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 and Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
x | Accelerated filer | ☐ | |||||||||
Non-accelerated filer | ☐ | Smaller reporting company | |||||||||
Emerging growth company |
Page No. | |||||
September 30, 2023 | December 31, 2022 | ||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Marketable securities | |||||||||||
Accounts receivable, net of allowances of $197 and $32, respectively | |||||||||||
Inventory | |||||||||||
Prepaid expenses and other current assets | |||||||||||
Total current assets | |||||||||||
Property and equipment, net | |||||||||||
Goodwill | |||||||||||
Deferred tax assets, net | |||||||||||
Other non-current assets | |||||||||||
Total assets | $ | $ | |||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | $ | |||||||||
Accrued liabilities | |||||||||||
Deferred revenue | |||||||||||
Total current liabilities | |||||||||||
Deferred revenue, non-current | |||||||||||
Other non-current liabilities | |||||||||||
Total liabilities | |||||||||||
Commitments and contingencies (Note 2 and Note 5) | |||||||||||
Stockholders' equity: | |||||||||||
Common stock, $0.00001 par value: 500,000 shares authorized; 88,739 and 87,123 shares issued and 74,750 and 73,738 shares outstanding, respectively | |||||||||||
Treasury stock, at cost: 13,989 and 13,384 shares, respectively | ( | ( | |||||||||
Additional paid-in-capital | |||||||||||
Dividends paid | ( | ( | |||||||||
Accumulated other comprehensive income (loss) | ( | ||||||||||
Accumulated deficit | ( | ( | |||||||||
Total stockholders' equity | |||||||||||
Total liabilities and stockholders' equity | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Revenue: | |||||||||||||||||||||||
Products | $ | $ | $ | $ | |||||||||||||||||||
Services | |||||||||||||||||||||||
Total revenue | |||||||||||||||||||||||
Cost of revenue: | |||||||||||||||||||||||
Products | |||||||||||||||||||||||
Services | |||||||||||||||||||||||
Total cost of revenue | |||||||||||||||||||||||
Gross profit | |||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Sales and marketing | |||||||||||||||||||||||
Research and development | |||||||||||||||||||||||
General and administrative | |||||||||||||||||||||||
Total operating expenses | |||||||||||||||||||||||
Income from operations | |||||||||||||||||||||||
Non-operating income (expense), net: | |||||||||||||||||||||||
Interest income | |||||||||||||||||||||||
Other income (expense), net | ( | ( | |||||||||||||||||||||
Non-operating income (expense), net | ( | ( | |||||||||||||||||||||
Income before provision for income taxes | |||||||||||||||||||||||
Income tax provision (benefit) | ( | ||||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Net income per share: | |||||||||||||||||||||||
Basic | $ | $ | $ | $ | |||||||||||||||||||
Diluted | $ | $ | $ | $ | |||||||||||||||||||
Weighted-average shares used in computing net income per share: | |||||||||||||||||||||||
Basic | |||||||||||||||||||||||
Diluted |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Other comprehensive income (expense), net of tax: | |||||||||||||||||||||||
Realized loss reclassified to earnings | ( | ||||||||||||||||||||||
Unrealized gain (loss) on marketable securities | ( | ( | ( | ||||||||||||||||||||
Unrealized gain (loss) on cash flow hedge | ( | ||||||||||||||||||||||
Comprehensive income | $ | $ | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||
Shares of common stock issued and outstanding | |||||||||||||||||||||||||||||
Beginning balance | |||||||||||||||||||||||||||||
Common stock issued under employee equity incentive plans | |||||||||||||||||||||||||||||
Repurchase of common stock | ( | ( | ( | ( | |||||||||||||||||||||||||
Ending balance | |||||||||||||||||||||||||||||
Stockholders' equity | |||||||||||||||||||||||||||||
Beginning balance | $ | $ | $ | $ | |||||||||||||||||||||||||
Common stock: | |||||||||||||||||||||||||||||
Beginning balance | $ | $ | $ | $ | |||||||||||||||||||||||||
Common stock issued under employee equity incentive plans | |||||||||||||||||||||||||||||
Ending balance | $ | $ | $ | $ | |||||||||||||||||||||||||
Treasury stock, at cost: | |||||||||||||||||||||||||||||
Beginning balance | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||||||||
Repurchase of common stock | ( | ( | ( | ( | |||||||||||||||||||||||||
Ending balance | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||||||||
Dividends paid: | |||||||||||||||||||||||||||||
Beginning balance | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||||||||
Payments for dividends | ( | ( | ( | ( | |||||||||||||||||||||||||
Ending balance | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||||||||
Additional paid-in capital: | |||||||||||||||||||||||||||||
Beginning balance | $ | $ | $ | $ | |||||||||||||||||||||||||
Common stock issued under employee equity incentive plans | |||||||||||||||||||||||||||||
Stock-based compensation | |||||||||||||||||||||||||||||
Ending balance | $ | $ | $ | $ | |||||||||||||||||||||||||
Accumulated other comprehensive income (loss): | |||||||||||||||||||||||||||||
Beginning balance | $ | $ | ( | $ | ( | $ | ( | ||||||||||||||||||||||
Realized loss reclassified to earnings | ( | ||||||||||||||||||||||||||||
Unrealized gain (loss) on marketable securities, net of tax | ( | ( | ( | ||||||||||||||||||||||||||
Unrealized gain (loss) on cash flow hedge, net of tax | ( | ||||||||||||||||||||||||||||
Ending balance | $ | $ | ( | $ | $ | ( | |||||||||||||||||||||||
Accumulated deficit: | |||||||||||||||||||||||||||||
Beginning balance | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||||||||
Net income | |||||||||||||||||||||||||||||
Ending balance | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||||||||
Total stockholders' equity | $ | $ | $ | $ |
Nine Months Ended September 30, | |||||||||||
2023 | 2022 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Stock-based compensation | |||||||||||
Other non-cash items | |||||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable | ( | ||||||||||
Inventory | ( | ||||||||||
Prepaid expenses and other assets | ( | ||||||||||
Accounts payable | ( | ( | |||||||||
Accrued liabilities | ( | ||||||||||
Deferred revenue | |||||||||||
Net cash provided by operating activities | |||||||||||
Cash flows from investing activities: | |||||||||||
Proceeds from sales of marketable securities | |||||||||||
Proceeds from maturities of marketable securities | |||||||||||
Purchases of marketable securities | ( | ( | |||||||||
Purchases of property and equipment | ( | ( | |||||||||
Net cash provided by investing activities | |||||||||||
Cash flows from financing activities: | |||||||||||
Proceeds from issuance of common stock under employee equity incentive plans | |||||||||||
Repurchase of common stock | ( | ( | |||||||||
Payments for dividends | ( | ( | |||||||||
Net cash used in financing activities | ( | ( | |||||||||
Net increase (decrease) in cash and cash equivalents | ( | ||||||||||
Cash and cash equivalents—beginning of period | |||||||||||
Cash and cash equivalents—end of period | $ | $ | |||||||||
Non-cash investing and financing activities: | |||||||||||
Transfers between inventory and property and equipment | $ | $ | |||||||||
Purchases of property and equipment included in accounts payable | $ | $ | |||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
Customers | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||
Customer A (an end-customer) | * | |||||||||||||||||||||||||
Customer B (an end-customer) | * | * | * | |||||||||||||||||||||||
As of September 30, 2023 | ||||||||
Operating leases | ||||||||
Right-of-use assets: | ||||||||
Other non-current assets | $ | |||||||
Total right-of-use assets | $ | |||||||
Lease liabilities: | ||||||||
Accrued liabilities | $ | |||||||
Other non-current liabilities | ||||||||
Total operating lease liabilities | $ | |||||||
Remainder of 2023 | $ | ||||
2024 | |||||
2025 | |||||
2026 | |||||
2027 | |||||
Thereafter | |||||
Total lease payments | |||||
Less: imputed interest | ( | ||||
Present value of lease liabilities | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Operating lease costs | $ | $ | $ | $ | |||||||||||||||||||
Short-term lease costs | |||||||||||||||||||||||
Total lease costs | $ | $ | $ | $ | |||||||||||||||||||
Three Months Ended September 30, 2023 | ||||||||
Weighted-average remaining term (years) | ||||||||
Weighted-average discount rate |
Three Months Ended September 30, 2023 | ||||||||
Cash paid for amounts included in the measurement of lease liabilities: | ||||||||
Operating cash flows from operating leases | $ | |||||||
Right-of-use assets obtained in exchange for new lease liabilities | $ |
As of September 30, 2023 | As of December 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||||||||||||||||||||||||||||||||
Corporate debt securities | $ | $ | $ | ( | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||||
U.S. Treasury and agency securities | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
Commercial paper | ||||||||||||||||||||||||||||||||||||||||||||||||||
Asset-backed securities | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | ( | $ | $ | $ | $ | ( | $ |
As of September 30, 2023 | Amortized Cost | Fair Value | ||||||||||||
Mature in less than 1 year | $ | $ | ||||||||||||
Mature in 1 - 3 years | ||||||||||||||
Total | $ | $ | ||||||||||||
Less Than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||||||||||||||||
As of September 30, 2023 | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | ||||||||||||||||||||||||||||||||
Corporate debt securities | $ | $ | ( | $ | $ | $ | $ | ( | ||||||||||||||||||||||||||||||
U.S. Treasury and agency securities | ( | ( | ||||||||||||||||||||||||||||||||||||
$ | $ | ( | $ | $ | $ | $ | ( |
Less Than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||||||||||||||||
As of December 31, 2022 | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | ||||||||||||||||||||||||||||||||
Corporate debt securities | $ | $ | ( | $ | $ | ( | $ | $ | ( | |||||||||||||||||||||||||||||
U.S. Treasury and agency securities | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Asset-backed securities | ( | ( | ||||||||||||||||||||||||||||||||||||
$ | $ | ( | $ | $ | ( | $ | $ | ( |
As of September 30, 2023 | As of December 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||||||||||||||
Cash | $ | $ | — | $ | — | $ | $ | $ | — | $ | — | $ | |||||||||||||||||||||||||||||||||||
Cash equivalents | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Corporate debt securities | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
U.S. Treasury and agency securities | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Commercial paper | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Asset-backed securities | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | — | $ | $ | $ | $ | — | $ | |||||||||||||||||||||||||||||||||||||
As of September 30, 2023 | As of December 31, 2022 | ||||||||||
Raw materials | $ | $ | |||||||||
Finished goods | |||||||||||
Total inventory | $ | $ |
As of September 30, 2023 | As of December 31, 2022 | ||||||||||
Prepaid expenses | $ | $ | |||||||||
Deferred contract acquisition costs | |||||||||||
Other | |||||||||||
Total prepaid expenses and other current assets | $ | $ |
Useful Life | As of September 30, 2023 | As of December 31, 2022 | |||||||||||||||
(in years) | |||||||||||||||||
Equipment | 1 - 5 | $ | $ | ||||||||||||||
Software(1) | 1 - 6 | ||||||||||||||||
Furniture and fixtures | 1 - 7 | ||||||||||||||||
Leasehold improvements | Lease term | ||||||||||||||||
Construction in process | |||||||||||||||||
Property and equipment, gross | |||||||||||||||||
Less: accumulated depreciation | ( | ( | |||||||||||||||
Property and equipment, net | $ | $ |
As of September 30, 2023 | As of December 31, 2022 | ||||||||||
Accrued compensation and benefits | $ | $ | |||||||||
Accrued tax liabilities | |||||||||||
Lease liabilities | |||||||||||
Other | |||||||||||
Total accrued liabilities | $ | $ |
As of September 30, 2023 | As of December 31, 2022 | ||||||||||
Deferred revenue: | |||||||||||
Products | $ | $ | |||||||||
Services | |||||||||||
Total deferred revenue | |||||||||||
Less: current portion | ( | ( | |||||||||
Non-current portion | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Stock-based compensation by type of award: | |||||||||||||||||||||||
Stock awards | $ | $ | $ | $ | |||||||||||||||||||
Employee stock purchase rights | |||||||||||||||||||||||
$ | $ | $ | $ | ||||||||||||||||||||
Stock-based compensation by category of expense: | |||||||||||||||||||||||
Cost of revenue | $ | $ | $ | $ | |||||||||||||||||||
Sales and marketing | |||||||||||||||||||||||
Research and development | |||||||||||||||||||||||
General and administrative | |||||||||||||||||||||||
$ | $ | $ | $ |
Number of Shares (thousands) | Weighted-Average Exercise Price Per Share | Weighted-Average Remaining Contractual Term (years) | Aggregate Intrinsic Value (thousands) | |||||||||||||||||||||||
Outstanding as of December 31, 2022 | $ | |||||||||||||||||||||||||
Exercised | ( | |||||||||||||||||||||||||
Outstanding as of September 30, 2023 | $ | |||||||||||||||||||||||||
Vested and exercisable as of September 30, 2023 | $ | $ |
Number of Shares (thousands) | Weighted-Average Grant Date Fair Value Per Share | Weighted-Average Remaining Vesting Term (years) | Aggregate Fair Value (thousands) | |||||||||||||||||||||||
Nonvested as of December 31, 2022 | $ | |||||||||||||||||||||||||
Granted | ||||||||||||||||||||||||||
Released | ( | |||||||||||||||||||||||||
Canceled | ( | |||||||||||||||||||||||||
Nonvested as of September 30, 2023 | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Basic and diluted net income per share | |||||||||||||||||||||||
Numerator: | |||||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Denominator: | |||||||||||||||||||||||
Weighted-average shares outstanding - basic | |||||||||||||||||||||||
Effect of dilutive potential common shares from stock options, stock awards and employee stock purchase plan | |||||||||||||||||||||||
Weighted-average shares outstanding - diluted | |||||||||||||||||||||||
Net income per share: | |||||||||||||||||||||||
Basic | $ | $ | $ | $ | |||||||||||||||||||
Diluted | $ | $ | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Stock options, restricted stock units and employee stock purchase rights |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Americas | $ | $ | $ | $ | |||||||||||||||||||
United States | |||||||||||||||||||||||
Americas-other | |||||||||||||||||||||||
APJ | |||||||||||||||||||||||
APAC | |||||||||||||||||||||||
Japan | |||||||||||||||||||||||
EMEA | |||||||||||||||||||||||
Total revenue | $ | $ | $ | $ |
As of September 30, 2023 | As of December 31, 2022 | ||||||||||
Americas | $ | $ | |||||||||
Japan | |||||||||||
Other | |||||||||||
Total | $ | $ |
As of September 30, 2023 | As of December 31, 2022 | ||||||||||
Accounts receivable, net | $ | $ | |||||||||
Deferred revenue, current | |||||||||||
Deferred revenue, non-current |
As of September 30, 2023 | ||||||||
Within 1 year | $ | |||||||
Next 2 to 3 years | ||||||||
Thereafter | ||||||||
Total | $ |
Three Months Ended September 30, | |||||||||||||||||||||||||||||||||||
2023 | 2022 | Increase (Decrease) | |||||||||||||||||||||||||||||||||
Amount | Percent of Total Revenue | Amount | Percent of Total Revenue | Amount | Percent | ||||||||||||||||||||||||||||||
Revenue: | |||||||||||||||||||||||||||||||||||
Products | $ | 30,260 | 52.4 | % | $ | 45,104 | 62.6 | % | $ | (14,844) | (32.9) | % | |||||||||||||||||||||||
Services | 27,515 | 47.6 | 26,955 | 37.4 | 560 | 2.1 | |||||||||||||||||||||||||||||
Total revenue | 57,775 | 100.0 | 72,059 | 100.0 | (14,284) | (19.8) | |||||||||||||||||||||||||||||
Cost of revenue: | |||||||||||||||||||||||||||||||||||
Products | 6,815 | 11.8 | 10,191 | 14.1 | (3,376) | (33.1) | |||||||||||||||||||||||||||||
Services | 4,194 | 7.3 | 4,574 | 6.3 | (380) | (8.3) | |||||||||||||||||||||||||||||
Total cost of revenue | 11,009 | 19.1 | 14,765 | 20.5 | (3,756) | (25.4) | |||||||||||||||||||||||||||||
Gross profit | 46,766 | 80.9 | 57,294 | 79.5 | (10,528) | (18.4) | |||||||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||||||||
Sales and marketing | 21,324 | 36.9 | 21,605 | 30.0 | (281) | (1.3) | |||||||||||||||||||||||||||||
Research and development | 17,620 | 30.5 | 14,360 | 19.9 | 3,260 | 22.7 | |||||||||||||||||||||||||||||
General and administrative | 5,613 | 9.7 | 5,661 | 7.9 | (48) | (0.8) | |||||||||||||||||||||||||||||
Total operating expenses | 44,557 | 77.1 | 41,626 | 57.8 | 2,931 | 7.0 | |||||||||||||||||||||||||||||
Income from operations | 2,209 | 3.8 | 15,668 | 21.7 | (13,459) | (85.9) | |||||||||||||||||||||||||||||
Non-operating income (expense), net: | |||||||||||||||||||||||||||||||||||
Interest income | 1,766 | 3.1 | 432 | 0.6 | 1,334 | 308.8 | |||||||||||||||||||||||||||||
Other income (expense), net | 987 | 1.7 | (871) | (1.2) | 1,858 | (213.3) | |||||||||||||||||||||||||||||
Non-operating income (expense), net | 2,753 | 4.8 | (439) | (0.6) | 3,192 | (727.1) | |||||||||||||||||||||||||||||
Income before provision for (benefit from) income taxes | 4,962 | 8.6 | 15,229 | 21.1 | (10,267) | (67.4) | |||||||||||||||||||||||||||||
Income tax provision (benefit) | (1,507) | (2.6) | 3,116 | 4.3 | (4,623) | (148.4) | |||||||||||||||||||||||||||||
Net income | $ | 6,469 | 11.2 | % | $ | 12,113 | 16.8 | % | $ | (5,644) | (46.6) | % |
Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||
2023 | 2022 | Increase (Decrease) | |||||||||||||||||||||||||||||||||
Amount | Percent of Total Revenue | Amount | Percent of Total Revenue | Amount | Percent | ||||||||||||||||||||||||||||||
Revenue: | |||||||||||||||||||||||||||||||||||
Products | $ | 100,532 | 55.5 | % | $ | 123,624 | 61.0 | % | $ | (23,092) | (18.7) | % | |||||||||||||||||||||||
Services | 80,751 | 44.5 | 79,080 | 39.0 | 1,671 | 2.1 | |||||||||||||||||||||||||||||
Total revenue | 181,283 | 100.0 | 202,704 | 100.0 | (21,421) | (10.6) | |||||||||||||||||||||||||||||
Cost of revenue: | |||||||||||||||||||||||||||||||||||
Products | 22,334 | 12.3 | 28,342 | 14.0 | (6,008) | (21.2) | |||||||||||||||||||||||||||||
Services | 12,354 | 6.8 | 12,747 | 6.3 | (393) | (3.1) | |||||||||||||||||||||||||||||
Total cost of revenue | 34,688 | 19.1 | 41,089 | 20.3 | (6,401) | (15.6) | |||||||||||||||||||||||||||||
Gross profit | 146,595 | 80.9 | 161,615 | 79.7 | (15,020) | (9.3) | |||||||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||||||||
Sales and marketing | 64,526 | 35.6 | 66,159 | 32.6 | (1,633) | (2.5) | |||||||||||||||||||||||||||||
Research and development | 43,250 | 23.9 | 41,483 | 20.5 | 1,767 | 4.3 | |||||||||||||||||||||||||||||
General and administrative | 18,177 | 10.0 | 17,160 | 8.5 | 1,017 | 5.9 | |||||||||||||||||||||||||||||
Total operating expenses | 125,953 | 69.5 | 124,802 | 61.6 | 1,151 | 0.9 | |||||||||||||||||||||||||||||
Income from operations | 20,642 | 11.4 | 36,813 | 18.2 | (16,171) | (43.9) | |||||||||||||||||||||||||||||
Non-operating income (expense), net: | |||||||||||||||||||||||||||||||||||
Interest income | 3,401 | 1.9 | 736 | 0.4 | 2,665 | 362.1 | |||||||||||||||||||||||||||||
Other income (expense), net | 653 | 0.4 | (1,204) | (0.6) | 1,857 | (154.2) | |||||||||||||||||||||||||||||
Non-operating income (expense), net | 4,054 | 2.2 | (468) | (0.2) | 4,522 | (966.2) | |||||||||||||||||||||||||||||
Income before provision for (benefit from) income taxes | 24,696 | 13.6 | 36,345 | 17.9 | (11,649) | (32.1) | |||||||||||||||||||||||||||||
Provision for (benefit from) income taxes | 2,643 | 1.5 | 7,467 | 3.7 | (4,824) | (64.6) | |||||||||||||||||||||||||||||
Net income | $ | 22,053 | 12.2 | % | $ | 28,878 | 14.2 | % | $ | (6,825) | (23.6) | % | |||||||||||||||||||||||
Three Months Ended September 30, | |||||||||||||||||||||||||||||||||||
2023 | 2022 | Increase (Decrease) | |||||||||||||||||||||||||||||||||
Amount | Percent of Total Revenue | Amount | Percent of Total Revenue | Amount | Percent | ||||||||||||||||||||||||||||||
Revenue: | |||||||||||||||||||||||||||||||||||
Products | $ | 30,260 | 52 | % | $ | 45,104 | 63 | % | $ | (14,844) | (33) | % | |||||||||||||||||||||||
Services | 27,515 | 48 | 26,955 | 37 | 560 | 2 | % | ||||||||||||||||||||||||||||
Total revenue | $ | 57,775 | 100 | % | $ | 72,059 | 100 | % | $ | (14,284) | (20) | % | |||||||||||||||||||||||
Revenue by geographic region: | |||||||||||||||||||||||||||||||||||
Americas | $ | 25,818 | 45 | % | $ | 35,995 | 50 | % | $ | (10,177) | (28) | % | |||||||||||||||||||||||
United States | 23,777 | 41 | % | 29,219 | 41 | % | (5,442) | (19) | % | ||||||||||||||||||||||||||
Americas-other | 2,041 | 4 | % | 6,776 | 9 | % | (4,735) | (70) | % | ||||||||||||||||||||||||||
APJ | 21,196 | 37 | % | 24,860 | 34 | % | (3,664) | (15) | % | ||||||||||||||||||||||||||
APAC | 6,964 | 12 | % | 9,487 | 13 | % | (2,523) | (27) | % | ||||||||||||||||||||||||||
Japan | 14,232 | 25 | % | 15,373 | 21 | % | (1,141) | (7) | % | ||||||||||||||||||||||||||
EMEA | 10,761 | 18 | % | 11,204 | 16 | % | (443) | (4) | % | ||||||||||||||||||||||||||
Total revenue | $ | 57,775 | 100 | % | $ | 72,059 | 100 | % | $ | (14,284) | (20) | % | |||||||||||||||||||||||
Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||
2023 | 2022 | Increase (Decrease) | |||||||||||||||||||||||||||||||||
Amount | Percent of Total Revenue | Amount | Percent of Total Revenue | Amount | Percent | ||||||||||||||||||||||||||||||
Revenue: | |||||||||||||||||||||||||||||||||||
Products | $ | 100,532 | 55 | % | $ | 123,624 | 61 | % | $ | (23,092) | (19) | % | |||||||||||||||||||||||
Services | 80,751 | 45 | 79,080 | 39 | 1,671 | 2 | % | ||||||||||||||||||||||||||||
Total revenue | $ | 181,283 | 100 | % | $ | 202,704 | 100 | % | $ | (21,421) | (11) | % | |||||||||||||||||||||||
Revenue by geographic region: | |||||||||||||||||||||||||||||||||||
Americas | $ | 92,695 | 51 | % | $ | 107,506 | 53 | % | $ | (14,811) | (14) | % | |||||||||||||||||||||||
United States | 79,738 | 44 | % | 92,149 | 45 | % | (12,411) | (13) | % | ||||||||||||||||||||||||||
Americas-other | 12,957 | 7 | % | 15,357 | 8 | % | (2,400) | (16) | % | ||||||||||||||||||||||||||
APJ | 58,938 | 33 | % | 64,263 | 32 | % | (5,325) | (8) | % | ||||||||||||||||||||||||||
APAC | 22,001 | 12 | % | 23,700 | 12 | % | (1,699) | (7) | % | ||||||||||||||||||||||||||
Japan | 36,937 | 20 | % | 40,563 | 20 | % | (3,626) | (9) | % | ||||||||||||||||||||||||||
EMEA | 29,650 | 16 | % | 30,935 | 15 | % | (1,285) | (4) | % | ||||||||||||||||||||||||||
Total revenue | $ | 181,283 | 100 | % | $ | 202,704 | 100 | % | $ | (21,421) | (11) | % | |||||||||||||||||||||||
Three Months Ended September 30, | Increase (Decrease) | ||||||||||||||||||||||
2023 | 2022 | Amount | Percent | ||||||||||||||||||||
Cost of revenue: | |||||||||||||||||||||||
Products | $ | 6,815 | $ | 10,191 | $ | (3,376) | (33.1) | % | |||||||||||||||
Services | 4,194 | 4,574 | (380) | (8.3) | |||||||||||||||||||
Total cost of revenue | $ | 11,009 | $ | 14,765 | $ | (3,756) | (25.4) | % |
Nine Months Ended September 30, | Increase (Decrease) | ||||||||||||||||||||||
2023 | 2022 | Amount | Percent | ||||||||||||||||||||
Cost of revenue: | |||||||||||||||||||||||
Products | $ | 22,334 | $ | 28,342 | $ | (6,008) | (21.2) | % | |||||||||||||||
Services | 12,354 | 12,747 | (393) | (3.1) | |||||||||||||||||||
Total cost of revenue | $ | 34,688 | $ | 41,089 | $ | (6,401) | (15.6) | % | |||||||||||||||
Three Months Ended September 30, | |||||||||||||||||||||||||||||||||||
2023 | 2022 | Increase (Decrease) | |||||||||||||||||||||||||||||||||
Amount | Gross Margin | Amount | Gross Margin | Amount | Gross Margin | ||||||||||||||||||||||||||||||
Gross profit: | |||||||||||||||||||||||||||||||||||
Products | $ | 23,445 | 77.5 | % | $ | 34,913 | 77.4 | % | $ | (11,468) | 0.1 | % | |||||||||||||||||||||||
Services | 23,321 | 84.8 | 22,381 | 83.0 | 940 | 1.8 | |||||||||||||||||||||||||||||
Total gross profit | $ | 46,766 | 80.9 | % | $ | 57,294 | 79.5 | % | $ | (10,528) | 1.4 | % |
Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||
2023 | 2022 | Increase (Decrease) | |||||||||||||||||||||||||||||||||
Amount | Gross Margin | Amount | Gross Margin | Amount | Gross Margin | ||||||||||||||||||||||||||||||
Gross profit: | |||||||||||||||||||||||||||||||||||
Products | $ | 78,198 | 77.8 | % | $ | 95,282 | 77.1 | % | $ | (17,084) | 0.7 | % | |||||||||||||||||||||||
Services | 68,397 | 84.7 | 66,333 | 83.9 | 2,064 | 0.8 | |||||||||||||||||||||||||||||
Total gross profit | $ | 146,595 | 80.9 | % | $ | 161,615 | 79.7 | % | $ | (15,020) | 1.2 | % | |||||||||||||||||||||||
Three Months Ended September 30, | Increase (Decrease) | ||||||||||||||||||||||
2023 | 2022 | Amount | Percent | ||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Sales and marketing | $ | 21,324 | $ | 21,605 | $ | (281) | (1.3) | % | |||||||||||||||
Research and development | 17,620 | 14,360 | 3,260 | 22.7 | |||||||||||||||||||
General and administrative | 5,613 | 5,661 | (48) | (0.8) | |||||||||||||||||||
Total operating expenses | $ | 44,557 | $ | 41,626 | $ | 2,931 | 7.0 | % |
Nine Months Ended September 30, | Increase (Decrease) | ||||||||||||||||||||||
2023 | 2022 | Amount | Percent | ||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Sales and marketing | $ | 64,526 | $ | 66,159 | $ | (1,633) | (2.5) | % | |||||||||||||||
Research and development | 43,250 | 41,483 | 1,767 | 4.3 | |||||||||||||||||||
General and administrative | 18,177 | 17,160 | 1,017 | 5.9 | |||||||||||||||||||
Total operating expenses | $ | 125,953 | $ | 124,802 | $ | 1,151 | 0.9 | % | |||||||||||||||
Nine Months Ended September 30, | |||||||||||
2023 | 2022 | ||||||||||
Cash provided by (used in): | |||||||||||
Operating activities | $ | 41,783 | $ | 38,773 | |||||||
Investing activities | 13,443 | 540 | |||||||||
Financing activities | (19,045) | (86,107) | |||||||||
Net increase (decrease) in cash and cash equivalents | $ | 36,181 | $ | (46,794) |
Fair Value as of | |||||||||||||||||||||||||||||||||||||||||
(150 BPS) | (100 BPS) | (50 BPS) | 9/30/2023 | 50 BPS | 100 BPS | 150 BPS | |||||||||||||||||||||||||||||||||||
Marketable securities | $ | 65,446 | $ | 65,260 | $ | 65,075 | $ | 64,889 | $ | 64,703 | $ | 64,516 | $ | 64,330 |
Periods | Total Number of Shares Purchased | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs (1) | |||||||||||||||||||||||||
July 1 - 31, 2023 | — | $ | — | — | $ | 43,771 | |||||||||||||||||||||||
August 1 - 31, 2023 | 97 | $ | 14.42 | 97 | $ | 42,370 | |||||||||||||||||||||||
September 1 - 30, 2023 | 71 | $ | 14.66 | 71 | $ | 41,328 | |||||||||||||||||||||||
Total | 168 | $ | 41,328 |
Exhibit Number | Description | |||||||
3.1 | ||||||||
3.2 | ||||||||
31.1* | ||||||||
31.2* | ||||||||
32.1** | ||||||||
32.2** | ||||||||
101* | Inline XBRL Document Set for the condensed consolidated financial statements and accompanying notes in Part I – Item 1, “Condensed Consolidated Financial Statements (Unaudited)” of this Quarterly Report on Form 10-Q | |||||||
104* | Inline XBRL for the cover page of this Quarterly Report on Form 10-Q, included in the Exhibit 101 Inline XBRL Document Set |
A10 NETWORKS, INC. |
By: /s/ Dhrupad Trivedi | |||||
Dhrupad Trivedi | |||||
President and Chief Executive Officer (Principal Executive Officer) |
By: /s/ Brian Becker | |||||
Brian Becker | |||||
Chief Financial Officer (Principal Accounting and Financial Officer) |
Date: | November 7, 2023 | By: /s/ Dhrupad Trivedi | |||||||||
Dhrupad Trivedi | |||||||||||
President and Chief Executive Officer |
Date: | November 7, 2023 | By: /s/ Brian Becker | |||||||||
Brian Becker | |||||||||||
Chief Financial Officer | |||||||||||
(Principal Accounting and Financial Officer) |
Date: | November 7, 2023 | By: /s/ Dhrupad Trivedi | |||||||||
Dhrupad Trivedi | |||||||||||
President and Chief Executive Officer |
Date: | November 7, 2023 | By: /s/ Brian Becker | |||||||||
Brian Becker | |||||||||||
Chief Financial Officer | |||||||||||
(Principal Accounting and Financial Officer) |
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable | $ 197 | $ 32 |
Common Stock, par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 88,739,000 | 87,123,000 |
Common stock, shares outstanding (in shares) | 74,750,000 | 73,738,000 |
Treasury Stock, Common, Shares | 13,989,000 | 13,384,000 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Revenue: | ||||
Total revenue | $ 57,775 | $ 72,059 | $ 181,283 | $ 202,704 |
Cost of revenue: | ||||
Total cost of revenue | 11,009 | 14,765 | 34,688 | 41,089 |
Gross profit | 46,766 | 57,294 | 146,595 | 161,615 |
Operating expenses: | ||||
Sales and marketing | 21,324 | 21,605 | 64,526 | 66,159 |
Research and development | 17,620 | 14,360 | 43,250 | 41,483 |
General and administrative | 5,613 | 5,661 | 18,177 | 17,160 |
Total operating expenses | 44,557 | 41,626 | 125,953 | 124,802 |
Income from operations | 2,209 | 15,668 | 20,642 | 36,813 |
Non-operating income (expense), net: | ||||
Other income (expense), net | 1,766 | 432 | 3,401 | 736 |
Other Nonoperating Income (Expense) | 987 | (871) | 653 | (1,204) |
Non-operating income (expense), net | 2,753 | (439) | 4,054 | (468) |
Income (Loss) Attributable to Parent, before Tax | 4,962 | 15,229 | 24,696 | 36,345 |
Income tax provision (benefit) | (1,507) | 3,116 | 2,643 | 7,467 |
Net income | $ 6,469 | $ 12,113 | $ 22,053 | $ 28,878 |
Net income per share: | ||||
Basic | $ 0.09 | $ 0.16 | $ 0.30 | $ 0.38 |
Diluted | $ 0.09 | $ 0.16 | $ 0.29 | $ 0.37 |
Weighted-average shares used in computing net income per share: | ||||
Basic | 74,526 | 75,881 | 74,184 | 76,191 |
Diluted | 75,807 | 77,679 | 75,639 | 78,454 |
Products | ||||
Revenue: | ||||
Total revenue | $ 30,260 | $ 45,104 | $ 100,532 | $ 123,624 |
Cost of revenue: | ||||
Total cost of revenue | 6,815 | 10,191 | 22,334 | 28,342 |
Services | ||||
Revenue: | ||||
Total revenue | 27,515 | 26,955 | 80,751 | 79,080 |
Cost of revenue: | ||||
Total cost of revenue | $ 4,194 | $ 4,574 | $ 12,354 | $ 12,747 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 6,469 | $ 12,113 | $ 22,053 | $ 28,878 |
Other comprehensive income (expense), net of tax: | ||||
Realized loss reclassified to earnings | 0 | 0 | (265) | 0 |
Unrealized gain (loss) on marketable securities | (177) | (135) | 1,208 | (1,112) |
Unrealized gain (loss) on cash flow hedge | (31) | 0 | 117 | 0 |
Comprehensive income | $ 6,261 | $ 11,978 | $ 23,113 | $ 27,766 |
Description of Business and Summary of Significant Accounting Policies |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Description of Business and Significant Accounting Policies | Description of Business and Summary of Significant Accounting Policies Description of Business A10 Networks, Inc. (together with our subsidiaries, the “Company”, “we”, “our” or “us”) was incorporated in California in 2004 and reincorporated in Delaware in March 2014. We are headquartered in San Jose, California and have wholly-owned subsidiaries throughout the world including Asia and Europe. We are a leading provider of secure application solutions and services that enable a new generation of intelligently connected companies with the ability to continuously improve cyber protection and digital responsiveness across dynamic Information Technology (“IT”) and network infrastructures. Our product portfolio seeks to address many of the cyber protection challenges and solution requirements. The portfolio consists of six secure application solutions; Thunder Application Delivery Controller (“ADC”), Lightning Application Delivery Controller (“Lightning ADC”), Thunder Carrier Grade Networking (“CGN”), Thunder Threat Protection System (“TPS”), Thunder SSL Insight (“SSLi”) and Thunder Convergent Firewall (“CFW”), and two intelligent management and automation tools; Harmony Controller and aGalaxy TPS. Our solutions are available in a variety of form factors, such as optimized hardware appliances, bare metal software, containerized software, virtual appliances and cloud-native software. Our customers include leading service providers (cloud, telecommunications, multiple system operators, cable), government organizations, and enterprises. We derive revenue from two sources: (i) products revenue, which includes hardware, perpetual software license and subscription offerings, which include term-based license agreements and software-as-a-service; and (ii) services revenue, which includes post contract support (“PCS”), professional services, and training. Revenue for term-based license agreements is recognized at a point in time when the Company delivers the software license to the customer and over time once the subscription term has commenced. For our software-as-a-service offerings, our customers do not take possession of the Company’s software but rather we provide access to the service via a hosting arrangement. Revenue in these arrangements is recognized over time as the services are provided. A substantial portion of our revenue is from sales of our products and services through distribution channel partners, such as resellers and distributors. Our customers predominantly purchase PCS services in conjunction with purchases of our products. We recognize services revenue ratably over the term of the PCS contract, which is typically one year, but can be up to seven years. We sell our products globally to service providers and enterprises that depend on data center applications and networks to generate revenue and manage operations efficiently. We report two customer verticals: service providers and enterprises and we report customer revenues in three broad geographic regions: the Americas, APJ and EMEA regions. The Americas region comprises the United States and all other countries in the Americas (excluding the United States). The APJ region comprises Japan and all other countries in APAC (excluding Japan). The EMEA region comprises Europe, Middle East and Africa. We believe this vertical and geographic view aligns with how we manage the business and maps our product portfolio to customer verticals. Our end-customers operate in a variety of industries, including telecommunications, technology, industrial, retail, financial, gaming, education and government. Since inception, our customer base has grown rapidly. As of September 30, 2023, we have sold our products to more than 8,290 end-customers worldwide since our inception. We sell substantially all of our solutions through our high-touch sales organization as well as distribution channel partners, including distributors, value-added resellers and system integrators, and fulfill nearly all orders globally through such partners. We believe this sales approach allows us to obtain the benefits of channel distribution, such as expanding our market coverage, while still maintaining face-to-face relationships with our end-customers. We outsource the manufacturing of our hardware products to original design manufacturers. We perform quality assurance and testing at our San Jose, Taiwan and Japan distribution centers, as well as at our manufacturers’ locations. Basis of Presentation The accompanying unaudited condensed consolidated financial statements include those of A10 Networks, Inc. and its subsidiaries after elimination of all intercompany accounts and transactions. We have prepared the accompanying unaudited condensed consolidated financial statements pursuant to the rules and regulations of the United States Securities and Exchange Commission (the “SEC” or the “Commission”). As permitted under these rules and regulations, we have condensed or omitted certain financial information and footnote disclosures we normally include in our annual consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The unaudited condensed consolidated balance sheet as of December 31, 2022 has been derived from our audited financial statements, which are included in our 2022 Annual Report on Form 10-K for the year ended December 31, 2022 on file with the SEC (the “2022 Annual Report”). These financial statements have been prepared on the same basis as our annual financial statements and, in management’s opinion, reflect all adjustments consisting only of normal recurring adjustments that are necessary for a fair presentation of our financial information. Our interim period operating results do not necessarily indicate the results that may be expected for any other interim period or for the full fiscal year. These financial statements and accompanying notes should be read in conjunction with the financial statements and accompanying notes thereto in the 2022 Annual Report. Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Those estimates and assumptions affect revenue recognition and deferred revenue, the allowance for doubtful accounts, the sales return reserve, the valuation of inventory, the fair value of marketable securities, contingencies and litigation, accrued liabilities, deferred commissions and the determination of fair value of stock-based compensation. These estimates are based on information available as of the date of the condensed consolidated financial statements. Significant Accounting Policies The Company’s significant accounting policies are disclosed in Part II – Item 8, “Financial Statements and Supplementary Data” of the 2022 Annual Report filed with the SEC on February 27, 2023. There have been no material changes to the Company’s significant accounting policies during the three and nine months ended September 30, 2023. Concentration of Credit Risk and Significant Customers Financial instruments that potentially subject us to concentrations of credit risk consist of cash, cash equivalents, marketable securities and accounts receivable. Our cash, cash equivalents and marketable securities are held and invested in high credit quality financial instruments by recognized financial institutions and are subject to minimum credit risk. Our accounts receivables are unsecured and represent amounts due to us based on contractual obligations of our customers. We mitigate credit risk in respect to accounts receivable by performing periodic credit evaluations based on a number of factors, including past transaction experience, evaluation of credit history and review of the invoicing terms of the contract. We generally do not require our customers to provide collateral to support accounts receivable. Significant customers, including distribution channel partners and direct customers (end-customers), are those which represent 10% or more of our total revenue for each period presented or our gross accounts receivable balance as of each respective balance sheet date. Revenues from our significant customers as a percentage of our total revenue are as follows:
* represents less than 10% of total revenue As of September 30, 2023, two customers accounted for 11% and 10%, respectively, of our total gross accounts receivable. As of December 31, 2022, two customers accounted for 21% each of our total gross accounts receivable. Recently Adopted Accounting Pronouncements The Company’s recently adopted accounting pronouncements are disclosed in Note 1 Description of Business and Summary of Significant Accounting Policies of the notes to consolidated financial statements included in Part II – Item 8 of the 2022 Annual Report. The Company has not adopted any accounting pronouncements during the three and nine months ended September 30, 2023.
|
Leases |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | Leases The Company leases various operating spaces in the United States, Asia and Europe under non-cancellable operating lease arrangements that expire on various dates through July 2027. These arrangements require us to pay certain operating expenses, such as taxes, repairs and insurance, and contain renewal and escalation clauses. The table below presents the Company’s right-of-use assets and lease liabilities as of September 30, 2023 (in thousands):
The aggregate future lease payments for non-cancelable operating leases as of September 30, 2023 were as follows (in thousands):
The components of lease costs were as follows (in thousands):
Average lease terms and discount rates for the Company’s operating leases were as follows:
Supplemental cash flow information for the Company’s operating leases were as follows (in thousands):
|
Marketable Securities and Fair Value Measurements |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Marketable Securities and Fair Value Measurements | Marketable Securities and Fair Value Measurements Marketable Securities Marketable securities, classified as available-for-sale, consisted of the following (in thousands):
During the nine months ended September 30, 2023, we reclassified $0.3 million of expense to earnings from accumulated other comprehensive income (loss) related to unrealized losses. During the three months ended September 30, 2023 and 2022, and the nine months ended September 30, 2022, we did not reclassify any amount to earnings from accumulated other comprehensive income (loss) related to unrealized gains or losses. The following table summarizes the cost and estimated fair value of marketable securities based on stated effective maturities as of September 30, 2023 (in thousands):
All available-for-sale securities have been classified as current because they are available for use in current operations. Marketable securities in an unrealized loss position as of September 30, 2023 consisted of the following (in thousands):
Marketable securities in an unrealized loss position as of December 31, 2022 consisted of the following (in thousands):
Based on evaluation of marketable securities that have been in a continuous loss position, we did not recognize any other-than-temporary impairment charges during the three and nine months ended September 30, 2023 and 2022. Fair Value Measurements The following is a summary of our cash, cash equivalents and marketable securities measured at fair value on a recurring basis (in thousands):
There were no transfers between Level 1 and Level 2 fair value measurement categories during the three and nine months ended September 30, 2023 and 2022.
|
Condensed Consolidated Financial Statement Details |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Consolidated Financial Statement Details | Condensed Consolidated Financial Statement Details Inventory Inventory consisted of the following (in thousands):
Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following (in thousands):
Property and Equipment, Net Property and equipment, net, consisted of the following (in thousands):
(1) Acquired software has a useful life of 1 to 3 years, while internally developed software to be sold, leased or marketed has a useful life of 6 years. Acquired software totaled $1.8 million and internally developed software totaled $1.2 million as of September 30, 2023. Acquired software totaled $1.1 million and internally developed software totaled $1.4 million as of December 31, 2022. Construction in process primarily consists of deferred software development costs related to several projects that are expected to take longer than one year to complete. The first of these projects was available for release to customers in the fourth quarter of 2022. In the three months ended September 30, 2023, the Company recorded impairment expense of $3.0 million related to a long-term project that incurred delays and cost overruns. Fair value was determined using the present value of future revenue projections. Impairment expense was recorded to operating expense in the research and development function on the Company’s condensed consolidated statement of operations. Depreciation expense on property and equipment was $1.4 million and $0.7 million for the three months ended September 30, 2023 and 2022, respectively, and was $3.3 million and $2.0 million for the nine months ended September 30, 2023 and 2022, respectively. Accrued Liabilities Accrued liabilities consisted of the following (in thousands):
Deferred Revenue Deferred revenue consisted of the following (in thousands):
|
Commitments and Contingencies |
9 Months Ended |
---|---|
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Lease Commitments We lease various operating spaces in the United States, Asia and Europe under non-cancelable operating lease arrangements that expire on various dates through July 2027. These arrangements require us to pay certain operating expenses, such as taxes, repairs and insurance, and contain renewal and escalation clauses. We recognize rent expense under these arrangements on a straight-line basis over the term of the lease. See Note 2 – Leases for the Company’s aggregate future lease payments for the Company’s non-cancelable operating leases as of September 30, 2023. Rent expense was $1.2 million for both of the three months ended September 30, 2023 and 2022, and was $3.7 million for both of the nine months ended September 30, 2023 and 2022. Purchase Commitments We have open purchase commitments with third-party contract manufacturers with facilities in Taiwan to supply nearly all of our finished goods inventories, spare parts, and accessories. These purchase orders are expected to be paid within one year of the issuance date. We had open purchase commitments with manufacturers in Taiwan totaling $18.2 million as of September 30, 2023. Guarantees and Indemnifications In the normal course of business, we provide indemnifications to customers against claims of intellectual property infringement made by third parties arising from the use of our products. Other guarantees or indemnification arrangements include guarantees of product and service performance, and standby letters of credit for lease facilities and corporate credit cards. We have not recorded a liability related to these indemnification and guarantee provisions and our guarantees and indemnification arrangements have not had any significant impact on our condensed consolidated financial statements to date.
|
Equity Incentive Plans and Stock-Based Compensation |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Incentive Plans and Stock-Based Compensation | Equity Incentive Plans, Stock-Based Compensation and Stock Repurchase Program Equity Incentive Plans 2014 Equity Incentive Plan and 2023 Stock Incentive Plan The 2014 Equity Incentive Plan (the “2014 Plan”) provided for the granting of stock options, restricted stock awards, restricted stock units (“RSUs”), performance-based RSUs (“PSUs”), stock appreciation rights, performance units and performance shares to our employees, consultants and members of our Board of Directors. On April 26, 2023, the Company’s stockholders approved the A10 Networks, Inc. 2023 Stock Incentive Plan (the “2023 Plan”), which was approved by the Company’s Board of Directors on March 10, 2023. The 2023 Plan replaced the 2014 Plan and no further grants were made under the 2014 Plan after March 29, 2023. The 2023 Plan provides for the granting of stock options, restricted stock awards, restricted stock units (“RSUs”), performance-based RSUs (“PSUs”), stock appreciation rights, performance units and performance shares to our employees, consultants and members of our Board of Directors. The shares authorized for issuance under the 2023 Plan is (x) 5,600,000 shares of common stock (the “Initial Reserve”), plus (y) the sum of any outstanding stock awards granted under the 2014 Plan that following March 29, 2023 which are either (i) not issued because such award or portion thereof is forfeited or terminated for any reason before being exercised or settled or (ii) subject to vesting restrictions and are subsequently forfeited, up to a maximum of 3,475,099 shares (the “2014 Returning Shares”). As of September 30, 2023, we had 4,724,521 shares available for future grant under the 2023 Plan. 2014 Employee Stock Purchase Plan The 2014 Employee Stock Purchase Plan, as amended (the “Amended 2014 Purchase Plan”) provides employees with an opportunity to purchase our common stock through accumulated contributions, up to a maximum of 10% of eligible compensation, with offering periods of six months in duration, beginning on or about December 1 and June 1 each year. As of September 30, 2023, the Company had 968,943 shares available for future issuance under the Amended 2014 Purchase Plan. Stock-Based Compensation A summary of our stock-based compensation expense is as follows (in thousands):
As of September 30, 2023, the Company had $36.2 million of unrecognized stock-based compensation expense related to unvested stock-based awards, including under our Amended 2014 Purchase Plan, which will be recognized over a weighted-average period of 2.72 years. Stock Options The following table summarizes our stock option activities and related information:
As of September 30, 2023, the aggregate intrinsic value represents the excess of the closing price of our common stock of $15.03 over the exercise price of the outstanding in-the-money options. The intrinsic value of options exercised was $0.3 million and $2.8 million during the three months ended September 30, 2023 and 2022, respectively and was $1.2 million and was $4.5 million during the nine months ended September 30, 2023 and 2022, respectively. Stock Awards The Company has granted RSUs to its employees, consultants and members of its Board of Directors, and PSUs to certain executives and employees. The Company’s PSUs have market performance-based vesting conditions as well as service-based vesting conditions. As of September 30, 2023, there were 2,546,588 RSUs and 754,442 PSUs outstanding. The following table summarizes our stock award activities and related information:
The aggregate fair value of stock awards released was $8.4 million and $7.6 million for the three months ended September 30, 2023 and 2022, respectively, and was $12.8 million and $11.5 million for the nine months ended September 30, 2023 and 2022, respectively. Stock Repurchase Programs On October 28, 2021, the Company announced its Board of Directors authorized a stock repurchase program of up to $100 million of its common stock over a period of twelve months (the “2021 Program”). During the nine months ended September 30, 2022, the Company repurchased 6.1 million shares for a total cost of $79.3 million under the 2021 Program. This repurchase program was active for twelve months and expired in the second half of 2022. On November 1, 2022, the Company announced its Board of Directors authorized a new stock repurchase program of up to $50 million of its common stock over a period of twelve months (the “2022 Program”). Through September 30, 2023, 605 thousand shares had been repurchased under the 2022 Program for a total cost of $8.7 million. This repurchase program was active for twelve months and expired in the second half of 2023. On November 7, 2023, the Company announced its Board of Directors authorized a new stock repurchase program of up to $50 million of its common stock over a period of twelve months (the “2023 Program”). Under the Company’s stock repurchase programs, repurchased shares are held in treasury at cost. The Company’s stock repurchase programs do not obligate it to acquire any specific number of shares. Shares may be repurchased in privately negotiated and/or open market transactions, including under plans complying with Rule 10b5-1 under the Exchange Act.
|
Net Income Per Share |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income Per Share | Net Income Per Share Basic net income per share is computed using the weighted average number of common shares outstanding for the period. Diluted net income per share applying the treasury stock method is computed using the weighted average number of common shares outstanding for the period plus potential dilutive common shares, including stock options, RSUs, PSUs and employee stock purchase rights, unless the potential common shares are anti-dilutive. Basic and diluted net income per share are calculated as follows (in thousands, except per share amounts):
The following table presents common shares related to potentially dilutive shares excluded from the calculation of diluted net income per share as their effect would have been anti-dilutive (in thousands):
|
Income Taxes |
9 Months Ended |
---|---|
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes We recorded an income tax benefit of $1.5 million and an income tax provision of $3.1 million for the three months ended September 30, 2023 and 2022, respectively. The Company’s income tax benefit in the three months ended September 30, 2023 was primarily related to a foreign-derived intangible income deduction. We recorded income tax provisions of $2.6 million and $7.5 million for the nine months ended September 30, 2023 and 2022, respectively. The Company’s income tax expense for the three months ended September 30, 2022 and nine months ended September 30, 2023 and 2022 primarily consisted of U.S. federal and state taxes. We had $7.3 million of unrecognized tax benefits as of September 30, 2023. We do not anticipate a material change to our unrecognized tax benefits over the next twelve months. Unrecognized tax benefits may change during the next twelve months for items that arise in the ordinary course of business. Accrued interest and penalties related to unrecognized tax benefits are recognized as part of our provision for income taxes in our condensed consolidated statements of operations. We are subject to taxation in the United States, various states, and several foreign jurisdictions. Because we have net operating loss and credit carryforwards, there are open statutes of limitations in which federal, state and foreign taxing authorities may examine our tax returns for all years from 2005 through the current period. We are not currently under examination by any taxing authorities.
|
Geographic Information |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Geographic Information | Geographic Information We report customer revenues in three broad geographic regions: the Americas, APJ and EMEA regions. In the three months ended March 31, 2022, we changed the way we present revenue by geographic region. The Americas region comprises the United States and all other countries in the Americas (excluding the United States). The APJ region comprises Japan and all other countries in APAC (excluding Japan). We believe this vertical and revised geographic view aligns with how we manage the business and maps our product portfolio to customer verticals. This change in the way we report revenue had no impact to our key metrics including operations, comprehensive income and accumulated deficit. The following table depicts the disaggregation of revenue by geographic region based on the ship to location of our customers and is consistent with how we evaluate our financial performance (in thousands):
The following table is a summary of our long-lived assets which include property and equipment, net and operating lease right-of-use assets based on the physical location of the assets (in thousands):
|
Revenue Revenue |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | Revenue Contract Balances The following table reflects contract balances with customers (in thousands):
We receive payments from customers based upon billing cycles. Invoice payment terms usually range from 30 to 90 days. Accounts receivable are recorded when the right to consideration becomes unconditional. Contract assets include amounts related to our contractual right to consideration for performance obligations not yet billed and are included in prepaid and other current assets in the condensed consolidated balance sheets. The amounts were immaterial as of September 30, 2023 and December 31, 2022. Deferred revenue primarily consists of amounts that have been invoiced but not yet been recognized as revenue and consists of performance obligations pertaining to support and subscription services. We recognized revenue of $25.8 million and $20.3 million during the three months ended September 30, 2023 and 2022, respectively, related to deferred revenues at the beginning of the respective periods. We recognized revenue of $60.0 million and $59.5 million during the nine months ended September 30, 2023 and 2022, respectively, related to deferred revenues at the beginning of the respective periods. Deferred Contract Acquisition Costs We capitalize certain contract acquisition costs consisting of incremental sales commissions incurred to obtain customer contracts. Deferred commissions related to product revenues are recognized upon transfer of control to customers. Deferred commissions related to services revenue are recognized as the related performance obligations are met. Deferred commissions that will be recognized during the succeeding 12-month period are recorded as prepaid expenses and other current assets, and the remaining portion is recorded as other non-current assets. Amortization of deferred commissions is included in sales and marketing expense. As of September 30, 2023, the current and non-current portions of deferred contract acquisition costs were $6.2 million and $4.3 million, respectively. As of December 31, 2022, the current and non-current portions of deferred contract acquisition costs were $6.1 million and $4.3 million, respectively. Related amortization expense was $2.0 million and $2.7 million for the three months ended September 30, 2023 and 2022, respectively, and was $4.6 million and $6.8 million for the nine months ended September 30, 2023 and 2022, respectively. We had no impairment loss in relation to the costs capitalized and no asset impairment charges related to contract assets during the three and nine months ended September 30, 2023 and 2022. Remaining Performance Obligations Remaining performance obligations represent contracted revenues that are non-cancellable and have not yet been recognized due to unsatisfied or partially satisfied performance obligations, which include deferred revenues and amounts that will be invoiced and recognized as revenues in future periods. We expect to recognize revenue on the remaining performance obligations as follows (in thousands):
|
Subsequent Events |
9 Months Ended |
---|---|
Sep. 30, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On November 7, 2023, the Company announced its Board of Directors declared a quarterly cash dividend. The dividend, in the amount of $0.06 per share outstanding, will be paid on December 1, 2023 to stockholders of record on November 17, 2023 as a return of capital. Future dividends will be subject to further review and approval by the Board in accordance with applicable law. The Board reserves the right to adjust or withdraw the quarterly dividend in future periods as it reviews the Company’s capital allocation strategy from time-to-time. Also on November 7, 2023, the Company announced its Board of Directors authorized a new $50 million share repurchase program under which the Company may repurchase up to $50 million of its outstanding common stock during the next 12 months. Under the share repurchase program, the Company is authorized to repurchase shares of common stock in the open market, privately negotiated transactions, in block trades or a combination of the foregoing. The Board will review the share repurchase program periodically and may authorize adjustment of its term and size. The Company plans to fund repurchases from its existing cash balance and cash provided by operating activities.
|
Pay vs Performance Disclosure - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Pay vs Performance Disclosure | ||||
Net income | $ 6,469 | $ 12,113 | $ 22,053 | $ 28,878 |
Insider Trading Arrangements |
3 Months Ended | 9 Months Ended |
---|---|---|
Sep. 30, 2023
shares
|
Sep. 30, 2023
shares
|
|
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | On October 4, 2023, the trading plan of Dhrupad Trivedi, the Company’s President and Chief Executive Officer, dated June 12, 2023, intended to satisfy Rule 10b5-1(c) to sell up to 60,606 shares of Company common stock between November 7, 2023 and November 9, 2023, subject to certain conditions, terminated, under which no shares were ultimately sold. | |
Rule 10b5-1 Arrangement Adopted | false | |
Non-Rule 10b5-1 Arrangement Adopted | false | |
Non-Rule 10b5-1 Arrangement Terminated | false | |
Dhrupad Trivedi [Member] | ||
Trading Arrangements, by Individual | ||
Name | Dhrupad Trivedi | |
Title | President and Chief Executive Officer | |
Adoption Date | June 12, 2023 | |
Rule 10b5-1 Arrangement Terminated | true | |
Termination Date | October 4, 2023 | |
Aggregate Available | 60,606 | 60,606 |
Description of Business and Summary of Significant Accounting Policies (Policies) |
9 Months Ended |
---|---|
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements include those of A10 Networks, Inc. and its subsidiaries after elimination of all intercompany accounts and transactions. We have prepared the accompanying unaudited condensed consolidated financial statements pursuant to the rules and regulations of the United States Securities and Exchange Commission (the “SEC” or the “Commission”). As permitted under these rules and regulations, we have condensed or omitted certain financial information and footnote disclosures we normally include in our annual consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The unaudited condensed consolidated balance sheet as of December 31, 2022 has been derived from our audited financial statements, which are included in our 2022 Annual Report on Form 10-K for the year ended December 31, 2022 on file with the SEC (the “2022 Annual Report”). These financial statements have been prepared on the same basis as our annual financial statements and, in management’s opinion, reflect all adjustments consisting only of normal recurring adjustments that are necessary for a fair presentation of our financial information. Our interim period operating results do not necessarily indicate the results that may be expected for any other interim period or for the full fiscal year. These financial statements and accompanying notes should be read in conjunction with the financial statements and accompanying notes thereto in the 2022 Annual Report.
|
Use of Estimates | Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Those estimates and assumptions affect revenue recognition and deferred revenue, the allowance for doubtful accounts, the sales return reserve, the valuation of inventory, the fair value of marketable securities, contingencies and litigation, accrued liabilities, deferred commissions and the determination of fair value of stock-based compensation. These estimates are based on information available as of the date of the condensed consolidated financial statements.
|
Concentration of Credit Risk and Significant Customers | Concentration of Credit Risk and Significant Customers Financial instruments that potentially subject us to concentrations of credit risk consist of cash, cash equivalents, marketable securities and accounts receivable. Our cash, cash equivalents and marketable securities are held and invested in high credit quality financial instruments by recognized financial institutions and are subject to minimum credit risk. Our accounts receivables are unsecured and represent amounts due to us based on contractual obligations of our customers. We mitigate credit risk in respect to accounts receivable by performing periodic credit evaluations based on a number of factors, including past transaction experience, evaluation of credit history and review of the invoicing terms of the contract. We generally do not require our customers to provide collateral to support accounts receivable. Significant customers, including distribution channel partners and direct customers (end-customers), are those which represent 10% or more of our total revenue for each period presented or our gross accounts receivable balance as of each respective balance sheet date.
|
Recently Adopted Accounting Guidance/Recent Accounting Pronouncements Not Yet Effective | Recently Adopted Accounting Pronouncements The Company’s recently adopted accounting pronouncements are disclosed in Note 1 Description of Business and Summary of Significant Accounting Policies of the notes to consolidated financial statements included in Part II – Item 8 of the 2022 Annual Report. The Company has not adopted any accounting pronouncements during the three and nine months ended September 30, 2023.
|
Deferred Contract Acquisition Costs | Deferred Contract Acquisition Costs We capitalize certain contract acquisition costs consisting of incremental sales commissions incurred to obtain customer contracts. Deferred commissions related to product revenues are recognized upon transfer of control to customers. Deferred commissions related to services revenue are recognized as the related performance obligations are met. Deferred commissions that will be recognized during the succeeding 12-month period are recorded as prepaid expenses and other current assets, and the remaining portion is recorded as other non-current assets. Amortization of deferred commissions is included in sales and marketing expense.
|
Description of Business and Summary of Significant Accounting Policies (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Revenue as Percentage of Total Revenue |
* represents less than 10% of total revenue
|
Leases (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets And Liabilities, | The table below presents the Company’s right-of-use assets and lease liabilities as of September 30, 2023 (in thousands):
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease Payments | The aggregate future lease payments for non-cancelable operating leases as of September 30, 2023 were as follows (in thousands):
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease Costs |
Average lease terms and discount rates for the Company’s operating leases were as follows:
Supplemental cash flow information for the Company’s operating leases were as follows (in thousands):
|
Marketable Securities and Fair Value Measurements (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale securities | Marketable securities, classified as available-for-sale, consisted of the following (in thousands):
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Cost and Estimated Fair Values of Available-for-sale Securities by Contractual Maturity | The following table summarizes the cost and estimated fair value of marketable securities based on stated effective maturities as of September 30, 2023 (in thousands):
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of gross unrealized losses | Marketable securities in an unrealized loss position as of September 30, 2023 consisted of the following (in thousands):
Marketable securities in an unrealized loss position as of December 31, 2022 consisted of the following (in thousands):
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Cash, Cash Equivalents and Available-for-sale Investments Measured at Fair Value on Recurring Basis | The following is a summary of our cash, cash equivalents and marketable securities measured at fair value on a recurring basis (in thousands):
|
Condensed Consolidated Financial Statement Details (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventory | Inventory consisted of the following (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consisted of the following (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Property and Equipment, Net | Property and equipment, net, consisted of the following (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accrued Liabilities | Accrued liabilities consisted of the following (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Deferred Revenue | Deferred revenue consisted of the following (in thousands):
The following table reflects contract balances with customers (in thousands):
|
Equity Incentive Plans and Stock-Based Compensation (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Stock-based Compensation | A summary of our stock-based compensation expense is as follows (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Activity under Stock Option Plans | The following table summarizes our stock option activities and related information:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Restricted Stock Units Activity | The following table summarizes our stock award activities and related information:
|
Net Income Per Share (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Basic and diluted net income per share are calculated as follows (in thousands, except per share amounts):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Anti-dilutive Shares | The following table presents common shares related to potentially dilutive shares excluded from the calculation of diluted net income per share as their effect would have been anti-dilutive (in thousands):
|
Geographic Information (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Total Revenue Based on Customer's Location | The following table depicts the disaggregation of revenue by geographic region based on the ship to location of our customers and is consistent with how we evaluate our financial performance (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-lived Assets by Geographic Areas | The following table is a summary of our long-lived assets which include property and equipment, net and operating lease right-of-use assets based on the physical location of the assets (in thousands):
|
Revenue (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contract with Customer, Asset and Liability | Deferred revenue consisted of the following (in thousands):
The following table reflects contract balances with customers (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | We expect to recognize revenue on the remaining performance obligations as follows (in thousands):
|
Leases - Assets and Liabilities (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Leases [Abstract] | ||
Total right-of-use assets | $ 17,589 | |
Accrued liabilities | 4,898 | $ 4,792 |
Other non-current liabilities | 13,063 | |
Total operating lease liabilities | $ 17,961 |
Leases - Lease Liabilities (Details) $ in Thousands |
Sep. 30, 2023
USD ($)
|
---|---|
Leases [Abstract] | |
Remainder of 2023 | $ 1,347 |
2021 | 5,421 |
2022 | 4,948 |
2023 | 4,892 |
2024 | 2,441 |
Thereafter | 0 |
Total lease payments | 19,049 |
Less: imputed interest | (1,088) |
Present value of lease liabilities | $ 17,961 |
Leases - Lease Costs (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Leases [Abstract] | ||||
Operating lease costs | $ 1,087 | $ 1,085 | $ 3,291 | $ 3,248 |
Short-term lease costs | 129 | 126 | 378 | 417 |
Total lease costs | $ 1,216 | $ 1,211 | $ 3,669 | $ 3,665 |
Weighted-average remaining term (years) | 3 years 7 months 9 days | 3 years 7 months 9 days | ||
Weighted-average discount rate | 3.19% | 3.19% | ||
Operating cash flows from operating leases | $ 3,972 | |||
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | $ 0 |
Marketable Securities and Fair Value Measurements - Contractual Maturities (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Amortized Cost | ||
Less than 1 year | $ 63,089 | |
Mature in 1 - 3 years | 1,900 | |
Amortized Cost | 64,989 | $ 83,954 |
Fair Value | ||
Less than 1 year | 63,003 | |
Mature in 1 - 3 years | 1,886 | |
Fair Value | $ 64,889 | $ 83,018 |
Condensed Consolidated Financial Statement Details - Schedule of Inventory (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Raw materials | $ 14,401 | $ 12,771 |
Finished goods | 9,160 | 6,922 |
Total inventory | $ 23,561 | $ 19,693 |
Condensed Consolidated Financial Statement Details - Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Property, Plant and Equipment [Abstract] | ||
Prepaid expenses | $ 5,176 | $ 5,310 |
Deferred contract acquisition costs | 6,198 | 6,144 |
Other | 1,585 | 1,927 |
Total prepaid expenses and other current assets | $ 12,959 | $ 13,381 |
Condensed Consolidated Financial Statement Details - Additional Information (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Property, Plant and Equipment [Abstract] | ||||
Depreciation expense | $ 1.4 | $ 0.7 | $ 3.3 | $ 2.0 |
Condensed Consolidated Financial Statement Details - Accrued Liabilities (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Accrued Liabilities, Current [Abstract] | ||
Accrued compensation and benefits | $ 8,138 | $ 19,832 |
Accrued tax liabilities | 918 | 1,635 |
Lease liability | 4,898 | 4,792 |
Other | 9,623 | 10,924 |
Total accrued liabilities | $ 23,577 | $ 37,183 |
Condensed Consolidated Financial Statement Details - Schedule of Deferred Revenue (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Deferred Revenue Arrangement [Line Items] | ||
Total deferred revenue | $ 135,714 | $ 126,992 |
Less: current portion | (79,540) | (74,340) |
Non-current portion | 56,174 | 52,652 |
Products | ||
Deferred Revenue Arrangement [Line Items] | ||
Total deferred revenue | 12,999 | 7,782 |
Services | ||
Deferred Revenue Arrangement [Line Items] | ||
Total deferred revenue | $ 122,715 | $ 119,210 |
Commitments and Contingencies (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Commitments and Contingencies Disclosure [Abstract] | ||||
Rent expense | $ 1.2 | $ 1.2 | $ 3.7 | $ 3.7 |
Remaining purchase commitments | $ 18.2 | $ 18.2 |
Equity Incentive Plans and Stock-Based Compensation - Stock-based Compensation/Stock Repurchase Program (Details) $ in Millions |
9 Months Ended |
---|---|
Sep. 30, 2023
USD ($)
| |
Share-Based Payment Arrangement [Abstract] | |
Total compensation expense related to unvested awards granted, not yet recognized | $ 36.2 |
Total compensation expense related to unvested awards granted, not yet recognized weighted-average period for recognition (in years) | 2 years 8 months 19 days |
Equity Incentive Plans and Stock-Based Compensation - Information About Stock Options (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Share-Based Payment Arrangement [Abstract] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 0.3 | $ 2.8 | $ 1.2 | $ 4.5 |
Equity Incentive Plans and Stock-Based Compensation - Stock Repurchase Program (Details) - USD ($) shares in Thousands, $ in Thousands |
9 Months Ended | ||||
---|---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Nov. 07, 2023 |
Nov. 01, 2022 |
Oct. 28, 2021 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock Repurchase Program, Authorized Amount | $ 50,000 | $ 50,000 | $ 100,000 | ||
Treasury Stock, Value, Acquired, Cost Method | $ 8,700 | $ 79,300 | |||
Treasury Stock, Shares, Acquired | 605 | 6,100 |
Net Income Per Share - Summary of Outstanding Shares of Common Stock Equivalents (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Earnings Per Share Diluted [Line Items] | ||||
Net income | $ 6,469 | $ 12,113 | $ 22,053 | $ 28,878 |
Weighted-average shares outstanding - basic (in shares) | 74,526 | 75,881 | 74,184 | 76,191 |
Weighted Average Number Diluted Shares Outstanding Adjustment | 1,281 | 1,798 | 1,455 | 2,263 |
Weighted-average shares outstanding - diluted (in shares) | 75,807 | 77,679 | 75,639 | 78,454 |
Basic | $ 0.09 | $ 0.16 | $ 0.30 | $ 0.38 |
Diluted | $ 0.09 | $ 0.16 | $ 0.29 | $ 0.37 |
Stock options, restricted stock units and employee stock purchase rights | ||||
Earnings Per Share Diluted [Line Items] | ||||
Anti-dilutive securities excluded from computation of diluted net income per share | 1 | 4 | 33 | 84 |
Income Taxes (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Income Tax Disclosure [Abstract] | ||||
Income tax expense (benefit) | $ (1,507) | $ 3,116 | $ 2,643 | $ 7,467 |
Unrecognized tax benefits | $ 7,300 | $ 7,300 |
Geographic Information - Schedule of Total Revenue Based on Customer's Location (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Segment Reporting Information [Line Items] | ||||
Total revenue | $ 57,775 | $ 72,059 | $ 181,283 | $ 202,704 |
Americas | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 25,818 | 35,995 | 92,695 | 107,506 |
Americas | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 23,777 | 29,219 | 79,738 | 92,149 |
Americas excluding United States | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 2,041 | 6,776 | 12,957 | 15,357 |
APJ | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 21,196 | 24,860 | 58,938 | 64,263 |
APAC excluding Japan | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 6,964 | 9,487 | 22,001 | 23,700 |
Japan | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 14,232 | 15,373 | 36,937 | 40,563 |
EMEA | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | $ 10,761 | $ 11,204 | $ 29,650 | $ 30,935 |
Geographic Information - Long Lived Assets By Geographic Area (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 43,643 | $ 40,940 |
Americas | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 40,997 | 37,420 |
Japan | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 1,300 | 1,852 |
Other | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 1,346 | $ 1,668 |
Revenue - Additional Information (Details) - USD ($) |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
Dec. 31, 2022 |
|
Capitalized Contract Cost [Line Items] | |||||
Accumulated deficit | $ 108,401,000 | $ 108,401,000 | $ 130,454,000 | ||
Deferred revenue | 135,714,000 | 135,714,000 | 126,992,000 | ||
Revenue recognized | 25,800,000 | $ 20,300,000 | 60,000,000 | $ 59,500,000 | |
Asset impairment charges for contract assets | 0 | ||||
Deferred contract acquisition costs | 6,198,000 | 6,198,000 | 6,144,000 | ||
Deferred Sales Commissions | |||||
Capitalized Contract Cost [Line Items] | |||||
Deferred contract acquisition costs | 4,300,000 | 4,300,000 | 4,300,000 | ||
Amortization | 4,600,000 | $ 6,800,000 | |||
Impairment loss of contract acquisition costs | 0 | ||||
Deferred contract acquisition costs | $ 6,200,000 | $ 6,200,000 | $ 6,100,000 |
Revenue - Contract Balances (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Revenue from Contract with Customer [Abstract] | ||
Accounts receivable, net | $ 59,070 | $ 72,928 |
Deferred revenue | 79,540 | 74,340 |
Deferred revenue, non-current | 56,174 | 52,652 |
Deferred contract acquisition costs | $ 6,198 | $ 6,144 |
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Thousands |
Dec. 01, 2023 |
Nov. 17, 2023 |
Nov. 07, 2023 |
Nov. 01, 2022 |
Oct. 28, 2021 |
---|---|---|---|---|---|
Subsequent Event [Line Items] | |||||
Stock Repurchase Program, Authorized Amount | $ 50,000 | $ 50,000 | $ 100,000 | ||
Subsequent event | |||||
Subsequent Event [Line Items] | |||||
Dividends Payable, Date Declared | Nov. 07, 2023 | ||||
Common Stock, Dividends, Per Share, Declared | $ 0.06 | ||||
Dividends Payable, Date to be Paid | Dec. 01, 2023 | ||||
Dividends Payable, Date of Record | Nov. 17, 2023 |
P(D!\Q)
MP["N>@"4&E[URC1!U/>P7I@F*J1LH"P[+8OM8K;Q6A5G5YMM?YXD;0A [TVE
M.8F, 3!
MF1H9M#4R.%LC=08/["TWVG65QEG_TZ7!5BN)*Z81EI6N)#9YE$TDH&N_W@E6
M))C9.A*'PIVLA0U*(P:!9%1ZZJ@V'M%\-E)R(7_K07O6"\*A>0AAT M]STP'
M),PHC,TTLAKY9DI6O3#T@-*@S]%2$XPM9/^F$><@%6_4IZ1\R+.2VR*)LE;)>%#],O8K^@-3VX$_=WC<#G&RSWNQ7+
M3K%W
?S$15]B*[=*L.#5MO\KVZV>1@H'$_O49AO%>;)
M[VPH>?E*1;4X]6Y-7J2!)HL4:M*&<]I*4:ZCQZV&7EQ
DBS5W
M0:ZS?, -_.B]!%K1L@\H?4!6U@C/NY4N$