2019 Q1 Form 10-K Financial Statement

#000132731819000009 Filed on March 01, 2019

View on sec.gov

Income Statement

Concept 2019 Q1 2018 Q1 2017 Q4
Revenue $85.58M $81.06M $83.13M
YoY Change 5.58% 7.0% 12.22%
Cost Of Revenue $8.940M $7.450M $7.620M
YoY Change 20.0% 16.59% 21.73%
Gross Profit $76.65M $73.61M $75.52M
YoY Change 4.13% 6.11% 11.35%
Gross Profit Margin 89.56% 90.81% 90.85%
Selling, General & Admin $69.84M $61.90M $65.51M
YoY Change 12.83% 10.91% 16.44%
% of Gross Profit 91.12% 84.09% 86.75%
Research & Development $15.65M $15.59M $15.95M
YoY Change 0.38% 14.38% 20.2%
% of Gross Profit 20.42% 21.18% 21.12%
Depreciation & Amortization $6.415M $5.169M $4.910M
YoY Change 24.11% -14.97% -10.07%
% of Gross Profit 8.37% 7.02% 6.5%
Operating Expenses $69.84M $61.90M $86.42M
YoY Change 12.83% 10.91% 15.13%
Operating Profit -$15.27M -$9.059M -$10.90M
YoY Change 68.51% 47.11% 50.55%
Interest Expense $0.00 $661.0K -$180.0K
YoY Change -100.0% 1.85% -67.86%
% of Operating Profit
Other Income/Expense, Net
YoY Change
Pretax Income -$14.26M -$9.116M -$11.08M
YoY Change 56.47% 36.59% 42.23%
Income Tax $100.0K -$61.00K $30.00K
% Of Pretax Income
Net Earnings -$14.37M -$9.055M -$8.480M
YoY Change 58.64% 33.26% 6.67%
Net Earnings / Revenue -16.79% -11.17% -10.2%
Basic Earnings Per Share
Diluted Earnings Per Share -$137.1K -$90.09K -$84.68K
COMMON SHARES
Basic Shares Outstanding 104.9M shares 100.6M shares 99.99M shares
Diluted Shares Outstanding

Balance Sheet

Concept 2019 Q1 2018 Q1 2017 Q4
SHORT-TERM ASSETS
Cash & Short-Term Investments $179.9M $195.8M $197.8M
YoY Change -8.12% 71.0% 83.66%
Cash & Equivalents $179.9M $195.8M $197.8M
Short-Term Investments
Other Short-Term Assets $4.291M $4.469M $1.145M
YoY Change -3.98% -50.04% -49.74%
Inventory
Prepaid Expenses $7.084M $5.632M $5.475M
Receivables $38.37M $37.33M $39.17M
Other Receivables $200.0K $0.00 $100.0K
Total Short-Term Assets $233.1M $243.3M $243.6M
YoY Change -4.19% 46.11% 59.28%
LONG-TERM ASSETS
Property, Plant & Equipment $36.05M $71.39M $70.71M
YoY Change -49.5% 4.15% 5.63%
Goodwill $73.31M $53.27M $53.27M
YoY Change 37.62% 0.0% 0.0%
Intangibles $21.90M $14.95M $15.91M
YoY Change 46.52% -20.53% -19.53%
Long-Term Investments $23.17M
YoY Change
Other Assets $7.375M $4.353M $1.391M
YoY Change 69.42% 159.26% -10.43%
Total Long-Term Assets $200.5M $144.1M $141.3M
YoY Change 39.11% 1.27% -0.18%
TOTAL ASSETS
Total Short-Term Assets $233.1M $243.3M $243.6M
Total Long-Term Assets $200.5M $144.1M $141.3M
Total Assets $433.6M $387.4M $384.8M
YoY Change 11.92% 25.45% 30.7%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $20.61M $18.88M $18.62M
YoY Change 9.18% 77.79% 34.66%
Accrued Expenses $8.271M $12.90M $12.79M
YoY Change -35.87% -12.63% 1.65%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $45.83M $34.09M $37.98M
YoY Change 34.44% -20.27% 7.4%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $29.30M $29.10M
YoY Change -100.0% 1.03% 1.04%
Other Long-Term Liabilities $5.639M $4.067M $3.797M
YoY Change 38.65% 69.11% 41.73%
Total Long-Term Liabilities $5.639M $4.067M $3.797M
YoY Change 38.65% 69.11% 41.73%
TOTAL LIABILITIES
Total Short-Term Liabilities $45.83M $34.09M $37.98M
Total Long-Term Liabilities $5.639M $4.067M $3.797M
Total Liabilities $93.73M $68.17M $71.72M
YoY Change 37.49% -11.76% 2.65%
SHAREHOLDERS EQUITY
Retained Earnings -$377.2M -$345.2M -$351.1M
YoY Change 9.27% 6.19% 10.32%
Common Stock $731.4M $673.5M $664.2M
YoY Change 8.6% 21.0% 22.36%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $339.9M $319.3M $313.1M
YoY Change
Total Liabilities & Shareholders Equity $433.6M $387.4M $384.8M
YoY Change 11.92% 25.45% 30.7%

Cashflow Statement

Concept 2019 Q1 2018 Q1 2017 Q4
OPERATING ACTIVITIES
Net Income -$14.37M -$9.055M -$8.480M
YoY Change 58.64% 33.26% 6.67%
Depreciation, Depletion And Amortization $6.415M $5.169M $4.910M
YoY Change 24.11% -14.97% -10.07%
Cash From Operating Activities $7.581M $3.440M $5.210M
YoY Change 120.38% -31.47% -2.98%
INVESTING ACTIVITIES
Capital Expenditures $2.905M $5.332M -$4.620M
YoY Change -45.52% -2.58% 22.55%
Acquisitions
YoY Change
Other Investing Activities -$23.17M
YoY Change
Cash From Investing Activities -$26.08M -$5.330M -$4.620M
YoY Change 389.29% -2.56% 22.55%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities $2.268M -50.00K 770.0K
YoY Change -4636.0% -100.69% -75.48%
NET CHANGE
Cash From Operating Activities $7.581M 3.440M 5.210M
Cash From Investing Activities -$26.08M -5.330M -4.620M
Cash From Financing Activities $2.268M -50.00K 770.0K
Net Change In Cash -$16.23M -1.940M 1.360M
YoY Change 736.6% -128.53% -71.31%
FREE CASH FLOW
Cash From Operating Activities $7.581M $3.440M $5.210M
Capital Expenditures $2.905M $5.332M -$4.620M
Free Cash Flow $4.676M -$1.892M $9.830M
YoY Change -347.15% 317.66% 7.55%

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0 USD
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5923000 USD
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0 USD
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0 USD
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74000 USD
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18000 USD
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67000 USD
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74000 USD
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18000 USD
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581000 USD
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581000 USD
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-2182000 USD
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34000 USD
CY2017 us-gaap Deferred State And Local Income Tax Expense Benefit
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CY2018 us-gaap Deferred State And Local Income Tax Expense Benefit
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8540000 USD
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271000 USD
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656000 USD
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568000 USD
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569000 USD
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11854000 USD
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13227000 USD
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1878000 USD
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1950000 USD
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4274000 USD
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3540000 USD
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3477000 USD
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2100000 USD
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2300000 USD
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2400000 USD
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23345000 USD
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22472000 USD
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218000 USD
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-0.029
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0.032
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0.094
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0.014
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1012000 USD
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1407000 USD
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1890000 USD
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30239000 USD
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2547000 USD
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6191000 USD
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1977000 USD
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1977000 USD
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4572000 USD
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23451000 USD
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0 USD
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0 USD
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0 USD
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0 USD
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655000 USD
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82000 USD
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43000 USD
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4803000 USD
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7543000 USD
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4391000 USD
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3687000 USD
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10039000 USD
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1531000 USD
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1152000 USD
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846000 USD
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613000 USD
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1644000 USD
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1501000 USD
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1118000 USD
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23000 USD
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1964000 USD
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1260000 USD
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70700000 USD
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71000000 USD
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75900000 USD
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90041000 USD
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9221000 USD
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87732000 USD
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16723000 USD
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2768000 USD
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22118000 USD
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24833000 USD
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1
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7400000 USD
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4800000 USD
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4900000 USD
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7228000 USD
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-41708000 USD
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-32849000 USD
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3797000 USD
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9290000 USD
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1312000 USD
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3209000 USD
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0
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3034000 USD
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0 USD
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0 USD
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26891000 USD
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0.0001
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16639000 USD
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19809000 USD
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17099000 USD
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0.0001
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20000000 shares
CY2018Q4 us-gaap Preferred Stock Shares Authorized
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20000000 shares
CY2017Q4 us-gaap Preferred Stock Shares Issued
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0 shares
CY2018Q4 us-gaap Preferred Stock Shares Issued
PreferredStockSharesIssued
0 shares
CY2017Q4 us-gaap Preferred Stock Shares Outstanding
PreferredStockSharesOutstanding
0 shares
CY2018Q4 us-gaap Preferred Stock Shares Outstanding
PreferredStockSharesOutstanding
0 shares
CY2017Q4 us-gaap Preferred Stock Value
PreferredStockValue
0 USD
CY2018Q4 us-gaap Preferred Stock Value
PreferredStockValue
0 USD
CY2017Q4 us-gaap Prepaid Advertising
PrepaidAdvertising
400000 USD
CY2018Q4 us-gaap Prepaid Advertising
PrepaidAdvertising
1300000 USD
CY2017Q4 us-gaap Prepaid Expense Current
PrepaidExpenseCurrent
5475000 USD
CY2018Q4 us-gaap Prepaid Expense Current
PrepaidExpenseCurrent
7468000 USD
CY2016 us-gaap Proceeds From Issuance Of Common Stock
ProceedsFromIssuanceOfCommonStock
0 USD
CY2017 us-gaap Proceeds From Issuance Of Common Stock
ProceedsFromIssuanceOfCommonStock
17398000 USD
CY2018 us-gaap Proceeds From Issuance Of Common Stock
ProceedsFromIssuanceOfCommonStock
0 USD
CY2016 us-gaap Proceeds From Stock Options Exercised
ProceedsFromStockOptionsExercised
9112000 USD
CY2017 us-gaap Proceeds From Stock Options Exercised
ProceedsFromStockOptionsExercised
73543000 USD
CY2018 us-gaap Proceeds From Stock Options Exercised
ProceedsFromStockOptionsExercised
19757000 USD
CY2017Q4 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
135991000 USD
CY2018Q4 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
143196000 USD
CY2017Q4 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
70710000 USD
CY2018Q4 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
61511000 USD
CY2016 us-gaap Provision For Doubtful Accounts
ProvisionForDoubtfulAccounts
1285000 USD
CY2017 us-gaap Provision For Doubtful Accounts
ProvisionForDoubtfulAccounts
1385000 USD
CY2018 us-gaap Provision For Doubtful Accounts
ProvisionForDoubtfulAccounts
1688000 USD
CY2018Q4 us-gaap Purchase Obligation
PurchaseObligation
7817000 USD
CY2018Q4 us-gaap Purchase Obligation Due After Fifth Year
PurchaseObligationDueAfterFifthYear
0 USD
CY2018Q4 us-gaap Purchase Obligation Due In Fourth And Fifth Year
PurchaseObligationDueInFourthAndFifthYear
5000 USD
CY2018Q4 us-gaap Purchase Obligation Due In Next Twelve Months
PurchaseObligationDueInNextTwelveMonths
5558000 USD
CY2018Q4 us-gaap Purchase Obligation Due In Second And Third Year
PurchaseObligationDueInSecondAndThirdYear
2254000 USD
CY2017Q4 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
-351084000 USD
CY2018Q4 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
-373482000 USD
CY2016 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
277507000 USD
CY2017 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
323149000 USD
CY2018 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
353571000 USD
CY2016 us-gaap Selling And Marketing Expense
SellingAndMarketingExpense
154406000 USD
CY2017 us-gaap Selling And Marketing Expense
SellingAndMarketingExpense
185397000 USD
CY2018 us-gaap Selling And Marketing Expense
SellingAndMarketingExpense
213415000 USD
CY2016 us-gaap Severance Costs1
SeveranceCosts1
1800000 USD
CY2016 us-gaap Share Based Compensation
ShareBasedCompensation
24739000 USD
CY2016 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Volatility Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate
0.49
CY2017 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Volatility Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate
0.47
CY2018 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Volatility Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate
0.46
CY2016 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Risk Free Interest Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate
0.0132
CY2017 us-gaap Share Based Compensation
ShareBasedCompensation
32241000 USD
CY2018 us-gaap Share Based Compensation
ShareBasedCompensation
37219000 USD
CY2018Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Nonvested Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber
5375963 shares
CY2016 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Dividend Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate
0
CY2017 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Dividend Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate
0
CY2017 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Risk Free Interest Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate
0.0189
CY2018 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Risk Free Interest Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate
0.0285
CY2017Q4 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
-3000 USD
CY2018Q4 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
-3000 USD
CY2016 us-gaap Unrecognized Tax Benefits Decreases Resulting From Prior Period Tax Positions
UnrecognizedTaxBenefitsDecreasesResultingFromPriorPeriodTaxPositions
0 USD
CY2017 us-gaap Unrecognized Tax Benefits Decreases Resulting From Prior Period Tax Positions
UnrecognizedTaxBenefitsDecreasesResultingFromPriorPeriodTaxPositions
0 USD
CY2018 us-gaap Unrecognized Tax Benefits Decreases Resulting From Prior Period Tax Positions
UnrecognizedTaxBenefitsDecreasesResultingFromPriorPeriodTaxPositions
0 USD
CY2018Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Number Of Shares Available For Grant
ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesAvailableForGrant
4944880 shares
CY2018Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber
14114651 shares
CY2016 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Compensation Cost1
SharebasedCompensationArrangementBySharebasedPaymentAwardCompensationCost1
25751000 USD
CY2017 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Compensation Cost1
SharebasedCompensationArrangementBySharebasedPaymentAwardCompensationCost1
33648000 USD
CY2018 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Compensation Cost1
SharebasedCompensationArrangementBySharebasedPaymentAwardCompensationCost1
39109000 USD
CY2016 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Fair Value Assumptions Expected Term1
SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1
P5Y11M16D
CY2017 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Fair Value Assumptions Expected Term1
SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1
P6Y3M0D
CY2018 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Fair Value Assumptions Expected Term1
SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1
P5Y11M9D
CY2017 us-gaap Stock Issued During Period Value New Issues
StockIssuedDuringPeriodValueNewIssues
17398000 USD
CY2016 us-gaap Stock Issued During Period Value Share Based Compensation
StockIssuedDuringPeriodValueShareBasedCompensation
7800000 USD
CY2017 us-gaap Stock Issued During Period Value Share Based Compensation
StockIssuedDuringPeriodValueShareBasedCompensation
70340000 USD
CY2018 us-gaap Stock Issued During Period Value Share Based Compensation
StockIssuedDuringPeriodValueShareBasedCompensation
16724000 USD
CY2015Q4 us-gaap Stockholders Equity
StockholdersEquity
232692000 USD
CY2016Q4 us-gaap Stockholders Equity
StockholdersEquity
224581000 USD
CY2017Q4 us-gaap Stockholders Equity
StockholdersEquity
313118000 USD
CY2018Q4 us-gaap Stockholders Equity
StockholdersEquity
346553000 USD
CY2015Q4 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
3000 USD
CY2016Q4 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
3000 USD
CY2016 us-gaap Unrecognized Tax Benefits Decreases Resulting From Settlements With Taxing Authorities
UnrecognizedTaxBenefitsDecreasesResultingFromSettlementsWithTaxingAuthorities
0 USD
CY2017 us-gaap Unrecognized Tax Benefits Decreases Resulting From Settlements With Taxing Authorities
UnrecognizedTaxBenefitsDecreasesResultingFromSettlementsWithTaxingAuthorities
7000 USD
CY2018 us-gaap Unrecognized Tax Benefits Decreases Resulting From Settlements With Taxing Authorities
UnrecognizedTaxBenefitsDecreasesResultingFromSettlementsWithTaxingAuthorities
0 USD
CY2016 us-gaap Unrecognized Tax Benefits Increases Resulting From Current Period Tax Positions
UnrecognizedTaxBenefitsIncreasesResultingFromCurrentPeriodTaxPositions
0 USD
CY2017 us-gaap Unrecognized Tax Benefits Increases Resulting From Current Period Tax Positions
UnrecognizedTaxBenefitsIncreasesResultingFromCurrentPeriodTaxPositions
0 USD
CY2018 us-gaap Unrecognized Tax Benefits Increases Resulting From Current Period Tax Positions
UnrecognizedTaxBenefitsIncreasesResultingFromCurrentPeriodTaxPositions
0 USD
CY2016 us-gaap Unrecognized Tax Benefits Increases Resulting From Prior Period Tax Positions
UnrecognizedTaxBenefitsIncreasesResultingFromPriorPeriodTaxPositions
0 USD
CY2017 us-gaap Unrecognized Tax Benefits Increases Resulting From Prior Period Tax Positions
UnrecognizedTaxBenefitsIncreasesResultingFromPriorPeriodTaxPositions
1000 USD
CY2018 us-gaap Unrecognized Tax Benefits Increases Resulting From Prior Period Tax Positions
UnrecognizedTaxBenefitsIncreasesResultingFromPriorPeriodTaxPositions
0 USD
CY2016 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
84483000 shares
CY2017 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
94865000 shares
CY2018 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
102149000 shares
CY2018 us-gaap Concentration Risk Credit Risk
ConcentrationRiskCreditRisk
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:16px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Concentrations of Credit and Business Risk</font></div><div style="line-height:120%;padding-bottom:16px;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Financial instruments that potentially subject the Company to credit risk consist principally of cash and cash equivalents and accounts receivable.&#160;</font></div><div style="line-height:120%;padding-bottom:16px;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company, at times, maintains cash balances at financial institutions in excess of amounts insured by United States government agencies or payable by the United States government directly. The Company places its cash and cash equivalents with high credit quality financial institutions.</font></div><div style="line-height:120%;padding-bottom:16px;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Credit is extended to customers based on an evaluation of their financial condition and other factors. The Company generally does not require collateral or other security to support accounts receivable. The Company performs ongoing credit evaluations of its customers and maintains an allowance for doubtful accounts based on these evaluations. No single customer comprised more than 10% of the Company&#8217;s total revenues for the years ended </font><font style="font-family:inherit;font-size:10pt;">December&#160;31, 2018</font><font style="font-family:inherit;font-size:10pt;">, </font><font style="font-family:inherit;font-size:10pt;">2017</font><font style="font-family:inherit;font-size:10pt;">, and </font><font style="font-family:inherit;font-size:10pt;">2016</font><font style="font-family:inherit;font-size:10pt;">. No single customer comprised more than 10% of the Company&#8217;s accounts receivable balance at </font><font style="font-family:inherit;font-size:10pt;">December&#160;31, 2018</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">2017</font><font style="font-family:inherit;font-size:10pt;">. </font></div><div style="line-height:120%;padding-bottom:16px;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company&#8217;s single largest source of unique visitors and unit sales from affinity group marketing partners comes from its relationship with United Services Automobile Association (&#8220;USAA&#8221;), a related party (Note&#160;14). Changes in the Company&#8217;s relationship with USAA and its promotion and marketing of the Company&#8217;s Auto Buying Programs may have a material adverse effect on the Company&#8217;s business, financial condition, results of operations, and cash flows.</font></div><div style="line-height:120%;padding-bottom:16px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;"></font></div></div>
CY2018 us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:16px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Use of Estimates</font></div><div style="line-height:120%;padding-bottom:16px;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the dates of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Assets and liabilities that are subject to judgment and use of estimates include sales allowances and allowances for doubtful accounts, contract assets, the fair value of a warrant asset and the related liability, the fair value of assets and liabilities assumed in business combinations, the fair value of the capitalized facility leases, the recoverability of goodwill and long-lived assets, valuation allowances with respect to deferred tax assets, useful lives associated with property and equipment and intangible assets, lease exit liabilities, contingencies, and the valuation and assumptions underlying stock-based compensation and other equity instruments. On an ongoing basis, the Company evaluates its estimates compared to historical experience and trends, which form the basis for making judgments about the carrying value of assets and liabilities. In addition, the Company engaged valuation specialists to assist with management&#8217;s determination of the valuation of its capitalized facility leases, the fair values of assets and liabilities assumed in business combinations, the fair value of the warrant asset and related liability, and in periods prior to the Company&#8217;s initial public offering, valuation of common stock.</font></div><div style="line-height:120%;padding-bottom:16px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;"></font></div></div>

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