Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
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(State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification No.) |
Title of each class |
Trading |
Name of each exchange | ||
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The |
Large accelerated filer |
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Non-accelerated filer |
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Smaller reporting company |
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Emerging growth company |
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our ability to achieve profitability; |
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our competitive position and the effect of competition in our industry; |
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our ability to retain and attract new customers; |
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our ability to penetrate existing markets and develop new markets for our services; |
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our ability to retain or hire qualified accounting and other personnel; |
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our ability to successfully integrate acquired businesses, including the online video platform assets of Ooyala, Inc. and certain of its subsidiaries that we acquired during 2019; |
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our ability to protect our intellectual property and operate our business without infringing upon the intellectual property rights of others; |
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our ability to maintain the security and reliability of our systems; |
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our estimates with regard to our future performance and total potential market opportunity; |
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our expectations regarding the potential impact of the COVID-19 pandemic on our business, operations, and the markets in which we and our partners and customers operate; |
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our estimates regarding our anticipated results of operations, future revenue, bookings growth, capital requirements and our needs for additional financing; and |
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our goals and strategies, including those related to revenue and bookings growth. |
ITEM 1. |
FINANCIAL STATEMENTS |
June 30, 2020 |
December 31, 2019 |
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(in thousands, except share and per share data) |
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Assets |
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Current assets: |
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Cash and cash equivalents |
$ | |
$ | |
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Accounts receivable, net of allowance of $ |
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Prepaid expenses |
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Other current assets |
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Total current assets |
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Property and equipment, net |
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Operating lease right-of-use asset |
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Intangible assets, net |
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Goodwill |
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Other assets |
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Total assets |
$ | |
$ | |
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Liabilities and stockholders’ equity |
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Current liabilities: |
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Accounts payable |
$ | |
$ | |
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Accrued expenses |
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Operating lease liability |
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Deferred revenue |
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Total current liabilities |
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Operating lease liability, net of current portion |
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Debt |
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— |
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Other liabilities |
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Total liabilities |
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Commitments and contingencies (Note 10) |
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Stockholders’ equity: |
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Undesignated preferred stock, $ |
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Common stock, $ |
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Additional paid-in capital |
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Treasury stock, at cost; |
( |
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Accumulated other comprehensive loss |
( |
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Accumulated deficit |
( |
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Total stockholders’ equity |
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Total liabilities and stockholders’ equity |
$ | |
$ | |
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Three Months Ended June 30, |
Six Months Ended June 30, |
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2020 |
2019 |
2020 |
2019 |
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(in thousands, except share and per share data) |
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Revenue: |
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Subscription and support revenue |
$ | |
$ | |
$ | |
$ | |
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Professional services and other revenue |
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$ | |
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Total revenue |
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Cost of revenue: |
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Cost of subscription and support revenue |
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Cost of professional services and other revenue |
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Total cost of revenue |
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Gross profit |
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Operating expenses: |
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Research and development |
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Sales and marketing |
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General and administrative |
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Merger-related |
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Total operating expenses |
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Loss from operations |
( |
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Other (expense) income, net |
( |
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( |
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Loss before income taxes |
( |
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Provision for income taxes |
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Net loss |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
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Net loss per share - basic and diluted |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
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Weighted-average number of common shares used in computing net loss per share |
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Three Months Ended June 30, |
Six Months Ended June 30, |
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2020 |
2019 |
2020 |
2019 |
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(in thousands) |
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Net loss |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
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Other comprehensive income: |
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Foreign currency translation adjustments |
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( |
) |
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Comprehensive loss |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
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Three Months Ended June 30, |
Six Months Ended June 30, |
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2020 |
2019 |
2020 |
2019 |
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(in thousands, except share data) |
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Shares of common stock issued |
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Balance, beginning of period |
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Common stock issued upon acquisition |
— |
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— |
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Issuance of common stock upon exercise of stock options and pursuant to restricted stock units |
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Balance, end of period |
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Shares of treasury stock |
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Balance, beginning of period |
( |
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Balance, end of period |
( |
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Par value of common stock issued |
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Balance, beginning of period |
$ | |
$ | |
$ | |
$ | |
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Common stock issued upon acquisition |
— |
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— |
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Issuance of common stock upon exercise of stock options and pursuant to restricted stock units |
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— |
— |
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Balance, end of period |
$ | |
$ | |
$ | |
$ | |
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Value of treasury stock |
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Balance, beginning of period |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
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Balance, end of period |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
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Additional paid-in capital |
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Balance, beginning of period |
$ | |
$ | |
$ | |
$ | |
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Common stock issued upon acquisition |
— |
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— |
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Withholding tax on restricted stock units vesting |
( |
) | — |
( |
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Issuance of common stock upon exercise of stock options and pursuant to restricted stock units |
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Stock-based compensation expense |
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Balance, end of period |
$ | |
$ | |
$ | |
$ | |
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Accumulated deficit |
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Balance, beginning of period |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
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Net loss |
( |
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) | ( |
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Balance, end of period |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
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Accumulated other comprehensive loss |
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Balance, beginning of period |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
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Foreign currency translation adjustment |
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( |
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Balance, end of period |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
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Total stockholders’ equity |
$ | |
$ | |
$ | |
$ | |
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Six Months Ended June 30, |
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2020 |
2019 |
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(in thousands) |
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Operating activities |
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Net loss |
$ | ( |
) | $ | ( |
) | ||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |
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Depreciation and amortization |
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Stock-based compensation |
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Provision for reserves on accounts receivable |
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Changes in assets and liabilities: |
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Accounts receivable |
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( |
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Prepaid expenses and other current assets |
( |
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Other assets |
( |
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Accounts payable |
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Accrued expenses |
( |
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Operating leases |
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( |
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Deferred revenue |
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Net cash provided by (used in) operating activities |
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( |
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Investing activities |
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Purchases of property and equipment |
( |
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Cash paid for acquisition, net of cash acquired |
— |
( |
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Capitalized internal-use software costs |
( |
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Net cash used in investing activities |
( |
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Financing activities |
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Proceeds from exercise of stock options |
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Proceeds from debt |
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— |
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Debt paydown |
( |
) | — |
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Other financing activities |
( |
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Net cash provided by financing activities |
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Effect of exchange rate changes on cash and cash equivalents |
( |
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Net increase (decrease) in cash and cash equivalents |
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( |
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Cash and cash equivalents at beginning of period |
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Cash and cash equivalents at end of period |
$ |
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$ | |
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Supplemental disclosure of non-cash investing activities |
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Fair value of shares issued for acquisition of a business |
$ | — |
$ | |
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Supplemental disclosure of cash flow information |
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Cash paid for operating lease liabilities |
$ | |
$ |
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Accounts Receivable, net |
Contract Assets (current) |
Deferred Revenue (current) |
Deferred Revenue (non-current) |
Total Deferred Revenue |
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Balance at December 31, 2019 |
$ | |
$ | |
$ | |
$ | |
$ | |
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Balance at June 30, 2020 |
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June 30, 2020 |
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Description |
Contracted Maturity |
Cost |
Fair Market Value |
Balance Per Balance Sheet |
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Cash |
Demand |
$ | |
$ | |
$ | |
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Money market funds |
Demand |
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Total cash and cash equivalents |
$ | |
$ | |
$ | |
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December 31, 2019 |
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Description |
Contracted Maturity |
Cost |
Fair Market Value |
Balance Per Balance Sheet |
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Cash |
Demand |
$ | $ | $ | ||||||||||||
Money market funds |
Demand |
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Total cash and cash equivalents |
$ | $ | $ | |||||||||||||
Three Months Ended June 30, |
Six Months Ended June 30, |
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2020 |
2019 |
2020 |
2019 |
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Options outstanding |
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Restricted stock units outstanding |
Three Months Ended June 30, |
Six Months Ended June 30, |
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2020 |
2019 |
2020 |
2019 |
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Expected life in years |
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Risk-free interest rate |
% | % | % | % | ||||||||||||
Volatility |
% | % | % | % | ||||||||||||
Dividend yield |
— |
— |
— |
— |
Three Months Ended June 30, |
Six Months Ended June 30, |
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2020 |
2019 |
2020 |
2019 |
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Stock-based compensation: |
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Cost of subscription and support revenue |
$ | $ | $ | $ | ||||||||||||
Cost of professional services and other revenue |
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Research and development |
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Sales and marketing |
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General and administrative |
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$ | $ | $ | $ | |||||||||||||
Number of Shares |
Weighted-Average Exercise Price |
Weighted-Average Remaining Contractual Term (In Years) |
Aggregate Intrinsic Value (1) |
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Outstanding at December 31, 2019 |
$ | |||||||||||||||
Granted |
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Exercised |
( |
) | $ | |||||||||||||
Canceled |
( |
) | ||||||||||||||
Outstanding at June 30, 2020 |
$ | $ | ||||||||||||||
Exercisable at June 30, 2020 |
$ | $ | ||||||||||||||
(1) | The aggregate intrinsic value was calculated based on the positive difference between the fair value of the Company’s common stock on June 30, 2020 of $ |
Shares |
Weighted Average Grant Date Fair Value |
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Unvested at December 31, 2019 |
$ | |||||||
Granted |
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Vested and issued |
( |
) | ||||||
Canceled |
( |
) | ||||||
Unvested at June 30, 2020 |
$ | |||||||
Three Months Ended June 30, |
Six Months Ended June 30, |
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2020 |
2019 |
2020 |
2019 |
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Revenue: |
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North America |
$ | $ | $ | $ | ||||||||||||
Europe |
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Japan |
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Asia Pacific |
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Other |
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Total revenue |
$ | $ | $ | $ | ||||||||||||