0001660280-18-000008 | 10-Q | XBRL Viewer

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Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2018	Aug. 31, 2018
Document And Entity Information [Abstract]
Entity Registrant Name	TENABLE HOLDINGS, INC.
Entity Central Index Key	0001660280
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Document Type	10-Q
Document Period End Date	Jun. 30, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding (in shares)		93,033,759

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 23,655	$ 27,210
Accounts receivable (net of allowance for doubtful accounts of $261 and $160 at June 30, 2018 and December 31, 2017, respectively)	49,930	50,881
Deferred commissions	19,078	17,170
Prepaid expenses and other current assets	13,324	15,994
Total current assets	105,987	111,255
Property and equipment, net	11,240	10,754
Construction in progress	12,253	2,252
Deferred commissions (net of current portion)	31,727	33,006
Intangible assets, net	729	1,031
Goodwill	265	265
Other assets	7,157	5,774
Total assets	169,358	164,337
Current liabilities:
Accounts payable	1,457	338
Accrued expenses	7,462	4,878
Accrued compensation	15,862	18,482
Deferred revenue	174,277	154,898
Other current liabilities	1,932	1,750
Total current liabilities	200,990	180,346
Deferred revenue (net of current portion)	72,860	70,920
Financing obligation	11,803	1,802
Other liabilities	4,315	5,199
Total liabilities	289,968	258,267
Commitments and contingencies (Note 4)
Stockholders’ deficit:
Common stock (par value: $0.01; 93,848 and 93,855 shares authorized at June 30, 2018 and December 31, 2017; 24,951 and 24,472 shares issued and outstanding at June 30, 2018 and December 31, 2017)	250	246
Additional paid-in capital	26,651	20,676
Accumulated deficit	(425,625)	(392,587)
Total stockholders’ deficit	(398,724)	(371,665)
Total liabilities, redeemable convertible preferred stock and stockholders’ deficit	169,358	164,337
Series A Redeemable Convertible Preferred Stock
Current liabilities:
Redeemable convertible preferred stock	49,946	49,935
Series B Redeemable Convertible Preferred Stock
Current liabilities:
Redeemable convertible preferred stock	$ 228,168	$ 227,800

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Accounts receivable, allowance for doubtful accounts	$ 261	$ 160
Common stock, par value (in usd per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	93,848,000	93,855,000
Common stock, shares issued (in shares)	24,951,000	24,472,000
Common stock, shares outstanding (in shares)	24,951,000	24,472,000
Series A Redeemable Convertible Preferred Stock
Redeemable convertible preferred stock, par value (in usd per share)	$ 0.01	$ 0.01
Redeemable convertible preferred stock, shares authorized (in shares)	15,848,000	15,848,000
Redeemable convertible preferred stock, shares issued (in shares)	15,848,000	15,848,000
Redeemable convertible preferred stock, shares outstanding (in shares)	15,848,000	15,848,000
Redeemable convertible preferred stock, liquidation value	$ 50,000	$ 50,000
Series B Redeemable Convertible Preferred Stock
Redeemable convertible preferred stock, par value (in usd per share)	$ 0.01	$ 0.01
Redeemable convertible preferred stock, shares authorized (in shares)	42,000,000	42,000,000
Redeemable convertible preferred stock, shares issued (in shares)	39,538,000	39,538,000
Redeemable convertible preferred stock, shares outstanding (in shares)	39,538,000	39,538,000
Redeemable convertible preferred stock, liquidation value	$ 230,008	$ 230,008

Consolidated Statements of Operations and Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Income Statement [Abstract]
Revenue	$ 63,592	$ 44,149	$ 122,699	$ 84,630
Cost of revenue	9,879	5,348	18,607	9,786
Gross profit	53,713	38,801	104,092	74,844
Operating expenses:
Sales and marketing	41,826	27,773	81,414	53,941
Research and development	17,791	13,713	34,976	26,171
General and administrative	10,541	6,544	19,596	12,707
Total operating expenses	70,158	48,030	135,986	92,819
Loss from operations	(16,445)	(9,229)	(31,894)	(17,975)
Other (expense) income, net	(461)	56	(469)	27
Loss before income taxes	(16,906)	(9,173)	(32,363)	(17,948)
Provision for income taxes	244	41	675	92
Net loss and comprehensive loss	(17,150)	(9,214)	(33,038)	(18,040)
Accretion of Series A and B redeemable convertible preferred stock	(191)	(191)	(379)	(378)
Net loss attributable to common stockholders	$ (17,341)	$ (9,405)	$ (33,417)	$ (18,418)
Net loss per share attributable to common stockholders, basic and diluted (in usd per share)	$ (0.73)	$ (0.43)	$ (1.41)	$ (0.85)
Weighted-average shares used to compute net loss per share attributable to common stockholders, basic and diluted (in shares)	23,750	22,060	23,623	21,661

Consolidated Statements of Redeemable Convertible Preferred Stock and Stockholders' Deficit - 6 months ended Jun. 30, 2018 - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Series A Redeemable Convertible Preferred Stock	Series B Redeemable Convertible Preferred Stock
Balance (in shares) at Dec. 31, 2017					15,848	39,538
Balance at Dec. 31, 2017					$ 49,935	$ 227,800
Redeemable Convertible Preferred Stock [Roll Forward]
Accretion of Series A and B redeemable convertible preferred stock					$ 11	$ 368
Balance (in shares) at Jun. 30, 2018					15,848	39,538
Balance at Jun. 30, 2018					$ 49,946	$ 228,168
Balance (in shares) at Dec. 31, 2017	24,472	24,472
Balance at Dec. 31, 2017	$ (371,665)	$ 246	$ 20,676	$ (392,587)
Increase (Decrease) in Stockholders' Deficit [Roll Forward]
Accretion of Series A and B redeemable convertible preferred stock	$ (379)		(379)
Exercise of stock options (in shares)	486	486
Exercise of stock options	$ 1,010	$ 5	1,005
Repurchase of common stock (in shares)		(7)
Repurchase of common stock	(75)	$ (1)	(74)
Stock-based compensation	5,423		5,423
Net loss	$ (33,038)			(33,038)
Balance (in shares) at Jun. 30, 2018	24,951	24,951
Balance at Jun. 30, 2018	$ (398,724)	$ 250	$ 26,651	$ (425,625)

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Cash flows from operating activities:
Net loss	$ (33,038)	$ (18,040)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	2,994	2,121
Stock-based compensation	5,423	3,475
Deferred income taxes	0	318
Other	664	(39)
Changes in operating assets and liabilities:
Accounts receivable	850	(1,205)
Prepaid expenses and other current assets	2,625	(205)
Deferred commissions	(629)	(6,134)
Other assets	1,260	219
Accounts payable and accrued expenses	2,326	1,846
Accrued compensation	(2,620)	(878)
Deferred revenue	21,319	19,468
Other current liabilities	(3)	(517)
Other liabilities	(425)	(261)
Net cash provided by operating activities	746	168
Cash flows from investing activities:
Purchases of property and equipment	(2,978)	(681)
Net cash used in investing activities	(2,978)	(681)
Cash flows from financing activities:
Principal payments under capital lease obligations	(252)	(90)
Credit facility issuance costs	0	(238)
Payments of deferred offering costs	(1,515)	0
Proceeds from the exercise of stock options	1,010	2,467
Repurchases of common stock	(75)	(385)
Net cash (used in) provided by financing activities	(832)	1,754
Effect of exchange rate changes on cash and cash equivalents and restricted cash	(491)	45
Net (decrease) increase in cash and cash equivalents and restricted cash	(3,555)	1,286
Cash and cash equivalents and restricted cash at beginning of period	27,472	34,470
Cash and cash equivalents and restricted cash at end of period	23,917	35,756
Supplemental disclosure of cash flow information:
Cash paid for interest	56	20
Cash paid for income taxes	418	215
Supplemental disclosure of non-cash investing and financing activities:
Assets acquired under capital leases	9	602
Asset retirement obligations	0	624
Construction in progress	$ 10,001	$ 0

Business and Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Business and Summary of Significant Accounting Policies

Business Description

Tenable Holdings, Inc. (the “Company,” “we,” "us," or “our”) is a provider of Cyber Exposure solutions, which is a discipline for managing and measuring cybersecurity risk in the digital era. Our enterprise software platform enables broad visibility into an organization’s cyber exposure across the modern attack surface and deep insights that help organizations translate technical data into business insights to understand and reduce their cybersecurity risk.

Basis of Presentation

The accompanying consolidated financial statements include the accounts of Tenable Holdings, Inc. and our wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.

The consolidated financial statements have been prepared in conformity with United States generally accepted accounting principles (“GAAP”) for interim financial information. The consolidated statements are unaudited and should be read in conjunction with the consolidated financial statements and related notes included in our final prospectus for our initial public offering ("IPO") dated as of July 25, 2018 and filed with the Securities and Exchange Commission pursuant to Rule 424(b)(4) under the Securities Act of 1933, as amended, on July 26, 2018 ("Prospectus").

The consolidated financial statements have been prepared on a basis consistent with the audited annual consolidated financial statements included in the Prospectus and, in the opinion of management, include all adjustments of a normal recurring nature necessary to fairly state our financial position, our results of operations, and cash flows.

The results for the six months ended June 30, 2018 are not necessarily indicative of the operating results expected for the year ended December 31, 2018.

Initial Public Offering

Our IPO closed on July 30, 2018, after quarter end. As a result, our consolidated financial statements as of June 30, 2018 and for the periods then ended do not reflect the sale of 12,535,000 shares of common stock at the IPO price of $23.00 for net proceeds of $265 million, after underwriting discounts and commissions and offering expenses, or the conversion of all outstanding shares of our redeemable convertible preferred stock into an aggregate of 55,385,854 shares of common stock.

Use of Estimates

The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. These estimates include, but are not limited to, the determination of the estimated economic life of perpetual licenses for revenue recognition, the estimated period of benefit for deferred commissions, useful lives of long-lived assets, the valuation of stock-based compensation, including the estimated underlying fair value of our common stock, and the valuation of deferred tax assets. We base these estimates on historical experience and on various other assumptions that we believe to be reasonable. Actual results could differ significantly from these estimates.

Revenue Recognition

We early adopted Accounting Standards Codification (“ASC”) Topic 606, Revenue From Contracts With Customers (“ASC 606”), on January 1, 2017 using the modified retrospective method and applying the guidance to all contracts as of January 1, 2017. The most significant impact of adopting ASC 606 was the deferral of perpetual license revenue over an estimated economic life, including estimated maintenance renewal periods, whereas under the previous

guidance we recognized perpetual license revenue upon delivery of the perpetual license. Additionally, the incremental costs of obtaining a contract with a customer are deferred, and will be amortized over a longer estimated period of benefit, whereas under previous guidance we amortized such costs over the contract term.

The core principle of ASC 606 is that revenue should be recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve the core principle of ASC 606, we apply the following steps:

•Identify the contract with a customer

•Identify the performance obligations in the contract

•Determine the transaction price

•Allocate the transaction price to the performance obligations in the contract

•Recognize revenue when or as performance obligations are satisfied

We generate revenue from subscription arrangements for software and cloud-based solutions, perpetual licenses, maintenance associated with perpetual licenses, and professional services and other revenue. We begin to recognize revenue when control of our software or services is transferred to the customer, which for sales made through distributors is concurrent with the transfer to the end user.

The following table presents a summary of revenue:



	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2018		2017		2018		2017
Subscription revenue	$	48,725	$	30,844	$	93,057	$	58,546
Perpetual license and maintenance revenue	13,412		12,283		26,889		24,272
Professional services and other revenue	1,455		1,022		2,753		1,812
Revenue	$	63,592	$	44,149	$	122,699	$	84,630

Subscription Revenue

Subscription arrangements generally have annual or multi-year contractual terms and allow customers to use our software or cloud solutions, including ongoing software updates and the ability to identify the latest cybersecurity vulnerabilities. Revenue is recognized ratably over the subscription term given the critical utility provided by the ongoing updates that are released throughout the contract period.

Perpetual License and Maintenance Revenue

Our perpetual licenses are generally sold with one or more years of maintenance, which include ongoing software updates and the ongoing ability to identify the latest cybersecurity vulnerabilities. Given the critical utility provided by the ongoing software updates and updated ability to identify network vulnerabilities included in maintenance, we combine the perpetual license and the maintenance into a single performance obligation. Perpetual license arrangements generally contain a material right related to the customer’s ability to renew maintenance at a price that is less than the initial license fee. We apply a practical alternative to allocating a portion of the transaction price to the material right performance obligation and estimate a hypothetical transaction price which includes fees for expected maintenance renewals based on the estimated economic life of the perpetual license contracts. We allocate the transaction price between the cybersecurity subscription provided in the initial contract and the material right related to expected contract renewals based on the hypothetical transaction price. We recognize the amount allocated to the combined license and maintenance performance obligation over the initial contractual period, which is generally one year. We recognize the amount allocated to the material right over the expected maintenance renewal period, which begins at the end of the initial contractual term and is generally four years. We have estimated the five-year economic life of perpetual license contracts based on historical contract attrition, expected renewal periods, the lifecycle of the our technology and other factors. While we

believe that the estimates we have made are reasonable and appropriate, different assumptions and estimates could materially impact our reported financial results.

Professional Services and Other Revenue

Professional services and other revenue is primarily comprised of advisory services and training related to the deployment and optimization of our products. These services do not result in significant customization of our products. Professional services and other revenue is recognized as the services are performed.

Contracts with Multiple Performance Obligations

In cases where our contracts with customers contain multiple performance obligations, the contract transaction price is allocated on a relative standalone selling price basis. We typically determine standalone selling price based on observable selling prices of our products and services.

Variable Consideration

We record revenue from sales at the net sales price, which is the transaction price, including estimates of variable consideration when applicable. Certain of our customers may be entitled to receive credits and in certain circumstances, refunds, if service level commitments are not met. We have not historically experienced significant incidents affecting the ability to meet these service level commitments and any estimated refunds related to these agreements have not been material.

Sales through our channel network of distributors and resellers are generally discounted as compared to the price that we would sell to an end user. Revenue for sales through our channel network is recorded net of any distributor or reseller margin.

Concentrations

We sell our products and services through a channel network of distributors and resellers, along with our own sales teams. We derived 87% of revenue through our channel network in each of the three and six months ended June 30, 2018, and 82% and 81% of revenue in the three and six months ended June 30, 2017, respectively. One of our distributors accounted for 46% of revenue in each of the three and six months ended June 30, 2018, compared with 42% of revenue in each of the three and six months ended June 30, 2017. That same distributor accounted for 48% of accounts receivable at June 30, 2018.

Contract Balances

We generally bill our customers in advance and accounts receivable are recorded when we have the right to invoice the customer. Contract liabilities consist of deferred revenue and include customer billings and payments received in advance of performance under the contract. In the three and six months ended June 30, 2018 and 2017, we recognized revenue of $51.7 million, $99.2 million, $39.6 million and $68.3 million, respectively, that was included in the deferred revenue balance at the beginning of each of the respective periods.

Remaining Performance Obligations

At June 30, 2018, the future estimated revenue related to unsatisfied performance obligations was $252.0 million, with 71% expected to be recognized as revenue over the succeeding twelve months, and the remainder expected to be recognized over the four years thereafter.

Deferred Commissions

Sales commissions, including related incremental fringe benefit costs, are considered to be incremental costs of obtaining a contract. Sales commissions on initial sales are not commensurate with sales commissions on contract renewals and therefore are recognized over an estimated period of benefit, which ranges between three and four years for

subscription arrangements and five years for perpetual license arrangements. We estimated the period of benefit based on the expected contract term including renewal periods, the lifecycle of our technology, and other factors. Sales commissions on contract renewals are capitalized and amortized ratably over the contract term, with the exception of contracts with renewal periods that are one year or less, in which case the incremental costs are expensed as incurred.

The following summarizes the activity of deferred incremental costs of obtaining a contract in the periods presented:



	Three Months Ended June 30,						Six Months Ended June 30,
(in thousands)	2018			2017			2018			2017
Beginning balance	$	50,451		$	31,906		$	50,176		$	30,118
Capitalization of contract acquisition costs	4,700			7,558			9,847			12,162
Amortization of deferred contract acquisition costs	(4,346		)	(3,212		)	(9,218		)	(6,028		)
Ending balance	$	50,805		$	36,252		$	50,805		$	36,252

Amortization of deferred contract acquisition costs is included in sales and marketing expense in the consolidated statements of operations and comprehensive loss.

Construction in Progress

In October 2017, we entered into a lease for our new corporate headquarters, which is currently being constructed in Columbia, Maryland. The lease has an anticipated start date in the third quarter of 2019 with a 12-year initial term and $68.2 million of lease payments. Under current accounting guidance for build-to-suit lease arrangements, we concluded that we are the deemed owner of the building during the construction period. Accordingly, we recorded a construction-in-progress asset of $12.3 million and $2.3 million, for which there is a corresponding construction financing obligation of $11.8 million and $1.8 million, in each case net of a $0.5 million deposit, recorded in the consolidated balance sheets at June 30, 2018 and December 31, 2017, respectively. We will continue to increase the construction-in-progress asset and corresponding long-term liability as additional building costs are incurred by the landlord during the construction period. Upon completion of the construction, we will evaluate whether or not this arrangement meets the criteria for sale-leaseback accounting treatment.

Deferred Offering Costs

Our deferred offering costs consist of legal, accounting and other fees incurred in connection with our IPO. These costs have been deferred and are included in "Other assets" in the consolidated balance sheet and will be offset against the IPO proceeds. We deferred $2.7 million of offering costs as of June 30, 2018. No amounts were deferred as of December 31, 2017.

Recent Accounting Pronouncements Not Yet Adopted

In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-02 - Leases (Topic 842), which will require, among other items, lessees to recognize a right-of-use asset and a lease liability for most leases. ASU 2016-02 will be effective for us beginning January 1, 2019, with early adoption permitted. In July 2018, the FASB issued ASU 2018-11, Leases (Topic 842), Targeted Improvements, which provides an adoption method that would allow companies to apply the new guidance to the financial statements in the period of adoption and thereafter, and not apply the new guidance to comparative periods presented. We are evaluating the impact of this standard, including the adoption methodology, to determine the impact on our consolidated financial statements.

Property and Equipment, Net

6 Months Ended

Jun. 30, 2018

Property, Plant and Equipment [Abstract]

Property and Equipment, Net

Property and equipment, net consisted of the following:



(in thousands)	June 30, 2018			December 31, 2017
Computer software and equipment	$	11,051		$	9,089
Furniture and fixtures	2,299			2,102
Leasehold improvements	6,928			6,452
Equipment under capital leases	1,831			1,839
Total	22,109			19,482
Less: accumulated depreciation and amortization	(10,869		)	(8,728		)
Property and equipment, net	$	11,240		$	10,754

Depreciation and amortization related to property and equipment was $1.4 million, $2.7 million, $0.9 million and $1.8 million in the three and six months ended June 30, 2018 and 2017, respectively.

Debt	6 Months Ended
Debt	Jun. 30, 2018
Debt Disclosure [Abstract]
Debt	Debt On May 4, 2017, we entered into a $25.0 million revolving credit facility (“Credit Facility”) with Silicon Valley Bank, which is available for use until May 4, 2020. The Credit Facility is intended to be used to fund working capital and to provide increased liquidity and financial flexibility and bears interest at either LIBOR plus 2%, or the lender's prime rate plus 1%. In addition, we pay quarterly in arrears 0.25% of the average unused portion. The Credit Facility is secured by a first priority security interest in all of our assets, with a negative pledge on our Intellectual Property, as defined in the credit agreement. The Credit Facility contains certain restrictive covenants customary for facilities of this type including restrictions on indebtedness, liens, acquisitions and investments, restricted payments and dispositions. If, as of the last day of any quarter, the outstanding balance of the Credit Facility exceeds $5.0 million, there are financial covenants that require us to maintain a minimum level of earnings before income taxes, interest, depreciation and amortization (“EBITDA”) adjusted to add changes in deferred revenue in the period, and a minimum current ratio level. There were no borrowings under the Credit Facility during the six months ended June 30, 2018 or in 2017.

Commitments and Contingencies

6 Months Ended

Jun. 30, 2018

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Operating and Capital Leases

We have entered into various non-cancelable operating leases, primarily related to office real estate, that expire through 2022 and generally contain renewal options for up to five years. Rent expense was $1.3 million, $2.4 million, $0.9 million and $1.6 million in the three and six months ended June 30, 2018 and 2017, respectively.

We also lease computer and office equipment under non-cancelable capital leases that expire through 2022. The total obligations for capital lease arrangements were $1.2 million and $1.5 million at June 30, 2018 and December 31, 2017, respectively.

Future minimum non-cancelable lease payments for operating and capital leases at June 30, 2018 were as follows:



(in thousands)
Years ending December 31:
2018	$	2,914
2019	5,035
2020	3,909
2021	7,440
2022	6,187
Thereafter	58,301
Total future minimum lease payments	$	83,786

Total future minimum lease payments at June 30, 2018 includes $68.2 million of future lease payments related to the lease of our new headquarters, which is currently being constructed in Columbia, Maryland. These lease payments are expected to commence in the first quarter of 2021.

Redeemable Convertible Preferred Stock and Common Stock	6 Months Ended
Redeemable Convertible Preferred Stock and Common Stock	Jun. 30, 2018
Temporary Equity Disclosure [Abstract]
Redeemable Convertible Preferred Stock and Common Stock	Redeemable Convertible Preferred Stock and Common Stock Redeemable Convertible Preferred Stock In October 2012, Tenable, Inc. (now a wholly owned subsidiary of Tenable Holdings, Inc.) issued 15,847,500 shares of Series A redeemable convertible preferred stock at a price of $3.155067 per share, for an aggregate purchase price of $50 million, less $0.1 million in transaction costs. In December 2015, we issued 15,847,500 shares, par value of $0.01, of Series A redeemable convertible preferred stock (“Series A”) in exchange for Series A Convertible Preferred Stock of Tenable, Inc., in connection with a recapitalization. This exchange was made on a one for one basis. In addition, we authorized 42,000,000 shares and issued 39,538,354 shares, par value of $0.01, of Series B Convertible Preferred Stock (“Series B”) to certain investors at a price of $5.81735 per share. The gross purchase price was $230.0 million and we incurred transaction costs of $3.7 million. These proceeds were used to repurchase 39,387,322 shares of Tenable, Inc.’s common stock from its former stockholders in connection with the recapitalization. Series A and Series B (together, the “Redeemable Convertible Preferred Stock”) automatically convert into common stock at the then applicable conversion rate in the event of the closing of a qualifying firm commitment underwritten public offering, which is defined as an offering of our common stock to the public at a price of at least $17.45 per share, that results in gross proceeds of at least $75 million. In addition, each share of a series of Redeemable Convertible Preferred Stock will automatically convert into common stock at the then applicable conversion rate for such series upon the vote or written consent of holders of at least 60% of such series. See Note 10 to our consolidated financial statements for details regarding the automatic conversion of the Redeemable Convertible Preferred Stock in connection with our IPO in July 2018. We accreted the Redeemable Convertible Preferred Stock to the redemption price at the redemption date using the effective interest method. Common Stock The voting, dividend, and liquidation rights of common stockholders are subject to, and qualified by, the rights of preferred stockholders. The common stockholders are entitled to receive dividends when, as and if, declared by the Board of Directors, subject to preferential dividend rights of preferred stockholders. Upon dissolution or liquidation, our common stockholders will be entitled to receive all assets available for distribution to stockholders, subject to preferential rights of preferred stockholders.

Stock-Based Compensation

6 Months Ended

Jun. 30, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Compensation

We have various stock incentive plans under which we have issued stock-based awards. Stock options granted under our stock incentive plans have a maximum term of ten years, generally vest over a period of three to four years, and the exercise price cannot be less than the fair market value on the date of grant. In February 2018 and June 2018, the Board of Directors approved increases of 3.0 million and 4.0 million shares available for grant under the 2016 Stock Incentive Plan ("2016 Plan"), respectively. There were 1,118,311 shares available for grant at June 30, 2018.

Stock-based compensation expense included in the consolidated statements of operations and comprehensive loss was as follows:



	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2018		2017		2018		2017
Cost of revenue	$	114	$	50	$	191	$	104
Sales and marketing	675		358		1,277		628
Research and development	640		452		1,167		846
General and administrative	1,595		989		2,788		1,897
Total stock-based compensation expense	$	3,024	$	1,849	$	5,423	$	3,475

At June 30, 2018, the total unrecognized stock-based compensation expense related to outstanding stock options was $55.7 million, which is expected to be recognized over an estimated remaining weighted average period of 3.5 years.

At June 30, 2018, the unrecognized stock-based compensation expense related to unvested awards of restricted stock was $4.2 million, which is expected to be recognized over an estimated remaining period of 2.5 years.

At June 30, 2018, the unrecognized stock-based compensation expense related to unvested restricted stock units was $15.8 million, which is expected to be recognized over an estimated remaining period of 2.1 years.

Stock Options

A summary of our stock option activity is presented below:



(in thousands, except for per share data and years)	Number of Shares	Weighted Average Exercise Price		Weighted-Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value
Outstanding at December 31, 2017	14,573	$	4.38	8.2	$	77,020
Granted	5,914	14.91
Exercised	(486)	2.08
Forfeited/canceled	(480)	6.23
Outstanding at June 30, 2018	19,521	7.58		8.5	168,503
Exercisable at June 30, 2018	5,462	3.38		6.8	70,069

At June 30, 2018, there were 19.5 million stock options that were vested and expected to vest, with a weighted average exercise price of $7.58 per share, a weighted average remaining contractual term of 8.5 years and an aggregate intrinsic value of $168.5 million.

In the six months ended June 30, 2018, we granted stock options to employees that vest over three to four years and had a weighted average grant date fair value of $6.73 per share. Estimating the fair value of stock options using the Black-Scholes option-pricing model require assumptions as to the fair value of our underlying common stock, the

estimated term of the option, the risk free interest rate, the expected volatility of the price of our common stock, and the expected dividend yield. The fair value of each stock option was estimated on the grant date based on the following assumptions:



	Six Months Ended June 30, 2018
Expected term (in years)	6.3
Expected volatility	41.3% — 43.3%
Risk-free interest rate	2.7% — 2.9%
Expected dividend yield	—

Restricted Stock and Restricted Stock Units

We did not grant any restricted stock awards in the six months ended June 30, 2018.

In the six months ended June 30, 2018, we granted 1.0 million restricted stock units ("RSUs") with a weighted average grant date fair value of $16.21 per share. The grant date fair value was based on the estimated fair value of our common stock on the date of grant. Compensation expense for the RSUs is recognized on a straight-line basis over the requisite service period as long as the performance condition in the form of a specified liquidity event is probable. As of June 30, 2018, the liquidity event was not probable, and no expense was recognized.

Net Loss Per Share Attributable to Common Stockholders

6 Months Ended

Jun. 30, 2018

Earnings Per Share [Abstract]

Net Loss Per Share Attributable to Common Stockholders

The following table sets forth the computation of basic and diluted net loss per share attributable to common stockholders:



	Three Months Ended June 30,						Six Months Ended June 30,
(in thousands, except per share data)	2018			2017			2018			2017
Net loss attributable to common stockholders	$	(17,341	)	$	(9,405	)	$	(33,417	)	$	(18,418	)

Weighted-average shares used to compute net loss per share attributable to common stockholders, basic and diluted	23,750			22,060			23,623			21,661
Net loss per share attributable to common stockholders, basic and diluted	$	(0.73	)	$	(0.43	)	$	(1.41	)	$	(0.85	)

The following potentially dilutive securities have been excluded from the diluted per share calculations because they would have been antidilutive:



	Three and Six Months Ended June 30,
(in thousands)	2018	2017
Redeemable convertible preferred stock	55,386	55,386
Stock options	19,521	13,939
Restricted shares	1,088	1,583
Restricted stock units	971	—
Total	76,966	70,908

Income Taxes	6 Months Ended
Income Taxes	Jun. 30, 2018
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes On December 22, 2017, the Tax Cuts and Jobs Act was enacted into law, which contains several significant changes, including reducing the corporate income tax rate from 35% to 21% effective January 1, 2018, imposing a one-time repatriation tax on accumulated foreign earnings (“transition tax”) and instituting the global intangible low taxed income (“GILTI”) regime and the base erosion anti-abuse tax. We are following the guidance in Securities and Exchange Commission Staff Accounting Bulletin 118, which provides a company with the ability to record provisional amounts based on reasonable estimates that are subject to a measurement period of up to one year. At December 31, 2017, we made a reasonable estimate of the effects on existing deferred tax balances and the one-time transition tax. In the six months ended June 30, 2018, no changes were made to these provisional amounts. We will continue to evaluate the transition tax obligation and application of GILTI and have not yet made an election with regard to GILTI. Subsequent adjustments resulting from additional analysis may be recorded when our analysis is completed, which is expected to be in the second half of 2018.

Geographic Information

6 Months Ended

Jun. 30, 2018

Segment Reporting [Abstract]

Geographic Information

We operate as one operating segment. Our chief executive officer, who is our chief operating decision maker, reviews financial information on a consolidated basis for purposes of making operating decisions, allocating resources, and evaluating financial performance.

Revenue by region, based on the address of the end user as specified in our subscription, license or service agreements, was as follows:



	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2018		2017		2018		2017
Americas	$	45,715	$	33,092	$	88,477	$	63,566
Europe, Middle East and Africa	12,550		7,798		24,216		14,830
Asia Pacific	5,327		3,259		10,006		6,234
Revenue	$	63,592	$	44,149	$	122,699	$	84,630

Customers located in the United States accounted for 67%, 67%, 70% and 71% of revenue in the three and six months ended June 30, 2018 and 2017, respectively. No other country accounted for 10% or more of revenue in the periods presented.

Our property and equipment, net by geographic area is summarized as follows:



(in thousands)	June 30, 2018		December 31, 2017
United States	$	6,950	$	6,581
International	4,290		4,173
Property and equipment, net	$	11,240	$	10,754

Subsequent Events

6 Months Ended

Jun. 30, 2018

Subsequent Events [Abstract]

Subsequent Events

Initial Public Offering

On July 30, 2018, we completed our IPO in which we issued and sold 12,535,000 shares of common stock at a price to the public of $23.00 per share, including 1,635,000 shares of common stock purchased by our underwriters from the full exercise of their over-allotment option. None of our existing stockholders sold shares at the time of our IPO. We received net proceeds of $265 million after deducting underwriting discounts and commissions and other offering expenses.

Upon the completion of our IPO, all 15,847,500 shares of our Series A and 39,538,354 shares of our Series B automatically converted into an aggregate of 55,385,854 shares of our common stock. Our newly-adopted Amended and

Restated Certificate of Incorporation authorizes a total of 500,000,000 shares of common stock and 10,000,000 shares of preferred stock.

The unaudited pro forma condensed consolidated balance sheet below is presented as if our IPO was completed on June 30, 2018. It reflects (1) the issuance of 12,535,000 shares of common stock for estimated net proceeds of $265 million and (2) the conversion of all our Series A and Series B into 55,385,854 shares of common stock:



	June 30, 2018
(in thousands)	Actual			Pro Forma Adjustments			Pro Forma
Assets
Total current assets	$	105,987		$	266,515		$	372,502
Total noncurrent assets	63,371			(2,683		)	60,688
Total assets	$	169,358		$	263,832		$	433,190
Liabilities, redeemable convertible preferred stock and stockholders' (deficit) equity
Total liabilities	$	289,968		$	(1,168	)	$	288,800
Redeemable convertible Series A preferred stock	49,946			(49,946		)	—
Redeemable convertible Series B preferred stock	228,168			(228,168		)	—
Stockholders' (deficit) equity
Common stock	250			679			929
Additional paid-in capital	26,651			542,435			569,086
Accumulated deficit	(425,625		)	—			(425,625		)
Total stockholders' (deficit) equity	(398,724		)	543,114			144,390
Total liabilities, redeemable convertible preferred stock and stockholders' (deficit) equity	$	169,358		$	263,832		$	433,190

Stock-Based Compensation

Compensation expense for our RSUs is recognized on a straight-line basis over the requisite service period as long as the performance condition in the form of a specified liquidity event is deemed probable. In July 2018, in connection with the completion of our IPO, we determined that the performance condition was probable and we recorded cumulative stock-based compensation expense of $0.7 million. The remaining unrecognized stock-based compensation expense of $15.1 million related to the RSUs will be recorded over the remaining requisite service period.

2018 Equity Incentive Plan

In June 2018 our board of directors adopted, and in July 2018 our stockholders approved, our 2018 Equity Incentive Plan ("2018 Plan"), which reserves 9.9 million shares of our common stock that may be issued as stock-based awards. The 2018 Plan became effective upon the execution of the underwriting agreement related to our IPO, at which point no further grants were made under our 2016 Plan. Any shares subject to stock options or other stock awards granted under our 2016 Plan, 2012 Stock Incentive Plan or 2002 Stock Incentive Plan that would have otherwise returned to such plan (such as upon the expiration or termination of a stock award prior to vesting) were added to, and are available for issuance under, our 2018 Plan.

2018 Employee Stock Purchase Plan

In June 2018 our board of directors adopted, and in July 2018 our stockholders approved, our 2018 Employee Stock Purchase Plan ("2018 ESPP"), which reserves 4.0 million shares of our common stock for issuance under the 2018 ESPP. The 2018 ESPP became effective upon the execution of the underwriting agreement related to our IPO.

Business and Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Consolidations	The accompanying consolidated financial statements include the accounts of Tenable Holdings, Inc. and our wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.
Basis of Accounting	The consolidated financial statements have been prepared in conformity with United States generally accepted accounting principles (“GAAP”) for interim financial information. The consolidated statements are unaudited and should be read in conjunction with the consolidated financial statements and related notes included in our final prospectus for our initial public offering ("IPO") dated as of July 25, 2018 and filed with the Securities and Exchange Commission pursuant to Rule 424(b)(4) under the Securities Act of 1933, as amended, on July 26, 2018 ("Prospectus").The consolidated financial statements have been prepared on a basis consistent with the audited annual consolidated financial statements included in the Prospectus and, in the opinion of management, include all adjustments of a normal recurring nature necessary to fairly state our financial position, our results of operations, and cash flows.
Use of Estimates	The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. These estimates include, but are not limited to, the determination of the estimated economic life of perpetual licenses for revenue recognition, the estimated period of benefit for deferred commissions, useful lives of long-lived assets, the valuation of stock-based compensation, including the estimated underlying fair value of our common stock, and the valuation of deferred tax assets. We base these estimates on historical experience and on various other assumptions that we believe to be reasonable. Actual results could differ significantly from these estimates.
Revenue Recognition	Subscription Revenue Subscription arrangements generally have annual or multi-year contractual terms and allow customers to use our software or cloud solutions, including ongoing software updates and the ability to identify the latest cybersecurity vulnerabilities. Revenue is recognized ratably over the subscription term given the critical utility provided by the ongoing updates that are released throughout the contract period. Perpetual License and Maintenance Revenue Our perpetual licenses are generally sold with one or more years of maintenance, which include ongoing software updates and the ongoing ability to identify the latest cybersecurity vulnerabilities. Given the critical utility provided by the ongoing software updates and updated ability to identify network vulnerabilities included in maintenance, we combine the perpetual license and the maintenance into a single performance obligation. Perpetual license arrangements generally contain a material right related to the customer’s ability to renew maintenance at a price that is less than the initial license fee. We apply a practical alternative to allocating a portion of the transaction price to the material right performance obligation and estimate a hypothetical transaction price which includes fees for expected maintenance renewals based on the estimated economic life of the perpetual license contracts. We allocate the transaction price between the cybersecurity subscription provided in the initial contract and the material right related to expected contract renewals based on the hypothetical transaction price. We recognize the amount allocated to the combined license and maintenance performance obligation over the initial contractual period, which is generally one year. We recognize the amount allocated to the material right over the expected maintenance renewal period, which begins at the end of the initial contractual term and is generally four years. We have estimated the five-year economic life of perpetual license contracts based on historical contract attrition, expected renewal periods, the lifecycle of the our technology and other factors. While we believe that the estimates we have made are reasonable and appropriate, different assumptions and estimates could materially impact our reported financial results. Professional Services and Other Revenue Professional services and other revenue is primarily comprised of advisory services and training related to the deployment and optimization of our products. These services do not result in significant customization of our products. Professional services and other revenue is recognized as the services are performed. Contracts with Multiple Performance Obligations In cases where our contracts with customers contain multiple performance obligations, the contract transaction price is allocated on a relative standalone selling price basis. We typically determine standalone selling price based on observable selling prices of our products and services. Variable Consideration We record revenue from sales at the net sales price, which is the transaction price, including estimates of variable consideration when applicable. Certain of our customers may be entitled to receive credits and in certain circumstances, refunds, if service level commitments are not met. We have not historically experienced significant incidents affecting the ability to meet these service level commitments and any estimated refunds related to these agreements have not been material. Sales through our channel network of distributors and resellers are generally discounted as compared to the price that we would sell to an end user. Revenue for sales through our channel network is recorded net of any distributor or reseller margin. Concentrations We sell our products and services through a channel network of distributors and resellers, along with our own sales teams. We derived 87% of revenue through our channel network in each of the three and six months ended June 30, 2018, and 82% and 81% of revenue in the three and six months ended June 30, 2017, respectively. One of our distributors accounted for 46% of revenue in each of the three and six months ended June 30, 2018, compared with 42% of revenue in each of the three and six months ended June 30, 2017. That same distributor accounted for 48% of accounts receivable at June 30, 2018. Contract Balances We generally bill our customers in advance and accounts receivable are recorded when we have the right to invoice the customer. Contract liabilities consist of deferred revenue and include customer billings and payments received in advance of performance under the contract. In the three and six months ended June 30, 2018 and 2017, we recognized revenue of $51.7 million, $99.2 million, $39.6 million and $68.3 million, respectively, that was included in the deferred revenue balance at the beginning of each of the respective periods. Remaining Performance Obligations At June 30, 2018, the future estimated revenue related to unsatisfied performance obligations was $252.0 million, with 71% expected to be recognized as revenue over the succeeding twelve months, and the remainder expected to be recognized over the four years thereafter. Deferred Commissions Sales commissions, including related incremental fringe benefit costs, are considered to be incremental costs of obtaining a contract. Sales commissions on initial sales are not commensurate with sales commissions on contract renewals and therefore are recognized over an estimated period of benefit, which ranges between three and four years for subscription arrangements and five years for perpetual license arrangements. We estimated the period of benefit based on the expected contract term including renewal periods, the lifecycle of our technology, and other factors. Sales commissions on contract renewals are capitalized and amortized ratably over the contract term, with the exception of contracts with renewal periods that are one year or less, in which case the incremental costs are expensed as incurred.We early adopted Accounting Standards Codification (“ASC”) Topic 606, Revenue From Contracts With Customers (“ASC 606”), on January 1, 2017 using the modified retrospective method and applying the guidance to all contracts as of January 1, 2017. The most significant impact of adopting ASC 606 was the deferral of perpetual license revenue over an estimated economic life, including estimated maintenance renewal periods, whereas under the previous guidance we recognized perpetual license revenue upon delivery of the perpetual license. Additionally, the incremental costs of obtaining a contract with a customer are deferred, and will be amortized over a longer estimated period of benefit, whereas under previous guidance we amortized such costs over the contract term. The core principle of ASC 606 is that revenue should be recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve the core principle of ASC 606, we apply the following steps: •Identify the contract with a customer •Identify the performance obligations in the contract •Determine the transaction price •Allocate the transaction price to the performance obligations in the contract •Recognize revenue when or as performance obligations are satisfied We generate revenue from subscription arrangements for software and cloud-based solutions, perpetual licenses, maintenance associated with perpetual licenses, and professional services and other revenue. We begin to recognize revenue when control of our software or services is transferred to the customer, which for sales made through distributors is concurrent with the transfer to the end user.Amortization of deferred contract acquisition costs is included in sales and marketing expense in the consolidated statements of operations and comprehensive loss.
Recent Accounting Pronouncements Not Yet Adopted	In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-02 - Leases (Topic 842), which will require, among other items, lessees to recognize a right-of-use asset and a lease liability for most leases. ASU 2016-02 will be effective for us beginning January 1, 2019, with early adoption permitted. In July 2018, the FASB issued ASU 2018-11, Leases (Topic 842), Targeted Improvements, which provides an adoption method that would allow companies to apply the new guidance to the financial statements in the period of adoption and thereafter, and not apply the new guidance to comparative periods presented. We are evaluating the impact of this standard, including the adoption methodology, to determine the impact on our consolidated financial statements.

Business and Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Summary of revenue

The following table presents a summary of revenue:



	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2018		2017		2018		2017
Subscription revenue	$	48,725	$	30,844	$	93,057	$	58,546
Perpetual license and maintenance revenue	13,412		12,283		26,889		24,272
Professional services and other revenue	1,455		1,022		2,753		1,812
Revenue	$	63,592	$	44,149	$	122,699	$	84,630

Activity of deferred contract costs

The following summarizes the activity of deferred incremental costs of obtaining a contract in the periods presented:



	Three Months Ended June 30,						Six Months Ended June 30,
(in thousands)	2018			2017			2018			2017
Beginning balance	$	50,451		$	31,906		$	50,176		$	30,118
Capitalization of contract acquisition costs	4,700			7,558			9,847			12,162
Amortization of deferred contract acquisition costs	(4,346		)	(3,212		)	(9,218		)	(6,028		)
Ending balance	$	50,805		$	36,252		$	50,805		$	36,252

Property and Equipment, Net (Tables)

6 Months Ended

Jun. 30, 2018

Property, Plant and Equipment [Abstract]

Property and equipment, net

Property and equipment, net consisted of the following:



(in thousands)	June 30, 2018			December 31, 2017
Computer software and equipment	$	11,051		$	9,089
Furniture and fixtures	2,299			2,102
Leasehold improvements	6,928			6,452
Equipment under capital leases	1,831			1,839
Total	22,109			19,482
Less: accumulated depreciation and amortization	(10,869		)	(8,728		)
Property and equipment, net	$	11,240		$	10,754

Commitments and Contingencies (Tables)

6 Months Ended

Jun. 30, 2018

Commitments and Contingencies Disclosure [Abstract]

Minimum future non-cancelable payments for operating leases

Future minimum non-cancelable lease payments for operating and capital leases at June 30, 2018 were as follows:



(in thousands)
Years ending December 31:
2018	$	2,914
2019	5,035
2020	3,909
2021	7,440
2022	6,187
Thereafter	58,301
Total future minimum lease payments	$	83,786

Minimum future non-cancelable payments for capital leases

Future minimum non-cancelable lease payments for operating and capital leases at June 30, 2018 were as follows:



(in thousands)
Years ending December 31:
2018	$	2,914
2019	5,035
2020	3,909
2021	7,440
2022	6,187
Thereafter	58,301
Total future minimum lease payments	$	83,786

Stock-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-based compensation expense

Stock-based compensation expense included in the consolidated statements of operations and comprehensive loss was as follows:



	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2018		2017		2018		2017
Cost of revenue	$	114	$	50	$	191	$	104
Sales and marketing	675		358		1,277		628
Research and development	640		452		1,167		846
General and administrative	1,595		989		2,788		1,897
Total stock-based compensation expense	$	3,024	$	1,849	$	5,423	$	3,475

Stock option activity

A summary of our stock option activity is presented below:



(in thousands, except for per share data and years)	Number of Shares	Weighted Average Exercise Price		Weighted-Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value
Outstanding at December 31, 2017	14,573	$	4.38	8.2	$	77,020
Granted	5,914	14.91
Exercised	(486)	2.08
Forfeited/canceled	(480)	6.23
Outstanding at June 30, 2018	19,521	7.58		8.5	168,503
Exercisable at June 30, 2018	5,462	3.38		6.8	70,069

Valuation assumptions

The fair value of each stock option was estimated on the grant date based on the following assumptions:



	Six Months Ended June 30, 2018
Expected term (in years)	6.3
Expected volatility	41.3% — 43.3%
Risk-free interest rate	2.7% — 2.9%
Expected dividend yield	—

Net Loss Per Share Attributable to Common Stockholders (Tables)

6 Months Ended

Jun. 30, 2018

Earnings Per Share [Abstract]

Computation of basic and diluted net loss per share

The following table sets forth the computation of basic and diluted net loss per share attributable to common stockholders:



	Three Months Ended June 30,						Six Months Ended June 30,
(in thousands, except per share data)	2018			2017			2018			2017
Net loss attributable to common stockholders	$	(17,341	)	$	(9,405	)	$	(33,417	)	$	(18,418	)

Weighted-average shares used to compute net loss per share attributable to common stockholders, basic and diluted	23,750			22,060			23,623			21,661
Net loss per share attributable to common stockholders, basic and diluted	$	(0.73	)	$	(0.43	)	$	(1.41	)	$	(0.85	)

Potentially dilutive securities

The following potentially dilutive securities have been excluded from the diluted per share calculations because they would have been antidilutive:



	Three and Six Months Ended June 30,
(in thousands)	2018	2017
Redeemable convertible preferred stock	55,386	55,386
Stock options	19,521	13,939
Restricted shares	1,088	1,583
Restricted stock units	971	—
Total	76,966	70,908

Geographic Information (Tables)

6 Months Ended

Jun. 30, 2018

Segment Reporting [Abstract]

Revenue by region

Revenue by region, based on the address of the end user as specified in our subscription, license or service agreements, was as follows:



	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2018		2017		2018		2017
Americas	$	45,715	$	33,092	$	88,477	$	63,566
Europe, Middle East and Africa	12,550		7,798		24,216		14,830
Asia Pacific	5,327		3,259		10,006		6,234
Revenue	$	63,592	$	44,149	$	122,699	$	84,630

Property and equipment, net by geographic area

Our property and equipment, net by geographic area is summarized as follows:



(in thousands)	June 30, 2018		December 31, 2017
United States	$	6,950	$	6,581
International	4,290		4,173
Property and equipment, net	$	11,240	$	10,754

Subsequent Events (Tables)

6 Months Ended

Jun. 30, 2018

Subsequent Events [Abstract]

Pro forma condensed consolidated balance sheet



	June 30, 2018
(in thousands)	Actual			Pro Forma Adjustments			Pro Forma
Assets
Total current assets	$	105,987		$	266,515		$	372,502
Total noncurrent assets	63,371			(2,683		)	60,688
Total assets	$	169,358		$	263,832		$	433,190
Liabilities, redeemable convertible preferred stock and stockholders' (deficit) equity
Total liabilities	$	289,968		$	(1,168	)	$	288,800
Redeemable convertible Series A preferred stock	49,946			(49,946		)	—
Redeemable convertible Series B preferred stock	228,168			(228,168		)	—
Stockholders' (deficit) equity
Common stock	250			679			929
Additional paid-in capital	26,651			542,435			569,086
Accumulated deficit	(425,625		)	—			(425,625		)
Total stockholders' (deficit) equity	(398,724		)	543,114			144,390
Total liabilities, redeemable convertible preferred stock and stockholders' (deficit) equity	$	169,358		$	263,832		$	433,190

Business and Summary of Significant Accounting Policies - Initial Public Offering (Details) - IPO - Subsequent event $ / shares in Units, $ in Millions	Jul. 30, 2018 USD ($) $ / shares shares
Subsidiary, Sale of Stock [Line Items]
Stock sold, price per share (in usd per share) \| $ / shares	$ 23.00
Net proceeds from sale of stock \| $	$ 265
Common Stock
Subsidiary, Sale of Stock [Line Items]
Stock sold (in shares)	12,535,000
Issuance of common stock upon conversion of redeemable convertible preferred stock (in shares)	55,385,854

Business and Summary of Significant Accounting Policies - Summary of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Disaggregation of Revenue [Line Items]
Total revenue	$ 63,592	$ 44,149	$ 122,699	$ 84,630
Subscription revenue
Disaggregation of Revenue [Line Items]
Total revenue	48,725	30,844	93,057	58,546
Perpetual license and maintenance revenue
Disaggregation of Revenue [Line Items]
Total revenue	13,412	12,283	26,889	24,272
Professional services and other revenue
Disaggregation of Revenue [Line Items]
Total revenue	$ 1,455	$ 1,022	$ 2,753	$ 1,812

Business and Summary of Significant Accounting Policies - Perpetual License and Maintenance Revenue (Details) - Perpetual license and maintenance revenue	3 Months Ended
	Jun. 30, 2018
Disaggregation of Revenue [Line Items]
Estimated maintenance renewal period	4 years
Economic life of perpetual license contracts	5 years

Business and Summary of Significant Accounting Policies - Concentrations (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
One distributor \| Revenue \| Customer concentration risk
Concentration Risk [Line Items]
Concentration risk, percentage	46.00%	42.00%	46.00%	42.00%
One distributor \| Accounts receivable \| Customer concentration risk
Concentration Risk [Line Items]
Concentration risk, percentage			48.00%
Channel network \| Revenue \| Sales method risk
Concentration Risk [Line Items]
Concentration risk, percentage	87.00%	82.00%	87.00%	81.00%

Business and Summary of Significant Accounting Policies - Contract Balances (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Revenue recognized that was included in deferred revenue	$ 51.7	$ 39.6	$ 99.2	$ 68.3

Business and Summary of Significant Accounting Policies - Remaining Performance Obligations (Details) $ in Millions	Jun. 30, 2018 USD ($)
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Future estimated revenue	$ 252.0
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected recognized percentage over succeeding 12 months	71.00%
Expected timing of satisfaction	4 years

Business and Summary of Significant Accounting Policies - Deferred Commissions (Details)	Jun. 30, 2018
Perpetual license and maintenance revenue
Capitalized Contract Cost [Line Items]
Estimated period of benefit	5 years
Minimum \| Subscription revenue
Capitalized Contract Cost [Line Items]
Estimated period of benefit	3 years
Maximum \| Subscription revenue
Capitalized Contract Cost [Line Items]
Estimated period of benefit	4 years

Business and Summary of Significant Accounting Policies - Activity of Deferred Contract Costs (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Capitalized Contract Cost [Roll Forward]
Beginning balance	$ 50,451	$ 31,906	$ 50,176	$ 30,118
Capitalization of contract acquisition costs	4,700	7,558	9,847	12,162
Amortization of deferred contract acquisition costs	(4,346)	(3,212)	(9,218)	(6,028)
Ending balance	$ 50,805	$ 36,252	$ 50,805	$ 36,252

Business and Summary of Significant Accounting Policies - Construction in Progress (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Operating Leased Assets [Line Items]
Initial term of contract	5 years
Construction in progress	$ 12,253	$ 2,252
Financing obligation	11,803	1,802
Deposit	$ 500	$ 500
Building
Operating Leased Assets [Line Items]
Initial term of contract	12 years
Obligations for operating lease	$ 68,200

Business and Summary of Significant Accounting Policies - Deferred Offering Costs (Details) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Deferred offering costs	$ 2.7	$ 0.0

Property and Equipment, Net - Property and Equipment, Net (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Property, Plant and Equipment [Line Items]
Total	$ 22,109	$ 19,482
Less: accumulated depreciation and amortization	(10,869)	(8,728)
Property and equipment, net	11,240	10,754
Computer software and equipment
Property, Plant and Equipment [Line Items]
Total	11,051	9,089
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Total	2,299	2,102
Leasehold improvements
Property, Plant and Equipment [Line Items]
Total	6,928	6,452
Equipment under capital leases
Property, Plant and Equipment [Line Items]
Total	$ 1,831	$ 1,839

Property and Equipment, Net - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Property, Plant and Equipment [Abstract]
Depreciation and amortization	$ 1.4	$ 0.9	$ 2.7	$ 1.8

Debt (Details) - Line of Credit - Credit Facility - Revolving Credit Facility - USD ($)		6 Months Ended	12 Months Ended
	May 04, 2017	Jun. 30, 2018	Dec. 31, 2017
Line of Credit Facility [Line Items]
Revolving credit facility, maximum borrowing capacity	$ 25,000,000.0
Arrears paid on average unused portion	0.25%
Outstanding balance of credit facility, amount requiring covenant compliance	$ 5,000,000.0
Borrowings outstanding		$ 0	$ 0
LIBOR
Line of Credit Facility [Line Items]
Basis spread on variable rate	2.00%
Prime Rate
Line of Credit Facility [Line Items]
Basis spread on variable rate	1.00%

Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Operating Leased Assets [Line Items]
Initial term of contract	5 years		5 years
Operating lease, rent expense	$ 1.3	$ 0.9	$ 2.4	$ 1.6
Computer and office equipment
Operating Leased Assets [Line Items]
Obligations for capital lease	$ 1.2		$ 1.2		$ 1.5
Building
Operating Leased Assets [Line Items]
Initial term of contract	12 years		12 years
Obligations for operating lease	$ 68.2		$ 68.2

Commitments and Contingencies - Schedule of Future Non-Cancelable Lease Payments (Details) $ in Thousands	Jun. 30, 2018 USD ($)
Commitments and Contingencies Disclosure [Abstract]
2018	$ 2,914
2019	5,035
2020	3,909
2021	7,440
2022	6,187
Thereafter	58,301
Total future minimum lease payments	$ 83,786

Redeemable Convertible Preferred Stock and Common Stock (Details) - USD ($)	1 Months Ended		6 Months Ended
	Dec. 31, 2015	Oct. 31, 2012	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Class of Stock [Line Items]
Transaction costs			$ 1,515,000	$ 0
Repurchase of common stock (in shares)	39,387,322
Series A Redeemable Convertible Preferred Stock
Class of Stock [Line Items]
Stock sold (in shares)	15,847,500	15,847,500
Stock sold, price per share (in usd per share)		$ 3.155067
Gross proceeds from sale of stock		$ 50,000,000
Transaction costs		$ 100,000
Redeemable convertible preferred stock, par value (in usd per share)	$ 0.01		$ 0.01		$ 0.01
Exchange basis (in shares)	1
Redeemable convertible preferred stock, shares authorized (in shares)			15,848,000		15,848,000
Series B Redeemable Convertible Preferred Stock
Class of Stock [Line Items]
Stock sold (in shares)	39,538,354
Stock sold, price per share (in usd per share)	$ 5.81735
Gross proceeds from sale of stock	$ 230,000,000.0
Transaction costs	$ 3,700,000
Redeemable convertible preferred stock, par value (in usd per share)	$ 0.01		$ 0.01		$ 0.01
Redeemable convertible preferred stock, shares authorized (in shares)	42,000,000		42,000,000		42,000,000
Redeemable Convertible Preferred Stock
Class of Stock [Line Items]
Offering price of common stock required for automatic conversion of Redeemable Convertible Preferred Stock (in usd per share)			$ 17.45
Gross proceeds from offering of common stock required for automatic conversion of Redeemable Convertible Preferred Stock			$ 75,000,000
Consent of holders percentage			60.00%

Stock-Based Compensation - Narrative (Details) - USD ($) $ in Millions	1 Months Ended		6 Months Ended
	Jun. 30, 2018	Feb. 28, 2018	Jun. 30, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for grant (in shares)	1,118,311		1,118,311
Unrecognized stock-based compensation expense, outstanding stock options	$ 55.7		$ 55.7
2016 Stock Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock reserved for issuance (in shares)	4,000,000.0	3,000,000.0
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options, stock incentive plans, maximum term			10 years
Estimated remaining weighted average period			3 years 6 months
Stock options \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options, stock incentive plan, vesting period			3 years
Stock options \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options, stock incentive plan, vesting period			4 years
Restricted shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Estimated remaining weighted average period			2 years 6 months
Unrecognized stock-based compensation expense, unvested restricted stock units	$ 4.2		$ 4.2
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Estimated remaining weighted average period			2 years 1 month 6 days
Unrecognized stock-based compensation expense, unvested restricted stock units	$ 15.8		$ 15.8

Stock-Based Compensation - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation	$ 3,024	$ 1,849	$ 5,423	$ 3,475
Cost of revenue
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation	114	50	191	104
Sales and marketing
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation	675	358	1,277	628
Research and development
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation	640	452	1,167	846
General and administrative
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation	$ 1,595	$ 989	$ 2,788	$ 1,897

Stock-Based Compensation - Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Number of Shares
Number of shares outstanding, beginning of period (in shares)	14,573
Number of shares, granted (in shares)	5,914
Number of shares, exercised (in shares)	(486)
Number of shares, forfeited/canceled (in shares)	(480)
Number of shares outstanding, end of period (in shares)	19,521	14,573
Number of shares exercisable (in shares)	5,462
Weighted Average Exercise Price
Weighted average exercise price, outstanding, beginning of period (in USD per share)	$ 4.38
Weighted average exercise price, granted (in USD per share)	14.91
Weighted average exercise price, exercised (in USD per share)	2.08
Weighted average exercise price, forfeited/canceled (in USD per share)	6.23
Weighted average exercise price, outstanding, end of period (in USD per share)	7.58	$ 4.38
Weighted average exercise price, exercisable (in USD per share)	$ 3.38
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Weighted average remaining contractual term (in years), outstanding	8 years 6 months	8 years 2 months 12 days
Weighted average remaining contractual term (in years), exercisable	6 years 9 months 18 days
Aggregate intrinsic value, outstanding, beginning of period	$ 77,020
Aggregate intrinsic value, outstanding, end of period	168,503	$ 77,020
Aggregate intrinsic value, exercisable	$ 70,069

Stock-Based Compensation - Stock Option Activity (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options vested and expected to vest (in shares)	19.5
Weighted average exercise price (in USD per share)	$ 7.58	$ 4.38
Weighted average remaining contractual term (in years), outstanding	8 years 6 months	8 years 2 months 12 days
Aggregate intrinsic value	$ 168,503	$ 77,020
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock units granted, weighted average grant date fair value (in USD per share)	$ 6.73
Stock options \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options, employees, vesting period	3 years
Stock options \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options, employees, vesting period	4 years

Stock-Based Compensation - Fair Value of Stock Options Assumptions (Details) - Stock options	6 Months Ended
	Jun. 30, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)	6 years 3 months 18 days
Expected volatility, minimum	41.30%
Expected volatility, maximum	43.30%
Risk - free interest rate, minimum	2.70%
Risk - free interest rate, maximum	2.90%
Expected dividend yield	0.00%

Stock-Based Compensation - Restricted Stock and Restricted Stock Units (Details)	6 Months Ended
	Jun. 30, 2018 $ / shares shares
Restricted shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock units or awards, granted (in shares)	0
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock units or awards, granted (in shares)	1,000,000.0
Restricted stock units granted, weighted average grant date fair value (in USD per share) \| $ / shares	$ 16.21

Net Loss Per Share Attributable to Common Stockholders - Computation of Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Earnings Per Share [Abstract]
Net loss attributable to common stockholders	$ (17,341)	$ (9,405)	$ (33,417)	$ (18,418)
Weighted-average shares used to compute net loss per share attributable to common stockholders, basic and diluted (in shares)	23,750	22,060	23,623	21,661
Net loss per share attributable to common stockholders, basic and diluted (in usd per share)	$ (0.73)	$ (0.43)	$ (1.41)	$ (0.85)

Net Loss Per Share Attributable to Common Stockholders - Schedule of Potentially Dilutive Securities (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	76,966	70,908	76,966	70,908
Redeemable convertible preferred stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	55,386	55,386	55,386	55,386
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	19,521	13,939	19,521	13,939
Restricted shares
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	1,088	1,583	1,088	1,583
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	971	0	971	0

Geographic Information - Narrative (Details) - segment	3 Months Ended		6 Months Ended
Geographic Information - Narrative (Details) - segment	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Concentration Risk [Line Items]
Number of operating segments			1
United States \| Revenue \| Geographic concentration risk
Concentration Risk [Line Items]
Concentration risk, percentage	67.00%	70.00%	67.00%	71.00%

Geographic Information - Revenue by Geographic Region (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 63,592	$ 44,149	$ 122,699	$ 84,630
Americas
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	45,715	33,092	88,477	63,566
Europe, Middle East and Africa
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	12,550	7,798	24,216	14,830
Asia Pacific
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 5,327	$ 3,259	$ 10,006	$ 6,234

Geographic Information - Property And Equipment, Net By Geographic Area (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Revenues from External Customers and Long-Lived Assets [Line Items]
Property and equipment, net	$ 11,240	$ 10,754
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Property and equipment, net	6,950	6,581
International
Revenues from External Customers and Long-Lived Assets [Line Items]
Property and equipment, net	$ 4,290	$ 4,173

Subsequent Events - Initial Public Offering (Details) - USD ($) $ / shares in Units, $ in Millions	Jul. 30, 2018	Jun. 30, 2018	Dec. 31, 2017
Subsidiary, Sale of Stock [Line Items]
Common stock, authorized (in shares)		93,848,000	93,855,000
Subsequent event
Subsidiary, Sale of Stock [Line Items]
Common stock, authorized (in shares)	500,000,000
Preferred stock, authorized (in shares)	10,000,000
Subsequent event \| IPO
Subsidiary, Sale of Stock [Line Items]
Stock sold, price per share (in usd per share)	$ 23.00
Net proceeds from sale of stock	$ 265
Subsequent event \| Redeemable convertible Series A preferred stock \| IPO
Subsidiary, Sale of Stock [Line Items]
Issuance of common stock upon conversion of redeemable convertible preferred stock (in shares)	15,847,500
Subsequent event \| Redeemable convertible Series B preferred stock \| IPO
Subsidiary, Sale of Stock [Line Items]
Issuance of common stock upon conversion of redeemable convertible preferred stock (in shares)	39,538,354
Common Stock \| Subsequent event \| IPO
Subsidiary, Sale of Stock [Line Items]
Stock sold (in shares)	12,535,000
Issuance of common stock upon conversion of redeemable convertible preferred stock (in shares)	55,385,854
Common Stock \| Subsequent event \| Over-allotment option
Subsidiary, Sale of Stock [Line Items]
Stock sold (in shares)	1,635,000

Subsequent Events - Pro Forma Condensed Consolidated Balance Sheet (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Assets
Total current assets	$ 105,987	$ 111,255
Total noncurrent assets	63,371
Total assets	169,358	164,337
Liabilities, Redeemable Convertible Preferred Stock and Stockholders’ Deficit
Total liabilities	289,968	258,267
Stockholders' (deficit) equity
Common stock	250	246
Additional paid-in capital	26,651	20,676
Accumulated deficit	(425,625)	(392,587)
Total stockholders’ deficit	(398,724)	(371,665)
Total liabilities, redeemable convertible preferred stock and stockholders’ deficit	169,358	164,337
Redeemable convertible Series A preferred stock
Liabilities, Redeemable Convertible Preferred Stock and Stockholders’ Deficit
Redeemable convertible preferred stock	49,946	49,935
Redeemable convertible Series B preferred stock
Liabilities, Redeemable Convertible Preferred Stock and Stockholders’ Deficit
Redeemable convertible preferred stock	228,168	$ 227,800
Pro Forma Adjustments
Assets
Total current assets	266,515
Total noncurrent assets	(2,683)
Total assets	263,832
Liabilities, Redeemable Convertible Preferred Stock and Stockholders’ Deficit
Total liabilities	(1,168)
Stockholders' (deficit) equity
Common stock	679
Additional paid-in capital	542,435
Accumulated deficit	0
Total stockholders’ deficit	543,114
Total liabilities, redeemable convertible preferred stock and stockholders’ deficit	263,832
Pro Forma Adjustments \| Redeemable convertible Series A preferred stock
Liabilities, Redeemable Convertible Preferred Stock and Stockholders’ Deficit
Redeemable convertible preferred stock	(49,946)
Pro Forma Adjustments \| Redeemable convertible Series B preferred stock
Liabilities, Redeemable Convertible Preferred Stock and Stockholders’ Deficit
Redeemable convertible preferred stock	(228,168)
Pro Forma
Assets
Total current assets	372,502
Total noncurrent assets	60,688
Total assets	433,190
Liabilities, Redeemable Convertible Preferred Stock and Stockholders’ Deficit
Total liabilities	288,800
Stockholders' (deficit) equity
Common stock	929
Additional paid-in capital	569,086
Accumulated deficit	(425,625)
Total stockholders’ deficit	144,390
Total liabilities, redeemable convertible preferred stock and stockholders’ deficit	433,190
Pro Forma \| Redeemable convertible Series A preferred stock
Liabilities, Redeemable Convertible Preferred Stock and Stockholders’ Deficit
Redeemable convertible preferred stock	0
Pro Forma \| Redeemable convertible Series B preferred stock
Liabilities, Redeemable Convertible Preferred Stock and Stockholders’ Deficit
Redeemable convertible preferred stock	$ 0

Subsequent Events - Stock-Based Compensation and 2018 Equity Incentive Plan (Details) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
	Jul. 30, 2018	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Jul. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation		$ 3,024	$ 1,849	$ 5,423	$ 3,475
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized stock-based compensation expense, unvested restricted stock units		$ 15,800		$ 15,800
Subsequent event \| Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation	$ 700
Unrecognized stock-based compensation expense, unvested restricted stock units	$ 15,100
Subsequent event \| 2018 Equity Incentive Plan 2018 \| Stock-based awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock reserved for issuance (in shares)						9,900,000

Subsequent Events - Employee Stock Purchase Plan (Details)	Jul. 31, 2018 shares
Subsequent event \| 2018 ESPP \| Employee stock purchase plan
Subsidiary, Sale of Stock [Line Items]
Common stock reserved for issuance (in shares)	4,000,000.0