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Upon termination of the Merger Agreement under certain specified circumstances, Cloudera or Hortonworks may be required to pay the other party a termination fee of $95.0 million or $65.0 million, respectively. In addition, if the Merger Agreement is terminated by Cloudera or Hortonworks as a result of the other party’s failure to obtain stockholder approval, then the non-terminating party may be required to reimburse the terminating party for its documented out-of-pocket expenses, up to a maximum amount of $20.0 million (if the Merger Agreement is terminated as a result of a failure of Hortonworks to obtain stockholder approval) or $30.0 million (if the Merger Agreement is terminated as a result of a failure of Cloudera to obtain stockholder approval).
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<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">The following table summarizes the investments
in <font style="WHITE-SPACE: nowrap"><font style="WHITE-SPACE: nowrap">available-for-sale</font></font> securities
(in thousands):</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 12pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
 </p>
<table style="FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" cellspacing="0" cellpadding="0" width="92%" align="center" border="0">
<tr style="COLOR: white; LINE-HEIGHT: 0pt; VISIBILITY: hidden">
<td width="75%"></td>
<td valign="bottom" width="4%"></td>
<td></td>
<td style="FONT-SIZE: 8pt" nowrap="nowrap"></td>
<td></td>
<td valign="bottom" width="4%"></td>
<td></td>
<td style="FONT-SIZE: 8pt" nowrap="nowrap"></td>
<td></td>
<td valign="bottom" width="4%"></td>
<td></td>
<td style="FONT-SIZE: 8pt" nowrap="nowrap"></td>
<td></td>
<td valign="bottom" width="4%"></td>
<td></td>
<td style="FONT-SIZE: 8pt" nowrap="nowrap"></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; break-inside: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="14" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>September 30, 2018</b></font></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 8pt; break-inside: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Gross<br />
Amortized<br />
Costs</b></font></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Gross<br />
Unrealized<br />
Gains</b></font></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Gross<br />
Unrealized<br />
Losses</b></font></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Estimated<br />
Fair Value</b></font></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
U.S. Treasury securities</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">4,155</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">8</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(4</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">4,159</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Certificates of deposit</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">6,500</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">6,500</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Commercial paper</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">12,100</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(4</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">12,096</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Corporate notes and bonds</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">27,037</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">6</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(30</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">27,013</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Total investments in <font style="WHITE-SPACE: nowrap"><font style="WHITE-SPACE: nowrap">available-for-sale</font></font> securities</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman""> 49,792</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman""> 14</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(38</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman""> 49,768</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 1pt">
<td height="16"></td>
<td height="16" colspan="16"></td>
</tr>
<tr style="FONT-SIZE: 8pt; break-inside: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="14" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>December 31,
2017</b></font></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 8pt; break-inside: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Gross<br />
Amortized<br />
Costs</b></font></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Gross<br />
Unrealized<br />
Gains</b></font></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Gross<br />
Unrealized<br />
Losses</b></font></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Estimated<br />
Fair Value</b></font></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
U.S. Treasury bills</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman""> 8,612</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman""> 4</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman""> —</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman""> 8,616</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Certificates of deposit</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">750</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">750</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Commercial paper</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">3,498</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(1</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">3,497</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Corporate notes and bonds</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">5,806</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(1</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">5,805</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Total investments in <font style="WHITE-SPACE: nowrap"><font style="WHITE-SPACE: nowrap">available-for-sale</font></font> securities</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman""> 18,666</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman""> 4</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(2</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman""> 18,668</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
</table>
<br class="Apple-interchange-newline" /></div>
24600000
Contract costs that are incurred in excess of those relating to an underlying transaction are not considered commensurate with recognition of revenue as performance obligations are satisfied, and are amortized on a straight-line basis over the anticipated average customer life of five years.
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-TOP: 18pt">
<b><i>Basis of Presentation and Consolidation</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-TOP: 6pt">
The unaudited condensed consolidated financial statements have been
prepared in accordance with generally accepted accounting
principles (“GAAP”) in the United States
(“U.S.”) and applicable rules and regulations of the
Securities and Exchange Commission (“SEC”) regarding
interim financial reporting. These financial statements have been
prepared on the same basis as the Company’s annual financial
statements and, in the opinion of management, reflect all normal
recurring adjustments, except as otherwise disclosed, that are
necessary for a fair statement of the Company’s results for
the interim periods presented. These interim financial results are
not necessarily indicative of results expected for the full fiscal
year or for any subsequent interim period.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-TOP: 12pt">
The condensed consolidated financial statements and related
financial information should be read in conjunction with the
audited financial statements and the related notes included in the
Company’s Annual Report on Form <font style="WHITE-SPACE: nowrap">10-K</font> for the year ended
December 31, 2017. Certain information and footnote
disclosures normally included in financial statements prepared in
accordance with U.S. GAAP have been condensed or omitted. The
condensed consolidated balance sheet as of December 31, 2017
was derived from the Company’s audited financial statements
for the year ended December 31, 2017, but does not include all
disclosures required by U.S. GAAP as permitted by the applicable
rules and regulations of the SEC regarding interim financial
reporting. However, the Company believes the disclosures are
adequate to make the information presented not misleading. The
condensed consolidated financial statements include the accounts of
the Company and its wholly owned subsidiaries. All intercompany
transactions and balances have been eliminated in
consolidation.</p>
</div>
0
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 18pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
<b>4. COMMITMENTS AND CONTINGENCIES</b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
<b><i>Operating Leases</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">The Company has many operating lease agreements
primarily involving office space facilities. These leases
are <font style="WHITE-SPACE: nowrap">non-cancelable</font> with
original lease periods up to 15 years, which expire between 2018
and 2031. Some of these operating lease agreements have free or
adjustable rent provisions. Lease expense is recognized on a
straight-line basis over the lease term. The Company subleases some
excess capacity to subtenants under <font style="WHITE-SPACE: nowrap">non-cancelable</font> operating
leases.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 12pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">As of September 30, 2018, future minimum lease
commitments under <font style="WHITE-SPACE: nowrap">non-cancelable</font> leases
are as follows (in thousands):</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 12pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
 </p>
<table style="FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" cellspacing="0" cellpadding="0" width="84%" align="center" border="0">
<tr style="COLOR: white; LINE-HEIGHT: 0pt; VISIBILITY: hidden">
<td width="90%"></td>
<td valign="bottom" width="4%"></td>
<td></td>
<td style="FONT-SIZE: 8pt" nowrap="nowrap"></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; break-inside: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Leases</b></font></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Three months ending December 31, 2018</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">1,170</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Years ending December 31, 2019</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">5,857</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
2020</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">5,873</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
2021</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">5,382</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
2022</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">4,762</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Thereafter</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">17,889</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Gross lease payments</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">40,933</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Less: <font style="WHITE-SPACE: nowrap">Non-cancelable</font> subtenant
receipts</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(391</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Net lease payments</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">40,542</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
</table>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">Rent expense incurred under operating leases was
$2.3 million and $2.5 million for the three months ended
September 30, 2018 and 2017, respectively, and
$6.7 million and $7.3 million for the nine months ended
September 30, 2018 and 2017, respectively.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 18pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
<b><i>Legal Proceedings</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">From time to time, the Company is party to various
litigation and administrative proceedings relating to claims
arising from its operations in the normal course of business. Based
on the information presently available, including discussion with
legal counsel, management believes that resolution of these matters
will not have a material effect on the Company’s business,
results of operations, financial condition or cash flows.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">On April 13, 2017, a derivative action was
filed in the Court of Chancery of the State of Delaware,
captioned <i>Steinberg v. Bearden, et al.</i>,
Case No. <font style="WHITE-SPACE: nowrap">2017-0286-AGB,</font> purportedly
filed by a Hortonworks shareholder on behalf of the Company against
certain of the Company’s directors and executive officers.
The derivative complaint alleges that the defendants breached their
fiduciary duties to the Company and allegedly made false or
misleading statements regarding the Company’s business and
operations. The derivative action includes claims for, among other
things, unspecified damages in favor of the Company, corporate
actions to purportedly improve the Company’s corporate
governance, and an award of costs and expenses to the derivative
plaintiffs, including attorneys’ fees. On May 30, 2018,
the court granted defendants’ motion to dismiss with
prejudice.</p>
</div>
Each share of common stock is entitled to one vote for matters to be voted on by the stockholders of the Company.
-8290000
-115762000
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-TOP: 6pt" align="justify">The following table reflects the Company’s
contract assets and contract liabilities (in thousands):</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 12pt; MARGIN-TOP: 0pt">
 </p>
<br class="Apple-interchange-newline" />
<table style="FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="92%" align="center" border="0">
<tr style="COLOR: white; LINE-HEIGHT: 0pt; VISIBILITY: hidden">
<td width="88%"></td>
<td valign="bottom" width="4%"></td>
<td></td>
<td nowrap="nowrap"></td>
<td></td>
<td valign="bottom" width="4%"></td>
<td></td>
<td nowrap="nowrap"></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; break-inside: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>September 30,<br />
2018</b></font></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>January 1,<br />
2018</b></font></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Accounts receivable, net</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">78,374</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">112,073</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Contract assets</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">530</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">2,457</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Short-term deferred revenue</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">163,077</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">162,299</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Other contract liabilities</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">15,829</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">13,071</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Long-term deferred revenue</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">86,279</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">77,138</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Total contract liabilities</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">265,185</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">252,508</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td style="FONT-SIZE: 1px; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; BACKGROUND-COLOR: rgb(255,255,255); TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" valign="bottom"></td>
<td style="FONT-SIZE: 1px; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; BACKGROUND-COLOR: rgb(255,255,255); TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" valign="bottom">  </td>
<td style="FONT-SIZE: 1px; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; BACKGROUND-COLOR: rgb(255,255,255); TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td style="FONT-SIZE: 1px; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; BACKGROUND-COLOR: rgb(255,255,255); TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td style="FONT-SIZE: 1px; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; BACKGROUND-COLOR: rgb(255,255,255); TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
 </td>
<td style="FONT-SIZE: 1px; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; BACKGROUND-COLOR: rgb(255,255,255); TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" valign="bottom">  </td>
<td style="FONT-SIZE: 1px; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; BACKGROUND-COLOR: rgb(255,255,255); TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td style="FONT-SIZE: 1px; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; BACKGROUND-COLOR: rgb(255,255,255); TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
</tr>
</table>
</div>
263000
67702000
69966000
-61639000
--12-31
<div>
<p style="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">
<b>5. DEBT</b></p>
<p style="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">
<b><i>Amended and Restated Revolving Credit Agreement</i></b></p>
<p style="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">
On November 2, 2016, the Company entered into a
$30.0 million senior secured revolving credit facility (the
“Original Credit Agreement”) with Silicon Valley Bank
(the “Bank”), and on November 1, 2017, the Company
amended its Original Credit Agreement to increase its borrowing
capacity to $50.0 million, documented as an amendment and
restatement of its <font style="white-space:nowrap">two-year</font>
senior secured revolving credit facility (as amended and restated,
the “Amended and Restated Credit Agreement”). Amounts
outstanding under the Amended and Restated Credit Agreement are
payable on or before November 1, 2020 and will accrue interest
per annum at a rate equal to the London Interbank Offered Rate plus
3.50 percent. Pursuant to the terms of the Amended and
Restated Credit Agreement, the Company agreed to pay an annual
facility fee equal to 0.50 percent of the aggregate amount of
the revolving credit facility commitments and an unused line fee of
0.45 percent per annum on the unused commitments. In addition,
the Company is required to maintain a balance of at least
$15.0 million on account with the Bank. The Amended and
Restated Credit Facility currently has no subsidiary
guarantors.</p>
<p style="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">
The Amended and Restated Credit Agreement contains customary
negative covenants and certain financial covenants that require the
Company to maintain a minimum trailing <font style="white-space:nowrap">12-month</font> <font style="white-space:nowrap">non-GAAP</font> operating profit and a minimum
adjusted quick ratio.</p>
<p style="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">
As of September 30, 2018, the Company had no borrowings
outstanding under the Amended and Restated Credit Agreement and was
in compliance with all financial covenants.</p>
</div>
The Amended and Restated Credit Agreement contains customary negative covenants and certain financial covenants that require the Company to maintain a minimum trailing 12-month non-GAAP operating profit and a minimum adjusted quick ratio.
6388000
Q3
2018
10-Q
The Company has many operating lease agreements primarily involving office space facilities. These leases are non-cancelable with original lease periods up to 15 years, which expire between 2018 and 2031. Some of these operating lease agreements have free or adjustable rent provisions. Lease expense is recognized on a straight-line basis over the lease term. The Company subleases some excess capacity to subtenants under non-cancelable operating leases.
-1.45
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 18pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
<b>8. NET LOSS PER SHARE OF COMMON STOCK</b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">Basic net loss per share of common stock is
calculated by dividing net loss by the weighted-average number of
shares of common stock outstanding during the period, less
restricted common stock and common stock issued that is subject to
repurchase, and excludes any dilutive effects of share-based
awards. Diluted net loss per share of common stock is computed
giving effect to all potential dilutive shares of common stock. As
the Company had net losses for the three and nine months ended
September 30, 2018 and 2017, all potential shares of common
stock were determined to be anti-dilutive.</p>
<p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 1px; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">The following table sets forth the computation of
basic and diluted net loss per share of common stock (in thousands,
except share and per share amounts):</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 12pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
 </p>
<table style="FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" cellspacing="0" cellpadding="0" width="92%" align="center" border="0">
<tr style="COLOR: white; LINE-HEIGHT: 0pt; VISIBILITY: hidden">
<td width="56%"></td>
<td valign="bottom" width="2%"></td>
<td></td>
<td nowrap="nowrap"></td>
<td></td>
<td valign="bottom" width="2%"></td>
<td></td>
<td nowrap="nowrap"></td>
<td></td>
<td valign="bottom" width="2%"></td>
<td></td>
<td nowrap="nowrap"></td>
<td></td>
<td valign="bottom" width="2%"></td>
<td></td>
<td nowrap="nowrap"></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; break-inside: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="6" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Three Months Ended September 30,</b></font></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="6" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Nine Months Ended September 30,</b></font></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 8pt; break-inside: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>2018</b></font></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>2017</b></font></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>2018</b></font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>2017</b></font></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Net loss</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(31,574</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(45,368</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(114,826</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom"> </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(156,279</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Weighted-average shares used in computing net loss per share of
common stock</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">81,797,566</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">67,920,575</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">79,166,112</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">64,747,020</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Net loss per share, basic and diluted</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(0.39</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(0.67</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(1.45</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom"> </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(2.41</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
</table>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">The following outstanding shares of common stock
equivalents were excluded from the computation of diluted net loss
per share of common stock for the periods presented since including
them would have been anti-dilutive:</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 12pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
 </p>
<table style="FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" cellspacing="0" cellpadding="0" width="76%" align="center" border="0">
<tr style="COLOR: white; LINE-HEIGHT: 0pt; VISIBILITY: hidden">
<td width="74%"></td>
<td valign="bottom" width="3%"></td>
<td></td>
<td nowrap="nowrap"></td>
<td></td>
<td valign="bottom" width="3%"></td>
<td></td>
<td nowrap="nowrap"></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; break-inside: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="6" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Nine Months Ended September 30,</b></font></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 8pt; break-inside: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>2018</b></font></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>2017</b></font></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Outstanding stock options</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">3,325,356</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">5,345,379</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Unvested restricted stock</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">137,919</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Unvested RSUs</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">8,598,058</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">11,790,527</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Unvested PSUs</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">714,711</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">858,699</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Estimated ESPP shares to be issued</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">52,035</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">68,212</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Common stock subject to repurchase</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">15,553</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Common stock warrants</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">3,250,000</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Exercise and conversion of common stock warrants</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">476,368</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Total</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">12,690,160</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">21,942,657</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
</table>
<br class="Apple-interchange-newline" /></div>
-0.013
0001610532
-1104000
Hortonworks, Inc.
false
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 18pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
<b>2. FAIR VALUE MEASUREMENTS</b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">The following table summarizes the investments
in <font style="WHITE-SPACE: nowrap"><font style="WHITE-SPACE: nowrap">available-for-sale</font></font> securities
(in thousands):</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 12pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
 </p>
<table style="FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" cellspacing="0" cellpadding="0" width="92%" align="center" border="0">
<tr style="COLOR: white; LINE-HEIGHT: 0pt; VISIBILITY: hidden">
<td width="75%"></td>
<td valign="bottom" width="4%"></td>
<td></td>
<td style="FONT-SIZE: 8pt" nowrap="nowrap"></td>
<td></td>
<td valign="bottom" width="4%"></td>
<td></td>
<td style="FONT-SIZE: 8pt" nowrap="nowrap"></td>
<td></td>
<td valign="bottom" width="4%"></td>
<td></td>
<td style="FONT-SIZE: 8pt" nowrap="nowrap"></td>
<td></td>
<td valign="bottom" width="4%"></td>
<td></td>
<td style="FONT-SIZE: 8pt" nowrap="nowrap"></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; break-inside: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="14" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>September 30, 2018</b></font></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 8pt; break-inside: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Gross<br />
Amortized<br />
Costs</b></font></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Gross<br />
Unrealized<br />
Gains</b></font></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Gross<br />
Unrealized<br />
Losses</b></font></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Estimated<br />
Fair Value</b></font></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
U.S. Treasury securities</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">4,155</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">8</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(4</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">4,159</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Certificates of deposit</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">6,500</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">6,500</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Commercial paper</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">12,100</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(4</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">12,096</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Corporate notes and bonds</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">27,037</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">6</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(30</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">27,013</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Total investments in <font style="WHITE-SPACE: nowrap"><font style="WHITE-SPACE: nowrap">available-for-sale</font></font> securities</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman""> 49,792</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman""> 14</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(38</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman""> 49,768</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 1pt">
<td height="16"></td>
<td height="16" colspan="16"></td>
</tr>
<tr style="FONT-SIZE: 8pt; break-inside: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="14" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>December 31,
2017</b></font></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 8pt; break-inside: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Gross<br />
Amortized<br />
Costs</b></font></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Gross<br />
Unrealized<br />
Gains</b></font></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Gross<br />
Unrealized<br />
Losses</b></font></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Estimated<br />
Fair Value</b></font></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
U.S. Treasury bills</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman""> 8,612</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman""> 4</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman""> —</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman""> 8,616</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Certificates of deposit</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">750</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">750</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Commercial paper</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">3,498</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(1</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">3,497</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Corporate notes and bonds</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">5,806</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(1</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">5,805</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Total investments in <font style="WHITE-SPACE: nowrap"><font style="WHITE-SPACE: nowrap">available-for-sale</font></font> securities</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman""> 18,666</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman""> 4</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(2</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman""> 18,668</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
</table>
<p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 1px; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">The contractual maturities of investments
in <font style="WHITE-SPACE: nowrap"><font style="WHITE-SPACE: nowrap">available-for-sale</font></font> securities
were as follows (in thousands):</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 12pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
 </p>
<table style="FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" cellspacing="0" cellpadding="0" width="92%" align="center" border="0">
<tr style="COLOR: white; LINE-HEIGHT: 0pt; VISIBILITY: hidden">
<td width="76%"></td>
<td valign="bottom" width="4%"></td>
<td></td>
<td style="FONT-SIZE: 8pt" nowrap="nowrap"></td>
<td></td>
<td valign="bottom" width="4%"></td>
<td></td>
<td style="FONT-SIZE: 8pt" nowrap="nowrap"></td>
<td></td>
<td valign="bottom" width="4%"></td>
<td></td>
<td style="FONT-SIZE: 8pt" nowrap="nowrap"></td>
<td></td>
<td valign="bottom" width="4%"></td>
<td></td>
<td style="FONT-SIZE: 8pt" nowrap="nowrap"></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; break-inside: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="6" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>September 30, 2018</b></font></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="6" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>December 31, 2017</b></font></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 8pt; break-inside: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Gross<br />
Amortized<br />
Cost</b></font></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Estimated<br />
Fair Value</b></font></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Gross<br />
Amortized<br />
Cost</b></font></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Estimated<br />
Fair Value</b></font></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Due within one year</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">46,242</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">46,227</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">18,666</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">18,668</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Due after one year through five years</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">3,550</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">3,541</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Total investments in <font style="WHITE-SPACE: nowrap"><font style="WHITE-SPACE: nowrap">available-for-sale</font></font> securities</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">49,792</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">49,768</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">18,666</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">18,668</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
</table>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">The following table sets forth the fair value of
the Company’s financial assets measured on a recurring basis
by level within the fair value hierarchy (in thousands):</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 12pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
 </p>
<table style="FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" cellspacing="0" cellpadding="0" width="92%" align="center" border="0">
<tr style="COLOR: white; LINE-HEIGHT: 0pt; VISIBILITY: hidden">
<td width="74%"></td>
<td valign="bottom" width="3%"></td>
<td></td>
<td nowrap="nowrap"></td>
<td></td>
<td valign="bottom" width="3%"></td>
<td></td>
<td nowrap="nowrap"></td>
<td></td>
<td valign="bottom" width="3%"></td>
<td></td>
<td nowrap="nowrap"></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; break-inside: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="10" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>September 30, 2018</b></font></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 8pt; break-inside: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Level 1</b></font></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Level 2</b></font></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Total</b></font></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Cash equivalents:</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Money market funds</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">10,268 </font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">— </font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">10,268 </font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Certificates of deposit</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">250</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">250</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Short-term investments:</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
U.S. Treasury securities</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">3,585</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">3,585</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Certificates of deposit</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">6,250</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">6,250</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Commercial paper</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">12,096</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">12,096</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Corporate notes and bonds</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">24,046</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">24,046</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Long-term investments:</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
U.S. Treasury securities</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">574</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">574</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Certificates of deposit</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Corporate notes and bonds</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">2,967</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">2,967</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Total financial assets</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">14,427</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">45,609</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">60,036</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 1pt">
<td height="16"></td>
<td height="16" colspan="12"></td>
</tr>
<tr style="FONT-SIZE: 8pt; break-inside: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="10" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>December 31,
2017</b></font></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 8pt; break-inside: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Level 1</b></font></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Level 2</b></font></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Total</b></font></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Cash equivalents:</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Money market funds</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">25,947</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">25,947</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
U.S. Treasury bills</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">3,599</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">3,599</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Commercial paper</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">3,497</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">3,497</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Corporate notes and bonds</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">1,799</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">1,799</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Short-term investments:</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
U.S. Treasury bills</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">5,017</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">5,017</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Certificates of deposit</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">750</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">750</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Corporate notes and bonds</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">4,006</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">4,006</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Total financial assets</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">34,563</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">10,052</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">44,615</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
</table>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">Where applicable, the Company uses quoted market
prices in active markets for identical assets to determine fair
value. This pricing methodology applies to Level 1
investments, which are composed of money market funds and U.S.
Treasury securities. If quoted prices in active markets for
identical assets are not available, then the Company uses quoted
prices for similar assets or inputs other than quoted prices that
are observable, either directly or indirectly. These investments
are included in Level 2 and consist of certificates of
deposit, commercial paper and corporate notes and bonds. Commercial
paper is valued using market prices, if available, adjusting for
accretion of the purchase price to face value at maturity. The
carrying amounts of accounts receivable, prepaid expenses and other
current assets, accounts payable, accrued compensation and benefits
and accrued expenses and other current liabilities approximate fair
value. In certain cases, where there is limited activity or less
transparency around inputs to valuation, securities would be
classified as Level 3 within the valuation hierarchy.</p>
<p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 1px; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">A financial instrument’s categorization
within the valuation hierarchy is based upon the lowest level of
input that is significant to the fair value measurement. The
Company’s assessment of the significance of a particular
input to the fair value measurement in its entirety requires
management to make judgments and consider factors specific to the
asset or liability. During the nine months ended September 30,
2018 and the year ended December 31, 2017, the Company did not
make any transfers between Level 1 or Level 2
investments. As of September 30, 2018 and December 31,
2017, the Company did not have any Level 3 financial assets or
liabilities.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">Gross unrealized gains and losses were not material
as of September 30, 2018 and December 31, 2017. Realized
gains and losses were not material for both the three and nine
months ended September 30, 2018 and 2017. As of
September 30, 2018 and December 31, 2017, there were no
securities that were in an unrealized loss position for more than
12 months.</p>
</div>
2018-09-30
true
true
Accelerated Filer
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">The following table sets forth the fair value of
the Company’s financial assets measured on a recurring basis
by level within the fair value hierarchy (in thousands):</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 12pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
 </p>
<table style="FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" cellspacing="0" cellpadding="0" width="92%" align="center" border="0">
<tr style="COLOR: white; LINE-HEIGHT: 0pt; VISIBILITY: hidden">
<td width="74%"></td>
<td valign="bottom" width="3%"></td>
<td></td>
<td nowrap="nowrap"></td>
<td></td>
<td valign="bottom" width="3%"></td>
<td></td>
<td nowrap="nowrap"></td>
<td></td>
<td valign="bottom" width="3%"></td>
<td></td>
<td nowrap="nowrap"></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; break-inside: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="10" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>September 30, 2018</b></font></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 8pt; break-inside: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Level 1</b></font></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Level 2</b></font></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Total</b></font></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Cash equivalents:</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Money market funds</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">10,268 </font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">— </font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">10,268 </font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Certificates of deposit</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">250</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">250</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Short-term investments:</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
U.S. Treasury securities</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">3,585</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">3,585</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Certificates of deposit</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">6,250</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">6,250</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Commercial paper</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">12,096</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">12,096</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Corporate notes and bonds</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">24,046</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">24,046</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Long-term investments:</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
U.S. Treasury securities</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">574</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">574</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Certificates of deposit</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Corporate notes and bonds</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">2,967</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">2,967</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Total financial assets</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">14,427</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">45,609</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">60,036</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 1pt">
<td height="16"></td>
<td height="16" colspan="12"></td>
</tr>
<tr style="FONT-SIZE: 8pt; break-inside: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="10" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>December 31,
2017</b></font></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 8pt; break-inside: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Level 1</b></font></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Level 2</b></font></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Total</b></font></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Cash equivalents:</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Money market funds</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">25,947</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">25,947</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
U.S. Treasury bills</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">3,599</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">3,599</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Commercial paper</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">3,497</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">3,497</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Corporate notes and bonds</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">1,799</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">1,799</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Short-term investments:</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
U.S. Treasury bills</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">5,017</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">5,017</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Certificates of deposit</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">750</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">750</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Corporate notes and bonds</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">4,006</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">4,006</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Total financial assets</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">34,563</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">10,052</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">44,615</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
</table>
</div>
P5Y
778000
72199000
-113299000
1527000
7000
793000
182612000
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-TOP: 18pt">
<b>9. INCOME TAXES</b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-TOP: 6pt">
The effective tax rate for the three months ended
September 30, 2018 was (1.6) percent compared to (0.9) percent
for the same period of 2017. The effective tax rate for the nine
months ended September 30, 2018 was (1.3) percent compared to
(0.7) percent for the same period of 2017. The income tax
expense for the three and nine months ended September 30, 2018
and 2017 was determined based upon estimates of the Company’s
effective income tax rates in various jurisdictions. The difference
between the consolidated effective income tax rate and the U.S.
federal statutory rate is primarily attributable to state income
taxes, foreign income taxes, the effect of certain permanent
differences and full valuation allowance against net deferred tax
assets.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-TOP: 12pt">
On December 22, 2017, the Tax Cuts and Jobs Act (the
“Act”) was signed into law. The SEC issued Staff
Accounting Bulletin No. 118 (“SAB 118”) on
December 23, 2017 regarding application of the Act which was
also codified by the FASB upon the issuance on ASU <font style="WHITE-SPACE: nowrap">No. 2018-05,</font> <i>Income Taxes
(Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff
Accounting Bulletin No.</i><i> 118 (SEC Update)</i> in March
2018. The Act provides a “measurement period,” lasting
through December 22, 2018, to allow registrants time to
obtain, prepare and analyze information to complete the accounting
required under ASC 740,<i> Income Taxes</i>. While the Company
was able to make reasonable estimates under SAB 118 for the impact
of the reduction in the corporate tax rate and the deemed
repatriation transition tax, the Company has not completed its
analysis of other changes to the Act. The final impacts of the Act
may differ, possibly materially, due to, among other things,
changes in interpretations of the Act, any legislative action to
address questions that arise because of the Act, any changes in
accounting standards for income taxes or related interpretations in
response to the Act or any updates or changes to estimates the
Company has utilized under SAB 118. The Company will continue to
analyze the impact of the Act as additional information and
guidance is provided and complete its analysis within the
measurement period, which the Company anticipates will end in
December 2018, in accordance with SAB 118.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-TOP: 12pt">
On July 24, 2018, the U.S. Court of Appeals for the
Ninth Circuit (“Ninth Circuit Court of Appeals”)
overturned the U.S. Tax Court’s unanimous 2015 decision
in<i> Altera v. Commissioner</i>, holding that the Internal
Revenue Service (“IRS”) did not violate the rulemaking
procedures required by the Administrative Procedures Act.
In<i> Altera v. Commissioner</i>, the taxpayer challenged
IRS regulations that required participants in qualified cost
sharing arrangements to share stock-based compensation costs. The
U.S. Tax Court had invalidated those regulations, in part because
the Treasury Department (“Treasury”) failed to
adequately consider significant taxpayer comments when adopting
them. The Ninth Circuit Court of Appeals decision reverses the U.S.
Tax Court’s decision on this issue, holding that the
Treasury’s rule was not arbitrary and capricious because
Treasury provided a sufficient basis for its decision making. On
August 7, 2018, the July 24, 2018 decision was withdrawn.
On October 16, 2018, a rehearing was held, however, no
decision has been made by the court. As of September 30, 2018,
there has been no further updates to this case or the
Company’s position.</p>
</div>
12453000
-32586000
-1920000
22447000
-5941000
-269000
1758000
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 18pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
<b>3. INTANGIBLE ASSETS, NET</b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">The following table summarizes the Company’s
intangible assets, net (in thousands):</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 12pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
 </p>
<table style="FONT-SIZE: 8pt; FONT-FAMILY: "Times New Roman"; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" cellspacing="0" cellpadding="0" width="84%" align="center" border="0">
<tr style="COLOR: white; LINE-HEIGHT: 0pt; VISIBILITY: hidden">
<td width="81%"></td>
<td valign="bottom" width="4%"></td>
<td></td>
<td nowrap="nowrap"></td>
<td></td>
<td valign="bottom" width="4%"></td>
<td></td>
<td nowrap="nowrap"></td>
<td></td>
<td valign="bottom" width="4%"></td>
<td></td>
<td nowrap="nowrap"></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; break-inside: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="10" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>September 30, 2018</b></font></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 8pt; break-inside: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Gross Carrying<br />
Amount</b></font></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Accumulated<br />
Amortization</b></font></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Net</b></font></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Developed technology</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">4,395</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(2,810</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">1,585</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Intangible assets, net</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">4,395</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(2,810</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">1,585</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 1pt">
<td height="16"></td>
<td height="16" colspan="12"></td>
</tr>
<tr style="FONT-SIZE: 8pt; break-inside: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="10" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>December 31,
2017</b></font></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 8pt; break-inside: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Gross Carrying<br />
Amount</b></font></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Accumulated<br />
Amortization</b></font></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Net</b></font></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Developed technology</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">4,395</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(2,153</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">2,242</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Intangible assets, net</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">4,395</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(2,153</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">2,242</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
</table>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">The amortizable intangible assets have a useful
life of five years. For both the three months ended
September 30, 2018 and 2017, the Company recognized
amortization expense for intangible assets of $0.2 million and
for both the nine months ended September 30, 2018 and 2017,
the Company recognized amortization expense for intangible assets
of $0.7 million in operating expenses. Based on the net
carrying amount of intangibles subject to amortization, the
estimated amortization expense for the remaining three months of
2018 and each of the succeeding <font style="WHITE-SPACE: nowrap">12-month</font>periods ending
December 31, 2019 and 2020 is $0.2 million,
$0.9 million and $0.5 million, respectively.</p>
</div>
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">The contractual maturities of investments
in <font style="WHITE-SPACE: nowrap"><font style="WHITE-SPACE: nowrap">available-for-sale</font></font> securities
were as follows (in thousands):</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 12pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
 </p>
<table style="FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" cellspacing="0" cellpadding="0" width="92%" align="center" border="0">
<tr style="COLOR: white; LINE-HEIGHT: 0pt; VISIBILITY: hidden">
<td width="76%"></td>
<td valign="bottom" width="4%"></td>
<td></td>
<td style="FONT-SIZE: 8pt" nowrap="nowrap"></td>
<td></td>
<td valign="bottom" width="4%"></td>
<td></td>
<td style="FONT-SIZE: 8pt" nowrap="nowrap"></td>
<td></td>
<td valign="bottom" width="4%"></td>
<td></td>
<td style="FONT-SIZE: 8pt" nowrap="nowrap"></td>
<td></td>
<td valign="bottom" width="4%"></td>
<td></td>
<td style="FONT-SIZE: 8pt" nowrap="nowrap"></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; break-inside: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="6" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>September 30, 2018</b></font></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="6" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>December 31, 2017</b></font></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 8pt; break-inside: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Gross<br />
Amortized<br />
Cost</b></font></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Estimated<br />
Fair Value</b></font></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Gross<br />
Amortized<br />
Cost</b></font></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Estimated<br />
Fair Value</b></font></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Due within one year</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">46,242</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">46,227</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">18,666</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">18,668</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Due after one year through five years</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">3,550</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">3,541</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Total investments in <font style="WHITE-SPACE: nowrap"><font style="WHITE-SPACE: nowrap">available-for-sale</font></font> securities</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">49,792</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">49,768</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">18,666</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">18,668</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
</table>
<br class="Apple-interchange-newline" /></div>
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">The following table summarizes the Company’s
tangible long-lived assets by country (in thousands):</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 12pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
 </p>
<table style="FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" cellspacing="0" cellpadding="0" width="92%" align="center" border="0">
<tr style="COLOR: white; LINE-HEIGHT: 0pt; VISIBILITY: hidden">
<td width="90%"></td>
<td valign="bottom" width="3%"></td>
<td></td>
<td style="FONT-SIZE: 8pt" nowrap="nowrap"></td>
<td></td>
<td valign="bottom" width="3%"></td>
<td></td>
<td style="FONT-SIZE: 8pt" nowrap="nowrap"></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; break-inside: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>September 30, 2018</b></font></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>December 31, 2017</b></font></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
United States</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">6,746</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">10,671</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Ireland</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">1,977</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">2,120</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
India</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">2,175</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">2,578</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Rest of world</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">1,471</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">1,014</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Total property and equipment, net</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">12,369</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">16,383</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
</table>
</div>
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 18pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
<b><i>Recently Issued Accounting Pronouncements</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">In June 2018, the Financial Accounting Standards
Board (“FASB”) issued Accounting Standards Update
(“ASU”) <font style="WHITE-SPACE: nowrap">No. 2018-07,</font> <i>Compensation-Stock
Compensation (Topic 718): Improvements to Nonemployee Share-Based
Payment Accounting, </i>which expands the scope
of Topic 718 to include shared-based payment transactions for
acquiring goods and services from nonemployees. Under the standard,
most of the guidance on such payments to nonemployees would be
aligned with the requirements for share-based payments granted to
employees. The ASU is effective for public companies for fiscal
years beginning after December 15, 2018, with early adoption
permitted. The Company is currently evaluating the effect that
adoption of ASU <font style="WHITE-SPACE: nowrap">2018-07</font> will have on
its condensed consolidated financial statements.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">In February 2016, FASB issued
ASU <font style="WHITE-SPACE: nowrap">No. 2016-02,</font> <i>Leases
(Topic 842),</i> which, for operating leases,
requires a lessee to recognize a <font style="WHITE-SPACE: nowrap"><font style="WHITE-SPACE: nowrap">right-of-use</font></font> asset
and a lease liability, initially measured at the present value of
the lease payments, in its balance sheet. The standard also
requires a lessee to recognize a single lease cost, calculated so
that the cost of the lease is allocated over the lease term, on a
generally straight-line basis. In July 2018, the
FASB <font style="WHITE-SPACE: nowrap">issued ASU 2018-10</font><i>,
Codification Improvements to Topic 842,
Leases</i> <font style="WHITE-SPACE: nowrap">and ASU 2018-11,</font><i> Leases
(Topic 842): Targeted Improvements</i><font style="WHITE-SPACE: nowrap">. ASU 2018-10</font> clarifies
certain areas <font style="WHITE-SPACE: nowrap">within ASU 2016-02.</font></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">Prior <font style="WHITE-SPACE: nowrap">to ASU 2018-11,</font> a
modified retrospective transition was required for financing or
operating leases existing at or entered into after the beginning of
the earliest comparative period presented in the
financial <font style="WHITE-SPACE: nowrap">statements. ASU 2018-11 allows</font> entities
an additional transition method to the existing requirements
whereby an entity could adopt the
provisions <font style="WHITE-SPACE: nowrap">of ASU 2016-02</font> by
recognizing a cumulative-effect adjustment to the opening balance
of retained earnings in the period of adoption without adjustment
to the financial statements for periods prior
to <font style="WHITE-SPACE: nowrap">adoption. ASU 2018-11 also</font> allows
a practical expedient that permits lessors to not
separate <font style="WHITE-SPACE: nowrap">non-lease</font> components
from the associated lease component if certain conditions are
present. An entity that elects to use the practical expedients
will, in effect, continue to account for leases that commenced
before the effective date in accordance with previous GAAP unless
the lease is modified, except that lessees are required to
recognize a <font style="WHITE-SPACE: nowrap"><font style="WHITE-SPACE: nowrap">right-of-use</font></font> asset
and a lease liability for all operating leases at each reporting
date based on the present value of the remaining minimum rental
payments that were tracked and disclosed under
previous <font style="WHITE-SPACE: nowrap"><font style="WHITE-SPACE: nowrap">GAAP. ASU 2016-02, ASU 2018-10</font></font> <font style="WHITE-SPACE: nowrap">and ASU 2018-11 (collectively,</font> “Topic
842”) will be effective for public companies for fiscal years
beginning after December 15, 2018, including interim periods
within those fiscal years. Early adoption is permitted.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">The Company has assigned internal resources in
addition to the engagement of third-party service providers, to
assist in the evaluation process and to provide periodic updates to
management and the Audit Committee. The Company is in the process
of identifying the relevant population of potential lease
arrangements and evaluating these arrangements in the context of
Topic 842. The Company is also in the process of evaluating changes
to its accounting policies, business processes, disclosures and
controls to support recognition and disclosure. While the Company
continues to evaluate the effect of adoption on its consolidated
financial statements, it expects the adoption will result in the
recognition of right of use assets and lease liabilities that were
not previously recognized, which will increase total assets and
liabilities on its consolidated balance sheets.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 18pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
<b><i>Recently Adopted Accounting Pronouncements</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">In May 2017, the FASB issued
ASU <font style="WHITE-SPACE: nowrap">No. 2017-09,</font><i> Compensation-Stock
Compensation (Topic 718): Scope of Modification
Accounting,</i> which provides guidance about which changes to
the terms or conditions of a share-based payment award require an
entity to apply modification accounting under Topic 718. The ASU is
effective for all entities for fiscal years beginning after
December 15, 2017. The Company
adopted <font style="WHITE-SPACE: nowrap">ASU 2017-09 as</font> of
January 1, 2018 and the adoption did not have an impact on its
condensed consolidated financial statements as of
September 30, 2018.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">In November 2016, FASB
issued <font style="WHITE-SPACE: nowrap">ASU No. 2016-18,</font><i> Statement
of Cash Flows (Topic 230): Restricted Cash</i>, which provides
guidance to decrease the diversity in practice in the
classification and presentation of changes in restricted cash on
the statements of cash flows. The ASU is effective for public
companies for fiscal years beginning after December 15, 2017.
The Company adopted <font style="WHITE-SPACE: nowrap">ASU 2016-18 as</font> of
January 1, 2018 and as a result of the adoption, the Company
no longer presents the changes in restricted cash balances as a
component of cash flows from investing activities, but instead
includes the balances of restricted cash with cash and cash
equivalents for the beginning and end of the periods presented.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">In May 2014, FASB issued
ASU <font style="WHITE-SPACE: nowrap">No. 2014-09,</font> <i>Revenue
from Contracts with Customers (Topic 606)</i>. Topic 606 supersedes
the revenue recognition requirements in Accounting Standards
Codification (“ASC”) Topic 605, Revenue Recognition
(“Topic 605”), and requires the recognition of revenue
as promised goods or services are transferred to customers in an
amount that reflects the consideration which the entity expects to
be entitled to in exchange for those goods or services. Topic 606
also includes Subtopic <font style="WHITE-SPACE: nowrap">340-40,</font> <i>Other
Assets and Deferred Costs; Contracts with Customers</i>, which
requires the deferral of incremental costs of obtaining a contract
with a customer. Collectively, the Company refers to Topic 606 and
Subtopic <font style="WHITE-SPACE: nowrap">340-40</font> as the
“new standard.”</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">The new standard permits adoption either by using
(i) a full retrospective approach for all periods presented or
(ii) a modified retrospective approach with the cumulative
effect of initially applying the new standard recognized at the
date of initial application and providing certain additional
disclosures. The Company adopted the new standard as of
January 1, 2018 using the modified retrospective approach. As
a result of adopting ASU <font style="WHITE-SPACE: nowrap">2014-09</font> (<i>Topic
606</i>) and its corresponding ASUs, accumulated deficit decreased
by $25.1 million and as a result of adopting
ASC <font style="WHITE-SPACE: nowrap">340-40,</font>accumulated deficit decreased
by $52.5 million as of January 1, 2018.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">The most significant impact of adopting
ASU <font style="WHITE-SPACE: nowrap">2014-09</font> <i>(Topic
606)</i> and its corresponding ASUs relates to
the timing of revenue recognition for professional services bundled
in multiple-element arrangements. In particular, because
professional services revenue is recognized as the services are
delivered under the new standard, such revenue is recognized in an
earlier period and over a shorter timeframe, as compared to the
Company’s accounting policy prior to the adoption of the new
standard. Also, the timing of recognition changed to begin in an
earlier period for some support subscriptions bundled in
multiple-element arrangements compared to the Company’s
accounting policy prior to the adoption of the new standard for
multiple-element arrangements whereby recognition generally began
when both the support subscription and professional services had
substantially commenced.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">Prior to the adoption of
ASC <font style="WHITE-SPACE: nowrap">340-40,</font> incremental
costs incurred to obtain a contract were expensed when incurred.
Thus, the application of the new standard resulted in a significant
change to the Company’s accounting policy, which resulted in
the Company recognizing expense in a different period, as these
costs are now amortized over longer periods.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">The Company elected to apply the modified
retrospective method only to contracts that were not substantially
complete as of January 1, 2018 and elected to consider the
aggregate effect of all contract modifications as of that date. The
comparative information before the effective date has not been
adjusted and continues to be reported under Topic 605.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 18pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
<b><i>Impacts on Financial Statements</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">The following tables summarize the impacts of
adopting Topic 606 and Subtopic <font style="WHITE-SPACE: nowrap">340-40</font> (the
“new standard”) on the Company’s condensed
consolidated financial statements for the three and nine months
ended September 30, 2018. The Company’s financial
reporting under the new standard is included in the columns labeled
“As Reported” in the tables below.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">Select line items from the condensed consolidated
balance sheet as of September 30, 2018 that reflect the
adoption of the new standard are as follows:</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 12pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
 </p>
<table style="FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" cellspacing="0" cellpadding="0" width="92%" align="center" border="0">
<tr style="COLOR: white; LINE-HEIGHT: 0pt; VISIBILITY: hidden">
<td width="88%"></td>
<td valign="bottom" width="1%"></td>
<td></td>
<td style="FONT-SIZE: 8pt" nowrap="nowrap"></td>
<td></td>
<td valign="bottom" width="1%"></td>
<td></td>
<td style="FONT-SIZE: 8pt" nowrap="nowrap"></td>
<td></td>
<td valign="bottom" width="1%"></td>
<td></td>
<td style="FONT-SIZE: 8pt" nowrap="nowrap"></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; break-inside: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="10" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>September 30, 2018</b></font></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 8pt; break-inside: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>As Reported</b></font></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Adjustments</b></font></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Balances without</b></font><br />
<font style="FONT-FAMILY: "Times New Roman""><b>adoption 
of</b></font><br />
<font style="FONT-FAMILY: "Times New Roman""><b>the new standard</b></font></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 8pt; break-inside: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td valign="bottom" colspan="10" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>(in thousands)</b></font></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
<b>ASSETS</b></p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Contract assets</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">530</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(530</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Deferred costs</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">23,778</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(23,778</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Deferred costs - noncurrent</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">26,062</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(26,062</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 1pt">
<td height="16" colspan="5"></td>
<td height="16" colspan="4"></td>
<td height="16" colspan="4"></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top" colspan="4">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
<b>LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)</b></p>
</td>
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 0em; MARGIN-TOP: 0pt; TEXT-INDENT: 0em">
<b> </b></p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Deferred revenue</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">163,077</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">29,536</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">192,613</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Other contract liabilities</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">15,829</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(15,829</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Long-term deferred revenue</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">86,279</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">11,750</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">98,029</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Other long-term liabilities</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">827</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(34</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">793</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Accumulated other comprehensive loss</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(1,155</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">331</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(824</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Accumulated deficit</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(944,894</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(76,124</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(1,021,018</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
</tr>
</table>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 12pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">Select line items from the condensed consolidated
statements of operations for the three and nine months ended
September 30, 2018 that reflect the adoption of the new
standard are as follows:</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 12pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
 </p>
<table style="FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" cellspacing="0" cellpadding="0" width="92%" align="center" border="0">
<tr style="COLOR: white; LINE-HEIGHT: 0pt; VISIBILITY: hidden">
<td width="88%"></td>
<td valign="bottom" width="1%"></td>
<td></td>
<td style="FONT-SIZE: 8pt" nowrap="nowrap"></td>
<td></td>
<td valign="bottom" width="1%"></td>
<td></td>
<td style="FONT-SIZE: 8pt" nowrap="nowrap"></td>
<td></td>
<td valign="bottom" width="1%"></td>
<td></td>
<td style="FONT-SIZE: 8pt" nowrap="nowrap"></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; break-inside: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="10" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Three Months Ended September 30, 2018</b></font></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 8pt; break-inside: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>As Reported</b></font></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Adjustments</b></font></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Balances without</b></font><br />
<font style="FONT-FAMILY: "Times New Roman""><b>adoption 
of</b></font><br />
<font style="FONT-FAMILY: "Times New Roman""><b>the new standard</b></font></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 8pt; break-inside: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td valign="bottom" colspan="10" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>(in thousands, except per share data)</b></font></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
<b>Revenues:</b></p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Support subscription</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">65,390</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">861</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">66,251</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Professional services</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">21,784</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(2,687</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">19,097</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 1pt">
<td height="8"></td>
<td height="8" colspan="4"></td>
<td height="8" colspan="4"></td>
<td height="8" colspan="4"></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
<b>Operating expenses:</b></p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Sales and marketing</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">50,446</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(2,049</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">48,397</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Net loss</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(31,574</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">224</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(31,350</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Net loss per share of common stock, basic and diluted</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(0.39</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">0.01</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(0.38</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
</tr>
</table>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 12pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
 </p>
<table style="FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" cellspacing="0" cellpadding="0" width="92%" align="center" border="0">
<tr style="COLOR: white; LINE-HEIGHT: 0pt; VISIBILITY: hidden">
<td width="88%"></td>
<td valign="bottom" width="1%"></td>
<td></td>
<td style="FONT-SIZE: 8pt" nowrap="nowrap"></td>
<td></td>
<td valign="bottom" width="1%"></td>
<td></td>
<td style="FONT-SIZE: 8pt" nowrap="nowrap"></td>
<td></td>
<td valign="bottom" width="1%"></td>
<td></td>
<td style="FONT-SIZE: 8pt" nowrap="nowrap"></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; break-inside: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="10" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Nine Months Ended September 30, 2018</b></font></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 8pt; break-inside: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>As Reported</b></font></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Adjustments</b></font></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Balances without</b></font><br />
<font style="FONT-FAMILY: "Times New Roman""><b>adoption 
of</b></font><br />
<font style="FONT-FAMILY: "Times New Roman""><b>the new standard</b></font></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 8pt; break-inside: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td valign="bottom" colspan="10" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>(in thousands, except per share data)</b></font></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
<b>Revenues:</b></p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Support subscription</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">191,943</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">5,636</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">197,579</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Professional services</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">60,635</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(6,369</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">54,266</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 1pt">
<td height="8"></td>
<td height="8" colspan="4"></td>
<td height="8" colspan="4"></td>
<td height="8" colspan="4"></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
<b>Operating expenses:</b></p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Sales and marketing</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">153,889</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(2,240</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">151,649</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Net loss</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(114,826</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">1,508</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(113,318</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Net loss per share of common stock, basic and diluted</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(1.45</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">0.02</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(1.43</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
</tr>
</table>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">Select line items from the condensed consolidated
statement of cash flows for the nine months ended
September 30, 2018 that reflect the adoption of the new
standard are as follows:</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 12pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
 </p>
<table style="FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" cellspacing="0" cellpadding="0" width="92%" align="center" border="0">
<tr style="COLOR: white; LINE-HEIGHT: 0pt; VISIBILITY: hidden">
<td width="88%"></td>
<td valign="bottom" width="1%"></td>
<td></td>
<td style="FONT-SIZE: 8pt" nowrap="nowrap"></td>
<td></td>
<td valign="bottom" width="1%"></td>
<td></td>
<td style="FONT-SIZE: 8pt" nowrap="nowrap"></td>
<td></td>
<td valign="bottom" width="1%"></td>
<td></td>
<td style="FONT-SIZE: 8pt" nowrap="nowrap"></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; break-inside: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="10" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Nine Months Ended September 30, 2018</b></font></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 8pt; break-inside: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>As Reported</b></font></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Adjustments</b></font></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Balances without</b></font><br />
<font style="FONT-FAMILY: "Times New Roman""><b>adoption 
of</b></font><br />
<font style="FONT-FAMILY: "Times New Roman""><b>the new standard</b></font></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 8pt; break-inside: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td valign="bottom" colspan="10" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>(in thousands)</b></font></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
<b>CASH FLOWS FROM OPERATING ACTIVITIES:</b></p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Net loss</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman""> (114,826</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">1,508</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman""> (113,318</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Adjustments to reconcile net loss to net cash provided by operating
activities:</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Amortization of deferred costs</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">24,599</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(24,599</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Changes in operating assets and liabilities:</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Contract assets</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">1,920</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(1,920</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Deferred costs</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(22,447</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">22,447</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Deferred revenue</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">12,453</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">5,359</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">17,812</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Other contract liabilities</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">2,795</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(2,795</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 5em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Net cash provided by operating activities</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">16,430</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">16,430</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
</table>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">See Note 7—“Revenue from Contracts with
Customers” in the notes to the Company’s condensed
consolidated financial statements for additional information on the
new standard.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">With the exception of the new standards discussed
above, there have been no other recent accounting pronouncements or
changes in accounting pronouncements during the nine months ended
September 30, 2018 that are of significance or potential
significance to the Company, as compared to the recent accounting
pronouncements described in Note 2 of the Company’s Annual
Report on <font style="WHITE-SPACE: nowrap">Form 10-K</font> for
the year ended December 31, 2017.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 18pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
<b><i>Changes in Accounting Policies</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
<i>Revenue Recognition</i></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">Apache Hadoop, Apache NiFi and associated open
source technology projects within the Apache Software Foundation
are made freely available within the open source
community. While these technologies have emerged to enable the
modern data center architecture, they are complex to deploy and
consume as individual components inhibiting broad adoption by
enterprises. The Company’s efforts are thus focused on
creating a software distribution of these projects by assembling,
testing and integrating key component software projects into an
open platform that address the needs of enterprises. By working in
concert with the Apache community to develop Connected Data
Platforms, Hortonworks Data Platform (“HDP”<sup style="FONT-SIZE: 11px; VERTICAL-ALIGN: top">®</sup>), Hortonworks
DataFlow (“HDF”<sup style="FONT-SIZE: 11px; VERTICAL-ALIGN: top">™</sup>) and other
offerings, the Company’s software distribution provides
customers with a scalable, secure and governed environment for
their data requirements.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">Connected Data Platforms are made available under
an Apache open source license. Open source software is an
alternative to proprietary developed software and represents a
different distribution model for the development and licensing of
commercial software code than that typically used for proprietary
software. Because open source software code is generally freely
shared, the Company does not typically generate any direct revenue
from its software development activities.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">The Company generates the predominant amount of its
revenue through support (support subscription) and consulting and
education services (professional services) arrangements with its
enterprise customers. The Company’s professional services
provide assistance in the implementation process and education
related activities.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">The Company prices support subscription offerings
based on the number of servers in a cluster, or nodes, core or edge
devices, data under management and/or the scope of support
provided. The Company’s consulting services are priced
primarily on a time and materials basis, and to a lesser extent, a
fixed fee basis, and education services are generally priced based
on attendance.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">The Company determines revenue recognition through
the following steps, which are described in more detail below:</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 6pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
 </p>
<table style="FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr style="break-inside: avoid">
<td width="5%"> </td>
<td valign="top" width="2%" align="left">•</td>
<td valign="top" width="1%"> </td>
<td valign="top" align="left">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-TOP: 0pt" align="justify">Identification of the contract or contracts with a
customer</p>
</td>
</tr>
</table>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 6pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
 </p>
<table style="FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr style="break-inside: avoid">
<td width="5%"> </td>
<td valign="top" width="2%" align="left">•</td>
<td valign="top" width="1%"> </td>
<td valign="top" align="left">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-TOP: 0pt" align="justify">Identification of the performance obligation(s) in
the contract</p>
</td>
</tr>
</table>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 6pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
 </p>
<table style="FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr style="break-inside: avoid">
<td width="5%"> </td>
<td valign="top" width="2%" align="left">•</td>
<td valign="top" width="1%"> </td>
<td valign="top" align="left">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-TOP: 0pt" align="justify">Determination of the transaction price</p>
</td>
</tr>
</table>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 6pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
 </p>
<table style="FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr style="break-inside: avoid">
<td width="5%"> </td>
<td valign="top" width="2%" align="left">•</td>
<td valign="top" width="1%"> </td>
<td valign="top" align="left">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-TOP: 0pt" align="justify">Allocation of the transaction price to the
performance obligation(s) in the contract</p>
</td>
</tr>
</table>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 6pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
 </p>
<table style="FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr style="break-inside: avoid">
<td width="5%"> </td>
<td valign="top" width="2%" align="left">•</td>
<td valign="top" width="1%"> </td>
<td valign="top" align="left">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-TOP: 0pt" align="justify">Recognition of revenue when, or as, a performance
obligation is satisfied</p>
</td>
</tr>
</table>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">The Company’s agreements with customers often
include multiple support subscription and/or professional services
elements, and these elements are sometimes included in separate
contracts. The Company considers an entire customer arrangement to
determine if separate contracts should be considered combined for
the purposes of revenue recognition.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">At contract inception, the Company assesses the
support and services product offerings or bundle of product
offerings in its contracts to identify performance obligations that
are distinct. A performance obligation is distinct when it is
separately identifiable from other items in a bundled package and
if a customer can benefit from it on its own or with other
resources that are readily available to the customer. To identify
its performance obligations, the Company considers all of the
product offerings promised in the contract. The Company has
concluded that its contracts with customers do not contain
warranties that give rise to a separate performance obligation.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">The Company works with partners in various
capacities to both identify <font style="WHITE-SPACE: nowrap">end-users</font> for their
product offerings and to provide those product offerings
to <font style="WHITE-SPACE: nowrap">end-users.</font> The
Company determines whether it is responsible for providing the
actual product or service as a principal, or for arranging for the
product or service to be provided by the third-party as an agent.
Judgment is applied to determine whether the Company is the
principal or the agent by evaluating whether the Company has
control of the product or service prior to it being transferred to
the customer. The principal versus agent assessment is performed at
the performance obligation level. Indicators that the Company
considers to support that it has control include whether the
Company is primarily responsible for fulfilling the promise to
provide the specified product or service to the customer and the
Company has discretion in establishing the price the customer
ultimately pays for the product or service. Depending upon the
level of the Company’s contractual responsibilities and
obligations for delivering solutions to end customers, the Company
has arrangements where the Company is the principal and recognizes
the gross amount invoiced to the customer and other arrangements
where the Company is an agent and recognizes the net amount
retained.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">The transaction price is the total amount of
consideration the Company expects to be entitled to in exchange for
the product offerings in a contract.
Sales, <font style="WHITE-SPACE: nowrap">value-add</font> and other
taxes the Company collects from customers concurrent with
revenue-producing activities are excluded from revenue. Some of the
Company’s contracts with customers contain variable
consideration. Variable consideration exists when the amount which
the Company expects to receive in a contract is based on the
occurrence or <font style="WHITE-SPACE: nowrap">non-occurrence</font> of
future events, such as professional services invoiced upon
substantive acceptance of milestones. The Company estimates
variable consideration in its contracts primarily using the
expected value method. In some contracts, the Company applies the
most likely amount method by considering the single most likely
amount in a limited range of possible consideration amounts. The
Company develops estimates of variable consideration on the basis
of both historical information and current trends. Variable
consideration is constrained and not included in the transaction
price when the Company believes a significant cumulative revenue
reversal is probable. In determining if a significant revenue
reversal is probable, the Company considers the amount of revenue
recognized in advance of the occurrence
or <font style="WHITE-SPACE: nowrap">non-occurrence</font> of
future events that causes invoicing to be contingent, the expected
timing of the occurrence or <font style="WHITE-SPACE: nowrap">non-occurrence</font> of
future events and the likelihood of a reversal. For example, in a
professional services contract when a portion of the fee is subject
to a substantive acceptance provision, the Company evaluates
historical acceptance rates for similar contracts, customer
specific level of risk, and the time between delivery and
acceptance when estimating and constraining variable
consideration.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">Once the Company has determined the transaction
price, the total transaction price is allocated to each performance
obligation in a manner depicting the amount of consideration to
which the Company expects to be entitled in exchange for
transferring the product(s) or service(s) to the customer (the
“allocation objective”). If the allocation objective is
met at contractual prices, no allocations are performed. Otherwise,
the Company allocates the transaction price to each performance
obligation identified in the contract on a relative stand-alone
selling price basis, except when the criteria are met for
allocating variable consideration or a discount to one or more, but
not all, performance obligations in the contract. The Company
allocates variable consideration to one or more, but not all
performance obligations when the terms of the variable payment
relate specifically to the Company’s efforts to satisfy the
performance obligation (or transfer the distinct product or
service) and when such allocation is consistent with the allocation
objective when considering all performance obligations in the
contract (<i>e.g.,</i> a time and materials based
professional services arrangement bundled with support
subscription). Determining whether the criteria for allocating
variable consideration to one or more, but not all, performance
obligations in the contract requires significant judgment and may
affect the timing and amount of revenue recognized. The Company
does not typically meet the requirements to allocate discounts to
one or more, but not all, performance obligations in a
contract.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">In order to determine the stand-alone selling
price, the Company conducts a periodic analysis to determine if
there is an observable stand-alone selling price. To have
observable pricing, the Company requires that a substantial
majority of the stand-alone selling prices for a product offering
fall within a pricing range. If a directly observable stand-alone
selling price does not exist, the Company estimates a stand-alone
selling price range by reviewing external and internal market
factors including, but not limited to, pricing practices including
historical discounting, major service groups and geographic
considerations. There is also no hierarchy for how to estimate or
otherwise determine the stand-alone selling price for product
offerings that are not sold separately, however, the Company
maximizes the use of observable data.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">Selling prices are periodically analyzed to
identify significant changes and if so, stand-alone selling prices
are updated accordingly. The Company’s process for
determining stand-alone selling price requires judgment and
considers multiple factors that are reasonably available and
maximizes the use of observable inputs that may vary over time
depending upon the unique facts and circumstances related to each
performance obligation. The Company believes that this method
results in an estimate that represents the price the Company would
charge for the product offerings if they were sold separately.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">With stand-alone selling price established as a
range, if the contractually stated prices of the underlying
performance obligation fall within the stand-alone selling price
range, the Company will use the contractually stated price to
allocate the transaction price. If the contractually stated price
for one or more performance obligations in a contract fall outside
of the stand-alone selling price range, the Company will use
the <font style="WHITE-SPACE: nowrap">mid-point</font> of the
stand-alone selling price range to allocate the transaction price
on a relative stand-alone selling price basis.</p>
<p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 1px; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">Revenues are recognized when the Company satisfies
the performance obligations under the terms of a contract when
control over the Company’s product offerings is transferred,
which generally occurs as support subscription and professional
services are delivered to the customer. Previously, under the
guidance in effect prior to the adoption of the new standard,
revenue was recognized when all of the following criteria were met:
(i) persuasive evidence of an arrangement exists,
(ii) services have been delivered, (iii) the arrangement
fee is fixed or determinable and (iv) collectability is
probable. The Company’s multiple element arrangements
generally include support subscription combined with professional
services. The Company had not established vendor specific objective
evidence of fair value (“VSOE”) for its support
subscriptions and professional services offerings, and the Company
recognized revenue on a ratable basis over the period beginning
when both the support subscription and professional services had
substantially commenced, and ended at the conclusion of the support
subscription or professional services period, whichever is longer.
Under the Company’s multiple element arrangements, the
support subscription element generally has the longest service
period and the professional services element is performed during
the earlier part of the support subscription period.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">The following describes the nature of the
Company’s primary types of revenue and the revenue
recognition policies and significant payment terms as they pertain
to the types of transactions the Company enters into with its
customers.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 18pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
<i>Support Subscription Revenue</i></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">As part of a support subscription, the Company
stands ready to help customers resolve technical issues related to
the installed platform. The support subscriptions are designed to
assist throughout a customer’s lifecycle from development
to <font style="WHITE-SPACE: nowrap"><font style="WHITE-SPACE: nowrap">proof-of-concept,</font></font> to
quality assurance and testing, to production and development.
Support subscription is generally offered under renewable, fixed
fee contracts where payments are typically due annually in advance
and may have a term of one year or multiple years. The contracts
generally do not contain refund provisions for fees earned related
to support services performed. A support subscription is viewed as
a stand-ready performance obligation comprised of a series of
distinct days of service that is satisfied ratably over time as the
services are provided. A time-elapsed output method is used to
measure progress because the Company’s efforts are expended
evenly throughout the period given the nature of the promise is a
stand-ready service. Unearned support subscription revenue is
included in deferred revenue and other contract liabilities. On
occasion, the Company may sell engineering services and/or a
premium subscription agreement that provides a customer with
development input and the opportunity to work more closely with its
developers.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 18pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
<i>Professional Services Revenue</i></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">Professional services revenue is derived primarily
from customer fees for consulting services engagements and
education services. The Company’s consulting services are
provided primarily on a time and materials basis and, to a lesser
extent, a fixed fee basis, and education services are generally
priced based on attendance. Time and material contracts are
generally invoiced based upon hours incurred on a monthly basis and
fixed fee contracts may be invoiced <font style="WHITE-SPACE: nowrap">up-front</font> or as
milestones are achieved throughout the project. Professional
services revenue is typically recognized over time as the services
are rendered. Depending on the nature of the consulting services
engagement (<i>e.g</i>., time and materials basis, fixed fee basis,
etc.), various measures of progress may be used to recognize
revenue. These measures of progress include recognizing revenue in
an amount equal to and at the time of invoicing, a measure of time
incurred relative to remaining hours expected to be delivered, or
other similar measures. These measures depict the Company’s
efforts to satisfy professional services contracts and therefore
reflect the transfer of control for the services to a customer.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 18pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
<i>Contract Costs</i></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">Contract costs, consisting primarily of sales
commissions and payroll taxes, that are incremental to obtaining a
contract with a customer are capitalized and recorded as deferred
costs. The Company expects to recover deferred contract costs over
the period of benefit from the underlying contracts. The
amortization period for recovery is consistent with the timing of
transfer to the customer of services to which the capitalized costs
relate. Contract costs that relate to an underlying transaction are
expensed commensurate with recognition of revenue as performance
obligations are satisfied. Contract costs that are incurred in
excess of those relating to an underlying transaction are not
considered commensurate with recognition of revenue as performance
obligations are satisfied, and are amortized on a straight-line
basis over the anticipated average customer life of five years.
Under the guidance in effect prior to the adoption of the new
standard, the Company previously expensed these costs as incurred.
Contract costs were $49.8 million as of September
30, 2018. For the three and nine months ended
September 30, 2018, amortization expense for the contract
costs were $9.2 million and $24.6 million,
respectively, and there was no impairment loss in relation to the
costs capitalized. The Company does not incur direct
fulfillment-related costs of a nature required to be capitalized
and amortized.</p>
<p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 1px; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 18px; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
<i>Deferred Revenue and Contingent Revenue</i></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">Deferred revenue consists of amounts invoiced to
customers but not yet recognized as revenue. The Company records
revenue and a corresponding contract asset when consideration
allocated to a transferred product offering is more than the amount
billable to customers in the current period. Under the guidance in
effect prior to the adoption of the new standard, the Company
previously limited the amount of revenue recognized for delivered
elements to the amount that was not contingent on the future
delivery of product offerings, or subject to the Company’s
future performance obligations.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 18pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
<i>Contract Assets</i></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">Contract assets consist of the right to
consideration in exchange for product offerings that the Company
has transferred to a customer when that right is conditional and is
not only subject to the passage of time (<i>e.g.</i>, performance
prior to invoicing on fixed fee professional service arrangements
with substantive acceptance). When the Company has unconditional
rights to consideration, except for the passage of time, a
receivable will be recorded on the condensed consolidated balance
sheets. The Company does not typically include extended payment
terms in its contracts with customers.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 18pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
<i>Contract Liabilities</i></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">Contract liabilities represent an obligation to
transfer product offerings for which the Company has received
consideration, or for which an amount of consideration is due from
the customer (<i>e.g.</i>, support subscription arrangements where
consideration is paid annually in advance). Contract liabilities
are comprised of short-term and long-term deferred revenue and
other contract liabilities. The Company’s contract balances
will be reported in a net contract asset or liability position on
a <font style="WHITE-SPACE: nowrap"><font style="WHITE-SPACE: nowrap">contract-by-contract</font></font> basis
at the end of each reporting period.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">Other than the changes to the above policies, there
have been no other material changes to the Company’s
significant accounting policies described in the Company’s
Annual Report on Form <font style="WHITE-SPACE: nowrap">10-K</font> for the fiscal
year ended December 31, 2017 that have had a material impact
on the Company’s condensed consolidated financial statements
and related notes.</p>
</div>
1273000
-42360000
18744000
16430000
-114826000
-26000
0
-936000
-384000
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">A summary of information related to restricted
stock for the nine months ended September 30, 2018 is
presented below:</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 12pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
 </p>
<table style="FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" cellspacing="0" cellpadding="0" width="76%" align="center" border="0">
<tr style="COLOR: white; LINE-HEIGHT: 0pt; VISIBILITY: hidden">
<td width="88%"></td>
<td valign="bottom" width="4%"></td>
<td></td>
<td style="FONT-SIZE: 8pt" nowrap="nowrap"></td>
<td></td>
<td valign="bottom" width="4%"></td>
<td></td>
<td style="FONT-SIZE: 8pt" nowrap="nowrap"></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; break-inside: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Number of<br />
Shares Issued<br />
Outside the<br />
Stock Plans</b></font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b><font style="WHITE-SPACE: nowrap">Weighted-Average</font><br />
Grant Date<br />
Fair Value<br />
Per Share (*)</b></font></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Unvested balance—December 31, 2017</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">137,919</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">23.76</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Granted</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom"> </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Vested</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(137,919</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom"> </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">23.76</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Canceled/forfeited</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom"> </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Unvested balance—September 30, 2018</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom"> </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
</table>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 12pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
 </p>
<table style="FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr style="break-inside: avoid">
<td valign="top" width="4%" align="left">(*)</td>
<td valign="top" align="left">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-TOP: 0pt" align="justify">The weighted-average grant date fair value per
share relates to 1,424,946 shares of restricted stock paid as part
of the acquisition of Onyara, Inc. The remaining 137,919 shares
were vested as of September 30, 2018.</p>
</td>
</tr>
</table>
</div>
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
<b>1. DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES</b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
<b><i>Description of Business</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">Hortonworks, Inc. (the “Company”)
delivers 100 percent open-source global data management
solutions so that customers can deploy modern data architectures
and realize the full value of their data. The Company’s
enterprise-ready solutions enable organizations to govern, secure
and manage data of any kind, wherever it is located, and turn it
into actionable intelligence that will help them transform their
businesses.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">The Company’s
platforms<b> </b>allow enterprises to manage
their data on a global scale, whether it
is <font style="WHITE-SPACE: nowrap"><font style="WHITE-SPACE: nowrap">data-in-motion</font></font> or <font style="WHITE-SPACE: nowrap"><font style="WHITE-SPACE: nowrap">data-at-rest.</font></font> The
Company has the expertise, experience and proven solutions to power
modern data applications, including streaming analytics, data
science, artificial intelligence and more.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 18pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
<b><i>Basis of Presentation and Consolidation</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">The unaudited condensed consolidated financial
statements have been prepared in accordance with generally accepted
accounting principles (“GAAP”) in the United States
(“U.S.”) and applicable rules and regulations of the
Securities and Exchange Commission (“SEC”) regarding
interim financial reporting. These financial statements have been
prepared on the same basis as the Company’s annual financial
statements and, in the opinion of management, reflect all normal
recurring adjustments, except as otherwise disclosed, that are
necessary for a fair statement of the Company’s results for
the interim periods presented. These interim financial results are
not necessarily indicative of results expected for the full fiscal
year or for any subsequent interim period.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">The condensed consolidated financial statements and
related financial information should be read in conjunction with
the audited financial statements and the related notes included in
the Company’s Annual Report on
Form <font style="WHITE-SPACE: nowrap">10-K</font> for the year
ended December 31, 2017. Certain information and footnote
disclosures normally included in financial statements prepared in
accordance with U.S. GAAP have been condensed or omitted. The
condensed consolidated balance sheet as of December 31, 2017
was derived from the Company’s audited financial statements
for the year ended December 31, 2017, but does not include all
disclosures required by U.S. GAAP as permitted by the applicable
rules and regulations of the SEC regarding interim financial
reporting. However, the Company believes the disclosures are
adequate to make the information presented not misleading. The
condensed consolidated financial statements include the accounts of
the Company and its wholly owned subsidiaries. All intercompany
transactions and balances have been eliminated in
consolidation.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 18pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
<b><i>Use of Estimates</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">The preparation of condensed consolidated financial
statements in conformity with U.S. GAAP requires management to make
estimates and assumptions that affect the reported amounts of
assets, liabilities, revenue, and expenses, the related disclosure
of contingent assets and liabilities at the date of the condensed
consolidated financial statements and the reported amounts of
expenses during the reporting period. The Company bases its
estimates and judgments on its historical experience, knowledge of
current conditions and its beliefs regarding what may occur in the
future given available information. Estimates, assumptions and
judgments are used for, but are not limited to, revenue
recognition, stock-based awards, accounting for income taxes,
allowance for doubtful accounts and certain accrued liabilities.
Actual results may differ from these estimates.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 18pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
<b><i>Recently Issued Accounting Pronouncements</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">In June 2018, the Financial Accounting Standards
Board (“FASB”) issued Accounting Standards Update
(“ASU”) <font style="WHITE-SPACE: nowrap">No. 2018-07,</font> <i>Compensation-Stock
Compensation (Topic 718): Improvements to Nonemployee Share-Based
Payment Accounting, </i>which expands the scope
of Topic 718 to include shared-based payment transactions for
acquiring goods and services from nonemployees. Under the standard,
most of the guidance on such payments to nonemployees would be
aligned with the requirements for share-based payments granted to
employees. The ASU is effective for public companies for fiscal
years beginning after December 15, 2018, with early adoption
permitted. The Company is currently evaluating the effect that
adoption of ASU <font style="WHITE-SPACE: nowrap">2018-07</font> will have on
its condensed consolidated financial statements.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">In February 2016, FASB issued
ASU <font style="WHITE-SPACE: nowrap">No. 2016-02,</font> <i>Leases
(Topic 842),</i> which, for operating leases,
requires a lessee to recognize a <font style="WHITE-SPACE: nowrap"><font style="WHITE-SPACE: nowrap">right-of-use</font></font> asset
and a lease liability, initially measured at the present value of
the lease payments, in its balance sheet. The standard also
requires a lessee to recognize a single lease cost, calculated so
that the cost of the lease is allocated over the lease term, on a
generally straight-line basis. In July 2018, the
FASB <font style="WHITE-SPACE: nowrap">issued ASU 2018-10</font><i>,
Codification Improvements to Topic 842,
Leases</i> <font style="WHITE-SPACE: nowrap">and ASU 2018-11,</font><i> Leases
(Topic 842): Targeted Improvements</i><font style="WHITE-SPACE: nowrap">. ASU 2018-10</font> clarifies
certain areas <font style="WHITE-SPACE: nowrap">within ASU 2016-02.</font></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">Prior <font style="WHITE-SPACE: nowrap">to ASU 2018-11,</font> a
modified retrospective transition was required for financing or
operating leases existing at or entered into after the beginning of
the earliest comparative period presented in the
financial <font style="WHITE-SPACE: nowrap">statements. ASU 2018-11 allows</font> entities
an additional transition method to the existing requirements
whereby an entity could adopt the
provisions <font style="WHITE-SPACE: nowrap">of ASU 2016-02</font> by
recognizing a cumulative-effect adjustment to the opening balance
of retained earnings in the period of adoption without adjustment
to the financial statements for periods prior
to <font style="WHITE-SPACE: nowrap">adoption. ASU 2018-11 also</font> allows
a practical expedient that permits lessors to not
separate <font style="WHITE-SPACE: nowrap">non-lease</font> components
from the associated lease component if certain conditions are
present. An entity that elects to use the practical expedients
will, in effect, continue to account for leases that commenced
before the effective date in accordance with previous GAAP unless
the lease is modified, except that lessees are required to
recognize a <font style="WHITE-SPACE: nowrap"><font style="WHITE-SPACE: nowrap">right-of-use</font></font> asset
and a lease liability for all operating leases at each reporting
date based on the present value of the remaining minimum rental
payments that were tracked and disclosed under
previous <font style="WHITE-SPACE: nowrap"><font style="WHITE-SPACE: nowrap">GAAP. ASU 2016-02, ASU 2018-10</font></font> <font style="WHITE-SPACE: nowrap">and ASU 2018-11 (collectively,</font> “Topic
842”) will be effective for public companies for fiscal years
beginning after December 15, 2018, including interim periods
within those fiscal years. Early adoption is permitted.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">The Company has assigned internal resources in
addition to the engagement of third-party service providers, to
assist in the evaluation process and to provide periodic updates to
management and the Audit Committee. The Company is in the process
of identifying the relevant population of potential lease
arrangements and evaluating these arrangements in the context of
Topic 842. The Company is also in the process of evaluating changes
to its accounting policies, business processes, disclosures and
controls to support recognition and disclosure. While the Company
continues to evaluate the effect of adoption on its consolidated
financial statements, it expects the adoption will result in the
recognition of right of use assets and lease liabilities that were
not previously recognized, which will increase total assets and
liabilities on its consolidated balance sheets.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 18pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
<b><i>Recently Adopted Accounting Pronouncements</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">In May 2017, the FASB issued
ASU <font style="WHITE-SPACE: nowrap">No. 2017-09,</font><i> Compensation-Stock
Compensation (Topic 718): Scope of Modification
Accounting,</i> which provides guidance about which changes to
the terms or conditions of a share-based payment award require an
entity to apply modification accounting under Topic 718. The ASU is
effective for all entities for fiscal years beginning after
December 15, 2017. The Company
adopted <font style="WHITE-SPACE: nowrap">ASU 2017-09 as</font> of
January 1, 2018 and the adoption did not have an impact on its
condensed consolidated financial statements as of
September 30, 2018.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">In November 2016, FASB
issued <font style="WHITE-SPACE: nowrap">ASU No. 2016-18,</font><i> Statement
of Cash Flows (Topic 230): Restricted Cash</i>, which provides
guidance to decrease the diversity in practice in the
classification and presentation of changes in restricted cash on
the statements of cash flows. The ASU is effective for public
companies for fiscal years beginning after December 15, 2017.
The Company adopted <font style="WHITE-SPACE: nowrap">ASU 2016-18 as</font> of
January 1, 2018 and as a result of the adoption, the Company
no longer presents the changes in restricted cash balances as a
component of cash flows from investing activities, but instead
includes the balances of restricted cash with cash and cash
equivalents for the beginning and end of the periods presented.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">In May 2014, FASB issued
ASU <font style="WHITE-SPACE: nowrap">No. 2014-09,</font> <i>Revenue
from Contracts with Customers (Topic 606)</i>. Topic 606 supersedes
the revenue recognition requirements in Accounting Standards
Codification (“ASC”) Topic 605, Revenue Recognition
(“Topic 605”), and requires the recognition of revenue
as promised goods or services are transferred to customers in an
amount that reflects the consideration which the entity expects to
be entitled to in exchange for those goods or services. Topic 606
also includes Subtopic <font style="WHITE-SPACE: nowrap">340-40,</font> <i>Other
Assets and Deferred Costs; Contracts with Customers</i>, which
requires the deferral of incremental costs of obtaining a contract
with a customer. Collectively, the Company refers to Topic 606 and
Subtopic <font style="WHITE-SPACE: nowrap">340-40</font> as the
“new standard.”</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">The new standard permits adoption either by using
(i) a full retrospective approach for all periods presented or
(ii) a modified retrospective approach with the cumulative
effect of initially applying the new standard recognized at the
date of initial application and providing certain additional
disclosures. The Company adopted the new standard as of
January 1, 2018 using the modified retrospective approach. As
a result of adopting ASU <font style="WHITE-SPACE: nowrap">2014-09</font> (<i>Topic
606</i>) and its corresponding ASUs, accumulated deficit decreased
by $25.1 million and as a result of adopting
ASC <font style="WHITE-SPACE: nowrap">340-40,</font>accumulated deficit decreased
by $52.5 million as of January 1, 2018.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">The most significant impact of adopting
ASU <font style="WHITE-SPACE: nowrap">2014-09</font> <i>(Topic
606)</i> and its corresponding ASUs relates to
the timing of revenue recognition for professional services bundled
in multiple-element arrangements. In particular, because
professional services revenue is recognized as the services are
delivered under the new standard, such revenue is recognized in an
earlier period and over a shorter timeframe, as compared to the
Company’s accounting policy prior to the adoption of the new
standard. Also, the timing of recognition changed to begin in an
earlier period for some support subscriptions bundled in
multiple-element arrangements compared to the Company’s
accounting policy prior to the adoption of the new standard for
multiple-element arrangements whereby recognition generally began
when both the support subscription and professional services had
substantially commenced.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">Prior to the adoption of
ASC <font style="WHITE-SPACE: nowrap">340-40,</font> incremental
costs incurred to obtain a contract were expensed when incurred.
Thus, the application of the new standard resulted in a significant
change to the Company’s accounting policy, which resulted in
the Company recognizing expense in a different period, as these
costs are now amortized over longer periods.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">The Company elected to apply the modified
retrospective method only to contracts that were not substantially
complete as of January 1, 2018 and elected to consider the
aggregate effect of all contract modifications as of that date. The
comparative information before the effective date has not been
adjusted and continues to be reported under Topic 605.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 18pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
<b><i>Impacts on Financial Statements</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">The following tables summarize the impacts of
adopting Topic 606 and Subtopic <font style="WHITE-SPACE: nowrap">340-40</font> (the
“new standard”) on the Company’s condensed
consolidated financial statements for the three and nine months
ended September 30, 2018. The Company’s financial
reporting under the new standard is included in the columns labeled
“As Reported” in the tables below.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">Select line items from the condensed consolidated
balance sheet as of September 30, 2018 that reflect the
adoption of the new standard are as follows:</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 12pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
 </p>
<table style="FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" cellspacing="0" cellpadding="0" width="92%" align="center" border="0">
<tr style="COLOR: white; LINE-HEIGHT: 0pt; VISIBILITY: hidden">
<td width="88%"></td>
<td valign="bottom" width="1%"></td>
<td></td>
<td style="FONT-SIZE: 8pt" nowrap="nowrap"></td>
<td></td>
<td valign="bottom" width="1%"></td>
<td></td>
<td style="FONT-SIZE: 8pt" nowrap="nowrap"></td>
<td></td>
<td valign="bottom" width="1%"></td>
<td></td>
<td style="FONT-SIZE: 8pt" nowrap="nowrap"></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; break-inside: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="10" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>September 30, 2018</b></font></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 8pt; break-inside: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>As Reported</b></font></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Adjustments</b></font></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Balances without</b></font><br />
<font style="FONT-FAMILY: "Times New Roman""><b>adoption 
of</b></font><br />
<font style="FONT-FAMILY: "Times New Roman""><b>the new standard</b></font></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 8pt; break-inside: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td valign="bottom" colspan="10" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>(in thousands)</b></font></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
<b>ASSETS</b></p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Contract assets</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">530</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(530</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Deferred costs</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">23,778</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(23,778</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Deferred costs - noncurrent</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">26,062</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(26,062</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 1pt">
<td height="16" colspan="5"></td>
<td height="16" colspan="4"></td>
<td height="16" colspan="4"></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top" colspan="4">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
<b>LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)</b></p>
</td>
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 0em; MARGIN-TOP: 0pt; TEXT-INDENT: 0em">
<b> </b></p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Deferred revenue</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">163,077</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">29,536</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">192,613</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Other contract liabilities</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">15,829</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(15,829</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Long-term deferred revenue</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">86,279</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">11,750</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">98,029</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Other long-term liabilities</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">827</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(34</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">793</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Accumulated other comprehensive loss</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(1,155</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">331</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(824</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Accumulated deficit</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(944,894</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(76,124</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(1,021,018</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
</tr>
</table>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 12pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">Select line items from the condensed consolidated
statements of operations for the three and nine months ended
September 30, 2018 that reflect the adoption of the new
standard are as follows:</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 12pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
 </p>
<table style="FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" cellspacing="0" cellpadding="0" width="92%" align="center" border="0">
<tr style="COLOR: white; LINE-HEIGHT: 0pt; VISIBILITY: hidden">
<td width="88%"></td>
<td valign="bottom" width="1%"></td>
<td></td>
<td style="FONT-SIZE: 8pt" nowrap="nowrap"></td>
<td></td>
<td valign="bottom" width="1%"></td>
<td></td>
<td style="FONT-SIZE: 8pt" nowrap="nowrap"></td>
<td></td>
<td valign="bottom" width="1%"></td>
<td></td>
<td style="FONT-SIZE: 8pt" nowrap="nowrap"></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; break-inside: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="10" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Three Months Ended September 30, 2018</b></font></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 8pt; break-inside: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>As Reported</b></font></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Adjustments</b></font></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Balances without</b></font><br />
<font style="FONT-FAMILY: "Times New Roman""><b>adoption 
of</b></font><br />
<font style="FONT-FAMILY: "Times New Roman""><b>the new standard</b></font></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 8pt; break-inside: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td valign="bottom" colspan="10" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>(in thousands, except per share data)</b></font></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
<b>Revenues:</b></p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Support subscription</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">65,390</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">861</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">66,251</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Professional services</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">21,784</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(2,687</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">19,097</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 1pt">
<td height="8"></td>
<td height="8" colspan="4"></td>
<td height="8" colspan="4"></td>
<td height="8" colspan="4"></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
<b>Operating expenses:</b></p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Sales and marketing</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">50,446</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(2,049</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">48,397</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Net loss</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(31,574</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">224</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(31,350</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Net loss per share of common stock, basic and diluted</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(0.39</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">0.01</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(0.38</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
</tr>
</table>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 12pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
 </p>
<table style="FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" cellspacing="0" cellpadding="0" width="92%" align="center" border="0">
<tr style="COLOR: white; LINE-HEIGHT: 0pt; VISIBILITY: hidden">
<td width="88%"></td>
<td valign="bottom" width="1%"></td>
<td></td>
<td style="FONT-SIZE: 8pt" nowrap="nowrap"></td>
<td></td>
<td valign="bottom" width="1%"></td>
<td></td>
<td style="FONT-SIZE: 8pt" nowrap="nowrap"></td>
<td></td>
<td valign="bottom" width="1%"></td>
<td></td>
<td style="FONT-SIZE: 8pt" nowrap="nowrap"></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; break-inside: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="10" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Nine Months Ended September 30, 2018</b></font></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 8pt; break-inside: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>As Reported</b></font></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Adjustments</b></font></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Balances without</b></font><br />
<font style="FONT-FAMILY: "Times New Roman""><b>adoption 
of</b></font><br />
<font style="FONT-FAMILY: "Times New Roman""><b>the new standard</b></font></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 8pt; break-inside: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td valign="bottom" colspan="10" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>(in thousands, except per share data)</b></font></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
<b>Revenues:</b></p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Support subscription</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">191,943</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">5,636</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">197,579</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Professional services</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">60,635</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(6,369</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">54,266</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 1pt">
<td height="8"></td>
<td height="8" colspan="4"></td>
<td height="8" colspan="4"></td>
<td height="8" colspan="4"></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
<b>Operating expenses:</b></p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Sales and marketing</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">153,889</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(2,240</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">151,649</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Net loss</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(114,826</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">1,508</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(113,318</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Net loss per share of common stock, basic and diluted</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(1.45</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">0.02</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(1.43</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
</tr>
</table>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">Select line items from the condensed consolidated
statement of cash flows for the nine months ended
September 30, 2018 that reflect the adoption of the new
standard are as follows:</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 12pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
 </p>
<table style="FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" cellspacing="0" cellpadding="0" width="92%" align="center" border="0">
<tr style="COLOR: white; LINE-HEIGHT: 0pt; VISIBILITY: hidden">
<td width="88%"></td>
<td valign="bottom" width="1%"></td>
<td></td>
<td style="FONT-SIZE: 8pt" nowrap="nowrap"></td>
<td></td>
<td valign="bottom" width="1%"></td>
<td></td>
<td style="FONT-SIZE: 8pt" nowrap="nowrap"></td>
<td></td>
<td valign="bottom" width="1%"></td>
<td></td>
<td style="FONT-SIZE: 8pt" nowrap="nowrap"></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; break-inside: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="10" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Nine Months Ended September 30, 2018</b></font></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 8pt; break-inside: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>As Reported</b></font></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Adjustments</b></font></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Balances without</b></font><br />
<font style="FONT-FAMILY: "Times New Roman""><b>adoption 
of</b></font><br />
<font style="FONT-FAMILY: "Times New Roman""><b>the new standard</b></font></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 8pt; break-inside: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td valign="bottom" colspan="10" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>(in thousands)</b></font></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
<b>CASH FLOWS FROM OPERATING ACTIVITIES:</b></p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Net loss</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman""> (114,826</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">1,508</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman""> (113,318</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Adjustments to reconcile net loss to net cash provided by operating
activities:</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Amortization of deferred costs</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">24,599</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(24,599</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Changes in operating assets and liabilities:</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Contract assets</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">1,920</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(1,920</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Deferred costs</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(22,447</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">22,447</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Deferred revenue</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">12,453</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">5,359</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">17,812</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Other contract liabilities</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">2,795</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(2,795</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 5em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Net cash provided by operating activities</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">16,430</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">16,430</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
</table>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">See Note 7—“Revenue from Contracts with
Customers” in the notes to the Company’s condensed
consolidated financial statements for additional information on the
new standard.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">With the exception of the new standards discussed
above, there have been no other recent accounting pronouncements or
changes in accounting pronouncements during the nine months ended
September 30, 2018 that are of significance or potential
significance to the Company, as compared to the recent accounting
pronouncements described in Note 2 of the Company’s Annual
Report on <font style="WHITE-SPACE: nowrap">Form 10-K</font> for
the year ended December 31, 2017.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 18pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
<b><i>Changes in Accounting Policies</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
<i>Revenue Recognition</i></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">Apache Hadoop, Apache NiFi and associated open
source technology projects within the Apache Software Foundation
are made freely available within the open source
community. While these technologies have emerged to enable the
modern data center architecture, they are complex to deploy and
consume as individual components inhibiting broad adoption by
enterprises. The Company’s efforts are thus focused on
creating a software distribution of these projects by assembling,
testing and integrating key component software projects into an
open platform that address the needs of enterprises. By working in
concert with the Apache community to develop Connected Data
Platforms, Hortonworks Data Platform (“HDP”<sup style="FONT-SIZE: 11px; VERTICAL-ALIGN: top">®</sup>), Hortonworks
DataFlow (“HDF”<sup style="FONT-SIZE: 11px; VERTICAL-ALIGN: top">™</sup>) and other
offerings, the Company’s software distribution provides
customers with a scalable, secure and governed environment for
their data requirements.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">Connected Data Platforms are made available under
an Apache open source license. Open source software is an
alternative to proprietary developed software and represents a
different distribution model for the development and licensing of
commercial software code than that typically used for proprietary
software. Because open source software code is generally freely
shared, the Company does not typically generate any direct revenue
from its software development activities.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">The Company generates the predominant amount of its
revenue through support (support subscription) and consulting and
education services (professional services) arrangements with its
enterprise customers. The Company’s professional services
provide assistance in the implementation process and education
related activities.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">The Company prices support subscription offerings
based on the number of servers in a cluster, or nodes, core or edge
devices, data under management and/or the scope of support
provided. The Company’s consulting services are priced
primarily on a time and materials basis, and to a lesser extent, a
fixed fee basis, and education services are generally priced based
on attendance.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">The Company determines revenue recognition through
the following steps, which are described in more detail below:</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 6pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
 </p>
<table style="FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr style="break-inside: avoid">
<td width="5%"> </td>
<td valign="top" width="2%" align="left">•</td>
<td valign="top" width="1%"> </td>
<td valign="top" align="left">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-TOP: 0pt" align="justify">Identification of the contract or contracts with a
customer</p>
</td>
</tr>
</table>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 6pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
 </p>
<table style="FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr style="break-inside: avoid">
<td width="5%"> </td>
<td valign="top" width="2%" align="left">•</td>
<td valign="top" width="1%"> </td>
<td valign="top" align="left">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-TOP: 0pt" align="justify">Identification of the performance obligation(s) in
the contract</p>
</td>
</tr>
</table>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 6pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
 </p>
<table style="FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr style="break-inside: avoid">
<td width="5%"> </td>
<td valign="top" width="2%" align="left">•</td>
<td valign="top" width="1%"> </td>
<td valign="top" align="left">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-TOP: 0pt" align="justify">Determination of the transaction price</p>
</td>
</tr>
</table>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 6pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
 </p>
<table style="FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr style="break-inside: avoid">
<td width="5%"> </td>
<td valign="top" width="2%" align="left">•</td>
<td valign="top" width="1%"> </td>
<td valign="top" align="left">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-TOP: 0pt" align="justify">Allocation of the transaction price to the
performance obligation(s) in the contract</p>
</td>
</tr>
</table>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 6pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
 </p>
<table style="FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr style="break-inside: avoid">
<td width="5%"> </td>
<td valign="top" width="2%" align="left">•</td>
<td valign="top" width="1%"> </td>
<td valign="top" align="left">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-TOP: 0pt" align="justify">Recognition of revenue when, or as, a performance
obligation is satisfied</p>
</td>
</tr>
</table>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">The Company’s agreements with customers often
include multiple support subscription and/or professional services
elements, and these elements are sometimes included in separate
contracts. The Company considers an entire customer arrangement to
determine if separate contracts should be considered combined for
the purposes of revenue recognition.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">At contract inception, the Company assesses the
support and services product offerings or bundle of product
offerings in its contracts to identify performance obligations that
are distinct. A performance obligation is distinct when it is
separately identifiable from other items in a bundled package and
if a customer can benefit from it on its own or with other
resources that are readily available to the customer. To identify
its performance obligations, the Company considers all of the
product offerings promised in the contract. The Company has
concluded that its contracts with customers do not contain
warranties that give rise to a separate performance obligation.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">The Company works with partners in various
capacities to both identify <font style="WHITE-SPACE: nowrap">end-users</font> for their
product offerings and to provide those product offerings
to <font style="WHITE-SPACE: nowrap">end-users.</font> The
Company determines whether it is responsible for providing the
actual product or service as a principal, or for arranging for the
product or service to be provided by the third-party as an agent.
Judgment is applied to determine whether the Company is the
principal or the agent by evaluating whether the Company has
control of the product or service prior to it being transferred to
the customer. The principal versus agent assessment is performed at
the performance obligation level. Indicators that the Company
considers to support that it has control include whether the
Company is primarily responsible for fulfilling the promise to
provide the specified product or service to the customer and the
Company has discretion in establishing the price the customer
ultimately pays for the product or service. Depending upon the
level of the Company’s contractual responsibilities and
obligations for delivering solutions to end customers, the Company
has arrangements where the Company is the principal and recognizes
the gross amount invoiced to the customer and other arrangements
where the Company is an agent and recognizes the net amount
retained.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">The transaction price is the total amount of
consideration the Company expects to be entitled to in exchange for
the product offerings in a contract.
Sales, <font style="WHITE-SPACE: nowrap">value-add</font> and other
taxes the Company collects from customers concurrent with
revenue-producing activities are excluded from revenue. Some of the
Company’s contracts with customers contain variable
consideration. Variable consideration exists when the amount which
the Company expects to receive in a contract is based on the
occurrence or <font style="WHITE-SPACE: nowrap">non-occurrence</font> of
future events, such as professional services invoiced upon
substantive acceptance of milestones. The Company estimates
variable consideration in its contracts primarily using the
expected value method. In some contracts, the Company applies the
most likely amount method by considering the single most likely
amount in a limited range of possible consideration amounts. The
Company develops estimates of variable consideration on the basis
of both historical information and current trends. Variable
consideration is constrained and not included in the transaction
price when the Company believes a significant cumulative revenue
reversal is probable. In determining if a significant revenue
reversal is probable, the Company considers the amount of revenue
recognized in advance of the occurrence
or <font style="WHITE-SPACE: nowrap">non-occurrence</font> of
future events that causes invoicing to be contingent, the expected
timing of the occurrence or <font style="WHITE-SPACE: nowrap">non-occurrence</font> of
future events and the likelihood of a reversal. For example, in a
professional services contract when a portion of the fee is subject
to a substantive acceptance provision, the Company evaluates
historical acceptance rates for similar contracts, customer
specific level of risk, and the time between delivery and
acceptance when estimating and constraining variable
consideration.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">Once the Company has determined the transaction
price, the total transaction price is allocated to each performance
obligation in a manner depicting the amount of consideration to
which the Company expects to be entitled in exchange for
transferring the product(s) or service(s) to the customer (the
“allocation objective”). If the allocation objective is
met at contractual prices, no allocations are performed. Otherwise,
the Company allocates the transaction price to each performance
obligation identified in the contract on a relative stand-alone
selling price basis, except when the criteria are met for
allocating variable consideration or a discount to one or more, but
not all, performance obligations in the contract. The Company
allocates variable consideration to one or more, but not all
performance obligations when the terms of the variable payment
relate specifically to the Company’s efforts to satisfy the
performance obligation (or transfer the distinct product or
service) and when such allocation is consistent with the allocation
objective when considering all performance obligations in the
contract (<i>e.g.,</i> a time and materials based
professional services arrangement bundled with support
subscription). Determining whether the criteria for allocating
variable consideration to one or more, but not all, performance
obligations in the contract requires significant judgment and may
affect the timing and amount of revenue recognized. The Company
does not typically meet the requirements to allocate discounts to
one or more, but not all, performance obligations in a
contract.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">In order to determine the stand-alone selling
price, the Company conducts a periodic analysis to determine if
there is an observable stand-alone selling price. To have
observable pricing, the Company requires that a substantial
majority of the stand-alone selling prices for a product offering
fall within a pricing range. If a directly observable stand-alone
selling price does not exist, the Company estimates a stand-alone
selling price range by reviewing external and internal market
factors including, but not limited to, pricing practices including
historical discounting, major service groups and geographic
considerations. There is also no hierarchy for how to estimate or
otherwise determine the stand-alone selling price for product
offerings that are not sold separately, however, the Company
maximizes the use of observable data.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">Selling prices are periodically analyzed to
identify significant changes and if so, stand-alone selling prices
are updated accordingly. The Company’s process for
determining stand-alone selling price requires judgment and
considers multiple factors that are reasonably available and
maximizes the use of observable inputs that may vary over time
depending upon the unique facts and circumstances related to each
performance obligation. The Company believes that this method
results in an estimate that represents the price the Company would
charge for the product offerings if they were sold separately.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">With stand-alone selling price established as a
range, if the contractually stated prices of the underlying
performance obligation fall within the stand-alone selling price
range, the Company will use the contractually stated price to
allocate the transaction price. If the contractually stated price
for one or more performance obligations in a contract fall outside
of the stand-alone selling price range, the Company will use
the <font style="WHITE-SPACE: nowrap">mid-point</font> of the
stand-alone selling price range to allocate the transaction price
on a relative stand-alone selling price basis.</p>
<p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 1px; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">Revenues are recognized when the Company satisfies
the performance obligations under the terms of a contract when
control over the Company’s product offerings is transferred,
which generally occurs as support subscription and professional
services are delivered to the customer. Previously, under the
guidance in effect prior to the adoption of the new standard,
revenue was recognized when all of the following criteria were met:
(i) persuasive evidence of an arrangement exists,
(ii) services have been delivered, (iii) the arrangement
fee is fixed or determinable and (iv) collectability is
probable. The Company’s multiple element arrangements
generally include support subscription combined with professional
services. The Company had not established vendor specific objective
evidence of fair value (“VSOE”) for its support
subscriptions and professional services offerings, and the Company
recognized revenue on a ratable basis over the period beginning
when both the support subscription and professional services had
substantially commenced, and ended at the conclusion of the support
subscription or professional services period, whichever is longer.
Under the Company’s multiple element arrangements, the
support subscription element generally has the longest service
period and the professional services element is performed during
the earlier part of the support subscription period.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">The following describes the nature of the
Company’s primary types of revenue and the revenue
recognition policies and significant payment terms as they pertain
to the types of transactions the Company enters into with its
customers.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 18pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
<i>Support Subscription Revenue</i></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">As part of a support subscription, the Company
stands ready to help customers resolve technical issues related to
the installed platform. The support subscriptions are designed to
assist throughout a customer’s lifecycle from development
to <font style="WHITE-SPACE: nowrap"><font style="WHITE-SPACE: nowrap">proof-of-concept,</font></font> to
quality assurance and testing, to production and development.
Support subscription is generally offered under renewable, fixed
fee contracts where payments are typically due annually in advance
and may have a term of one year or multiple years. The contracts
generally do not contain refund provisions for fees earned related
to support services performed. A support subscription is viewed as
a stand-ready performance obligation comprised of a series of
distinct days of service that is satisfied ratably over time as the
services are provided. A time-elapsed output method is used to
measure progress because the Company’s efforts are expended
evenly throughout the period given the nature of the promise is a
stand-ready service. Unearned support subscription revenue is
included in deferred revenue and other contract liabilities. On
occasion, the Company may sell engineering services and/or a
premium subscription agreement that provides a customer with
development input and the opportunity to work more closely with its
developers.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 18pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
<i>Professional Services Revenue</i></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">Professional services revenue is derived primarily
from customer fees for consulting services engagements and
education services. The Company’s consulting services are
provided primarily on a time and materials basis and, to a lesser
extent, a fixed fee basis, and education services are generally
priced based on attendance. Time and material contracts are
generally invoiced based upon hours incurred on a monthly basis and
fixed fee contracts may be invoiced <font style="WHITE-SPACE: nowrap">up-front</font> or as
milestones are achieved throughout the project. Professional
services revenue is typically recognized over time as the services
are rendered. Depending on the nature of the consulting services
engagement (<i>e.g</i>., time and materials basis, fixed fee basis,
etc.), various measures of progress may be used to recognize
revenue. These measures of progress include recognizing revenue in
an amount equal to and at the time of invoicing, a measure of time
incurred relative to remaining hours expected to be delivered, or
other similar measures. These measures depict the Company’s
efforts to satisfy professional services contracts and therefore
reflect the transfer of control for the services to a customer.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 18pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
<i>Contract Costs</i></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">Contract costs, consisting primarily of sales
commissions and payroll taxes, that are incremental to obtaining a
contract with a customer are capitalized and recorded as deferred
costs. The Company expects to recover deferred contract costs over
the period of benefit from the underlying contracts. The
amortization period for recovery is consistent with the timing of
transfer to the customer of services to which the capitalized costs
relate. Contract costs that relate to an underlying transaction are
expensed commensurate with recognition of revenue as performance
obligations are satisfied. Contract costs that are incurred in
excess of those relating to an underlying transaction are not
considered commensurate with recognition of revenue as performance
obligations are satisfied, and are amortized on a straight-line
basis over the anticipated average customer life of five years.
Under the guidance in effect prior to the adoption of the new
standard, the Company previously expensed these costs as incurred.
Contract costs were $49.8 million as of September
30, 2018. For the three and nine months ended
September 30, 2018, amortization expense for the contract
costs were $9.2 million and $24.6 million,
respectively, and there was no impairment loss in relation to the
costs capitalized. The Company does not incur direct
fulfillment-related costs of a nature required to be capitalized
and amortized.</p>
<p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 1px; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 18px; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
<i>Deferred Revenue and Contingent Revenue</i></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">Deferred revenue consists of amounts invoiced to
customers but not yet recognized as revenue. The Company records
revenue and a corresponding contract asset when consideration
allocated to a transferred product offering is more than the amount
billable to customers in the current period. Under the guidance in
effect prior to the adoption of the new standard, the Company
previously limited the amount of revenue recognized for delivered
elements to the amount that was not contingent on the future
delivery of product offerings, or subject to the Company’s
future performance obligations.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 18pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
<i>Contract Assets</i></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">Contract assets consist of the right to
consideration in exchange for product offerings that the Company
has transferred to a customer when that right is conditional and is
not only subject to the passage of time (<i>e.g.</i>, performance
prior to invoicing on fixed fee professional service arrangements
with substantive acceptance). When the Company has unconditional
rights to consideration, except for the passage of time, a
receivable will be recorded on the condensed consolidated balance
sheets. The Company does not typically include extended payment
terms in its contracts with customers.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 18pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
<i>Contract Liabilities</i></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">Contract liabilities represent an obligation to
transfer product offerings for which the Company has received
consideration, or for which an amount of consideration is due from
the customer (<i>e.g.</i>, support subscription arrangements where
consideration is paid annually in advance). Contract liabilities
are comprised of short-term and long-term deferred revenue and
other contract liabilities. The Company’s contract balances
will be reported in a net contract asset or liability position on
a <font style="WHITE-SPACE: nowrap"><font style="WHITE-SPACE: nowrap">contract-by-contract</font></font> basis
at the end of each reporting period.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">Other than the changes to the above policies, there
have been no other material changes to the Company’s
significant accounting policies described in the Company’s
Annual Report on Form <font style="WHITE-SPACE: nowrap">10-K</font> for the fiscal
year ended December 31, 2017 that have had a material impact
on the Company’s condensed consolidated financial statements
and related notes.</p>
</div>
-910000
1
297184000
-114572000
6700000
408000
4958000
59079000
2596000
20310000
19315000
4062000
true
189000
71096000
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">The following outstanding shares of common stock
equivalents were excluded from the computation of diluted net loss
per share of common stock for the periods presented since including
them would have been anti-dilutive:</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 12pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
 </p>
<table style="FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" cellspacing="0" cellpadding="0" width="76%" align="center" border="0">
<tr style="COLOR: white; LINE-HEIGHT: 0pt; VISIBILITY: hidden">
<td width="74%"></td>
<td valign="bottom" width="3%"></td>
<td></td>
<td nowrap="nowrap"></td>
<td></td>
<td valign="bottom" width="3%"></td>
<td></td>
<td nowrap="nowrap"></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; break-inside: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="6" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Nine Months Ended September 30,</b></font></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 8pt; break-inside: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>2018</b></font></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>2017</b></font></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Outstanding stock options</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">3,325,356</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">5,345,379</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Unvested restricted stock</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">137,919</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Unvested RSUs</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">8,598,058</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">11,790,527</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Unvested PSUs</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">714,711</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">858,699</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Estimated ESPP shares to be issued</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">52,035</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">68,212</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Common stock subject to repurchase</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">15,553</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Common stock warrants</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">3,250,000</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Exercise and conversion of common stock warrants</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">476,368</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Total</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">12,690,160</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">21,942,657</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
</table>
<br class="Apple-interchange-newline" />
</div>
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">As of September 30, 2018, future minimum lease
commitments under <font style="WHITE-SPACE: nowrap">non-cancelable</font> leases
are as follows (in thousands):</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 12pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
 </p>
<table style="FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" cellspacing="0" cellpadding="0" width="84%" align="center" border="0">
<tr style="COLOR: white; LINE-HEIGHT: 0pt; VISIBILITY: hidden">
<td width="90%"></td>
<td valign="bottom" width="4%"></td>
<td></td>
<td style="FONT-SIZE: 8pt" nowrap="nowrap"></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; break-inside: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Leases</b></font></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Three months ending December 31, 2018</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">1,170</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Years ending December 31, 2019</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">5,857</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
2020</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">5,873</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
2021</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">5,382</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
2022</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">4,762</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Thereafter</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">17,889</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Gross lease payments</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">40,933</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Less: <font style="WHITE-SPACE: nowrap">Non-cancelable</font> subtenant
receipts</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(391</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Net lease payments</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">40,542</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
</table>
</div>
262000
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">The following table disaggregates the
Company’s revenue by customer domicile (in thousands):</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 12pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
 </p>
<table style="FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" cellspacing="0" cellpadding="0" width="92%" align="center" border="0">
<tr>
<td width="62%"></td>
<td valign="bottom" width="4%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="4%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="4%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="4%"></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: "Times New Roman"; break-inside: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="6" align="center">
<b>Three Months Ended September 30,</b></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="6" align="center">
<b>Nine Months Ended September 30,</b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: "Times New Roman"; break-inside: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><b>2018(*)<sup style="FONT-SIZE: 9px; VERTICAL-ALIGN: top"> </sup></b></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><b>2017</b></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><b>2018(*)<sup style="FONT-SIZE: 9px; VERTICAL-ALIGN: top"> </sup></b></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><b>2017</b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
United States</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">58,348</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">48,830</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">170,924</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">135,049</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Rest of world</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">28,826</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">20,171</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">81,654</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">51,755</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Total revenue</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">87,174</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">69,001</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">252,578</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">186,804</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
</table>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 12pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
 </p>
<table style="FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr style="break-inside: avoid">
<td valign="top" width="4%" align="left">(*)</td>
<td valign="top" align="left">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-TOP: 0pt" align="justify">As noted in Note 1—“Description of
Business and Summary of Significant Accounting Policies,” the
Company adopted the new standard as of January 1, 2018 using
the modified retrospective approach. As a result of adopting
ASU <font style="WHITE-SPACE: nowrap">2014-09</font> <i>(Topic
606)</i> and its corresponding ASUs, accumulated
deficit decreased by $25.1 million as of January 1, 2018.
Accordingly, the revenues reported for the three and nine months
ended September 30, 2018 reflect the new standard, while the
revenues reported for the three and nine months ended
September 30, 2017 do not. The impact of the new standard on
total revenues was $1.8 million and $0.7 million for the
three and nine months ended September 30, 2018,
respectively.</p>
</td>
</tr>
</table>
</div>
252578000
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 18pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
<b>7. REVENUE FROM CONTRACTS WITH CUSTOMERS</b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">The following table reflects the Company’s
contract assets and contract liabilities (in thousands):</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 12pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
 </p>
<table style="FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" cellspacing="0" cellpadding="0" width="92%" align="center" border="0">
<tr style="COLOR: white; LINE-HEIGHT: 0pt; VISIBILITY: hidden">
<td width="88%"></td>
<td valign="bottom" width="4%"></td>
<td></td>
<td nowrap="nowrap"></td>
<td></td>
<td valign="bottom" width="4%"></td>
<td></td>
<td nowrap="nowrap"></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; break-inside: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>September 30,<br />
2018</b></font></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>January 1,<br />
2018</b></font></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Accounts receivable, net</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">78,374</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">112,073</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Contract assets</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">530</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">2,457</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Short-term deferred revenue</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">163,077</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">162,299</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Other contract liabilities</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">15,829</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">13,071</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Long-term deferred revenue</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">86,279</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">77,138</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Total contract liabilities</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">265,185</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">252,508</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
</table>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">Impairment losses recognized on the Company’s
accounts receivable were nil and $0.2 million for three and
nine months ended September 30, 2018, respectively. No
impairment loss was recognized on the Company’s contract
assets during the three and nine months ended September 30,
2018.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 12pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">Significant changes in the contract assets and the
contract liabilities balances during the period are as follows (in
thousands):</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 12pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
 </p>
<table style="FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" cellspacing="0" cellpadding="0" width="92%" align="center" border="0">
<tr style="COLOR: white; LINE-HEIGHT: 0pt; VISIBILITY: hidden">
<td width="83%"></td>
<td valign="bottom" width="3%"></td>
<td></td>
<td nowrap="nowrap"></td>
<td></td>
<td valign="bottom" width="3%"></td>
<td></td>
<td nowrap="nowrap"></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; break-inside: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Contract<br />
Assets</b></font></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Contract<br />
Liabilities</b></font></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
January 1, 2018</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">2,457</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">252,508</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Amount transferred to receivables from contract assets</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(2,457</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Contract asset additions</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">2,302</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Performance obligations satisfied during the period that were
included in the contract liability balance at the beginning of the
period</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(58,907</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Increases due to invoicing prior to satisfaction of performance
obligations</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">55,933</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
March 31, 2018</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">2,302</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">249,534</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Amount transferred to receivables from contract
assets</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(2,263</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Contract asset additions</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">265</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Performance obligations satisfied during the period that were
included in the contract liability balance at the beginning of the
period</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(62,691</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Increases due to invoicing prior to satisfaction of performance
obligations</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">72,279</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
June 30, 2018</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">304</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">259,122</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Amount transferred to receivables from contract
assets</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(263</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Contract asset additions</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">489</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Performance obligations satisfied during the period that were
included in the contract liability balance at the beginning of the
period</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(61,639</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Increases due to invoicing prior to satisfaction of performance
obligations</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">67,702</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
September 30, 2018</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">530</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">265,185</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
</table>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 18pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
<b><i>Performance Obligations</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">During the three months ended September 30,
2018, there was no net revenue recognized from the Company’s
performance obligations that was satisfied in previous periods.
During the nine months ended September 30, 2018, net revenue
recognized from the Company’s performance obligations
satisfied in previous periods was immaterial and was primarily
related to contract modifications.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">As of September 30, 2018,
approximately $350.5 million of revenue is expected to be
recognized from remaining performance obligations in the amount of
approximately $234.4 million over the next 12 months and
approximately $116.1 million thereafter.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 18pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
<b><i>Practical Expedients</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">The Company elected to apply a practical expedient
related to significant financing components. The practical
expedient states that the promised amount of consideration for the
effects of a significant financing component is not adjusted if the
Company expects, at contract inception, that the period between
when the Company transfers a promised product offering to a
customer and when the customer pays for that product offering will
be one year or less.</p>
</div>
P5Y5M26D
9.20
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
<b>6. STOCKHOLDERS’ EQUITY (DEFICIT)</b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
<b><i>Common Stock</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">Each share of common stock is entitled to one vote
for matters to be voted on by the stockholders of the Company. The
holders of common stock are also entitled to receive dividends
whenever declared by the Board of Directors from legally available
funds. The Company has not paid a dividend since its inception, and
has no current plans to do so.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 18pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
<b><i>2011 Stock Option and Grant Plan</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">In December 2014, in connection with the closing of
the Company’s IPO, the Hortonworks, Inc. 2011 Stock Option
and Grant Plan, as amended (the “2011 Plan”), was
terminated as to future grants and shares authorized for issuance
under the 2011 Plan were canceled (except for those shares reserved
for issuance upon exercise of outstanding stock options). As of
September 30, 2018, options to purchase 2,907,071 shares of
common stock were outstanding under the 2011 Plan pursuant to their
original terms and no shares were available for future grant.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 18pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
<b><i>2014 Stock Option and Incentive Plan</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">The Hortonworks, Inc. 2014 Stock Option and
Incentive Plan (the “2014 Plan”) was adopted by the
Company’s Board of Directors in September 2014. The 2014 Plan
was approved by the Company’s stockholders in November 2014
and became effective immediately prior to the closing of the
Company’s IPO. All shares that had been available for
issuance but not covered by outstanding awards under the 2011 Plan
rolled into the 2014 Plan following the consummation of the IPO.
The 2014 Plan allows the plan administrator to make equity-based
incentive awards to the Company’s full or part-time officers,
employees, <font style="WHITE-SPACE: nowrap">non-employee</font> directors
and consultants. An amendment and restatement of the 2014 Plan (the
“Amended 2014 Plan”) to increase the number of shares
reserved for issuance, among other things, was approved by the
Board of Directors in April 2016 and by the Company’s
stockholders in May 2016.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">The Company initially reserved 6,000,000 shares of
the Company’s common stock for the issuance of awards under
the 2014 Plan. This was in addition to the 923,732 shares of the
Company’s common stock that remained available for issuance
under the Company’s 2011 Plan as of the Company’s IPO
date and that rolled into the 2014 Plan. The 2014 Plan also
provides that the number of shares reserved and available for
issuance under the plan will automatically increase each
January 1, beginning on January 1, 2015, by five percent
of the outstanding number of shares of the Company’s common
stock on the immediately preceding December 31 or such lesser
number of shares as determined by the plan administrator. This
number is subject to adjustment in the event of a stock split,
stock dividend or other change in the Company’s
capitalization. The amendment and restatement of the 2014 Plan
increased the number of shares reserved for issuance under the
Amended 2014 Plan by 7,000,000 shares.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">In April, June and July 2015, under the 2014 Plan,
the Company granted an aggregate of 421,484 performance-based
restricted stock units (“PSUs”) to certain executive
and senior officers (the “Grantees”) that vest upon
(a) the achievement of specified performance targets as set by
the Compensation Committee and (b) the Grantee remaining
employed during the respective performance cycles over a service
period of up to three years, with such service periods commencing
on July 1, 2015. The performance target value for each
performance cycle is based on an average of the applicable internal
and external billings amounts for the respective performance cycle.
The number of PSUs that vest for a given performance cycle is based
on the Company’s achievement of actual billings relative to
the performance target value.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">In October 2015, under the 2014 Plan, the Company
granted an aggregate of 266,084 PSUs to the Grantees that vest upon
(a) the achievement of specified performance targets as set by
the Compensation Committee and (b) the Grantee remaining
employed for the duration of the <font style="WHITE-SPACE: nowrap">respective 12-month performance</font> cycles
over a service period of up to two years, with such service periods
commencing on January 1, 2016. The number of PSUs that
vest for a given performance cycle is based on the Company’s
achievement of earnings before interest, taxes, depreciation and
amortization growth and revenue growth relative to the linear
ranking of <font style="WHITE-SPACE: nowrap">a pre-selected group</font> of
the Company’s peers.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">In September 2017, under the Amended 2014 Plan, the
Company granted 714,711 market-based PSUs to the Company’s
Chief Executive Officer that vest upon (a) the achievement of
a specific market-based performance goal related to the price of
the Company’s common stock over forty consecutive trading
days during a performance cycle of four years, with such
performance cycle commencing on September 10, 2017 and
(b) the Chief Executive Officer remaining employed through
achievement of the performance goal. If the Company achieves the
performance goal within the performance cycle, and the Chief
Executive Officer remains employed through such achievement,
100 percent of the PSUs will vest upon achievement of the
market-based performance goal.</p>
<p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 1px; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">As of September 30, 2018, options to purchase
shares of stock, restricted stock units (“RSUs”) and
PSUs covering an aggregate of 9,731,054 shares of common stock were
outstanding under the Amended 2014 Plan.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">On January 1, 2018, the shares reserved for
issuance under the Amended 2014 Plan was increased by 3,637,815
shares. As of September 30, 2018, there were 26,293,667 shares
reserved for issuance under the Amended 2014 Plan, of which 555,813
shares remained available for issuance.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 18pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
<b><i>2014 Employee Stock Purchase Plan</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">The Company’s ESPP was adopted and approved
by the Company’s Board of Directors in September 2014, was
adopted and approved by the Company’s stockholders in
November 2014, and was amended in August 2015 to allow employees of
certain of the Company’s <font style="WHITE-SPACE: nowrap">non-U.S.</font> subsidiaries
to participate in the ESPP. The ESPP initially reserved and
authorized the issuance of up to a total of 2,500,000 shares
of common stock to participating employees. The ESPP provides that
the number of shares reserved and available for issuance will
automatically increase each January 1, beginning on
January 1, 2015, by the lesser of (i) 1,000,000 shares of
common stock, (ii) one percent of the outstanding number of
shares of the Company’s common stock on the immediately
preceding December 31, or (iii) such lesser number of
shares as determined by the ESPP administrator. This number is
subject to adjustment in the event of a stock split, stock dividend
or other change in the Company’s capitalization. On
January 1, 2018, the shares reserved for issuance under the
ESPP was increased by 727,563 shares. As of September 30,
2018, there were 4,734,330 shares reserved for issuance under the
ESPP, of which 1,909,668 remained available for purchase.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">Each employee who is a participant in the ESPP may
purchase shares by authorizing payroll deductions of up to
15 percent of his or her base compensation during an offering
period. Unless the participating employee has previously withdrawn
from the offering, his or her accumulated payroll deductions will
be used to purchase shares on the last business day of the offering
period at a price equal to 85 percent of the fair market value
of the shares on the first business day or the last business day of
the offering period, whichever is lower. Under applicable tax
rules, an employee may purchase no more than $25,000 worth of
shares of common stock, valued at the start of the purchase period,
under the ESPP in any calendar year.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">As of September 30, 2018, there was
$3.1 million of unrecognized stock-based compensation expense
related to the ESPP, which is expected to be recognized over a
weighted-average period of 0.60 years.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 18pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
<b><i>Stock Options</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">A summary of information related to stock options
for the nine months ended September 30, 2018 is presented
below:</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 12pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
 </p>
<table style="FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" cellspacing="0" cellpadding="0" width="92%" align="center" border="0">
<tr style="COLOR: white; LINE-HEIGHT: 0pt; VISIBILITY: hidden">
<td width="76%"></td>
<td valign="bottom" width="4%"></td>
<td></td>
<td style="FONT-SIZE: 8pt" nowrap="nowrap"></td>
<td></td>
<td valign="bottom" width="4%"></td>
<td></td>
<td style="FONT-SIZE: 8pt" nowrap="nowrap"></td>
<td></td>
<td valign="bottom" width="4%"></td>
<td></td>
<td style="FONT-SIZE: 8pt" nowrap="nowrap"></td>
<td></td>
<td valign="bottom" width="4%"></td>
<td></td>
<td style="FONT-SIZE: 8pt" nowrap="nowrap"></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; break-inside: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Number of<br />
Shares<br />
Underlying<br />
Outstanding<br />
Options</b></font></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Weighted-<br />
Average<br />
Exercise<br />
Price Per<br />
Share</b></font></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Weighted-<br />
Average<br />
Remaining<br />
Contractual Life<br />
(Years)</b></font></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Aggregate<br />
Intrinsic<br />
Value</b></font></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 8pt; break-inside: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td valign="bottom" colspan="2"> </td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td valign="bottom" colspan="2"> </td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td valign="bottom" colspan="2"> </td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>(in thousands)</b></font></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Outstanding—December 31, 2017</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">4,490,445</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">11.08</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">6.14</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">41,525</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Granted</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Exercised</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(1,043,938</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">9.20</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Canceled/forfeited</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(121,151</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">19.15</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Outstanding—September 30, 2018</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">3,325,356</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">11.37</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">5.49</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">38,198</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Exercisable—September 30, 2018</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">3,280,006</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman""> 11.22</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">5.47</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman""> 38,131</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
</table>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">Aggregate intrinsic value represents the difference
between the exercise price of the options to purchase common stock
and the fair value of the Company’s common stock. The
aggregate intrinsic value of options exercised for the three and
nine months ended September 30, 2018 was $5.4 million and
$11.9 million, respectively. The aggregate intrinsic value of
options exercised for the three and nine months ended
September 30, 2017 was $7.4 million and
$12.8 million, respectively.</p>
<p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 1px; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">As of September 30, 2018, there was
$0.4 million of unrecognized stock-based compensation expense
related to unvested stock options which is expected to be
recognized over a weighted-average period of 0.46 years.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 18pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
<b><i>Restricted Stock</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">A summary of information related to restricted
stock for the nine months ended September 30, 2018 is
presented below:</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 12pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
 </p>
<table style="FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" cellspacing="0" cellpadding="0" width="76%" align="center" border="0">
<tr style="COLOR: white; LINE-HEIGHT: 0pt; VISIBILITY: hidden">
<td width="88%"></td>
<td valign="bottom" width="4%"></td>
<td></td>
<td style="FONT-SIZE: 8pt" nowrap="nowrap"></td>
<td></td>
<td valign="bottom" width="4%"></td>
<td></td>
<td style="FONT-SIZE: 8pt" nowrap="nowrap"></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; break-inside: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Number of<br />
Shares Issued<br />
Outside the<br />
Stock Plans</b></font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b><font style="WHITE-SPACE: nowrap">Weighted-Average</font><br />
Grant Date<br />
Fair Value<br />
Per Share (*)</b></font></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Unvested balance—December 31, 2017</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">137,919</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">23.76</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Granted</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom"> </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Vested</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(137,919</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom"> </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">23.76</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Canceled/forfeited</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom"> </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Unvested balance—September 30, 2018</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom"> </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
</table>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 12pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
 </p>
<table style="FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr style="break-inside: avoid">
<td valign="top" width="4%" align="left">(*)</td>
<td valign="top" align="left">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-TOP: 0pt" align="justify">The weighted-average grant date fair value per
share relates to 1,424,946 shares of restricted stock paid as part
of the acquisition of Onyara, Inc. The remaining 137,919 shares
were vested as of September 30, 2018.</p>
</td>
</tr>
</table>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">No restricted stock was granted during the three or
nine months ended September 30, 2018. The fair value of the
restricted stock vested during both the three and nine months ended
September 30, 2018 was $3.1 million and the fair value of
the restricted stock vested during the three and nine months ended
September 30, 2017 was $2.3 million.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">As of September 30, 2018, there was no
unrecognized stock-based compensation expense related to restricted
stock.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 18pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
<b><i>Restricted Stock Units</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">A summary of information related to RSUs for the
nine months ended September 30, 2018 is presented below:</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 12pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
 </p>
<table style="FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" cellspacing="0" cellpadding="0" width="76%" align="center" border="0">
<tr style="COLOR: white; LINE-HEIGHT: 0pt; VISIBILITY: hidden">
<td width="88%"></td>
<td valign="bottom" width="4%"></td>
<td></td>
<td style="FONT-SIZE: 8pt" nowrap="nowrap"></td>
<td></td>
<td valign="bottom" width="4%"></td>
<td></td>
<td style="FONT-SIZE: 8pt" nowrap="nowrap"></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; break-inside: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Number of<br />
Shares Issued<br />
Under<br />
Stock Plans</b></font></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b><font style="WHITE-SPACE: nowrap">Weighted-Average</font><br />
Grant Date<br />
Fair Value<br />
Per  Share</b></font></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Unvested balance—December 31, 2017</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">9,579,841</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">13.10</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Granted</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">5,037,789</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">19.75</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Vested</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(4,932,258</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">13.65</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Canceled/forfeited</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(1,087,314</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">13.83</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Unvested balance—September 30, 2018</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">8,598,058</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">16.59</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
</table>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">The fair value of the RSUs that vested during the
three and nine months ended September 30, 2018 was
$31.8 million and $93.8 million, respectively. The fair
value of the RSUs that vested during the three and nine months
ended September 30, 2017 was $24.1 million and
$68.0 million, respectively.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">As of September 30, 2018, there was
$122.9 million of unrecognized stock-based compensation
expense related to RSUs to be recognized over a weighted-average
period of 1.52 years.</p>
<p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 1px; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 18px; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
<b><i>Performance-Based Restricted Stock Units</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">A summary of information related to PSUs for the
nine months ended September 30, 2018 is presented below:</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 12pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
 </p>
<table style="FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" cellspacing="0" cellpadding="0" width="76%" align="center" border="0">
<tr style="COLOR: white; LINE-HEIGHT: 0pt; VISIBILITY: hidden">
<td width="88%"></td>
<td valign="bottom" width="4%"></td>
<td></td>
<td style="FONT-SIZE: 8pt" nowrap="nowrap"></td>
<td></td>
<td valign="bottom" width="4%"></td>
<td></td>
<td style="FONT-SIZE: 8pt" nowrap="nowrap"></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; break-inside: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Number of<br />
Shares Issued<br />
Under<br />
Stock Plans</b></font></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b><font style="WHITE-SPACE: nowrap">Weighted-Average</font><br />
Grant Date<br />
Fair Value<br />
Per  Share</b></font></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Unvested balance—December 31, 2017</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">839,857</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">14.58</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Granted</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Vested</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(84,818</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">19.19</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Canceled/forfeited</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(40,328</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">21.57</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Unvested balance—September 30, 2018</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">714,711</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">13.39</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
</table>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">The fair value of the PSUs that vested during the
three and nine months ended September 30, 2018 was
$0.4 million and $1.7 million, respectively. The fair
value of PSUs vested during the three and for the nine months ended
September 30, 2017 was $0.6 million and
$1.9 million, respectively.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">As of September 30, 2018, there was no
unrecognized stock-based compensation expense related to PSUs.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 18pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
<b><i>Restricted Stock and Stock Options Subject to
Repurchase</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">The 2011 Plan allowed for the granting of options
that may be exercised before the options have vested. Shares issued
as a result of early exercise are shares that have not vested and
are deemed to be restricted stock; they are subject to a vesting
schedule identical to the vesting schedule of the related options,
as well as certain other restrictions. Shares issued as a result of
early exercise that have not vested are subject to repurchase by
the Company upon termination of the purchaser’s employment or
services, at the price paid by the purchaser, and are not deemed to
be issued for accounting purposes until those related shares vest.
The amounts received in exchange for these shares have been
recorded as a liability on the accompanying condensed consolidated
balance sheets and will be reclassified into common stock and
additional <font style="WHITE-SPACE: nowrap">paid-in</font> capital as
the shares vest. The Company’s right to repurchase these
shares generally lapses with respect to 1/48 of the original grant
amount per month over four years.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">All shares of restricted stock and early exercised
options have vested and there were no repurchase liabilities as of
September 30, 2018. The number of shares of restricted stock
and early exercised options to purchase common stock outstanding
subject to the Company’s right of repurchase as of
December 31, 2017 was 10,500, which had repurchase prices
ranging from $8.46 to $14.22 per share. The liability for shares
subject to repurchase as of December 31, 2017 was
immaterial.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 18pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
<b><i>Stock-Based Compensation Expense</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">Total stock-based compensation expense, including
stock-based compensation expense to <font style="WHITE-SPACE: nowrap">non-employees,</font> by
category was as follows (in thousands):</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 12pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
 </p>
<table style="FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" cellspacing="0" cellpadding="0" width="92%" align="center" border="0">
<tr style="COLOR: white; LINE-HEIGHT: 0pt; VISIBILITY: hidden">
<td width="64%"></td>
<td valign="bottom" width="4%"></td>
<td></td>
<td style="FONT-SIZE: 8pt" nowrap="nowrap"></td>
<td></td>
<td valign="bottom" width="4%"></td>
<td></td>
<td style="FONT-SIZE: 8pt" nowrap="nowrap"></td>
<td></td>
<td valign="bottom" width="4%"></td>
<td></td>
<td style="FONT-SIZE: 8pt" nowrap="nowrap"></td>
<td></td>
<td valign="bottom" width="4%"></td>
<td></td>
<td style="FONT-SIZE: 8pt" nowrap="nowrap"></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; break-inside: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="6" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Three Months Ended September 30,</b></font></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="6" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Nine Months Ended September 30,</b></font></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 8pt; break-inside: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>2018</b></font></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>2017</b></font></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>2018</b></font></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>2017</b></font></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Cost of revenue</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">2,500</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">2,090</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">7,476</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">5,489</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Sales and marketing</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">7,736</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">10,011</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">22,735</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">26,606</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Research and development</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">6,042</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">9,463</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">23,331</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">30,401</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
General and administrative</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">8,466</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">6,969</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">28,932</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">16,659</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Total stock-based compensation expense</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">24,744</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">28,533</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">82,474</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">79,155</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
</table>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 18pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
<b><i>Warrants</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">In July 2011, the Company issued a warrant to
purchase 6,500,000 shares of Series A preferred stock at an
exercise price of $0.005 per share. The warrant was issued to
Yahoo! Inc. (“Yahoo!”) in connection with the
Company’s Series A financing and the transactions
contemplated thereby, including commercial agreements with Yahoo!
providing for support subscription offerings and certain rights to
technology. In 2017, Verizon Communications, Inc.
(“Verizon”) acquired the operating assets of Yahoo!.
Yahoo! was subsequently renamed Altaba Inc. (“Altaba”),
and the July 2011 warrant remained an asset of Altaba.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">In June 2014, the Company issued to Yahoo!
a warrant to purchase a number of shares of common stock up to
one percent of the sum of (i) 45,585,496, plus (ii) the
number of shares of Series D preferred stock or shares of such
stock issuable upon exercise of warrants to purchase such stock (on
an as converted to common stock basis) issued or issuable upon
exercise of warrants to purchase Series D preferred stock that
were sold, if any, by the Company during the period commencing on
June 9, 2014 and ending immediately prior to the occurrence of
a corporate event at an exercise price of $8.46 per
share. As described above, in 2017, Verizon acquired the operating
assets of Yahoo!, and Yahoo! was subsequently renamed Altaba. The
June 2014 warrant remained an asset of Altaba.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">The warrants vested upon consummation of the
Company’s IPO in December 2014 and would have expired nine
years from the date of issuance. On January 31, 2018, Altaba
(formerly, Yahoo!) net exercised the warrants issued in July 2011
and June 2014 for a total of 3,522,730 shares of the
Company’s common stock.</p>
</div>
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">The following table sets forth the computation of
basic and diluted net loss per share of common stock (in thousands,
except share and per share amounts):</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 12pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
 </p>
<table style="FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" cellspacing="0" cellpadding="0" width="92%" align="center" border="0">
<tr style="COLOR: white; LINE-HEIGHT: 0pt; VISIBILITY: hidden">
<td width="56%"></td>
<td valign="bottom" width="2%"></td>
<td></td>
<td nowrap="nowrap"></td>
<td></td>
<td valign="bottom" width="2%"></td>
<td></td>
<td nowrap="nowrap"></td>
<td></td>
<td valign="bottom" width="2%"></td>
<td></td>
<td nowrap="nowrap"></td>
<td></td>
<td valign="bottom" width="2%"></td>
<td></td>
<td nowrap="nowrap"></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; break-inside: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="6" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Three Months Ended September 30,</b></font></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="6" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Nine Months Ended September 30,</b></font></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 8pt; break-inside: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>2018</b></font></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>2017</b></font></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>2018</b></font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>2017</b></font></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Net loss</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(31,574</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(45,368</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(114,826</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom"> </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(156,279</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Weighted-average shares used in computing net loss per share of
common stock</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">81,797,566</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">67,920,575</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">79,166,112</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">64,747,020</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Net loss per share, basic and diluted</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(0.39</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(0.67</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(1.45</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom"> </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(2.41</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
</table>
<br class="Apple-interchange-newline" /></div>
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">Total stock-based compensation expense, including
stock-based compensation expense to <font style="WHITE-SPACE: nowrap">non-employees,</font> by
category was as follows (in thousands):</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 12pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
 </p>
<table style="FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" cellspacing="0" cellpadding="0" width="92%" align="center" border="0">
<tr style="COLOR: white; LINE-HEIGHT: 0pt; VISIBILITY: hidden">
<td width="64%"></td>
<td valign="bottom" width="4%"></td>
<td></td>
<td style="FONT-SIZE: 8pt" nowrap="nowrap"></td>
<td></td>
<td valign="bottom" width="4%"></td>
<td></td>
<td style="FONT-SIZE: 8pt" nowrap="nowrap"></td>
<td></td>
<td valign="bottom" width="4%"></td>
<td></td>
<td style="FONT-SIZE: 8pt" nowrap="nowrap"></td>
<td></td>
<td valign="bottom" width="4%"></td>
<td></td>
<td style="FONT-SIZE: 8pt" nowrap="nowrap"></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; break-inside: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="6" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Three Months Ended September 30,</b></font></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="6" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Nine Months Ended September 30,</b></font></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 8pt; break-inside: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>2018</b></font></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>2017</b></font></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>2018</b></font></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>2017</b></font></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Cost of revenue</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">2,500</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">2,090</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">7,476</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">5,489</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Sales and marketing</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">7,736</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">10,011</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">22,735</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">26,606</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Research and development</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">6,042</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">9,463</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">23,331</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">30,401</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
General and administrative</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">8,466</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">6,969</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">28,932</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">16,659</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Total stock-based compensation expense</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">24,744</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">28,533</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">82,474</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">79,155</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
</table>
<br class="Apple-interchange-newline" />
</div>
153889000
P5Y5M19D
121151
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">The following table summarizes the Company’s
intangible assets, net (in thousands):</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 12pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
 </p>
<table style="FONT-SIZE: 8pt; FONT-FAMILY: "Times New Roman"; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" cellspacing="0" cellpadding="0" width="84%" align="center" border="0">
<tr style="COLOR: white; LINE-HEIGHT: 0pt; VISIBILITY: hidden">
<td width="81%"></td>
<td valign="bottom" width="4%"></td>
<td></td>
<td nowrap="nowrap"></td>
<td></td>
<td valign="bottom" width="4%"></td>
<td></td>
<td nowrap="nowrap"></td>
<td></td>
<td valign="bottom" width="4%"></td>
<td></td>
<td nowrap="nowrap"></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; break-inside: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="10" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>September 30, 2018</b></font></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 8pt; break-inside: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Gross Carrying<br />
Amount</b></font></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Accumulated<br />
Amortization</b></font></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Net</b></font></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Developed technology</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">4,395</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(2,810</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">1,585</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Intangible assets, net</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">4,395</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(2,810</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">1,585</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 1pt">
<td height="16"></td>
<td height="16" colspan="12"></td>
</tr>
<tr style="FONT-SIZE: 8pt; break-inside: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="10" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>December 31,
2017</b></font></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 8pt; break-inside: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Gross Carrying<br />
Amount</b></font></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Accumulated<br />
Amortization</b></font></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Net</b></font></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Developed technology</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">4,395</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(2,153</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">2,242</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Intangible assets, net</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">4,395</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(2,153</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">2,242</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
</table>
<br class="Apple-interchange-newline" />
</div>
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">A summary of information related to RSUs for the
nine months ended September 30, 2018 is presented below:</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 12pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
 </p>
<table style="FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" cellspacing="0" cellpadding="0" width="76%" align="center" border="0">
<tr style="COLOR: white; LINE-HEIGHT: 0pt; VISIBILITY: hidden">
<td width="88%"></td>
<td valign="bottom" width="4%"></td>
<td></td>
<td style="FONT-SIZE: 8pt" nowrap="nowrap"></td>
<td></td>
<td valign="bottom" width="4%"></td>
<td></td>
<td style="FONT-SIZE: 8pt" nowrap="nowrap"></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; break-inside: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Number of<br />
Shares Issued<br />
Under<br />
Stock Plans</b></font></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b><font style="WHITE-SPACE: nowrap">Weighted-Average</font><br />
Grant Date<br />
Fair Value<br />
Per  Share</b></font></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Unvested balance—December 31, 2017</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">9,579,841</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">13.10</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Granted</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">5,037,789</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">19.75</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Vested</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(4,932,258</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">13.65</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Canceled/forfeited</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(1,087,314</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">13.83</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Unvested balance—September 30, 2018</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">8,598,058</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">16.59</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
</table>
<br class="Apple-interchange-newline" /></div>
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 18pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
<b>10. SEGMENT AND GEOGRAPHICAL INFORMATION</b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
<b><i>Disaggregation of Revenue</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">The Company’s chief operating decision maker
reviews financial information on a consolidated basis for the
purposes of allocating resources and evaluating financial
performance. The Company’s chief operating decision maker has
direct reports responsible for various functions within the Company
(<i>e.g.,</i> business strategy, finance, legal,
business development, products, etc.) on a consolidated basis.
There are no segment managers who are held accountable for
operations or operating results. The Company’s primary growth
strategy is predicated upon the growth of the support subscription
business, and the Company’s key business metrics reflect this
strategy. Professional services are offered with the overall goal
of securing and retaining support subscription customers and
growing support subscription revenue. Accordingly, management has
determined the Company operates in one reportable segment.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">The following table disaggregates the
Company’s revenue by customer domicile (in thousands):</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 12pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
 </p>
<table style="FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" cellspacing="0" cellpadding="0" width="92%" align="center" border="0">
<tr>
<td width="62%"></td>
<td valign="bottom" width="4%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="4%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="4%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="4%"></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: "Times New Roman"; break-inside: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="6" align="center">
<b>Three Months Ended September 30,</b></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="6" align="center">
<b>Nine Months Ended September 30,</b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: "Times New Roman"; break-inside: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><b>2018(*)<sup style="FONT-SIZE: 9px; VERTICAL-ALIGN: top"> </sup></b></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><b>2017</b></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><b>2018(*)<sup style="FONT-SIZE: 9px; VERTICAL-ALIGN: top"> </sup></b></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><b>2017</b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
United States</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">58,348</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">48,830</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">170,924</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">135,049</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Rest of world</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">28,826</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">20,171</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">81,654</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">51,755</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Total revenue</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">87,174</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">69,001</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">252,578</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">186,804</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
</table>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 12pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
 </p>
<table style="FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr style="break-inside: avoid">
<td valign="top" width="4%" align="left">(*)</td>
<td valign="top" align="left">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-TOP: 0pt" align="justify">As noted in Note 1—“Description of
Business and Summary of Significant Accounting Policies,” the
Company adopted the new standard as of January 1, 2018 using
the modified retrospective approach. As a result of adopting
ASU <font style="WHITE-SPACE: nowrap">2014-09</font> <i>(Topic
606)</i> and its corresponding ASUs, accumulated
deficit decreased by $25.1 million as of January 1, 2018.
Accordingly, the revenues reported for the three and nine months
ended September 30, 2018 reflect the new standard, while the
revenues reported for the three and nine months ended
September 30, 2017 do not. The impact of the new standard on
total revenues was $1.8 million and $0.7 million for the
three and nine months ended September 30, 2018,
respectively.</p>
</td>
</tr>
</table>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 18pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
<b><i>Tangible Long-Lived Assets</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">The following table summarizes the Company’s
tangible long-lived assets by country (in thousands):</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 12pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
 </p>
<table style="FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" cellspacing="0" cellpadding="0" width="92%" align="center" border="0">
<tr style="COLOR: white; LINE-HEIGHT: 0pt; VISIBILITY: hidden">
<td width="90%"></td>
<td valign="bottom" width="3%"></td>
<td></td>
<td style="FONT-SIZE: 8pt" nowrap="nowrap"></td>
<td></td>
<td valign="bottom" width="3%"></td>
<td></td>
<td style="FONT-SIZE: 8pt" nowrap="nowrap"></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; break-inside: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>September 30, 2018</b></font></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>December 31, 2017</b></font></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
United States</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">6,746</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">10,671</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Ireland</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">1,977</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">2,120</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
India</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">2,175</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">2,578</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Rest of world</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">1,471</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">1,014</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Total property and equipment, net</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">12,369</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">16,383</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
</table>
<br class="Apple-interchange-newline" /></div>
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">The following tables summarize the impacts of
adopting Topic 606 and Subtopic <font style="WHITE-SPACE: nowrap">340-40</font> (the
“new standard”) on the Company’s condensed
consolidated financial statements for the three and nine months
ended September 30, 2018. The Company’s financial
reporting under the new standard is included in the columns labeled
“As Reported” in the tables below.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">Select line items from the condensed consolidated
balance sheet as of September 30, 2018 that reflect the
adoption of the new standard are as follows:</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 12pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
 </p>
<table style="FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" cellspacing="0" cellpadding="0" width="92%" align="center" border="0">
<tr style="COLOR: white; LINE-HEIGHT: 0pt; VISIBILITY: hidden">
<td width="88%"></td>
<td valign="bottom" width="1%"></td>
<td></td>
<td style="FONT-SIZE: 8pt" nowrap="nowrap"></td>
<td></td>
<td valign="bottom" width="1%"></td>
<td></td>
<td style="FONT-SIZE: 8pt" nowrap="nowrap"></td>
<td></td>
<td valign="bottom" width="1%"></td>
<td></td>
<td style="FONT-SIZE: 8pt" nowrap="nowrap"></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; break-inside: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="10" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>September 30, 2018</b></font></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 8pt; break-inside: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>As Reported</b></font></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Adjustments</b></font></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Balances without</b></font><br />
<font style="FONT-FAMILY: "Times New Roman""><b>adoption 
of</b></font><br />
<font style="FONT-FAMILY: "Times New Roman""><b>the new standard</b></font></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 8pt; break-inside: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td valign="bottom" colspan="10" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>(in thousands)</b></font></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
<b>ASSETS</b></p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Contract assets</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">530</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(530</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Deferred costs</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">23,778</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(23,778</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Deferred costs - noncurrent</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">26,062</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(26,062</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 1pt">
<td height="16" colspan="5"></td>
<td height="16" colspan="4"></td>
<td height="16" colspan="4"></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top" colspan="4">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
<b>LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)</b></p>
</td>
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 0em; MARGIN-TOP: 0pt; TEXT-INDENT: 0em">
<b> </b></p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Deferred revenue</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">163,077</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">29,536</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">192,613</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Other contract liabilities</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">15,829</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(15,829</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Long-term deferred revenue</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">86,279</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">11,750</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">98,029</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Other long-term liabilities</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">827</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(34</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">793</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Accumulated other comprehensive loss</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(1,155</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">331</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(824</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Accumulated deficit</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(944,894</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(76,124</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(1,021,018</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
</tr>
</table>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 12pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">Select line items from the condensed consolidated
statements of operations for the three and nine months ended
September 30, 2018 that reflect the adoption of the new
standard are as follows:</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 12pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
 </p>
<table style="FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" cellspacing="0" cellpadding="0" width="92%" align="center" border="0">
<tr style="COLOR: white; LINE-HEIGHT: 0pt; VISIBILITY: hidden">
<td width="88%"></td>
<td valign="bottom" width="1%"></td>
<td></td>
<td style="FONT-SIZE: 8pt" nowrap="nowrap"></td>
<td></td>
<td valign="bottom" width="1%"></td>
<td></td>
<td style="FONT-SIZE: 8pt" nowrap="nowrap"></td>
<td></td>
<td valign="bottom" width="1%"></td>
<td></td>
<td style="FONT-SIZE: 8pt" nowrap="nowrap"></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; break-inside: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="10" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Three Months Ended September 30, 2018</b></font></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 8pt; break-inside: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>As Reported</b></font></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Adjustments</b></font></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Balances without</b></font><br />
<font style="FONT-FAMILY: "Times New Roman""><b>adoption 
of</b></font><br />
<font style="FONT-FAMILY: "Times New Roman""><b>the new standard</b></font></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 8pt; break-inside: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td valign="bottom" colspan="10" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>(in thousands, except per share data)</b></font></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
<b>Revenues:</b></p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Support subscription</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">65,390</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">861</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">66,251</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Professional services</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">21,784</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(2,687</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">19,097</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 1pt">
<td height="8"></td>
<td height="8" colspan="4"></td>
<td height="8" colspan="4"></td>
<td height="8" colspan="4"></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
<b>Operating expenses:</b></p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Sales and marketing</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">50,446</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(2,049</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">48,397</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Net loss</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(31,574</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">224</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(31,350</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Net loss per share of common stock, basic and diluted</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(0.39</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">0.01</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(0.38</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
</tr>
</table>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 12pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
 </p>
<table style="FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" cellspacing="0" cellpadding="0" width="92%" align="center" border="0">
<tr style="COLOR: white; LINE-HEIGHT: 0pt; VISIBILITY: hidden">
<td width="88%"></td>
<td valign="bottom" width="1%"></td>
<td></td>
<td style="FONT-SIZE: 8pt" nowrap="nowrap"></td>
<td></td>
<td valign="bottom" width="1%"></td>
<td></td>
<td style="FONT-SIZE: 8pt" nowrap="nowrap"></td>
<td></td>
<td valign="bottom" width="1%"></td>
<td></td>
<td style="FONT-SIZE: 8pt" nowrap="nowrap"></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; break-inside: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="10" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Nine Months Ended September 30, 2018</b></font></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 8pt; break-inside: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>As Reported</b></font></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Adjustments</b></font></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Balances without</b></font><br />
<font style="FONT-FAMILY: "Times New Roman""><b>adoption 
of</b></font><br />
<font style="FONT-FAMILY: "Times New Roman""><b>the new standard</b></font></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 8pt; break-inside: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td valign="bottom" colspan="10" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>(in thousands, except per share data)</b></font></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
<b>Revenues:</b></p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Support subscription</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">191,943</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">5,636</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">197,579</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Professional services</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">60,635</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(6,369</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">54,266</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 1pt">
<td height="8"></td>
<td height="8" colspan="4"></td>
<td height="8" colspan="4"></td>
<td height="8" colspan="4"></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
<b>Operating expenses:</b></p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Sales and marketing</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">153,889</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(2,240</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">151,649</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Net loss</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(114,826</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">1,508</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(113,318</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Net loss per share of common stock, basic and diluted</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(1.45</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">0.02</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(1.43</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
</tr>
</table>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">Select line items from the condensed consolidated
statement of cash flows for the nine months ended
September 30, 2018 that reflect the adoption of the new
standard are as follows:</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 12pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
 </p>
<table style="FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" cellspacing="0" cellpadding="0" width="92%" align="center" border="0">
<tr style="COLOR: white; LINE-HEIGHT: 0pt; VISIBILITY: hidden">
<td width="88%"></td>
<td valign="bottom" width="1%"></td>
<td></td>
<td style="FONT-SIZE: 8pt" nowrap="nowrap"></td>
<td></td>
<td valign="bottom" width="1%"></td>
<td></td>
<td style="FONT-SIZE: 8pt" nowrap="nowrap"></td>
<td></td>
<td valign="bottom" width="1%"></td>
<td></td>
<td style="FONT-SIZE: 8pt" nowrap="nowrap"></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; break-inside: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="10" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Nine Months Ended September 30, 2018</b></font></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 8pt; break-inside: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>As Reported</b></font></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Adjustments</b></font></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Balances without</b></font><br />
<font style="FONT-FAMILY: "Times New Roman""><b>adoption 
of</b></font><br />
<font style="FONT-FAMILY: "Times New Roman""><b>the new standard</b></font></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 8pt; break-inside: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td valign="bottom" colspan="10" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>(in thousands)</b></font></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
<b>CASH FLOWS FROM OPERATING ACTIVITIES:</b></p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Net loss</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman""> (114,826</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">1,508</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman""> (113,318</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Adjustments to reconcile net loss to net cash provided by operating
activities:</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Amortization of deferred costs</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">24,599</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(24,599</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Changes in operating assets and liabilities:</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Contract assets</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">1,920</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(1,920</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Deferred costs</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(22,447</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">22,447</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Deferred revenue</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">12,453</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">5,359</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">17,812</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Other contract liabilities</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">2,795</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(2,795</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 5em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Net cash provided by operating activities</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">16,430</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">16,430</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
</table>
<br class="Apple-interchange-newline" />
</div>
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">A summary of information related to PSUs for the
nine months ended September 30, 2018 is presented below:</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 12pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
 </p>
<table style="FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" cellspacing="0" cellpadding="0" width="76%" align="center" border="0">
<tr style="COLOR: white; LINE-HEIGHT: 0pt; VISIBILITY: hidden">
<td width="88%"></td>
<td valign="bottom" width="4%"></td>
<td></td>
<td style="FONT-SIZE: 8pt" nowrap="nowrap"></td>
<td></td>
<td valign="bottom" width="4%"></td>
<td></td>
<td style="FONT-SIZE: 8pt" nowrap="nowrap"></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; break-inside: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Number of<br />
Shares Issued<br />
Under<br />
Stock Plans</b></font></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b><font style="WHITE-SPACE: nowrap">Weighted-Average</font><br />
Grant Date<br />
Fair Value<br />
Per  Share</b></font></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Unvested balance—December 31, 2017</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">839,857</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">14.58</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Granted</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Vested</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(84,818</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">19.19</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Canceled/forfeited</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(40,328</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">21.57</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Unvested balance—September 30, 2018</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">714,711</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">13.39</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
</table>
<br class="Apple-interchange-newline" /></div>
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">A summary of information related to stock options
for the nine months ended September 30, 2018 is presented
below:</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 12pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
 </p>
<table style="FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" cellspacing="0" cellpadding="0" width="92%" align="center" border="0">
<tr style="COLOR: white; LINE-HEIGHT: 0pt; VISIBILITY: hidden">
<td width="76%"></td>
<td valign="bottom" width="4%"></td>
<td></td>
<td style="FONT-SIZE: 8pt" nowrap="nowrap"></td>
<td></td>
<td valign="bottom" width="4%"></td>
<td></td>
<td style="FONT-SIZE: 8pt" nowrap="nowrap"></td>
<td></td>
<td valign="bottom" width="4%"></td>
<td></td>
<td style="FONT-SIZE: 8pt" nowrap="nowrap"></td>
<td></td>
<td valign="bottom" width="4%"></td>
<td></td>
<td style="FONT-SIZE: 8pt" nowrap="nowrap"></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; break-inside: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Number of<br />
Shares<br />
Underlying<br />
Outstanding<br />
Options</b></font></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Weighted-<br />
Average<br />
Exercise<br />
Price Per<br />
Share</b></font></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Weighted-<br />
Average<br />
Remaining<br />
Contractual Life<br />
(Years)</b></font></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Aggregate<br />
Intrinsic<br />
Value</b></font></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 8pt; break-inside: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td valign="bottom" colspan="2"> </td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td valign="bottom" colspan="2"> </td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td valign="bottom" colspan="2"> </td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>(in thousands)</b></font></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Outstanding—December 31, 2017</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">4,490,445</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">11.08</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">6.14</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">41,525</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Granted</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Exercised</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(1,043,938</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">9.20</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Canceled/forfeited</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(121,151</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">19.15</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Outstanding—September 30, 2018</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">3,325,356</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">11.37</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">5.49</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">38,198</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Exercisable—September 30, 2018</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">3,280,006</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman""> 11.22</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">5.47</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman""> 38,131</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
</table>
<br class="Apple-interchange-newline" /></div>
11900000
0
HDP
19.15
0
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 18pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
<b>11. SUBSEQUENT EVENT</b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">On October 3, 2018, the Company announced that
it entered into an Agreement and Plan of Merger and Reorganization
by and among the Company, Cloudera, Inc. (“Cloudera”)
and Surf Merger Corporation, a wholly-owned subsidiary of Cloudera
(“Merger Agreement”) for a proposed “merger of
equals” transaction, pursuant to which and subject to the
conditions in the Merger Agreement, the Surf Merger Corporation
will merge with and into the Company (the “Merger”),
with the Company surviving the Merger as a wholly-owned subsidiary
of Cloudera. Subject to the terms and conditions set forth in the
Merger Agreement, at the effective time of the Merger (the
“Effective Time”), each share of common stock, par
value $0.0001 per share, of the Company (“Hortonworks Common
Stock”) issued and outstanding immediately prior to the
Effective Time (other than the shares that are owned by
Hortonworks, Cloudera or Surf Merger Corporation) will be converted
into the right to receive 1.305 (the “Exchange Ratio”)
newly issued shares of common stock (the “Cloudera Common
Stock”), par value $0.00005 per share, of Cloudera (the
“Hortonworks Common Stock Merger Consideration”). No
fractional shares of Cloudera Common Stock will be issued in the
Merger, and Hortonworks stockholders will receive cash in lieu of
fractional shares as part of the Hortonworks Common Stock Merger
Consideration, as specified in the Merger Agreement. Shares of
Cloudera Common Stock will be listed on the New York Stock Exchange
(“NYSE”). The Exchange Ratio is expected to result in
Hortonworks common stockholders owning approximately
40 percent of the outstanding shares of Cloudera Common Stock
(calculated on a fully diluted basis) immediately following the
Effective Time.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">The consummation of the Merger is subject to
customary closing conditions, including (i) the absence of any
adverse law or order promulgated, entered, enforced, enacted or
issued by any governmental entity that prohibits, restrains or
makes illegal the consummation of the Merger, (ii) the SEC
having declared effective the Form <font style="WHITE-SPACE: nowrap">S-4</font> Registration
Statement of Cloudera which will contain the joint proxy
statement/prospectus of the parties in connection with the Merger,
(iii) the adoption of the Merger Agreement by the affirmative
vote of the holders of a majority of the outstanding shares of
Hortonworks Common Stock entitled to vote thereon, (iv) the
approval of the issuance of shares of Cloudera Common Stock
pursuant to the Merger Agreement by the affirmative vote of a
majority of votes present or represented by proxy at
Cloudera’s stockholder meeting in connection with the Merger,
(v) the expiration or termination of the waiting period under
the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as
amended, (vi) the authorization for listing on the NYSE,
subject to official notice of issuance, of the shares of Cloudera
Common Stock to be issued in the Merger and the shares of Cloudera
Common Stock to be issued upon the exercise or settlement, as
applicable, of the options and restricted stock units assumed by
Cloudera pursuant to the Merger Agreement, (vii) the receipt
of certain opinions from legal counsel regarding the intended tax
treatment of the Merger, (viii) subject to certain materiality
exceptions, the accuracy of certain representations and warranties
of each of Cloudera and Hortonworks contained in the Merger
Agreement and the compliance by each party with the covenants
contained in the Merger Agreement, and (ix) the absence of a
material adverse effect with respect to each of Cloudera and
Hortonworks. The parties expect the Merger will be completed in the
first quarter of calendar year 2019.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">Simultaneously with the execution and delivery of
the Merger Agreement, each of the officers and directors of
Cloudera, in their respective capacities as stockholders of
Cloudera (together with certain of their respective affiliates),
have entered into support agreements with Hortonworks (the
“Cloudera Support Agreements”), pursuant to which such
individuals have agreed, among other things, to vote their
respective shares of Cloudera Common Stock in favor of the approval
of the issuance of shares of Cloudera Common Stock pursuant to the
Merger Agreement, against any alternative proposal and against any
action or agreement that would reasonably be expected to impede,
interfere with, postpone, prevent or delay the consummation of, the
transactions contemplated by the Merger Agreement. The persons
signed the Cloudera Support Agreements currently beneficially own
an aggregate of approximately 19 percent of the outstanding
Cloudera Common Stock.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">Simultaneously with the execution and delivery of
the Merger Agreement, each of the directors and executive officers
of Hortonworks, in their respective capacities as stockholders of
Hortonworks (together with certain of their respective affiliates),
have entered into support agreements with Cloudera (the
“Hortonworks Support Agreements”), pursuant to which
such individuals have agreed, among other things, to vote their
respective shares of Hortonworks Common Stock in favor of the
adoption of the Merger Agreement, against any alternative proposal
and against any action of agreement that would reasonably be
expected to impede, interfere with, postpone, prevent or delay the
consummation of, the transactions contemplated by the Merger
Agreement. The persons signing the Hortonworks Support Agreements
currently beneficially own an aggregate of 14 percent of the
outstanding Hortonworks Common Stock.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">The Merger Agreement contains representations and
warranties and covenants customary for a transaction of this
nature. Neither Cloudera nor the Company is permitted to solicit,
initiate, induce or knowingly encourage or facilitate, any
alternative transaction proposals from third parties or to engage
in discussions or negotiations with third parties regarding any
alternative transaction proposals. Notwithstanding this limitation,
prior to a party’s stockholders approving the transaction,
such party may under certain circumstances provide information to
and participate in discussions or negotiations with third parties
with respect to an alternative transaction proposal that its board
of directors has determined in good faith constitutes or is
reasonably likely to lead to a superior proposal. Each
party’s board of directors may change its recommendation to
its stockholders (subject to the other party’s right to
terminate the Merger Agreement following such change in
recommendation) in response to a superior proposal or an
intervening event if the board of directors determines in good
faith that the failure to take such action would reasonably be
expected to be inconsistent with the directors’ fiduciary
duties under the General Corporation Law of the State of Delaware.
Upon termination of the Merger Agreement under certain specified
circumstances, Cloudera or Hortonworks may be required to pay the
other party a termination fee of $95.0 million or
$65.0 million, respectively. In addition, if the Merger
Agreement is terminated by Cloudera or Hortonworks as a result of
the other party’s failure to obtain stockholder approval,
then the <font style="WHITE-SPACE: nowrap">non-terminating</font> party
may be required to reimburse the terminating party for its
documented <font style="WHITE-SPACE: nowrap"><font style="WHITE-SPACE: nowrap">out-of-pocket</font></font> expenses,
up to a maximum amount of $20.0 million (if the Merger
Agreement is terminated as a result of a failure of Hortonworks to
obtain stockholder approval) or $30.0 million (if the Merger
Agreement is terminated as a result of a failure of Cloudera to
obtain stockholder approval).</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">In connection with the proposed Merger, on
November 5, 2018 Cloudera filed a registration statement on
Form S-4 with the SEC, which includes a preliminary prospectus
for the issuance of shares of Cloudera common stock in the Merger,
a preliminary proxy statement of Cloudera for use in connection
with the solicitation of proxies for the Cloudera stockholder
meeting, and a preliminary proxy statement of Hortonworks for use
in connection with the solicitation of proxies for the Hortonworks
stockholder meeting (the “joint proxy
statement/prospectus”). When final, a definitive copy of the
joint proxy statement/prospectus will be sent to Cloudera and
Hortonworks stockholders.</p>
</div>
1043938
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-TOP: 18pt">
<b><i>Use of Estimates</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-TOP: 6pt">
The preparation of condensed consolidated financial statements in
conformity with U.S. GAAP requires management to make estimates and
assumptions that affect the reported amounts of assets,
liabilities, revenue, and expenses, the related disclosure of
contingent assets and liabilities at the date of the condensed
consolidated financial statements and the reported amounts of
expenses during the reporting period. The Company bases its
estimates and judgments on its historical experience, knowledge of
current conditions and its beliefs regarding what may occur in the
future given available information. Estimates, assumptions and
judgments are used for, but are not limited to, revenue
recognition, stock-based awards, accounting for income taxes,
allowance for doubtful accounts and certain accrued liabilities.
Actual results may differ from these estimates.</p>
</div>
79166112
-1203000
2795000
P5Y
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-TOP: 6pt">
<b><i>Description of Business</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-TOP: 6pt">
Hortonworks, Inc. (the “Company”) delivers
100 percent open-source global data management solutions so
that customers can deploy modern data architectures and realize the
full value of their data. The Company’s enterprise-ready
solutions enable organizations to govern, secure and manage data of
any kind, wherever it is located, and turn it into actionable
intelligence that will help them transform their businesses.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-TOP: 12pt">
The Company’s platforms allow enterprises to manage their
data on a global scale, whether it is <font style="WHITE-SPACE: nowrap"><font style="WHITE-SPACE: nowrap">data-in-motion</font></font> or <font style="WHITE-SPACE: nowrap"><font style="WHITE-SPACE: nowrap">data-at-rest.</font></font> The Company has
the expertise, experience and proven solutions to power modern data
applications, including streaming analytics, data science,
artificial intelligence and more.</p>
</div>
1.00
200000
489000
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" align="justify">Significant changes in the contract assets and the
contract liabilities balances during the period are as follows (in
thousands):</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 12pt; FONT-FAMILY: "Times New Roman"; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial">
 </p>
<table style="FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial" cellspacing="0" cellpadding="0" width="92%" align="center" border="0">
<tr style="COLOR: white; LINE-HEIGHT: 0pt; VISIBILITY: hidden">
<td width="83%"></td>
<td valign="bottom" width="3%"></td>
<td></td>
<td nowrap="nowrap"></td>
<td></td>
<td valign="bottom" width="3%"></td>
<td></td>
<td nowrap="nowrap"></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; break-inside: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Contract<br />
Assets</b></font></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: "Times New Roman""><b>Contract<br />
Liabilities</b></font></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
January 1, 2018</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">2,457</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">252,508</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Amount transferred to receivables from contract assets</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(2,457</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Contract asset additions</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">2,302</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Performance obligations satisfied during the period that were
included in the contract liability balance at the beginning of the
period</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(58,907</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Increases due to invoicing prior to satisfaction of performance
obligations</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">55,933</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
March 31, 2018</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">2,302</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">249,534</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Amount transferred to receivables from contract
assets</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(2,263</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Contract asset additions</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">265</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Performance obligations satisfied during the period that were
included in the contract liability balance at the beginning of the
period</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(62,691</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Increases due to invoicing prior to satisfaction of performance
obligations</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">72,279</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
June 30, 2018</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">304</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">259,122</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Amount transferred to receivables from contract
assets</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(263</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Contract asset additions</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">489</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Performance obligations satisfied during the period that were
included in the contract liability balance at the beginning of the
period</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">(61,639</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman"">) </font></td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 3em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Increases due to invoicing prior to satisfaction of performance
obligations</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: "Times New Roman"">—</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">67,702</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 10pt; break-inside: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: "Times New Roman"; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
September 30, 2018</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">530</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
<td valign="bottom">  </td>
<td valign="bottom"><font style="FONT-FAMILY: "Times New Roman"">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: "Times New Roman"">265,185</font></td>
<td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: "Times New Roman""> </font></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: rgb(0,0,0) 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
</table>
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