View Filing Data

Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2012	Oct. 25, 2012
Document and Entity Information [Abstract]
Entity Registrant Name	SPS COMMERCE INC
Entity Central Index Key	0001092699
Document Type	10-Q
Document Period End Date	Sep. 30, 2012
Amendment Flag	false
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		14,683,384

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2012	Dec. 31, 2011
CURRENT ASSETS
Cash and cash equivalents	$ 69,715	$ 31,985
Accounts receivable, less allowance for doubtful accounts of $244 and $222, respectively	10,146	7,958
Deferred costs, current	6,903	5,748
Deferred income taxes, current	782	783
Prepaid expenses and other current assets	2,398	1,765
Total current assets	89,944	48,239
PROPERTY AND EQUIPMENT, net	5,567	3,382
GOODWILL	25,487	5,853
INTANGIBLE ASSETS, net	20,957	5,767
OTHER ASSETS
Deferred costs, net of current portion	3,030	2,510
Deferred income taxes, net of current portion	11,568	11,787
Other non-current assets	191	80
Total assets	156,744	77,618
CURRENT LIABILITIES
Accounts payable	2,739	1,411
Accrued compensation and benefits	6,634	5,118
Accrued expenses and other current liabilities	1,276	1,097
Deferred revenue, current	5,262	3,840
Total current liabilities	15,911	11,466
OTHER LIABILITIES
Deferred revenue, less current portion	8,003	6,599
Total liabilities	23,914	18,065
COMMITMENTS and CONTINGENCIES
STOCKHOLDER'S EQUITY
Preferred stock, $0.001 par value; 5,000,000 shares authorized; 0 shares issued and outstanding
Common stock, $0.001 par value; 55,000,000 shares authorized; 14,683,384 and 12,138,858 shares issued and outstanding, respectively	15	12
Additional paid-in capital	181,024	108,606
Accumulated deficit	(48,209)	(49,065)
Total stockholders' equity	132,830	59,553
Total liabilities and stockholder's equity	$ 156,744	$ 77,618

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2012	Dec. 31, 2011
Condensed Consolidated Balance Sheets [Abstract]
Allowance for doubtful accounts	$ 244	$ 222
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	55,000,000	55,000,000
Common stock, shares issued	14,683,384	12,138,858
Common stock, shares outstanding	14,683,384	12,138,858

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Condensed Consolidated Statements of Operations [Abstract]
Revenues	$ 20,267	$ 15,529	$ 54,622	$ 42,115
Cost of revenues	5,945	4,076	15,236	11,147
Gross profit	14,322	11,453	39,386	30,968
Operating expenses
Sales and marketing	7,840	6,404	21,259	17,382
Research and development	2,088	1,605	5,650	4,259
General and administrative	3,726	2,914	10,079	8,208
Amortization of intangible assets	530	260	1,050	383
Total operating expenses	14,184	11,183	38,038	30,232
Income from operations	138	270	1,348	736
Other income (expense)
Interest expense	(27)		(27)
Interest income	6	16	34	74
Other expense	(67)	(28)	(170)	(62)
Total other income (expense), net	(88)	(12)	(163)	12
Income before income taxes	50	258	1,185	748
Income tax benefit (expense)	124	(81)	(329)	(188)
Net income	$ 174	$ 177	$ 856	$ 560
Net income Per share
Basic	$ 0.01	$ 0.01	$ 0.07	$ 0.05
Diluted	$ 0.01	$ 0.01	$ 0.06	$ 0.04
Weighted average common shares used to compute net income per share
Basic	13,042	11,970	12,500	11,918
Diluted	13,894	12,735	13,373	12,685

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011
Cash flows from operating activities
Net income	$ 856	$ 560
Reconciliation of net income to net cash provided by operating activities
Deferred income taxes	220
Depreciation and amortization of property and equipment	2,117	1,436
Amortization of intangible assets	1,050	383
Provision for doubtful accounts	295	245
Stock-based compensation	2,042	1,286
Changes in assets and liabilities, net of effect of acquisitions
Accounts receivable	(1,184)	(2,265)
Deferred costs	(1,675)	(1,219)
Prepaid expenses and other current assets	(484)	(264)
Accounts payable	1,328	389
Accrued compensation and benefits	1,516	1,612
Accrued expenses and other current liabilities	179	60
Deferred revenue	2,006	1,323
Net cash provided by operating activities	8,266	3,546
Cash flows from investing activities
Business acquisitions, net of cash acquired	(26,262)	(10,865)
Purchases of property and equipment	(2,845)	(1,716)
Net cash used in investing activities	(29,107)	(12,581)
Cash flows from financing activities
Payments of capital lease obligations	(410)	(122)
Net proceeds from exercise of options to purchase common stock	1,137	338
Excess tax benefit from exercise of options to purchase common stock	24
Proceeds from common stock offering	57,940
Stock offering costs	(120)	(108)
Net cash provided by financing activities	58,571	108
Net increase (decrease) in cash and cash equivalents	37,730	(8,927)
Cash and cash equivalents at beginning of period	31,985	40,473
Cash and cash equivalents at end of period	$ 69,715	$ 31,546

General

9 Months Ended

Sep. 30, 2012

General [Abstract]

General

NOTE A – General

Business Description

We are a leading provider of on-demand supply chain management solutions and the Retail Universe community, providing integration, collaboration, connectivity, visibility and data analytics to thousands of customers worldwide. We provide our solutions through SPSCommerce.net, a hosted software suite that improves the way suppliers, retailers, distributors and other customers manage and fulfill orders. We deliver our solutions to our customers over the Internet using a Software-as-a-Service model and derive the majority of our revenues from thousands of monthly recurring subscriptions from businesses that utilize our solutions.

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, these condensed consolidated financial statements do not include all of the information and footnotes required by GAAP. We have included all normal recurring adjustments considered necessary to give a fair statement of our financial position, results of operations and cash flows for the interim periods shown. Operating results for these interim periods are not necessarily indicative of the results to be expected for the full year. The December 31, 2011 balance sheet data was derived from our audited financial statements at that date. For further information, refer to the consolidated financial statements and accompanying notes for the year ended December 31, 2011 included in our Annual Report on Form 10-K as filed with the Securities and Exchange Commission on March 9, 2012.

Use of Estimates

Preparing financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates.

Significant Accounting Policies

During the nine months ended September 30, 2012, there were no material changes in our significant accounting policies. See Note A to the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2011, as filed with the Securities and Exchange Commission on March 9, 2012, for additional information regarding our significant accounting policies.

Recent Accounting Pronouncements

We have evaluated all recent accounting pronouncements and believe that none of them will have a material effect on our consolidated financial statements.

- Definition

The entire disclosure for organization, consolidation and basis of presentation of financial statements disclosure.

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-Name Statement of Position (SOP)
-Number 94-6
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-Name Accounting Research Bulletin (ARB)
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+ Details

Business Acquisition

9 Months Ended

Sep. 30, 2012

Business Acquisition [Abstract]

Business Acquisition

NOTE B – Business Acquisition

On August 6, 2012, we entered into an asset purchase agreement with Edifice Information Management Systems, Inc. (“Edifice”), a privately-held information services company specializing in the collection, analysis and distribution of point-of-sale data used by retailers and suppliers to improve their supply chain efficiencies. We completed the asset purchase on August 7, 2012. Under the asset purchase agreement, we purchased and acquired substantially all of the assets of Edifice for $26.3 million in cash and 347,852 shares of our common stock. We also assumed certain liabilities of Edifice. This acquisition allows us to expand our point-of-sale analytic offerings, expand our base of recurring revenue customers and add suppliers to our network.

Purchase Price Allocation

We accounted for the acquisition as a business combination. We allocated the purchase price to the tangible and identifiable intangible assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date. We engaged an independent third-party valuation firm to assist us in the determination of the value of the purchased intangible assets. The excess of the purchase price over the fair value of net tangible and identifiable intangible assets acquired was recorded as goodwill. Goodwill is attributed to a trained workforce and other buyer-specific value resulting from expected synergies, including long-term cost savings, which are not included in the fair values of assets. Goodwill will not be amortized; however it is deductible for tax purposes. Although we believe the purchase price allocation is substantially complete, it is considered preliminary and the finalization of the valuation of the net tangible and intangible assets acquired and liabilities assumed could result in a future adjustment to the purchase price allocation.

The purchase price consisted of the following (in thousands):


Cash	$	26,275
SPS Commerce common stock		11,396

	$	37,671

We borrowed $11.0 million under our existing line of credit to fund a portion of the cash paid for the acquisition. The number of shares of our common stock issued for the acquisition was 347,852 shares as calculated according to the terms of the purchase agreement. The fair value of the shares issued was determined using the closing price of our common stock on August 6, 2012.

The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date (in thousands):


Current assets	$	1,457
Property and equipment		1,456
Goodwill		19,634
Intangible assets		16,240
Other assets		116
Current liabilities		(1,232	)

	$	37,671

Purchased Intangible Assets

The following table summarizes the estimated fair value of the purchased intangible assets and their estimated useful lives:


Purchased Intangible Assets	Estimated Fair Value (in thousands)		Estimated Life (in years)
Customer relationships	$	15,980		9
Non-competition agreements		260		5

Total	$	16,240

The purchased intangible assets are being amortized on a straight-line basis over their estimated useful lives. Amortization expense related to these intangible assets was $270,000 for the period from August 7, 2012 through September 30, 2012.

Acquisition-Related Costs and Post-Acquisition Operating Results

Acquisition-related costs were $212,000 and are included in our condensed consolidated statements of operations for the three and nine months ended September 30, 2012. The operating results of Edifice have been included in our condensed consolidated financial statements from August 7, 2012, the date of the acquisition. For the period from August 7, 2012 through September 30, 2012, approximately $1.8 million of our revenues were derived from Edifice customers. The amount of operating income or loss from Edifice was not separately identifiable due to our integration.

Unaudited Pro Forma Financial Information

The unaudited pro forma financial information in the table below presents the combined operating results of SPS Commerce and Edifice as if the acquisition had occurred on January 1, 2011. The unaudited pro forma information includes the historical operating results of each company and pro forma adjustments for the approximate $1.8 million of annual amortization expense related to purchased intangible assets and the additional impact on the provision or benefit for income taxes, resulting from the combined income and intangible amortization expense, using our statutory blended income tax rate of 36.5%.


	Three Months Ended September 30,					Nine Months Ended September 30,
(in thousands, except per share data)	2012		2011			2012		2011
Pro forma total revenue	$	20,477	$	18,234		$	60,994	$	49,934
Pro forma net income (loss)	$	72	$	(75	)	$	689	$	(180	)
Pro forma net income (loss) per share
Basic	$	0.01	$	(0.01	)	$	0.05	$	(0.01	)
Diluted	$	0.01	$	(0.01	)	$	0.05	$	(0.01	)

The unaudited pro forma financial information is presented for informational purposes only and is not necessarily indicative of the results of operations that would have actually been reported had the acquisition occurred on January 1, 2011, nor is it necessarily indicative of our results of operations for any future periods.

- Definition

The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable).

+ References

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+ Details

Intangible Assets, net

9 Months Ended

Sep. 30, 2012

Intangible Assets, net [Abstract]

Intangible Assets, net

NOTE C – Intangible Assets, net

Intangible assets included the following (in thousands):


	September 30, 2012							December 31, 2011
	Carrying Amount		Accumulated Amortization			Net		Carrying Amount		Accumulated Amortization			Net
Customer relationships	$	23,160	$	(3,219	)	$	19,941	$	7,180	$	(2,394	)	$	4,786
Non-competition agreements		1,710		(694	)		1,016		1,450		(469	)		981

	$	24,870	$	(3,913	)	$	20,957	$	8,630	$	(2,863	)	$	5,767

Amortization expense for intangible assets was $530,000 and $1.1 million for the three and nine months ended September 30, 2012, respectively. Amortization expense was $260,000 and $383,000 for the three and nine months ended September 30, 2011, respectively.

At September 30, 2012, future amortization expense for intangible assets was as follows (in thousands):


Remainder of 2012	$	717
2013		2,867
2014		2,688
2015		2,578
2016		2,578
Thereafter		9,239

	$	20,667

The table above does not include amounts related to non-competition agreements where the term of the agreement has not yet started. The term of such agreements, and the related amortization, begins with the termination of employment of the respective employee(s).

Line of Credit

9 Months Ended

Sep. 30, 2012

Line of Credit [Abstract]

Line of Credit

NOTE D – Line of Credit

We have a revolving credit agreement with JPMorgan Chase Bank, N.A. which provides for a $20 million revolving credit facility that we may draw upon from time to time, subject to certain terms and conditions, and will mature on September 30, 2016.

In connection with the acquisition of Edifice (see Note B), we borrowed $11.0 million under our line of credit to fund a portion of the cash paid for the acquisition. On September 11, 2012, this debt was repaid in full with a portion of the proceeds received from our public offering of common stock on that date (see Note F).

There were no borrowings outstanding at September 30, 2012 and we were in compliance with all covenants under the revolving credit agreement as of that date.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References + Details

Commitments and Contingencies

9 Months Ended

Sep. 30, 2012

Commitments and Contingencies [Abstract]

Commitments and Contingencies

NOTE E – Commitments and Contingencies

Operating Leases

On February 14, 2012, we executed a new lease agreement for our current headquarters location which commences on November 1, 2012 and expires on April 30, 2020. The lease includes additional square footage upon commencement, an automatic expansion of space on or about September 1, 2013, a right of first offer to lease certain additional space, and two options to extend the term of the lease for three years at a market rate determined in accordance with the lease. We will also have a rent holiday from November 2012 to October 2013 which will be incorporated into our deferred rent calculation upon commencement of the lease. In connection with this new lease, we delivered to the landlord cash or an irrevocable letter of credit for approximately $172,000, subject to increase based on square footage expansion, as security for performance of our obligations under the lease.

At September 30, 2012, our future minimum payments under operating leases were as follows (in thousands):


Remainder of 2012	$	174
2013		306
2014		2,283
2015		2,391
2016		2,500
Thereafter		9,246

	$	16,900

- Definition

The entire disclosure for commitments and contingencies.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6449706&loc=d3e16207-108621

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 460
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=6398077&loc=d3e12565-110249

Reference 3: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6952336&loc=d3e14435-108349

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.25)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 440
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6394976&loc=d3e25287-109308

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Interpretation (FIN)
-Number 14
-Paragraph 3
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 5
-Paragraph 9, 10, 11, 12
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Stockholders' Equity

9 Months Ended

Sep. 30, 2012

Stockholders Equity [Abstract]

Stockholders' Equity

NOTE F – Stockholders’ Equity

In connection with the acquisition of Edifice (see Note B), we issued 347,852 shares of our common stock. The fair value of the shares issued was determined using the closing price of our common stock on August 6, 2012.

On September 11, 2012, we completed a public stock offering where we issued and sold 1,840,000 shares of common stock, including 240,000 shares sold pursuant to the exercise in full of the underwriters’ over-allotment option, at a price to the public of $33.50 per share. We received net proceeds of approximately $57.8 million from this offering after payment of approximately $3.8 million of underwriting discounts and commissions and legal, accounting and other fees incurred in connection with the offering.

- Definition

The entire disclosure for shareholders' equity, comprised of portions attributable to the parent entity and noncontrolling interest, if any, including other comprehensive income (as applicable). Including, but not limited to: (1) balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings; (2) accumulated balance for each classification of other comprehensive income and total amount of comprehensive income; (3) amount and nature of changes in separate accounts, including the number of shares authorized and outstanding, number of shares issued upon exercise and conversion, and for other comprehensive income, the adjustments for reclassifications to net income; (4) rights and privileges of each class of stock authorized; (5) basis of treasury stock, if other than cost, and amounts paid and accounting treatment for treasury stock purchased significantly in excess of market; (6) dividends paid or payable per share and in the aggregate for each class of stock for each period presented; (7) dividend restrictions and accumulated preferred dividends in arrears (in aggregate and per share amount); (8) retained earnings appropriations or restrictions, such as dividend restrictions; (9) impact of change in accounting principle, initial adoption of new accounting principle and correction of an error in previously issued financial statements; (10) shares held in trust for Employee Stock Ownership Plan (ESOP); (11) deferred compensation related to issuance of capital stock; (12) note received for issuance of stock; (13) unamortized discount on shares; (14) description, terms, and number of warrants or rights outstanding; (15) shares under subscription and subscription receivables, effective date of new retained earnings after quasi-reorganization and deficit eliminated by quasi-reorganization and, for a period of at least ten years after the effective date, the point in time from which the new retained dates; and (16) retroactive effective of subsequent change in capital structure.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(d),(e))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21484-112644

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB TOPIC 4.E)
-URI http://asc.fasb.org/extlink&oid=6228006&loc=d3e74512-122707

Reference 4: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21488-112644

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-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.29-31)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

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-Name Accounting Standards Codification
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-Paragraph 4
-Subparagraph (SAB TOPIC 4.C)
-URI http://asc.fasb.org/extlink&oid=6959260&loc=d3e187143-122770

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-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21506-112644

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-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-URI http://asc.fasb.org/extlink&oid=6959260&loc=d3e187085-122770

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 30
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6405834&loc=d3e23285-112656

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-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Preferred Stock
-URI http://asc.fasb.org/extlink&oid=6521494

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
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-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21463-112644

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21564-112644

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 43
-Section B
-Paragraph 7, 11A
-Chapter 1
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Principles Board Opinion (APB)
-Number 12
-Paragraph 10
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 16: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 5
-Paragraph 15
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 17: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph d
-Article 4

Reference 18: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 29, 30, 31
-Article 5

Reference 19: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 4
-Section E

Reference 20: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Article 4

Reference 21: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 4
-Section C

Reference 22: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 129
-Paragraph 2, 3, 4, 5, 6, 7, 8
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 23: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Article 3

+ Details

Stock-Based Compensation

9 Months Ended

Sep. 30, 2012

Stock-Based Compensation [Abstract]

Stock-Based Compensation

NOTE G – Stock-Based Compensation

Our equity compensation plans provide for the grant of incentive and nonqualified stock options, as well as other stock-based awards, to employees, non-employee directors and other consultants who provide services to us. Stock options generally vest over four years and have a contractual term of seven to ten years from the date of grant. At September 30, 2012, there were approximately 1.1 million shares available for grant under approved equity compensation plans.

We recorded stock-based compensation expense of $715,000 and $2.0 million for the three and nine months ended September 30, 2012, respectively. We recorded stock-based compensation expense of $487,000 and $1.3 million for the three and nine months ended September 30, 2011, respectively. This expense was allocated as follows (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2012		2011		2012		2011
Cost of revenues	$	122	$	68	$	336	$	186
Operating expenses
Sales and marketing		232		121		627		347
Research and development		39		18		90		41
General and administrative		322		280		989		712

Total stock-based compensation expense	$	715	$	487	$	2,042	$	1,286

As of September 30, 2012, there was approximately $6.9 million of unrecognized stock-based compensation expense under our equity compensation plans, which is expected to be recognized on a straight line basis over a weighted average period of 2.6 years.

Stock Options

Our stock option activity was as follows:


	Options (#)			Weighted Average Exercise Price ($/share)
Outstanding at December 31, 2011		1,669,409		$	8.14
Granted		239,016			26.30
Exercised		(356,674	)		3.06
Forfeited		(28,227	)		19.11

Outstanding at September 30, 2012		1,523,524			11.98

Of the total outstanding options at September 30, 2012, 871,782 were exercisable with a weighted average exercise price of $6.86 per share. The total outstanding options had a weighted average remaining contractual life of 6.4 years.

The weighted average fair value per share of options granted during the first nine months of 2012 was $10.40 and this was estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions:


Weighted-average volatility	46.0	%
Expected dividend yield	0	%
Expected life (in years)	4.75
Weighted-average risk-free interest rate	0.79	%

Restricted Stock Units and Awards

During the nine months ended September 30, 2012, we granted 82,203 restricted stock units and awards with a weighted average grant date fair value of $26.35 per share, and 2,368 of these have been forfeited. At September 30, 2012, there were 75,873 restricted stock units and 6,330 restricted stock awards outstanding. The restricted stock units vest over a four year period and the restricted stock awards vest over a one year period. Upon vesting, the holder is entitled to receive shares of our common stock.

Employee Stock Purchase Plan

Effective July 1, 2012, we adopted an employee stock purchase plan which allows participating employees to purchase shares of our common stock at a discount through payroll deductions. The plan is available to all employees subject to certain eligibility requirements. Participating employees may purchase common stock, on a voluntary after tax basis, at a price that is the lower of 85% of the fair market value of one share of common stock at the beginning or end of each stock purchase period. The plan consists of two six-month offering periods, beginning on July 1 and January 1 of each calendar year.

As of September 30, 2012, we have withheld approximately $225,000 from employees participating in the plan for the offering period that began on July 1, 2012. A total of 1.2 million shares of common stock are reserved for issuance under the plan and, at September 30, 2012, all 1.2 million shares were available for future purchases as the first offering period ends on December 31, 2012.

For the three and nine months ended September 30, 2012, we recorded approximately $70,000 of stock-based compensation expense associated with the employee stock purchase plan. The fair value was estimated based on the market price of our common stock at the beginning of the offering period, which was $30.38 per share, and using the Black-Scholes option pricing model with the following assumptions:


Expected volatility	46.0	%
Expected dividend yield	0	%
Expected life (in years)	0.50
Risk-free interest rate	0.15	%

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 50
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6406099&loc=d3e25284-112666

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 40
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6418621&loc=d3e17540-113929

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5444-113901

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 14

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 123R
-Paragraph 64, 65, A240
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Statement of Position (SOP)
-Number 93-6
-Paragraph 53
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Income Taxes

9 Months Ended

Sep. 30, 2012

Income Taxes [Abstract]

Income Taxes

NOTE H – Income Taxes

We recorded an income tax benefit of $124,000 and income tax expense of $329,000 for the three and nine months ended September 30, 2012, respectively. We recorded income tax expense of $81,000 and $188,000 for the three and nine months ended September 30, 2011, respectively. We record our interim provision for income taxes based on our estimated annual effective tax rate for the year. Our provisions for income taxes included current federal alternative minimum tax expense, current foreign and state income tax expense, and deferred tax expense.

The decrease in income tax expense for the three months ended September 30, 2012, compared to the three months ended September 30, 2011, was primarily related to discrete net favorable items of $175,000, consisting of an increase in the state deferred tax rate related to the Edifice acquisition and provision to return adjustments for the year 2011. The increase in income tax expense for the nine months ended September 30, 2012, compared to the nine months ended September 30, 2011 was primarily related to deferred tax expense incurred in 2012 subsequent to the reversal of substantially all of the valuation allowance on our deferred tax assets in the fourth quarter of 2011.

For periods prior to the fourth quarter of 2011, a full valuation allowance was recorded against all of our deferred tax assets as it was more-likely-than-not that we would not realize these deferred tax assets, largely due to our history of taxable losses since inception. Based on our assessment during the fourth quarter of 2011, we determined that it was more-likely-than-not that we would be able to realize approximately $12.8 million of our deferred tax assets, which enabled us to release a substantial portion of the valuation allowance previously recorded. This determination was based on weighing both the positive and negative evidence available including, but not limited to, our earnings history, our projected future taxable income, our business strategy and the nature of each of our deferred tax assets.

We are subject to income taxes in the U.S. federal and various state and international jurisdictions. As of September 30, 2012, we are generally subject to tax examinations for all prior years due to our net operating loss carry forwards.

As of September 30, 2012, we do not have any unrecognized tax benefits. It is our practice to recognize interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. We do not expect any material changes in our unrecognized tax positions over the next 12 months.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

+ Details

Net Income Per Share

9 Months Ended

Sep. 30, 2012

Net Income Per Share [Abstract]

Net Income Per Share

NOTE I – Net Income Per Share

Basic net income per share has been computed using the weighted average number of shares of common stock outstanding during each period. Diluted net income per share also includes the impact of our outstanding potential common shares, including options and restricted stock units and awards. Potential common shares that are anti-dilutive are excluded from the calculation of diluted net income per share.

The following table presents the components of the computation of basic and diluted net income per share for the periods indicated (in thousands, except per share amounts):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2012		2011		2012		2011
Numerator
Net income	$	174	$	177	$	856	$	560

Denominator
Weighted average common shares outstanding, basic		13,042		11,970		12,500		11,918
Options to purchase common stock		821		765		846		767
Restricted stock units and awards		29		—		26		—
Employee stock purchase plan		2		—		1		—

Weighted average common shares outstanding, diluted		13,894		12,735		13,373		12,685

Net income per share
Basic	$	0.01	$	0.01	$	0.07	$	0.05

Diluted	$	0.01	$	0.01	$	0.06	$	0.04

For the three and nine months ended September 30, 2012, the effect of all outstanding potential common shares was included in the calculation of diluted net income per share. For the three and nine months ended September 30, 2011, the effect of approximately 1,000 outstanding potential common shares was excluded from the calculation of diluted net income per share because they were anti-dilutive.

General (Policies)	9 Months Ended
General (Policies)	Sep. 30, 2012
General [Abstract]
Business Description	Business Description We are a leading provider of on-demand supply chain management solutions and the Retail Universe community, providing integration, collaboration, connectivity, visibility and data analytics to thousands of customers worldwide. We provide our solutions through SPSCommerce.net, a hosted software suite that improves the way suppliers, retailers, distributors and other customers manage and fulfill orders. We deliver our solutions to our customers over the Internet using a Software-as-a-Service model and derive the majority of our revenues from thousands of monthly recurring subscriptions from businesses that utilize our solutions.
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, these condensed consolidated financial statements do not include all of the information and footnotes required by GAAP. We have included all normal recurring adjustments considered necessary to give a fair statement of our financial position, results of operations and cash flows for the interim periods shown. Operating results for these interim periods are not necessarily indicative of the results to be expected for the full year. The December 31, 2011 balance sheet data was derived from our audited financial statements at that date. For further information, refer to the consolidated financial statements and accompanying notes for the year ended December 31, 2011 included in our Annual Report on Form 10-K as filed with the Securities and Exchange Commission on March 9, 2012.
Use of Estimates	Use of Estimates Preparing financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates.
Significant Accounting Policies	Significant Accounting Policies During the nine months ended September 30, 2012, there were no material changes in our significant accounting policies. See Note A to the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2011, as filed with the Securities and Exchange Commission on March 9, 2012, for additional information regarding our significant accounting policies.
Recent Accounting Pronouncements	Recent Accounting Pronouncements We have evaluated all recent accounting pronouncements and believe that none of them will have a material effect on our consolidated financial statements.

Business Acquisition (Tables)

9 Months Ended

Sep. 30, 2012

Business Acquisition [Abstract]

Business purchase price


Cash	$	26,275
SPS Commerce common stock		11,396

	$	37,671

Estimated fair values of the assets acquired and liabilities assumed at the acquisition date


Current assets	$	1,457
Property and equipment		1,456
Goodwill		19,634
Intangible assets		16,240
Other assets		116
Current liabilities		(1,232	)

	$	37,671

Estimated fair value of the purchased intangible assets and their estimated useful lives


Purchased Intangible Assets	Estimated Fair Value (in thousands)		Estimated Life (in years)
Customer relationships	$	15,980		9
Non-competition agreements		260		5

Total	$	16,240

Unaudited Pro Forma Financial Information


	Three Months Ended September 30,					Nine Months Ended September 30,
(in thousands, except per share data)	2012		2011			2012		2011
Pro forma total revenue	$	20,477	$	18,234		$	60,994	$	49,934
Pro forma net income (loss)	$	72	$	(75	)	$	689	$	(180	)
Pro forma net income (loss) per share
Basic	$	0.01	$	(0.01	)	$	0.05	$	(0.01	)
Diluted	$	0.01	$	(0.01	)	$	0.05	$	(0.01	)

- Definition

Tabular disclosure of pro forma results of operations for a material business acquisition or series of individually immaterial business acquisitions that are material in the aggregate.

+ References + Details

Intangible Assets, net (Tables)

9 Months Ended

Sep. 30, 2012

Intangible Assets, net [Abstract]

Intangible assets


	September 30, 2012							December 31, 2011
	Carrying Amount		Accumulated Amortization			Net		Carrying Amount		Accumulated Amortization			Net
Customer relationships	$	23,160	$	(3,219	)	$	19,941	$	7,180	$	(2,394	)	$	4,786
Non-competition agreements		1,710		(694	)		1,016		1,450		(469	)		981

	$	24,870	$	(3,913	)	$	20,957	$	8,630	$	(2,863	)	$	5,767

Future amortization expense for intangible assets


Remainder of 2012	$	717
2013		2,867
2014		2,688
2015		2,578
2016		2,578
Thereafter		9,239

	$	20,667

Commitments and Contingencies (Tables)

9 Months Ended

Sep. 30, 2012

Commitments and Contingencies [Abstract]

Future minimum payments under operating leases


Remainder of 2012	$	174
2013		306
2014		2,283
2015		2,391
2016		2,500
Thereafter		9,246

	$	16,900

Stock-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2012

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Stock-based compensation expense


	Three Months Ended September 30,				Nine Months Ended September 30,
	2012		2011		2012		2011
Cost of revenues	$	122	$	68	$	336	$	186
Operating expenses
Sales and marketing		232		121		627		347
Research and development		39		18		90		41
General and administrative		322		280		989		712

Total stock-based compensation expense	$	715	$	487	$	2,042	$	1,286

Stock option activity


	Options (#)			Weighted Average Exercise Price ($/share)
Outstanding at December 31, 2011		1,669,409		$	8.14
Granted		239,016			26.30
Exercised		(356,674	)		3.06
Forfeited		(28,227	)		19.11

Outstanding at September 30, 2012		1,523,524			11.98

Stock Options [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Weighted average fair value per share of options granted


Weighted-average volatility	46.0	%
Expected dividend yield	0	%
Expected life (in years)	4.75
Weighted-average risk-free interest rate	0.79	%

Employee Stock Purchase Plan [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Weighted average fair value per share of options granted


Expected volatility	46.0	%
Expected dividend yield	0	%
Expected life (in years)	0.50
Risk-free interest rate	0.15	%

- Definition

Tabular disclosure of the allocation of equity-based compensation costs to a given line item on the balance sheet and income statement for the period. This may include the reporting line for the costs and the amount capitalized and expensed.

+ References + Details

Net Income Per Share (Tables)

9 Months Ended

Sep. 30, 2012

Net Income Per Share [Abstract]

Components of the computation of basic and diluted net income per share


	Three Months Ended September 30,				Nine Months Ended September 30,
	2012		2011		2012		2011
Numerator
Net income	$	174	$	177	$	856	$	560

Denominator
Weighted average common shares outstanding, basic		13,042		11,970		12,500		11,918
Options to purchase common stock		821		765		846		767
Restricted stock units and awards		29		—		26		—
Employee stock purchase plan		2		—		1		—

Weighted average common shares outstanding, diluted		13,894		12,735		13,373		12,685

Net income per share
Basic	$	0.01	$	0.01	$	0.07	$	0.05

Diluted	$	0.01	$	0.01	$	0.06	$	0.04

Business Acquisition (Details) $ in Thousands	Sep. 30, 2012 USD ($)
Business purchase price
Cash	$ 26,275
SPS Commerce common stock	11,396
Total purchase price	$ 37,671

- Definition

The acquisition-date fair value of the equity interests of the acquirer, including the number of instruments or interests issued or issuable in consideration for the business combination.

+ References + Details

Business Acquisition (Details 1) $ in Thousands	Sep. 30, 2012 USD ($)
Estimated fair values of the assets acquired and liabilities assumed at the acquisition date
Current assets	$ 1,457
Property and equipment	1,456
Goodwill	19,634
Intangible assets	16,240
Other assets	116
Current liabilities	(1,232)
Total	$ 37,671

Business Acquisition (Details 2) $ in Thousands	9 Months Ended
Business Acquisition (Details 2) $ in Thousands	Sep. 30, 2012 USD ($)
Estimated fair value of the purchased intangible assets and their estimated useful lives
Estimated Fair Value	$ 16,240
Estimated Life (in years)
Customer relationships [Member]
Estimated fair value of the purchased intangible assets and their estimated useful lives
Estimated Fair Value	$ 15,980
Estimated Life (in years)	9 years
Non-competition agreements [Member]
Estimated fair value of the purchased intangible assets and their estimated useful lives
Estimated Fair Value	$ 260
Estimated Life (in years)	5 years

Business Acquisition (Details 3) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Unaudited Pro Forma Financial Information
Proforma total revenue	$ 20,477	$ 18,234	$ 60,994	$ 49,934
Pro forma net income (loss)	$ 72	$ (75)	$ 689	$ (180)
Pro forma net income (loss) per share, Basic	$ 0.01	$ (0.01)	$ 0.05	$ (0.01)
Pro forma net income (loss) per share, Diluted	$ 0.01	$ (0.01)	$ 0.05	$ (0.01)

- Definition

The pro forma basic net income per share for a period as if the business combination or combinations had been completed at the beginning of a period.

+ References + Details

- Definition

The pro forma diluted net income per share for a period as if the business combination or combinations had been completed at the beginning of a period.

+ References + Details

Business Acquisition (Details Textual) - USD ($)	3 Months Ended		9 Months Ended
Business Acquisition (Details Textual) - USD ($)	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011	Aug. 06, 2012
Business Acquisition [Line Items]
Assets acquired in cash	$ 26,275,000		$ 26,275,000
Number of Shares of common stock issued for acquisition			347,852
Amortization expense	$ 530,000	$ 260,000	$ 1,050,000	$ 383,000
Business Acquisition (Textual) [Abstract]
Line of credit to fund cash paid for acquisition	11.0		11.0
Amortization expense for purchased intangible assets	$ 270,000
Edifice [Member]
Business Acquisition [Line Items]
Assets acquired in cash					$ 26,300,000
Number of Shares of common stock issued for acquisition			347,852
Acquisition-related cost included in consolidated statements	$ 212,000		$ 212,000
Revenues derived form Edifice customers			1,800,000
Amortization expense			$ 1,800,000
Statutory blended income tax rate			36.50%

Intangible Assets, net (Details) - USD ($) $ in Thousands	Sep. 30, 2012	Dec. 31, 2011
Intangible assets
Carrying Amount	$ 24,870	$ 8,630
Accumulated Amortization	(3,913)	(2,863)
Net	20,957	5,767
Customer relationships [Member]
Intangible assets
Carrying Amount	23,160	7,180
Accumulated Amortization	(3,219)	(2,394)
Net	19,941	4,786
Non-competition agreements [Member]
Intangible assets
Carrying Amount	1,710	1,450
Accumulated Amortization	(694)	(469)
Net	$ 1,016	$ 981

Intangible Assets, net (Details 1) $ in Thousands	Sep. 30, 2012 USD ($)
Future amortization expense for intangible assets
Remainder of 2012	$ 717
2013	2,867
2014	2,688
2015	2,578
2016	2,578
Thereafter	9,239
Future amortization expense for intangible assets.	$ 20,667

Intangible Assets, net (Details Textual) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Intangible Assets Net (Textual) [Abstract]
Amortization of intangible assets	$ 530	$ 260	$ 1,050	$ 383

Line of Credit (Details)	9 Months Ended
Line of Credit (Details)	Sep. 30, 2012 USD ($)
Line of Credit (Textual) [Abstract]
Revolving credit facility, amount	$ 20,000,000
Revolving credit facility, maturity date	Sep. 30, 2016
Line of credit to fund cash paid for acquisition	11.0
Borrowings outstanding	$ 0

Commitments and Contingencies (Details) $ in Thousands	Sep. 30, 2012 USD ($)
Future minimum payments under operating leases
Remainder of 2012	$ 174
2013	306
2014	2,283
2015	2,391
2016	2,500
Thereafter	9,246
Operating leases, total	$ 16,900

Commitments and Contingencies (Details Textual)	9 Months Ended
Commitments and Contingencies (Details Textual)	Sep. 30, 2012 USD ($) OptionPlan
Commitments and Contingencies (Textual) [Abstract]
Lease agreement executed date	February 14,2012
Lease Agreement date of commencement	November 1,2012
Lease agreement expires, date	Apr. 30, 2020
Additional square footage commencement date	September 1,2013
Number of options to extend term of the lease \| OptionPlan	2
Options to extend the term of the lease, number of years	3 years
Lease rent holiday period	November 2012 to October 2013
Landlord cash or an irrevocable letter of credit \| $	$ 172,000

Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Millions	9 Months Ended
	Sep. 30, 2012	Sep. 11, 2012	Dec. 31, 2011
Stockholders Equity (Textual) [Abstract]
Number of Shares of common stock issued for acquisition	347,852
Common stock, shares issued	14,683,384	1,840,000	12,138,858
Shares issued to underwriters under over allotment options		240,000
Issue price of shares		$ 33.50
Net proceeds from issue of shares	$ 57.8
underwriting discounts and commissions and legal, accounting and other fees	$ 3.8

- Definition

Fees and commissions from underwriting securities, private placements of securities, investment advisory and management services, merger and acquisition services, and other related consulting fees. Include fees and commissions from securities brokerage activities, from the sale and servicing of mutual funds, from the purchase and sale of securities and money market instruments where the bank is acting as agent for other banks or customers, and from the lending of securities owned by the bank or by bank customers (exclusive of trading revenue). Also includes the bank's proportionate share of the income or loss before extraordinary items and other adjustments from its investments in: unconsolidated subsidiaries, associated companies and corporate joint ventures, unincorporated joint ventures, general partnerships, and limited partnerships over which the bank exercises significant influence and that are principally engaged in investment banking, advisory, brokerage, or securities underwriting activities.

+ References + Details

Stock-Based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Stock-Based Compensation (Details) - USD ($) $ in Thousands	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Stock-based compensation expense
Stock-based compensation expense	$ 715	$ 487	$ 2,042	$ 1,286
Cost of revenues [Member]
Stock-based compensation expense
Stock-based compensation expense	122	68	336	186
Sales and marketing [Member]
Stock-based compensation expense
Stock-based compensation expense	232	121	627	347
Research and development [Member]
Stock-based compensation expense
Stock-based compensation expense	39	18	90	41
General and administrative [Member]
Stock-based compensation expense
Stock-based compensation expense	$ 322	$ 280	$ 989	$ 712

Stock-Based Compensation (Details 1)	9 Months Ended
Stock-Based Compensation (Details 1)	Sep. 30, 2012 $ / shares shares
Stock option activity
Options, Outstanding at December 31, 2011 \| shares	1,669,409
Options, Granted \| shares	239,016
Options, Exercised \| shares	(356,674)
Options, Forfeited \| shares	(28,227)
Options, Outstanding at Sep 30, 2012 \| shares	1,523,524
Weighted Average Exercise Price, Outstanding at December 31, 2011 \| $ / shares	$ 8.14
Weighted Average Exercise Price, Granted \| $ / shares	26.30
Weighted Average Exercise Price, Exercised \| $ / shares	3.06
Weighted Average Exercise Price, Forfeited \| $ / shares	19.11
Weighted Average Exercise Price, Outstanding at Sep 30, 2012 \| $ / shares	$ 11.98

Stock-Based Compensation (Details 2)	9 Months Ended
Stock-Based Compensation (Details 2)	Sep. 30, 2012
Stock Options [Member]
Weighted average fair value per share of options granted
Weighted-average volatility	46.00%
Expected dividend yield	0.00%
Expected life (in years)	4 years 9 months
Risk-free interest rate	0.79%
Employee Stock Purchase Plan [Member]
Weighted average fair value per share of options granted
Expected volatility	46.00%
Expected dividend yield	0.00%
Expected life (in years)	6 months
Risk-free interest rate	0.15%

Stock-Based Compensation (Details Textual)	3 Months Ended		9 Months Ended
Stock-Based Compensation (Details Textual)	Sep. 30, 2012 USD ($) $ / shares shares	Sep. 30, 2011 USD ($)	Sep. 30, 2012 USD ($) OptionPlan $ / shares shares	Sep. 30, 2011 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense \| $	$ 715,000	$ 487,000	$ 2,042,000	$ 1,286,000
Number of offerings per year \| OptionPlan			2
Percentage of common stock on fair market value			85.00%
Stock-Based Compensation (Textual) [Abstract]
Stock options vest, period			4 years
Stock options contractual term, from the date of grant			seven to ten years
Shares available for grant	1,100,000		1,100,000
Stock-based compensation expense \| $	$ 715,000	$ 487,000	$ 2,042,000	$ 1,286,000
Total outstanding options	871,782		871,782
Weighted average exercise price \| $ / shares	$ 6.86		$ 6.86
Weighted average remaining contractual life			6 years 4 months 24 days
Weighted average fair value per share of options granted \| $ / shares			$ 10.40
Granted, restricted stock units and awards			82,203
Restricted stock units with a weighted average grant date fair value \| $ / shares			$ 26.35
Restricted stock units and awards forfeited			2,368
Restricted stock units vest over, period			4 years
Restricted stock awards units vest over, period			1 year
Employee stock purchase plan, market price of common stock \| $ / shares			$ 30.38
Employee stock purchase plan offering period end date			Dec. 31, 2012
Equity compensation plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized stock-based compensation expense \| $	$ 6,900,000		$ 6,900,000
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized stock-based compensation, expected to be recognized, weighted average period			2 years 7 months 6 days
Employee Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense \| $	70,000		$ 70,000
Employee stock purchase plan, employees contribution \| $	$ 225,000		$ 225,000
Common stock reserved for future issuance	1,200,000		1,200,000
Common stock available for future purchases	1,200,000		1,200,000
Stock-Based Compensation (Textual) [Abstract]
Stock-based compensation expense \| $	$ 70,000		$ 70,000
Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock, Outstanding	75,873		75,873
Restricted Stock Award [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock, Outstanding	6,330		6,330

Income Taxes (Details) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
Income Taxes (Details) - USD ($)	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011	Dec. 31, 2011
Income Taxes (Textual) [Abstract]
Provision for income taxes	$ (124,000)	$ 81,000	$ 329,000	$ 188,000
State deferred tax	175,000		175,000
Deferred tax assets, valuation allowance					$ 12,800,000
Unrecognized tax benefits	$ 0		$ 0

Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Numerator
Net income	$ 174	$ 177	$ 856	$ 560
Denominator
Weighted average common shares outstanding, basic	13,042	11,970	12,500	11,918
Options to purchase common stock	821	765	846	767
Restricted stock units and awards	29		26
Employee stock purchase plan	2		1
Weighted average common shares outstanding, diluted	13,894	12,735	13,373	12,685
Net income per share
Basic	$ 0.01	$ 0.01	$ 0.07	$ 0.05
Diluted	$ 0.01	$ 0.01	$ 0.06	$ 0.04

Net Income Per Share (Details Textual) - shares	3 Months Ended	9 Months Ended
Net Income Per Share (Details Textual) - shares	Sep. 30, 2011	Sep. 30, 2011
Net Income Per Share (Textual) [Abstract]
Outstanding potential common shares, anti-dilutive	1,000	1,000

- Definition

Securities (including those issuable pursuant to contingent stock agreements) that could potentially dilute basic earnings per share (EPS) or earnings per unit (EPU) in the future that were not included in the computation of diluted EPS or EPU because to do so would increase EPS or EPU amounts or decrease loss per share or unit amounts for the period presented.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Antidilution
-URI http://asc.fasb.org/extlink&oid=6505113

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Diluted Earnings Per Share
-URI http://asc.fasb.org/extlink&oid=6510752

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Contingent Stock Agreement
-URI http://asc.fasb.org/extlink&oid=6508534

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 40
-Subparagraph c
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 13, 14
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 07-4
-Paragraph 4
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 171
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details