Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | ||||||||||
(Address of principal executive offices) | (Zip Code) |
(Registrant’s telephone number, including area code) |
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||||||||
Large accelerated filer | ☐ | ☒ | ||||||||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ||||||||||||||||||
Emerging growth company |
Page | |||||
ServiceSource International, Inc. | |||||||||||
Consolidated Balance Sheets | |||||||||||
(in thousands, except per share and par value amounts) | |||||||||||
(unaudited) | |||||||||||
September 30, 2020 | December 31, 2019 | ||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Accounts receivable, net | |||||||||||
Prepaid expenses and other | |||||||||||
Total current assets | |||||||||||
Property and equipment, net | |||||||||||
ROU assets | |||||||||||
Contract acquisition costs | |||||||||||
Goodwill | |||||||||||
Other assets | |||||||||||
Total assets | $ | $ | |||||||||
Liabilities and Stockholders’ Equity | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | $ | |||||||||
Accrued expenses | |||||||||||
Accrued compensation and benefits | |||||||||||
Revolver | |||||||||||
Operating lease liabilities | |||||||||||
Other current liabilities | |||||||||||
Total current liabilities | |||||||||||
Operating lease liabilities, net of current portion | |||||||||||
Other long-term liabilities | |||||||||||
Total liabilities | |||||||||||
Commitments and contingencies (Note 10) | |||||||||||
Stockholders’ equity: | |||||||||||
Preferred stock, $ | |||||||||||
Common stock; $ | |||||||||||
Treasury stock | ( | ( | |||||||||
Additional paid-in capital | |||||||||||
Accumulated deficit | ( | ( | |||||||||
Accumulated other comprehensive income | |||||||||||
Total stockholders’ equity | |||||||||||
Total liabilities and stockholders’ equity | $ | $ |
ServiceSource International, Inc. | |||||||||||||||||||||||
Consolidated Statements of Operations | |||||||||||||||||||||||
(in thousands, except per share amounts) | |||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Net revenue | $ | $ | $ | $ | |||||||||||||||||||
Cost of revenue | |||||||||||||||||||||||
Gross profit | |||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Sales and marketing | |||||||||||||||||||||||
Research and development | |||||||||||||||||||||||
General and administrative | |||||||||||||||||||||||
Restructuring and other related costs | |||||||||||||||||||||||
Total operating expenses | |||||||||||||||||||||||
Loss from operations | ( | ( | ( | ( | |||||||||||||||||||
Interest and other expense, net | ( | ( | ( | ( | |||||||||||||||||||
Loss before provision for income taxes | ( | ( | ( | ( | |||||||||||||||||||
Provision for income tax benefit (expense) | ( | ( | ( | ||||||||||||||||||||
Net loss | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Net loss per common share: | |||||||||||||||||||||||
Basic and diluted | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Weighted-average common shares outstanding: | |||||||||||||||||||||||
Basic and diluted |
ServiceSource International, Inc. | |||||||||||||||||||||||
Consolidated Statements of Comprehensive Loss | |||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Net loss | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Other comprehensive income (loss) | |||||||||||||||||||||||
Foreign currency translation adjustments | ( | ||||||||||||||||||||||
Other comprehensive income (loss) | ( | ||||||||||||||||||||||
Comprehensive loss | $ | ( | $ | ( | $ | ( | $ | ( |
ServiceSource International, Inc. | |||||||||||||||||||||||||||||||||||||||||||||||
Consolidated Statements of Stockholders' Equity | |||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Treasury Shares/Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income | Total | ||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2020 | $ | ( | $ | ( | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Issuance of common stock, RSUs | — | — | ( | — | — | ||||||||||||||||||||||||||||||||||||||||||
Proceeds from the exercise of stock options and ESPP | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2020 | $ | ( | $ | ( | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Issuance of common stock, RSUs | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2020 | $ | ( | $ | ( | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Issuance of common stock, RSUs | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Proceeds from the exercise of stock options and ESPP | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2020 | $ | ( | $ | ( | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||
Common Stock | Treasury Shares/Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income | Total | ||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2019 | $ | ( | $ | ( | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Issuance of common stock, RSUs | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Proceeds from the exercise of stock options and ESPP | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2019 | $ | ( | $ | ( | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Issuance of common stock, RSUs | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Net cash paid for payroll taxes on restricted stock unit releases | — | — | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2019 | $ | ( | $ | ( | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Issuance of common stock, RSUs | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Proceeds from the exercise of stock options and employee stock purchase plan | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2019 | $ | ( | $ | ( | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||
ServiceSource International, Inc. | |||||||||||
Consolidated Statements of Cash Flows | |||||||||||
(in thousands) | |||||||||||
(unaudited) | |||||||||||
For the Nine Months Ended September 30, | |||||||||||
2020 | 2019 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net loss | $ | ( | $ | ( | |||||||
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Amortization of contract acquisition costs | |||||||||||
Amortization of ROU assets | |||||||||||
Stock-based compensation | |||||||||||
Restructuring and other related costs | |||||||||||
Other | ( | ||||||||||
Net changes in operating assets and liabilities: | |||||||||||
Accounts receivable, net | |||||||||||
Prepaid expenses and other assets | |||||||||||
Contract acquisition costs | ( | ( | |||||||||
Accounts payable | ( | ( | |||||||||
Accrued compensation and benefits | ( | ||||||||||
Operating lease liabilities | ( | ( | |||||||||
Accrued expenses | ( | ||||||||||
Other liabilities | ( | ( | |||||||||
Net cash provided by operating activities | |||||||||||
Cash flows from investing activities: | |||||||||||
Purchases of property and equipment | ( | ( | |||||||||
Net cash used in investing activities | ( | ( | |||||||||
Cash flows from financing activities: | |||||||||||
Repayment on finance lease obligations | ( | ( | |||||||||
Proceeds from Revolver | |||||||||||
Repayment of Revolver | ( | ||||||||||
Proceeds from issuance of common stock | |||||||||||
Payments related to minimum tax withholdings on RSU releases | ( | ||||||||||
Net cash provided by (used in) financing activities | ( | ||||||||||
Effect of exchange rate changes on cash and cash equivalents and restricted cash | ( | ||||||||||
Net change in cash and cash equivalents and restricted cash | ( | ||||||||||
Cash and cash equivalents and restricted cash, beginning of period | |||||||||||
Cash and cash equivalents and restricted cash, end of period | $ | $ | |||||||||
Supplemental disclosures of cash flow information: | |||||||||||
Cash paid for interest | $ | $ | |||||||||
Supplemental disclosures of non-cash activities: | |||||||||||
Purchases of property and equipment accrued in accounts payable and accrued expenses | $ | $ | |||||||||
ROU assets obtained in exchange for new lease liabilities | $ | $ | |||||||||
Increase in operating lease liabilities related to the adoption of ASC 842 | $ | $ | |||||||||
Increase in ROU assets related to the adoption of ASC 842 | $ | $ | |||||||||
Decrease in prepaids and other assets related to the adoption of ASC 842 | $ | $ | ( | ||||||||
Decrease in other liabilities related to the adoption of ASC 842 | $ | $ | ( |
September 30, 2020 | December 31, 2019 | ||||||||||
(in thousands) | |||||||||||
Level 1: | |||||||||||
Cash | $ | $ | |||||||||
Money market mutual funds | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Restricted cash | $ | $ |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Operating lease cost | $ | $ | $ | $ | |||||||||||||||||||
Finance lease cost: | |||||||||||||||||||||||
Amortization of leased assets | |||||||||||||||||||||||
Interest on lease liabilities | |||||||||||||||||||||||
Total finance lease cost | |||||||||||||||||||||||
Sublease income | ( | ( | ( | ( | |||||||||||||||||||
Net lease cost | $ | $ | $ | $ |
September 30, 2020 | December 31, 2019 | ||||||||||
(in thousands) | |||||||||||
Operating leases: | |||||||||||
ROU assets | $ | $ | |||||||||
Operating lease liabilities | $ | $ | |||||||||
Operating lease liabilities, net of current portion | |||||||||||
Total operating lease liabilities | $ | $ | |||||||||
Finance leases: | |||||||||||
Property and equipment | $ | $ | |||||||||
Accumulated depreciation | ( | ( | |||||||||
Property and equipment, net | $ | $ | |||||||||
$ | $ | ||||||||||
Total finance lease liabilities | $ | $ |
For the Nine Months Ended September 30, | |||||||||||||||||
2020 | 2019 | ||||||||||||||||
Weighted-average remaining lease term (in years): | |||||||||||||||||
Operating lease | |||||||||||||||||
Finance lease | |||||||||||||||||
Weighted-average discount rate: | |||||||||||||||||
Operating lease | % | % | |||||||||||||||
Finance lease | % | % |
Operating Leases | Operating Sublease | Finance Leases | Total | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Remainder of 2020 | $ | $ | ( | $ | $ | ||||||||||||||||||
2021 | ( | ||||||||||||||||||||||
2022 | ( | ||||||||||||||||||||||
2023 | ( | ||||||||||||||||||||||
2024 | |||||||||||||||||||||||
Thereafter | |||||||||||||||||||||||
Total lease payments | ( | ||||||||||||||||||||||
Less: interest | ( | — | ( | ( | |||||||||||||||||||
Less: tenant improvement reimbursements(1) | ( | — | ( | ||||||||||||||||||||
Total | $ | $ | ( | $ | $ |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Selling services | $ | $ | $ | $ | |||||||||||||||||||
Professional services | |||||||||||||||||||||||
Total revenue | $ | $ | $ | $ |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
NALA | $ | $ | $ | $ | |||||||||||||||||||
EMEA | |||||||||||||||||||||||
APJ | |||||||||||||||||||||||
Total revenue | $ | $ | $ | $ |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Variable consideration | $ | $ | $ | $ | |||||||||||||||||||
Fixed consideration | |||||||||||||||||||||||
Total revenue | $ | $ | $ | $ |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Cost of revenue | $ | $ | $ | $ | |||||||||||||||||||
Sales and marketing | |||||||||||||||||||||||
Research and development | |||||||||||||||||||||||
General and administrative | |||||||||||||||||||||||
Total stock-based compensation | $ | $ | $ | $ |
Shares | Weighted-Average Exercise Price | Weighted-Average Remaining Contractual Life (Years) | Intrinsic Value | ||||||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||||||||
Outstanding as of December 31, 2019 | $ | $ | |||||||||||||||||||||
Granted | $ | ||||||||||||||||||||||
Expired and/or forfeited | ( | $ | |||||||||||||||||||||
Outstanding as of September 30, 2020 | $ | $ | |||||||||||||||||||||
Exercisable as of September 30, 2020 | $ | $ |
Units | Weighted-Average Grant Date Fair Value | ||||||||||
(in thousands) | |||||||||||
Non-vested as of December 31, 2019 | $ | ||||||||||
Granted | $ | ||||||||||
Vested | ( | $ | |||||||||
Forfeited | ( | $ | |||||||||
Non-vested as of September 30, 2020 | $ |
Severance and Other Employee Costs | Lease Termination Costs | Total | |||||||||||||||
(in thousands) | |||||||||||||||||
Balance as of January 1, 2019 | $ | $ | $ | ||||||||||||||
Restructuring and other related costs | |||||||||||||||||
Cash paid | ( | ( | ( | ||||||||||||||
Balance as of December 31, 2019 | |||||||||||||||||
Restructuring and other related costs | |||||||||||||||||
Cash paid | ( | ( | |||||||||||||||
Change in estimates and non-cash charges | ( | ( | |||||||||||||||
Balance as of September 30, 2020 | $ | $ | $ |
Severance and Other Employee Costs | Lease and Other Contract Termination Costs | Asset Impairments | Total | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Balance as of January 1, 2017 | $ | $ | $ | $ | |||||||||||||||||||
Restructuring and other related costs | |||||||||||||||||||||||
Cash paid | ( | ( | ( | ||||||||||||||||||||
Change in estimates and non-cash charges | ( | ( | |||||||||||||||||||||
Acceleration of stock-based compensation expense in additional paid-in capital | ( | ( | |||||||||||||||||||||
Balance as of December 31, 2017 | |||||||||||||||||||||||
Restructuring and other related costs | |||||||||||||||||||||||
Cash paid | ( | ( | ( | ||||||||||||||||||||
Change in estimates and non-cash charges | ( | ||||||||||||||||||||||
Balance as of December 31, 2018 | |||||||||||||||||||||||
Cash paid | ( | ( | |||||||||||||||||||||
Change in estimates and non-cash charges | ( | ( | |||||||||||||||||||||
Balance as of December 31, 2019 | |||||||||||||||||||||||
Cash paid | ( | ( | |||||||||||||||||||||
Change in estimates and non-cash charges | ( | ( | |||||||||||||||||||||
Balance as of September 30, 2020 | $ | $ | $ | $ |
September 30, 2020 | |||||
(in thousands) | |||||
Remainder of 2020 | $ | ||||
2021 | |||||
2022 | |||||
2023 | |||||
2024 | |||||
Thereafter | |||||
Total | $ |
For the Three Months Ended September 30, | |||||||||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||||||||
Amount | % of Net Revenue | Amount | % of Net Revenue | $ Change | % Change | ||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | (in thousands) | |||||||||||||||||||||||||||||||||
Net revenue | $ | 45,790 | 100 | % | $ | 53,395 | 100 | % | $ | (7,605) | (14) | % | |||||||||||||||||||||||
Cost of revenue | 33,210 | 73 | % | 37,871 | 71 | % | (4,661) | (12) | % | ||||||||||||||||||||||||||
Gross profit | $ | 12,580 | 27 | % | $ | 15,524 | 29 | % | $ | (2,944) | (19) | % |
For the Three Months Ended September 30, | |||||||||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||||||||
Amount | % of Net Revenue | Amount | % of Net Revenue | $ Change | % Change | ||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | (in thousands) | |||||||||||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||||||||
Sales and marketing | $ | 5,638 | 12 | % | $ | 7,499 | 14 | % | $ | (1,861) | (25) | % | |||||||||||||||||||||||
Research and development | 1,489 | 3 | % | 1,165 | 2 | % | 324 | 28 | % | ||||||||||||||||||||||||||
General and administrative | 10,537 | 23 | % | 10,129 | 19 | % | 408 | 4 | % | ||||||||||||||||||||||||||
Restructuring and other related costs | — | — | % | 630 | 1 | % | (630) | (100) | % | ||||||||||||||||||||||||||
Total operating expenses | $ | 17,664 | 39 | % | $ | 19,423 | 36 | % | $ | (1,759) | (9) | % | |||||||||||||||||||||||
For the Three Months Ended September 30, | |||||||||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||||||||
Amount | % of Net Revenue | Amount | % of Net Revenue | $ Change | % Change | ||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | (in thousands) | |||||||||||||||||||||||||||||||||
Interest expense | $ | (161) | — | % | $ | (91) | — | % | $ | (70) | (77) | % | |||||||||||||||||||||||
Other expense, net | $ | (339) | (1) | % | $ | (328) | (1) | % | $ | (11) | (3) | % | |||||||||||||||||||||||
For the Three Months Ended September 30, | |||||||||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||||||||
Amount | % of Net Revenue | Amount | % of Net Revenue | $ Change | % Change | ||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | (in thousands) | |||||||||||||||||||||||||||||||||
Provision for income tax benefit (expense) | $ | 6 | — | % | $ | (119) | — | % | $ | 125 | 105 | % |
For the Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||||||||
Amount | % of Net Revenue | Amount | % of Net Revenue | $ Change | % Change | ||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | (in thousands) | |||||||||||||||||||||||||||||||||
Net revenue | $ | 143,542 | 100 | % | $ | 161,264 | 100 | % | $ | (17,722) | (11) | % | |||||||||||||||||||||||
Cost of revenue | 103,415 | 72 | % | 115,696 | 72 | % | (12,281) | (11) | % | ||||||||||||||||||||||||||
Gross profit | $ | 40,127 | 28 | % | $ | 45,568 | 28 | % | $ | (5,441) | (12) | % |
For the Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||||||||
Amount | % of Net Revenue | Amount | % of Net Revenue | $ Change | % Change | ||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | (in thousands) | |||||||||||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||||||||
Sales and marketing | $ | 19,048 | 13 | % | $ | 22,934 | 14 | % | $ | (3,886) | (17) | % | |||||||||||||||||||||||
Research and development | 4,186 | 3 | % | 3,702 | 2 | % | 484 | 13 | % | ||||||||||||||||||||||||||
General and administrative | 31,844 | 22 | % | 32,081 | 20 | % | (237) | (1) | % | ||||||||||||||||||||||||||
Restructuring and other related costs | 703 | — | % | 1,836 | 1 | % | (1,133) | (62) | % | ||||||||||||||||||||||||||
Total operating expenses | $ | 55,781 | 39 | % | $ | 60,553 | 38 | % | $ | (4,772) | (8) | % | |||||||||||||||||||||||
For the Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||||||||
Amount | % of Net Revenue | Amount | % of Net Revenue | $ Change | % Change | ||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | (in thousands) | |||||||||||||||||||||||||||||||||
Interest expense | $ | (477) | — | % | $ | (303) | — | % | $ | (174) | (57) | % | |||||||||||||||||||||||
Other expense, net | $ | (573) | — | % | $ | (664) | — | % | $ | 91 | 14 | % | |||||||||||||||||||||||
For the Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||||||||
Amount | % of Net Revenue | Amount | % of Net Revenue | $ Change | % Change | ||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | (in thousands) | |||||||||||||||||||||||||||||||||
Provision for income tax expense | $ | (173) | — | % | $ | (239) | — | % | $ | 66 | 28 | % |
For the Nine Months Ended September 30, | |||||||||||
2020 | 2019 | ||||||||||
(in thousands) | |||||||||||
Net cash provided by operating activities | $ | 2,864 | $ | 7,238 | |||||||
Net cash used in investing activities | (5,124) | (9,243) | |||||||||
Net cash provided by (used in) financing activities | 14,429 | (462) | |||||||||
Effect of exchange rate changes on cash and cash equivalents and restricted cash | (52) | 125 | |||||||||
Net change in cash and cash equivalents and restricted cash | $ | 12,117 | $ | (2,342) |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Internally developed software amortization | $ | 1,983 | $ | 1,524 | $ | 5,597 | $ | 4,190 | |||||||||||||||
Property and equipment depreciation | 1,529 | 1,640 | 4,734 | 5,968 | |||||||||||||||||||
Total depreciation and amortization | $ | 3,512 | $ | 3,164 | $ | 10,331 | $ | 10,158 |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Net loss | $ | (5,578) | $ | (4,437) | $ | (16,877) | $ | (16,191) | |||||||||||||||
Provision for income tax (benefit) expense | (6) | 119 | 173 | 239 | |||||||||||||||||||
Interest and other expense, net | 500 | 419 | 1,050 | 967 | |||||||||||||||||||
Depreciation and amortization | 3,512 | 3,164 | 10,331 | 10,158 | |||||||||||||||||||
EBITDA | (1,572) | (735) | (5,323) | (4,827) | |||||||||||||||||||
Stock-based compensation | 1,266 | 1,179 | 3,586 | 3,985 | |||||||||||||||||||
Restructuring and other related costs | — | 630 | 703 | 1,836 | |||||||||||||||||||
Amortization of contract acquisition asset costs - ASC 606 initial adoption | 134 | 277 | 514 | 789 | |||||||||||||||||||
Litigation reserve | — | (256) | — | (256) | |||||||||||||||||||
Adjusted EBITDA | $ | (172) | $ | 1,095 | $ | (520) | $ | 1,527 |
Exhibit Number | Description of Document | |||||||
31.1* | ||||||||
31.2* | ||||||||
32.1** | ||||||||
32.2** | ||||||||
101.SCH* | Inline XBRL Taxonomy Extension Schema Document. | |||||||
101.CAL* | Inline XBRL Taxonomy Extension Calculation Linkbase Document. | |||||||
101.DEF* | Inline XBRL Taxonomy Extension Definition Linkbase Document. | |||||||
101.LAB* | Inline XBRL Taxonomy Extension Label Linkbase Document. | |||||||
101.PRE* | Inline XBRL Taxonomy Extension Presentation Linkbase Document. | |||||||
104* | Inline XBRL for the cover page of this Quarterly Report on Form 10-Q, included in the Exhibit 101 Inline XBRL Document Set. |
Abbreviations or acronyms | Definition | ||||
2011 Plan | 2011 Equity Incentive Plan | ||||
2020 Plan | 2020 Equity Incentive Plan | ||||
APJ | Asia Pacific-Japan | ||||
ASC 606 | Accounting Standards Codification Topic 606, Revenue from Contracts with Customers | ||||
ASC 740 | Accounting Standards Codification Topic 740, Income Taxes | ||||
ASC 842 | Accounting Standards Codification Topic 842, Leases | ||||
ASU | Accounting Standards Update | ||||
B2B | Business-to-business | ||||
BPaaS | Business Process-as-a-Service | ||||
Borrowers | ServiceSource International, Inc. and ServiceSource Delaware, Inc. | ||||
CEO | Chief Executive Officer | ||||
CFO | Chief Financial Officer | ||||
COVID-19 | Coronavirus disease 2019 | ||||
Credit Agreement | Revolving Loan Credit Agreement, dated as of July 30, 2018, among the Borrowers and Compass Bank, as Lender | ||||
EMEA | Europe, Middle East and Africa | ||||
ESPP | 2011 Employee Stock Purchase Plan | ||||
FASB | Financial Accounting Standards Board | ||||
GAAP | United States Generally Accepted Accounting Principles | ||||
IoT | Internet of things | ||||
MD&A | Management’s Discussion and Analysis of Financial Condition and Results of Operations | ||||
NALA | North America and Latin America | ||||
PSU | Performance-based restricted stock unit | ||||
Revolver | Senior secured revolving line of credit | ||||
ROU | Right-of-use | ||||
RSU | Restricted stock unit | ||||
SEC | Securities and Exchange Commission | ||||
U.S. | United States |
SERVICESOURCE INTERNATIONAL, INC. (Registrant) | |||||||||||
Date: | October 28, 2020 | By: | /s/ RICHARD G. WALKER | ||||||||
Richard G. Walker Chief Financial Officer and Director (Principal Financial and Accounting Officer) |
Date: | October 28, 2020 | By: | /s/ GARY B. MOORE | ||||||||
Name: Gary B. Moore | |||||||||||
Title: Chief Executive Officer and Director (Principal Executive Officer) |
Date: | October 28, 2020 | By: | /s/ RICHARD G. WALKER | ||||||||
Name: Richard G. Walker | |||||||||||
Title: Chief Financial Officer and Director (Principal Financial and Accounting Officer) |
Date: | October 28, 2020 | By: | /s/ GARY B. MOORE | ||||||||
Name: Gary B. Moore | |||||||||||
Title: Chief Executive Officer and Director (Principal Executive Officer) |
Date: | October 28, 2020 | By: | /s/ RICHARD G. WALKER | ||||||||
Name: Richard G. Walker | |||||||||||
Title: Chief Financial Officer and Director (Principal Financial and Accounting Officer) |
Consolidated Balance Sheets (Parenthetical) - $ / shares |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued (in shares) | 96,684,000 | 94,972,000 |
Common stock, shares outstanding (in shares) | 96,563,000 | 94,851,000 |
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] | ||||
Net revenue | $ 45,790 | $ 53,395 | $ 143,542 | $ 161,264 |
Cost of revenue | 33,210 | 37,871 | 103,415 | 115,696 |
Gross profit | 12,580 | 15,524 | 40,127 | 45,568 |
Operating expenses: | ||||
Sales and marketing | 5,638 | 7,499 | 19,048 | 22,934 |
Research and development | 1,489 | 1,165 | 4,186 | 3,702 |
General and administrative | 10,537 | 10,129 | 31,844 | 32,081 |
Restructuring and other related costs | 0 | 630 | 703 | 1,836 |
Total operating expenses | 17,664 | 19,423 | 55,781 | 60,553 |
Loss from operations | (5,084) | (3,899) | (15,654) | (14,985) |
Interest and other expense, net | (500) | (419) | (1,050) | (967) |
Loss before provision for income taxes | (5,584) | (4,318) | (16,704) | (15,952) |
Provision for income tax benefit (expense) | 6 | (119) | (173) | (239) |
Net loss | $ (5,578) | $ (4,437) | $ (16,877) | $ (16,191) |
Net loss per common share: | ||||
Basic and diluted (in dollars per share) | $ (0.06) | $ (0.05) | $ (0.18) | $ (0.17) |
Weighted-average common shares outstanding: | ||||
Basic and diluted (in shares) | 95,963 | 94,228 | 95,437 | 93,637 |
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 | $ (5,578) | $ (4,437) | $ (16,877) | $ (16,191) |
Other comprehensive income (loss) | ||||
Foreign currency translation adjustments | 102 | 73 | 53 | (111) |
Other comprehensive income (loss) | 102 | 73 | 53 | (111) |
Comprehensive loss | $ (5,476) | $ (4,364) | $ (16,824) | $ (16,302) |
The Company |
9 Months Ended |
---|---|
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
The Company | The Company ServiceSource is a leading provider of BPaaS (business process-as-a-service) solutions that enable the transformation of go-to-market organizations and functions for global technology clients. We design, deploy, and operate a suite of innovative solutions and complex processes that support and augment our clients’ B2B customer acquisition, engagement, expansion and retention activities. Our clients - ranging from Fortune 500 technology titans to high-growth disruptors and innovators - rely on our holistic customer engagement methodology and process excellence, global scale and delivery footprint, and data analytics and business insights to deliver trusted business outcomes that have a meaningful and material positive impact to their long-term revenue and profitability objectives. Through our unique integration of people, process and technology - leveraged against our 20 years of experience and domain expertise in the cloud, software, hardware, medical device and diagnostic equipment, and industrial IoT sectors - we effect and transact billions of dollars of B2B commerce in more than 175 countries on our clients’ behalf annually. “ServiceSource,” “the Company,” “we,” “us,” or “our”, as used herein, refer to ServiceSource International, Inc. and its wholly owned subsidiaries, unless the context indicates otherwise. For a summary of commonly used industry terms and abbreviations used in this quarterly report on Form 10-Q, see the Glossary of Terms.
|
Summary of Significant Accounting Policies |
9 Months Ended |
---|---|
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited interim Consolidated Financial Statements include the accounts of ServiceSource International, Inc. and its wholly owned subsidiaries and have been prepared in accordance with GAAP and with the instructions to Form 10-Q and Article 8 of Regulation S-X for interim financial information. All intercompany balances and transactions have been eliminated in consolidation. These financial statements do not include all the information required by GAAP for annual financial statements. The unaudited Consolidated Balance Sheet as of December 31, 2019 has been derived from the Company’s audited annual Consolidated Financial Statements included in our annual report on Form 10-K for the year ended December 31, 2019 filed with the SEC on February 19, 2020. In the opinion of management, these Consolidated Financial Statements reflect all adjustments, including normal recurring adjustments, management considers necessary for a fair presentation of the Company’s financial position, operating results, and cash flows for the interim periods presented. These Consolidated Financial Statements and accompanying notes should be read in conjunction with our audited Consolidated Financial Statements and the notes thereto for the year ended December 31, 2019, included in our annual report on Form 10-K. Interim results are not necessarily indicative of results for the entire year. Use of Estimates The preparation of the Consolidated Financial Statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the Consolidated Financial Statements and the reported amount of net revenue and expenses during the reporting period. The Company bases its estimates and judgments on historical experience and on various assumptions that it believes are reasonable under the circumstances. The Company has considered the effects of the COVID-19 pandemic in determining its estimates. However, future events are difficult to predict and subject to change, especially with the risks and uncertainties related to the impact of the COVID-19 pandemic, which could cause estimates and judgments to require adjustment. Actual results and outcomes may differ from our estimates. Reclassifications Certain items on the Consolidated Statements of Cash Flows for the nine months ended September 30, 2019 have been reclassified to conform to the current year presentation. These reclassifications did not affect the Consolidated Balance Sheets, Consolidated Statements of Operations, Consolidated Statements of Comprehensive Loss or Consolidated Statements of Stockholders' Equity. Government Assistance During 2020, ServiceSource received a grant from the Singapore government pursuant to its Job Support Scheme, which assists enterprises in retaining their local employees during the COVID-19 pandemic. ServiceSource received approximately $0.5 million and $0.9 million from the grant during the three and nine months ended September 30, 2020 and is expected to receive an additional $0.4 million through July 2021. Government grants are recognized in the Company's Consolidated Statements of Operations during the same period that the expenses related to the grant are incurred if there is reasonable assurance the grant will be received, and the Company has complied with any conditions attached to the grant. New Accounting Standards Issued but Not yet Adopted Financial Instruments - Credit Losses In June 2016, the FASB issued an ASU that amends the measurement of credit losses on financial instruments and requires measurement and recognition of expected versus incurred credit losses for financial assets held. This ASU is effective for annual periods and interim periods for those annual periods beginning after December 15, 2022, with early adoption permitted. This standard will apply to the Company's accounts receivable and contract assets. Based on our current analysis, the Company does not expect the adoption to have a material impact on the Consolidated Financial Statements as credit losses from trade receivables have historically been insignificant. The Company will adopt this standard effective January 1, 2023. Income Taxes In December 2019, the FASB issued an ASU that simplifies the accounting for income taxes by eliminating certain exceptions to the guidance in ASC 740 related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. This ASU is effective for annual periods and interim periods for those annual periods beginning after December 15, 2020, with early adoption permitted. Based on our current analysis, the Company does not expect the adoption to have a material impact on the Consolidated Financial Statements. The Company will adopt this standard effective January 1, 2021.
|
Fair Value of Financial Instruments |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company follows a three-tier fair value hierarchy, which is described in detail in the Company's Annual Report on Form 10-K for the year ended December 31, 2019. The following table presents the Company's cash and cash equivalents and restricted cash by significant investment category measured at fair value:
|
Debt |
9 Months Ended |
---|---|
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Debt Revolving Line of Credit In July 2018, the Company entered into a $40.0 million Revolver that allows it and the other Borrowers named therein to borrow against its domestic receivables as defined in the Credit Agreement. The Revolver matures July 2021 and bears interest at a variable rate per annum based on the greater of the prime rate, the Federal Funds rate plus 0.50% or the one-month LIBOR rate plus 1.00%, plus, in each case, a margin of 1.00% for base rate borrowings or 2.00% for Eurodollar borrowings. As of September 30, 2020, the Company had $15.0 million of borrowings under the Revolver through a one-month Eurodollar borrowing at an effective interest rate of 2.15% maturing October 2020. An additional $14.0 million was available for borrowing under the Revolver as of September 30, 2020. The Eurodollar borrowings may be extended upon maturity, converted into a base rate borrowing upon maturity or require an incremental payment if the Company's borrowing base decreases below the current amount outstanding during the term of the Eurodollar borrowing. Subsequent to September 30, 2020, the one-month $15.0 million Eurodollar borrowing was extended at an effective interest rate of approximately 2.15% maturing November 2020. The obligations under the Credit Agreement are secured by substantially all the assets of the Borrowers and certain of their subsidiaries, including pledges of equity in certain of the Company’s subsidiaries. The Revolver has financial covenants which the Company was in compliance with as of September 30, 2020 and December 31, 2019. Deferred Debt Issuance Costs and Interest Expense Unamortized debt issuance costs related to the Revolver were $0.1 million as of September 30, 2020 and December 31, 2019. Interest expense related to the amortization of debt issuance costs and interest expense associated with the Company's debt obligation was $0.1 million and $0.04 million for the three months ended September 30, 2020 and 2019, respectively and $0.4 million and $0.1 million for the nine months ended September 30, 2020 and 2019, respectively.
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Leases |
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | Leases The Company has operating leases for office space and finance leases for certain equipment under non-cancelable agreements with various expiration dates through May 2030. Certain office leases include the option to extend the term between to seven years and certain office leases include the option to terminate the lease upon written notice within to eight years after lease commencement. Leases with an initial term of 12 months or less are not recorded on the balance sheet. During 2020, the Company entered into a 22 month sublease agreement with a third-party for one floor of its Manila office space through October 2021, extended its lease for two of its five floors in the Kuala Lumpur office space through December 2023, and extended its lease for one of its three floors in the Sofia office space through February 2026. The Company recognizes rent expense and sublease income on a straight-line basis over the lease period and accrues for rent expense and sublease income incurred but not paid. Supplemental income statement information related to leases was as follows:
Supplemental balance sheet information related to leases was as follows:
Lease term and discount rate information was as follows:
Maturities of lease liabilities were as follows as of September 30, 2020:
(1) Relates to tenant improvement reimbursements incurred by the Company after lease commencement, but not received from the landlord as of September 30, 2020.
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Leases | Leases The Company has operating leases for office space and finance leases for certain equipment under non-cancelable agreements with various expiration dates through May 2030. Certain office leases include the option to extend the term between to seven years and certain office leases include the option to terminate the lease upon written notice within to eight years after lease commencement. Leases with an initial term of 12 months or less are not recorded on the balance sheet. During 2020, the Company entered into a 22 month sublease agreement with a third-party for one floor of its Manila office space through October 2021, extended its lease for two of its five floors in the Kuala Lumpur office space through December 2023, and extended its lease for one of its three floors in the Sofia office space through February 2026. The Company recognizes rent expense and sublease income on a straight-line basis over the lease period and accrues for rent expense and sublease income incurred but not paid. Supplemental income statement information related to leases was as follows:
Supplemental balance sheet information related to leases was as follows:
Lease term and discount rate information was as follows:
Maturities of lease liabilities were as follows as of September 30, 2020:
(1) Relates to tenant improvement reimbursements incurred by the Company after lease commencement, but not received from the landlord as of September 30, 2020.
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Leases | Leases The Company has operating leases for office space and finance leases for certain equipment under non-cancelable agreements with various expiration dates through May 2030. Certain office leases include the option to extend the term between to seven years and certain office leases include the option to terminate the lease upon written notice within to eight years after lease commencement. Leases with an initial term of 12 months or less are not recorded on the balance sheet. During 2020, the Company entered into a 22 month sublease agreement with a third-party for one floor of its Manila office space through October 2021, extended its lease for two of its five floors in the Kuala Lumpur office space through December 2023, and extended its lease for one of its three floors in the Sofia office space through February 2026. The Company recognizes rent expense and sublease income on a straight-line basis over the lease period and accrues for rent expense and sublease income incurred but not paid. Supplemental income statement information related to leases was as follows:
Supplemental balance sheet information related to leases was as follows:
Lease term and discount rate information was as follows:
Maturities of lease liabilities were as follows as of September 30, 2020:
(1) Relates to tenant improvement reimbursements incurred by the Company after lease commencement, but not received from the landlord as of September 30, 2020.
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Revenue Recognition |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue Recognition | Revenue Recognition The following tables present the disaggregation of revenue from contracts with our clients: Revenue by Performance Obligation
Revenue by Geography Revenue for each geography generally reflects commissions earned from sales of service contracts managed from revenue delivery centers in that geography and subscription sales and professional services to deploy the Company's solutions. Predominantly all the service contracts sold and managed by the revenue delivery centers relate to end customers located in the same geography. All NALA revenue represents revenue generated within the U.S.
Revenue by Contract Pricing
Contract Balances As of September 30, 2020 and December 31, 2019, contract asset balances were insignificant and as of September 30, 2020 and December 31, 2019, contract liability balances totaled $0.3 million and $0.8 million, respectively. Transaction Price Allocated to Remaining Performance Obligations As of September 30, 2020, assuming none of the Company’s current contracts with fixed consideration are renewed, the Company estimates receiving approximately $40.3 million in future selling services fixed consideration and approximately $0.5 million in professional services fixed consideration. Contract Acquisition Costs As of September 30, 2020 and December 31, 2019, capitalized contract acquisition costs were $1.0 million and $1.6 million, respectively. The Company recorded amortization expense related to capitalized contract acquisition costs of $0.3 million and $0.4 million for the three months ended September 30, 2020 and 2019, respectively, and $0.8 million and $1.2 million for the nine months ended September 30, 2020 and 2019, respectively. Impairment recognized on contract costs was insignificant for the three and nine months ended September 30, 2020 and 2019.
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Stock-Based Compensation |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation | Stock-Based Compensation 2020 Equity Incentive Plan The 2020 Plan was approved by the Company’s stockholders on May 14, 2020 and expires March 4, 2025. The 2020 Plan provides for a reserve of 6,200,000 shares of the Company's common stock that may be issued pursuant to awards under the 2020 Plan. Permitted awards include, but are not limited to, options, stock appreciation rights, restricted stock units, performance stock units and other cash and stock-based awards. On May 14, 2020, following the approval of the 2020 Plan, the Company’s board of directors terminated the 2011 Plan with the effect that no additional awards may be issued under the 2011 Plan and all outstanding awards under the 2011 Plan shall continue on and be unaffected by the termination of the 2011 Plan. 2020 PSU Awards During May 2020 and prior to expiration of the 2011 Plan, the Company granted PSUs to certain executives under the 2011 Plan. The aggregate target number of shares subject to these awards is 0.9 million, with an aggregate grant date fair value of $1.2 million. The number of shares ultimately received related to these awards ranges from 0% to 150% of the participant's target award depending on the Company's achievement of specified Adjusted EBITDA and net bookings targets over a two-year performance period and will vest on the third anniversary of the grant date. Stock-Based Compensation Expense The following table presents stock-based compensation expense as allocated within the Company's Consolidated Statements of Operations:
The above table does not include capitalized stock-based compensation related to internal-use software that was insignificant for the three and nine months ended September 30, 2020 and 2019. Stock Awards A summary of the Company's stock option activity and related information was as follows:
The weighted-average fair value of options granted during the nine months ended September 30, 2020 and 2019 was $0.63 and $0.47, respectively. As of September 30, 2020, there was $0.6 million of unrecognized compensation expense related to previously granted stock options, which is expected to be recognized over a weighted-average period of 1.9 years. A summary of the Company's RSU and PSU activity and related information was as follows:
As of September 30, 2020, there was $10.3 million of unrecognized compensation expense related to previously granted RSUs and PSUs, which is expected to be recognized over a weighted-average period of 2.2 years. Potential shares of common stock that are not included in the determination of diluted net loss per share because they are anti-dilutive for the periods presented consist of stock options, unvested RSUs and PSUs, and shares to be purchased under our ESPP. The Company excluded from diluted earnings per share the weighted-average common share equivalents related to 3.2 million and 7.9 million shares for the three months ended September 30, 2020 and 2019, respectively, and 4.1 million and 8.4 million shares for the nine months ended September 30, 2020 and 2019, respectively, because their effect would have been anti-dilutive.
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Restructuring and Other Related Costs |
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Other Related Costs | Restructuring and Other Related Costs The Company has undergone restructuring efforts to better align its cost structure with its business and market conditions. These restructuring efforts include severance and other employee costs, lease and other contract termination costs and asset impairments. Severance and other employee costs include severance payments, related employee benefits, stock-based compensation related to the accelerated vesting of certain equity awards and employee-related legal fees. Lease and other contract termination costs include charges related to lease consolidation and abandonment of spaces no longer utilized and the cancellation of certain contracts with outside vendors. Asset impairments include charges related to leasehold improvements and furniture in spaces vacated or no longer in use. The restructuring plans and future cash outlays are recorded in "Accrued expenses" and "Other long-term liabilities" in the Consolidated Balance Sheets as of September 30, 2020 and December 31, 2019. During 2019, the Company announced a restructuring effort resulting in a reduction of headcount and office lease costs. The Company recognized charges related to this restructuring effort of $0.7 million for the nine months ended September 30, 2020 and $0.6 million and $1.8 million for the three and nine months ended September 30, 2019, respectively. As of September 30, 2020, the Company does not expect to incur additional restructuring charges related to the 2019 restructuring. The following table presents a reconciliation of the beginning and ending fair value liability balance related to the 2019 restructuring effort:
In May 2017, the Company announced a restructuring effort resulting in a headcount reduction and the reduction of office space in four locations. As of September 30, 2020, the Company does not expect to incur additional restructuring charges related to the May 2017 restructuring. The following table presents a reconciliation of the beginning and ending fair value liability balance related to the May 2017 restructuring effort:
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Income Taxes |
9 Months Ended |
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Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company is subject to taxation in the U.S. and various state and foreign jurisdictions. Earnings from non-U.S. activities are subject to local country income tax. The Company computes its quarterly income tax provision by using a forecasted annual effective tax rate and adjusts for any discrete items arising during the quarter. The primary difference between the effective tax rate and the federal statutory tax rate relates to the valuation allowances on the Company’s net operating losses and foreign tax rate differences. The "Provision for income tax expense" in the Consolidated Statements of Operations primarily consists of income and withholding taxes for foreign and state jurisdictions where the Company has profitable operations, as well as valuation allowance adjustments for certain U.S. tax jurisdictions. No tax benefit was provided for losses incurred in the U.S., Ireland and Singapore because those losses are offset by a full valuation allowance. The tax years 2012 through 2020 generally remain subject to examination by federal, state and foreign tax authorities. The gross amount of the Company’s unrecognized tax benefits was $1.0 million as of September 30, 2020 and December 31, 2019, none of which, if recognized, would affect the Company’s effective tax rate. The Company does not expect its unrecognized tax benefits to change significantly over the next 12 months. The Company recognizes interest and penalties accrued related to unrecognized tax benefits in income tax expense. During the three and nine months ended September 30, 2020 and 2019, interest and penalties recognized were insignificant.
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Commitments and Contingencies |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies | Commitments and Contingencies Letters of Credit In connection with two of our leased facilities, the Company is required to maintain two letters of credit totaling $2.3 million. The letters of credit are secured by $2.3 million of cash in money market accounts, which are classified as restricted cash in "Other assets" in the Consolidated Balance Sheets. Non-cancelable Service Contract Commitments Future minimum payments under non-cancelable service contract commitments were as follows:
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Summary of Significant Accounting Policies (Policies) |
9 Months Ended |
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Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of PresentationThe accompanying unaudited interim Consolidated Financial Statements include the accounts of ServiceSource International, Inc. and its wholly owned subsidiaries and have been prepared in accordance with GAAP and with the instructions to Form 10-Q and Article 8 of Regulation S-X for interim financial information. All intercompany balances and transactions have been eliminated in consolidation. These financial statements do not include all the information required by GAAP for annual financial statements. The unaudited Consolidated Balance Sheet as of December 31, 2019 has been derived from the Company’s audited annual Consolidated Financial Statements included in our annual report on Form 10-K for the year ended December 31, 2019 filed with the SEC on February 19, 2020. In the opinion of management, these Consolidated Financial Statements reflect all adjustments, including normal recurring adjustments, management considers necessary for a fair presentation of the Company’s financial position, operating results, and cash flows for the interim periods presented. These Consolidated Financial Statements and accompanying notes should be read in conjunction with our audited Consolidated Financial Statements and the notes thereto for the year ended December 31, 2019, included in our annual report on Form 10-K. Interim results are not necessarily indicative of results for the entire year. |
Use of Estimates | Use of Estimates The preparation of the Consolidated Financial Statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the Consolidated Financial Statements and the reported amount of net revenue and expenses during the reporting period. The Company bases its estimates and judgments on historical experience and on various assumptions that it believes are reasonable under the circumstances. The Company has considered the effects of the COVID-19 pandemic in determining its estimates. However, future events are difficult to predict and subject to change, especially with the risks and uncertainties related to the impact of the COVID-19 pandemic, which could cause estimates and judgments to require adjustment. Actual results and outcomes may differ from our estimates.
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Reclassifications | Reclassifications Certain items on the Consolidated Statements of Cash Flows for the nine months ended September 30, 2019 have been reclassified to conform to the current year presentation. These reclassifications did not affect the Consolidated Balance Sheets, Consolidated Statements of Operations, Consolidated Statements of Comprehensive Loss or Consolidated Statements of Stockholders' Equity.
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Government Assistance | Government AssistanceDuring 2020, ServiceSource received a grant from the Singapore government pursuant to its Job Support Scheme, which assists enterprises in retaining their local employees during the COVID-19 pandemic. ServiceSource received approximately $0.5 million and $0.9 million from the grant during the three and nine months ended September 30, 2020 and is expected to receive an additional $0.4 million through July 2021. Government grants are recognized in the Company's Consolidated Statements of Operations during the same period that the expenses related to the grant are incurred if there is reasonable assurance the grant will be received, and the Company has complied with any conditions attached to the grant. |
New Accounting Standards Issued but Not yet Adopted | New Accounting Standards Issued but Not yet Adopted Financial Instruments - Credit Losses In June 2016, the FASB issued an ASU that amends the measurement of credit losses on financial instruments and requires measurement and recognition of expected versus incurred credit losses for financial assets held. This ASU is effective for annual periods and interim periods for those annual periods beginning after December 15, 2022, with early adoption permitted. This standard will apply to the Company's accounts receivable and contract assets. Based on our current analysis, the Company does not expect the adoption to have a material impact on the Consolidated Financial Statements as credit losses from trade receivables have historically been insignificant. The Company will adopt this standard effective January 1, 2023. Income Taxes In December 2019, the FASB issued an ASU that simplifies the accounting for income taxes by eliminating certain exceptions to the guidance in ASC 740 related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. This ASU is effective for annual periods and interim periods for those annual periods beginning after December 15, 2020, with early adoption permitted. Based on our current analysis, the Company does not expect the adoption to have a material impact on the Consolidated Financial Statements. The Company will adopt this standard effective January 1, 2021.
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Fair Value of Financial Instruments (Tables) |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Financial Instruments Measured at Fair Value | The following table presents the Company's cash and cash equivalents and restricted cash by significant investment category measured at fair value:
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Leases (Tables) |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Supplemental Income Statement Information and Other Information | Supplemental income statement information related to leases was as follows:
Lease term and discount rate information was as follows:
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Summary of Supplemental Balance Sheet Information | Supplemental balance sheet information related to leases was as follows:
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Summary of Maturities of Operating Lease Liabilities | Maturities of lease liabilities were as follows as of September 30, 2020:
(1) Relates to tenant improvement reimbursements incurred by the Company after lease commencement, but not received from the landlord as of September 30, 2020.
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Operating Lease, Lease Income | Maturities of lease liabilities were as follows as of September 30, 2020:
(1) Relates to tenant improvement reimbursements incurred by the Company after lease commencement, but not received from the landlord as of September 30, 2020.
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Summary of Maturities of Finance Lease Liabilities | Maturities of lease liabilities were as follows as of September 30, 2020:
(1) Relates to tenant improvement reimbursements incurred by the Company after lease commencement, but not received from the landlord as of September 30, 2020.
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Revenue Recognition (Tables) |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue from Contracts with Clients | The following tables present the disaggregation of revenue from contracts with our clients: Revenue by Performance Obligation
Revenue by Geography Revenue for each geography generally reflects commissions earned from sales of service contracts managed from revenue delivery centers in that geography and subscription sales and professional services to deploy the Company's solutions. Predominantly all the service contracts sold and managed by the revenue delivery centers relate to end customers located in the same geography. All NALA revenue represents revenue generated within the U.S.
Revenue by Contract Pricing
|
Stock-Based Compensation (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Stock-Based Compensation Expense | The following table presents stock-based compensation expense as allocated within the Company's Consolidated Statements of Operations:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Option and Restricted Stock Activity | A summary of the Company's stock option activity and related information was as follows:
|
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Summary of Additional Information Concerning Vested RSUs and PSUs | A summary of the Company's RSU and PSU activity and related information was as follows:
|
Restructuring and Other Related Costs (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Restructuring and Other Reserve Activities | The following table presents a reconciliation of the beginning and ending fair value liability balance related to the 2019 restructuring effort:
The following table presents a reconciliation of the beginning and ending fair value liability balance related to the May 2017 restructuring effort:
|
Commitments and Contingencies (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Future Minimum Payments Under Non-cancelable Service Contract Commitments | Future minimum payments under non-cancelable service contract commitments were as follows:
|
The Company (Details) |
9 Months Ended |
---|---|
Sep. 30, 2020
country
| |
Accounting Policies [Abstract] | |
Years of operating experience | 20 years |
Number of countries in which company operates | 175 |
Summary of Significant Accounting Policies (Details) $ in Millions |
3 Months Ended | 9 Months Ended |
---|---|---|
Sep. 30, 2020
USD ($)
|
Sep. 30, 2020
USD ($)
|
|
Accounting Policies [Abstract] | ||
Proceeds received from grant | $ 0.5 | $ 0.9 |
Additional proceeds expected to be received from grant | $ 0.4 | $ 0.4 |
Fair Value of Financial Instruments - Summary of Financial Instruments (Details) - Level 1 - USD ($) $ in Thousands |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | $ 39,180 | $ 27,089 |
Restricted cash | 2,320 | 2,294 |
Cash | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 10,761 | 9,142 |
Money market mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | $ 28,419 | $ 17,947 |
Leases - Narrative (Details) |
9 Months Ended |
---|---|
Sep. 30, 2020 | |
Lessee, Lease, Description [Line Items] | |
Sublease agreement, term | 22 months |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Option to extend, term (in years) | 1 year |
Option to terminate, term (in years) | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Option to extend, term (in years) | 7 years |
Option to terminate, term (in years) | 8 years |
Leases - Supplemental Income Statement Information (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 | $ 3,090 | $ 2,897 | $ 9,121 | $ 8,894 |
Finance lease cost: | ||||
Amortization of leased assets | 213 | 164 | 564 | 486 |
Interest on lease liabilities | 19 | 41 | 75 | 127 |
Total finance lease cost | 232 | 205 | 639 | 613 |
Sublease income | (905) | (602) | (2,692) | (1,538) |
Net lease cost | $ 2,417 | $ 2,500 | $ 7,068 | $ 7,969 |
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Operating leases: | ||
ROU assets | $ 31,733 | $ 36,396 |
Operating lease liabilities | 10,741 | 9,652 |
Operating lease liabilities, net of current portion | 28,129 | 33,716 |
Total operating lease liabilities | 38,870 | 43,368 |
Finance leases: | ||
Property and equipment | 2,858 | 3,480 |
Accumulated depreciation | (1,766) | (1,823) |
Property and equipment, net | 1,092 | 1,657 |
Other current liabilities | 707 | 952 |
Other long-term liabilities | 186 | 671 |
Total finance lease liabilities | $ 893 | $ 1,623 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:PropertyPlantAndEquipmentAndFinanceLeaseRightOfUseAssetAfterAccumulatedDepreciationAndAmortization | |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesCurrent | |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesNoncurrent |
Leases - Lease Term and Discount Rate (Details) |
Sep. 30, 2020 |
Sep. 30, 2019 |
---|---|---|
Weighted-average remaining lease term (in years): | ||
Operating lease | 5 years 8 months 12 days | 5 years 10 months 24 days |
Finance lease | 1 year 2 months 12 days | 2 years |
Weighted-average discount rate: | ||
Operating lease | 6.20% | 6.50% |
Finance lease | 7.00% | 8.10% |
Leases - Maturity of Lease Liabilities (Details) - USD ($) $ in Thousands |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Operating Leases | ||
Remainder of 2020 | $ 3,442 | |
2021 | 12,594 | |
2022 | 9,168 | |
2023 | 4,221 | |
2024 | 2,928 | |
Thereafter | 14,243 | |
Total lease payments | 46,596 | |
Less: interest | (7,690) | |
Less: tenant improvements reimbursement | (36) | |
Total | 38,870 | $ 43,368 |
Operating Sublease | ||
Remainder of 2020 | (919) | |
2021 | (3,552) | |
2022 | (2,538) | |
2023 | (623) | |
2024 | 0 | |
Thereafter | 0 | |
Total | (7,632) | |
Finance Leases | ||
Remainder of 2020 | 235 | |
2021 | 633 | |
2022 | 64 | |
2023 | 0 | |
2024 | 0 | |
Thereafter | 0 | |
Total lease payments | 932 | |
Less: interest | (39) | |
Less: tenant improvements reimbursement | 0 | |
Total | 893 | $ 1,623 |
Operating and Finance Leases | ||
Remainder of 2020 | 2,758 | |
2021 | 9,675 | |
2022 | 6,694 | |
2023 | 3,598 | |
2024 | 2,928 | |
Thereafter | 14,243 | |
Total lease payments | 39,896 | |
Less: interest | (7,729) | |
Less: tenant improvements reimbursement | (36) | |
Total | $ 32,131 |
Revenue Recognition - Disaggregation 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] | ||||
Net revenue | $ 45,790 | $ 53,395 | $ 143,542 | $ 161,264 |
Variable consideration | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 33,188 | 37,577 | 103,367 | 106,889 |
Fixed consideration | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 12,602 | 15,818 | 40,175 | 54,375 |
NALA | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 27,204 | 32,153 | 83,235 | 94,949 |
EMEA | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 11,984 | 12,918 | 38,837 | 39,972 |
APJ | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 6,602 | 8,324 | 21,470 | 26,343 |
Selling services | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 44,840 | 52,663 | 140,558 | 159,707 |
Professional services | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | $ 950 | $ 732 | $ 2,984 | $ 1,557 |
Revenue Recognition - 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 |
|
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Contract liability | $ 300 | $ 300 | $ 800 | ||
Contract acquisition asset | 1,000 | 1,000 | $ 1,600 | ||
Amortization of contract acquisition costs | 300 | $ 400 | 798 | $ 1,239 | |
Selling services | |||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Remaining performance obligation | 40,300 | 40,300 | |||
Professional services | |||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Remaining performance obligation | $ 500 | $ 500 |
Stock-Based Compensation - Restricted Stock Unit Activity (Details) - RSUs and PSUs shares in Thousands |
9 Months Ended |
---|---|
Sep. 30, 2020
$ / shares
shares
| |
Units | |
Unvested, beginning balance (in shares) | shares | 5,305 |
Granted (in shares) | shares | 5,602 |
Vested (in shares) | shares | (1,493) |
Forfeited (in shares) | shares | (1,180) |
Unvested, ending balance (in shares) | shares | 8,234 |
Weighted-Average Grant Date Fair Value | |
Unvested, weighted average grant date fair value, beginning balance (in dollars per share) | $ / shares | $ 1.88 |
Granted, weighted average grant date fair value (in dollars per share) | $ / shares | 1.43 |
Vested, weighted average grant date fair value (in dollars per share) | $ / shares | 2.09 |
Forfeited, weighted average grant date fair value (in dollars per share) | $ / shares | 1.86 |
Unvested, weighted average grant date fair value, ending balance (in dollars per share) | $ / shares | $ 1.54 |
Restructuring and Other Related Costs - Narrative (Details) $ in Thousands |
1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|---|---|
May 31, 2017
location
|
Sep. 30, 2019
USD ($)
|
Sep. 30, 2020
USD ($)
|
Sep. 30, 2019
USD ($)
|
Dec. 31, 2019
USD ($)
|
Dec. 31, 2018
USD ($)
|
Dec. 31, 2017
USD ($)
|
|
February 2019 Restructuring Effort | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring charges | $ 600 | $ 703 | $ 1,800 | $ 1,929 | |||
May 2017 Restructuring Effort | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring charges | $ 209 | $ 7,308 | |||||
Number of locations where reduction of headcount and office spaces took place (location) | location | 4 |
Income Taxes (Details) - USD ($) $ in Millions |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Income Tax Disclosure [Abstract] | ||
Unrecognized tax benefits | $ 1.0 | $ 1.0 |
Commitments and Contingencies - Narrative (Details) $ in Millions |
Sep. 30, 2020
USD ($)
debt_instrument
facility
|
---|---|
Other Commitments [Line Items] | |
Number of leased facilities | facility | 2 |
Number of letters of credit | debt_instrument | 2 |
Money Market Mutual Funds | Letter of Credit | |
Other Commitments [Line Items] | |
Letters of credit | $ 2.3 |
Restricted cash | $ 2.3 |
Commitments and Contingencies - Future Minimum Payments (Details) $ in Thousands |
Sep. 30, 2020
USD ($)
|
---|---|
Non-cancelable Service Contract Commitments | |
Remainder of 2020 | $ 2,359 |
2021 | 10,385 |
2022 | 9,152 |
2023 | 7,446 |
2024 | 821 |
Thereafter | 0 |
Total | $ 30,163 |
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