ZENDESK, INC., 10-Q filed on 8/4/2016
Quarterly Report
Document and Entity Information
6 Months Ended
Jun. 30, 2016
Jul. 31, 2016
Document And Entity Information [Abstract]
 
 
Document Type
10-Q 
 
Amendment Flag
false 
 
Document Period End Date
Jun. 30, 2016 
 
Document Fiscal Year Focus
2016 
 
Document Fiscal Period Focus
Q2 
 
Trading Symbol
ZEN 
 
Entity Registrant Name
Zendesk, Inc. 
 
Entity Central Index Key
0001463172 
 
Current Fiscal Year End Date
--12-31 
 
Entity Filer Category
Large Accelerated Filer 
 
Entity Common Stock, Shares Outstanding
 
93,807,030 
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2016
Dec. 31, 2015
Current Assets:
 
 
Cash and cash equivalents
$ 118,036 
$ 216,226 
Marketable securities
106,130 
29,414 
Accounts receivable, net of allowance for doubtful accounts of $834 and $763 as of June 30, 2016 and December 31, 2015, respectively
28,666 
26,168 
Prepaid expenses and other current assets
19,645 
11,423 
Total current assets
272,477 
283,231 
Marketable securities, noncurrent
51,625 
22,336 
Property and equipment, net
55,734 
56,540 
Goodwill and intangible assets, net
55,948 
57,050 
Other assets
4,157 
3,529 
Total assets
439,941 
422,686 
Current liabilities:
 
 
Accounts payable
6,481 
9,332 
Accrued liabilities
11,962 
9,742 
Accrued compensation and related benefits
15,183 
14,115 
Deferred revenue
101,042 
84,210 
Total current liabilities
134,668 
117,399 
Deferred revenue, noncurrent
1,316 
1,405 
Other liabilities
11,240 
10,592 
Total liabilities
147,224 
129,396 
Commitments and contingencies
   
   
Stockholders’ equity:
 
 
Preferred stock
Common stock
937 
905 
Additional paid-in capital
563,600 
511,183 
Accumulated other comprehensive loss
(1,823)
(2,225)
Accumulated deficit
(269,345)
(215,921)
Treasury stock at cost (0.5 million shares as of June 30, 2016 and December 31, 2015)
(652)
(652)
Total stockholders’ equity
292,717 
293,290 
Total liabilities and stockholders’ equity
$ 439,941 
$ 422,686 
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)
In Thousands, except Share data in Millions, unless otherwise specified
Jun. 30, 2016
Dec. 31, 2015
Statement of Financial Position [Abstract]
 
 
Allowance for doubtful accounts
$ 834 
$ 763 
Treasury stock, shares (in shares)
0.5 
0.5 
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Income Statement [Abstract]
 
 
 
 
Revenue
$ 74,200 
$ 48,227 
$ 142,659 
$ 90,461 
Cost of revenue
22,936 1
16,162 1
44,452 1
30,452 1
Gross profit
51,264 
32,065 
98,207 
60,009 
Operating expenses:
 
 
 
 
Research and development
22,134 1
14,227 1
43,731 1
27,485 1
Sales and marketing
39,350 1
27,242 1
75,522 1
50,645 1
General and administrative
16,076 1
11,536 1
31,937 1
21,663 1
Total operating expenses
77,560 1
53,005 1
151,190 1
99,793 1
Operating loss
(26,296)
(20,940)
(52,983)
(39,784)
Other income (expense), net
134 
(343)
64 
(574)
Loss before provision for income taxes
(26,162)
(21,283)
(52,919)
(40,358)
Provision for income taxes
92 
199 
506 
292 
Net loss
$ (26,254)
$ (21,482)
$ (53,425)
$ (40,650)
Net loss per share, basic and diluted (usd per share)
$ (0.28)
$ (0.25)
$ (0.58)
$ (0.50)
Weighted-average shares used to compute basic and diluted net loss per share (in shares)
92,174 
86,390 
91,351 
81,390 
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (Parenthetical) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Share-based compensation expense
 
 
$ 36,341 
$ 23,614 
Cost of revenue
 
 
 
 
Share-based compensation expense
1,802 
1,114 
3,435 
2,004 
Research and development
 
 
 
 
Share-based compensation expense
6,749 
4,446 
13,376 
8,510 
Sales and marketing
 
 
 
 
Share-based compensation expense
5,684 
3,937 
11,123 
6,369 
General and administrative
 
 
 
 
Share-based compensation expense
$ 4,410 
$ 3,890 
$ 8,407 
$ 6,731 
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Statement of Comprehensive Income [Abstract]
 
 
 
 
Net loss
$ (26,254)
$ (21,482)
$ (53,425)
$ (40,650)
Other comprehensive loss, before tax:
 
 
 
 
Net change in unrealized (loss) gain on available-for-sale investments
(14)
(8)
116 
32 
Foreign currency translation gain (loss)
64 
203 
797 
(238)
Net change in unrealized loss on derivative instruments
(2,886)
(277)
Other comprehensive loss, before tax
(2,836)
195 
636 
(206)
Tax effect
(234)
(234)
Other comprehensive loss, net of tax
(3,070)
195 
402 
(206)
Comprehensive loss
$ (29,324)
$ (21,287)
$ (53,023)
$ (40,856)
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
In Thousands, unless otherwise specified
6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Cash flows from operating activities
 
 
Net loss
$ (53,425)
$ (40,650)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
 
 
Depreciation and amortization
13,147 
8,804 
Share-based compensation
36,341 
23,614 
Other
599 
318 
Excess tax benefit from share-based award activity
(95)
Changes in operating assets and liabilities:
 
 
Accounts receivable
(2,427)
(3,390)
Prepaid expenses and other current assets
(7,860)
(3,261)
Other assets and liabilities
(380)
(1,365)
Accounts payable
(579)
(1,063)
Accrued liabilities
1,803 
1,270 
Accrued compensation and related benefits
1,098 
(2,259)
Deferred revenue
16,243 
13,304 
Net cash provided by (used in) operating activities
4,560 
(4,773)
Cash flows from investing activities
 
 
Purchases of property and equipment
(8,410)
(7,406)
Internal-use software development costs
(2,773)
(2,383)
Purchases of marketable securities
(136,171)
(35,847)
Proceeds from maturities of marketable securities
16,476 
18,020 
Proceeds from sale of marketable securities
13,631 
15,317 
Cash paid for the acquisition of Zopim, net of cash acquired
(548)
Net cash used in investing activities
(117,247)
(12,847)
Cash flows from financing activities
 
 
Proceeds from follow-on public offering, net of issuance costs
190,110 
Proceeds from exercise of employee stock options
9,387 
4,976 
Taxes paid related to net share settlement of equity awards
(345)
(203)
Proceeds from employee stock purchase plan
5,672 
4,948 
Excess tax benefit from share-based award activity
95 
Principal payments on debt
(323)
(6,952)
Principal payments on capital lease obligations
(10)
Net cash provided by financing activities
14,391 
192,964 
Effect of exchange rate changes on cash and cash equivalents
106 
60 
Net (decrease) increase in cash and cash equivalents
(98,190)
175,404 
Cash and cash equivalents at the beginning of period
216,226 
80,265 
Cash and cash equivalents at the end of period
118,036 
255,669 
Supplemental cash flow data:
 
 
Cash paid for interest and income taxes
437 
617 
Non-cash investing and financing activities:
 
 
Balance of property and equipment in accounts payable and accrued expenses
1,552 
962 
Share-based compensation capitalized in internal-use software development costs
1,075 
1,262 
Vesting of early exercised stock options
374 
576 
Property and equipment acquired through tenant improvement allowances
$ 0 
$ 174 
Overview and Basis of Presentation
Overview and Basis of Presentation
Note 1. Overview and Basis of Presentation
Company and Background
Zendesk was founded in Denmark in 2007 and reincorporated in Delaware in April 2009.
Our mission is to help organizations and their customers build better relationships. We are a software development company that provides a SaaS customer service platform that enables our customers to provide tailored support through multiple channels, establish effective self-service support resources, proactively serve customers through customer engagement capabilities, integrate with other applications, and consolidate and analyze data from customer interactions. We also provide SaaS live chat software that can be utilized independently to facilitate proactive communications between organizations and their customers or integrated easily into our platform.
In October 2015, we completed the acquisition of We Are Cloud SAS, or WAC, the maker of BIME Analytics software. With the acquisition, we added technology that we anticipate will allow our customers to understand the ever-increasing diversity of data about their end customers. Over time, we expect this analytics software to become a core technology within our customer service platform, enabling us to further integrate data analytics capabilities across our products.
References to Zendesk, the “Company”, “our”, or “we” in these notes refer to Zendesk, Inc. and its subsidiaries on a consolidated basis.
Basis of Presentation
These unaudited condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles, or GAAP, and applicable rules and regulations of the Securities and Exchange Commission, or SEC, regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in our Annual Report on Form 10-K for the year ended December 31, 2015, filed on February 26, 2016. There have been no changes to our significant accounting policies described in the Annual Report on Form 10-K that have had a material impact on our condensed consolidated financial statements and related notes.
The consolidated balance sheet as of December 31, 2015 included herein was derived from the audited financial statements as of that date. The unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the financial position, results of operations, our comprehensive loss and cash flows for the interim periods, but are not necessarily indicative of the results of operations to be anticipated for the full year ending December 31, 2016.
Follow-On Public Offering
In March 2015, we completed a follow-on public offering, in which we issued 8.8 million shares of our common stock at a public offering price of $22.75 per share. We received net proceeds of $190.1 million after deducting underwriting discounts and commissions of $8.7 million and other offering expenses of $0.9 million.
Use of Estimates
The preparation of consolidated financial statements in conformity with GAAP requires management to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenue and expenses during the reported periods.
Significant items subject to such estimates and assumptions include the fair value of share-based awards, acquired intangible assets and goodwill, unrecognized tax benefits, the useful lives of acquired intangible assets and property and equipment, the capitalization and estimated useful life of capitalized internal-use software, and financial forecasts used in currency hedging.
These estimates are based on information available as of the date of the financial statements; therefore, actual results could differ from those estimates.
Concentrations of Risk
As of June 30, 2016, no customers represented 10% or greater of our total accounts receivable balance. There were no customers that individually exceeded 10% of our revenue during the three and six months ended June 30, 2016 or 2015.
Recently Issued and Adopted Accounting Pronouncements
In May 2014, the FASB issued new revenue guidance that provides principles for recognizing revenue to which an entity expects to be entitled for the transfer of promised goods or services to customers. In August 2015, the FASB deferred the effective date of adoption by one year. As currently issued and amended, the new guidance is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period, though early adoption is permitted for annual reporting periods beginning after December 15, 2016. The amendment may be applied retrospectively to each prior period presented, or with the cumulative effect recognized as of the date of initial adoption. We have not yet selected a transition method and continue to evaluate the effect of the standard on our consolidated financial statements, including revenue and commissions.
In February 2016, the FASB issued ASU 2016-2 regarding ASC Topic 842 "Leases." This new standard requires lessees to recognize most leases on their balance sheets as lease liabilities with corresponding right-of-use assets and eliminates certain real estate-specific provisions. The new guidance is effective for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period. Early adoption is permitted. We are currently evaluating the impact of this standard on our consolidated financial statements.
In March 2016, the FASB issued ASU 2016-9 regarding Topic 718 "Compensation - Stock Compensation." This amendment changes certain aspects of accounting for share-based compensation to employees, including the recognition of income tax effects of awards when the awards vest or are settled, requirements on net share settlement to cover tax withholding, and accounting for forfeitures. The new guidance is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early adoption is permitted. We do not expect the adoption of this standard to have a significant impact on our consolidated financial statements.
Business Combination
Business Combination
Note 2. Business Combination
On October 13, 2015, we completed the acquisition of WAC, the maker of BIME Analytics software. We acquired 100 percent of the outstanding shares of WAC in exchange for purchase consideration of $46.4 million in cash, including working capital adjustments. As partial security for standard indemnification obligations, $7.0 million of the consideration will be held in escrow for a period of up to 18 months, with a portion to be released 12 months following the closing of the acquisition. We incurred transaction costs of $1.0 million in connection with the acquisition. The transaction costs were expensed as incurred and recognized within general and administrative expenses.
The fair value of assets acquired and liabilities assumed was based on a preliminary valuation and purchase price, and our estimates and assumptions are subject to change within the measurement period. The primary areas that remain preliminary relate to the fair values of certain tangible assets and liabilities acquired and residual goodwill.  The total purchase price was allocated to assets acquired and liabilities assumed as set forth below (in thousands).  During the six months ended June 30, 2016, we made adjustments to the preliminary purchase price allocation related to certain tangible assets and liabilities acquired, resulting in an increase to goodwill of $0.2 million. The excess of the purchase price over the net assets acquired was recorded as goodwill. Goodwill generated from the acquisition is primarily attributable to expected synergies, including cost savings from integrating the analytics technology with our customer service platform and the opportunity to sell the analytics software alongside our existing products. Goodwill is not expected to be deductible for income tax purposes. Goodwill will not be amortized but instead will be tested for impairment at least annually and more frequently if certain indicators of impairment are present.
 
Net tangible assets acquired
$
2,140

Net deferred tax liability recognized
(1,979
)
Identifiable intangible assets:
 

Developed technology
8,800

Customer relationships
500

Goodwill
36,896

Total purchase price
$
46,357


 
The developed technology and customer relationship intangible assets were each assigned useful lives of 4.5 years.
In connection with the acquisition, we entered into retention arrangements with certain employees of WAC, pursuant to which we issued RSUs for approximately 0.5 million shares of our common stock, most of which vest in three annual installments from the date of acquisition. The expense related to the RSUs is accounted for as share-based compensation expense over the required service periods and was not included in the purchase consideration.
The results of operations of WAC have been included in our consolidated financial statements from the date of the acquisition.
Financial Instruments
Financial Instruments
Note 3. Financial Instruments
Investments
The following tables present information about our cash equivalents and marketable securities measured at fair value on a recurring basis as of June 30, 2016 and December 31, 2015 based on the three-tier fair value hierarchy (in thousands):
 
 
Fair Value Measurement at
June 30, 2016
Level 1
 
Level 2
 
Total
Description
 
 
 
 
 
Corporate bonds
$

 
$
88,441

 
$
88,441

Commercial paper

 
36,732

 
36,732

Agency securities

 
20,397

 
20,397

Asset-backed securities

 
19,032

 
19,032

U.S. treasury securities

 
14,748

 
14,748

Money market funds
$
14,025

 

 
14,025

Total
$
14,025

 
$
179,350

 
$
193,375

Included in cash and cash equivalents
 
 
 
 
$
35,620

Included in marketable securities
 
 
 
 
$
157,755

 
Fair Value Measurement at
December 31, 2015
Level 1
 
Level 2
 
Total
Description
 
 
 
 
 
Corporate bonds
$

 
$
31,761

 
$
31,761

Money market funds
21,338

 

 
21,338

Asset-backed securities

 
7,998

 
7,998

Commercial paper

 
5,992

 
5,992

U.S. treasury securities

 
4,001

 
4,001

Agency securities

 
1,998

 
1,998

Total
$
21,338

 
$
51,750

 
$
73,088

Included in cash and cash equivalents
 
 
 
 
$
21,338

Included in marketable securities
 
 
 
 
$
51,750


 
As of June 30, 2016 and December 31, 2015, there were no securities within Level 3 of the fair value hierarchy.  There were no transfers between fair value measurement levels during the three and six months ended June 30, 2016.  Gross unrealized gains and losses for cash equivalents and marketable securities as of June 30, 2016 and December 31, 2015 were not material. As of June 30, 2016 and December 31, 2015, there were no securities that were in an unrealized loss position for more than 12 months.
The following table classifies our marketable securities by contractual maturity as of June 30, 2016 and December 31, 2015 (in thousands):
 
 
June 30,
2016
 
December 31,
2015
Due in one year or less
$
106,130

 
$
29,414

Due after one year
51,625

 
22,336

Total
$
157,755

 
$
51,750


 
For certain other financial instruments, including accounts receivable, accounts payable and other current liabilities, the carrying amounts approximate their fair value due to the relatively short maturity of these balances.
Derivative Instruments and Hedging
Our foreign currency exposures typically arise from foreign operations and sales in foreign currencies for subscriptions to our customer service platform. In September 2015, we implemented a hedging program to mitigate the impact of foreign currency fluctuations on our future cash flows and earnings. We enter into foreign currency forward contracts with certain financial institutions and designate those hedges as cash flow hedges. Our foreign currency forward contracts generally have maturities ranging from 3 to 18 months. As of June 30, 2016, the balance of accumulated other comprehensive loss included an unrealized loss of $1.0 million related to the effective portion of changes in the fair value of foreign currency forward contracts designated as cash flow hedges. We expect to reclassify $0.6 million from accumulated other comprehensive loss into earnings over the next 12 months associated with our cash flow hedges.
The following tables present information about derivative instruments on our consolidated balance sheets as of June 30, 2016 and December 31, 2015 (in thousands):
 
 
June 30, 2016
Asset Derivatives
 
Liability Derivatives
Derivative Instrument
Balance Sheet Location
 
Fair Value
(Level 2)
 
Balance Sheet Location
 
Fair Value
(Level 2)
Foreign currency forward contracts
Other current assets
 
$
963

 
Accrued liabilities
 
$
1,624

Foreign currency forward contracts
Other assets
 
34

 
Other liabilities
 
505

Total
 
 
$
997

 
 
 
$
2,129

 
December 31, 2015
Asset Derivatives
 
Liability Derivatives
Derivative Instrument
Balance Sheet Location
 
Fair Value
(Level 2)
 
Balance Sheet Location
 
Fair Value
(Level 2)
Foreign currency forward contracts
Other current assets
 
$
408

 
Accrued liabilities
 
$
1,081

Total
 
 
$
408

 
 
 
$
1,081


 
Our foreign currency forward contracts had a total notional value of $93.3 million and $60.8 million as of June 30, 2016 and December 31, 2015, respectively. We have a master netting agreement with certain counterparties, which permits net settlement of multiple, separate derivative contracts with a single payment. We have elected to present our derivative instruments on a gross basis in our consolidated financial statements. We may also be required to exchange cash collateral with certain of our counterparties on a regular basis. We have not exchanged cash collateral with any counterparties as of June 30, 2016 and December 31, 2015, respectively.
The following table presents information about our derivative instruments on the statement of operations for the three and six months ended June 30, 2016 (in thousands):
 
 
 
 
Three Months Ended June 30, 2016
 
Six Months Ended June 30, 2016
Hedging Instrument
Location of Gain (Loss) Reclassified into Earnings
 
Loss Recognized in AOCI
 
Gain Reclassified from AOCI into Earnings
 
Loss Recognized in AOCI
 
Loss Reclassified from AOCI into Earnings
Foreign currency forward contracts
Revenue, cost of revenue, operating expenses
 
$
(2,772
)
 
$
114

 
$
(425
)
 
$
(148
)
Total
 
 
$
(2,772
)
 
$
114

 
$
(425
)
 
$
(148
)

 
There were no gains or losses on derivative instruments for the three and six months ended June 30, 2015.
All derivatives have been designated as hedging instruments. Amounts recognized in earnings related to excluded time value and hedge ineffectiveness for the three and six months ended June 30, 2016 were not material.
Property and Equipment
Property and Equipment
Note 4. Property and Equipment
Property and equipment, net consists of the following (in thousands):  
 
 
June 30,
2016
 
December 31,
2015
Hosting equipment
$
30,763

 
$
26,920

Capitalized internal-use software
24,391

 
22,418

Leasehold improvements
21,123

 
19,577

Computer equipment and software
9,529

 
7,682

Furniture and fixtures
6,249

 
5,739

Construction in progress
4,358

 
4,157

Total
96,413

 
86,493

Less: accumulated depreciation and amortization
(40,679
)
 
(29,953
)
Property and equipment, net
$
55,734

 
$
56,540


 
Depreciation expense was $3.9 million and $2.6 million for the three months ended June 30, 2016 and 2015, respectively, and $7.6 million and $4.9 million for the six months ended June 30, 2016 and 2015, respectively. 
 
Amortization expense of capitalized internal-use software totaled $1.8 million and $1.5 million for the three months ended June 30, 2016 and 2015, respectively, and $3.5 million and $3.0 million for the six months ended June 30, 2016 and 2015, respectively. The carrying value of capitalized internal-use software at June 30, 2016 and December 31, 2015 was $14.4 million and $14.1 million, respectively, including $3.0 million and $1.5 million in construction in progress, respectively.
Goodwill and Acquired Intangible Assets
Goodwill and Acquired Intangible Assets
Note 5. Goodwill and Acquired Intangible Assets
The changes in the carrying amount of goodwill for the six months ended June 30, 2016 are as follows (in thousands):
 
Balance as of December 31, 2015
$
45,346

Goodwill adjustments
166

Foreign currency translation adjustments
481

Balance as of June 30, 2016
$
45,993


 
Acquired intangible assets subject to amortization as of June 30, 2016 and December 31, 2015 consist of the following (in thousands).
 
 
As of June 30, 2016
Cost
 
Accumulated
Amortization
 
Foreign 
Currency Translation Adjustments
 
Net
 
Remaining Useful Life
 
 
 
 
 
 
 
 
(In years)
Developed technology
$
14,000

 
$
(4,849
)
 
$
(136
)
 
$
9,015

 
3.3
Customer relationships
1,800

 
(824
)
 
(36
)
 
940

 
2.6
 
$
15,800

 
$
(5,673
)
 
$
(172
)
 
$
9,955

 
 
 
 
As of December 31, 2015
Cost
 
Accumulated
Amortization
 
Foreign
Currency Translation Adjustments
 
Net
 
Remaining Useful Life
 
 
 
 
 
 
 
 
(In years)
Developed technology
$
14,000

 
$
(3,133
)
 
$
(279
)
 
$
10,587

 
3.7
Customer relationships
1,800

 
(606
)
 
(78
)
 
1,117

 
3.1
 
$
15,800

 
$
(3,739
)
 
$
(357
)
 
$
11,704

 
 

 
Amortization expense of purchased intangible assets for the three months ended June 30, 2016 and 2015 was $1.0 million and $0.4 million, respectively and $1.9 million and $1.0 million for the six months ended June 30, 2016 and 2015, respectively.  
Estimated future amortization expense as of June 30, 2016 is as follows (in thousands):
 
Remainder of 2016
$
1,889

2017
3,357

2018
2,131

2019
2,066

2020
512

 
$
9,955

Credit Facility
Credit Facility
Note 6. Credit Facility
Until its termination in June 2015, we had a credit facility with Silicon Valley Bank consisting of a $20.0 million revolving line of credit and a $10.0 million equipment line of credit. The revolving line of credit bore interest at the prime rate plus 2.0% per annum prior to our IPO in May 2014 and was reduced to the prime rate upon the consummation of our IPO. Borrowings on the equipment line of credit bore interest of 2.5% per annum. In June 2014, we repaid all outstanding principal and accrued interest under the revolving line of credit. In June 2015, we repaid all outstanding principal and interest under the equipment line of credit and terminated the Silicon Valley Bank credit facility.
Commitments and Contingencies
Commitments and Contingencies
Note 7. Commitments and Contingencies
Leases
We lease office space under noncancelable operating leases with various expiration dates. Certain of the office space lease agreements contain rent holidays or rent escalation provisions. Rent holiday and rent escalation provisions are considered in determining the straight-line expense to be recorded over the lease term. The lease term begins on the date of initial possession of the leased property for purposes of recognizing lease expense on a straight-line basis over the term of the lease. Rent expense was $2.5 million and $1.8 million for the three months ended June 30, 2016 and 2015 and $4.7 million and $3.4 million for the six months ended June 30, 2016 and 2015, respectively.

In June 2016, we entered into an operating lease agreement for approximately 18,000 square feet of additional office space in San Francisco, CA. The lease began on July 11, 2016 and will expire on January 31, 2021. The total anticipated amount of rent to be paid over the initial term of the lease is approximately $4.6 million. In addition to monthly rent obligations, we are responsible for certain operating costs and taxes associated with the leased premises.

We leased computer equipment from various parties under capital lease agreements that expired in March 2015.  
Litigation and Loss Contingencies
We accrue estimates for resolution of legal and other contingencies when losses are probable and estimable. From time to time, we may become a party to litigation and subject to claims incident to the ordinary course of business, including intellectual property claims, labor and employment claims, and threatened claims, breach of contract claims, tax, and other matters. We currently have no material pending litigation.
We are not currently aware of any litigation matters or loss contingencies that would be expected to have a material adverse effect on our business, consolidated financial position, results of operations, comprehensive loss, or cash flows.
Indemnifications
In the ordinary course of business, we enter into contractual arrangements under which we agree to provide indemnification of varying scope and terms to customers, business partners and other parties with respect to certain matters, including, but not limited to, losses arising out of the breach of such agreements, intellectual property infringement claims made by third parties, and other liabilities relating to or arising from our customer service platform, live chat software, analytics software, or our acts or omissions. In these circumstances, payment may be conditional on the other party making a claim pursuant to the procedures specified in the particular contract. Further, our obligations under these agreements may be limited in terms of time and/or amount, and in some instances, we may have recourse against third parties for certain payments. In addition, we have indemnification agreements with our directors and executive officers that require us, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors or officers. The terms of such obligations may vary. To date, we have not incurred any material costs, and we have not accrued any liabilities in the accompanying condensed consolidated financial statements, as a result of these obligations.
Certain of our product offerings include service-level agreements warranting defined levels of uptime reliability and performance and permitting those customers to receive credits for future services in the event that we fail to meet those levels. To date, we have not accrued for any significant liabilities in the accompanying consolidated financial statements as a result of these service-level agreements.
Common Stock and Stockholders' Equity
Common Stock and Stockholders' Equity
Note 8. Common Stock and Stockholders’ Equity
Common Stock
As of June 30, 2016 and December 31, 2015, there were 400 million shares authorized for issuance with a par value of $0.01 per share.  There were 93.9 million and 90.9 million shares of common stock issued and 93.4 million and 90.3 million shares outstanding as of June 30, 2016 and December 31, 2015, respectively. Included within the number of shares issued and outstanding were 0.2 million and 0.3 million shares of common stock subject to repurchase, as of June 30, 2016 and December 31, 2015, respectively.
 
Preferred Stock
As of June 30, 2016 and December 31, 2015, 10.0 million shares of preferred stock were authorized for issuance with a par value of $0.01 per share and no shares of preferred stock were issued or outstanding.
Employee Equity Plans
Employee Stock Purchase Plan
Under our Employee Stock Purchase Plan, or ESPP, eligible employees are granted options to purchase shares of our common stock through payroll deductions. The ESPP provides for eighteen-month offering periods, which include three six-month purchase periods. At the end of each purchase period, employees are able to purchase shares at 85% of the lower of the fair market value of our common stock at the beginning of an offering period or the fair market value of our common stock at the end of the purchase period. For the three and six months ended June 30, 2016, 0.3 million shares of common stock were purchased under the ESPP. Pursuant to the terms of the ESPP, the number of shares reserved under the ESPP increased by 0.9 million shares on January 1, 2016.  As of June 30, 2016, 3.5 million shares of common stock were available for issuance under the ESPP.
Stock Option and Incentive Plans
Our board of directors adopted the 2009 Stock Option and Grant Plan, or the 2009 Plan, in July 2009. The 2009 Plan was terminated in connection with our IPO in May 2014, and accordingly, no shares are available for issuance under this plan. The 2009 Plan continues to govern outstanding awards granted thereunder.
Our 2014 Stock Option and Incentive Plan, or the 2014 Plan, serves as the successor to our 2009 Plan. Pursuant to the terms of the 2014 Plan, the number of shares reserved for issuance under the 2014 Plan increased by 4.5 million shares on January 1, 2016. As of June 30, 2016, we had 5.9 million shares of common stock available for future grants under the 2014 Plan.
On May 6, 2016, the compensation committee of our board of directors granted equity awards representing 1.2 million shares. These awards were granted outside of the 2014 Plan and are intended to qualify as “employment inducement awards” within the meaning of Section 303A.08 of the New York Stock Exchange Listed Manual and accordingly do not require approval from our stockholders.
The following table summarizes our stock option and RSU award activities for the six months ended June 30, 2016 (in thousands, except per share information):
 
 
 
 
Options Outstanding
 
RSUs Outstanding
Shares
Available
for Grant
 
Number of
Shares
 
Weighted
Average
Exercise Price
 
Weighted
Average
Remaining
Contractual
Term
 
Aggregate
Intrinsic
Value
 
Outstanding
RSUs
 
Weighted
Average
Grant Date
Fair Value
 
 
 
 
 
 
(In years)
 
 
 
 
 
 
Outstanding — January 1, 2016
4,323

 
10,778

 
$
11.94

 
7.96
 
$
156,262

 
6,417

 
$
19.54

Increase in authorized shares
5,716

 
 
 
 
 
 
 
 
 
 
 
 
Stock options granted
(1,158
)
 
1,158

 
22.97

 
 
 
 
 
 
 
 
RSUs granted
(3,388
)
 
 
 
 
 
 
 
 
 
3,388

 
19.51

Stock options exercised
 
 
(1,339
)
 
7.01

 
 
 
 
 
 
 
 
RSUs vested
 
 
 
 
 
 
 
 
 
 
(1,472
)
 
17.91

Stock options forfeited or
   canceled
148

 
(148
)
 
18.74

 
 
 
 
 
 
 
 
RSUs forfeited or cancelled
281

 
 
 
 
 
 
 
 
 
(281
)
 
20.37

Outstanding — June 30, 2016
5,922

 
10,449

 
$
13.70

 
7.84
 
$
132,494

 
8,052

 
$
19.80


 
Aggregate intrinsic value for options outstanding represents the difference between the closing stock price of our common stock and the exercise price of outstanding, in-the-money options. Our closing stock price as reported on the New York Stock Exchange as of June 30, 2016 was $26.38.
As of June 30, 2016, we had a total of $203.0 million in future share-based compensation expense related to all equity awards, net of estimated forfeitures, to be recognized over a weighted average period of 3.0 years.
Early Exercise of Stock Options and Purchase of Unvested Stock Awards
Certain of our stock options permit early exercise. Common stock purchased pursuant to an early exercise of stock options or unvested stock awards is not deemed to be outstanding for financial reporting purposes until those shares vest. Therefore, cash received in exchange for unvested shares is recorded as a liability and is transferred into common stock and additional paid-in capital as the shares vest. Upon termination of service, we may, at our discretion, repurchase unvested shares acquired through early exercise of stock options or purchase of unvested stock awards at a price equal to the price per share paid upon the exercise of such options or the purchase of such unvested stock awards. As of June 30, 2016 and December 31, 2015, there were 0.2 million and 0.3 million shares, respectively, outstanding as a result of the early exercise of stock options and purchase of unvested stock awards by our employees and directors that were classified as accrued liabilities for an aggregated amount of $0.7 million and $1.0 million, respectively.
Net Loss Per Share
Net Loss Per Share
Note 9. Net Loss Per Share
Basic net loss per share is computed by dividing 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 outstanding share-based awards, to the extent dilutive. Basic and diluted net loss per share were the same for each period presented as the inclusion of all potential common stock outstanding would have been anti-dilutive.
The following table presents the calculation of basic and diluted net loss per share for the periods presented (in thousands, except per share data):
 
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
2016
 
2015
 
2016
 
2015
Net loss
$
(26,254
)
 
$
(21,482
)
 
$
(53,425
)
 
$
(40,650
)
Weighted-average shares used to compute basic and diluted net loss per share
92,174


86,390


91,351


81,390

Net loss per share, basic and diluted
$
(0.28
)
 
$
(0.25
)
 
$
(0.58
)
 
$
(0.50
)

 
The anti-dilutive securities excluded from the shares used to calculate the diluted net loss per share are as follows (in thousands):
 
 
As of June 30,
2016
 
2015
Shares subject to outstanding common stock options and employee stock
   purchase plan
10,514

 
12,106

Restricted stock units
8,052

 
4,749

 
18,566

 
16,855

Income Taxes
Income Taxes
Note 10. Income Taxes
The effective tax rates for the three and six months ended June 30, 2016 and 2015 were less than 1%.  The effective tax rates differ from the statutory rate primarily as a result of not recognizing a deferred tax asset for U.S. losses due to having a full valuation allowance against U.S. deferred tax assets. There were no material changes to the unrecognized tax benefits during the three and six months ended June 30, 2016 and 2015.
In April 2009, Zendesk’s entity in Denmark (“Zendesk Denmark”) transferred certain assets to Zendesk’s U.S. entity. In April 2015, the Danish Tax Authority (“SKAT”) issued a letter of intent in contemplation of adjusting the value of the reported asset transfer. We submitted a written rebuttal to SKAT’s proposal in August 2015. In March 2016, we received an assessment from SKAT indicating that SKAT believes the value of the transferred assets to be $5.4 million. SKAT’s assessment would give rise to a potential payment of $1.9 million, including income tax and interest. We disagree with SKAT’s findings and will continue to contest this assessment with the Danish tax authorities. We believe that the ultimate outcome of this matter will not have a material impact on our consolidated financial condition.
Geographic Information
Geographic Information
Note 11. Geographic Information
Our chief operating decision maker reviews the financial information presented on a consolidated basis for purposes of allocating resources and evaluating our financial performance. Accordingly, we have determined that we operate in a single reporting segment.
Revenue
The following table presents our revenue by geographic areas, as determined based on the billing address of our customers (in thousands):
 
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
2016
 
2015
 
2016
 
2015
United States
$
40,068

 
$
26,854

 
$
77,635

 
$
49,706

EMEA
20,776

 
13,461

 
39,607

 
26,037

Other
13,356

 
7,912

 
25,417

 
14,718

Total
$
74,200

 
$
48,227

 
$
142,659

 
$
90,461


 
Long-Lived Assets
The following table presents our long-lived assets by geographic areas (in thousands):
 
 
As of
June 30, 2016
 
As of
December 31, 2015
United States
$
24,827

 
$
26,696

EMEA
10,591

 
10,351

APAC
5,880

 
5,332

Total
$
41,298

 
$
42,379


 
The carrying values of capitalized internal-use software and intangible assets are excluded from the balance of long-lived assets presented in the table above.
Overview and Basis of Presentation (Policies)
Basis of Presentation
These unaudited condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles, or GAAP, and applicable rules and regulations of the Securities and Exchange Commission, or SEC, regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in our Annual Report on Form 10-K for the year ended December 31, 2015, filed on February 26, 2016. There have been no changes to our significant accounting policies described in the Annual Report on Form 10-K that have had a material impact on our condensed consolidated financial statements and related notes.
The consolidated balance sheet as of December 31, 2015 included herein was derived from the audited financial statements as of that date. The unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the financial position, results of operations, our comprehensive loss and cash flows for the interim periods, but are not necessarily indicative of the results of operations to be anticipated for the full year ending December 31, 2016.
Use of Estimates
The preparation of consolidated financial statements in conformity with GAAP requires management to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenue and expenses during the reported periods.
Significant items subject to such estimates and assumptions include the fair value of share-based awards, acquired intangible assets and goodwill, unrecognized tax benefits, the useful lives of acquired intangible assets and property and equipment, the capitalization and estimated useful life of capitalized internal-use software, and financial forecasts used in currency hedging.
These estimates are based on information available as of the date of the financial statements; therefore, actual results could differ from those estimates.
Recently Issued and Adopted Accounting Pronouncements
In May 2014, the FASB issued new revenue guidance that provides principles for recognizing revenue to which an entity expects to be entitled for the transfer of promised goods or services to customers. In August 2015, the FASB deferred the effective date of adoption by one year. As currently issued and amended, the new guidance is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period, though early adoption is permitted for annual reporting periods beginning after December 15, 2016. The amendment may be applied retrospectively to each prior period presented, or with the cumulative effect recognized as of the date of initial adoption. We have not yet selected a transition method and continue to evaluate the effect of the standard on our consolidated financial statements, including revenue and commissions.
In February 2016, the FASB issued ASU 2016-2 regarding ASC Topic 842 "Leases." This new standard requires lessees to recognize most leases on their balance sheets as lease liabilities with corresponding right-of-use assets and eliminates certain real estate-specific provisions. The new guidance is effective for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period. Early adoption is permitted. We are currently evaluating the impact of this standard on our consolidated financial statements.
In March 2016, the FASB issued ASU 2016-9 regarding Topic 718 "Compensation - Stock Compensation." This amendment changes certain aspects of accounting for share-based compensation to employees, including the recognition of income tax effects of awards when the awards vest or are settled, requirements on net share settlement to cover tax withholding, and accounting for forfeitures. The new guidance is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early adoption is permitted. We do not expect the adoption of this standard to have a significant impact on our consolidated financial statements.
Business Combination (Tables)
Schedule of Purchase Price Allocation for Acquisitions
Net tangible assets acquired
$
2,140

Net deferred tax liability recognized
(1,979
)
Identifiable intangible assets:
 

Developed technology
8,800

Customer relationships
500

Goodwill
36,896

Total purchase price
$
46,357

Financial Instruments (Tables)
The following tables present information about our cash equivalents and marketable securities measured at fair value on a recurring basis as of June 30, 2016 and December 31, 2015 based on the three-tier fair value hierarchy (in thousands):
 
 
Fair Value Measurement at
June 30, 2016
Level 1
 
Level 2
 
Total
Description
 
 
 
 
 
Corporate bonds
$

 
$
88,441

 
$
88,441

Commercial paper

 
36,732

 
36,732

Agency securities

 
20,397

 
20,397

Asset-backed securities

 
19,032

 
19,032

U.S. treasury securities

 
14,748

 
14,748

Money market funds
$
14,025

 

 
14,025

Total
$
14,025

 
$
179,350

 
$
193,375

Included in cash and cash equivalents
 
 
 
 
$
35,620

Included in marketable securities
 
 
 
 
$
157,755

 
Fair Value Measurement at
December 31, 2015
Level 1
 
Level 2
 
Total
Description
 
 
 
 
 
Corporate bonds
$

 
$
31,761

 
$
31,761

Money market funds
21,338

 

 
21,338

Asset-backed securities

 
7,998

 
7,998

Commercial paper

 
5,992

 
5,992

U.S. treasury securities

 
4,001

 
4,001

Agency securities

 
1,998

 
1,998

Total
$
21,338

 
$
51,750

 
$
73,088

Included in cash and cash equivalents
 
 
 
 
$
21,338

Included in marketable securities
 
 
 
 
$
51,750

The following table classifies our marketable securities by contractual maturity as of June 30, 2016 and December 31, 2015 (in thousands):
 
 
June 30,
2016
 
December 31,
2015
Due in one year or less
$
106,130

 
$
29,414

Due after one year
51,625

 
22,336

Total
$
157,755

 
$
51,750

The following tables present information about derivative instruments on our consolidated balance sheets as of June 30, 2016 and December 31, 2015 (in thousands):
 
 
June 30, 2016
Asset Derivatives
 
Liability Derivatives
Derivative Instrument
Balance Sheet Location
 
Fair Value
(Level 2)
 
Balance Sheet Location
 
Fair Value
(Level 2)
Foreign currency forward contracts
Other current assets
 
$
963

 
Accrued liabilities
 
$
1,624

Foreign currency forward contracts
Other assets
 
34

 
Other liabilities
 
505

Total
 
 
$
997

 
 
 
$
2,129

 
December 31, 2015
Asset Derivatives
 
Liability Derivatives
Derivative Instrument
Balance Sheet Location
 
Fair Value
(Level 2)
 
Balance Sheet Location
 
Fair Value
(Level 2)
Foreign currency forward contracts
Other current assets
 
$
408

 
Accrued liabilities
 
$
1,081

Total
 
 
$
408

 
 
 
$
1,081

The following table presents information about our derivative instruments on the statement of operations for the three and six months ended June 30, 2016 (in thousands):
 
 
 
 
Three Months Ended June 30, 2016
 
Six Months Ended June 30, 2016
Hedging Instrument
Location of Gain (Loss) Reclassified into Earnings
 
Loss Recognized in AOCI
 
Gain Reclassified from AOCI into Earnings
 
Loss Recognized in AOCI
 
Loss Reclassified from AOCI into Earnings
Foreign currency forward contracts
Revenue, cost of revenue, operating expenses
 
$
(2,772
)
 
$
114

 
$
(425
)
 
$
(148
)
Total
 
 
$
(2,772
)
 
$
114

 
$
(425
)
 
$
(148
)
Property and Equipment (Tables)
Components of Property and Equipment
Property and equipment, net consists of the following (in thousands):  
 
 
June 30,
2016
 
December 31,
2015
Hosting equipment
$
30,763

 
$
26,920

Capitalized internal-use software
24,391

 
22,418

Leasehold improvements
21,123

 
19,577

Computer equipment and software
9,529

 
7,682

Furniture and fixtures
6,249

 
5,739

Construction in progress
4,358

 
4,157

Total
96,413

 
86,493

Less: accumulated depreciation and amortization
(40,679
)
 
(29,953
)
Property and equipment, net
$
55,734

 
$
56,540

Goodwill and Acquired Intangible Assets (Tables)
The changes in the carrying amount of goodwill for the six months ended June 30, 2016 are as follows (in thousands):
 
Balance as of December 31, 2015
$
45,346

Goodwill adjustments
166

Foreign currency translation adjustments
481

Balance as of June 30, 2016
$
45,993

Acquired intangible assets subject to amortization as of June 30, 2016 and December 31, 2015 consist of the following (in thousands).
 
 
As of June 30, 2016
Cost
 
Accumulated
Amortization
 
Foreign 
Currency Translation Adjustments
 
Net
 
Remaining Useful Life
 
 
 
 
 
 
 
 
(In years)
Developed technology
$
14,000

 
$
(4,849
)
 
$
(136
)
 
$
9,015

 
3.3
Customer relationships
1,800

 
(824
)
 
(36
)
 
940

 
2.6
 
$
15,800

 
$
(5,673
)
 
$
(172
)
 
$
9,955

 
 
 
 
As of December 31, 2015
Cost
 
Accumulated
Amortization
 
Foreign
Currency Translation Adjustments
 
Net
 
Remaining Useful Life
 
 
 
 
 
 
 
 
(In years)
Developed technology
$
14,000

 
$
(3,133
)
 
$
(279
)
 
$
10,587

 
3.7
Customer relationships
1,800

 
(606
)
 
(78
)
 
1,117

 
3.1
 
$
15,800

 
$
(3,739
)
 
$
(357
)
 
$
11,704

 
 
Estimated future amortization expense as of June 30, 2016 is as follows (in thousands):
 
Remainder of 2016
$
1,889

2017
3,357

2018
2,131

2019
2,066

2020
512

 
$
9,955

Common Stock and Stockholders' Equity (Tables)
Summary of Stock Option and RSU Award Activity
The following table summarizes our stock option and RSU award activities for the six months ended June 30, 2016 (in thousands, except per share information):
 
 
 
 
Options Outstanding
 
RSUs Outstanding
Shares
Available
for Grant
 
Number of
Shares
 
Weighted
Average
Exercise Price
 
Weighted
Average
Remaining
Contractual
Term
 
Aggregate
Intrinsic
Value
 
Outstanding
RSUs
 
Weighted
Average
Grant Date
Fair Value
 
 
 
 
 
 
(In years)
 
 
 
 
 
 
Outstanding — January 1, 2016
4,323

 
10,778

 
$
11.94

 
7.96
 
$
156,262

 
6,417

 
$
19.54

Increase in authorized shares
5,716

 
 
 
 
 
 
 
 
 
 
 
 
Stock options granted
(1,158
)
 
1,158

 
22.97

 
 
 
 
 
 
 
 
RSUs granted
(3,388
)
 
 
 
 
 
 
 
 
 
3,388

 
19.51

Stock options exercised
 
 
(1,339
)
 
7.01

 
 
 
 
 
 
 
 
RSUs vested
 
 
 
 
 
 
 
 
 
 
(1,472
)
 
17.91

Stock options forfeited or
   canceled
148

 
(148
)
 
18.74

 
 
 
 
 
 
 
 
RSUs forfeited or cancelled
281

 
 
 
 
 
 
 
 
 
(281
)
 
20.37

Outstanding — June 30, 2016
5,922

 
10,449

 
$
13.70

 
7.84
 
$
132,494

 
8,052

 
$
19.80

Net Loss Per Share (Tables)
The following table presents the calculation of basic and diluted net loss per share for the periods presented (in thousands, except per share data):
 
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
2016
 
2015
 
2016
 
2015
Net loss
$
(26,254
)
 
$
(21,482
)
 
$
(53,425
)
 
$
(40,650
)
Weighted-average shares used to compute basic and diluted net loss per share
92,174


86,390


91,351


81,390

Net loss per share, basic and diluted
$
(0.28
)
 
$
(0.25
)
 
$
(0.58
)
 
$
(0.50
)
The anti-dilutive securities excluded from the shares used to calculate the diluted net loss per share are as follows (in thousands):
 
 
As of June 30,
2016
 
2015
Shares subject to outstanding common stock options and employee stock
   purchase plan
10,514

 
12,106

Restricted stock units
8,052

 
4,749

 
18,566

 
16,855

Geographic Information (Tables)
The following table presents our revenue by geographic areas, as determined based on the billing address of our customers (in thousands):
 
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
2016
 
2015
 
2016
 
2015
United States
$
40,068

 
$
26,854

 
$
77,635

 
$
49,706

EMEA
20,776

 
13,461

 
39,607

 
26,037

Other
13,356

 
7,912

 
25,417

 
14,718

Total
$
74,200

 
$
48,227

 
$
142,659

 
$
90,461

The following table presents our long-lived assets by geographic areas (in thousands):
 
 
As of
June 30, 2016
 
As of
December 31, 2015
United States
$
24,827

 
$
26,696

EMEA
10,591

 
10,351

APAC
5,880

 
5,332

Total
$
41,298

 
$
42,379

Overview and Basis of Presentation - Additional Information (Details) (USD $)
Share data in Millions, except Per Share data, unless otherwise specified
6 Months Ended 3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended 1 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Customer Concentration Risk
Accounts Receivable
customer
Jun. 30, 2016
Customer Concentration Risk
Sales Revenue, Net
Customer
Jun. 30, 2015
Customer Concentration Risk
Sales Revenue, Net
Customer
Jun. 30, 2016
Customer Concentration Risk
Sales Revenue, Net
customer
Jun. 30, 2015
Customer Concentration Risk
Sales Revenue, Net
Customer
Jun. 30, 2016
Customer Concentration Risk
Sales Revenue, Net
Maximum
Jun. 30, 2015
Customer Concentration Risk
Sales Revenue, Net
Maximum
Jun. 30, 2015
Customer Concentration Risk
Sales Revenue, Net
Maximum
Mar. 31, 2015
Follow On Public Offering
Overview And Basis Of Presentation [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Year founded
2007 
 
 
 
 
 
 
 
 
 
 
Reincorporated date
Apr. 30, 2009 
 
 
 
 
 
 
 
 
 
 
Shares of common stock sold in initial public offering
 
 
 
 
 
 
 
 
 
 
8.8 
Share price
$ 26.38 
 
 
 
 
 
 
 
 
 
$ 22.75 
Proceeds from follow-on public offering, net of issuance costs
$ 0 
$ 190,110,000 
 
 
 
 
 
 
 
 
$ 190,100,000 
Underwriting discounts and commission on IPO
 
 
 
 
 
 
 
 
 
 
8,700,000 
Offering expenses
 
 
 
 
 
 
 
 
 
 
$ 900,000 
Number of customers
 
 
 
 
 
 
Percentage of total revenue or receivables, floor
 
 
10.00% 
 
 
10.00% 
 
10.00% 
10.00% 
10.00% 
 
Business Combination - Additional Information (Details) (USD $)
In Millions, except Share data in Thousands, unless otherwise specified
0 Months Ended 6 Months Ended
Oct. 13, 2015
Jun. 30, 2016
RSUs Outstanding
 
 
Business Acquisition [Line Items]
 
 
RSUs issued pursuant to retention plan, in connection with the acquisition
 
3,388 
We Are Cloud, Inc
 
 
Business Acquisition [Line Items]
 
 
Percent of outstanding shares acquired
100.00% 
 
Business acquisition, fair value of consideration transferred, cash
$ 46.4 
 
Cash portion of fair value consideration transferred
7.0 
 
Number of months consideration were held in escrow, up to
18 months 
 
Number of months consideration held in escrow, to be released
12 months 
 
Business acquisition, Increase to goodwill
 
0.2 
Business acquisition, transaction costs incurred
$ 1.0 
 
We Are Cloud, Inc |
RSUs Outstanding
 
 
Business Acquisition [Line Items]
 
 
RSUs issued pursuant to retention plan, in connection with the acquisition
500 
 
Vesting period
3 years 
 
We Are Cloud, Inc |
Developed technology
 
 
Business Acquisition [Line Items]
 
 
Acquired intangible assets, useful lives
4 years 6 months 
 
We Are Cloud, Inc |
Customer relationships
 
 
Business Acquisition [Line Items]
 
 
Acquired intangible assets, useful lives
4 years 6 months 
 
Business Combination - Schedule of Purchase Price Allocation for Acquisitions (Details) (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2016
Dec. 31, 2015
Oct. 13, 2015
We Are Cloud, Inc
Oct. 13, 2015
We Are Cloud, Inc
Developed technology
Oct. 13, 2015
We Are Cloud, Inc
Customer relationships
Business Acquisition [Line Items]
 
 
 
 
 
Net tangible assets acquired
 
 
$ 2,140 
 
 
Net deferred tax liability recognized
 
 
(1,979)
 
 
Intangible assets
 
 
 
8,800 
500 
Goodwill
45,993 
45,346 
36,896 
 
 
Total purchase price
 
 
$ 46,357 
 
 
Financial Instruments - Financial Assets Measured at Fair Value on Recurring Basis (Details) (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2016
Dec. 31, 2015
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
 
 
Marketable Securities
$ 157,755 
$ 51,750 
Fair Value Measurements, Recurring
 
 
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
 
 
Total fair value of financial assets
193,375 
73,088 
Cash and Cash Equivalents, Fair Value Disclosure
35,620 
21,338 
Marketable Securities
157,755 
51,750 
Fair Value Measurements, Recurring |
Corporate bonds
 
 
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
 
 
Total fair value of financial assets
88,441 
31,761 
Fair Value Measurements, Recurring |
Commercial paper
 
 
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
 
 
Total fair value of financial assets
36,732 
5,992 
Fair Value Measurements, Recurring |
Agency securities
 
 
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
 
 
Total fair value of financial assets
20,397 
1,998 
Fair Value Measurements, Recurring |
Asset-backed securities
 
 
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
 
 
Total fair value of financial assets
19,032 
7,998 
Fair Value Measurements, Recurring |
U.S. treasury securities
 
 
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
 
 
Total fair value of financial assets
14,748 
4,001 
Fair Value Measurements, Recurring |
Money market funds
 
 
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
 
 
Total fair value of financial assets
14,025 
21,338 
Fair Value Measurements, Recurring |
Level 1
 
 
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
 
 
Total fair value of financial assets
14,025 
21,338 
Fair Value Measurements, Recurring |
Level 1 |
Corporate bonds
 
 
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
 
 
Total fair value of financial assets
Fair Value Measurements, Recurring |
Level 1 |
Commercial paper
 
 
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
 
 
Total fair value of financial assets
Fair Value Measurements, Recurring |
Level 1 |
Agency securities
 
 
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
 
 
Total fair value of financial assets
Fair Value Measurements, Recurring |
Level 1 |
Asset-backed securities
 
 
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
 
 
Total fair value of financial assets
Fair Value Measurements, Recurring |
Level 1 |
U.S. treasury securities
 
 
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
 
 
Total fair value of financial assets
Fair Value Measurements, Recurring |
Level 1 |
Money market funds
 
 
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
 
 
Total fair value of financial assets
14,025 
21,338 
Fair Value Measurements, Recurring |
Level 2
 
 
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
 
 
Total fair value of financial assets
179,350 
51,750 
Fair Value Measurements, Recurring |
Level 2 |
Corporate bonds
 
 
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
 
 
Total fair value of financial assets
88,441 
31,761 
Fair Value Measurements, Recurring |
Level 2 |
Commercial paper
 
 
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
 
 
Total fair value of financial assets
36,732 
5,992 
Fair Value Measurements, Recurring |
Level 2 |
Agency securities
 
 
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
 
 
Total fair value of financial assets
20,397 
1,998 
Fair Value Measurements, Recurring |
Level 2 |
Asset-backed securities
 
 
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
 
 
Total fair value of financial assets
19,032 
7,998 
Fair Value Measurements, Recurring |
Level 2 |
U.S. treasury securities
 
 
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
 
 
Total fair value of financial assets
14,748 
4,001 
Fair Value Measurements, Recurring |
Level 2 |
Money market funds
 
 
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
 
 
Total fair value of financial assets
$ 0 
$ 0 
Financial Instruments - Additional Information (Details) (USD $)
3 Months Ended 6 Months Ended 12 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2015
Dec. 31, 2015
Jun. 30, 2016
Jun. 30, 2016
Foreign currency forward contracts
Dec. 31, 2015
Foreign currency forward contracts
Jun. 30, 2016
Foreign currency forward contracts
Minimum
Jun. 30, 2016
Foreign currency forward contracts
Maximum
Dec. 31, 2015
Level 3
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
 
 
 
 
 
 
 
 
 
Securities within Level 3 of the fair value hierarchy
 
 
 
 
 
 
 
 
$ 0 
Transfers from Level 2 to Level 1
 
 
 
 
 
 
 
 
Transfer from fair value measurement level 1 to level 2
 
 
 
 
 
 
 
 
Gross unrealized gains or losses for cash equivalent and marketable securities
 
 
 
 
 
 
 
 
Securities that were in an unrealized loss position for more than 12 months.
 
 
 
 
 
 
 
 
Derivative, maturity
 
 
 
 
 
 
3 months 
18 months 
 
Unrealized gain related to effective portion of changes in fair value of foreign currency forward contracts
 
 
 
 
1,000,000 
 
 
 
 
Reclassification from accumulated other comprehensive income into earnings over next 12 month
 
 
 
 
600,000 
 
 
 
 
Notional value
 
 
 
 
93,300,000.0 
60,800,000.0 
 
 
 
Gains / losses on derivative instruments
$ 0 
$ 0 
 
 
 
 
 
 
 
Financial Instruments - Marketable Securities by Contractual Maturity (Details) (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2016
Dec. 31, 2015
Fair Value Disclosures [Abstract]
 
 
Due in one year or less
$ 106,130 
$ 29,414 
Due after one year
51,625 
22,336 
Total
$ 157,755 
$ 51,750 
Financial Instruments - Schedule of Derivative Instruments on Consolidated Balance Sheets (Details) (Designated as Hedging Instrument, Level 2, USD $)
In Thousands, unless otherwise specified
Jun. 30, 2016
Dec. 31, 2015
Derivatives Fair Value [Line Items]
 
 
Asset Derivatives, Fair Value
$ 997 
$ 408 
Liability Derivatives, Fair Value
2,129 
1,081 
Foreign currency forward contracts |
Other current assets
 
 
Derivatives Fair Value [Line Items]
 
 
Asset Derivatives, Fair Value
963 
408 
Foreign currency forward contracts |
Other assets
 
 
Derivatives Fair Value [Line Items]
 
 
Asset Derivatives, Fair Value
34 
 
Foreign currency forward contracts |
Accrued liabilities
 
 
Derivatives Fair Value [Line Items]
 
 
Liability Derivatives, Fair Value
1,624 
1,081 
Foreign currency forward contracts |
Other liabilities
 
 
Derivatives Fair Value [Line Items]
 
 
Liability Derivatives, Fair Value
$ 505 
 
Financial Instruments - Schedule of Derivative Instruments on Statement of Operations (Details) (Designated as Hedging Instrument, USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2016
Derivative Instruments Gain Loss [Line Items]
 
 
Loss Recognized in AOCI
$ (2,772)
$ (425)
Gain Reclassified from AOCI into Earnings
114 
(148)
Revenue, cost of revenue, operating expenses |
Foreign currency forward contracts
 
 
Derivative Instruments Gain Loss [Line Items]
 
 
Loss Recognized in AOCI
(2,772)
(425)
Gain Reclassified from AOCI into Earnings
$ 114 
$ (148)
Property and Equipment - Components of Property and Equipment (Details) (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2016
Dec. 31, 2015
Property Plant And Equipment [Line Items]
 
 
Property and equipment, gross
$ 96,413 
$ 86,493 
Less: accumulated depreciation and amortization
(40,679)
(29,953)
Property and equipment, net
55,734 
56,540 
Hosting equipment
 
 
Property Plant And Equipment [Line Items]
 
 
Property and equipment, gross
30,763 
26,920 
Capitalized internal-use software
 
 
Property Plant And Equipment [Line Items]
 
 
Property and equipment, gross
24,391 
22,418 
Leasehold improvements
 
 
Property Plant And Equipment [Line Items]
 
 
Property and equipment, gross
21,123 
19,577 
Computer equipment and software
 
 
Property Plant And Equipment [Line Items]
 
 
Property and equipment, gross
9,529 
7,682 
Furniture and fixtures
 
 
Property Plant And Equipment [Line Items]
 
 
Property and equipment, gross
6,249 
5,739 
Construction in progress
 
 
Property Plant And Equipment [Line Items]
 
 
Property and equipment, gross
$ 4,358 
$ 4,157 
Property and Equipment - Additional Information (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Dec. 31, 2015
Property, Plant and Equipment [Abstract]
 
 
 
 
 
Depreciation expense
$ 3.9 
$ 2.6 
$ 7.6 
$ 4.9 
 
Amortization expense of capitalized internal-use software
1.8 
1.5 
3.5 
3.0 
 
Carrying value of capitalized internal-use software
14.4 
 
14.4 
 
14.1 
Capitalized internal-use software included in construction in progress
$ 3.0 
 
$ 3.0 
 
$ 1.5 
Goodwill and Acquired Intangible Assets - Changes in Carrying Amount of Goodwill (Details) (USD $)
In Thousands, unless otherwise specified
6 Months Ended
Jun. 30, 2016
Goodwill [Roll Forward]
 
Balance as of December 31, 2015
$ 45,346 
Goodwill adjustments
166 
Foreign currency translation adjustments
481 
Balance as of June 30, 2016
$ 45,993 
Goodwill and Acquired Intangible Assets - Acquired Intangible Assets Subject to Amortization (Details) (USD $)
In Thousands, unless otherwise specified
6 Months Ended 12 Months Ended
Jun. 30, 2016
Dec. 31, 2015
Finite Lived Intangible Assets [Line Items]
 
 
Cost
$ 15,800 
$ 15,800 
Accumulated Amortization
(5,673)
(3,739)
Foreign Currency Translation Adjustments
(172)
(357)
Net
9,955 
11,704 
Developed technology
 
 
Finite Lived Intangible Assets [Line Items]
 
 
Cost
14,000 
14,000 
Accumulated Amortization
(4,849)
(3,133)
Foreign Currency Translation Adjustments
(136)
(279)
Net
9,015 
10,587 
Remaining Useful Life
3 years 3 months 2 days 
3 years 8 months 12 days 
Customer relationships
 
 
Finite Lived Intangible Assets [Line Items]
 
 
Cost
1,800 
1,800 
Accumulated Amortization
(824)
(606)
Foreign Currency Translation Adjustments
(36)
(78)
Net
$ 940 
$ 1,117 
Remaining Useful Life
2 years 7 months 2 days 
3 years 1 month 6 days 
Goodwill and Acquired Intangible Assets - Additional Information (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
 
 
 
 
Amortization expense
$ 1.0 
$ 0.4 
$ 1.9 
$ 1.0 
Goodwill and Acquired Intangible Assets - Estimated Future Amortization Expense (Details) (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2016
Dec. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
 
 
Remainder of 2016
$ 1,889 
 
2017
3,357 
 
2018
2,131 
 
2019
2,066 
 
2020
512 
 
Net
$ 9,955 
$ 11,704 
Credit Facility - Additional Information (Details) (Silicon Valley Bank, USD $)
1 Months Ended
Jun. 30, 2015
Revolving Line of Credit
 
Line Of Credit Facility [Line Items]
 
Credit facility
$ 20,000,000.0 
Percentage of interest rate above the prime rate
2.00% 
Equipment Line of Credit
 
Line Of Credit Facility [Line Items]
 
Credit facility
$ 10,000,000.0 
Credit facility interest rate
2.50% 
Commitments and Contingencies - Additional Information (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2016
sqft
Jun. 30, 2015
Jun. 30, 2016
sqft
Jun. 30, 2015
Other Commitments [Line Items]
 
 
 
 
Rent expense
$ 2.5 
$ 1.8 
$ 4.7 
$ 3.4 
Square feet of additional office space
18,000 
 
18,000 
 
Total amount of rent to be paid
$ 4.6 
 
$ 4.6 
 
Capital Lease Agreements
 
 
 
 
Other Commitments [Line Items]
 
 
 
 
Lease expiration date
 
 
Mar. 31, 2015 
 
Common Stock and Stockholders' Equity - Additional Information (Details) (USD $)
In Millions, except Share data, unless otherwise specified
0 Months Ended 6 Months Ended 0 Months Ended 0 Months Ended 6 Months Ended
May 6, 2016
Jun. 30, 2016
Dec. 31, 2015
Jun. 30, 2016
2009 Stock Option and Grant Plan
Jan. 2, 2016
2014 Plan
Employee Stock Option
Jun. 30, 2016
2014 Plan
Employee Stock Option
Jan. 2, 2016
Employee Stock Purchase Plan
Jun. 30, 2016
Employee Stock Purchase Plan
Class Of Stock [Line Items]
 
 
 
 
 
 
 
 
Common stock, shares authorized
 
400,000,000 
400,000,000 
 
 
 
 
 
Common stock, par value
 
$ 0.01 
$ 0.01 
 
 
 
 
 
Common stock, shares issued
 
93,900,000 
90,900,000 
 
 
 
 
 
Common stock, shares outstanding
 
93,400,000 
90,300,000 
 
 
 
 
 
Common stock shares outstanding, subject to repurchase
 
200,000 
300,000 
 
 
 
 
 
Preferred stock, shares authorized
 
10,000,000 
10,000,000 
 
 
 
 
 
Preferred stock, par value
 
$ 0.01 
$ 0.01 
 
 
 
 
 
Preferred stock, shares issued
 
 
 
 
 
 
Preferred stock, shares outstanding
 
 
 
 
 
 
 
Percentage of purchase price of shares lower of the fair market value of common stock employees are able to purchase shares
 
 
 
 
 
 
 
85.00% 
Common shares purchased
 
 
 
 
 
 
 
300,000 
Increase in authorized shares
 
5,716,000.000 
 
 
4,500,000.000 
 
900,000.000 
 
Shares of common stock available for issuance
 
5,922,000 
4,323,000 
 
5,900,000 
 
3,500,000 
Stock options granted, shares
1,200,000 
1,158,000 
 
 
 
 
 
 
Share price
 
$ 26.38 
 
 
 
 
 
 
Future period share-based compensation expense
 
$ 203.0 
 
 
 
 
 
 
Future period share-based compensation expense, period to recognized
 
3 years 
 
 
 
 
 
 
Shares outstanding as a result of early exercise of stock options and purchase of unvested stock awards
 
200,000 
300,000 
 
 
 
 
 
Accrued liability for shares outstanding as a result of early exercise of stock options and purchase of unvested stock awards
 
$ 0.7 
$ 1.0 
 
 
 
 
 
Common Stock and Stockholders' Equity - Summary of Stock Option and RSU Award Activity (Details) (USD $)
In Thousands, except Share data, unless otherwise specified
0 Months Ended 6 Months Ended 12 Months Ended
May 6, 2016
Jun. 30, 2016
Dec. 31, 2015
Shares Available for Grant
 
 
 
Outstanding — January 1, 2016
 
4,323,000 
 
Increase in authorized shares
 
5,716,000.000 
 
Stock options granted
 
(1,158,000)
 
RSUs granted
 
(3,388,000)
 
Stock options forfeited or canceled
 
148,000 
 
RSUs forfeited or cancelled
 
281,000 
 
Outstanding — June 30, 2016
 
5,922,000 
4,323,000 
Number of Shares
 
 
 
Balance at the beginning of the period, shares
 
10,778,000 
 
Stock options granted, shares
1,200,000 
1,158,000 
 
Stock options exercised, shares
 
(1,339,000)
 
Stock options forfeited or canceled, shares
 
(148,000)
 
Balance at the end of the period, shares
 
10,449,000 
10,778,000 
Weighted-Average Exercise Price
 
 
 
Balance at the beginning of the period (usd per share)
 
$ 11.94 
 
Stock options granted (usd per share)
 
$ 22.97 
 
Stock options exercised (usd per share)
 
$ 7.01 
 
Stock options forfeited or canceled (usd per share)
 
$ 18.74 
 
Balance at the end of the period (usd per share)
 
$ 13.70 
$ 11.94 
Weighted Average Remaining Contractual Term
 
 
 
Options Outstanding, Weighted-average remaining contractual term
 
7 years 10 months 2 days 
7 years 11 months 16 days 
Aggregate Intrinsic Value
 
 
 
Options Outstanding, Aggregate Intrinsic Value, Balance at beginning of period
 
$ 156,262 
 
Options Outstanding, Aggregate Intrinsic Value, Balance at end of period
 
$ 132,494 
$ 156,262 
RSUs Outstanding
 
 
 
Outstanding RSUs
 
 
 
Balance at the beginning of the period
 
6,417,000 
 
RSUs granted
 
3,388,000 
 
RSUs vested
 
(1,472,000)
 
RSUs forfeited or cancelled
 
(281,000)
 
Balance at the end of the period
 
8,052,000 
 
Weighted-Average Grant Date Fair Value
 
 
 
Balance at the beginning of the period
 
$ 19.54 
 
RSUs granted
 
$ 19.51 
 
RSUs vested
 
$ 17.91 
 
RSUs forfeited or cancelled
 
$ 20.37 
 
Balance at the end of the period
 
$ 19.80 
 
Net Loss per Share - Computation of Basic and Diluted Net Loss per Share of Common Stock (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Earnings Per Share [Abstract]
 
 
 
 
Net loss
$ (26,254)
$ (21,482)
$ (53,425)
$ (40,650)
Weighted-average shares used to compute basic and diluted net loss per share
92,174 
86,390 
91,351 
81,390 
Net loss per share:
 
 
 
 
Basic and diluted (usd per share)
$ (0.28)
$ (0.25)
$ (0.58)
$ (0.50)
Net Loss per Share - Schedule of Anti-Dilutive Securities Excluded from the Diluted per Share Calculation (Details)
In Thousands, unless otherwise specified
6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
 
 
Antidilutive securities excluded from computation of earnings per share amount (in shares)
18,566 
16,855 
Shares subject to outstanding common stock options and employee stock purchase plan
 
 
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
 
 
Antidilutive securities excluded from computation of earnings per share amount (in shares)
10,514 
12,106 
Restricted stock units
 
 
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
 
 
Antidilutive securities excluded from computation of earnings per share amount (in shares)
8,052 
4,749 
Income Taxes - Additional Information (Details) (USD $)
1 Months Ended 3 Months Ended 6 Months Ended
Mar. 31, 2016
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Schedule Of Effective Tax Rates [Line Items]
 
 
 
 
 
Effective income tax rate, percent, less than
 
 
 
1.00% 
 
Changes in unrecognized tax benefits
 
$ 0 
$ 0 
$ 0 
$ 0 
Income tax examination, penalties and interest expense
1,900,000 
 
 
 
 
Danish Tax Authority ("SKAT")
 
 
 
 
 
Schedule Of Effective Tax Rates [Line Items]
 
 
 
 
 
Income tax examination, valuation of transferred assets
$ 5,400,000 
 
 
 
 
Maximum
 
 
 
 
 
Schedule Of Effective Tax Rates [Line Items]
 
 
 
 
 
Effective income tax rate, percent, less than
 
1.00% 
1.00% 
 
1.00% 
Geographic Information - Additional Information (Details)
6 Months Ended
Jun. 30, 2016
segments
Segment Reporting [Abstract]
 
Number of reportable segments
Geographic Information - Schedule of Revenue by Geographic Areas (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Revenues From External Customers And Long Lived Assets [Line Items]
 
 
 
 
Revenue
$ 74,200 
$ 48,227 
$ 142,659 
$ 90,461 
United States
 
 
 
 
Revenues From External Customers And Long Lived Assets [Line Items]
 
 
 
 
Revenue
40,068 
26,854 
77,635 
49,706 
EMEA
 
 
 
 
Revenues From External Customers And Long Lived Assets [Line Items]
 
 
 
 
Revenue
20,776 
13,461 
39,607 
26,037 
Other
 
 
 
 
Revenues From External Customers And Long Lived Assets [Line Items]
 
 
 
 
Revenue
$ 13,356 
$ 7,912 
$ 25,417 
$ 14,718 
Geographic Information - Schedule of Long-Lived Assets by Geographic Areas (Details) (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2016
Jun. 30, 2015
Revenues From External Customers And Long Lived Assets [Line Items]
 
 
Long-lived assets
$ 41,298 
$ 42,379 
United States
 
 
Revenues From External Customers And Long Lived Assets [Line Items]
 
 
Long-lived assets
24,827 
26,696 
EMEA
 
 
Revenues From External Customers And Long Lived Assets [Line Items]
 
 
Long-lived assets
10,591 
10,351 
APAC
 
 
Revenues From External Customers And Long Lived Assets [Line Items]
 
 
Long-lived assets
$ 5,880 
$ 5,332