CASTLIGHT HEALTH, INC., 10-Q filed on 5/10/2016
Quarterly Report
Document and Entity Information
3 Months Ended
Mar. 31, 2016
May 6, 2016
Class A [Member]
May 6, 2016
Class B [Member]
Class of Stock [Line Items]
 
 
 
Document Type
10-Q 
 
 
Amendment Flag
false 
 
 
Document Period End Date
Mar. 31, 2016 
 
 
Document Fiscal Year Focus
2016 
 
 
Document Fiscal Period Focus
Q1 
 
 
Trading Symbol
CSLT 
 
 
Entity Registrant Name
CASTLIGHT HEALTH, INC. 
 
 
Entity Central Index Key
0001433714 
 
 
Current Fiscal Year End Date
--12-31 
 
 
Entity Filer Category
Accelerated Filer 
 
 
Entity Common Stock, Shares Outstanding
 
54,504,065 
42,382,263 
Consolidated Balance Sheets (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2016
Dec. 31, 2015
Current assets:
 
 
Cash and cash equivalents
$ 35,111 
$ 19,150 
Marketable securities
85,385 
101,274 
Accounts receivable, net
14,033 
12,751 
Deferred commissions
4,627 
5,438 
Prepaid expenses and other current assets
4,314 
3,772 
Total current assets
143,470 
142,385 
Property and equipment, net
6,612 
6,896 
Marketable securities, noncurrent
13,335 
Restricted cash, noncurrent
1,000 
1,000 
Deferred commissions, noncurrent
4,861 
4,923 
Other assets
4,669 
4,735 
Total assets
160,612 
173,274 
Current liabilities:
 
 
Accounts payable
4,105 
3,384 
Accrued expenses and other current liabilities
7,111 
4,550 
Accrued compensation
5,249 
11,477 
Deferred revenue
31,622 
26,590 
Total current liabilities
48,087 
46,001 
Deferred revenue, noncurrent
6,902 
7,522 
Other liabilities, noncurrent
1,761 
1,397 
Total liabilities
56,750 
54,920 
Commitments and contingencies
   
   
Stockholders’ equity (deficit):
 
 
Additional paid-in capital
422,279 
415,519 
Accumulated other comprehensive income
24 
(79)
Accumulated deficit
(318,451)
(297,096)
Total stockholders’ equity (deficit)
103,862 
118,354 
Total liabilities, convertible preferred stock and stockholders’ equity (deficit)
160,612 
173,274 
Class A [Member]
 
 
Stockholders’ equity (deficit):
 
 
Common stock value issued
Class B [Member]
 
 
Stockholders’ equity (deficit):
 
 
Common stock value issued
$ 4 
$ 4 
Consolidated Statements of Operations (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Revenue:
 
 
Subscription
$ 21,037 
$ 14,906 
Professional services
1,680 
1,045 
Total revenue
22,717 
15,951 
Cost of revenue:
 
 
Cost of subscription
4,136 1
2,519 1
Cost of professional services
5,113 1
4,653 1
Total cost of revenue
9,249 
7,172 
Gross profit
13,468 
8,779 
Operating expenses:
 
 
Sales and marketing
16,282 1
16,463 1
Research and development
10,085 1
6,594 1
General and administrative
8,545 1
5,463 1
Total operating expenses
34,912 
28,520 
Operating loss
(21,444)
(19,741)
Other income, net
89 
98 
Net loss
$ (21,355)
$ (19,643)
Net loss per Class A and B share, basic and diluted
$ (0.22)
$ (0.21)
Weighted-average shares used to compute basic and diluted net loss per Class A and B share
96,291 
91,786 
Consolidated Statements of Operations Parenthetical (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Cost of subscription [Member]
 
 
Allocated Share-based Compensation Expense
$ 108 
$ 33 
Cost of professional services [Member]
 
 
Allocated Share-based Compensation Expense
477 
425 
Sales and marketing [Member]
 
 
Allocated Share-based Compensation Expense
2,235 
1,751 
Research and development [Member]
 
 
Allocated Share-based Compensation Expense
1,405 
633 
General and administrative [Member]
 
 
Allocated Share-based Compensation Expense
$ 1,269 
$ 1,027 
Consolidated Statements of Comprehensive Loss (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Statement of Comprehensive Income [Abstract]
 
 
Net loss
$ (21,355)
$ (19,643)
Other comprehensive income:
 
 
Net change in unrealized gain on available-for-sale marketable securities
103 
42 
Reclassification adjustments for net realized gains on available-for-sale marketable securities
Other comprehensive income
103 
42 
Comprehensive loss
$ (21,252)
$ (19,601)
Consolidated Statements of Cash Flows (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Operating activities:
 
 
Net loss
$ (21,355)
$ (19,643)
Adjustments to reconcile net loss to net cash used in operating activities:
 
 
Depreciation and amortization
783 
454 
Stock-based compensation
5,494 
3,869 
Amortization of deferred commissions
1,162 
857 
Accretion and amortization of marketable securities
176 
443 
Changes in operating assets and liabilities:
 
 
Accounts receivable
(1,282)
609 
Deferred commissions
(289)
(638)
Prepaid expenses and other assets
36 
30 
Accounts payable
605 
1,512 
Accrued expenses and other liabilities
(3,732)
(4,403)
Deferred revenue
4,412 
3,721 
Net cash used in operating activities
(13,990)
(13,189)
Investing activities:
 
 
Purchase of property and equipment
(466)
(887)
Purchase of marketable securities
(29,486)
(13,034)
Sales of marketable securities
5,000 
Maturities of marketable securities
58,637 
30,180 
Net cash provided by investing activities
28,685 
21,259 
Financing activities:
 
 
Proceeds from the exercise of stock options
1,266 
1,640 
Payments of deferred offering costs
(94)
Net cash provided by financing activities
1,266 
1,546 
Net increase in cash and cash equivalents
15,961 
9,616 
Cash and cash equivalents at beginning of period
19,150 
17,425 
Cash and cash equivalents at end of period
$ 35,111 
$ 27,041 
Organization and Description of Business
Organization and Description of Business
Organization and Description of Business
Description of Business
Castlight offers a health benefits platform that engages employees to make better health care decisions and enables employers to communicate and measure their benefit programs. We provide a simple, personalized, and powerful way for employees to shop for and manage their health care. At the same time, we enable employers to understand their employees’ needs and guide them to the right care, right providers and right programs at the right time. Our comprehensive technology offering aggregates complex, large-scale data and applies sophisticated analytics to make health care data transparent and useful. We were incorporated in the State of Delaware in January 2008. Our principal executive offices are located in San Francisco, California.
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies
Basis of Presentation and Principles of Consolidation
The accompanying unaudited condensed consolidated financial statements were prepared in accordance with U.S. generally accepted accounting principles (GAAP), for interim financial information and with the instructions to Form 10-Q and Article 10 of Securities and Exchange Commission (SEC), Regulation S-X. In the opinion of management, the information herein reflects all adjustments, consisting only of normal recurring adjustments except as otherwise noted, considered necessary for a fair statement of results of operations, financial position and cash flows. The condensed consolidated financial statements include the results of Castlight and its wholly owned U.S. subsidiary. The results for the interim periods presented are not necessarily indicative of the results expected for any future period.
The condensed consolidated balance sheet as of December 31, 2015 included herein was derived from the audited financial statements as of that date. The following information should be read in conjunction with the audited financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2015. There have been no changes to our significant accounting policies described in our Annual Report on Form 10-K that have had a material impact on our condensed consolidated financial statements and related notes.
Use of Estimates
The preparation of condensed consolidated financial statements in conformity with GAAP requires us to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements, as well as the reported amounts of revenue and expenses during the reporting period. These estimates include, but are not limited to, the determination of the relative selling prices for our services, certain assumptions used in the valuation of our equity awards, annual bonus attainment and the capitalization and estimated useful life of internal-use software development costs. Actual results could differ from those estimates, and such differences could be material to our consolidated financial position and results of operations.
Recently Issued and Adopted Accounting Pronouncements
In March 2016, the Financial Accounting Standards Board (FASB) issued a new accounting standard that will change how companies account for certain aspects of share-based payments to employees. The standard is intended to simplify several areas of accounting for share-based compensation arrangements, including the income tax impact, classification on the statement of cash flows and forfeitures. The standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, and early adoption is permitted in any interim or annual period. Accordingly, the standard is effective for us beginning January 1, 2017, and we are currently evaluating the impact that the standard will have on our consolidated financial statements.

In February 2016, the FASB issued a new accounting standard that would require lessees to put all leases on their balance sheets, whether operating or financing, while continuing to recognize the expenses on their income statements in a manner similar to current practice. The guidance states that a lessee would recognize a lease liability for the obligation to make lease payments and a right-to-use asset for the right to use the underlying asset for the lease term. The guidance will be effective for us beginning January 1, 2019. We are evaluating the accounting, transition and disclosure requirements of the standard and cannot currently estimate the financial statement impact of adoption. At this point in time, we do not intend to adopt the standard early.

In January 2016, the FASB issued a new accounting standard which addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The guidance provides a new measurement alternative for equity investments that don’t have readily determinable fair values and don’t qualify for the net asset value practical expedient. Under this alternative, these investments can be measured at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment if the same issuer. This guidance will be effective for us beginning January 1, 2018 and earlier adoption is not permitted. We are evaluating the accounting, transition and disclosure requirements of the standard and cannot currently estimate the financial statement impact of adoption at this point in time.

In April 2015, the FASB issued new accounting guidance on Customer's Accounting for Fees Paid in a Cloud Computing Arrangement. This guidance is intended to help entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement, primarily to determine whether the arrangement includes a sale or license of software. We adopted this guidance on January 1, 2016 and it does not impact our financial statements.
In May 2014, the FASB issued new guidance for recognizing revenue for the transfer of promised goods or services to customers with the consideration to which the entity expects to be entitled in exchange for those goods or services. In August 2015, the FASB deferred the effective date of the standard for all entities by one year. The standard will become effective for the annual reporting period (including interim reporting periods) beginning after December 15, 2017, and early adoption is permitted as of annual reporting periods (including interim periods) beginning after December 15, 2016. We are evaluating the accounting, transition and disclosure requirements of the standard and cannot currently estimate the financial statement impact of adoption. At this point in time, we do not intend to adopt the standard early.
Marketable Securities
Marketable Securities
Marketable Securities

All of our cash equivalents and marketable securities are classified as “available-for-sale” securities. These securities are reported at fair value, with the related unrealized gains and losses included in accumulated other comprehensive income, a component of shareholders’ equity.

At March 31, 2016 and December 31, 2015, respectively, marketable securities consisted of the following (in thousands):
 
 
Amortized
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Fair Value
March 31, 2016
 
 
 
 
 
 
 
U.S. agency obligations
$
73,633

 
$
17

 
$
(3
)
 
$
73,647

U.S. treasury securities
26,329

 
10

 

 
26,339

Money market mutual funds
9,043

 

 

 
9,043

 
109,005

 
27

 
(3
)
 
109,029

Included in cash and cash equivalents
23,644

 

 

 
23,644

Included in marketable securities
$
85,361

 
$
27

 
$
(3
)
 
$
85,385


 
Amortized
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Fair Value
December 31, 2015
 
 
 
 
 
 
 
U.S. agency obligations
$
83,763

 
$

 
$
(48
)
 
$
83,715

U.S. treasury securities
33,924

 

 
(31
)
 
33,893

Money market mutual funds
1,038

 

 

 
1,038

 
118,725

 

 
(79
)
 
118,646

Included in cash and cash equivalents
4,038

 

 
(1
)
 
4,037

Included in marketable securities
$
101,334

 
$

 
$
(60
)
 
$
101,274

Included in marketable securities, noncurrent
$
13,353

 
$

 
$
(18
)
 
$
13,335

Fair Value Measurements
Fair Value Measurements
Fair Value Measurements
We measure our financial assets and liabilities at fair value at each reporting period using a fair value hierarchy that requires that we maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s classification within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Three levels of inputs may be used to measure fair value:
Level 1—Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.
Level 2—Include other inputs that are directly or indirectly observable in the marketplace.
Level 3—Unobservable inputs that are supported by little or no market activity.
The fair value of marketable securities included in the Level 2 category is based on observable inputs, such as quoted prices for similar assets at the measurement date; quoted prices in markets that are not active; or other inputs that are observable, either directly or indirectly. These values were obtained from a third-party pricing service and were evaluated using pricing models that vary by asset class and may incorporate available trade, bid and other market information and price quotes from well-established third party pricing vendors and broker-dealers. There have been no changes in valuation techniques in the periods presented. We have no financial assets or liabilities measured using Level 3 inputs. There were no significant transfers between Levels 1 and 2 assets as of March 31, 2016 and December 31, 2015. The following tables present information about our assets that are measured at fair value on a recurring basis using the above input categories (in thousands):
 
 
Level 1
 
Level 2
 
Total
March 31, 2016
 
 
 
 
 
Cash equivalents:
 
 
 
 
 
Money market mutual funds
$
9,043

 
$

 
$
9,043

U.S. agency obligations

 
14,601

 
14,601

Marketable securities:
 
 
 
 
 
U.S. agency obligations

 
59,046

 
59,046

U.S. treasury securities

 
26,339

 
26,339

 
$
9,043

 
$
99,986

 
$
109,029

 
 
Level 1
 
Level 2
 
Total
December 31, 2015
 
 
 
 
 
Cash equivalents:
 
 
 
 
 
Money market mutual funds
$
1,038

 
$

 
$
1,038

U.S. agency obligations

 
3,000

 
3,000

Marketable securities:
 
 
 
 
 
U.S. agency obligations

 
80,715

 
80,715

U.S. treasury securities

 
33,893

 
33,893

 
$
1,038


$
117,608


$
118,646


Gross unrealized gains and losses for cash equivalents and marketable securities as of March 31, 2016 and December 31, 2015 were not material. We do not believe the unrealized losses represent other-than-temporary impairments based on our evaluation of available evidence as of March 31, 2016 and December 31, 2015.
There were no realized gains or losses during the three months ended March 31, 2016. All of our marketable securities at March 31, 2016 mature within one year. As of December 31, 2015, those securities with maturities greater than one year are reflected in the noncurrent portion of our condensed consolidated balance sheets. Marketable securities on the balance sheets consist of securities with original or remaining maturities at the time of purchase of greater than three months, and the remainder of the securities is reflected in cash and cash equivalents.
Property and equipment, net
Property and equipment
Property and Equipment
Property and equipment consisted of the following (in thousands):
 
As of
 
March 31, 2016
 
December 31, 2015
Leasehold improvements
$
2,145

 
$
2,046

Computer equipment
4,727

 
4,345

Software
885

 
885

Capitalization of internal-use software
2,925

 
2,925

Furniture and equipment
853

 
853

Total
11,535

 
11,054

Accumulated depreciation
(4,923
)
 
(4,158
)
Property and equipment, net
$
6,612

 
$
6,896


Depreciation and amortization expense for the three months ended March 31, 2016 and 2015, was $0.8 million and $0.5 million, respectively. Depreciation and amortization are recorded on a straight-line basis.
Related Party Transactions (Notes)
Related Party Transactions and Variable Interest Entity
Note 6. Related Party Transactions and Variable Interest Entity

In the second quarter of 2015, we announced a strategic alliance with Lyra Health ("Lyra"), to develop and bring to market an integrated behavioral health solution. In connection with this strategic alliance, Castlight made an initial preferred stock investment in Lyra of $3.1 million and our chief executive officer, Dr. Colella, joined the Lyra board. Additionally, we made a subsequent preferred stock investment in Lyra of $1.0 million in August 2015. In March of 2016, we amended the strategic alliance to modify the manner in which we collaborate with Lyra on the solution. In connection with this amendment, Dr. Colella ceased service on the Lyra board of directors. Lyra is considered a related party to us because two of our directors, Dr. Roberts and Mr. Ebersman, serve on the Lyra board of directors and Mr. Ebersman is the Lyra chief executive officer. An independent committee of Castlight's board of directors, comprised of directors without any involvement in any external behavioral health business initiatives, approved the strategic alliance with and investment in Lyra.
    
We have evaluated all our transactions with Lyra and have determined that Lyra is a variable interest entity (“VIE”) for Castlight. In determining that we are not the VIE's primary beneficiary, we considered qualitative and quantitative factors, including, but not limited to: which activities most significantly impact the VIE’s economic performance and which party controls such activities; the characteristics of our involvement; and the obligation or likelihood for us to provide incremental financial support. Based on our evaluation, we determined we are not required to consolidate the operations of the VIE. Our maximum exposure to loss as a result of our involvement with this unconsolidated VIE is limited to our investment of $4.1 million and we are not obligated to provide incremental financial support to Lyra.

The investment in Lyra is accounted for under the cost method and is included under other assets in our consolidated financial statements. We have not estimated the fair value of our investment because there have been no identified events or changes in circumstances that may have a significant adverse effect on the fair value of the investment. We assess our investment for impairment on a quarterly basis or based on facts or circumstances that may require us to reassess the fair value of our investment. Based on the facts and circumstances as of March 31, 2016, we concluded that our investment was appropriately valued.
Deferred Revenue
Deferred Revenue
Deferred Revenue
Deferred revenue consisted of the following (in thousands):
 
As of
 
March 31, 2016
 
December 31, 2015
Subscription
$
23,133

 
$
18,029

Professional services—implementation
5,187

 
5,254

Professional services—communications
3,302

 
3,307

Total current
31,622

 
26,590

Subscription
600

 
1,163

Professional services—implementation
5,239

 
5,367

Professional services—communications
1,063

 
992

Total noncurrent
6,902

 
7,522

Total
$
38,524

 
$
34,112

Commitments and Contingencies
Commitments and Contingencies
Commitments and Contingencies
Legal Matters
On April 2, April 16, April 29, and May 4, 2015, purported securities class action lawsuits were filed in the Superior Court of the State of California, County of San Mateo, against us, certain of our current and former directors, executive officers, significant stockholders and underwriters associated with our initial public offering (IPO). The lawsuits, which were consolidated on July 22, 2015, were brought by purported stockholders of our company seeking to represent a class consisting of all those who purchased our stock pursuant or traceable to the Registration Statement and Prospectus issued in connection with our IPO. A consolidated complaint (“Complaint”) was filed on July 23, 2015, alleging claims under Sections 11, 12(a)(2) and 15 of the Securities Act of 1933. On September 22, 2015 we filed a demurrer to the Complaint. After briefing and argument, the Court overruled the demurrer as to Plaintiffs’ claims under Sections 11 and 15 and granted with leave to amend, the demurrer to Plaintiff’s claims under Section 12(a)(2). Plaintiffs filed an amended consolidated complaint (“Amended Complaint”) on November 10, 2015. On December 10, 2015, we filed a demurrer to the Section 12(a)(2) claim in the Amended Complaint. On January 28, 2016, the Court again sustained the demurrer to the Section 12(a)(2) claim in the amended Complaint. The Amended Complaint sought unspecified damages and other relief. On March 28, 2016, the parties to the consolidated actions reached a mutually acceptable resolution by way of a mediated cash settlement. The aggregate amount of the settlement under the agreement in principle is $9.5 million. As a result of the settlement the Company recorded a net charge of $2.7 million to general and administrative expense during the first quarter of 2016, which is expected to be paid out by the Company in the second or third quarter of 2016. This amount represents the charge for this matter that was not covered by insurance. While the Company believes it has meritorious defenses to the litigation, the Company is satisfied with this resolution given the risks and expenses associated with further litigation. The settlement is subject to final documentation and court approval. We accrue for loss contingencies when it is both probable that we will incur the loss and when we can reasonably estimate the amount of the loss or range of loss.
From time to time, we may become subject to other legal proceedings, claims or litigation arising in the ordinary course of business. In addition, we may receive letters alleging infringement of patents or other intellectual property rights. If an unfavorable outcome were to occur in litigation, the impact could be material to our business, financial condition, cash flow or results of operations, depending on the specific circumstances of the outcome.
    
Leases and Contractual Obligations

Our principal commitments primarily consist of obligations under leases for office space and co-location facilities for data center capacity. Our existing lease agreements provide us with the option to renew and generally provide for rental payments on a graduated basis. Our future operating lease obligations would change if we entered into additional operating lease agreements as we expand our operations and if we exercised these options.
There were no other material changes in our contractual obligations from those disclosed in our Annual Report on Form 10-K for the year ended December 31, 2015. Please see Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Liquidity and Capital Resources” in our Annual Report on Form 10-K for a description of our contractual obligations.
Stockholders' Equity
Stockholders' Equity
Stockholders’ Equity
Common Stock
As of March 31, 2016, we had 54,517,785 shares of Class A common stock and 42,360,686 shares of Class B common stock outstanding.
Stock Options Activity
A summary of stock option activity for the three months ended March 31, 2016 is as follows (in thousands, except share and per share amounts): 
 
Options
Outstanding
 
Weighted-
Average
Exercise
Price
 
Aggregate
Intrinsic
Value
Balance at December 31, 2015
9,561,713

 
$
5.62

 
$
16,694

Stock option grants
3,223,396

 
$
2.99

 
 
Stock options exercised
(858,273
)
 
$
1.48

 
 
Stock options canceled
(2,917,084
)
 
$
10.78

 
 
Balance at March 31, 2016
9,009,752

 
$
3.41

 
$
10,651


The total grant-date fair value of stock options granted during the three months ended March 31, 2016 and 2015 was $2.5 million and $2.1 million, respectively.
The fair value of each option grant was estimated on the date of grant using the Black-Scholes option-valuation model with the following assumptions and fair value per share:
 
Three Months Ended March 31,
 
2016
 
2015
Volatility
45%
 
53%
Expected life (in years)
6.0
 
6.2
Risk-free interest rate
1.37
 
1.38%-1.79%
Dividend yield
—%
 
—%

As of March 31, 2016, we had $18.8 million in unrecognized compensation cost related to non-vested stock options, which is expected to be recognized over a weighted-average period of approximately 2.5 years.

The options granted and cancelled in the three months ended March 31, 2016 in the table above include options that were exchanged under the Company’s stock option exchange program. Pursuant to the stock option exchange program, 108 out of 132 eligible employees tendered options covering an aggregate of 2,685,396 shares of our Class A and Class B common stock at a weighted average exercise price of $11.03, in exchange for options to purchase 2,685,396 shares of our Class B common stock at an exercise price of $2.99 per share, the closing sale price reported on the New York Stock Exchange on February 24, 2016. Each new grant began a new vesting period commencing on the date of grant over five years in equal monthly installments. As of February 15, 2016 the incremental expense related to this offer was $1.8 million, which will be recognized over five years.

For more information, refer to our Tender Offer Statement filed with the Securities and Exchange Commission on January 12, 2016, as amended on January 28, 2016 and February 26, 2016.

Restricted Stock Units

A summary of restricted stock unit activity for the three months ended March 31, 2016 is as follows:
 
Number of
Shares
Outstanding
 
Weighted-
Average
Grant Date Fair Value
Balance at December 31, 2015
6,685,118

 
$
7.63

Restricted Stock Units granted (1)
2,613,100

 
$
2.99

Restricted Stock Units vested
(402,106
)
 
$
9.09

Restricted Stock Units forfeited/cancelled (2)
(440,193
)
 
$
8.42

Balance at March 31, 2016
8,455,919

 
$
6.09

(1) Includes PSUs that were granted in February 2016.
(2) Includes PSUs that were granted in the prior year, which were cancelled because performance targets were not achieved.
As of March 31, 2016, there was a total of $43.3 million in unrecognized compensation cost related to restricted stock units, which is expected to be recognized over a weighted-average period of approximately 3.3 years.
In February 2016, we awarded performance stock units (PSUs) to certain employees. The number of shares that will eventually vest depends on achievement of performance targets for 2016, as determined by the compensation committee of our board of directors, and may range from 0 to 150% of the targeted award amount. Once the performance is determined and a targeted award amount is fixed, the target number of PSUs, if any, will vest in eight quarterly installments, subject to recipients' continued service, beginning on February 16, 2017. The compensation expense associated with the PSUs is recognized using the accelerated method.
Income Taxes
Income Taxes
Income Taxes
The effective tax rate for the three months ended March 31, 2016 and 2015 was zero percent, primarily as a result of the estimated tax loss for the year and the change in valuation allowance. At March 31, 2016, all unrecognized tax benefits are subject to a full valuation allowance and, if recognized, will not affect the effective tax rate.
Net Loss per Share
Net Loss per Share
Net Loss per Share
Basic net loss per share is computed by dividing the net loss by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by giving effect to all potential shares of common stock, including Preferred Stock and outstanding stock options and warrants, to the extent dilutive. Basic and diluted net loss per share was the same for each period presented as the inclusion of all potential shares of common stock outstanding would have been anti-dilutive.
Net loss is allocated based on the contractual participation rights of the Class A and Class B common stock as if the earnings for the year have been distributed. As the liquidation and dividend rights are identical, the net loss is allocated on a proportionate basis.
The following table presents the calculation of basic and diluted net loss per share for our common stock (in thousands, except per share data):
 
Three Months Ended March 31,
 
2016
 
2015
 
Class A
 
Class B
 
Class A
 
Class B
Net loss
$
(12,091
)
 
$
(9,264
)
 
$
(12,562
)
 
$
(7,081
)
Weighted-average shares used to compute basic and diluted net loss per share
54,518

 
41,773

 
58,698

 
33,088

Basic and diluted net loss per share
$
(0.22
)
 
$
(0.22
)
 
$
(0.21
)
 
$
(0.21
)

The following securities were excluded from the calculation of diluted net loss per share for common stock because their effect would have been anti-dilutive for the periods presented (in thousands):
 
Three Months Ended March 31,
 
2016
 
2015
Stock options and restricted stock units
20,172

 
15,898

Warrants
115

 
115

Total
20,287

 
16,013

Subsequent Events
Subsequent Events
Subsequent Events

On May 10, 2016the Company’s Board of Directors committed to a program to reduce its workforce in order to reduce expenses, align its operations with evolving business needs and improve efficiencies. Under this program, the Company intends to reduce its workforce by fourteen percent. Accordingly, the Company expects to incur charges of approximately $0.8 million in the second quarter of 2016, all of which will be related to severance costs and will result in cash expenditures. The actions associated with this program are expected to be fully completed by December 31, 2016.
Summary of Significant Accounting Policies (Policies)
Basis of Presentation and Principles of Consolidation
The accompanying unaudited condensed consolidated financial statements were prepared in accordance with U.S. generally accepted accounting principles (GAAP), for interim financial information and with the instructions to Form 10-Q and Article 10 of Securities and Exchange Commission (SEC), Regulation S-X. In the opinion of management, the information herein reflects all adjustments, consisting only of normal recurring adjustments except as otherwise noted, considered necessary for a fair statement of results of operations, financial position and cash flows. The condensed consolidated financial statements include the results of Castlight and its wholly owned U.S. subsidiary. The results for the interim periods presented are not necessarily indicative of the results expected for any future period.
The condensed consolidated balance sheet as of December 31, 2015 included herein was derived from the audited financial statements as of that date. The following information should be read in conjunction with the audited financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2015. There have been no changes to our significant accounting policies described in our Annual Report on Form 10-K that have had a material impact on our condensed consolidated financial statements and related notes.
Use of Estimates
The preparation of condensed consolidated financial statements in conformity with GAAP requires us to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements, as well as the reported amounts of revenue and expenses during the reporting period. These estimates include, but are not limited to, the determination of the relative selling prices for our services, certain assumptions used in the valuation of our equity awards, annual bonus attainment and the capitalization and estimated useful life of internal-use software development costs. Actual results could differ from those estimates, and such differences could be material to our consolidated financial position and results of operations.
Recently Issued and Adopted Accounting Pronouncements
In March 2016, the Financial Accounting Standards Board (FASB) issued a new accounting standard that will change how companies account for certain aspects of share-based payments to employees. The standard is intended to simplify several areas of accounting for share-based compensation arrangements, including the income tax impact, classification on the statement of cash flows and forfeitures. The standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, and early adoption is permitted in any interim or annual period. Accordingly, the standard is effective for us beginning January 1, 2017, and we are currently evaluating the impact that the standard will have on our consolidated financial statements.

In February 2016, the FASB issued a new accounting standard that would require lessees to put all leases on their balance sheets, whether operating or financing, while continuing to recognize the expenses on their income statements in a manner similar to current practice. The guidance states that a lessee would recognize a lease liability for the obligation to make lease payments and a right-to-use asset for the right to use the underlying asset for the lease term. The guidance will be effective for us beginning January 1, 2019. We are evaluating the accounting, transition and disclosure requirements of the standard and cannot currently estimate the financial statement impact of adoption. At this point in time, we do not intend to adopt the standard early.

In January 2016, the FASB issued a new accounting standard which addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The guidance provides a new measurement alternative for equity investments that don’t have readily determinable fair values and don’t qualify for the net asset value practical expedient. Under this alternative, these investments can be measured at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment if the same issuer. This guidance will be effective for us beginning January 1, 2018 and earlier adoption is not permitted. We are evaluating the accounting, transition and disclosure requirements of the standard and cannot currently estimate the financial statement impact of adoption at this point in time.

In April 2015, the FASB issued new accounting guidance on Customer's Accounting for Fees Paid in a Cloud Computing Arrangement. This guidance is intended to help entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement, primarily to determine whether the arrangement includes a sale or license of software. We adopted this guidance on January 1, 2016 and it does not impact our financial statements.
In May 2014, the FASB issued new guidance for recognizing revenue for the transfer of promised goods or services to customers with the consideration to which the entity expects to be entitled in exchange for those goods or services. In August 2015, the FASB deferred the effective date of the standard for all entities by one year. The standard will become effective for the annual reporting period (including interim reporting periods) beginning after December 15, 2017, and early adoption is permitted as of annual reporting periods (including interim periods) beginning after December 15, 2016. We are evaluating the accounting, transition and disclosure requirements of the standard and cannot currently estimate the financial statement impact of adoption. At this point in time, we do not intend to adopt the standard early.
Marketable Securities (Tables)
Available-for-sale Securities
At March 31, 2016 and December 31, 2015, respectively, marketable securities consisted of the following (in thousands):
 
 
Amortized
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Fair Value
March 31, 2016
 
 
 
 
 
 
 
U.S. agency obligations
$
73,633

 
$
17

 
$
(3
)
 
$
73,647

U.S. treasury securities
26,329

 
10

 

 
26,339

Money market mutual funds
9,043

 

 

 
9,043

 
109,005

 
27

 
(3
)
 
109,029

Included in cash and cash equivalents
23,644

 

 

 
23,644

Included in marketable securities
$
85,361

 
$
27

 
$
(3
)
 
$
85,385


 
Amortized
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Fair Value
December 31, 2015
 
 
 
 
 
 
 
U.S. agency obligations
$
83,763

 
$

 
$
(48
)
 
$
83,715

U.S. treasury securities
33,924

 

 
(31
)
 
33,893

Money market mutual funds
1,038

 

 

 
1,038

 
118,725

 

 
(79
)
 
118,646

Included in cash and cash equivalents
4,038

 

 
(1
)
 
4,037

Included in marketable securities
$
101,334

 
$

 
$
(60
)
 
$
101,274

Included in marketable securities, noncurrent
$
13,353

 
$

 
$
(18
)
 
$
13,335

Fair Value Measurements (Tables)
Fair Value, Assets Measured on Recurring Basis
The following tables present information about our assets that are measured at fair value on a recurring basis using the above input categories (in thousands):
 
 
Level 1
 
Level 2
 
Total
March 31, 2016
 
 
 
 
 
Cash equivalents:
 
 
 
 
 
Money market mutual funds
$
9,043

 
$

 
$
9,043

U.S. agency obligations

 
14,601

 
14,601

Marketable securities:
 
 
 
 
 
U.S. agency obligations

 
59,046

 
59,046

U.S. treasury securities

 
26,339

 
26,339

 
$
9,043

 
$
99,986

 
$
109,029

 
 
Level 1
 
Level 2
 
Total
December 31, 2015
 
 
 
 
 
Cash equivalents:
 
 
 
 
 
Money market mutual funds
$
1,038

 
$

 
$
1,038

U.S. agency obligations

 
3,000

 
3,000

Marketable securities:
 
 
 
 
 
U.S. agency obligations

 
80,715

 
80,715

U.S. treasury securities

 
33,893

 
33,893

 
$
1,038


$
117,608


$
118,646

Property and equipment, net (Tables)
Property, Plant and Equipment
Property and equipment consisted of the following (in thousands):
 
As of
 
March 31, 2016
 
December 31, 2015
Leasehold improvements
$
2,145

 
$
2,046

Computer equipment
4,727

 
4,345

Software
885

 
885

Capitalization of internal-use software
2,925

 
2,925

Furniture and equipment
853

 
853

Total
11,535

 
11,054

Accumulated depreciation
(4,923
)
 
(4,158
)
Property and equipment, net
$
6,612

 
$
6,896

Deferred Revenue (Tables)
Deferred Revenue, by Arrangement, Disclosure
Deferred revenue consisted of the following (in thousands):
 
As of
 
March 31, 2016
 
December 31, 2015
Subscription
$
23,133

 
$
18,029

Professional services—implementation
5,187

 
5,254

Professional services—communications
3,302

 
3,307

Total current
31,622

 
26,590

Subscription
600

 
1,163

Professional services—implementation
5,239

 
5,367

Professional services—communications
1,063

 
992

Total noncurrent
6,902

 
7,522

Total
$
38,524

 
$
34,112

Stockholders' Equity (Tables)
A summary of stock option activity for the three months ended March 31, 2016 is as follows (in thousands, except share and per share amounts): 
 
Options
Outstanding
 
Weighted-
Average
Exercise
Price
 
Aggregate
Intrinsic
Value
Balance at December 31, 2015
9,561,713

 
$
5.62

 
$
16,694

Stock option grants
3,223,396

 
$
2.99

 
 
Stock options exercised
(858,273
)
 
$
1.48

 
 
Stock options canceled
(2,917,084
)
 
$
10.78

 
 
Balance at March 31, 2016
9,009,752

 
$
3.41

 
$
10,651

The fair value of each option grant was estimated on the date of grant using the Black-Scholes option-valuation model with the following assumptions and fair value per share:
 
Three Months Ended March 31,
 
2016
 
2015
Volatility
45%
 
53%
Expected life (in years)
6.0
 
6.2
Risk-free interest rate
1.37
 
1.38%-1.79%
Dividend yield
—%
 
—%
A summary of restricted stock unit activity for the three months ended March 31, 2016 is as follows:
 
Number of
Shares
Outstanding
 
Weighted-
Average
Grant Date Fair Value
Balance at December 31, 2015
6,685,118

 
$
7.63

Restricted Stock Units granted (1)
2,613,100

 
$
2.99

Restricted Stock Units vested
(402,106
)
 
$
9.09

Restricted Stock Units forfeited/cancelled (2)
(440,193
)
 
$
8.42

Balance at March 31, 2016
8,455,919

 
$
6.09

(1) Includes PSUs that were granted in February 2016.
(2) Includes PSUs that were granted in the prior year, which were cancelled because performance targets were not achieved.
Net Loss per Share (Tables)
The following table presents the calculation of basic and diluted net loss per share for our common stock (in thousands, except per share data):
 
Three Months Ended March 31,
 
2016
 
2015
 
Class A
 
Class B
 
Class A
 
Class B
Net loss
$
(12,091
)
 
$
(9,264
)
 
$
(12,562
)
 
$
(7,081
)
Weighted-average shares used to compute basic and diluted net loss per share
54,518

 
41,773

 
58,698

 
33,088

Basic and diluted net loss per share
$
(0.22
)
 
$
(0.22
)
 
$
(0.21
)
 
$
(0.21
)
The following securities were excluded from the calculation of diluted net loss per share for common stock because their effect would have been anti-dilutive for the periods presented (in thousands):
 
Three Months Ended March 31,
 
2016
 
2015
Stock options and restricted stock units
20,172

 
15,898

Warrants
115

 
115

Total
20,287

 
16,013

Marketable Securities (Details) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2016
Dec. 31, 2015
Schedule of Available-for-sale Securities [Line Items]
 
 
Amortized Cost
$ 109,005 
$ 118,725 
Unrealized Gains
27 
Unrealized Losses
(3)
(79)
Fair Value
109,029 
118,646 
Included in cash and cash equivalents [Member]
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Amortized Cost
23,644 
4,038 
Unrealized Gains
Unrealized Losses
(1)
Fair Value
23,644 
4,037 
Included in marketable securities [Member]
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Amortized Cost
85,361 
101,334 
Unrealized Gains
27 
Unrealized Losses
(3)
(60)
Fair Value
85,385 
101,274 
Included in marketable securities, noncurrent [Member]
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Amortized Cost
 
13,353 
Unrealized Gains
 
Unrealized Losses
 
(18)
Fair Value
 
13,335 
U.S. agency obligations [Member]
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Amortized Cost
73,633 
83,763 
Unrealized Gains
17 
Unrealized Losses
(3)
(48)
Fair Value
73,647 
83,715 
U.S. treasury securities [Member]
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Amortized Cost
26,329 
33,924 
Unrealized Gains
10 
Unrealized Losses
(31)
Fair Value
26,339 
33,893 
Money market mutual funds [Member]
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Amortized Cost
9,043 
1,038 
Unrealized Gains
Unrealized Losses
Fair Value
$ 9,043 
$ 1,038 
Fair Value Measurements (Details) (USD $)
3 Months Ended
Mar. 31, 2016
Fair Value Disclosures [Abstract]
 
Available-for-sale Securities, Gross Realized Gain (Loss)
$ 0 
Available-for-sale Securities, Maturity Period
1 year 
Fair Value Measurements - Summary of Assets Measured at Fair Value on a Recurring Basis (Details) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2016
Dec. 31, 2015
Marketable securities:
 
 
Marketable securities
$ 109,029 
$ 118,646 
Money market mutual funds [Member]
 
 
Marketable securities:
 
 
Marketable securities
9,043 
1,038 
U.S. agency obligations [Member]
 
 
Marketable securities:
 
 
Marketable securities
73,647 
83,715 
U.S. treasury securities [Member]
 
 
Marketable securities:
 
 
Marketable securities
26,339 
33,893 
Fair Value, Measurements, Recurring
 
 
Marketable securities:
 
 
Assets, Fair Value Disclosure
109,029 
118,646 
Fair Value, Measurements, Recurring |
Money market mutual funds [Member]
 
 
Cash equivalents:
 
 
Cash equivalents
9,043 
1,038 
Fair Value, Measurements, Recurring |
U.S. agency obligations [Member]
 
 
Cash equivalents:
 
 
Cash equivalents
14,601 
3,000 
Marketable securities:
 
 
Marketable securities
59,046 
80,715 
Fair Value, Measurements, Recurring |
U.S. treasury securities [Member]
 
 
Marketable securities:
 
 
Marketable securities
26,339 
33,893 
Fair Value, Measurements, Recurring |
Level 1 [Member]
 
 
Marketable securities:
 
 
Assets, Fair Value Disclosure
9,043 
1,038 
Fair Value, Measurements, Recurring |
Level 1 [Member] |
Money market mutual funds [Member]
 
 
Cash equivalents:
 
 
Cash equivalents
 
1,038 
Fair Value, Measurements, Recurring |
Level 1 [Member] |
U.S. agency obligations [Member]
 
 
Cash equivalents:
 
 
Cash equivalents
Marketable securities:
 
 
Marketable securities
Fair Value, Measurements, Recurring |
Level 1 [Member] |
U.S. treasury securities [Member]
 
 
Marketable securities:
 
 
Marketable securities
Fair Value, Measurements, Recurring |
Level 2 [Member]
 
 
Marketable securities:
 
 
Assets, Fair Value Disclosure
99,986 
117,608 
Fair Value, Measurements, Recurring |
Level 2 [Member] |
Money market mutual funds [Member]
 
 
Cash equivalents:
 
 
Cash equivalents
Fair Value, Measurements, Recurring |
Level 2 [Member] |
U.S. agency obligations [Member]
 
 
Cash equivalents:
 
 
Cash equivalents
14,601 
3,000 
Marketable securities:
 
 
Marketable securities
59,046 
80,715 
Fair Value, Measurements, Recurring |
Level 2 [Member] |
U.S. treasury securities [Member]
 
 
Marketable securities:
 
 
Marketable securities
$ 26,339 
$ 33,893 
Property and equipment, net (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Property, Plant and Equipment [Abstract]
 
 
Depreciation Expense
$ 0.8 
$ 0.5 
Property and equipment, net - Schedule of Property, Plant and Equipment (Details) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2016
Dec. 31, 2015
Property, Plant and Equipment [Line Items]
 
 
Property and Equipment
$ 11,535 
$ 11,054 
Capitalization of internal-use software
2,925 
2,925 
Accumulated depreciation
(4,923)
(4,158)
Property and equipment, net
6,612 
6,896 
Leasehold Improvements [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property and Equipment
2,145 
2,046 
Computer Equipment [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property and Equipment
4,727 
4,345 
Software [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property and Equipment
885 
885 
Furniture and Equipment [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property and Equipment
$ 853 
$ 853 
Related Party Transactions (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Lyra Health [Member]
 
Related Party Transaction [Line Items]
 
Payments to acquire interest in related party
$ 4.1 
Second Investment [Member]
 
Related Party Transaction [Line Items]
 
Payments to acquire interest in related party
1.0 
Initial Investment [Member]
 
Related Party Transaction [Line Items]
 
Payments to acquire interest in related party
$ 3.1 
Deferred Revenue - Components of Deferred Revenue (Details) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2016
Dec. 31, 2015
Deferred Revenue Arrangement [Line Items]
 
 
Total current
$ 31,622 
$ 26,590 
Total noncurrent
6,902 
7,522 
Total
38,524 
34,112 
Subscription [Member]
 
 
Deferred Revenue Arrangement [Line Items]
 
 
Total current
23,133 
18,029 
Total noncurrent
600 
1,163 
Professional Services - Implementation [Member]
 
 
Deferred Revenue Arrangement [Line Items]
 
 
Total current
5,187 
5,254 
Total noncurrent
5,239 
5,367 
Professional Services - Communications [Member]
 
 
Deferred Revenue Arrangement [Line Items]
 
 
Total current
3,302 
3,307 
Total noncurrent
$ 1,063 
$ 992 
Commitments and Contingencies Commitments and Contingencies (Details) (USD $)
In Millions, unless otherwise specified
0 Months Ended 3 Months Ended
Mar. 28, 2016
Mar. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
 
 
Litigation settlement, amount
$ (9.5)
 
Litigation settlement, expense
 
$ 2.7 
Stockholders' Equity - Summary of Stock by Class (Details)
Mar. 31, 2016
Class A [Member]
 
Class of Stock [Line Items]
 
Common Stock, Shares, Issued
54,517,785 
Class B [Member]
 
Class of Stock [Line Items]
 
Common Stock, Shares, Issued
42,360,686 
Stockholders' Equity - Summary of Stock Option Activity (Details) (USD $)
In Thousands, except Share data, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Options Outstanding
 
Beginning Balance
9,561,713,000 
Stock option grants
3,223,396,000 
Stock options exercised
(858,273,000)
Stock options canceled
(2,917,084,000)
Ending Balance
9,009,752,000 
Weighted- Average Exercise Price
 
Beginning Balance
$ 3.41 
Stock option grants
$ 2.99 
Stock options exercised
$ 1.48 
Stock options canceled
$ 10.78 
Ending Balance
$ 5.62 
Aggregate Intrinsic Value
 
Beginning Balance
$ 16,694 
Ending Balance
$ 10,651 
Stockholders' Equity - Stock Options Activity and Stock-based Compensation (Details) (USD $)
In Millions, except Share data, unless otherwise specified
3 Months Ended 0 Months Ended 3 Months Ended 3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Feb. 15, 2016
Stock Option Exchange Program [Member]
Mar. 31, 2016
Stock Option Exchange Program [Member]
employee
Feb. 15, 2016
Stock Option Exchange Program [Member]
Mar. 31, 2016
Stock Option Exchange Program [Member]
Monthly [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
 
 
Stock Granted, Value, Share-based Compensation, Gross
$ 2.5 
$ 2.1 
 
 
 
 
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options
$ 18.8 
 
 
 
$ 1.8 
 
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition
2 years 6 months 
 
5 years 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Number of Employees Participating
 
 
 
108 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Number of Eligible Employees
 
 
 
132 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period
2,917,084,000 
 
 
2,685,396 
 
 
Stock options canceled, exercise price
$ 10.78 
 
 
$ 11.03 
 
 
Stock option grants
3,223,396,000 
 
 
2,685,396 
 
 
Stock option grants, exercise price
$ 2.99 
 
 
$ 2.99 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period
 
 
 
 
 
5 years 
Stockholders' Equity - Summary of Restricted Stock Unit Activity (Details) (USD $)
In Millions, except Share data in Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
 
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition
2 years 6 months 
Restricted Stock Units (RSUs) [Member]
 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
 
Balance at December 31, 2015
6,685,118 
Restricted Stock Units granted (1)
2,613,100 
Restricted Stock Units vested
(402,106)
Restricted Stock Units forfeited/cancelled (2)
(440,193)
Balance at March 31, 2016
8,455,919 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
 
Balance at December 31, 2015
$ 7.63 
Restricted Stock Units granted (1)
$ 2.99 
Restricted Stock Units vested
$ 9.09 
Restricted Stock Units forfeited/cancelled (2)
$ 8.42 
Balance at March 31, 2016
$ 6.09 
Unrecognized compensation cost
$ 43.3 
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition
3 years 3 months 19 days 
Income Taxes (Details)
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Income Tax Disclosure [Abstract]
 
 
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent
0.00% 
0.00% 
Net Loss per Share - Calculation of Basic and Diluted EPS for Common Stock (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Schedule of Earnings Per Share, Basic and Diluted, by Common Class, Including Two Class Method [Table] [Line Items]
 
 
Net loss
$ (21,355)
$ (19,643)
Weighted-average shares used to compute basic and diluted net loss per Class A and B share
96,291 
91,786 
Basic and diluted net loss per share (in usd per share)
$ (0.22)
$ (0.21)
Class A [Member]
 
 
Schedule of Earnings Per Share, Basic and Diluted, by Common Class, Including Two Class Method [Table] [Line Items]
 
 
Net loss
(12,091)
(12,562)
Weighted-average shares used to compute basic and diluted net loss per Class A and B share
54,518 
58,698 
Basic and diluted net loss per share (in usd per share)
$ (0.22)
$ (0.21)
Class B [Member]
 
 
Schedule of Earnings Per Share, Basic and Diluted, by Common Class, Including Two Class Method [Table] [Line Items]
 
 
Net loss
$ (9,264)
$ (7,081)
Weighted-average shares used to compute basic and diluted net loss per Class A and B share
41,773 
33,088 
Basic and diluted net loss per share (in usd per share)
$ (0.22)
$ (0.21)
Net Loss per Share - Summary of Antidilutive Securities (Details) (Class A [Member])
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
 
 
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount
20,287 
16,013 
Stock Options and Restricted Common Stock [Member]
 
 
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
 
 
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount
20,172 
15,898 
Warrants [Member]
 
 
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
 
 
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount
115 
115 
Subsequent Events (Details) (Subsequent Event [Member], USD $)
In Millions, unless otherwise specified
0 Months Ended
May 10, 2016
May 10, 2016
Subsequent Event [Member]
 
 
Subsequent Event [Line Items]
 
 
Intended workforce reduction, percent
14.00% 
 
Expected restructuring cost
 
$ 0.8