View Filing Data

Document and Entity Information - USD ($) $ in Millions	12 Months Ended
Document and Entity Information - USD ($) $ in Millions	Dec. 31, 2012	Feb. 22, 2013	Jun. 30, 2012
Document and Entity Information [Abstract]
Entity Registrant Name	SPS COMMERCE INC
Entity Central Index Key	0001092699
Document Type	10-K
Document Period End Date	Dec. 31, 2012
Amendment Flag	false
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	FY
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Public Float			$ 373.6
Entity Common Stock, Shares Outstanding		14,918,384

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
CURRENT ASSETS
Cash and cash equivalents	$ 66,050	$ 31,985
Accounts receivable, less allowance for doubtful accounts of $227 and $222, respectively	10,940	7,958
Deferred costs, current	7,346	5,748
Deferred income taxes, current	1,732	783
Prepaid expenses and other current assets	5,443	1,765
Total current assets	91,511	48,239
PROPERTY AND EQUIPMENT, net	7,670	3,382
GOODWILL	25,487	5,853
INTANGIBLE ASSETS, net	20,240	5,767
OTHER ASSETS
Deferred costs, net of current portion	3,202	2,510
Deferred income taxes, net of current portion	10,853	11,787
Other non-current assets	238	80
Total assets	159,201	77,618
CURRENT LIABILITIES
Accounts payable	1,857	1,411
Accrued compensation and benefits	6,038	5,118
Accrued expenses and other current liabilities	1,077	1,097
Deferred revenue, current	5,499	3,840
Total current liabilities	14,471	11,466
OTHER LIABILITIES
Deferred revenue, less current portion	8,312	6,599
Deferred rent	1,601
Total liabilities	24,384	18,065
COMMITMENTS and CONTINGENCIES
STOCKHOLDERS' 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; 14,812,759 and 12,138,858 shares issued and outstanding, respectively	15	12
Additional paid-in capital	182,645	108,606
Accumulated deficit	(47,843)	(49,065)
Total stockholders' equity	134,817	59,553
Total liabilities and stockholder's equity	$ 159,201	$ 77,618

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Consolidated Balance Sheets [Abstract]
Allowance for doubtful accounts	$ 227	$ 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	14,812,759	12,138,858
Common stock, shares outstanding	14,812,759	12,138,858

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Consolidated Statements of Operations [Abstract]
Revenues	$ 77,106	$ 57,969	$ 44,597
Cost of revenues	22,040	15,366	12,626
Gross profit	55,066	42,603	31,971
Operating expenses
Sales and marketing	30,037	23,836	16,601
Research and development	8,166	5,838	4,349
General and administrative	13,524	11,151	7,985
Amortization of intangible assets	1,767	643	0
Total operating expenses	53,494	41,468	28,935
Income from operations	1,572	1,135	3,036
Other income (expense)
Interest expense	(27)		(74)
Interest income	46	89	158
Other expense	(248)	(140)	(144)
Total other expense, net	(229)	(51)	(60)
Income before income taxes	1,343	1,084	2,976
Income tax benefit (expense)	(121)	12,619	(92)
Net income	$ 1,222	$ 13,703	$ 2,884
Net income per share
Basic	$ 0.09	$ 1.15	$ 0.36
Diluted	$ 0.09	$ 1.08	$ 0.25
Weighted average common shares used to compute net income per share
Basic	13,056	11,960	8,036
Diluted	13,910	12,744	11,596

Consolidated Statements of Redeemable Convertible Preferred Stock and Stockholders' Equity (Deficit) - USD ($) $ in Thousands	Total	Redeemable Convertible Preferred Series A	Redeemable Convertible Preferred Series B	Redeemable Convertible Preferred Series C	Redeemable Convertible Preferred Stock	Common Stock	Additional Paid-in Capital	Accumulated Deficit
Beginning Balance at Dec. 31, 2009	$ (60,466)	$ 37,676	$ 20,658	$ 7,444	$ 65,778		$ 5,186	$ (65,652)
Beginning Balance, Shares at Dec. 31, 2009		1,154,151	5,688,116	1,251,559		327,113
Stock-based compensation	750						750
Exercise of warrants						49,224
Exercise of stock options	$ 43						43
Exercise of stock options, shares	157,056					149,905
Conversion of redeemable convertible preferred stock	$ 65,778	$ (37,676)	$ (20,658)	$ (7,444)	$ (65,778)	$ 8	65,770
Conversion of redeemable convertible preferred stock, Shares		(1,154,151)	(5,688,116)	(1,251,559)		8,093,826
Conversion of warrants to purchase redeemable convertible preferred stock	596						596
Initial public offering, net of costs	32,902					$ 3	32,899
Initial public offering, net of costs, Shares						3,114,504
Secondary stock offering, net of costs	1,020						1,020
Secondary stock offering, net of costs, Shares						115,000
Net income	2,884							2,884
Other	1					$ 1
Ending Balance at Dec. 31, 2010	43,508					$ 12	106,264	(62,768)
Ending Balance, shares at Dec. 31, 2010						11,849,572
Stock-based compensation	1,768						1,768
Exercise of stock options	$ 621						621
Exercise of stock options, shares	289,286					289,286
Stock offering costs	$ (108)						(108)
Excess tax benefit of stock options exercised	61						61
Net income	13,703							13,703
Ending Balance at Dec. 31, 2011	59,553					$ 12	108,606	(49,065)
Ending Balance, shares at Dec. 31, 2011						12,138,858
Stock-based compensation	2,755						2,755
Exercise of stock options	$ 1,564					$ 1	1,563
Exercise of stock options, shares	468,717					468,717
Excess tax benefit of stock options exercised	$ 72						72
Employee stock purchase plan	448						448
Employee stock purchase plan, shares						17,332
Stock issued for acquisition	11,395						11,395
Stock issued for acquisition, shares						347,852
Stock offering, net of costs	57,808					$ 2	57,806
Stock offering, net of costs, shares						1,840,000
Net income	1,222							1,222
Ending Balance at Dec. 31, 2012	$ 134,817					$ 15	$ 182,645	$ (47,843)
Ending Balance, shares at Dec. 31, 2012						14,812,759

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Cash flows from operating activities
Net income	$ 1,222	$ 13,703	$ 2,884
Reconciliation of net income to net cash provided by operating activities
Deferred income taxes	(15)	(12,708)
Depreciation and amortization of property and equipment	3,151	2,004	1,533
Amortization of intangible assets	1,767	643	0
Provision for doubtful accounts	383	425	274
Stock-based compensation	2,755	1,768	750
Change in carrying value of preferred stock warrants			27
Other			1
Changes in assets and liabilities, net of effect of acquisitions
Accounts receivable	(2,067)	(2,810)	(1,081)
Deferred costs	(2,290)	(1,595)	(919)
Pre paid expenses and other current assets	(3,534)	(882)	567
Other assets	(42)	(10)	(17)
Accounts payable	446	413	(347)
Accrued compensation and benefits	920	1,541	572
Accrued expenses and other current liabilities	1,582	140	(480)
Deferred revenue	2,551	1,853	1,155
Net cash provided by operating activities	6,829	4,485	4,919
Cash flows from investing activities
Business acquisitions, net of cash acquired	(26,262)	(10,841)
Purchases of property and equipment	(5,983)	(2,584)	(1,772)
Net cash used in investing activities	(32,245)	(13,425)	(1,772)
Cash flows from financing activities
Payments of capital lease obligations	(410)	(122)	(338)
Borrowings on line of credit	11,000		4,450
Payments on line of credit	(11,000)		(5,950)
Payments on equipment loans			(732)
Net proceeds from initial public offering			32,902
Net proceeds from secondary stock offering	57,940		1,020
Stock offering costs	(132)	(108)
Net proceeds from exercise of options to purchase common stock	1,563	621	43
Excess tax benefit from exercise of options to purchase common stock	72	61
Net proceeds from employee stock purchase plan	448
Net cash provided by financing activities	59,481	452	31,395
Net increase (decrease) in cash and cash equivalents	34,065	(8,488)	34,542
Cash and cash equivalents at beginning of period	31,985	40,473	5,931
Cash and cash equivalents at end of period	66,050	31,985	40,473
Supplemental disclosure of cash flow information
Cash paid for interest	27	3	62
Cash paid for income taxes	47	$ 126	$ 95
Noncash financing activities:
Common stock issued for business acquisition	$ 11,396

General

12 Months Ended

Dec. 31, 2012

General [Abstract]

General

NOTE A — General

Business Description

We are a leading provider of on-demand supply chain management solutions, providing integration, collaboration, connectivity, visibility and data analytics to thousands of customers worldwide. We provide our solutions through the SPS Commerce platform, a cloud-based 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 consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and include the accounts of SPS Commerce, Inc. and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in the consolidated financial statements.

Certain reclassifications have been made to present prior year’s cash flow statement and footnote information consistently with the current year presentation.

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.

Business Combinations

We recognize separately from goodwill the fair value of the assets acquired and the liabilities assumed at the acquisition date. Goodwill as of the acquisition date is measured as the excess of consideration transferred and the net of the acquisition date amounts of the assets acquired and the liabilities assumed. Assets acquired include tangible and intangible assets. We determine the value and useful lives of purchased intangible assets with the assistance of an independent third-party valuation firm using certain estimates and assumptions.

While we use estimates and assumptions that we believe are reasonable as a part of the purchase price allocation process to accurately value the assets acquired and the liabilities assumed at the acquisition date, they are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, we may record adjustments to the fair value of the assets acquired and the liabilities assumed based on new information about facts and circumstances that existed as of the acquisition date. Any such adjustments would be recorded as an offset to goodwill. Upon the conclusion of the measurement period or final determination of the fair values, whichever comes first, any subsequent adjustments would be recorded in our consolidated statements of operations.

Segment Information

We operate in and report on one segment, supply chain management solutions.

Risk and Uncertainties

We rely on hardware and software licensed from third parties to offer our on-demand solutions. Our management believes alternate sources are available; however, disruption or termination of these relationships could adversely affect our operating results in the near term.

Fair Value of Financial Instruments

The carrying amounts of our financial instruments, which include cash and cash equivalents, accounts receivable, accounts payable and other accrued expenses, approximates fair value due to their short maturities.

Concentration of Credit Risk

Financial instruments that potentially subject us to concentrations of credit risk consist principally of temporary cash investments in financial institutions in excess of federally insured limits and trade accounts receivable. Temporary cash investments are held with financial institutions that we believe are subject to minimal risk.

Cash and Cash Equivalents

Cash and cash equivalents consist of cash and highly liquid investments with original maturities when purchased of less than 90 days.

Accounts Receivable

Accounts receivable are initially recorded upon the sale of solutions to customers. Credit is granted in the normal course of business without collateral. Accounts receivable are stated net of allowances for doubtful accounts, which represent estimated losses resulting from the inability of customers to make the required payments. Accounts that are outstanding longer than the contractual terms are considered past due. When determining the allowances for doubtful accounts, we take several factors into consideration including the overall composition of the accounts receivable aging, our prior history of accounts receivable write-offs, the type of customers and our day-to-day knowledge of specific customers. We write off accounts receivable when they become uncollectible. Changes in the allowances for doubtful accounts are recorded as bad debt expense and are included in general and administrative expense in our consolidated statements of operations.

Property and Equipment

Property and equipment, including assets acquired under capital lease obligations, are stated at cost, net of accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method over the shorter of the estimated useful lives of the individual assets or the lease term. The estimated useful lives are:

Computer equipment and purchased software: 2 to 5 years

Office equipment and furniture: 5 to 7 years

Leasehold improvements: 2 to 7 years

Significant additions or improvements extending asset lives beyond one year are capitalized, while repairs and maintenance are charged to expense as incurred. The assets and related accumulated depreciation and amortization accounts are adjusted for asset retirements and disposals with the resulting gain or loss included in net income.

Research and Development

Costs incurred to develop software applications used in our on-demand supply chain management solutions may be capitalized. Capitalizable costs consist of (a) certain external direct costs of materials and services incurred in developing or obtaining internal-use computer software and (b) payroll and payroll-related costs for employees who are directly associated with, and who devote time to, the project. These costs generally consist of internal labor during configuration, coding and testing activities. Research and development costs incurred during the preliminary project stage, or costs incurred for data conversion activities, training, maintenance and general and administrative or overhead costs, are expensed as incurred. Costs that cannot be separated between the maintenance of, and relatively minor upgrades and enhancements to, internal-use software are also expensed as incurred. Capitalization begins when (a) the preliminary project stage is complete, (b) management with the relevant authority authorizes and commits to the funding of the software project, (c) it is probable the project will be completed, (d) the software will be used to perform the functions intended, and (e) certain functional and quality standards have been met. Historically, no projects have had material costs beyond the preliminary project stage.

Our research and development efforts during 2012, 2011 and 2010 were primarily maintenance and data conversion activities related to our on-demand supply chain management solutions. As such, we did not capitalize any research and development costs during 2012, 2011 or 2010.

Goodwill

Goodwill represents the excess of the purchase price over the fair value of identifiable net assets acquired in business combinations. We test goodwill for impairment annually at December 31, or more frequently if events or changes in circumstances indicate that the asset might be impaired. The impairment test is conducted by comparing the fair value of the net assets with the carrying value of the reporting unit. Fair value is determined using the direct market observation of market price and outstanding equity of the reporting unit at December 31. If the carrying value of the goodwill exceeds the fair value of the reporting unit, goodwill may be impaired. If this occurs, the fair value is then allocated to its assets and liabilities in a manner similar to a purchase price allocation in order to determine the implied fair value of goodwill. This implied fair value is then compared to the carrying amount of goodwill and, if it is less, we would recognize an impairment loss. There has been no impairment of our goodwill to date.

Intangible Assets

Assets acquired in business combinations may include identifiable intangible assets such as subscriber relationships and non-competition agreements. We recognize separately from goodwill the fair value of the identifiable intangible assets acquired. We have determined the fair value and useful lives of our purchased intangible assets with the assistance of a third-party valuation firm using certain estimates and assumptions.

The purchased intangible assets are being amortized on a straight-line basis over their estimated useful lives, which is three to nine years for subscriber relationships and two to five years for non-competition agreements. We also have non-competition agreements from a previous acquisition that are amortized on a straight-line basis over the term of the agreements, which begins with the termination of employment of the respective employee(s).

Impairment of Long-Lived Assets

We review our long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. The carrying amount of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset at the date it is tested for recoverability, whether in use or under development. An impairment loss is measured as the amount by which the carrying amount of a long-lived asset exceeds its fair value. There has been no impairment of our long-lived assets to date.

Revenue Recognition

We generate revenues by providing a number of solutions to our customers. These solutions include Trading Partner Integration, Trading Partner Enablement and Trading Partner Intelligence. All of our solutions are hosted applications that allow customers to meet their supply chain management requirements. Sales taxes are presented on a net basis within revenue.

Revenues are recorded in accordance with Staff Accounting Bulletin 104, Revenue Recognition in Financial Statements and Accounting Standards Update (“ASU”) 2009-13, Multiple-Deliverable Revenue Arrangements, when all of the following criteria are met: (1) persuasive evidence of an arrangement exists, (2) delivery has occurred, (3) the fee is fixed and determinable, and (4) collectability is probable. If collection is not considered probable, revenues are recognized when the fees are collected

Fees related to our Trading Partner Integration, Trading Partner Enablement and Trading Partner Intelligence solutions consist of two revenue sources: set-up fees and recurring monthly hosting fees. Set-up fees are specific for each connection a customer has with a trading partner and most of our customers have connections with numerous trading partners. All set-up fees and related costs are deferred and recognized ratably over the life of the connection between a customer and the trading partner, which is generally two years. We continue to evaluate the length of these amortization periods as more experience is gained with contract cancellations and technology changes requested by our customers. It is possible that, in the future, the periods over which such subscription set-up fees and costs are amortized may be adjusted. Any such change in estimated expected amortization periods will affect our future results of operations. Set-up fees are nonrefundable upfront fees that do not have standalone value and are not part of the multiple element arrangement. These fees are deferred and recognized over the amortization period as defined above. The recurring monthly fee is comprised of both fixed and transaction based fees that provide standalone value and are recognized as earned.

Stock-Based Compensation

We recognize the cost of all share-based payments to employees, including grants of employee stock options, in the financial statements based on the grant date fair value of those awards. This cost is recognized over the period for which an employee is required to provide service in exchange for the award. Benefits associated with tax deductions in excess of recognized compensation expense are reported as a cash flow from financing activities.

We estimate the fair value of options granted using the Black-Scholes option pricing model. The estimation of stock awards that will ultimately vest requires judgment, and to the extent actual results differ from our estimates, such amounts will be recorded as an adjustment in the period estimates are revised. In valuing share-based awards, significant judgment is required in determining the expected volatility of common stock and the expected term individuals will hold their share-based awards prior to exercising. Expected volatility of the stock is based on a peer group in the industry in which we do business because we do not have sufficient historical volatility data for our own common stock. The expected term of the options is based on the simplified method which does not consider historical or expected employee exercise behavior.

Advertising Costs

Advertising costs are charged to expense as incurred. Advertising costs were approximately $150,000, $93,000 and $94,000 for the years ended December 31, 2012, 2011 and 2010, respectively. Advertising costs are included in sales and marketing expenses in our consolidated statements of operations.

Income Taxes

We account for income taxes using the liability method, which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance to the extent that utilization is not presently more likely than not.

We recognize the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more likely than not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the relevant tax authority.

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, restricted stock units and awards and, for the year ended December 31, 2010, redeemable convertible preferred stock. Potential common shares that are anti-dilutive are excluded from the calculation of diluted net income per share.

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.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 275
-SubTopic 10
-URI http://asc.fasb.org/subtopic&trid=2134480

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 852
-SubTopic 10
-URI http://asc.fasb.org/subtopic&trid=2209116

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 10
-URI http://asc.fasb.org/subtopic&trid=2122150

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-URI http://asc.fasb.org/subtopic&trid=2197480

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=7880789&loc=SL6228881-111685

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 272
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6373374&loc=d3e70478-108055

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 720
-SubTopic 15
-URI http://asc.fasb.org/subtopic&trid=2122524

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 10
-Section 45
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=7668296&loc=d3e288-107754

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 915
-SubTopic 235
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6472506&loc=d3e38932-110933

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6367646&loc=d3e18780-107790

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=18733093&loc=d3e5614-111684

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6359566&loc=d3e326-107755

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Statement of Position (SOP)
-Number 94-6
-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 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 2-6
-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 FASB
-Name FASB Interpretation (FIN)
-Number 46R
-Paragraph 4, 14, 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 16: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Staff Position (FSP)
-Number FAS140-4/FIN46(R)-8
-Paragraph 8, C1, C7
-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

Business Acquisitions

12 Months Ended

Dec. 31, 2012

Business Acquisitions [Abstract]

Business Acquisitions

NOTE B — Business Acquisitions

Edifice

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 increased our point-of-sale analytic offerings, expanded our base of recurring revenue customers and added 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 a 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.

During the fourth quarter of 2012, we completed our evaluation of the purchase price allocation and there were no adjustments to the purchase price or net assets acquired.

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


Cash	$	26,275
SPS Commerce, Inc. 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)
Subscriber 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 $727,000 for the period from August 7, 2012 through December 31, 2012.

Acquisition-Related Costs and Post-Acquisition Operating Results

Acquisition-related costs were $212,000 and are included in our consolidated statements of operations for the year ended December 31, 2012. The operating results of Edifice have been included in our consolidated financial statements from August 7, 2012, the closing date of the acquisition. For the period from August 7, 2012 through December 31, 2012, approximately $5.0 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%.


	Year Ended December 31,
(in thousands, except per share data)	2012		2011
Pro forma total revenue	$	83,478	$	68,543
Pro forma net income		1,055		12,757
Pro forma net income per share
Basic		0.08		1.04
Diluted		0.07		0.97

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.

Direct EDI

On May 17, 2011, we entered into an asset purchase agreement with Direct EDI LLC, a privately-held provider of cloud-based integration solutions for electronic data interchange, and we completed the asset purchase on May 18, 2011. Under the asset purchase agreement, we purchased and acquired substantially all of the assets of Direct EDI for $10.8 million in cash and assumed certain liabilities of Direct EDI. The acquisition of Direct EDI expanded our base of recurring revenue customers.

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 a 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 that are not included in the fair values of assets. Goodwill will not be amortized; however it is deductible for tax purposes. During the fourth quarter of 2011, we completed our evaluation of the purchase price allocation and recorded a purchase price adjustment of approximately $25,000 related to working capital.

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


Current assets	$	195
Property and equipment		42
Intangible assets		6,120
Goodwill		4,688
Current liabilities		(204	)

Total purchase price	$	10,841

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)
Subscriber relationships	$	5,250		7
Non-competition agreements		870		3

Total	$	6,120

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 $1.0 million and $643,000 for the years ended December 31, 2012 and 2011, respectively.

Acquisition-Related Costs and Post-Acquisition Operating Results

Acquisition-related costs were approximately $232,000 and are included in general and administrative expense in our consolidated statements of operations for the year ended December 31, 2011. The operating results of Direct EDI have been included in our consolidated financial statements from May 18, 2011, the closing date of the acquisition. For the year ended December 31, 2011, approximately $2.7 million of our revenues were derived from Direct EDI customers. The amount of operating income or loss from Direct EDI 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 Direct EDI as if the acquisition had occurred on January 1, 2010. The unaudited pro forma information includes the historical operating results of each company and certain pro forma adjustments, including annual amortization expense for purchased intangible assets of approximately $1.0 million and additional annual compensation expense of approximately $280,000 related to employment arrangements entered into as part of the acquisition.


	Year Ended December 31,
(in thousands, except per share data)	2011		2010
Pro forma total revenue	$	59,815	$	48,746
Pro forma net income		13,576		2,299
Pro forma net income per share
Basic		1.14		0.29
Diluted		1.07		0.20

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, 2010, 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

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=7659399&loc=d3e1497-128463

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=7659399&loc=d3e1490-128463

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=7659399&loc=d3e1392-128463

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=7488404&loc=d3e7008-128479

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=7659399&loc=d3e1486-128463

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=7488404&loc=d3e6927-128479

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6910749&loc=d3e4845-128472

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=7659399&loc=d3e1500-128463

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=7659399&loc=d3e1524-128463

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=7488404&loc=d3e7000-128479

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6910749&loc=d3e4922-128472

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6910749&loc=d3e4934-128472

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6910749&loc=d3e4926-128472

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=7488404&loc=d3e6996-128479

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=7659399&loc=d3e1383-128463

Reference 16: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 88-16
-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 FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Paragraph F4
-Subparagraph e
-Appendix F

Reference 18: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141
-Paragraph 51, 52
-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 19: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Paragraph 67-73
-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

Accounts Receivable, net

12 Months Ended

Dec. 31, 2012

Accounts Receivable, net [Abstract]

Accounts Receivable, net

NOTE C — Accounts Receivable, net

The allowance for doubtful accounts activity, included in accounts receivable, net, was as follows (in thousands):


	2012			2011			2010
Balances, January 1	$	222		$	209		$	226
Provision for doubtful accounts		383			425			274
Write-offs, net of recoveries		(378	)		(412	)		(291	)

Balances, December 31	$	227		$	222		$	209

Property and Equipment, net

12 Months Ended

Dec. 31, 2012

Property and Equipment, net [Abstract]

Property and Equipment, net

NOTE D — Property and Equipment, net

Property and equipment, net included the following (in thousands):


	December 31,
	2012			2011
Computer equipment and purchased software	$	13,154		$	7,914
Office equipment and furniture		2,975			1,964
Leasehold improvements		1,784			882

		17,913			10,760
Less: accumulated depreciation and amortization		(10,243	)		(7,378	)

	$	7,670		$	3,382

At December 31, 2012 and 2011, property and equipment, net included approximately $59,000 and $26,000, respectively, of assets held at subsidiary and office locations outside of the United States of America.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

+ References + Details

Goodwill and Intangible Assets, net

12 Months Ended

Dec. 31, 2012

Goodwill and Intangible Assets, net [Abstract]

Goodwill and Intangible Assets, net

NOTE E — Goodwill and Intangible Assets, net

The increase in goodwill for the year ended December 31, 2012 was due to the acquisition of Edifice (see Note B).

Intangible assets, net included the following (in thousands):


	December 31,
	2012							2011
	Carrying Amount		Accumulated Amortization			Net		Carrying Amount		Accumulated Amortization			Net
Subscriber relationships	$	23,160	$	(3,850	)	$	19,310	$	7,180	$	(2,394	)	$	4,786
Non-competition agreements		1,710		(780	)		930		1,450		(469	)		981

	$	24,870	$	(4,630	)	$	20,240	$	8,630	$	(2,863	)	$	5,767

Amortization expense for intangible assets was $1.8 million, $643,000 and $0 for the years ended December 31, 2012, 2011 and 2010, respectively.

At December 31, 2012, future amortization expense for intangible assets was as follows (in thousands):


2013	$	2,868
2014		2,688
2015		2,578
2016		2,577
2017		2,557
Thereafter		6,682

	$	19,950

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).

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References + Details

Fair Value of Financial Instruments

12 Months Ended

Dec. 31, 2012

Fair Value of Financial Instruments [Abstract]

Fair Value of Financial Instruments

NOTE F – Fair Value of Financial Instruments

Fair value represents the price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair value:

•

Level 1 — quoted prices in active markets for identical assets and liabilities.

•

Level 2 — observable inputs other than quoted prices in active markets for identical assets and liabilities.

•

Level 3 — unobservable inputs in which there is little or no market data available, which require the reporting entity to develop its own assumptions.

We previously had warrants outstanding to purchase 68,201 shares of our Series B redeemable convertible preferred stock. With the completion of our initial public offering in April 2010, these warrants were converted into warrants to purchase common stock and the related liability was transferred to additional paid-in capital in our consolidated balance sheets. See Note I for additional information. The table below presents a reconciliation of these preferred stock warrants, which were measured at fair value on a recurring basis using significant unobservable inputs (Level 3 inputs) (in thousands):


Balance at January 1, 2010	$	569
Total losses recognized		27
Converted into warrants to purchase common stock and liability transferred to additional paid-in capital		(596	)

Balance at December 31, 2010	$	—

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=7578670&loc=d3e19207-110258

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 30
-URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 21
-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13537-108611

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 28
-URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14064-108612

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 16
-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13504-108611

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13433-108611

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15B
-Subparagraph a, b
-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 133
-Paragraph 44A, 44B
-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 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 159
-Paragraph 17-22, 27, 28
-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 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15A
-Subparagraph a-d
-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 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15C, 15D
-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 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 157
-Paragraph 32, 33, 34
-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 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 3, 10, 14, 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.

+ Details

Line of Credit

12 Months Ended

Dec. 31, 2012

Line of Credit [Abstract]

Line of Credit

NOTE G – 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.

Interest on amounts borrowed under the credit facility is based on (i) an Adjusted LIBO Rate (as defined in the revolving credit agreement) plus an applicable margin of 175 to 225 basis points based on our net working capital, or (ii) JPMorgan’s prime rate (provided it is not less than the Adjusted One Month LIBO Rate (as defined in the revolving credit agreement)) plus an applicable margin of -25 to 25 basis points based on our net working capital. Interest is payable monthly in arrears. Availability under the credit facility is subject to a borrowing base equal to the sum of 250% of our eligible monthly recurring revenue (as defined in the revolving credit agreement) and all borrowings are due in full no later than the maturity date of the agreement.

The revolving credit agreement contains customary representations, warranties, covenants and events of default, including, but not limited to financial covenants requiring us to maintain a fixed charge coverage ratio of not less than 1.20 to 1.00, cash and cash equivalents of not less than $10 million and a minimum number of recurring revenue customers. If an event of default occurs, among other things, the applicable interest rate is subject to an increase of 2% and all outstanding obligations may become immediately due and payable.

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 I). There were no borrowings under the revolving credit agreement in 2011.

As of December 31, 2012, there were no borrowings outstanding, approximately $16.8 million was available for borrowings, and we were in compliance with all covenants under the revolving credit agreement.

- 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

12 Months Ended

Dec. 31, 2012

Commitments and Contingencies [Abstract]

Commitments and Contingencies

NOTE H – Commitments and Contingencies

Capital Leases

In connection with the acquisition of Edifice (see Note B), we assumed certain capital lease obligations for computer equipment and purchased software. As of September 30, 2012, these leases were fully repaid.

We previously leased certain computer equipment and purchased software under capital leases with an interest rate of 10.75%. These capital lease obligations were fully repaid in 2011.

Operating Leases

We are obligated under non-cancellable operating leases primarily for office space. Rent expense charged to operations was $1.6 million, $963,000 and $684,000 for the years ended December 31, 2012, 2011 and 2010, respectively.

On February 14, 2012, we executed a new lease agreement for our current headquarters location which commenced 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. There is also a rent holiday from November 2012 to October 2013 which has been incorporated into our deferred rent calculation. 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 December 31, 2012, our future minimum payments under operating leases were as follows (in thousands):


2013	$	788
2014		1,722
2015		1,761
2016		1,376
2017		1,397
Thereafter		3,492

	$	10,536

Management Incentive Agreements

Our board of directors previously approved management incentive agreements that provided for a bonus to be paid to certain executive officers upon a sale of the company. The aggregate bonus was equal to 0.322% of the amount of the purchase price, as defined, exceeding $25 million and less than $65 million. The aggregate bonus under these agreements was limited to $150,000. These management incentive agreements terminated on June 30, 2012 and no expense or liability had previously been recorded relating to these agreements.

Other Contingencies

We may be involved in various claims and legal actions in the normal course of business. Our management believes that the outcome of any such claims and legal actions will not have a significant adverse effect on our financial position, results of operations or cash flows.

- 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
-Publisher FASB
-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

Redeemable Convertible Preferred Stock and Stockholders' Equity (Deficit)

12 Months Ended

Dec. 31, 2012

Redeemable Convertible Preferred Stock and Stockholders' Equity (Deficit) [Abstract]

Redeemable Convertible Preferred Stock and Stockholders Equity (Deficit)

NOTE I – Redeemable Convertible Preferred Stock and Stockholders’ Equity (Deficit)

Common Stock Issued

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.

On August 7, 2012, 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 December 3, 2010, we completed a secondary public stock offering of 3,301,926 shares of common stock at an offering price of $12.25 per share. We issued and sold 115,000 shares, including 15,000 shares sold pursuant to the exercise in full of the underwriters’ over-allotment option, and the selling stockholders sold 3,186,926 shares. We received proceeds of approximately $1.0 million after payment of underwriting discounts and commissions and legal, accounting and other fees incurred in connection with the offering.

Initial Public Offering

On April 27, 2010, we completed our initial public offering of 4,711,198 shares of common stock at an offering price of $12.00 per share. We issued and sold 3,114,504 shares, including 614,504 shares sold pursuant to the exercise in full of the underwriters’ over-allotment option, and the selling stockholders sold 1,596,694 shares. We received proceeds of approximately $33.0 million, after payment of underwriting discounts and commissions and legal, accounting and other fees incurred in connection with the offering. On April 30, 2010, approximately $555,000 of the net proceeds was used to repay principal and interest on certain outstanding equipment loans.

At the close of the initial public offering, our previously outstanding shares of redeemable convertible preferred stock were automatically converted into 8,093,826 shares of common stock and warrants to purchase 68,201 shares of redeemable convertible preferred stock were converted into warrants to purchase 68,201 shares of common stock. Accordingly, the related warrant liability of approximately $596,000 was transferred to additional paid-in capital in our consolidated balance sheet. These common stock warrants were exercised in 2010.

Reverse Stock Split

On April 13, 2010, we effected a 0.267 for 1 reverse stock split in the form of a combination of our outstanding stock. All share and per share amounts in the accompanying financial statements and notes have been retroactively adjusted for all periods presented to give effect to the reverse stock split.

Preferred Stock Warrants

As discussed above, we previously had warrants outstanding to purchase 68,201 shares of our Series B redeemable convertible preferred stock. These warrants had an exercise price of $3.67 per share and expiration dates ranging from May 2011 to February 2016. We classified these outstanding warrants as a liability in our consolidated balance sheets. These warrants were subject to revaluation at each balance sheet date and any change in fair market value was recognized as a component of other income (expense) in our consolidated statements of operations.

Prior to the conversion of the preferred stock warrants into common stock warrants, we recorded other expense of $27,000 for the year ended December 31, 2010 for changes in the fair market value of these warrants.

Redeemable Convertible Preferred Stock

As discussed above, we previously had issued various classes of redeemable convertible preferred stock. The holders of our Series A, B, and C redeemable convertible preferred stock had the option to put their shares back to the company at the liquidation preference value, as defined in the Certificate of Incorporation, in the event of any liquidation, dissolution or winding up of the company, as defined.

None of the Series A, B and C redeemable convertible preferred stock had a mandatory redemption feature. In the event of a liquidation, as defined, the holders of Series C redeemable convertible preferred stock were entitled to receive, prior to and in preference to any distribution of any assets or surplus funds of the company to the holders of Series A and B redeemable convertible preferred stock or common stock, an amount in cash equal to $5.99 per share plus accrued unpaid dividends. After the liquidation payment to Series C redeemable convertible preferred stockholders, the holders of Series B redeemable convertible preferred stock were entitled to receive, prior to and in preference to any distribution of any assets or surplus funds of the company to the holders of Series A redeemable convertible preferred stock or common stock, an amount in cash equal to $3.67 per share plus accrued unpaid dividends. After the liquidation payment of Series B redeemable convertible preferred stockholders, the holders of Series A redeemable convertible preferred stock were entitled to receive, prior to and in preference to any distribution of any assets or surplus funds of the company to the holders of common stock, an amount in cash equal to $8.65 per share plus accrued unpaid dividends. After the liquidation payment to Series A, B and C redeemable convertible preferred stockholders, holders of common stock and Series A, B and C redeemable convertible preferred stock would share pro rata in the remaining assets of the company.

Each share of Series A, B, and C redeemable convertible preferred stock, at the option of the holder, was convertible into common shares at a conversion ratio equal to the conversion value divided by the conversion price. The conversion ratio was 1 to 1 at December 31, 2009. The conversion value and conversion price were initially set in our Fifth Amended and Restated Certificate of Incorporation at $8.65, $3.67 and $5.99 for the Series A, B and C redeemable convertible preferred stock, respectively. The conversion price was subject to adjustment for certain dilutive issuances. We had not issued any dilutive instruments which would adjust the conversion price and, therefore, the conversion value and the conversion price had not changed since they were initially set.

Each share of Series A, B and C redeemable convertible preferred stock were to be automatically and immediately converted into shares of common stock upon the closing of a public offering pursuant to an effective registration statement at the then effective conversion ratio, if the offering price per share was not less than $13.45 and the gross proceeds to the company were at least $20,000,000. Each share of redeemable convertible preferred stock was subject to weighted-average anti-dilution price protection. The holders of the redeemable convertible preferred stock were entitled to dividends only when declared. No dividends had been declared since the issuance of the redeemable convertible preferred stock. The holders of Series A, B and C redeemable convertible preferred stock were generally entitled to vote on all matters submitted to a vote of stockholders, except those required by law to be submitted to a class vote.

- 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
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21488-112644

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.29-31)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 4
-Subparagraph (SAB TOPIC 4.C)
-URI http://asc.fasb.org/extlink&oid=6959260&loc=d3e187143-122770

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21506-112644

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-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

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-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
-SubTopic 10
-Section 50
-Paragraph 2
-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

12 Months Ended

Dec. 31, 2012

Stock-Based Compensation [Abstract]

Stock-Based Compensation

NOTE J – 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. Each award exercised results in the issuance of new shares. During 2012, approximately 728,000 additional shares were authorized under our 2010 Equity Incentive Plan as available for grant. At December 31, 2012, there were approximately 1.1 million shares available for grant under approved equity compensation plans.

We recorded non-cash stock-based compensation expense of $2.8 million, $1.8 million and $750,000 for the years ended December 31, 2012, 2011 and 2010, respectively. This expense was allocated as follows (in thousands):


	Year Ended December 31,
	2012		2011		2010
Cost of revenues	$	382	$	255	$	103
Operating expenses
Sales and marketing		895		471		211
Research and development		140		56		20
General and administrative		1,338		986		416

Total stock-based compensation expense	$	2,755	$	1,768	$	750

As of December 31, 2012, there was approximately $5.7 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 approximately 2.7 years.

Stock Options

Our stock option activity was as follows:


	Options (#)			Weighted Average Exercise Price ($/share)
Outstanding at January 1, 2010		1,248,205		$	1.65
Granted		479,691			11.87
Exercised		(157,056	)		0.82
Forfeited		(21,496	)		23.92

Outstanding at December 31, 2010		1,549,344			4.59
Granted		431,790			17.04
Exercised		(289,286	)		2.15
Forfeited		(22,439	)		11.38

Outstanding at December 31, 2011		1,669,409			8.14
Granted		240,831			26.38
Exercised		(468,717	)		3.35
Forfeited		(71,382	)		19.25

Outstanding at December 31, 2012		1,370,141			12.41

Of the total outstanding options at December 31, 2012, 820,606 were exercisable with a weighted average exercise price of $7.66 per share. The total outstanding options had a weighted average remaining contractual life of 5.4 years.

The fair value of options that vested during the years ended December 31, 2012, 2011 and 2010 was $2.3 million, $1.3 million and $200,000, respectively.

The intrinsic value of options exercised during the years ended December 31, 2012, 2011 and 2010 was $12.1 million, $4.9 million and $1.7 million, respectively. The intrinsic value of outstanding options at December 31, 2012, 2011 and 2010 was $34.1 million, $29.7 million and $17.4 million, respectively.

The weighted-average fair values per share of options granted during 2012, 2011 and 2010 were $10.43, $8.25 and $5.82, respectively. The fair value of the options granted was estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions:


	Year Ended December 31,
	2012	2011	2010
Weighted-average volatility	46%	45%	46% - 49%
Expected dividend yield	—	—	—
Expected life (in years)	4.75	6.25	6.25
Weighted-average risk-free interest rate	0.61% - 0.82%	1.58% - 3.05%	1.79% - 3.14%

Prior to becoming a public entity in 2010, historic volatility was not available for our shares. As a result, we estimated volatility based on a peer group of companies, which collectively provided a reasonable basis for estimating volatility. We intend to continue to consistently use the same group of publicly traded peer companies to determine volatility in the future until sufficient information regarding volatility of our share price becomes available or the selected companies are no longer suitable for this purpose.

We have not issued dividends on our common stock and do not expect to do so in the foreseeable future. The expected term of the options is based on evaluations of historical and expected future employee exercise behavior. The estimated pre-vesting forfeiture rate is based on our historical experience. The risk-free interest rate is based on the U.S. Treasury rates at the date of grant with maturity dates approximately equal to the expected life at the grant date.

Restricted Stock Units and Awards


	Units and Awards (#)			Weighted Average Grant Date Fair Value ($/share)
Outstanding at January 1, 2012		—		$	—
Granted		82,203			26.35
Vested		—			—
Forfeited		(8,687	)		25.59

Outstanding at December 31, 2012		73,516			26.44

At December 31, 2012, there were 68,241 restricted stock units and 5,275 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.

The first offering period began on July 1, 2012 and ended on December 31, 2012. During this period, we withheld approximately $448,000 from employees participating in the plan. On December 31, 2012, 17,332 shares were purchased on behalf of the employees participating in the plan.

A total of 1.2 million shares of common stock were originally reserved for issuance under the plan. With the current period purchase, approximately 1.2 million shares were available for future purchases as of December 31, 2012.

For the year ended December 31, 2012, we recorded approximately $148,000 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

12 Months Ended

Dec. 31, 2012

Income Taxes [Abstract]

Income Taxes

NOTE K – Income Taxes

The provision (benefit) for income taxes was as follows (in thousands):


	Year Ended December 31,
	2012			2011			2010
Current
Federal	$	—		$	—		$	41
State		74			89			23
Foreign		63			—			—
Deferred
Federal		188			(12,282	)		26
State		(204	)		(426	)		2

	$	121		$	(12,619	)	$	92

For the year ended December 31, 2012, the provision for income taxes included current state and foreign income taxes, as well as deferred federal and state income taxes. It also included one-time tax benefits related to true-up adjustments. If these one-time benefits were excluded, our provision for income taxes would have been $418,000. The provision did not include any benefit for federal research and development tax credits as we are not allowed to consider these credits in our tax rate until they are formally reenacted.

For the year ended December 31, 2011, the benefit for income taxes included the release of a substantial portion of the valuation allowance on our deferred tax assets. The release of the valuation allowance was a non-cash event that indicated we expect the probability is more likely than not that we will generate sufficient future profits to fully utilize our deferred tax assets.

A reconciliation of the provision (benefit) for income taxes to the statutory federal rate was as follows (in thousands):


	Year Ended December 31,
	2012			2011			2010
Expected federal income tax at statutory rate	$	459		$	396		$	1,013
State income taxes, net of federal tax effect		31			37			75
Tax impact of foreign activity		(8	)		55			—
Permanent book/tax differences		23			100			106
Change in valuation allowance		(88	)		(1,310	)		(6,475	)
Release of valuation allowance		—			(12,802	)		—
Section 382 limitation		—			415			6,427
Change in state deferred rate		(162	)		—			—
Prior year true up		(135	)		43			69
AMT expense		—			—			71
General business credit		—			—			(107	)
State net operating loss adjustment		—			413			(1,087	)
Other		1			34			—

Total provision (benefit) for income taxes	$	121		$	(12,619	)	$	92

As of December 31, 2012 and 2011, we had income tax receivables of $72,000 and $90,000, respectively, which were included in prepaid expenses and other current assets on the consolidated balance sheets.

As of December 31, 2012, we had net operating loss carryforwards of $56.9 million for U.S. federal tax purposes and $23.9 million of various state net operating loss carryforwards. Our net operating loss carryforwards will expire between 2013 and 2032 if not utilized.

Section 382 of the U.S. Internal Revenue Code generally imposes an annual limitation on the amount of net operating loss carryforwards that might be used to offset taxable income when a corporation has undergone significant changes in stock ownership. We have performed a Section 382 analysis for the time period from our inception through December 8, 2010. During this time period it was determined that we had six separate ownership changes under Section 382. We have not updated the Section 382 analysis subsequent to December 8, 2010; however, we believe there have not been any events subsequent to that date that would materially impact the analysis. We believe that approximately $17.6 million of federal losses and $13.0 million of state losses will expire unused due to Section 382 limitations. The maximum annual limitation of federal net operating losses under Section 382 is approximately $990,000. This limitation could be further restricted if any ownership changes occur in future years.

Our federal and state net operating losses at December 31, 2012 included $17.7 million and $3.4 million, respectively, of income tax deductions in excess of previously recorded tax benefits. Although these additional tax deductions are included in the net operating losses referenced above, the related tax benefit will not be recognized until the deductions reduce our income taxes payable. The tax benefit of these excess deductions will be reflected as a credit to additional paid in capital when recognized. Accordingly, our deferred tax assets are reported net of the excess tax deductions for stock compensation and Section 382 limitations.

Realization of our net operating loss carryforwards and other deferred tax temporary differences are contingent upon future taxable earnings. We assess our ability to realize our deferred tax assets on a regular and periodic basis. This assessment requires estimates and significant judgment. If the estimates of future taxable income vary from actual results, our assessment regarding the realization of our deferred tax assets could change. Future changes in the estimated amount of deferred taxes that are expected to be realized will be reflected in our consolidated financial statements in the period the estimate is changed, with a corresponding adjustment to our operating results.

As of December 31, 2012, we had a valuation allowance against our deferred tax assets of $281,000 related to various state net operating loss and credit carryforwards that we do not expect to utilize.

The significant components of our deferred tax assets (liabilities) were as follows (in thousands):


	December 31,
	2012			2011
Current
Current net operating loss and credit carryforwards	$	1,615		$	856
Accounts receivable allowance		143			126
Stock-based compensation expense		154			—
Accrued expenses		643			390

Total current deferred tax asset		2,555			1,372

Deferred operations		(784	)		(589	)

Total current deferred tax liability		(784	)		(589	)

Valuation allowance		(39	)		—

Net current deferred tax asset	$	1,732		$	783

Non-current
Net operating loss and credit carryforwards	$	6,474		$	9,342
Deferred operations		2,533			1,413
Stock-based compensation expense		1,332			718
Depreciation and amortization		738			672
Other		18			11

Total non-current deferred tax asset		11,095			12,156
Valuation allowance		(242	)		(369	)

Net non-current deferred tax asset	$	10,853		$	11,787

We are subject to income taxes in the U.S. federal and various state and international jurisdictions. We are generally subject to U.S. federal and state tax examinations for all prior tax years due to our net operating loss carryforwards and the utilization of the carryforwards in years still open under statute. As of December 31, 2012, we are not under any income tax audits by tax authorities.

As of December 31, 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

12 Months Ended

Dec. 31, 2012

Net Income Per Share [Abstract]

Net Income Per Share

NOTE L – 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):


	Year Ended December 31,
	2012		2011		2010
Numerator
Net income	$	1,222	$	13,703	$	2,884

Denominator
Weighted average common shares outstanding, basic		13,056		11,960		8,036
Options to purchase common stock		826		784		973
Restricted stock units and awards		26		—		—
Employee stock purchase plan		2		—		—
Redeemable convertible preferred stock		—		—		2,587

Weighted average common shares outstanding, diluted		13,910		12,744		11,596

Net income per share
Basic	$	0.09	$	1.15	$	0.36

Diluted	$	0.09	$	1.08	$	0.25

For the years ended December 31, 2012, 2011 and 2010, the effect of all outstanding potential common shares was included in the calculation of diluted net income per share.

Employee Benefit Plan

12 Months Ended

Dec. 31, 2012

Employee Benefit Plan [Abstract]

Employee Benefit Plan

NOTE M – Employee Benefit Plan

We sponsor a 401(k) retirement savings plan whereby employees are allowed to contribute up to 100% of their salaries and the company will match 25% up to the first 6%. Our matching contributions to the plan, which vest immediately, were $372,000, $287,000 and $241,000 for the years ended December 31, 2012, 2011 and 2010, respectively.

- Definition

The entire disclosure for pension and other postretirement benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-URI http://asc.fasb.org/topic&trid=2235017

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Implementation Guide (Q and A)
-Number FAS88
-Paragraph 63
-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 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5
-Subparagraph b
-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 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 106
-Paragraph 518
-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 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5
-Subparagraph a
-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 Emerging Issues Task Force (EITF)
-Number 03-2
-Paragraph 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 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 87
-Paragraph 264
-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 132R
-Paragraph 5
-Subparagraph q
-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 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5
-Subparagraph h
-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 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 8
-Subparagraph m
-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 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 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 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 158
-Paragraph 7, 21, 22
-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 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Staff Position (FSP)
-Number FAS106-2
-Paragraph 20, 21, 22
-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 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Principles Board Opinion (APB)
-Number 30
-Paragraph 26
-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

Guarantees

12 Months Ended

Dec. 31, 2012

Guarantees [Abstract]

Guarantees

NOTE N – Guarantees

We provide limited guarantees to certain customers through service level agreements. These service level agreements are defined in the master agreements with the customer and performance is measured on a monthly basis for the life of the contract. Service level agreements require us to perform at specified levels which would include, but are not limited to, document processing times, data center availability, customer support and issue resolution.

Selected Quarterly Financial Data (Unaudited)

12 Months Ended

Dec. 31, 2012

Selected Quarterly Financial Data (Unaudited) [Abstract]

Selected Quarterly Financial Data (Unaudited)

NOTE O – Selected Quarterly Financial Data (Unaudited)

The following table presents our selected unaudited quarterly statements of operations data (in thousands, except per share amounts):


	For the Three Months Ended
2012	Mar 31		Jun 30		Sep 30		Dec 31
Revenues	$	16,534	$	17,821	$	20,267	$	22,484
Gross profit		12,086		12,978		14,322		15,680
Income from operations		459		751		138		224
Net income		256		426		174		366
Diluted earnings per share		0.02		0.03		0.01		0.02


	For the Three Months Ended
2011	Mar 31		Jun 30			Sep 30		Dec 31
Revenues	$	12,649	$	13,937		$	15,529	$	15,854
Gross profit		9,328		10,187			11,453		11,635
Income (loss) from operations		507		(41	)		270		399
Net income (loss)		492		(109	)		177		13,143
Diluted earnings (loss) per share		0.04		(0.01	)		0.01		1.02

- Definition

The entire disclosure for the quarterly financial data in the annual financial statements. The disclosure may include a tabular presentation of financial information for each fiscal quarter for the current and previous year, including revenues, gross profit, income or loss before extraordinary items and earnings per share data. It also includes an indication if the information in the note is unaudited, comments on the aggregate effect of year-end adjustments, and an explanation of matters or transactions that affect comparability or are pertinent to an understanding of the information furnished.

+ References + Details

General (Policies)	12 Months Ended
General (Policies)	Dec. 31, 2012
General [Abstract]
Business Description	*Business Description* We are a leading provider of on-demand supply chain management solutions, providing integration, collaboration, connectivity, visibility and data analytics to thousands of customers worldwide. We provide our solutions through the SPS Commerce platform, a cloud-based 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 consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and include the accounts of SPS Commerce, Inc. and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in the consolidated financial statements. Certain reclassifications have been made to present prior year’s cash flow statement and footnote information consistently with the current year presentation.
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.
Business Combinations	*Business Combinations* We recognize separately from goodwill the fair value of the assets acquired and the liabilities assumed at the acquisition date. Goodwill as of the acquisition date is measured as the excess of consideration transferred and the net of the acquisition date amounts of the assets acquired and the liabilities assumed. Assets acquired include tangible and intangible assets. We determine the value and useful lives of purchased intangible assets with the assistance of an independent third-party valuation firm using certain estimates and assumptions. While we use estimates and assumptions that we believe are reasonable as a part of the purchase price allocation process to accurately value the assets acquired and the liabilities assumed at the acquisition date, they are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, we may record adjustments to the fair value of the assets acquired and the liabilities assumed based on new information about facts and circumstances that existed as of the acquisition date. Any such adjustments would be recorded as an offset to goodwill. Upon the conclusion of the measurement period or final determination of the fair values, whichever comes first, any subsequent adjustments would be recorded in our consolidated statements of operations.
Segment Information	*Segment Information* We operate in and report on one segment, supply chain management solutions.
Risk and Uncertainties	*Risk and Uncertainties* We rely on hardware and software licensed from third parties to offer our on-demand solutions. Our management believes alternate sources are available; however, disruption or termination of these relationships could adversely affect our operating results in the near term.
Fair Value of Financial Instruments	*Fair Value of Financial Instruments* The carrying amounts of our financial instruments, which include cash and cash equivalents, accounts receivable, accounts payable and other accrued expenses, approximates fair value due to their short maturities.
Concentration of Credit Risk	*Concentration of Credit Risk* Financial instruments that potentially subject us to concentrations of credit risk consist principally of temporary cash investments in financial institutions in excess of federally insured limits and trade accounts receivable. Temporary cash investments are held with financial institutions that we believe are subject to minimal risk.
Cash and Cash Equivalents	*Cash and Cash Equivalents* Cash and cash equivalents consist of cash and highly liquid investments with original maturities when purchased of less than 90 days.
Accounts Receivable	*Accounts Receivable* Accounts receivable are initially recorded upon the sale of solutions to customers. Credit is granted in the normal course of business without collateral. Accounts receivable are stated net of allowances for doubtful accounts, which represent estimated losses resulting from the inability of customers to make the required payments. Accounts that are outstanding longer than the contractual terms are considered past due. When determining the allowances for doubtful accounts, we take several factors into consideration including the overall composition of the accounts receivable aging, our prior history of accounts receivable write-offs, the type of customers and our day-to-day knowledge of specific customers. We write off accounts receivable when they become uncollectible. Changes in the allowances for doubtful accounts are recorded as bad debt expense and are included in general and administrative expense in our consolidated statements of operations.
Property and Equipment	*Property and Equipment* Property and equipment, including assets acquired under capital lease obligations, are stated at cost, net of accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method over the shorter of the estimated useful lives of the individual assets or the lease term. The estimated useful lives are: Computer equipment and purchased software: 2 to 5 years Office equipment and furniture: 5 to 7 years Leasehold improvements: 2 to 7 years Significant additions or improvements extending asset lives beyond one year are capitalized, while repairs and maintenance are charged to expense as incurred. The assets and related accumulated depreciation and amortization accounts are adjusted for asset retirements and disposals with the resulting gain or loss included in net income.
Research and Development	*Research and Development* Costs incurred to develop software applications used in our on-demand supply chain management solutions may be capitalized. Capitalizable costs consist of (a) certain external direct costs of materials and services incurred in developing or obtaining internal-use computer software and (b) payroll and payroll-related costs for employees who are directly associated with, and who devote time to, the project. These costs generally consist of internal labor during configuration, coding and testing activities. Research and development costs incurred during the preliminary project stage, or costs incurred for data conversion activities, training, maintenance and general and administrative or overhead costs, are expensed as incurred. Costs that cannot be separated between the maintenance of, and relatively minor upgrades and enhancements to, internal-use software are also expensed as incurred. Capitalization begins when (a) the preliminary project stage is complete, (b) management with the relevant authority authorizes and commits to the funding of the software project, (c) it is probable the project will be completed, (d) the software will be used to perform the functions intended, and (e) certain functional and quality standards have been met. Historically, no projects have had material costs beyond the preliminary project stage. Our research and development efforts during 2012, 2011 and 2010 were primarily maintenance and data conversion activities related to our on-demand supply chain management solutions. As such, we did not capitalize any research and development costs during 2012, 2011 or 2010.
Goodwill	*Goodwill* Goodwill represents the excess of the purchase price over the fair value of identifiable net assets acquired in business combinations. We test goodwill for impairment annually at December 31, or more frequently if events or changes in circumstances indicate that the asset might be impaired. The impairment test is conducted by comparing the fair value of the net assets with the carrying value of the reporting unit. Fair value is determined using the direct market observation of market price and outstanding equity of the reporting unit at December 31. If the carrying value of the goodwill exceeds the fair value of the reporting unit, goodwill may be impaired. If this occurs, the fair value is then allocated to its assets and liabilities in a manner similar to a purchase price allocation in order to determine the implied fair value of goodwill. This implied fair value is then compared to the carrying amount of goodwill and, if it is less, we would recognize an impairment loss. There has been no impairment of our goodwill to date.
Intangible Assets	*Intangible Assets* Assets acquired in business combinations may include identifiable intangible assets such as subscriber relationships and non-competition agreements. We recognize separately from goodwill the fair value of the identifiable intangible assets acquired. We have determined the fair value and useful lives of our purchased intangible assets with the assistance of a third-party valuation firm using certain estimates and assumptions. The purchased intangible assets are being amortized on a straight-line basis over their estimated useful lives, which is three to nine years for subscriber relationships and two to five years for non-competition agreements. We also have non-competition agreements from a previous acquisition that are amortized on a straight-line basis over the term of the agreements, which begins with the termination of employment of the respective employee(s).
Impairment of Long-Lived Assets	*Impairment of Long-Lived Assets* We review our long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. The carrying amount of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset at the date it is tested for recoverability, whether in use or under development. An impairment loss is measured as the amount by which the carrying amount of a long-lived asset exceeds its fair value. There has been no impairment of our long-lived assets to date.
Revenue Recognition	*Revenue Recognition* We generate revenues by providing a number of solutions to our customers. These solutions include Trading Partner Integration, Trading Partner Enablement and Trading Partner Intelligence. All of our solutions are hosted applications that allow customers to meet their supply chain management requirements. Sales taxes are presented on a net basis within revenue. Revenues are recorded in accordance with Staff Accounting Bulletin 104, Revenue Recognition in Financial Statements and Accounting Standards Update (“ASU”) 2009-13, Multiple-Deliverable Revenue Arrangements, when all of the following criteria are met: (1) persuasive evidence of an arrangement exists, (2) delivery has occurred, (3) the fee is fixed and determinable, and (4) collectability is probable. If collection is not considered probable, revenues are recognized when the fees are collected Fees related to our Trading Partner Integration, Trading Partner Enablement and Trading Partner Intelligence solutions consist of two revenue sources: set-up fees and recurring monthly hosting fees. Set-up fees are specific for each connection a customer has with a trading partner and most of our customers have connections with numerous trading partners. All set-up fees and related costs are deferred and recognized ratably over the life of the connection between a customer and the trading partner, which is generally two years. We continue to evaluate the length of these amortization periods as more experience is gained with contract cancellations and technology changes requested by our customers. It is possible that, in the future, the periods over which such subscription set-up fees and costs are amortized may be adjusted. Any such change in estimated expected amortization periods will affect our future results of operations. Set-up fees are nonrefundable upfront fees that do not have standalone value and are not part of the multiple element arrangement. These fees are deferred and recognized over the amortization period as defined above. The recurring monthly fee is comprised of both fixed and transaction based fees that provide standalone value and are recognized as earned.
Stock-Based Compensation	*Stock-Based Compensation* We recognize the cost of all share-based payments to employees, including grants of employee stock options, in the financial statements based on the grant date fair value of those awards. This cost is recognized over the period for which an employee is required to provide service in exchange for the award. Benefits associated with tax deductions in excess of recognized compensation expense are reported as a cash flow from financing activities. We estimate the fair value of options granted using the Black-Scholes option pricing model. The estimation of stock awards that will ultimately vest requires judgment, and to the extent actual results differ from our estimates, such amounts will be recorded as an adjustment in the period estimates are revised. In valuing share-based awards, significant judgment is required in determining the expected volatility of common stock and the expected term individuals will hold their share-based awards prior to exercising. Expected volatility of the stock is based on a peer group in the industry in which we do business because we do not have sufficient historical volatility data for our own common stock. The expected term of the options is based on the simplified method which does not consider historical or expected employee exercise behavior.
Advertising Costs	*Advertising Costs* Advertising costs are charged to expense as incurred. Advertising costs were approximately $150,000, $93,000 and $94,000 for the years ended December 31, 2012, 2011 and 2010, respectively. Advertising costs are included in sales and marketing expenses in our consolidated statements of operations.
Income Taxes	*Income Taxes* We account for income taxes using the liability method, which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance to the extent that utilization is not presently more likely than not. We recognize the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more likely than not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the relevant tax authority.
Net Income Per Share	*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, restricted stock units and awards and, for the year ended December 31, 2010, redeemable convertible preferred stock. Potential common shares that are anti-dilutive are excluded from the calculation of diluted net income per share.
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 Acquisitions (Tables)

12 Months Ended

Dec. 31, 2012

Acquired Finite-Lived Intangible Assets [Line Items]

Business purchase price

During the fourth quarter of 2012, we completed our evaluation of the purchase price allocation and there were no adjustments to the purchase price or net assets acquired.

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


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

	$	37,671

Edifice [Member]

Acquired Finite-Lived Intangible Assets [Line Items]

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

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

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

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)
Subscriber relationships	$	15,980		9
Non-competition agreements		260		5

Total	$	16,240

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.


	Year Ended December 31,
(in thousands, except per share data)	2012		2011
Pro forma total revenue	$	83,478	$	68,543
Pro forma net income		1,055		12,757
Pro forma net income per share
Basic		0.08		1.04
Diluted		0.07		0.97

Direct EDI [Member]

Acquired Finite-Lived Intangible Assets [Line Items]

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

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


Current assets	$	195
Property and equipment		42
Intangible assets		6,120
Goodwill		4,688
Current liabilities		(204	)

Total purchase price	$	10,841

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

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)
Subscriber relationships	$	5,250		7
Non-competition agreements		870		3

Total	$	6,120

Unaudited Pro Forma Financial Information


	Year Ended December 31,
(in thousands, except per share data)	2011		2010
Pro forma total revenue	$	59,815	$	48,746
Pro forma net income		13,576		2,299
Pro forma net income per share
Basic		1.14		0.29
Diluted		1.07		0.20

- 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

Accounts Receivable, Net (Tables)

12 Months Ended

Dec. 31, 2012

Accounts Receivable, net [Abstract]

Schedule of Allowance for Doubtful Activity Including in Accounts Receivable Net

The allowance for doubtful accounts activity, included in accounts receivable, net, was as follows (in thousands):


	2012			2011			2010
Balances, January 1	$	222		$	209		$	226
Provision for doubtful accounts		383			425			274
Write-offs, net of recoveries		(378	)		(412	)		(291	)

Balances, December 31	$	227		$	222		$	209

Property and Equipment, Net (Tables)

12 Months Ended

Dec. 31, 2012

Property and Equipment, net [Abstract]

Schedule of Property and equipment, net

Property and equipment, net included the following (in thousands):


	December 31,
	2012			2011
Computer equipment and purchased software	$	13,154		$	7,914
Office equipment and furniture		2,975			1,964
Leasehold improvements		1,784			882

		17,913			10,760
Less: accumulated depreciation and amortization		(10,243	)		(7,378	)

	$	7,670		$	3,382

Goodwill and Intangible Assets, Net (Tables)

12 Months Ended

Dec. 31, 2012

Goodwill and Intangible Assets, net [Abstract]

Intangible assets

Intangible assets, net included the following (in thousands):


	December 31,
	2012							2011
	Carrying Amount		Accumulated Amortization			Net		Carrying Amount		Accumulated Amortization			Net
Subscriber relationships	$	23,160	$	(3,850	)	$	19,310	$	7,180	$	(2,394	)	$	4,786
Non-competition agreements		1,710		(780	)		930		1,450		(469	)		981

	$	24,870	$	(4,630	)	$	20,240	$	8,630	$	(2,863	)	$	5,767

Future amortization expense for intangible assets

Amortization expense for intangible assets was $1.8 million, $643,000 and $0 for the years ended December 31, 2012, 2011 and 2010, respectively.

At December 31, 2012, future amortization expense for intangible assets was as follows (in thousands):


2013	$	2,868
2014		2,688
2015		2,578
2016		2,577
2017		2,557
Thereafter		6,682

	$	19,950

Fair Value of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2012

Fair Value of Financial Instruments [Abstract]

Reconciliation of preferred stock warrants, using significant unobservable inputs (Level 3 inputs)

The table below presents a reconciliation of these preferred stock warrants, which were measured at fair value on a recurring basis using significant unobservable inputs (Level 3 inputs) (in thousands):


Balance at January 1, 2010	$	569
Total losses recognized		27
Converted into warrants to purchase common stock and liability transferred to additional paid-in capital		(596	)

Balance at December 31, 2010	$	—

- Definition

Tabular disclosure of the fair value measurement of liabilities using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and gains or losses recognized in other comprehensive income (loss) and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs) by class of liability.

+ References + Details

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2012

Commitments and Contingencies [Abstract]

Future minimum payments under operating leases

At December 31, 2012, our future minimum payments under operating leases were as follows (in thousands):


2013	$	788
2014		1,722
2015		1,761
2016		1,376
2017		1,397
Thereafter		3,492

	$	10,536

Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2012

Stock-Based Compensation [Abstract]

Stock-based compensation expense

This expense was allocated as follows (in thousands):


	Year Ended December 31,
	2012		2011		2010
Cost of revenues	$	382	$	255	$	103
Operating expenses
Sales and marketing		895		471		211
Research and development		140		56		20
General and administrative		1,338		986		416

Total stock-based compensation expense	$	2,755	$	1,768	$	750

Stock option activity

Our stock option activity was as follows:


	Options (#)			Weighted Average Exercise Price ($/share)
Outstanding at January 1, 2010		1,248,205		$	1.65
Granted		479,691			11.87
Exercised		(157,056	)		0.82
Forfeited		(21,496	)		23.92

Outstanding at December 31, 2010		1,549,344			4.59
Granted		431,790			17.04
Exercised		(289,286	)		2.15
Forfeited		(22,439	)		11.38

Outstanding at December 31, 2011		1,669,409			8.14
Granted		240,831			26.38
Exercised		(468,717	)		3.35
Forfeited		(71,382	)		19.25

Outstanding at December 31, 2012		1,370,141			12.41

Weighted average fair value per share of options granted

The fair value of the options granted was estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions:


	Year Ended December 31,
	2012	2011	2010
Weighted-average volatility	46%	45%	46% - 49%
Expected dividend yield	—	—	—
Expected life (in years)	4.75	6.25	6.25
Weighted-average risk-free interest rate	0.61% - 0.82%	1.58% - 3.05%	1.79% - 3.14%

Restricted Stock Units and Awards


	Units and Awards (#)			Weighted Average Grant Date Fair Value ($/share)
Outstanding at January 1, 2012		—		$	—
Granted		82,203			26.35
Vested		—			—
Forfeited		(8,687	)		25.59

Outstanding at December 31, 2012		73,516			26.44

Fair value estimation of common stock using Black-Scholes option pricing model, assumptions

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

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

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Income Taxes [Abstract]

Schedule of provision (benefit) for income taxes

The provision (benefit) for income taxes was as follows (in thousands):


	Year Ended December 31,
	2012			2011			2010
Current
Federal	$	—		$	—		$	41
State		74			89			23
Foreign		63			—			—
Deferred
Federal		188			(12,282	)		26
State		(204	)		(426	)		2

	$	121		$	(12,619	)	$	92

Reconciliation of the provision (benefit) for income taxes to the statutory federal rate

A reconciliation of the provision (benefit) for income taxes to the statutory federal rate was as follows (in thousands):


	Year Ended December 31,
	2012			2011			2010
Expected federal income tax at statutory rate	$	459		$	396		$	1,013
State income taxes, net of federal tax effect		31			37			75
Tax impact of foreign activity		(8	)		55			—
Permanent book/tax differences		23			100			106
Change in valuation allowance		(88	)		(1,310	)		(6,475	)
Release of valuation allowance		—			(12,802	)		—
Section 382 limitation		—			415			6,427
Change in state deferred rate		(162	)		—			—
Prior year true up		(135	)		43			69
AMT expense		—			—			71
General business credit		—			—			(107	)
State net operating loss adjustment		—			413			(1,087	)
Other		1			34			—

Total provision (benefit) for income taxes	$	121		$	(12,619	)	$	92

Significant components of deferred tax assets (liabilities)

The significant components of our deferred tax assets (liabilities) were as follows (in thousands):


	December 31,
	2012			2011
Current
Current net operating loss and credit carryforwards	$	1,615		$	856
Accounts receivable allowance		143			126
Stock-based compensation expense		154			—
Accrued expenses		643			390

Total current deferred tax asset		2,555			1,372

Deferred operations		(784	)		(589	)

Total current deferred tax liability		(784	)		(589	)

Valuation allowance		(39	)		—

Net current deferred tax asset	$	1,732		$	783

Non-current
Net operating loss and credit carryforwards	$	6,474		$	9,342
Deferred operations		2,533			1,413
Stock-based compensation expense		1,332			718
Depreciation and amortization		738			672
Other		18			11

Total non-current deferred tax asset		11,095			12,156
Valuation allowance		(242	)		(369	)

Net non-current deferred tax asset	$	10,853		$	11,787

Net Income Per Share (Tables)

12 Months Ended

Dec. 31, 2012

Net Income Per Share [Abstract]

Components of the computation of basic and 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):


	Year Ended December 31,
	2012		2011		2010
Numerator
Net income	$	1,222	$	13,703	$	2,884

Denominator
Weighted average common shares outstanding, basic		13,056		11,960		8,036
Options to purchase common stock		826		784		973
Restricted stock units and awards		26		—		—
Employee stock purchase plan		2		—		—
Redeemable convertible preferred stock		—		—		2,587

Weighted average common shares outstanding, diluted		13,910		12,744		11,596

Net income per share
Basic	$	0.09	$	1.15	$	0.36

Diluted	$	0.09	$	1.08	$	0.25

Selected Quarterly Financial Data (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2012

Selected Quarterly Financial Data (Unaudited) [Abstract]

Summary of unaudited quarterly statements of operations data

The following table presents our selected unaudited quarterly statements of operations data (in thousands, except per share amounts):


	For the Three Months Ended
2012	Mar 31		Jun 30		Sep 30		Dec 31
Revenues	$	16,534	$	17,821	$	20,267	$	22,484
Gross profit		12,086		12,978		14,322		15,680
Income from operations		459		751		138		224
Net income		256		426		174		366
Diluted earnings per share		0.02		0.03		0.01		0.02


	For the Three Months Ended
2011	Mar 31		Jun 30			Sep 30		Dec 31
Revenues	$	12,649	$	13,937		$	15,529	$	15,854
Gross profit		9,328		10,187			11,453		11,635
Income (loss) from operations		507		(41	)		270		399
Net income (loss)		492		(109	)		177		13,143
Diluted earnings (loss) per share		0.04		(0.01	)		0.01		1.02

General (Details Textual)	12 Months Ended
General (Details Textual)	Dec. 31, 2012 USD ($) Segment	Dec. 31, 2011 USD ($)	Dec. 31, 2010 USD ($)
General (Additional Textual) [Abstract]
Number of Reportable Segments \| Segment	1
Capitalized research and development costs	$ 0	$ 0	$ 0
Impairment of Goodwill	0
Impairment of long-lived assets	$ 0
Expected life of customer relationship period	2 years
Advertising Costs	$ 150,000	$ 93,000	$ 94,000
Subscriber relationships [Member] \| Maximum [Member]
General (Textual) [Abstract]
Estimated Useful Lives of Intangible Assets	9 years
Subscriber relationships [Member] \| Minimum [Member]
General (Textual) [Abstract]
Estimated Useful Lives of Intangible Assets	3 years
Non-competition agreements [Member] \| Maximum [Member]
General (Textual) [Abstract]
Estimated Useful Lives of Intangible Assets	5 years
Non-competition agreements [Member] \| Minimum [Member]
General (Textual) [Abstract]
Estimated Useful Lives of Intangible Assets	2 years
Computer equipment and purchased software [Member] \| Maximum [Member]
General (Textual) [Abstract]
Estimated Useful Lives of Property and Equipment	5 years
Computer equipment and purchased software [Member] \| Minimum [Member]
General (Textual) [Abstract]
Estimated Useful Lives of Property and Equipment	2 years
Office equipment and furniture [Member] \| Maximum [Member]
General (Textual) [Abstract]
Estimated Useful Lives of Property and Equipment	7 years
Office equipment and furniture [Member] \| Minimum [Member]
General (Textual) [Abstract]
Estimated Useful Lives of Property and Equipment	5 years
Leasehold improvements [Member] \| Maximum [Member]
General (Textual) [Abstract]
Estimated Useful Lives of Property and Equipment	7 years
Leasehold improvements [Member] \| Minimum [Member]
General (Textual) [Abstract]
Estimated Useful Lives of Property and Equipment	2 years

Business Acquisitions (Details) - Edifice [Member] $ in Thousands	Dec. 31, 2012 USD ($)
Business purchase price
Cash	$ 26,275
SPS Commerce, Inc. 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 Acquisitions (Details 1) $ in Thousands	Dec. 31, 2012 USD ($)
Edifice [Member]
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 purchase price	37,671
Direct EDI [Member]
Estimated fair values of the assets acquired and liabilities assumed at the acquisition date
Current assets	195
Property and equipment	42
Goodwill	4,688
Intangible assets	6,120
Current liabilities	(204)
Total purchase price	$ 10,841

Business Acquisitions (Details 2) - USD ($) $ in Thousands	12 Months Ended
Business Acquisitions (Details 2) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Edifice [Member]
Estimated fair value of the purchased intangible assets and their estimated useful lives
Estimated Fair Value	$ 16,240
Direct EDI [Member]
Estimated fair value of the purchased intangible assets and their estimated useful lives
Estimated Fair Value		$ 6,120
Subscriber relationships [Member] \| Edifice [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
Subscriber relationships [Member] \| Direct EDI [Member]
Estimated fair value of the purchased intangible assets and their estimated useful lives
Estimated Fair Value		$ 5,250
Estimated Life (in years)		7 years
Non-competition agreements [Member] \| Edifice [Member]
Estimated fair value of the purchased intangible assets and their estimated useful lives
Estimated Fair Value	$ 260
Estimated Life (in years)	5 years
Non-competition agreements [Member] \| Direct EDI [Member]
Estimated fair value of the purchased intangible assets and their estimated useful lives
Estimated Fair Value		$ 870
Estimated Life (in years)		3 years

Business Acquisitions (Details 3) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Edifice [Member]
Unaudited Pro Forma Financial Information
Pro forma total revenue	$ 83,478	$ 68,543
Pro forma net income	$ 1,055	$ 12,757
Pro forma net income per share, Basic	$ 0.08	$ 1.04
Pro forma net income per share, Diluted	$ 0.07	$ 0.97
Direct EDI [Member]
Unaudited Pro Forma Financial Information
Pro forma total revenue		$ 59,815	$ 48,746
Pro forma net income		$ 13,576	$ 2,299
Pro forma net income per share, Basic		$ 1.14	$ 0.29
Pro forma net income per share, Diluted		$ 1.07	$ 0.20

- 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 Acquisitions (Details Textual) - USD ($)	1 Months Ended	3 Months Ended	5 Months Ended	12 Months Ended
Business Acquisitions (Details Textual) - USD ($)	Aug. 31, 2012	Dec. 31, 2011	Dec. 31, 2012	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010	Aug. 06, 2012	May 17, 2011
Business Acquisition (Textual) [Abstract]
Number of Shares of common stock issued for acquisition	347,852
Amortization expense				$ 1,767,000	$ 643,000	$ 0
Business Acquisition (Additional Textual) [Abstract]
Purchase price adjustment related to working capital		$ 25,000
Additional annual compensation expense related to arrangements				$ 280,000
Edifice [Member]
Business Acquisition (Textual) [Abstract]
Assets acquired in cash							$ 26,300,000
Number of Shares of common stock issued for acquisition				347,852
Amortization expense for purchased intangible assets			$ 727,000
Amount borrowed from existing line of credit for payment of business acquisition				$ 11,000,000
Acquisition-related cost included in consolidated statements				212,000
Revenues derived from customers			$ 5,000,000
Amortization expense				$ 1,800,000
Statutory blended income tax rate				36.50%
Direct EDI [Member]
Business Acquisition (Textual) [Abstract]
Amortization expense for purchased intangible assets				$ 1,000,000	643,000
Acquisition-related cost included in consolidated statements					232,000
Revenues derived from customers					$ 2,700,000
Amortization expense				$ 1,000,000
Cost of Acquired Entity Purchase Price								$ 10,800,000

Accounts Receivable, Net (Details) - USD ($) $ in Thousands	12 Months Ended
Accounts Receivable, Net (Details) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Schedule of allowance for doubtful activity including in accounts receivables, net
Balances, January 1	$ 222	$ 209	$ 226
Provision for doubtful accounts	383	425	274
Write-offs, net of recoveries	(378)	(412)	(291)
Balances, December 31	$ 227	$ 222	$ 209

Property and Equipment, Net (Details) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Schedule of Property and equipment, net
Property, Plant and Equipment, Gross	$ 17,913	$ 10,760
Less: accumulated depreciation and amortization	(10,243)	(7,378)
Net, Total	7,670	3,382
Computer equipment and purchased software [Member]
Schedule of Property and equipment, net
Property, Plant and Equipment, Gross	13,154	7,914
Office equipment and furniture [Member]
Schedule of Property and equipment, net
Property, Plant and Equipment, Gross	2,975	1,964
Leasehold improvements [Member]
Schedule of Property and equipment, net
Property, Plant and Equipment, Gross	$ 1,784	$ 882

- Definition

The cumulative amount of depreciation, depletion and amortization (related to property, plant and equipment, but not including land) that has been recognized in the income statement.

+ References + Details

Property and Equipment, Net (Details Textual) - USD ($)	12 Months Ended
Property and Equipment, Net (Details Textual) - USD ($)	Dec. 31, 2012	Dec. 31, 2011
Property and Equipment, net (Textual) [Abstract]
Property and equipment, net	$ 59,000	$ 26,000

Goodwill and Intangible Assets, Net (Details) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Intangible assets
Carrying Amount	$ 24,870	$ 8,630
Accumulated Amortization	(4,630)	(2,863)
Net	20,240	5,767
Subscriber relationships [Member]
Intangible assets
Carrying Amount	23,160	7,180
Accumulated Amortization	(3,850)	(2,394)
Net	19,310	4,786
Non-competition agreements [Member]
Intangible assets
Carrying Amount	1,710	1,450
Accumulated Amortization	(780)	(469)
Net	$ 930	$ 981

Goodwill and Intangible Assets, Net (Details 1) $ in Thousands	Dec. 31, 2012 USD ($)
Future amortization expense for intangible assets
2013	$ 2,868
2014	2,688
2015	2,578
2016	2,577
2017	2,557
Thereafter	6,682
Future amortization expense for intangible assets.	$ 19,950

Goodwill and Intangible Assets, Net (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Goodwill and Intangible Assets, net (Textual) [Abstract]
Amortization of intangible assets	$ 1,767	$ 643	$ 0

Fair Value of Financial Instruments (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2010 USD ($)
Reconciliation of preferred stock warrants, using significant unobservable inputs (Level 3 inputs)
Converted into warrants to purchase common stock and liability transferred to additional paid-in capital	$ 596
Redeemable Convertible Preferred Stock [Member] \| Preferred Stock Warrant [Member]
Reconciliation of preferred stock warrants, using significant unobservable inputs (Level 3 inputs)
Beginning Balance	569
Total losses recognized	27
Converted into warrants to purchase common stock and liability transferred to additional paid-in capital	(596)
Ending Balance

Fair Value of Financial Instruments (Details Textual)	Apr. 30, 2010 shares
Redeemable Convertible Preferred Stock [Member] \| Preferred Stock Warrant [Member]
Fair Value of Financial Instruments (Textual) [Abstract]
Warrants outstanding stock	68,201

Line of Credit (Details Textual) - USD ($)	1 Months Ended	12 Months Ended
Line of Credit (Details Textual) - USD ($)	Sep. 30, 2012	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Line of Credit (Textual) [Abstract]
Cash and cash equivalents		$ 66,050,000	$ 31,985,000	$ 40,473,000	$ 5,931,000
Line of Credit (Additional Textual) [Abstract]
Revolving credit facility, amount		20,000,000
Revolving credit facility, maturity date	Sep. 30, 2016
Borrowings outstanding revolving credit agreement		0	$ 0
Borrowings available revolving credit agreement		16,800,000
Edifice [Member]
Line of Credit (Textual) [Abstract]
Amount borrowed from line of credit to fund cash paid for business acquisition		$ 11,000,000
Prime Rate [Member] \| Maximum [Member]
Line of Credit (Textual) [Abstract]
Applicable margin based on net working capital		0.25%
Prime Rate [Member] \| Minimum [Member]
Line of Credit (Textual) [Abstract]
Applicable margin based on net working capital		(0.25%)
LIBO [Member] \| Maximum [Member]
Line of Credit (Textual) [Abstract]
Applicable margin based on net working capital		2.25%
LIBO [Member] \| Minimum [Member]
Line of Credit (Textual) [Abstract]
Applicable margin based on net working capital		1.75%
Revolving Credit Facility [Member]
Line of Credit (Textual) [Abstract]
Interest rate description		Interest on amounts borrowed under the credit facility is based on (i) an Adjusted LIBO Rate (as defined in the revolving credit agreement) plus an applicable margin of 175 to 225 basis points based on our net working capital, or (ii) JPMorgan’s prime rate (provided it is not less than the Adjusted One Month LIBO Rate (as defined in the revolving credit agreement)) plus an applicable margin of -25 to 25 basis points based on our net working capital.
Borrowing base in compliance with eligible monthly recurring revenue		250.00%
Cash and cash equivalents		$ 10,000,000
Applicable interest rate		2.00%
Revolving Credit Facility [Member] \| Maximum [Member]
Line of Credit (Textual) [Abstract]
Fixed Charge Coverage Ratio		1.20
Revolving Credit Facility [Member] \| Minimum [Member]
Line of Credit (Textual) [Abstract]
Fixed Charge Coverage Ratio		1.00

Commitments and Contingencies (Details) $ in Thousands	Dec. 31, 2012 USD ($)
Future minimum payments under operating leases
2013	$ 788
2014	1,722
2015	1,761
2016	1,376
2017	1,397
Thereafter	3,492
Operating leases, total	$ 10,536

Commitments and Contingencies (Details Textual)	12 Months Ended
Commitments and Contingencies (Details Textual)	Dec. 31, 2012 USD ($) OptionPlan	Dec. 31, 2011 USD ($)	Dec. 31, 2010 USD ($)
Commitments and Contingencies (Additional Textual) [Abstract]
Previously leased capital leases, interest rate	10.75%
Rent expense charged to operations	$ 1,600,000	$ 963,000	$ 684,000
Lease agreement expires, date	Apr. 30, 2020
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
Aggregate bonus under agreements	$ 150,000
Aggregate bonus as percentage of the purchase price	0.322%
Recorded liability related to agreements	$ 0
Recorded expense related to agreements	$ 0
Lease agreement executed date	Feb. 14, 2012
Lease Agreement date of commencement	Nov. 01, 2012
Additional square footage commencement date	Sep. 01, 2013
Maximum [Member]
Commitments and Contingencies (Textual) [Abstract]
Purchase price on sale of company	$ 65,000,000
Minimum [Member]
Commitments and Contingencies (Textual) [Abstract]
Purchase price on sale of company	$ 25,000,000

Redeemable Convertible Preferred Stock and Stockholders' Equity (Deficit) (Details)			1 Months Ended				12 Months Ended
	Sep. 11, 2012 USD ($) $ / shares shares	Apr. 13, 2010	Aug. 31, 2012 shares	Apr. 30, 2010 USD ($)	Apr. 27, 2010 USD ($) $ / shares shares	Dec. 31, 2009 $ / shares	Dec. 31, 2012 USD ($) $ / shares shares	Dec. 31, 2010 USD ($)	Dec. 31, 2009 $ / shares	Dec. 31, 2011 shares	Dec. 03, 2010 $ / shares shares
Redeemable Convertible Preferred Stock and Stockholders' Equity (Deficit) (Textual) [Abstract]
Common stock issued and sold \| shares	1,840,000				3,114,504		14,812,759			12,138,858	115,000
Shares issued to underwriters under over allotment options \| shares	240,000
Issue price of shares \| $ / shares	$ 33.50
Net proceeds from issue of shares \| $	$ 57,800,000
Underwriting discounts and commissions and legal, accounting and other fees \| $	$ 3,800,000
Common Stock, Shares, Issued \| shares			347,852
Conversion ratio						1
Net proceeds \| $							$ 57,940,000	$ 1,020,000
Redeemable Convertible Preferred Stock and Stockholders' Equity (Deficit) (Additional Textual) [Abstract]
Net proceeds used to repay principal and interest on certain outstanding equipment loans \| $				$ 555,000
Additional paid-in capital \| $					$ 596,000
Reverse stock split		0.267 for 1
Reverse stock split Ratio		0.267
Preferred stock warrant expiration start period							2011-05
Preferred stock warrant expiration end period							2016-02
Other expense for changes in the fair market value of these warrants \| $								27,000
Condition for Conversion							Each share of Series A, B and C redeemable convertible preferred stock were to be automatically and immediately converted into shares of common stock upon the closing of a public offering pursuant to an effective registration statement at the then effective conversion ratio, if the offering price per share was not less than $13.45 and the gross proceeds to the company were at least $20,000,000
Minimum [Member]
Redeemable Convertible Preferred Stock and Stockholders' Equity (Deficit) (Textual) [Abstract]
Issue price of shares \| $ / shares							$ 13.45
Net proceeds \| $							$ 20,000,000
Redeemable Preferred Stock [Member]
Redeemable Convertible Preferred Stock and Stockholders' Equity (Deficit) (Textual) [Abstract]
Number of redeemable convertible preferred stock converted to common stock \| shares					8,093,826
Dividend Redeemable Convertible Preferred Stock \| $							$ 0
Series A Redeemable Convertible Preferred Stock [Member]
Redeemable Convertible Preferred Stock and Stockholders' Equity (Deficit) (Textual) [Abstract]
Preferred stock liquidation preference, per share \| $ / shares						$ 8.65			$ 8.65
Conversion value and conversion price \| $ / shares									8.65
Series B Redeemable Convertible Preferred Stock [Member]
Redeemable Convertible Preferred Stock and Stockholders' Equity (Deficit) (Textual) [Abstract]
Preferred stock liquidation preference, per share \| $ / shares						3.67			3.67
Conversion value and conversion price \| $ / shares									3.67
Series C Redeemable Convertible Preferred Stock [Member]
Redeemable Convertible Preferred Stock and Stockholders' Equity (Deficit) (Textual) [Abstract]
Preferred stock liquidation preference, per share \| $ / shares						$ 5.99			5.99
Conversion value and conversion price \| $ / shares									$ 5.99
Preferred Stock Warrant [Member] \| Series B Redeemable Convertible Preferred Stock [Member]
Redeemable Convertible Preferred Stock and Stockholders' Equity (Deficit) (Textual) [Abstract]
Warrants to purchase stock \| shares					68,201
Warrant exercise price \| $ / shares					$ 3.67
Common Stock Warrant [Member]
Redeemable Convertible Preferred Stock and Stockholders' Equity (Deficit) (Textual) [Abstract]
Warrants to purchase stock \| shares					68,201
Warrant expiry period							2010
Secondary Stock Offering [Member]
Redeemable Convertible Preferred Stock and Stockholders' Equity (Deficit) (Textual) [Abstract]
Common stock issued and sold \| shares											3,301,926
Shares issued to underwriters under over allotment options \| shares											15,000
Issue price of shares \| $ / shares											$ 12.25
Net proceeds from issue of shares \| $								$ 1,000,000
IPO [Member]
Redeemable Convertible Preferred Stock and Stockholders' Equity (Deficit) (Textual) [Abstract]
Common stock issued and sold \| shares					4,711,198
Shares issued to underwriters under over allotment options \| shares					614,504
Issue price of shares \| $ / shares					$ 12.00
Net proceeds from issue of shares \| $					$ 33,000,000
Shares Issued to Public [Member]
Redeemable Convertible Preferred Stock and Stockholders' Equity (Deficit) (Textual) [Abstract]
Common stock issued and sold \| shares					1,596,694						3,186,926

Stock-Based Compensation (Details) - USD ($) $ in Thousands	12 Months Ended
Stock-Based Compensation (Details) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Stock-based compensation expense
Stock-based compensation expense	$ 2,755	$ 1,768	$ 750
Cost of revenues [Member]
Stock-based compensation expense
Stock-based compensation expense	382	255	103
Sales and marketing [Member]
Stock-based compensation expense
Stock-based compensation expense	895	471	211
Research and development [Member]
Stock-based compensation expense
Stock-based compensation expense	140	56	20
General and administrative [Member]
Stock-based compensation expense
Stock-based compensation expense	$ 1,338	$ 986	$ 416

Stock-Based Compensation (Details 1) - $ / shares	12 Months Ended
Stock-Based Compensation (Details 1) - $ / shares	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Stock option activity
Options Outstanding, Beginning Balance	1,669,409	1,549,344	1,248,205
Options, Granted	240,831	431,790	479,691
Options, Exercised	(468,717)	(289,286)	(157,056)
Options, Forfeited	(71,382)	(22,439)	(21,496)
Options Outstanding, Ending Balance	1,370,141	1,669,409	1,549,344
Weighted Average Exercise Price, Beginning Balance	$ 8.14	$ 4.59	$ 1.65
Weighted Average Exercise Price, Granted	26.38	17.04	11.87
Weighted Average Exercise Price, Exercised	3.35	2.15	0.82
Weighted Average Exercise Price, Forfeited	19.25	11.38	23.92
Weighted Average Exercise Price, Ending Balance	$ 12.41	$ 8.14	$ 4.59

Stock-Based Compensation (Details 2) - Stock Options [Member]	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Weighted average fair value per share of options granted
Weighted-average volatility	46.00%	45.00%
Expected dividend yield
Expected life (in years)	4 years 9 months	6 years 3 months	6 years 3 months
Maximum [Member]
Weighted average fair value per share of options granted
Weighted-average volatility			49.00%
Weighted - average risk-free interest rate	0.82%	3.05%	3.14%
Minimum [Member]
Weighted average fair value per share of options granted
Weighted-average volatility			46.00%
Weighted - average risk-free interest rate	0.61%	1.58%	1.79%

Stock-Based Compensation (Details 3) - Restricted Stock Units [Member]	12 Months Ended
	Dec. 31, 2012 $ / shares shares
Restricted Stock Units and Awards
Units and Awards, Outstanding at January 1, 2012 \| shares
Granted, stock units and awards \| shares	82,203
Vested, stock units and awards \| shares
Forfeited, stock units and awards \| shares	(8,687)
Units and Awards, Outstanding at December 31, 2012 \| shares	73,516
Weighted average grant date fair value, Outstanding at January 1, 2012 \| $ / shares
Granted, Weighted Average Grant Date Fair Value \| $ / shares	26.35
Vested, Weighted Average Grant Date Fair Value \| $ / shares
Forfeited, Weighted Average Grant Date Fair Value \| $ / shares	25.59
Weighted average grant date fair value, Outstanding at December 31, 2012 \| $ / shares	$ 26.44

Stock Based Compensation (Details 4) - Employee Stock Purchase Plan [Member]	12 Months Ended
	Dec. 31, 2012
Fair value estimation of common stock using Black-Scholes option pricing model, assumptions
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)	12 Months Ended
Stock-Based Compensation (Details Textual)	Dec. 31, 2012 USD ($) OfferingPeriods $ / shares shares	Dec. 31, 2011 USD ($) $ / shares	Dec. 31, 2010 USD ($) $ / shares
Stock-based compensation (Additional Textual) [Abstract]
Stock-based compensation expense	$ 2,755,000	$ 1,768,000	$ 750,000
Employee stock purchase plan offering period end date	Dec. 31, 2012
Stock-Based Compensation (Textual) [Abstract]
Stock options vest, period	4 years
Stock options contractual term, from the date of grant	seven to ten years
Stock-based compensation expense	$ 2,755,000	1,768,000	750,000
Stock options exercisable \| shares	820,606
Weighted average exercise price \| $ / shares	$ 7.66
Weighted average remaining contractual life	5 years 4 months 24 days
Fair value of options vested	$ 2,300,000	1,300,000	200,000
Intrinsic value of options exercised	12,100,000	4,900,000	1,700,000
Intrinsic value of options outstanding	$ 34,100,000	$ 29,700,000	$ 17,400,000
Weighted average fair value per share of options granted \| $ / shares	$ 10.43	$ 8.25	$ 5.82
Percentage of common stock on fair market value	85.00%
Number of offerings per year \| OfferingPeriods	2
Employee stock purchase plan, market price of common stock \| $ / shares	$ 30.38
Equity compensation plan [Member]
Stock-based compensation (Additional Textual) [Abstract]
Shares available for grant \| shares	1,100,000
Unrecognized stock-based compensation expense	$ 5,700,000
Unrecognized stock-based compensation, expected to be recognized, weighted average period	2 years 8 months 12 days
Employee Stock Purchase Plan [Member]
Stock-based compensation (Additional Textual) [Abstract]
Stock-based compensation expense	$ 148,000
Employee stock purchase plan, employees contribution	$ 448,000
Employee stock purchase plan, share purchased \| shares	17,332
Common stock reserved for future issuance \| shares	1,200,000
Common stock available for future purchases \| shares	1,200,000
Stock-Based Compensation (Textual) [Abstract]
Stock-based compensation expense	$ 148,000
Equity Incentive Plan 2010 [Member]
Stock-based compensation (Additional Textual) [Abstract]
Additional shares were authorized under 2010 Equity Incentive Plan \| shares	728,000
Restricted Stock Units [Member]
Stock-based compensation (Additional Textual) [Abstract]
Restricted stock, Outstanding \| shares	68,241
Restricted stock units vest over, period	4 years
Restricted Stock Award [Member]
Stock-based compensation (Additional Textual) [Abstract]
Restricted stock, Outstanding \| shares	5,275
Restricted stock awards units vest over, period	1 year

Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Current
Federal			$ 41
State	$ 74	$ 89	23
Foreign	63
Deferred
Federal	188	(12,282)	26
State	(204)	(426)	2
Total provision (benefit) for income taxes	$ 121	$ (12,619)	$ 92

- Definition

The component of income tax expense for the period representing amounts paid or payable (or refundable) as determined by applying the provisions of enacted federal tax law to the domestic taxable Income or Loss from continuing operations.

+ References

+ Details

- Definition

The component of income tax expense for the period representing amounts paid or payable (or refundable) as determined by applying the provisions of enacted state and local tax law to relevant amounts of taxable Income or Loss from continuing operations.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.7)
-URI http://asc.fasb.org/extlink&oid=6889476&loc=d3e330036-122817

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Current Tax Expense (or Benefit)
-URI http://asc.fasb.org/extlink&oid=6509736

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 9
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319

Reference 4: 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.(h))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 45
-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 SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph h
-Article 4

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 6
-Section I
-Subsection 7

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 289
-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

- Definition

The component of total income tax expense for the period comprised of the increase (decrease) during the period in the entity's domestic deferred tax assets and liabilities attributable to continuing operations as determined by applying the provisions of the federally enacted tax law.

+ References

+ Details

- Definition

The component of total income tax expense for the period comprised of the increase (decrease) in the entity's state and local deferred tax assets and liabilities attributable to continuing operations as determined by applying the provisions of the applicable enacted tax laws.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Deferred Tax Expense (or Benefit)
-URI http://asc.fasb.org/extlink&oid=6510177

Reference 2: 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.(h))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.7)
-URI http://asc.fasb.org/extlink&oid=6889476&loc=d3e330036-122817

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 9
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 45
-Subparagraph b
-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 109
-Paragraph 8, 16, 17, 289
-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 SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 6
-Section I
-Subsection 7

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph h
-Article 4

+ Details

- Definition

The sum of the current income tax expense or benefit and the deferred income tax expense or benefit pertaining to pretax Income or Loss from continuing operations; income tax expense or benefit may include interest and penalties on tax uncertainties based on the entity's accounting policy.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 9
-Subparagraph (a),(b)
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 45
-Paragraph 25
-URI http://asc.fasb.org/extlink&oid=21917399&loc=d3e32247-109318

Reference 3: 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.(h))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32672-109319

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 45, 46
-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 SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph h
-Article 4

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Interpretation (FIN)
-Number 48
-Paragraph 15, 16, 19
-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 (Details 1) - USD ($) $ in Thousands	12 Months Ended
Income Taxes (Details 1) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Reconciliation of the provision (benefit) for income taxes to the statutory federal rate
Expected federal income tax at statutory rate	$ 459	$ 396	$ 1,013
State income taxes, net of federal tax effect	31	37	75
Tax impact of foreign activity	(8)	55
Permanent book/tax differences	23	100	106
Change in valuation allowance	(88)	(1,310)	(6,475)
Release of valuation allowance		(12,802)
Section 382 limitation		415	6,427
Change in state deferred rate	(162)
Prior year true up	(135)	43	69
AMT expense			71
General business credit			(107)
State net operating loss adjustment		413	(1,087)
Other	1	34
Total provision (benefit) for income taxes	$ 121	$ (12,619)	$ 92

Income Taxes (Details 2) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Current
Current net operating loss and credit carryforwards	$ 1,615	$ 856
Accounts receivable allowance	143	126
Stock-based compensation expense	154
Accrued expenses	643	390
Total current deferred tax asset	2,555	1,372
Deferred operations	(784)	(589)
Total current deferred tax liability	(784)	(589)
Valuation allowance	(39)
Net current deferred tax asset	1,732	783
Non-current
Net operating loss and credit carryforwards	6,474	9,342
Deferred operations	2,533	1,413
Stock-based compensation expense	1,332	718
Depreciation and amortization	738	672
Other	18	11
Total non-current deferred tax asset	11,095	12,156
Valuation allowance	(242)	(369)
Net non-current deferred tax asset	$ 10,853	$ 11,787

Income Taxes (Details Textual) - USD ($)	12 Months Ended
Income Taxes (Details Textual) - USD ($)	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Income Taxes (Additional Textual) [Abstract]
Provision for income taxes	$ 121,000	$ (12,619,000)	$ 92,000
Income Taxes (Textual) [Abstract]
Income tax receivable included in prepaid expenses and other current assets	$ 72,000	$ 90,000
Expiration of net operating loss carryforwards	Operating loss carryforwards will expire between 2013 and 2032 if not utilized
Valuation allowance against our deferred tax assets	$ 281,000
Unrecognized tax benefits	0
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit	0
Domestic Country [Member]
Income Taxes (Additional Textual) [Abstract]
Provision for income taxes	418,000
Net operating loss carryforwards for U. S. federal tax	56,900,000
Unused federal losses that will expire	17,600,000
Maximum annual limitation of federal net operating losses	990,000
Federal net operating losses	17,700,000
State and Local Jurisdiction [Member]
Income Taxes (Additional Textual) [Abstract]
Net operating loss carryforwards for U. S. federal tax	23,900,000
Unused federal losses that will expire	13,000,000
Federal net operating losses	$ 3,400,000

Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Numerator
Net income	$ 366	$ 174	$ 426	$ 256	$ 13,143	$ 177	$ (109)	$ 492	$ 1,222	$ 13,703	$ 2,884
Denominator
Weighted average common shares outstanding, basic									13,056	11,960	8,036
Options to purchase common stock									826	784	973
Restricted stock units and awards									26
Employee stock purchase plan									2
Redeemable convertible preferred stock											2,587
Weighted average common shares outstanding, diluted									13,910	12,744	11,596
Net income per share
Basic									$ 0.09	$ 1.15	$ 0.36
Diluted	$ 0.02	$ 0.01	$ 0.03	$ 0.02	$ 1.02	$ 0.01	$ (0.01)	$ 0.04	$ 0.09	$ 1.08	$ 0.25

Employee Benefit Plan (Details Textual) - USD ($)	12 Months Ended
Employee Benefit Plan (Details Textual) - USD ($)	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Employee Benefit Plan (Textual) [Abstract]
Maximum allowable contribution by employee percentage	100.00%
Defined benefit plan employer matching contribution percent	25.00%
Maximum Annual Contribution Per Employee, Percent	6.00%
Employer matching contribution Amount	$ 372,000	$ 287,000	$ 241,000

Selected Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Summary of unaudited quarterly statements of operations data
Revenues	$ 22,484	$ 20,267	$ 17,821	$ 16,534	$ 15,854	$ 15,529	$ 13,937	$ 12,649	$ 77,106	$ 57,969	$ 44,597
Gross profit	15,680	14,322	12,978	12,086	11,635	11,453	10,187	9,328	55,066	42,603	31,971
Income (loss) from operations	224	138	751	459	399	270	(41)	507	1,572	1,135	3,036
Net income (loss)	$ 366	$ 174	$ 426	$ 256	$ 13,143	$ 177	$ (109)	$ 492	$ 1,222	$ 13,703	$ 2,884
Diluted earnings (loss) per share	$ 0.02	$ 0.01	$ 0.03	$ 0.02	$ 1.02	$ 0.01	$ (0.01)	$ 0.04	$ 0.09	$ 1.08	$ 0.25

- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

+ References + Details

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Net Income
-URI http://asc.fasb.org/extlink&oid=6518256

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 230
-SubTopic 10
-Section 45
-Paragraph 28
-URI http://asc.fasb.org/extlink&oid=6943989&loc=d3e3602-108585

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 225
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04.19)
-URI http://asc.fasb.org/extlink&oid=6879464&loc=d3e573970-122913

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

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 225
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03.18)
-URI http://asc.fasb.org/extlink&oid=6880815&loc=d3e20235-122688

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 225
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04.22)
-URI http://asc.fasb.org/extlink&oid=6879464&loc=d3e573970-122913

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Other Comprehensive Income
-URI http://asc.fasb.org/extlink&oid=6519514

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=20435746&loc=d3e565-108580

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 38
-Subparagraph d
-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 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 130
-Paragraph 10, 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 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph A7
-Appendix A

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 87-21
-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 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 03
-Paragraph 19
-Article 5

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 38
-Subparagraph a
-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 FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 95
-Paragraph 28, 29, 30
-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 SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Paragraph 20
-Article 9

+ Details