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Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Mar. 31, 2019	Apr. 25, 2019
Document And Entity Information [Abstract]
Document Fiscal Period Focus	Q1
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2019
Document Fiscal Year Focus	2019
Trading Symbol	LPSN
Entity Registrant Name	LIVEPERSON INC
Entity Central Index Key	0001102993
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		64,845,886

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
CURRENT ASSETS:
Cash and cash equivalents	$ 237,787	$ 66,449
Accounts receivable, net of allowance for doubtful accounts of $2,728 and $2,276 as of March 31, 2019 and December 31, 2018, respectively	51,285	46,023
Prepaid expenses and other current assets	29,290	22,613
Total current assets	318,362	135,085
Operating lease right of use asset	14,817
Property and equipment, net	48,432	43,735
Intangibles, net	13,077	13,832
Goodwill	94,987	95,031
Deferred tax assets	714	713
Other assets	1,822	1,707
Total assets	492,211	290,103
CURRENT LIABILITIES:
Accounts payable	7,331	8,174
Accrued expenses and other current liabilities	35,897	50,662
Deferred revenue	66,210	55,015
Operating lease liability	6,227
Total current liabilities	115,665	113,851
Deferred revenue	177	222
Convertible senior note, net	171,294	0
Other liabilities	320	4,205
Operating lease liability	12,566
Deferred tax liability	1,150	1,096
Total liabilities	301,172	119,374
Commitments and contingencies
STOCKHOLDERS’ EQUITY:
Common stock	65	64
Additional paid-in capital	401,996	362,590
Treasury stock	(3)	(3)
Accumulated deficit	(206,381)	(187,491)
Accumulated other comprehensive loss	(4,638)	(4,431)
Total stockholders’ equity	191,039	170,729
Total liabilities and stockholders’ equity	$ 492,211	$ 290,103

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts	$ 2,728	$ 2,276

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Revenue	$ 66,402	$ 58,241
Costs and expenses
Cost of revenue	18,649	13,954
Sales and marketing	33,036	24,131
General and administrative	14,167	10,123
Product development	18,173	13,252
Restructuring costs	279	178
Amortization of purchased intangibles	461	424
Total costs and expenses	84,765	62,062
Loss from operations	(18,363)	(3,821)
Other income , net	66	129
Loss before provision for (benefit from) income taxes	(18,297)	(3,692)
Provision for (benefit from) income taxes	593	(489)
Net loss	$ (18,890)	$ (3,203)
Net loss per share of common stock:
Basic net loss per common share (in dollars per share)	$ (0.31)	$ (0.06)
Diluted net loss per common share (in dollars per share)	$ (0.31)	$ (0.06)
Weighted-average shares used to compute net loss per share:
Weighted average shares outstanding used in basic net loss per common share calculation (in shares)	61,422,227	57,309,707
Weighted average shares outstanding used in diluted net loss per common share calculation (in shares)	61,422,227	57,309,707
Cost of revenue
Additional Information on Operating Expenses
Stock-based compensation expense	$ 620	$ 154
Depreciation expense	2,027	1,916
Amortization of purchased intangibles	285	287
Sales and marketing
Additional Information on Operating Expenses
Stock-based compensation expense	1,599	886
Depreciation expense	357	356
General and administrative
Additional Information on Operating Expenses
Stock-based compensation expense	2,566	840
Depreciation expense	231	246
Product development
Additional Information on Operating Expenses
Stock-based compensation expense	2,381	558
Depreciation expense	$ 1,266	$ 840

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Statement of Comprehensive Income [Abstract]
Net loss	$ (18,890)	$ (3,203)
Foreign currency translation adjustment	207	(559)
Comprehensive loss	$ (18,683)	$ (3,762)

CONDESNSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY (unaudited) - USD ($) $ in Thousands	Total	Common Stock	Treasury Stock	Additional Paid-in Capital	Accumulated Deficit	Accumulated Other Comprehensive Loss
Beginning balance at Dec. 31, 2017	$ 140,063	$ 60	$ (3)	$ 305,676	$ (163,135)	$ (2,535)
Beginning balance (in shares) at Dec. 31, 2017		59,663,969	(2,587,535)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock issued upon exercise of stock options	5,440	$ 0		5,440
Common stock issued upon exercise of stock options (in shares)		644,830
Common stock issued upon vesting of restricted stock units	0
Common stock issued upon vesting of restricted stock units (in shares)		103,339
Stock-based compensation	2,437			2,437
Common stock issued under Employee Stock Purchase Plan	490			490
Common stock issued under Employee Stock Purchase Plan (in shares)		39,888
Common stock repurchase	(1,345)			(1,345)
Common stock repurchase (in shares)			(93,750)
Issuance of common stock in connection with acquisitions	1,000			1,000
ASC 606 prior period adjustment (see note 1)	676				676
Issuance of common stock in connection with acquisitions (in shares)		85,681
Net loss	(3,203)				(3,203)
Other comprehensive income	559					559
Ending balance at Mar. 31, 2018	146,117	$ 60	$ (3)	313,698	(165,662)	(1,976)
Ending balance (in shares) at Mar. 31, 2018		60,537,707	(2,681,285)
Beginning balance at Dec. 31, 2018	170,729	$ 64	$ (3)	362,590	(187,491)	(4,431)
Beginning balance (in shares) at Dec. 31, 2018		63,676,229	(2,681,285)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock issued upon exercise of stock options	$ 6,477	$ 1		6,476
Common stock issued upon exercise of stock options (in shares)	626,000	626,478
Common stock issued upon vesting of restricted stock units	$ 0
Common stock issued upon vesting of restricted stock units (in shares)		414,742
Stock-based compensation	5,188			5,188
Common stock issued under Employee Stock Purchase Plan	721			721
Common stock issued under Employee Stock Purchase Plan (in shares)		30,349
Common stock repurchase	(709)			(709)
Common stock repurchase (in shares)			(23,421)
Issuance of debt conversion option	52,900			52,900
Debt conversion option issuance costs	(1,986)			(1,986)
Capped call option issuance costs	(23,184)			(23,184)
Net loss	(18,890)				(18,890)
Other comprehensive income	(207)					(207)
Ending balance at Mar. 31, 2019	$ 191,039	$ 65	$ (3)	$ 401,996	$ (206,381)	$ (4,638)
Ending balance (in shares) at Mar. 31, 2019		64,747,798	(2,704,706)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
OPERATING ACTIVITIES:
Net loss	$ (18,890)	$ (3,203)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation expense	7,166	2,438
Depreciation	3,881	3,358
Amortization of purchased intangibles	746	711
Amortization of debt issuance costs	116	0
Accretion of debt discount on convertible senior notes	727	0
Amortization of tenant allowance	(129)	(42)
Deferred income taxes	52	16
Provision for doubtful accounts	502	496
Changes in operating assets and liabilities:
Accounts receivable	(5,763)	(8,467)
Prepaid expenses and other current assets	(6,677)	(5,841)
Other assets	(115)	(21)
Accounts payable	(744)	(172)
Accrued expenses and other current liabilities	(17,932)	(9,782)
Deferred revenue	11,150	19,921
Other liabilities	219	(89)
Net cash used in operating activities	(25,691)	(677)
INVESTING ACTIVITIES:
Purchases of property and equipment, including capitalized software	(8,335)	(4,595)
Cash held as collateral for foreign exchange forward contracts	0	1,235
Payments for acquisitions and intangible assets, net of cash acquired	(2)	(263)
Net cash used in investing activities	(8,337)	(3,623)
FINANCING ACTIVITIES:
Proceeds from issuance of convertible senior notes	230,000	0
Payment of debt issuance costs	(7,329)	0
Purchase of capped call	(23,184)	0
Payments related to contingent consideration	(487)	0
Proceeds from issuance of common stock in connection with the exercise of options	7,198	5,949
Repurchase of common stock	(709)	(1,345)
Net cash provided by financing activities	205,489	4,604
EFFECT OF FOREIGN EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	(123)	1,061
CHANGE IN CASH AND CASH EQUIVALENTS	171,338	1,365
CASH AND CASH EQUIVALENTS - Beginning of the period	66,449	56,115
CASH AND CASH EQUIVALENTS - End of the period	237,787	57,480
SUPPLEMENTAL DISCLOSURE OF OTHER CASH FLOW INFORMATION:
Cash paid for income taxes	338	553
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Purchase of property and equipment recorded in accounts payable	198	292
Debt offering costs, accrued but not paid	1,306	0
BotCentral
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Issuance of 85,861 shares of common stock in connection with the BotCentral transaction on January 24, 2018	$ 0	$ 1,000
Issuance of 85,861 shares of common stock in connection with the BotCentral transaction on January 24, 2018 (in shares)	0	85,861

Description of Business and Basis of Presentation	3 Months Ended
Description of Business and Basis of Presentation	Mar. 31, 2019
Accounting Policies [Abstract]
Description of Business and Basis of Presentation	Description of Business and Basis of Presentation LivePerson, Inc. (the “Company” or “LivePerson”) was incorporated in the State of Delaware in November 1995 and the LivePerson service was introduced in November 1998. In April 2000, the Company completed an initial public offering and is currently traded on the NASDAQ Global Select Market and the Tel Aviv Stock Exchange. LivePerson is headquartered in New York City with U.S. offices in Alpharetta (Georgia), Austin (Texas), Mountain View (California) and Seattle (Washington), and international offices in Amsterdam (Netherlands), Berlin (Germany), London (United Kingdom), Mannheim (Germany), Melbourne (Australia), Milan (Italy), Paris (France), Ra'anana (Israel), Reading (United Kingdom), Sydney (Australia), Tel Aviv (Israel), and Tokyo (Japan). LivePerson makes life easier by transforming how people communicate with brands. During the past decade, the consumer has made the mobile device the center of their digital lives, and they have made mobile messaging the center of communication with friends, family and peers. The Company’s technology enables consumers to connect with businesses through these same preferred conversational interfaces, including Facebook Messenger, WhatsApp, Apple Business Chat, Google Rich Business Messenger and Alexa. These messaging conversations harness human agents, bots and Artificial Intelligence (AI) to power convenient, personalized and content-rich journeys across the entire consumer lifecycle, from discovery and research, to sales, service and support, and even marketing and brick and mortar engagements. For example, consumers can look up product info like ratings, images and pricing, search for stores, see products in the store, schedule appointments, apply for credit, approve repairs, make purchases or payments - all without ever leaving the messaging channel. LivePerson calls these AI and human-assisted conversational experiences over messaging Conversational Commerce. LiveEngage, the Company’s enterprise-class, cloud-based platform, was designed for Conversational Commerce, enabling businesses to securely deploy messaging, coupled with bots and AI, at scale for brands with tens of millions of customers and many thousands of customer care agents. LiveEngage powers conversations across each of a brand’s primary digital channels, including mobile apps, mobile and desktop web browsers, short message service (SMS), social media and third-party consumer messaging platforms. Brands can also use LiveEngage to message consumers when they dial a 1-800 number instead of having them navigate interactive voice response systems (IVRs) and wait on hold. The robust, cloud-based suite of rich mobile messaging and real-time chat offerings features intelligent routing and capacity mapping, queue prioritization, customer sentiment, real-time analytics and reporting, content delivery, Payment Card Industry (PCI) compliance, cobrowsing and a sophisticated proactive targeting engine. With LiveEngage, agents can manage all conversations with consumers through a single console interface, regardless of which disparate messaging endpoints the consumers originate from: i.e., WhatsApp, Line, Apple Business Chat, IVR, or Google Home. An extensible application programming interface (API) stack facilitates a lower cost of ownership by facilitating robust integration into back-end systems, as well as enabling developers to build their own programs and services on top of the platform. More than three dozen APIs are available on LiveEngage. LiveEngage also features Maven, a robust AI engine that was custom designed for Conversational Commerce. Maven, announced in December 2018, puts the power of bot development, training and management into the hands of the contact center and its agents, the teams most familiar with how to structure sales and service conversations to drive successful outcomes. The platform enables what the Company calls “the tango” of humans, AI and bots, whereby human agents act as bot managers, overseeing AI-powered conversations and seamlessly stepping into the flow when a personal touch is needed. Through Maven Assist, agents become ultra-efficient, leveraging the AI engine to serve up relevant content, define next-best actions and take over repetitive transactional work, so that the agent can focus on relationship building. By seamlessly integrating LiveEngage with Maven, as well as third-party bots, the platform provides businesses with a comprehensive view of all AI-based and human-based conversations from a single console. Complementing LiveEngage are teams of technical, solutions and consulting professionals that have developed deep domain expertise in Conversational Commerce across industries and messaging endpoints. The Company is positioned as an authority in Conversational Commerce, publishing a proprietary Conversational Quotient™ Index that measures each customer across multiple key indicators to ascertain their level of conversational maturity. Each business is then benchmarked against industry peers to determine their relative progression. The Company has developed a Transformation Model that is introduced to existing and prospective customers to help guide them on their journeys from legacy and oftentimes inefficient legacy voice, email and chat solutions to modern conversational ones powered by messaging and AI. LivePerson’s products, coupled with our domain knowledge, industry expertise and professional services, have been proven to maximize the effectiveness of Conversational Commerce and deliver measurable return on investment. As a “cloud computing” or software-as-a-service (SaaS) provider, LivePerson provides solutions on a hosted basis. This model offers significant benefits over premise-based software, including lower up-front costs, faster implementation, lower total cost of ownership, scalability, cost predictability, and simplified upgrades. Organizations that adopt a fully-hosted, multi-tenant architecture that is maintained by LivePerson eliminate the majority of the time, server infrastructure costs, and IT resources required to implement, maintain, and support traditional on-premise software. The Company's consumer services offering is an online marketplace that connects independent service providers (Experts) who provide information and knowledge for a fee via mobile and online messaging with individual consumers (Users). Users seek assistance and advice in various categories including personal counseling and coaching, computers and programming, education and tutoring, spirituality and religion, and other topics. Basis of Presentation The accompanying condensed consolidated financial statements as of March 31, 2019 and for the three months ended March 31, 2019 and 2018 are unaudited. In the opinion of management, the unaudited condensed consolidated financial statements have been prepared on the same basis as the annual financial statements and reflect all adjustments, which include only normal recurring adjustments, necessary to present fairly the consolidated financial position of LivePerson as of March 31, 2019, and the consolidated results of operations, comprehensive loss and cash flows for the interim periods ended March 31, 2019 and 2018. The financial data and other information disclosed in these notes to the condensed consolidated financial statements related to these periods are unaudited. The results of operations for any interim period are not necessarily indicative of the results of operations for any other future interim period or for a full fiscal year. The condensed consolidated balance sheet at December 31, 2018 has been derived from audited consolidated financial statements at that date. Certain information and note disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). These unaudited interim condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto for the year ended December 31, 2018 included in the Company’s Annual Report on Form 10-K filed with the SEC on February 25, 2019. Principles of Consolidation The condensed consolidated financial statements include the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated. Use of Estimates The preparation of the Company’s condensed consolidated 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 condensed consolidated financial statements and the reported amounts of income and expenses during the reporting period. These estimates are based on information available as of the date of the condensed consolidated financial statements; therefore, actual results could differ from management’s estimates. Recently Issued Accounting Standards In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") No. 2018-15 "Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract; Disclosures for Implementation Costs Incurred for Internal-Use Software and Cloud Computing Arrangements" (“ASU 2018-15”). This standard aligns the accounting for implementation costs incurred in a hosting arrangement that is a service contract with the accounting for implementation costs incurred to develop or obtain internal-use software under Accounting Standards Codification ("ASC") 350-40, in order to determine which costs to capitalize and recognize as an asset. ASU 2018-15 is effective for annual reporting periods, and interim periods within those years, beginning after December 15, 2019, and can be applied either prospectively to implementation costs incurred after the date of adoption or retrospectively to all arrangements. The Company is currently in the process of evaluating the impact of the adoption of ASU 2018-230 on its consolidated financial statements. In January 2017, FASB issued ASU No. 2017-04, "Intangibles -Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment" (“ASU 2017-04”). This update addresses concerns over the cost and complexity of the two-step goodwill impairment test. The amendments in this update remove the second step of the test. An entity will apply a one-step quantitative test and record the amount of goodwill impairment as the excess of a reporting unit's carrying amount over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. The new guidance does not amend the optional qualitative assessment of goodwill impairment. ASU 2017-04 is effective for financial statements issued for annual periods beginning after December 15, 2019, and interim periods within those annual periods. The Company does not expect the adoption of ASU 2017-04 will have a material effect on its financial position, results of operations or cash flows. Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, “Leases” (“ASU 2016-02”). ASU 2016-02 requires lessees to recognize the following for all leases (with the exception of short-term leases) at the commencement date: a lease liability, which is a lessee‘s obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) may apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. The Company adopted ASU No. 2016-02-Leases (Topic 842), as of January 1, 2019 using the modified transition approach. The modified transition approach provides a method for recording existing leases at adoption. As a result, the Company was not required to adjust its comparative period financial information for effects of the standard or make the new required lease disclosures for periods before the date of adoption (i.e. January 1, 2019). For its long-term operating lease, the Company recognized a right-of-use asset and a lease liability on its balance sheet. The lease liability is determined as the present value of future lease payments using an estimated rate of interest that the Company would have to pay to borrow equivalent funds on a collateralized basis at the lease commencement date. The right-of-use asset is based on the liability adjusted for any prepaid or deferred rent. The lease term at the commencement date is determined by considering whether renewal options and termination options are reasonably assured of exercise. Rent expense for the operating lease is recognized on a straight-line basis over the lease term and is included in operating expenses on the statements of operations. Variable lease payments include lease operating expenses. Adoption of the new standard resulted in the recording of additional net lease assets and lease liabilities of approximately $14.8 million and $18.8 million, respectively, as of March 31, 2019. The standard did not materially impact the Company's consolidated net earnings and had no impact on cash flows.

Revenue Recognition

3 Months Ended

Mar. 31, 2019

Revenue from Contract with Customer [Abstract]

Revenue Recognition

The majority of the Company’s revenue is generated from monthly service revenues and related professional services from the sale of the LivePerson services. Revenues are recognized when control of these services is transferred to the Company's customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those services.

The Company determines revenue recognition through the following steps:

•Identification of the contract, or contracts, with a customer;

•Identification of the performance obligations in the contract;

•Determination of the transaction price;

•Allocation of the transaction price to the performance obligations in the contract; and

•Recognition of revenue when, or as, the Company satisfies a performance obligation.

Total revenue of $66.4 million and $58.2 million recognized during the three months ended March 31, 2019 and 2018, respectively, under Topic 606, was not materially different from what would have been recognized under Topic 605.

Hosted Services- Business Revenue

Hosted Services Business revenue is reported at the amount that reflects the ultimate consideration expected to be received and primarily consist of fees that provide customers access to LiveEngage, the Company’s enterprise-class, cloud-based platform. The Company has determined such access represents a stand-ready service provided continually throughout the contract term. As such, control and satisfaction of this stand-ready performance obligation is deemed to occur over time. The Company recognizes this revenue over time on a ratable basis over the contract term, beginning on the date that access to the LiveEngage platform is made available to the customer. The passage of time is deemed to be the most faithful depiction of the transfer of control of the services as the customer simultaneously receives and consumes the benefit provided by the Company’s performance. Subscription contracts are generally one year or longer in length, billed, monthly, quarterly or annually in advance. There is no significant variable consideration related to these arrangements. Additionally, for certain of the Company's larger customers, the Company may provide call center labor through an arrangement with one or more of several qualified vendors. For most of these customers, the Company passes the fee it incurs with the labor provider and its fee for the hosted services through to its customers in the form of a fixed fee for each order placed via the Company's online engagement solutions. For these Gainshare (formerly Pay for Performance) arrangements in accordance with ASC-606, "Principal Agent Considerations", the Company acts as a principal in a transaction if it controls the specified goods or services before they are transferred to the customer.

Professional Services Revenues

Professional services revenue primarily consists of fees for deployment and optimization services, as well as training delivered on an on-demand basis which is deemed to represent a distinct stand-ready performance obligation. Professional Services Revenues are reported at the amount that reflects the ultimate consideration the Company expects to receive in exchange for such services. Control for the majority of the Company's Professional Services contracts passes over time to the customer and is recognized ratably over the contracted period, as the passage of time is deemed to be the most faithful depiction of the transfer of control. For certain deployment services, which are not deemed to represent a distinct performance obligation, revenue will be recognized in the same manner as the fee for access to the LiveEngage platform, and as such will be recognized on a straight-line basis over the contract term. For services billed on a fixed price basis, revenue is recognized over time based on the proportion performed using inputs as the measure of progress toward complete satisfaction of the performance obligation. Professional service contracts are generally one year or longer in length, billed, monthly, quarterly or annually in advance. There is no significant variable consideration related to these arrangements.

Contracts with Multiple Performance Obligations

Some of the Company's contracts with customers contain multiple performance obligations. For these contracts, the Company accounts for individual performance obligations separately if they are distinct. The transaction price is allocated to the separate performance obligations on a relative standalone selling price basis. The Company determines the standalone selling prices based on its overall pricing objectives, taking into consideration market conditions and other factors, including the value of its contracts, the cloud applications sold, and the number and types of users within its contracts.

Hosted Services- Consumer Revenue

For revenue from the Company's Consumer segment generated from online transactions between Experts and Users, revenue is recognized at an amount net of Expert fees in accordance with ASC 606, “Principal Agent Considerations,” due primarily to the fact that the Expert is the primary obligor. Additionally, the Company performs as an agent without any risk of loss for collection, and is not involved in selecting the Expert or establishing the Expert’s fee. The Company collects a fee from the consumer and retains a portion of the fee, and then remits the balance to the Expert. Revenue from these transactions is recognized at the point in time when the transaction is complete and no significant performance obligations remain.

Deferred Revenues

The Company records deferred revenues when cash payments are received or due in advance of its performance. The increase in the deferred revenue balance for the three months ended March 31, 2019 is primarily driven by cash payments received or due in advance of satisfying its performance obligations, partially offset by $16.9 million of revenues recognized that were included in the deferred revenue balance as of December 31, 2018.

The following table presents deferred revenue by revenue source (amounts in thousands):



	Deferred Revenue
	As of March 31, 2019		December 31, 2018
Hosted services – Business	$	61,463	$	52,232
Professional services – Business	4,747		2,783
Total deferred revenue - short term	$	66,210	$	55,015

Hosted services – Business	$	4	$	19
Professional services – Business	173		203
Total deferred revenue - long term	$	177	$	222

Disaggregated Revenue

The following table presents the Company's revenues disaggregated by revenue source (amounts in thousands):



	Three Months Ended
	March 31,
	2019		2018		(1)
Revenue:
Hosted services – Business	$	51,537	$	47,427
Hosted services – Consumer	5,407		4,680
Professional services	9,458		6,134
Total revenue	$	66,402	$	58,241
⁽¹⁾As noted above, prior period amounts have not been adjusted under the modified retrospective method.

Revenue by Geographic Location

The following table presents the Company’s revenues attributable to domestic and foreign operations for the periods presented (amounts in thousands):



	Three Months Ended
	March 31,
	2019		2018
United States	$	38,589	$	34,071
Other Americas ⁽¹⁾	2,769		1,259
Total Americas	41,358		35,330
EMEA ^{(2) (4)}	18,113		16,919
APAC ⁽³⁾	6,931		5,992
Total revenue	$	66,402	$	58,241

⁽¹⁾ Canada, Latin America and South America

⁽²⁾ Europe, the Middle East and Africa (“EMEA”)

⁽³⁾ Asia-Pacific (“APAC”)

⁽⁴⁾ Includes revenues from the United Kingdom of $11.7 million for the three months ended March 31, 2019 and 2018, respectively, and from the Netherlands of $2.5 million and $1.9 million for the three months ended March 31, 2019 and 2018, respectively.

Information about Contract Balances

Amounts collected in advance of services being provided are accounted for as deferred revenue. Nearly all of the Company's deferred revenue balance is related to Hosted Services- Business Revenue.

In some arrangements, the Company allows customers to pay for access to LiveEngage over the term of the software license. The Company refers to these as subscription transactions. Amounts recognized as revenue in excess of amounts billed are recorded as unbilled receivables. Unbilled receivables, anticipated to be invoiced in the next twelve months, are included in accounts receivable on the consolidated balance sheet. The opening and closing balances of the Company's accounts receivable, unbilled receivables, and deferred revenues are as follows (amounts in thousands):



	Accounts Receivable		Unbilled Receivable			Prepaid Commissions		Deferred Revenue (current)		Deferred Revenue (long term)
Opening Balance as of December 31, 2018	$	34,211	$	11,812		$	13,361	$	55,015	$	222
Increase (decrease), net	6,607		(1,345		)	2,825		11,195		(45		)
Ending Balance as of March 31, 2019	$	40,818	$	10,467		$	16,186	$	66,210	$	177

As of March 31, 2019, the Company expects to recognize the long term performance obligations in 2020.

Net Loss Per Share

3 Months Ended

Mar. 31, 2019

Earnings Per Share [Abstract]

Net Loss Per Share

The Company calculates earnings per share (“EPS”) in accordance with the provisions of ASC 260-10 and the guidance of SEC Staff Accounting Bulletin (“SAB”) No. 98. Under ASC 260-10, basic EPS excludes dilution for common stock equivalents and is computed by dividing net income or loss attributable to common shareholders by the weighted average number of common shares outstanding for the period. All options, warrants or other potentially dilutive instruments issued for nominal consideration are required to be included in the calculation of basic and diluted net income attributable to common stockholders. Diluted EPS is calculated using the treasury stock method and reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock and resulted in the issuance of common stock.

Diluted net loss per common share for the three months ended March 31, 2019 does not include the effect of 8,330,741 outstanding common stock awards, as the effect of their inclusion is anti-dilutive. Diluted net loss per common share for the three months ended March 31, 2018 does not include the effect of 10,074,809 outstanding common stock awards, as the effect of their inclusion is anti-dilutive.

A reconciliation of shares used in calculating basic and diluted net loss per share follows:



	Three Months Ended
	March 31,
	2019	2018
Basic	61,422,227	57,309,707
Effect of assumed exercised options	—	—
Diluted	61,422,227	57,309,707

Segment Information

3 Months Ended

Mar. 31, 2019

Segment Reporting [Abstract]

Segment Information

The Company accounts for its segment information in accordance with the provisions of ASC 280-10, “Segment Reporting.” ASC 280-10 establishes annual and interim reporting standards for operating segments of a company. ASC 280-10 requires disclosures of selected segment-related financial information about products, major customers, and geographic areas based on the Company’s internal accounting methods. The Company is organized into two operating segments for purposes of making operating decisions and assessing performance. The Business segment enables brands to leverage LiveEngage’s sophisticated intelligence engine to connect with consumers through an integrated suite of mobile and online business messaging technologies. The Consumer segment facilitates online transactions between independent service providers (“Experts”) and individual consumers (“Users”) seeking information and knowledge for a fee via mobile and online messaging. Both segments currently generate their revenue primarily in the United States. The chief operating decision maker, who is the chief executive officer, evaluates performance, makes operating decisions, and allocates resources based on the operating income of each segment. The reporting segments follow the same accounting polices used in the preparation of the Company’s condensed consolidated financial statements which are described in the summary of significant accounting policies. The Company allocates cost of revenue, sales and marketing and amortization of purchased intangibles to the segments, but it does not allocate product development expenses, general and administrative expenses, restructuring costs and income tax expense because management does not use this information to measure performance of the operating segments. There are currently no inter-segment sales.

Summarized financial information by segment for the three months ended March 31, 2019, based on the Company’s internal financial reporting system utilized by the Company’s chief operating decision maker, follows (amounts in thousands):



	Business		Consumer		Corporate			Consolidated
Revenue:
Hosted services – Business	$	51,537	$	—	$	—		$	51,537
Hosted services – Consumer	—		5,407		—			5,407
Professional services	9,458		—		—			9,458
Total revenue	60,995		5,407		—			66,402
Cost of revenue	17,662		987		—			18,649
Sales and marketing	30,092		2,944		—			33,036
Amortization of purchased intangibles	461		—		—			461
Unallocated corporate expenses	—		—		32,619			32,619
Operating income (loss)	$	12,780	$	1,476	$	(32,619	)	$	(18,363	)

Summarized financial information by segment for the three months ended March 31, 2018, based on the Company’s internal financial reporting system utilized by the Company’s chief operating decision maker, follows (amounts in thousands):



	Business		Consumer		Corporate			Consolidated
Revenue:
Hosted services – Business	$	47,427	$	—	$	—		$	47,427
Hosted services – Consumer	—		4,680		—			4,680
Professional services	6,134		—		—			6,134
Total revenue	53,561		4,680		—			58,241
Cost of revenue	12,918		1,036		—			13,954
Sales and marketing	21,723		2,408		—			24,131
Amortization of purchased intangibles	424		—		—			424
Unallocated corporate expenses	—		—		23,553			23,553
Operating income (loss)	$	18,496	$	1,236	$	(23,553	)	$	(3,821	)

Geographic Information

The Company is domiciled in the United States and has international operations in Israel, the United Kingdom, Asia-Pacific and Australia, Latin America and Western Europe, particularly France, Germany and the Netherlands. The following table presents the Company’s long-lived assets by geographic region as of the dates presented (amounts in thousands):



	March 31,		December 31,
	2019		2018
United States	$	135,894	$	121,894
Israel	16,657		13,598
Australia	9,293		8,970
Netherlands	7,344		7,426
Other ⁽¹⁾	4,661		3,130
Total long-lived assets	$	173,849	$	155,018

⁽¹⁾ United Kingdom, Germany, Japan, France and Italy

No individual customer accounted for 10% or more of consolidated revenue for any of the periods presented. No individual customer accounted for 10% or more of accounts receivable as of March 31, 2019. One customer exceeded 10% of our total accounts receivable in 2018.

Goodwill and Intangible Assets

3 Months Ended

Mar. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Goodwill

The changes in the carrying amount of goodwill for the three months ended March 31, 2019 are as follows (amounts in thousands):



	Business			Consumer		Consolidated
Balance as of December 31, 2018	$	87,007		$	8,024	$	95,031
Adjustments to goodwill:
Foreign exchange adjustment	(44		)	—		(44		)
Balance as of March 31, 2019	$	86,963		$	8,024	$	94,987

Intangible Assets

Intangible assets are summarized as follows (amounts in thousands):



	As of March 31, 2019
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted Average Amortization Period
Amortizing intangible assets:
Technology	$	30,414	$	(24,006	)	$	6,408	5.3 years
Customer relationships	16,964		(12,073		)	4,891		8.4 years
Trade names	1,284		(1,284		)	—		2.1 years
Non-compete agreements	1,435		(1,435		)	—		2.3 years
Patents	2,343		(592		)	1,751		12.6 years
Other	262		(235		)	27		2.7 years
Total	$	52,702	$	(39,625	)	$	13,077



	As of December 31, 2018
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted Average Amortization Period
Amortizing intangible assets:
Technology	$	30,447	$	(23,615	)	$	6,832	5.3 years
Customer relationships	17,219		(11,786		)	5,433		8.4 years
Trade names	1,286		(1,286		)	—		2.1 years
Non-compete agreements	1,436		(1,436		)	—		2.3 years
Patents	2,074		(534		)	1,540		12.4 years
Other	262		(235		)	27		2.7 years
Total	$	52,724	$	(38,892	)	$	13,832

Amortization expense is calculated over the estimated useful life of the asset. Aggregate amortization expense for intangible assets was $0.7 million for the three months ended March 31, 2019 and 2018, respectively. For the three months ended March 31, 2019 and 2018, respectively, a portion of this amortization is included in cost of revenue. Estimated amortization expense for the next five years is as follows (amounts in thousands):



	Estimated Amortization Expense
Remaining 2019	$	2,167
2020	2,702
2021	2,490
2022	2,128
2023	884
Thereafter	2,706
Total	$	13,077

- 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

Property and Equipment

3 Months Ended

Mar. 31, 2019

Property, Plant and Equipment [Abstract]

Property and Equipment

The following table presents the detail of property and equipment for the periods presented (amounts in thousands):



	March 31, 2019			December 31, 2018
Computer equipment and software	$	77,881		$	79,161
Internal-use software development costs	28,835			19,240
Furniture, equipment and building improvements	14,492			14,132
	121,208			112,533
Less: accumulated depreciation	(72,776		)	(68,798		)
Total	$	48,432		$	43,735

Accrued Expenses and Other Current Liabilities

3 Months Ended

Mar. 31, 2019

Payables and Accruals [Abstract]

Accrued Expenses and Other Current Liabilities

The following table presents the detail of accrued expenses and other current liabilities for the periods presented (amounts in thousands):



	March 31, 2019		December 31, 2018
Payroll and other employee related costs	$	11,106	$	19,014
Professional services and consulting and other vendor fees	16,176		17,461
Unrecognized tax benefits	1,930		1,913
Sales commissions	3,689		6,239
Contingent earn-out (see Note 9)	1,885		2,372
Restructuring (see Note 13)	72		977
Other	1,039		2,686
Total	$	35,897	$	50,662


8.	Convertible Senior Notes and Capped Call Transactions

In March 2019, the Company issued $230.0 million aggregate principal amount of 0.750% Convertible Senior Notes due 2024 in a private placement, which amount includes $30.0 million aggregate principal amount of such Notes pursuant to the exercise in full of the over-allotment options of the initial purchasers (collectively, the “Notes”). The interest on the Notes is payable semi-annually in arrears on March 1 and September 1 of each year, beginning on September 1, 2019.

The Notes will mature on March 1, 2024, unless earlier repurchased or redeemed by the Company or converted pursuant to their terms. The total net proceeds from the debt offering, after deducting debt issuance costs, paid or payable by us, were approximately $221.0 million.

Each $1,000 principal amount of the Notes is initially convertible into 25.9182 shares of the Company’s common stock par value $0.001, which is equivalent to an initial conversion price of approximately $38.58 per share. The conversion rate is subject to adjustment upon the occurrence of certain specified events but will not be adjusted for any accrued and unpaid interest. In addition, following certain corporate events that occur prior to the maturity date, the Company will increase the conversion rate for a holder who elects to convert its Notes in connection with such a corporate event. The Notes are not redeemable prior to the maturity date of the Notes and no sinking fund is provided for the Notes. If we undergo a fundamental change (as defined in the indenture governing the Notes) prior to the maturity date, holders may require us to repurchase for cash all or any portion of their Notes in principal amounts of $1,000 or a multiple thereof at a fundamental change repurchase price equal to 100% of the principal amount of the Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date.

Holders of the Notes may convert their Notes at their option at any time prior to the close of business on the business day immediately preceding November 1, 2023, in multiples of $1,000 principal amount, only under the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on June 30, 2019 (and only during such calendar quarter), if the last reported sale price of the Company’s common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price for the Notes on each applicable trading day as determined by the Company; (2) during the five business day period after any five consecutive trading day period (the “measurement period”) in which the “trading price” (as defined in the indenture governing the Notes) per $1,000 principal amount of Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the Company’s common stock and the conversion rate for the Notes on each such trading day; or (3) upon the occurrence of specified corporate events. On or after November 1, 2023, holders may convert all or any portion of their Notes at any time prior to the close of business on the second scheduled trading day immediately preceding the maturity date, regardless of the foregoing circumstances. Upon conversion, the Company will pay or deliver, as the case may be, cash, shares of its common stock or a combination of cash and shares of its common stock, at the Company’s election.

It is the Company’s current intent to settle the principal amount of its outstanding Notes in cash and any excess in shares of the Company’s common stock.

During the three months ended March 31, 2019, the conditions allowing holders of the notes to convert were not met.

The Notes are senior unsecured obligations and will rank senior in right of payment to any of the Company’s indebtedness that is expressly subordinated in right of payment to the Notes; equal in right of payment with the Company’s existing and future liabilities that are not so subordinated; effectively subordinated to any of the Company’s secured indebtedness to the extent of the value of the assets securing such indebtedness; and structurally junior to all indebtedness and other liabilities (including trade payables) of current or future subsidiaries of the Company.

In accounting for the issuance of the Notes, the Company separated the Notes into liability and equity components. The carrying amount of the liability component was calculated by measuring the fair value of a similar debt instrument that does not have an associated convertible feature. The carrying amount of the equity component representing the conversion option was $52.9 million and was determined by deducting the fair value of the liability component from the par value of the Notes. The equity component is not remeasured as long as it continues to meet the conditions for equity classification. The excess of the principal amount of the liability component over its carrying amount, or the debt discount, is amortized to interest expense at an effective interest rate over the contractual terms of the Notes.

In accounting for the transaction costs related to the Notes, the Company allocated the total amount incurred of approximately $8.6 million to the liability and equity components of the Notes based on the proportion of the proceeds allocated to the debt and equity components. Issuance costs attributable to the liability component were approximately $6.6 million, were recorded as an additional debt discount and are amortized to interest expense using the effective interest method over the contractual terms of the Notes. Issuance costs attributable to the equity component were approximately $2.0 million and recorded as a reduction of additional paid in capital in stockholders’ equity.

The net carrying amount of the liability component of the Notes was as follows (in thousands):



	As of March 31, 2019
Principal	$	230,000
Unamortized discount	(52,173		)
Unamortized issuance costs	(6,533		)
Net carrying amount	$	171,294

The net carrying amount of the equity component of the Notes was as follows (in thousands):



	As of March 31, 2019
Proceeds allocated to the conversion options (debt discount)	$	52,900
Issuance costs	(1,986		)
Net carrying amount	$	50,914

The following table sets forth the interest expense recognized related to the Notes (in thousands):



	Three Months Ended March 31, 2019
Contractual interest expense	$	144
Amortization of issuance costs	116
Amortization of debt discount	727
Total interest expense	$	987

The remaining term over which the debt discount and debt issuance costs will be amortized is 4.9 years. The effective interest rate on the debt was 6.97% for the period ended March 31, 2019.

In connection with the offering of the Notes, the Company entered into privately-negotiated capped call option transactions with certain counterparties (the “capped calls”). The capped calls each have an initial strike price of approximately $38.58 per share, subject to certain adjustments, which corresponds to the initial conversion price of the Notes. The capped calls have initial cap prices of $57.16 per share, subject to certain adjustment events. The capped calls cover, subject to anti-dilution adjustments, approximately 5.96 million shares of Common Stock. The capped calls are generally intended to reduce or offset the potential dilution to the Common Stock upon any conversion of the Notes with such reduction or offset, as the case may be, subject to a cap based on the cap price. The capped calls expire on March 1, 2024, subject to earlier exercise. The capped calls are subject to either adjustment or termination upon the occurrence of specified extraordinary events affecting the Company, including a merger event, a tender offer, and a nationalization, insolvency or delisting involving the Company. In addition, the capped calls are subject to certain specified additional disruption events that may give rise to a termination of the capped calls, including changes in law, failure to deliver, and hedging disruptions. The capped calls are recorded in stockholders’ equity and are not accounted for as derivatives. The net cost of $23.2 million incurred to purchase the capped calls was recorded as a reduction to additional paid-in capital in the accompanying condensed consolidated balance sheet.


9.	Acquisitions

AdvantageTec Inc.

In October 2018, the Company entered into a stock purchase agreement to acquire the outstanding equity interest of AdvantageTec Inc. (“AdvantageTec”), a leading provider of texting solutions for service departments of automotive dealerships that helps enable Conversational Commerce across the entire dealership, including both front end/variable operations (new and used vehicle sales) and back end/fixed operations (parts and services). The purchase agreement was for total consideration of approximately $11.2 million, which includes approximately $6.0 million in cash, approximately $4.3 million in shares of common stock, and approximately $0.9 million of potential earn-out consideration in cash and shares of common stock. The earn-out is contingent upon achieving certain targeted financial, strategic and integration objectives and milestones and is included as part of the purchase price. During the three months ended March 31, 2019, the Company made $0.5 million of payments in earn-out consideration, with potential future earn-out payments of $0.4 million at March 31, 2019.

The purchase price allocation resulted in approximately $9.1 million of goodwill and approximately $2.2 million of intangible assets. The goodwill will not be deductible for tax purposes. The intangible assets are being amortized over their expected period of benefit. A deferred tax liability for the identified intangibles has been recorded.

AdvantageTec Inc. enhances the Company’s messaging platform available for the automotive industry and is included in the Company's business segment.

Conversable, Inc.

In September 2018, the Company acquired the employees and technology assets of Conversable, Inc. a SaaS based Artificial Intelligence powered conversational platform, headquartered in Austin, Texas, for an aggregate estimated purchase price of $5.7 million. The estimated purchase price consisted of $1.3 million in cash, approximately $2.9 million in shares of common stock of the Company, and a potential earn-out consideration of $1.5 million in cash, which is based on achieving certain targeted financial, strategic, and integration objectives. This transaction was accounted for under the purchase method of accounting and was based upon the estimated fair value of Conversable, Inc.'s net tangible and identifiable intangible assets as of the date of acquisition.

The purchase price allocation resulted in approximately $5.5 million of goodwill and approximately $0.5 million of intangible assets. The goodwill will be deductible for tax purposes. The intangible assets are being amortized over their expected period of benefit. The allocation of the purchase price to net book value of acquired assets and liabilities resulted in a net liability of $0.3 million, which includes accounts receivable, property and equipment, accrued expenses, and deferred revenue. Transaction costs of $0.3 million were expensed during the three month ended March 31, 2019.

Conversable Inc.’s capabilities will accelerate the ongoing expansion of the Company's Conversational Commerce solutions and enhance the Company’s ability to deliver proactive and personalized content and services when and where the customer needs it, helping consumers find immediate service through messaging. Conversable, Inc is included in the Company's business segment.

BotCentral, Inc.

In January 2018, the Company acquired the employees and technology assets of BotCentral, Inc., a Silicon Valley based startup, for an approximate purchase price of $1.0 million in common stock of the Company. The Company incurred an additional $0.2 million related to acquisition costs. This transaction was accounted for as an asset purchase. The aggregate amount of approximately $1.2 million is included in intangibles on the Company's consolidated balance sheet. With the team's expertise and knowledge of the LiveEngage platform, the team is bringing valuable insight for the Company's customers and partners, and enabling the company to more rapidly optimize its bot deployment capabilities, and grow the ecosystem. BotCentral Inc is included in the Company's business segment.

Convertible Senior Notes and Capped Call Transactions

3 Months Ended

Mar. 31, 2019

Debt Disclosure [Abstract]

Convertible Senior Notes and Capped Call Transactions

It is the Company’s current intent to settle the principal amount of its outstanding Notes in cash and any excess in shares of the Company’s common stock.

During the three months ended March 31, 2019, the conditions allowing holders of the notes to convert were not met.

The net carrying amount of the liability component of the Notes was as follows (in thousands):



	As of March 31, 2019
Principal	$	230,000
Unamortized discount	(52,173		)
Unamortized issuance costs	(6,533		)
Net carrying amount	$	171,294

The net carrying amount of the equity component of the Notes was as follows (in thousands):



	As of March 31, 2019
Proceeds allocated to the conversion options (debt discount)	$	52,900
Issuance costs	(1,986		)
Net carrying amount	$	50,914

The following table sets forth the interest expense recognized related to the Notes (in thousands):



	Three Months Ended March 31, 2019
Contractual interest expense	$	144
Amortization of issuance costs	116
Amortization of debt discount	727
Total interest expense	$	987

The remaining term over which the debt discount and debt issuance costs will be amortized is 4.9 years. The effective interest rate on the debt was 6.97% for the period ended March 31, 2019.

Acquisitions	3 Months Ended
Acquisitions	Mar. 31, 2019
Business Combinations [Abstract]
Acquisitions	Acquisitions AdvantageTec Inc. In October 2018, the Company entered into a stock purchase agreement to acquire the outstanding equity interest of AdvantageTec Inc. (“AdvantageTec”), a leading provider of texting solutions for service departments of automotive dealerships that helps enable Conversational Commerce across the entire dealership, including both front end/variable operations (new and used vehicle sales) and back end/fixed operations (parts and services). The purchase agreement was for total consideration of approximately $11.2 million, which includes approximately $6.0 million in cash, approximately $4.3 million in shares of common stock, and approximately $0.9 million of potential earn-out consideration in cash and shares of common stock. The earn-out is contingent upon achieving certain targeted financial, strategic and integration objectives and milestones and is included as part of the purchase price. During the three months ended March 31, 2019, the Company made $0.5 million of payments in earn-out consideration, with potential future earn-out payments of $0.4 million at March 31, 2019. The purchase price allocation resulted in approximately $9.1 million of goodwill and approximately $2.2 million of intangible assets. The goodwill will not be deductible for tax purposes. The intangible assets are being amortized over their expected period of benefit. A deferred tax liability for the identified intangibles has been recorded. AdvantageTec Inc. enhances the Company’s messaging platform available for the automotive industry and is included in the Company's business segment. Conversable, Inc. In September 2018, the Company acquired the employees and technology assets of Conversable, Inc. a SaaS based Artificial Intelligence powered conversational platform, headquartered in Austin, Texas, for an aggregate estimated purchase price of $5.7 million. The estimated purchase price consisted of $1.3 million in cash, approximately $2.9 million in shares of common stock of the Company, and a potential earn-out consideration of $1.5 million in cash, which is based on achieving certain targeted financial, strategic, and integration objectives. This transaction was accounted for under the purchase method of accounting and was based upon the estimated fair value of Conversable, Inc.'s net tangible and identifiable intangible assets as of the date of acquisition. The purchase price allocation resulted in approximately $5.5 million of goodwill and approximately $0.5 million of intangible assets. The goodwill will be deductible for tax purposes. The intangible assets are being amortized over their expected period of benefit. The allocation of the purchase price to net book value of acquired assets and liabilities resulted in a net liability of $0.3 million, which includes accounts receivable, property and equipment, accrued expenses, and deferred revenue. Transaction costs of $0.3 million were expensed during the three month ended March 31, 2019. Conversable Inc.’s capabilities will accelerate the ongoing expansion of the Company's Conversational Commerce solutions and enhance the Company’s ability to deliver proactive and personalized content and services when and where the customer needs it, helping consumers find immediate service through messaging. Conversable, Inc is included in the Company's business segment. BotCentral, Inc. In January 2018, the Company acquired the employees and technology assets of BotCentral, Inc., a Silicon Valley based startup, for an approximate purchase price of $1.0 million in common stock of the Company. The Company incurred an additional $0.2 million related to acquisition costs. This transaction was accounted for as an asset purchase. The aggregate amount of approximately $1.2 million is included in intangibles on the Company's consolidated balance sheet. With the team's expertise and knowledge of the LiveEngage platform, the team is bringing valuable insight for the Company's customers and partners, and enabling the company to more rapidly optimize its bot deployment capabilities, and grow the ecosystem. BotCentral Inc is included in the Company's business segment.

Fair Value Measurements

3 Months Ended

Mar. 31, 2019

Fair Value Disclosures [Abstract]

Fair Value Measurements

The Company measures its cash equivalents at fair value based on an expected exit price as defined by the authoritative guidance on fair value measurements, which represents the amount that would be received on the sale of an asset or paid to transfer a liability, as the case may be, in an orderly transaction between market participants. As such, fair value may be based on assumptions that market participants would use in pricing an asset or liability. The authoritative guidance on fair value measurements establishes a consistent framework for measuring fair value on either a recurring or nonrecurring basis whereby inputs, used in valuation techniques, are assigned a hierarchical level. The following are the hierarchical levels of inputs to measure fair value:


•	Level 1: Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.


•	Level 2: Inputs reflect: quoted prices for identical assets or liabilities in markets that are not active; quoted prices for similar assets or liabilities in active markets; inputs other than quoted prices that are observable for the assets or liabilities; or inputs that are derived principally from or corroborated by observable market data by correlation or other means.


•	Level 3: Unobservable inputs reflecting the Company’s assumptions incorporated in valuation techniques used to determine fair value. These assumptions are required to be consistent with market participant assumptions that are reasonably available.

Financial Assets and Liabilities

The carrying amount of cash, accounts receivable, and accounts payable approximate their fair value due to their short-term nature. The Company’s assets and liabilities that are measured at fair value on a recurring basis, by level, within the fair value hierarchy as of March 31, 2019 and December 31, 2018, are summarized as follows (amounts in thousands).



	March 31, 2019								December 31, 2018
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents:
Money market funds	$	2,853	$	—	$	—	$	2,853	$	2,828	$	—	$	—	$	2,828
Total assets	$	2,853	$	—	$	—	$	2,853	$	2,828	$	—	$	—	$	2,828

Liabilities:
Contingent earn-out	$	—	$	—	$	1,885	$	1,885	$	—	$	—	$	2,372	$	2,372
Total liabilities	$	—	$	—	$	1,885	$	1,885	$	—	$	—	$	2,372	$	2,372

In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as considers counterparty credit risk in its assessment of fair value. Observable or market inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s assumptions based on the best information available.

The Company's money market funds are measured at fair value on a recurring basis based on quoted market prices in active markets and are classified as level 1 within the fair value hierarchy. The Company's contingent earn-out liability is measured at fair value on a recurring basis and is classified as level 3 within the fair value hierarchy. On a nonrecurring basis, the Company uses fair value measures when analyzing asset impairment. Long-lived tangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If it is determined such indicators are present and the review indicates that the assets will not be fully recoverable, based on undiscounted estimated cash flows over the remaining amortization periods, their carrying values are reduced to estimated fair value. The Company uses an income approach and inputs that constitute level 3. During the third quarter of each year, the Company evaluates goodwill for impairment at the reporting unit level. The Company uses qualitative factors in accordance with ASU No. 2011-08 to determine whether it is “more likely than not” that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test. This measurement is classified based on level 3 input.

As of March 31, 2019, the fair value of the Notes, net of debt issuance costs and the amortization of debt discount, as further described in Note 8 above, was approximately $171.3 million. The fair value was determined by an independent valuation specialist using the antithetic variable technique and is considered a Level 2 fair value measurement.

The Company recorded a contingent earn-out of $2.4 million in December 2018 in connection with the acquisition of Conversable, Inc. The contingent earn-out is based on achieving certain targeted financial, strategic, and integration objectives. The unobservable inputs considered are probability factors and the time value of money. During the three months ended March 31, 2019, there were payments of $0.5 million. As a result, the contingent earn-out balance was $1.9 million as of March 31, 2019. See Note 9 of the Notes to Condensed Consolidated Financial Statements for a full description of the acquisition.

The changes in fair value of the Level 3 liabilities are as follows (amounts in thousands):



	Contingent Earn-Out
	March 31, 2019			December 31, 2018
Balance, Beginning of period	$	2,372		$	—
Conversable, Inc. addition (see Note 9)	—			1,496
AdvantageTec Inc. addition (see Note 9)	—			876
Cash payment	(487		)	—
Balance, End of period	$	1,885		$	2,372

Derivative Financial Instruments

The Company is exposed to foreign exchange risks that in part are managed by using derivative financial instruments. The Company entered into foreign currency forward contracts related to risks associated with foreign operations. The Company does not use derivatives for trading purposes. Derivatives are recorded at their estimated fair values based upon Level 2 inputs. Derivatives designated and effective as cash flow hedges are reported as a component of other comprehensive income and reclassified to earnings in the same periods in which the hedged transactions impact earnings. Gains and losses related to derivatives not meeting the requirements of hedge accounting and the portion of derivatives related to hedge ineffectiveness are recognized in current earnings. As of March 31, 2019, the Company is not party to any foreign currency forward contracts and does not have any restricted cash balance.

The following summarizes certain information regarding the Company’s derivatives that are not designated or are not effective as hedges (in thousands):



	Gain (losses) on Derivative Instruments Recognized in Statements of Operations
		Three Months Ended March 31,
	Location	2019		2018
Foreign currency derivatives contracts	Other income, net	$	—	$	(50	)

- 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 + Details

Commitments and Contingencies

3 Months Ended

Mar. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Contractual Obligations

The Company leases facilities and certain car leases under agreements accounted for as operating leases. Our leases have initial lease terms ranging from 2 years to 13 years. Payments due under the lease contracts include primarily fixed payments. Our lease terms include periods under options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Currently, there are no operating leases where we believe it is reasonable certain that we will exercise any option to extend the initial term.

The Company has evaluated its facility leases and determined which leases met the definition of the new standard in accordance with Topic 842. The Company also performed an evaluation of their other contracts with suppliers in accordance with Topic 842 and have determined that, except for the facilities and car leases described above, none of our supply contracts contain a lease. Further, the Company has made an accounting policy election to keep leases with an initial term of twelve months or less off the balance sheet. This policy applies to all classes of the underlying assets. The Company will recognize those lease payments and associated interest expense in the consolidated statement of operations evenly over the lease term.

In connection with the leases, the Company recognized an operating lease right-of-use assets of $14.8 million and an aggregate lease liability of $18.8 million in its condensed consolidated balance sheet as of March 31, 2019.

The determination of the incremental borrowing rate used to calculate the present value of the right-of-use assets and lease liabilities depends on whether an interest rate is specified in the lease or not. If the lease specifies a rate, that rate is used when calculating the present value of lease payments. If the rate is not readily determinable, which is generally the case for the Company, the Company’s incremental borrowing rate (“IBR”) as of the date of inception is used (for initial measurement, the IBR was determined as of the adoption date of the standard). The incremental borrowing rate is the rate of interest that the Company would have to pay to borrow on a collateralized basis over a similar term and amount equal to the lease payments in a similar economic environment. The Company used a ratings benchmark report against its peers in the technology sector.



	As of March 31, 2019
Operating Leases	(in thousands, except lease term and discount rate)
Right-of-use asset	$	14,817

Current operating lease liability	6,227
Long term operating lease liability	12,566
Total operating lease liability	$	18,793

Weighted Average Remaining Lease Term
Operating leases	3.3 years

Weighted Average Discount Rate
Operating leases	7		%

During the three months ended March 31, 2019, there were $1.5 million of cash payments for operating leases. The undiscounted future lease payments under the lease liability as of March 31, 2019 were as follows (amounts in thousands):



Year ending December 31:	As of March 31, 2019
2019 (remaining nine months)	$	5,390
2020	6,078
2021	4,612
2022	3,233
2023	1,313
2024 and thereafter	640
Total undiscounted lease payments	21,266
Less: present value adjustment	(2,473		)
Total operating lease liability	$	18,793

Rental expense for operating leases and other service agreements for the three months ended March 31, 2019 and 2018 was approximately $2.9 million and $2.6 million, respectively.

Employee Benefit Plans

The Company has a 401(k) defined contribution plan covering all eligible employees. In 2018, the Company provided for employer matching contributions equal to 50% of employee contributions, up to the lesser of 5% of eligible compensation or $6,000. Matching contributions are deposited into the employee’s 401(k) account and are subject to 5 year graded vesting. Beginning in 2019, the Company's 401(k) policy was changed, whereby the Company matches 100% of the first 3% of eligible compensation and 50% of the next 2% of eligible compensation. Furthermore, the match is immediately vested. Salaries and related expenses include $1.0 million and $0.5 million of employer matching contributions for the three months ended March 31, 2019 and 2018.

Letters of Credit

As of March 31, 2019, the Company has a $1.3 million letter of credit outstanding substantially in favor of a certain landlord for office space. In addition, the Company has a letter of credit totaling $0.1 million as a security deposit for the due performance by the Company of the terms and conditions of a supply contract. There were no draws against these letters of credit during the three months ended March 31, 2019.

Stockholders' Equity

3 Months Ended

Mar. 31, 2019

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stockholders' Equity

Stockholders’ Equity

Common Stock

As of March 31, 2019, there were 100,000,000 shares of common stock authorized, and 64,747,798 shares issued and outstanding. As of December 31, 2018, there were 100,000,000 shares of common stock authorized, and 63,676,229 shares issued and outstanding. The par value for common shares is $0.001 per share.

Preferred Stock

As of March 31, 2019 and December 31, 2018, there were 5,000,000 shares of preferred stock authorized, and zero shares issued and outstanding. The par value for preferred shares is $0.001 per share.

Stock Repurchase Program

From 2012 through 2018, the Company had a stock repurchase program in place pursuant to which the Company was authorized to repurchase shares of its common stock, in the open market or privately negotiated transactions, at times and prices considered appropriate by the Board of Directors depending upon prevailing market conditions and other corporate considerations. The timing and actual number of shares repurchased depend on a variety of factors including the timing of open trading windows, price, corporate and regulatory requirements and other market conditions. The program was discontinued at the end of 2018. The Company may or may not enter into a new stock repurchase program in the future.

Stock-Based Compensation

The Company follows FASB ASC 718-10, “Stock Compensation,” which addresses the accounting for transactions in which an entity exchanges its equity instruments for goods or services, with a primary focus on transactions in which an entity obtains employee services in share-based payment transactions. ASC 718-10 requires measurement of the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award. Incremental compensation costs arising from subsequent modifications of awards after the grant date must be recognized.

The per share weighted average fair value of stock options granted was $9.84 and $5.74 during the three months ended March 31, 2019 and 2018, respectively. The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions:



	Three Months Ended
	March 31,
	2019	2018
Dividend yield	0.0%	0.0%
Risk-free interest rate	2.49% - 2.57%	2.5% - 2.7%
Expected life (in years)	5	5
Historical volatility	43.62% - 43.85%	47.9% - 48.2%

A description of the methods used in the significant assumptions used to estimate the fair value of stock-based compensation awards follows:

Dividend yield – The Company uses 0% as it has never issued dividends and does not anticipate issuing dividends in the near term.

Risk-free interest rate – The Company uses the market yield on U.S. Treasury securities at five years with constant maturity, representing the current expected life of stock options in years.

Expected life – The Company uses historical data to estimate the expected life of a stock option.

Historical volatility – The Company uses a trailing five year from grant date to determine volatility.

Stock Option Plans

During 1998, the Company established the Stock Option and Restricted Stock Purchase Plan (the “1998 Plan”). Under the 1998 Plan, the Board of Directors could issue incentive stock options or nonqualified stock options or other equity-based awards in respect of up to 5,850,000 shares of common stock. The 2000 Stock Incentive Plan (the “2000 Plan”) succeeded the 1998 Plan. Under the 2000 Plan, the options which had been outstanding under the 1998 Plan were incorporated in the 2000 Plan increasing the number of shares available for issuance under the 2000 Plan by approximately 4,150,000, thereby reserving for issuance 10,000,000 shares of common stock in the aggregate.

The Company established the 2009 Stock Incentive Plan (as amended and restated, the “2009 Plan”) as a successor to the 2000 Plan. Under the 2009 Plan, the options which had been outstanding under the 2000 Plan were incorporated into the 2009 Plan and the Company increased the number of shares available for issuance under the plan by 6,000,000. The Company amended the 2009 Plan (the “Amended 2009 Plan”) effective June 7, 2012. The Amended 2009 Plan increased the number of shares authorized for issuance under the plan by an additional 4,250,000.

On June 2, 2017, the Company's Board of Directors amended and restated the Amended 2009 Plan effective April 30, 2017. The amended and restated plan increased the number of shares authorized for issuance under the plan by an additional 4,000,000, thereby reserving for issuance 27,817,744 shares of common stock in the aggregate. Options to acquire common stock granted thereunder have 10-year terms. As of March 31, 2019, approximately 2.6 million shares of common stock remained available for issuance under the Amended 2009 Plan (taking into account all option exercises and other equity award settlements through March 31, 2019).

On April 11, 2019, the Company's Board of Directors adopted the 2019 Stock Incentive Plan, subject to stockholder approval, to replace the Amended and Restated 2009 Plan, which will expire under its terms on June 9, 2019.

Employee Stock Purchase Plan

In June 2010, the Company’s stockholders approved the 2010 Employee Stock Purchase Plan with 1,000,000 shares of common stock initially reserved for issuance. Subject to stockholder approval, which was obtained on June 2, 2017, the Company's Board of Directors amended and restated the 2010 Employee Stock Purchase Plan effective April 30, 2017. The amended and restated plan increased the number of shares authorized for issuance under the plan by an additional 1,000,000, thereby reserving for issuance 2,000,000 shares of common stock in the aggregate. As of March 31, 2019, approximately 0.8 million shares of common stock remained available for issuance under the Employee Stock Purchase Plan (taking into account all share purchases through March 31, 2019).

On April 11, 2019, the Company's Board of Directors adopted the 2019 Employee Stock Purchase Plan subject to stockholder approval, to replace the Amended and Restated 2010 Employee Stock Purchase Plan which will expire under its terms in June 2020.

Inducement Plan

During January 2018, the Company established the Inducement Plan (the “2018 Plan”). Under the 2018 Plan, the Board of Directors can issue incentive stock options or nonqualified stock options or other equity-based awards in respect of up to 1,500,000 shares of common stock. On April 25, 2018, the Company's Board of Directors amended and restated the 2018 Plan (the "Amended 2018 Plan"). The Amended 2018 Plan increased the number of shares authorized for issuance under the plan by an additional 500,000 shares, and subsequently the Board of Directors has approved and ratified, effective as of July 31, 2018, October 29, 2018 and February 13, 2019, increases of the number of shares authorized for issuance under the Amended 2018 Plan by 500,000, 250,000 and 618,048 shares, respectively, constituting 3,368,048 shares of common stock in the aggregate being reserved for issuance pursuant to grants under the Amended 2018 Plan. As of March 31, 2019, approximately 0.2 million shares of common stock remained available for issuance under the Amended 2018 Plan (taking into account all option exercises and other equity award settlements through March 31, 2019).

Stock Option Activity

A summary of the Company’s stock option activity and weighted average exercise prices follows:



	Stock Option Activity				Weighted Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value (in thousands)
	Options (in thousands)		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value (in thousands)
Balance outstanding at December 31, 2018	6,266		$	12.13
Granted	241		23.75
Exercised	(626	)	10.36
Cancelled or expired	(124	)	11.96
Balance outstanding at March31, 2019	5,757		$	12.81	6.73	$	93,297
Options vested and expected to vest	5,157		$	12.50	6.48	$	85,169
Options exercisable at March 31, 2019	3,093		$	11.38	4.97	$	54,556

The total fair value of stock options exercised during the three months ended March 31, 2019 was approximately $3.0 million. As of March 31, 2019, there was approximately $14.5 million of total unrecognized compensation cost related to nonvested share-based compensation arrangements. That cost is expected to be recognized over a weighted average period of approximately 2.6 years.

The following table summarizes information about outstanding and vested stock options as of March 31, 2019:



	Options Outstanding				Options Exercisable
Range of Exercise Prices	Number of Shares Outstanding (in thousands)	Weighted-Average Remaining Contractual Life (Years)	Weighted-Average Exercise Price		Number of Shares (in thousands)	Weighted-Average Exercise Price
$3.35 - $7.60	903	6.47	$	7.30	475	$	7.15
$7.95 - $10.01	655	6.35	9.33		535	9.35
$10.05 - $10.60	664	5.72	10.26		658	10.26
$11.33 - $12.32	360	7.06	11.81		176	11.77
$12.45 - $12.45	855	2.85	12.45		158	12.45
$12.46 - $13.59	643	9.38	13.30		643	13.30
$14.30 - $16.05	580	3.76	14.84		149	15.08
$16.35 - $21.05	621	8.72	17.76		299	17.46
$21.10 - $25.36	360	6.92	22.67		—	—
$25.95 - $25.95	116	9.82	25.95		—	—

	5,757	6.91	$	12.81	3,093	$	11.38

Restricted Stock Unit Activity

A summary of the Company’s restricted stock units (“RSUs”) activity and weighted average exercise prices follows:



	Restricted Stock Unit Activity
	Number of Shares (in thousands)		Weighted Average Grant Date Fair Value (Per Share)		Aggregate Fair Value (in thousands)
Balance outstanding at December 31, 2018	2,690		$	15.81	$	—
Awarded	386		25.07		—
Released	(415	)	12.18		—
Forfeited	(87	)	15.87		—
Non-vested and outstanding at March 31 2019	2,574		$	17.61	$	74,719
Expected to vest	1,816		$	16.80	$	52,686

RSUs granted to employees generally vest over a three to four-year period or upon achievement of certain performance conditions. In accordance with ASU 2017-09, as of March 31, 2019, total unrecognized compensation cost, adjusted for estimated forfeitures, related to nonvested RSUs was approximately $42.2 million and the weighted-average remaining vesting period was 2.8 years.

As of March 31, 2019, the Company accrued approximately $1.9 million in cash awards to be settled in shares of the Company's stock and recorded a corresponding expense, which is included as a component of stock-based compensation expense in the accompanying condensed consolidated financial statements for the three months ended March 31, 2019.

Stock-based compensation expense recognized in the Company’s condensed consolidated statements of operations and cash flows was $7.2 million and $2.4 million for the three months ended March 31, 2019 and 2018, respectively.

Restructuring

3 Months Ended

Mar. 31, 2019

Restructuring and Related Activities [Abstract]

Restructuring

The Company’s restructuring costs relate to the wind-down of its legacy platform and severance costs associated with re-prioritizing and reallocating resources to focus on areas showing high growth potential within the Company's Business Segment. The expense associated with this restructuring was approximately $0.3 million and $0.2 million during the three months ended March 31, 2019 and 2018, respectively. The Company expects to incur additional restructuring costs through December 31, 2019. The restructuring liability was approximately $0.1 million as of March 31, 2019 and $1.0 million as of December 31, 2018. It is classified as accrued expenses and other current liabilities on the condensed consolidated balance sheets.

The following table presents the detail of the liability for the Company's restructuring charges for the periods presented (amounts in thousands):



	March 31, 2019			December 31, 2018
Balance, Beginning of the year	$	977		$	2,338
Severance and other associated costs	279			4,468
Cash payments	(1,184		)	(5,829		)
Balance, End of period	$	72		$	977

The following table presents the detail of expenses for the Company's restructuring charges for the three months ended March 31, 2019 (amounts in thousands):



	March 31, 2019		March 31, 2018
Severance and other associated costs	$	279	$	178
Total restructuring costs	$	279	$	178

Legal Matters	3 Months Ended
Legal Matters	Mar. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
Legal Matters	Legal Matters The Company previously filed an intellectual property suit against [24]7 Customer, Inc. in the Southern District of New York on March 6, 2014 seeking damages on the grounds that [24]7 reverse engineered and misappropriated the Company's technology to develop competing products and misused the Company's business information. On June 22, 2015, [24]7 Customer, Inc. filed suit against the Company in the Northern District of California alleging patent infringement. On December 7, 2015, [24]7 Customer Inc. filed a second patent infringement suit against the Company, also in the Northern District of California. On March 16, 2017, the New York case was voluntarily transferred and consolidated with the two California cases in the Northern District of California for all pre-trial purposes. Rulings by both the Court and the United States Patent Office in the Company's favor have invalidated the majority of [24]7 patents that were asserted in the patent cases. Trial for the Company's intellectual property and other claims asserted against [24]7 in the original litigation is currently set for September 3, 2019. The Company believes the claims filed by [24]7 are entirely without merit and intends to defend them vigorously. The Company routinely assesses all of its litigation and threatened litigation as to the probability of ultimately incurring a liability, and records its best estimate of the ultimate loss in situations where the Company assesses the likelihood of loss as probable. From time to time, the Company is involved in or subject to legal, administrative and regulatory proceedings, claims, demands and investigations arising in the ordinary course of business, including direct claims brought by or against the Company with respect to intellectual property, contracts, employment and other matters, as well as claims brought against the Company’s customers for whom the Company has a contractual indemnification obligation. The Company accrues for a liability when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Significant judgment is required in both the determination of probability and the determination as to whether a loss is reasonably estimable. In addition, in the event the Company determines that a loss is not probable, but is reasonably possible, and it becomes possible to develop what the Company believes to be a reasonable range of possible loss, then the Company will include disclosure related to such matter as appropriate and in compliance with ASC 450. The accruals or estimates, if any, resulting from the foregoing analysis, are reviewed at least quarterly and adjusted to reflect the impact of negotiations, settlements, rulings, advice of legal counsel and other information and events pertaining to a particular matter. To the extent there is a reasonable possibility that the losses could exceed the amounts already accrued, the Company will, as applicable, adjust the accrual in the period the determination is made, disclose an estimate of the additional loss or range of loss, indicate that the estimate is immaterial with respect to its financial statements as a whole or, if the amount of such adjustment cannot be reasonably estimated, disclose that an estimate cannot be made. From time to time, third parties assert claims against the Company regarding intellectual property rights, privacy issues and other matters arising in the ordinary course of business. Although the Company cannot be certain of the outcome of any litigation or the disposition of any claims, nor the amount of damages and exposure, if any, that the Company could incur, the Company currently believes that the final disposition of all existing matters will not have a material adverse effect on our business, results of operations, financial condition or cash flows. In addition, in the ordinary course of business, the Company is also subject to periodic threats of lawsuits, investigations and claims. Regardless of the outcome, litigation can have an adverse impact on the Company because of defense and settlement costs, diversion of management resources and other factors.

Description of Business and Basis of Presentation (Policies)

3 Months Ended

Mar. 31, 2019

Accounting Policies [Abstract]

Basis of Presentation

The accompanying condensed consolidated financial statements as of March 31, 2019 and for the three months ended March 31, 2019 and 2018 are unaudited. In the opinion of management, the unaudited condensed consolidated financial statements have been prepared on the same basis as the annual financial statements and reflect all adjustments, which include only normal recurring adjustments, necessary to present fairly the consolidated financial position of LivePerson as of March 31, 2019, and the consolidated results of operations, comprehensive loss and cash flows for the interim periods ended March 31, 2019 and 2018. The financial data and other information disclosed in these notes to the condensed consolidated financial statements related to these periods are unaudited. The results of operations for any interim period are not necessarily indicative of the results of operations for any other future interim period or for a full fiscal year. The condensed consolidated balance sheet at December 31, 2018 has been derived from audited consolidated financial statements at that date.

Certain information and note disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). These unaudited interim condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto for the year ended December 31, 2018 included in the Company’s Annual Report on Form 10-K filed with the SEC on February 25, 2019.

Principles of Consolidation

The condensed consolidated financial statements include the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated.

Use of Estimates

The preparation of the Company’s condensed consolidated 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 condensed consolidated financial statements and the reported amounts of income and expenses during the reporting period. These estimates are based on information available as of the date of the condensed consolidated financial statements; therefore, actual results could differ from management’s estimates.

Recently Issued Accounting Standards

In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") No. 2018-15 "Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract; Disclosures for Implementation Costs Incurred for Internal-Use Software and Cloud Computing Arrangements" (“ASU 2018-15”). This standard aligns the accounting for implementation costs incurred in a hosting arrangement that is a service contract with the accounting for implementation costs incurred to develop or obtain internal-use software under Accounting Standards Codification ("ASC") 350-40, in order to determine which costs to capitalize and recognize as an asset. ASU 2018-15 is effective for annual reporting periods, and interim periods within those years, beginning after December 15, 2019, and can be applied either prospectively to implementation costs incurred after the date of adoption or retrospectively to all arrangements. The Company is currently in the process of evaluating the impact of the adoption of ASU 2018-230 on its consolidated financial statements.

In January 2017, FASB issued ASU No. 2017-04, "Intangibles -Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment" (“ASU 2017-04”). This update addresses concerns over the cost and complexity of the two-step goodwill impairment test. The amendments in this update remove the second step of the test. An entity will apply a one-step quantitative test and record the amount of goodwill impairment as the excess of a reporting unit's carrying amount over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. The new guidance does not amend the optional qualitative assessment of goodwill impairment. ASU 2017-04 is effective for financial statements issued for annual periods beginning after December 15, 2019, and interim periods within those annual periods. The Company does not expect the adoption of ASU 2017-04 will have a material effect on its financial position, results of operations or cash flows.

Recently Adopted Accounting Pronouncements

In February 2016, the FASB issued ASU No. 2016-02, “Leases” (“ASU 2016-02”). ASU 2016-02 requires lessees to recognize the following for all leases (with the exception of short-term leases) at the commencement date: a lease liability, which is a lessee‘s obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) may apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented.

The Company adopted ASU No. 2016-02-Leases (Topic 842), as of January 1, 2019 using the modified transition approach. The modified transition approach provides a method for recording existing leases at adoption. As a result, the Company was not required to adjust its comparative period financial information for effects of the standard or make the new required lease disclosures for periods before the date of adoption (i.e. January 1, 2019). For its long-term operating lease, the Company recognized a right-of-use asset and a lease liability on its balance sheet. The lease liability is determined as the present value of future lease payments using an estimated rate of interest that the Company would have to pay to borrow equivalent funds on a collateralized basis at the lease commencement date. The right-of-use asset is based on the liability adjusted for any prepaid or deferred rent. The lease term at the commencement date is determined by considering whether renewal options and termination options are reasonably assured of exercise. Rent expense for the operating lease is recognized on a straight-line basis over the lease term and is included in operating expenses on the statements of operations. Variable lease payments include lease operating expenses. Adoption of the new standard resulted in the recording of additional net lease assets and lease liabilities of approximately $14.8 million and $18.8 million, respectively, as of March 31, 2019. The standard did not materially impact the Company's consolidated net earnings and had no impact on cash flows.

Revenue Recognition

The Company determines revenue recognition through the following steps:

•Identification of the contract, or contracts, with a customer;

•Identification of the performance obligations in the contract;

•Determination of the transaction price;

•Allocation of the transaction price to the performance obligations in the contract; and

•Recognition of revenue when, or as, the Company satisfies a performance obligation.

Hosted Services- Business Revenue

Professional Services Revenues

Contracts with Multiple Performance Obligations

Hosted Services- Consumer Revenue

Deferred Revenues

The following table presents deferred revenue by revenue source (amounts in thousands):



	Deferred Revenue
	As of March 31, 2019		December 31, 2018
Hosted services – Business	$	61,463	$	52,232
Professional services – Business	4,747		2,783
Total deferred revenue - short term	$	66,210	$	55,015

Hosted services – Business	$	4	$	19
Professional services – Business	173		203
Total deferred revenue - long term	$	177	$	222

Disaggregated Revenue

The following table presents the Company's revenues disaggregated by revenue source (amounts in thousands):



	Three Months Ended
	March 31,
	2019		2018		(1)
Revenue:
Hosted services – Business	$	51,537	$	47,427
Hosted services – Consumer	5,407		4,680
Professional services	9,458		6,134
Total revenue	$	66,402	$	58,241
⁽¹⁾As noted above, prior period amounts have not been adjusted under the modified retrospective method.

Revenue by Geographic Location

The following table presents the Company’s revenues attributable to domestic and foreign operations for the periods presented (amounts in thousands):



	Three Months Ended
	March 31,
	2019		2018
United States	$	38,589	$	34,071
Other Americas ⁽¹⁾	2,769		1,259
Total Americas	41,358		35,330
EMEA ^{(2) (4)}	18,113		16,919
APAC ⁽³⁾	6,931		5,992
Total revenue	$	66,402	$	58,241

⁽¹⁾ Canada, Latin America and South America

⁽²⁾ Europe, the Middle East and Africa (“EMEA”)

⁽³⁾ Asia-Pacific (“APAC”)

Information about Contract Balances

Amounts collected in advance of services being provided are accounted for as deferred revenue. Nearly all of the Company's deferred revenue balance is related to Hosted Services- Business Revenue.



	Accounts Receivable		Unbilled Receivable			Prepaid Commissions		Deferred Revenue (current)		Deferred Revenue (long term)
Opening Balance as of December 31, 2018	$	34,211	$	11,812		$	13,361	$	55,015	$	222
Increase (decrease), net	6,607		(1,345		)	2,825		11,195		(45		)
Ending Balance as of March 31, 2019	$	40,818	$	10,467		$	16,186	$	66,210	$	177

As of March 31, 2019, the Company expects to recognize the long term performance obligations in 2020.

Net Loss Per Share

Segment Information

Goodwill and Intangible Assets

Amortization expense is calculated over the estimated useful life of the asset.

Stock-Based Compensation

Revenue Recognition (Tables)

3 Months Ended

Mar. 31, 2019

Revenue from Contract with Customer [Abstract]

Schedule of Deferred Revenues and Contract Balances

The following table presents deferred revenue by revenue source (amounts in thousands):



	Deferred Revenue
	As of March 31, 2019		December 31, 2018
Hosted services – Business	$	61,463	$	52,232
Professional services – Business	4,747		2,783
Total deferred revenue - short term	$	66,210	$	55,015

Hosted services – Business	$	4	$	19
Professional services – Business	173		203
Total deferred revenue - long term	$	177	$	222

The opening and closing balances of the Company's accounts receivable, unbilled receivables, and deferred revenues are as follows (amounts in thousands):



	Accounts Receivable		Unbilled Receivable			Prepaid Commissions		Deferred Revenue (current)		Deferred Revenue (long term)
Opening Balance as of December 31, 2018	$	34,211	$	11,812		$	13,361	$	55,015	$	222
Increase (decrease), net	6,607		(1,345		)	2,825		11,195		(45		)
Ending Balance as of March 31, 2019	$	40,818	$	10,467		$	16,186	$	66,210	$	177

As of March 31, 2019, the Company expects to recognize the long term performance obligations in 2020.

Schedule of Disaggregation of Revenue

The following table presents the Company's revenues disaggregated by revenue source (amounts in thousands):



	Three Months Ended
	March 31,
	2019		2018		(1)
Revenue:
Hosted services – Business	$	51,537	$	47,427
Hosted services – Consumer	5,407		4,680
Professional services	9,458		6,134
Total revenue	$	66,402	$	58,241
⁽¹⁾As noted above, prior period amounts have not been adjusted under the modified retrospective method.

Schedule of Revenue by Geographic Region

The following table presents the Company’s revenues attributable to domestic and foreign operations for the periods presented (amounts in thousands):



	Three Months Ended
	March 31,
	2019		2018
United States	$	38,589	$	34,071
Other Americas ⁽¹⁾	2,769		1,259
Total Americas	41,358		35,330
EMEA ^{(2) (4)}	18,113		16,919
APAC ⁽³⁾	6,931		5,992
Total revenue	$	66,402	$	58,241

⁽¹⁾ Canada, Latin America and South America

⁽²⁾ Europe, the Middle East and Africa (“EMEA”)

⁽³⁾ Asia-Pacific (“APAC”)

Net Loss Per Share (Tables)

3 Months Ended

Mar. 31, 2019

Earnings Per Share [Abstract]

Reconciliation of Shares Used in Calculating Basic and Diluted Earnings Per Share

A reconciliation of shares used in calculating basic and diluted net loss per share follows:



	Three Months Ended
	March 31,
	2019	2018
Basic	61,422,227	57,309,707
Effect of assumed exercised options	—	—
Diluted	61,422,227	57,309,707

Segment Information (Tables)

3 Months Ended

Mar. 31, 2019

Segment Reporting [Abstract]

Summary of Financial Information by Segment



	Business		Consumer		Corporate			Consolidated
Revenue:
Hosted services – Business	$	51,537	$	—	$	—		$	51,537
Hosted services – Consumer	—		5,407		—			5,407
Professional services	9,458		—		—			9,458
Total revenue	60,995		5,407		—			66,402
Cost of revenue	17,662		987		—			18,649
Sales and marketing	30,092		2,944		—			33,036
Amortization of purchased intangibles	461		—		—			461
Unallocated corporate expenses	—		—		32,619			32,619
Operating income (loss)	$	12,780	$	1,476	$	(32,619	)	$	(18,363	)



	Business		Consumer		Corporate			Consolidated
Revenue:
Hosted services – Business	$	47,427	$	—	$	—		$	47,427
Hosted services – Consumer	—		4,680		—			4,680
Professional services	6,134		—		—			6,134
Total revenue	53,561		4,680		—			58,241
Cost of revenue	12,918		1,036		—			13,954
Sales and marketing	21,723		2,408		—			24,131
Amortization of purchased intangibles	424		—		—			424
Unallocated corporate expenses	—		—		23,553			23,553
Operating income (loss)	$	18,496	$	1,236	$	(23,553	)	$	(3,821	)

Long-Lived Assets by Geographic Region

The following table presents the Company’s long-lived assets by geographic region as of the dates presented (amounts in thousands):



	March 31,		December 31,
	2019		2018
United States	$	135,894	$	121,894
Israel	16,657		13,598
Australia	9,293		8,970
Netherlands	7,344		7,426
Other ⁽¹⁾	4,661		3,130
Total long-lived assets	$	173,849	$	155,018

⁽¹⁾ United Kingdom, Germany, Japan, France and Italy

Goodwill and Intangible Assets (Tables)

3 Months Ended

Mar. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

The changes in the carrying amount of goodwill for the three months ended March 31, 2019 are as follows (amounts in thousands):



	Business			Consumer		Consolidated
Balance as of December 31, 2018	$	87,007		$	8,024	$	95,031
Adjustments to goodwill:
Foreign exchange adjustment	(44		)	—		(44		)
Balance as of March 31, 2019	$	86,963		$	8,024	$	94,987

Summary of Intangible Assets

Intangible assets are summarized as follows (amounts in thousands):



	As of March 31, 2019
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted Average Amortization Period
Amortizing intangible assets:
Technology	$	30,414	$	(24,006	)	$	6,408	5.3 years
Customer relationships	16,964		(12,073		)	4,891		8.4 years
Trade names	1,284		(1,284		)	—		2.1 years
Non-compete agreements	1,435		(1,435		)	—		2.3 years
Patents	2,343		(592		)	1,751		12.6 years
Other	262		(235		)	27		2.7 years
Total	$	52,702	$	(39,625	)	$	13,077



	As of December 31, 2018
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted Average Amortization Period
Amortizing intangible assets:
Technology	$	30,447	$	(23,615	)	$	6,832	5.3 years
Customer relationships	17,219		(11,786		)	5,433		8.4 years
Trade names	1,286		(1,286		)	—		2.1 years
Non-compete agreements	1,436		(1,436		)	—		2.3 years
Patents	2,074		(534		)	1,540		12.4 years
Other	262		(235		)	27		2.7 years
Total	$	52,724	$	(38,892	)	$	13,832

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

Estimated amortization expense for the next five years is as follows (amounts in thousands):



	Estimated Amortization Expense
Remaining 2019	$	2,167
2020	2,702
2021	2,490
2022	2,128
2023	884
Thereafter	2,706
Total	$	13,077

Property and Equipment (Tables)

3 Months Ended

Mar. 31, 2019

Property, Plant and Equipment [Abstract]

Summary of Property and Equipment

The following table presents the detail of property and equipment for the periods presented (amounts in thousands):



	March 31, 2019			December 31, 2018
Computer equipment and software	$	77,881		$	79,161
Internal-use software development costs	28,835			19,240
Furniture, equipment and building improvements	14,492			14,132
	121,208			112,533
Less: accumulated depreciation	(72,776		)	(68,798		)
Total	$	48,432		$	43,735

Accrued Expenses and Other Current Liabilities (Tables)

3 Months Ended

Mar. 31, 2019

Payables and Accruals [Abstract]

Schedule of Accrued Expenses and Other Current Liabilities

The following table presents the detail of accrued expenses and other current liabilities for the periods presented (amounts in thousands):



	March 31, 2019		December 31, 2018
Payroll and other employee related costs	$	11,106	$	19,014
Professional services and consulting and other vendor fees	16,176		17,461
Unrecognized tax benefits	1,930		1,913
Sales commissions	3,689		6,239
Contingent earn-out (see Note 9)	1,885		2,372
Restructuring (see Note 13)	72		977
Other	1,039		2,686
Total	$	35,897	$	50,662

Convertible Senior Notes and Capped Call Transactions (Tables)

3 Months Ended

Mar. 31, 2019

Debt Disclosure [Abstract]

Schedule of Carrying Amount of Convertible Debt and Related Interest

The net carrying amount of the liability component of the Notes was as follows (in thousands):



	As of March 31, 2019
Principal	$	230,000
Unamortized discount	(52,173		)
Unamortized issuance costs	(6,533		)
Net carrying amount	$	171,294

The net carrying amount of the equity component of the Notes was as follows (in thousands):



	As of March 31, 2019
Proceeds allocated to the conversion options (debt discount)	$	52,900
Issuance costs	(1,986		)
Net carrying amount	$	50,914

The following table sets forth the interest expense recognized related to the Notes (in thousands):



	Three Months Ended March 31, 2019
Contractual interest expense	$	144
Amortization of issuance costs	116
Amortization of debt discount	727
Total interest expense	$	987

Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2019

Fair Value Disclosures [Abstract]

Schedule of Financial Assets and Liabilities Measured at Fair Value



	March 31, 2019								December 31, 2018
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents:
Money market funds	$	2,853	$	—	$	—	$	2,853	$	2,828	$	—	$	—	$	2,828
Total assets	$	2,853	$	—	$	—	$	2,853	$	2,828	$	—	$	—	$	2,828

Liabilities:
Contingent earn-out	$	—	$	—	$	1,885	$	1,885	$	—	$	—	$	2,372	$	2,372
Total liabilities	$	—	$	—	$	1,885	$	1,885	$	—	$	—	$	2,372	$	2,372

Schedule of Changes in Fair Value of Level 3 Liabilities

The changes in fair value of the Level 3 liabilities are as follows (amounts in thousands):



	Contingent Earn-Out
	March 31, 2019			December 31, 2018
Balance, Beginning of period	$	2,372		$	—
Conversable, Inc. addition (see Note 9)	—			1,496
AdvantageTec Inc. addition (see Note 9)	—			876
Cash payment	(487		)	—
Balance, End of period	$	1,885		$	2,372

Schedule of Gains (Losses) on Derivative Instruments Recognized in Income Statement

The following summarizes certain information regarding the Company’s derivatives that are not designated or are not effective as hedges (in thousands):



	Gain (losses) on Derivative Instruments Recognized in Statements of Operations
		Three Months Ended March 31,
	Location	2019		2018
Foreign currency derivatives contracts	Other income, net	$	—	$	(50	)

Commitments and Contingencies (Tables)

3 Months Ended

Mar. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

Schedule of Lease Information



	As of March 31, 2019
Operating Leases	(in thousands, except lease term and discount rate)
Right-of-use asset	$	14,817

Current operating lease liability	6,227
Long term operating lease liability	12,566
Total operating lease liability	$	18,793

Weighted Average Remaining Lease Term
Operating leases	3.3 years

Weighted Average Discount Rate
Operating leases	7		%

Schedule of Undiscounted Future Lease Payments

The undiscounted future lease payments under the lease liability as of March 31, 2019 were as follows (amounts in thousands):



Year ending December 31:	As of March 31, 2019
2019 (remaining nine months)	$	5,390
2020	6,078
2021	4,612
2022	3,233
2023	1,313
2024 and thereafter	640
Total undiscounted lease payments	21,266
Less: present value adjustment	(2,473		)
Total operating lease liability	$	18,793

Stockholders' Equity (Tables)

3 Months Ended

Mar. 31, 2019

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Weighted Average Assumptions of Fair Value Options Using Black-Scholes Option-Pricing Model

The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions:



	Three Months Ended
	March 31,
	2019	2018
Dividend yield	0.0%	0.0%
Risk-free interest rate	2.49% - 2.57%	2.5% - 2.7%
Expected life (in years)	5	5
Historical volatility	43.62% - 43.85%	47.9% - 48.2%

Summary of Stock Option Activity and Weighted Average Exercise Prices

A summary of the Company’s stock option activity and weighted average exercise prices follows:



	Stock Option Activity				Weighted Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value (in thousands)
	Options (in thousands)		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value (in thousands)
Balance outstanding at December 31, 2018	6,266		$	12.13
Granted	241		23.75
Exercised	(626	)	10.36
Cancelled or expired	(124	)	11.96
Balance outstanding at March31, 2019	5,757		$	12.81	6.73	$	93,297
Options vested and expected to vest	5,157		$	12.50	6.48	$	85,169
Options exercisable at March 31, 2019	3,093		$	11.38	4.97	$	54,556

Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range

The following table summarizes information about outstanding and vested stock options as of March 31, 2019:



	Options Outstanding				Options Exercisable
Range of Exercise Prices	Number of Shares Outstanding (in thousands)	Weighted-Average Remaining Contractual Life (Years)	Weighted-Average Exercise Price		Number of Shares (in thousands)	Weighted-Average Exercise Price
$3.35 - $7.60	903	6.47	$	7.30	475	$	7.15
$7.95 - $10.01	655	6.35	9.33		535	9.35
$10.05 - $10.60	664	5.72	10.26		658	10.26
$11.33 - $12.32	360	7.06	11.81		176	11.77
$12.45 - $12.45	855	2.85	12.45		158	12.45
$12.46 - $13.59	643	9.38	13.30		643	13.30
$14.30 - $16.05	580	3.76	14.84		149	15.08
$16.35 - $21.05	621	8.72	17.76		299	17.46
$21.10 - $25.36	360	6.92	22.67		—	—
$25.95 - $25.95	116	9.82	25.95		—	—

	5,757	6.91	$	12.81	3,093	$	11.38

Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity

A summary of the Company’s restricted stock units (“RSUs”) activity and weighted average exercise prices follows:



	Restricted Stock Unit Activity
	Number of Shares (in thousands)		Weighted Average Grant Date Fair Value (Per Share)		Aggregate Fair Value (in thousands)
Balance outstanding at December 31, 2018	2,690		$	15.81	$	—
Awarded	386		25.07		—
Released	(415	)	12.18		—
Forfeited	(87	)	15.87		—
Non-vested and outstanding at March 31 2019	2,574		$	17.61	$	74,719
Expected to vest	1,816		$	16.80	$	52,686

Restructuring (Tables)

3 Months Ended

Mar. 31, 2019

Restructuring and Related Activities [Abstract]

Schedule of Restructuring and Related Costs

The following table presents the detail of the liability for the Company's restructuring charges for the periods presented (amounts in thousands):



	March 31, 2019			December 31, 2018
Balance, Beginning of the year	$	977		$	2,338
Severance and other associated costs	279			4,468
Cash payments	(1,184		)	(5,829		)
Balance, End of period	$	72		$	977

The following table presents the detail of expenses for the Company's restructuring charges for the three months ended March 31, 2019 (amounts in thousands):



	March 31, 2019		March 31, 2018
Severance and other associated costs	$	279	$	178
Total restructuring costs	$	279	$	178

Description of Business and Basis of Presentation (Narrative) (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Jan. 01, 2019
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating lease right-of-use asset	$ 14,817
Operating lease liabilities	$ 18,793
ASU No. 2016-02
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating lease right-of-use asset		$ 14,800
Operating lease liabilities		$ 18,800

Revenue Recognition (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Revenue from Contract with Customer [Abstract]
Revenue	$ 66,402	$ 58,241
Recognition of deferred revenue	$ 16,900

Revenue Recognition (Deferred Revenue) (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Disaggregation of Revenue [Line Items]
Total deferred revenue - short term	$ 66,210	$ 55,015
Total deferred revenue - long term	177	222
Hosted Services - Business
Disaggregation of Revenue [Line Items]
Total deferred revenue - short term	61,463	52,232
Total deferred revenue - long term	4	19
Professional Services
Disaggregation of Revenue [Line Items]
Total deferred revenue - short term	4,747	2,783
Total deferred revenue - long term	$ 173	$ 203

Revenue Recognition (Disaggregation of Revenue) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Disaggregation of Revenue [Line Items]
Revenue	$ 66,402	$ 58,241
Hosted Services - Business
Disaggregation of Revenue [Line Items]
Revenue	51,537	47,427
Hosted Services - Consumer
Disaggregation of Revenue [Line Items]
Revenue	5,407	4,680
Professional Services
Disaggregation of Revenue [Line Items]
Revenue	$ 9,458	$ 6,134

Revenue Recognition (Revenue by Geographic Region) (Details) - USD ($)
$ in Thousands

3 Months Ended

Mar. 31, 2019

Mar. 31, 2018

Disaggregation of Revenue [Line Items]

Anti-dilutive common stock awards not included in earnings per share calculation (in shares)

8,330,741

10,074,809

Revenue

$ 66,402

$ 58,241

United States

Disaggregation of Revenue [Line Items]

Revenue

38,589

34,071

Other Americas

Disaggregation of Revenue [Line Items]

Revenue

^[1]

2,769

1,259

Total Americas

Disaggregation of Revenue [Line Items]

Revenue

41,358

35,330

EMEA

Disaggregation of Revenue [Line Items]

Revenue

^[2],[3]

18,113

16,919

APAC

Disaggregation of Revenue [Line Items]

Revenue

^[4]

6,931

5,992

United Kingdom

Disaggregation of Revenue [Line Items]

Revenue

11,700

Netherlands

Disaggregation of Revenue [Line Items]

Revenue

$ 2,500

$ 1,900

[1]	Canada, Latin America and South America
[2]	Europe, the Middle East and Africa (“EMEA”)
[3]	Includes revenues from the United Kingdom of $11.7 million for the three months ended March 31, 2019 and 2018, respectively, and from the Netherlands of $2.5 million and $1.9 million for the three months ended March 31, 2019 and 2018, respectively.
[4]	Asia-Pacific (“APAC”)

Revenue Recognition (Receivables and Deferred Revenue) (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2019 USD ($)
Contract Balances [Roll Forward]
Opening balance, Receivable	$ 46,023
Ending balance, Receivable	51,285
Opening balance, Deferred Revenue (current)	55,015
Increase (decrease) in current deferred revenue, net	11,195
Ending balance, Deferred Revenue (current)	66,210
Opening balance, Deferred Revenue (long-term)	222
Increase (decrease) in long-term deferred revenue, net	(45)
Ending balance, Deferred Revenue (long-term)	177
Accounts Receivable
Contract Balances [Roll Forward]
Opening balance, Receivable	34,211
Increase (decrease) in accounts receivable, net	6,607
Ending balance, Receivable	40,818
Unbilled Receivable
Contract Balances [Roll Forward]
Opening balance, Receivable	11,812
Increase (decrease) in unbilled receivables, net	(1,345)
Ending balance, Receivable	10,467
Opening balance, Prepaid Commissions	13,361
Increase (decrease) in prepaid commissions	2,825
Ending balance, Prepaid Commissions	$ 16,186

Net Loss Per Share (Narrative) (Details) - $ / shares	3 Months Ended
Net Loss Per Share (Narrative) (Details) - $ / shares	Mar. 31, 2019	Mar. 31, 2018
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive common stock awards not included in earnings per share calculation (in shares)	8,330,741	10,074,809
Convertible Debt \| Convertible Senior Notes
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Convertible debt conversion price (in dollars per share)	$ 38.58

Net Loss Per Share (Reconciliation of Shares Used in Calculating Basic and Diluted Earnings Per Share) (Details) - shares	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Earnings Per Share [Abstract]
Basic (in shares)	61,422,227	57,309,707
Effect of assumed exercised options (in shares)	0	0
Diluted (in shares)	61,422,227	57,309,707

Segment Information (Narrative) (Details)	3 Months Ended
Segment Information (Narrative) (Details)	Mar. 31, 2019 segment
Segment Reporting [Abstract]
Number of operating segments	2

Segment Information (Summary of Financial Information by Segment) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Revenue:
Revenue	$ 66,402	$ 58,241
Cost of revenue	18,649	13,954
Sales and marketing	33,036	24,131
Amortization of purchased intangibles	461	424
Unallocated corporate expenses	32,619	23,553
Loss from operations	(18,363)	(3,821)
Corporate
Revenue:
Unallocated corporate expenses	32,619	23,553
Loss from operations	(32,619)	(23,553)
Business \| Operating Segments
Revenue:
Revenue	60,995	53,561
Cost of revenue	17,662	12,918
Sales and marketing	30,092	21,723
Amortization of purchased intangibles	461	424
Loss from operations	12,780	18,496
Consumer \| Operating Segments
Revenue:
Revenue	5,407	4,680
Cost of revenue	987	1,036
Sales and marketing	2,944	2,408
Loss from operations	1,476	1,236
Hosted Services - Business
Revenue:
Revenue	51,537	47,427
Hosted Services - Business \| Business \| Operating Segments
Revenue:
Revenue	51,537	47,427
Hosted Services - Consumer
Revenue:
Revenue	5,407	4,680
Hosted Services - Consumer \| Consumer \| Operating Segments
Revenue:
Revenue	5,407	4,680
Professional Services
Revenue:
Revenue	9,458	6,134
Professional Services \| Business \| Operating Segments
Revenue:
Revenue	$ 9,458	$ 6,134

Segment Information (Long-Lived Assets by Geographic Region) (Details) - USD ($)
$ in Thousands

Mar. 31, 2019

Dec. 31, 2018

Segment Reporting Information [Line Items]

Total long-lived assets

$ 173,849

$ 155,018

United States

Segment Reporting Information [Line Items]

Total long-lived assets

135,894

121,894

Israel

Segment Reporting Information [Line Items]

Total long-lived assets

16,657

13,598

Australia

Segment Reporting Information [Line Items]

Total long-lived assets

9,293

8,970

Netherlands

Segment Reporting Information [Line Items]

Total long-lived assets

7,344

7,426

Other

Segment Reporting Information [Line Items]

Total long-lived assets

^[1]

$ 4,661

$ 3,130

[1]	United Kingdom, Germany, Japan, France and Italy

Goodwill and Intangible Assets (Changes in Carrying Amount of Goodwill) (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2019 USD ($)
Goodwill [Roll Forward]
Goodwill, beginning balance	$ 95,031
Foreign exchange adjustment	(44)
Goodwill, ending balance	94,987
Business
Goodwill [Roll Forward]
Goodwill, beginning balance	87,007
Foreign exchange adjustment	(44)
Goodwill, ending balance	86,963
Consumer
Goodwill [Roll Forward]
Goodwill, beginning balance	8,024
Foreign exchange adjustment	0
Goodwill, ending balance	$ 8,024

Goodwill and Intangible Assets (Summary of Intangible Assets) (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 52,702	$ 52,724
Accumulated Amortization	(39,625)	(38,892)
Net Carrying Amount	13,077	13,832
Technology
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	30,414	30,447
Accumulated Amortization	(24,006)	(23,615)
Net Carrying Amount	$ 6,408	$ 6,832
Weighted Average Amortization Period	5 years 3 months 18 days	5 years 3 months 18 days
Customer relationships
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 16,964	$ 17,219
Accumulated Amortization	(12,073)	(11,786)
Net Carrying Amount	$ 4,891	$ 5,433
Weighted Average Amortization Period	8 years 5 months	8 years 4 months 18 days
Trade names
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 1,284	$ 1,286
Accumulated Amortization	(1,284)	(1,286)
Net Carrying Amount	$ 0	$ 0
Weighted Average Amortization Period	2 years 1 month	2 years 1 month 12 days
Non-compete agreements
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 1,435	$ 1,436
Accumulated Amortization	(1,435)	(1,436)
Net Carrying Amount	$ 0	$ 0
Weighted Average Amortization Period	2 years 3 months 12 days	2 years 3 months 12 days
Patents
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 2,343	$ 2,074
Accumulated Amortization	(592)	(534)
Net Carrying Amount	$ 1,751	$ 1,540
Weighted Average Amortization Period	12 years 7 months	12 years 4 months 18 days
Other
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 262	$ 262
Accumulated Amortization	(235)	(235)
Net Carrying Amount	$ 27	$ 27
Weighted Average Amortization Period	2 years 8 months 12 days	2 years 8 months 18 days

Goodwill and Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization	$ 746	$ 711

Goodwill and Intangible Assets (Future Amortization Expense) (Details) $ in Thousands	Mar. 31, 2019 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2018	$ 2,167
2019	2,702
2020	2,490
2021	2,128
2022	884
Thereafter	2,706
Total	$ 13,077

Property and Equipment (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 121,208	$ 112,533
Less: accumulated depreciation	(72,776)	(68,798)
Total	48,432	43,735
Computer equipment and software
Property, Plant and Equipment [Line Items]
Property and equipment, gross	77,881	79,161
Software Development [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	28,835	19,240
Furniture, equipment and building improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 14,492	$ 14,132

Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Payables and Accruals [Abstract]
Payroll and other employee related costs	$ 11,106	$ 19,014
Professional services and consulting and other vendor fees	16,176	17,461
Unrecognized tax benefits	1,930	1,913
Sales commissions	3,689	6,239
Contingent earn-out	1,885	2,372
Restructuring	72	977	$ 2,338
Other	1,039	2,686
Total	$ 35,897	$ 50,662

Convertible Senior Notes and Capped Call Transactions (Narrative) (Details) $ / shares in Units, shares in Thousands	1 Months Ended	3 Months Ended
	Mar. 31, 2019 USD ($) $ / shares	Mar. 31, 2019 USD ($) equity_instrument day $ / shares shares	Dec. 31, 2018 $ / shares
Debt Instrument [Line Items]
Common stock, par value (in dollars per share) \| $ / shares	$ 0.001	$ 0.001	$ 0.001
Carry amount of equity component of convertible notes	$ 52,900,000	$ 52,900,000
Total deferred issuance costs	8,600,000	8,600,000
Debt issuance costs attributable to liability	$ 6,600,000	$ 6,600,000
Remaining amortization period for debt discount and debt issuance costs		4 years 10 months 24 days
Effective interest rate (percent)		6.97%
Number of shares of common stock covered by called caps (shares) \| shares		5,960
Reduction to additional paid-in-capital related to called caps		$ 23,184,000
Adjustments to Additional Paid in Capital, Debt Conversion Option, Issuance Costs		$ 1,986,000
Capped Calls
Debt Instrument [Line Items]
Capped caps initial strike price (in dollars per share) \| $ / shares	$ 38.58	$ 38.58
Capped caps initial cap price (in dollars per share) \| $ / shares	$ 57.16	$ 57.16
Convertible Debt \| Convertible Senior Notes
Debt Instrument [Line Items]
Aggregate principal	$ 230,000,000	$ 230,000,000
Debt instrument stated rate (percent)	0.75%	0.75%
Aggregate principal from exercise in full of over-allotment options	$ 30,000,000	$ 30,000,000
Proceeds from debt offering, net of debt issuance costs	221,000,000
Debt instrument, unit of principal for conversion	$ 1,000	$ 1,000
Number of shares per convertible note \| equity_instrument		25.9182
Common stock, par value (in dollars per share) \| $ / shares	$ 0.001	$ 0.001
Convertible debt conversion price (in dollars per share) \| $ / shares	$ 38.58	$ 38.58
Percentage of principal amount paid if repurchase due to fundamental change (percent)		100.00%
Threshold trading days in consideration of note conversion \| day		20
Threshold consecutive trading days in analysis of conversion price \| day		30
Threshold percentage of stock price if converted		130.00%
Threshold for five day period, product of sale price of common stock and conversion rate of notes		98.00%
Carry amount of equity component of convertible notes	$ 52,900,000	$ 52,900,000
Additional Paid-in Capital
Debt Instrument [Line Items]
Reduction to additional paid-in-capital related to called caps		23,184,000
Adjustments to Additional Paid in Capital, Debt Conversion Option, Issuance Costs		$ 1,986,000

Convertible Senior Notes and Capped Call Transactions (Carrying Amount and Interest Expense) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Carrying Amount of Equity Component:
Proceeds allocated to the conversion options (debt discount)	$ 52,900
Interest Expense:
Amortization of debt issuance costs	116	$ 0
Amortization of debt discount	727	$ 0
Convertible Debt \| Convertible Senior Notes
Carrying Amount of Liability Component:
Principal	230,000
Unamortized discount	(52,173)
Unamortized issuance costs	(6,533)
Net carrying amount	171,294
Carrying Amount of Equity Component:
Proceeds allocated to the conversion options (debt discount)	52,900
Issuance costs	(1,986)
Net carrying amount	50,914
Interest Expense:
Contractual interest expense	144
Amortization of debt issuance costs	116
Amortization of debt discount	727
Total interest expense	$ 987

Acquisitions (Narrative) (Details) - USD ($) $ in Thousands	1 Months Ended			3 Months Ended
Acquisitions (Narrative) (Details) - USD ($) $ in Thousands	Oct. 31, 2018	Sep. 30, 2018	Jan. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
Business Acquisition [Line Items]
Payments related to contingent consideration				$ 487	$ 0
AdvantageTec
Business Acquisition [Line Items]
Aggregate purchase price	$ 11,200
Cash payment in acquisition	6,000
Equity consideration in acquisition	4,300
Potential earn-out consideration payments based on achieving targets	900			400
Goodwill acquired in acquisition	9,100
Intangible assets acquired	$ 2,200
Conversable, Inc.
Business Acquisition [Line Items]
Aggregate purchase price		$ 5,700
Cash payment in acquisition		1,300
Equity consideration in acquisition		2,900
Potential earn-out consideration payments based on achieving targets		1,500
Goodwill acquired in acquisition		5,500
Intangible assets acquired		500
Assets acquired and liabilities assumed, net liability		$ (300)		$ 300
BotCentral
Business Acquisition [Line Items]
Equity consideration in acquisition			$ 1,000
Intangible assets acquired			1,200
Business acquisition transaction costs			$ 200

Fair Value Measurements (Financial Assets and Liabilities) (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Liabilities:
Contingent earn-out	$ 1,885	$ 2,372
Recurring
Assets:
Total assets	2,853	2,828
Liabilities:
Total liabilities	1,885	2,372
Recurring \| Money market funds
Assets:
Money market funds	2,853	2,828
Recurring \| Foreign currency derivative contracts
Assets:
Foreign currency derivative contracts	0	0
Liabilities:
Foreign currency derivative contracts	0	0
Recurring \| Contingent earn-out
Liabilities:
Contingent earn-out	1,885	2,372
Recurring \| Convertible senior note
Liabilities:
Convertible senior note net	171,294	0
Recurring \| Level 1
Assets:
Total assets	2,853	2,828
Liabilities:
Total liabilities	0	0
Recurring \| Level 1 \| Money market funds
Assets:
Money market funds	2,853	2,828
Recurring \| Level 1 \| Foreign currency derivative contracts
Assets:
Foreign currency derivative contracts	0	0
Liabilities:
Foreign currency derivative contracts	0	0
Recurring \| Level 1 \| Contingent earn-out
Liabilities:
Contingent earn-out	0	0
Recurring \| Level 1 \| Convertible senior note
Liabilities:
Convertible senior note net	0	0
Recurring \| Level 2
Assets:
Total assets	0	0
Liabilities:
Total liabilities	0	0
Recurring \| Level 2 \| Money market funds
Assets:
Money market funds	0	0
Recurring \| Level 2 \| Foreign currency derivative contracts
Assets:
Foreign currency derivative contracts	0
Liabilities:
Foreign currency derivative contracts	0	0
Recurring \| Level 2 \| Contingent earn-out
Liabilities:
Contingent earn-out	0	0
Recurring \| Level 2 \| Convertible senior note
Liabilities:
Convertible senior note net	171,294	0
Recurring \| Level 3
Assets:
Total assets	0	0
Liabilities:
Total liabilities	1,885	2,372
Recurring \| Level 3 \| Money market funds
Assets:
Money market funds	0	0
Recurring \| Level 3 \| Foreign currency derivative contracts
Assets:
Foreign currency derivative contracts	0	0
Liabilities:
Foreign currency derivative contracts	0	0
Recurring \| Level 3 \| Contingent earn-out
Liabilities:
Contingent earn-out	1,885	2,372
Recurring \| Level 3 \| Convertible senior note
Liabilities:
Convertible senior note net	$ 0	$ 0

Fair Value Measurements (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent earn-out	$ 1,885		$ 2,372
Payments related to contingent consideration	487	$ 0
Recurring \| Convertible senior note
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Convertible senior note net	171,294		0
Conversable, Inc.
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent earn-out	$ 1,900		$ 2,400

Fair Value Measurements (Changes in Fair Value of Level 3 Liabilities) (Details) - Contingent earn-out - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Change in Fair Value of Level 3 Liabilities
Beginning balance	$ 2,372	$ 0
Cash payment	(487)	0
Ending balance	1,885	2,372
Conversable, Inc.
Change in Fair Value of Level 3 Liabilities
Addition	0	1,496
AdvantageTec
Change in Fair Value of Level 3 Liabilities
Addition	$ 0	$ 876

Fair Value Measurements (Gains and Losses on Derivatives) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Derivatives not designated as hedging instruments \| Foreign currency derivative contracts \| Other income, net
Derivative [Line Items]
Gain (losses) on derivative instruments recognized in statements of operations	$ 0	$ (50)

Commitments and Contingencies (Leases Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Lessee, Lease, Description [Line Items]
Operating lease right-of-use asset	$ 14,817
Operating lease liabilities	$ 18,793
Operating leases, weighted average remaining lease term (in years)	3 years 3 months 8 days
Operating leases, weighted average discount rate (percent)	7.00%
Cash payments for operating leases	$ 1,500
Rental expense for operating leases	$ 2,900	$ 2,600
Minimum
Lessee, Lease, Description [Line Items]
Operating leases, initial lease terms	2 years
Maximum
Lessee, Lease, Description [Line Items]
Operating leases, initial lease terms	13 years

Commitments and Contingencies (Lease Information) (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2019 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Operating lease right-of-use asset	$ 14,817
Current operating lease liability	6,227
Long term operating lease liability	12,566
Total operating lease liability	$ 18,793
Operating leases, weighted average remaining lease term (in years)	3 years 3 months 8 days
Operating leases, weighted average discount rate (percent)	7.00%

Commitments and Contingencies (Undiscounted Future Lease Payments) (Details) $ in Thousands	Mar. 31, 2019 USD ($)
Undiscounted future lease payments
2019 (remaining nine months)	$ 5,390
2020	6,078
2021	4,612
2022	3,233
2023	1,313
2024 and thereafter	640
Total undiscounted lease payments	21,266
Less: present value adjustment	(2,473)
Total operating lease liability	$ 18,793

Commitments and Contingencies (Employee Benefit Plan and Letters of Credit Narrative) (Details) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Other Commitments [Line Items]
Employer matching contribution, percent of match		50.00%
Employer matching contribution percent of eligible compensation		5.00%
Employer contribution limit		$ 6,000
Employer contribution vesting period		5 years
Employer matching contributions	$ 1,000,000	$ 500,000
Match Step One
Other Commitments [Line Items]
Employer matching contribution, percent of match	100.00%
Employer matching contribution percent of eligible compensation	3.00%
Match Step Two
Other Commitments [Line Items]
Employer matching contribution, percent of match	50.00%
Employer matching contribution percent of eligible compensation	2.00%
Letter of Credit
Other Commitments [Line Items]
Proceeds from amounts drawn against letters of credit	$ 0
Letter of Credit \| LOC for Office Space
Other Commitments [Line Items]
Letters of credit outstanding	1,300,000
Letter of Credit \| LOC for Security Deposit
Other Commitments [Line Items]
Letters of credit outstanding	$ 100,000

Stockholders' Equity (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands							3 Months Ended
	Feb. 13, 2019	Oct. 29, 2018	Jul. 31, 2018	Apr. 25, 2018	Apr. 30, 2017	Jun. 07, 2012	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018	Jan. 31, 2018	Jun. 30, 2010
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract]
Common stock, shares authorized (in shares)							100,000,000		100,000,000
Common stock, shares issued (in shares)							64,747,798		63,676,229
Common stock, shares outstanding (in shares)							64,747,798		63,676,229
Common stock, par value (in dollars per share)							$ 0.001		$ 0.001
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract]
Preferred stock, shares authorized (in shares)							5,000,000		5,000,000
Preferred stock, shares issued (in shares)							0		0
Preferred stock, shares outstanding (in shares)							0		0
Preferred stock, par value (in dollars per share)							$ 0.001		$ 0.001
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Per share weighed average fair value of stock options granted during the period (in dollars per share)							$ 9.84	$ 5.74
Dividend yield							0.00%	0.00%
Expected life							5 years	5 years
Period used to determine volatility							5 years
Fair value of stock options exercised							$ 3,000
Share-based Compensation							$ 7,166	$ 2,438
Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average recognition period of unrecognized compensation cost							2 years 6 months 25 days
Incentive Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized							$ 14,500
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost related to nonvested share-based compensation arrangements							$ 42,200
Weighted average recognition period of unrecognized compensation cost							2 years 9 months 22 days
Accrued cash awards to be settled in shares of Company stock							$ 1,900
1998 Plan \| Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares of common stock available for issuance (up to)							5,850,000
2000 Plan \| Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Increase in number of shares of common stock available for issuance							4,150,000
1998 and 2000 Plan \| Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares of common stock available for issuance (up to)							10,000,000
2009 Plan \| Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Increase in number of shares of common stock available for issuance							6,000,000
2009 Plan, Amended \| Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares of common stock available for issuance (up to)					27,817,744		2,600,000
Increase in number of shares of common stock available for issuance					4,000,000	4,250,000
Stock option term							10 years
2010 Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares of common stock available for issuance (up to)					2,000,000		800,000				1,000,000
Increase in number of shares of common stock available for issuance					1,000,000
2018 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares of common stock available for issuance (up to)							3,368,048			1,500,000
Increase in number of shares of common stock available for issuance	618,048	250,000	500,000	500,000
2018 Plan \| Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares reserved for future issuance							200,000
Minimum \| Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period							3 years
Maximum \| Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period							4 years

Stockholders' Equity (Weighted Average Assumptions of Fair Value Options Using Black-Scholes Option-Pricing Model) (Details)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividend yield	0.00%	0.00%
Expected life	5 years	5 years
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rate	2.49%	2.50%
Historical volatility	43.62%	47.90%
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rate	2.57%	2.70%
Historical volatility	43.85%	48.20%

Stockholders' Equity (Summary of Stock Option Activity and Weighted Average Exercise Prices) (Details) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2019 USD ($) $ / shares shares
Options
Beginning balance (in shares) \| shares	6,266
Granted (in shares) \| shares	241
Exercised (in shares) \| shares	(626)
Cancelled or expired (in shares) \| shares	(124)
Ending balance (in shares) \| shares	5,757
Options vested and expected to vest (in shares) \| shares	5,157
Options exercisable at end of period (in shares) \| shares	3,093
Weighted Average Exercise Price
Beginning balance (in dollars per share) \| $ / shares	$ 12.13
Granted (in dollars per share) \| $ / shares	23.75
Exercised (in dollars per share) \| $ / shares	10.36
Cancelled or expired (in dollars per share) \| $ / shares	11.96
Ending balance (in dollars per share) \| $ / shares	12.81
Options vested and expected to vest (in dollars per share) \| $ / shares	12.50
Options exercisable at end of period (in dollars per share) \| $ / shares	$ 11.38
Weighted Average Remaining Contractual Term (in years)
Options outstanding at end of period	6 years 8 months 23 days
Options vested and expected to vest	6 years 5 months 23 days
Options exercisable at end of period	4 years 11 months 19 days
Aggregate Intrinsic Value
Options outstanding at end of period \| $	$ 93,297
Options vested and expected to vest \| $	85,169
Options exercisable at end of period \| $	$ 54,556

Stockholders' Equity (Summary of Options by Range of Exercise Prices) (Details) shares in Thousands	3 Months Ended
	Mar. 31, 2019 $ / shares shares
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options outstanding, Number of shares outstanding (in shares) \| shares	5,757
Options outstanding, Weighted-average remaining contractual life	6 years 10 months 28 days
Options outstanding, Weighted-average exercise price (in dollars per share)	$ 12.81
Options exercisable, Number of shares (in shares) \| shares	3,093
Options exercisable, Weighted-average exercise price (in dollars per share)	$ 11.38
$3.35 - $7.60
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise price range, minimum (in dollars per share)	3.35
Exercise price range, maximum (in dollars per share)	$ 7.60
Options outstanding, Number of shares outstanding (in shares) \| shares	903
Options outstanding, Weighted-average remaining contractual life	6 years 5 months 19 days
Options outstanding, Weighted-average exercise price (in dollars per share)	$ 7.30
Options exercisable, Number of shares (in shares) \| shares	475
Options exercisable, Weighted-average exercise price (in dollars per share)	$ 7.15
$7.95 - $10.01
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise price range, minimum (in dollars per share)	7.95
Exercise price range, maximum (in dollars per share)	$ 10.01
Options outstanding, Number of shares outstanding (in shares) \| shares	655
Options outstanding, Weighted-average remaining contractual life	6 years 4 months 6 days
Options outstanding, Weighted-average exercise price (in dollars per share)	$ 9.33
Options exercisable, Number of shares (in shares) \| shares	535
Options exercisable, Weighted-average exercise price (in dollars per share)	$ 9.35
$10.05 - $10.60
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise price range, minimum (in dollars per share)	10.05
Exercise price range, maximum (in dollars per share)	$ 10.60
Options outstanding, Number of shares outstanding (in shares) \| shares	664
Options outstanding, Weighted-average remaining contractual life	5 years 8 months 19 days
Options outstanding, Weighted-average exercise price (in dollars per share)	$ 10.26
Options exercisable, Number of shares (in shares) \| shares	658
Options exercisable, Weighted-average exercise price (in dollars per share)	$ 10.26
$11.33 - $12.32
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise price range, minimum (in dollars per share)	11.33
Exercise price range, maximum (in dollars per share)	$ 12.32
Options outstanding, Number of shares outstanding (in shares) \| shares	360
Options outstanding, Weighted-average remaining contractual life	7 years 22 days
Options outstanding, Weighted-average exercise price (in dollars per share)	$ 11.81
Options exercisable, Number of shares (in shares) \| shares	176
Options exercisable, Weighted-average exercise price (in dollars per share)	$ 11.77
$12.45 - $12.45
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise price range, minimum (in dollars per share)	12.45
Exercise price range, maximum (in dollars per share)	$ 12.45
Options outstanding, Number of shares outstanding (in shares) \| shares	855
Options outstanding, Weighted-average remaining contractual life	2 years 10 months 6 days
Options outstanding, Weighted-average exercise price (in dollars per share)	$ 12.45
Options exercisable, Number of shares (in shares) \| shares	158
Options exercisable, Weighted-average exercise price (in dollars per share)	$ 12.45
$12.46 - $13.59
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise price range, minimum (in dollars per share)	12.46
Exercise price range, maximum (in dollars per share)	$ 13.59
Options outstanding, Number of shares outstanding (in shares) \| shares	643
Options outstanding, Weighted-average remaining contractual life	9 years 4 months 17 days
Options outstanding, Weighted-average exercise price (in dollars per share)	$ 13.30
Options exercisable, Number of shares (in shares) \| shares	643
Options exercisable, Weighted-average exercise price (in dollars per share)	$ 13.30
$14.30 - $16.05
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise price range, minimum (in dollars per share)	14.30
Exercise price range, maximum (in dollars per share)	$ 16.05
Options outstanding, Number of shares outstanding (in shares) \| shares	580
Options outstanding, Weighted-average remaining contractual life	3 years 9 months 4 days
Options outstanding, Weighted-average exercise price (in dollars per share)	$ 14.84
Options exercisable, Number of shares (in shares) \| shares	149
Options exercisable, Weighted-average exercise price (in dollars per share)	$ 15.08
$16.35 - $21.05
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise price range, minimum (in dollars per share)	16.35
Exercise price range, maximum (in dollars per share)	$ 21.05
Options outstanding, Number of shares outstanding (in shares) \| shares	621
Options outstanding, Weighted-average remaining contractual life	8 years 8 months 19 days
Options outstanding, Weighted-average exercise price (in dollars per share)	$ 17.76
Options exercisable, Number of shares (in shares) \| shares	299
Options exercisable, Weighted-average exercise price (in dollars per share)	$ 17.46
$21.10 - $25.36
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise price range, minimum (in dollars per share)	21.10
Exercise price range, maximum (in dollars per share)	$ 25.36
Options outstanding, Number of shares outstanding (in shares) \| shares	360
Options outstanding, Weighted-average remaining contractual life	6 years 11 months 1 day
Options outstanding, Weighted-average exercise price (in dollars per share)	$ 22.67
Options exercisable, Number of shares (in shares) \| shares	0
Options exercisable, Weighted-average exercise price (in dollars per share)	$ 0.00
$25.95 - $25.95
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise price range, minimum (in dollars per share)	25.95
Exercise price range, maximum (in dollars per share)	$ 25.95
Options outstanding, Number of shares outstanding (in shares) \| shares	116
Options outstanding, Weighted-average remaining contractual life	9 years 9 months 26 days
Options outstanding, Weighted-average exercise price (in dollars per share)	$ 25.95
Options exercisable, Number of shares (in shares) \| shares	0
Options exercisable, Weighted-average exercise price (in dollars per share)	$ 0.00

Stockholders' Equity (Summary of Restricted Stock Unit Activity and Weighted Average Exercise Price) (Details) - Restricted Stock Units (RSUs) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2019 USD ($) $ / shares shares
Number of Shares (in thousands)
Beginning balance outstanding (in shares) \| shares	2,690
Awarded (in shares) \| shares	386
Released (in shares) \| shares	(415)
Forfeited (in shares) \| shares	(87)
Non-vested and outstanding at end of period (in shares) \| shares	2,574
Expected to vest (in shares) \| shares	1,816
Weighted Average Grant Date Fair Value (usd per share)
Beginning balance outstanding (in dollars per share) \| $ / shares	$ 15.81
Awarded (in dollars per share) \| $ / shares	25.07
Released (in dollars per share) \| $ / shares	12.18
Forfeited (in dollars per share) \| $ / shares	15.87
Non-vested and outstanding at end of period (in dollars per share) \| $ / shares	17.61
Expected to vest (in dollars per share) \| $ / shares	$ 16.80
Aggregate Fair Value (in thousands)
Non-vested and outstanding at March 31 2019 \| $	$ 74,719
Expected to vest \| $	$ 52,686

Restructuring (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018	Dec. 31, 2017
Restructuring and Related Activities [Abstract]
Restructuring expense	$ 279	$ 178
Restructuring liability	$ 72		$ 977	$ 2,338

Restructuring (Restructuring Liability) (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Restructuring Reserve [Roll Forward]
Balance, Beginning of the year	$ 977	$ 2,338
Severance and other associated costs	279	4,468
Cash payments	(1,184)	(5,829)
Balance, End of period	$ 72	$ 977

Restructuring (Restructuring Expense) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Restructuring Cost and Reserve [Line Items]
Restructuring costs	$ 279	$ 178
Severance and other associated costs
Restructuring Cost and Reserve [Line Items]
Restructuring costs	$ 279
Restructuring costs		$ 178