View Filing Data

Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Mar. 31, 2013	Apr. 24, 2013
Document and Entity Information [Abstract]
Entity Registrant Name	SPS COMMERCE INC
Entity Central Index Key	0001092699
Document Type	10-Q
Document Period End Date	Mar. 31, 2013
Amendment Flag	false
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		15,014,247

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2013	Dec. 31, 2012
CURRENT ASSETS
Cash and cash equivalents	$ 72,559	$ 66,050
Accounts receivable, less allowance for doubtful accounts of $226 and $227, respectively	10,788	10,940
Deferred costs, current	7,860	7,346
Deferred income taxes, current	1,732	1,732
Prepaid expenses and other current assets	2,713	5,443
Total current assets	95,652	91,511
PROPERTY AND EQUIPMENT, net	7,589	7,670
GOODWILL	25,487	25,487
INTANGIBLE ASSETS, net	19,523	20,240
OTHER ASSETS
Deferred costs, net of current portion	3,396	3,202
Deferred income taxes, net of current portion	10,925	10,853
Other non-current assets	207	238
Total assets	162,779	159,201
CURRENT LIABILITIES
Accounts payable	2,034	1,857
Accrued compensation and benefits	6,697	6,038
Accrued expenses and other current liabilities	1,063	1,077
Deferred revenue, current	5,827	5,499
Total current liabilities	15,621	14,471
OTHER LIABILITIES
Deferred revenue, less current portion	8,339	8,312
Deferred rent	1,830	1,601
Total liabilities	25,790	24,384
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; 15,001,667 and 14,812,759 shares issued and outstanding, respectively	15	15
Additional paid-in capital	184,618	182,645
Accumulated deficit	(47,644)	(47,843)
Total stockholders' equity	136,989	134,817
Total liabilities and stockholder's equity	$ 162,779	$ 159,201

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2013	Dec. 31, 2012
Condensed Consolidated Balance Sheets [Abstract]
Allowance for doubtful accounts	$ 226	$ 227
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	15,001,667	14,812,759
Common stock, shares outstanding	15,001,667	14,812,759

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Condensed Consolidated Statements of Operations [Abstract]
Revenues	$ 23,752	$ 16,534
Cost of revenues	7,066	4,448
Gross profit	16,686	12,086
Operating expenses
Sales and marketing	9,225	6,447
Research and development	2,503	1,732
General and administrative	4,047	3,188
Amortization of intangible assets	717	260
Total operating expenses	16,492	11,627
Income from operations	194	459
Other income (expense)
Interest income	23	15
Other expense	(84)	(65)
Total other expense, net	(61)	(50)
Income before income taxes	133	409
Income tax benefit (expense)	66	(153)
Net income	$ 199	$ 256
Net income per share
Basic	$ 0.01	$ 0.02
Diluted	$ 0.01	$ 0.02
Weighted average common shares used to compute net income per share
Basic	14,884	12,163
Diluted	15,564	13,185

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Cash flows from operating activities
Net income	$ 199	$ 256
Reconciliation of net income to net cash provided by operating activities
Deferred income taxes	(72)	142
Depreciation and amortization of property and equipment	1,171	592
Amortization of intangible assets	717	260
Provision for doubtful accounts	80	82
Stock-based compensation	924	612
Changes in assets and liabilities
Accounts receivable	72	(105)
Deferred costs	(778)	(497)
Prepaid expenses and other current assets	2,831	(144)
Accounts payable	177	(171)
Accrued compensation and benefits	659	(570)
Accrued expenses and other current liabilities	214	215
Deferred revenue	355	932
Net cash provided by operating activities	6,549	1,604
Cash flows from investing activities
Purchases of property and equipment	(1,089)	(630)
Net cash used in investing activities	(1,089)	(630)
Cash flows from financing activities
Net proceeds from exercise of options to purchase common stock	1,049	93
Excess tax benefit from exercise of options to purchase common stock		11
Net cash provided by financing activities	1,049	104
Net increase in cash and cash equivalents	6,509	1,078
Cash and cash equivalents at beginning of period	66,050	31,985
Cash and cash equivalents at end of period	$ 72,559	$ 33,063

General

3 Months Ended

Mar. 31, 2013

General [Abstract]

General

NOTE A – General

Business Description

We are a leading provider of on-demand supply chain management solutions, providing prewired, proven integrations and comprehensive retail performance 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 unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, these condensed consolidated financial statements do not include all of the information and notes required by GAAP. We have included all normal recurring adjustments considered necessary to give a fair statement of our financial position, results of operations and cash flows for the interim periods shown. Operating results for these interim periods are not necessarily indicative of the results to be expected for the full year. The December 31, 2012 balance sheet data was derived from our audited financial statements at that date. For further information, refer to the consolidated financial statements and accompanying notes for the year ended December 31, 2012 included in our Annual Report on Form 10-K as filed with the Securities and Exchange Commission on March 6, 2013.

Use of Estimates

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

Significant Accounting Policies

During the three months ended March 31, 2013, there were no material changes in our significant accounting policies. See Note A to the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2012, as filed with the Securities and Exchange Commission on March 6, 2013, for additional information regarding our significant accounting policies.

Recent Accounting Pronouncements

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

- Definition

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

+ References

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-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.

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-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
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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

Intangible Assets, net

3 Months Ended

Mar. 31, 2013

Intangible Assets, Net [Abstract]

Intangible Assets, net

NOTE B – Intangible Assets, net

Intangible assets included the following (in thousands):


	March 31, 2013							December 31, 2012
	Carrying		Accumulated					Carrying		Accumulated
	Amount		Amortization			Net		Amount		Amortization			Net
Subscriber relationships	$	23,160	$	(4,482	)	$	18,678	$	23,160	$	(3,850	)	$	19,310
Non-competition agreements		1,710		(865	)		845		1,710		(780	)		930

	$	24,870	$	(5,347	)	$	19,523	$	24,870	$	(4,630	)	$	20,240

Amortization expense for intangible assets was $717,000 and $260,000 for the three months ended March 31, 2013 and 2012, respectively.

At March 31, 2013, future amortization expense for intangible assets was as follows (in thousands):


Remainder of 2013	$	2,151
2014		2,688
2015		2,578
2016		2,577
2017		2,557
Thereafter		6,682

	$	19,233

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

Line of Credit

3 Months Ended

Mar. 31, 2013

Line of Credit [Abstract]

Line of Credit

NOTE C – 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.

There were no borrowings outstanding at March 31, 2013 and we were in compliance with all covenants under the revolving credit agreement as of that date.

- Definition

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

+ References + Details

Stock-Based Compensation

3 Months Ended

Mar. 31, 2013

Stock-Based Compensation [Abstract]

Stock-Based Compensation

NOTE D – 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. Each award exercised or vested results in the issuance of new shares. In January 2013, 888,765 additional shares were reserved for future issuance under our 2010 Equity Incentive Plan. At March 31, 2013, there were approximately 1.8 million shares available for grant under approved equity compensation plans.

We recorded non-cash stock-based compensation expense of $924,000 and $612,000 for the three months ended March 31, 2013 and 2012, respectively. This expense was allocated as follows (in thousands):


	Three Months Ended
	March 31,
	2013		2012
Cost of revenues	$	103	$	98
Operating expenses
Sales and marketing		342		178
Research and development		61		22
General and administrative		418		314

Total stock-based compensation expense	$	924	$	612

As of March 31, 2013, there was approximately $9.9 million of unrecognized stock-based compensation expense under our equity compensation plans, which is expected to be recognized on a straight line basis over a weighted average period of 3.2 years.

Stock Options

Stock options generally vest over four years and have a contractual term of seven to ten years from the date of grant. Our stock option activity was as follows:


				Weighted Average
	Options			Exercise Price
	(#)			($/share)
Outstanding at December 31, 2012		1,370,141		$	12.41
Granted		201,006			39.01
Exercised		(175,222	)		5.99
Forfeited		(1,308	)		20.16

Outstanding at March 31, 2013		1,394,617			17.04

Of the total outstanding options at March 31, 2013, 736,542 were exercisable with a weighted average exercise price of $9.49 per share. The total outstanding options had a weighted average remaining contractual life of 5.7 years.

The weighted average fair value per share of options granted during the first three months of 2013 was $14.00 and this was estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions:


Weighted-average volatility	41.1	%
Expected dividend yield	0	%
Expected life (in years)	4.75
Weighted-average risk-free interest rate	0.84	%

Restricted Stock Units and Awards

Restricted stock units vest over four years and restricted stock awards vest over one year. Upon vesting, the holder is entitled to receive shares of our common stock. Our restricted stock units and restricted stock awards activity was as follows:


	Units and			Weighted Average
	Awards			Grant Date Fair
	(#)			Value ($/share)
Outstanding at December 31, 2012		73,516		$	26.44
Granted		57,205			39.01
Vested		(13,686	)		25.32
Forfeited		—			—

Outstanding at March 31, 2013		117,035			32.71

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. A total of 1.2 million shares of common stock are reserved for issuance under the plan.

As of March 31, 2013, we have withheld approximately $271,000 from employees participating in the plan for the offering period that began on January 1, 2013 and a total of approximately 1.2 million shares were available for future purchases under the plan.

For the three months ended March 31, 2013, we recorded approximately $93,000 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 $37.27 per share, and using the Black-Scholes option pricing model with the following assumptions:


Expected volatility	41.1	%
Expected dividend yield	0	%
Expected life (in years)	0.50
Risk-free interest rate	0.12	%

- 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

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-Publisher FASB
-Name Accounting Standards Codification
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-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

3 Months Ended

Mar. 31, 2013

Income Taxes [Abstract]

Income Taxes

NOTE E – Income Taxes

We recorded an income tax benefit of $66,000 for the three months ended March 31, 2013. We recorded income tax expense of $153,000 for the three months ended March 31, 2012. We record our interim provision for income taxes based on our estimated annual effective tax rate for the year. Our provisions for income taxes included current foreign and state income tax expense, as well as deferred tax expense.

The decrease in income tax expense for the three months ended March 31, 2013, compared to the three months ended March 31, 2012, was primarily due to a discrete tax benefit of $117,000 in 2013 for the retroactive benefit of the 2012 federal R&D credit. The American Taxpayer Relief Act of 2012 was enacted on January 2, 2013 and extended the federal R&D credit from January 1, 2012 through December 31, 2013.

We are subject to income taxes in the U.S. federal and various state and international jurisdictions. As of March 31, 2013, we are generally subject to tax examinations for all prior years due to our net operating loss carryforwards.

As of March 31, 2013, 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

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-SubTopic 10
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-Paragraph 1
-Subparagraph (SX 210.4-08.(h))
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Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 136, 172
-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 Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph h
-Article 4

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 43, 44, 45, 46, 47, 48, 49
-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

Net Income Per Share

3 Months Ended

Mar. 31, 2013

Net Income Per Share [Abstract]

Net Income Per Share

NOTE F – Net Income Per Share

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

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


	Three Months Ended
	March 31,
	2013		2012
Numerator
Net income	$	199	$	256

Denominator
Weighted average common shares outstanding, basic		14,884		12,163
Options to purchase common stock		627		988
Restricted stock units and awards		51		34
Employee stock purchase plan		2		—

Weighted average common shares outstanding, diluted		15,564		13,185

Net income per share
Basic	$	0.01	$	0.02

Diluted	$	0.01	$	0.02

For the three months ended March 31, 2013, the effect of approximately 201,000 outstanding potential common shares was excluded from the calculation of diluted net income per share because they were anti-dilutive. For the three months ended March 31, 2012, the effect of all outstanding potential common shares was included in the calculation of diluted net income per share.

General (Policies)	3 Months Ended
General (Policies)	Mar. 31, 2013
General [Abstract]
Business Description	Business Description We are a leading provider of on-demand supply chain management solutions, providing prewired, proven integrations and comprehensive retail performance 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 unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, these condensed consolidated financial statements do not include all of the information and notes required by GAAP. We have included all normal recurring adjustments considered necessary to give a fair statement of our financial position, results of operations and cash flows for the interim periods shown. Operating results for these interim periods are not necessarily indicative of the results to be expected for the full year. The December 31, 2012 balance sheet data was derived from our audited financial statements at that date. For further information, refer to the consolidated financial statements and accompanying notes for the year ended December 31, 2012 included in our Annual Report on Form 10-K as filed with the Securities and Exchange Commission on March 6, 2013.
Use of Estimates	Use of Estimates Preparing financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates.
Significant Accounting Policies	Significant Accounting Policies During the three months ended March 31, 2013, there were no material changes in our significant accounting policies. See Note A to the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2012, as filed with the Securities and Exchange Commission on March 6, 2013, for additional information regarding our significant accounting policies.
Recent Accounting Pronouncements	Recent Accounting Pronouncements We have evaluated all recent accounting pronouncements and believe that none of them will have a material effect on our consolidated financial statements.

Intangible Assets, Net (Tables)

3 Months Ended

Mar. 31, 2013

Intangible Assets, Net [Abstract]

Intangible assets

Intangible assets included the following (in thousands):


	March 31, 2013							December 31, 2012
	Carrying		Accumulated					Carrying		Accumulated
	Amount		Amortization			Net		Amount		Amortization			Net
Subscriber relationships	$	23,160	$	(4,482	)	$	18,678	$	23,160	$	(3,850	)	$	19,310
Non-competition agreements		1,710		(865	)		845		1,710		(780	)		930

	$	24,870	$	(5,347	)	$	19,523	$	24,870	$	(4,630	)	$	20,240

Future amortization expense for intangible assets

At March 31, 2013, future amortization expense for intangible assets was as follows (in thousands):


Remainder of 2013	$	2,151
2014		2,688
2015		2,578
2016		2,577
2017		2,557
Thereafter		6,682

	$	19,233

Stock-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2013

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

Stock-based compensation expense

This expense was allocated as follows (in thousands):


	Three Months Ended
	March 31,
	2013		2012
Cost of revenues	$	103	$	98
Operating expenses
Sales and marketing		342		178
Research and development		61		22
General and administrative		418		314

Total stock-based compensation expense	$	924	$	612

Stock option activity

Our stock option activity was as follows:


				Weighted Average
	Options			Exercise Price
	(#)			($/share)
Outstanding at December 31, 2012		1,370,141		$	12.41
Granted		201,006			39.01
Exercised		(175,222	)		5.99
Forfeited		(1,308	)		20.16

Outstanding at March 31, 2013		1,394,617			17.04

Restricted stock units and restricted stock awards

Our restricted stock units and restricted stock awards activity was as follows:


	Units and			Weighted Average
	Awards			Grant Date Fair
	(#)			Value ($/share)
Outstanding at December 31, 2012		73,516		$	26.44
Granted		57,205			39.01
Vested		(13,686	)		25.32
Forfeited		—			—

Outstanding at March 31, 2013		117,035			32.71

Stock Options [Member]

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

Weighted average fair value per share of options granted


Weighted-average volatility	41.1	%
Expected dividend yield	0	%
Expected life (in years)	4.75
Weighted-average risk-free interest rate	0.84	%

Employee Stock Purchase Plan [Member]

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

Weighted average fair value per share of options granted

The fair value was estimated based on the market price of our common stock at the beginning of the offering period, which was $37.27 per share, and using the Black-Scholes option pricing model with the following assumptions:


Expected volatility	41.1	%
Expected dividend yield	0	%
Expected life (in years)	0.50
Risk-free interest rate	0.12	%

- Definition

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

+ References + Details

Net Income Per Share (Tables)

3 Months Ended

Mar. 31, 2013

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):


	Three Months Ended
	March 31,
	2013		2012
Numerator
Net income	$	199	$	256

Denominator
Weighted average common shares outstanding, basic		14,884		12,163
Options to purchase common stock		627		988
Restricted stock units and awards		51		34
Employee stock purchase plan		2		—

Weighted average common shares outstanding, diluted		15,564		13,185

Net income per share
Basic	$	0.01	$	0.02

Diluted	$	0.01	$	0.02

Intangible Assets, Net (Details) - USD ($) $ in Thousands	Mar. 31, 2013	Dec. 31, 2012
Intangible assets
Carrying Amount	$ 24,870	$ 24,870
Accumulated Amortization	(5,347)	(4,630)
Net	19,523	20,240
Subscriber relationships [Member]
Intangible assets
Carrying Amount	23,160	23,160
Accumulated Amortization	(4,482)	(3,850)
Net	18,678	19,310
Non-competition agreements [Member]
Intangible assets
Carrying Amount	1,710	1,710
Accumulated Amortization	(865)	(780)
Net	$ 845	$ 930

Intangible Assets, Net (Details 1) $ in Thousands	Mar. 31, 2013 USD ($)
Future amortization expense for intangible assets
Remainder of 2013	$ 2,151
2014	2,688
2015	2,578
2016	2,577
2017	2,557
Thereafter	6,682
Future amortization expense for intangible assets.	$ 19,233

Intangible Assets, Net (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Intangible Assets, net (Textual) [Abstract]
Amortization of intangible assets	$ 717	$ 260

Line of Credit (Details Textual)	3 Months Ended
Line of Credit (Details Textual)	Mar. 31, 2013 USD ($)
Line of Credit (Textual) [Abstract]
Revolving credit facility, amount	$ 20,000,000
Revolving credit facility, maturity date	Sep. 30, 2016
Borrowings outstanding revolving credit agreement	$ 0

Stock - Based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Stock-based compensation expense
Stock-based compensation expense	$ 924	$ 612
Cost of revenues [Member]
Stock-based compensation expense
Stock-based compensation expense	103	98
Sales and marketing [Member]
Stock-based compensation expense
Stock-based compensation expense	342	178
Research and development [Member]
Stock-based compensation expense
Stock-based compensation expense	61	22
General and administrative [Member]
Stock-based compensation expense
Stock-based compensation expense	$ 418	$ 314

Stock - Based Compensation (Details 1)	3 Months Ended
Stock - Based Compensation (Details 1)	Mar. 31, 2013 $ / shares shares
Stock option activity
Options Outstanding at December 31, 2012 \| shares	1,370,141
Options, Granted \| shares	201,006
Options, Exercised \| shares	(175,222)
Options, Forfeited \| shares	(1,308)
Options Outstanding at March 31, 2013 \| shares	1,394,617
Weighted Average Exercise Price, Outstanding at December 31, 2012 \| $ / shares	$ 12.41
Weighted Average Exercise Price, Granted \| $ / shares	39.01
Weighted Average Exercise Price, Exercised \| $ / shares	5.99
Weighted Average Exercise Price, Forfeited \| $ / shares	20.16
Weighted Average Exercise Price, Outstanding at March 31, 2013 \| $ / shares	$ 17.04

Stock - Based Compensation (Details 2) - Stock Options [Member]	3 Months Ended
	Mar. 31, 2013
Weighted average fair value per share of options granted
Weighted-average volatility	41.10%
Expected dividend yield	0.00%
Expected life (in years)	4 years 9 months
Weighted-average risk-free interest rate	0.84%

Stock - Based Compensation (Details 3) - Restricted Stock Units [Member]	3 Months Ended
	Mar. 31, 2013 $ / shares shares
Restricted Stock Units and Awards
Units and Awards, Outstanding at December 31, 2012 \| shares	73,516
Granted, stock units and awards \| shares	57,205
Vested, stock units and awards \| shares	(13,686)
Forfeited, stock units and awards \| shares
Units and Awards, Outstanding at March 31, 2013 \| shares	117,035
Weighted average grant date fair value, Outstanding at December 31, 2012 \| $ / shares	$ 26.44
Granted, Weighted Average Grant Date Fair Value \| $ / shares	39.01
Vested, Weighted Average Grant Date Fair Value \| $ / shares	25.32
Forfeited, Weighted Average Grant Date Fair Value \| $ / shares
Weighted average grant date fair value, Outstanding at March 31, 2013 \| $ / shares	$ 32.71

Stock - Based Compensation (Details 4) - Employee Stock Purchase Plan [Member]	3 Months Ended
	Mar. 31, 2013
Fair value estimation of common stock using Black-Scholes option pricing model, assumptions
Expected volatility	41.10%
Expected dividend yield	0.00%
Expected life (in years)	6 months
Risk-free interest rate	0.12%

Stock - Based Compensation (Details Textual)	1 Months Ended	3 Months Ended
Stock - Based Compensation (Details Textual)	Jan. 31, 2013 shares	Mar. 31, 2013 USD ($) OfferingPeriods $ / shares shares	Mar. 31, 2012 USD ($)
Stock-Based Compensation (Textual) [Abstract]
Stock-based compensation expense		$ 924,000	$ 612,000
Stock-based compensation (Additional Textual) [Abstract]
Stock-based compensation expense		$ 924,000	$ 612,000
Stock options vest, period		4 years
Stock options contractual term, from the date of grant		seven to ten years
Stock options exercisable \| shares		736,542
Weighted average exercise price \| $ / shares		$ 9.49
Weighted average remaining contractual life		5 years 8 months 12 days
Weighted average fair value per share of options granted \| $ / shares		$ 14.00
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		$ 37.27
Maximum [Member]
Stock-Based Compensation (Textual) [Abstract]
Stock options contractual term Range		10 years
Minimum [Member]
Stock-Based Compensation (Textual) [Abstract]
Stock options contractual term Range		7 years
Equity compensation plan [Member]
Stock-Based Compensation (Textual) [Abstract]
Shares available for grant \| shares		1,800,000
Unrecognized stock-based compensation expense		$ 9,900,000
Unrecognized stock-based compensation, expected to be recognized, weighted average period		3 years 2 months 12 days
Employee Stock Purchase Plan [Member]
Stock-Based Compensation (Textual) [Abstract]
Employee stock purchase plan, employees contribution		$ 271,000
Common stock available for future purchases \| shares		1,200,000
Stock-based compensation expense		$ 93,000
Common stock reserved for future issuance \| shares		1,200,000
Stock-based compensation (Additional Textual) [Abstract]
Stock-based compensation expense		$ 93,000
Equity Incentive Plan 2010 [Member]
Stock-Based Compensation (Textual) [Abstract]
Additional shares were authorized under 2010 Equity Incentive Plan \| shares	888,765
Restricted Stock Units [Member]
Stock-Based Compensation (Textual) [Abstract]
Restricted stock units vest over, period		4 years
Restricted Stock Award [Member]
Stock-Based Compensation (Textual) [Abstract]
Restricted stock awards units vest over, period		1 year

Income Taxes (Details Textual) - USD ($)	3 Months Ended
Income Taxes (Details Textual) - USD ($)	Mar. 31, 2013	Mar. 31, 2012
Income Taxes (Textual) [Abstract]
Income tax benefit (expense)	$ 66,000	$ (153,000)
State deferred tax	117,000
Unrecognized tax benefits	0
Material changes in our unrecognized tax positions over the next 12 months	$ 0

Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Numerator
Net income	$ 199	$ 256
Denominator
Weighted average common shares outstanding, basic	14,884	12,163
Options to purchase common stock	627	988
Restricted stock units and awards	51	34
Employee stock purchase plan	2
Weighted average common shares outstanding, diluted	15,564	13,185
Net income per share
Basic	$ 0.01	$ 0.02
Diluted	$ 0.01	$ 0.02

Net Income Per Share (Details Textual)	3 Months Ended
Net Income Per Share (Details Textual)	Mar. 31, 2013 shares
Net Income Per Share (Textual) [Abstract]
Outstanding potential common shares, anti-dilutive	201,000

- Definition

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

+ References

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

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

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

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

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

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

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

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

+ Details