TABLEAU SOFTWARE INC, 10-Q filed on 11/4/2016
Quarterly Report
Document and Entity Information Statement
9 Months Ended
Sep. 30, 2016
Nov. 1, 2016
Common Class A [Member]
Nov. 1, 2016
Common Class B [Member]
Document Information [Line Items]
 
 
 
Document Type
10-Q 
 
 
Amendment Flag
false 
 
 
Document Period End Date
Sep. 30, 2016 
 
 
Document Fiscal Year Focus
2016 
 
 
Document Fiscal Period Focus
Q3 
 
 
Entity Registrant Name
TABLEAU SOFTWARE INC 
 
 
Entity Central Index Key
0001303652 
 
 
Current Fiscal Year End Date
--12-31 
 
 
Entity Filer Category
Large Accelerated Filer 
 
 
Entity Common Stock, Shares Outstanding
 
57,755,482.000 
18,336,609.000 
Condensed Consolidated Balance Sheets (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2016
Dec. 31, 2015
Current assets
 
 
Cash and cash equivalents
$ 864,593 
$ 795,900 
Accounts receivable, net of allowance for doubtful accounts of $895 and $888
136,940 
131,784 
Prepaid expenses and other current assets
27,716 
16,977 
Income taxes receivable
78 
Total current assets
1,029,254 
944,739 
Property and equipment, net
91,056 
72,350 
Goodwill
15,531 
932 
Deferred income taxes
1,455 
1,544 
Deposits and other assets
12,154 
11,146 
Total assets
1,149,450 
1,030,711 
Current liabilities
 
 
Accounts payable
6,804 
1,152 
Accrued compensation and employee related benefits
62,070 
53,003 
Other accrued liabilities
40,746 
31,838 
Income taxes payable
1,496 
1,000 
Deferred revenue
230,736 
185,608 
Total current liabilities
341,852 
272,601 
Deferred revenue
18,685 
12,903 
Other long-term liabilities
21,872 
11,262 
Total liabilities
382,409 
296,766 
Commitments and contingencies (Note 7)
   
   
Stockholders' equity
 
 
Preferred stock, $0.0001 par value, 10,000,000 shares authorized; none issued
Additional paid-in capital
965,183 
805,804 
Accumulated other comprehensive income (loss)
(2,280)
643 
Accumulated deficit
(195,870)
(72,509)
Total stockholders' equity
767,041 
733,945 
Total liabilities and stockholders' equity
1,149,450 
1,030,711 
Common Class B [Member]
 
 
Stockholders' equity
 
 
Common stock
Common Class A [Member]
 
 
Stockholders' equity
 
 
Common stock
$ 6 
$ 5 
Condensed Consolidated Balance Sheets Balance Sheet Parenthetical (USD $)
In Thousands, except Share data, unless otherwise specified
Sep. 30, 2016
Dec. 31, 2015
Allowance for Doubtful Accounts Receivable
$ 895 
$ 888 
Preferred Stock, Par Value (in USD Per Share)
$ 0.0001 
$ 0.0001 
Preferred Stock, Shares Authorized
10,000,000 
10,000,000 
Preferred Stock, Shares Issued
Common Class B [Member]
 
 
Common Stock, Par Value (in USD Per Share)
$ 0.0001 
$ 0.0001 
Common Stock, Shares Authorized
75,000,000 
75,000,000 
Common Stock, Shares Issued
18,336,609 
19,331,666 
Common Stock, Shares Outstanding
18,336,609 
19,331,666 
Common Class A [Member]
 
 
Common Stock, Par Value (in USD Per Share)
$ 0.0001 
$ 0.0001 
Common Stock, Shares Authorized
750,000,000 
750,000,000 
Common Stock, Shares Issued
57,737,702 
53,872,798 
Common Stock, Shares Outstanding
57,737,702 
53,872,798 
Condensed Consolidated Statements of Operations (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Revenues
 
 
 
 
License
$ 116,655 
$ 109,468 
$ 329,419 
$ 290,629 
Maintenance and services
89,402 
61,364 
246,871 
160,208 
Total revenues
206,057 
170,832 
576,290 
450,837 
Cost of revenues
 
 
 
 
License
1,760 
988 
4,393 
2,337 
Maintenance and services
22,270 
18,888 
66,994 
49,713 
Total cost of revenues
24,030 1
19,876 1
71,387 1
52,050 1
Gross profit
182,027 
150,956 
504,903 
398,787 
Operating expenses
 
 
 
 
Sales and marketing
114,530 1
91,589 1
340,583 1
248,840 1
Research and development
75,348 1
54,960 1
223,757 1
144,143 1
General and administrative
21,505 1
17,584 1
63,178 1
50,753 1
Total operating expenses
211,383 
164,133 
627,518 
443,736 
Operating loss
(29,356)
(13,177)
(122,615)
(44,949)
Other income, net
814 
217 
3,496 
1,404 
Loss before income tax expense (benefit)
(28,542)
(12,960)
(119,119)
(43,545)
Income tax expense (benefit)
1,719 
413 
4,242 
(1,166)
Net loss
$ (30,261)
$ (13,373)
$ (123,361)
$ (42,379)
Net loss per share:
 
 
 
 
Basic (in usd per share)
$ (0.40)
$ (0.19)
$ (1.65)
$ (0.59)
Diluted (in usd per share)
$ (0.40)
$ (0.19)
$ (1.65)
$ (0.59)
Weighted average shares used to compute net loss per share:
 
 
 
 
Basic (shares)
75,647 
72,089 
74,743 
71,341 
Diluted (shares)
75,647 
72,089 
74,743 
71,341 
Condensed Consolidated Statements of Operations Parenthetical (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Cost of revenues
 
 
 
 
Stock-based Compensation Expense
$ 2,614 
$ 1,856 
$ 8,060 
$ 4,804 
Sales and marketing
 
 
 
 
Stock-based Compensation Expense
17,487 
11,966 
51,037 
31,265 
Research and development
 
 
 
 
Stock-based Compensation Expense
23,372 
14,826 
67,880 
37,374 
General and administrative
 
 
 
 
Stock-based Compensation Expense
$ 3,910 
$ 2,925 
$ 10,977 
$ 8,834 
Condensed Consolidated Statements of Comprehensive Loss Statement (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Statement of Comprehensive Income [Abstract]
 
 
 
 
Net loss
$ (30,261)
$ (13,373)
$ (123,361)
$ (42,379)
Other comprehensive loss:
 
 
 
 
Foreign currency translation, net
(880)
(584)
(2,923)
(259)
Comprehensive loss
$ (31,141)
$ (13,957)
$ (126,284)
$ (42,638)
Condensed Consolidated Statements of Cash Flows (USD $)
In Thousands, unless otherwise specified
9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Operating activities
 
 
Net loss
$ (123,361)
$ (42,379)
Adjustments to reconcile net loss to net cash provided by operating activities
 
 
Depreciation and amortization expense
25,091 
16,221 
Stock-based compensation expense
137,954 
82,277 
Excess tax benefit from stock-based compensation
(827)
(4,688)
Deferred income taxes
282 
(3,132)
Changes in operating assets and liabilities
 
 
Accounts receivable, net
(5,150)
(16,509)
Prepaid expenses, deposits and other assets
(10,355)
(13,166)
Income taxes receivable
72 
21 
Deferred revenue
49,868 
37,807 
Accounts payable and accrued liabilities
32,043 
26,612 
Income taxes payable
517 
157 
Net cash provided by operating activities
106,134 
83,221 
Investing activities
 
 
Purchases of property and equipment
(42,334)
(32,792)
Business combinations
(16,399)
(1,000)
Net cash used in investing activities
(58,733)
(33,792)
Financing activities
 
 
Proceeds from issuance of common stock
21,203 
16,110 
Excess tax benefit from stock-based compensation
827 
4,688 
Net cash provided by financing activities
22,030 
20,798 
Effect of exchange rate changes on cash and cash equivalents
(738)
(649)
Net increase in cash and cash equivalents
68,693 
69,578 
Cash and cash equivalents
 
 
Beginning of period
795,900 
680,613 
End of period
864,593 
750,191 
Non-cash activities
 
 
Accrued purchases of property and equipment
10,928 
8,937 
Asset retirement obligations recognized, net
$ 585 
$ 447 
Description of Business
Description of Business
Description of Business
Tableau Software, Inc., a Delaware corporation, and its wholly-owned subsidiaries (the "Company," "we," "us" or "our") are headquartered in Seattle, Washington. Our software products put the power of data into the hands of everyday people, allowing a broad population of business users to engage with their data, ask questions, solve problems and create value. Based on innovative core technologies originally developed at Stanford University, our products dramatically reduce the complexity, inflexibility and expense associated with traditional business intelligence applications. We currently offer five key products: Tableau Desktop, a self-service, powerful analytics product for anyone with data; Tableau Server, a business intelligence platform for organizations; Tableau Online, a hosted software-as-a-service ("SaaS") version of Tableau Server; Tableau Public, a free cloud-based platform for analyzing and sharing public data; and Vizable, a free application used to easily analyze data on a tablet.
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies
Basis of Presentation
The accompanying unaudited condensed consolidated financial information has been prepared in accordance with generally accepted accounting principles in the United States ("GAAP") and applicable rules and regulations of the Securities and Exchange Commission ("SEC") regarding interim financial reporting. Certain information and note disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. The condensed consolidated balance sheet data as of December 31, 2015 was derived from audited financial statements, but does not include all disclosures required by GAAP. The condensed consolidated financial information should be read in conjunction with the consolidated financial statements and notes included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2015 filed with the SEC on February 25, 2016.
In the opinion of management, the accompanying unaudited condensed consolidated financial information includes all normal recurring adjustments necessary for a fair statement of the Company's financial position, results of operations, comprehensive loss and cash flows for the interim periods, but is not necessarily indicative of the results that may be expected for the year ending December 31, 2016. All intercompany accounts and transactions have been eliminated in consolidation.
Reclassifications
In the Condensed Consolidated Balance Sheets, certain prior year amounts have been reclassified to conform to the current year presentation. Specifically, "Goodwill" was previously included in the line item "Deposits and other assets" and is now separately stated. There was no change to total assets as a result of the reclassification.
Use of Estimates
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates include depreciable lives for property and equipment, stock-based compensation, income taxes, accrued liabilities and collectability of accounts receivable. Actual results could differ from those estimates.
Risks and Uncertainties
Inherent in our business are various risks and uncertainties, including our limited history of operating our business at its current scale and development of advanced technologies in a rapidly changing industry. These risks include our ability to manage our growth and our ability to attract new customers and expand sales to existing customers, as well as other risks and uncertainties. In the event that we do not successfully implement our business plan, certain assets may not be recoverable, certain liabilities may not be paid and investments in our capital stock may not be recoverable. Our success depends upon the acceptance of our technology, development of sales and distribution channels and our ability to generate significant revenues from the sale of our technology.
Segments
We follow the authoritative literature that established annual and interim reporting standards for an enterprise's operating segments and related disclosures about its products and services, geographic regions and major customers.
We operate our business as one operating segment. Our chief operating decision makers are our Chief Executive Officer and Chief Financial Officer, who review financial information presented on a consolidated basis for purposes of making operating decisions, assessing financial performance and allocating resources.
Concentrations of Risk
Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. We extend credit to customers based upon an evaluation of the customer's financial condition and generally collateral is not required. As of September 30, 2016 and December 31, 2015, no individual customer accounted for 10% or more of total accounts receivable. For the three and nine months ended September 30, 2016 and 2015, no individual customer represented 10% or more of our total revenues.
Business Combinations
As of the date of an acquisition we recognize the identifiable assets acquired and liabilities assumed at fair value. Any excess of the consideration over the fair value of identifiable net assets is recorded as goodwill. Amounts that are not part of the consideration transferred are recognized separately from a business combination and are expensed as incurred. Intangible assets acquired are measured at their acquisition date fair value using valuation techniques that are subject to judgment.
Goodwill and Intangible Assets
Intangible assets with a finite life are typically amortized over their useful lives which range from three to five years. Goodwill is tested for impairment on an annual basis in the third quarter and more frequently if circumstances indicate that the carrying value may not be recoverable. As part of our goodwill impairment test, we first perform a qualitative assessment to determine whether it is more likely than not that the fair value of our reporting unit is less than its carrying amount. For purposes of this assessment, we consider the enterprise to be the reporting unit. If we determine it is more likely than not that the fair value of our reporting unit is less than its carrying amount, we will perform a two-step quantitative impairment test. The first step is to compare the fair value of our reporting unit to its carrying value. If step one indicates that an impairment may exist, the second step is performed to measure the amount impaired, if any. Impairment is recognized when the carrying amount of goodwill exceeds its fair value. We have not had any impairments of the goodwill balance.
Recent Accounting Pronouncements
In May 2014, as part of its ongoing efforts to assist in the convergence of GAAP and International Financial Reporting Standards ("IFRS"), the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09 related to revenue recognition. The guidance sets forth a new five-step revenue recognition model that replaces the prior revenue recognition guidance in its entirety and is intended to eliminate numerous industry-specific pieces of revenue recognition guidance that have historically existed in GAAP. The underlying principle of the new standard is that a business or other organization will recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Since the issuance of ASU 2014-09, the FASB has also issued ASU 2016-08, ASU 2016-10 and ASU 2016-12, all of which clarify certain aspects of ASU 2014-09. ASU 2014-09 provides for retrospective or modified prospective methods of initial adoption and is effective for annual periods beginning after December 15, 2017 and interim periods within those annual periods. Early adoption is permitted for annual periods beginning after December 15, 2016 and interim periods within those annual periods. We are currently evaluating the method of adoption and the impact that these standards will have on our consolidated financial statements.
In August 2014, the FASB issued ASU 2014-15 related to status as a going concern. The new guidance explicitly requires that management assess an entity's ability to continue as a going concern and may require additional detailed disclosures. ASU 2014-15 is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Though permitted, we do not plan to adopt this standard early. We do not believe that this standard will have an impact on our consolidated financial statements.
In April 2015, the FASB issued ASU 2015-05 related to a customer's accounting for fees paid in a cloud computing arrangement. The new guidance requires that management evaluate each cloud computing arrangement in order to determine whether it includes a software license that must be accounted for separately from hosted services. ASU 2015-05 applies the same guidance cloud service providers use to make this determination and also eliminates the existing requirement for customers to account for software licenses they acquire by analogizing to the guidance on leases. ASU 2015-05 is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2015 and provides the option of applying the guidance prospectively to all arrangements entered into or materially modified after the effective date or on a retrospective basis. We adopted this standard prospectively in the first quarter of 2016. The adoption did not have a significant impact on our consolidated financial statements.
In February 2016, the FASB issued ASU 2016-02 related to lease accounting. The new guidance will require lessees to recognize right-of-use assets and lease liabilities on the balance sheet for operating leases that do not meet the definition of a short-term lease. ASU 2016-02 is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2018 and requires modified retrospective transition. Early adoption is permitted. We are currently evaluating the impact that this standard will have on our consolidated financial statements.
In March 2016, the FASB issued ASU 2016-09 related to stock-based compensation. The new guidance, which simplifies the accounting and presentation for share-based payments, provides for a number of amendments which impact the accounting for income taxes and the accounting for forfeitures. ASU 2016-09 is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2016 and requires varied adoption methods for each respective amendment. Though permitted, we do not plan to adopt this standard early. We are currently evaluating the impact that this standard will have on our consolidated financial statements.
Business Combination
Business Combination
Business Combinations
On March 1, 2016, we acquired HyPer, a high-performance main-memory database system, for $16.4 million in cash. Through this acquisition, we acquired new technology, capable of enhancing our key products, and additional engineering talent. We have accounted for this transaction as a business combination, and allocated $1.8 million to the acquired technology intangible asset. The remaining purchase price was recorded to goodwill which is primarily attributable to the synergies between HyPer and our key products. No other assets or liabilities were identified as part of the acquisition. A portion of the goodwill balance associated with this transaction is deductible for U.S. income tax purposes.
Pro forma results of operations for this acquisition have not been presented as the effects were not material to our consolidated financial results.
Certain employees hired in conjunction with the acquisition receive restricted stock units ("RSUs"). These awards are subject to service conditions, and certain awards are also subject to the completion of a technology milestone. We will account for these awards as a post-business combination expense.
Stockholders' Equity
Stockholders' Equity
Stockholders' Equity
Common Stock
Our certificate of incorporation, as amended and restated, authorizes us to issue 75,000,000 shares of Class B common stock, at $0.0001 par value per share, and 750,000,000 shares of Class A common stock, at $0.0001 par value per share. The rights of the holders of Class A and Class B common stock are identical, except with respect to voting and conversion. Each holder of Class B common stock is entitled to ten votes per share and each holder of Class A common stock is entitled to one vote per share. Shares of Class B common stock may be converted into Class A common stock at any time at the option of the stockholder and are automatically converted upon sale or transfer to Class A common stock, subject to certain limited exceptions. At its discretion, the board of directors may declare dividends on shares of common stock, subject to the rights of our preferred stockholders, if any. Upon liquidation or dissolution, holders of common stock will receive distributions only after preferred stock preferences have been satisfied.
Preferred Stock
Our certificate of incorporation, as amended and restated, authorizes us to issue 10,000,000 shares of preferred stock at $0.0001 par value per share. Our board of directors has the authority to provide for the issuance of all the shares in one or more series. At its discretion, our board of directors may designate the voting rights and preferences of the preferred stock.
Stock-Based Compensation
Share-Based Compensation
Stock-Based Compensation
Our 2004 Equity Incentive Plan (the "2004 Plan") authorized the granting of options to purchase shares of our Class B common stock, RSUs and other stock-based awards to our employees, consultants, officers and directors. Our 2013 Equity Incentive Plan, as amended, (the "2013 Plan" and, together with the 2004 Plan, the "Plans"), which was the successor to our 2004 Plan, authorizes the granting of options to purchase shares of our Class A common stock, RSUs and other stock-based awards to our employees, consultants, officers and directors. Options granted under the Plans may be incentive or nonstatutory stock options. Incentive stock options may only be granted to employees. The term of each option is stated in the award agreement, but shall be no more than ten years from the date of grant. The board of directors determines the period over which options and RSUs become vested. Currently, the vesting period for our options and RSUs is typically four years.
Our 2013 Employee Stock Purchase Plan ("2013 ESPP") allows eligible employees to purchase shares of our Class A common stock, at a discount, through payroll deductions of up to 15% of their eligible compensation, subject to plan limitations. The 2013 ESPP currently includes purchase periods approximately six months in duration starting on the first trading date on or after June 1st and December 1st of each year. Participants are able to purchase shares of our common stock at 85% of the lower of its fair market value on (i) the first day of the purchase period or on (ii) the purchase date, which is the last day of the purchase period.
A summary of the option activity during the nine months ended September 30, 2016 is presented below:    
 
 
Options Outstanding
 
 
Shares
 
Weighted Average Exercise Price Per Share
 
Weighted Average Remaining Contractual Term
 
Aggregate Intrinsic Value
 
 
 
 
 
 
(in years)
 
(in thousands)
Balances at December 31, 2015
 
5,953,771

 
$
8.92

 
 
 
 
Options granted
 
75,000

 
54.87

 
 
 
 
Options exercised
 
(1,186,096
)
 
8.19

 
 
 
 
Options canceled
 
(287
)
 
57.87

 
 
 
 
Options forfeited
 
(90,862
)
 
23.83

 
 
 
 
Balances at September 30, 2016
 
4,751,526

 
$
9.53

 
5.41
 
$
217,321

Vested and expected to vest at September 30, 2016
 
4,751,489

 
$
9.53

 
5.41
 
$
217,320

Exercisable at September 30, 2016
 
4,391,379

 
$
8.38

 
5.27
 
$
205,899


RSUs entitle the holder to receive shares of Class A common stock as the award vests, which is generally based on length of service. The fair value of an RSU is determined by using the closing price of our Class A common stock as reported on the New York Stock Exchange on the date of grant. Our non-vested RSUs do not have nonforfeitable rights to dividends or dividend equivalents. The intrinsic value is the difference between the current fair value of the stock and the exercise price of the stock option.
For awards subject to technology milestones, we will recognize compensation cost over the required service period if it is probable that the technology milestone will be met. If our assessment of the probability of the technology milestone being met changes, we will recognize the impact of the change in estimate in the period of the change.
A summary of the RSU activity during the nine months ended September 30, 2016 is presented below:
 
 
Number of Shares Underlying Outstanding RSUs
 
Weighted-Average Grant-Date Fair Value per RSU
Non-Vested outstanding at December 31, 2015
 
5,406,077

 
$
93.61

RSUs granted
 
4,207,257

 
44.54

RSUs vested
 
(1,421,083
)
 
93.42

RSUs forfeited
 
(496,327
)
 
72.76

Non-Vested outstanding at September 30, 2016
 
7,695,924

 
$
68.00


Stock-based compensation expense is amortized using the straight-line method over the requisite service period. As of September 30, 2016, total unrecognized compensation expense, adjusted for estimated forfeitures, related to stock options and non-vested RSUs was approximately $469.6 million which is expected to be recognized over a period of 2.8 years.
The summary of shares available for issuance of equity based awards (including stock options and RSUs) during the nine months ended September 30, 2016 is as follows:
 
 
Shares Available for Grant
 
 
2013 Plan
 
2013 ESPP
Balances at December 31, 2015
 
6,361,749

 
3,320,668

Authorized
 
3,660,223

 
732,044

Granted
 
(4,282,257
)
 
(262,668
)
Canceled
 
287

 

Forfeited
 
587,189

 

Balances at September 30, 2016
 
6,327,191

 
3,790,044

Income Taxes
Income Taxes
Income Taxes
The income tax provision for interim periods is generally determined using an estimate of our annual effective tax rate, excluding jurisdictions for which no benefit can be recognized due to valuation allowance, and adjusted for discrete items, if any, in the relevant period. However, given current and expected operating activities during the year, estimating a reliable annual effective tax rate has become increasingly difficult. Even small changes in forecasted results can produce significant changes to our annual effective tax rate. Therefore, we have determined that the actual year to date effective tax rate is the best estimate for the reporting period ended September 30, 2016. We will continue to utilize this methodology until reliable estimates of the annual effective tax rate can be made.
Our effective tax rate is impacted by and differs from the federal statutory rate primarily due to non-deductible stock-based compensation and the adverse effect of losses incurred in certain jurisdictions for which we do not realize a tax benefit. Our effective tax rate may also be adversely impacted by the amount of our income (loss) before income tax expense (benefit) relative to our income tax expense, non-deductible expenses and changes in tax law.
Our effective tax rate was (6.0)% and (3.2)% for the three months ended September 30, 2016 and 2015, respectively, and (3.6)% and 2.7% for the nine months ended September 30, 2016 and 2015, respectively. The difference in the effective tax rates is attributable to the U.S. federal and state deferred tax asset valuation allowance that was established in the fourth quarter of 2015 and period specific items that impacted the September 30, 2015 effective tax rate, related primarily to disqualifying dispositions on incentive stock options.
During the nine months ended September 30, 2016, we recognized income tax expense of $4.2 million primarily attributable to taxes in foreign jurisdictions. There was no domestic income tax benefit recorded in the current period due to our U.S. federal and state deferred tax asset valuation allowance. During the nine months ended September 30, 2015, we recognized an income tax benefit of $1.2 million, which included $1.7 million of discrete tax benefits relating to disqualifying dispositions of incentive stock options.
On July 27, 2015, the U.S. Tax Court issued an opinion related to litigation in Altera Corp v. Commissioner. This litigation relates to the treatment of stock-based compensation expense in an intercompany cost sharing arrangement with one of Altera's foreign subsidiaries. In its opinion, the U.S. Tax Court invalidated the portion of the Treasury regulations requiring the inclusion of stock-based compensation expense in such intercompany cost-sharing arrangements. On February 19, 2016, the IRS appealed the U.S. Tax Court's decision. As the final resolution of this litigation remains uncertain we have not recorded potentially favorable benefits related to the current or prior periods. We will continue to monitor developments related to this case and the potential impact of those developments on our current and future financial statements.
Commitments and Contingencies
Commitments and Contingencies
Commitments and Contingencies
Operating Lease Commitments    
As of September 30, 2016, our principal obligations consisted of obligations outstanding under non-cancellable operating leases that expire at various dates through 2029. There have been no material changes in our principal lease commitments compared to those discussed in Note 7 in our Annual Report on Form 10-K for the fiscal year ended December 31, 2015.
Contractual Commitments
Our contractual commitments are associated with agreements that are enforceable and legally binding and that specify all significant terms, including fixed or minimum services to be used, fixed, minimum or variable price provisions and the approximate timing of the transaction. Obligations under contracts that we can cancel without a significant penalty are not included. There have been no material changes in our contractual commitments compared to those discussed in Note 7 in our Annual Report on Form 10-K for the fiscal year ended December 31, 2015.
Legal Proceedings
We are subject to certain routine legal proceedings, as well as demands and claims that arise in the normal course of our business. We make a provision for a liability relating to legal matters when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. These provisions are reviewed and adjusted to reflect the impacts of negotiations, estimated settlements, legal rulings, advice of legal counsel and other information and events pertaining to a particular matter.
We are not aware of any pending legal proceedings that we believe, individually or in the aggregate, would be expected to have a material adverse effect on our business, operating results, or financial condition. We may, in the future, be party to litigation arising in the ordinary course of business, including claims that we allegedly infringe upon third party intellectual property rights. Such claims, even if not meritorious, could result in the expenditure of significant financial and management resources.
Segments and Information about Revenues by Geographic Region
Segments and Information about Revenues by Geographic Area
Segments and Information about Revenues by Geographic Area
The following table presents our revenues by geographic region of end users who purchased products or services for the periods presented below:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2016
 
2015
 
2016
 
2015
 
(in thousands)
United States and Canada
$
147,820

 
$
128,667

 
$
412,946

 
$
340,229

International
58,237

 
42,165

 
163,344

 
110,608

Total revenues
$
206,057

 
$
170,832

 
$
576,290

 
$
450,837

Net Loss Per Share
Net Loss Per Share
Net Loss Per Share
The following table presents the computation of basic and diluted net loss per share:    
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2016
 
2015
 
2016
 
2015
 
(in thousands, except per share amounts)
Net loss per share - basic and diluted
 
 
 
 
 
 
 
Net loss
$
(30,261
)
 
$
(13,373
)
 
$
(123,361
)
 
$
(42,379
)
Weighted average shares outstanding used to compute basic and diluted net loss per share
75,647

 
72,089

 
74,743

 
71,341

Net loss per share - basic and diluted
$
(0.40
)
 
$
(0.19
)
 
$
(1.65
)
 
$
(0.59
)


The following shares subject to outstanding awards were excluded from the computation of diluted net loss per share for the periods presented as their effect would have been antidilutive:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2016
 
2015
 
2016
 
2015
 
(in thousands)
Shares subject to outstanding common stock awards
12,717

 
11,431

 
12,717

 
11,431

Fair Value Measurements
Fair Value Measurements
Fair Value Measurements
We categorize assets and liabilities recorded at fair value based upon the level of judgment associated with inputs used to measure their fair value. The levels of the fair value hierarchy are as follows:
Level 1—Inputs are unadjusted quoted prices in active markets for identical assets or liabilities.
Level 2—Inputs are quoted prices for similar assets and liabilities in active markets or quoted prices for identical or similar instruments in markets that are not active and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets.
Level 3—Inputs are unobservable inputs based on our own assumptions and valuation techniques used to measure assets and liabilities at fair value. The inputs require significant management judgment or estimation.
Our assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels.
The following table presents the fair value of our financial assets using the fair value hierarchy:
 
 
September 30, 2016
Description
 
Level 1
 
Level 2
 
Level 3
 
Total
 
 
(in thousands)
Money market funds
 
$
826,173

 
$

 
$

 
$
826,173

 
 
 
 
 
 
 
 
 
 
 
December 31, 2015
Description
 
Level 1
 
Level 2
 
Level 3
 
Total
 
 
(in thousands)
Money market funds
 
$
736,806

 
$

 
$

 
$
736,806


We did not have any investments in prime money market funds as of September 30, 2016. We have no material financial assets or liabilities measured using Level 2 or Level 3 inputs.
Subsequent Events Subsequent Events
Subsequent Events
Subsequent Events
On October 27, 2016, our board of directors authorized a stock repurchase program whereby we can repurchase up to $200 million of our outstanding Class A common stock.
Summary of Significant Accounting Policies (Policies)
Basis of Presentation
The accompanying unaudited condensed consolidated financial information has been prepared in accordance with generally accepted accounting principles in the United States ("GAAP") and applicable rules and regulations of the Securities and Exchange Commission ("SEC") regarding interim financial reporting. Certain information and note disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. The condensed consolidated balance sheet data as of December 31, 2015 was derived from audited financial statements, but does not include all disclosures required by GAAP. The condensed consolidated financial information should be read in conjunction with the consolidated financial statements and notes included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2015 filed with the SEC on February 25, 2016.
In the opinion of management, the accompanying unaudited condensed consolidated financial information includes all normal recurring adjustments necessary for a fair statement of the Company's financial position, results of operations, comprehensive loss and cash flows for the interim periods, but is not necessarily indicative of the results that may be expected for the year ending December 31, 2016. All intercompany accounts and transactions have been eliminated in consolidation.
Reclassifications
In the Condensed Consolidated Balance Sheets, certain prior year amounts have been reclassified to conform to the current year presentation. Specifically, "Goodwill" was previously included in the line item "Deposits and other assets" and is now separately stated. There was no change to total assets as a result of the reclassification.
Use of Estimates
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates include depreciable lives for property and equipment, stock-based compensation, income taxes, accrued liabilities and collectability of accounts receivable. Actual results could differ from those estimates.
Risks and Uncertainties
Inherent in our business are various risks and uncertainties, including our limited history of operating our business at its current scale and development of advanced technologies in a rapidly changing industry. These risks include our ability to manage our growth and our ability to attract new customers and expand sales to existing customers, as well as other risks and uncertainties. In the event that we do not successfully implement our business plan, certain assets may not be recoverable, certain liabilities may not be paid and investments in our capital stock may not be recoverable. Our success depends upon the acceptance of our technology, development of sales and distribution channels and our ability to generate significant revenues from the sale of our technology.
Segments
We follow the authoritative literature that established annual and interim reporting standards for an enterprise's operating segments and related disclosures about its products and services, geographic regions and major customers.
We operate our business as one operating segment. Our chief operating decision makers are our Chief Executive Officer and Chief Financial Officer, who review financial information presented on a consolidated basis for purposes of making operating decisions, assessing financial performance and allocating resources.
Concentrations of Risk
Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. We extend credit to customers based upon an evaluation of the customer's financial condition and generally collateral is not required. As of September 30, 2016 and December 31, 2015, no individual customer accounted for 10% or more of total accounts receivable. For the three and nine months ended September 30, 2016 and 2015, no individual customer represented 10% or more of our total revenues.
Business Combinations
As of the date of an acquisition we recognize the identifiable assets acquired and liabilities assumed at fair value. Any excess of the consideration over the fair value of identifiable net assets is recorded as goodwill. Amounts that are not part of the consideration transferred are recognized separately from a business combination and are expensed as incurred. Intangible assets acquired are measured at their acquisition date fair value using valuation techniques that are subject to judgment.
Goodwill and Intangible Assets
Intangible assets with a finite life are typically amortized over their useful lives which range from three to five years. Goodwill is tested for impairment on an annual basis in the third quarter and more frequently if circumstances indicate that the carrying value may not be recoverable. As part of our goodwill impairment test, we first perform a qualitative assessment to determine whether it is more likely than not that the fair value of our reporting unit is less than its carrying amount. For purposes of this assessment, we consider the enterprise to be the reporting unit. If we determine it is more likely than not that the fair value of our reporting unit is less than its carrying amount, we will perform a two-step quantitative impairment test. The first step is to compare the fair value of our reporting unit to its carrying value. If step one indicates that an impairment may exist, the second step is performed to measure the amount impaired, if any. Impairment is recognized when the carrying amount of goodwill exceeds its fair value. We have not had any impairments of the goodwill balance.
Recent Accounting Pronouncements
In May 2014, as part of its ongoing efforts to assist in the convergence of GAAP and International Financial Reporting Standards ("IFRS"), the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09 related to revenue recognition. The guidance sets forth a new five-step revenue recognition model that replaces the prior revenue recognition guidance in its entirety and is intended to eliminate numerous industry-specific pieces of revenue recognition guidance that have historically existed in GAAP. The underlying principle of the new standard is that a business or other organization will recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Since the issuance of ASU 2014-09, the FASB has also issued ASU 2016-08, ASU 2016-10 and ASU 2016-12, all of which clarify certain aspects of ASU 2014-09. ASU 2014-09 provides for retrospective or modified prospective methods of initial adoption and is effective for annual periods beginning after December 15, 2017 and interim periods within those annual periods. Early adoption is permitted for annual periods beginning after December 15, 2016 and interim periods within those annual periods. We are currently evaluating the method of adoption and the impact that these standards will have on our consolidated financial statements.
In August 2014, the FASB issued ASU 2014-15 related to status as a going concern. The new guidance explicitly requires that management assess an entity's ability to continue as a going concern and may require additional detailed disclosures. ASU 2014-15 is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Though permitted, we do not plan to adopt this standard early. We do not believe that this standard will have an impact on our consolidated financial statements.
In April 2015, the FASB issued ASU 2015-05 related to a customer's accounting for fees paid in a cloud computing arrangement. The new guidance requires that management evaluate each cloud computing arrangement in order to determine whether it includes a software license that must be accounted for separately from hosted services. ASU 2015-05 applies the same guidance cloud service providers use to make this determination and also eliminates the existing requirement for customers to account for software licenses they acquire by analogizing to the guidance on leases. ASU 2015-05 is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2015 and provides the option of applying the guidance prospectively to all arrangements entered into or materially modified after the effective date or on a retrospective basis. We adopted this standard prospectively in the first quarter of 2016. The adoption did not have a significant impact on our consolidated financial statements.
In February 2016, the FASB issued ASU 2016-02 related to lease accounting. The new guidance will require lessees to recognize right-of-use assets and lease liabilities on the balance sheet for operating leases that do not meet the definition of a short-term lease. ASU 2016-02 is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2018 and requires modified retrospective transition. Early adoption is permitted. We are currently evaluating the impact that this standard will have on our consolidated financial statements.
In March 2016, the FASB issued ASU 2016-09 related to stock-based compensation. The new guidance, which simplifies the accounting and presentation for share-based payments, provides for a number of amendments which impact the accounting for income taxes and the accounting for forfeitures. ASU 2016-09 is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2016 and requires varied adoption methods for each respective amendment. Though permitted, we do not plan to adopt this standard early. We are currently evaluating the impact that this standard will have on our consolidated financial statements.
Stock-Based Compensation (Tables)
A summary of the option activity during the nine months ended September 30, 2016 is presented below:    
 
 
Options Outstanding
 
 
Shares
 
Weighted Average Exercise Price Per Share
 
Weighted Average Remaining Contractual Term
 
Aggregate Intrinsic Value
 
 
 
 
 
 
(in years)
 
(in thousands)
Balances at December 31, 2015
 
5,953,771

 
$
8.92

 
 
 
 
Options granted
 
75,000

 
54.87

 
 
 
 
Options exercised
 
(1,186,096
)
 
8.19

 
 
 
 
Options canceled
 
(287
)
 
57.87

 
 
 
 
Options forfeited
 
(90,862
)
 
23.83

 
 
 
 
Balances at September 30, 2016
 
4,751,526

 
$
9.53

 
5.41
 
$
217,321

Vested and expected to vest at September 30, 2016
 
4,751,489

 
$
9.53

 
5.41
 
$
217,320

Exercisable at September 30, 2016
 
4,391,379

 
$
8.38

 
5.27
 
$
205,899

A summary of the RSU activity during the nine months ended September 30, 2016 is presented below:
 
 
Number of Shares Underlying Outstanding RSUs
 
Weighted-Average Grant-Date Fair Value per RSU
Non-Vested outstanding at December 31, 2015
 
5,406,077

 
$
93.61

RSUs granted
 
4,207,257

 
44.54

RSUs vested
 
(1,421,083
)
 
93.42

RSUs forfeited
 
(496,327
)
 
72.76

Non-Vested outstanding at September 30, 2016
 
7,695,924

 
$
68.00

The summary of shares available for issuance of equity based awards (including stock options and RSUs) during the nine months ended September 30, 2016 is as follows:
 
 
Shares Available for Grant
 
 
2013 Plan
 
2013 ESPP
Balances at December 31, 2015
 
6,361,749

 
3,320,668

Authorized
 
3,660,223

 
732,044

Granted
 
(4,282,257
)
 
(262,668
)
Canceled
 
287

 

Forfeited
 
587,189

 

Balances at September 30, 2016
 
6,327,191

 
3,790,044

Segments and Information about Revenues by Geographic Region (Tables)
Reconciliation of Revenue from Segments to Consolidated
The following table presents our revenues by geographic region of end users who purchased products or services for the periods presented below:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2016
 
2015
 
2016
 
2015
 
(in thousands)
United States and Canada
$
147,820

 
$
128,667

 
$
412,946

 
$
340,229

International
58,237

 
42,165

 
163,344

 
110,608

Total revenues
$
206,057

 
$
170,832

 
$
576,290

 
$
450,837

Net Income (Loss) Per Share (Tables)
The following table presents the computation of basic and diluted net loss per share:    
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2016
 
2015
 
2016
 
2015
 
(in thousands, except per share amounts)
Net loss per share - basic and diluted
 
 
 
 
 
 
 
Net loss
$
(30,261
)
 
$
(13,373
)
 
$
(123,361
)
 
$
(42,379
)
Weighted average shares outstanding used to compute basic and diluted net loss per share
75,647

 
72,089

 
74,743

 
71,341

Net loss per share - basic and diluted
$
(0.40
)
 
$
(0.19
)
 
$
(1.65
)
 
$
(0.59
)
The following shares subject to outstanding awards were excluded from the computation of diluted net loss per share for the periods presented as their effect would have been antidilutive:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2016
 
2015
 
2016
 
2015
 
(in thousands)
Shares subject to outstanding common stock awards
12,717

 
11,431

 
12,717

 
11,431

Fair Value Measurements (Tables)
Fair Value of Financial Assets
The following table presents the fair value of our financial assets using the fair value hierarchy:
 
 
September 30, 2016
Description
 
Level 1
 
Level 2
 
Level 3
 
Total
 
 
(in thousands)
Money market funds
 
$
826,173

 
$

 
$

 
$
826,173

 
 
 
 
 
 
 
 
 
 
 
December 31, 2015
Description
 
Level 1
 
Level 2
 
Level 3
 
Total
 
 
(in thousands)
Money market funds
 
$
736,806

 
$

 
$

 
$
736,806

Description of Business Narrative (Details)
Sep. 30, 2016
product
Organization, Consolidation and Presentation of Financial Statements [Abstract]
 
Number of Key Products
Summary of Significant Accounting Policies (Details) (USD $)
9 Months Ended 3 Months Ended 9 Months Ended
Sep. 30, 2016
segment
Sep. 30, 2016
Minimum [Member]
Sep. 30, 2016
Maximum [Member]
Sep. 30, 2016
Accounts Receivable [Member]
Customer Concentration Risk [Member]
customer
Dec. 31, 2015
Accounts Receivable [Member]
Customer Concentration Risk [Member]
customer
Sep. 30, 2016
Sales Revenue, Net [Member]
Customer Concentration Risk [Member]
customer
Sep. 30, 2015
Sales Revenue, Net [Member]
Customer Concentration Risk [Member]
customer
Sep. 30, 2016
Sales Revenue, Net [Member]
Customer Concentration Risk [Member]
customer
Sep. 30, 2015
Sales Revenue, Net [Member]
Customer Concentration Risk [Member]
customer
Accounting Policies [Abstract]
 
 
 
 
 
 
 
 
 
Number of Operating Segments
 
 
 
 
 
 
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
 
 
 
 
 
 
 
Acquisition-Related Intangible Asset, Useful Life
 
3 years 
5 years 
 
 
 
 
 
 
Number of Customers with more than 10% of Period Receivables
 
 
 
 
 
 
 
Number of Customers with More than 10% of Period Revenue
 
 
 
 
 
Goodwill Impairment
$ 0 
 
 
 
 
 
 
 
 
Business Combination (Details) (USD $)
In Millions, unless otherwise specified
Mar. 1, 2016
Business Combinations [Abstract]
 
Business Combination Cash Paid, Net
$ 16.4 
Business Combination Acquired Technology Intangible Assets
$ 1.8 
Stockholders' Equity (Details) (USD $)
9 Months Ended
Sep. 30, 2016
votes
Dec. 31, 2015
Class of Stock [Line Items]
 
 
Preferred Stock, Shares Authorized
10,000,000 
10,000,000 
Preferred Stock, Par Value (in USD Per Share)
$ 0.0001 
$ 0.0001 
Common Class B [Member]
 
 
Class of Stock [Line Items]
 
 
Common Stock, Shares Authorized
75,000,000 
75,000,000 
Common Stock, Par Value (in USD Per Share)
$ 0.0001 
$ 0.0001 
Votes per Share Entitled to Share Holder
10 
 
Common Class A [Member]
 
 
Class of Stock [Line Items]
 
 
Common Stock, Shares Authorized
750,000,000 
750,000,000 
Common Stock, Par Value (in USD Per Share)
$ 0.0001 
$ 0.0001 
Votes per Share Entitled to Share Holder
 
Stock-Based Compensation (Details - Options) (USD $)
In Thousands, except Share data, unless otherwise specified
9 Months Ended
Sep. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
 
Options Outstanding, Shares, Beginning of Period
5,953,771 
Options Outstanding, Shares, Options Granted
75,000 
Options Outstanding, Shares, Options Exercised
(1,186,096)
Options Outstanding, Shares, Options Canceled
(287)
Options Outstanding, Shares, Options Forfeited
(90,862)
Options Outstanding, Shares, End of Period
4,751,526 
Options Outstanding, Shares, Vested and Expected to Vest
4,751,489 
Options Outstanding, Shares, Exercisable
4,391,379 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward]
 
Options Outstanding, Weighted Average Exercise Price, Beginning of Period, USD per Share
$ 8.92 
Options Outstanding, Weighted Average Exercise Price, Options Granted, USD per Share
$ 54.87 
Options Outstanding, Weighted Average Exercise Price, Options Exercised, USD per Share
$ 8.19 
Options Outstanding, Weighted Average Exercise Price, Options Canceled, USD per Share
$ 57.87 
Options Outstanding, Weighted Average Exercise Price, Options Forfeited, USD per Share
$ 23.83 
Options Outstanding, Weighted Average Exercise Price, End of Period, USD per Share
$ 9.53 
Options Outstanding, Weighted Average Exercise Price Per Share, Vested and Expected to Vest, USD per Share
$ 9.53 
Options Outstanding, Weighted Average Exercise Price Per Share, Exercisable, USD per Share
$ 8.38 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
 
Options Outstanding, Weighted Average Remaining Contractual Term, End of Period (in years)
5 years 4 months 27 days 
Options Outstanding, Weighted Average Remaining Contractual Term, Vested and Expected to Vest (in years)
5 years 4 months 27 days 
Options Outstanding, Weighted Average Remaining Contractual Term, Exercisable (in years)
5 years 3 months 7 days 
Options Outstanding, Aggregate Intrinsic Value, End of Period
$ 217,321 
Options Outstanding, Aggregate Intrinsic Value, Vested and Expected to Vest
217,320 
Options Outstanding, Aggregate Intrinsic Value, Exercisable
$ 205,899 
Stock Based Compensation (Details - RSUs) (Restricted Stock Units (RSUs) [Member], USD $)
9 Months Ended
Sep. 30, 2016
Restricted Stock Units (RSUs) [Member]
 
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]
 
RSU Shares Outstanding, Beginning of Period
5,406,077 
RSUs granted, Shares
4,207,257 
RSUs vested, Shares
(1,421,083)
RSUs forfeited, Shares
(496,327)
RSU Shares Outstanding, End of Period
7,695,924 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Weighted Average Exercise Price [Roll Forward]
 
Weighted Average Fair Value, Beginning of Period, USD per Share
$ 93.61 
Weighted Average Fair Value, RSUs Granted, USD per Share
$ 44.54 
Weighted Average Fair Value, RSUs Vested, USD per Share
$ 93.42 
Weighted Average Fair Value, RSUs Forfeited, USD per Share
$ 72.76 
Weighted Average Fair Value, End of Period, USD per Share
$ 68.00 
Stock-Based Compensation (Details - Narrative) (USD $)
In Millions, unless otherwise specified
9 Months Ended
Sep. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Option expiration period (in years)
10 years 
Vesting period (in years)
4 years 
Unrecognized compensation expense
$ 469.6 
Recognition period (in years)
2 years 9 months 18 days 
ESPP [Member]
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Maximum Payroll Deduction, Percent
15.00% 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Purchase Period
6 months 
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent
85.00% 
Stock-Based Compensation (Details - Shares Available)
9 Months Ended
Sep. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award, Equity Awards, Outstanding [Roll Forward]
 
Granted, Shares
(75,000)
2013 Plan [Member]
 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Awards, Outstanding [Roll Forward]
 
Equity Based Awards, Beginning of Period, Shares
6,361,749 
Authorized, Shares
3,660,223 
Granted, Shares
(4,282,257)
Canceled, Shares
287 
Forfeited, Shares
587,189 
Equity Based Awards, End of Period, Shares
6,327,191 
ESPP [Member] |
Common Class A [Member]
 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Awards, Outstanding [Roll Forward]
 
Equity Based Awards, Beginning of Period, Shares
3,320,668 
Authorized, Shares
732,044 
Granted, Shares
(262,668)
Canceled, Shares
Forfeited, Shares
Equity Based Awards, End of Period, Shares
3,790,044 
Income Taxes - Narrative (Details) (USD $)
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Income Tax Disclosure [Abstract]
 
 
 
 
Effective tax rate
(6.00%)
(3.20%)
(3.60%)
2.70% 
Income tax expense (benefit)
$ 1,719,000 
$ 413,000 
$ 4,242,000 
$ (1,166,000)
Discrete tax benefit related to dispositions on incentive stock options
 
 
 
$ 1,700,000 
Segments and Information about Revenues by Geographic Region (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Segment Reporting Information [Line Items]
 
 
 
 
Revenues
$ 206,057 
$ 170,832 
$ 576,290 
$ 450,837 
United States and Canada [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Revenues
147,820 
128,667 
412,946 
340,229 
International [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Revenues
$ 58,237 
$ 42,165 
$ 163,344 
$ 110,608 
Net Income (Loss) Per Share (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Earnings Per Share [Abstract]
 
 
 
 
Net loss
$ (30,261)
$ (13,373)
$ (123,361)
$ (42,379)
Weighted average shares outstanding used to compute basic and diluted net loss per share
75,647 
72,089 
74,743 
71,341 
Net loss per share - basic and diluted, USD per share
$ (0.40)
$ (0.19)
$ (1.65)
$ (0.59)
Antidilutive shares excluded from computation of diluted net loss
12,717 
11,431 
12,717 
11,431 
Fair Value Measurements (Details) (Money Market Funds [Member], USD $)
In Thousands, unless otherwise specified
Sep. 30, 2016
Dec. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Investments Fair Value
$ 826,173 
$ 736,806 
Level 1 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Investments Fair Value
826,173 
736,806 
Level 2 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Investments Fair Value
Level 3 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Investments Fair Value
$ 0 
$ 0 
Subsequent Events Subsequent Events (Details) (Subsequent Event, USD $)
In Millions, unless otherwise specified
Oct. 27, 2016
Subsequent Event
 
Subsequent Event [Line Items]
 
Authorized Class A Common Stock Repurchase Amount
$ 200