0001437749-22-004075 | 10-K | XBRL Viewer

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Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 137,328	$ 74,132
Short-term marketable securities	267,960	281,892
Accounts receivable, net of allowance of $793 and $725 as of December 31, 2021 and 2020, respectively	108,998	100,179
Prepaid expenses and other current assets	32,112	19,142
Total current assets	546,398	475,345
Long-term marketable securities	111,198	98,458
Property and equipment, net	61,854	64,850
Operating leases - right of use asset	37,016	44,838
Deferred tax assets, net	25,087	15,811
Total intangible assets, net	6,545	12,006
Goodwill	7,447	7,447
Restricted cash	1,200	1,200
Other noncurrent assets	17,814	16,864
Total assets	814,559	736,819
Current liabilities:
Accounts payable	1,296	731
Accrued liabilities	32,504	29,833
Deferred revenues, current	257,872	213,494
Operating lease liabilities, current	12,608	11,672
Total current liabilities	304,280	255,730
Deferred revenues, noncurrent	32,753	30,540
Lease liabilities, noncurrent	35,914	45,700
Other noncurrent liabilities	4,898	367
Total liabilities	377,845	332,337
Commitments and contingencies (Note 9)
Stockholders’ equity:
Preferred stock: $0.001 par value; 20,000 shares authorized, no shares issued and outstanding as of December 31, 2021 and 2020	0	0
Common stock: $0.001 par value; 1,000,000 shares authorized, 39,112 and 39,253 shares issued and outstanding as of December 31, 2021 and 2020, respectively	39	39
Additional paid-in capital	477,323	401,359
Accumulated other comprehensive income (loss)	1,007	(484)
Retained earnings (accumulated deficit)	(41,655)	3,568
Total stockholders’ equity	436,714	404,482
Total liabilities and stockholders’ equity	$ 814,559	$ 736,819

Consolidated Balance Sheets (Parentheticals) - USD ($) shares in Thousands, $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Allowance for doubtful accounts receivable	$ 793	$ 725
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	20,000	20,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par or stated value per share (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	1,000,000	1,000,000
Common stock, shares issued (in shares)	39,112	39,253
Common stock, shares outstanding (in shares)	39,112	39,253

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Revenues	$ 411,172	$ 362,963	$ 321,607
Cost of revenues	89,439	79,226	69,517
Gross profit	321,733	283,737	252,090
Operating expenses:
Research and development	81,289	72,548	68,239
Sales and marketing	76,487	67,965	70,833
General and administrative	76,274	46,570	40,765
Total operating expenses	234,050	187,083	179,837
Income from operations	87,683	96,654	72,253
Other income (expense), net:
Interest expense	0	(9)	(106)
Interest income	2,287	5,385	8,443
Other income (expense), net	(573)	7	(607)
Total other income, net	1,714	5,383	7,730
Income before income taxes	89,397	102,037	79,983
Income tax provision	18,437	10,465	10,647
Net income	$ 70,960	$ 91,572	$ 69,336
Net income per share:
Basic (in dollars per share)	$ 1.82	$ 2.34	$ 1.77
Diluted (in dollars per share)	$ 1.77	$ 2.25	$ 1.68
Weighted average shares used in computing net income per share:
Basic (in shares)	39,030	39,167	39,075
Diluted (in shares)	40,118	40,740	41,284

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Net income	$ 70,960	$ 91,572	$ 69,336
Other comprehensive income (loss), net of tax
Net change in unrealized gains (losses) on available-for-sale debt securities, net of tax	(1,409)	402	1,367
Net change in unrealized gains (losses) on cash flow hedges, net of tax	2,900	(2,048)	381
Other comprehensive income (loss), net of tax	1,491	(1,646)	1,748
Comprehensive income	$ 72,451	$ 89,926	$ 71,084

- Definition

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

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+ Details

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Cash flow from operating activities:
Net income	$ 70,960	$ 91,572	$ 69,336
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense	35,897	32,845	31,201
Write off of noncurrent asset	625	0	0
Bad debt expense	402	486	247
Loss on disposal of property and equipment	12	106	202
Stock-based compensation	67,579	40,035	34,892
Amortization of premiums (accretion of discounts) on marketable securities	3,869	826	(1,597)
Deferred income taxes	(9,723)	3,512	7,095
Changes in operating assets and liabilities:
Accounts receivable	(9,221)	(22,631)	(2,456)
Prepaid expenses and other assets	(15,665)	(2,329)	(6,012)
Accounts payable	(32)	(389)	(1,076)
Accrued liabilities and other noncurrent liabilities	9,322	5,126	715
Deferred revenues	46,591	30,927	28,060
Net cash provided by operating activities	200,616	180,086	160,607
Cash flow from investing activities:
Purchases of marketable securities	(368,450)	(391,693)	(331,131)
Sales and maturities of marketable securities	363,941	341,879	328,350
Purchases of property and equipment	(24,424)	(30,037)	(27,573)
Proceeds from disposal of property and equipment	6	419	0
Purchases of intangible assets	(1,230)	(1,500)	(4,050)
Maturity (purchase) of note receivable	625	0	(625)
Net cash used in investing activities	(29,532)	(80,932)	(35,029)
Cash flow from financing activities:
Repurchase of common stock	(129,977)	(126,729)	(86,424)
Proceeds from exercise of stock options	49,994	34,461	24,831
Payments for taxes related to net share settlement of equity awards	(27,815)	(20,199)	(15,743)
Principal payments under finance lease obligations	(90)	(114)	(1,709)
Net cash used in financing activities	(107,888)	(112,581)	(79,045)
Net increase (decrease) in cash, cash equivalents and restricted cash	63,196	(13,427)	46,533
Cash, cash equivalents and restricted cash at beginning of period	75,332	88,759	42,226
Cash, cash equivalents and restricted cash at end of period	138,528	75,332	88,759
Supplemental disclosures of cash flow information
Cash paid for interest expense	0	9	107
Cash paid for income taxes, net of refunds	35,080	8,058	3,031
Non-cash investing and financing activities
Purchases of intangible assets recorded in accrued liabilities	120	150	150
Purchases of property and equipment recorded in accounts payable and accrued liabilities	$ 2,086	$ 1,054	$ 235

Consolidated Statements of Stockholders' Equity - USD ($)
shares in Thousands, $ in Thousands

Common Stock [Member]

Additional Paid-in Capital [Member]

AOCI Attributable to Parent [Member]

Retained Earnings [Member]

Total

Balances (in shares) at Dec. 31, 2018

39,015

Balance at Dec. 31, 2018

$ 39

$ 330,572

$ (586)

$ 27,964

$ 357,989

Net income

69,336

Other comprehensive income (loss), net of tax

$ 0

1,748

Issuance of common stock upon exercise of stock options (in shares)

901

Issuance of common stock upon exercise of stock options

$ 1

24,830

24,831

Repurchase of common stock (in shares)

(1,026)

Repurchase of common stock

$ (1)

(12,317)

(74,106)

(86,424)

Issuance of common stock upon vesting of restricted stock units (in shares)

439

Issuance of common stock upon vesting of restricted stock units

$ 0

(183)

$ 0

(15,743)

Stock-based compensation

$ 0

35,066

Balances (in shares) at Dec. 31, 2019

39,146

Balance at Dec. 31, 2019

$ 39

362,408

1,162

23,194

386,803

Net income

91,572

Other comprehensive income (loss), net of tax

$ 0

(1,646)

Issuance of common stock upon exercise of stock options (in shares)

1,130

Issuance of common stock upon exercise of stock options

$ 1

34,460

34,461

Repurchase of common stock (in shares)

(1,293)

Repurchase of common stock

$ (1)

(15,530)

(111,198)

(126,729)

Issuance of common stock upon vesting of restricted stock units (in shares)

476

Issuance of common stock upon vesting of restricted stock units

$ 0

(206)

$ 0

(20,199)

Stock-based compensation

$ 0

40,220

Balances (in shares) at Dec. 31, 2020

39,253

Balance at Dec. 31, 2020

$ 39

401,359

(484)

3,568

404,482

Net income

70,960

Other comprehensive income (loss), net of tax

$ 0

1,491

$ 1,491

Issuance of common stock upon exercise of stock options (in shares)

725

^[1]

Issuance of common stock upon exercise of stock options

$ 1

49,993

$ 49,994

Repurchase of common stock (in shares)

(1,148)

Repurchase of common stock

$ (1)

(13,793)

(116,183)

(129,977)

Issuance of common stock upon vesting of restricted stock units (in shares)

530

Issuance of common stock upon vesting of restricted stock units

$ 0

(248)

$ 0

(27,815)

Stock-based compensation

$ 0

67,579

Balances (in shares) at Dec. 31, 2021

39,112

Balance at Dec. 31, 2021

$ 39

$ 477,323

$ 1,007

$ (41,655)

$ 436,714

[1]	Included 348 thousand shares of PSOs.

Note 1 - The Company and Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2021

Notes to Financial Statements

Basis of Presentation and Significant Accounting Policies [Text Block]

NOTE 1.

The Company and Summary of Significant Accounting Policies

Description of Business

Qualys, Inc. (the “Company”, “we”, “us”, “our”) was incorporated in the state of Delaware on December 30, 1999. The Company is headquartered in Foster City, California and has wholly-owned subsidiaries throughout the world. The Company is a pioneer and leading provider of cloud-based IT, security and compliance solutions that enable organizations to identify security risks to their IT infrastructures, help protect their IT systems and applications from ever-evolving cyber-attacks and achieve compliance with internal policies and external regulations. The Company’s cloud solutions address the growing security and compliance complexities and risks that are amplified by the dissolving boundaries between internal and external IT infrastructures and web environments, the rapid adoption of cloud computing and the proliferation of geographically dispersed IT assets. Organizations can use the Company’s integrated suite of solutions delivered on its Qualys Cloud Platform to cost-effectively obtain a unified view of their security and compliance posture across globally-distributed IT infrastructures.

Basis of Presentation

The accompanying consolidated financial statements and footnotes have been prepared in accordance with U.S. GAAP as well as the instructions to Form 10-K and the rules and regulations of the SEC. In the opinion of management, the accompanying consolidated financial statements reflect all adjustments, which include only normal recurring adjustments, necessary for the fair presentation of the Company’s consolidated financial position, results of operations and cash flows for the periods presented. The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated upon consolidation.

Risks and Uncertainties

In March 2020, the World Health Organization declared the outbreak of COVID-19 as a pandemic. As a result of COVID-19, the Company has modified certain aspects of its business, including restricting employee travel, requiring employees to work from home, and canceling certain events and meetings, among other modifications. The Company will continue to actively monitor the situation and may take further actions that alter its business operations as may be required by federal, state or local authorities or that the Company determines are in the best interests of its employees, customers, partners, suppliers and stockholders. While the Company has not incurred significant disruptions from the COVID-19 pandemic to date and does not expect the pandemic will have a significant impact on the Company’s business in 2022, the Company is unable to accurately predict the full impact that COVID-19 will have due to numerous uncertainties, including the duration of the outbreak, actions that may be taken by governmental authorities and the impact to the business of its customers and partners. The Company will continue to evaluate the nature and extent of the impact to its business, financial position, results of operations and cash flows.

Use of Estimates

The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of assets and liabilities at the date of the consolidated financial statements and the reported results of operations during the reporting period. The Company’s management regularly assesses these estimates, which primarily affect revenue recognition, allowance for credit loss, the valuation of goodwill and intangible assets, leases, stock-based compensation and income tax provision. Actual results could differ from those estimates and such differences may be material to the accompanying consolidated financial statements.

Concentration of Credit Risk

The Company invests its cash and cash equivalents with major financial institutions. Cash balances with any one institution at times may be in excess of federally insured limits. Cash equivalents are invested in high-quality investment grade financial instruments and are diversified. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk.

Credit risk with respect to accounts receivable is dispersed due to the large number of customers. Collateral is not required for accounts receivable. As of December 31, 2021 and 2020, no customer or channel partner accounted for more than 10% of the Company's revenues and accounts receivable balance.

Cash, Cash Equivalents, Restricted cash and Short-Term and Long-Term Marketable Securities

Cash and cash equivalents include cash held in banks, highly liquid money market funds and commercial paper, all with original maturities of three months or less when acquired. The Company’s short-term and long-term marketable securities consist of fixed-income U.S. and foreign government agency securities, corporate bonds, asset-backed securities and commercial paper. Management determines the appropriate classification of the Company's investments at the time of purchase and reevaluates such designation at each balance sheet date. The Company classifies its marketable securities as either short-term or long-term based on each instrument's underlying remaining contractual maturity date.

As of both December 31, 2021 and 2020, the Company has a restricted cash balance of $1.2 million in the form of a letter of credit issued to the landlord of the Company's California headquarter office lease as security deposit.

Cash equivalents are stated at cost, which approximates fair market value. Short-term and long-term marketable securities are classified as available-for-sale debt securities (AFS debt securities) and are carried at fair value. Unrealized gains and losses in fair value of the AFS debt securities are reported in other comprehensive income (loss). When the AFS debt securities are sold, cost is based on the specific identification method, and the realized gains and losses are included in other income (expense), net in the consolidated statements of operations. AFS debt securities are reviewed quarterly for impairment. An investment is considered impaired when its fair value is below its amortized cost. Declines in fair value from amortized cost for AFS debt securities that the company intends to sell or will more likely than not be required to sell before the expected recovery of the amortized cost basis are charged to other income (expense), net in the period in which the loss occurs. Otherwise, the credit loss component of the impairment is recorded as allowance for credit losses with an offsetting entry charged to other income (expense), net, while the remaining loss is recognized in other comprehensive income (loss).

Accounts Receivable

Accounts receivable are recorded at the invoiced amount and do not bear interest. The allowance for credit losses is determined on a collective basis where similar risk characteristics exist and on an individual basis when we identify significant customers or invoices with collectability issues. The estimate for credit losses considers historical write-offs by aging category, that are adjusted for current conditions and reasonable and supportable forecasts of future losses. Any change in the assumptions used in analyzing credit losses may result in additional allowances being recognized in the period in which the change occurs. When the Company ultimately concludes that a receivable is uncollectible, the balance is written off against the allowance for credit losses. Payments subsequently received on such receivables are recognized in the period received. The allowance for credit losses recognized and write-offs charged against the allowance were not significant for the years ended December 31, 2021 and 2020.

Non-marketable securities

In 2018, the Company invested $2.5 million in preferred stock of a privately-held company (the “Investee”). The fair value of the investment is not readily available, and there are no quoted market prices for the investment. The Company elected the measurement alternative to account for the investment at cost less impairment and will measure the investment at fair value when the Company identifies observable price changes. The investment is assessed for impairment annually or whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. No impairment has been incurred related to the investment. The investment is included in other noncurrent assets in the consolidated balance sheets. The Company has not received any dividends from the investment.

In 2019, the Company made an advance payment of $0.6 million to the Investee for it to perform certain technology development work, which should either be settled in the form of royalty fee charges when the technology materializes and is licensed to the Company or, otherwise, should be repaid to the Company in cash. The advance payment was recorded in other non-current assets in the consolidated balance sheet. During the fourth quarter ended December 31, 2021, the technology has not been developed and the Company decided to no longer pursue the development of the technology or the collection of the advanced amount. Accordingly, the entire amount of the advance payment was written off and recorded in the general and administrative expense during the year ended December 31, 2021.

Property and Equipment, net

Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, which range from three to five years. Leasehold improvements are amortized on a straight-line basis over the lesser of the estimated useful life of the asset or the remaining lease term.

The Company purchases physical scanner appliances and other computer equipment that are provided to customers on a subscription basis. This equipment is recorded within property and equipment and the depreciation is recorded in cost of revenues over an estimated useful life of three years.

Upon retirement or disposal, the cost of assets and the related accumulated depreciation are removed from the accounts and any resulting gain or loss is reflected in the consolidated statements of operations. Repairs and maintenance that do not extend the life of an asset are expensed as incurred and major improvements are capitalized as property and equipment.

Leases

The Company leases certain offices, computer equipment and its data center facilities under finance leases and non-cancelable operating leases. For both operating and finance leases, we recognize a right-of-use asset, which represents our right to use the underlying asset for the lease term, and a lease liability, which represents the present value of our obligation to make payments arising over the lease term. Many of our leases include rental escalation clauses, renewal options and/or termination options that are factored into our determination of lease payments and lease terms when appropriate. The present value of the lease payments is calculated using the incremental borrowing rate of the underlying leases determined at lease commencement. As most of our leases do not provide a readily determinable implicit rate, the Company determines an incremental borrowing rate using a portfolio approach based on the rate of interest that the Company would have to pay to borrow an amount equal to the lease payments on a collateralized basis over a similar term as the leases.

Where the Company is the lessee, the Company elects to account for non-lease components associated with its leases (e.g., common area maintenance costs) and lease components separately for substantially all of its asset classes, except for data centers, for which the Company elected to combine lease and non-lease components. For leases with a term of one year or less, the Company has elected not to record the right-of-use asset or liability.

In arrangements where the Company is the lessor, the Company elected to apply the practical expedient to account for lease components (e.g., customer premise equipment) and non-lease components (e.g., service revenue) as combined components as revenue under ASC 606 as service revenues are the predominant components in the arrangements.

Impairment of Long-Lived Assets

The Company evaluates its long-lived assets, which consist of property and equipment, and intangible assets subject to amortization, for indicators of possible impairment when events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Impairment exists if the carrying amounts of such assets exceed the estimates of future undiscounted cash flows expected to be generated by such assets. Should an impairment exist, the impairment loss would be measured based on the excess carrying value of the asset over the asset’s estimated fair value. For the years ended December 31, 2021, 2020 and 2019, there was no impairment of long-lived assets.

Goodwill and Intangible Assets

Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired in a business combination. Goodwill and indefinite-lived intangible assets are not amortized but tested for impairment at least annually or more frequently if certain circumstances indicate a possible impairment may exist. The goodwill impairment tests are performed at the reporting unit level. The Company’s operations are organized as one reporting unit.

In testing for a potential impairment of goodwill and the indefinite-lived intangible assets, the Company first performs a qualitative assessment to determine if it is more likely than not (a more than 50% likelihood) that the fair value of the reporting unit or the indefinite-lived intangible assets is less than their carrying amount. If the fair value is not considered to be less than the carrying amount, no further evaluation is necessary. Otherwise, the Company will perform a quantitative test. Goodwill impairment is measured as the amount by which the carrying value of the reporting unit or the indefinite-lived intangible assets exceeds their fair value. The Company performed the annual assessments on December 1, 2021 and 2020 and concluded there was no impairment of goodwill or the indefinite-lived intangible assets.

Business Combinations

The Company applies the provisions of ASC 805, Business Combinations, in accounting for its acquisitions. It requires the Company to recognize separately from goodwill the assets acquired and the liabilities assumed at their acquisition date fair values. Goodwill as of the acquisition date is measured as the excess of consideration transferred over the net of the acquisition date fair values of the assets acquired and the liabilities assumed. While the Company uses its best estimates and assumptions to accurately value assets acquired and liabilities assumed at the acquisition date as well as any contingent consideration, where applicable, its estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, the Company records adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to its consolidated statements of operations.

Derivative Financial Instruments

Derivative financial instruments are utilized by the Company to reduce foreign currency exchange risks. The Company uses foreign currency forward contracts, with maturities of 13 months or less, to mitigate the impact of foreign currency fluctuations of certain non-U.S. dollar denominated net asset positions, to date primarily cash, accounts receivable and operating lease liabilities, as well as to manage foreign currency fluctuation risk related to forecasted transactions. Open contracts are recorded within prepaid expenses and other current assets, other noncurrent assets, accrued liabilities or other noncurrent liabilities in the consolidated balance sheets. Gains and losses resulting from currency exchange rate movements on non-designated forward contracts are recognized in other income (expense), net. Any gains or losses from derivatives designated as cash flow hedges are first recorded within accumulated other comprehensive income (“AOCI”) and then reclassified into revenue or operating expenses when the hedged item impacts the consolidated statements of operations. Cash flows related to these forward contracts are classified in our consolidated statements of cash flows in the same manner as the underlying hedged transaction within cash flows from operating activities.

Stock-Based Compensation

The Company recognizes the fair value of its stock options, restricted stock units (“RSUs”) and stock purchase rights under the employee stock purchase plan (the “ESPP”) on a straight-line basis over the requisite service periods. The fair value of each stock option or stock purchase right is estimated on the date of grant using the Black-Scholes-Merton option pricing model and the fair value of each RSU is based on the Company's common stock price on the date of grant. Compensation expenses for performance-based stock options (“PSOs”) and performance-based restricted stock units (“PSUs”) are recorded based on expected achievement of the performance metrics specified in the grant, which are assessed on a quarterly basis. Forfeitures are estimated on the date of grant and revised if actual or expected forfeiture materially differs from original estimates.

Revenue Recognition

The Company derives revenues from subscriptions that require customers to pay a fee in order to access the Company’s cloud solutions. Contract period with customers generally ranges from less than a year to five years. The subscription fee entitles the customer to an unlimited number of scans for a specified number of networked devices or web applications and, if requested by a customer as part of their subscription, a specified number of physical or virtual scanner appliances. The Company’s physical and virtual scanner appliances are requested by certain customers as part of their subscriptions in order to scan IT infrastructures within their firewalls and do not function without, and are not sold separately from, subscriptions for the Company’s solutions. In some limited cases, the Company also provides certain computer equipment used to extend its Qualys Cloud Platform into its customers’ private cloud environment. Customers are required to return physical scanner appliances and computer equipment if they do not renew their subscriptions.

The Company determines revenue recognition through the following steps:

•

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

•

Identification of the performance obligations in the contract;

•

Determination of the transaction price

•

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

•

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

At the inception of a customer contract, the Company makes an assessment as to that customer's ability to pay for the services provided. The Company assesses collectability based on several factors, including credit worthiness of the customer along with past transaction history. In addition, the Company performs periodic evaluations of its customers’ financial condition.

Most of the Company’s revenue contracts are subscription based and contain a single performance obligation. The subscription contracts typically do not offer to the customers any future rights that would constitute material rights. Contract prices are generally composed of fixed consideration for a specific period of time as the Company in general does not offer refunds, volume rebates, customer loyalty programs or other forms of customer incentive payments. In limited situations, contract prices are contingent on future events, such as actual usage during the contract terms, which are accounted for as variable consideration and estimated based on the most likely amount of consideration that the Company is expected to be entitled to. Estimates are included in the contract price to the extent that it is considered probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. Such estimates are made at contract inception and updated periodically when additional information becomes available. A cumulative catch-up adjustment is made when there is a change in the estimate of variable consideration.

As the Company's cloud-based subscription services are delivered to customers electronically and over time, revenue is generally recognized ratably over the contract terms. When physical equipment is provided to the customers as part of the subscription service contract, the Company applies the practical expedient allowed under ASC 842 Leases to combine lease and nonlease components as a combined component to be accounted for under ASC 606, as the Company determined that the software subscription is the predominant component of the combined components. Therefore, the Company recognizes revenue for the physical equipment ratably over the related subscription period.

Contract modifications happen when there is an upsell, where the customers subsequently enter into contract with the Company to purchase additional product offerings or additional scans for additional devices. Contract modifications related to upsells are typically accounted for prospectively.

Deferred revenues consist of customer contracts billed or cash received that will be recognized in the future under subscriptions existing at the balance sheet date. The current portion of deferred revenues represents amounts that are expected to be recognized within one year of the balance sheet date.

Costs of shipping and handling charges incurred by the Company associated with physical scanner appliances and other computer equipment are included in cost of revenues. Sales taxes and other taxes collected from customers to be remitted to government authorities are excluded from revenues.

Incremental direct costs of obtaining a contract, which consist of sales commissions primarily for new business and upsells, are deferred and amortized over the estimated life of the customer relationship if renewals are expected and the renewal commission is not commensurate with the initial commission. The Company elected the practical expedient to expense commissions on renewals where the specific anticipated contract term amortization period is one year or less. The Company amortizes the capitalized commission cost as a selling expense on a straight-line basis over a period of five years. The Company classifies deferred commissions as current or noncurrent based on the timing of when it expects to recognize the expense. The current and noncurrent portions of deferred commissions are included in prepaid expenses and other current assets and other noncurrent assets, respectively, in its consolidated balance sheets.

Advertising Expenses

Advertising costs are expensed as incurred and are included in sales and marketing expense in the consolidated statements of operations. The Company incurred advertising costs of $2.1 million, $1.6 million and $1.5 million for the years ended December 31, 2021, 2020 and 2019, respectively.

Income Taxes

The Company provides for the effect of income taxes in its consolidated financial statements using the asset and liability method which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the consolidated financial statements. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, net operating loss carryovers, and tax credit carry forwards. The Company regularly reviews its deferred tax assets for recoverability and establishes a valuation allowance if it is more likely than not that some portion or all of the deferred tax assets will not be realized. To make this assessment, the Company takes into account predictions of the amount and category of taxable income from various sources and all available positive and negative evidence about these possible sources of taxable income. The weight given to the potential effect of negative and positive evidence is commensurate with the extent to which the strength of the evidence can be objectively verified. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that includes the enactment date.

Income tax expense or benefit is recognized for the amount of taxes payable or refundable for the current year and for deferred tax assets and liabilities for the tax consequences of events that have been recognized in an entity’s financial statements or tax returns. The Company must make significant assumptions, judgments and estimates to determine its current income tax provision (benefit), its deferred tax assets and liabilities, and any valuation allowance to be recorded against its deferred tax assets. The Company's estimates and assumptions may differ from the actual results as reflected on its income tax returns and will record the required adjustments when they are identified or resolved.

The Company applies a two-step approach to determining the financial statement recognition and measurement of uncertain tax positions. The Company only recognizes an income tax expense or benefit with respect to uncertain tax positions in its financial statements that the Company judges is more likely than not to be sustained solely on its technical merits in a tax audit, including resolution of any related appeals or litigation processes. To make this judgment, the Company must interpret complex and sometimes ambiguous tax laws, regulations and administrative practices. If an income tax position meets the more likely than not recognition threshold, then the Company must measure the amount of the tax benefit to be recognized by determining the largest amount of tax benefit that has a greater than a 50% likelihood of being realized upon effective settlement with a taxing authority that has full knowledge of all of the relevant facts. It is inherently difficult and subjective to estimate such amounts, as this requires the Company to determine the probability of various possible settlement outcomes. To determine if a tax position is effectively settled after a tax examination has been completed, the Company must also estimate the likelihood that another taxing authority could review the respective tax position. The Company must also determine when it is reasonably possible that the amount of unrecognized tax benefits will significantly increase or decrease in the 12 months after each fiscal year-end. These judgments are difficult because a taxing authority may change its behavior as a result of the Company's disclosures in its financial statements. The Company must reevaluate its income tax positions on a quarterly basis to consider factors such as changes in facts or circumstances, changes in tax law, effectively settled issues under audit, and new audit activity. Such a change in recognition or measurement would result in recognition of a tax benefit or an additional charge to the tax provision. The Company's policy is to recognize interest and penalties related to unrecognized tax benefits as a component of the provision for income taxes.

Comprehensive Income (Loss)

Other comprehensive income (loss) consists of unrealized gains (losses) on marketable securities, net of tax, and derivative financial instruments designated as cash flow hedges which are not included in the Company’s net income. Total comprehensive income includes net income and other comprehensive income (loss) and is included in the consolidated statements of comprehensive income.

Foreign Currency Transactions

The Company’s operations are conducted in various countries around the world and the financial statements of its foreign subsidiaries are reported in the U.S. dollar as their respective functional currency. Monetary assets and liabilities denominated in foreign currencies have been re-measured into U.S. dollars using the exchange rates in effect at the balance sheet date, and income and expenses are re-measured at average exchange rates during the period. Foreign currency re-measurement gains and losses and foreign currency transaction gains and losses are recognized in other income (expense), net.

Net Income Per Share

Basic net income per share is computed by dividing net income by the weighted-average number of shares outstanding during the period. Diluted net income per share is computed by dividing net income by the weighted-average number of shares outstanding plus potentially dilutive shares outstanding during the period. The potentially dilutive shares are computed by applying the treasury stock method to the Company's stock options, RSUs and the stock purchase rights under the ESPP. Any potential shares that would be anti-dilutive are excluded from the computation of diluted net income per share.

Recently Adopted Accounting Pronouncements

In December 2019, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") No. 2019-12, Simplifying the Accounting for Income Taxes ("ASU 2019-12"), which simplifies the accounting for income taxes, eliminates certain exceptions within ASC 740, Income Taxes, and clarifies certain aspects of the current guidance to promote consistency among reporting entities. ASU 2019-12 is effective for the Company for fiscal years beginning after December 15, 2020. Most amendments within the standard are required to be applied on a prospective basis, while certain amendments must be applied on a retrospective or modified retrospective basis. The Company adopted ASU 2019-12 in the first quarter of 2021 with no material impact on the Company's consolidated financial statements.

Recently Issued Accounting Pronouncements Not Yet Adopted

The Company does not believe any other new accounting pronouncements issued by the FASB that have not become effective will have a material impact on its consolidated financial statements.

Note 2 - Fair Value of Financial Instruments

12 Months Ended

Dec. 31, 2021

Notes to Financial Statements

Fair Value Disclosures [Text Block]

NOTE 2.

Fair Value of Financial Instruments

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. For certain of the Company’s financial instruments, including certain cash equivalents, accounts receivable, accounts payable and accrued liabilities, the carrying amounts approximate their fair values due to the relatively short maturity of these balances.

The Company measures and reports certain cash equivalents, marketable securities, derivative foreign currency forward contracts at fair value in accordance with the provisions of the authoritative accounting guidance that addresses fair value measurements. This guidance establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. The hierarchy is broken down into three levels based on the reliability of inputs as follows:

Level 1-Valuations based on quoted prices in active markets for identical assets or liabilities.

Level 2-Valuations based on other than quoted prices in active markets for identical assets and liabilities, including quoted prices for identical assets or liabilities in less active or inactive markets, quoted prices for similar assets or liabilities in active markets, or inputs other than quoted prices that are observable for substantially the full term of the assets or liabilities.

Level 3-Valuations based on inputs that are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability.

The Company's financial instruments consist of assets and liabilities measured using Level 1 and 2 inputs. Level 1 assets include a highly liquid money market fund, which is valued using unadjusted quoted prices that are available in an active market for an identical asset. Level 2 assets include fixed-income U.S. Treasury and government agency securities, commercial paper, corporate bonds, asset-backed securities, foreign government securities and derivative financial instruments consisting of foreign currency forward contracts. The securities, bonds and commercial paper are valued using prices from independent pricing services based on quoted prices of identical instruments in less active or inactive markets, quoted prices of similar instruments in active markets, or industry models using data inputs such as interest rates and prices that can be directly observed or corroborated in active markets. The foreign currency forward contracts are valued using observable inputs, such as quotations on forward foreign exchange points and foreign interest rates.

The Company's cash and cash equivalents and marketable securities consist of the following:

	*December 31, 2021*
	*Amortized Cost*		*Unrealized Gains*		*Unrealized Losses*			*Fair Value*
	(in thousands)
Cash and cash equivalents:
Cash	$	61,220	$	—	$	—		$	61,220
Money market funds		75,258		—		—			75,258
Commercial paper		850		—		—			850
Total		137,328		—		—			137,328
Short-term marketable securities:
Commercial paper		28,869		101		(7	)		28,963
Corporate bonds		3,952		—		—			3,952
Asset-backed securities		217,160		2		(163	)		216,999
U.S. Treasury and government agencies		18,046		—		—			18,046
Total		268,027		103		(170	)		267,960
Long-term marketable securities:
Asset-backed securities		14,941		6		(36	)		14,911
U.S. Treasury and government agencies		37,664		—		(136	)		37,528
Foreign government		1,007		12		—			1,019
Corporate bonds		57,762		160		(182	)		57,740
Total		111,374		178		(354	)		111,198
Total	$	516,729	$	281	$	(524	)	$	516,486

	*December 31, 2020*
	*Amortized Cost*		*Unrealized Gains*		*Unrealized Losses*			*Fair Value*
	(in thousands)
Cash and cash equivalents:
Cash	$	33,105	$	—	$	—		$	33,105
Money market funds		38,028		—		—			38,028
Commercial paper		2,999		—		—			2,999
Total		74,132		—		—			74,132
Short-term marketable securities:
Commercial paper		6,147		—		—			6,147
Corporate bonds		24,368		170		—			24,538
Asset-backed securities		6,263		18		—			6,281
U.S. Treasury and government agencies		244,568		369		(11	)		244,926
Total		281,346		557		(11	)		281,892
Long-term marketable securities:
Asset-backed securities		38,456		160		(3	)		38,613
U.S. Treasury and government agencies		6,884		17		—			6,901
Foreign government		1,006		31		—			1,037
Corporate bonds		51,068		839		—			51,907
Total		97,414		1,047		(3	)		98,458
Total	$	452,892	$	1,604	$	(14	)	$	454,482

As of December 31, 2021 and 2020, there were no marketable securities that had been in a continuous unrealized loss position for 12 months or longer. The Company had the ability and intent to hold all marketable securities that were in an unrealized loss position until recovery of the amortized cost basis. The Company considered the extent to which fair value was less than amortized cost basis and conditions related to security’s industry and geography and changes to the ratings, if any, and concluded the decline in fair value compared to carrying value was not related to credit loss.

The following table sets forth by level within the fair value hierarchy the fair value of the Company's cash equivalents and marketable securities measured on a recurring basis:

	*December 31, 2021*
	*Level 1*		*Level 2*		*Fair Value*
	(in thousands)
Money market funds	$	75,258	$	—	$	75,258
Commercial paper		—		18,896		18,896
U.S. Treasury and government agencies		—		254,527		254,527
Foreign government		—		1,019		1,019
Corporate bonds		—		86,703		86,703
Asset-backed securities		—		18,863		18,863
Total	$	75,258	$	380,008	$	455,266

	*December 31, 2020*
	*Level 1*		*Level 2*		*Fair Value*
	(in thousands)
Money market funds	$	38,028	$	—	$	38,028
Commercial paper		—		9,146		9,146
U.S. Treasury and government agencies		—		251,827		251,827
Foreign government		—		1,037		1,037
Corporate bonds		—		76,445		76,445
Asset-backed securities		—		44,894		44,894
Total	$	38,028	$	383,349	$	421,377

The following summarizes the fair value of marketable securities by contractual maturity:

	*December 31, 2021*
	*Mature within One Year*		*Mature after One Year through Two Years*		*Mature over Two Years*		*Fair Value*
	(in thousands)
Commercial paper	$	18,896	$	—	$	—	$	18,896
U.S. Treasury and government agencies		216,999		37,528		—		254,527
Foreign government		—		1,019		—		1,019
Corporate bonds		28,964		38,407		19,332		86,703
Asset-backed securities		3,951		7,959		6,953		18,863
Total	$	268,810	$	84,913	$	26,285	$	380,008

Derivative Financial Instruments

Designated cash flow hedges

The Company enters into foreign currency forward contracts to reduce the risk of variability in future cash flow due to foreign currency exchange rate fluctuation from certain forecasted subscription revenue orders billed in GBP and Euro and operation expenses incurred in INR, which are designated as cash flow hedges. Unrealized foreign exchange gains or losses related to those designated cash flow hedge contracts are recorded in Accumulated other comprehensive income ("AOCI") and will be reclassified into revenues or operating expenses, respectively, in the same periods when the hedged transactions hit earnings.

As of December 31, 2021, the Company had designated cash flow hedge forward contracts with notional amounts of €29.8 million, £9.4 million and Rs.2,955.3 million. As of December 31, 2020, the Company had designated cash flow hedge forward contracts with notional amounts of €25.9 million, £8.7 million and Rs.1,933.5 million. As of December 31, 2021, a net amount of unrealized gains of $1.0 million before tax on the foreign currency forward contracts for GBP and Euro reported in AOCI is expected to be reclassified into revenue within the next 12 months. As of December 31, 2021, a net amount of unrealized gains of $0.3 million before tax on the foreign currency forward contracts for INR reported in AOCI is expected to be reclassified into operating expenses within the next 12 months.

Non-designated forward contracts

The Company also uses foreign currency forward contracts to hedge certain foreign currency denominated assets or liabilities, which are not designated as cashflow hedges.

As of December 31, 2021, the Company had non-designated forward contracts with notional amounts of €34.5 million, £11.6 million, Rs.74.9 million, C$2.5 million and CHF1.0 million. As of December 31, 2020, the Company had non-designated forward contracts with notional amounts of €17.7 million, £6.5 million and Rs.32.8 million.

The following summarizes derivative financial instruments as of December 31, 2021 and 2020:

	*December 31,*
	*2021*			*2020*
	(in thousands)
Assets
Foreign currency forward contracts designated as cash flow hedge	$	1,737		$	511
Foreign currency forward contracts not designated as hedging instruments		1,599			27
Total	$	3,336		$	538
Liabilities
Foreign currency forward contracts designated as cash flow hedge	$	(181	)	$	(2,200	)
Foreign currency forward contracts not designated as hedging instruments		(207	)		(1,677	)
Total	$	(388	)	$	(3,877	)

All foreign currency forward contracts were valued at fair value using Level 2 inputs.

The following summarizes the gains (losses) recognized from forward contracts and other foreign currency transactions in other income (expense), net in the consolidated statements of operations:

	*Year Ended December 31,*
	*2021*			*2020*			*2019*
	(in thousands)
Net gains (losses) from non-designated forward contracts	$	2,452		$	(1,634	)	$	438
Other foreign currency transactions gains (losses)		(2,749	)		1,894			(792	)
Total foreign exchange gains (losses), net		(297	)		260			(354	)
Other expenses		(276	)		(253	)		(253	)
Other income (expense), net	$	(573	)	$	7		$	(607	)

- Definition

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

+ References + Details

Note 3 - Accumulated Other Comprehensive Income (Loss)

12 Months Ended

Dec. 31, 2021

Notes to Financial Statements

Accumulated Other Comprehensive Income Disclosure [Text Block]

NOTE 3.

Accumulated Other Comprehensive Income (Loss)

The components and changes in accumulated other comprehensive income (loss) were as follows:

	*Available-for-sale debt securities*			*Cash flow hedges*			*Total*
	(in thousands)
Balances at December 31, 2018	$	(545	)	$	(41	)	$	(586	)
Change in unrealized gains during the period		1,610			651			2,261
Net gains reclassified into income during the period		—			(169	)		(169	)
Income tax provision		(243	)		(101	)		(344	)
Net change during the period		1,367			381			1,748
Balances at December 31, 2019		822			340			1,162
Change in unrealized gains (losses) during the period		549			(2,099	)		(1,550	)
Net gains reclassified into income during the period		(25	)		(564	)		(589	)
Income tax benefit (provision)		(122	)		615			493
Net change during the period		402			(2,048	)		(1,646	)
Balances at December 31, 2020		1,224			(1,708	)		(484	)
Change in unrealized gains (losses) during the period		(1,854	)		2,837			983
Net losses reclassified into income during the period		22			933			955
Income tax benefit (provision)		423			(870	)		(447	)
Net change during the period		(1,409	)		2,900			1,491
Balances at December 31, 2021	$	(185	)	$	1,192		$	1,007

The effects on income before income taxes of amounts reclassified from AOCI to the consolidated statements of operations were as follows:

	*Year Ended December 31,*
	*2021*			*2020*			*2019*
	(in thousands)
Reclassification of AOCI - Available-for-sale debt securities
Other income (expense), net	$	(22	)	$	25		$	—

Reclassification of AOCI - Cash flow hedges
Revenues	$	(1,667	)	$	960		$	169
Cost of revenues		149			(76	)		—
Research and development		492			(264	)		—
Sales and marketing		28			(20	)		—
General and administrative		65			(36	)		—
Total	$	(933	)	$	564		$	169

Note 4 - Property and Equipment, Net

12 Months Ended

Dec. 31, 2021

Notes to Financial Statements

Property, Plant and Equipment Disclosure [Text Block]

NOTE 4.

Property and Equipment, Net

Property and equipment, net, which includes assets under finance leases, consists of the following:

	*December 31,*
	*2021*			*2020*
	(in thousands)
Computer equipment	$	161,809		$	136,286
Computer software		25,807			26,164
Leasehold improvements		21,092			21,107
Scanner appliances		16,510			16,749
Furniture, fixtures and equipment		6,479			6,599
Finance leases - right of use asset		—			3,503
Total property and equipment		231,697			210,408
Less: accumulated depreciation and amortization		(169,843	)		(145,558	)
Property and equipment, net	$	61,854		$	64,850

As of December 31, 2021 and 2020, physical scanner appliances and other computer equipment that are or will be subject to leases by customers had a net carrying value of $5.3 million and $7.5 million, respectively, including assets that had not been placed in service of $1.3 million and $1.9 million, respectively. Depreciation and amortization expenses relating to property and equipment were $28.5 million, $26.1 million and $24.9 million for the years ended December 31, 2021, 2020 and 2019, respectively. Assets under finance leases were acquired upon completion of lease term and placed within computer equipment as of December 31, 2021.

Note 5 - Revenue from Contracts with Customers

12 Months Ended

Dec. 31, 2021

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

NOTE 5.

Revenue from Contracts with Customers

The Company records deferred revenue when cash payments are received or due in advance of its performance obligations offset by revenue recognized in the period. Revenues of $211.0 million and $188.6 million were recognized during the years ended December 31, 2021 and December 31, 2020, respectively, which amounts were included in the deferred revenue balances as of December 31, 2020 and December 31, 2019, respectively.

The Company's payment terms vary by the type and location of its customers. The term between invoicing and when payment is due is not significant. In certain circumstances, based on the credit quality of the customer, the Company requires payment before the products or services are delivered to the customer.

The following table sets forth the expected revenue from all remaining performance obligations as of December 31, 2021:

	(in thousands)
2022	$	142,812
2023		101,482
2024		36,361
2025		2,422
2026		499
2027 and thereafter		110
Total	$	283,687

Revenues allocated to remaining performance obligations represents the transaction price of noncancelable orders for which service has not been performed, which include deferred revenue and the amounts that will be invoiced and recognized as revenues in future periods from open contracts and excludes unexercised renewals. The Company applied the short-term contract exemption to exclude the remaining performance obligations that are part of a contract that has an original expected duration of one year or less.

From time to time, the Company enters into contracts with customers that extend beyond one year, with certain of its customers electing to pay for more than one year of services upon contract execution. The Company concluded that these contracts did not contain a financing component.

Revenues by sales channel are as follows:

	*Year Ended December 31,*
	*2021*		*2020*			*2019*
	(in thousands)
Direct	$	242,709	$	212,296	$	186,130
Partner		168,463		150,667		135,477
Total	$	411,172	$	362,963	$	321,607

The Company utilizes partners to enable and accelerate the adoption of its cloud platform by increasing its distribution capabilities and market awareness of its cloud platform as well as by targeting geographic regions outside the reach of its direct sales force. The Company's channel partners maintain relationships with their customers throughout the territories in which they operate and provide their customers with services and third-party solutions to help meet those customers’ evolving security and compliance requirements. As such, these partners may offer the Company's IT security and compliance solutions in conjunction with one or more of their own products or services and act as a conduit through which the Company can connect with these prospective customers to offer its solutions. For sales involving a channel partner, the channel partner engages with the prospective customer directly and involves the Company's sales team as needed to assist in developing and closing an order. When a channel partner secures a sale, the Company sells the associated subscription to the channel partner who in turn resells the subscription to the customer. Sales to channel partners are made at a discount and revenues are recorded at this discounted price over the subscription terms. The Company does not have any influence or specific knowledge of its partners' selling terms with their customers. See Note 13, "Segment Information and Information about Geographic Area" for disaggregation of revenue by geographic area.

Deferred costs to obtain contracts are as follows:

	*December 31,*
	*2021*		*2020*
	(in thousands)
Current	$	4,223	$	3,459
Noncurrent	$	8,391	$	6,906

For the years ended December 31, 2021, 2020 and 2019, the Company recognized $4.0 million, $3.0 million and $2.0 million, respectively, of amortization expense relating to deferred costs to obtain contracts in sales and marketing expense in the consolidated statements of operations. During the same periods, there was no impairment loss related to the deferred costs to obtain contracts.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130556-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130550-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130558-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045

+ Details

Note 6 - Acquisitions

12 Months Ended

Dec. 31, 2021

Notes to Financial Statements

Business Combination Disclosure [Text Block]

NOTE 6.

Acquisitions

The following table summarizes the purchase price allocation of business and asset acquisitions for the years ended December 31, 2021, 2020 and 2019 based on estimated fair values of the acquired assets as of the acquisition date:

Acquiree	*Acquisition Date*	*Purchase Consideration*		*Purchased Intangible Assets*		*Goodwill*
		(in thousands)
TotalCloud	August 19, 2021	$	1,200	$	1,200	$	—
Spell security	July 24, 2020	$	1,500	$	1,500	$	—
Adya	January 10, 2019	$	1,000	$	900	$	100

On August 19, 2021, the Company acquired certain developed technology intangible assets of TotalCloud, a privately held company incorporated in India, for a total cash consideration of $1.2 million, of which $1.1 million was paid on the acquisition date and the remaining $0.1 million will be due one year from the acquisition date, subject to potential adjustment from possible indemnity claims. TotalCloud's technology strengthens the Company's cloud security solution by allowing customers to build user-defined workflows for custom policies and execute them on-demand for simplified security and compliance. The acquired intangible assets will be amortized over five years.

On July 24, 2020, the Company acquired certain intangible assets of Spell Security, a privately held company incorporated in India, for a total cash consideration of $1.5 million, of which $1.3 million was paid on the acquisition date and the remaining $0.2 million was deferred and paid in October 2021. Spell Security’s technology expands the Company's endpoint behavior detection, threat hunting, malware research and multi-layered response capabilities for its EDR application. The Company recognized intangible assets of $1.0 million for developed technology and $0.5 million for non-compete agreements, which will be amortized over four and two years, respectively.

On January 10, 2019, the Company acquired Adya, an India-based company. The acquisition included a cloud application management platform, which enables security and compliance audits of SaaS applications. Total purchase consideration included $0.2 million of deferred consideration due 18 months from the closing date of the acquisition, subject to potential adjustment from possible indemnity claims, which was fully paid to Adya during the fiscal year ended December 31, 2020. The acquired intangible assets relating to Adya's developed technology are being amortized over the estimated useful lives of approximately four years. Goodwill arising from the Adya acquisition is deductible for tax purposes over 15 years.

There were no changes in the carrying amount of goodwill for the years ended December 31, 2021 and 2020.

Note 7 - Intangible Assets, Net

12 Months Ended

Dec. 31, 2021

Notes to Financial Statements

Intangible Assets Disclosure [Text Block]

NOTE 7.

Intangible Assets, Net

Intangible assets consist primarily of developed technology and patent licenses acquired from business or asset acquisitions. Acquired intangibles are amortized on a straight-line basis over the respective estimated useful lives of the assets.

The carrying values of intangible assets are as follows:

			*December 31, 2021*
(in thousands)	*Weighted Average Life (Years)*	*Weighted Average Remaining Life (Years)*		*Cost*		*Accumulated Amortization*			*Net Book Value*
Developed technology	4.5	0.9	$	28,556	$	(22,463	)	$	6,093
Patent licenses	14.0	2.7		1,387		(1,121	)		266
Non-compete agreements	2.0	0.6		500		(354	)		146
Total intangibles subject to amortization			$	30,443	$	(23,938	)		6,505
Intangible assets not subject to amortization									40
Total intangible assets, net								$	6,545

				*December 31, 2020*
(in thousands)	*Weighted Average Life (Years)*	*Weighted Average Remaining Life (Years)*		*Cost*		*Accumulated Amortization*			*Net Book Value*
Developed technology	4.4	1.8	$	27,356	$	(16,152	)	$	11,204
Patent licenses	14.0	3.7		1,387		(1,021	)		366
Non-compete agreements	2.0	1.6		500		(104	)		396
Total intangibles subject to amortization			$	29,243	$	(17,277	)		11,966
Intangible assets not subject to amortization									40
Total intangible assets, net								$	12,006

Intangible assets amortization expenses were $6.7 million, $6.3 million and $6.1 million for the years ended December 31, 2021, 2020 and 2019, respectively, which were recorded in the consolidated statements of operations.

As of December 31, 2021, the Company expects amortization expense in future periods to be as follows:

		(in thousands)
2022	$	5,063
2023		590
2024		452
2025		240
2026		160
Total expected future amortization expense	$	6,505

Note 8 - Leases

12 Months Ended

Dec. 31, 2021

Notes to Financial Statements

Lessee, Operating Leases and Finance Lease [Text Block]

NOTE 8.

Leases

The Company leases certain offices, computer equipment and its data center facilities under non-cancelable operating leases for varying periods through 2028. While under the Company's lease agreements the Company has options to extend its certain leases, the Company has not included renewal options in determining the lease terms for calculating its lease liabilities, as these options are not reasonably certain of being exercised. Lease expense was $16.8 million, $16.7 million and $13.9 million for the years ended December 31, 2021, 2020 and 2019, respectively.

Supplemental cash flow information related to operating leases was as follows:

	*Year Ended December 31,*
	*2021*		*2020*		*2019*
	(in thousands)
Cash payments included in the measurement of lease liabilities	$	14,646	$	13,403	$	9,372
Lease liabilities arising from obtaining right-of-use assets	$	4,110	$	15,837	$	17,359

The weighted average remaining lease term and the weighted average discount rate of the Company's operating leases were as follows:

	*December 31,*
	*2021*			*2020*
Weighted average remaining lease term (years)		3.3			4.1
Weighted average discount rate		4.8	%		4.8	%

Maturities of the Company's operating lease liabilities as of December 31, 2021 are as follows:

		(in thousands)
2022	$	14,543
2023		12,042
2024		10,735
2025		6,536
2026		4,498
2027 and thereafter		5,819
Total minimum lease payments		54,173
Less: interest		(5,651	)
Present value of net minimum lease payments		48,522
Less: lease liabilities, current		(12,608	)
Lease liabilities, noncurrent	$	35,914

Note 9 - Commitment and Contingencies

12 Months Ended

Dec. 31, 2021

Notes to Financial Statements

Commitments and Contingencies Disclosure [Text Block]

NOTE 9.

Commitment and Contingencies

Purchase Obligation

The Company has entered into agreements to purchase goods and services in the ordinary course of business. As of December 31, 2021, these remaining purchase commitments for future periods are as follows:

	(in thousands)
2022	$	23,672
2023		11,488
2024		7,599
2025		936
Total purchase commitments	$	43,695

Indemnifications

The Company from time to time enters into certain types of contracts that contingently require it to indemnify various parties against claims from third parties. These contracts primarily relate to (i) the Company's bylaws, under which it must indemnify directors and executive officers, and may indemnify other officers and employees, for liabilities arising out of their relationship, (ii) contracts under which the Company must indemnify directors and certain officers for liabilities arising out of their relationship, and (iii) contracts under which the Company may be required to indemnify customers or resellers from certain liabilities arising from potential infringement of intellectual property rights, as well as potential damages caused by limited product defects. To date, the Company has not incurred and has not recorded any liability in connection with such indemnifications.

The Company maintains director and officer insurance, which may cover certain liabilities arising from its obligation to indemnify its directors.

Legal Proceedings

From time to time the Company may become involved in legal proceedings or be subject to claims arising in the ordinary course of our business. The Company records a provision for a liability when it is both probable that a liability has been incurred and the amount can be reasonably estimated. The Company provides disclosure if it is reasonably possible that a loss has been incurred and a range of loss or possible loss can be reasonably estimated. Significant judgment is required to determine both probability and the estimated amount. The Company reviews these provisions at least quarterly and adjust these provisions to reflect the impact of negotiations, settlements, rulings, advice of legal counsel, and updated information.

As of December 31, 2021, there has not been at least a reasonable possibility that the Company has incurred a material loss from any ongoing legal proceedings, individually or taken together. However, litigation is inherently unpredictable and is subject to significant uncertainties, some of which are beyond the Company's control. Should any of these estimates and assumptions change or prove to have been incorrect, the Company could incur significant charges related to legal matters which could have a material impact on its results of operations, financial position and cash flows.

Note 10 - Stockholders' Equity and Stock-based Compensation

12 Months Ended

Dec. 31, 2021

Notes to Financial Statements

Shareholders' Equity and Share-based Payments [Text Block]

NOTE 10.

Stockholders' Equity and Stock-based Compensation

Preferred Stock

Effective October 3, 2012, the Company is authorized to issue 20.0 million shares of undesignated preferred stock with a par value of $0.001 per share. Each series of preferred stock will have such rights and preferences including dividend rights, dividend rate, conversion rights, voting rights, rights and terms of redemption (including sinking fund provisions), redemption price, and liquidation preferences as determined by the board of directors. As of December 31, 2021, and 2020, there were no issued or outstanding shares of preferred stock.

Common Stock

Equity Incentive Plan

2000 Equity Incentive Plan

Under the 2000 Equity Incentive Plan (“2000 Plan”), the Company was authorized to grant to eligible participants either incentive stock options (“ISOs”) or non-statutory stock options (“NSOs”). The ISOs were granted at a price per share not less than the fair market value at the date of grant. The NSOs were granted at a price per share not less than 85% of the fair market value at the date of grant. Options granted generally vest over a period of up to four years, with a maximum term of ten years. The 2000 Plan was terminated in connection with the closing of the Company's initial public offering, and accordingly, no shares are currently available for grant under the 2000 Plan. The 2000 Plan continues to govern outstanding awards granted thereunder.

2012 Equity Incentive Plan

The 2012 Equity Incentive Plan (“2012 Plan”) was adopted and approved in September 2012 and became effective on September 26, 2012. Under the 2012 Plan, the Company is authorized to grant to eligible participant’s ISOs, NSOs, stock appreciation rights (“SARs”), restricted stock awards (“RSAs”), RSUs, performance units and performance shares. The number of shares of common stock available for issuance under the 2012 Plan is subject to an annual increase on January 1 of each year by an amount equal to the least of 3,050 thousand shares, 5% of the outstanding shares of stock as of the last day of the immediately preceding fiscal year or an amount determined by the board of directors. For the year ended December 31, 2021, 1,963 thousand shares were added to the 2012 Plan. As of December 31, 2021, a total of 17,662 thousand shares have been authorized for issuance under the 2012 Plan and 8,091 thousand shares are available for future grants. Options may be granted with an exercise price that is at least equal to the fair market value of the Company's stock at the date of grant and are exercisable when vested. Options and RSU's granted generally vest over a period of up to four years. ISOs may only be granted to employees and any subsidiary corporations' employees. All other awards may be granted to employees, directors and consultants and subsidiary corporations' employees and consultants. Options, SARs, RSUs, performance units and performance awards may be granted with vesting terms as determined by the board of directors and expire no more than ten years after the date of grant or earlier if employment or service is terminated.

2021 Employee Stock Purchase Plan

On June 9, 2021, the Company’s stockholders approved the 2021 ESPP. A total of 600 thousand shares were authorized for issuance to eligible participating employees upon adoption of the ESPP, all of which are available for future purchases as of December 31, 2021. The ESPP provides for consecutive 6-month offering periods beginning on or about August 16 and February 16 of each year. Eligible employees who elect to participate can contribute from 1% to 15% of their eligible compensation through payroll withholding. During any offering period, contribution rates cannot be changed. However, eligible employees may withdraw from the current offering period. Any contributions made prior to each purchase date in the case of withdrawal or termination of employment will be refunded. On each purchase date, eligible participating employees will purchase the shares at a price per share equal to 85% of the lesser of (i) the fair market value of the Company's stock on the first trading day of the offering period or (ii) the fair market value of the Company's stock on the purchase date (i.e., the last trading day of the offering period). The first ESPP offering period commenced on August 16, 2021 and will end on February 15, 2022.

Stock-based Compensation

The following table shows a summary of the stock-based compensation expenses included in the consolidated statements of operations for the years ended December 31, 2021, 2020 and 2019:

	*Year Ended December 31,*
	*2021*		*2020*		*2019*
	(in thousands)
Cost of revenues	$	3,782	$	2,767	$	2,262
Research and development		10,750		13,502		11,151
Sales and marketing		6,323		5,785		4,984
General and administrative		46,724		17,981		16,495
Total stock-based compensation	$	67,579	$	40,035	$	34,892

The income tax benefit related to the stock-based compensation expenses was $6.2 million, $5.5 million and $5.5 million for the years ended December 31, 2021, 2020 and 2019, respectively. As of December 31, 2021, the Company had unrecognized stock-based compensation expenses of $16.7 million, $77.0 million and $0.2 million related to options, RSUs and ESPP, respectively, which are expected to be recognized over weighted-average periods of 2.8 years, 2.8 years and 0.1 years, respectively.

Performance-Based Stock Options and Restricted Stock Units

On December 21, 2018, the compensation committee of the Company's board of directors (“Compensation Committee”) granted the equity award for 2019 to the Company’s former chief executive officer, Philippe Courtot (“Mr. Courtot”). The first portion of the award consists of 56 thousand RSUs that were scheduled to vest in 16 quarterly increments beginning on January 1, 2019. The second portion of the award consists of a target number of 33 thousand PSUs, which were scheduled to vest at the end of the three-year performance period from January 2019 through December 2021. The actual number of PSUs eligible to vest range from 0% to 200% of the target number, depending on the level of achievement of goals related to revenue growth during the three-year performance period from January 2019 through December 2021 and Adjusted EBITDA margin for the fiscal year of 2021. The third portion of the award consists of a target number of 33 thousand PSUs, one third of which (11 thousand target PSUs) was scheduled to vest at the end of each fiscal year of 2019, 2020 and 2021. The actual number of PSUs eligible to vest at each vesting date range from 0% to 200% of the target number, depending on the level of achievement of goals related to revenue growth and Adjusted EBITDA margin for each of those years.

On November 2, 2019, the Compensation Committee granted the equity award for 2020 to Mr. Courtot. The first portion of the award consists of 49 thousand RSUs that were scheduled to vest in 16 quarterly installments beginning on December 1, 2019. The second portion of the award consists of a target number of 124 thousand PSOs, which were scheduled to vest at the end of the three-year performance period from January 2020 through December 2022. The actual number of PSOs eligible to vest range from 0% to 200% of the target number, depending on the level of achievement of goals related to revenue growth and free cash flow per share growth during the performance period.

On December 10, 2020, the Compensation Committee granted the equity award for 2021 to Mr. Courtot. The first portion of the award consists of 69 thousand RSUs that were scheduled to vest in 16 quarterly installments beginning on November 1, 2020. The second portion of the award consists of a target number of 224 thousand PSOs, which were scheduled to vest at the end of the three-year performance period from January 2021 through December 2023. The actual number of PSOs eligible to vest range from 0% to 200% of the target number, depending on the level of achievement of goals related to revenue growth and free cash flow per share growth during the performance period.

The vesting of the above awards was conditioned on Mr. Courtot’s continued service through the vesting dates or, for PSOs and PSUs, the dates that performance is certified in addition to the achievement of performance goals. If Mr. Courtot’s employment was terminated (a) by reason of death or disability or (b) by the Company for reasons other than cause or good reason within 12 months following a change in control, then 100% of any unvested portions of these awards would vest, with any vesting in connection with change in control terminations conditioned upon the effectiveness of a release of claims in favor of the Company.

In February 2021 and 2020, 22 thousand shares (representing 200% of target number of awards) and 15 thousand shares (representing 135% of target number of awards) under the equity award for 2019 for Mr. Courtot, vested as a result of the Company achieving the corresponding level of performance goals for 2020 and 2019, respectively.

On March 19, 2021, Mr. Courtot resigned from the Company due to health issues. The Compensation Committee determined that Mr. Courtot’s termination of employment was on account of disability. In accordance with the grant agreements of the equity awards for 2021, 2020 and 2019 for Mr. Courtot, all remaining outstanding RSUs, PSUs and PSOs under these grants were subject to accelerated vesting and became fully vested at 100% of the target number of awards as of the date of his termination of employment, which consist of 127 thousand RSUs, 44 thousand PSUs and 348 thousand PSOs. As a result, the Company recognized an additional $27.3 million of stock-based compensation expense due to the accelerated vesting in the consolidated statements of operations for the year ended December 31, 2021.

On April 27, 2021, the Compensation Committee granted to the Company’s current president and chief executive officer an equity award consisting of certain RSUs and a target number of 10 thousand PSUs. The PSUs are scheduled to vest at the end of the three-year performance period from January 2021 through December 2023. The actual number of the PSUs eligible to vest range from 0% to 200% of the target number, depending on the level of achievement of goals related to revenue growth and free cash flow per share growth during the performance period. If the Company's current president and chief executive officer is terminated (a) by reason of death or disability or (b) by the Company for reasons other than cause or good reason within 12 months following a change in control, then 100% of any unvested portions of the award will vest, with any vesting in connection with terminations due to change in control conditioned upon the effectiveness of a release of claims in favor of the Company.

On October 28, 2021, the Compensation Committee granted to certain executive officers of the Company equity awards consisting of certain RSUs and an aggregate number of 73 thousand PSUs. The target PSUs are scheduled to vest in three equal annual installments over a three-year period from January 2022 through December 2024. The actual number of the PSUs eligible to vest each year range from 0% to 200% of the annual target number, depending on the level of achievement of goals related to revenue growth and adjusted EBITDA margin corresponding to that year. The vesting and release of the first and second installment is capped at 100% of the target number at the end of the first and second year, respectively, with cumulative achievement over 100%, if any, to be vested and released at the end of the third year, together with the vesting of the third installment. If any of the executive officers is terminated (a) by reason of death or disability or (b) by the Company for reasons other than cause or good reason within 12 months following a change in control, any unvested PSUs eligible to vest pursuant to cumulative achievements over 100% for past installments along with any target number of unvested PSUs for any remaining installments will vest immediately.

For the years ended December 31, 2021, 2020 and 2019, stock-based compensation expenses of $13.3 million, $0.2 million and $0.3 million for PSOs, respectively, and $5.3 million, $2.8 million and $0.9 million for PSUs, respectively, were recognized.

Stock Options

The weighted-average grant date fair value of the Company’s stock options granted for the years ended December 31, 2021, 2020 and 2019 was $41.23, $35.49 and $34.02, respectively, using the Black-Scholes-Merton option-pricing model based on the following assumptions:

Year Ended December 31,

2021

2020

2019

Expected term (in years)

5.2 to 5.5

4.5 to 5.5

4.4 to 6.6

Volatility

38% to 41

38% to 43

40% to 46

Risk-free interest rate

0.5% to 1.2

0.3% to 1.4

1.5% to 2.4

Dividend yield

—

The expected term of the options is based on evaluations of historical and expected future employee exercise behavior. The risk-free interest rate is based on the U.S. Treasury rates at the date of grant with maturity dates equal to the expected term at the grant date. The volatility was estimated using the historical volatility derived from the Company's common stock. The Company has not historically declared any dividends and does not expect to in the future.

A summary of the Company’s stock option activity is as follows:

	Outstanding Options			Weighted Average Exercise Price		Weighted Average Remaining Contractual Life		Aggregate Intrinsic Value
	(in thousands)					(Years)		(in thousands)
Balance as of December 31, 2020		2,215		$	59.07		6.5	$	139,121
Granted		495		$	112.43
Exercised		(725	)⁽¹⁾	$	68.91
Canceled		(147	)	$	102.92
Balance as of December 31, 2021		1,838		$	66.05		6.0	$	130,791
Vested and expected to vest - December 31, 2021		1,659		$	61.43		5.7	$	125,769
Exercisable - December 31, 2021		1,168		$	42.60		4.3	$	110,495

⁽¹⁾ Included 348 thousand shares of PSOs.

The total intrinsic value of options exercised for the years ended December 31, 2021, 2020 and 2019 was $42.5 million, $77.5 million and $52.1 million, respectively. Intrinsic value of an option is the difference between the fair value of the Company’s common stock at the time of exercise and the exercise price paid.

Restricted Stock Units

A summary of the Company’s RSU activity is as follows:

	Outstanding RSUs			Weighted Average Grant Date Fair Value
	(in thousands)
Balance as of December 31, 2020		1,047		$	86.78
Granted		583	⁽¹⁾	$	114.59
Vested		(530	)⁽²⁾	$	84.97
Canceled		(183	)	$	90.42
Balance as of December 31, 2021		917	⁽³⁾	$	104.78
Outstanding and expected to vest - December 31, 2021		815		$	104.22

⁽¹⁾ Included 34 thousand shares of PSUs granted to certain executive officers in 2021 and 11 thousand additional shares of PSUs vested as a result of the Company achieving the corresponding level of performance goals for 2020.

⁽²⁾ Included 11 thousand additional shares of PSUs vested as a result of the Company achieving the corresponding level of performance goals for 2020.

⁽³⁾ Included 34 thousand shares of PSUs granted to certain executive officers in 2021.

The aggregate fair value of RSUs vested for the years ended December 31, 2021, 2020 and 2019 was $59.5 million, $46.5 million and $37.9 million, respectively.

Employee Stock Purchase Plan

The weighted-average grant date fair value of the Company’s ESPP for the year ended December 31, 2021 was $26.88 using the Black-Scholes-Merton option-pricing model based on the following assumptions:

	Year Ended December 31,
	2021
Expected term (in years)		0.5
Volatility		34	%
Risk-free interest rate		0.1	%
Dividend yield		—

The expected term of the ESPP represents the six-month offering period. The risk-free interest rate is based on the U.S. Treasury rates at the date of grant with maturity dates equal to the expected term at the grant date. The volatility was estimated using the historical volatility derived from the Company's common stock. The Company has not historically declared any dividends and does not expect to in the future.

Share Repurchase Program

The Company's share repurchase program was authorized by the board of directors as follows:

Announcement Date	*Authorized Dollar Value*
	(in millions)
February 12, 2018	$	100.0
October 30, 2018		100.0
October 30, 2019		100.0
May 7, 2020		100.0
February 10, 2021		100.0
November 3, 2021		200.0
Total as of December 31, 2021	$	700.0

Shares may be repurchased from time to time on the open market in accordance with Rule 10b-18 of the Exchange Act of 1934, including pursuant to a pre-set trading plan adopted in accordance with Rule 10b5-1 under the Exchange Act. All share repurchases have been made using cash resources. Repurchased shares are retired and reclassified as authorized and unissued shares of common stock. On retirement of the repurchased shares, common stock is reduced by an amount equal to the number of shares being retired multiplied by the par value. The excess amount that is retired over its par value is first allocated as a reduction to additional paid-in capital based on the initial public offering price of the stock, with the remaining excess to retained earnings.

For the years ended December 31, 2021, 2020 and 2019, the Company repurchased 1.1 million shares, 1.3 million shares and 1.0 million shares of its common stock for $130.0 million, $126.7 million and $86.4 million, respectively. As of December 31, 2021, $271.8 million remained available for share repurchases pursuant to the Company's share repurchase program.

Note 11 - Employee Benefits Plan

12 Months Ended

Dec. 31, 2021

Notes to Financial Statements

Compensation and Employee Benefit Plans [Text Block]

NOTE 11.

Employee Benefits Plan

The Company’s 401(k) Plan was established in 2000 to provide retirement and incidental benefits for its employees. As allowed under section 401(k) of the Internal Revenue Code, the 401(k) Plan provides tax-deferred salary deductions for eligible employees. Contributions to the 401(k) Plan are limited to a maximum amount as set periodically by the Internal Revenue Service. For the years ended December 31, 2021, 2020 and 2019, the Company made contributions to the 401(k) Plan of $2.4 million, $1.3 million and $1.3 million, respectively.

The Company contributes to a Provident Fund Plan for its employees in India, which is a defined contribution plan set up in accordance with local labor and tax laws. Gratuity is also paid by the Company to eligible employees in India in accordance with Payment of Gratuity Act, 1972. For the years ended December 31, 2021, 2020 and 2019, the Company contributed $1.7 million, $1.4 million and $1.1 million, respectively, to those plans.

Note 12 - Income Taxes

12 Months Ended

Dec. 31, 2021

Notes to Financial Statements

Income Tax Disclosure [Text Block]

NOTE 12.

Income Taxes

The Company’s geographical breakdown of income before income taxes is as follows:

	*Year Ended December 31,*
	*2021*		*2020*		*2019*
	(in thousands)
Domestic	$	80,472	$	94,099	$	72,124
Foreign		8,925		7,938		7,859
Income before income taxes	$	89,397	$	102,037	$	79,983

Income tax provision consists of the following:

	*Year Ended December 31,*
	*2021*			*2020*			*2019*
	(in thousands)
Current
Federal	$	20,135		$	1,944		$	(90	)
State		4,324			1,438			646
Foreign		3,701			3,571			3,000
Current income tax provision		28,160			6,953			3,556
Deferred
Federal		(7,342	)		4,239			7,085
State		(1,722	)		26			447
Foreign		(659	)		(753	)		(441	)
Deferred income tax provision (benefit)		(9,723	)		3,512			7,091
Income tax provision	$	18,437		$	10,465		$	10,647

The reconciliation of the statutory federal income tax rate to the Company’s effective tax rate is as follows:

	*Year Ended December 31,*
	*2021*			*2020*			*2019*
Federal statutory rate		21.0	%		21.0	%		21.0	%
State taxes		3.1			1.6			1.5
Stock-based compensation		10.3			4.8			4.0
Excess tax benefits related to stock-based compensation		(5.4	)		(13.8	)		(11.2	)
Foreign source income		0.4			0.2			0.1
Change in valuation allowance		0.2			0.8			1.1
Foreign-derived intangible income deduction		(7.0	)		(1.7	)		—
Federal and state research and development credit		(1.9	)		(2.6	)		(3.7	)
Other		(0.1	)		—			0.4
Income tax provision		20.6	%		10.3	%		13.2	%

Deferred Income Taxes

Deferred income taxes reflect the tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The components of the Company’s deferred tax assets and liabilities are as follows:

	*December 31,*
	*2021*			*2020*
	(in thousands)
Deferred tax assets
Research and development credit carryforwards	$	10,743		$	16,965
Foreign tax credit carryforwards		933			3,497
Accrued liabilities		1,655			2,019
Deferred revenues		7,250			5,123
Operating lease liabilities		11,777			15,924
Intangible assets		12,377			1,397
Stock-based compensation		4,085			3,907
Other		2,987			720
Gross deferred tax assets		51,807			49,552
Valuation allowance		(11,364	)		(11,188	)
Net deferred tax assets		40,443			38,364
Deferred tax liabilities
Fixed assets		(3,320	)		(7,017	)
Operating leases - right of use asset		(9,010	)		(13,054	)
Deferred commissions		(3,026	)		(2,482	)
Total deferred tax liabilities		(15,356	)		(22,553	)
Net deferred tax assets	$	25,087		$	15,811

The realization of deferred tax assets is dependent upon the generation of sufficient taxable income of the appropriate character in future periods. The Company regularly assesses the ability to realize its deferred tax assets and establishes a valuation allowance if it is more-likely than-not that some portion, or all, of the deferred tax assets will not be realized. The Company weighs all available positive and negative evidence, including its earnings history and results of recent operations, scheduled reversals of deferred tax liabilities, projected future taxable income, and tax planning strategies. Due to the weight of objectively verifiable negative evidence, it is more-likely-than-not that its California deferred tax assets will not be realized as of December 31, 2021. Additionally, due to a lack of sufficient future income of the appropriate character, certain U.S. federal and state deferred tax assets are not more-likely-than-not to be realized. Accordingly, the Company has recorded a valuation allowance of $11.4 million and $11.2 million against such deferred tax assets as of December 31, 2021 and 2020, respectively. The increase of $0.2 million in valuation allowance was mainly associated with the California research and development credit generated during the year ended December 31, 2021 that will not likely be realized in the foreseeable future.

As of December 31, 2021, the Company had federal net operating loss carryforwards of approximately $0.7 million available to reduce federal taxable income. The state net operating loss carryforwards are not material. The federal net operating losses begin to expire in 2022. Utilization of the Company’s net operating loss carryforwards may be subject to an annual limitation due to the ownership change limitations provided by the Internal Revenue Code and similar state provisions. Such an annual limitation could result in the expiration of the net operating loss carryforwards before utilization. As of December 31, 2021, the Company had $15.5 million of state research and development credit carryforwards. State research and development credits do not expire. As of December 31, 2021, the Company had foreign tax credit carryforwards of $0.9 million which begin to expire in 2028.

The following table summarizes the activity related to the Company’s unrecognized tax benefits:

	*Year Ended December 31,*
	*2021*			*2020*			*2019*
	(in thousands)
Unrecognized tax benefits beginning balance	$	8,855		$	7,778		$	6,406
Gross increase for tax positions of prior years		—			4			—
Gross decrease for tax positions of prior years		(25	)		—			(12	)
Gross increase for tax positions of current year		846			1,258			1,384
Lapse of statute of limitations		—			(185	)		—
Total unrecognized tax benefits	$	9,676		$	8,855		$	7,778

The unrecognized tax benefits, if recognized, would impact the income tax provision by $4.9 million, $4.6 million and $4.2 million as of December 31, 2021, 2020 and 2019, respectively. The remaining amount would result in the recognition of a corresponding deferred tax asset that is then offset by a full valuation allowance. As of December 31, 2021, the Company does not believe that its estimates, as otherwise provided for, on such tax positions will significantly increase or decrease within the next twelve months. The Company has elected to include interest and penalties as a component of income tax expense. The amounts were not material for the years ended December 31, 2021, 2020 and 2019.

The Company files income tax returns in the United States, including various state jurisdictions. The Company’s subsidiaries file tax returns in various foreign jurisdictions. The tax years 2001 through 2020 remain open to examination by the major taxing jurisdictions in which the Company is subject to tax. The Company is also currently subject to tax audits in various jurisdictions. The Company believes that an adequate provision has been made for any adjustments that may result from tax examinations. However, the outcome of tax audits cannot be predicted with certainty. If any issues addressed in the Company's tax audits are resolved in a manner inconsistent with its expectations, the Company could be required to adjust its income tax provision in the period such resolution occurs.

As of December 31, 2021, the Company has undistributed earnings in certain foreign subsidiaries that the Company has indefinitely reinvested outside the United States. As a result, the Company has not provided for deferred tax liabilities on those earnings. The Company may be required to pay additional income taxes if the Company repatriates those earnings in the future.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

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+ Details

Note 13 - Segment and Geographic Area Information

12 Months Ended

Dec. 31, 2021

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

NOTE 13.

Segment and Geographic Area Information

Under ASC 280 Segment Reporting, operating segments are defined as components of an entity about which separate financial information is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The Company operates in one segment and has only one reportable segment. The Company’s chief operating decision maker is the Chief Executive Officer, who makes operating decisions, assesses performance and allocates resources on a consolidated basis. All of the Company’s principal operations and decision-making functions are located in the United States.

Revenue by geographic area, based on the customer's billing address, is as follows:

	*Year Ended December 31,*
	*2021*		*2020*		*2019*
	(in thousands)
United States	$	250,761	$	230,444	$	206,555
Foreign		160,411		132,519		115,052
Total revenues	$	411,172	$	362,963	$	321,607

Long-lived assets, which consist of Property and equipment, net and Operating leases - right of use asset, by geographic area, are as follows:

	*December 31,*
	*2021*		*2020*
	(in thousands)
United States	$	66,440	$	69,256
India		20,401		24,774
Rest of world		12,029		15,658
Total Long-lived Assets	$	98,870	$	109,688

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

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+ Details

Note 14 - Net Income Per Share

12 Months Ended

Dec. 31, 2021

Notes to Financial Statements

Earnings Per Share [Text Block]

NOTE 14.

Net Income Per Share

The computations for basic and diluted net income per share are as follows:

	*Year Ended December 31,*
	*2021*		*2020*		*2019*
	(in thousands, except per share data)
Numerator:
Net income	$	70,960	$	91,572	$	69,336
Denominator:
Basic weighted average shares		39,030		39,167		39,075
Effect of potentially dilutive shares:
Stock options		863		1,262		1,806
Restricted stock units		224		311		403
Employee stock purchase plan		1		—		—
Diluted weighted average shares	$	40,118	$	40,740	$	41,284
Net income per share:
Basic	$	1.82	$	2.34	$	1.77
Diluted	$	1.77	$	2.25	$	1.68

Potentially dilutive shares not included in the calculation of diluted net income per share because doing so would be anti-dilutive are as follows:

	*Year Ended December 31,*
	*2021*		*2020*		*2019*
	(in thousands)
Stock options		534		532		460
Restricted stock units		61		52		52
Total anti-dilutive shares		595		584		512

Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2021

Accounting Policies [Abstract]

Description Of Business Policy [Policy Text Block]

Description of Business

Qualys, Inc. (the “Company”, “we”, “us”, “our”) was incorporated in the state of Delaware on December 30, 1999. The Company is headquartered in Foster City, California and has wholly-owned subsidiaries throughout the world. The Company is a pioneer and leading provider of cloud-based IT, security and compliance solutions that enable organizations to identify security risks to their IT infrastructures, help protect their IT systems and applications from ever-evolving cyber-attacks and achieve compliance with internal policies and external regulations. The Company’s cloud solutions address the growing security and compliance complexities and risks that are amplified by the dissolving boundaries between internal and external IT infrastructures and web environments, the rapid adoption of cloud computing and the proliferation of geographically dispersed IT assets. Organizations can use the Company’s integrated suite of solutions delivered on its Qualys Cloud Platform to cost-effectively obtain a unified view of their security and compliance posture across globally-distributed IT infrastructures.

Basis of Accounting, Policy [Policy Text Block]

Basis of Presentation

The accompanying consolidated financial statements and footnotes have been prepared in accordance with U.S. GAAP as well as the instructions to Form 10-K and the rules and regulations of the SEC. In the opinion of management, the accompanying consolidated financial statements reflect all adjustments, which include only normal recurring adjustments, necessary for the fair presentation of the Company’s consolidated financial position, results of operations and cash flows for the periods presented. The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated upon consolidation.

Risk and Uncertainties, Policy [Policy Text Block]

Risks and Uncertainties

In March 2020, the World Health Organization declared the outbreak of COVID-19 as a pandemic. As a result of COVID-19, the Company has modified certain aspects of its business, including restricting employee travel, requiring employees to work from home, and canceling certain events and meetings, among other modifications. The Company will continue to actively monitor the situation and may take further actions that alter its business operations as may be required by federal, state or local authorities or that the Company determines are in the best interests of its employees, customers, partners, suppliers and stockholders. While the Company has not incurred significant disruptions from the COVID-19 pandemic to date and does not expect the pandemic will have a significant impact on the Company’s business in 2022, the Company is unable to accurately predict the full impact that COVID-19 will have due to numerous uncertainties, including the duration of the outbreak, actions that may be taken by governmental authorities and the impact to the business of its customers and partners. The Company will continue to evaluate the nature and extent of the impact to its business, financial position, results of operations and cash flows.

Use of Estimates, Policy [Policy Text Block]

Use of Estimates

The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of assets and liabilities at the date of the consolidated financial statements and the reported results of operations during the reporting period. The Company’s management regularly assesses these estimates, which primarily affect revenue recognition, allowance for credit loss, the valuation of goodwill and intangible assets, leases, stock-based compensation and income tax provision. Actual results could differ from those estimates and such differences may be material to the accompanying consolidated financial statements.

Concentration Risk, Credit Risk, Policy [Policy Text Block]

Concentration of Credit Risk

The Company invests its cash and cash equivalents with major financial institutions. Cash balances with any one institution at times may be in excess of federally insured limits. Cash equivalents are invested in high-quality investment grade financial instruments and are diversified. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk.

Credit risk with respect to accounts receivable is dispersed due to the large number of customers. Collateral is not required for accounts receivable. As of December 31, 2021 and 2020, no customer or channel partner accounted for more than 10% of the Company's revenues and accounts receivable balance.

Cash, Cash Equivalents and Short-Term and Long-Term Investments Policy [Policy Text Block]

Cash, Cash Equivalents, Restricted cash and Short-Term and Long-Term Marketable Securities

Cash and cash equivalents include cash held in banks, highly liquid money market funds and commercial paper, all with original maturities of three months or less when acquired. The Company’s short-term and long-term marketable securities consist of fixed-income U.S. and foreign government agency securities, corporate bonds, asset-backed securities and commercial paper. Management determines the appropriate classification of the Company's investments at the time of purchase and reevaluates such designation at each balance sheet date. The Company classifies its marketable securities as either short-term or long-term based on each instrument's underlying remaining contractual maturity date.

As of both December 31, 2021 and 2020, the Company has a restricted cash balance of $1.2 million in the form of a letter of credit issued to the landlord of the Company's California headquarter office lease as security deposit.

Cash equivalents are stated at cost, which approximates fair market value. Short-term and long-term marketable securities are classified as available-for-sale debt securities (AFS debt securities) and are carried at fair value. Unrealized gains and losses in fair value of the AFS debt securities are reported in other comprehensive income (loss). When the AFS debt securities are sold, cost is based on the specific identification method, and the realized gains and losses are included in other income (expense), net in the consolidated statements of operations. AFS debt securities are reviewed quarterly for impairment. An investment is considered impaired when its fair value is below its amortized cost. Declines in fair value from amortized cost for AFS debt securities that the company intends to sell or will more likely than not be required to sell before the expected recovery of the amortized cost basis are charged to other income (expense), net in the period in which the loss occurs. Otherwise, the credit loss component of the impairment is recorded as allowance for credit losses with an offsetting entry charged to other income (expense), net, while the remaining loss is recognized in other comprehensive income (loss).

Accounts Receivable [Policy Text Block]

Accounts Receivable

Accounts receivable are recorded at the invoiced amount and do not bear interest. The allowance for credit losses is determined on a collective basis where similar risk characteristics exist and on an individual basis when we identify significant customers or invoices with collectability issues. The estimate for credit losses considers historical write-offs by aging category, that are adjusted for current conditions and reasonable and supportable forecasts of future losses. Any change in the assumptions used in analyzing credit losses may result in additional allowances being recognized in the period in which the change occurs. When the Company ultimately concludes that a receivable is uncollectible, the balance is written off against the allowance for credit losses. Payments subsequently received on such receivables are recognized in the period received. The allowance for credit losses recognized and write-offs charged against the allowance were not significant for the years ended December 31, 2021 and 2020.

Securities Owned Not Readily Marketable, Policy [Policy Text Block]

Non-marketable securities

In 2018, the Company invested $2.5 million in preferred stock of a privately-held company (the “Investee”). The fair value of the investment is not readily available, and there are no quoted market prices for the investment. The Company elected the measurement alternative to account for the investment at cost less impairment and will measure the investment at fair value when the Company identifies observable price changes. The investment is assessed for impairment annually or whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. No impairment has been incurred related to the investment. The investment is included in other noncurrent assets in the consolidated balance sheets. The Company has not received any dividends from the investment.

In 2019, the Company made an advance payment of $0.6 million to the Investee for it to perform certain technology development work, which should either be settled in the form of royalty fee charges when the technology materializes and is licensed to the Company or, otherwise, should be repaid to the Company in cash. The advance payment was recorded in other non-current assets in the consolidated balance sheet. During the fourth quarter ended December 31, 2021, the technology has not been developed and the Company decided to no longer pursue the development of the technology or the collection of the advanced amount. Accordingly, the entire amount of the advance payment was written off and recorded in the general and administrative expense during the year ended December 31, 2021.

Property, Plant and Equipment, Policy [Policy Text Block]

Property and Equipment, net

Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, which range from three to five years. Leasehold improvements are amortized on a straight-line basis over the lesser of the estimated useful life of the asset or the remaining lease term.

The Company purchases physical scanner appliances and other computer equipment that are provided to customers on a subscription basis. This equipment is recorded within property and equipment and the depreciation is recorded in cost of revenues over an estimated useful life of three years.

Upon retirement or disposal, the cost of assets and the related accumulated depreciation are removed from the accounts and any resulting gain or loss is reflected in the consolidated statements of operations. Repairs and maintenance that do not extend the life of an asset are expensed as incurred and major improvements are capitalized as property and equipment.

Lessee, Leases [Policy Text Block]

Leases

The Company leases certain offices, computer equipment and its data center facilities under finance leases and non-cancelable operating leases. For both operating and finance leases, we recognize a right-of-use asset, which represents our right to use the underlying asset for the lease term, and a lease liability, which represents the present value of our obligation to make payments arising over the lease term. Many of our leases include rental escalation clauses, renewal options and/or termination options that are factored into our determination of lease payments and lease terms when appropriate. The present value of the lease payments is calculated using the incremental borrowing rate of the underlying leases determined at lease commencement. As most of our leases do not provide a readily determinable implicit rate, the Company determines an incremental borrowing rate using a portfolio approach based on the rate of interest that the Company would have to pay to borrow an amount equal to the lease payments on a collateralized basis over a similar term as the leases.

Where the Company is the lessee, the Company elects to account for non-lease components associated with its leases (e.g., common area maintenance costs) and lease components separately for substantially all of its asset classes, except for data centers, for which the Company elected to combine lease and non-lease components. For leases with a term of one year or less, the Company has elected not to record the right-of-use asset or liability.

In arrangements where the Company is the lessor, the Company elected to apply the practical expedient to account for lease components (e.g., customer premise equipment) and non-lease components (e.g., service revenue) as combined components as revenue under ASC 606 as service revenues are the predominant components in the arrangements.

Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block]

Impairment of Long-Lived Assets

The Company evaluates its long-lived assets, which consist of property and equipment, and intangible assets subject to amortization, for indicators of possible impairment when events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Impairment exists if the carrying amounts of such assets exceed the estimates of future undiscounted cash flows expected to be generated by such assets. Should an impairment exist, the impairment loss would be measured based on the excess carrying value of the asset over the asset’s estimated fair value. For the years ended December 31, 2021, 2020 and 2019, there was no impairment of long-lived assets.

Goodwill and Intangible Assets, Policy [Policy Text Block]

Goodwill and Intangible Assets

Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired in a business combination. Goodwill and indefinite-lived intangible assets are not amortized but tested for impairment at least annually or more frequently if certain circumstances indicate a possible impairment may exist. The goodwill impairment tests are performed at the reporting unit level. The Company’s operations are organized as one reporting unit.

In testing for a potential impairment of goodwill and the indefinite-lived intangible assets, the Company first performs a qualitative assessment to determine if it is more likely than not (a more than 50% likelihood) that the fair value of the reporting unit or the indefinite-lived intangible assets is less than their carrying amount. If the fair value is not considered to be less than the carrying amount, no further evaluation is necessary. Otherwise, the Company will perform a quantitative test. Goodwill impairment is measured as the amount by which the carrying value of the reporting unit or the indefinite-lived intangible assets exceeds their fair value. The Company performed the annual assessments on December 1, 2021 and 2020 and concluded there was no impairment of goodwill or the indefinite-lived intangible assets.

Business Combinations Policy [Policy Text Block]

Business Combinations

The Company applies the provisions of ASC 805, Business Combinations, in accounting for its acquisitions. It requires the Company to recognize separately from goodwill the assets acquired and the liabilities assumed at their acquisition date fair values. Goodwill as of the acquisition date is measured as the excess of consideration transferred over the net of the acquisition date fair values of the assets acquired and the liabilities assumed. While the Company uses its best estimates and assumptions to accurately value assets acquired and liabilities assumed at the acquisition date as well as any contingent consideration, where applicable, its estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, the Company records adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to its consolidated statements of operations.

Derivatives, Reporting of Derivative Activity [Policy Text Block]

Derivative Financial Instruments

Derivative financial instruments are utilized by the Company to reduce foreign currency exchange risks. The Company uses foreign currency forward contracts, with maturities of 13 months or less, to mitigate the impact of foreign currency fluctuations of certain non-U.S. dollar denominated net asset positions, to date primarily cash, accounts receivable and operating lease liabilities, as well as to manage foreign currency fluctuation risk related to forecasted transactions. Open contracts are recorded within prepaid expenses and other current assets, other noncurrent assets, accrued liabilities or other noncurrent liabilities in the consolidated balance sheets. Gains and losses resulting from currency exchange rate movements on non-designated forward contracts are recognized in other income (expense), net. Any gains or losses from derivatives designated as cash flow hedges are first recorded within accumulated other comprehensive income (“AOCI”) and then reclassified into revenue or operating expenses when the hedged item impacts the consolidated statements of operations. Cash flows related to these forward contracts are classified in our consolidated statements of cash flows in the same manner as the underlying hedged transaction within cash flows from operating activities.

Share-based Payment Arrangement [Policy Text Block]

Stock-Based Compensation

The Company recognizes the fair value of its stock options, restricted stock units (“RSUs”) and stock purchase rights under the employee stock purchase plan (the “ESPP”) on a straight-line basis over the requisite service periods. The fair value of each stock option or stock purchase right is estimated on the date of grant using the Black-Scholes-Merton option pricing model and the fair value of each RSU is based on the Company's common stock price on the date of grant. Compensation expenses for performance-based stock options (“PSOs”) and performance-based restricted stock units (“PSUs”) are recorded based on expected achievement of the performance metrics specified in the grant, which are assessed on a quarterly basis. Forfeitures are estimated on the date of grant and revised if actual or expected forfeiture materially differs from original estimates.

Revenue [Policy Text Block]

Revenue Recognition

The Company derives revenues from subscriptions that require customers to pay a fee in order to access the Company’s cloud solutions. Contract period with customers generally ranges from less than a year to five years. The subscription fee entitles the customer to an unlimited number of scans for a specified number of networked devices or web applications and, if requested by a customer as part of their subscription, a specified number of physical or virtual scanner appliances. The Company’s physical and virtual scanner appliances are requested by certain customers as part of their subscriptions in order to scan IT infrastructures within their firewalls and do not function without, and are not sold separately from, subscriptions for the Company’s solutions. In some limited cases, the Company also provides certain computer equipment used to extend its Qualys Cloud Platform into its customers’ private cloud environment. Customers are required to return physical scanner appliances and computer equipment if they do not renew their subscriptions.

The Company determines revenue recognition through the following steps:

•

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

•

Identification of the performance obligations in the contract;

•

Determination of the transaction price

•

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

•

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

At the inception of a customer contract, the Company makes an assessment as to that customer's ability to pay for the services provided. The Company assesses collectability based on several factors, including credit worthiness of the customer along with past transaction history. In addition, the Company performs periodic evaluations of its customers’ financial condition.

Most of the Company’s revenue contracts are subscription based and contain a single performance obligation. The subscription contracts typically do not offer to the customers any future rights that would constitute material rights. Contract prices are generally composed of fixed consideration for a specific period of time as the Company in general does not offer refunds, volume rebates, customer loyalty programs or other forms of customer incentive payments. In limited situations, contract prices are contingent on future events, such as actual usage during the contract terms, which are accounted for as variable consideration and estimated based on the most likely amount of consideration that the Company is expected to be entitled to. Estimates are included in the contract price to the extent that it is considered probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. Such estimates are made at contract inception and updated periodically when additional information becomes available. A cumulative catch-up adjustment is made when there is a change in the estimate of variable consideration.

As the Company's cloud-based subscription services are delivered to customers electronically and over time, revenue is generally recognized ratably over the contract terms. When physical equipment is provided to the customers as part of the subscription service contract, the Company applies the practical expedient allowed under ASC 842 Leases to combine lease and nonlease components as a combined component to be accounted for under ASC 606, as the Company determined that the software subscription is the predominant component of the combined components. Therefore, the Company recognizes revenue for the physical equipment ratably over the related subscription period.

Contract modifications happen when there is an upsell, where the customers subsequently enter into contract with the Company to purchase additional product offerings or additional scans for additional devices. Contract modifications related to upsells are typically accounted for prospectively.

Deferred revenues consist of customer contracts billed or cash received that will be recognized in the future under subscriptions existing at the balance sheet date. The current portion of deferred revenues represents amounts that are expected to be recognized within one year of the balance sheet date.

Costs of shipping and handling charges incurred by the Company associated with physical scanner appliances and other computer equipment are included in cost of revenues. Sales taxes and other taxes collected from customers to be remitted to government authorities are excluded from revenues.

Incremental direct costs of obtaining a contract, which consist of sales commissions primarily for new business and upsells, are deferred and amortized over the estimated life of the customer relationship if renewals are expected and the renewal commission is not commensurate with the initial commission. The Company elected the practical expedient to expense commissions on renewals where the specific anticipated contract term amortization period is one year or less. The Company amortizes the capitalized commission cost as a selling expense on a straight-line basis over a period of five years. The Company classifies deferred commissions as current or noncurrent based on the timing of when it expects to recognize the expense. The current and noncurrent portions of deferred commissions are included in prepaid expenses and other current assets and other noncurrent assets, respectively, in its consolidated balance sheets.

Advertising Cost [Policy Text Block]

Advertising Expenses

Advertising costs are expensed as incurred and are included in sales and marketing expense in the consolidated statements of operations. The Company incurred advertising costs of $2.1 million, $1.6 million and $1.5 million for the years ended December 31, 2021, 2020 and 2019, respectively.

Income Tax, Policy [Policy Text Block]

Income Taxes

The Company provides for the effect of income taxes in its consolidated financial statements using the asset and liability method which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the consolidated financial statements. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, net operating loss carryovers, and tax credit carry forwards. The Company regularly reviews its deferred tax assets for recoverability and establishes a valuation allowance if it is more likely than not that some portion or all of the deferred tax assets will not be realized. To make this assessment, the Company takes into account predictions of the amount and category of taxable income from various sources and all available positive and negative evidence about these possible sources of taxable income. The weight given to the potential effect of negative and positive evidence is commensurate with the extent to which the strength of the evidence can be objectively verified. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that includes the enactment date.

Income tax expense or benefit is recognized for the amount of taxes payable or refundable for the current year and for deferred tax assets and liabilities for the tax consequences of events that have been recognized in an entity’s financial statements or tax returns. The Company must make significant assumptions, judgments and estimates to determine its current income tax provision (benefit), its deferred tax assets and liabilities, and any valuation allowance to be recorded against its deferred tax assets. The Company's estimates and assumptions may differ from the actual results as reflected on its income tax returns and will record the required adjustments when they are identified or resolved.

The Company applies a two-step approach to determining the financial statement recognition and measurement of uncertain tax positions. The Company only recognizes an income tax expense or benefit with respect to uncertain tax positions in its financial statements that the Company judges is more likely than not to be sustained solely on its technical merits in a tax audit, including resolution of any related appeals or litigation processes. To make this judgment, the Company must interpret complex and sometimes ambiguous tax laws, regulations and administrative practices. If an income tax position meets the more likely than not recognition threshold, then the Company must measure the amount of the tax benefit to be recognized by determining the largest amount of tax benefit that has a greater than a 50% likelihood of being realized upon effective settlement with a taxing authority that has full knowledge of all of the relevant facts. It is inherently difficult and subjective to estimate such amounts, as this requires the Company to determine the probability of various possible settlement outcomes. To determine if a tax position is effectively settled after a tax examination has been completed, the Company must also estimate the likelihood that another taxing authority could review the respective tax position. The Company must also determine when it is reasonably possible that the amount of unrecognized tax benefits will significantly increase or decrease in the 12 months after each fiscal year-end. These judgments are difficult because a taxing authority may change its behavior as a result of the Company's disclosures in its financial statements. The Company must reevaluate its income tax positions on a quarterly basis to consider factors such as changes in facts or circumstances, changes in tax law, effectively settled issues under audit, and new audit activity. Such a change in recognition or measurement would result in recognition of a tax benefit or an additional charge to the tax provision. The Company's policy is to recognize interest and penalties related to unrecognized tax benefits as a component of the provision for income taxes.

Comprehensive Income, Policy [Policy Text Block]

Comprehensive Income (Loss)

Other comprehensive income (loss) consists of unrealized gains (losses) on marketable securities, net of tax, and derivative financial instruments designated as cash flow hedges which are not included in the Company’s net income. Total comprehensive income includes net income and other comprehensive income (loss) and is included in the consolidated statements of comprehensive income.

Foreign Currency Transactions and Translations Policy [Policy Text Block]

Foreign Currency Transactions

The Company’s operations are conducted in various countries around the world and the financial statements of its foreign subsidiaries are reported in the U.S. dollar as their respective functional currency. Monetary assets and liabilities denominated in foreign currencies have been re-measured into U.S. dollars using the exchange rates in effect at the balance sheet date, and income and expenses are re-measured at average exchange rates during the period. Foreign currency re-measurement gains and losses and foreign currency transaction gains and losses are recognized in other income (expense), net.

Earnings Per Share, Policy [Policy Text Block]

Net Income Per Share

Basic net income per share is computed by dividing net income by the weighted-average number of shares outstanding during the period. Diluted net income per share is computed by dividing net income by the weighted-average number of shares outstanding plus potentially dilutive shares outstanding during the period. The potentially dilutive shares are computed by applying the treasury stock method to the Company's stock options, RSUs and the stock purchase rights under the ESPP. Any potential shares that would be anti-dilutive are excluded from the computation of diluted net income per share.

New Accounting Pronouncements, Policy [Policy Text Block]

Recently Adopted Accounting Pronouncements

In December 2019, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") No. 2019-12, Simplifying the Accounting for Income Taxes ("ASU 2019-12"), which simplifies the accounting for income taxes, eliminates certain exceptions within ASC 740, Income Taxes, and clarifies certain aspects of the current guidance to promote consistency among reporting entities. ASU 2019-12 is effective for the Company for fiscal years beginning after December 15, 2020. Most amendments within the standard are required to be applied on a prospective basis, while certain amendments must be applied on a retrospective or modified retrospective basis. The Company adopted ASU 2019-12 in the first quarter of 2021 with no material impact on the Company's consolidated financial statements.

Recently Issued Accounting Pronouncements Not Yet Adopted

The Company does not believe any other new accounting pronouncements issued by the FASB that have not become effective will have a material impact on its consolidated financial statements.

Note 2 - Fair Value of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2021

Notes Tables

Cash and Cash Equivalents and Debt Securities, Available-for-sale, Amortized Cost to Fair Value [Table Text Block]

	*December 31, 2021*
	*Amortized Cost*		*Unrealized Gains*		*Unrealized Losses*			*Fair Value*
	(in thousands)
Cash and cash equivalents:
Cash	$	61,220	$	—	$	—		$	61,220
Money market funds		75,258		—		—			75,258
Commercial paper		850		—		—			850
Total		137,328		—		—			137,328
Short-term marketable securities:
Commercial paper		28,869		101		(7	)		28,963
Corporate bonds		3,952		—		—			3,952
Asset-backed securities		217,160		2		(163	)		216,999
U.S. Treasury and government agencies		18,046		—		—			18,046
Total		268,027		103		(170	)		267,960
Long-term marketable securities:
Asset-backed securities		14,941		6		(36	)		14,911
U.S. Treasury and government agencies		37,664		—		(136	)		37,528
Foreign government		1,007		12		—			1,019
Corporate bonds		57,762		160		(182	)		57,740
Total		111,374		178		(354	)		111,198
Total	$	516,729	$	281	$	(524	)	$	516,486

	*December 31, 2020*
	*Amortized Cost*		*Unrealized Gains*		*Unrealized Losses*			*Fair Value*
	(in thousands)
Cash and cash equivalents:
Cash	$	33,105	$	—	$	—		$	33,105
Money market funds		38,028		—		—			38,028
Commercial paper		2,999		—		—			2,999
Total		74,132		—		—			74,132
Short-term marketable securities:
Commercial paper		6,147		—		—			6,147
Corporate bonds		24,368		170		—			24,538
Asset-backed securities		6,263		18		—			6,281
U.S. Treasury and government agencies		244,568		369		(11	)		244,926
Total		281,346		557		(11	)		281,892
Long-term marketable securities:
Asset-backed securities		38,456		160		(3	)		38,613
U.S. Treasury and government agencies		6,884		17		—			6,901
Foreign government		1,006		31		—			1,037
Corporate bonds		51,068		839		—			51,907
Total		97,414		1,047		(3	)		98,458
Total	$	452,892	$	1,604	$	(14	)	$	454,482

Fair Value, Assets Measured on Recurring Basis [Table Text Block]

	*December 31, 2021*
	*Level 1*		*Level 2*		*Fair Value*
	(in thousands)
Money market funds	$	75,258	$	—	$	75,258
Commercial paper		—		18,896		18,896
U.S. Treasury and government agencies		—		254,527		254,527
Foreign government		—		1,019		1,019
Corporate bonds		—		86,703		86,703
Asset-backed securities		—		18,863		18,863
Total	$	75,258	$	380,008	$	455,266

	*December 31, 2020*
	*Level 1*		*Level 2*		*Fair Value*
	(in thousands)
Money market funds	$	38,028	$	—	$	38,028
Commercial paper		—		9,146		9,146
U.S. Treasury and government agencies		—		251,827		251,827
Foreign government		—		1,037		1,037
Corporate bonds		—		76,445		76,445
Asset-backed securities		—		44,894		44,894
Total	$	38,028	$	383,349	$	421,377

Investments Classified by Contractual Maturity Date [Table Text Block]

	*December 31, 2021*
	*Mature within One Year*		*Mature after One Year through Two Years*		*Mature over Two Years*		*Fair Value*
	(in thousands)
Commercial paper	$	18,896	$	—	$	—	$	18,896
U.S. Treasury and government agencies		216,999		37,528		—		254,527
Foreign government		—		1,019		—		1,019
Corporate bonds		28,964		38,407		19,332		86,703
Asset-backed securities		3,951		7,959		6,953		18,863
Total	$	268,810	$	84,913	$	26,285	$	380,008

Schedule of Derivative Instruments [Table Text Block]

	*December 31,*
	*2021*			*2020*
	(in thousands)
Assets
Foreign currency forward contracts designated as cash flow hedge	$	1,737		$	511
Foreign currency forward contracts not designated as hedging instruments		1,599			27
Total	$	3,336		$	538
Liabilities
Foreign currency forward contracts designated as cash flow hedge	$	(181	)	$	(2,200	)
Foreign currency forward contracts not designated as hedging instruments		(207	)		(1,677	)
Total	$	(388	)	$	(3,877	)

Derivative Instruments, Gain (Loss) [Table Text Block]

	*Year Ended December 31,*
	*2021*			*2020*			*2019*
	(in thousands)
Net gains (losses) from non-designated forward contracts	$	2,452		$	(1,634	)	$	438
Other foreign currency transactions gains (losses)		(2,749	)		1,894			(792	)
Total foreign exchange gains (losses), net		(297	)		260			(354	)
Other expenses		(276	)		(253	)		(253	)
Other income (expense), net	$	(573	)	$	7		$	(607	)

- Definition

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4B
-URI http://asc.fasb.org/extlink&oid=125515794&loc=SL5624163-113959

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1B
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+ Details

Note 3 - Accumulated Other Comprehensive Income (Loss) (Tables)

12 Months Ended

Dec. 31, 2021

Notes Tables

Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]

	*Available-for-sale debt securities*			*Cash flow hedges*			*Total*
	(in thousands)
Balances at December 31, 2018	$	(545	)	$	(41	)	$	(586	)
Change in unrealized gains during the period		1,610			651			2,261
Net gains reclassified into income during the period		—			(169	)		(169	)
Income tax provision		(243	)		(101	)		(344	)
Net change during the period		1,367			381			1,748
Balances at December 31, 2019		822			340			1,162
Change in unrealized gains (losses) during the period		549			(2,099	)		(1,550	)
Net gains reclassified into income during the period		(25	)		(564	)		(589	)
Income tax benefit (provision)		(122	)		615			493
Net change during the period		402			(2,048	)		(1,646	)
Balances at December 31, 2020		1,224			(1,708	)		(484	)
Change in unrealized gains (losses) during the period		(1,854	)		2,837			983
Net losses reclassified into income during the period		22			933			955
Income tax benefit (provision)		423			(870	)		(447	)
Net change during the period		(1,409	)		2,900			1,491
Balances at December 31, 2021	$	(185	)	$	1,192		$	1,007

Reclassification out of Accumulated Other Comprehensive Income [Table Text Block]

	*Year Ended December 31,*
	*2021*			*2020*			*2019*
	(in thousands)
Reclassification of AOCI - Available-for-sale debt securities
Other income (expense), net	$	(22	)	$	25		$	—

Reclassification of AOCI - Cash flow hedges
Revenues	$	(1,667	)	$	960		$	169
Cost of revenues		149			(76	)		—
Research and development		492			(264	)		—
Sales and marketing		28			(20	)		—
General and administrative		65			(36	)		—
Total	$	(933	)	$	564		$	169

Note 4 - Property and Equipment, Net (Tables)

12 Months Ended

Dec. 31, 2021

Notes Tables

Property, Plant and Equipment [Table Text Block]

	*December 31,*
	*2021*			*2020*
	(in thousands)
Computer equipment	$	161,809		$	136,286
Computer software		25,807			26,164
Leasehold improvements		21,092			21,107
Scanner appliances		16,510			16,749
Furniture, fixtures and equipment		6,479			6,599
Finance leases - right of use asset		—			3,503
Total property and equipment		231,697			210,408
Less: accumulated depreciation and amortization		(169,843	)		(145,558	)
Property and equipment, net	$	61,854		$	64,850

Note 5 - Revenue from Contracts with Customers (Tables)

12 Months Ended

Dec. 31, 2021

Notes Tables

Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Table Text Block]

	(in thousands)
2022	$	142,812
2023		101,482
2024		36,361
2025		2,422
2026		499
2027 and thereafter		110
Total	$	283,687

Disaggregation of Revenue [Table Text Block]

	*Year Ended December 31,*
	*2021*		*2020*			*2019*
	(in thousands)
Direct	$	242,709	$	212,296	$	186,130
Partner		168,463		150,667		135,477
Total	$	411,172	$	362,963	$	321,607

Contract With Customer, Commission Asset Balances [Table Text Block]

	*December 31,*
	*2021*		*2020*
	(in thousands)
Current	$	4,223	$	3,459
Noncurrent	$	8,391	$	6,906

Note 6 - Acquisitions (Tables)

12 Months Ended

Dec. 31, 2021

Notes Tables

Schedule of Business Acquisitions, by Acquisition [Table Text Block]

Acquiree	*Acquisition Date*	*Purchase Consideration*		*Purchased Intangible Assets*		*Goodwill*
		(in thousands)
TotalCloud	August 19, 2021	$	1,200	$	1,200	$	—
Spell security	July 24, 2020	$	1,500	$	1,500	$	—
Adya	January 10, 2019	$	1,000	$	900	$	100

Note 7 - Intangible Assets, Net (Tables)

12 Months Ended

Dec. 31, 2021

Notes Tables

Schedule of Acquired Finite-Lived Intangible Assets by Major Class [Table Text Block]

			*December 31, 2021*
(in thousands)	*Weighted Average Life (Years)*	*Weighted Average Remaining Life (Years)*		*Cost*		*Accumulated Amortization*			*Net Book Value*
Developed technology	4.5	0.9	$	28,556	$	(22,463	)	$	6,093
Patent licenses	14.0	2.7		1,387		(1,121	)		266
Non-compete agreements	2.0	0.6		500		(354	)		146
Total intangibles subject to amortization			$	30,443	$	(23,938	)		6,505
Intangible assets not subject to amortization									40
Total intangible assets, net								$	6,545

				*December 31, 2020*
(in thousands)	*Weighted Average Life (Years)*	*Weighted Average Remaining Life (Years)*		*Cost*		*Accumulated Amortization*			*Net Book Value*
Developed technology	4.4	1.8	$	27,356	$	(16,152	)	$	11,204
Patent licenses	14.0	3.7		1,387		(1,021	)		366
Non-compete agreements	2.0	1.6		500		(104	)		396
Total intangibles subject to amortization			$	29,243	$	(17,277	)		11,966
Intangible assets not subject to amortization									40
Total intangible assets, net								$	12,006

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]

		(in thousands)
2022	$	5,063
2023		590
2024		452
2025		240
2026		160
Total expected future amortization expense	$	6,505

Note 8 - Leases (Tables)

12 Months Ended

Dec. 31, 2021

Notes Tables

Lessee, Operating Lease, Supplemental Cash Flow Disclosure [Table Text Block]

	*Year Ended December 31,*
	*2021*		*2020*		*2019*
	(in thousands)
Cash payments included in the measurement of lease liabilities	$	14,646	$	13,403	$	9,372
Lease liabilities arising from obtaining right-of-use assets	$	4,110	$	15,837	$	17,359

Lessee, Weighted Average Remaining Lease Term and Weighted Average Discount Rate [Table Text Block]

	*December 31,*
	*2021*			*2020*
Weighted average remaining lease term (years)		3.3			4.1
Weighted average discount rate		4.8	%		4.8	%

Lessee, Operating Lease, Liability, Maturity [Table Text Block]

		(in thousands)
2022	$	14,543
2023		12,042
2024		10,735
2025		6,536
2026		4,498
2027 and thereafter		5,819
Total minimum lease payments		54,173
Less: interest		(5,651	)
Present value of net minimum lease payments		48,522
Less: lease liabilities, current		(12,608	)
Lease liabilities, noncurrent	$	35,914

Note 9 - Commitment and Contingencies (Tables)

12 Months Ended

Dec. 31, 2021

Notes Tables

Contractual Obligation, Fiscal Year Maturity [Table Text Block]

	(in thousands)
2022	$	23,672
2023		11,488
2024		7,599
2025		936
Total purchase commitments	$	43,695

Note 10 - Stockholders' Equity and Stock-based Compensation (Tables)

12 Months Ended

Dec. 31, 2021

Notes Tables

Share-based Payment Arrangement, Expensed and Capitalized, Amount [Table Text Block]

	*Year Ended December 31,*
	*2021*		*2020*		*2019*
	(in thousands)
Cost of revenues	$	3,782	$	2,767	$	2,262
Research and development		10,750		13,502		11,151
Sales and marketing		6,323		5,785		4,984
General and administrative		46,724		17,981		16,495
Total stock-based compensation	$	67,579	$	40,035	$	34,892

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]

Year Ended December 31,

2021

2020

2019

Expected term (in years)

5.2 to 5.5

4.5 to 5.5

4.4 to 6.6

Volatility

38% to 41

38% to 43

40% to 46

Risk-free interest rate

0.5% to 1.2

0.3% to 1.4

1.5% to 2.4

Dividend yield

—

Share-based Payment Arrangement, Option, Activity [Table Text Block]

	Outstanding Options			Weighted Average Exercise Price		Weighted Average Remaining Contractual Life		Aggregate Intrinsic Value
	(in thousands)					(Years)		(in thousands)
Balance as of December 31, 2020		2,215		$	59.07		6.5	$	139,121
Granted		495		$	112.43
Exercised		(725	)⁽¹⁾	$	68.91
Canceled		(147	)	$	102.92
Balance as of December 31, 2021		1,838		$	66.05		6.0	$	130,791
Vested and expected to vest - December 31, 2021		1,659		$	61.43		5.7	$	125,769
Exercisable - December 31, 2021		1,168		$	42.60		4.3	$	110,495

Share-based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity [Table Text Block]

	Outstanding RSUs			Weighted Average Grant Date Fair Value
	(in thousands)
Balance as of December 31, 2020		1,047		$	86.78
Granted		583	⁽¹⁾	$	114.59
Vested		(530	)⁽²⁾	$	84.97
Canceled		(183	)	$	90.42
Balance as of December 31, 2021		917	⁽³⁾	$	104.78
Outstanding and expected to vest - December 31, 2021		815		$	104.22

Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions [Table Text Block]

	Year Ended December 31,
	2021
Expected term (in years)		0.5
Volatility		34	%
Risk-free interest rate		0.1	%
Dividend yield		—

Share Repurchase Program [Table Text Block]

Announcement Date	*Authorized Dollar Value*
	(in millions)
February 12, 2018	$	100.0
October 30, 2018		100.0
October 30, 2019		100.0
May 7, 2020		100.0
February 10, 2021		100.0
November 3, 2021		200.0
Total as of December 31, 2021	$	700.0

Note 12 - Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Notes Tables

Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block]

	*Year Ended December 31,*
	*2021*		*2020*		*2019*
	(in thousands)
Domestic	$	80,472	$	94,099	$	72,124
Foreign		8,925		7,938		7,859
Income before income taxes	$	89,397	$	102,037	$	79,983

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

	*Year Ended December 31,*
	*2021*			*2020*			*2019*
	(in thousands)
Current
Federal	$	20,135		$	1,944		$	(90	)
State		4,324			1,438			646
Foreign		3,701			3,571			3,000
Current income tax provision		28,160			6,953			3,556
Deferred
Federal		(7,342	)		4,239			7,085
State		(1,722	)		26			447
Foreign		(659	)		(753	)		(441	)
Deferred income tax provision (benefit)		(9,723	)		3,512			7,091
Income tax provision	$	18,437		$	10,465		$	10,647

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

	*Year Ended December 31,*
	*2021*			*2020*			*2019*
Federal statutory rate		21.0	%		21.0	%		21.0	%
State taxes		3.1			1.6			1.5
Stock-based compensation		10.3			4.8			4.0
Excess tax benefits related to stock-based compensation		(5.4	)		(13.8	)		(11.2	)
Foreign source income		0.4			0.2			0.1
Change in valuation allowance		0.2			0.8			1.1
Foreign-derived intangible income deduction		(7.0	)		(1.7	)		—
Federal and state research and development credit		(1.9	)		(2.6	)		(3.7	)
Other		(0.1	)		—			0.4
Income tax provision		20.6	%		10.3	%		13.2	%

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

	*December 31,*
	*2021*			*2020*
	(in thousands)
Deferred tax assets
Research and development credit carryforwards	$	10,743		$	16,965
Foreign tax credit carryforwards		933			3,497
Accrued liabilities		1,655			2,019
Deferred revenues		7,250			5,123
Operating lease liabilities		11,777			15,924
Intangible assets		12,377			1,397
Stock-based compensation		4,085			3,907
Other		2,987			720
Gross deferred tax assets		51,807			49,552
Valuation allowance		(11,364	)		(11,188	)
Net deferred tax assets		40,443			38,364
Deferred tax liabilities
Fixed assets		(3,320	)		(7,017	)
Operating leases - right of use asset		(9,010	)		(13,054	)
Deferred commissions		(3,026	)		(2,482	)
Total deferred tax liabilities		(15,356	)		(22,553	)
Net deferred tax assets	$	25,087		$	15,811

Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block]

	*Year Ended December 31,*
	*2021*			*2020*			*2019*
	(in thousands)
Unrecognized tax benefits beginning balance	$	8,855		$	7,778		$	6,406
Gross increase for tax positions of prior years		—			4			—
Gross decrease for tax positions of prior years		(25	)		—			(12	)
Gross increase for tax positions of current year		846			1,258			1,384
Lapse of statute of limitations		—			(185	)		—
Total unrecognized tax benefits	$	9,676		$	8,855		$	7,778

Note 13 - Segment and Geographic Area Information (Tables)

12 Months Ended

Dec. 31, 2021

Notes Tables

Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block]

	*Year Ended December 31,*
	*2021*		*2020*		*2019*
	(in thousands)
United States	$	250,761	$	230,444	$	206,555
Foreign		160,411		132,519		115,052
Total revenues	$	411,172	$	362,963	$	321,607

	*December 31,*
	*2021*		*2020*
	(in thousands)
United States	$	66,440	$	69,256
India		20,401		24,774
Rest of world		12,029		15,658
Total Long-lived Assets	$	98,870	$	109,688

Note 14 - Net Income Per Share (Tables)

12 Months Ended

Dec. 31, 2021

Notes Tables

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

	*Year Ended December 31,*
	*2021*		*2020*		*2019*
	(in thousands, except per share data)
Numerator:
Net income	$	70,960	$	91,572	$	69,336
Denominator:
Basic weighted average shares		39,030		39,167		39,075
Effect of potentially dilutive shares:
Stock options		863		1,262		1,806
Restricted stock units		224		311		403
Employee stock purchase plan		1		—		—
Diluted weighted average shares	$	40,118	$	40,740	$	41,284
Net income per share:
Basic	$	1.82	$	2.34	$	1.77
Diluted	$	1.77	$	2.25	$	1.68

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block]

	*Year Ended December 31,*
	*2021*		*2020*		*2019*
	(in thousands)
Stock options		534		532		460
Restricted stock units		61		52		52
Total anti-dilutive shares		595		584		512

Note 1 - The Company and Summary of Significant Accounting Policies (Details Textual) $ in Thousands	12 Months Ended
	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)
Restricted Cash, Total	$ 1,200	$ 1,200
Proceeds from Dividends Received	0
Payments for Advance to Affiliate			$ 600
Impairment, Long-Lived Asset, Held-for-Use, Total	$ 0	0	0
Number of Reporting Units	1
Capitalized Contract Cost, Amortization Period (Year)	5 years
Advertising Expense	$ 2,100	$ 1,600	$ 1,500
Minimum [Member]
Property, Plant and Equipment, Useful Life (Year)	3 years
Maximum [Member]
Property, Plant and Equipment, Useful Life (Year)	5 years
Preferred Stock [Member]
Investments, Total				$ 2,500
Other than Temporary Impairment Losses, Investments, Total				$ 0

Note 2 - Fair Value of Financial Instruments (Details Textual) Pure in Thousands, € in Millions, ₨ in Millions, £ in Millions, SFr in Millions, $ in Millions, $ in Millions	Dec. 31, 2021 USD ($)	Dec. 31, 2021 EUR (€)	Dec. 31, 2021 GBP (£)	Dec. 31, 2021 INR (₨)	Dec. 31, 2021 CAD ($)	Dec. 31, 2021 CHF (SFr)	Dec. 31, 2020 EUR (€)	Dec. 31, 2020 GBP (£)	Dec. 31, 2020 INR (₨)
Marketable Securities In Unrealized Loss Positions, More Than 12 Months Qualitative Disclosure, Number Of Positions	0	0	0	0	0	0	0	0	0
Foreign Exchange Contract [Member] \| Designated as Hedging Instrument [Member] \| Cash Flow Hedging [Member]
Derivative, Notional Amount		€ 29.8	£ 9.4	₨ 2,955.3			€ 25.9	£ 8.7	₨ 1,933.5
Foreign Exchange Contract [Member] \| Not Designated as Hedging Instrument [Member]
Derivative, Notional Amount		€ 34.5	£ 11.6	₨ 74.9	$ 2.5	SFr 1	€ 17.7	£ 6.5	₨ 32.8
Foreign Exchange Contracts for GBP and Euro [Member] \| Designated as Hedging Instrument [Member] \| Cash Flow Hedging [Member]
Foreign Currency Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months	$ 1.0
Foreign Exchange Contracts for INR [Member] \| Designated as Hedging Instrument [Member] \| Cash Flow Hedging [Member]
Foreign Currency Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months	$ 0.3

Note 2 - Fair Value of Financial Instruments - Cash and Cash Equivalents (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Cash and cash equivalents	$ 137,328	$ 74,132
Short-term marketable securities, amortization cost	268,027	281,346
Unrealized gains, short-term securities	103	557
Short-term marketable securities, unrealized loss	(170)	(11)
Short-term marketable securities	267,960	281,892
Long-term marketable securities, amortization cost	111,374	97,414
Unrealized gains, long-term securities	178	1,047
Long-term marketable securities, unrealized loss	(354)	(3)
Long-term marketable securities	111,198	98,458
Cash and cash equivalents and marketable securities, amortization cost	516,729	452,892
Unrealized gains, securities	281	1,604
Unrealized loss, securities	(524)	(14)
Cash and cash equivalents and short-term and long-term Marketable Securities, fair value	516,486	454,482
Commercial Paper, Not Included with Cash and Cash Equivalents [Member]
Short-term marketable securities, amortization cost	28,869	6,147
Unrealized gains, short-term securities	101	0
Short-term marketable securities, unrealized loss	(7)	0
Short-term marketable securities	28,963	6,147
Corporate Debt Securities [Member]
Short-term marketable securities, amortization cost	3,952	24,368
Unrealized gains, short-term securities	0	170
Short-term marketable securities, unrealized loss	0	0
Short-term marketable securities	3,952	24,538
Long-term marketable securities, amortization cost	57,762	51,068
Unrealized gains, long-term securities	160	839
Long-term marketable securities, unrealized loss	(182)	0
Long-term marketable securities	57,740	51,907
Asset-backed Securities [Member]
Short-term marketable securities, amortization cost	217,160	6,263
Unrealized gains, short-term securities	2	18
Short-term marketable securities, unrealized loss	(163)	0
Short-term marketable securities	216,999	6,281
Long-term marketable securities, amortization cost	14,941	38,456
Unrealized gains, long-term securities	6	160
Long-term marketable securities, unrealized loss	(36)	(3)
Long-term marketable securities	14,911	38,613
US Government Agencies Debt Securities [Member]
Short-term marketable securities, amortization cost	18,046	244,568
Unrealized gains, short-term securities	0	369
Short-term marketable securities, unrealized loss	0	(11)
Short-term marketable securities	18,046	244,926
Long-term marketable securities, amortization cost	37,664	6,884
Unrealized gains, long-term securities	0	17
Long-term marketable securities, unrealized loss	(136)	0
Long-term marketable securities	37,528	6,901
Foreign Government Agencies [Member]
Long-term marketable securities, amortization cost	1,007	1,006
Unrealized gains, long-term securities	12	31
Long-term marketable securities, unrealized loss	0	0
Long-term marketable securities	1,019	1,037
Cash [Member]
Cash and cash equivalents	61,220	33,105
Money Market Funds [Member]
Cash and cash equivalents	75,258	38,028
Commercial Paper [Member]
Cash and cash equivalents	$ 850	$ 2,999

Note 2 - Fair Value of Financial Instruments - Fair Value Hierarchy (Details) - Fair Value, Recurring [Member] - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Money market funds	$ 75,258	$ 38,028
Commercial paper	18,896	9,146
U.S. Treasury and government agencies	254,527	251,827
Foreign government	1,019	1,037
Corporate bonds	86,703	76,445
Asset-backed securities	18,863	44,894
Total	455,266	421,377
Fair Value, Inputs, Level 1 [Member]
Money market funds	75,258	38,028
Commercial paper	0	0
U.S. Treasury and government agencies	0	0
Foreign government	0	0
Corporate bonds	0	0
Asset-backed securities	0	0
Total	75,258	38,028
Fair Value, Inputs, Level 2 [Member]
Money market funds	0	0
Commercial paper	18,896	9,146
U.S. Treasury and government agencies	254,527	251,827
Foreign government	1,019	1,037
Corporate bonds	86,703	76,445
Asset-backed securities	18,863	44,894
Total	$ 380,008	$ 383,349

Note 2 - Fair Value of Financial Instruments - Summary of the Fair Value of Marketable Securities (Details) $ in Thousands	Dec. 31, 2021 USD ($)
Available-for-sale Securities, Debt and Equity Maturities, Next Twelve Months, Fair Value	$ 268,810
Available-for-sale Securities, Debt and Equity Maturities, Year One through Two, Fair Value	84,913
Available-for-sale Securities, Debt and Equity Maturities, Year over two years, Fair Value	26,285
Debt Securities, Available-for-sale	380,008
Commercial Paper [Member]
Available-for-sale Securities, Debt and Equity Maturities, Next Twelve Months, Fair Value	18,896
Available-for-sale Securities, Debt and Equity Maturities, Year One through Two, Fair Value	0
Available-for-sale Securities, Debt and Equity Maturities, Year over two years, Fair Value	0
Debt Securities, Available-for-sale	18,896
US Government Agencies Debt Securities [Member]
Available-for-sale Securities, Debt and Equity Maturities, Next Twelve Months, Fair Value	216,999
Available-for-sale Securities, Debt and Equity Maturities, Year One through Two, Fair Value	37,528
Available-for-sale Securities, Debt and Equity Maturities, Year over two years, Fair Value	0
Debt Securities, Available-for-sale	254,527
Foreign Government Agencies [Member]
Available-for-sale Securities, Debt and Equity Maturities, Next Twelve Months, Fair Value	0
Available-for-sale Securities, Debt and Equity Maturities, Year One through Two, Fair Value	1,019
Available-for-sale Securities, Debt and Equity Maturities, Year over two years, Fair Value	0
Debt Securities, Available-for-sale	1,019
Corporate Bond Securities [Member]
Available-for-sale Securities, Debt and Equity Maturities, Next Twelve Months, Fair Value	28,964
Available-for-sale Securities, Debt and Equity Maturities, Year One through Two, Fair Value	38,407
Available-for-sale Securities, Debt and Equity Maturities, Year over two years, Fair Value	19,332
Debt Securities, Available-for-sale	86,703
Asset-backed Securities [Member]
Available-for-sale Securities, Debt and Equity Maturities, Next Twelve Months, Fair Value	3,951
Available-for-sale Securities, Debt and Equity Maturities, Year One through Two, Fair Value	7,959
Available-for-sale Securities, Debt and Equity Maturities, Year over two years, Fair Value	6,953
Debt Securities, Available-for-sale	$ 18,863

Note 2 - Fair Value of Financial Instruments - Summary of Derivative Financial Instruments (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Foreign currency forward contracts	$ 3,336	$ 538
Foreign currency forward contracts	(388)	(3,877)
Designated as Hedging Instrument [Member]
Foreign currency forward contracts	1,737	511
Foreign currency forward contracts	(181)	(2,200)
Not Designated as Hedging Instrument [Member]
Foreign currency forward contracts	1,599	27
Foreign currency forward contracts	$ (207)	$ (1,677)

Note 2 - Fair Value of Financial Instruments - Amounts Recognized In Statement Of Operations (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Net gains (losses) from non-designated forward contracts	$ 2,452	$ (1,634)	$ 438
Other foreign currency transactions gains (losses)	(2,749)	1,894	(792)
Total foreign exchange gains (losses), net	(297)	260	(354)
Other expenses	(276)	(253)	(253)
Other income (expense), net	$ (573)	$ 7	$ (607)

Note 3 - Accumulated Other Comprehensive Income (Loss) - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Balance	$ 404,482	$ 386,803	$ 357,989
Other comprehensive income (loss), net of tax	1,491	(1,646)	1,748
Balance	436,714	404,482	386,803
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent [Member]
Balance	1,224	822	(545)
Change in unrealized gains during the period	(1,854)	549	1,610
Net losses reclassified into income during the period	22	(25)	0
Income tax provision	423	(122)	(243)
Other comprehensive income (loss), net of tax	(1,409)	402	1,367
Balance	(185)	1,224	822
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member]
Balance	(1,708)	340	(41)
Change in unrealized gains during the period	2,837	(2,099)	651
Net losses reclassified into income during the period	933	(564)	(169)
Income tax provision	(870)	615	(101)
Other comprehensive income (loss), net of tax	2,900	(2,048)	381
Balance	1,192	(1,708)	340
AOCI Attributable to Parent [Member]
Balance	(484)	1,162	(586)
Change in unrealized gains during the period	983	(1,550)	2,261
Net losses reclassified into income during the period	955	(589)	(169)
Income tax provision	(447)	493	(344)
Other comprehensive income (loss), net of tax	1,491	(1,646)	1,748
Balance	$ 1,007	$ (484)	$ 1,162

- Definition

Total of all stockholders' equity (deficit) items, net of receivables from officers, directors, owners, and affiliates of the entity which are attributable to the parent. The amount of the economic entity's stockholders' equity attributable to the parent excludes the amount of stockholders' equity which is allocable to that ownership interest in subsidiary equity which is not attributable to the parent (noncontrolling interest, minority interest). This excludes temporary equity and is sometimes called permanent equity.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(g)(1)(ii))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 852
-SubTopic 10
-Section 55
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=84165509&loc=d3e56426-112766

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 4.E)
-URI http://asc.fasb.org/extlink&oid=122038336&loc=d3e74512-122707

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(31))
-URI http://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(29))
-URI http://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(30))
-URI http://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682

Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 28
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=123596393&loc=d3e14064-108612

Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 323
-SubTopic 10
-Section 50
-Paragraph 3
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=114001798&loc=d3e33918-111571

+ Details

Note 3 - Accumulated Other Comprehensive Income (Loss) - Amounts Reclassified from AOCI (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Other income (expense), net	$ 573	$ (7)	$ 607
Revenues	411,172	362,963	321,607
Cost of revenues	89,439	79,226	69,517
Research and development	81,289	72,548	68,239
Sales and marketing	76,487	67,965	70,833
General and administrative	76,274	46,570	40,765
Reclassification out of Accumulated Other Comprehensive Income [Member] \| AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent [Member]
Other income (expense), net	(22)	25	0
Reclassification out of Accumulated Other Comprehensive Income [Member] \| Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member]
Revenues	(1,667)	960	169
Cost of revenues	149	(76)	0
Research and development	492	(264)	0
Sales and marketing	28	(20)	0
General and administrative	65	(36)	0
Total	$ (933)	$ 564	$ 169

Note 4 - Property and Equipment, Net (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Property, Plant and Equipment, Net, Ending Balance	$ 61,854	$ 64,850
Depreciation, Depletion And Amortization, Excluding Intangible Asset Amortization	28,500	26,100	$ 24,900
Scanner Appliances and Other Computer Equipment Subject To Subscription [Member]
Property, Plant and Equipment, Net, Ending Balance	5,300	7,500
Scanner Appliances and Other Computer Equipment Not Placed In Service [Member]
Property, Plant and Equipment, Net, Ending Balance	$ 1,300	$ 1,900

Note 4 - Property and Equipment, Net - Property and Equipment, Net (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Property and equipment and finance lease	$ 231,697	$ 210,408
Less: accumulated depreciation and amortization	(169,843)	(145,558)
Property and equipment and finance lease, net	61,854	64,850
Computer Equipment [Member]
Property and equipment and finance lease	161,809	136,286
Computer Software, Intangible Asset [Member]
Property and equipment and finance lease	25,807	26,164
Leasehold Improvements [Member]
Property and equipment and finance lease	21,092	21,107
Scanner Appliances [Member]
Property and equipment and finance lease	16,510	16,749
Furniture and Fixtures [Member]
Property and equipment and finance lease	6,479	6,599
Assets Held under Capital Leases [Member]
Property and equipment and finance lease	$ 0	$ 3,503

Note 5 - Revenue from Contracts with Customers (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Contract with Customer, Liability, Revenue Recognized	$ 211,000	$ 188,600
Amortization of Deferred Sales Commissions	4,000	3,000	$ 2,000
Capitalized Contract Cost, Impairment Loss	$ 0	$ 0	$ 0

Note 5 - Revenue from Contracts with Customers - Expected Revenue from All Remaining Performance Obligations (Details) $ in Thousands	Dec. 31, 2021 USD ($)
Remaining performance obligations	$ 283,687

Note 5 - Revenue from Contracts with Customers - Expected Revenue from All Remaining Performance Obligations 2 (Details) $ in Thousands	Dec. 31, 2021 USD ($)
Remaining performance obligations	$ 283,687
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01
Remaining performance obligations, period (Year)	1 year
Remaining performance obligations	$ 142,812
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01
Remaining performance obligations, period (Year)	1 year
Remaining performance obligations	$ 101,482
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01
Remaining performance obligations, period (Year)	1 year
Remaining performance obligations	$ 36,361
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01
Remaining performance obligations, period (Year)	1 year
Remaining performance obligations	$ 2,422
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01
Remaining performance obligations, period (Year)	1 year
Remaining performance obligations	$ 499
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01
Remaining performance obligations, period (Year)	1 year
Remaining performance obligations	$ 110

Note 5 - Revenue from Contracts with Customers - Revenue by Sales Channel (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Revenues	$ 411,172	$ 362,963	$ 321,607
Sales Channel, Directly to Consumer [Member]
Revenues	242,709	212,296	186,130
Sales Channel, Through Intermediary [Member]
Revenues	$ 168,463	$ 150,667	$ 135,477

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8906-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9031-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9038-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 4
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130543-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9054-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130545-203045

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 924
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 11.L)
-URI http://asc.fasb.org/extlink&oid=6472922&loc=d3e499488-122856

+ Details

Note 5 - Revenue from Contracts with Customers - Capitalized Cost to Obtain Contracts, Current and Noncurrent (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Current	$ 4,223	$ 3,459
Noncurrent	$ 8,391	$ 6,906

Note 6 - Acquisitions (Details Textual) - USD ($) $ in Millions					12 Months Ended
	Aug. 19, 2022	Aug. 19, 2021	Jul. 24, 2020	Jan. 10, 2019	Dec. 31, 2021	Dec. 31, 2020
Spell Security [Member]
Business Combination, Consideration Transferred, Total			$ 1.5
Business Combination, Contingent Consideration, Liability, Total			0.2
Adya [Member]
Business Combination, Consideration Transferred, Total				$ 1.0
Payment for Contingent Consideration Liability, Investing Activities				$ 0.2
Goodwill, Deductible for Tax Purpose Period (Year)				15 years
Developed Technology Rights [Member]
Finite-lived Intangible Assets Acquired		$ 1.2
Payments to Acquire Intangible Assets		$ 1.1	1.3
Finite-Lived Intangible Asset, Useful Life (Year)		5 years			4 years 6 months	4 years 4 months 24 days
Developed Technology Rights [Member] \| Spell Security [Member]
Finite-lived Intangible Assets Acquired			$ 1.0
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life (Year)			4 years
Developed Technology Rights [Member] \| Adya [Member]
Finite-Lived Intangible Asset, Useful Life (Year)				4 years
Developed Technology Rights [Member] \| Forecast [Member]
Payments to Acquire Intangible Assets	$ 0.1
Noncompete Agreements [Member]
Finite-Lived Intangible Asset, Useful Life (Year)					2 years	2 years
Noncompete Agreements [Member] \| Spell Security [Member]
Finite-lived Intangible Assets Acquired			$ 0.5
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life (Year)			2 years

Note 6 - Acquisitions - Estimated Fair Values of the Acquired Assets (Details) - USD ($) $ in Thousands	Aug. 19, 2021	Jul. 24, 2020	Jan. 10, 2019	Dec. 31, 2021	Dec. 31, 2020
Goodwill				$ 7,447	$ 7,447
Total Cloud [Member]
Purchase Consideration	$ 1,200
Purchased Intangible Assets	1,200
Goodwill	$ 0
Spell Security [Member]
Purchase Consideration		$ 1,500
Purchased Intangible Assets		1,500
Goodwill		$ 0
Adya [Member]
Purchase Consideration			$ 1,000
Purchased Intangible Assets			900
Goodwill			$ 100

Note 7 - Intangible Assets, Net (Details Textual) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Amortization of Intangible Assets, Total	$ 6.7	$ 6.3	$ 6.1

Note 7 - Intangible Assets, Net - Carrying Value of Intangible Assets (Details) - USD ($) $ in Thousands		12 Months Ended
	Aug. 19, 2021	Dec. 31, 2021	Dec. 31, 2020
Cost		$ 30,443	$ 29,243
Amortization of intangible assets		(23,938)	(17,277)
Net Book Value		6,505	11,966
Total intangible assets, net		6,545	12,006
Intangible Assets Not Subject to Amortization [Member]
Intangible assets not subject to amortization		$ 40	$ 40
Developed Technology Rights [Member]
Weighted Average Life (Year)	5 years	4 years 6 months	4 years 4 months 24 days
Weighted Average Remaining Life (Year)		10 months 24 days	1 year 9 months 18 days
Cost		$ 28,556	$ 27,356
Amortization of intangible assets		(22,463)	(16,152)
Net Book Value		$ 6,093	$ 11,204
Patents [Member]
Weighted Average Life (Year)		14 years	14 years
Weighted Average Remaining Life (Year)		2 years 8 months 12 days	3 years 8 months 12 days
Cost		$ 1,387	$ 1,387
Amortization of intangible assets		(1,121)	(1,021)
Net Book Value		$ 266	$ 366
Noncompete Agreements [Member]
Weighted Average Life (Year)		2 years	2 years
Weighted Average Remaining Life (Year)		7 months 6 days	1 year 7 months 6 days
Cost		$ 500	$ 500
Amortization of intangible assets		(354)	(104)
Net Book Value		$ 146	$ 396

Note 7 - Intangible Assets, Net - Expected Amortization Expense in Future Periods (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
2022	$ 5,063
2023	590
2024	452
2025	240
2026	160
Total expected future amortization expense	$ 6,505	$ 11,966

Note 8 - Leases (Details Textual) - USD ($) $ in Millions	12 Months Ended
Note 8 - Leases (Details Textual) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Operating Lease, Expense	$ 16.8	$ 16.7	$ 13.9

Note 8 - Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Cash payments included in the measurement of lease liabilities	$ 14,646	$ 13,403	$ 9,372
Lease liabilities arising from obtaining right-of-use assets	$ 4,110	$ 15,837	$ 17,359

Note 8 - Leases - Weighted Average Remaining Lease Term and Weighted Average Discount Rate (Details)	Dec. 31, 2021	Dec. 31, 2020
Weighted average remaining lease term (Year)	3 years 3 months 18 days	4 years 1 month 6 days
Weighted average discount rate	4.80%	4.80%

Note 8 - Leases - Minimum Annual Lease Payments (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
2022, operating leases	$ 14,543
2023, operating leases	12,042
2024, operating leases	10,735
2025, operating leases	6,536
2026, operating leases	4,498
2025 and thereafter, operating leases	5,819
Total minimum lease payments, operating leases	54,173
Less: interest	(5,651)
Present value of net minimum lease payments	48,522
Less: lease liabilities, current	(12,608)	$ (11,672)
Lease liabilities, noncurrent	$ 35,914	$ 45,700

Note 9 - Commitment and Contingencies - Remaining Purchase Commitments (Details) $ in Thousands	Dec. 31, 2021 USD ($)
2022	$ 23,672
2023	11,488
2024	7,599
2025	936
Total purchase commitments	$ 43,695

Note 10 - Stockholders' Equity and Stock-based Compensation (Details Textual)
$ / shares in Units, $ in Thousands

1 Months Ended

12 Months Ended

Oct. 28, 2021

Jun. 09, 2021

Apr. 27, 2021

Mar. 19, 2021

Dec. 10, 2020

Nov. 02, 2019

Dec. 21, 2018

Feb. 28, 2021

Feb. 29, 2020

Dec. 31, 2021

USD ($)

$ / shares

Dec. 31, 2020

USD ($)

$ / shares

Dec. 31, 2019

USD ($)

$ / shares

Dec. 31, 2018

Oct. 03, 2012

$ / shares

Preferred Stock, Shares Authorized (in shares)

20,000,000

20,000,000.0

Preferred Stock, Par or Stated Value Per Share (in dollars per share) | $ / shares

$ 0.001

Preferred Stock, Shares Issued, Total (in shares)

Preferred Stock, Shares Outstanding, Ending Balance (in shares)

Share-based Payment Arrangement, Expense, Tax Benefit | $

$ 6,200

$ 5,500

Share-based Payment Arrangement, Accelerated Cost | $

27,300

Share-based Payment Arrangement, Expense | $

$ 67,579

$ 40,035

$ 34,892

Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares

$ 41.23

$ 35.49

$ 34.02

Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period (in shares)

^[1]

725,000

Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $

$ 42,500

$ 77,500

$ 52,100

Stock Repurchased and Retired During Period, Shares (in shares)

1,100,000

1,300,000

1,000,000.0

Stock Repurchased and Retired During Period, Value | $

$ 130,000

$ 126,700

$ 86,400

Stock Repurchase Program, Remaining Authorized Repurchase Amount | $

271,800

Share-based Payment Arrangement, Option [Member]

Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $

$ 16,700

Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year)

2 years 9 months 18 days

Share-based Payment Arrangement, Option [Member] | Performance Shares [Member]

Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year)

3 years

Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in shares)

224,000

124,000

Share-based Compensation Arrangement by Share-based Payment Award, Accelerated Vesting, Number (in shares)

348,000

Share-based Payment Arrangement, Expense | $

$ 13,300

200

300

Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period (in shares)

348

Restricted Stock Units (RSUs) [Member]

Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $

$ 77,000

Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year)

2 years 9 months 18 days

Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period (in shares)

^[2]

530,000

Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares)

^[3]

583,000

Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $

$ 59,500

46,500

37,900

Restricted Stock Units (RSUs) [Member] | Time based Shared Based Compensation [Member]

Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in shares)

69,000

49,000

Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period (in shares)

56,000

Share based Compensation Arrangement by Share based Payment Award, Vesting Period, Number Of Quarterly Periods

Share-based Compensation Arrangement by Share-based Payment Award, Accelerated Vesting, Number (in shares)

127,000

Restricted Stock Units (RSUs) [Member] | Performance Shares [Member]

Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year)

3 years

Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in shares)

33,000

Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period (in shares)

22,000

15,000

Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage

33.33%

Share-Based Compensation Arrangement By Share-based Payment Award, Equity Instruments Other Than Options, Target Number Of Shares (in shares)

11,000

Share-based Compensation Termination Period Trigger (Month)

12 months

Share-Based Compensation, Percentage Of Shares That Will Vest Upon Trigger

100.00%

Share-Based Compensation Arrangement By Share-Based Payment Award, Equity Instruments Other than Options, Vested in Period As A Percentage Of Target

200.00%

135.00%

Share-based Compensation Arrangement by Share-based Payment Award, Accelerated Vesting, Number (in shares)

44,000

Share-based Payment Arrangement, Expense | $

5,300

$ 2,800

$ 900

ESPP Shares [Member]

Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $

$ 200

Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year)

1 month 6 days

Performance-based Restricted Stock Units [Member]

Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period (in shares)

11,000

Performance-based Restricted Stock Units [Member] | President and Chief Executive Officer [Member]

Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year)

3 years

Share-based Compensation Termination Period Trigger (Month)

12 months

Share-Based Compensation, Percentage Of Shares That Will Vest Upon Trigger

100.00%

Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares)

10,000

Performance-based Restricted Stock Units [Member] | Executive Officer [Member]

Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year)

3 years

Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares)

73,000

34,000

Maximum [Member] | Share-based Payment Arrangement, Option [Member] | Performance Shares [Member]

Share-based Compensation Arrangement by Share-based Payment Award, Target Percentage

200.00%

Maximum [Member] | Restricted Stock Units (RSUs) [Member] | President and Chief Executive Officer [Member]

Share-based Compensation Arrangement by Share-based Payment Award, Target Percentage

200.00%

Maximum [Member] | Restricted Stock Units (RSUs) [Member] | Performance Shares, Tranche Three [Member]

Share-based Compensation Arrangement by Share-based Payment Award, Target Percentage

200.00%

Maximum [Member] | Performance-based Restricted Stock Units [Member] | President and Chief Executive Officer [Member]

Share-based Compensation Arrangement by Share-based Payment Award, Target Percentage

200.00%

Maximum [Member] | Performance-based Restricted Stock Units [Member] | Executive Officer [Member]

Share-based Compensation Arrangement by Share-based Payment Award, Target Percentage

200.00%

Minimum [Member] | Share-based Payment Arrangement, Option [Member] | Performance Shares [Member]

Share-based Compensation Arrangement by Share-based Payment Award, Target Percentage

0.00%

Minimum [Member] | Restricted Stock Units (RSUs) [Member] | President and Chief Executive Officer [Member]

Share-based Compensation Arrangement by Share-based Payment Award, Target Percentage

0.00%

Minimum [Member] | Restricted Stock Units (RSUs) [Member] | Performance Shares, Tranche Three [Member]

Share-based Compensation Arrangement by Share-based Payment Award, Target Percentage

0.00%

Minimum [Member] | Performance-based Restricted Stock Units [Member] | President and Chief Executive Officer [Member]

Share-based Compensation Arrangement by Share-based Payment Award, Target Percentage

0.00%

Minimum [Member] | Performance-based Restricted Stock Units [Member] | Executive Officer [Member]

Share-based Compensation Arrangement by Share-based Payment Award, Target Percentage

0.00%

The 2000 Equity Incentive Plan [Member]

Share-based Compensation Arrangement by Share-based Payment Award, Award Strike Price as a Percentage of Market Value

85.00%

Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant (in shares)

The 2000 Equity Incentive Plan [Member] | Maximum [Member] | Share-based Payment Arrangement, Option [Member]

Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year)

4 years

Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period (Year)

10 years

The 2012 Equity Incentive Plan [Member]

Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year)

4 years

Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant (in shares)

8,091

Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized, Annual Increase, Shares (in shares)

3,050

Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized, Annual Increase, Percent of Shares Outstanding

5.00%

Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized (in shares)

1,963

Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in shares)

17,662

The 2021 Employee Stock Purchase Plan [Member]

Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in shares)

600,000

Share-based Compensation Arrangement by Share-based Payment Award, Offering Period (Month)

6 months

Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent

85.00%

Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares

$ 26.88

The 2021 Employee Stock Purchase Plan [Member] | Maximum [Member]

Employee Stock Purchase Plan, Percentage of Eligible Compensation Contributable

15.00%

The 2021 Employee Stock Purchase Plan [Member] | Minimum [Member]

Employee Stock Purchase Plan, Percentage of Eligible Compensation Contributable

1.00%

[1]	Included 348 thousand shares of PSOs.
[2]	Included 11 thousand additional shares of PSUs vested as a result of the Company achieving the corresponding level of performance goals for 2020.
[3]	Included 34 thousand shares of PSUs granted to certain executive officers in 2021 and 11 thousand additional shares of PSUs vested as a result of the Company achieving the corresponding level of performance goals for 2020.

Note 10 - Stockholders' Equity and Stock-based Compensation - Summary of Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Stock-based compensation	$ 67,579	$ 40,035	$ 34,892
Cost of Sales [Member]
Stock-based compensation	3,782	2,767	2,262
Research and Development Expense [Member]
Stock-based compensation	10,750	13,502	11,151
Selling and Marketing Expense [Member]
Stock-based compensation	6,323	5,785	4,984
General and Administrative Expense [Member]
Stock-based compensation	$ 46,724	$ 17,981	$ 16,495

Note 10 - Stockholders' Equity and Stock-based Compensation - Fair Value Assumptions, Stock Options (Details)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Dividend yield	0.00%	0.00%	0.00%
Minimum [Member]
Expected term (in years) (Year)	5 years 2 months 12 days	4 years 6 months	4 years 4 months 24 days
Volatility	38.00%	38.00%	40.00%
Risk-free interest rate	0.50%	0.30%	1.50%
Maximum [Member]
Expected term (in years) (Year)	5 years 6 months	5 years 6 months	6 years 7 months 6 days
Volatility	41.00%	43.00%	46.00%
Risk-free interest rate	1.20%	1.40%	2.40%

Note 10 - Stockholders' Equity and Stock-based Compensation - Share-based Compensation and Stock Options Activity (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands

12 Months Ended

Dec. 31, 2021

Dec. 31, 2020

Balance (in shares)

2,215

Weighted average exercise price, balance (in dollars per share)

$ 59.07

Weighted Average Remaining Contractual Life Balance (Year)

6 years

6 years 6 months

Aggregate intrinsic value

$ 130,791

$ 139,121

Granted (in shares)

495

Weighted average exercise price, granted (in dollars per share)

$ 112.43

Exercised (in shares)

^[1]

(725)

Weighted average exercise price, exercised (in dollars per share)

$ 68.91

Canceled (in shares)

(147)

Weighted average exercise price, canceled (in dollars per share)

$ 102.92

Balance (in shares)

1,838

2,215

Weighted average exercise price, balance (in dollars per share)

$ 66.05

$ 59.07

Vested and expected to vest (in shares)

1,659

Vested and Expected to vest, weighted average exercise price (in dollars per share)

$ 61.43

Vested and Expected to vest, weighted average remaining contractual life (Year)

5 years 8 months 12 days

Vested and Expected to vest, aggregate intrinsic value

$ 125,769

Exercisable (in shares)

1,168

Exercisable, Weighted average exercise price (in dollars per share)

$ 42.60

Exercisable, weighted average remaining contractual life (Year)

4 years 3 months 18 days

Exercisable, aggregate intrinsic value

$ 110,495

[1]	Included 348 thousand shares of PSOs.

Note 10 - Stockholders' Equity and Stock-based Compensation - Share-based Compensation, Restricted Stock and Restricted Stock Units (Details)
shares in Thousands

12 Months Ended

Dec. 31, 2021

$ / shares

Cancelled, weighted average grant date fair value (in dollars per share) | $ / shares

$ 90.42

Expected to vest, number of shares (in shares) | shares

815

Expected to vest, weighted average grant date fair value (in dollars per share) | $ / shares

$ 104.22

Restricted Stock Units (RSUs) [Member]

Balance, number of shares (in shares) | shares

1,047

Balance, weighted average grant date fair value (in dollars per share) | $ / shares

$ 86.78

Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | shares

583

^[1]

Granted, weighted average grant date fair value (in dollars per share) | $ / shares

$ 114.59

Vested, number of shares (in shares) | shares

(530)

^[2]

Vested, weighted average grant date fair value (in dollars per share) | $ / shares

$ 84.97

Cancelled, number of shares (in shares) | shares

(183)

Balance, number of shares (in shares) | shares

917

^[3]

Balance, weighted average grant date fair value (in dollars per share) | $ / shares

$ 104.78

[1]	Included 34 thousand shares of PSUs granted to certain executive officers in 2021 and 11 thousand additional shares of PSUs vested as a result of the Company achieving the corresponding level of performance goals for 2020.
[2]	Included 11 thousand additional shares of PSUs vested as a result of the Company achieving the corresponding level of performance goals for 2020.
[3]	Included 34 thousand shares of PSUs granted to certain executive officers in 2021.

Note 10 - Stockholders' Equity and Stock-based Compensation - Employee Stock Purchase Plan, Valuation Assumptions (Details)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Dividend yield	0.00%	0.00%	0.00%
The 2021 Employee Stock Purchase Plan [Member]
Expected term (in years) (Year)	6 months
Volatility	34.00%
Risk-free interest rate	0.10%
Dividend yield	0.00%

Note 10 - Stockholders' Equity and Stock-based Compensation - Schedule of Repurchase Agreements (Details) - USD ($) $ in Billions	Dec. 31, 2021	Nov. 03, 2021	Feb. 10, 2021	May 07, 2020	Oct. 30, 2019	Oct. 30, 2018	Feb. 12, 2018
Authorized Dollar Value	$ 0.7						$ 0.1
October 30, 2018		$ 0.2	$ 0.1	$ 0.1	$ 0.1	$ 0.1

Note 11 - Employee Benefits Plan (Details Textual) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
401(k) Plan [Member]
Defined Contribution Plan, Employer Discretionary Contribution Amount	$ 2.4	$ 1.3	$ 1.3
Provident Fund Plan and Gratuity Plan [Member]
Defined Contribution Plan, Employer Discretionary Contribution Amount	$ 1.7	$ 1.4	$ 1.1

Note 12 - Income Taxes (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Deferred Tax Assets, Valuation Allowance, Total	$ 11,364	$ 11,188
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount	200
Operating Loss Carryforwards, Total	700
Tax Credit Carryforward, Amount	15,500
Unrecognized Tax Benefits that Would Impact Effective Tax Rate	$ 4,900	$ 4,600	$ 4,200
Open Tax Year	2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Foreign Tax Authority [Member]
Tax Credit Carryforward, Amount	$ 900

Note 12 - Income Taxes - Schedule of Income before Income Tax, Domestic and Foreign (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Domestic	$ 80,472	$ 94,099	$ 72,124
Foreign	8,925	7,938	7,859
Income before income taxes	$ 89,397	$ 102,037	$ 79,983

- Definition

Amount of income (loss) from continuing operations, including income (loss) from equity method investments, before deduction of income tax expense (benefit), and income (loss) attributable to noncontrolling interest.

+ References

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+ Details

Note 12 - Income Taxes - Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Federal	$ 20,135	$ 1,944	$ (90)
State	4,324	1,438	646
Foreign	3,701	3,571	3,000
Current income tax provision	28,160	6,953	3,556
Federal	(7,342)	4,239	7,085
State	(1,722)	26	447
Foreign	(659)	(753)	(441)
Deferred income tax provision (benefit)	(9,723)	3,512	7,091
Income tax provision	$ 18,437	$ 10,465	$ 10,647

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Note 12 - Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Federal statutory rate	21.00%	21.00%	21.00%
State taxes	3.10%	1.60%	1.50%
Stock-based compensation	10.30%	4.80%	4.00%
Excess tax benefits related to stock-based compensation	(5.40%)	(13.80%)	(11.20%)
Foreign source income	0.40%	0.20%	0.10%
Change in valuation allowance	0.20%	0.80%	1.10%
Foreign-derived intangible income deduction	(7.00%)	(1.70%)	0.00%
Federal and state research and development credit	(1.90%)	(2.60%)	(3.70%)
Other	(0.10%)	0.00%	0.40%
Income tax provision	20.60%	10.30%	13.20%

Note 12 - Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Research and development credit carryforwards	$ 10,743	$ 16,965
Foreign tax credit carryforwards	933	3,497
Accrued liabilities	1,655	2,019
Deferred revenues	7,250	5,123
Operating lease liabilities	11,777	15,924
Intangible assets	12,377	1,397
Stock-based compensation	4,085	3,907
Other	2,987	720
Gross deferred tax assets	51,807	49,552
Valuation allowance	(11,364)	(11,188)
Net deferred tax assets	40,443	38,364
Fixed assets	(3,320)	(7,017)
Operating leases - right of use asset	(9,010)	(13,054)
Deferred commissions	(3,026)	(2,482)
Total deferred tax liabilities	(15,356)	(22,553)
Net deferred tax assets	$ 25,087	$ 15,811

Note 12 - Income Taxes - Schedule of Unrecognized Tax Benefits Roll Forward (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Unrecognized tax benefits beginning balance	$ 8,855	$ 7,778	$ 6,406
Gross increase for tax positions of prior years	0	4	0
Gross decrease for tax positions of prior years	(25)	0	(12)
Gross increase for tax positions of current year	846	1,258	1,384
Lapse of statute of limitations	0	(185)	0
Total unrecognized tax benefits	$ 9,676	$ 8,855	$ 7,778

Note 13 - Segment and Geographic Area Information (Details Textual)	12 Months Ended
	Dec. 31, 2021
Number of Operating Segments	1
Number of Reportable Segments	1

Note 13 - Segment and Geographic Area Information - Revenue and Property and Equipment, Net by Geographic Area (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Revenues	$ 411,172	$ 362,963	$ 321,607
Property and equipment, net and Operating leases - right of use asset	98,870	109,688
UNITED STATES
Revenues	250,761	230,444	206,555
Property and equipment, net and Operating leases - right of use asset	66,440	69,256
Non-US [Member]
Revenues	160,411	132,519	$ 115,052
INDIA
Property and equipment, net and Operating leases - right of use asset	20,401	24,774
Other Geographic Areas [Member]
Property and equipment, net and Operating leases - right of use asset	$ 12,029	$ 15,658

- Definition

+ References

+ Details

Note 14 - Net Income Per Share - Basic and Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Net income	$ 70,960	$ 91,572	$ 69,336
Basic weighted average shares (in shares)	39,030	39,167	39,075
Stock options (in shares)	863	1,262	1,806
Restricted stock units (in shares)	224	311	403
Employee stock purchase plan (in shares)	1	0	0
Diluted weighted average shares (in shares)	40,118	40,740	41,284
Basic (in dollars per share)	$ 1.82	$ 2.34	$ 1.77
Diluted (in dollars per share)	$ 1.77	$ 2.25	$ 1.68

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

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

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

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Note 14 - Net Income Per Share - Anti-dilutive Net Income Per Share (Details) - shares shares in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Antidilutive securities (in shares)	595	584	512
Share-based Payment Arrangement, Option [Member]
Antidilutive securities (in shares)	534	532	460
Restricted Stock Units (RSUs) [Member]
Antidilutive securities (in shares)	61	52	52