Act, or the JOBS Act, the Company meets the definition of an emerging growth company. The Company has irrevocably elected to opt out of the extended transition period for complying with new or revised accounting standards pursuant to Section 107(b) of the JOBS Act. In May 2014, the FASB issued new accounting guidance that amends the guidance for revenue recognition to replace numerous, industry-specific requirements and converges areas under the "Revenue from Contracts with Customers" topic with those of the International Financial Reporting Standards. The guidance implements a five-step process for customer contract revenue recognition that focuses on transfer of control, as opposed to transfer of risk and rewards. The amendment also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenues and cash flows from contracts with customers. Other major provisions include the capitalization and amortization of certain contract costs, ensuring the time value of money is considered in the transaction price, and allowing estimates of variable consideration to be recognized before contingencies are resolved in certain circumstances. These amendments were effective for reporting periods beginning after December 15, 2016, with early adoption prohibited. Entities can transition to the standard either retrospectively or as a cumulative-effect adjustment as of the date of adoption. Subsequent to issuing the May 2014 guidance, in August 2015, the FASB issued amendments that deferred the effective date one year. As a result, the guidance is effective for reporting periods beginning after December 15, 2017, with early adoption permitted only as of annual reporting periods beginning after December 15, 2016. Since its issuance, the FASB has amended several aspects of the new guidance including provisions that clarify the implementation guidance on principal versus agent considerations in the new revenue recognition standard. The amendments clarify how an entity should identify the unit of accounting (i.e. the specified good or service) for the principal versus agent evaluation and how it should apply the control principle to certain types of arrangements. The Company is currently assessing the impact this guidance will have on the Company's consolidated financial statements and has not yet selected a transition method. In January 2016, the FASB issued new accounting guidance that changes certain recognition, measurement, presentation, and disclosure requirements for financial instruments. The new guidance requires all equity investments, except those accounted for under the equity method of accounting or resulting in consolidation, to be measured at fair value with changes in fair value recognized in net income. The guidance also simplifies the impairment assessment for equity investments without readily determinable fair values, amends the presentation requirements for changes in the fair value of financial liabilities, requires presentation of financial instruments by measurement category and form of financial asset, and eliminates the requirement to disclose the methods and significant assumptions used in estimating the fair value of financial instruments. The new guidance is effective for interim and annual periods beginning after December 15, 2017, and early adoption is not permitted except for the amended presentation requirements for changes in the fair value of financial liabilities. The Company is currently assessing the impact this guidance will have on the Company's consolidated financial statements. In February 2016, the FASB issued new accounting guidance that requires an entity to recognize right-of-use assets and lease liabilities on its balance sheet and disclose key information about leasing arrangements. This guidance offers specific accounting guidance for a lessee, a lessor, and sale and leaseback transactions. Lessees and lessors are required to disclose qualitative and quantitative information about leasing arrangements to enable a user of the financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. This guidance is effective for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period, and requires a modified retrospective adoption, with early adoption permitted. The Company is currently assessing the impact this guidance will have on the Company's consolidated financial statements. In March 2016, the FASB issued new accounting guidance that simplifies several aspects of the accounting for share-based payment transactions, including accounting for forfeitures, the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. Under the new standard, income tax benefits and deficiencies are to be recognized as income tax expense or benefit in the income statement and the tax effects of exercised or vested awards should be treated as discrete items in the reporting period in which they occur. An entity should also recognize excess tax benefits regardless of whether the benefit reduces taxes payable in the current period. Excess tax benefits should be classified along with other income tax cash flows as an operating activity. In regards to forfeitures, the entity may make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest or account for forfeitures when they occur. This guidance is effective for fiscal years beginning after December 15, 2016 including interim periods within that reporting period; however early adoption is permitted. The Company early adopted the guidance during the three months ended September 30, 2016. See Note 7 and Note 8 for discussion on the impact of the adoption. In June 2016, the FASB issued new guidance that changes the accounting for recognizing impairments of financial assets. Under the new guidance, credit losses for certain types of financial instruments will be estimated based on expected losses. The new guidance also modifies the impairment models for available-for-sale debt securities and for purchased financial assets with credit deterioration since their origination. The new guidance will be effective for the Company starting in the first quarter of fiscal 2021. Early adoption is permitted starting in the first quarter of fiscal 2020. The Company is currently assessing the impact this guidance will have on the Company's consolidated financial statements. In August 2016, the FASB issued new guidance intended to reduce diversity in practice in how certain cash receipts and payments are classified in the statement of cash flows, including debt prepayment or extinguishment costs, the settlement of contingent liabilities arising from a business combination, proceeds from insurance settlements, and distributions from certain equity method investees. The new guidance will be effective for interim and annual periods beginning after December 15, 2017, and early adoption is permitted. The guidance requires application using a retrospective transition method. The Company is currently assessing the impact this guidance will have on the Company's consolidated financial statements. In October 2016, the FASB issued new guidance intended to improve the accounting for the income tax consequences of intra-entity transfers of assets other than inventory. Under the new guidance, entities should recognize the income tax consequences of such transfers when the transfers occur. The new guidance will be effective for interim and annual periods beginning after December 15, 2017, and early adoption is permitted. The guidance requires application using a modified retrospective transition method. The Company is currently assessing the impact this guidance will have on the Company's consolidated financial statements. |
Net Income (Loss) Per Share (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted | The following table presents the basic and diluted net income (loss) per share for each period presented:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following weighted-average shares have been excluded from the calculation of diluted net income (loss) per share for each period presented because they are anti-dilutive:
|
Fair Value Measurements (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Assets Measured on Recurring Basis | The table below sets forth a summary of financial instruments that are measured at fair value on a recurring basis at September 30, 2016:
The table below sets forth a summary of financial instruments that are measured at fair value on a recurring basis at December 31, 2015:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The Company's contingent consideration liability was recorded at fair value and was determined to be a Level 3 fair value item. The change in the fair value of the contingent consideration liability is summarized below:
|
Other Balance Sheet Amounts (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance Sheet Related Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments in Marketable Securities | Investments in marketable securities as of December 31, 2015 consisted of the following:
Investments in marketable securities as of September 30, 2016 consisted of the following:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accounts Payable and Accrued Liabilities | Accounts payable and accrued expenses included the following:
|
Business Combinations (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition, Pro Forma Information | The following table provides unaudited pro forma information as if Chango had been acquired as of January 1, 2014. The unaudited pro forma information reflects adjustments for additional amortization resulting from the fair value adjustments to assets acquired and liabilities assumed. The pro forma results do not include any anticipated cost synergies or other effects of the integration of Chango or recognition of compensation expense relating to the earn-out. Accordingly, pro forma amounts are not necessarily indicative of the results that actually would have occurred had the acquisition been completed on the dates indicated, nor is it indicative of the actual or future operating results of the combined company.
|
Intangible Assets (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Finite-Lived Intangible Assets | Details of the Company's intangible assets were as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | the estimated remaining amortization expense associated with the Company's intangible assets for each of the next five fiscal years was as follows:
|
Stock-Based Compensation (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity | A summary of stock option activity for the nine months ended September 30, 2016 is as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The Company estimates the fair value of stock options that contain service and/or performance conditions using the Black-Scholes option pricing model. No stock options were granted during the third quarter of 2016. The weighted-average input assumptions used by the Company were as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nonvested Restricted Stock Shares Activity | A summary of restricted stock activity for the nine months ended September 30, 2016 is as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Nonvested Restricted Stock Units Activity | A summary of restricted stock unit activity for the nine months ended September 30, 2016 is as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs for all Plans | Total stock-based compensation expense recorded in the consolidated statements of operations was as follows:
|
Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Net income (loss) | $ 3,530 | $ (3,009) | $ 3,137 | $ (19,983) |
Weighted Average Number of Shares Issued, Basic | 48,935 | 44,028 | 48,273 | 41,190 |
Weighted-average unvested restricted shares | (1,231) | (1,723) | (1,563) | (1,707) |
Weighted-average escrow shares | (166) | (997) | (524) | (636) |
Weighted Average Number of Shares Outstanding, Basic | 47,538 | 41,308 | 46,186 | 38,847 |
Basic net income (loss) per share (usd per share) | $ 0.07 | $ (0.07) | $ 0.07 | $ (0.51) |
Dilutive effect of weighted-average escrow shares | 170 | 0 | 523 | 0 |
Dilutive effect of weighted-average contingent shares | 0 | 0 | 0 | 0 |
Weighted-average shares used to compute diluted net income (loss) per share (in shares) | 48,683 | 41,308 | 49,126 | 38,847 |
Diluted net income (loss) per share (usd per share) | $ 0.07 | $ (0.07) | $ 0.06 | $ (0.51) |
Stock Options | ||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 536 | 0 | 1,191 | 0 |
Unvested restricted stock awards | ||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 138 | 0 | 502 | 0 |
Restricted Stock Units (RSUs) | ||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 243 | 0 | 690 | 0 |
ESPP | ||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 58 | 0 | 34 | 0 |
Net Income (Loss) Per Share (Narrative) (Details) - shares |
3 Months Ended | 9 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
Dec. 31, 2015 |
|
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Total shares excluded from net income (loss) per share | 0 | 5,569,000 | 0 | 5,610,000 | |
Options to purchase common stock | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Total shares excluded from net income (loss) per share | 0 | 2,148,000 | 0 | 2,684,000 | |
Unvested restricted stock awards | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Total shares excluded from net income (loss) per share | 0 | 373,000 | 0 | 564,000 | |
Unvested restricted stock units | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Total shares excluded from net income (loss) per share | 0 | 320,000 | 0 | 440,000 | |
ESPP | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Total shares excluded from net income (loss) per share | 0 | 24,000 | 0 | 26,000 | |
Shares held in escrow | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Total shares excluded from net income (loss) per share | 0 | 785,000 | 0 | 516,000 | |
Contingent shares | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Total shares excluded from net income (loss) per share | 0 | 1,919,000 | 0 | 1,380,000 | |
iSocket | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Business Combination, Contingent Consideration, Shares Issued | 585,170 | ||||
Chango | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Business Combination, Contingent Consideration, Shares Issued | 971,481 | ||||
Pro Forma | iSocket | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Business Combination, Contingent Consideration, Shares Issued | 821,862 | ||||
Pro Forma | Chango | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Business Combination, Contingent Consideration, Shares Issued | 957,407 |
Fair Value Measurements (Financial Instruments) (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Sep. 30, 2016 |
|
Money Market Funds [Member] | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | $ 19,257 | $ 17,321 |
Money Market Funds [Member] | Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 19,257 | 17,321 |
Money Market Funds [Member] | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Money Market Funds [Member] | Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Corporate debt securities | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 12,786 | 17,075 |
Corporate debt securities | Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 12,786 | 17,075 |
Corporate debt securities | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Corporate debt securities | Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
U.S. Treasury, government and agency debt securities | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 23,946 | 21,861 |
U.S. Treasury, government and agency debt securities | Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 23,946 | 21,861 |
U.S. Treasury, government and agency debt securities | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
U.S. Treasury, government and agency debt securities | Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | $ 0 | $ 0 |
iSocket | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Business Combination, Contingent Consideration, Shares Issued | 585,170 | |
Chango | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Business Combination, Contingent Consideration, Shares Issued | 971,481 |
Fair Value Measurements Change In Fair Value Liabilities (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Change in fair value of contingent consideration | $ 0 | $ (136) | ||
Fair Value, Measurements, Recurring | Level 3 | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Contingent consideration liability - Beginning Balance | $ 0 | $ 27,622 | 0 | 11,448 |
Change in fair value of contingent consideration | 0 | (139) | 0 | (136) |
Contingent consideration liability - Ending Balance | 0 | 27,483 | 0 | 27,483 |
Fair Value, Measurements, Recurring | Level 3 | Chango | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Change in fair value of contingent consideration | $ 0 | $ 0 | $ 0 | $ 16,171 |
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
---|---|---|---|---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
Dec. 31, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
Dec. 31, 2014 |
|
Class of Stock [Line Items] | ||||||||
Change in fair value of contingent consideration | $ 0 | $ (136) | ||||||
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | ||||||||
Class of Stock [Line Items] | ||||||||
Contingent consideration liabilities | $ 0 | $ 27,483 | 0 | 27,483 | $ 0 | $ 0 | $ 27,622 | $ 11,448 |
Change in fair value of contingent consideration | 0 | (139) | 0 | (136) | ||||
iSocket | ||||||||
Class of Stock [Line Items] | ||||||||
Business Combination, Contingent Consideration, Shares Issued | 585,170 | |||||||
Chango Inc [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Business Combination, Contingent Consideration, Shares Issued | 971,481 | |||||||
Chango Inc [Member] | Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | ||||||||
Class of Stock [Line Items] | ||||||||
Change in fair value of contingent consideration | 0 | $ 0 | 0 | $ 16,171 | ||||
Money Market Funds [Member] | Fair Value, Measurements, Recurring | ||||||||
Class of Stock [Line Items] | ||||||||
Available-for-sale Securities | 17,321 | 17,321 | $ 19,257 | |||||
Money Market Funds [Member] | Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||||||
Class of Stock [Line Items] | ||||||||
Available-for-sale Securities | 17,321 | 17,321 | 19,257 | |||||
Money Market Funds [Member] | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||||||||
Class of Stock [Line Items] | ||||||||
Available-for-sale Securities | 0 | 0 | 0 | |||||
Money Market Funds [Member] | Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | ||||||||
Class of Stock [Line Items] | ||||||||
Available-for-sale Securities | $ 0 | $ 0 | $ 0 |
Other Balance Sheet Amounts (Investments in Marketable Securities) (Details) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Available-for-sale — short-term: | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 38,926 | $ 23,271 |
Gross Unrealized Gains | 10 | 0 |
Gross Unrealized Losses | 0 | (22) |
Fair Value | 38,936 | 23,249 |
Available-for-sale — short-term: | U.S. Treasury, government and agency debt securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 21,851 | 10,485 |
Gross Unrealized Gains | 10 | 0 |
Gross Unrealized Losses | 0 | (22) |
Fair Value | 21,861 | 10,463 |
Available-for-sale — short-term: | Corporate debt securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 17,075 | 12,786 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 17,075 | 12,786 |
Available-for-sale — long-term: | U.S. Treasury, government and agency debt securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 0 | 13,529 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | (46) |
Fair Value | $ 0 | $ 13,483 |
Other Balance Sheet Amounts (Amortized cost and Fair Value of Marketable Securities) (Details) $ in Thousands |
Sep. 30, 2016
USD ($)
|
---|---|
Balance Sheet Related Disclosures [Abstract] | |
Due in less than 1 year, Amortized Cost | $ 38,926 |
Total, Amortized Cost | 38,926 |
Due in less than 1 year, Fair Value | 38,936 |
Total, Fair Value | $ 38,936 |
Other Balance Sheet Amounts (Narrative) (Details) - USD ($) |
9 Months Ended | |
---|---|---|
Sep. 30, 2016 |
Dec. 31, 2015 |
|
Other Balance Sheet Amounts [Line Items] | ||
Restricted cash included in prepaid expenses and other current assets | $ 100,000 | $ 300,000 |
Available-for-sale Securities, Weighted-average Remaining Contractual Maturity | 4 months | |
Non-current marketable securities | $ 0 | |
Accounts Payable, Right to Offset, Current | $ 300,000 | $ 700,000 |
(Accounts Payable and Accrued Expenses) (Details) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Balance Sheet Related Disclosures [Abstract] | ||
Accounts payable—seller | $ 167,346 | $ 228,850 |
Accounts payable—trade | 8,288 | 6,962 |
Accrued employee-related payables | 10,547 | 12,155 |
Accounts payable and accrued expenses | $ 186,181 | $ 247,967 |
Business Combinations Pro forma information (Details) - Chango Inc [Member] - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 9 Months Ended |
---|---|---|
Sep. 30, 2015 |
Sep. 30, 2015 |
|
Business Acquisition [Line Items] | ||
Pro forma revenues | $ 64,253 | $ 171,127 |
Pro forma net loss | $ (2,243) | $ (20,851) |
Pro forma net loss per share, basic and diluted | $ (0.05) | $ (0.50) |
Intangible Assets (Intangible Assets Useful Lives) (Details) |
Jun. 30, 2016 |
Jun. 29, 2016 |
---|---|---|
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets estimated useful lives | 1 year 9 months 18 days | |
Chango | Developed technology | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets estimated useful lives | 1 year 3 months 18 days | 1 year 9 months 18 days |
Chango | Developed technology | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets estimated useful lives | 2 years 9 months 18 days | 3 years 9 months 18 days |
Chango | Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets estimated useful lives | 3 years 9 months 18 days |
Intangible Assets (Finite-Lived Intangible Assets) (Details) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Finite-Lived Intangible Assets [Line Items] | ||
Amortizable intangible assets, gross | $ 66,048 | $ 66,076 |
Total accumulated amortization—intangible assets | (29,578) | (15,293) |
Total | 36,470 | 50,783 |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortizable intangible assets, gross | 35,728 | 35,756 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortizable intangible assets, gross | 25,330 | 25,330 |
Non-compete agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortizable intangible assets, gross | $ 4,990 | $ 4,990 |
Intangible Assets (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization expense of intangible assets | $ 5.7 | $ 14.3 | ||
Decrease in basic earnings per share (usd per share) | $ 0.07 | $ (0.07) | $ 0.07 | $ (0.51) |
Decrease in diluted earnings per share (usd per share) | $ 0.07 | $ (0.07) | $ 0.06 | $ (0.51) |
Technology-Based Intangible Asset and Customer Relationships | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization expense of intangible assets | $ 1.6 | $ 2.1 | ||
Decrease in basic and diluted earning per share (in dollars per share) | $ 0.03 | |||
Decrease in basic earnings per share (usd per share) | $ 0.05 | |||
Decrease in diluted earnings per share (usd per share) | $ 0.04 | |||
Change in remaining estimated useful life | Developed Technology Rights And Customer Relationships | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization expense of intangible assets | $ 0.5 | |||
Developed Technology Rights And Customer Relationships | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Decrease in basic and diluted earning per share (in dollars per share) | $ 0.01 |
Intangible Assets (Finite-Lived Intangible Assets, Future Amortization Expense) (Details) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2016 | $ 5,702 | |
2017 | 19,538 | |
2018 | 8,415 | |
2019 | 2,815 | |
2020 and thereafter | 0 | |
Total | $ 36,470 | $ 50,783 |
Stock-Based Compensation (Details) |
9 Months Ended |
---|---|
Sep. 30, 2016
shares
| |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Vesting Period | 4 years |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Shares Available for Grant | 2,934,703 |
Employee Stock Option [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award Vesting Rights, Percentage | 25.00% |
Unvested restricted stock awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award Vesting Rights, Percentage | 25.00% |
Stock-Based Compensation (Stock Options Outstanding) (Details) $ / shares in Units, shares in Thousands, $ in Thousands |
9 Months Ended |
---|---|
Sep. 30, 2016
USD ($)
$ / shares
shares
| |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Beginning balance | shares | 6,203 |
Granted | shares | 419 |
Exercised | shares | (1,931) |
Canceled | shares | (607) |
Ending balance | shares | 4,084 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |
Beginning balance | $ / shares | $ 9.76 |
Granted | $ / shares | 14.09 |
Exercised | $ / shares | 7.14 |
Canceled | $ / shares | 12.05 |
Ending balance | $ / shares | $ 11.10 |
Outstanding | 6 years 11 months 4 days |
Outstanding, aggregate intrinsic value | $ | $ 2,733 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest [Abstract] | |
Vested and expected to vest (in shares) | shares | 4,084 |
Vested and expected to vest (in dollars per share) | $ / shares | $ 11.10 |
Vested and expected to vest | 6 years 11 months 4 days |
Vested and expected to vest, aggregate intrinsic value | $ | $ 2,733 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |
Exercisable (in shares) | shares | 2,618 |
Exercisable (in dollars per share) | $ / shares | $ 9.74 |
Exercisable | 6 years 3 months 2 days |
Exercisable, aggregate intrinsic value | $ | $ 2,663 |
Stock-Based Compensation (Stock Options Narrative) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
Dec. 31, 2015 |
|
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||
Unrecognized employee stock-based compensation | $ 8,700 | $ 8,700 | |||
Weighted average grant date fair value | $ 6.52 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Options outstanding | 4,084 | 4,084 | 6,203 | ||
Weighted average exercise price | $ 11.10 | $ 11.10 | $ 9.76 | ||
Vesting Period | 4 years | ||||
Stock-based compensation expense | $ 6,531 | $ 8,800 | $ 22,048 | $ 22,037 | |
Employee Stock Option [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized employee stock-based compensation, period for recognition | 1 year 10 months 20 days |
Stock-Based Compensation (Valuation Assumptions) (Details) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Employee Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected term (in years) | 0 years | 6 years | 5 years 10 months 30 days | 4 years 3 months 9 days |
Risk-free interest rate | 0.00% | 1.74% | 1.43% | 1.26% |
Expected volatility | 0.00% | 43.00% | 48.00% | 48.00% |
Dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Employee Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected term (in years) | 6 months | |||
Risk-free interest rate | 0.38% | |||
Expected volatility | 58.00% | |||
Dividend yield | 0.00% |
Stock-Based Compensation (Restricted Stock Activity) (Details) - Restricted Stock shares in Thousands |
9 Months Ended |
---|---|
Sep. 30, 2016
$ / shares
shares
| |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Beginning balance | shares | 1,479 |
Granted | shares | 525 |
Canceled | shares | (457) |
Vested | shares | (339) |
Ending balance | shares | 1,208 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Beginning Balance (USD per share) | $ / shares | $ 15.58 |
Granted (USD per share) | $ / shares | 12.15 |
Canceled (USD per share) | $ / shares | 14.42 |
Vested (USD per share) | $ / shares | 16.35 |
Ending Balance (USD per share) | $ / shares | $ 14.31 |
Stock-Based Compensation (Restricted Stock Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands |
1 Months Ended | 3 Months Ended | 9 Months Ended | |||||
---|---|---|---|---|---|---|---|---|
Jan. 01, 2016 |
Feb. 29, 2016 |
May 31, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
Dec. 31, 2015 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting Period | 4 years | |||||||
Net deferred tax asset related to net operating losses for income tax benefit | $ 7,500 | |||||||
Stock-based compensation expense | $ 6,531 | $ 8,800 | $ 22,048 | $ 22,037 | ||||
Unvested restricted stock awards | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Award Vesting Rights, Percentage | 25.00% | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 12.15 | |||||||
Unvested restricted stock awards | Vesting, Requisite Service Conditions [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Unrecognized employee stock-based compensation | 7,900 | $ 7,900 | ||||||
Unrecognized employee stock-based compensation, period for recognition | 2 years 5 months 20 days | |||||||
Unvested restricted stock awards | Vesting, Stock Price Performance [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Unrecognized employee stock-based compensation | 3,200 | $ 3,200 | ||||||
Unrecognized employee stock-based compensation, period for recognition | 1 year 10 months 30 days | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 11.07 | $ 13.81 | ||||||
Unvested restricted stock awards | Vesting, Market Conditions [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Unrecognized employee stock-based compensation | $ 500 | $ 500 | ||||||
Unrecognized employee stock-based compensation, period for recognition | 4 years 7 months | |||||||
Accounting Standards Update 2016-09 | New Accounting Pronouncement, Early Adoption, Effect | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Cumulative effect of new accounting principle in period of adoption | $ 0 | |||||||
Accounting Standards Update 2016-09 | New Accounting Pronouncement, Early Adoption, Effect | Additional Paid-In Capital | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Cumulative effect of new accounting principle in period of adoption | $ 700 | $ 658 |
Stock-Based Compensation (Restricted Stock Units Activity) (Details) - Restricted Stock Units (RSUs) shares in Thousands |
9 Months Ended |
---|---|
Sep. 30, 2016
$ / shares
shares
| |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Beginning balance | shares | 2,647 |
Granted | shares | 2,080 |
Canceled | shares | (815) |
Vested | shares | (625) |
Ending balance | shares | 3,287 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Beginning Balance (USD per share) | $ / shares | $ 15.76 |
Granted (USD per share) | $ / shares | 13.20 |
Canceled (USD per share) | $ / shares | 14.80 |
Vested (USD per share) | $ / shares | 16.17 |
Ending Balance (USD per share) | $ / shares | $ 14.28 |
Stock-Based Compensation (Restricted Stock Units Narrative) (Details) - Restricted Stock Units (RSUs) $ in Millions |
9 Months Ended |
---|---|
Sep. 30, 2016
USD ($)
| |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized employee stock-based compensation | $ 39.6 |
Unrecognized employee stock-based compensation, period for recognition | 3 years 2 months 20 days |
Stock-Based Compensation (Employee Stock Purchase Plan Narrative) (Details) - USD ($) $ in Thousands |
1 Months Ended | 3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|---|
May 31, 2016 |
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation expense | $ 6,531 | $ 8,800 | $ 22,048 | $ 22,037 | |
Employee Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Expected term (in years) | 6 months | ||||
Expected volatility | 58.00% | ||||
Dividend yield | 0.00% | ||||
Risk-free interest rate | 0.38% | ||||
2014 Employee Stock Purchase Plan | Employee Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Maximum employee subscription rate | 10.00% | 10.00% | |||
Purchase price of common stock, percent | 85.00% | ||||
Number of Shares Reserved | 1,100,149 | 1,100,149 | |||
Increase in shares authorized, percent of outstanding stock | 1.00% | ||||
Issuance of common stock related to employee stock purchase plan (in shares) | 93,416 | ||||
Expected expense for offering period | $ 400 | $ 400 |
Stock-Based Compensation (Expense) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 6,531 | $ 8,800 | $ 22,048 | $ 22,037 |
Cost of revenue | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 91 | 65 | 261 | 177 |
Sales and marketing | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 2,054 | 2,197 | 6,711 | 5,180 |
Technology and development | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 1,287 | 1,525 | 4,461 | 3,431 |
General and administrative | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 3,099 | $ 5,013 | $ 10,615 | $ 13,249 |
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Jan. 01, 2016 |
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Income Tax Disclosure [Abstract] | |||||
Benefit for income taxes | $ (5,557) | $ (2,083) | $ (4,981) | $ (2,412) | |
Net deferred tax asset related to net operating losses for income tax benefit | $ 7,500 |
Commitments and Contingencies (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Commitments and Contingencies Disclosure [Abstract] | ||||
Operating Leases, Rent Expense | $ 4.3 | $ 3.8 | $ 12.6 | $ 9.2 |
Operating Leases Entered Since Prior Year End Future Minimum Payments Due | $ 5.0 | $ 5.0 | ||
Acquisition Fee, Percentage of Consideration Due | 2.50% |
Subsequent Event - (Details) - Subsequent Event $ in Millions |
Nov. 02, 2016
USD ($)
employee
|
---|---|
Subsequent Event [Line Items] | |
Number of employees eliminated | employee | 125 |
Percentage of employees eliminated | 19.00% |
Restructuring charges | $ 4.0 |
Restructuring cost to be saved on an annual basis | $ 18.0 |
,F&U%$%$X?SIG78X
M"89H0LL1#%+LM&EIJ)+,[RNOF4)!88K?FOF=[W71S"=0<)CB]BHB! T^P3"#S@$B\ V 3F[
M*%!GK8[8$B0-08D0! ['*%I:S5&["#*3QJ!0TBB4B$)V6 F1++"!^9'O&W_B9EF1^"A(X C$^PP4S)Y8]
MD%CS>8/P.8G5$+!1
)46%/OS"5!E06'D3\5;6]2+'[[<
M_)[GF([FF+H<9V,Q9S9%BTD?(ZI[Q$,3V:B)S)F8CYT&BZG.F/M,X=4]HI@?
M3 <38,N.K;0G8U@=FN1KI._AW?HJ7)3AR'JEFJKM@1?Y(N_0 ?]$_-"T FR8
M5+??7-(]8Q(KNX&O\JU5VQ\F!.^E'LYT(6PGM!/)NG-?'SXNQ3]02P,$%
M @ MZMB2?%CM:VU 0 900 !D !X;"]W;W)K