View Filing Data

Print Document View Excel Document

Document and Entity Information - USD ($) $ in Millions	12 Months Ended
Document and Entity Information - USD ($) $ in Millions	Dec. 31, 2014	Feb. 28, 2015	Jun. 30, 2014
Document and Entity Information [Abstract]
Entity Registrant Name	Five9, Inc.
Trading Symbol	FIVN
Entity Central Index Key	0001288847
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Document Type	10-K
Document Period End Date	Dec. 31, 2014
Document Fiscal Year Focus	2014
Document Fiscal Period Focus (Q1,Q2,Q3,FY)	FY
Amendment Flag	false
Entity Well-known Seasoned Issuer	No
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Common Stock, Shares Outstanding		49,459,166
Entity Public Float			$ 116.2

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2014	Dec. 31, 2013
Current assets:
Cash and cash equivalents	$ 58,289	$ 17,748
Short-term investments	20,000	0
Accounts receivable, net	8,335	6,970
Prepaid expenses and other current assets	1,960	1,651
Total current assets	88,584	26,369
Property and equipment, net	12,571	11,607
Intangible assets, net	2,553	3,065
Goodwill	11,798	11,798
Other assets	1,428	3,439
Total assets	116,934	56,278
Current liabilities:
Accounts payable	4,179	4,306
Accrued and other current liabilities	7,318	5,929
Accrued federal fees	7,215	4,206
Sales tax liability	297	98
Notes payable	3,146	1,522
Capital leases	4,849	4,857
Deferred revenue	5,346	4,375
Total current liabilities	32,350	25,293
Revolving line of credit	12,500	12,500
Sales tax liability — less current portion	2,582	5,350
Notes payable — less current portion	22,778	7,095
Capital leases — less current portion	4,423	4,358
Convertible preferred and common stock warrant liabilities	0	3,935
Other long-term liabilities	548	715
Total liabilities	75,181	59,246
Commitments and contingencies (Note 11)
Stockholders’ equity (deficit):
Convertible preferred stock, $0.001 par value; no shares authorized, issued and outstanding as of December 31, 2014; 125,115 shares authorized, 122,216 shares issued and outstanding as of December 31, 2013	0	53,734
Preferred stock, $0.001 par value; 5,000 shares authorized, no shares issued and outstanding as of December 31, 2014; no shares authorized, issued and outstanding as of December 31, 2013	0	0
Common stock, $0.001 par value; 450,000 shares authorized, 49,322 shares issued and outstanding as of December 31, 2014; 200,000 shares authorized, 5,494 shares issued and outstanding as of December 31, 2013	49	5
Additional paid-in capital	170,286	34,089
Accumulated deficit	(128,582)	(90,796)
Total stockholders’ equity (deficit)	41,753	(2,968)
Total liabilities and stockholders’ equity (deficit)	$ 116,934	$ 56,278

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2014	Dec. 31, 2013
Class of Stock
Preferred Stock, par value	$ 0.001
Preferred Stock, shares authorized	5,000,000
Common Stock, par value	$ 0.001	$ 0.001
Common Stock, shares authorized	450,000,000	200,000,000
Common Stock, shares issued	49,322,498	5,494,000
Common Stock, shares outstanding	49,322,498	5,494,000
Convertible Preferred Stock
Class of Stock
Preferred Stock, par value		$ 0.001
Preferred Stock, shares authorized		125,115,000
Preferred Stock, shares issued		122,216,000
Preferred Stock, shares outstanding		122,216,000

Consolidated Statements of Operations and Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Income Statement [Abstract]
Revenue	$ 103,102	$ 84,132	$ 63,822
Cost of revenue	54,661	48,807	39,306
Gross profit	48,441	35,325	24,516
Operating expenses:
Research and development	22,110	17,529	13,217
Sales and marketing	37,445	28,065	16,808
General and administrative	24,416	18,053	11,546
Total operating expenses	83,971	63,647	41,571
Loss from operations	(35,530)	(28,322)	(17,055)
Other income (expense), net:
Change in fair value of convertible preferred and common stock warrant liabilities	1,745	(1,871)	(1,674)
Interest expense	(4,161)	(1,080)	(557)
Interest income and other	245	29	14
Total other income (expense), net	(2,171)	(2,922)	(2,217)
Loss before provision for income taxes	(37,701)	(31,244)	(19,272)
Provision for income taxes	85	70	62
Net loss	$ (37,786)	$ (31,314)	$ (19,334)
Net loss per share:
Basic and diluted (in USD per share)	$ (1.00)	$ (7.82)	$ (5.82)
Shares used in computing net loss per share:
Basic and diluted (in shares)	37,604	4,006	3,321
Other comprehensive income:
Change in unrealized gain/loss on short-term investments, net of tax	$ 0	$ 0	$ 0
Comprehensive loss	$ (37,786)	$ (31,314)	$ (19,334)

Consolidated Statements of Stockholders' Equity (Deficit) - USD ($) $ in Thousands	Total	Series C-2 Convertible Preferred Stock	Series D-2 Convertible Preferred Stock	Series A-2 Convertible Preferred Stock	Preferred Stock	Preferred Stock Series C-2 Convertible Preferred Stock	Preferred Stock Series D-2 Convertible Preferred Stock	Preferred Stock Series A-2 Convertible Preferred Stock	Common Stock	Additional Paid-in Capital	Accumulated Deficit
Beginning balance, shares at Dec. 31, 2011					94,044,000				2,855,000
Beginning balance at Dec. 31, 2011	$ (1,192)				$ 20,065				$ 3	$ 18,888	$ (40,148)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
New issuances, shares						12,903,000
New issuances		$ 11,875				$ 11,875
Conversion of preferred stock to common stock upon IPO	0
Reclass of warrant liabilities to APIC upon IPO	0
Issuance of common stock upon exercise of stock options, shares									649,000
Issuance of common stock upon exercise of stock options	120								$ 1	119
Issuance of restricted common stock									119,000
Vesting of early exercised stock options	0
Stock-based compensation	464									464
Net loss	(19,334)										(19,334)
Ending balance at Dec. 31, 2012	(8,067)				$ 31,940				$ 4	19,471	(59,482)
Ending balance, shares at Dec. 31, 2012					106,947,000				3,504,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
New issuances, shares							15,269,000
New issuances			$ 21,794				$ 21,794
Conversion of preferred stock to common stock upon IPO	0
Reclass of warrant liabilities to APIC upon IPO	0
Issuance of common stock upon exercise of stock options, shares									448,000
Issuance of common stock upon exercise of stock options	602									602
Vesting of early exercised stock options	0
Stock-based compensation	1,949									1,949
Net loss	(31,314)										(31,314)
Issuance of common stock and stock options to acquire Face It, Corp., shares									1,423,000
Issuance of common stock and stock options to acquire Face It, Corp.	12,068								$ 1	12,067
Ending balance at Dec. 31, 2013	(2,968)				$ 53,734				$ 5	34,089	(90,796)
Ending balance, shares at Dec. 31, 2013					122,216,000				5,494,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
New issuances, shares								166,000	11,500,000
New issuances	70,626			$ 509				$ 509	$ 11	70,615
Conversion of preferred stock to common stock upon IPO	54,243				$ (54,243)				$ 31	54,212
Conversion of preferred stock to common stock upon IPO, shares					(122,382,000)				30,595,000
Reclass of warrant liabilities to APIC upon IPO	$ 2,647									2,647
Issuance of common stock upon exercise of stock options, shares	1,394,000
Issuance of common stock upon exercise of stock options and warrants, shares									1,556,000
Issuance of common stock upon exercise of stock options and warrants	$ 1,112								$ 2	1,110
Issuance of common stock upon vesting of restricted stock units									15,000
Issuance of common stock under ESPP, shares	156,131								156,000
Issuance of common stock under ESPP	$ 660									660
Issuance of unregistered common stock									6,000
Vesting of early exercised stock options	200									200
Stock-based compensation	6,753									6,753
Net loss	(37,786)										(37,786)
Ending balance at Dec. 31, 2014	$ 41,753				$ 0				$ 49	$ 170,286	$ (128,582)
Ending balance, shares at Dec. 31, 2014					0				49,322,000

Consolidated Statements of Stockholders' Equity (Deficit) Parenthetical - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Preferred Stock \| Series C-2 Convertible Preferred Stock
Stock Issuance Costs			$ 125
Preferred Stock \| Series D-2 Convertible Preferred Stock
Stock Issuance Costs		$ 200
Common Stock
Stock Issuance Costs	$ 4,239

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Cash flows from operating activities:
Net loss	$ (37,786)	$ (31,314)	$ (19,334)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	6,463	4,415	2,624
Provision for doubtful accounts	76	89	214
Stock-based compensation	6,753	1,949	464
Loss (gain) on disposal of property and equipment	1	(5)	7
Non-cash interest expense	293	6	22
Changes in fair value of convertible preferred and common stock warrant liabilities	(1,745)	1,871	1,674
Accretion of discounts on short-term investments	(7)	0	0
Changes in operating assets and liabilities:
Accounts receivable	(1,390)	(1,574)	(2,125)
Prepaid expenses and other current assets	(216)	(322)	(350)
Other assets	(128)	(136)	18
Accounts payable	300	196	1,988
Accrued and other current liabilities	1,863	1,429	250
Accrued federal fees and sales tax liability	440	2,325	4,353
Deferred revenue	1,012	106	1,354
Other liabilities	(208)	6	540
Net cash used in operating activities	(24,279)	(20,959)	(8,301)
Cash flows from investing activities:
Purchases of property and equipment	(1,025)	(554)	(2,680)
Cash paid to acquire Face It, Corp., net of cash acquired of $128	0	(2,836)	0
Restricted cash	(25)	(121)	0
Purchase of short-term investments	(49,992)	0	(2,490)
Proceeds from sale of short-term investments	30,000	2,490	3,581
Net cash used in investing activities	(21,042)	(1,021)	(1,589)
Cash flows from financing activities:
Net proceeds from IPO, net of payments for offering costs	71,459	0	0
Payments for deferred offering costs	0	(821)	(12)
Net proceeds from issuance of convertible preferred stock	0	21,794	11,875
Proceeds from exercise of common stock options and warrants	1,212	702	120
Proceeds from sale of common stock under ESPP	660	0	0
Proceeds from notes payable	19,536	5,000	0
Repayments of notes payable	(1,556)	(810)	(743)
Payments of capital leases	(5,449)	(4,598)	(2,185)
Proceeds from equipment financing	0	0	1,418
Proceeds from revolving line of credit	0	18,500	0
Repayments on revolving line of credit	0	(6,000)	0
Net cash provided by financing activities	85,862	33,767	10,473
Net increase in cash and cash equivalents	40,541	11,787	583
Cash and cash equivalents:
Beginning of period	17,748	5,961	5,378
End of period	58,289	17,748	5,961
Supplemental disclosures of cash flow data:
Cash paid for interest	3,869	1,088	501
Cash paid for income taxes	46	132	89
Non-cash investing and financing activities:
Equipment obtained under capital lease	5,886	4,747	5,455
Equipment purchased and unpaid at period-end	11	10	933
Deferred IPO costs incurred but unpaid at period-end	0	1,346	0
Reclass of deferred IPO costs to additional paid-in capital	2,179	0	0
Net cashless exercise of preferred stock warrants to Series A-2 convertible preferred stock	509	0	0
Vesting of early exercised stock options	200	0	0
Reclass of warrants liabilities to additional paid-in capital upon IPO	2,647	0	0
Conversion of convertible preferred stock to common stock upon IPO	54,243	0	0
Conversion of accrued federal fees to note payable, net	$ 0	$ 4,075	$ 0

Description of Business and Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2014

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Description of Business and Summary of Significant Accounting Policies

1. Description of Business and Summary of Significant Accounting Policies

Five9, Inc. and its wholly-owned subsidiaries (the “Company”) is a provider of cloud contact center software. The Company was incorporated in Delaware in 2001 and is headquartered in San Ramon, California. The Company has offices in Europe and Asia, which primarily provide research, development and client support services.

Basis of Presentation

The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). All intercompany transactions and balances have been eliminated in consolidation. As the Company is an emerging growth company, as defined in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”), it can delay the adoption of new accounting standards until those standards would otherwise apply to privately-held companies. However, the Company has elected to comply with all new or revised accounting standards on the relevant dates on which adoption of such standards is required for non-emerging growth publicly-held companies. Under the JOBS Act, such election is irrevocable.

Initial Public Offering

On April 9, 2014, the Company consummated its IPO and issued and sold 10,000,000 shares of common stock at a public offering price of $7.00 per share, less the underwriters’ discount. In addition, on April 22, 2014, the Company consummated the sale of an additional 1,500,000 shares of common stock to the underwriters of the Company's IPO pursuant to the underwriters’ exercise in full of their option to purchase 1,500,000 shares of common stock from the Company at the IPO price of $7.00 per share, less the underwriters' discount. The Company received aggregate proceeds of $74.9 million from the IPO after deducting underwriters’ discounts and commissions of $5.6 million, but before deduction of offering expenses of approximately $4.2 million, of which $0.8 million had been paid by us prior to 2014 and the remaining $3.4 million had been paid in the first two quarters of 2014.

On April 3, 2014, a reverse stock split of the Company's then-outstanding common stock at a ratio of 4:1 was effected in connection with the IPO. Prior to such reverse stock split being effected, all outstanding convertible preferred stock elected to convert to common stock on a 1:1 basis. In addition, upon the conversion of the convertible preferred stock, the Company’s outstanding convertible preferred stock warrants became warrants to purchase common stock and, upon the IPO, the Company’s outstanding common stock warrant liabilities became indexed to the Company's common stock and accordingly have been reclassified to additional paid-in capital.

In this annual report on Form 10-K, all information related to common stock, warrants to purchase common stock, stock awards and earnings per share has been retroactively adjusted to give effect to the 4:1 reverse stock split, without any change in the par value per share. Fractional shares resulting from the reverse stock split have been rounded down to the closest whole share. Information related to shares of common stock authorized for issuance, convertible preferred stock and warrants to purchase convertible preferred stock has not been retroactively adjusted for the reverse stock split as there was no change in capital structure for these shares.

Immaterial Out of Period Adjustments

In the fourth quarter of 2014, the Company identified certain revenue earned during the period from 2008 through the third quarter of 2014 that should have been subject to USF contribution and state sales taxes and surcharges. Accordingly, during the fourth quarter of 2014, the Company had recorded $0.4 million in cost of revenue and $0.3 million in general and administrative expenses as out of period adjustments with corresponding increases in "Accrued federal fees" and "Sales tax liability" on the consolidated balance sheets. For each of these adjustments, $0.2 million is related to the period 2008 through 2013 and the remaining balance is related to the first three quarters of 2014. The Company believes that such amounts are not material to any of the prior reporting periods and also that the cumulative adjustment is not material to the quarter or the year ended December 31, 2014.

Use of Estimates

The preparation of consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. The significant estimates made by management affect revenue, the allowance for doubtful accounts, intangible assets, goodwill, loss contingencies, including the Company’s accrual for federal fees and sales tax liability, accrued liabilities, stock-based compensation, fair value calculations of the convertible preferred and common stock warrant liabilities, provision for income taxes and uncertain tax positions. Management periodically evaluates such estimates and they are adjusted prospectively based upon such periodic evaluation. Actual results could differ from those estimates.

Foreign Currency

The functional currency of the Company’s foreign subsidiaries is the U.S. dollar. For these subsidiaries, the monetary assets and liabilities are re-measured into U.S. dollars at the current exchange rate as of the balance sheet date, and all non-monetary assets and liabilities are re-measured into U.S. dollars at historical exchange rates. Revenues and expenses are converted using average rates in effect on a monthly basis. Exchange gains and losses resulting from foreign currency transactions were not significant and are reported in other expense, net for the years ended December 31, 2014, 2013 and 2012.

Cash and Cash Equivalents

The Company considers highly liquid instruments with a maturity of three months or less at the date of purchase to be cash equivalents. The Company deposits cash and cash equivalents with financial institutions that management believes are of high credit quality. Cash equivalents consist of money market funds and certificates of deposit with original maturities of three months or less, and are stated at cost plus accrued interest, which approximates fair value.

Short-Term Investments

The Company considers all investments in marketable securities with original maturities at the date of purchase of more than three months to be short-term investments. Short-term investments are classified as available-for-sale at the time of purchase and the Company reevaluates such classification at each balance sheet date. Unrealized gains and losses for short-term investments are included in accumulated other comprehensive income (loss), a component of stockholders’ equity. Any unrealized losses that are considered to be other-than-temporary impairments are recorded in "Other income, net" in the consolidated statements of operations and comprehensive loss. Realized gains (losses) on the sale of short-term investments are determined using the specific-identification method and recorded in "Other income, net" in the consolidated statements of operations and comprehensive loss. Interest and dividends are included in interest income when earned. As of December 31, 2014, the carrying value of all of the Company’s short-term investments approximated fair value.

Concentration Risks

Financial instruments, which potentially subject the Company to significant concentrations of credit risk, consist primarily of cash and cash equivalents, short-term investments and accounts receivable. A significant portion of the Company’s cash and cash equivalents is held at one large reputable financial institution. Total cash and cash equivalents in excess of insured limits were $58.0 million and $16.6 million as of December 31, 2014 and 2013, respectively. The Company has not experienced any losses in such accounts.

As of December 31, 2014 and 2013, no single client represented more than 10% of accounts receivable. For the years ended December 31, 2014, 2013 and 2012, no single client represented more than 10% of revenue.

Allowance for Doubtful Accounts

The Company records a provision for doubtful accounts based on historical experience and a detailed assessment of the collectability of its accounts receivable. In estimating the allowance for doubtful accounts, management considers, among other factors, the aging of the accounts receivable, historical write-offs and the creditworthiness of each client. If circumstances change, such as higher-than-expected defaults or an unexpected material adverse change in a major client’s ability to meet its financial obligations, the Company’s estimate of the recoverability of the amounts due could be reduced by a material amount.

The following table presents the changes in the accounts receivable allowance for doubtful accounts (in thousands):



	Year Ended December 31,
	2014			2013			2012
Balance, beginning of period	$	42		$	54		$	23
Add: bad debt expense	76			89			214
Less: write-offs, net of recoveries	(53		)	(101		)	(183		)
Balance, end of period	$	65		$	42		$	54

Property and Equipment, Net

Property and equipment is stated at cost less accumulated depreciation and amortization, and is depreciated using the straight-line method over the estimated useful lives of the assets as follows:



Asset Category		Estimated Useful Lives
Computer and network equipment		3 years
Computer software		3 years
Development costs		1 to 5 years
Furniture and fixtures		7 years
Leasehold improvements		Shorter of useful life or lease term

Maintenance and repairs are charged to expense as incurred, and improvements and betterments are capitalized. When assets are retired or otherwise disposed of, the cost and accumulated depreciation and amortization are removed from the consolidated balance sheet and any resulting gain or loss is reflected in the consolidated statements of operations and comprehensive loss in the period realized.

The Company evaluates the recoverability of property and equipment for possible impairment whenever events or circumstances indicate that the carrying amount of such assets or asset groups may not be recoverable. Recoverability of these assets is measured by a comparison of the carrying amounts to the future undiscounted cash flows the assets or asset groups are expected to generate. If such evaluation indicates that the carrying amount of the assets or asset groups is not recoverable, the carrying amount of such assets or asset groups is reduced to fair value. No impairment losses have been recognized in any of the periods presented.

Business Combinations

When the Company acquires businesses, it allocates the purchase price to assets and liabilities, and identifiable intangible assets acquired at the acquisition date based upon their estimated fair values. The excess of the purchase consideration of an acquired business over the fair value of the underlying net tangible and intangible assets acquired and liabilities assumed is recorded as goodwill. This allocation and valuation require management to make significant estimates and assumptions, especially with respect to intangible assets, which can include, but are not limited to, the cash flows that an asset is expected to generate in the future, the appropriate weighted-average cost of capital, and the cost savings expected to be derived from acquiring an asset. These estimates are inherently uncertain and subject to refinement during a measurement period that may be up to one year from the acquisition date.

In addition, uncertain tax positions and tax-related valuation allowances assumed in connection with a business combination are initially estimated as of the acquisition date. The Company continues to evaluate these items and record any adjustments to the preliminary estimates to goodwill provided that the Company is within the measurement period. Subsequent to the measurement period, changes to these uncertain tax positions and tax related valuation allowances will affect the Company’s provision for income taxes in the consolidated statements of operations and comprehensive loss.

Goodwill and Intangible Assets

The Company records goodwill when the consideration paid in a purchase acquisition exceeds the fair value of the net tangible assets and the identified intangible assets acquired. Goodwill is not amortized, but instead is required to be tested for impairment annually and whenever events or changes in circumstances indicate that the carrying value of goodwill may exceed its fair value.

The Company performs testing for impairment of goodwill in its fourth quarter, or as events occur or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. A qualitative assessment is first made to determine whether it is necessary to perform the two-step quantitative goodwill impairment test. This initial qualitative assessment includes, among other things, consideration of: (i) market capitalization of the Company, (ii) past, current and projected future earnings and equity; (iii) recent trends and market conditions; and (iv) valuation metrics involving similar companies that are publicly-traded and acquisitions of similar companies, if available. If this initial qualitative assessment indicates that it is more likely than not that impairment exists, a second analysis will be performed, involving a comparison between the estimated fair values of the Company’s reporting unit with its respective carrying amount including goodwill. If the carrying value exceeds estimated fair value, there is an indication of potential impairment, and a third analysis is performed to measure the amount of impairment. The third analysis involves calculating an implied fair value of goodwill by measuring the excess of the estimated fair value of the reporting unit over the aggregate estimated fair values of the individual assets less liabilities. If the carrying value of goodwill exceeds the implied fair value of goodwill, an impairment charge is recorded for the excess.

Intangible assets, consisting of acquired developed technology, domain names, customer relationships and non-compete agreements, are carried at cost less accumulated amortization. All intangible assets have been determined to have definite lives and are amortized on a straight-line basis over their estimated remaining economic lives, ranging from three to seven years. Amortization expense related to developed technology is included in cost of revenue. Amortization expense related to customer relationships is included in sales and marketing expense. Amortization expense related to domain names and non-compete agreements is included in general and administrative expense. Intangible assets are reviewed for impairment whenever events or changes in circumstances indicate an asset's carrying value may not be recoverable.

Revenue Recognition

The Company’s revenue consists of subscription services and related usage as well as professional services. The Company charges clients monthly subscription fees for access to the Company’s solution. The monthly subscription fees are primarily based on the number of agent seats, as well as the specific Virtual Contact Center (“VCC”) functionalities and applications deployed by the client. Agent seats are defined as the maximum number of named agents allowed to concurrently access the VCC cloud platform. Clients typically have more named agents than agent seats. Multiple named agents may use an agent seat, though not simultaneously. Substantially all of the Company’s clients purchase both subscriptions and related usage. A small percentage of the Company's clients subscribe to its platform but purchase telephony usage directly from a wholesale telecommunications service provider. The Company does not sell telephony usage on a stand-alone basis to any client. The related usage fees are based on the volume of minutes used for inbound and outbound client interactions. The Company also offers bundled plans, generally for smaller deployments, whereby the client is charged a single monthly fixed fee per agent seat that includes both subscription and unlimited usage in the contiguous 48 states and, in some cases, Canada. Professional services revenue is derived primarily from VCC implementations, including application configuration, system integration, optimization, education and training services. Clients are not permitted to take possession of the Company’s software.

The Company offers monthly, annual and multiple-year contracts to its clients, generally with 30 days’ notice required for changes in the number of agent seats and sometimes with a minimum number of agent seats requirement. Larger clients typically choose annual contracts, which generally include an implementation and ramp period of several months. Fixed subscription fees (including bundled plans) are generally billed monthly in advance, while related usage fees are billed in arrears. Support activities include technical assistance for the Company’s solution and upgrades and enhancements to the VCC cloud platform on a when-and-if-available basis, which are not billed separately.

The Company generally requires advance deposits from its clients based on estimated usage when such usage is not billed as part of a bundled plan. Fees for certain clients’ usage are applied against the advance deposit resulting in continuous consumption and therefore requires frequent replenishment of the deposit. Any unused portion of the deposit is refundable to the client upon termination of the arrangement, provided all amounts due have been paid. All fees, except usage deposits, are non-refundable.

Professional services are primarily billed on a fixed-fee basis and are performed by the Company directly, or clients may also choose to perform these services themselves or engage their own third-party service providers.

The Company’s sales arrangements generally involve multiple deliverables, including subscription services and related usage as well as professional services, all of which have stand-alone value to the client. The Company allocates arrangement consideration to these deliverables based on the relative stand-alone selling price method in accordance with the selling price hierarchy, which includes: (i) Vendor Specific Objective Evidence (“VSOE”) if available; (ii) Third-Party Evidence (“TPE”) if VSOE is not available; and (iii) Best Estimate of Selling Price (“BESP”) if neither VSOE nor TPE is available.

VSOE. The Company determines VSOE based on its historical pricing and discounting practices for the specific service when sold separately. In determining VSOE, the Company requires that a substantial majority of the selling prices for these services fall within a reasonably narrow pricing range. The Company limits its assessment of VSOE for each element to either the price charged when the same element is sold separately or the price established by management, having the relevant authority to do so, for an element not yet sold separately. The Company has not met the criteria to establish selling prices based on VSOE.

TPE. When VSOE cannot be established for deliverables in multiple element arrangements, the Company applies judgment with respect to whether it can establish a selling price based on TPE. TPE is determined based on competitor prices for similar deliverables when sold separately. The Company’s services are significantly differentiated such that the comparable pricing of deliverables with similar functionality cannot be obtained. Furthermore, the Company is unable to reliably determine the stand-alone selling prices of similar deliverables sold by competitors. As a result, the Company has not met the criteria to establish selling prices based on TPE.

BESP. Since the Company is unable to establish a selling price using VSOE or TPE, it uses BESP in its allocation of arrangement consideration. The objective of BESP is to determine the price at which the Company would transact a sale if the product or service were sold on a stand-alone basis. The Company determines BESP for deliverables by considering multiple factors including prices it charges for similar offerings, market conditions and the competitive landscape. The Company limits the amount of allocable arrangement consideration to amounts that are fixed or determinable and that are not contingent on future performance or future deliverables.

The Company recognizes revenue for each unit of accounting when all of the following criteria have been met:


•	persuasive evidence of an arrangement exists;


•	delivery has occurred;


•	the fee is fixed or determinable; and


•	collection is reasonably assured.

Revenue allocated to the separate accounting units is recognized as follows:


•	fixed subscription revenue is recognized on a straight-line basis over the applicable term, predominantly the monthly contractual billing period;


•	variable usage revenue is recognized as actual usage occurs. Usage revenue in subscription arrangements that include bundled usage is recognized on a straight-line basis over the applicable term, as the Company cannot reliably estimate client usage patterns; and


•	professional services revenue is recognized as services are performed using the proportional performance method, with performance measured based on labor hours, assuming all other revenue recognition criteria have been met.

At the time of each revenue transaction, the Company assesses whether fees under the arrangement are fixed or determinable and whether collection is reasonably assured. For arrangements where the fee is not fixed or determinable, the Company recognizes revenue as these amounts become due and payable. The Company assesses collection based on a number of factors, including past transaction history and the creditworthiness of the client. If the Company determines that collection of fees is not reasonably assured, it defers the revenue and recognizes revenue at such time when collection becomes reasonably assured, which is generally upon receipt of payment. The Company maintains a revenue reserve for potential credits to be issued in accordance with service level agreements or for other revenue adjustments. The revenue recognition standards include guidance relating to any tax assessed by a governmental authority that is directly imposed on a revenue-producing transaction between a seller and a customer and may include, but is not limited to, sales, use, value added and excise taxes.

The Company records USF contributions and other regulatory costs on a gross basis in its consolidated statements of operations and comprehensive loss and records surcharges and sales, use and excise taxes billed to its clients on a net basis. The cost of gross USF contributions payable to the USAC and suppliers is presented as a cost of revenue in the consolidated statements of operations and comprehensive loss. For the years ended December 31, 2014, 2013 and 2012, total USF contributions and other regulatory costs included in cost of revenue were $4.4 million, $3.9 million and $3.2 million, respectively. Surcharges and sales, use and excise taxes incurred in excess of amounts billed to the Company’s clients are presented in general and administrative expense in the consolidated statements of operations and comprehensive loss.

Deferred Revenue

Deferred revenue consists of billings or payments received from clients for subscription service, estimated usage and professional services in advance of revenue recognition and are recognized as the revenue recognition criteria are met. The Company generally invoices its clients monthly in advance for subscription services. Accordingly, the deferred revenue balance does not represent the total contract value of sales arrangements. The current portion of deferred revenue represents the amount that is expected to be recognized as revenue within one year from the balance sheet date.

Cost of Revenue

Cost of revenue consists primarily of fees that the Company pays to telecommunications providers for usage, personnel costs (including stock-based compensation), costs to build out and maintain co-location data centers, depreciation and related expenses of the servers and equipment, USF contributions and other federal regulatory costs, allocated office and facility costs and amortization of acquired technology. Personnel costs include those associated with support of the Company’s solution, clients and data center operations, as well as with providing professional services. Data center costs include costs to build out and setup, as well as co-location fees for the right to place the Company’s services in data centers owned by third parties.

Research and Development

Research and development expenses consist primarily of salary and related expenses (including stock-based compensation) for personnel related to the development of improvements and expanded features for our services, as well as quality assurance, testing, product management and allocated overhead. Research and development costs are expensed as incurred. The Company reviews development costs incurred for internal-use software in the application development stage and assesses costs for capitalization. As of December 31, 2014 and 2013, the amount of capitalized internal-use software development costs was immaterial.

Advertising Costs

We primarily advertise our services through the web and in conjunction with partners. Advertising costs are expensed as incurred and were $8.7 million, $7.3 million, $4.7 million for the years ended December 31, 2014, 2013 and 2012, respectively.

Commissions

Commissions consist of variable compensation earned by sales personnel. Sales commissions associated with the acquisition or renewal of a client contract are recognized as sales and marketing expense as incurred. Commission expense was $6.4 million, $4.8 million and $3.5 million for the years ended December 31, 2014, 2013 and 2012, respectively.

Stock-Based Compensation

All stock-based compensation granted to employees and non-employee directors is measured as the grant date fair value of the award. The Company estimates the fair value of stock options and purchase rights under the Company's 2014 employee stock purchase plan ("ESPP") using the Black-Scholes option-pricing model. The fair value of restricted stock awards is equal to the fair value of the Company’s common stock on the date of grant. Compensation expense is recognized net of estimated forfeitures using the straight-line method over the service period, which is generally the vesting period.

Compensation expense for non-employee stock awards subject to vesting is revalued as of each reporting date until the awards are vested. Stock-based non-employee compensation is recognized over the vesting periods of the equity awards. For the years ended December 31, 2014, 2013 and 2012, stock-based compensation expenses related to equity awards granted to non-employees were immaterial.

Convertible Preferred and Common Stock Warrant Liabilities

Prior to the Company's IPO, convertible preferred stock warrants and common stock warrants included provisions that potentially adjust the number of shares to be issued on settlement, or that potentially adjust the exercise prices, which made these instruments freestanding and accordingly they were classified as liabilities on the Company’s consolidated balance sheets. These warrant liabilities were subject to re-measurement at each balance sheet date until April 3, 2014 when, in connection with the Company's IPO, all the then-outstanding convertible preferred stock warrants became warrants to purchase common stock and the carrying value of the liabilities had been reclassified to additional paid-in capital.

Income Taxes

The Company accounts for income taxes using the asset and liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in operations in the period that includes the enactment date. The Company records a valuation allowance to reduce its deferred tax assets to the amount of future tax benefit that is more likely than not to be realized. As of December 31, 2014 and 2013, the Company recorded a full valuation allowance against the net deferred tax assets because of its history of operating losses. The Company classifies interest and penalties on unrecognized tax benefits as income tax expense.

Net Loss Per Share

Basic net loss per share is calculated by dividing net loss by the weighted average number of common stock outstanding during the period, and excludes any dilutive effects of employee stock-based awards and warrants. Diluted net income per share is computed giving effect to all potentially dilutive common shares, including common stock issuable upon exercise of stock options and warrants, vesting of restricted stock and purchase under the ESPP . In periods of net loss, all potentially issuable common shares are excluded from the diluted net loss per share computation because they are anti-dilutive. Therefore, basic and diluted net loss per share are the same for all years presented in the consolidated statements of operations and comprehensive loss.

The Company applied the two-class method to calculate basic and diluted net loss per share of common stock in periods shares of convertible preferred stock were outstanding as shares of convertible preferred stock are participating securities due to their dividend rights. The two-class method is an earnings allocation method under which earnings per share is calculated for common stock considering a participating security’s rights to undistributed earnings as if all such earnings had been distributed during the period. The Company’s participating securities are not included in the computation of net loss per share in periods of net loss because the preferred shareholders have no contractual obligation to participate in losses.

Indemnification

Certain of the Company’s agreements with clients include provisions for indemnification against liabilities if its services infringe a third-party’s intellectual property rights. To date, the Company has not incurred any material costs as a result of such indemnification provisions and the Company has not accrued any liabilities related to such obligations in the consolidated financial statements as of December 31, 2014 or 2013.

Segment Information

The Company has determined that its Chief Executive Officer is its chief operating decision maker. The Company’s Chief Executive Officer reviews financial information presented on a consolidated basis for purposes of assessing performance and making decisions on how to allocate resources. Accordingly, the Company has determined that it operates in a single reportable segment.

Recent Accounting Pronouncements

On August 27, 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. The new guidance requires management of public and private companies to evaluate whether there is substantial doubt about the entity’s ability to continue as a going concern and, if so, disclose that fact. Management will also be required to evaluate and disclose whether its plans alleviate that doubt. The standard will be effective for the Company's annual period ending December 31, 2016 and interim and annual periods thereafter. Early adoption is permitted. The Company does not expect that the requirement will have an impact on its financial position, results of operations or cash flows.

On May 28, 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard is effective for the Company's annual and interim reporting periods beginning January 1, 2017. Early adoption is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting.

In July 2013, the FASB issued ASU No. 2013-11 on the financial statement presentation of unrecognized tax benefits. The new guidance provides that a liability related to an unrecognized tax benefit would be presented as a reduction of a deferred tax asset for a net operating loss carryforward, a similar tax loss or a tax credit carryforward if such settlement is required or expected in the event the uncertain tax position is disallowed. The Company adopted the guidance prospectively in the quarter ended March 31, 2014, and such adoption did not have a material impact on the Company's consolidated financial statements.

Acquisition of Face It, Corp.

12 Months Ended

Dec. 31, 2014

Business Combinations [Abstract]

Acquisition of Face It, Corp.

2. Acquisition of Face It, Corp.

On October 18, 2013 (the “Acquisition Date”), the Company completed its acquisition of Face It, Corp., which the Company refers to as SoCoCare, a social engagement and mobile client care solution provider, pursuant to the Agreement and Plan of Merger (the “Agreement”). In accordance with the terms and subject to the conditions set forth in the Agreement, the Company acquired all of the outstanding equity securities of Face It, Corp. The acquisition was accounted for as a business combination in accordance with the FASB Accounting Standards Codifications ("ASC") Topic 805, “Business Combinations”. The Company has integrated SoCoCare and its technology to add social engagement and mobile client care applications to its solution.

The Company acquired SoCoCare for a total purchase price of $15.0 million. The purchase price consisted of $3.0 million of cash, approximately 1,423,000 shares of common stock valued at $12.1 million, of which approximately 303,000 shares were withheld in escrow for 18 months after the Acquisition Date; and 22,000 stock options with a total fair value of $0.1 million, of which $4 thousand was allocated to the purchase price and $0.1 million was allocated to post-combination stock-based compensation. Escrow shares were withheld in order to indemnify the Company from certain losses that may arise from any inaccuracies or breach of any of SoCoCare’s covenants, representations and warranties as of the Acquisition Date and were not treated as contingent consideration.

The total purchase price was allocated to the net assets acquired based upon their fair values as of the Acquisition Date as set forth below. The excess of the purchase price over the net assets acquired was recorded as goodwill. The goodwill represents SoCoCare’s assembled workforce, its know-how and the business development initiatives that allow SoCoCare to acquire new customers, create new technologies and generate revenue. Goodwill is not deductible for U.S. tax purposes.

The following table summarizes the fair values of the assets acquired and liabilities assumed at the Acquisition Date (in thousands):



	As of October 18, 2013
Tangible assets acquired	$	177
Intangible assets:
Developed technology	2,460
Customer relationships	520
Domain names	50
Non-compete agreements	140
Goodwill	11,798
Current liabilities	(113		)
Total purchase price	$	15,032

Upon the acquisition, the Company hired or contracted certain of SoCoCare’s employees, including its three founders (the “Founders”). In connection with the employment and service agreements, the Company issued 118,577 unvested shares of restricted common stock to the Founders that are contingent upon continuing employment or services and therefore excluded from the purchase price of the acquisition (Note 8).

The fair values of the acquired intangible assets were determined using Level 3 inputs which are not observable in the market (Note 3). Details related to estimated useful lives and the valuation techniques utilized for estimating fair value of the intangible assets acquired are shown below:



Intangible Type	Valuation Technique	Useful Life
Developed technology	Excess earnings method	7 years
Customer relationships	Cost approach	5 years
Domain names	Relief from royalty method	5 years
Non-compete agreements	Modified discounted cash flow	3 years

The assets, liabilities and operating results of SoCoCare have been reflected in the consolidated financial statements from the Acquisition Date and approximately $42 thousand of revenue and $0.8 million of expenses related to the operations of SoCoCare have been included in the accompanying consolidated statement of operations and comprehensive loss for the year ended December 31, 2013. The Company expensed $0.6 million of acquisition-related costs as general and administrative expenses in the consolidated statements of operations and comprehensive loss during the year ended December 31, 2013. For 2014, it is impracticable to determine the results of operations or the revenue from the SoCoCare acquisition as the acquired business has been integrated into our operations in 2014 and is not separately identifiable.

The following pro forma condensed financial information presents the results of operations of the Company and SoCoCare as if the acquisition had occurred on January 1, 2012. The pro forma financial information is provided for comparative purposes only and is not necessarily indicative of what the actual results would have been had the acquisition occurred at the beginning of year 2012 (unaudited and in thousands):



	Year Ended December 31,
	2013			2012
Revenue	$	84,260		$	64,187
Net loss	$	(32,787	)	$	(23,151	)

Pro forma net loss includes adjustments related to amortization expense in connection with intangible assets, interest expense on debt, stock-based compensation expense and acquisition-related costs.

- Definition

The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable).

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=25497992&loc=d3e1497-128463

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=25497992&loc=d3e1490-128463

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=25497992&loc=d3e1392-128463

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e7008-128479

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=25497992&loc=d3e1486-128463

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e6927-128479

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=39739317&loc=d3e4845-128472

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=25497992&loc=d3e1500-128463

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=25497992&loc=d3e1524-128463

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e7000-128479

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=39739317&loc=d3e4922-128472

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=39739317&loc=d3e4934-128472

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=39739317&loc=d3e4926-128472

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=25497992&loc=d3e1383-128463

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e6996-128479

+ Details

Fair Value Measurements

12 Months Ended

Dec. 31, 2014

Fair Value Disclosures [Abstract]

Fair Value Measurements

3. Fair Value Measurements

The Company carries certain financial assets and liabilities consisting of money market funds, certificates of deposit and its convertible preferred and common stock warrant liabilities at fair value on a recurring basis. Fair value is based on the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is estimated by applying the following hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement:

Level 1 — Observable inputs which include unadjusted quoted prices in active markets for identical assets or liabilities.

Level 2 — Observable inputs other than Level 1 inputs, such as quoted prices for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability.

Level 3 — Unobservable inputs that are supported by little or no market activity and that are based on management’s assumptions, including fair value measurements determined by using pricing models, discounted cash flow methodologies or similar techniques.

The fair value of assets and liabilities carried at fair value was determined using the following inputs (in thousands):



	December 31, 2014
	Total		Level 1
Assets
Short-term investments:
U.S. Treasury bills	$	20,000	$	20,000

	December 31, 2013
	Total		Level 1		Level 3
Assets
Cash equivalents:
Money market funds	$	738	$	738	$	—
Liabilities
Convertible preferred stock warrant liability	3,935		—		3,935

A reconciliation of the convertible preferred and common stock warrants measured and recorded at fair value on a recurring basis, using significant unobservable inputs (Level 3) is as follows (in thousands):



	Year Ended December 31,
	2014			2013		2012
Balance as of beginning of period	$	3,935		$	1,979	$	305
Changes in fair value of convertible preferred stock warrants	(1,233		)	1,871		1,674
Issuance of Series D-2 convertible preferred stock warrants in connection with debt agreement	—			85		—
Exercise of Series A-2 convertible preferred stock warrants	(509		)	—		—
Issuance of common stock warrants in connection with debt agreement	966			—		—
Changes in fair value of common stock warrants	(512		)	—		—
Reclassified to additional paid-in capital	(2,647		)	—		—
Balance as of end of period	$	—		$	3,935	$	1,979

In connection with the Company's IPO, all outstanding convertible preferred stock converted to common stock. As a result, as of April 3, 2014, liabilities associated with the convertible preferred stock warrants have been reclassified to additional paid-in capital because all of these warrants to purchase convertible preferred stock have become warrants to purchase common stock. Further, all the liability-classified common stock warrants became indexed to the Company's own equity upon the IPO, resulting in reclassification of the liability to additional paid-in capital.

The Company acquired intangible assets of $3.2 million in connection with its acquisition of SoCoCare in October 2013. The fair value of the intangible assets acquired was determined using level 3 inputs. Key assumptions include the level and timing of expected future cash flows, and discount rates consistent with the level of risk and the economy in general. If the income projections increase or decrease, the fair value of the intangible assets would increase or decrease accordingly, in amounts that will vary based on the timing of the projected revenue and the discount rate used to calculate the present value of the expected income.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Cash, Cash Equivalents and Short-Term Investments

12 Months Ended

Dec. 31, 2014

Cash, Cash Equivalents, and Short-term Investments [Abstract]

Cash, Cash Equivalents and Short-Term Investments

4. Cash, Cash Equivalents and Short-Term Investments

Cash and cash equivalents consisted of the following (in thousands):



	December 31,
	2014		2013
Cash and cash equivalents:
Cash	$	58,289	$	17,010
Money market funds	—		738
Total cash and cash equivalents	$	58,289	$	17,748

As of December 31, 2014, the Company was required to maintain $7.5 million in deposits in connection with its credit agreement with a lender as a compensating balance (See Note 7).

As of December 31, 2014, short-term investments consisted of the following (in thousands):



	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Aggregate Fair Value
U.S. Treasury bills	$	20,000	$	—	$	—	$	20,000

As of December 31, 2014, the Company's short-term investments will mature in approximately 43 days.

Restricted Cash

As of December 31, 2014 and December 31, 2013, the Company had restricted cash of $0.7 million classified in other assets on the accompanying consolidated balance sheets, which related to a letter of credit issued to the Company’s landlord with respect to its lease obligation for its corporate headquarters in San Ramon, California. As of December 31, 2014 and December 31, 2013, the Company also had $0.1 million of restricted cash classified in other assets on the accompanying consolidated balance sheet under a letter of credit related to an insurance policy.

Financial Statement Components

12 Months Ended

Dec. 31, 2014

Financial Statement Components [Abstract]

Financial Statement Components

5. Financial Statement Components

Accounts receivable, net consisted of the following (in thousands):



	December 31,
	2014			2013
Trade accounts receivable	$	7,482		$	6,430
Unbilled trade accounts receivable, net of advance client deposits	918			582
Allowance for doubtful accounts	(65		)	(42		)
Accounts receivable, net	$	8,335		$	6,970

Property and equipment, net consisted of the following (in thousands):



	December 31,
	2014			2013
Computer and network equipment	$	24,292		$	18,851
Computer software	2,264			1,550
Development costs	—			285
Furniture and fixtures	1,030			792
Leasehold improvements	611			539
Property and equipment	28,197			22,017
Accumulated depreciation and amortization	(15,626		)	(10,410		)
Property and equipment, net	$	12,571		$	11,607

Depreciation and amortization expense associated with property and equipment was $6.0 million, $4.3 million, and $2.6 million for the years ended December 31, 2014, 2013 and 2012, respectively.

Property and equipment capitalized under capital lease obligations consist primarily of computer and network equipment and were as follows (in thousands):



	December 31,
	2014			2013
Gross	$	21,025		$	15,123
Less: accumulated depreciation and amortization	(10,609		)	(5,591		)
Total	$	10,416		$	9,532

Accrued and other current liabilities consisted of the following (in thousands):



	December 31,
	2014		2013
Accrued expenses	$	2,240	$	2,453
Accrued compensation and benefits	5,078		3,476
Accrued and other current liabilities	$	7,318	$	5,929

Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

6. Goodwill and Intangible Assets

Goodwill

Goodwill was recorded as a result of the Company's acquisitions of SoCoCare in October 2013 (see Note 2).

During the fourth quarter of 2014, the Company completed its annual goodwill impairment test. Based on its assessment of the qualitative factors, management concluded that the fair value of the Company was more likely than not greater than its carrying amount as of December 31, 2014. As such, it was not necessary to perform the two-step quantitative goodwill impairment test. Subsequent to the 2014 annual impairment test, there have been no significant events or circumstances affecting the valuation of goodwill. As of December 31, 2014 and 2013, there was no impairment to the carrying value of the Company's goodwill.

Intangible Assets

Intangible assets were acquired in connection with the Company’s acquisition of SoCoCare in October 2013 (see Note 2). The components of intangible assets were as follows (in thousands):



	December 31, 2014							December 31, 2013
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Developed technology	$	2,460	$	(423	)	$	2,037	$	2,460	$	(72	)	$	2,388
Customer relationships	520		(125		)	395		520		(21		)	499
Domain names	50		(12		)	38		50		(2		)	48
Non-compete agreements	140		(57		)	83		140		(10		)	130
Total	$	3,170	$	(617	)	$	2,553	$	3,170	$	(105	)	$	3,065

Amortization expense related to intangible assets was $0.5 million and $0.1 million for the years ended December 31, 2014 and 2013, respectively. As of December 31, 2014, the expected future amortization expense for intangible assets was as follows (in thousands):



Period	Expected Future Amortization Expense
2015	$	512
2016	503
2017	465
2018	442
2019	351
2020	280
Total	$	2,553

Intangible assets are reviewed for impairment whenever events or changes in circumstances indicate an asset's carrying value may not be recoverable. The Company concluded that there was no impairment to the carrying value of its intangible assets as of December 31, 2014 and 2013.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References + Details

Long-Term Debt

12 Months Ended

Dec. 31, 2014

Debt Disclosure [Abstract]

Long-Term Debt

7. Long-term Debt

2013 Loan and Security Agreement

Prior to December 2014, the Company's revolving line of credit was under a loan and security agreement (“2013 Loan and Security Agreement”) with a lender, which was entered into in March 2013 and amended in October 2013 and February 2014.

In December 2014, the Company entered into a third amendment ("Third Amendment") to the 2013 Loan and Security Agreement with the lender to amend this revolving line of credit to, among other things, (a) increase the revolving credit commitment from $12.5 million to $20.0 million, (b) extend the March 2015 maturity date to December 1, 2016 and (c) reduce the interest rate on borrowings by 0.75%, such that the per annum interest rate on outstanding borrowings will be the prime rate plus 0.50%. The Third Amendment also increases the required cash deposit with the bank by $2.0 million to $7.5 million.

The 2013 Loan and Security Agreement is collateralized by substantially all the assets of the Company. Under the terms of the amended revolving line of credit ("Revolving Credit Facility"), the balance outstanding cannot exceed the lesser of (i) $20.0 million or (ii) an amount equal to the Company’s monthly recurring revenue for the three months prior multiplied by the average Dollar-Based Retention Rate over the prior twelve months, less the amount accrued for the Company’s USF obligation (accrued federal fees). As of December 31, 2014, the outstanding principal balance under the Revolving Credit Facility was $12.5 million, which has been disclosed as non-current liability, and the amount available for additional borrowings was $7.5 million.

In connection with its acquisition of SoCoCare, the Company also borrowed $5.0 million under a term loan (the “Term Loan”) under the 2013 Loan and Security Agreement in October 2013. Monthly interest-only payments are due on the advance at the prime rate plus 1.50% through September 2014. Principal and interest payments are due in equal monthly installments from October 2014 through the maturity of the Term Loan in March 2017. As of December 31, 2014 and December 31, 2013, approximately $4.5 million and $5.0 million, respectively, of this Term Loan was outstanding and is included as notes payable in the consolidated balance sheets. In connection with the Term Loan, the Company issued a warrant to purchase 52,054 shares of its Series D-2 convertible preferred stock at an exercise price of $1.441 per share. The issuance date fair value of this warrant of $0.1 million was recorded as a discount against the debt and is being recognized as additional interest expense over the term of the Term Loan. Upon the effectiveness of the Company’s registration statement filed with the SEC and the effectiveness of the 4:1 reverse stock split on April 3, 2014, this warrant became a warrant to purchase 13,013 shares of common stock at an exercise price of $5.76 per share.

The 2013 Loan and Security Agreement contains certain covenants, including the requirement that the Company maintain $7.5 million of cash deposited with the lender for the term of the 2013 Loan and Security Agreement. The Company was in compliance with these covenants as of December 31, 2014. The 2013 Loan and Security Agreement remains senior to other debts, including the debt issued under the 2014 Loan and Security Agreement discussed below.

2014 Loan and Security Agreement

In February 2014, the Company entered into a loan and security agreement (the “2014 Loan and Security Agreement”) with a syndicate of two lenders ("Lenders") for a term loan facility of $30.0 million. The Lenders agreed to provide the Company this term loan facility pursuant to the terms of promissory notes issued under this 2014 Loan and Security Agreement. The term loan facility is available to the Company in tranches; the first tranche for $20.0 million was advanced upon the closing of the agreement and the remaining $10.0 million is available for drawdown by the Company until February 2015 in $1.0 million increments. During the month of February 2014, the Company borrowed the first tranche of $20.0 million and incurred $0.4 million in debt issuance costs. The term loan bears interest at a variable per annum rate equal to the greater of 10% or LIBOR plus 9%. Interest is due and payable on the last business day of each month during the term of the loan commencing in February 2014. Monthly principal payments are due beginning in February 2016 based on 1/60th of the outstanding balance at that time and will continue until all remaining principal outstanding under the term loan becomes due and payable in February 2019. All amounts outstanding under this loan facility have been disclosed as part of 'Notes payable - less current portion' in the consolidated balance sheet as of December 31, 2014.

The term loan is secured by substantially all the assets of the Company and is subordinate to the 2013 Loan and Security Agreement. The 2014 Loan and Security Agreement contains certain covenants and includes the occurrence of a material adverse event, as defined in the agreement and determined by the Lenders, as an event of default. As of December 31, 2014, the Company was in compliance with these covenants.

In connection with entering into the 2014 Loan and Security Agreement, the Company issued to the Lenders warrants to purchase 177,865 shares of common stock at $10.12 per share, which vest and become exercisable, over a ten year term from the date of issuance, based on amounts drawn under the $30.0 million term loan facility. The exercise price of such warrants was subject to adjustment in the event of issuances of common stock by the Company at a price lower than the exercise price of such warrants any time prior to the date of effectiveness of the Company’s IPO and other corporate actions. Therefore, upon issuance the warrants were classified as a liability to the Company, which has been reclassified to additional paid-in capital upon the Company's IPO at which time these warrants were indexed to the Company's common stock. Based on the drawdown of $20.0 million in February 2014, 118,577 shares of common stock issuable under the warrants vested and are exercisable by the Lenders. The fair value of the vested warrants of $1.0 million was recorded as a discount against the debt proceeds and is being recognized as additional interest expense over the term of the loan. As of December 31, 2014, 59,288 shares of common stock issuable under the warrants pertaining to the undrawn $10.0 million remain unvested.

In February 2015, the Company amended the 2014 Loan and Security Agreement with the Lenders to extend the date by which the Company can draw down the remaining $10.0 million to February 2016. See Note 16.

Promissory Note

In July 2013, the Company issued a promissory note to the Universal Service Administrative Company ("USAC") for $4.1 million as a financing arrangement for that amount of accrued federal fees. The promissory note carries a fixed annual interest rate of 12.75% and is repayable in 42 equal monthly installments of principal and interest beginning in August 2013. As of December 31, 2014 and December 31, 2013, approximately $2.6 million and $3.7 million, respectively, of this promissory note was outstanding and is included as notes payable in the accompanying consolidated balance sheets.

As of December 31, 2014 and December 31, 2013, the Company’s outstanding debt is summarized as follows (in thousands):



	December 31,
	2014			2013
Term loan under 2014 Loan and Security Agreement	$	20,000		$	—
Term loan under 2013 Loan and Security Agreement	4,500			5,000
Promissory note to USAC	2,640			3,695
Revolving line of credit, non-current	12,500			12,500
Total debt	39,640			21,195
Less discount	(1,216		)	(78		)
Total debt, net carrying value	$	38,424		$	21,117
Less current portion of debt	(3,146		)	(1,522		)
Total debt, less current portion	35,278			19,595

Maturities of the Company’s outstanding debt as of December 31, 2014 are as follows (in thousands):



Period	Amount to Mature
2015	$	3,180
2016	19,507
2017	4,620
2018	4,000
2019	8,333
Total	$	39,640

Stockholders' Equity (Deficit)

12 Months Ended

Dec. 31, 2014

Equity [Abstract]

Stockholders' Equity (Deficit)

8. Stockholders’ Equity (Deficit)

Capital Structure

Convertible Preferred Stock

Prior to the IPO (Note 1), the Company had outstanding 75,643,683 shares of Series A-2 convertible preferred stock, 18,565,794 shares of Series B-2 convertible preferred stock, 12,903,226 shares of Series C-2 convertible preferred stock, and 15,269,294 shares of Series D-2 convertible preferred stock. Each share of convertible preferred stock was convertible into one share of common stock upon receipt of the required consent of preferred stockholders or upon consummation of a qualified IPO.

In March 2014, the Company’s board of directors and stockholders adopted an amendment to the Company’s certificate of incorporation to effect a reverse stock split of the Company's outstanding common stock at a ratio of 4:1. Accordingly, on April 3, 2014, the reverse stock split was effected such that, (i) each 4 shares of the then-outstanding common stock was reduced to one share of common stock; (ii) the number of shares issuable upon exercise of outstanding options and warrants to purchase common stock was proportionately reduced; and (iii) the exercise price of all outstanding warrants or stock options to purchase common stock was proportionately increased.

On April 3, 2014, immediately prior to the effectiveness of the Company’s registration statement filed with the SEC and the reverse stock split being effected, all shares of the Company's outstanding convertible preferred stock converted into common stock on a 1:1 basis. These shares of common stock issued upon conversion of the convertible preferred stock represented 30,595,477 shares of common stock after giving effect to the 4:1 reverse stock split on April 3, 2014.

Common Stock

In connection with the Company's IPO, the Company amended and restated its certificate of incorporation ("Amended and Restated Certificate of Incorporation"), pursuant to which the Company is authorized to issue 450,000,000 shares of common stock with a par value of $0.001 per share. The Amended and Restated Certificate of Incorporation was filed with the Delaware Secretary of State, and became effective on April 8, 2014.

Holders of the Company's common stock are entitled to dividends, if and when declared by the board of directors. In the event of liquidation, dissolution or winding up, subject to the rights of the holders of any then outstanding shares of preferred stock, holders of common stock will be entitled to receive the assets and funds of the Company that are legally available for distribution. As of December 31, 2014, there were 49,322,498 shares of common stock issued and outstanding.

Preferred Stock

Pursuant to the Amended and Restated Certificate of Incorporation, the Company's board of directors is also authorized to designate and issue up to 5,000,000 shares of preferred stock with a par value of $0.001 per share in one or more series without stockholder approval and to fix the rights, preferences, privileges and restrictions thereof. As of December 31, 2014, there were no shares of preferred stock issued and outstanding.

Common Stock Subject to Forfeiture

In connection with employment and service agreements entered into in connection with the Company’s acquisition of SoCoCare in October 2013 ("Acquisition Date"), the Company issued 118,577 shares of unvested restricted common stock, the vesting of which is contingent upon continuing employment or services and subject to forfeiture. The forfeiture rights for 50% of such shares lapsed during October 2014 and the remaining 50% will lapse on the second anniversary of the Acquisition Date. These shares were valued at $1.0 million, based on the Acquisition Date fair value of the Company’s common stock. This amount is being recorded as stock-based compensation on a straight-line basis over the two-year requisite service period. As of December 31, 2014 and 2013, 59,289 and 118,577 shares that were subject to forfeiture were included in issued and outstanding shares of common stock, respectively. For the years ended December 31, 2014 and 2013, $0.7 million and $0.2 million, respectively, were included as stock-based compensation expense related to these shares.

Warrants

As of December 31, 2014, the Company had outstanding warrants to purchase shares of common stock as follows (in thousands, except per share data):



Expiration Date	Exercise Price		Warrants Outstanding at December 31, 2014
February 2020	$	0.65	131
June 2020	$	0.65	38
October 2023	$	5.76	13
February 2024	$	10.12	178
Total			360

Prior to the IPO, the Company also had outstanding Series A-2 and Series D-2 convertible preferred stock warrants that were issued to certain investors and lenders in connection with its debt agreements. Upon the preferred stock conversion and the 4:1 reverse stock split on April 3, 2014, all then-outstanding convertible preferred stock warrants became warrants to purchase common stock. The table below is a summary of the Company’s warrant activity during the year ended December 31, 2014 (in thousands, except per share data).



	Series A-2 Convertible Preferred Stock Warrant					Series D-2 Convertible Preferred Stock Warrant				Common Stock Warrant
	(1)					(1)
	Shares			Weighted Average Exercise Price		Shares		Weighted Average Exercise Price		Shares			Weighted Average Exercise Price
Outstanding as of December 31, 2013	1,511			$	0.16	52		$	1.44	—			$	—
Issued	—			—		—		—		178		(2)	10.12
Exercised	(176	)	(3)	0.16		—		—		(165	)	(4)	0.65
Converted into common stock warrant upon IPO (5)	(1,335	)		0.16		(52	)	1.44		347			0.84
Outstanding as of December 31, 2014	—			$	—	—		$	—	360			$	5.59

(1) Share numbers and exercise prices of the convertible preferred stock warrants are on a pre-reverse split basis.

(2) In February 2014, in connection with the 2014 Loan and Security Agreement, the Company issued warrants to purchase up to 177,865 shares of common stock to the extent vested. As of December 31, 2014, these warrants were vested with respect to 118,577 shares of common stock. See Note 7.

(3) In March 2014, warrants to purchase 175,582 shares of Series A-2 convertible preferred stock were fully exercised under the cashless exercise method available under the warrant. Upon such exercise, the Company issued 166,228 shares of Series A-2 convertible preferred stock. Consequently, these instruments were no longer accounted for as liabilities and therefore were remeasured to their fair value as of the exercise date. The applicable fair value of $0.5 million related to these warrants was reclassified from liability to 'Additional paid-in capital' in the consolidated balance sheets.

(4) Subsequent to the IPO and through December 31, 2014, warrants to purchase 165,040 shares of common stock, were fully exercised, some of which pursuant to the cashless exercise method. Upon such exercises, the Company issued 161,979 shares of common stock.

(5) On April 3, 2014, all then outstanding convertible preferred stock warrants became common stock warrants. As a result, the fair value of these convertible preferred stock warrants and other liability-classified common stock warrants of $2.6 million was reclassified from liability to 'Additional paid-in capital' in the consolidated balance sheets. Fair value of these warrants on the date of the re-classification was equal to their carrying value.

Fair Value of Warrants

The Company estimates the fair value of each liability-classified warrant on the date of issuance and at each reporting date using the Black-Scholes option-pricing model and using the assumptions noted in the below table. Expected volatility is based upon the historical and implied volatility of a peer group of publicly traded companies. The expected term of warrants represents the contractual term of the warrants. The risk-free rate for the expected term of the warrants is based on the U.S. Treasury Constant Maturity at the time of issuance.

The fair value of the convertible preferred stock warrants and the liability-classified common stock warrants at April 3, 2014 and December 31, 2013 was determined using the Black-Scholes option-pricing model with the following assumptions:



	IPO Date April 3, 2014			December 31, 2013
Fair value of Series A-2 preferred stock	$	1.75	(1)	$	2.69
Fair value of Series D-2 preferred stock	$	1.75	(1)	$	2.81
Fair value of common stock	$	7.00	(1)	*
Risk-free interest rate	0.13% to 2.73%			0.33% to 2.60%
Expected life	Remaining contractual life			Remaining contractual life
Expected dividends	—			—
Volatility	40% - 50%			45 %


(1) Fair value of the underlying stock is based on the Company's IPO price of $7.00 per share calculated on a pre-reverse split basis for preferred stock and post-reverse split basis for common stock.
* There were no liability-classified common stock warrants at December 31, 2013.

Common Stock Reserved for Future Issuance

As of December 31, 2014, shares of common stock reserved for future issuance related to outstanding equity awards, warrants, and employee equity incentive plans were as follows (in thousands):



		December 31, 2014
Stock options outstanding		7,164
Restricted stock units outstanding		1,370
Shares available for future grant under 2014 Plan		3,394
Shares available for future issuance under ESPP		724
Common stock warrants outstanding		360
Total shares of common stock reserved		13,012

Equity Incentive Plans

Prior to the IPO, the Company granted stock options under its Amended and Restated 2004 Equity Incentive Plan, as amended (the “2004 Plan”). Under the terms of the 2004 Plan, the Company has the ability to grant incentive and nonstatutory stock options. Incentive stock options could only be granted to Company employees. Nonstatutory stock options could be granted to Company employees, directors and consultants. Such options are exercisable at prices, as determined by the board of directors, generally equal to the fair value of the Company’s common stock at the date of grant. Options granted to employees generally vest over a four-year period, with an initial vesting period of 12 months for 25% of the shares, and the remaining 75% of the shares vesting monthly on a ratable basis over the remaining 36 months. Options generally expire ten years after the grant date and are generally exercisable upon vesting. Vested options generally expire 90 days after termination of the optionee’s employment or relationship as a consultant or director, unless otherwise extended by the terms of the stock option agreement. Any unvested options or expired options are returned to the 2004 Plan.

In March 2014, the Company’s board of directors and stockholders approved the 2014 Equity Incentive Plan (“2014 Plan”) and 5,300,000 shares of common stock were authorized for issuance under the 2014 Plan. As of December 31, 2014, 3,394,297 shares of common stock were available for future grants under the 2014 Plan. In addition, on the first day of each year beginning in 2015 and ending in 2024, the 2014 Plan provides for an annual automatic increase to the shares reserved for issuance in an amount equal to 5% of the total number of shares outstanding on December 31st of the preceding calendar year or a lesser number as determined by the Company’s board of directors. Pursuant to the automatic annual increase, 2,466,124 additional shares were reserved under the 2014 Plan on January 1, 2015.

Upon the effectiveness of the 2014 Plan on April 3, 2014, no future grants will be made under the 2004 Plan. All shares reserved under the 2004 Plan became available for grant under the 2014 Plan. Any forfeited or expired shares that would otherwise return to the 2004 Plan after the IPO instead return to the 2014 Plan.

The 2014 Plan allows the Company to grant stock options, restricted stock units ("RSU"), restricted stock awards, performance stock awards, stock appreciation rights, performance cash awards, and other stock awards. To date, the Company has granted stock options and RSUs under the 2014 Plan. Stock options granted under the 2014 Plan are in general at a price not less than 100% of the fair market value of the common stock on the date of grant and vest over four years. The Company's stock options expire ten years from the date of grant. Each RSU granted under the 2014 Plan represents a right to receive one share of the Company’s common stock when the RSU vests. RSUs generally vest over one to four years.

Stock Options

A summary of the Company’s stock option activity during the year ended December 31, 2014 is as follows (in thousands, except years and per share data):



	Number of Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)	Aggregate Intrinsic Value (1)
Outstanding as of December 31, 2013	7,633		$	3.30
Options granted	1,405		6.43
Options exercised	(1,394	)	0.81
Options forfeited or expired	(480	)	4.08
Outstanding as of December 31, 2014	7,164		$	4.34	7.4	$	11,758
Vested and expected to vest as of December 31, 2014	6,911		4.25		7.3	11,700
Exercisable as of December 31, 2014	3,582		2.27		5.9	10,374

(1) The aggregate intrinsic value amounts are computed based on the difference between the exercise price of the stock options and the fair market value of the Company’s common stock of $4.48 as of December 31, 2014 for all in-the-money stock options outstanding.

Following is additional information pertaining to the Company’s stock option activities (in thousands):



	Year Ended December 31,
	2014		2013		2012
Weighted-average grant date fair value per share of options granted	$	3.42	$	4.19	$	1.23
Grant-date fair value of options vested	3,847		1,417		321
Intrinsic value of options exercised ⁽¹⁾	9,808		2,145		550
Proceeds received from options exercised	1,127		702		120

(1) Intrinsic value of options exercised is the difference between the fair value of the Company’s common stock at the time of exercise and the exercise price paid.

Restricted Stock Units

The Company commenced granting RSUs to employees upon the effectiveness of the 2014 Plan on April 3, 2014. A summary of the RSU activity during the year ended December 31, 2014 is as follows (in thousands, except years and per share data):



	Number of Shares		Weighted Average Grant Date Fair Value Per Share
Outstanding as of December 31, 2013	—		$	—
RSUs granted	1,399		5.23
RSUs vested and released	(15	)	6.33
RSUs forfeited	(14	)	5.59
Outstanding as of December 31, 2014	1,370		$	5.21

Employee Stock Purchase Plan

In March 2014, the Company’s board of directors and stockholders adopted the 2014 Employee Stock Purchase Plan, or ESPP, and the shares authorized for issuance thereunder. The ESPP became effective on April 3, 2014.

Under the initial offering program ("Initial Offering Program") approved by the compensation committee of the Company's board of directors ("Compensation Committee"), the initial offering period ("Initial Offering Period") commenced on April 3, 2014 with two purchases on the last trading day on or before November 15, 2014 and May 15, 2015. For the Initial Offering Period, the purchase price of the shares is 85% of the lower of the Company’s IPO price of $7.00 per share or the market price on the date of purchase. In October 2014, the Compensation Committee approved a new six-month offering period program under which each offering period will consist of one six-month purchase period with purchase date on the last trading day on or before May 15 or November 15 of each year. The first offering period under the New Offering Program ("New Offering Period") commenced on November 16, 2014, which coincided with the first day of the second purchase period of the Initial Offering Period. The Initial Offering Program will continue in accordance with its terms for the Initial Offering Period and will terminate when the second purchase of the Initial Offering Period is made on May 15, 2015. Eligible employees are allowed to either participate in the New Offering Period or stay with the Initial Offering Period, if they have participated, or both. On May 15, 2015, the total shares of common stock a participant is allowed to purchase under both offering periods is 1,500 shares. The Company concluded that starting the New Offering Period prior to the completion of the Initial Offering Period resulted in a modification pursuant to applicable guidance in the FASB ASC Topic 718, Compensation-Stock Compensation. By comparing the fair value of the purchase rights under the ESPP immediately prior to and immediately after the modification, which was estimated using the Black-Scholes option-pricing model, the Company determined that the incremental value of the modified ESPP shares was an immaterial amount and is amortizing this amount together with such shares' unamortized stock-based compensation cost from the Initial Offering Period over the term of the New Offering Period.

The ESPP permits eligible employees to purchase shares of the Company’s common stock through payroll deductions with up to 15% of their pre-tax earnings subject to certain Internal Revenue Code limitations. The purchase price of the shares is 85% of the lower of the fair market value of the Company’s common stock on the first day of an offering period, except for the initial offering period, or the relevant purchase date. In addition, no participant may purchase more than 1,500 shares of common stock in each purchase period.

The number of shares of common stock originally reserved for issuance under the ESPP is 880,000 shares, which will increase automatically each year, beginning on January 1, 2015 and continuing through January 1, 2024, by the lesser of (i) 1% of the total number of shares of our common stock outstanding on December 31 of the preceding calendar year; (ii) 1,000,000 shares of common stock (subject to adjustment to reflect any split or combination of our common stock); or (iii) such lesser number as determined by the Company’s board of directors. As of December 31, 2014, 723,869 shares of common stock were available for future grants under the ESPP Plan. Pursuant to the automatic annual increase, 493,224 additional shares were reserved under the ESPP on January 1, 2015.

During the year ended December 31, 2014, 156,131 shares were purchased at a price of $4.22 per share under the ESPP.

Stock-Based Compensation

Stock-based compensation expenses for the years ended December 31, 2014, 2013 and 2012 are as follows (in thousands):



	Year Ended December 31,
	2014		2013		2012
Cost of revenue	$	542	$	194	$	60
Research and development	1,931		499		154
Sales and marketing	1,510		751		112
General and administrative	2,770		505		138
Total stock-based compensation	$	6,753	$	1,949	$	464

As of December 31, 2014, unrecognized stock-based compensation expenses by award type, net of estimated forfeitures, and their expected weighted-average recognition periods are summarized in the following table (in thousands, except years).



	Stock Option		RSU		ESPP
Unrecognized stock-based compensation expense	$	10,845	$	5,234	$	393
Weighted-average amortization period	2.9 years		3.4 years		0.4 years

The Company recognizes stock-based compensation expense that is calculated based upon awards ultimately expected to vest and, thus, stock-based compensation expense is reduced for estimated forfeitures. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates.

All stock-based compensation for equity awards granted to employees and non-employee directors is measured based on the grant date fair value of the award.

The Company values RSUs at the fair value of the Company’s common stock on the date of grant. Prior to the IPO, the Company estimated the fair value of its common stock utilizing periodic contemporaneous valuations prepared by an independent third-party appraiser based upon several factors, including the Company's operating and financial performance, progress and milestones attained in its business, and past sales of convertible preferred stock. Upon the effectiveness of the IPO, the fair value of the Company's common stock is its closing market price as of the measurement date.

The Company estimates the fair value of each stock option and purchase right under the ESPP granted to employees on the date of grant using the Black-Scholes option-pricing model and using the assumptions noted in the below table. Expected volatility is based upon the historical volatility of a peer group of publicly traded companies. The expected term of options granted is estimated by taking the average of the vesting term and the contractual term of the option. Starting in November 2014, the Company estimates the expected volatility assumption for purchase rights under the ESPP based on the historical volatility of the Company's common stock as it had then been publicly traded for more than six months (i.e., the expected term of the purchase rights under the ESPP). The risk-free rate for the expected term of the awards is based on U.S. Treasury zero-coupon issues at the time of grant.

The weighted-average assumptions used to value stock options and purchase rights under the ESPP granted during the years ended December 31, 2014, 2013 and 2012 were as follows:



Stock Options	Year Ended December 31,
	2014	2013	2012
Expected term (years)	6.1	6.0	6.1
Volatility	55%	60%	60%
Risk-free interest rate	1.8%	1.5%	1.0%
Dividend yield	—	—	—



ESPP	Granted In
	April 2014	November 2014
Expected term (years)	0.8	0.5
Volatility	39%	56%
Risk-free interest rate	0.1%	0.1%
Dividend yield	—	—

Net Loss Per Share

12 Months Ended

Dec. 31, 2014

Earnings Per Share [Abstract]

Net Loss Per Share

9. Net Loss Per Share

Basic net loss per share is calculated by dividing net loss by the weighted average number of common shares outstanding during the period, and excludes any dilutive effects of employee stock-based awards and warrants. Diluted net income per share is computed giving effect to all potentially dilutive common shares, including common stock issuable upon exercise of stock options and warrants and vesting of restricted stock. As the Company had net losses for the years ended December 31, 2014, 2013 and 2012, all potentially issuable common shares were determined to be anti-dilutive.

The following table presents the calculation of basic and diluted net loss per share (in thousands, except per share data).



	Year Ended December 31,
	2014			2013			2012
Net loss	$	(37,786	)	$	(31,314	)	$	(19,334	)
Weighted-average shares used in computing basic and diluted net loss per share	37,604			4,006			3,321
Basic and diluted net loss per share	$	(1.00	)	$	(7.82	)	$	(5.82	)

The following securities were excluded from the calculation of diluted net loss per share attributable to common stockholders because their effect would have been anti-dilutive for the periods presented (in thousands).



	December 31,
	2014	2013	2012
Convertible preferred stock (on an as converted post reverse stock split basis)	—	30,554	26,737
Stock options	7,164	7,633	5,534
Restricted stock units	1,370	—	—
ESPP	192	—	—
Common stock warrants	360	—	—
Convertible preferred stock warrants (on an as converted post reverse stock split basis)	—	391	378
Common stock subject to repurchase or forfeiture	59	134	—
Total	9,145	38,712	32,649

Income Taxes

12 Months Ended

Dec. 31, 2014

Income Tax Disclosure [Abstract]

Income Taxes

10. Income Taxes

The following table presents domestic and foreign components of loss before provision for income taxes for the periods presented (in thousands):



	Year Ended December 31,
	2014			2013			2012
Domestic	$	(37,657	)	$	(31,628	)	$	(19,493	)
Foreign	(44		)	384			221
Loss before provision for income taxes	$	(37,701	)	$	(31,244	)	$	(19,272	)

The components of the provision for income taxes are as follows (in thousands):



	Year Ended December 31,
	2014		2013		2012
Current:
U.S. State	$	12	$	9	$	8
Foreign	73		61		54
Total provision for income taxes	$	85	$	70	$	62

Income tax expense differed from the amounts computed by applying the U.S. federal income tax rate of 34% to pre-tax loss for the years ended December 31, 2014, 2013 and 2012 as a result of the following (in thousands):



	Year Ended December 31,
	2014			2013			2012
Federal tax at statutory rate	$	(12,818	)	$	(10,623	)	$	(6,552	)
U.S. state income taxes, net of federal benefit	(1,098		)	(786		)	(191		)
Non-deductible expenses	420			1,383			670
Research and development credit	(455		)	(339		)	(56		)
Stock-based compensation	746			444			126
Other	(72		)	(586		)	(58		)
Change in valuation allowance	13,362			10,577			6,123
Total provision for income taxes	$	85		$	70		$	62

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The following table presents the significant components of the Company’s deferred tax assets and liabilities for the periods presented (in thousands):



	December 31,
	2014			2013
Deferred tax assets:
Net operating loss and credit carryforwards	$	39,211		$	26,076
Accrued liabilities	4,308			4,690
Allowance for doubtful accounts	256			98
Compensation accruals	626			439
Intangibles	23			27
Gross deferred tax assets	44,424			31,330
Valuation allowance	(43,203		)	(29,841		)
Net deferred tax assets	1,221			1,489
Deferred tax liability:
Property and equipment	(278		)	(370		)
Amortized intangibles	(943		)	(1,119		)
Gross deferred tax liability	(1,221		)	(1,489		)
Net deferred taxes	$	—		$	—

The Company has not provided for U.S. income taxes on undistributed earnings of its foreign subsidiaries, because it intends to permanently re-invest those earnings outside the United States. Undistributed earnings of foreign subsidiaries are immaterial for all periods presented.

A valuation allowance is provided for deferred tax assets where the recoverability of the assets is uncertain. The determination to provide a valuation allowance is dependent upon the assessment of whether it is more likely than not that sufficient future taxable income will be generated to utilize the deferred tax assets. Based on the weight of the available evidence, which includes the Company’s historical operating losses, lack of taxable income, and the accumulated deficit, the Company provided a full valuation allowance against the net deferred tax assets. The net change in the valuation allowance for the years ended December 31, 2014 and 2013 was an increase of $13.4 million and $10.8 million, respectively.

As of December 31, 2014, the Company had net operating loss carryforwards of approximately $106.4 million for federal income taxes and $68.8 million for state income taxes to reduce future income subject to income taxes. If not utilized, these carryforwards will begin to expire in 2024 for federal purposes and began to expire in 2014 for state purposes. As of December 31, 2014, the Company also had research and development credit carryforwards of approximately $1.6 million and $1.3 million for federal and state income taxes, respectively, available to reduce future income subject to income taxes. If not utilized, the federal carryforwards will begin to expire in various amounts beginning in 2028. The state tax credit can be carried forward indefinitely. The Internal Revenue Code of 1986, as amended, imposes restrictions on the utilization of net operating losses in the event of an “ownership change” of a corporation. Accordingly, a company’s ability to use net operating losses may be limited as prescribed under Internal Revenue Code Section 382 (“IRC Section 382”). Events which may cause limitations in the amount of the net operating losses that the Company may use in any one year include, but are not limited to, a cumulative ownership change of more than 50% over a three-year period. Utilization of the federal and state net operating losses may be subject to substantial annual limitation due to the ownership change limitations provided by the IRC Section 382 and similar state provisions. The Company experienced an ownership change prior to 2014 that did not materially impact the availability of its net operating losses and tax credits and the disclosed amounts of such attributes have been reduced for the effect of the IRC Section 382 limitations. In the event the Company has subsequent changes in ownership in connection with the IPO or other transactions, net operating losses and research and development credit carryforwards, which are fully reserved by the deferred tax asset valuation allowance, could be limited and may expire unutilized.

The Company recognizes in the consolidated financial statements the impact of a tax position, if that position is more likely than not of being sustained on audit, based on the technical merits of the position.

A reconciliation of the beginning and ending amount of unrecognized tax benefits (excluding interest and penalties) which are presented as reductions in gross deferred tax assets for the periods presented is as follows (in thousands):



	Year Ended December 31,
	2014			2013			2012
Unrecognized benefit — beginning of period	$	1,455		$	1,075		$	994
Gross increases — current year tax positions	532			382			91
Gross decreases — prior year tax positions	(12		)	(2		)	(10		)
Unrecognized benefit — end of period	$	1,975		$	1,455		$	1,075

In accordance with the FASB ASC 740, the Company has adopted the accounting policy that interest and penalties recognized are classified as part of its income tax expense. The Company does not anticipate that its total unrecognized tax benefits as of December 31, 2014 will significantly change due to settlement of examination or the expiration of statute of limitations during the next 12 months.

The Company is currently unaware of any uncertain tax positions that could result in significant additional payments, accruals or other material deviation in this estimate over the next 12 months.

The Company is subject to taxation in the United States, various states and several foreign jurisdictions. Due to the Company’s net carryover of unused operating losses, all years from 2001 forward remain subject to future examination by the U.S. federal and state tax authorities. The Company’s foreign tax returns are open to audit under the statutes of limitations of the respective foreign countries in which the subsidiaries are located. The Company considers all undistributed earnings of its foreign subsidiaries indefinitely reinvested.

Commitments and Contingencies

12 Months Ended

Dec. 31, 2014

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

11. Commitments and Contingencies

Leases

The Company has operating lease agreements for offices, research and development, and sales and marketing facilities that expire at various dates through 2018. The Company recognizes rent expense on a straight-line basis over the lease term and records the difference between cash rent payments and the recognized rent expense as a deferred rent liability. Rent expense was $2.6 million, $2.3 million, and $2.0 million for the years ended December 31, 2014, 2013 and 2012, respectively.

The Company enters into capital leases to finance data center and other computer and networking equipment.

As of December 31, 2014, approximate remaining future minimum lease payments under non-cancelable leases are as follows (in thousands):



Year ending December 31,	Capital Leases			Operating Leases
2015	$	5,694		$	2,147
2016	3,765			2,043
2017	1,408			1,877
2018	85			304
Total future minimum lease payment	$	10,952		$	6,371
Less — amount representing interest	(1,680		)
Present value of total capital lease obligation	$	9,272
Capital lease obligation — current portion	4,849
Capital lease obligation — net of current portion	4,423

Hosting and Telecommunication Usage Services

The Company has agreements with third parties to provide co-location hosting and telecommunication usage services. The agreements require payments per month for a fixed period of time in exchange for certain guarantees of network and telecommunication availability.

As of December 31, 2014, future minimum payments under these arrangements are as follows (in thousands):



Year ending December 31,	Hosting Services		Telecommunication Usage Services
2015	$	1,583	$	3,184
2016	1,446		1,218
2017	724		82
Total future minimum lease payment	$	3,753	$	4,484

Universal Services Fund Liability

During the third quarter of 2012, the Company determined that based on its business activities, it is classified as a telecommunications service provider for regulatory purposes and it should make direct contributions to the federal Universal Service Fund and related funds based on revenues it receives from the resale of interstate and international telecommunications services. Previously, the Company had believed that the telecommunications services were an integral part of an information service that the Company provides via its software and had instead made indirect USF contributions via payments to its wholesale telecommunications service providers. In order to comply with the obligation to make direct contributions, the Company has made a voluntary self-disclosure to the Federal Communications Commission (“FCC”) Enforcement Bureau and has registered with the USAC, which is charged by the FCC with administering the USF. The Company has filed exemption certificates with its wholesale telecommunications service providers in order to eliminate its obligation to reimburse such wholesale telecommunications service providers for their USF contributions calculated on services sold to the Company.

The Company’s registration with USAC subjects it to assessments for unpaid USF contributions, as well as interest thereon and civil penalties, due to its late registration and past failure to recognize its obligation as a USF contributor and as an international carrier. The Company will be required to pay assessments for periods prior to the Company’s registration. While the Company is in administrative proceedings before the FCC to limit such back assessments to the period 2008 through 2012, it is possible that it will be required to pay back assessments for the period from 2003 through 2007. The Company will also face a regulatory and contractual challenge in seeking recovery or credit for its USF reimbursement payments previously made to its wholesale telecommunications service providers of up to $3.1 million as of December 31, 2014. In 2013, the Company began remitting required contributions on a prospective basis directly to USAC.

In July 2013, the Company and USAC agreed to a financing arrangement for the undisputed portion of the unpaid USF contributions and related interest for the periods 2008 through 2012 whereby the Company issued to USAC a promissory note payable in the amount of $4.1 million. The repayment terms of the promissory note payable are disclosed in Note 7. As of December 31, 2014, the balance of the promissory note payable was $2.6 million and included in the notes payable amounts on the consolidated balance sheets. In addition to the promissory note payable, as of December 31, 2014 and 2013, the Company had an accrued liability for the unpaid USF contributions and related interest and penalties of $5.2 million and $4.2 million, respectively, included in accrued federal fees on the consolidated balance sheets, of which $0.8 million pertains to periods prior to 2008. The $5.2 million accrued liability as of December 31, 2014 also included $0.4 million of incremental USF contribution obligation that the Company identified and recorded in the fourth quarter of 2014 for certain revenue earned during the period from 2008 through the third quarter of 2014 (see Note 1). For the years ended December 31, 2014, 2013 and 2012, the Company recorded interest and penalty expenses of $0.5 million, $0.2 million and $0.1 million, respectively, as a charge to general and administrative, respectively, which were related to its unpaid USF obligations for the periods prior to 2013.

No amounts related to the potential recovery or credit of USF contributions paid by the Company to its wholesale telecommunications service providers were recognized in the accompanying consolidated financial statements.

In connection with the Company's late registration with the USAC and past failure to recognize its obligation as a USF contributor and as an international carrier, in October 2014, the FCC Enforcement Bureau began to negotiate with the Company a consent decree and a civil penalty to conclude its investigation into the Company's 2008 - 2012 USF contribution and international carrier authorization compliance. On October 28, 2014, the FCC Enforcement Bureau and the Company tentatively agreed on a $2.0 million civil penalty and are negotiating on a consent decree to resolve this matter. Principal payments of the civil penalty will likely be payable to the U.S. Treasury over 36 months beginning on the date of execution, which the Company anticipates will be in the course of 2015 under an installment payment plan to be further negotiated by the Company and the FCC Enforcement Bureau.

Based on the information that became available in October 2014, the Company believed that this probable loss existed and became reasonably estimable and therefore accrued a liability of $2.0 million within 'Accrued federal fees' in the consolidated balance sheet in the third quarter of 2014, which was charged to general and administrative expense. There has been no change in this accrued probable loss during the fourth quarter of 2014.

In connection with the incremental past-due USF contribution obligation for the period 2008 through 2013 that the Company identified and recorded in the fourth quarter of 2014, based on information available, the Company doesn't expect to incur a penalty in addition to the existing tentative $2.0 million civil penalty and therefore has not accrued any additional penalties with respect to the incremental past-due USF contribution obligations.

State and Local Taxes and Surcharges

During 2013, the Company analyzed its activities and determined it may be obligated to collect and remit various state and local taxes and surcharges on its usage-based fees. The Company had not remitted state and local taxes on usage-based fees in any of the periods prior to 2014 and therefore accrued a sales tax liability for this contingency. In January 2014, the Company commenced paying such taxes and surcharges to certain state authorities. In June 2014, the Company commenced collecting state and local taxes or surcharges on usage-based fees from its clients on a current basis and remitting such taxes to the applicable state taxing authorities. During the year ended December 31, 2014, the Company has remitted $1.3 million for its state and local taxes on usage-based fees related to the periods prior to June 2014. Excluding the credit as discussed below, for the years ended December 31, 2014, 2013 and 2012, the Company recognized general and administrative expense of $1.1 million, $2.2 million and $1.6 million, respectively, related to its estimated sales tax liability on usage-based fees, which was not being collected from its clients. The expense recognized for 2014 included $0.3 million of state taxes and surcharges that the Company identified and recorded in the fourth quarter of 2014 for certain revenue earned during the period from 2008 through the third quarter of 2014 (see Note 1).

Reversal of contingent sales tax liability - In May 2014, the Company received a letter from a state revenue authority which concluded that the Company's services provided to customers in that specific state are not subject to that state's local taxes. As a result, the Company released $2.8 million of sales tax liability, including estimated interest charges, accrued progressively on a quarterly basis from 2011 through the first quarter of 2014 for that state as we believe that the risk of loss being incurred is no longer probable. Of the total reversal amount, $2.5 million was related to the period 2011 through 2013. The reversal has been recorded through the general and administrative expense caption in the consolidated statements of operations and comprehensive loss.

As of December 31, 2014 and 2013, the Company had total accrued liabilities of $2.6 million and $5.4 million, respectively, for its contingent state and local sales taxes and surcharges, which were not being collected from its clients but may be imposed by various states and municipalities. This liability was included in "Sales tax liability (non current)" on the consolidated balance sheets.

The Company’s estimate of the probable loss incurred under this contingency is based on its analysis of the source location of its usage-based fees and the regulations and rules in each state.

Legal Matters

The Company is involved in various legal and regulatory matters arising in the normal course of business. In management’s opinion, resolution of these matters is not expected to have a material impact on the Company’s consolidated results of operations, cash flows, or its financial position. However, depending on the nature and timing of any such dispute, an unfavorable resolution of a matter could materially affect the Company’s future consolidated results of operations, cash flows or financial position in a particular period.

The Company is currently involved in the following lawsuits as a defendant.

NobelBiz Litigation

In April 2012, NobelBiz, Inc., a telecommunication solutions company, brought a patent infringement lawsuit in the U.S. District Court for the Eastern District of Texas against the Company seeking a permanent injunction, damages and attorneys' fees. The Company responded to the complaint and preliminary injunction request by asserting non-infringement and invalidity of the patent.

In March 2013, the court granted the Company's motion to transfer the case to the U.S. District Court for the Northern District of California subsequent to which the complainant amended its claim to include another related patent. The Company has responded to this amended claim by continuing to assert non-infringement and invalidity of the patents. During December 2013, the court in California held a status conference and subsequently held a claim construction hearing regarding the patents on August 22, 2014. On January 16, 2015, the Court issued an order regarding claim construction of the two patents-in-suit. No trial date or further schedule has been set, but now that the Court has issued its claim construction ruling, it is anticipated that the Court will enter a further scheduling order setting additional dates for the case. The Company has investigated the claims alleged in the complaint and believes that it has good defenses to the claims. Accordingly, the Company has not accrued a loss related to this matter as the Company does not believe that it is probable that a loss will be incurred.

UHC Claim

On January 29, 2015, Soneet Kapila, the Chapter 11 Trustee for the estate of Universal Health Care Group, Inc., which entity serves as the sole member of American Managed Care, LLC, filed an adversary complaint against the Company. See Note 16.

Indemnification Agreements

In the ordinary course of business, the Company may provide indemnifications of varying scope and terms to clients, vendors, lessors, business partners and other parties with respect to certain matters, including, but not limited to, losses arising out of breach of such agreements, services to be provided by the Company or from intellectual property infringement claims made by third parties. In addition, the Company has entered into indemnification agreements with its directors, officers and certain employees that require the Company, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors, officers or employees. No demands have been made upon the Company to provide indemnification under such agreements and thus there are no claims that the Company is aware of that would have a material effect on the Company’s consolidated balance sheets, consolidated statements of operations and comprehensive loss, or consolidated statements of cash flows.

Geographical Information

12 Months Ended

Dec. 31, 2014

Segment Reporting [Abstract]

Geographical Information

12. Geographical Information

The following table is a summary of revenues by geographic region based on client billing address and has been estimated based on the amounts billed to clients during the periods (in thousands).



	Year Ended December 31,
	2014		2013		2012
United States	$	95,345	$	75,374	$	57,185
International	7,757		8,758		6,637
Total revenue	$	103,102	$	84,132	$	63,822

The following table summarizes total property and equipment, net in the respective locations (in thousands).



	December 31,
	2014		2013
United States	$	10,625	$	11,079
International	1,946		528
Property and equipment, net	$	12,571	$	11,607

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 33
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 26
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 35
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 29
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599

+ Details

Retirement Plans	12 Months Ended
Retirement Plans	Dec. 31, 2014
Compensation and Retirement Disclosure [Abstract]
Retirement Plans	13. Retirement Plans The Company has a 401(k) plan to provide tax deferred salary deductions for all eligible employees. Participants may make voluntary contributions to the 401(k) plan, limited by certain Internal Revenue Service restrictions. The Company is responsible for the administrative costs of the 401(k) plan. The Company does not match employee contributions.

Related Party Transactions	12 Months Ended
Related Party Transactions	Dec. 31, 2014
Related Party Transactions [Abstract]
Related-Party Transactions	14. Related-Party Transactions One of the Company’s directors has a minority ownership interest in one of the Company’s data warehousing vendors. The Company incurred expenses to this vendor of $30 thousand, $0.3 million, and $0.5 million for the years ended December 31, 2014, 2013 and 2012, respectively. As of December 31, 2014, the Company had no outstanding payables to this vendor.

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References + Details

Selected Quarterly Financial Data (Unaudited)

12 Months Ended

Dec. 31, 2014

Quarterly Financial Information Disclosure [Abstract]

Selected Quarterly Financial Data (Unaudited)

15. Selected Quarterly Financial Data (Unaudited)

Selected quarterly financial information for 2014 and 2013 is as follows:



	Quarter Ended
	Dec. 31, 2014 (1)			Sept. 30, 2014 (2)			Jun. 30, 2014 (3)			Mar. 31, 2014			Dec. 31, 2013			Sept. 30, 2013			Jun. 30, 2013			Mar. 31, 2013

	(unaudited, in thousands, except per share data)
Revenue	$	28,274		$	25,869		$	24,685		$	24,274		$	23,643		$	21,091		$	20,283		$	19,115
Cost of revenue ⁽⁴⁾⁽⁵⁾	14,540			13,504			13,469			13,148			12,646			12,265			12,215			11,681
Gross profit	13,734			12,365			11,216			11,126			10,997			8,826			8,068			7,434
Operating expenses:
Research and development ⁽⁴⁾⁽⁵⁾	5,828			5,503			5,554			5,225			4,850			4,419			4,106			4,154
Sales and marketing ⁽⁴⁾⁽⁵⁾	9,453			9,296			9,674			9,022			7,727			6,964			7,227			6,147
General and administrative ⁽⁴⁾⁽⁵⁾	6,763			7,967			3,515			6,171			5,953			4,223			4,052			3,825
Total operating expenses	22,044			22,766			18,743			20,418			18,530			15,606			15,385			14,126
Loss from operations	(8,310		)	(10,401		)	(7,527		)	(9,292		)	(7,533		)	(6,780		)	(7,317		)	(6,692		)
Other income (expense), net:
Change in fair value of convertible preferred and common stock warrant liabilities	—			—			—			1,745			(694		)	(622		)	(785		)	230
Interest expense	(1,175		)	(1,116		)	(1,092		)	(778		)	(414		)	(273		)	(215		)	(178		)
Interest income and other	146			95			(28		)	32			10			(15		)	32			2
Total other income (expense), net	(1,029		)	(1,021		)	(1,120		)	999			(1,098		)	(910		)	(968		)	54
Loss before provision for income taxes	(9,339		)	(11,422		)	(8,647		)	(8,293		)	(8,631		)	(7,690		)	(8,285		)	(6,638		)
Provision for income taxes	33			13			12			27			1			45			5			19
Net loss	$	(9,372	)	$	(11,435	)	$	(8,659	)	$	(8,320	)	$	(8,632	)	$	(7,735	)	$	(8,290	)	$	(6,657	)
Net loss per share:
Basic and diluted	$	(0.19	)	$	(0.24	)	$	(0.18	)	$	(1.48	)	$	(1.72	)	$	(2.05	)	$	(2.25	)	$	(1.88	)
Shares used in computing net loss per share:
Basic and diluted	49,003			48,310			46,898			5,608			5,013			3,779			3,684			3,536

(1) Cost of revenue and general and administrative included a $0.4 million and a $0.3 million out-of-period adjustments, respectively, for 2008 through the third quarter of 2014. For each of these adjustments, $0.2 million is related to the period 2008 through 2013. See Note 1.

(2) General and administrative included a $2.0 million charge for an expected settlement with the FCC Enforcement Bureau. See Note 11.

(3) General and administrative included a $2.8 million credit recorded as a result of a favorable ruling from a specific state's revenue authority. See Note 11.

(4) Includes stock-based compensation as follows:



	Quarter Ended
	Dec. 31, 2014		Sept. 30, 2014		Jun. 30, 2014		Mar. 31, 2014		Dec. 31, 2013		Sept. 30, 2013		Jun. 30, 2013		Mar. 31, 2013

	(unaudited, in thousands)
Cost of revenue	$	176	$	158	$	121	$	87	$	67	$	51	$	44	$	32
Research and development	527		583		471		350		261		136		49		53
Sales and marketing	455		361		368		326		330		182		134		105
General and administrative	799		775		763		433		265		89		77		74
Total stock-based compensation	$	1,957	$	1,877	$	1,723	$	1,196	$	923	$	458	$	304	$	264

(5) Includes depreciation and amortization expenses as follows:



	Quarter Ended
	Dec. 31, 2014		Sept. 30, 2014		Jun. 30, 2014		Mar. 31, 2014		Dec. 31, 2013		Sept. 30, 2013		Jun. 30, 2013		Mar. 31, 2013

	(unaudited, in thousands)
Cost of revenue	$	1,291	$	1,272	$	1,373	$	1,202	$	1,200	$	900	$	752	$	857
Research and development	75		58		50		46		59		57		54		44
Sales and marketing	50		50		48		48		41		17		14		11
General and administrative	189		187		228		296		213		89		61		46
Total depreciation and amortization	$	1,605	$	1,567	$	1,699	$	1,592	$	1,513	$	1,063	$	881	$	958

Subsequent Events	12 Months Ended
Subsequent Events	Dec. 31, 2014
Subsequent Events [Abstract]
Subsequent Events	16. Subsequent Events UHC Claim On January 29, 2015, Soneet Kapila, the Chapter 11 Trustee for the estate of Universal Health Care Group, Inc., which entity serves as the sole member of American Managed Care, LLC (“AMC”), filed an adversary complaint against the Company in the United States Bankruptcy Court for the Middle District of Florida. The adversary proceeding, Soneet Kapila v. Five9, Inc., Case No. 13-05952 (KRM), Adv. No. 15-00092 (KRM), seeks to avoid and recover as preferential payments, actual fraudulent transfers and/or constructive fraudulent transfers certain payments that the Company allegedly received from AMC in return for services provided by the Company between May 3, 2011 and May 3, 2014. The trustee seeks approximately $2.5 million in damages. No answer or responsive pleadings have yet been filed. The Company is at the early stages of this lawsuit and intends to defend the claim vigorously. The Company does not believe that it is probable that a material loss will be incurred and accordingly has not accrued a loss related to this matter. Second Amendment to the 2014 Loan and Security Agreement In February 2015, the Company entered into a second amendment to the 2014 Loan and Security Agreement ("Second Amendment") with the Lenders, which extends to February 20, 2016 the date by which the Company can draw the $10.0 million in funds that remain available under the 2014 Loan and Security Agreement. The Company paid the Lenders an amendment fee of $0.1 million in connection with the Second Amendment. Except as noted above, the material terms of the 2014 Loan and Security Agreement remain substantially unchanged.

Description of Business and Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2014

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Initial Public Offering

Immaterial Out of Period Adjustments

Use of Estimates

Foreign Currency

Cash and Cash Equivalents

Short-Term Investments

Concentration Risks

Allowance for Doubtful Accounts

The following table presents the changes in the accounts receivable allowance for doubtful accounts (in thousands):



	Year Ended December 31,
	2014			2013			2012
Balance, beginning of period	$	42		$	54		$	23
Add: bad debt expense	76			89			214
Less: write-offs, net of recoveries	(53		)	(101		)	(183		)
Balance, end of period	$	65		$	42		$	54

Property and Equipment, Net

Property and equipment is stated at cost less accumulated depreciation and amortization, and is depreciated using the straight-line method over the estimated useful lives of the assets as follows:



Asset Category		Estimated Useful Lives
Computer and network equipment		3 years
Computer software		3 years
Development costs		1 to 5 years
Furniture and fixtures		7 years
Leasehold improvements		Shorter of useful life or lease term

Business Combinations

Goodwill and Intangible Assets

Revenue Recognition

The Company recognizes revenue for each unit of accounting when all of the following criteria have been met:


•	persuasive evidence of an arrangement exists;


•	delivery has occurred;


•	the fee is fixed or determinable; and


•	collection is reasonably assured.

Revenue allocated to the separate accounting units is recognized as follows:


•	fixed subscription revenue is recognized on a straight-line basis over the applicable term, predominantly the monthly contractual billing period;


•	variable usage revenue is recognized as actual usage occurs. Usage revenue in subscription arrangements that include bundled usage is recognized on a straight-line basis over the applicable term, as the Company cannot reliably estimate client usage patterns; and


•	professional services revenue is recognized as services are performed using the proportional performance method, with performance measured based on labor hours, assuming all other revenue recognition criteria have been met.

Deferred Revenue

Cost of Revenue

Research and Development

Advertising Costs

Commissions

Stock-Based Compensation

Convertible Preferred and Common Stock Warrant Liabilities

Recent Accounting Pronouncements

Description of Business and Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2014

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Allowance for Doubtful Accounts

The following table presents the changes in the accounts receivable allowance for doubtful accounts (in thousands):



	Year Ended December 31,
	2014			2013			2012
Balance, beginning of period	$	42		$	54		$	23
Add: bad debt expense	76			89			214
Less: write-offs, net of recoveries	(53		)	(101		)	(183		)
Balance, end of period	$	65		$	42		$	54

Schedule of Property and Equipment, Useful Lives

Property and equipment is stated at cost less accumulated depreciation and amortization, and is depreciated using the straight-line method over the estimated useful lives of the assets as follows:



Asset Category		Estimated Useful Lives
Computer and network equipment		3 years
Computer software		3 years
Development costs		1 to 5 years
Furniture and fixtures		7 years
Leasehold improvements		Shorter of useful life or lease term

Acquisition of Face It, Corp. (Tables)

12 Months Ended

Dec. 31, 2014

Business Combinations [Abstract]

Schedule of Fair Value of Assets Acquired and Liabilities Assumed

The following table summarizes the fair values of the assets acquired and liabilities assumed at the Acquisition Date (in thousands):



	As of October 18, 2013
Tangible assets acquired	$	177
Intangible assets:
Developed technology	2,460
Customer relationships	520
Domain names	50
Non-compete agreements	140
Goodwill	11,798
Current liabilities	(113		)
Total purchase price	$	15,032

Schedule of Estimated Useful Lives and Valuation Techniques

Details related to estimated useful lives and the valuation techniques utilized for estimating fair value of the intangible assets acquired are shown below:



Intangible Type	Valuation Technique	Useful Life
Developed technology	Excess earnings method	7 years
Customer relationships	Cost approach	5 years
Domain names	Relief from royalty method	5 years
Non-compete agreements	Modified discounted cash flow	3 years

Schedule of Pro Forma Financial information

The pro forma financial information is provided for comparative purposes only and is not necessarily indicative of what the actual results would have been had the acquisition occurred at the beginning of year 2012 (unaudited and in thousands):



	Year Ended December 31,
	2013			2012
Revenue	$	84,260		$	64,187
Net loss	$	(32,787	)	$	(23,151	)

Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2014

Fair Value Disclosures [Abstract]

Schedule of Assets and Liabilities Carried at Fair Value

The fair value of assets and liabilities carried at fair value was determined using the following inputs (in thousands):



	December 31, 2014
	Total		Level 1
Assets
Short-term investments:
U.S. Treasury bills	$	20,000	$	20,000

	December 31, 2013
	Total		Level 1		Level 3
Assets
Cash equivalents:
Money market funds	$	738	$	738	$	—
Liabilities
Convertible preferred stock warrant liability	3,935		—		3,935

Reconciliation of Stock Warrants Measured at Fair Value



	Year Ended December 31,
	2014			2013		2012
Balance as of beginning of period	$	3,935		$	1,979	$	305
Changes in fair value of convertible preferred stock warrants	(1,233		)	1,871		1,674
Issuance of Series D-2 convertible preferred stock warrants in connection with debt agreement	—			85		—
Exercise of Series A-2 convertible preferred stock warrants	(509		)	—		—
Issuance of common stock warrants in connection with debt agreement	966			—		—
Changes in fair value of common stock warrants	(512		)	—		—
Reclassified to additional paid-in capital	(2,647		)	—		—
Balance as of end of period	$	—		$	3,935	$	1,979

Cash, Cash Equivalents and Short-Term Investments (Tables)

12 Months Ended

Dec. 31, 2014

Cash, Cash Equivalents, and Short-term Investments [Abstract]

Schedule of Cash and Cash Equivalents

Cash and cash equivalents consisted of the following (in thousands):



	December 31,
	2014		2013
Cash and cash equivalents:
Cash	$	58,289	$	17,010
Money market funds	—		738
Total cash and cash equivalents	$	58,289	$	17,748

Schedule of Short-Term Investments

As of December 31, 2014, short-term investments consisted of the following (in thousands):



	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Aggregate Fair Value
U.S. Treasury bills	$	20,000	$	—	$	—	$	20,000

- Definition

Tabular disclosure of available-for-sale securities which includes, but is not limited to, changes in the cost basis and fair value, fair value and gross unrealized gain (loss), fair values by type of security, contractual maturity and classification, amortized cost basis, contracts to acquire securities to be accounted for as available-for-sale, debt maturities, transfers to trading, change in net unrealized holding gain (loss) net of tax, continuous unrealized loss position fair value, aggregate losses qualitative disclosures, other than temporary impairment (OTTI) losses or other disclosures related to available for sale securities.

+ References + Details

Financial Statement Components (Tables)

12 Months Ended

Dec. 31, 2014

Financial Statement Components [Abstract]

Schedule of Accounts Receivable

Accounts receivable, net consisted of the following (in thousands):



	December 31,
	2014			2013
Trade accounts receivable	$	7,482		$	6,430
Unbilled trade accounts receivable, net of advance client deposits	918			582
Allowance for doubtful accounts	(65		)	(42		)
Accounts receivable, net	$	8,335		$	6,970

Schedule of Property and Equipment

Property and equipment, net consisted of the following (in thousands):



	December 31,
	2014			2013
Computer and network equipment	$	24,292		$	18,851
Computer software	2,264			1,550
Development costs	—			285
Furniture and fixtures	1,030			792
Leasehold improvements	611			539
Property and equipment	28,197			22,017
Accumulated depreciation and amortization	(15,626		)	(10,410		)
Property and equipment, net	$	12,571		$	11,607

Schedule of Capital Leased Property and Equipment

Property and equipment capitalized under capital lease obligations consist primarily of computer and network equipment and were as follows (in thousands):



	December 31,
	2014			2013
Gross	$	21,025		$	15,123
Less: accumulated depreciation and amortization	(10,609		)	(5,591		)
Total	$	10,416		$	9,532

Schedule of Accrued and Other Current Liabilities

Accrued and other current liabilities consisted of the following (in thousands):



	December 31,
	2014		2013
Accrued expenses	$	2,240	$	2,453
Accrued compensation and benefits	5,078		3,476
Accrued and other current liabilities	$	7,318	$	5,929

Goodwill and Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Intangible Assets

The components of intangible assets were as follows (in thousands):



	December 31, 2014							December 31, 2013
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Developed technology	$	2,460	$	(423	)	$	2,037	$	2,460	$	(72	)	$	2,388
Customer relationships	520		(125		)	395		520		(21		)	499
Domain names	50		(12		)	38		50		(2		)	48
Non-compete agreements	140		(57		)	83		140		(10		)	130
Total	$	3,170	$	(617	)	$	2,553	$	3,170	$	(105	)	$	3,065

Schedule of Expected Future Amortization Expense of Intangible Assets

As of December 31, 2014, the expected future amortization expense for intangible assets was as follows (in thousands):



Period	Expected Future Amortization Expense
2015	$	512
2016	503
2017	465
2018	442
2019	351
2020	280
Total	$	2,553

Long-Term Debt (Tables)

12 Months Ended

Dec. 31, 2014

Debt Disclosure [Abstract]

Schedule of Debt

As of December 31, 2014 and December 31, 2013, the Company’s outstanding debt is summarized as follows (in thousands):



	December 31,
	2014			2013
Term loan under 2014 Loan and Security Agreement	$	20,000		$	—
Term loan under 2013 Loan and Security Agreement	4,500			5,000
Promissory note to USAC	2,640			3,695
Revolving line of credit, non-current	12,500			12,500
Total debt	39,640			21,195
Less discount	(1,216		)	(78		)
Total debt, net carrying value	$	38,424		$	21,117
Less current portion of debt	(3,146		)	(1,522		)
Total debt, less current portion	35,278			19,595

Schedule of Maturities of Debt

Maturities of the Company’s outstanding debt as of December 31, 2014 are as follows (in thousands):



Period	Amount to Mature
2015	$	3,180
2016	19,507
2017	4,620
2018	4,000
2019	8,333
Total	$	39,640

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6479336&loc=d3e64711-112823

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=34725769&loc=d3e28878-108400

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21538-112644

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21506-112644

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=6451184&loc=d3e28541-108399

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6451184&loc=d3e28551-108399

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21521-112644

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 22
-Article 5

+ Details

Stockholders' Equity (Deficit) (Tables)

12 Months Ended

Dec. 31, 2014

Equity [Abstract]

Schedule of Warrant Disclosures

As of December 31, 2014, the Company had outstanding warrants to purchase shares of common stock as follows (in thousands, except per share data):



Expiration Date	Exercise Price		Warrants Outstanding at December 31, 2014
February 2020	$	0.65	131
June 2020	$	0.65	38
October 2023	$	5.76	13
February 2024	$	10.12	178
Total			360

The table below is a summary of the Company’s warrant activity during the year ended December 31, 2014 (in thousands, except per share data).



	Series A-2 Convertible Preferred Stock Warrant					Series D-2 Convertible Preferred Stock Warrant				Common Stock Warrant
	(1)					(1)
	Shares			Weighted Average Exercise Price		Shares		Weighted Average Exercise Price		Shares			Weighted Average Exercise Price
Outstanding as of December 31, 2013	1,511			$	0.16	52		$	1.44	—			$	—
Issued	—			—		—		—		178		(2)	10.12
Exercised	(176	)	(3)	0.16		—		—		(165	)	(4)	0.65
Converted into common stock warrant upon IPO (5)	(1,335	)		0.16		(52	)	1.44		347			0.84
Outstanding as of December 31, 2014	—			$	—	—		$	—	360			$	5.59

(1) Share numbers and exercise prices of the convertible preferred stock warrants are on a pre-reverse split basis.

Schedule of Valuation Assumptions, Warrants



	IPO Date April 3, 2014			December 31, 2013
Fair value of Series A-2 preferred stock	$	1.75	(1)	$	2.69
Fair value of Series D-2 preferred stock	$	1.75	(1)	$	2.81
Fair value of common stock	$	7.00	(1)	*
Risk-free interest rate	0.13% to 2.73%			0.33% to 2.60%
Expected life	Remaining contractual life			Remaining contractual life
Expected dividends	—			—
Volatility	40% - 50%			45 %


(1) Fair value of the underlying stock is based on the Company's IPO price of $7.00 per share calculated on a pre-reverse split basis for preferred stock and post-reverse split basis for common stock.
* There were no liability-classified common stock warrants at December 31, 2013.

Schedule of Common Stock Reserved for Future Issuance

As of December 31, 2014, shares of common stock reserved for future issuance related to outstanding equity awards, warrants, and employee equity incentive plans were as follows (in thousands):



		December 31, 2014
Stock options outstanding		7,164
Restricted stock units outstanding		1,370
Shares available for future grant under 2014 Plan		3,394
Shares available for future issuance under ESPP		724
Common stock warrants outstanding		360
Total shares of common stock reserved		13,012

Schedule of Stock Option Activities

A summary of the Company’s stock option activity during the year ended December 31, 2014 is as follows (in thousands, except years and per share data):



	Number of Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)	Aggregate Intrinsic Value (1)
Outstanding as of December 31, 2013	7,633		$	3.30
Options granted	1,405		6.43
Options exercised	(1,394	)	0.81
Options forfeited or expired	(480	)	4.08
Outstanding as of December 31, 2014	7,164		$	4.34	7.4	$	11,758
Vested and expected to vest as of December 31, 2014	6,911		4.25		7.3	11,700
Exercisable as of December 31, 2014	3,582		2.27		5.9	10,374

(1) The aggregate intrinsic value amounts are computed based on the difference between the exercise price of the stock options and the fair market value of the Company’s common stock of $4.48 as of December 31, 2014 for all in-the-money stock options outstanding.

Following is additional information pertaining to the Company’s stock option activities (in thousands):



	Year Ended December 31,
	2014		2013		2012
Weighted-average grant date fair value per share of options granted	$	3.42	$	4.19	$	1.23
Grant-date fair value of options vested	3,847		1,417		321
Intrinsic value of options exercised ⁽¹⁾	9,808		2,145		550
Proceeds received from options exercised	1,127		702		120

(1) Intrinsic value of options exercised is the difference between the fair value of the Company’s common stock at the time of exercise and the exercise price paid.

Schedule of Stock-based Compensation Expense

Stock-based compensation expenses for the years ended December 31, 2014, 2013 and 2012 are as follows (in thousands):



	Year Ended December 31,
	2014		2013		2012
Cost of revenue	$	542	$	194	$	60
Research and development	1,931		499		154
Sales and marketing	1,510		751		112
General and administrative	2,770		505		138
Total stock-based compensation	$	6,753	$	1,949	$	464



	Stock Option		RSU		ESPP
Unrecognized stock-based compensation expense	$	10,845	$	5,234	$	393
Weighted-average amortization period	2.9 years		3.4 years		0.4 years

Schedule of Weighted-Average Valuation Assumptions, Stock Option and ESPP

The weighted-average assumptions used to value stock options and purchase rights under the ESPP granted during the years ended December 31, 2014, 2013 and 2012 were as follows:



Stock Options	Year Ended December 31,
	2014	2013	2012
Expected term (years)	6.1	6.0	6.1
Volatility	55%	60%	60%
Risk-free interest rate	1.8%	1.5%	1.0%
Dividend yield	—	—	—



ESPP	Granted In
	April 2014	November 2014
Expected term (years)	0.8	0.5
Volatility	39%	56%
Risk-free interest rate	0.1%	0.1%
Dividend yield	—	—

Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block]

A summary of the RSU activity during the year ended December 31, 2014 is as follows (in thousands, except years and per share data):



	Number of Shares		Weighted Average Grant Date Fair Value Per Share
Outstanding as of December 31, 2013	—		$	—
RSUs granted	1,399		5.23
RSUs vested and released	(15	)	6.33
RSUs forfeited	(14	)	5.59
Outstanding as of December 31, 2014	1,370		$	5.21

- Definition

Tabular disclosure of warrants or rights issued. Warrants and rights outstanding are derivative securities that give the holder the right to purchase securities (usually equity) from the issuer at a specific price within a certain time frame. Warrants are often included in a new debt issue to entice investors by a higher return potential. The main difference between warrants and call options is that warrants are issued and guaranteed by the company, whereas options are exchange instruments and are not issued by the company. Also, the lifetime of a warrant is often measured in years, while the lifetime of a typical option is measured in months. Disclose the title of issue of securities called for by warrants and rights outstanding, the aggregate amount of securities called for by warrants and rights outstanding, the date from which the warrants or rights are exercisable, and the price at which the warrant or right is exercisable.

+ References + Details

Net Loss Per Share (Tables)

12 Months Ended

Dec. 31, 2014

Earnings Per Share [Abstract]

Basic and Diluted Net Loss Per Share

The following table presents the calculation of basic and diluted net loss per share (in thousands, except per share data).



	Year Ended December 31,
	2014			2013			2012
Net loss	$	(37,786	)	$	(31,314	)	$	(19,334	)
Weighted-average shares used in computing basic and diluted net loss per share	37,604			4,006			3,321
Basic and diluted net loss per share	$	(1.00	)	$	(7.82	)	$	(5.82	)

Schedule of Antidilutive Securities Excluded from Computation of Net Loss Per Share



	December 31,
	2014	2013	2012
Convertible preferred stock (on an as converted post reverse stock split basis)	—	30,554	26,737
Stock options	7,164	7,633	5,534
Restricted stock units	1,370	—	—
ESPP	192	—	—
Common stock warrants	360	—	—
Convertible preferred stock warrants (on an as converted post reverse stock split basis)	—	391	378
Common stock subject to repurchase or forfeiture	59	134	—
Total	9,145	38,712	32,649

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

Income Tax Disclosure [Abstract]

Schedule of Components of Loss before Provision for Income Taxes

The following table presents domestic and foreign components of loss before provision for income taxes for the periods presented (in thousands):



	Year Ended December 31,
	2014			2013			2012
Domestic	$	(37,657	)	$	(31,628	)	$	(19,493	)
Foreign	(44		)	384			221
Loss before provision for income taxes	$	(37,701	)	$	(31,244	)	$	(19,272	)

Schedule of Components of the Provision for Income Taxes

The components of the provision for income taxes are as follows (in thousands):



	Year Ended December 31,
	2014		2013		2012
Current:
U.S. State	$	12	$	9	$	8
Foreign	73		61		54
Total provision for income taxes	$	85	$	70	$	62

Schedule of Effective Income Tax Amount Reconciliation



	Year Ended December 31,
	2014			2013			2012
Federal tax at statutory rate	$	(12,818	)	$	(10,623	)	$	(6,552	)
U.S. state income taxes, net of federal benefit	(1,098		)	(786		)	(191		)
Non-deductible expenses	420			1,383			670
Research and development credit	(455		)	(339		)	(56		)
Stock-based compensation	746			444			126
Other	(72		)	(586		)	(58		)
Change in valuation allowance	13,362			10,577			6,123
Total provision for income taxes	$	85		$	70		$	62

Schedule of Components of the Deferred Tax Assets and Liabilities

The following table presents the significant components of the Company’s deferred tax assets and liabilities for the periods presented (in thousands):



	December 31,
	2014			2013
Deferred tax assets:
Net operating loss and credit carryforwards	$	39,211		$	26,076
Accrued liabilities	4,308			4,690
Allowance for doubtful accounts	256			98
Compensation accruals	626			439
Intangibles	23			27
Gross deferred tax assets	44,424			31,330
Valuation allowance	(43,203		)	(29,841		)
Net deferred tax assets	1,221			1,489
Deferred tax liability:
Property and equipment	(278		)	(370		)
Amortized intangibles	(943		)	(1,119		)
Gross deferred tax liability	(1,221		)	(1,489		)
Net deferred taxes	$	—		$	—

Reconciliation of Unrecognized Tax Benefits



	Year Ended December 31,
	2014			2013			2012
Unrecognized benefit — beginning of period	$	1,455		$	1,075		$	994
Gross increases — current year tax positions	532			382			91
Gross decreases — prior year tax positions	(12		)	(2		)	(10		)
Unrecognized benefit — end of period	$	1,975		$	1,455		$	1,075

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2014

Commitments and Contingencies Disclosure [Abstract]

Schedule of Future Minimum Lease Payments

As of December 31, 2014, approximate remaining future minimum lease payments under non-cancelable leases are as follows (in thousands):



Year ending December 31,	Capital Leases			Operating Leases
2015	$	5,694		$	2,147
2016	3,765			2,043
2017	1,408			1,877
2018	85			304
Total future minimum lease payment	$	10,952		$	6,371
Less — amount representing interest	(1,680		)
Present value of total capital lease obligation	$	9,272
Capital lease obligation — current portion	4,849
Capital lease obligation — net of current portion	4,423

Schedule of Future Minimum Payments under Hosting and Telecommunication Usage Service Agreements

As of December 31, 2014, future minimum payments under these arrangements are as follows (in thousands):



Year ending December 31,	Hosting Services		Telecommunication Usage Services
2015	$	1,583	$	3,184
2016	1,446		1,218
2017	724		82
Total future minimum lease payment	$	3,753	$	4,484

Geographical Information (Tables)

12 Months Ended

Dec. 31, 2014

Segment Reporting [Abstract]

Schedule of Revenues and Property and Equipment by Geographic Region

The following table is a summary of revenues by geographic region based on client billing address and has been estimated based on the amounts billed to clients during the periods (in thousands).



	Year Ended December 31,
	2014		2013		2012
United States	$	95,345	$	75,374	$	57,185
International	7,757		8,758		6,637
Total revenue	$	103,102	$	84,132	$	63,822

The following table summarizes total property and equipment, net in the respective locations (in thousands).



	December 31,
	2014		2013
United States	$	10,625	$	11,079
International	1,946		528
Property and equipment, net	$	12,571	$	11,607

Selected Quarterly Financial Data (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2014

Quarterly Financial Information Disclosure [Abstract]

Schedule of Quarterly Financial Information [Table Text Block]

Selected quarterly financial information for 2014 and 2013 is as follows:



	Quarter Ended
	Dec. 31, 2014 (1)			Sept. 30, 2014 (2)			Jun. 30, 2014 (3)			Mar. 31, 2014			Dec. 31, 2013			Sept. 30, 2013			Jun. 30, 2013			Mar. 31, 2013

	(unaudited, in thousands, except per share data)
Revenue	$	28,274		$	25,869		$	24,685		$	24,274		$	23,643		$	21,091		$	20,283		$	19,115
Cost of revenue ⁽⁴⁾⁽⁵⁾	14,540			13,504			13,469			13,148			12,646			12,265			12,215			11,681
Gross profit	13,734			12,365			11,216			11,126			10,997			8,826			8,068			7,434
Operating expenses:
Research and development ⁽⁴⁾⁽⁵⁾	5,828			5,503			5,554			5,225			4,850			4,419			4,106			4,154
Sales and marketing ⁽⁴⁾⁽⁵⁾	9,453			9,296			9,674			9,022			7,727			6,964			7,227			6,147
General and administrative ⁽⁴⁾⁽⁵⁾	6,763			7,967			3,515			6,171			5,953			4,223			4,052			3,825
Total operating expenses	22,044			22,766			18,743			20,418			18,530			15,606			15,385			14,126
Loss from operations	(8,310		)	(10,401		)	(7,527		)	(9,292		)	(7,533		)	(6,780		)	(7,317		)	(6,692		)
Other income (expense), net:
Change in fair value of convertible preferred and common stock warrant liabilities	—			—			—			1,745			(694		)	(622		)	(785		)	230
Interest expense	(1,175		)	(1,116		)	(1,092		)	(778		)	(414		)	(273		)	(215		)	(178		)
Interest income and other	146			95			(28		)	32			10			(15		)	32			2
Total other income (expense), net	(1,029		)	(1,021		)	(1,120		)	999			(1,098		)	(910		)	(968		)	54
Loss before provision for income taxes	(9,339		)	(11,422		)	(8,647		)	(8,293		)	(8,631		)	(7,690		)	(8,285		)	(6,638		)
Provision for income taxes	33			13			12			27			1			45			5			19
Net loss	$	(9,372	)	$	(11,435	)	$	(8,659	)	$	(8,320	)	$	(8,632	)	$	(7,735	)	$	(8,290	)	$	(6,657	)
Net loss per share:
Basic and diluted	$	(0.19	)	$	(0.24	)	$	(0.18	)	$	(1.48	)	$	(1.72	)	$	(2.05	)	$	(2.25	)	$	(1.88	)
Shares used in computing net loss per share:
Basic and diluted	49,003			48,310			46,898			5,608			5,013			3,779			3,684			3,536

(2) General and administrative included a $2.0 million charge for an expected settlement with the FCC Enforcement Bureau. See Note 11.

(3) General and administrative included a $2.8 million credit recorded as a result of a favorable ruling from a specific state's revenue authority. See Note 11.

(4) Includes stock-based compensation as follows:



	Quarter Ended
	Dec. 31, 2014		Sept. 30, 2014		Jun. 30, 2014		Mar. 31, 2014		Dec. 31, 2013		Sept. 30, 2013		Jun. 30, 2013		Mar. 31, 2013

	(unaudited, in thousands)
Cost of revenue	$	176	$	158	$	121	$	87	$	67	$	51	$	44	$	32
Research and development	527		583		471		350		261		136		49		53
Sales and marketing	455		361		368		326		330		182		134		105
General and administrative	799		775		763		433		265		89		77		74
Total stock-based compensation	$	1,957	$	1,877	$	1,723	$	1,196	$	923	$	458	$	304	$	264

(5) Includes depreciation and amortization expenses as follows:



	Quarter Ended
	Dec. 31, 2014		Sept. 30, 2014		Jun. 30, 2014		Mar. 31, 2014		Dec. 31, 2013		Sept. 30, 2013		Jun. 30, 2013		Mar. 31, 2013

	(unaudited, in thousands)
Cost of revenue	$	1,291	$	1,272	$	1,373	$	1,202	$	1,200	$	900	$	752	$	857
Research and development	75		58		50		46		59		57		54		44
Sales and marketing	50		50		48		48		41		17		14		11
General and administrative	189		187		228		296		213		89		61		46
Total depreciation and amortization	$	1,605	$	1,567	$	1,699	$	1,592	$	1,513	$	1,063	$	881	$	958

Description of Business and Summary of Significant Accounting Policies - Initial Public Offering (Details) $ / shares in Units, $ in Thousands			6 Months Ended	12 Months Ended			15 Months Ended	21 Months Ended
	Apr. 22, 2014 USD ($) shares	Apr. 03, 2014 $ / shares shares	Jun. 30, 2014 USD ($)	Dec. 31, 2014 USD ($) shares	Dec. 31, 2013 USD ($) shares	Dec. 31, 2012 USD ($)	Dec. 31, 2013 USD ($) shares	Jun. 30, 2014 USD ($)	Apr. 09, 2014 shares
Initial Public Offering
Common Stock, shares issued \| shares				49,322,498	5,494,000		5,494,000
IPO price per share \| $ / shares		$ 7.00
Payments for offering expenses				$ 0	$ 821	$ 12
IPO
Initial Public Offering
IPO price per share \| $ / shares		$ 7.00
Aggregate proceeds from IPO after deducting underwriters' discounts and commissions	$ 74,900
Underwriters' discounts and commissions	$ 5,600
Offering expenses								$ 4,200
Payments for offering expenses			$ 3,400				$ 800
Convertible preferred stock, conversion ratio to common stock \| shares		1
Common Stock \| IPO
Initial Public Offering
Common Stock, shares issued \| shares									10,000,000
IPO price per share \| $ / shares		$ 7.00
Shares sold to underwriters \| shares	1,500,000
Reverse stock split, conversion ratio		0.25

Description of Business and Summary of Significant Accounting Policies - Immaterial Out of Period Adjustments (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Accrued federal fees	$ 7,215	$ 4,206
Period 2008 to Q3 2014 \| Cost of Revenue
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Out of Period Adjustment	400
Period 2008 to Q3 2014 \| General and Administrative
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Out of Period Adjustment	300
Period 2008 to 2013 \| Cost of Revenue
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Out of Period Adjustment	200
Period 2008 to 2013 \| General and Administrative
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Out of Period Adjustment	200
USF Obligations
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Accrued federal fees	5,200	4,200
USF Obligations \| Periods Prior To 2008
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Accrued federal fees	$ 800	$ 800

Description of Business and Summary of Significant Accounting Policies - Concentration Risks (Details) - USD ($) $ in Millions	Dec. 31, 2014	Dec. 31, 2013
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Cash, uninsured amount	$ 58.0	$ 16.6

Description of Business and Summary of Significant Accounting Policies - Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Allowance for Doubtful Accounts Receivable [Roll Forward]
Balance, beginning of period	$ 42	$ 54	$ 23
Add: bad debt expense	76	89	214
Less: write-offs, net of recoveries	(53)	(101)	(183)
Balance, end of period	$ 65	$ 42	$ 54

Description of Business and Summary of Significant Accounting Policies - Property and Equipment, Net (Details)	12 Months Ended
	Dec. 31, 2014
Computer and Network Equipment
Property, Plant and Equipment [Line Items]
Useful life, in years	3 years
Computer Software
Property, Plant and Equipment [Line Items]
Useful life, in years	3 years
Development Costs \| Minimum [Member]
Property, Plant and Equipment [Line Items]
Useful life, in years	1 year
Development Costs \| Maximum [Member]
Property, Plant and Equipment [Line Items]
Useful life, in years	5 years
Furniture and Fixtures
Property, Plant and Equipment [Line Items]
Useful life, in years	7 years
Leasehold Improvements
Property, Plant and Equipment [Line Items]
Useful life	Shorter of useful life or lease term

Description of Business and Summary of Significant Accounting Policies - Goodwill and Intangible Assets (Details)	12 Months Ended
	Dec. 31, 2014
Minimum [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-live intangible asset, useful life	3 years
Maximum [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-live intangible asset, useful life	7 years

Description of Business and Summary of Significant Accounting Policies - Revenue Recognition (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Accounting Policies [Abstract]
USF contributions and other regulatory costs	$ 4.4	$ 3.9	$ 3.2

Description of Business and Summary of Significant Accounting Policies - Advertising Costs (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Accounting Policies [Abstract]
Advertising costs	$ 8.7	$ 7.3	$ 4.7

Description of Business and Summary of Significant Accounting Policies - Commissions (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Accounting Policies [Abstract]
Commission expense	$ 6.4	$ 4.8	$ 3.5

Acquisition of Face It, Corp. (Details) - USD ($)
$ in Thousands

3 Months Ended

12 Months Ended

Oct. 18, 2013

Dec. 31, 2014

Sep. 30, 2014

Jun. 30, 2014

Mar. 31, 2014

Dec. 31, 2013

Sep. 30, 2013

Jun. 30, 2013

Mar. 31, 2013

Dec. 31, 2014

Dec. 31, 2013

Dec. 31, 2012

Business Acquisition [Line Items]

Revenue

$ 28,274

^[1]

$ 25,869

^[2]

$ 24,685

^[3]

$ 24,274

$ 23,643

$ 21,091

$ 20,283

$ 19,115

$ 103,102

$ 84,132

$ 63,822

Operating expenses

$ 22,044

$ 22,766

$ 18,743

$ 20,418

$ 18,530

$ 15,606

$ 15,385

$ 14,126

$ 83,971

63,647

$ 41,571

Face It, Corp.

Business Acquisition [Line Items]

Consideration transferred

$ 15,000

Cash paid for acquisition

$ 3,000

Revenue

Operating expenses

800

Acquisition related costs

$ 600

Face It, Corp. | Restricted Common Stock

Business Acquisition [Line Items]

RSUs granted

118,577

Face It, Corp. | Equity Option

Business Acquisition [Line Items]

Shares issued in acquisition (in shares)

22,000

Value of shares issued in acquisition

$ 100

Face It, Corp. | Equity Option | Allocated to Purchase Price

Business Acquisition [Line Items]

Value of shares issued in acquisition

Face It, Corp. | Equity Option | Allocated to Post Combination and Stock Based Compensation

Business Acquisition [Line Items]

Value of shares issued in acquisition

$ 100

Face It, Corp. | Common Stock

Business Acquisition [Line Items]

Shares issued in acquisition (in shares)

1,423,000

Value of shares issued in acquisition

$ 12,100

Face It, Corp. | Common Stock | Held in Escrow

Business Acquisition [Line Items]

Shares issued in acquisition (in shares)

303,000

[1]	Cost of revenue and general and administrative included a $0.4 million and a $0.3 million out-of-period adjustments, respectively, for 2008 through the third quarter of 2014. For each of these adjustments, $0.2 million is related to the period 2008 through 2013. See Note 1.
[2]	General and administrative included a $2.0 million charge for an expected settlement with the FCC Enforcement Bureau. See Note 11.
[3]	General and administrative included a $2.8 million credit recorded as a result of a favorable ruling from a specific state's revenue authority. See Note 11.

Acquisition of Face it, Corp. - Schedule of Fair Value of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands	Dec. 31, 2014	Dec. 31, 2013	Oct. 18, 2013
Business Acquisition [Line Items]
Goodwill	$ 11,798	$ 11,798
Face It, Corp.
Business Acquisition [Line Items]
Tangible assets acquired			$ 177
Fair value of intangible assets acquired			3,200
Goodwill			11,798
Current liabilities			(113)
Total purchase price			15,032
Face It, Corp. \| Developed Technology
Business Acquisition [Line Items]
Fair value of intangible assets acquired			2,460
Face It, Corp. \| Customer Relationships
Business Acquisition [Line Items]
Fair value of intangible assets acquired			520
Face It, Corp. \| Domain Names
Business Acquisition [Line Items]
Fair value of intangible assets acquired			50
Face It, Corp. \| Noncompete Agreements
Business Acquisition [Line Items]
Fair value of intangible assets acquired			$ 140

Acquisition of Face It, Corp. - Schedule of Estimated Useful Lives and Valuation Techniques (Details)	12 Months Ended
	Dec. 31, 2014
Developed Technology
Property, Plant and Equipment [Line Items]
Finite-live intangible asset, useful life	7 years
Customer Relationships
Property, Plant and Equipment [Line Items]
Finite-live intangible asset, useful life	5 years
Domain Names
Property, Plant and Equipment [Line Items]
Finite-live intangible asset, useful life	5 years
Noncompete Agreements
Property, Plant and Equipment [Line Items]
Finite-live intangible asset, useful life	3 years

Acquisition of Face It, Corp. - Schedule of Pro Forma Financial Information (Details) - Face It, Corp. - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Business Acquisition [Line Items]
Revenue	$ 84,260	$ 64,187
Net loss	$ (32,787)	$ (23,151)

Fair Value Measurements Fair Value Measurements (Details) $ in Millions	Oct. 18, 2013 USD ($)
Face It, Corp.
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of intangible assets acquired	$ 3.2

Fair Value Measurements - Schedule of Assets and Liabilities Carried at Fair Value (Details) - USD ($) $ in Thousands	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Liabilities
Convertible preferred stock warrant liability	$ 0	$ 3,935	$ 1,979	$ 305
Warrant Liability \| Convertible Preferred Stock
Liabilities
Convertible preferred stock warrant liability		3,935
Warrant Liability \| Convertible Preferred Stock \| Level 1
Liabilities
Convertible preferred stock warrant liability		0
Warrant Liability \| Convertible Preferred Stock \| Level 3
Liabilities
Convertible preferred stock warrant liability		3,935
U.S. Treasury bills
Short-term investments:
U.S. Treasury bills	20,000
U.S. Treasury bills \| Level 1
Short-term investments:
U.S. Treasury bills	$ 20,000
Money Market Funds
Cash equivalents:
Money market funds		738
Money Market Funds \| Level 1
Cash equivalents:
Money market funds		738
Money Market Funds \| Level 3
Cash equivalents:
Money market funds		$ 0

Fair Value Measurements - Reconciliation of Stock Warrants Measured at Fair Value (Details) - USD ($)
$ in Thousands

1 Months Ended

3 Months Ended

12 Months Ended

Apr. 03, 2014

Mar. 31, 2014

Dec. 31, 2014

Sep. 30, 2014

^[2]

Jun. 30, 2014

^[3]

Mar. 31, 2014

Dec. 31, 2013

Sep. 30, 2013

Jun. 30, 2013

Mar. 31, 2013

Dec. 31, 2014

Dec. 31, 2013

Dec. 31, 2012

Class of Warrant or Right, Fair Value [Roll Forward]

Balance as of beginning of period

$ 3,935

$ 1,979

$ 3,935

$ 1,979

$ 305

Changes in fair value of warrants

$ 0

^[1]

$ 0

$ (1,745)

$ 694

$ 622

$ 785

$ (230)

(1,745)

1,871

1,674

Reclassified to additional paid-in capital

$ (2,600)

(2,647)

Balance as of end of period

$ 0

$ 3,935

3,935

1,979

Convertible Preferred Stock

Class of Warrant or Right, Fair Value [Roll Forward]

Changes in fair value of warrants

(1,233)

1,871

1,674

Series D-2 Convertible Preferred Stock

Class of Warrant or Right, Fair Value [Roll Forward]

Issuance of warrants in connection with debt agreement

Series A-2 Convertible Preferred Stock

Class of Warrant or Right, Fair Value [Roll Forward]

Exercise of Series A-2 convertible preferred stock warrants

(509)

Reclassified to additional paid-in capital

$ (500)

Common Stock

Class of Warrant or Right, Fair Value [Roll Forward]

Changes in fair value of warrants

(512)

Issuance of warrants in connection with debt agreement

$ 966

$ 0

[1]	Cost of revenue and general and administrative included a $0.4 million and a $0.3 million out-of-period adjustments, respectively, for 2008 through the third quarter of 2014. For each of these adjustments, $0.2 million is related to the period 2008 through 2013. See Note 1.
[2]	General and administrative included a $2.0 million charge for an expected settlement with the FCC Enforcement Bureau. See Note 11.
[3]	General and administrative included a $2.8 million credit recorded as a result of a favorable ruling from a specific state's revenue authority. See Note 11.

Cash, Cash Equivalents and Short-Term Investments (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Cash and Cash Equivalents
Shot-term investments remaining maturity	43 days
Letter Of Credit Related To Lease Obligation \| Other Noncurrent Assets
Cash and Cash Equivalents
Restricted cash	$ 0.7	$ 0.7
Letter Of Credit Related To Insurance Policy \| Other Noncurrent Assets
Cash and Cash Equivalents
Restricted cash	$ 0.1	$ 0.1

Cash, Cash Equivalents and Short-Term Investments - Cash and Cash Equivalents (Details) - USD ($) $ in Thousands	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Cash and Cash Equivalents [Abstract]
Cash	$ 58,289	$ 17,010
Money market funds	0	738
Total cash and cash equivalents	$ 58,289	$ 17,748	$ 5,961	$ 5,378

Cash, Cash Equivalents and Short-Term Investments - Short-Term Investments (Details) - USD ($) $ in Thousands	Dec. 31, 2014	Dec. 31, 2013
Schedule of Short-Term Investments
Aggregate Fair Value	$ 20,000	$ 0
U.S. Treasury bills
Schedule of Short-Term Investments
Amortized Cost	20,000
Gross Unrealized Gains	0
Gross Unrealized Losses	0
Aggregate Fair Value	$ 20,000

Financial Statement Components (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Financial Statement Components [Abstract]
Depreciation	$ 6.0	$ 4.3	$ 2.6

Financial Statement Components - Schedule of Accounts Receivable (Details) - USD ($) $ in Thousands	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Accounts Receivable
Allowance for doubtful accounts	$ (65)	$ (42)	$ (54)	$ (23)
Accounts receivable, net	8,335	6,970
Billed Revenues
Accounts Receivable
Trade accounts receivable	7,482	6,430
Unbilled Revenues, net of advance client deposits
Accounts Receivable
Trade accounts receivable	$ 918	$ 582

Financial Statement Components - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2014	Dec. 31, 2013
Property, Plant and Equipment [Line Items]
Property and equipment	$ 28,197	$ 22,017
Accumulated depreciation and amortization	(15,626)	(10,410)
Property and equipment, net	12,571	11,607
Computer and Network Equipment
Property, Plant and Equipment [Line Items]
Property and equipment	24,292	18,851
Computer Software
Property, Plant and Equipment [Line Items]
Property and equipment	2,264	1,550
Development Costs
Property, Plant and Equipment [Line Items]
Property and equipment	0	285
Furniture and Fixtures
Property, Plant and Equipment [Line Items]
Property and equipment	1,030	792
Leasehold Improvements
Property, Plant and Equipment [Line Items]
Property and equipment	$ 611	$ 539

Financial Statement Components - Schedule of Capital Leased Property and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2014	Dec. 31, 2013
Financial Statement Components [Abstract]
Gross	$ 21,025	$ 15,123
Less: accumulated depreciation and amortization	(10,609)	(5,591)
Total	$ 10,416	$ 9,532

Financial Statement Components - Schedule of Accrued and Other Current Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2014	Dec. 31, 2013
Financial Statement Components [Abstract]
Accrued expenses	$ 2,240	$ 2,453
Accrued compensation and benefits	5,078	3,476
Accrued and other current liabilities	$ 7,318	$ 5,929

Goodwill and Intangible Assets (Details) - USD ($)	12 Months Ended
Goodwill and Intangible Assets (Details) - USD ($)	Dec. 31, 2014	Dec. 31, 2013
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill impairment, accumulated	$ 0	$ 0
Amortization of Intangible Assets	500,000	100,000
Impairment of intangible assets	$ 0	$ 0

Goodwill and Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2014	Dec. 31, 2013
Acquired Finite-Lived Intangible Assets
Gross Carrying Amount	$ 3,170	$ 3,170
Accumulated Amortization	(617)	(105)
Total	2,553	3,065
Developed Technology
Acquired Finite-Lived Intangible Assets
Gross Carrying Amount	2,460	2,460
Accumulated Amortization	(423)	(72)
Total	2,037	2,388
Customer Relationships
Acquired Finite-Lived Intangible Assets
Gross Carrying Amount	520	520
Accumulated Amortization	(125)	(21)
Total	395	499
Domain Names
Acquired Finite-Lived Intangible Assets
Gross Carrying Amount	50	50
Accumulated Amortization	(12)	(2)
Total	38	48
Noncompete Agreements
Acquired Finite-Lived Intangible Assets
Gross Carrying Amount	140	140
Accumulated Amortization	(57)	(10)
Total	$ 83	$ 130

Goodwill and Intangible Assets - Schedule of Expected Future Amortization Expense of Intangible Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2014	Dec. 31, 2013
Goodwill and Intangible Assets Disclosure [Abstract]
2015	$ 512
2016	503
2017	465
2018	442
2019	351
2020	280
Total	$ 2,553	$ 3,065

Long-Term Debt (Details)	1 Months Ended					12 Months Ended
Long-Term Debt (Details)	Dec. 31, 2014 USD ($) shares	Feb. 28, 2014 USD ($) lender $ / shares shares	Oct. 31, 2013 USD ($) $ / shares shares	Jul. 31, 2013 USD ($) installment	Mar. 31, 2013	Dec. 31, 2014 USD ($) shares	Sep. 30, 2014 USD ($)	Apr. 03, 2014 $ / shares shares	Dec. 31, 2013 USD ($) shares
Debt Instrument
Long-term Debt, Gross	$ 39,640,000					$ 39,640,000			$ 21,195,000
Discount on debt	$ 1,216,000					$ 1,216,000			78,000
Warrants outstanding upon IPO \| shares	360,000					360,000
2013 Loan and Security Agreement \| Revolving Credit Facility
Debt Instrument
Credit facility, maximum borrowing capacity	$ 20,000,000.0					$ 20,000,000.0	$ 12,500,000.0
Interest rate, decrease (as a percentage)	0.75%
Covenant terms, minimum required cash on deposit at lender	$ 7,500,000.0					7,500,000.0	$ 2,000,000.0
Balance outstanding allowed, description					Under the terms of the amended revolving line of credit ("Revolving Credit Facility"), the balance outstanding cannot exceed the lesser of (i) $20.0 million or (ii) an amount equal to the Company’s monthly recurring revenue for the three months prior multiplied by the average Dollar-Based Retention Rate over the prior twelve months, less the amount accrued for the Company’s USF obligation (accrued federal fees).
Credit agreement, amount outstanding	12,500,000					12,500,000
Credit facility, remaining borrowing capacity	7,500,000					$ 7,500,000
2013 Loan and Security Agreement \| Revolving Credit Facility \| Prime Rate
Debt Instrument
Debt instrument, basis spread (as a percentage)						0.50%
2013 Loan and Security Agreement \| Term Loan
Debt Instrument
Credit agreement, amount outstanding			$ 5,000,000
2013 Loan and Security Agreement \| Term Loan \| Prime Rate
Debt Instrument
Debt instrument, basis spread (as a percentage)			1.50%
2014 Loan and Security Agreement \| Term Loan
Debt Instrument
Credit facility, maximum borrowing capacity		$ 30,000,000.0
Credit facility, remaining borrowing capacity	10,000,000.0					$ 10,000,000.0
Number of lenders \| lender		2
Credit facility, minimum incremental borrowing amount	$ 1,000,000.0					$ 1,000,000.0
Term loan, minimum interest rate		10.00%
Debt, payment terms		Monthly principal payments are due beginning in February 2016 based on 1/60th of the outstanding balance at that time and will continue until all remaining principal outstanding under the term loan becomes due and payable in February 2019.
2014 Loan and Security Agreement \| Term Loan \| London Interbank Offered Rate (LIBOR)
Debt Instrument
Debt instrument, basis spread (as a percentage)		9.00%
Tranche One \| Term Loan
Debt Instrument
Credit facility, maximum borrowing capacity		$ 20,000,000.0
Credit agreement, amount outstanding		20,000,000.0
Discount on debt		1,000,000
Payments of debt issuance costs		$ 400,000
Promissory Note
Debt Instrument
Promissory note, carrying value									$ 3,700,000
Series D-2 Convertible Preferred Stock Warrant
Debt Instrument
Warrants outstanding upon IPO \| shares	0					0			52,000
Series D-2 Convertible Preferred Stock Warrant \| 2013 Loan and Security Agreement \| Term Loan
Debt Instrument
Exercise Price \| $ / shares								$ 5.76
Discount on debt			$ 100,000
Warrants outstanding upon IPO \| shares								13,013
Common Stock Warrant
Debt Instrument
Warrants outstanding upon IPO \| shares	360,000					360,000			0
Common Stock Warrant \| 2014 Loan and Security Agreement \| Term Loan
Debt Instrument
Warrants issued \| shares		177,865
Exercise Price \| $ / shares		$ 10.12
Class of warrant or right, vesting period (in years)		10 years
Warrants unvested, shares \| shares	59,288					59,288
Common Stock Warrant \| Tranche One \| Term Loan
Debt Instrument
Warrants vested, shares \| shares		118,577
Series D-2 Convertible Preferred Stock \| Series D-2 Convertible Preferred Stock Warrant \| 2013 Loan and Security Agreement \| Term Loan
Debt Instrument
Warrants issued \| shares			52,054
Exercise Price \| $ / shares			$ 1.441
Notes Payable \| 2013 Loan and Security Agreement
Debt Instrument
Long-term Debt, Gross	$ 4,500,000					$ 4,500,000			$ 5,000,000
Notes Payable \| 2014 Loan and Security Agreement
Debt Instrument
Long-term Debt, Gross	20,000,000					20,000,000			$ 0
Notes Payable \| Promissory Note
Debt Instrument
Promissory note issued				$ 4,100,000
Promissory note, stated interest rate				12.75%
Promissory note, number of monthly payments \| installment				42
USF Obligations \| Promissory Note
Debt Instrument
Promissory note issued				$ 4,100,000
Promissory note, carrying value	$ 2,600,000					$ 2,600,000

Long-Term Debt - Schedule of Debt (Details) - USD ($) $ in Thousands	Dec. 31, 2014	Dec. 31, 2013
Debt Instrument
Long-term Debt, Gross	$ 39,640	$ 21,195
Less discount	(1,216)	(78)
Total debt, net carrying value	38,424	21,117
Less current portion of debt	(3,146)	(1,522)
Total debt, less current portion	35,278	19,595
Notes Payable \| 2014 Loan and Security Agreement
Debt Instrument
Long-term Debt, Gross	20,000	0
Notes Payable \| 2013 Loan and Security Agreement
Debt Instrument
Long-term Debt, Gross	4,500	5,000
Notes Payable \| Promissory Note to USAC
Debt Instrument
Long-term Debt, Gross	2,640	3,695
Line of Credit
Debt Instrument
Long-term Debt, Gross	$ 12,500	$ 12,500

Long-Term Debt - Schedule of Maturities of Debt (Details) - USD ($) $ in Thousands	Dec. 31, 2014	Dec. 31, 2013
Debt Disclosure [Abstract]
2015	$ 3,180
2016	19,507
2017	4,620
2018	4,000
2019	8,333
Total	$ 39,640	$ 21,195

Stockholders' Equity (Deficit) - Capital Structure Narrative (Details)	Apr. 03, 2014 shares	Dec. 31, 2014 $ / shares shares	Apr. 09, 2014 shares	Apr. 08, 2014 $ / shares shares	Dec. 31, 2013 $ / shares shares
Class of Stock
Common Stock, shares authorized		450,000,000		450,000,000	200,000,000
Preferred Stock, shares authorized		5,000,000		5,000,000
Common Stock, par value \| $ / shares		$ 0.001		$ 0.001	$ 0.001
Preferred Stock, par value \| $ / shares		$ 0.001		$ 0.001
Common Stock, shares issued		49,322,498			5,494,000
Series A-2 Convertible Preferred Stock
Class of Stock
Preferred Stock, shares outstanding	75,643,683
Series B-2 Convertible Preferred Stock
Class of Stock
Preferred Stock, shares outstanding	18,565,794
Series C-2 Convertible Preferred Stock
Class of Stock
Preferred Stock, shares outstanding	12,903,226
Series D-2 Convertible Preferred Stock
Class of Stock
Preferred Stock, shares outstanding	15,269,294
Convertible Preferred Stock
Class of Stock
Preferred Stock, shares outstanding					122,216,000
Convertible preferred stock, conversion ratio	1
Convertible preferred stock, conversion ratio to common stock	30,595,477
Preferred Stock, shares authorized					125,115,000
Preferred Stock, par value \| $ / shares					$ 0.001
IPO
Class of Stock
Convertible preferred stock, conversion ratio to common stock	1
IPO \| Common Stock
Class of Stock
Reverse stock split, conversion ratio	0.25
Common Stock, shares issued			10,000,000

Stockholders' Equity (Deficit) - Common Stock Subject Forfeiture Narrative (Details) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Oct. 31, 2013	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Schedule of Restricted Stock [Line Items]
Stock-based compensation expense		$ 6,753	$ 1,949	$ 464
Restricted Common Stock \| Face It, Corp.
Schedule of Restricted Stock [Line Items]
RSUs granted	118,577
Restricted common stock, forfeiture rights lapsed, percentage	50.00%
Restricted common stock, forfeiture rights expiring two years after acquisition, percentage	50.00%
Aggregate grant date fair value	$ 1,000
Restricted common stock outstanding, shares		59,289	118,577
Requisite service period	2 years
Stock-based compensation expense		$ 700	$ 200

Stockholders' Equity (Deficit) - Warrants Outstanding (Details) shares in Thousands	Dec. 31, 2014 $ / shares shares
Class of Warrant or Right [Line Items]
Warrants outstanding	360
February 2020
Class of Warrant or Right [Line Items]
Exercise Price \| $ / shares	$ 0.65
Warrants outstanding	131
June 2020
Class of Warrant or Right [Line Items]
Exercise Price \| $ / shares	$ 0.65
Warrants outstanding	38
October 2023
Class of Warrant or Right [Line Items]
Exercise Price \| $ / shares	$ 5.76
Warrants outstanding	13
February 2024
Class of Warrant or Right [Line Items]
Exercise Price \| $ / shares	$ 10.12
Warrants outstanding	178

Stockholders' Equity (Deficit) - Warrants Activity (Details) - USD ($) $ / shares in Units, $ in Thousands		1 Months Ended		9 Months Ended	12 Months Ended
	Apr. 03, 2014	Mar. 31, 2014	Feb. 28, 2014	Dec. 31, 2014	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Shares
Ending balance				360,000	360,000
Weighted Average Exercise Price
Reclass of warrants liabilities to additional paid-in capital upon IPO	$ 2,600				$ 2,647	$ 0	$ 0
Common Stock
Weighted Average Exercise Price
New issuances, shares					11,500,000
Series A-2 Convertible Preferred Stock
Weighted Average Exercise Price
Reclass of warrants liabilities to additional paid-in capital upon IPO		$ 500
Series A-2 Convertible Preferred Stock Warrant
Shares
Beginning balance					1,511,000
Issued					0
Exercised		(175,582)			(176,000)
Converted into common stock warrant upon IPO					(1,335,000)
Ending balance				0	0	1,511,000
Weighted Average Exercise Price
Outstanding warrants exercise price, weighted-average					$ 0.16
Issued					0.00
Exercised					0.16
Converted into common stock warrant upon IPO					0.16
Outstanding warrants exercise price, weighted-average				$ 0.00	$ 0.00	$ 0.16
Series A-2 Convertible Preferred Stock Warrant \| Series A-2 Convertible Preferred Stock
Weighted Average Exercise Price
New issuances, shares		166,228
Series D-2 Convertible Preferred Stock Warrant
Shares
Beginning balance					52,000
Issued					0
Exercised					0
Converted into common stock warrant upon IPO					(52,000)
Ending balance				0	0	52,000
Weighted Average Exercise Price
Outstanding warrants exercise price, weighted-average					$ 1.44
Issued					0.00
Exercised					0.00
Converted into common stock warrant upon IPO					1.44
Outstanding warrants exercise price, weighted-average				$ 0.00	$ 0.00	$ 1.44
Common Stock Warrant
Shares
Beginning balance					0
Issued			177,865		178,000
Exercised				(165,040)	(165,000)
Common stock warrants issued from convertible preferred stock warrants upon IPO					347,000
Ending balance				360,000	360,000	0
Weighted Average Exercise Price
Outstanding warrants exercise price, weighted-average					$ 0.00
Issued					10.12
Exercised					0.65
Converted into common stock warrant upon IPO					0.84
Outstanding warrants exercise price, weighted-average				$ 5.59	$ 5.59	$ 0.00
Common Stock Warrant \| Common Stock
Weighted Average Exercise Price
Conversion of Stock, Shares Issued				161,979
Loan and Security Agreement 2014, Tranche One [Member] \| Common Stock Warrant \| Term Loan
Weighted Average Exercise Price
Warrants vested, shares			118,577

Stockholders' Equity (Deficit) - Warrant Valuation Assumptions (Details) - $ / shares

12 Months Ended

Apr. 03, 2014

Dec. 31, 2013

Dec. 31, 2014

Class of Stock

$ 4.48

$ 7.00

Class of Stock

7.00

Class of Stock

$ 7.00

Class of Stock

0.00%

45.00%

Warrants | Minimum [Member]

Class of Stock

Risk-free interest rate

0.13%

0.33%

Volatility

40.00%

Warrants | Maximum [Member]

Class of Stock

Risk-free interest rate

2.73%

2.60%

Volatility

50.00%

Warrants | Series A-2 Convertible Preferred Stock

Class of Stock

Fair value of stock

$ 1.75

^[1]

$ 2.69

Warrants | Series D-2 Convertible Preferred Stock

Class of Stock

Fair value of stock

1.75

^[1]

$ 2.81

Warrants | Common Stock

Class of Stock

Fair value of stock

^[1]

$ 7.00

[1]	Fair value of the underlying stock is based on the Company's IPO price of $7.00 per share calculated on a pre-reverse split basis for preferred stock and post-reverse split basis for common stock.

Stockholders' Equity (Deficit) - Common Stock Reserved for Future Issuance (Details) - shares	Dec. 31, 2014	Apr. 03, 2014
Class of Stock
Shares of common stock reserved for future issuance	13,012,000
2014 Equity Incentive Plan
Class of Stock
Shares of common stock reserved for future issuance	3,394,297
Employee Stock Purchase Plan
Class of Stock
Shares of common stock reserved for future issuance	723,869	880,000
Employee Stock Options
Class of Stock
Shares of common stock reserved for future issuance	7,164,000
Restricted Stock Units
Class of Stock
Shares of common stock reserved for future issuance	1,370,000
Warrants
Class of Stock
Shares of common stock reserved for future issuance	360,000

Stockholders' Equity (Deficit) - Equity Incentive Plans (Details) - shares	12 Months Ended
	Dec. 31, 2014	Jan. 01, 2015
Share-based Compensation Arrangement by Share-based Payment Award
Shares of common stock reserved for future issuance	13,012,000
Employee Stock Options
Share-based Compensation Arrangement by Share-based Payment Award
Shares of common stock reserved for future issuance	7,164,000
Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award
Shares of common stock reserved for future issuance	1,370,000
2004 Equity Incentive Plan \| Employee Stock Options
Share-based Compensation Arrangement by Share-based Payment Award
Award vesting period	4 years
Award expiration period	10 years
Expiration period, after termination of employment or relationship of consultant or director	90 days
2004 Equity Incentive Plan \| Employee Stock Options \| Tranche One
Share-based Compensation Arrangement by Share-based Payment Award
Award vesting period	12 months
Award vesting, percentage of award	25.00%
2004 Equity Incentive Plan \| Employee Stock Options \| Tranche Two
Share-based Compensation Arrangement by Share-based Payment Award
Award vesting period	36 months
Award vesting, percentage of award	75.00%
2014 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award
Shares of common stock reserved for future issuance	3,394,297
2014 Equity Incentive Plan \| Subsequent Event
Share-based Compensation Arrangement by Share-based Payment Award
Automatic annual increase in common stock reserved for issuance, percentage		5.00%
Shares of common stock reserved for future issuance, additional shares		2,466,124
2014 Equity Incentive Plan \| Employee Stock Options
Share-based Compensation Arrangement by Share-based Payment Award
Award expiration period	10 years
2014 Equity Incentive Plan \| Restricted Stock Units \| Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award
Award vesting period	1 year
2014 Equity Incentive Plan \| Restricted Stock Units \| Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award
Award vesting period	4 years
2014 Equity Incentive Plan \| Common Stock
Share-based Compensation Arrangement by Share-based Payment Award
Number of shares authorized for issuance	5,300,000

Stockholders' Equity (Deficit) - Stock Option Activities (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Number of Shares
Outstanding, beginning balance	7,633
Options granted	1,405
Options exercised	(1,394)
Options forfeited or expired	(480)
Outstanding, ending balance	7,164	7,633
Weighted Average Exercise Price
Outstanding, weighted average exercise price (in USD per share)	$ 3.30
Options granted	6.43
Options exercised	0.81
Options forfeited or expired	4.08
Outstanding, weighted average exercise price (in USD per share)	$ 4.34	$ 3.30
Weighted average remaining contractual life	7 years 4 months 13 days
Outstanding, Aggregate intrinsic value	$ 11,758
Vested and expected to vest as of December 31, 2014
Vested and expected to vest, Number of Shares	6,911
Exercisable, Number of Shares	3,582
Outstanding, Weighted Average Exercise Price	$ 4.25
Exercisable, Weighted Average Exercise Price	$ 2.27
Outstanding, Weighted Average Remaining Contractual Life	7 years 3 months 22 days
Exercisable, Weighted Average Remaining Contractual Life	5 years 10 months 13 days
Vested and expected to vest, Aggregate Intrinsic Value	$ 11,700
Exercisable, Aggregate Intrinsic Value	$ 10,374
Fair market value of common stock	$ 4.48
Weighted-average grant date fair value per share of options granted	$ 3.42	$ 4.19	$ 1.23
Grant-date fair value of options vested	$ 3,847	$ 1,417	$ 321
Intrinsic value of options exercised	9,808	2,145	550
Proceeds from exercise of common stock options	$ 1,127	$ 702	$ 120

Stockholders' Equity (Deficit) - RSU Activities (Details) - Restricted Stock Units shares in Thousands	12 Months Ended
	Dec. 31, 2014 $ / shares shares
Number of Shares
Beginning balance \| shares	0
RSUs granted \| shares	1,399
RSUs vested and released \| shares	(15)
RSUs forfeited \| shares	(14)
Ending balance \| shares	1,370
Weighted Average Grant Date Fair Value Per Share
Beginning balance \| $ / shares	$ 0.00
RSUs granted \| $ / shares	5.23
RSUs vested and released \| $ / shares	6.33
RSUs forfeited \| $ / shares	5.59
Ending balance \| $ / shares	$ 5.21

Stockholders' Equity (Deficit) - ESPP (Details) - $ / shares		12 Months Ended
	Apr. 03, 2014	Dec. 31, 2014	Jan. 01, 2015
Share-based Compensation Arrangement by Share-based Payment Award
IPO price per share	$ 7.00
Shares of common stock reserved for future issuance		13,012,000
Issuance of common stock under ESPP, shares		156,131
Sale of Stock, Price Per Share		$ 4.22
ESPP
Share-based Compensation Arrangement by Share-based Payment Award
Maximum employee subscription rate, percentage of pre-tax earnings		15.00%
Purchase price of shares, percentage of the fair market value of the Company's common stock	85.00%	85.00%
Maximum number of shares per employee per purchase period		1,500
Shares of common stock reserved for future issuance	880,000	723,869
Automatic annual increase in common stock reserved for issuance, percentage		1.00%
Maximum annual increase of shares reserved		1,000,000
ESPP \| Subsequent Event
Share-based Compensation Arrangement by Share-based Payment Award
Shares of common stock reserved for future issuance, additional shares			493,224

Stockholders' Equity (Deficit) - Stock-Based Compensation (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Stock-based Compensation Expense
Stock-based compensation expense	$ 6,753	$ 1,949	$ 464
ESPP
Stock-based Compensation Expense
Unrecognized stock-based compensation expense	$ 393
Weighted-average amortization period	4 months 15 days
Employee Stock Options
Stock-based Compensation Expense
Unrecognized stock-based compensation expense	$ 10,845
Weighted-average amortization period	2 years 10 months 28 days
Restricted Stock Units
Stock-based Compensation Expense
Unrecognized stock-based compensation expense	$ 5,234
Weighted-average amortization period	3 years 4 months 28 days
Cost of Revenue
Stock-based Compensation Expense
Stock-based compensation expense	$ 542	194	60
Research and Development
Stock-based Compensation Expense
Stock-based compensation expense	1,931	499	154
Sales and Marketing
Stock-based Compensation Expense
Stock-based compensation expense	1,510	751	112
General and Administrative
Stock-based Compensation Expense
Stock-based compensation expense	$ 2,770	$ 505	$ 138

Stockholders' Equity (Deficit) - Option and ESPP Valuation Assumptions (Details)		1 Months Ended	12 Months Ended
	Apr. 03, 2014	Nov. 30, 2014	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
ESPP
Class of Stock
Expected term (years)	9 months 24 days	6 months
Volatility	39.00%	56.00%
Risk-free interest rate	0.10%	0.10%
Dividend yield	0.00%	0.00%
Employee Stock Options
Class of Stock
Expected term (years)			6 years 28 days	6 years 10 days	6 years 1 month 6 days
Volatility			55.00%	60.00%	60.00%
Risk-free interest rate			1.80%	1.50%	1.00%
Dividend yield			0.00%	0.00%	0.00%

Net Loss Per Share - Basic and Diluted Net Loss Per Share (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands

3 Months Ended

12 Months Ended

Dec. 31, 2014

Sep. 30, 2014

Jun. 30, 2014

Mar. 31, 2014

Dec. 31, 2013

Sep. 30, 2013

Jun. 30, 2013

Mar. 31, 2013

Dec. 31, 2014

Dec. 31, 2013

Dec. 31, 2012

Earnings Per Share [Abstract]

Net loss

$ (9,372)

$ (11,435)

$ (8,659)

$ (8,320)

$ (8,632)

$ (7,735)

$ (8,290)

$ (6,657)

$ (37,786)

$ (31,314)

$ (19,334)

Weighted-average shares used in computing basic and diluted net loss per share

49,003

^[1]

48,310

^[2]

46,898

^[3]

5,608

5,013

3,779

3,684

3,536

37,604

4,006

3,321

Basic and diluted net loss per share

$ (0.19)

^[1]

$ (0.24)

^[2]

$ (0.18)

^[3]

$ (1.48)

$ (1.72)

$ (2.05)

$ (2.25)

$ (1.88)

$ (1.00)

$ (7.82)

$ (5.82)

[1]	Cost of revenue and general and administrative included a $0.4 million and a $0.3 million out-of-period adjustments, respectively, for 2008 through the third quarter of 2014. For each of these adjustments, $0.2 million is related to the period 2008 through 2013. See Note 1.
[2]	General and administrative included a $2.0 million charge for an expected settlement with the FCC Enforcement Bureau. See Note 11.
[3]	General and administrative included a $2.8 million credit recorded as a result of a favorable ruling from a specific state's revenue authority. See Note 11.

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Net Loss Per Share - Antidilutive Securities Excluded from Computation of Diluted Net Loss Per Share (Details) - shares shares in Thousands	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Antidilutive Securities Excluded from Computation of Earnings Per Share
Antidilutive securities excluded from calculation of diluted net loss per share	9,145	38,712	32,649
Convertible Preferred Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share
Antidilutive securities excluded from calculation of diluted net loss per share	0	30,554	26,737
Employee Stock Options
Antidilutive Securities Excluded from Computation of Earnings Per Share
Antidilutive securities excluded from calculation of diluted net loss per share	7,164	7,633	5,534
Restricted Stock Units
Antidilutive Securities Excluded from Computation of Earnings Per Share
Antidilutive securities excluded from calculation of diluted net loss per share	1,370	0	0
ESPP
Antidilutive Securities Excluded from Computation of Earnings Per Share
Antidilutive securities excluded from calculation of diluted net loss per share	192	0	0
Warrants \| Common Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share
Antidilutive securities excluded from calculation of diluted net loss per share	360	0	0
Warrants \| Preferred Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share
Antidilutive securities excluded from calculation of diluted net loss per share	0	391	378
Common stock subject to repurchase or forfeiture
Antidilutive Securities Excluded from Computation of Earnings Per Share
Antidilutive securities excluded from calculation of diluted net loss per share	59	134	0

Income Taxes (Details) - USD ($)
$ in Thousands

3 Months Ended

12 Months Ended

Dec. 31, 2014

Sep. 30, 2014

^[2]

Jun. 30, 2014

^[3]

Mar. 31, 2014

Dec. 31, 2013

Sep. 30, 2013

Jun. 30, 2013

Mar. 31, 2013

Dec. 31, 2014

Dec. 31, 2013

Dec. 31, 2012

Operating Loss Carryforwards [Line Items]

U.S. Federal income tax rate (percent)

34.00%

Provision for income taxes

$ 33

^[1]

$ 13

$ 12

$ 27

$ 1

$ 45

$ 5

$ 19

$ 85

$ 70

$ 62

Limitation on use of net operating loss, cumulative ownership change, more than

50.00%

Limitation on use of net operating loss, cumulative ownership change, period of change

3 years

Federal

Operating Loss Carryforwards [Line Items]

Increase in deferred tax asset, valuation allowance

$ 13,400

$ 10,800

Net operating loss carryforwards

106,400

$ 106,400

Net operating loss carryforwards, expiration date

Jan. 01, 2024

Federal | Research and Development Tax Credit Carryforward

Operating Loss Carryforwards [Line Items]

Research and development credit carryforwards

1,600

$ 1,600

Research and development credit carryforwards, expiration date

Jan. 01, 2028

State

Operating Loss Carryforwards [Line Items]

Net operating loss carryforwards

68,800

$ 68,800

Net operating loss carryforwards, expiration date

Jan. 01, 2014

State | Research and Development Tax Credit Carryforward

Operating Loss Carryforwards [Line Items]

Research and development credit carryforwards

$ 1,300

[1]	Cost of revenue and general and administrative included a $0.4 million and a $0.3 million out-of-period adjustments, respectively, for 2008 through the third quarter of 2014. For each of these adjustments, $0.2 million is related to the period 2008 through 2013. See Note 1.
[2]	General and administrative included a $2.0 million charge for an expected settlement with the FCC Enforcement Bureau. See Note 11.
[3]	General and administrative included a $2.8 million credit recorded as a result of a favorable ruling from a specific state's revenue authority. See Note 11.

Income Taxes - Schedule of Income (Loss) before Provision for Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Income Tax Disclosure [Abstract]
Domestic	$ (37,657)	$ (31,628)	$ (19,493)
Foreign	(44)	384	221
Loss before provision for income taxes	$ (37,701)	$ (31,244)	$ (19,272)

Income Taxes - Schedule of Components of the Provision for Income Taxes (Details) - USD ($)
$ in Thousands

3 Months Ended

12 Months Ended

Dec. 31, 2014

^[1]

Sep. 30, 2014

^[2]

Jun. 30, 2014

^[3]

Mar. 31, 2014

Dec. 31, 2013

Sep. 30, 2013

Jun. 30, 2013

Mar. 31, 2013

Dec. 31, 2014

Dec. 31, 2013

Dec. 31, 2012

Income Tax Disclosure [Abstract]

U.S. State

$ 12

$ 9

$ 8

Foreign

Total provision for income taxes

$ 33

$ 13

$ 12

$ 27

$ 1

$ 45

$ 5

$ 19

$ 85

$ 70

$ 62

[1]	Cost of revenue and general and administrative included a $0.4 million and a $0.3 million out-of-period adjustments, respectively, for 2008 through the third quarter of 2014. For each of these adjustments, $0.2 million is related to the period 2008 through 2013. See Note 1.
[2]	General and administrative included a $2.0 million charge for an expected settlement with the FCC Enforcement Bureau. See Note 11.
[3]	General and administrative included a $2.8 million credit recorded as a result of a favorable ruling from a specific state's revenue authority. See Note 11.

Income Taxes - Schedule of Effective Income Tax Amount Reconciliation (Details) - USD ($)
$ in Thousands

3 Months Ended

12 Months Ended

Dec. 31, 2014

^[1]

Sep. 30, 2014

^[2]

Jun. 30, 2014

^[3]

Mar. 31, 2014

Dec. 31, 2013

Sep. 30, 2013

Jun. 30, 2013

Mar. 31, 2013

Dec. 31, 2014

Dec. 31, 2013

Dec. 31, 2012

Income Tax Disclosure [Abstract]

Federal tax at statutory rate

$ (12,818)

$ (10,623)

$ (6,552)

U.S. state income taxes, net of federal benefit

(1,098)

(786)

(191)

Non-deductible expenses

420

1,383

670

Research and development credit

(455)

(339)

(56)

Stock-based compensation

746

444

126

Other

(72)

(586)

(58)

Change in valuation allowance

13,362

10,577

6,123

Total provision for income taxes

$ 33

$ 13

$ 12

$ 27

$ 1

$ 45

$ 5

$ 19

$ 85

$ 70

$ 62

[1]	Cost of revenue and general and administrative included a $0.4 million and a $0.3 million out-of-period adjustments, respectively, for 2008 through the third quarter of 2014. For each of these adjustments, $0.2 million is related to the period 2008 through 2013. See Note 1.
[2]	General and administrative included a $2.0 million charge for an expected settlement with the FCC Enforcement Bureau. See Note 11.
[3]	General and administrative included a $2.8 million credit recorded as a result of a favorable ruling from a specific state's revenue authority. See Note 11.

Income Taxes - Schedule of Components of the Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2014	Dec. 31, 2013
Deferred tax assets:
Net operating loss and credit carryforwards	$ 39,211	$ 26,076
Accrued liabilities	4,308	4,690
Allowance for doubtful accounts	256	98
Compensation accruals	626	439
Intangibles	23	27
Gross deferred tax assets	44,424	31,330
Valuation allowance	(43,203)	(29,841)
Net deferred tax assets	1,221	1,489
Deferred tax liability:
Property and equipment	(278)	(370)
Amortized intangibles	(943)	(1,119)
Gross deferred tax liability	(1,221)	(1,489)
Net deferred taxes	$ 0	$ 0

Income Taxes - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Reconciliation of Unrecognized Tax Benefits
Unrecognized benefit — beginning of period	$ 1,455	$ 1,075	$ 994
Gross increases — current year tax positions	532	382	91
Gross decreases — prior year tax positions	(12)	(2)	(10)
Unrecognized benefit — end of period	$ 1,975	$ 1,455	$ 1,075

Commitments and Contingencies - Contingencies (Details) - USD ($)
$ in Thousands

3 Months Ended

12 Months Ended

May 31, 2014

Dec. 31, 2014

Sep. 30, 2014

Jun. 30, 2014

^[2],[3],[5]

Mar. 31, 2014

^[2],[3]

Dec. 31, 2013

Sep. 30, 2013

^[2],[3]

Jun. 30, 2013

^[2],[3]

Mar. 31, 2013

^[2],[3]

Dec. 31, 2014

Dec. 31, 2013

Dec. 31, 2012

Jul. 31, 2013

Loss Contingencies

Rent expense

$ 2,600

$ 2,300

$ 2,000

Universal Services Fund Liability [Abstract]

Accrued federal fees

$ 7,215

$ 4,206

7,215

4,206

Accrued charge by the Federal Communications Commission

$ 2,000

State and Local Taxes and Surcharges [Abstract]

Expense recognized for estimated sales tax liability on usage-based fees

6,763

^[1],[2],[3]

7,967

^[2],[3],[4]

$ 3,515

$ 6,171

5,953

^[2],[3]

$ 4,223

$ 4,052

$ 3,825

24,416

18,053

11,546

Accrued sales tax liability

2,582

5,350

2,582

5,350

USF Obligations

Universal Services Fund Liability [Abstract]

Maximum USF reimbursement payments

3,100

Accrued federal fees

5,200

4,200

5,200

4,200

Potential Obligation for State Taxes on Usage Based Fees

State and Local Taxes and Surcharges [Abstract]

Payments for state and local taxes on usage-based fees

1,300

Expense recognized for estimated sales tax liability on usage-based fees

1,100

2,200

1,600

Accrued sales tax liability

2,600

5,400

2,600

5,400

Promissory Note

Universal Services Fund Liability [Abstract]

Promissory note, carrying value

3,700

Promissory Note | USF Obligations

Universal Services Fund Liability [Abstract]

Promissory note issued

$ 4,100

Promissory note, carrying value

2,600

Tentative FCC Penalty | USF Obligations

Universal Services Fund Liability [Abstract]

Accrued federal fees

5,200

$ 2,000

5,200

General and Administrative

Universal Services Fund Liability [Abstract]

Interest and penalty expense related to unpaid USF obligations

500

200

$ 100

Periods Prior To 2008 | USF Obligations

Universal Services Fund Liability [Abstract]

Accrued federal fees

800

$ 800

Period 2008 to Q3 2014 | Out of Period Adjustment | Potential Obligation for State Taxes on Usage Based Fees

State and Local Taxes and Surcharges [Abstract]

Expense recognized for estimated sales tax liability on usage-based fees

300

Period 2008 to Q3 2014 | General and Administrative

Universal Services Fund Liability [Abstract]

Out of Period Adjustment

$ 300

Period 2011 to Q1 2014 | Reversal of sales tax liability | Potential Obligation for State Taxes on Usage Based Fees

State and Local Taxes and Surcharges [Abstract]

Reversal of sales tax liability

$ (2,800)

Period 2011 to 2013 | Reversal of sales tax liability | Potential Obligation for State Taxes on Usage Based Fees

State and Local Taxes and Surcharges [Abstract]

Reversal of sales tax liability

$ (2,500)

[1]	Cost of revenue and general and administrative included a $0.4 million and a $0.3 million out-of-period adjustments, respectively, for 2008 through the third quarter of 2014. For each of these adjustments, $0.2 million is related to the period 2008 through 2013. See Note 1.
[2]	Includes depreciation and amortization expenses as follows: Quarter Ended Dec. 31,2014 Sept. 30,2014 Jun. 30,2014 Mar. 31,2014 Dec. 31,2013 Sept. 30,2013 Jun. 30,2013 Mar. 31,2013 (unaudited, in thousands)Cost of revenue $1,291 $1,272 $1,373 $1,202 $1,200 $900 $752 $857Research and development 75 58 50 46 59 57 54 44Sales and marketing 50 50 48 48 41 17 14 11General and administrative 189 187 228 296 213 89 61 46Total depreciation and amortization $1,605 $1,567 $1,699 $1,592 $1,513 $1,063 $881 $958
[3]	Includes stock-based compensation as follows: Quarter Ended Dec. 31,2014 Sept. 30,2014 Jun. 30,2014 Mar. 31,2014 Dec. 31,2013 Sept. 30,2013 Jun. 30,2013 Mar. 31,2013 (unaudited, in thousands)Cost of revenue $176 $158 $121 $87 $67 $51 $44 $32Research and development 527 583 471 350 261 136 49 53Sales and marketing 455 361 368 326 330 182 134 105General and administrative 799 775 763 433 265 89 77 74Total stock-based compensation $1,957 $1,877 $1,723 $1,196 $923 $458 $304 $264
[4]	General and administrative included a $2.0 million charge for an expected settlement with the FCC Enforcement Bureau. See Note 11.
[5]	General and administrative included a $2.8 million credit recorded as a result of a favorable ruling from a specific state's revenue authority. See Note 11.

Commitments and Contingencies - Schedule of Future Minimum Lease Payments for Capital and Operating Leases (Details) - USD ($) $ in Thousands	Dec. 31, 2014	Dec. 31, 2013
Capital Leases
2015	$ 5,694
2016	3,765
2017	1,408
2018	85
Total future minimum lease payment	10,952
Less — amount representing interest	(1,680)
Present value of total capital lease obligation	9,272
Capital lease obligation — current portion	4,849	$ 4,857
Capital lease obligation — net of current portion	4,423	$ 4,358
Operating Leases
2015	2,147
2016	2,043
2017	1,877
2018	304
Total future minimum lease payment	$ 6,371

Commitments and Contingencies - Hosting and Telecommunications Usuage Services (Details) $ in Thousands	Dec. 31, 2014 USD ($)
Operating Leased Assets
2015	$ 2,147
2016	2,043
2017	1,877
Total future minimum lease payment	6,371
Hosting Services
Operating Leased Assets
2015	1,583
2016	1,446
2017	724
Total future minimum lease payment	3,753
Telecommunication Usage Services
Operating Leased Assets
2015	3,184
2016	1,218
2017	82
Total future minimum lease payment	$ 4,484

Geographical Information - Schedule of Revenue and Property and Equipment by Geographic Region (Details) - USD ($)
$ in Thousands

3 Months Ended

12 Months Ended

Dec. 31, 2014

Sep. 30, 2014

^[2]

Jun. 30, 2014

^[3]

Mar. 31, 2014

Dec. 31, 2013

Sep. 30, 2013

Jun. 30, 2013

Mar. 31, 2013

Dec. 31, 2014

Dec. 31, 2013

Dec. 31, 2012

Revenues from External Customers and Long-Lived Assets

Revenue

$ 28,274

^[1]

$ 25,869

$ 24,685

$ 24,274

$ 23,643

$ 21,091

$ 20,283

$ 19,115

$ 103,102

$ 84,132

$ 63,822

Property and equipment, net

12,571

11,607

12,571

11,607

United States

Revenues from External Customers and Long-Lived Assets

Revenue

95,345

75,374

57,185

Property and equipment, net

10,625

11,079

10,625

11,079

International

Revenues from External Customers and Long-Lived Assets

Revenue

7,757

8,758

$ 6,637

Property and equipment, net

$ 1,946

$ 528

$ 1,946

$ 528

[1]	Cost of revenue and general and administrative included a $0.4 million and a $0.3 million out-of-period adjustments, respectively, for 2008 through the third quarter of 2014. For each of these adjustments, $0.2 million is related to the period 2008 through 2013. See Note 1.
[2]	General and administrative included a $2.0 million charge for an expected settlement with the FCC Enforcement Bureau. See Note 11.
[3]	General and administrative included a $2.8 million credit recorded as a result of a favorable ruling from a specific state's revenue authority. See Note 11.

Related Party Transactions (Details) - USD ($)	12 Months Ended
Related Party Transactions (Details) - USD ($)	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Related Party Transaction
Expenses incurred with related party	$ 30,000	$ 300,000	$ 500,000
Director
Related Party Transaction
Due to related parties	$ 0

Selected Quarterly Financial Data (Unaudited) - Schedule of Quarterly Financial Information (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands

3 Months Ended

12 Months Ended

Dec. 31, 2014

Sep. 30, 2014

Jun. 30, 2014

Mar. 31, 2014

Dec. 31, 2013

Sep. 30, 2013

Jun. 30, 2013

Mar. 31, 2013

Dec. 31, 2014

Dec. 31, 2013

Dec. 31, 2012

Revenue

$ 28,274

^[1]

$ 25,869

^[2]

$ 24,685

^[3]

$ 24,274

$ 23,643

$ 21,091

$ 20,283

$ 19,115

$ 103,102

$ 84,132

$ 63,822

Cost of revenue

14,540

^[1],[4],[5]

13,504

^[2],[4],[5]

13,469

^[3],[4],[5]

13,148

^[4],[5]

12,646

^[4],[5]

12,265

^[4],[5]

12,215

^[4],[5]

11,681

^[4],[5]

54,661

48,807

39,306

Gross profit

13,734

12,365

11,216

11,126

10,997

8,826

8,068

7,434

48,441

35,325

24,516

Operating expenses:

Research and development

5,828

^[1],[4],[5]

5,503

^[2],[4],[5]

5,554

^[3],[4],[5]

5,225

^[4],[5]

4,850

^[4],[5]

4,419

^[4],[5]

4,106

^[4],[5]

4,154

^[4],[5]

22,110

17,529

13,217

Sales and marketing

9,453

^[1],[4],[5]

9,296

^[2],[4],[5]

9,674

^[3],[4],[5]

9,022

^[4],[5]

7,727

^[4],[5]

6,964

^[4],[5]

7,227

^[4],[5]

6,147

^[4],[5]

37,445

28,065

16,808

General and administrative

6,763

^[1],[4],[5]

7,967

^[2],[4],[5]

3,515

^[3],[4],[5]

6,171

^[4],[5]

5,953

^[4],[5]

4,223

^[4],[5]

4,052

^[4],[5]

3,825

^[4],[5]

24,416

18,053

11,546

Total operating expenses

22,044

22,766

18,743

20,418

18,530

15,606

15,385

14,126

83,971

63,647

41,571

Loss from operations

(8,310)

(10,401)

(7,527)

(9,292)

(7,533)

(6,780)

(7,317)

(6,692)

(35,530)

(28,322)

(17,055)

Other income (expense), net:

Change in fair value of convertible preferred and common stock warrant liabilities

^[1]

^[2]

^[3]

1,745

(694)

(622)

(785)

230

1,745

(1,871)

(1,674)

Interest expense

(1,175)

^[1]

(1,116)

^[2]

(1,092)

^[3]

(778)

(414)

(273)

(215)

(178)

(4,161)

(1,080)

(557)

Interest income and other

146

^[1]

^[2]

(28)

^[3]

(15)

245

Total other income (expense), net

(1,029)

(1,021)

(1,120)

999

(1,098)

(910)

(968)

(2,171)

(2,922)

(2,217)

Loss before provision for income taxes

(9,339)

(11,422)

(8,647)

(8,293)

(8,631)

(7,690)

(8,285)

(6,638)

(37,701)

(31,244)

(19,272)

Provision for income taxes

^[1]

^[2]

^[3]

Net loss

$ (9,372)

$ (11,435)

$ (8,659)

$ (8,320)

$ (8,632)

$ (7,735)

$ (8,290)

$ (6,657)

$ (37,786)

$ (31,314)

$ (19,334)

Net loss per share:

Basic and diluted (in USD per share)

$ (0.19)

^[1]

$ (0.24)

^[2]

$ (0.18)

^[3]

$ (1.48)

$ (1.72)

$ (2.05)

$ (2.25)

$ (1.88)

$ (1.00)

$ (7.82)

$ (5.82)

Shares used in computing net loss per share:

Basic and diluted (in shares)

49,003

^[1]

48,310

^[2]

46,898

^[3]

5,608

5,013

3,779

3,684

3,536

37,604

4,006

3,321

USF Obligations

Shares used in computing net loss per share:

Expected settlement

$ 2,000

General and Administrative

Shares used in computing net loss per share:

Amount resulting from favorable ruling from specific state's revenue authority

$ 2,800

Period 2008 to Q3 2014 | Cost of Revenue

Shares used in computing net loss per share:

Out of Period Adjustment

$ 400

Period 2008 to Q3 2014 | General and Administrative

Shares used in computing net loss per share:

Out of Period Adjustment

300

Period 2008 to 2013 | Cost of Revenue

Shares used in computing net loss per share:

Out of Period Adjustment

200

Period 2008 to 2013 | General and Administrative

Shares used in computing net loss per share:

Out of Period Adjustment

$ 200

[1]	Cost of revenue and general and administrative included a $0.4 million and a $0.3 million out-of-period adjustments, respectively, for 2008 through the third quarter of 2014. For each of these adjustments, $0.2 million is related to the period 2008 through 2013. See Note 1.
[2]	General and administrative included a $2.0 million charge for an expected settlement with the FCC Enforcement Bureau. See Note 11.
[3]	General and administrative included a $2.8 million credit recorded as a result of a favorable ruling from a specific state's revenue authority. See Note 11.
[4]	Includes depreciation and amortization expenses as follows: Quarter Ended Dec. 31,2014 Sept. 30,2014 Jun. 30,2014 Mar. 31,2014 Dec. 31,2013 Sept. 30,2013 Jun. 30,2013 Mar. 31,2013 (unaudited, in thousands)Cost of revenue $1,291 $1,272 $1,373 $1,202 $1,200 $900 $752 $857Research and development 75 58 50 46 59 57 54 44Sales and marketing 50 50 48 48 41 17 14 11General and administrative 189 187 228 296 213 89 61 46Total depreciation and amortization $1,605 $1,567 $1,699 $1,592 $1,513 $1,063 $881 $958
[5]	Includes stock-based compensation as follows: Quarter Ended Dec. 31,2014 Sept. 30,2014 Jun. 30,2014 Mar. 31,2014 Dec. 31,2013 Sept. 30,2013 Jun. 30,2013 Mar. 31,2013 (unaudited, in thousands)Cost of revenue $176 $158 $121 $87 $67 $51 $44 $32Research and development 527 583 471 350 261 136 49 53Sales and marketing 455 361 368 326 330 182 134 105General and administrative 799 775 763 433 265 89 77 74Total stock-based compensation $1,957 $1,877 $1,723 $1,196 $923 $458 $304 $264

Selected Quarterly Financial Date (Unaudited) - Allocation of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Total stock-based compensation	$ 1,957	$ 1,877	$ 1,723	$ 1,196	$ 923	$ 458	$ 304	$ 264	$ 6,753	$ 1,949	$ 464
Cost of Revenue
Total stock-based compensation	176	158	121	87	67	51	44	32
Research and Development
Total stock-based compensation	527	583	471	350	261	136	49	53
Sales and Marketing
Total stock-based compensation	455	361	368	326	330	182	134	105
General and Administrative
Total stock-based compensation	$ 799	$ 775	$ 763	$ 433	$ 265	$ 89	$ 77	$ 74

Selected Quarterly Financial Data (Unaudited) - Allocation of Depreciation and Amortization Expense (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Total depreciation and amortization	$ 1,605	$ 1,567	$ 1,699	$ 1,592	$ 1,513	$ 1,063	$ 881	$ 958	$ 6,463	$ 4,415	$ 2,624
Cost of Revenue
Total depreciation and amortization	1,291	1,272	1,373	1,202	1,200	900	752	857
Research and Development
Total depreciation and amortization	75	58	50	46	59	57	54	44
Sales and Marketing
Total depreciation and amortization	50	50	48	48	41	17	14	11
General and Administrative
Total depreciation and amortization	$ 189	$ 187	$ 228	$ 296	$ 213	$ 89	$ 61	$ 46

Subsequent Events (Details) - USD ($)		1 Months Ended
Subsequent Events (Details) - USD ($)	Jan. 29, 2015	Feb. 28, 2015	Dec. 31, 2014
2014 Loan and Security Agreement \| Term Loan
Subsequent Event
Credit facility, remaining borrowing capacity			$ 10,000,000.0
Subsequent Event \| 2014 Loan and Security Agreement \| Term Loan
Subsequent Event
Credit facility, remaining borrowing capacity		$ 10,000,000
Amendment fee		$ 100,000
Subsequent Event \| Soneet Kapila v. Five9, Inc. \| Pending Litigation
Subsequent Event
Damages sought in lawsuit	$ 2,500,000