Commitments and Contingencies |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||
| Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||
| Commitments and Contingencies | Commitments and Contingencies Litigation The Company is subject to various legal matters and claims in the ordinary course of business. Although the results of legal proceedings and claims cannot be predicted with certainty, including the matters noted below, in the opinion of management, there are currently no such known matters that will have a material effect on the financial condition, results of operations or cash flows of the Company. The Company, certain of its officers and directors, and certain investment banking firms who acted as underwriters in connection with the Company’s IPO, have been named as defendants in a putative class action lawsuit filed August 31, 2015 in the United States District Court for the Southern District of New York. The complaint alleges that the defendants violated Sections 11, 12 and 15 of the Securities Act by not including information regarding customer concentration, which the complaint characterizes as a known trend and/or significant factor required to be disclosed under federal securities regulations. The complaint seeks unspecified damages, interest and other costs. The Court appointed a Lead Plaintiff on November 18, 2015. The Company disputes these claims and intends to defend this matter vigorously. The Company cannot currently estimate a reasonably possible range of loss for this action. Legal fees are expensed in the period in which they are incurred. Leases The Company leases office facilities under operating leases. During the year ended December 31, 2015, the Company entered into multiple new and amended operating leases for the purposes of sales and marketing, technology and development and engineering activities. Future minimum lease payments under non-cancelable operating leases as of December 31, 2015 for the fiscal years indicated are as follows (in thousands):
Future minimum lease payments due under certain operating lease arrangements contain fixed rent increases and rent abatements over the term of the lease. Rent expense on these operating leases is recognized over the term of the lease on a straight-line basis. The excess of rent expense over lease payments made has been reported in accrued expenses and other current liabilities and other long-term liabilities in the consolidated balance sheets. As of December 31, 2014 and 2015, deferred rent related to these leases totaled $0.3 million and $1.0 million, respectively. As of December 31, 2015, the Company had outstanding letters of credit related to certain operating leases totaling $0.6 million. No amounts were drawn on these letters of credit. Total rent expense for the years ended December 31, 2013, 2014 and 2015 was $0.8 million, $1.6 million and $2.1 million, respectively. Purchase Commitments The Company has $6.7 million of non-cancelable contractual commitments as of December 31, 2015, primarily related to purchases of data, third-party data centers and other support services. Of these commitments, $5.6 million, $1.0 million and $0.1 million are due within the next year, within the next two years and within the next three years, respectively. Indemnification Agreements In the ordinary course of business, the Company may provide indemnifications of varying scope and terms to customers, vendors, lessors, business partners and other parties with respect to certain matters, including, but not limited to, losses arising out of breach of such agreements, services to be provided by the Company or from intellectual property infringement claims made by third parties. In addition, the Company has entered into indemnification agreements with directors and certain officers and employees that will require the Company, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors, officers or employees. Under certain circumstances, the Company’s indemnification obligations may include the cost of advancing legal expenses and indemnifying its officers, directors and underwriters for costs arising out of the litigation described above under “Commitments and Contingencies—Litigation,” to the extent such costs are not covered by the Company’s directors’ and officers’ liability insurance. There are no claims that the Company is aware of that could have a material effect on the Company’s financial position, results of operations or cash flows. |
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