0001660280-20-000129 | 10-Q | XBRL Viewer

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Cover Page - shares	9 Months Ended
Cover Page - shares	Sep. 30, 2020	Oct. 23, 2020
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2020
Document Transition Report	false
Entity File Number	001-38600
Entity Registrant Name	TENABLE HOLDINGS, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	47-5580846
Entity Address, Address Line One	7021 Columbia Gateway Drive
Entity Address, Address Line Two	Suite 500
Entity Address, City or Town	Columbia
Entity Address, State or Province	MD
Entity Address, Postal Zip Code	21046
City Area Code	410
Local Phone Number	872-0555
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	TENB
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		103,115,371
Entity Central Index Key	0001660280
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3
Amendment Flag	false

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 141,387	$ 74,363
Short-term investments	127,720	137,904
Accounts receivable (net of allowance for doubtful accounts of $314 and $764 at September 30, 2020 and December 31, 2019, respectively)	87,502	94,827
Deferred commissions	30,131	28,499
Prepaid expenses and other current assets	34,236	27,369
Total current assets	420,976	362,962
Property and equipment, net	39,960	26,847
Deferred commissions (net of current portion)	41,753	43,766
Operating lease right-of-use assets	41,430	42,847
Acquired intangible assets, net	13,771	15,508
Goodwill	54,138	54,138
Other assets	11,807	12,544
Total assets	623,835	558,612
Current liabilities:
Accounts payable and accrued expenses	6,248	10,168
Accrued compensation	28,244	36,634
Deferred revenue	296,360	274,348
Operating lease liabilities	6,312	5,209
Other current liabilities	1,126	1,284
Total current liabilities	338,290	327,643
Deferred revenue (net of current portion)	93,842	88,779
Operating lease liabilities (net of current portion)	55,645	40,663
Other liabilities	4,931	2,622
Total liabilities	492,708	459,707
Stockholders’ equity:
Common stock (par value: $0.01; 500,000 shares authorized; 102,755 and 98,587 shares issued and outstanding at September 30, 2020 and December 31, 2019, respectively)	1,028	986
Additional paid-in capital	735,961	662,990
Accumulated other comprehensive income	54	50
Accumulated deficit	(605,916)	(565,121)
Total stockholders’ equity	131,127	98,905
Total liabilities and stockholders’ equity	$ 623,835	$ 558,612

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts	$ 314	$ 764
Common stock, par value (in usd per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	500,000,000	500,000,000
Common stock, shares issued (in shares)	102,755,000	98,587,000
Common stock, shares outstanding (in shares)	102,755,000	98,587,000

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Income Statement [Abstract]
Revenue	$ 112,282	$ 91,852	$ 322,139	$ 257,537
Cost of revenue	19,394	15,245	57,237	42,389
Gross profit	92,888	76,607	264,902	215,148
Operating expenses:
Sales and marketing	53,045	56,699	168,343	165,403
Research and development	25,128	20,763	77,269	64,396
General and administrative	18,180	17,472	54,992	48,595
Total operating expenses	96,353	94,934	300,604	278,394
Loss from operations	(3,465)	(18,327)	(35,702)	(63,246)
Interest (expense) income, net	(12)	1,527	1,177	4,677
Other expense, net	(561)	(240)	(1,819)	(576)
Loss before income taxes	(4,038)	(17,040)	(36,344)	(59,145)
Provision for income taxes	1,820	600	4,451	1,563
Net loss	$ (5,858)	$ (17,640)	$ (40,795)	$ (60,708)
Net loss per share, basic and diluted (in usd per share)	$ (0.06)	$ (0.18)	$ (0.41)	$ (0.64)
Weighted-average shares used to compute net loss per share, basic and diluted (in shares)	101,736	96,709	100,272	95,433

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Statement of Comprehensive Income [Abstract]
Net loss	$ (5,858)	$ (17,640)	$ (40,795)	$ (60,708)
Other comprehensive (loss) income, net of tax:
Unrealized (losses) gains on available-for-sale securities	(95)	(20)	4	60
Other comprehensive (loss) income	(95)	(20)	4	60
Comprehensive loss	$ (5,953)	$ (17,660)	$ (40,791)	$ (60,648)

- Definition

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

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+ Details

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Income	Accumulated Deficit
Balance (in shares) at Dec. 31, 2018		93,126
Balance at Dec. 31, 2018	$ 121,763	$ 931	$ 586,940	$ 0	$ (466,108)
Increase (Decrease) in Stockholders' Deficit [Roll Forward]
Exercise of stock options (in shares)		3,625
Exercise of stock options	15,448	$ 36	15,412
Vesting of restricted stock units (in shares)		432
Vesting of restricted stock units	0	$ 5	(5)
Issuance of common stock under employee stock purchase plan (in shares)		777
Issuance of common stock under employee stock purchase plan	15,129	$ 8	15,121
Stock-based compensation	31,496		31,496
Other comprehensive income (loss)	60			60
Net loss	(60,708)				(60,708)
Balance (in shares) at Sep. 30, 2019		97,960
Balance at Sep. 30, 2019	123,188	$ 980	648,964	60	(526,816)
Balance (in shares) at Jun. 30, 2019		96,808
Balance at Jun. 30, 2019	120,959	$ 968	629,087	80	(509,176)
Increase (Decrease) in Stockholders' Deficit [Roll Forward]
Exercise of stock options (in shares)		383
Exercise of stock options	2,721	$ 4	2,717
Vesting of restricted stock units (in shares)		431
Vesting of restricted stock units	0	$ 5	(5)
Issuance of common stock under employee stock purchase plan (in shares)		338
Issuance of common stock under employee stock purchase plan	6,550	$ 3	6,547
Stock-based compensation	10,618		10,618
Other comprehensive income (loss)	(20)			(20)
Net loss	(17,640)				(17,640)
Balance (in shares) at Sep. 30, 2019		97,960
Balance at Sep. 30, 2019	$ 123,188	$ 980	648,964	60	(526,816)
Balance (in shares) at Dec. 31, 2019	98,587	98,587
Balance at Dec. 31, 2019	$ 98,905	$ 986	662,990	50	(565,121)
Increase (Decrease) in Stockholders' Deficit [Roll Forward]
Exercise of stock options (in shares)	2,366	2,366
Exercise of stock options	$ 15,782	$ 24	15,758
Vesting of restricted stock units (in shares)		1,134
Vesting of restricted stock units	0	$ 11	(11)
Issuance of common stock under employee stock purchase plan (in shares)		668
Issuance of common stock under employee stock purchase plan	13,040	$ 7	13,033
Stock-based compensation	44,191		44,191
Other comprehensive income (loss)	4			4
Net loss	$ (40,795)				(40,795)
Balance (in shares) at Sep. 30, 2020	102,755	102,755
Balance at Sep. 30, 2020	$ 131,127	$ 1,028	735,961	54	(605,916)
Balance (in shares) at Jun. 30, 2020		101,127
Balance at Jun. 30, 2020	111,168	$ 1,011	710,066	149	(600,058)
Increase (Decrease) in Stockholders' Deficit [Roll Forward]
Exercise of stock options (in shares)		772
Exercise of stock options	4,808	$ 8	4,800
Vesting of restricted stock units (in shares)		566
Vesting of restricted stock units	0	$ 6	(6)
Issuance of common stock under employee stock purchase plan (in shares)		290
Issuance of common stock under employee stock purchase plan	5,733	$ 3	5,730
Stock-based compensation	15,371		15,371
Other comprehensive income (loss)	(95)			(95)
Net loss	$ (5,858)				(5,858)
Balance (in shares) at Sep. 30, 2020	102,755	102,755
Balance at Sep. 30, 2020	$ 131,127	$ 1,028	$ 735,961	$ 54	$ (605,916)

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Cash flows from operating activities:
Net loss	$ (40,795)	$ (60,708)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	7,980	4,604
Stock-based compensation	44,001	31,191
Other	1,009	(787)
Changes in operating assets and liabilities:
Accounts receivable	7,774	(13,309)
Prepaid expenses and other current assets	(6,690)	820
Deferred commissions	381	(5,089)
Other assets	17,691	(2,386)
Accounts payable and accrued expenses	(3,873)	3,892
Accrued compensation	(8,390)	(5,350)
Deferred revenue	27,075	39,472
Other current and noncurrent liabilities	135	(22)
Net cash provided by (used in) operating activities	46,298	(7,672)
Cash flows from investing activities:
Purchases of property and equipment	(19,073)	(10,262)
Purchases of short-term investments	(157,557)	(179,703)
Sales and maturities of short-term investments	168,175	174,485
Net cash used in investing activities	(8,455)	(15,480)
Cash flows from financing activities:
Proceeds from loan agreement	2,000	0
Principal payments under finance lease obligations	(11)	(12)
Credit facility issuance costs	(333)	0
Proceeds from stock issued in connection with the employee stock purchase plan	13,040	15,129
Proceeds from the exercise of stock options	15,782	15,448
Net cash provided by financing activities	30,478	30,565
Effect of exchange rate changes on cash and cash equivalents and restricted cash	(1,359)	(1,226)
Net increase in cash and cash equivalents and restricted cash	66,962	6,187
Cash and cash equivalents and restricted cash at beginning of period	74,665	165,378
Cash and cash equivalents and restricted cash at end of period	141,627	171,565
Supplemental disclosure of cash flow information:
Cash paid for interest	254	73
Cash paid for income taxes	4,195	1,507
Supplemental cash flow information related to leases:
Operating cash payments for operating leases	$ 3,916	$ 3,297

Business and Summary of Significant Accounting Policies	9 Months Ended
Business and Summary of Significant Accounting Policies	Sep. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Business and Summary of Significant Accounting Policies	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, measuring and comparing 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 2019 Annual Report on Form 10-K ("10-K") filed with the Securities and Exchange Commission on February 28, 2020. The consolidated financial statements have been prepared on a basis consistent with the audited annual consolidated financial statements included in the 10-K 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 nine months ended September 30, 2020 are not necessarily indicative of the operating results expected for the year ending December 31, 2020 or any other future period. 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, the useful lives of long-lived assets, the fair value of acquired intangible assets, the valuation of stock-based compensation, including the estimated underlying fair value of our common stock prior to our IPO, the incremental borrowing rate for operating leases, 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. Significant Accounting Policies Our significant accounting policies are described in our 10-K. During the nine months ended September 30, 2020, there were no material changes to our significant accounting policies other than those described below. Recently Adopted Accounting Pronouncements We adopted Accounting Standards Update ("ASU") No. 2016-13 — Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, effective January 1, 2020 using the modified retrospective approach. The adoption of this guidance did not have a material impact on our condensed consolidated financial statements. The new standard replaces the previous incurred loss impairment methodology with a methodology that reflects current expected credit losses for financial assets, including trade receivables, which are not measured at fair value, through net income. Under the new standard, our allowance for doubtful accounts reflects our best estimate of expected future credit losses based on various factors, including our historical collection experience, age of accounts receivable balances, current conditions, reasonable and supportable forecasts of future economic conditions, as well as other factors that may impact our ability to collect our accounts receivable. However, given the uncertainty caused by the COVID-19 pandemic and other factors, these estimates may change and future credit losses may differ from our estimates. Additionally, the new standard requires us to evaluate impairments of available-for-sale debt securities due to credit-related and non-credit-related factors, including market risk, and if it is more-likely-than-not that we would have to sell the security before the recovery of the amortized cost basis. Identified credit-related impairments would be recognized as a charge in the statement of operations.

Revenue Recognition

9 Months Ended

Sep. 30, 2020

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Disaggregation of Revenue

The following table presents a summary of revenue:


	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2020		2019		2020		2019
Subscription revenue	$	96,792	$	75,503	$	275,192	$	209,610
Perpetual license and maintenance revenue	12,448		13,797		38,046		40,877
Professional services and other revenue	3,042		2,552		8,901		7,050
Revenue	$	112,282	$	91,852	$	322,139	$	257,537

Concentrations

We sell and market our products and services through our field sales force that works closely with our channel partners, which includes a network of distributors and resellers, in developing sales opportunities. We use a two-tiered channel model whereby we sell our products and services to our distributors, which in turn sell to resellers, which then sell to end-users. We derived 92%, 91%, 91% and 90% of revenue through our channel network in the three months ended September 30, 2020 and 2019 and the nine months ended September 30, 2020 and 2019, respectively. One of our distributors accounted for 43% of revenue in each of the three and nine months ended September 30, 2020 and 2019. That same distributor accounted for 42% and 40% of accounts receivable at September 30, 2020 and December 31, 2019, respectively.

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 months ended September 30, 2020 and 2019 and the nine months ended September 30, 2020 and 2019, we recognized revenue of $102.8 million, $84.6 million, $235.2 million and $184.3 million, respectively, that was included in the deferred revenue balance at the beginning of each of the respective periods.

Remaining Performance Obligations

At September 30, 2020, the future estimated revenue related to unsatisfied performance obligations was $399.7 million, of which approximately 76% is expected to be recognized as revenue over the succeeding twelve months, and the remainder is expected to be recognized over the four years thereafter.

Deferred Commissions

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


	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2020		2019		2020		2019
Beginning balance	$	71,768	$	61,866	$	72,265	$	59,434
Capitalization of contract acquisition costs	8,301		9,612		23,314		24,846
Amortization of deferred contract acquisition costs	(8,185)		(6,955)		(23,695)		(19,757)
Ending balance	$	71,884	$	64,523	$	71,884	$	64,523

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

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-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130558-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

+ Details

Cash and Cash Equivalents and Short-Term Investments

9 Months Ended

Sep. 30, 2020

Cash and Cash Equivalents [Abstract]

Cash and Cash Equivalents and Short-Term Investments

The following tables summarize the amortized cost, unrealized gain and loss and estimated fair value of cash equivalents and short-term investments:


	September 30, 2020
(in thousands)	Amortized Cost		Unrealized Gain		Unrealized Loss		Estimated Fair Value
Cash equivalents:
Money market funds	$	51,409	$	—	$	—	$	51,409

Total cash equivalents	$	51,409	$	—	$	—	$	51,409

Short-term investments:
Commercial paper	$	70,641	$	—	$	—	$	70,641
Corporate bonds	11,741		28		—		11,769
U.S. Treasury and agency obligations	45,284		26		—		45,310
Total short-term investments	$	127,666	$	54	$	—	$	127,720


	December 31, 2019
(in thousands)	Amortized Cost		Unrealized Gain		Unrealized Loss		Estimated Fair Value
Cash equivalents:
Money market funds	$	13,588	$	—	$	—	$	13,588
Commercial paper	8,987		—		—		8,987
Total cash equivalents	$	22,575	$	—	$	—	$	22,575

Short-term investments:
Commercial paper	$	61,371	$	—	$	—	$	61,371
Corporate bonds	23,856		14		(1)		23,869
U.S. Treasury and agency obligations	52,627		38		(1)		52,664
Total short-term investments	$	137,854	$	52	$	(2)	$	137,904

At September 30, 2020, all of our short-term investments had maturities within the next twelve months.

Fair Value Measurements

9 Months Ended

Sep. 30, 2020

Fair Value Disclosures [Abstract]

Fair Value Measurements

We measure certain financial instruments at fair value using a fair value hierarchy. In the hierarchy, assets are classified based on the lowest level inputs used in valuation into the following categories:

•Level 1 — Quoted prices in active markets for identical assets and liabilities;

•Level 2 — Observable inputs including quoted market prices for similar assets and liabilities in active markets, quoted prices for identical assets and liabilities in inactive markets, or inputs that are corroborated by observable market data; and

•Level 3 — Unobservable inputs.

The following tables summarize assets that are measured at fair value on a recurring basis:


	September 30, 2020
(in thousands)	Level 1		Level 2		Level 3		Total
Cash and cash equivalents
Money market funds	$	51,409	$	—	$	—	$	51,409

	$	51,409	$	—	$	—	$	51,409

Short-term investments
Commercial paper	$	—	$	70,641	$	—	$	70,641
Corporate bonds	—		11,769		—		11,769
U.S. Treasury and agency obligations	—		45,310		—		45,310
	$	—	$	127,720	$	—	$	127,720


	December 31, 2019
(in thousands)	Level 1		Level 2		Level 3		Total
Cash and cash equivalents
Money market funds	$	13,588	$	—	$	—	$	13,588
Commercial paper	—		8,987		—		8,987
	$	13,588	$	8,987	$	—	$	22,575

Short-term investments
Commercial paper	$	—	$	61,371	$	—	$	61,371
Corporate bonds	—		23,869		—		23,869
U.S. Treasury and agency obligations	—		52,664		—		52,664
	$	—	$	137,904	$	—	$	137,904

We did not have any liabilities measured and recorded at fair value at September 30, 2020 or December 31, 2019.

- 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

Property and Equipment, Net

9 Months Ended

Sep. 30, 2020

Property, Plant and Equipment [Abstract]

Property and Equipment, Net

Property and equipment, net consisted of the following:


(in thousands)	September 30, 2020		December 31, 2019
Computer software and equipment	$	23,327	$	21,234
Furniture and fixtures	7,023		4,504
Leasehold improvements	29,951		16,953
Right-of-use assets under finance leases	1,571		1,866
Total	61,872		44,557
Less: accumulated depreciation and amortization	(21,912)		(17,710)
Property and equipment, net	$	39,960	$	26,847

Depreciation and amortization related to property and equipment was $2.1 million, $1.4 million, $6.1 million and $4.2 million in the three months ended September 30, 2020 and 2019 and the nine months ended September 30, 2020 and 2019, respectively.

Goodwill and Acquired Intangible Assets

9 Months Ended

Sep. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Acquired Intangible Assets

On December 2, 2019, we acquired Indegy, Ltd and recorded $53.9 million of goodwill and $15.7 million of intangible assets. We have not yet finalized the allocation of the purchase price, which may change as additional information becomes available related to any working capital adjustment and income taxes.

Acquired intangible assets subject to amortization are as follows:


	September 30, 2020						December 31, 2019
(in thousands)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Acquired technology	$	17,325	$	(3,670)	$	13,655	$	17,325	$	(2,009)	$	15,316
Trade name	200		(84)		116		200		(8)		192
	$	17,525	$	(3,754)	$	13,771	$	17,525	$	(2,017)	$	15,508

Amortization of acquired intangible assets was $0.5 million, $0.1 million, $1.7 million and $0.4 million in the three months ended September 30, 2020 and 2019 and the nine months ended September 30, 2020 and 2019, respectively.

At September 30, 2020, estimated future amortization of acquired intangible assets is as follows:


(in thousands)
Year ending December 31,
2020(1)	$	577
2021	2,306
2022	2,214
2023	2,214
2024	2,214
Thereafter	4,246
Total	$	13,771

_______________

(1) Represents the three months ending December 31, 2020.

Leases

9 Months Ended

Sep. 30, 2020

Leases [Abstract]

Leases

We have operating leases for office facilities and finance leases for computer and office equipment. The components of lease expense were as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2020		2019		2020		2019
Operating lease cost	$	2,231	$	1,763	$	7,042	$	3,844

Finance lease cost
Amortization of ROU assets	$	49	$	157	$	235	$	465
Interest on lease liabilities	2		2		5		5
Total finance lease cost	$	51	$	159	$	240	$	470

Rent expense for short-term leases in the three and nine months ended September 30, 2020 and 2019 was not material.

Supplemental information related to leases was as follows:


	September 30, 2020	December 31, 2019
Operating leases
Weighted average remaining lease term	10.2 years	10.0 years
Weighted average discount rate	5.6%	5.8%


	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2020		2019		2020		2019
ROU assets obtained in exchange for lease obligations
Operating leases	$	2,484	$	32,292	$	3,188	$	34,490
Finance leases	—		—		—		11

During the three months ended September 30, 2020, we determined that we would not execute our option to terminate one of our operating leases that we previously assumed would be terminated in 2021. This resulted in recognizing $2.5 million of right-of use assets, with an offsetting increase to the lease liability.

In the three and nine months ended September 30, 2020, we received proceeds from lease incentives of $5.6 million and $14.2 million, respectively. The proceeds from lease incentives received are included with the change in the right-of-use assets and lease liabilities under the Other assets caption in the operating activities section of the statement of cash flows.

Maturities of operating lease liabilities at September 30, 2020 were as follows:


(in thousands)
Year ending December 31,
2020(1)	$	1,211
2021	7,612
2022	7,945
2023	7,632
2024	7,786
Thereafter	51,879
Total lease payments	84,065
Less: Imputed interest	(22,108)

Total	$	61,957

_______________

(1) Represents the three months ending December 31, 2020.

Leases

We have operating leases for office facilities and finance leases for computer and office equipment. The components of lease expense were as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2020		2019		2020		2019
Operating lease cost	$	2,231	$	1,763	$	7,042	$	3,844

Finance lease cost
Amortization of ROU assets	$	49	$	157	$	235	$	465
Interest on lease liabilities	2		2		5		5
Total finance lease cost	$	51	$	159	$	240	$	470

Rent expense for short-term leases in the three and nine months ended September 30, 2020 and 2019 was not material.

Supplemental information related to leases was as follows:


	September 30, 2020	December 31, 2019
Operating leases
Weighted average remaining lease term	10.2 years	10.0 years
Weighted average discount rate	5.6%	5.8%


	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2020		2019		2020		2019
ROU assets obtained in exchange for lease obligations
Operating leases	$	2,484	$	32,292	$	3,188	$	34,490
Finance leases	—		—		—		11

Maturities of operating lease liabilities at September 30, 2020 were as follows:


(in thousands)
Year ending December 31,
2020(1)	$	1,211
2021	7,612
2022	7,945
2023	7,632
2024	7,786
Thereafter	51,879
Total lease payments	84,065
Less: Imputed interest	(22,108)

Total	$	61,957

_______________

(1) Represents the three months ending December 31, 2020.

Debt	9 Months Ended
Debt	Sep. 30, 2020
Debt Disclosure [Abstract]
Debt	Debt In July 2020, we entered into a new $45.0 million senior secured credit facility (“2020 Credit Facility”) with Silicon Valley Bank in connection with the expiration of our $25.0 million revolving credit facility ("2017 Credit Facility"). The 2020 Credit Facility bears interest at either LIBOR plus 2%, with a 1% LIBOR floor, or the base rate plus 1%, and terminates on July 24, 2022. A commitment fee of 0.35% per annum is payable quarterly in arrears based on the unused portion. The 2020 Credit Facility includes a $45.0 million uncommitted expansion, including a $10.0 million sublimit for the issuance of letters of credit and a swingline sub-facility of up to $10.0 million, and has a financial covenant requiring a minimum consolidated quick ratio of at least 1.5:1.0 on the last day of each quarter.In the nine months ended September 30, 2020, there were no amounts outstanding under the 2020 Credit Facility or, prior to its expiration, the 2017 Credit Facility. At September 30, 2020, we were in compliance with the financial covenant and our borrowing capacity was reduced by $5.5 million related to standby letters of credit.

Stock-Based Compensation

9 Months Ended

Sep. 30, 2020

Share-based Payment Arrangement [Abstract]

Stock-Based Compensation

Under the evergreen provision in our 2018 Equity Incentive Plan ("2018 Plan"), in January 2020 we reserved an additional 4,929,361 shares of our common stock for issuance. At September 30, 2020, there were 17,836,584 shares available for grant under the 2018 Plan.

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


	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2020		2019		2020		2019
Cost of revenue	$	826	$	694	$	2,403	$	2,088
Sales and marketing	4,806		3,521		14,677		11,102
Research and development	3,953		2,124		10,794		6,595
General and administrative	5,715		4,160		16,127		11,406
Total stock-based compensation expense	$	15,300	$	10,499	$	44,001	$	31,191

At September 30, 2020, the unrecognized stock-based compensation expense related to unvested restricted stock units was $115.3 million, which is expected to be recognized over an estimated remaining weighted average period of 3.0 years.

At September 30, 2020, the unrecognized stock-based compensation expense related to outstanding stock options was $13.3 million, which is expected to be recognized over an estimated remaining weighted average period of 1.5 years.

At September 30, 2020, the unrecognized stock-based compensation expense related to unvested awards of restricted stock was $0.4 million, which is expected to be recognized over an estimated remaining period of 0.3 years.

Restricted Stock and Restricted Stock Units

A summary of our restricted stock and restricted stock units activity is presented below:


	Restricted Stock			Restricted Stock Units
(in thousands, except for per share data)	Number of Shares	Weighted Average Grant Date Fair Value		Number of Shares	Weighted Average Grant Date Fair Value
Unvested balance at December 31, 2019	495	$	4.25	2,894	$	26.34
Granted	—	—		3,453	28.01
Vested	(297)	4.25		(1,134)	24.78
Forfeited	—	—		(424)	26.70
Unvested balance at September 30, 2020	198	4.25		4,789	27.88

Stock Options

A summary of our stock option activity is presented below:


(in thousands, except for exercise prices and years)	Number of Shares	Weighted Average Exercise Price		Weighted-Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value
Outstanding at December 31, 2019	12,939	$	8.38	7.1	$	201,608
Granted	—	—
Exercised	(2,366)	6.67			55,734
Forfeited/canceled	(541)	10.80
Outstanding at September 30, 2020	10,032	8.65		6.6	291,925
Exercisable at September 30, 2020	6,281	6.62		6.3	195,518

At September 30, 2020, there were 10.0 million stock options that were vested and expected to vest.

2018 Employee Stock Purchase Plan

Under the evergreen provision in our 2018 Employee Stock Purchase Plan ("2018 ESPP"), in January 2020 we reserved an additional 1,478,808 shares of our common stock for issuance. At September 30, 2020, there were 5,431,176 shares reserved for issuance under the 2018 ESPP.

In the nine months ended September 30, 2020, employees purchased 667,719 shares of our common stock at a weighted average price of $19.53 per share, resulting in $13.0 million of cash proceeds.

At September 30, 2020, there was $2.7 million of employee contributions to the 2018 ESPP included in accrued compensation. At September 30, 2020, the unrecognized stock-based compensation expense related to our 2018 ESPP was $5.9 million, which is expected to be recognized over the remaining weighted average period of 0.7 years.

The fair value of the 2018 ESPP purchase rights was estimated on the offering or modification dates using a Black-Scholes option-pricing model and the following assumptions:


	Nine Months Ended September 30,
	2020	2019
Expected term (in years)	0.5 — 2.0	0.5 — 2.0
Expected volatility	41.6% — 60.1%	34.4% — 44.6%
Risk-free interest rate	0.1% — 0.9%	1.5% — 2.5%
Expected dividend yield	—	—

Net Loss Per Share

9 Months Ended

Sep. 30, 2020

Earnings Per Share [Abstract]

Net Loss Per Share

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


	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands, except per share data)	2020		2019		2020		2019
Net loss	$	(5,858)	$	(17,640)	$	(40,795)	$	(60,708)

Weighted-average shares used to compute net loss per share	101,736		96,709		100,272		95,433
Net loss per share, basic and diluted	$	(0.06)	$	(0.18)	$	(0.41)	$	(0.64)

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


	Three and Nine Months Ended September 30,
(in thousands)	2020	2019
Stock options	10,032	13,942
Restricted stock units	4,789	2,860
Restricted shares	198	594
Shares to be issued under the 2018 ESPP	134	64
Total	15,153	17,460

Geographic Information

9 Months Ended

Sep. 30, 2020

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 September 30,				Nine Months Ended September 30,
(in thousands)	2020		2019		2020		2019
Americas	$	74,569	$	62,413	$	215,829	$	177,392
Europe, Middle East and Africa	26,193		19,968		74,385		56,123
Asia Pacific	11,520		9,471		31,925		24,022
Revenue	$	112,282	$	91,852	$	322,139	$	257,537

Customers located in the United States accounted for 60%, 63%, 61% and 64% of revenue in the three months ended September 30, 2020 and 2019 and the nine months ended September 30, 2020 and 2019, 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)	September 30, 2020		December 31, 2019
United States	$	36,126	$	21,464
International	3,834		5,383
Property and equipment, net	$	39,960	$	26,847

- 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/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Section 50
-Paragraph 32
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-Name Accounting Standards Codification
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-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/topic&trid=2134510

+ Details

Business and Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2020
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 2019 Annual Report on Form 10-K ("10-K") filed with the Securities and Exchange Commission on February 28, 2020. The consolidated financial statements have been prepared on a basis consistent with the audited annual consolidated financial statements included in the 10-K 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	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, the useful lives of long-lived assets, the fair value of acquired intangible assets, the valuation of stock-based compensation, including the estimated underlying fair value of our common stock prior to our IPO, the incremental borrowing rate for operating leases, 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.
Recently Adopted Accounting Pronouncements	Recently Adopted Accounting Pronouncements We adopted Accounting Standards Update ("ASU") No. 2016-13 — Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, effective January 1, 2020 using the modified retrospective approach. The adoption of this guidance did not have a material impact on our condensed consolidated financial statements. The new standard replaces the previous incurred loss impairment methodology with a methodology that reflects current expected credit losses for financial assets, including trade receivables, which are not measured at fair value, through net income. Under the new standard, our allowance for doubtful accounts reflects our best estimate of expected future credit losses based on various factors, including our historical collection experience, age of accounts receivable balances, current conditions, reasonable and supportable forecasts of future economic conditions, as well as other factors that may impact our ability to collect our accounts receivable. However, given the uncertainty caused by the COVID-19 pandemic and other factors, these estimates may change and future credit losses may differ from our estimates. Additionally, the new standard requires us to evaluate impairments of available-for-sale debt securities due to credit-related and non-credit-related factors, including market risk, and if it is more-likely-than-not that we would have to sell the security before the recovery of the amortized cost basis. Identified credit-related impairments would be recognized as a charge in the statement of operations.

Revenue Recognition (Tables)

9 Months Ended

Sep. 30, 2020

Revenue from Contract with Customer [Abstract]

Summary of revenue

The following table presents a summary of revenue:


	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2020		2019		2020		2019
Subscription revenue	$	96,792	$	75,503	$	275,192	$	209,610
Perpetual license and maintenance revenue	12,448		13,797		38,046		40,877
Professional services and other revenue	3,042		2,552		8,901		7,050
Revenue	$	112,282	$	91,852	$	322,139	$	257,537

Activity of deferred contract costs

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


	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2020		2019		2020		2019
Beginning balance	$	71,768	$	61,866	$	72,265	$	59,434
Capitalization of contract acquisition costs	8,301		9,612		23,314		24,846
Amortization of deferred contract acquisition costs	(8,185)		(6,955)		(23,695)		(19,757)
Ending balance	$	71,884	$	64,523	$	71,884	$	64,523

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

9 Months Ended

Sep. 30, 2020

Cash and Cash Equivalents [Abstract]

Summary of amortized cost, unrealized gain and loss and estimated fair value

The following tables summarize the amortized cost, unrealized gain and loss and estimated fair value of cash equivalents and short-term investments:


	September 30, 2020
(in thousands)	Amortized Cost		Unrealized Gain		Unrealized Loss		Estimated Fair Value
Cash equivalents:
Money market funds	$	51,409	$	—	$	—	$	51,409

Total cash equivalents	$	51,409	$	—	$	—	$	51,409

Short-term investments:
Commercial paper	$	70,641	$	—	$	—	$	70,641
Corporate bonds	11,741		28		—		11,769
U.S. Treasury and agency obligations	45,284		26		—		45,310
Total short-term investments	$	127,666	$	54	$	—	$	127,720


	December 31, 2019
(in thousands)	Amortized Cost		Unrealized Gain		Unrealized Loss		Estimated Fair Value
Cash equivalents:
Money market funds	$	13,588	$	—	$	—	$	13,588
Commercial paper	8,987		—		—		8,987
Total cash equivalents	$	22,575	$	—	$	—	$	22,575

Short-term investments:
Commercial paper	$	61,371	$	—	$	—	$	61,371
Corporate bonds	23,856		14		(1)		23,869
U.S. Treasury and agency obligations	52,627		38		(1)		52,664
Total short-term investments	$	137,854	$	52	$	(2)	$	137,904

Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2020

Fair Value Disclosures [Abstract]

Schedule of assets measured at fair value on recurring basis

The following tables summarize assets that are measured at fair value on a recurring basis:


	September 30, 2020
(in thousands)	Level 1		Level 2		Level 3		Total
Cash and cash equivalents
Money market funds	$	51,409	$	—	$	—	$	51,409

	$	51,409	$	—	$	—	$	51,409

Short-term investments
Commercial paper	$	—	$	70,641	$	—	$	70,641
Corporate bonds	—		11,769		—		11,769
U.S. Treasury and agency obligations	—		45,310		—		45,310
	$	—	$	127,720	$	—	$	127,720


	December 31, 2019
(in thousands)	Level 1		Level 2		Level 3		Total
Cash and cash equivalents
Money market funds	$	13,588	$	—	$	—	$	13,588
Commercial paper	—		8,987		—		8,987
	$	13,588	$	8,987	$	—	$	22,575

Short-term investments
Commercial paper	$	—	$	61,371	$	—	$	61,371
Corporate bonds	—		23,869		—		23,869
U.S. Treasury and agency obligations	—		52,664		—		52,664
	$	—	$	137,904	$	—	$	137,904

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

+ References + Details

Property and Equipment, Net (Tables)

9 Months Ended

Sep. 30, 2020

Property, Plant and Equipment [Abstract]

Property and equipment, net

Property and equipment, net consisted of the following:


(in thousands)	September 30, 2020		December 31, 2019
Computer software and equipment	$	23,327	$	21,234
Furniture and fixtures	7,023		4,504
Leasehold improvements	29,951		16,953
Right-of-use assets under finance leases	1,571		1,866
Total	61,872		44,557
Less: accumulated depreciation and amortization	(21,912)		(17,710)
Property and equipment, net	$	39,960	$	26,847

Goodwill and Acquired Intangible Assets (Tables)

9 Months Ended

Sep. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of finite-lived intangible assets

Acquired intangible assets subject to amortization are as follows:


	September 30, 2020						December 31, 2019
(in thousands)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Acquired technology	$	17,325	$	(3,670)	$	13,655	$	17,325	$	(2,009)	$	15,316
Trade name	200		(84)		116		200		(8)		192
	$	17,525	$	(3,754)	$	13,771	$	17,525	$	(2,017)	$	15,508

Schedule of finite-lived intangible assets, future amortization expense

At September 30, 2020, estimated future amortization of acquired intangible assets is as follows:


(in thousands)
Year ending December 31,
2020(1)	$	577
2021	2,306
2022	2,214
2023	2,214
2024	2,214
Thereafter	4,246
Total	$	13,771

_______________

(1) Represents the three months ending December 31, 2020.

Leases (Tables)

9 Months Ended

Sep. 30, 2020

Leases [Abstract]

Components of lease expense and supplemental information

The components of lease expense were as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2020		2019		2020		2019
Operating lease cost	$	2,231	$	1,763	$	7,042	$	3,844

Finance lease cost
Amortization of ROU assets	$	49	$	157	$	235	$	465
Interest on lease liabilities	2		2		5		5
Total finance lease cost	$	51	$	159	$	240	$	470

Supplemental information related to leases was as follows:


	September 30, 2020	December 31, 2019
Operating leases
Weighted average remaining lease term	10.2 years	10.0 years
Weighted average discount rate	5.6%	5.8%


	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2020		2019		2020		2019
ROU assets obtained in exchange for lease obligations
Operating leases	$	2,484	$	32,292	$	3,188	$	34,490
Finance leases	—		—		—		11

Schedule of maturities of operating lease liabilities

Maturities of operating lease liabilities at September 30, 2020 were as follows:


(in thousands)
Year ending December 31,
2020(1)	$	1,211
2021	7,612
2022	7,945
2023	7,632
2024	7,786
Thereafter	51,879
Total lease payments	84,065
Less: Imputed interest	(22,108)

Total	$	61,957

_______________

(1) Represents the three months ending December 31, 2020.

Stock-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2020

Share-based Payment Arrangement [Abstract]

Stock-based compensation expense

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


	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2020		2019		2020		2019
Cost of revenue	$	826	$	694	$	2,403	$	2,088
Sales and marketing	4,806		3,521		14,677		11,102
Research and development	3,953		2,124		10,794		6,595
General and administrative	5,715		4,160		16,127		11,406
Total stock-based compensation expense	$	15,300	$	10,499	$	44,001	$	31,191

Summary of restricted stock and restricted stock units

A summary of our restricted stock and restricted stock units activity is presented below:


	Restricted Stock			Restricted Stock Units
(in thousands, except for per share data)	Number of Shares	Weighted Average Grant Date Fair Value		Number of Shares	Weighted Average Grant Date Fair Value
Unvested balance at December 31, 2019	495	$	4.25	2,894	$	26.34
Granted	—	—		3,453	28.01
Vested	(297)	4.25		(1,134)	24.78
Forfeited	—	—		(424)	26.70
Unvested balance at September 30, 2020	198	4.25		4,789	27.88

Stock option activity

A summary of our stock option activity is presented below:


(in thousands, except for exercise prices and years)	Number of Shares	Weighted Average Exercise Price		Weighted-Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value
Outstanding at December 31, 2019	12,939	$	8.38	7.1	$	201,608
Granted	—	—
Exercised	(2,366)	6.67			55,734
Forfeited/canceled	(541)	10.80
Outstanding at September 30, 2020	10,032	8.65		6.6	291,925
Exercisable at September 30, 2020	6,281	6.62		6.3	195,518

ESPP valuation assumptions

The fair value of the 2018 ESPP purchase rights was estimated on the offering or modification dates using a Black-Scholes option-pricing model and the following assumptions:


	Nine Months Ended September 30,
	2020	2019
Expected term (in years)	0.5 — 2.0	0.5 — 2.0
Expected volatility	41.6% — 60.1%	34.4% — 44.6%
Risk-free interest rate	0.1% — 0.9%	1.5% — 2.5%
Expected dividend yield	—	—

Net Loss Per Share (Tables)

9 Months Ended

Sep. 30, 2020

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:


	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands, except per share data)	2020		2019		2020		2019
Net loss	$	(5,858)	$	(17,640)	$	(40,795)	$	(60,708)

Weighted-average shares used to compute net loss per share	101,736		96,709		100,272		95,433
Net loss per share, basic and diluted	$	(0.06)	$	(0.18)	$	(0.41)	$	(0.64)

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 Nine Months Ended September 30,
(in thousands)	2020	2019
Stock options	10,032	13,942
Restricted stock units	4,789	2,860
Restricted shares	198	594
Shares to be issued under the 2018 ESPP	134	64
Total	15,153	17,460

Geographic Information (Tables)

9 Months Ended

Sep. 30, 2020

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 September 30,				Nine Months Ended September 30,
(in thousands)	2020		2019		2020		2019
Americas	$	74,569	$	62,413	$	215,829	$	177,392
Europe, Middle East and Africa	26,193		19,968		74,385		56,123
Asia Pacific	11,520		9,471		31,925		24,022
Revenue	$	112,282	$	91,852	$	322,139	$	257,537

Property and equipment, net by geographic area

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


(in thousands)	September 30, 2020		December 31, 2019
United States	$	36,126	$	21,464
International	3,834		5,383
Property and equipment, net	$	39,960	$	26,847

Revenue Recognition - Summary of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Disaggregation of Revenue [Line Items]
Revenue	$ 112,282	$ 91,852	$ 322,139	$ 257,537
Subscription revenue
Disaggregation of Revenue [Line Items]
Revenue	96,792	75,503	275,192	209,610
Perpetual license and maintenance revenue
Disaggregation of Revenue [Line Items]
Revenue	12,448	13,797	38,046	40,877
Professional services and other revenue
Disaggregation of Revenue [Line Items]
Revenue	$ 3,042	$ 2,552	$ 8,901	$ 7,050

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8906-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 4
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130543-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130545-203045

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 924
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 11.L)
-URI http://asc.fasb.org/extlink&oid=6472922&loc=d3e499488-122856

+ Details

Revenue Recognition - Concentrations (Details)	3 Months Ended		9 Months Ended		12 Months Ended
Revenue Recognition - Concentrations (Details)	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
One distributor \| Revenue \| Customer concentration risk
Concentration Risk [Line Items]
Concentration risk, percentage	43.00%	43.00%	43.00%	43.00%
One distributor \| Accounts receivable \| Customer concentration risk
Concentration Risk [Line Items]
Concentration risk, percentage			42.00%		40.00%
Channel network \| Revenue \| Sales method risk
Concentration Risk [Line Items]
Concentration risk, percentage	92.00%	91.00%	91.00%	90.00%

Revenue Recognition - Contract Balances (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Revenue from Contract with Customer [Abstract]
Revenue recognized that was included in deferred revenue	$ 102.8	$ 84.6	$ 235.2	$ 184.3

Revenue Recognition - Remaining Performance Obligations (Details) $ in Millions	Sep. 30, 2020 USD ($)
Revenue from Contract with Customer [Abstract]
Future estimated revenue	$ 399.7
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-10-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected recognized percentage over succeeding 12 months	76.00%
Expected timing of satisfaction	4 years

Revenue Recognition - Activity of Deferred Contract Costs (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Capitalized Contract Cost [Roll Forward]
Beginning balance	$ 71,768	$ 61,866	$ 72,265	$ 59,434
Capitalization of contract acquisition costs	8,301	9,612	23,314	24,846
Amortization of deferred contract acquisition costs	(8,185)	(6,955)	(23,695)	(19,757)
Ending balance	$ 71,884	$ 64,523	$ 71,884	$ 64,523

Cash and Cash Equivalents and Short-Term Investments - Summary of Amortized Cost, Unrealized Gain and Loss and Estimated Fair Value (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Cash and Cash Equivalents [Line Items]
Amortized Cost	$ 127,666	$ 137,854
Unrealized Gain	54	52
Unrealized Loss	0	(2)
Estimated Fair Value	127,720	137,904
Commercial paper
Cash and Cash Equivalents [Line Items]
Amortized Cost	70,641	61,371
Unrealized Gain	0	0
Unrealized Loss	0	0
Estimated Fair Value	70,641	61,371
Corporate bonds
Cash and Cash Equivalents [Line Items]
Amortized Cost	11,741	23,856
Unrealized Gain	28	14
Unrealized Loss	0	(1)
Estimated Fair Value	11,769	23,869
U.S. Treasury and agency obligations
Cash and Cash Equivalents [Line Items]
Amortized Cost	45,284	52,627
Unrealized Gain	26	38
Unrealized Loss	0	(1)
Estimated Fair Value	45,310	52,664
Money market funds
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents	51,409	13,588
Commercial paper
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents		8,987
Cash equivalents
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents	$ 51,409	$ 22,575

Fair Value Measurements (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	$ 127,720	$ 137,904
Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	70,641	61,371
Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	11,769	23,869
U.S. Treasury and agency obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	45,310	52,664
Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	51,409	13,588
Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents		8,987
Cash equivalents
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	51,409	22,575
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	0	0
Level 1 \| Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	0	0
Level 1 \| Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	0	0
Level 1 \| U.S. Treasury and agency obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	0	0
Level 1 \| Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	51,409	13,588
Level 1 \| Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents		0
Level 1 \| Cash equivalents
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	51,409	13,588
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	127,720	137,904
Level 2 \| Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	70,641	61,371
Level 2 \| Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	11,769	23,869
Level 2 \| U.S. Treasury and agency obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	45,310	52,664
Level 2 \| Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	0	0
Level 2 \| Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents		8,987
Level 2 \| Cash equivalents
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	0	8,987
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	0	0
Level 3 \| Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	0	0
Level 3 \| Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	0	0
Level 3 \| U.S. Treasury and agency obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	0	0
Level 3 \| Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	0	0
Level 3 \| Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents		0
Level 3 \| Cash equivalents
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	$ 0	$ 0

Property and Equipment, Net (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Property, Plant and Equipment [Line Items]
Total	$ 61,872		$ 61,872		$ 44,557
Less: accumulated depreciation and amortization	(21,912)		(21,912)		(17,710)
Property and equipment, net	39,960		39,960		26,847
Depreciation and amortization	2,100	$ 1,400	6,100	$ 4,200
Computer software and equipment
Property, Plant and Equipment [Line Items]
Total	23,327		23,327		21,234
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Total	7,023		7,023		4,504
Leasehold improvements
Property, Plant and Equipment [Line Items]
Total	29,951		29,951		16,953
Right-of-use assets under finance leases
Property, Plant and Equipment [Line Items]
Total	$ 1,571		$ 1,571		$ 1,866

Goodwill and Acquired Intangible Assets - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019	Dec. 02, 2019
Finite-Lived Intangible Assets [Line Items]
Goodwill	$ 54,138		$ 54,138		$ 54,138
Amortization of acquired intangible assets	$ 500	$ 100	$ 1,700	$ 400
Indegy, Ltd
Finite-Lived Intangible Assets [Line Items]
Goodwill						$ 53,900
Intangible assets acquired						$ 15,700

Goodwill and Acquired Intangible Assets - Schedule of Finite-lived Intangible Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 17,525	$ 17,525
Accumulated Amortization	(3,754)	(2,017)
Total	13,771	15,508
Acquired technology
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	17,325	17,325
Accumulated Amortization	(3,670)	(2,009)
Total	13,655	15,316
Trade name
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	200	200
Accumulated Amortization	(84)	(8)
Total	$ 116	$ 192

Goodwill and Acquired Intangible Assets - Schedule of Future Amortization of Intangible Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
2020	$ 577
2021	2,306
2022	2,214
2023	2,214
2024	2,214
Thereafter	4,246
Total	$ 13,771	$ 15,508

Leases - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Leases - Narrative (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Leases [Abstract]
Right-of-use asset obtained in exchange for additional lease obligation	$ 2,484	$ 32,292	$ 3,188	$ 34,490
Proceeds from lease incentives	$ 5,600		$ 14,200

Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Leases [Abstract]
Operating lease cost	$ 2,231	$ 1,763	$ 7,042	$ 3,844
Finance lease cost
Amortization of ROU assets	49	157	235	465
Interest on lease liabilities	2	2	5	5
Total finance lease cost	$ 51	$ 159	$ 240	$ 470

Leases - Supplemental Information Related to Leases (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Operating leases
Weighted average remaining lease term	10 years 2 months 12 days		10 years 2 months 12 days		10 years
Weighted average discount rate	5.60%		5.60%		5.80%
ROU assets obtained in exchange for lease obligations
Operating leases	$ 2,484	$ 32,292	$ 3,188	$ 34,490
Finance leases	$ 0	$ 0	$ 0	$ 11

Leases - Operating Lease Liability Maturities (Details) $ in Thousands	Sep. 30, 2020 USD ($)
Leases [Abstract]
2020	$ 1,211
2021	7,612
2022	7,945
2023	7,632
2024	7,786
Thereafter	51,879
Total lease payments	84,065
Less: Imputed interest	(22,108)
Total	$ 61,957

Debt (Details)		9 Months Ended
Debt (Details)	Jul. 24, 2020 USD ($)	Sep. 30, 2020 USD ($)
2020 Credit Facility \| Revolving Credit Facility
Line of Credit Facility [Line Items]
Credit facility, maximum borrowing capacity	$ 45,000,000.0
Commitment fee percentage	0.35%
Uncommitted expansion	$ 45,000,000.0
Uncommitted expansion, minimum quick ratio covenant	1.5
2020 Credit Facility \| Letter of Credit
Line of Credit Facility [Line Items]
Credit facility, maximum borrowing capacity	$ 10,000,000.0
2020 Credit Facility \| Bridge Loan
Line of Credit Facility [Line Items]
Credit facility, maximum borrowing capacity	$ 10,000,000.0
LIBOR \| 2020 Credit Facility \| Revolving Credit Facility
Line of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate	2.00%
Debt instrument, basis spread on variable rate, variable rate floor	1.00%
Adjusted Base Rate \| 2020 Credit Facility \| Revolving Credit Facility
Line of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate	1.00%
Silicon Valley Bank \| Revolving Credit Facility
Line of Credit Facility [Line Items]
Credit facility, maximum borrowing capacity	$ 25,000,000.0
Proceeds from line of credit		$ 0
Line of credit facility, decrease in borrowing capacity		$ 5,500,000

Stock-Based Compensation - Additional Information (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2020	Jan. 01, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized stock-based compensation expense, outstanding stock options	$ 13.3
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized stock-based compensation expense, unvested restricted stock or RSUs	$ 115.3
Estimated remaining weighted average period	3 years
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Estimated remaining weighted average period	1 year 6 months
Restricted shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized stock-based compensation expense, unvested restricted stock or RSUs	$ 0.4
Estimated remaining weighted average period	3 months 18 days
2018 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock reserved for issuance (in shares)		4,929,361
Shares available for grant (in shares)	17,836,584

Stock-Based Compensation - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation	$ 15,300	$ 10,499	$ 44,001	$ 31,191
Cost of revenue
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation	826	694	2,403	2,088
Sales and marketing
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation	4,806	3,521	14,677	11,102
Research and development
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation	3,953	2,124	10,794	6,595
General and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation	$ 5,715	$ 4,160	$ 16,127	$ 11,406

Stock-Based Compensation - Restricted Stock and Restricted Stock Units (Details) shares in Thousands	9 Months Ended
	Sep. 30, 2020 $ / shares shares
Restricted shares
Number of Shares
Number of shares unvested, beginning of period (in shares) \| shares	495
Number of shares, granted (in shares) \| shares	0
Number of shares, vested (in shares) \| shares	(297)
Number of shares, forfeited (in shares) \| shares	0
Number of shares unvested, end of period (in shares) \| shares	198
Weighted Average Grant Date Fair Value
Weighted average grant date fair value, beginning of period (in usd per share) \| $ / shares	$ 4.25
Weighted average grant date fair value, granted (in usd per share) \| $ / shares	0
Weighted average grant date fair value, vested (in usd per share) \| $ / shares	4.25
Weighted average grant date fair value, forfeited (in usd per share) \| $ / shares	0
Weighted average grant date fair value, end of period (in usd per share) \| $ / shares	$ 4.25
Restricted stock units
Number of Shares
Number of shares unvested, beginning of period (in shares) \| shares	2,894
Number of shares, granted (in shares) \| shares	3,453
Number of shares, vested (in shares) \| shares	(1,134)
Number of shares, forfeited (in shares) \| shares	(424)
Number of shares unvested, end of period (in shares) \| shares	4,789
Weighted Average Grant Date Fair Value
Weighted average grant date fair value, beginning of period (in usd per share) \| $ / shares	$ 26.34
Weighted average grant date fair value, granted (in usd per share) \| $ / shares	28.01
Weighted average grant date fair value, vested (in usd per share) \| $ / shares	24.78
Weighted average grant date fair value, forfeited (in usd per share) \| $ / shares	26.70
Weighted average grant date fair value, end of period (in usd per share) \| $ / shares	$ 27.88

Stock-Based Compensation - Stock Option Activity (Details) $ / shares in Units, shares in Thousands, $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2020 USD ($) $ / shares shares	Dec. 31, 2019 USD ($) $ / shares shares
Number of Shares
Number of shares outstanding, beginning of period (in shares) \| shares	12,939
Number of shares, granted (in shares) \| shares	0
Number of shares, exercised (in shares) \| shares	(2,366)
Number of shares, forfeited/canceled (in shares) \| shares	(541)
Number of shares outstanding, end of period (in shares) \| shares	10,032	12,939
Number of shares exercisable (in shares) \| shares	6,281
Weighted Average Exercise Price
Weighted average exercise price, outstanding, beginning of period (in usd per share) \| $ / shares	$ 8.38
Weighted average exercise price, granted (in usd per share) \| $ / shares	0
Weighted average exercise price, exercised (in usd per share) \| $ / shares	6.67
Weighted average exercise price, forfeited/canceled (in usd per share) \| $ / shares	10.80
Weighted average exercise price, outstanding, end of period (in usd per share) \| $ / shares	8.65	$ 8.38
Weighted average exercise price, exercisable (in usd per share) \| $ / shares	$ 6.62
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Weighted average remaining contractual term (in years), outstanding	6 years 7 months 6 days	7 years 1 month 6 days
Weighted average remaining contractual term (in years), exercisable	6 years 3 months 18 days
Aggregate intrinsic value, outstanding \| $	$ 291,925	$ 201,608
Aggregate intrinsic value, exercised \| $	55,734
Aggregate intrinsic value, exercisable \| $	$ 195,518

Stock-Based Compensation - Stock Option Activity (Narrative) (Details) shares in Millions	Sep. 30, 2020 shares
Share-based Payment Arrangement [Abstract]
Stock options vested and expected to vest (in shares)	10.0

Stock-Based Compensation - Employee Stock Purchase Plan (Details) - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Jan. 01, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Proceeds from stock issued in connection with the employee stock purchase plan	$ 13,040	$ 15,129
Employee stock purchase plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock reserved for issuance (in shares)	5,431,176		1,478,808
Common stock purchased (in shares)	667,719
Share price (in usd per share)	$ 19.53
Employee contributions	$ 2,700
Unrecognized stock-based compensation expense	$ 5,900
Remaining offering period	8 months 12 days

Stock-Based Compensation - Fair Value Assumptions (Details) - Employee stock purchase plan	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility, minimum	41.60%	34.40%
Expected volatility, maximum	60.10%	44.60%
Risk-free interest rate, minimum	0.10%	1.50%
Risk-free interest rate, maximum	0.90%	2.50%
Expected dividend yield	0.00%	0.00%
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)	6 months	6 months
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)	2 years	2 years

Net Loss Per Share - Computation of Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Earnings Per Share [Abstract]
Net loss	$ (5,858)	$ (17,640)	$ (40,795)	$ (60,708)
Weighted-average shares used to compute net loss per share (in shares)	101,736	96,709	100,272	95,433
Net loss per share, basic and diluted (in usd per share)	$ (0.06)	$ (0.18)	$ (0.41)	$ (0.64)

- 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 - Schedule of Potentially Dilutive Securities (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	15,153	17,460	15,153	17,460
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	10,032	13,942	10,032	13,942
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)	4,789	2,860	4,789	2,860
Restricted shares
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	198	594	198	594
ESPP
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	134	64	134	64

Geographic Information - Narrative (Details) - segment	3 Months Ended		9 Months Ended
Geographic Information - Narrative (Details) - segment	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Segment Reporting [Abstract]
Number of operating segments			1
United States \| Revenue \| Geographic concentration risk
Concentration Risk [Line Items]
Concentration risk, percentage	60.00%	63.00%	61.00%	64.00%

Geographic Information - Revenue by Geographic Region (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 112,282	$ 91,852	$ 322,139	$ 257,537
Americas
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	74,569	62,413	215,829	177,392
Europe, Middle East and Africa
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	26,193	19,968	74,385	56,123
Asia Pacific
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 11,520	$ 9,471	$ 31,925	$ 24,022

- Definition

+ References

+ Details

Geographic Information - Property And Equipment, Net By Geographic Area (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Revenues from External Customers and Long-Lived Assets [Line Items]
Property and equipment, net	$ 39,960	$ 26,847
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Property and equipment, net	36,126	21,464
International
Revenues from External Customers and Long-Lived Assets [Line Items]
Property and equipment, net	$ 3,834	$ 5,383